STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share Repurchase Program

In October 2023, the board of directors of the Company authorized the repurchase of up to $1 billion of the Company’s Class A common stock. During the six months ended June 30, 2024, the Company repurchased 9.3 million shares of its Class A common stock for an aggregate amount of $641.6 million. As of June 30, 2024, $201.6 million remained available and authorized for repurchases under this share repurchase program.

On July 25, 2024, the board of directors of the Company authorized an increase to the Company's share repurchase program to repurchase up to an additional $3 billion of the Company’s Class A common stock.

Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program does not obligate the Company to acquire any particular amount of its Class A common stock and may be suspended at any time at the Company’s discretion. The timing and number of shares repurchased will depend on a variety of factors, including the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors.

Stock Plans

The 2015 Equity Incentive Plan ("2015 Plan") provides that the number of shares available for issuance under the 2015 Plan will be increased on the first day of each fiscal year, in an amount equal to the least of (i) 40.0 million shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) such other amount as our board of directors may determine. As of June 30, 2024, there were 139.3 million shares available for future issuance under our 2015 Plan.

A summary of stock option activity for the six months ended June 30, 2024 is as follows (in thousands, except per share data):


	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, beginning of the year	4,991	$	47.64	3.80	$	195,760
Granted	578	74.03
Exercised	(1,677)	18.33
Forfeited	—	—
Expired	(81)	158.19
Outstanding, end of the period	3,811	$	62.19	5.39	$	65,919

Exercisable, end of the period	2,719	$	54.16	3.89	$	65,024

Restricted Stock Activity

Activity related to RSUs during the six months ended June 30, 2024 is set forth below (in thousands, except per share data):


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested, beginning of the year	40,099	$	74.76
Granted	17,827	71.83
Vested	(8,266)	80.52
Forfeited	(5,907)	75.29
Unvested, end of the period	43,753	$	72.40

Share-Based Compensation

The following table summarizes the effects of share-based compensation on the Company's condensed consolidated statements of operations (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cost of revenue	$	181	$	142	$	354	$	284
Product development	229,330		223,411		451,284		421,268
Sales and marketing	32,176		32,790		63,544		62,155
General and administrative	58,681		62,905		116,354		115,132
Total	$	320,368	$	319,248	$	631,536	$	598,839

The Company recorded $10.4 million and $17.3 million of share-based compensation expense related to the Company's 2015 Employee Stock Purchase Plan during the three and six months ended June 30, 2024, respectively, compared to $11.4 million and $32.5 million during the three and six months ended June 30, 2023, respectively, which are included in the table above.

The Company capitalized $10.6 million and $17.1 million of share-based compensation expense related to software costs during the three and six months ended June 30, 2024, respectively, compared to $7.2 million and $13.1 million during the three and six months ended June 30, 2023, respectively.

As of June 30, 2024, there was $3.1 billion of total unrecognized compensation cost related to outstanding stock options and RSUs that are expected to be recognized over a weighted-average period of three years.