STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 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. 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. During the nine months ended September 30, 2024, the Company repurchased 14.6 million shares of its Class A common stock for an aggregate amount of $987.2 million. As of September 30, 2024, $2.9 billion remained available and authorized for repurchases under this share repurchase program.

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 September 30, 2024, there were 140.0 million shares available for future issuance under our 2015 Plan.

A summary of stock option activity for the nine months ended September 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	(1,802)	18.09
Forfeited	(136)	78.31
Expired	(96)	142.49
Outstanding, end of the period	3,535	$	63.27	4.11	$	64,575

Exercisable, end of the period	2,701	$	57.89	3.08	$	63,593

Restricted Stock Activity

Activity related to RSUs during the nine months ended September 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	19,006	71.12
Vested	(12,242)	80.28
Forfeited	(7,600)	74.90
Unvested, end of the period	39,263	$	71.25

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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cost of revenue	$	180	$	143	$	534	$	427
Product development	228,300		245,244		679,584		666,512
Sales and marketing	34,891		35,703		98,435		97,858
General and administrative	60,684		64,600		177,038		179,732
Total	$	324,055	$	345,690	$	955,591	$	944,529

The Company capitalized $12.4 million and $29.5 million of share-based compensation expense related to software costs during the three and nine months ended September 30, 2024, respectively, compared to $9.4 million and $22.5 million during the three and nine months ended September 30, 2023, respectively.

As of September 30, 2024, there was $2.7 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.