STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2025

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 three months ended March 31, 2025, the Company repurchased 6.8 million shares of its Class A common stock for an aggregate amount of $445.3 million. As of March 31, 2025, $2.2 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.

Conversion of Convertible Notes and Exercise of Convertible Note Hedges

As of the maturity date on March 1, 2025, certain holders of the 2025 Convertible Notes had converted an immaterial aggregate principal amount of their 2025 Convertible Notes. The Company settled the conversions through the issuance of an immaterial amount of shares of the Company's Class A common stock and paid a total of $1.0 billion in cash to settle the remaining unconverted principal balance, and interest, as of March 1, 2025. Additionally, there were no convertible note hedges, and no shares were received as of March 31, 2025.

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 March 31, 2025, there were 138.4 million shares available for future issuance under our 2015 Plan.

A summary of stock option activity for the three months ended March 31, 2025 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	2,578	$	72.17	5.11	$	67,966
Granted	—	—
Exercised	(147)	15.54
Forfeited	—	—
Expired	(9)	185.89
Outstanding, end of the period	2,422	$	75.19	5.12	$	16,155

Exercisable, end of the period	1,863	$	74.58	4.10	$	16,155

Restricted Stock Activity

Activity related to restricted stock units ("RSUs") during the three months ended March 31, 2025 is set forth below (in thousands, except per share data):


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested, beginning of the year	37,079	$	70.51
Granted	1,344	85.10
Vested	(3,857)	77.94
Forfeited	(1,434)	69.83
Unvested, end of the period	33,132	$	70.27

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 March 31,
	2025		2024
Cost of revenue	$	156	$	173
Product development	222,541		221,954
Sales and marketing	33,350		31,368
General and administrative	59,189		57,673
Total	$	315,236	$	311,168

The Company capitalized $8.9 million and $6.5 million of share-based compensation expense related to software costs during the three months ended March 31, 2025 and March 31, 2024, respectively.

As of March 31, 2025, there was $2.3 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 2.4 years.