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Share-Based Compensation | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation | Note 13. Share-Based Compensation
The 2021 Stock Option and Incentive Plan (the “2021 Plan”) allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) (including performance stock units, or “PSUs”), dividend equivalents and other stock or cash based awards for issuance to its employees, non-employee directors and non-employee third parties. Shares associated with option exercises and RSU vesting are issued from the authorized pool. Effective January 1, 2023, we approved a plan to allow our non-employee directors to elect, on an annual basis, to defer their cash retainers into equity awards that are immediately vested, and/or to defer their RSU grants, which vest in accordance with the grant terms (collectively referred to as deferred stock units, or “DSUs”). DSUs are equity awards that entitle the holder to shares of our common stock when the awards vest. Directors may choose to receive their deferred stock distributions in a lump sum or in installments over different time periods. DSUs are measured based on the fair value of our common stock on the date of grant. DSU activity is presented with RSUs in the disclosures below. Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the condensed consolidated statements of operations and comprehensive loss:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Technology and product development | $ | 23,725 |  |  | $ | 20,856 |  |  | $ | 66,344 |  |  | $ | 56,690 |
Sales and marketing | 6,330 |  |  | 6,593 |  |  | 20,270 |  |  | 17,734 |
Cost of operations | 2,987 |  |  | 5,075 |  |  | 7,382 |  |  | 14,034 |
General and administrative | 28,963 |  |  | 45,331 |  |  | 108,113 |  |  | 146,560 |
Total | $ | 62,005 |  |  | $ | 77,855 |  |  | $ | 202,109 |  |  | $ | 235,018 |
Total compensation and benefits, inclusive of share-based compensation expense, was $213,820 and $656,483 for the three and nine months ended September 30, 2023, respectively, and $221,423 and $619,441 for the three and nine months ended September 30, 2022, respectively. Compensation and benefits expenses are presented within each of the financial statement line items within noninterest expense in the condensed consolidated statements of operations and comprehensive loss. Stock Options The following is a summary of stock option activity:
| Number of Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (in years)
Outstanding as of January 1, 2023 | 18,749,679 |  |  | $ | 7.43 |  |  | 4.7
Exercised | (747,930) |  |  | 1.34 |  |  |
Expired | (50,093) |  |  | 6.65 |  |  |
Outstanding as of September 30, 2023 | 17,951,656 |  |  | $ | 7.69 |  |  | 4.0
Exercisable as of September 30, 2023 | 17,945,311 |  |  | $ | 7.69 |  |  | 4.0
Total compensation cost related to unvested stock options not yet recognized as of September 30, 2023 was immaterial. Restricted Stock Units RSUs, inclusive of DSUs, are equity awards granted to employees that entitle the holder to shares of our common stock when the awards vest. RSUs are measured based on the fair value of our common stock on the date of grant. The following table summarizes RSU activity:
| Number of RSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2023 | 69,538,139 |  |  | $ | 9.07 |
Granted | 36,048,164 |  |  | 6.40 |
Vested(1) | (24,621,235) |  |  | 8.50 |
Forfeited | (8,320,278) |  |  | 9.01 |
Outstanding as of September 30, 2023 | 72,644,790 |  | $ | 7.97 |
________________________ (1)The total fair value, based on grant date fair value, of RSUs that vested during the nine months ended September 30, 2023 was $209.3 million. As of September 30, 2023, there was $535.4 million of unrecognized compensation cost related to unvested RSUs, inclusive of DSUs, which will be recognized over a weighted average period of approximately 2.2 years. Performance Stock Units The following table summarizes PSU activity:
| Number of PSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2023 | 19,563,747 |  |  | $ | 9.84 |
Granted | 97,752 |  |  | 3.36 |
Forfeited | (3,372,442) |  |  | 7.52 |
Outstanding as of September 30, 2023 | 16,289,057 |  |  | $ | 10.28 |
Compensation cost associated with PSUs is recognized using the accelerated attribution method for each of the three vesting tranches over the respective derived service period. We determined the grant-date fair value of PSUs utilizing a Monte Carlo simulation model. As of September 30, 2023, there was $12.2 million of unrecognized compensation cost related to unvested PSUs, which will be recognized over a weighted average period of approximately 0.9 years.

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