Stock-Based Compensation Expense

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

12. Stock-Based Compensation Expense

The following two tables show stock-based compensation expense by award type and where the stock-based compensation expense is recorded in the Company’s consolidated statements of operations:


	Three Months Ended March 31,
	2023		2022
	(in thousands)
Options	$	2,707	$	1,999
RSUs		73,032		40,807
PSUs		3,234		—
Employee stock purchase plan		4,064		2,898
Total stock-based compensation expense	$	83,037	$	45,704

In the first quarter of 2023, the Compensation Committee of the Board of Directors approved the grant of performance-based restricted stock units (“PSUs”) that are eligible to be earned upon the achievement of a pre-determined revenue growth metric. To the extent earned, 33% of the PSUs will vest in the first quarter of 2024 and the remaining 67% will vest in eight equal quarterly installments thereafter. No PSUs will be earned if the pre-determined revenue growth metric is not achieved, and the overall number of shares that may be earned shall not exceed 150% of the target award. Stock-based compensation costs for PSUs are recognized

using the graded vesting attribution method over the requisite service period.

Effect of stock-based compensation expense on income by line item:


	Three Months Ended March 31,
	2023		2022
	(in thousands)
Cost of revenue, subscription	$	2,745	$	1,823
Cost of revenue, professional services and other		1,087		835
Research and development		33,324		16,986
Sales and marketing		30,169		16,869
General and administrative		15,712		9,191
Total stock-based compensation expense	$	83,037	$	45,704

Capitalized software development costs excluded from stock-based compensation expense is $4.6 million for the three months ended March 31, 2023 and $1.6 million for the three months ended March 31, 2022. Also excluded in the three months ended March 31, 2023 is $1.0 million of stock-based compensation expense incurred in connection with the Restructuring Plan. See Note 14 for more details.