XML 46 R21.htm IDEA: XBRL DOCUMENT v3.22.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock‑Based Compensation
We recorded stock-based compensation expense related to grants to employees on our consolidated statements of operations as follows (in thousands):
Year Ended December 31,
202220212020
Cost of revenue$57,309 $24,811 $10,626 
Research and development283,312 165,604 66,038 
Sales and marketing118,173 70,663 23,769 
General and administrative91,271 86,081 34,196 
Total stock-based compensation expense$550,065 $347,159 $134,629 
Unrecognized compensation expense is as follows (in thousands, except for weighted-average remaining vesting period):
December 31, 2022
Unrecognized Compensation ExpenseWeighted-Average Remaining Vesting Period (In Years)
Outstanding stock options$124,265 1.93
Unvested RSUs and PVUs$1,671,647 3.07
2020 ESPP$1,542 0.17
In future periods, stock-based compensation expense may increase as we issue additional equity-based awards to continue to attract and retain employees.
Stock Options
A summary of our stock option activity is as follows:
Options Outstanding (1)
Stock
Options
Outstanding		Weighted-Average
Exercise
Price		Weighted-Average
Remaining
Contractual
Term
(In Years)
Balance as of December 31, 202040,457,875 $8.03 6.87
Granted1,325,352 $107.10 
Exercised(11,650,963)$5.72 
Forfeited, cancelled, or expired(906,223)$13.23 
Balance as of December 31, 202129,226,041 $13.28 6.26
Granted11,835,061 $26.68 
Exercised(4,512,850)$6.69 
Forfeited, cancelled, or expired(829,449)$35.06 
Balance as of December 31, 202235,718,803 $18.05 5.60
Exercisable as of December 31, 202226,628,522 $11.25 4.87
(1)    Includes assumed equity awards from the ironSource Merger.
A summary of intrinsic and fair values of our stock options is as follows (in thousands, except fair value amounts):
Year Ended
December 31, 2022December 31, 2021December 31, 2020
Aggregate pretax intrinsic value of stock options exercised (1)
$274,956 $1,394,721 $441,000 
Weighted-average grant-date fair value of stock options granted$7.54 $39.05 $10.66 
Fair value of stock options vested
$51,962 $48,918 $44,100 
(1)    The intrinsic value is the difference between the estimated fair value of our common stock on the date of exercise and the exercise price for in-the-money options.
The calculated grant-date fair value of stock options granted was estimated using the Black-Scholes option-pricing model with the following assumptions:
Year Ended
December 31, 2022December 31, 2021December 31, 2020
Expected dividend yield———
Risk-free interest rate
1.7% - 3.8%
0.9% - 1.3%
0.4% - 0.6%
Expected volatility
33.3% - 52.2%
32.9% - 36.2%
33.8% - 36.3%
Expected term (in years)6.256.256.00
Fair value of underlying common stock
$36.17 - $89.01
$100.60 - $152.34
$22.00 - $152.00
Restricted Stock Units
A summary of our RSU, including PVU, activity is as follows:
Unvested Restricted Stock Units (1)
Number of
Shares		Weighted-Average
Grant-Date
Fair Value
Unvested as of December 31, 20209,561,791 $53.79 
Granted8,060,505 $112.11 
Vested(3,131,986)$58.23 
Forfeited(793,474)$73.36 
Unvested as of December 31, 202113,696,836 $85.96 
Granted33,548,745 $39.12 
Vested(6,549,420)$70.54 
Forfeited(2,590,699)$71.35 
Unvested as of December 31, 202238,105,462 $48.37 
(1)    Includes assumed equity awards from the ironSource Merger.
The total fair value of RSUs vested as of the vesting dates during the years ended December 31, 2022, 2021, and 2020 was $322.5 million, $442.1 million, and $85.9 million, respectively. No PVUs have vested during the year ended December 31, 2022.
Price-Vested Units
In October 2022, our board of directors granted to certain of our executive officers a total of 989,880 PVUs for which vesting is subject to the fulfillment of both a service period that extends up to four years and the achievement of a stock price hurdle during the relevant performance period that extends up to seven years. The fair value of each PVU award is estimated using a Monte Carlo stimulation that uses assumptions determined on the date of grant.
The following table summarizes the weighted-average assumptions relating to our PVUs:
Year Ended December 31,
2022
Share price on grant date$27.88
Risk-free interest rate4.01%
Expected volatility50%
Expected dividend yield—%
Employee Stock Purchase Plan
The fair value of shares offered under our ESPP was determined using the Black-Scholes option pricing model with the following weighted-average assumptions:
Year Ended December 31,
20222021
Expected dividend yield——
Risk-free interest rate
0.6% - 3.3%
0.1%
Expected volatility
35.5% - 40.0%
27.2%
Expected term (in years)0.500.50
Estimated fair value
$10.51 - $27.42
$28.64
Additional information related to the ESPP is provided below (in thousands, except per share amounts):
Year Ended December 31,
2022
Share issued under the ESPP607,009
Weighted-average price per share issued$54.87
No shares were issued under the ESPP during the year ended December 31, 2021.