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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The following are descriptions for stock plans that govern a significant amount of outstanding equity awards as of December 31, 2024: 2008 Stock Option Plan In connection with the Company’s initial public offering on June 22, 2016, the 2008 Stock Option Plan, as amended and restated (the “2008 Plan”), was terminated and, accordingly, no shares were available for issuance after the termination. As of December 31, 2024 and 2023, all remaining outstanding stock options granted under the 2008 Plan were vested and exercisable and continue to be governed by the provisions of this plan. 2016 Stock Option Plan The Company’s 2016 Stock Option and Incentive Plan (the “2016 Plan”) became effective on June 21, 2016. The 2016 Plan provides for the grant of ISOs, NSOs, restricted stock awards, RSUs, stock appreciation rights, unrestricted stock awards, performance share awards, dividend equivalent rights and cash-based awards to employees, directors and consultants of the Company. A total of 11,500,000 shares of the Company’s Class A common stock were initially reserved for issuance under the 2016 Plan. These available shares automatically increase each January 1, beginning on January 1, 2017, by 5% of the number of shares of the Company’s Class A and Class B common stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s compensation committee. On January 1, 2024 and 2023, the shares available for grant under the 2016 Plan were automatically increased by 9,097,289 shares and 9,298,785 shares, respectively. Under the 2016 Plan, the stock options are granted at a price per share not less than 100% of the fair market value per share of the underlying common stock on the date of grant. 2016 Employee Stock Purchase Plan The Company’s 2016 ESPP was effective on June 21, 2016. A total of 2,400,000 shares of the Company’s Class A common stock were initially reserved for issuance under the 2016 ESPP. These available shares automatically increase each January 1, beginning on January 1, 2017, by the lesser of 1,800,000 shares of the Company's Class A common stock, 1% of the number of shares of the Company’s Class A and Class B common stock outstanding on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s compensation committee. On January 1, 2024 and 2023, the shares available for grant under the 2016 ESPP were automatically increased by 1,800,000 shares. The 2016 ESPP allows eligible employees to purchase shares of the Company’s Class A common stock at a discount of 15% through payroll deductions of their eligible compensation, subject to any plan limitations. The 2016 ESPP provides for separate six-month offering periods beginning in May and November of each year. On each purchase date, eligible employees purchase shares of the Company’s Class A common stock at a price per share equal to 85% of the lesser of (i) the fair market value of the Company’s Class A common stock on the offering date or (ii) the fair market value of the Company’s Class A common stock on the purchase date. As of December 31, 2024, total unrecognized compensation cost related to the 2016 ESPP was not significant. Stock-options and restricted stock units and awards activity under the Company’s equity incentive plans is as follows: Stock Options
|  | Number of options outstanding |  | Weighted- average exercise price (Per share) |  | Weighted- average remaining contractual term (In years) |  | Aggregate intrinsic value (In thousands)
Outstanding options as of December 31, 2023 |  | 1,722,861 |  |  | $ | 71.13 |  |  | 4.45 |  | $ | 56,007 |
Exercised |  | (181,818) |  |  | $ | 23.88 |  |  |  |  |
Forfeited and canceled |  | (218,867) |  |  | $ | 92.18 |  |  |  |  |
Outstanding options as of December 31, 2024 |  | 1,322,176 |  |  | $ | 74.15 |  |  | 3.05 |  | $ | 74,838 |
Options vested and exercisable as of December 31, 2024 |  | 1,317,265 |  |  | $ | 73.30 |  |  | 3.03 |  | $ | 74,838 |
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022 |  |
|  | (In thousands, except per share amounts)
Aggregate intrinsic value of stock options exercised (1) |  | $ | 8,649 |  |  | $ | 15,242 |  |  | $ | 80,839 |  |  |
Total estimated grant date fair value of options vested |  | $ | 9,351 |  |  | $ | 28,619 |  |  | $ | 77,403 |  |  |
Weighted-average grant date fair value per share of options granted |  | $ | — |  |  | $ | — |  |  | $ | 50.66 |  |  |
____________________________________ (1) Aggregate intrinsic value represents the difference between the fair value of the Company’s Class A common stock as reported on the New York Stock Exchange and the exercise price of outstanding “in-the-money” options. As of December 31, 2024, total unrecognized compensation cost related to all unvested stock options was not significant. Restricted Stock Units
|  | Number of awards outstanding |  | Weighted- average grant date fair value (Per share) |  | Aggregate intrinsic value (In thousands)
Unvested RSUs as of December 31, 2023 |  | 18,755,538 |  |  | $ | 87.56 |  |  | $ | 1,422,983 |
Granted |  | 10,584,021 |  |  | $ | 61.86 |  |  |
Vested |  | (6,639,672) |  |  | $ | 92.70 |  |  |
Forfeited and canceled |  | (4,313,616) |  |  | $ | 83.09 |  |  |
Unvested RSUs as of December 31, 2024 |  | 18,386,271 |  |  | $ | 71.96 |  |  | $ | 1,394,966 |
In 2024, the Company granted 516,626 shares of PSUs to certain of its executive employees. These awards are included in the table above. The awards had an aggregate grant date fair value of $34.5 million. The PSUs will vest if certain operational performance or market conditions, as defined in the grant agreements, are met during the performance period, which expires on December 31, 2026. The final vesting determination will be made by the Company’s Compensation Committee subsequent to the completion of the performance period. At the end of the vesting period the number of shares actually issued may range from 0% to 200% of the target based on levels of performance. In March 2022, the Company granted 919,289 shares of PSUs to certain of its executive employees. These awards are included in the table above. The PSUs were granted with a grant date fair value per share of $157.44 and an aggregate grant date fair value of $144.7 million. Each PSU award consisted of three tranches that would vest separately over distinct service periods if the respective performance conditions, as defined in the grant agreements, were met. The final vesting determination is made by the Company’s Compensation Committee subsequent to the completion of the performance period. The vesting of the first tranche was based on achievement of revenue growth targets with respect to the year ended December 31, 2022. The vesting of the second and third tranches was based on both (a) revenue growth targets and (b) profitability targets achievement with respect to each of the years ended December 31, 2023 and 2024. If performance targets are not achieved, the related tranches are forfeited. Vesting of these PSUs can range up to 100% above the target based on levels of performance and is recorded in stock-based compensation expense in the year during which each tranche vests. As of December 31, 2024, total unrecognized compensation cost related to unvested RSUs was $1.2 billion, which will be amortized over a weighted-average period of 2.5 years. Valuation Assumptions The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the purchase rights issued under the 2016 ESPP:
|  | Year Ended December 31,
Employee Stock Purchase Plan: |  | 2024 |  | 2023 |  | 2022 |  |
Fair value of common stock |  | $61.54 - $96.41 |  | $47.36 - $61.55 |  | $50.81 - $99.68 |  |
Expected term (in years) |  | 0.50 |  | 0.50 |  | 0.50 |  |
Expected volatility |  | 38.6% - 41.8% |  | 45.8% - 57.1% |  | 73.2% - 97.3% |  |
Risk-free interest rate |  | 4.4% - 5.4% |  | 5.3% - 5.4% |  | 1.5% - 4.5% |  |
Dividend rate |  | —% |  | —% |  | —% |  |
Stock-Based Compensation Expense The Company recorded stock-based compensation expense as follows:
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
|  | (In thousands)
Cost of revenue |  | $ | 22,001 |  |  | $ | 26,343 |  |  | $ | 21,136 |
Research and development |  | 330,933 |  |  | 331,526 |  |  | 374,846 |
Sales and marketing |  | 135,331 |  |  | 183,389 |  |  | 240,109 |
General and administrative |  | 125,164 |  |  | 121,584 |  |  | 148,194 |
Restructuring costs |  | 3,178 |  |  | 13,015 |  |  | 14,275 |
Total |  | $ | 616,607 |  |  | $ | 675,857 |  |  | $ | 798,560 |

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