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Stockholders' Equity (Tables) | 12 Months Ended
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Dec. 31, 2023
Stock-based Compensation Expense | Stock-based compensation related to our stock-based awards and employee stock purchase plan for the year ended December 31, 2023, 2022 and 2021 is as follows (in thousands):
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Cost of net revenues |  | $ | 7,462 |  |  | $ | 6,438 |  |  | $ | 5,633 |
Selling, general and administrative |  | 115,992 |  |  | 103,134 |  |  | 90,659 |
Research and development |  | 30,572 |  |  | 23,795 |  |  | 18,044 |
Total stock-based compensation |  | $ | 154,026 |  |  | $ | 133,367 |  |  | $ | 114,336 |
Fair value assumptions using the Monte Carlo simulation | The weighted average assumptions used in the Monte Carlo simulation were as follows:
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Expected term (in years) |  | 3.0 |  | 3.0 |  | 3.0
Expected volatility |  | 59.1 | % |  | 53.8 | % |  | 56.3 | %
Risk-free interest rate |  | 4.3 | % |  | 1.7 | % |  | 0.2 | %
Expected dividends |  | — |  |  | — |  |  | — |
Weighted average fair value per share at grant date |  | $ | 629.53 |  |  | $ | 915.22 |  |  | $ | 1,102.09 |
Schedule of ESPP share activity | The following table summarizes the ESPP shares issued:
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Number of shares issued (in thousands) |  | 114 |  |  | 86 |  |  | 131 |
Weighted average price |  | $ | 234.19 |  |  | $ | 305.24 |  |  | $ | 195.44 |
Schedule of Weighted Average Assumptions | The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:
|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Expected term (in years) |  | 1.2 |  | 1.5 |  | 1.1
Expected volatility |  | 56.4 | % |  | 50.2 | % |  | 52.7 | %
Risk-free interest rate |  | 4.9 | % |  | 1.8 | % |  | 0.1 | %
Expected dividends |  | — |  |  | — |  |  | — |
Weighted average fair value at grant date |  | $ | 132.94 |  |  | $ | 159.44 |  |  | $ | 246.84 |
Restricted Stock Units (RSUs) |
Summary of Nonvested Shares | A summary for the year ended December 31, 2023 is as follows:
|  | Number of Shares Underlying RSUs (in thousands) |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value (in thousands)
Unvested as of December 31, 2022 |  | 489 |  |  | $ | 427.23 |  |  |  |  |
Granted |  | 509 |  |  | 316.16 |  |  |  |  |
Vested and released |  | (201) |  |  | 376.41 |  |  |  |  |
Forfeited |  | (61) |  |  | 386.66 |  |  |  |  |
Unvested as of December 31, 2023 |  | 736 |  |  | $ | 367.63 |  |  | 1.4 |  | $ | 201,789 |
Market Performance Based Restricted Stock Units |
Summary of Nonvested Shares | The following table summarizes MSU activity for the year ended December 31, 2023:
|  | Number of Shares Underlying MSUs (in thousands) |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value (in thousands)
Unvested as of December 31, 2022 |  | 144 |  |  | $ | 725.73 |  |  |  |  |
Granted |  | 82 |  |  | 629.53 |  |  |  |  |
Vested and released |  | (25) |  |  | 392.67 |  |  |  |  |
Forfeited |  | (43) |  |  | 423.87 |  |  |  |  |
Unvested as of December 31, 2023 |  | 158 |  |  | $ | 811.06 |  |  | 1.4 |  | $ | 43,197 |

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