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Stock-Based Compensation (Tables) | 9 Months Ended
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Sep. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the Company’s stock option activity under the 2012 Plan, the 2018 Plan and the 2023 Plan, and related information is as follows:
|  |  | Options Outstanding
| Shares Available for Grant |  | Shares Subject to Options Outstanding |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Life (Years) |  | Aggregate Intrinsic Value
| (unaudited)
|  |  | (in thousands)
Balance as of January 1, 2024 | 12,003,394 |  | 4,012,903 |  | $ | 31.76 |  |  | 6.6 |  | $ | 39,115 |
2018 Plan annual increase(1) | 3,689,000 |  | — |  |  |  |  |  |
Granted | (478,263) |  | 478,263 |  | 23.96 |  |  |  |  |
Exercised | — |  | (581,495) |  | 4.47 |  |  |  |  |
Canceled | 166,790 |  | (166,790) |  | 50.77 |  |  |  |  |
Restricted stock units granted | (1,874,273) |  | — |  | — |  |  |  |  |
Restricted stock units canceled | 682,506 |  | — |  | — |  |  |  |  |
Market-based restricted stock units canceled | 2,260,764 |  | — |  | — |  |  |  |  |
Performance-based restricted stock units granted | (870,268) |  | — |  | — |  |  |  |  |
Performance-based restricted stock units adjusted for performance achievement | (48,234) |  |  | — |  | — |  |  |  |  |
Performance-based restricted stock units canceled | 36,852 |  | — |  | — |  |  |  |  |
Balance as of September 30, 2024 | 15,568,268 |  | 3,742,881 |  | $ | 34.15 |  |  | 6.7 |  | $ | 21,302 |
Vested and Exercisable as of September 30, 2024 |  |  | 2,178,301 |  | $ | 33.96 |  |  | 5.1 |  | $ | 20,696 |
(1)Effective as of January 1, 2024, an additional 3,689,000 shares of common stock became available for issuance under the 2018 Plan, as a result of the operation of an automatic annual increase provision therein.
Schedule of Restricted Stock Activity | A summary of the Company’s restricted stock unit activity excluding the performance-based and market-based restricted stock units under the 2018 Plan and the 2023 Plan, and related information is as follows:
|  | Restricted Stock Units Outstanding |  | Weighted-Average Grant Date Fair Value
|  | (unaudited)
Balance as of January 1, 2024 |  | 4,346,785 |  | $ | 42.63 |
Granted |  | 1,874,273 |  | 21.31 |
Vested and released |  | (572,985) |  | 53.74 |
Canceled |  | (682,506) |  | 46.73 |
Balance as of September 30, 2024 |  | 4,965,567 |  | $ | 32.74 |
A summary of the Company’s PSU activity under the 2018 Plan and related information is as follows:
|  | Performance-based Restricted Stock Units Outstanding |  | Weighted-Average Grant Date Fair Value
|  | (unaudited)
Balance as of January 1, 2024 |  | 412,490 |  | $ | 91.25 |
Granted |  | 870,268 |  | 18.09 |
Vested and released |  | (2,251) |  | 32.86 |
Adjusted for performance achievement |  | 48,234 |  | 32.84 |
Canceled |  | (36,852) |  | 76.65 |
Balance as of September 30, 2024 |  | 1,291,889 |  | $ | 40.30 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table presents the effect of employee and non-employee related stock-based compensation expense:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
|  | (unaudited)
|  | (in thousands)
Cost of precision oncology testing |  | $ | 1,484 |  |  | $ | 1,092 |  |  | $ | 4,020 |  |  | $ | 3,470 |
Cost of development services and other |  | 2,410 |  |  | 436 |  |  | 3,400 |  |  | 1,387 |
Research and development expense |  | 18,643 |  |  | 8,491 |  |  | 38,413 |  |  | 25,390 |
Sales and marketing expense |  | 13,215 |  |  | 5,061 |  |  | 27,633 |  |  | 18,387 |
General and administrative expense |  | 14,017 |  |  | 6,739 |  |  | 30,579 |  |  | 17,805 |
Total stock-based compensation expense |  | $ | 49,769 |  |  | $ | 21,819 |  |  | $ | 104,045 |  |  | $ | 66,439 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The grant date fair value of stock options was estimated using a Black-Scholes option-pricing model with the following weighted-average assumptions:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
|  | (unaudited)
Expected term (in years) |  | 5.81 - 6.09 |  | 5.97 |  | 5.50 - 6.09 |  | 5.50 – 6.10
Expected volatility |  | 68.7% - 69.2% |  | 69.4% |  | 67.8% - 69.4% |  | 69.4% –70.5%
Risk-free interest rate |  | 3.8% - 4.1% |  | 4.2% |  | 3.8% - 4.5% |  | 3.4% – 4.2%
Expected dividend yield |  | —% |  | —% |  | —% |  | —%
The grant date fair value of the stock purchase rights granted under the ESPP for the nine months ended September 30, 2024, and 2023 was estimated using a Black-Scholes option-pricing model with the following assumptions:
|  | Nine Months Ended September 30,
|  | 2024 |  | 2023
|  | (unaudited)
Expected term (in years) |  | 0.50 |  | 0.50
Expected volatility |  | 64.2% |  | 76.6%
Risk-free interest rate |  | 5.4% |  | 5.2%
Expected dividend yield |  | —% |  | —%

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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -SubTopic 10 -Subparagraph (f)(2) -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
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