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Stockholders' Equity and Stock-based Compensation | 3 Months Ended
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Mar. 31, 2025
Equity [Abstract] |
Stockholders' Equity and Stock-based Compensation | Stockholders' Equity and Stock-based Compensation Equity Incentive Plans Restated 2012 Equity Incentive Plan On June 8, 2022 ("Effective Date"), the Company's stockholders approved the Amended and Restated 2012 Equity Incentive Plan (the "Restated 2012 Plan"). Under the Restated 2012 Plan, the Company is authorized to grant to eligible participants incentive stock options, nonstatutory stock options, restricted stock, restricted stock units ("RSUs"), stock appreciation rights, performance units and performance shares. Pursuant to the relevant plan provisions, 3,072 thousand shares were available for grant under the Restated 2012 Plan on the Effective Date. In addition, any outstanding awards or options granted under the previous version of the 2012 Equity Incentive Plan ("Previous 2012 Plan") will be added back to the shares available for grant under the Restated 2012 Plan if they expire unexercised or are otherwise forfeited after the Effective Date. Any remaining shares available for grant under the Previous 2012 Plan as of the Effective Date were no longer available for future grants under the Restated 2012 Plan. On June 12, 2024, the Company's stockholders approved an amendment and restatement to the Restated 2012 Plan to increase the number of shares of the Company's common stock reserved for issuance by 1,092 thousand shares. As of March 31, 2025, 2,251 thousand shares are available for future grants under the Restated 2012 Plan. 2021 Employee Stock Purchase Plan On June 9, 2021, the Company’s stockholders approved the 2021 Employee Stock Purchase Plan (the "ESPP"). A total of 600 thousand shares were authorized for issuance to eligible participating employees upon adoption of the ESPP. The ESPP provides for consecutive 6-month offering periods beginning on or about August 16 and February 16 of each year. Eligible employees who elect to participate can contribute from 1% to 15% of their eligible compensation through payroll withholding. During any offering period, contribution rates cannot be changed. However, eligible employees may withdraw from the current offering period. Any contributions made prior to each purchase date in the case of withdrawal or termination of employment will be refunded. On each purchase date, eligible participating employees will purchase the shares at a price per share equal to 85% of the lesser of (i) the fair market value of the Company's stock on the first trading day of the offering period or (ii) the fair market value of the Company's stock on the purchase date (i.e., the last trading day of the offering period). During the three months ended March 31, 2025, 37 thousand shares were issued in connection with the purchase of common stock by participating employees. As of March 31, 2025, 398 thousand shares were available for future purchase. Stock Options Stock options granted under the Restated 2012 Plan and Previous 2012 Plan (collectively, the "Plans") generally vest based on continued service over four years and expire ten years from the date of grant. A summary of the Company’s stock option activity during the three months ended March 31, 2025 is as follows:
| Outstanding Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life |  | Aggregate Intrinsic Value
| (in thousands) |  |  |  | (Years) |  | (in thousands)
Balance as of December 31, 2024 | 1,314 |  | $ | 113.07 |  |  | 6.6 |  | $ | 40,141 |
Granted | 40 |  | $ | 139.73 |  |  |  |  |
Exercised | (56) |  | $ | 46.41 |  |  |  |  |
Canceled | (21) |  | $ | 141.25 |  |  |  |  |
Balance as of March 31, 2025 | 1,277 |  | $ | 116.35 |  |  | 6.6 |  | $ | 23,831 |
Vested and expected to vest as of March 31, 2025 | 1,165 |  | $ | 113.95 |  |  | 6.3 |  | $ | 23,632 |
Exercisable as of March 31, 2025 | 781 |  | $ | 101.74 |  |  | 5.4 |  | $ | 22,800 |
Restricted Stock Units RSUs granted under the Plans generally only contain a service-based vesting condition that is typically satisfied over four years. The Company, at times, grants performance-based restricted stock units ("PRSU") under the Plans, to its executive officers and certain other members of its senior leadership team. These PRSUs include both service-based and performance-based vesting conditions. During the fourth quarter each year, the Company’s board of directors (the "Board") or the Compensation and Talent Committee ("CTC") approves the target value for the PRSUs. The target PRSUs are scheduled to vest in three equal annual installments over a three-year period, beginning the year after approval. The performance-based vesting condition is satisfied upon the achievement of certain Company annual performance metrics, including revenue growth and adjusted EBITDA margin, which are approved annually by the Board or the CTC. Each annual installments at 200% of the annual target will be considered granted when the performance metrics for the corresponding performance year is determined and approved. The actual number of the PRSUs earned and eligible to vest ranges from 0% to 200% of the annual target, based on the weighted-average achievement of such Company annual performance metrics set for the corresponding annual performance period. Up to 100% of the first and second installment will vest and be released upon completion of the respective performance period following the certification by the Audit and Risk Committee ("ARC"), with cumulative achievement over 100%, if any, to be vested and released at the end of the third year performance period, along with the third installment, following the certification by the ARC. Under the Plan, any unvested PRSU award may be accelerated in part or in full upon the occurrence of certain events, such as death or disability, or a change in control, as defined in the grant agreement. A summary of the Company’s RSU activity, inclusive of PRSU activity, during the three months ended March 31, 2025 is as follows:
| Outstanding RSUs |  | Weighted Average Grant Date Fair Value Per Share
| (in thousands) |  |
Balance as of December 31, 2024 | 1,086 | (1) | $ | 140.72 |
Granted | 192 | (2) | $ | 139.73 |
Vested | (172) | (3) | $ | 147.54 |
Forfeited | (135) | (4) | $ | 152.02 |
Balance as of March 31, 2025 | 971 | (5) | $ | 137.73 |
Outstanding and expected to vest as of March 31, 2025 | 760 |  | $ | 137.06 |
(1)Included 161 thousand PRSUs granted to certain executive officers in 2024, 2023, 2022 and 2021. (2)Included 164 thousand PRSUs granted to certain executive officers in the three months ended March 31, 2025. (3)Included 90 thousand PRSUs granted to certain executive officers in 2024, 2023, 2022 and 2021. (4)Included 70 thousand PRSUs granted to certain executive officers in 2024, 2023, 2022 and 2021. (5)Included 165 thousand PRSUs granted to certain executive officers in 2025, 2024, 2023, 2022 and 2021. Stock-based Compensation The following table shows a summary of the stock-based compensation expenses included in the condensed consolidated statements of operations:
| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
| (in thousands) |  |
Cost of revenues | $ | 2,090 |  |  | $ | 2,020 |  |  |  |  |
Research and development | 5,104 |  |  | 5,303 |  |  |  |  |
Sales and marketing | 3,200 |  |  | 3,739 |  |  |  |  |
General and administrative | 8,426 |  |  | 7,969 |  |  |  |  |
Total stock-based compensation, net of amounts capitalized (1) | $ | 18,820 |  |  | $ | 19,031 |  |  |  |  |
(1)Total stock-based compensation expense capitalized was de minimis during the three months ended March 31, 2025 and 2024. Of the total stock-based compensation expense in the table above, the Company recognized stock-based compensation expenses related to all PRSUs of $3.3 million and $2.8 million during the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, the Company had unrecognized stock-based compensation expenses of $18.1 million, $80.5 million, $10.7 million, and $0.8 million related to options, RSUs, PRSUs, and ESPP purchase rights, respectively, which are expected to be recognized over weighted-average periods of 2.3 years, 2.7 years, 1.0 year, and 0.4 years, respectively. Share Repurchase Program The Company's share repurchase program was authorized by the board of directors as follows:
Announcement Date |  | Authorized Dollar Value
|  | (in millions)
February 12, 2018 |  | $ | 100.0 |
October 30, 2018 |  | 100.0 |
October 30, 2019 |  | 100.0 |
May 7, 2020 |  | 100.0 |
February 10, 2021 |  | 100.0 |
November 3, 2021 |  | 200.0 |
May 4, 2022 |  | 200.0 |
February 9, 2023 |  | 100.0 |
February 7, 2024 |  | 200.0 |
February 6, 2025 |  | 200.0 |
Total as of March 31, 2025 |  | $ | 1,400.0 |
Shares may be repurchased from time to time on the open market in accordance with Rule 10b-18 of the Exchange Act of 1934, including pursuant to a pre-set trading plan adopted in accordance with Rule 10b5-1 under the Exchange Act. All share repurchases have been made using cash resources. Repurchased shares are retired and reclassified as authorized and unissued shares of common stock. On retirement of the repurchased shares, common stock is reduced by an amount equal to the number of shares being retired multiplied by the par value. The excess amount that is retired over its par value is first allocated as a reduction to additional paid-in capital based on the original cost of additional paid-in capital per share of identified issuances. The remaining amount is allocated to accumulated deficit. During the three months ended March 31, 2025 and 2024, the Company repurchased 292 thousand shares and 105 thousand shares of its common stock for approximately $39.6 million and $18.0 million, respectively. As of March 31, 2025, approximately $303.8 million remained available for share repurchases pursuant to the Company's share repurchase program. Excise tax on stock repurchases net of issue was immaterial to the Company's financial results and cash flows for the three months ended March 31, 2025 and 2024 and the Company's financial position as of March 31, 2025 and December 31, 2024.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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