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Stock-Based Compensation | 3 Months Ended
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Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock-Based Compensation | Note 10. Stock-Based Compensation Stock awards The Company has granted time-based and performance-based stock options, time-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”), collectively referred to as “Stock Awards”. The Company accounts for stock-based compensation using the fair value method which requires the Company to measure stock-based compensation based on the grant-date fair value of the awards and recognize compensation expense over the requisite service or performance period. Awards that contain only service conditions, are generally earned over four years and expensed on a straight-line basis over that term. Compensation expense for awards that contain performance conditions is calculated using the graded vesting method and the portion of expense recognized in any period may fluctuate depending on changing estimates of the achievement of the performance conditions. Stock option activity under the Company’s equity incentive plans during the three months ended September 30, 2021 was as follows:
|  | Number of Options |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Remaining Contractual Term (in years) |  |  | Aggregate Intrinsic Value (in thousands) |
Outstanding as of June 30, 2021 |  |  | 14,684,809 |  |  | $ | 10.11 |  |  |  | 7.3 |  |  | $ | 262,762 |
Granted |  |  | 91,410 |  |  |  | 33.42 |  |  |  |  |  |  |  |  |
Exercised |  |  | (372,753 | ) |  |  | 6.06 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (102,633 | ) |  |  | 12.96 |  |  |  |  |  |  |  |  |
Outstanding as of September 30, 2021 |  |  | 14,300,833 |  |  | $ | 10.34 |  |  |  | 7.2 |  |  | $ | 221,285 |
Vested and exercisable as of September 30, 2021 |  |  | 8,969,425 |  |  | $ | 7.33 |  |  |  | 6.1 |  |  | $ | 165,275 |
Unvested and early exercised as of September 30, 2021 |  |  | 150,000 |  |  | $ | 14.77 |  |  |  |  |  |  |  |  |
Vested and expected to vest as of September 30, 2021 |  |  | 14,450,833 |  |  | $ | 10.39 |  |  |  | 7.2 |  |  | $ | 222,933 |
The weighted-average grant date fair value of options granted during the three months ended September 30, 2021 was $13.08. The total intrinsic value of options exercised during the three months ended September 30, 2021 was $10.0 million. The proceeds from option exercises totaled $2.3 million during the three months ended September 30, 2021. Performance stock unit activity during the three months ended September 30, 2021 was as follows:
|  | Stock Awards Outstanding |  |  | Weighted- Average Grant Date Fair Value |
Balance as of June 30, 2021 |  |  | 3,950,000 |  |  | $ | 26.00 |
Granted |  |  | 163,527 |  |  |  | 38.18 |
Vested |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |
Balance as of September 30, 2021 |  |  | 4,113,527 |  |  | $ | 26.48 |
Restricted stock unit activity during the three months ended September 30, 2021 was as follows:
|  | Stock Awards Outstanding |  |  | Weighted- Average Grant Date Fair Value |
Balance as of June 30, 2021 |  |  | 46,150 |  |  | $ | 26.00 |
Granted |  |  | 522,751 |  |  |  | 38.03 |
Vested |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |
Balance as of September 30, 2021 |  |  | 568,901 |  |  | $ | 37.05 |
Stock-based compensation expense Total stock-based compensation during the three months ended September 30, 2021 and 2020 included in the unaudited condensed consolidated statements of operations was $19.0 million and $4.6 million, respectively. During the three months ended September 30, 2020, the Company also recognized additional stock-based compensation expense of $0.5 million relating to the buy-back of shares of common stock, which represents the excess between the repurchase price and the fair value of common stock at the date of repurchase. The Company recorded stock-based compensation expense in the unaudited condensed consolidated statements of operations as follows (in thousands):
|  | Three Months Ended September 30, |
|  | 2021 |  |  | 2020 |
Cost of revenues |  |  |  |  |  |  |  |
Cost of SaaS and support |  | $ | 168 |  |  | $ | 42 |
Cost of professional services |  |  | 580 |  |  |  | 204 |
Research and development |  |  | 4,350 |  |  |  | 1,026 |
Sales and marketing |  |  | 6,469 |  |  |  | 1,585 |
General and administrative |  |  | 7,461 |  |  |  | 2,239 |
Total stock-based compensation |  | $ | 19,028 |  |  | $ | 5,096 |
As of September 30, 2021, there was approximately $141.6 million of unrecognized compensation cost related to unvested stock-based awards granted, which is expected to be recognized over the weighted-average period of approximately 2.7 years. The calculated fair value of stock option grants was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:
|  | Three Months Ended September 30, |
|  | 2021 |  |  | 2020 |
Expected dividend yield |  |  | 0 | % |  |  | 0 | %
Risk-free interest rate |  |  | 1 | % |  |  | 0.3 | %
Expected volatility |  |  | 40 | % |  |  | 37 | %
Expected life (in years) |  |  | 6 |  |  |  | 6 |

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