In June 2021, the Company’s Board of Directors adopted, and its stockholders approved, the 2021 Omnibus Incentive Plan (the “2021 Plan”) and the 2021 Employee Stock Purchase Plan (“ESPP”). The 2021 Plan provides for the grant of restricted shares, restricted share units (“RSUs”), performance shares, performance share units (“PSUs”), deferred share units, share options and share appreciation rights. All employees, non-employee directors and selected third-party service providers of the Company and its subsidiaries and affiliates are eligible to receive grants under the 2021 Plan. Eligible employees may purchase the Company’s common stock under the ESPP.

The Company has granted time-based and performance-based stock options, RSUs and 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 options granted generally become exercisable ratably over a four-year period following the date of grant and expire ten years from the date of grant.

Stock option activity under the Company’s equity incentive plans during the six months ended December 31, 2024 was as follows (in thousands, except per share data):


	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (1)
Balance as of June 30, 2024		6,866		$	10.40		4.4	$	180,360
Exercised		(3,161	)		10.31
Forfeited		(24	)		22.61
Balance as of December 31, 2024		3,681		$	10.40		3.9	$	197,632
Vested and exercisable as of December 31, 2024		3,604		$	10.14		3.8	$	194,412
Vested and expected to vest as of December 31, 2024		3,681		$	10.40		3.9	$	197,632

(1)

Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of the Company’s common stock as of the end of the period, multiplied by the number of stock options outstanding.

There were no stock options granted during the six months ended December 31, 2024. The total intrinsic value of stock options exercised and the proceeds from option exercises during the six months ended December 31, 2024 were $125.9 million and $32.6 million, respectively.

During the six months ended December 31, 2024, the Company granted PSUs to certain of its employees with vesting terms based on meeting certain operating performance targets, including annual recurring revenue and profitability targets, and continued service conditions. The Company also granted RSUs to certain employees that vest based on continued service.

PSU activity during the six months ended December 31, 2024 was as follows (in thousands, except per share data):


	Number of Shares			Weighted- Average Grant Date Fair Value
Balance as of June 30, 2024		2,550		$	29.48
Granted		1,091			38.45
Vested		(731	)		25.34
Forfeited		(166	)		29.22
Balance as of December 31, 2024		2,744		$	34.16

RSU activity during the six months ended December 31, 2024 was as follows (in thousands, except per share data):


	Number of Shares			Weighted- Average Grant Date Fair Value
Balance as of June 30, 2024		2,524		$	30.84
Granted		1,940			44.35
Vested		(651	)		33.33
Forfeited		(177	)		33.16
Balance as of December 31, 2024		3,636		$	37.49

The Company recorded stock-based compensation expense in the unaudited condensed consolidated statements of operations as follows (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2024		2023		2024		2023
Cost of revenues
Cost of SaaS	$	851	$	427	$	1,515	$	840
Cost of license		199		159		388		287
Cost of professional services		1,652		1,432		3,031		2,765
Research and development		6,800		4,468		11,424		9,114
Sales and marketing		7,232		4,888		12,970		10,227
General and administrative		8,677		5,134		16,072		12,032
Total stock-based compensation	$	25,411	$	16,508	$	45,400	$	35,265

During the six months ended December 31, 2024, the Company modified the performance conditions related to certain PSU awards, which results in an improbable-to-probable modification with an increase in unrecognized stock-based compensation expense of approximately $14.8 million to be recognized through the remaining requisite service period.

As of December 31, 2024, there was approximately $179.4 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 2.5 years.

Under the ESPP, eligible employees may purchase the Company’s common stock at a price equal to 85% of the lower of the fair market value of the Company’s common stock on the offering date or the applicable purchase date. The ESPP provides an offering period that begins on June 1 and December 1 of each year and each offering period consists of one six-month purchase period. During the six months ended December 31, 2024, 67,464 shares were purchased under the ESPP.

As of December 31, 2024, total unrecognized compensation cost related to the ESPP was $0.6 million, which will be amortized over a weighted-average vesting term of 0.4 years.