XML 37 R19.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2021
Stock-Based Compensation |
Stock-Based Compensation | 12. Stock-Based Compensation Employee Equity Incentive Plan On September 20, 2017, the Company established its 2017 Omnibus Equity Incentive Program (the “2017 Plan”) which provides for the granting of equity based awards to certain employees, directors, independent contractors, consultants and agents. Under the 2017 Plan, the Company may grant non-qualified stock options, stock appreciation rights, restricted stock units, and other stock-based awards for up to 22,182 shares of common stock. On April 19, 2021, the Company established its 2021 Omnibus Equity Incentive Plan (“2021 Equity Plan”). The maximum number of shares of common stock available for issuance under the 2021 Equity Plan is equal to the sum of (i) 30,000 shares of common stock and (ii) an annual increase on the first day of each year beginning in 2022 and ending in and including 2031, equal to the lesser of (A) five percent (5%) of the outstanding shares of common stock on the last day of the immediately preceding fiscal year and (B) such lesser amount as determined by the Board’s compensation committee. The 2021 Equity Plan provides for the grant of stock options (including qualified incentive stock options and nonqualified stock options), stock appreciation rights, restricted stock, restricted stock units, dividend equivalents, and other stock or cash settled incentive awards. Any shares covered by an award, or portion of an award, granted under the 2021 Equity Plan that expires or is forfeited, canceled, cash-settled, or otherwise terminated for any reason will again be available for the grant of awards under the 2021 Equity Plan. Options become exercisable subject to vesting schedules up to four years from the date of the grant and subject to certain timing restrictions upon an employee’s separation of service and no later than 10 years after the grant date. Restricted stock units are subject to vesting schedules up to four years from the date of the grant and subject to certain timing restrictions upon an employee’s separation. ​ A summary of stock option activity as of and for the year ended December 31, 2021 is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Stock Option
​ |  | ​ | ​ | ​ | ​ | ​ | Weighted | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Average | ​ | ​ | ​
​ | ​ | ​ | ​ | Weighted | ​ | Remaining | ​ | ​ | ​
​ | ​ | Number of | ​ | Average | ​ | Contractual Life | ​ | Aggregate
​ |  | Options |  | Exercise Price |  | (Years) |  | Intrinsic Value
Outstanding as of January 1, 2021 |  | 14,713 | ​ | $ | 4.47 |  | 7.79 | ​ | $ | 181,914
Options granted |  | 2,677 | ​ | ​ | 31.15 |  | — | ​ |  | —
Options exercised |  | (4,788) | ​ | ​ | 2.62 |  | — | ​ |  | —
Options forfeited |  | (485) | ​ | ​ | 11.01 |  | — | ​ |  | —
Outstanding as of December 31, 2021 |  | 12,117 | ​ | $ | 10.84 |  | 7.53 | ​ | $ | 274,684
Options expected to vest as of December 31, 2021 |  | 4,576 | ​ | $ | 19.70 |  | 9.00 | ​ | $ | 64,265
Options exercisable as of December 31, 2021 |  | 7,077 | ​ | $ | 4.18 |  | 6.49 | ​ | $ | 206,060
​ Stock options include grants to executives that contain both market-based and performance-based vesting conditions. On November 19, 2021, the Company filed a prospectus for certain selling stockholders to sell 8,000 shares of the Company’s common stock (“Secondary Offering”) pursuant to Rule 424(b)(4). The Company did not receive any proceeds from the sale of shares by the selling stockholders. Upon completion of the Secondary Offering, Providence received cumulative cash proceeds that exceeded two times its aggregate cash investment in the Company; therefore, the performance condition was achieved and the stock options tied to the performance condition vested. In connection with the vesting, the Company recorded $2.1 million in the Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2021. For the years ended December 31, 2020 and 2019, the Company did not consider the performance condition to be probable and did not recognize any expense associated with those options. There were no stock options granted that contain both market-based and performance-based vesting conditions during the year ended December 31, 2021. As of December 31, 2021, 842 stock options were exercised with 2,591 market-based and performance-based stock options remain outstanding. During the year ended December 31, 2020, the Company repurchased and cancelled 956 of stock options that contain both market-based and performance-based vesting conditions resulting in $14.5 million in incremental cash-based compensation expense related to the transaction. The Company repurchased and cancelled 2,606 vested stock options from a former executive during the year ended December 31, 2020 for an aggregate purchase price of approximately $15.5 million recorded in Additional Paid-in Capital on the Company’s Consolidated Balance Sheets. The weighted average grant date fair value of options granted for the years ended December 31, 2021, 2020, and 2019 was $13.01, $2.67 and $1.41, respectively. The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $141.0 million, $3.6 million and $0.3 million, respectively. The fair market value of each option granted for the years presented has been estimated on the grant date using the Black-Scholes-Merton option-pricing model with the following assumptions: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2021 |  | 2020 |  | 2019
Risk‑free interest rate (percentage) |  | 0.6. - 1.4 |  | 0.3 - 1.6 |  | 1.6 - 2.6
Expected term (years) |  | 5.8 - 6.1 |  | 5.3 - 6.3 |  | 5.6 - 6.1
Expected dividend yield (percentage) |  | — |  | — |  | —
Expected volatility (percentage) |  | 42.1 - 43.6 |  | 39.9 - 44.1 |  | 35.4 - 40.9
​ The Company’s board of directors (the “Board”) did not declare or pay dividends of the Company’s common or preferred stock during the years ended December 31, 2021 and 2020. ​ A summary of restricted stock unit activity as of and for the year ended December 31, 2021 is as follows: ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Restricted Stock
​ | ​ | ​ | ​ | Weighted
​ | ​ | ​ | ​ | Average Grant
​ | ​ | Number of | ​ | Date Fair
​ |  | Shares |  | Value
Outstanding as of January 1, 2021 | ​ | 1,261 | ​ | $ | 7.74
Granted | ​ | 2,406 | ​ | ​ | 31.22
Vested | ​ | (366) | ​ | ​ | 12.11
Forfeited | ​ | (51) | ​ | ​ | 35.38
Outstanding as of December 31, 2021 |  | 3,250 | ​ | $ | 24.20
​ The total grant date fair value of restricted stock units that vested during the years ended December 31, 2021 and 2020 was $4.4 million and $0.7 million, respectively. The weighted average grant date fair value of restricted stock units granted during the year ended December 31, 2020 was $7.59. In September 2019, the Company granted 37 restricted stock unit awards with a fair value of $3.72 per share. The total fair value of the awards was $0.1 million. During the year ended December 31, 2019, 38 shares vested. As of December 31, 2021, unrecognized stock-based compensation expense was $91.3 million, which is expected to be recognized over a weighted-average period of 1.5 years. Total stock-based compensation expense recorded in the Consolidated Statements of Operations and Comprehensive Income as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
(in thousands) |  | 2021 |  | 2020 |  | 2019
Cost of revenue | ​ | $ | — | ​ | $ | — | ​ | $ | 8
Product development | ​ |  | 4,369 | ​ |  | 673 | ​ |  | 305
Sales, marketing and customer support | ​ |  | 6,375 | ​ |  | 6,151 | ​ |  | 450
General and administrative | ​ |  | 11,143 | ​ |  | 13,703 | ​ |  | 917
Total stock‑based compensation | ​ | $ | 21,887 | ​ | $ | 20,527 | ​ | $ | 1,680
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Non‑cash stock‑based compensation expense | ​ | $ | 21,887 | ​ | $ | 5,984 | ​ | $ | 1,680
Cash‑based compensation expense (a) | ​ |  | — | ​ |  | 14,543 | ​ |  | —
Total stock‑based compensation | ​ | $ | 21,887 | ​ | $ | 20,527 | ​ | $ | 1,680
(a) | Includes incremental cash-based compensation paid in connection with repurchased and cancelled stock options of 956 that contain both market-based and performance-based vesting conditions.
​ Employee Stock Purchase Plan ​ In March 2021, the Board approved the Company’s 2021 ESPP, and employees became eligible to enroll in August 2021. The ESPP qualifies as an “employee stock purchase plan” under Section 423 of the U.S. Internal Revenue Code of 1986, as amended. The Company reserved 3,000 shares of common stock for sale under the ESPP. The share reserve increases on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031, equal to the lesser of (i) one percent (1%) of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as is determined by the Board. Purchases are accomplished through participation in discrete offering periods. Currently, the ESPP is available only to U.S. based employees; the Company is reviewing offering the ESPP program to employees in non-U.S. jurisdictions. The first offering and purchase period began on September 1, 2021 and ended on November 30, 2021 and the second offering and purchase period began on December 1, 2021 and will end on May 31, 2022. The Company expects the program to continue consecutively for six-month offering periods for the foreseeable future. Under the ESPP, eligible employees are able to acquire shares of the Company’s common stock by accumulating funds through payroll deductions. Company employees in the United States generally are eligible to participate in the ESPP if they are a full-time employee and have completed six months of continuous service with the Company as of the last day of the enrollment period. Eligible employees are able to select a rate of payroll deduction between 1% and 15% of their compensation, up to a $25 annual contribution limit. The purchase price for shares of common stock purchased under the ESPP is 85% of the lesser of the fair market value of the common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of the applicable offering period. An employee’s participation automatically ends upon termination of employment for any reason. A participant may cancel enrollment or lower their contributions once during an offering period, but no later than 30 days before the end of an offering period. Upon the termination of an employee’s participation in the ESPP, payroll deductions will be stopped and refunded. Stock-based compensation expense for the ESPP is recognized on a straight-line basis over the requisite service period of each award. The ESPP also has a six-month holding period after the purchase date of the offering period. Stock-based compensation expense related to ESPP totaled $0.1 million for year ended December 31, 2021.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration