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Stockholders' Equity | 12 Months Ended
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Dec. 31, 2020
Equity [Abstract] |
Stockholders' Equity | 11. Stockholders’ Equity Common Stock The holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. The common stock confers upon its holders the right to receive dividends out of any assets legally available, when and as declared by the Board of Directors. In August 2019, the Company repurchased 26,659 shares of common stock at an average price per share of $6.91 pursuant to its contractual right of first refusal for offers made by third parties to acquire outstanding shares from existing stockholders. The repurchased shares were recorded as treasury shares. The Company had 615,980 shares of treasury stock as of December 31, 2020 and 2019, and 589,320 shares of treasury stock as of December 31, 2018. Common Stock Warrants In February and June of 2016, the Company issued common stock warrants to non-employees to acquire 71,280 and 69,114 shares of the Company’s common stock at an exercise price of $0.86 and $1.41 per share, respectively. The common stock warrants expire on the fifth anniversary of the grant. Additionally, in connection with the IPO on October 25, 2019, all outstanding convertible preferred warrants were converted to common stock warrants. As of December 31, 2020 and 2019, the Company had 1,419,415 and 1,607,864 common stock warrants outstanding, respectively. For the year ended December 31, 2020, 188,449 common stock warrants were exercised for 177,854 shares of common stock at a weighted average exercise price of $1.73. For the year ended December 31, 2019, 482,661 warrants were exercised for 441,307 shares of common stock at a weighted average exercise price of $1.59. In addition, 69,114 warrants were cancelled in 2019. The Company did not recognize compensation expense relating to the common stock warrants for the years ended December 31, 2020 and 2019 as they were all fully vested. For the years ended December 31, 2018, the Company recognized total compensation expense of $0.3 million relating to the common stock warrants. Stock Incentive Plan In October 2019, the Company’s Board of Directors and stockholders adopted and approved the 2019 Equity Incentive Plan, as amended (the “2019 Plan”), as the successor to continuation of the Company’s 2017 Equity Incentive Plan, as amended (the “2017 Plan”). No further grants were made under the 2017 Plan from the date that the 2019 Plan became effective. Initially, the maximum number of shares issuable under the 2019 Plan will not exceed 19,198,875 shares of common stock, which is the sum of 1) 2,640,031 new shares and 2) an additional number of shares not to exceed 16,558,844 consisting of (a) shares that remained available for the issuance of awards under the 2017 Plan immediately prior to the effective date of the 2019 Plan and (b) shares of our common stock subject to outstanding stock options or other stock awards granted under our 2017 Plan that, on or after the date the 2019 Plan became effective, terminate, expire or are cancelled prior to exercise or settlement; are forfeited or repurchased because of the failure to vest; or are reacquired or withheld (or not issued) to satisfy a tax withholding obligation or the purchase or exercise price, if any, as such shares become available from time to time. As of December 31, 2018, the Company maintained two equity incentive plans: (i) the 2008 Stock Plan (the “2008 Plan”) and (ii) the 2017 Plan. All awards issued in 2018 were issued pursuant to the 2017 Plan. Under the Company’s 2017 Plan and consistent with the 2008 Plan, options and other stock awards to purchase shares of common stock may be granted to employees, directors, and consultants. Incentive stock options are granted to employees and non-statutory stock options are granted to consultants and directors at an exercise price not less than 100% of the fair value (as determined by the Board of Directors) of the Company’s common stock on the date of grant. The exercise price of options granted to stockholders who hold 10% or more of the Company’s common stock on the option grant date shall not be less than 110% of the fair value of the Company’s common stock on the date of grant for both incentive and non-qualified stock option grants. These options generally vest over four years and expire ten years from the date of grant. Stock option grants may be exercisable upon grant, and any unvested shares purchased are subject to repurchase. There were no unvested shares subject to repurchase as of December 31, 2020, 2019, and 2018. As of December 31, 2020 and 2019, 5,287,341 and 3,124,254 shares of common stock, respectively, remained available for future grants under the 2019 Plan. Under the 2019 Plan, subject to any adjustments necessary to implement any capitalization adjustments, an annual increase to the number of shares issuable is automatically added on January 1 of each year for a period of ten years commencing on January 1, 2020 and ending on (and including) January 1, 2029, in an amount equal to 4% of the total number of shares of common stock outstanding on December 31 of the preceding year. Stock Options Stock options are exercisable based on the terms and conditions outlined in the applicable award agreement. Stock options generally vest over four years and expire ten years from the date of grant. A summary of the Company’s stock option activity for the year ended December 31, 2020 is as follows:
|  |  |  |  |  |  | Weighted |  |  |
|  |  |  | Weighted |  | Average |  |  |
|  |  |  | Average |  | Remaining |  | Aggregate
|  | Number of |  | Grant Date |  | Contractual |  | Intrinsic
|  | Shares |  | Fair Value |  | Life (Years) |  | Value
|  |  |  |  |  |  |  |  | (In thousands)
Outstanding at December 31, 2019 |  | 15,721,085 |  | $ | 2.44 |  | 8.4 |  | $ | 165,906
Granted |  | 1,375,738 |  |  | 26.56 |  |  |  |  |
Exercised |  | (2,979,700) |  |  | 1.82 |  |  |  |  |
Forfeited |  | (725,582) |  |  | 3.14 |  |  |  |  |
Cancelled |  | (7,240) |  |  | 1.42 |  |  |  |  |
Outstanding at December 31, 2020 |  | 13,384,301 |  | $ | 5.03 |  | 7.7 |  | $ | 500,053
Exercisable at December 31, 2019 |  | 4,349,090 |  | $ | 0.96 |  | 7.4 |  | $ | 52,367
Exercisable at December 31, 2020 |  | 7,343,948 |  | $ | 2.02 |  | 7.1 |  |  | 296,496
The total intrinsic value of options exercised was $79.6 million, $50.8 million, and $59.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. The weighted average grant date fair value of options granted was $26.56, $2.68, and $1.14 in the years ended December 31, 2020, 2019 and 2018, respectively. The total grant date fair value of options vested was $9.3 million, $2.8 million, and $3.7 million in the years ended December 31, 2020, 2019 and 2018, respectively. The total unrecognized compensation cost related to unvested options was approximately $26.2 million at December 31, 2020. The weighted-average remaining recognition period is approximately 2.8 years. Certain weighted-average information and assumptions used in the option-pricing model for options granted to employees, directors, and non-employees are as follows:
|  | Year Ended December 31
|  | 2020 |  | 2019 |  | 2018
Expected term (in years) |  | 5.50 - 6.11 |  | 5.63 - 6.28 |  | 5.38 - 6.10
Risk-free interest rate |  | 0.3% - 1.7% |  | 1.5% - 2.5% |  | 2.6% - 3.1%
Expected volatility |  | 49.2% - 54.7% |  | 48.6% - 49.0% |  | 48.1% - 48.9%
Expected dividend rate |  | — |  | — |  | —
Restricted Stock Units During the year ended December 31, 2020, the Company began granting restricted stock units under the 2019 Equity Incentive Plan. Restricted stock units vest based on the terms outlined in the applicable award agreement, which is generally over a period of 4 years. A summary of the Company’s restricted stock unit activity is as follows:
|  |  |  |  | Weighted
|  | Number |  |  | Average
|  | of |  |  | Grant Date
|  | Shares |  |  | Fair Value
Outstanding at December 31, 2019 |  | — |  | $ | —
Granted |  | 558,008 |  | $ | 25.46
Vested |  | (48,096) |  | $ | 26.08
Forfeited |  | (20,845) |  | $ | 23.76
Outstanding at December 31, 2020 |  | 489,067 |  | $ | 25.47
The total intrinsic value of restricted stock units vested was $1.4 million for the year ended December 31, 2020. The weighted-average grant date fair value of restricted stock units granted was $25.46 for the year ended December 31, 2020. The total unrecognized compensation cost related to unvested restricted stock units was approximately $11.1 million at December 31, 2020. The weighted-average remaining recognition period is approximately 3.1 years. Share-Based Compensation Expense The following table summarizes stock-based compensation expense for employees, which was included in the statements of operations and comprehensive loss as follows (in thousands):
|  | Year Ended
|  | December 31
|  | 2020 |  | 2019 |  | 2018
Cost of services |  | $ | 3,056 |  | $ | 537 |  | $ | 96
Selling and marketing |  |  | 2,066 |  |  | 900 |  |  | 366
General and administrative |  |  | 7,699 |  |  | 3,624 |  |  | 2,535
Total stock-based compensation expense |  | $ | 12,821 |  | $ | 5,061 |  | $ | 2,997

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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