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Equity Incentive Plans
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans Equity Incentive Plans
Stock-based Compensation
The Company recorded stock-based compensation expense in the condensed consolidated statement of operations for the periods presented as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Cost of revenue$1,835 $1,453 $3,296 $2,467 
Research and development19,560 15,579 37,340 26,870 
Selling, general and administrative24,301 19,281 47,161 33,023 
Total stock-based compensation expense$45,696 $36,313 $87,797 $62,360 
Restricted Stock Units
Restricted stock unit activity for the six months ended June 30, 2023 is as follows:
Restricted Stock
Units		Weighted-Average
Grant Date Fair Value
(per share)
Outstanding as of December 31, 20225,836,192 $52.21 
Granted1,948,808 50.68 
Vested(922,619)61.97 
Cancelled(428,549)57.69 
Outstanding as of June 30, 20236,433,832 $49.98 
Stock Options
Stock option activity for the six months ended June 30, 2023 is as follows:
Stock OptionsWeighted-Average
Exercise Price
Outstanding as of December 31, 20227,964,557 $37.10 
Granted300,870 50.80 
Exercised(1,088,527)5.02 
Cancelled and forfeited(169,273)82.96 
Outstanding as of June 30, 20237,007,627 $41.56 
Market-based Performance Stock Awards
In March 2023, the Company granted 172,842 performance restricted stock unit awards (PSAs) under the 2019 Plan to certain members of management, which are subject to the achievement of certain stock price thresholds established by the Company's Compensation Committee of the Board of Directors.
The PSAs each vest in equal installments upon the achievement of stock price thresholds of $72.14, $96.19 and $120.24 respectively, calculated based on the volume-weighted average price per share of the Company’s Class A common stock over the immediately trailing 20 trading day period for each respective threshold. The stock price thresholds can be met any time prior to the fifth anniversary of the date of grant. The vesting of the PSAs can also be triggered upon certain change in control events and achievement of certain change in control price thresholds or in the event of death or disability. The weighted-average grant date fair value of the PSAs was $43.13. Stock-based compensation expense recognized for these market-based awards was approximately $1.8 million and $2.0 million for the three and six months ended June 30, 2023.
The Company estimates the fair values of shares granted under the PSAs using a Monte Carlo simulation model with the following assumptions:
Expected volatility 71%
Risk-free interest rate3.7%
Expected dividend—%
In September 2022, the Company granted 709,025 PSAs including performance stock options and RSUs under the 2019 Plan to certain members of management, which are subject to the achievement of certain stock price thresholds established by the Company's Compensation Committee of the Board of Directors.
As of June 30, 2023, none of the stock price thresholds had been met for any of the PSAs, resulting in no shares vesting or becoming exercisable.
2019 Employee Stock Purchase Plan
A total of 3,486,671 shares of Class A common stock were reserved for issuance under the 2019 Employee Stock Purchase Plan ("ESPP"). The price at which Class A common stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first day of the offering period or purchase date, whichever is lower.
During the three months ended June 30, 2023 and 2022, 117,280 and 91,871 shares of Class A common stock, respectively, were issued under the ESPP. There were no shares of Class A common stock issued under the ESPP during the three months ended March 31, 2023 and 2022. As of June 30, 2023, there were 2,991,320 shares available for issuance under the ESPP.