XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Stock-based Compensation | 3 Months Ended
--- | ---
Jan. 01, 2022
Share-based Payment Arrangement [Abstract] |
Stock-based Compensation | Stock-based Compensation 2018 Equity Incentive Plan In July 2018, the Board adopted the 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan became effective in connection with the Company's initial public offering ("IPO"). The number of shares reserved for issuance under the 2018 Plan increases automatically on January 1 of each year beginning in 2019 and continuing through 2028 by a number of shares of common stock equal to the lesser of (x) 5% of the total outstanding shares of the Company’s common stock and common stock equivalents as of the immediately preceding December 31 (rounded to the nearest whole share) and (y) a number of shares determined by the Company's the Board. Stock options Pursuant to the 2018 Plan, the Company issues stock options to employees and directors. The fair value of the stock options is based on the Company’s closing stock price on the trading day immediately prior to the date of grant. The option price, number of shares and grant date are determined at the discretion of the Board. For so long as the option holder performs services for the Company, the options generally vest over 48 months, on a monthly or quarterly basis, with certain options subject to an initial annual cliff vest, and are exercisable for a period not to exceed ten years from the date of grant. The summary of the Company’s stock option activity is as follows:
| Number of Options |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term |  | Aggregate Intrinsic Value
|  |  |  |  | (In years) |  | (In thousands)
Outstanding at October 2, 2021 | 14,545,239 |  |  | $ | 12.86 |  |  | 5.1 |  | $ | 282,141 |
Granted | — |  |  | — |  |  |  |  |
Exercised | (1,076,077) |  |  | 12.29 |  |  |  |  |
Forfeited | (12,043) |  |  | 14.96 |  |  |  |  |
Outstanding at January 1, 2022 | 13,457,119 |  |  | $ | 12.91 |  |  | 5.0 |  | $ | 227,339 |
At January 1, 2022 |  |  |  |  |  |  |
Options exercisable | 12,395,258 |  |  | $ | 12.79 |  |  | 4.8 |  | $ | 210,785 |
Options vested and expected to vest | 13,365,802 |  |  | $ | 12.90 |  |  | 5.0 |  | $ | 225,905 |
As of January 1, 2022, and October 2, 2021, the Company had $4.4 million and $6.2 million, respectively, of unrecognized stock-based compensation expense related to stock options, which are expected to be recognized over weighted-average periods of 0.8 and 0.9 years, respectively. Restricted stock units Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. The fair value of RSUs is based on the Company's closing stock price on the trading day immediately preceding the date of grant. RSUs vest quarterly over the service period, which is generally four years, with certain awards subject to an initial annual cliff vest. The summary of the Company’s RSU activity is as follows:
| Number of Units |  | Weighted-Average Grant Date Fair Value |  | Aggregate Intrinsic Value
|  |  |  |  | (In thousands)
Outstanding at October 2, 2021 | 9,283,525 |  |  | $ | 12.64 |  |  | $ | 299,487 |
Granted | 2,128,485 |  |  | 33.94 |  |  |
Released | (954,296) |  |  | 11.85 |  |  |
Forfeited | (184,013) |  |  | 15.00 |  |  |
Outstanding at January 1, 2022 | 10,273,701 |  |  | $ | 17.08 |  |  | $ | 306,156 |
At January 1, 2022 |  |  |  |  |
Units expected to vest | 8,736,544 |  |  | $ | 16.76 |  |  | $ | 260,349 |
As of January 1, 2022, and October 2, 2021, the Company had $134.5 million and $90.0 million of unrecognized stock-based compensation expense related to RSUs, which are expected to be recognized over weighted-average periods of 2.9 and 2.5 years, respectively. Performance stock units ("PSU") Pursuant to the 2018 Plan, the Company issues PSUs that vest on the satisfaction of service and performance conditions. The Company estimates the fair value of PSUs on the grant date and recognizes compensation expense in the period it becomes probable that performance conditions will be achieved. On a quarterly basis, the Company re-evaluates the assumption of the probability that performance conditions will be satisfied and revises its estimates as appropriate as new or updated information becomes available. The summary of the Company’s PSU activity is as follows:
| Number of Units |  | Weighted-Average Grant Date Fair Value |  | Aggregate Intrinsic Value
|  |  |  |  | (In thousands)
Outstanding at October 2, 2021 | 158,521 |  |  | $ | 22.81 |  |  | $ | 5,114 |
Granted | 252,296 |  |  | 29.71 |  |  |
Vested | — |  |  | — |  |  |
Forfeited | — |  |  | — |  |  |
Outstanding at January 1, 2022 | 410,817 |  |  | $ | 27.05 |  |  | $ | 12,242 |
As of January 1, 2022, and October 2, 2021, the Company had $10.3 million and $3.6 million of unrecognized stock-based compensation expense related to PSUs, which are expected to be recognized over weighted-average periods of 1.4 and 1.2 years, respectively. Stock-based compensation Total stock-based compensation expense by functional category was as follows:
| Three Months Ended
| January 1, 2022 |  | January 2, 2021
(In thousands) |  |  |
Cost of revenue | $ | 328 |  |  | $ | 214 |
Research and development | 6,738 |  |  | 6,258 |
Sales and marketing | 3,647 |  |  | 3,408 |
General and administrative | 6,746 |  |  | 4,964 |
Total stock-based compensation expense | $ | 17,459 |  |  | $ | 14,844 |

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