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Equity Incentive Plans and Stock-Based Compensation
 3 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plans and Stock-Based Compensation Equity Incentive Plans, Stock-Based Compensation and Stock Repurchase Program
Equity Incentive Plans

2014 Equity Incentive Plan and 2023 Stock Incentive Plan

The 2014 Equity Incentive Plan (the “2014 Plan”) was in effect until it was replaced by the 2023 Stock Incentive Plan (the “2023 Plan”) on April 1, 2023. No further grants will be made under the 2014 Plan. Both the 2014 Plan and 2023 Plan provide for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), market performance-based RSUs (“PSUs”), stock appreciation rights, performance units and performance shares to our employees, consultants and members of our Board of Directors. As of June 30, 2024, we had 3,537,527 shares available for future grant under the 2023 Plan.

2014 Employee Stock Purchase Plan

The 2014 Employee Stock Purchase Plan, as amended (the “Amended 2014 Purchase Plan”) provides employees with an opportunity to purchase our common stock through accumulated contributions, up to a maximum of 10% of eligible compensation, with offering periods of six months in duration, beginning on or about December 1 and June 1 each year. As of June 30, 2024, the Company had 653,839 shares available for future issuance under the Amended 2014 Purchase Plan.

Stock-Based Compensation

A summary of our stock-based compensation expense is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Stock-based compensation by type of award:
Stock awards$3,978 $3,204 $7,510 $6,648 
Employee stock purchase rights288 268 595 566 
$4,266 $3,472 $8,105 $7,214 
Stock-based compensation by category of expense:
Cost of net revenue$561 $404 $1,017 $815 
Sales and marketing1,102 891 2,136 2,057 
Research and development1,017 807 1,887 1,637 
General and administrative1,586 1,370 3,065 2,705 
$4,266 $3,472 $8,105 $7,214 

As of June 30, 2024, the Company had $41.2 million of unrecognized stock-based compensation expense related to unvested stock-based awards, including common stock acquired under our Amended 2014 Purchase Plan, which will be recognized over a weighted-average period of 2.81 years.
Stock Options

The following table summarizes our stock option activities and related information:
 Number of Shares (thousands)Weighted-Average Exercise Price Per ShareWeighted-Average Remaining Contractual Term
(years)		Aggregate Intrinsic Value (thousands)
Outstanding as of December 31, 202380 $4.63 
Exercised(33)4.40 
Canceled(3)12.19 
Outstanding as of June 30, 202444 4.38 0.47$413 
Vested and exercisable as of June 30, 202444 $4.38 0.47$413 

As of June 30, 2024, the aggregate intrinsic value represents the excess of the closing price of our common stock of $13.85 over the exercise price of the outstanding in-the-money options.

The intrinsic value of options exercised was $0.1 million and $0.3 million during the three months ended June 30, 2024 and 2023, respectively, and was $0.3 million and $1.0 million during the six months ended June 30, 2024 and 2023, respectively.

Stock Awards

The Company has granted RSUs to its employees, consultants and members of its Board of Directors, and PSUs to certain executives and employees. The Company’s PSUs have market performance-based vesting conditions as well as service-based vesting conditions. As of June 30, 2024, there were 3,132,471 RSUs and 900,590 PSUs outstanding.

The following table summarizes our stock award activities and related information:
Number of Shares (thousands)Weighted-Average Grant Date Fair Value Per ShareWeighted-Average Remaining Vesting Term
(years)		Aggregate Fair Value (thousands)
Nonvested as of December 31, 20233,017 $13.15 
Granted1,551 13.24 
Released(385)11.05 
Canceled(150)14.06 
Nonvested as of June 30, 20244,033 $13.35 1.93$45,042 

The aggregate fair value of stock awards released was $1.3 million and $1.4 million for the three months ended June 30, 2024 and 2023, respectively, and was $4.2 million and $4.4 million for the six months ended June 30, 2024 and 2023, respectively.

Stock Repurchase Programs

On November 1, 2022, the Company announced its Board of Directors authorized a stock repurchase program of up to $50 million of its common stock over a period of twelve months (the “2022 Program”). During the six months ended June 30, 2023, the Company repurchased 0.4 million shares for a total cost of $6.2 million under the 2022 Program. This repurchase program was active for twelve months and expired in the second half of 2023.

On November 7, 2023, the Company announced its Board of Directors authorized a new stock repurchase program of up to $50 million of its common stock over a period of twelve months (the “2023 Program”). During the six months ended June 30, 2024, the Company repurchased 1.1 million shares for a total cost of $14.9 million under the 2023 Program.
Under the Company’s stock repurchase programs, repurchased shares are held in treasury at cost. The Company’s stock repurchase programs do not obligate it to acquire any specific number of shares. Shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.