Noncash Share-based Compensation (Note)

6 Months Ended

Jun. 30, 2020

Noncash Share-based Compensation [Abstract]

The Company's 2017 Equity Incentive Plan (as amended and restated, the "2017 Stock Plan") was approved by stockholders in May 2017 and reserved an aggregate amount of 2,500,000 shares for issuance. In May 2019, the shareholders approved an amendment to the 2017 Stock Plan which increased the aggregate amount of shares for issuance to a total of 4,550,000. As of June 30, 2020, 1,857,201 shares remain available for issuance under the 2017 Stock Plan.

The following table presents the number of shares or units outstanding for each award type as of June 30, 2020 and December 31, 2019, respectively, (in thousands):


Award type	June 30, 2020	December 31, 2019

Restricted stock units (time-based)	1,674	1,893
Restricted stock units (performance-based)	190	114

Stock appreciation rights	32	65
Market stock units	157	267

During the three months ended June 30, 2020, the Company granted 173,060 RSUs with a weighted average grant-date fair value of $31.29 per share. The Company granted no stock options, SARs, performance-based RSUs ("PRSUs") or market stock units ("MSUs") during this period.

During the six months ended June 30, 2020, the Company granted 632,559 RSUs (time-based) with a weighted average grant-date fair value of $56.67 per share. The Company also granted 76,200 PRSUs with a weighted average grant-date fair value of $54.23 to certain executive employees during the six months ended June 30, 2020. These PRSUs vest on January 13, 2023 and the actual number of PRSUs that will be eligible to vest is based upon achievement of certain internal performance metrics, as defined by each award's plan documents or individual award agreements. The maximum number of shares issuable upon vesting is 200% of the PRSUs initially granted. The Company did not grant any stock options, SARs or MSUs during the six months ended June 30, 2020.

Share-based compensation expense is allocated to expense categories on the unaudited condensed consolidated statements of comprehensive income (loss). The following table summarizes share-based compensation expense included in the Company's unaudited condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Share-based compensation:
Cost of revenue	$	502	$	494	$	1,026	$	1,032
Operating expenses:
Selling and marketing	1,965		1,414		3,831		2,814
General and administrative	1,917		2,808		4,367		5,620
Research and development	1,368		1,263		2,875		2,559
Total included in operating expenses	5,250		5,485		11,073		10,993
Total share-based compensation expense	$	5,752	$	5,979	$	12,099	$	12,025

At June 30, 2020, the Company had an estimated $59.6 million of total unrecognized compensation costs related to share-based compensation arrangements. These costs will be recognized over a weighted average period of 2.9 years.

The Company's Employee Stock Purchase Plan ("ESPP") provides for eligible employees to purchase shares on an after-tax basis in an amount between 1% and 10% of their annual pay: (i) on June 30 of each year at a 15% discount of the fair market value of the Company's common stock on January 1 or June 30, whichever is lower, and (ii) on December 31 of each year at a 15% discount of the fair market value of the Company's common stock on July 1 or December 31, whichever is lower.

An employee may not purchase more than $5,000 in either of the six-month measurement periods described above or more than $10,000 annually. During the three and six months ended June 30, 2020, the Company issued zero and 26,774 shares, respectively, under the ESPP. As of June 30, 2020, 113,477 shares remain authorized and available for issuance under the ESPP. As of June 30, 2020, the Company held approximately $1.5 million on behalf of employees for future purchases under the ESPP, and this amount was recorded in accrued payroll and other employee benefits in the Company's unaudited condensed consolidated balance sheet.