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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2024
Equity [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The Company recorded stock-based compensation on the Consolidated Statement of Operations for the three and nine months ended September 30, 2024 and 2023 as follows (in thousands):
|  | Three Months Ended September 30, | Nine Months Ended September 30,
|  | 2024 |  | 2023 | 2024 |  | 2023
Cost of revenue |  | $ | 353 |  |  | $ | — |  | $ | 1,106 |  |  | $ | — |
General and administrative |  | 7,081 |  |  | 7,180 |  | 21,237 |  |  | 17,643 |
Research and development |  | 233 |  |  | — |  | 641 |  |  | — |
Sales and marketing |  | 803 |  |  | — |  | 2,101 |  |  | — |
Total stock-based compensation |  | $ | 8,470 |  |  | $ | 7,180 |  | $ | 25,085 |  |  | $ | 17,643 |
Stock Options A summary of the stock option activity under the Company’s plans for the nine months ended September 30, 2024 is as follows:
|  | Number of Shares |  | Weighted Average Exercise Price
Outstanding at December 31, 2023 |  | 4,381,099 |  |  | $ | 15.87 |
Granted |  | 1,602,783 |  |  | $ | 14.99 |
Exercised |  | (373,522) |  |  | $ | 8.86 |
Forfeited |  | (392,401) |  |  | $ | 16.01 |
Outstanding at September 30, 2024 |  | 5,217,959 |  |  | $ | 19.29 |
Exercisable at September 30, 2024 |  | 1,797,255 |  |  | $ | 19.29 |
The fair value of each stock option award granted during the nine months ended September 30, 2024 was estimated as of the grant date using a Black-Scholes model with the following assumptions:
| Nine Months Ended September 30, 2024
Expected term (in years) | 5.5 - 6.5
Risk-free interest rate (%) | 3.7% - 4.6%
Expected volatility (%) | 54.9% - 64.6%
Dividend yield (%) | —
Weighted average grant date fair value per share | $8.90
As of September 30, 2024, there was approximately $14.5 million of unrecognized stock-based compensation expense related to stock options that will be recognized over a weighted-average period of approximately 1.5 years. Restricted Stock A summary of the restricted stock activity under the Company’s plans for the nine months ended September 30, 2024 is as follows:
|  | Number of Restricted Shares |  | Weighted Average Grant Date Fair Value
Nonvested at December 31, 2023 |  | 1,961,919 |  |  | $ | 13.83 |
Granted |  | 1,010,690 |  |  | $ | 15.02 |
Vested |  | (592,414) |  |  | $ | 14.39 |
Forfeited |  | (177,425) |  |  | $ | 14.24 |
Nonvested at September 30, 2024 |  | 2,202,770 |  |  | $ | 14.19 |
As of September 30, 2024, there was approximately $16.5 million of unrecognized stock-based compensation expense related to restricted stock that will be recognized over a weighted-average period of approximately 1.6 years. Performance-Based Restricted Stock Units In the nine months ended September 30, 2024, the Company granted 194,257 PSUs subject to a performance condition and 194,256 PSUs subject to a market condition with an aggregated grant date fair value of approximately $3.1 million and $3.6 million, respectively. If the performance targets are achieved, the awards will vest at the end of the three-year requisite service period so long as the employee remains employed with the Company through the applicable vesting date. For PSUs subject to a performance condition, compensation cost is recognized straight-line over the requisite service period if the achievement of the performance condition is probable. As of September 30, 2024, the Company has determined it is probable that the performance condition will be met. For PSUs subject to a market condition, compensation cost is recognized straight-line over the requisite service period, regardless of when, if ever, the market condition is satisfied. A summary of the PSU activity under the Company’s plans for the nine months ended September 30, 2024 is as follows:
|  | Number of Stock Units |  | Weighted Average Grant Date Fair Value
Nonvested at December 31, 2023 |  | 305,105 |  |  | $ | 21.83 |
Granted |  | 388,513 |  |  | $ | 17.43 |
Vested |  | — |  |  | $ | — |
Forfeited |  | (46,534) |  |  | $ | 19.56 |
Nonvested at September 30, 2024 |  | 647,084 |  |  | $ | 19.35 |
The fair value of each PSU granted subject to a market condition during the nine months ended September 30, 2024 was estimated as of the grant date using a Monte Carlo with the following assumptions:
| Nine Months Ended September 30, 2024
Expected term (in years) | 3.0
Risk-free interest rate (%) | 4.5% - 4.7%
Expected volatility (%) | 71.3% - 72.2%
Dividend yield (%) | —
Weighted average grant date fair value per share | $17.43
As of September 30, 2024, there was approximately $8.4 million of unrecognized stock-based compensation expense related to nonvested PSUs that will be recognized over a weighted-average period of approximately 2.1 years. Modification of Stock Option and Restricted Stock In the three months ended June 30, 2024, upon the departure of an executive and in accordance with the terms of their employment agreement, in addition to the retirement of a director of the Company and with approval from the Culture and Compensation Committee of the Company’s Board of Directors, the vesting of 69,049 shares of previously granted time-based vesting stock options and 41,693 shares of previously granted time-based vesting restricted stock was accelerated. The Company accounted for the effects of the accelerated vesting of these stock awards as modifications and recognized $0.6 million of stock-based compensation which consisted of $0.3 million and $0.3 million for the acceleration of stock options and restricted stock, respectively, within general and administrative expenses on the Consolidated Statements of Operations for the nine months ended September 30, 2024. There were no such amounts for the three months ended September 30, 2024. In the three months ended June 30, 2023, upon the departure of certain executives from the Company and in accordance with the terms of each of their respective employment agreements, the vesting of 101,937 shares of previously granted time-based vesting stock options and 61,746 shares of previously granted time-based vesting restricted stock accelerated. The Company accounted for the effects of the accelerated vesting of these stock awards as modifications and recognized $0.9 million of stock-based compensation which consisted of $0.3 million and $0.6 million for the acceleration of stock options and restricted stock, respectively, within general and administrative expenses on the Consolidated Statements of Operations for the nine months ended September 30, 2023. There were no such amounts for the three months ended September 30, 2023.

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