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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Equity Incentive Plans
2011 Equity Incentive Plan. In 2011, the Company’s Board of Directors approved the adoption of the 2011 Stock Plan (the “2011 Plan”). The 2011 Plan provides for the grant of stock-based awards to employees, non-employee directors, and other service providers of the Company. The 2011 Plan expired in September 2021.
2021 Equity Incentive Plan. In October 2021, the Company’s Board of Directors and stockholders adopted the 2021 Equity Incentive Plan (the “2021 Plan”) and it was approved by stockholders in October 2021. The 2021 Plan replaced the 2011 Plan. However, awards outstanding under the 2011 Plan will continue to be governed by their existing terms. The 2021 Plan has the features described below.
Share Reserve. As of December 31, 2023, the number of shares of common stock available for issuance under the 2021 Plan equaled the sum of 14,662,500 shares, plus up to approximately 13,719,000 shares subject to awards granted under the 2011 Plan that expire, forfeit or are repurchased following the effective date of the 2021 Plan. In addition, the 2021 Plan includes an evergreen provision from which the number of shares reserved for issuance under the 2021 Plan will be increased automatically on the first business day of each of the Company’s fiscal years and ending on January 1, 2031, by a number equal to the lowest of (i) 4,784,100 shares, (ii) 5% of the shares of Class A common stock outstanding on the last business day of the prior fiscal year; or (iii) the number of shares determined by the Board of Directors. Pursuant to this evergreen provision, the Company increased the number of shares reserved under the 2021 Plan by 809,916 and 411,399 shares of Class A common stock during the years ended December 31, 2023 and 2022, respectively. In July 2023, the Company increased the number of shares reserved under the 2021 Plan by 8,292,158 shares of Class A common stock pursuant to the amendment and restatement of the 2021 Plan adopted by the Company’s board of directors and approved by the stockholders.
In general, to the extent that any awards under the 2021 Plan are forfeited, terminate, expire or lapse without the issuance of shares, or if the Company reacquires the shares subject to awards granted under our 2021 Plan, those shares will again become available for issuance under our 2021 Plan, as will shares applied to pay the exercise or purchase price of an award or to satisfy tax withholding obligations related to any award.
Restricted Stock Units
Restricted stock units (“RSUs”) granted under the 2021 Plan generally vest based on continued service up to a four-year period for employees, and over a one-year period for non-employee directors.
RSU activity for the year ended December 31, 2023 was as follows:

SharesWeighted-average grant date fair value per share
Unvested balance as of December 31, 2022
3,716,061$6.60 
Granted4,576,424$5.06 
Vested(2,614,981)$6.06 
Forfeited(420,671)$5.38 
Unvested balance as of December 31, 2023
5,256,833$5.63 
The weighted-average grant-date fair value of 4,163,608 RSUs granted during the year ended December 31, 2022 was $6.87. The fair value as of the respective vesting dates of RSUs was $14.2 million and $1.9 million during the years ended December 31, 2023 and 2022, respectively.

Stock Options

Stock Options. Stock options granted under the equity plans generally vest based on continued service over four years and expire ten years from the date of grant.
The following table summarizes the Black-Scholes option pricing model weighted-average assumptions used in estimating the fair value of stock options granted to employees during the year ended December 31, 2022. No stock options were granted during the year ended December 31, 2023.

For the Year Ended December 31,
2022
Expected term (in years)6
Expected volatility49.0 %
Risk-free interest rate1.20 %
Expected dividend yield— %
Expected term. For stock options considered to be “plain vanilla” options, the Company estimates the expected term based on the simplified method, which is essentially the weighted average of the vesting period and contractual term, as the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term.
Expected volatility. The Company performed an analysis using the average volatility of a peer group of representative public companies with sufficient trading history over the expected term to develop an expected volatility assumption.
Risk-free interest rate. Based upon quoted market yields for the United States Treasury debt securities for a term consistent with the expected life of the awards in effect at the time of grant.
Expected dividend yield. Because the Company has never paid and has no intention to pay cash dividends on common stock, the expected dividend yield is zero.

A summary of equity award activity under the Company’s equity plans and related information is as follows (in thousands, except share, price and year data):
Shares
available for
grant		Outstanding
Equity Awards		Weighted-
average
exercise
Price		Weighted-
average
remaining
contractual
life (years)		Aggregate
intrinsic
value
Balance as of December 31, 2022
1,836,566 12,371,281 $5.74 6.07$32,385 
Shares authorized9,102,074 
Options granted— — — 
Options exercised— (2,446,846)1.89 
Options cancelled617,293 (617,293)10.87 
RSU award activity(4,155,753)— 
Balance as of December 31, 2023
7,400,180 9,307,142 $6.41 5.57$31,250 
Vested and exercisable as of December 31, 2023
7,747,252 $5.24 5.17$29,480 
The weighted-average grant-date fair value of options granted was $6.26 during the year ended December 31, 2022. The intrinsic value of options exercised was $8.8 million and $10.5 million for the years ended December 31, 2023 and 2022, respectively. Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of the Company’s underlying common stock at the time of exercise. The aggregate grant-date fair value of options vested was $8.5 million and $13.0 million for the years ended December 31, 2023 and 2022, respectively.
ESPP

In October 2021, the Company’s Board of Directors adopted the ESPP, which became effective on the date of the IPO. The ESPP initially reserved and authorized the issuance of up to a total of 956,800 shares of Class A common stock to participating employees. Pursuant to its evergreen provision, the Company increased the number of shares reserved under the ESPP by 667,874 and 607,696 for the years ended December 31, 2023 and 2022, respectively.

The initial offering period commenced in November 2021 and the first purchase date occurred in May 2022. Under the Company’s ESPP, eligible employees may authorize payroll deductions of up to 50% of their eligible compensation, subject to IRS limitations, during prescribed offering periods to purchase shares of the Company’s Class A common stock at a price per share equal to 85% of the lesser of (1) the stock price at the employee’s first participation in the offering period or (2) the fair market value of the Company’s common stock on the purchase date. A participant may participate in only one offering period at a time, and a new offering period generally begins each May 20th and November 20th. Each offering period is generally 24 months and consists of four exercise dates (each, generally six months following the start of the offering period or the preceding exercise date, as the case may be). If the fair market value of the Company’s Class A common stock is less on a given exercise date than on the date of grant, employee participation in that offering period ends and participants are automatically re-enrolled in the next new offering period. The ESPP shall terminate automatically 20 years after its effective date, unless the ESPP is extended by the Board of Directors and the extension is approved within 12 months by a vote of the stockholders of the Company.

695,046 and 574,364 shares of Class A common stock have been purchased under the ESPP during the years ended December 31, 2023 and 2022, respectively. The fair value of the purchase rights under the ESPP was estimated using the Black-Scholes option pricing model with a similar methodology for determining inputs as the Company’s stock options, as described above.

The Company recorded stock-based compensation expense under this plan of $4.2 million and $2.9 million for the years ended December 31, 2023 and 2022, respectively, of which $0.8 million and $0.6 million was capitalized for the development of capitalized internal-use software.

As of December 31, 2023, the total unrecognized stock-based compensation expense related to the ESPP was $1.1 million and is expected to be recognized over a weighted average period of 1 year. As of December 31, 2023, $0.4 million had been withheld on behalf of employees for future purchases.
The following table summarizes the Black-Scholes option pricing model weighted-average assumptions used in estimating the fair value of the stock purchase rights granted to employees under the ESPP for the years ended December 31, 2023 and 2022:
For the Years Ended December 31,
20232022
Expected term (in years)
0.5 - 2.0
0.5 - 2.0
Expected volatility
46% - 64%
45% - 68%
Risk-free interest rate
4.29% - 5.43%
0.10% - 4.75%
Expected dividend yield— %— %

Stock-Based Compensation Expense
Stock-based compensation expense included in the consolidated statements of operations was as follows (in thousands):
For the Years Ended December 31,
20232022
Cost of revenue
$1,986 $1,267 
Research and development
9,218 6,698 
Sales and marketing
8,801 5,360 
General and administrative
5,172 3,724 
Total stock-based compensation expense
$25,177 $17,049 
During the years ended December 31, 2023 and 2022, the Company capitalized $5.0 million and $2.7 million, respectively, of stock-based compensation for the development of capitalized internal-use software. As of December 31, 2023, total unrecognized compensation cost related to stock options and RSUs not yet vested was $10.5 million and $27.4 million, respectively, which will be recognized over a weighted-average period of 1.3 and 2.1 years for stock options and RSUs, respectively.
Bonus Plan
During March 2022, the Company’s Compensation Committee of the Board of Directors approved a new bonus structure (“Bonus Plan”) for its employees. The Bonus Plan is contingent upon the achievement of annual corporate performance targets. In each respective calendar year, the Company accrues for the Bonus Plan. The actual payout amount is determined by the Company’s Compensation Committee based on the actual achievement with respect to the annual performance targets and is paid in the subsequent year in the variable number of RSUs equal to the payout amount. These RSUs are subject to performance and service condition vesting requirements, beginning from the grant date to the payout date. Participants must remain employed with the Company through the date of payout to maintain eligibility under the Bonus Plan.
Pursuant to the Bonus Plan, during February 2023 the Company’s Compensation Committee approved the issuance of approximately 288,000 RSUs that immediately vested based on actual performance against the performance targets for 2022. The Company recognized $1.9 million in stock-based compensation during the year ended December 31, 2022, of which the Company capitalized $0.3 million of stock-based compensation expense under this plan for the development of internal-use software.
During February 2023, the Company’s Board of Directors approved annual corporate performance targets under its Bonus Plan for 2023 for its employees. If these performance targets are met during 2023, employees will be paid out under the Bonus Plan in RSUs in 2024. As a result, the Company recognized $3.0 million in stock-based compensation during the year ended December 31, 2023 based on progress made towards these performance targets. These RSUs are subject to performance and service condition vesting requirements, beginning from the grant date to the payout date. During the year ended December 31, 2023, the Company capitalized $0.5 million of stock-based compensation expense under this plan for the development of internal-use software. As of December 31, 2023, the accrued bonus balance is $3.0 million, reported as a component of accrued expenses and other current liabilities on the consolidated balance sheets. Pursuant to the Bonus Plan, during February 2024, the Company’s Compensation Committee approved the issuance of approximately 296,000 RSUs that immediately vested.