XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.24.3

Stock-Based Compensation | 9 Months Ended
--- | ---
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plans In 2021, the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan”) under which the Company may grant options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock awards, other equity-based awards and incentive bonuses to employees, officers, non-employee directors and other service providers of the Company and its affiliates. The number of shares available for issuance under the 2021 Plan is increased on January 1 of each year beginning in 2022 and ending with a final increase in 2031 in an amount equal to the lesser of: (i) 4,784,100 shares, (ii) 5% of the total number of shares of Class A common stock outstanding on the preceding December 31, or (ii) a smaller number of shares determined by the Company’s Board of Directors. As of September 30, 2024, the 2021 Plan provides for future grants and/or issuances of up to approximately 6.9 million shares of our common stock. Equity-based awards under our employee compensation plans are made with newly issued shares reserved for this purpose. In 2021, the Company adopted the 2021 Employee Stock Purchase Plan (the “2021 ESPP”). The number of shares available for issuance under the 2021 ESPP is increased on January 1 of each year beginning in 2022 and ending with a final increase in 2041 in an amount equal to the lesser of: (i) 1,913,630 shares, (ii) 2% of the total number of shares of Class A common stock outstanding on the preceding December 31, or (ii) a smaller number of shares determined by the Company’s Board of Directors. As of September 30, 2024, the 2021 Plan provides for future grants and/or issuances of up to approximately 1.4 million shares of our common stock. On August 2, 2024, the Company adopted the 2024 New Employee Equity Incentive Plan (the “Inducement Plan”), pursuant to which the Company reserved 414,740 shares of its Class A common stock to be used exclusively for grants of equity-based awards to individuals who were not previously employees or directors of the Company, as an inducement material to the individual’s entry into employment with the Company. The Inducement Plan was adopted by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) without stockholder approval. As of September 30, 2024, no activity has occurred under this plan. 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 nine months ended September 30, 2024 was as follows:
| Shares |  | Weighted-average grant date fair value per share
Shares unvested as of December 31, 2023 | 5,256,833 |  | $ | 5.63 |
Granted | 3,205,244 |  | $ | 7.02 |
Vested | (2,592,279) |  | $ | 6.36 |
Forfeited | (431,446) |  | $ | 6.24 |
Shares unvested and expected to vest as of September 30, 2024 | 5,438,352 |  | $ | 6.05 |
The weighted-average grant-date fair value of 4,214,704 RSUs granted during the nine months ended September 30, 2023 was $5.04. The intrinsic fair value of vested RSUs was $22.2 million and $9.3 million during the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, total unrecognized compensation cost related to RSUs was $29.9 million, which will be recognized over a weighted-average period of 1.8 years. Bonus Plan During March 2022, the Compensation Committee 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 Compensation Committee based on the actual achievement with respect to the annual performance targets and paid in the subsequent year in the variable number of RSUs equal to the payout amount. These RSUs are issued under the 2021 Plan and 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 Compensation Committee approved the issuance of approximately 288,000 RSUs that immediately vested based on actual performance against the performance targets for 2022. During February 2023, the Company’s Board of Directors approved 2023 corporate performance targets under its Bonus Plan for its employees. During February 2024, the Compensation Committee approved the issuance of approximately 296,000 RSUs that immediately vested based on actual performance against the performance targets for 2023. During February 2024, the Company’s Board of Directors approved annual corporate performance targets under its Bonus Plan for 2024 for its employees. As of September 30, 2024, the accrued bonus balance is $1.3 million, reported as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets. Pursuant to the Bonus Plan, the Company recognized $0.5 million and $1.7 million in stock-based compensation during the three months ended September 30, 2024 and 2023, respectively, of which the Company capitalized $0.1 million and $0.2 million of stock-based compensation expense under this plan for the development of internal-use software for the three months ended September 30, 2024 and 2023, respectively. The Company recognized $1.8 million and $2.6 million in stock-based compensation during the nine months ended September 30, 2024 and 2023, respectively, of which the Company capitalized $0.2 million and $0.4 million of stock-based compensation expense under this plan for the development of internal-use software during the nine months ended September 30, 2024 and 2023, respectively. Stock Options A summary of stock option award activity under the Company’s equity plans and related information is as follows (in thousands, except share, price and year data):
|  |  | Outstanding stock options |  | Weighted- average exercise Price |  | Weighted- average remaining contractual life (years) |  | Aggregate intrinsic value
Balance as of December 31, 2023 |  |  | 9,307,142 |  |  | $ | 6.41 |  |  | 5.57 |  | $ | 31,250 |
Options granted |  |  | — |  |  | — |  |  |  |  |
Options exercised |  |  | (2,135,767) |  |  | 2.97 |  |  |  |  |
Options canceled |  |  | (287,388) |  |  | 14.12 |  |  |  |  |
Balance as of September 30, 2024 |  |  | 6,883,987 |  |  | $ | 7.16 |  |  | 5.07 |  | $ | 15,150 |
Vested and exercisable as of September 30, 2024 |  |  | 6,283,883 |  |  | $ | 6.46 |  |  | 4.89 |  | $ | 15,017 |
Vested and expected to vest |  |  | 6,883,987 |  |  | $ | 7.16 |  |  | 5.07 |  | $ | 15,150 |
The intrinsic value of options exercised for the nine months ended September 30, 2024 and 2023 was $12.5 million and $6.1 million, respectively. As of September 30, 2024, total unrecognized compensation cost related to stock options was $4.5 million, which will be recognized over a weighted-average period of 0.8 years. ESPP The Company recorded stock-based compensation expense under this plan of $0.4 million and $0.9 million for the three months ended September 30, 2024 and 2023, respectively, of which the Company capitalized $0.1 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively, of stock-based compensation expense under this plan for the development of internal-use software. The Company recorded stock-based compensation expense under this plan of $1.2 million and $2.8 million for the nine months ended September 30, 2024 and 2023, respectively, of which the Company capitalized $0.4 million and $0.7 million for the nine months ended September 30, 2024 and 2023, respectively, of stock-based compensation expense under this plan for the development of internal-use software. As of September 30, 2024, the total unrecognized stock-based compensation expense related to the ESPP was $0.7 million and is expected to be recognized over a weighted average period of 0.6 years, of which $0.3 million is related to incremental modification expense. As of September 30, 2024, $1.4 million had been withheld on behalf of employees. The following table summarizes the Black-Scholes option pricing model used in estimating the fair value of the stock purchase rights under the ESPP during the nine months ended September 30, 2024 and 2023. There were no ESPP offerings requiring fair value inputs during the three months ended September 30, 2024 and 2023.
|  |  | Nine months ended September 30,
|  |  |  |  | 2024 |  | 2023
Expected term (in years) |  |  |  |  | 0.5 - 2.0 |  | 0.5 - 2.0
Expected volatility |  |  |  |  | 48% - 56% |  | 45% - 68%
Risk-free interest rate |  |  |  |  | 4.82% - 5.43% |  | 0.10% - 5.43%
Expected dividend yield |  |  |  |  | — | % |  | — | %
Total Stock-Based Compensation Expense Stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Cost of revenue | $ | 478 |  |  | $ | 653 |  |  | $ | 1,218 |  |  | $ | 1,456 |
Research and development | 3,097 |  |  | 2,865 |  |  | 7,455 |  |  | 6,786 |
Sales and marketing | 2,908 |  |  | 2,747 |  |  | 6,492 |  |  | 6,616 |
General and administrative | 1,955 |  |  | 1,693 |  |  | 4,330 |  |  | 3,812 |
Total stock-based compensation expense | $ | 8,438 |  |  | $ | 7,958 |  |  | $ | 19,495 |  |  | $ | 18,670 |
During the nine months ended September 30, 2024 and 2023, the Company capitalized $3.2 million and $3.7 million, respectively, of stock-based compensation for the development of internal-use software. Additionally, during the third quarter of 2024, the Compensation Committee approved amendments to outstanding vested stock options held by certain former employees in connection with their separation from the Company to extend the option expiration and also accelerate the vesting of RSU’s. As a result of the modifications, the Company recognized $1.0 million of expense, of which $0.7 million is recorded in sales and marketing, and $0.3 million is recorded in general and administrative expense on the Company’s condensed consolidated statements of operations and comprehensive loss

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + 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