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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 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, 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 December 31, 2024, the 2021 Plan provides for future grants and/or issuances of up to 6,933,867 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 December 31, 2024, the 2021 Plan provides for future grants and/or issuances of up to 965,766 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. 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, 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 | 3,900,834 |  |  | $ | 6.97 |
Vested | (3,730,552) |  |  | $ | 6.25 |
Forfeited | (662,982) |  |  | $ | 6.09 |
Shares unvested and expected to vest as of December 31, 2024 | 4,764,133 |  | $ | 6.18 |
As of December 31, 2024, total unrecognized compensation cost related to RSUs was $25.7 million, which will be recognized over a weighted-average period of 1.93 years. In February and March 2025, the Company’s Compensation Committee approved the issuance of RSUs totaling approximately 2.8 million. These RSUs have service-based vesting periods that are satisfied over three years. The Company expects to recognize $19.6 million in stock-based compensation on a straight-line basis over the vesting period of these awards. 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 Company’s Board of Directors approved annual corporate performance targets under its Bonus Plan for 2024 for its employees. As of December 31, 2024, the accrued balance was $1.8 million, reported as a component of accrued expenses and other current liabilities on the consolidated balance sheets. Pursuant to the Bonus Plan, during February 2025 and February 2024, the Company’s Compensation Committee approved the issuance of 301,571 RSUs and approximately 296,000 RSUs, respectively, that immediately vested. The Company recognized $2.2 million and $3.0 million in stock-based compensation during the years ended December 31, 2024 and 2023, respectively based on progress made towards these performance targets. During the years ended December 31, 2024 and 2023, the Company capitalized $0.3 million and $0.5 million, respectively, of stock-based compensation expense under this plan for the development of internal-use software. 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. 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 |  | (2,526,902) |  |  | 2.98 |  |  |  |  |
Options cancelled |  | (401,487) |  |  | 14.08 |  |  |  |  |
Balance as of December 31, 2024 |  | 6,378,753 |  |  | $ | 7.28 |  |  | 4.95 |  | $ | 12,136 |
Vested and exercisable as of December 31, 2024 |  | 6,013,202 |  |  | $ | 6.77 |  |  | 4.84 |  | $ | 12,112 |
Vested and expected to vest |  | 6,378,753 |  |  | $ | 7.28 |  |  | 4.95 |  | $ | 12,136 |
The intrinsic value of options exercised was $13.9 million and $8.8 million for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024, total unrecognized compensation cost related to stock options was $2.8 million, which will be recognized over a weighted-average period of 0.60 years. ESPP The initial offering period under the ESPP 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. During the years ended December 31, 2024 and 2023, 780,206 and 695,046 shares of Class A common stock were purchased under the ESPP. The fair value of the purchase rights under the ESPP was estima ted using the Black-Scholes option pricing model. The Company recorded stock-based compensation expense under this plan of $1.6 million and $4.2 million f or the years ended December 31, 2024 and 2023, respectively, of which $0.5 million and $0.8 million was capitalized for the development of capitalized internal-use software. As of December 31, 2024, the total unrecognized stock-based compensation expense related to the ESPP was $3.3 million, which is expected to be recognized over a weighted average period of 1.09 years. 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, 2024 and 2023:
| For the Years Ended December 31,
| 2024 |  | 2023
Expected term (in years) | 0.5 - 2.0 |  | 0.5 - 2.0
Expected volatility | 48% - 74% |  | 46% - 64%
Risk-free interest rate | 4.31% - 5.43% |  | 4.29% - 5.43%
Expected dividend yield | — | % |  | — | %
Total Stock-Based Compensation Expense Stock-based compensation expense included in the consolidated statements of operations and comprehensive loss consists of all RSUs, including those related to the Bonus Plan, options, and ESPP awards. Total stock-based compensation expense was as follows (in thousands):
| For the Years Ended December 31,
| 2024 |  | 2023 |  |
Cost of revenue | $ | 1,907 |  |  | $ | 1,986 |  |  |
Research and development | 11,277 |  |  | 9,218 |  |  |
Sales and marketing | 9,505 |  |  | 8,801 |  |  |
General and administrative | 5,939 |  |  | 5,172 |  |  |
Total stock-based compensation expense (1) | $ | 28,628 |  |  | $ | 25,177 |  |  |
(1) Stock-based compensation expense includes restructuring charges of $2.5 million and $0.1 million, incurred during the years ended December 31, 2024 and 2023. Of the $2.5 million in stock-based compensation restructuring charges incurred during the year ended December 31, 2024, $0.3 million related to cost of revenue, $0.9 million related to research and development costs, $1.2 million, related to sales and marketing costs, and $0.1 million related to general and administrative costs. Of the $0.1 million in stock-based compensation restructuring charges occurred during 2023. $0.1 million related to sales and marketing costs. During the years ended December 31, 2024 and 2023, the Company capitalized $4.0 million and $5.0 million, respectively, of stock-based compensation for the development of capitalized internal-use software and property and equipment. Additionally, during the year ended December 31, 2024, the Compensation Committee approved amendments to outstanding vested stock options held by certain former employees in connection with their voluntary 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 $1.1 million of expense, of which $0.8 million is recorded in sales and marketing, and $0.3 million is recorded in general and administrative expense on the Company’s consolidated statements of operations and comprehensive loss. The Company also incurred stock-based compensation costs of $2.5 million in connection with restructuring activities that occurred during the year ended December 31, 2024. See Note 16 for additional information.

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