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Stock Based Compensation
 9 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation
12. Stock Based Compensation
2010 Stock Option Plan
As of July 26, 2010, the Company adopted the 2010 Equity Compensation Plan (the “2010 Plan”). On November 9, 2017, the 2010 Plan was terminated in connection with the Company’s initial public offering. Accordingly, no shares are available for future issuance under the 2010 Plan. However, the 2010 Plan continues to govern the terms and conditions of the outstanding awards granted thereunder.
2017 Incentive Award Plan
The Company’s 2017 Incentive Award Plan (the “2017 Plan”) became effective on November 9, 2017. The 2017 Plan provides for the grant of stock options, including incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, dividend equivalents, restricted stock units, and other stock or cash based awards to employees, consultants and directors of the Company. A total of 1,050,000 shares of the Company’s Class A common stock were originally reserved for issuance under the 2017 Plan. These available shares automatically increase each January 1, beginning on January 1, 2018, by 5% of the number of shares of the Company’s Class A common stock outstanding on the final day of the immediately preceding calendar year. On January 1, 2021, the shares available for grant under the 2017 Plan were automatically increased by 1,120,650 shares.
The terms of the stock option grants are determined by the Company’s Board of Directors. The Company’s stock options vest based on terms of the stock option agreements, which is generally over four years. The stock options have a contractual life of ten years.
Restricted stock units (“RSUs”) granted under the 2017 Plan are generally subject to a time-based vesting condition. The compensation expense related to these awards is based on the grant date fair value of the RSUs and is recognized on a ratable basis over the applicable service period. The Company granted RSUs to its non-employee members of the Board of Directors, some of which vested immediately while others vest 25% as of each calendar quarter immediately following the grant date. Certain RSUs awarded to executives vest over four years with 50% vesting in the first year in 12.5% increments on each calendar quarter immediately following the grant date and the remaining 50% earned over years two, three and four. Other RSUs awarded to executives and employees generally are earned over a service period of four years.
Stock Options
The following summarizes the stock option activity for the periods presented:
Number of
options
outstanding		Weighted-
average
exercise price
(per share)		Weighted-
average
remaining
contract life
(in years)		Aggregate
intrinsic value 
(in thousands)
Outstanding as of December 31, 2020255,000 $10.82 4.42$36,426 
Granted— — 
Exercised(70,923)12.68 9,059 
Forfeited or cancelled(806)10.49 
Outstanding as of September 30, 2021183,271 $10.10 3.59$14,694 
Options vested and exercisable at September 30, 2021178,878 $9.79 3.53$14,398 
Options vested and expected to vest as of September 30, 2021183,032 $10.09 3.59$14,678 
Aggregate intrinsic value is computed based on the difference between the option exercise price and the fair value of the Company’s common stock as of September 30, 2021, based on the Company’s Class A common stock price as reported on the NASDAQ Global Select Market.
No options were granted for the three and nine months ended September 30, 2020 and 2021.
The total estimated grant date fair value of options vested was $193 and $322 for the three and nine months ended September 30, 2020, respectively, and $153 and $199 for the three and nine months ended September 30, 2021, respectively.
As of September 30, 2021, total unrecognized compensation cost related to all non-vested stock options was $5, which will be amortized over a weighted-average period of 0.09 years.
Restricted Stock Units
The following summarizes the RSU activity for the periods presented:
Number of awards outstandingWeighted-average grant date fair value (per share)
Nonvested RSUs as of December 31, 2020450,614 $51.58 
Granted146,989 146.80 
Vested(173,695)62.13 
Forfeited or cancelled(54,294)74.82 
Nonvested RSUs as of September 30, 2021369,614 $84.11 
As of September 30, 2021, total unrecognized compensation cost related to non-vested RSUs was $25,509, which will be amortized over a weighted-average period of 2.86 years.
Stock-Based Compensation Expense
The Company recognized total stock-based compensation expense as follows:
Three months ended September 30,Nine months ended September 30,
2020202120202021
Cost of revenue$46 $52 $161 $190 
Research and development508 621 1,581 2,055 
Sales and marketing369 519 1,140 1,591 
General and administrative1,459 2,633 4,424 7,756 
Total$2,382 $3,825 $7,306 $11,592