Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity Incentive Plans

In August 2018, the 2018 Stock Option and Incentive Plan (2018 Plan) was adopted by the board of directors and approved by the stockholders and became effective in connection with the IPO. The 2018 Plan replaced the 2010 Stock Plan (2010 Plan) as the board of directors determined not to make additional awards under the 2010 Plan. The 2010 Plan will continue to govern outstanding equity awards granted thereunder.

The 2018 Plan allows for the granting of options, stock appreciation rights, restricted stock, restricted stock units (RSUs), unrestricted stock awards, performance-based restricted stock units (PSUs), dividend equivalent rights and cash-based awards. Every January 1, the number of shares of stock reserved and available for issuance under the 2018 Plan will cumulatively increase by five percent of the number of shares of Class A and Class B common stock outstanding on the immediately preceding December 31, or a lesser number of shares as approved by the board of directors.

As of March 31, 2023, there were 5,814,499 and 6,875,504 options issued and outstanding under the 2010 Plan and 2018 Plan, respectively (collectively, the Plans). As of March 31, 2023, 8,129,355 shares of Class A common stock and were available for grant under the 2018 Plan.

Stock options granted typically vest over a four-year period from the date of grant. Options awarded under the Plans are exercisable up to ten years.

Stock Option Activity

Stock option activity for the three months ended March 31, 2023 is presented below:


	Outstanding options	Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Balance as of December 31, 2022	12,558,158	$	12.30	6.4	$	93
Granted	237,642	8.72
Exercised	(77,378)	5.99
Canceled	(28,419)	11.48
Balance as of March 31, 2023	12,690,003	12.27		6.2	3,554
Vested and exercisable as of March 31, 2023	9,631,022	12.04		5.5	3,169
Vested and expected to vest as of March 31, 2023	12,529,364	12.26		6.2	3,524

The aggregate intrinsic value in the table above represents the difference between the fair value of common stock and the exercise price of outstanding, in-the-money stock options at March 31, 2023.

As of March 31, 2023, the total unrecognized stock-based compensation expense related to stock options outstanding was $19.5 million, which will be recognized over a weighted-average period of 2.2 years. The weighted-average fair value of stock options granted was $5.26 for the three months ended March 31, 2023.

Stock Award Activity

Stock award activity, which includes RSUs, PSUs, and restricted stock awards (RSAs), for the three months ended March 31, 2023 is presented below:


	Outstanding RSUs, RSAs and PSUs	Weighted-average grant date fair value per share		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Balance as of December 31, 2022	10,764,197	$	11.46	1.7	$	63,059
Awarded	1,649,472	8.42
Released	(590,994)	15.56
Canceled	(902,679)	12.40
Balance as of March 31, 2023	10,919,996	10.70		1.7	93,694
Vested and expected to vest as of March 31, 2023	9,595,276	10.75		1.6	82,327

As of March 31, 2023, the total unrecognized stock-based compensation expense related to stock awards, was $88.2 million, which will be recognized over a weighted-average period of 3.0 years.

Stock-based Compensation Expense

Stock-based compensation expense recognized in connection with stock options, RSUs, RSAs, PSUs and the Employee Stock Purchase Plan (ESPP) during each of the three months ended March 31, 2023 and 2022 were as follows (in thousands):


	Three Months Ended March 31,
		2023		2022
Cost of net revenue		$	197	$	240
Product development		4,324		4,133
Sales, marketing and support		2,228		1,787
General and administrative		5,345		6,676
Total		$	12,094	$	12,836

The Company capitalized $0.3 million of stock-based compensation expense related to capitalized software costs during the three months ended March 31, 2023, compared to $0.1 million during the three months ended March 31, 2022.