Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Share Repurchases

On February 23, 2023, we entered into an accelerated share repurchase (ASR) agreement with a financial institution (2023 ASR). We accounted for the 2023 ASR as two separate transactions, a repurchase of our common stock and an equity-linked contract indexed to our common stock that met certain accounting criteria for classification in stockholders' equity. Upon execution, we paid a fixed amount of $150.0 million and received an initial delivery of 7,599,747 shares of our common stock, which were retired immediately. The initial delivery of shares of our common stock represented approximately 80 percent of the fixed amount paid of $150.0 million, which was based on the share price of our common stock on the date of execution. The 2023 ASR, along with $1.3 million in associated costs, primarily consisting of an estimated 1% excise tax, were recorded as a reduction to additional paid in capital on our condensed consolidated statements of stockholders’ equity.

On February 22, 2022 and December 3, 2021, we entered into ASR agreements with financial institutions. During the year ended December 31, 2022, we received a total of 11,562,475 shares of our common stock from these ASR agreements, which were retired immediately. Additionally, during the year ended December 31, 2022, we repurchased 1,146,803 shares of our common stock in open market transactions.

Securities Repurchase Program

In June 2022, our board of directors approved a $1.0 billion increase to our existing securities repurchase program authorizing the repurchase of up to $2.0 billion of our common stock and/or convertible notes, through open market purchases, block trades, and/or privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of the repurchases will be determined by management based on the capital needs of the business, market conditions, applicable legal requirements, and other factors. As of March 31, 2023, we had $492.6 million remaining under the repurchase program, which has no expiration date and will continue until otherwise suspended, terminated or modified at any time for any reason by our board of directors.

Share-based Compensation Expense

Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Cost of revenues	$	527	$	623
Research and development	10,914		11,776
Sales and marketing	2,499		4,386
General and administrative	19,806		16,299
Total share-based compensation expense	$	33,746	$	33,084

During the three months ended March 31, 2023 and 2022, we capitalized share-based compensation expense of $1.0 million and $1.8 million, respectively. As of March 31, 2023, our total unrecognized share-based compensation expense related to RSUs and PSUs was approximately $207.0 million, which will be recognized over the remaining weighted-average vesting period of approximately 2.2 years.

Activity for RSUs and PSUs is as follows:


	RSUs and PSUs Outstanding
	Shares Outstanding	Weighted Average Grant Date Fair Value
Balance at December 31, 2022	9,155,680	$	36.03
Granted	1,631,910	16.63
Released	(1,192,925)	37.50
Forfeited	(447,107)	34.03
Balance at March 31, 2023	9,147,558	32.48