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Stockholders' Equity | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stockholders' Equity | Stockholders' Equity Share Repurchases During the year ended December 31, 2024, we received a total of 2,115,952 shares of our common stock related to the final delivery of our November 2023 accelerated share repurchase (ASR) agreement, which were retired immediately. The November 2023 ASR settled, and we were not required to make any additional cash payments or delivery of common stock to the financial institution upon settlement. During the year ended December 31, 2023, we repurchased a total of 26,505,979 shares of our common stock, which included the initial delivery of 13,498,313 shares from our November 2023 ASR, 3,433,157 shares from open market transactions in June 2023, and the total delivery of 9,574,509 shares from our February 2023 ASR, which were retired immediately. During the year ended December 31, 2022, we received a total of 12,709,278 shares of our common stock from prior ASR and open market transactions, which were retired immediately. Share-based Compensation Expense The following table presents total share-based compensation expense recorded (in thousands):
|  |  | Years Ended December 31,
|  |  |  |  | 2024 |  | 2023 |  | 2022
Cost of revenues |  |  |  |  | $ | 1,786 |  |  | $ | 2,256 |  |  | $ | 2,484 |
Research and development |  |  |  |  | 28,044 |  |  | 44,103 |  |  | 41,335 |
Sales and marketing |  |  |  |  | 7,466 |  |  | 9,524 |  |  | 13,857 |
General and administrative |  |  |  |  | 47,318 |  |  | 77,619 |  |  | 75,780 |
Total share-based compensation expense |  |  |  |  | $ | 84,614 |  |  | $ | 133,502 |  |  | $ | 133,456 |
During the years ended December 31, 2024, 2023 and 2022, we capitalized share-based compensation expense of $4.9 million, $3.3 million, and $5.3 million, respectively, which is included within property and equipment, net on our consolidated balance sheets. As of December 31, 2024, we had a total of approximately $40.7 million of unrecognized share-based compensation expense, related to unvested RSUs and PSUs, that is expected to be recognized over the remaining weighted average period of 1.2 years. PSU Grants with Financial and Strategic Performance Targets In June 2024, March 2023, and March 2022, we granted PSUs to certain of our key executives. The PSUs entitle the executives to receive a certain number of shares of our common stock based on our satisfaction of certain financial and strategic performance targets. Based on the achievement of the performance conditions for the June 2024, March 2023, and March 2022 PSUs, the final settlement partially met the target threshold, based on a specified objective formula approved by the Compensation Committee of the Board of Directors. The June 2024 and March 2023 PSUs vest over either a one-year or three-year period and the March 2022 PSUs vest over a three-year period. During the years ended December 31, 2024, 2023, and 2022, the number of shares underlying the June 2024, March 2023, and March 2022 PSUs totaled 693,750, 565,341, and 614,177, respectively, and each had a grant date fair value per share of $3.61, $15.89, and $35.82, respectively. 2021 PSU Grants with Market-Based Conditions In March 2021, we granted PSUs with market-based conditions to certain of our key employees. The number of shares of our common stock that may be issued to settle these PSUs range from 50% at the threshold level to 150% at the maximum level of the 100% target level of the award depending on the maximum average market value of the per share price of our common stock, for a period of 60 consecutive trading days, over a three-year performance period ending on the third anniversary of the date of grant. No payout will be made for performance below the 50% threshold level. The market value of the per share price of our common stock must reach $123.81, $148.58, or $173.34 at the threshold, target, or maximum levels, respectively, for achievement of the award, which could result in issuance of 244,086, 488,173, or 732,260 shares of our common stock at each respective payout level. These PSUs vest over a four-year period, subject to continued service over the requisite period, with the initial vesting of 50% of the award occurring in March 2024. The number of PSUs granted totaled 732,260 shares, which represents the maximum number of shares, and had a grant date fair value of $68.55 per share, determined under the Monte Carlo simulation approach described further below. As of December 31, 2024, the market-based conditions have not been met. Fair Value of PSUs with Market-Based Conditions We estimate the fair value of the PSUs using a Monte Carlo simulation approach, which utilizes the fair value of our common stock based on an active market and requires input on the following subjective assumptions: Expected Term. The expected term for the awards is the performance period of three years. Expected Volatility. The expected volatility is based on the historical average volatility of our stock price over the expected term. Expected Dividends. The dividend assumption is based on our historical experience. To date we have not paid any dividends on our common stock. Risk-Free Interest Rate. The risk-free interest rate used in the valuation method is the implied yield on the U.S. treasury zero-coupon issues, with a remaining term equal to the expected term. The following table presents the key assumptions used to determine the fair value of the awards:
Expected term (years) | 3.00
Expected volatility | 49.04 | %
Expected dividends | — | %
Risk-free interest rate | 0.27 | %
Fair Value of ESPP Under the ESPP, rights to purchase shares are granted during the second and fourth quarter of each year. We estimate the fair value of each right to purchase shares using the Black-Scholes-Merton option-pricing model, which utilizes the fair value of our common stock based on active market and requires input on the following subjective assumptions: Expected Term. The expected term for rights to purchase shares is six months. Expected Volatility. The expected volatility is based on the average volatility of our stock price over the expected term. Expected Dividends. The dividend assumption is based on our historical experience. To date we have not paid any dividends on our common stock. Risk-Free Interest Rate. The risk-free interest rate used in the valuation method is the implied yield on the United States treasury zero-coupon issues, with a remaining term equal to the expected term. The following table presents the key assumptions used to determine the fair value of rights granted under the ESPP:
|  |  | Years Ended December 31,
|  |  |  |  | 2024 |  | 2023 |  | 2022
Expected term (years) |  |  |  |  | 0.50 |  | 0.50 |  | 0.50
Expected volatility |  |  |  |  | 60.95%-85.39% |  | 55.79%-109.39% |  | 70.37%-78.74%
Dividend yield |  |  |  |  | 0.00 | % |  | 0.00 | % |  | 0.00 | %
Risk-free interest rate |  |  |  |  | 4.44%-5.40% |  | 5.24%-5.41% |  | 1.54%-4.54%
Weighted-average grant-date fair value per share |  |  |  |  | $ | 0.90 |  |  | $ | 3.62 |  |  | $ | 8.71 |
Stockholder's Equity Activity RSUs and PSUs Activity
| Number of RSUs and PSUs Outstanding |  | Weighted Average Grant Date Fair Value
Balance at December 31, 2023 | 10,065,783 |  |  | $ | 23.63 |
Granted | 5,853,240 |  |  | 4.24 |
Released | (5,069,408) |  |  | 21.02 |
Forfeited | (3,462,650) |  |  | 22.50 |
Balance at December 31, 2024 | 7,386,965 |  |  | $ | 10.58 |
The weighted-average grant-date fair value of RSUs and PSUs granted during the years ended December 31, 2024, 2023, and 2022 was $4.24, $14.58, and $27.68, respectively. The total fair value of RSUs and PSUs vested as of the vesting dates during the years ended December 31, 2024, 2023, and 2022 was $26.1 million, $45.3 million, and $74.2 million, respectively. ESPP Activity There were 859,302, 454,533 and 382,392 shares purchased during the years ended December 31, 2024, 2023 and 2022, respectively, at an average price per share of $3.05, $8.10 and $15.61, respectively, with cash proceeds from the issuance of shares of $2.6 million, $3.7 million and $6.0 million, respectively. Share-based compensation expense related to ESPP was $1.5 million, $2.5 million, and $3.1 million during the years ended December 31, 2024, 2023 and 2022, respectively. Stock Option Activity
|  |  | Number of Stock Options Outstanding |  | Weighted-Average Exercise Price per Share |  | Weighted-Average Remaining Contractual Term in Years |  | Aggregate Intrinsic Value
Balance at December 31, 2023 |  |  | 232,327 |  |  | $ | 6.02 |  |  | 1.81 |  | $ | 1,240,014 |
Forfeited |  |  | (50,251) |  |  |  |  |  |  |
Balance at December 31, 2024 |  |  | 182,076 |  |  | $ | 5.74 |  |  | 1.17 |  | $ | — |
We did not grant any stock options during the years ended December 31, 2024, 2023, and 2022. There were no stock options exercised during the year ended December 31, 2024 and the total intrinsic value of stock options exercised during the years ended December 31, 2023 and 2022, was $0.2 million and $1.3 million, respectively.

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