v3.20.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock-Based Compensation Expense
The following table presents stock-based compensation expense related to stock-based awards, as well as the 2017 Employee Stock Purchase Plan (the “ESPP”), contained within the following line items of the Company’s condensed consolidated statements of operations and comprehensive loss for each of the periods indicated.
 
Three Months Ended
March 31,
 
2020
 
2019
 
(in thousands)
Curriculum and teaching
$
133

 
$
3

Servicing and support
3,928

 
1,669

Technology and content development
3,169

 
1,856

Marketing and sales
3,233

 
1,256

General and administrative
10,407

 
4,800

Total stock-based compensation expense
$
20,870

 
$
9,584


Stock Options
The following table presents a summary of the Company’s stock option activity for the period indicated.
 
Number of
Options
 
Weighted-Average
Exercise Price per
Share
Outstanding balance as of December 31, 2019
4,373,895

 
$
34.24

Granted
8,597

 
19.61

Exercised
(37,275
)
 
10.30

Forfeited
(7,252
)
 
66.61

Expired
(27,399
)
 
38.73

Outstanding balance as of March 31, 2020
4,310,566

 
34.34

Exercisable as of March 31, 2020
3,079,102

 
$
21.82

 
*
As of March 31, 2020, the aggregate intrinsic value of options exercisable was $22.7 million and such shares had a weighted-average remaining contractual term of 2.77 years.
Restricted Stock Units
In January 2020, the Company issued its annual grants to certain employees consisting of restricted stock units (“RSUs”) and performance restricted stock units (“PRSUs”). In connection with this, the Company granted 1.7 million RSUs with an aggregate grant date fair value of $34.1 million. Also in connection with this, the Company awarded 1.9 million PRSUs, of which 0.6 million PRSUs were granted with an aggregate grant date fair value of approximately $12.8 million. The RSU awards vest over a period of three years while the PRSU awards vest over a one-year period. The quantity of PRSU awards that will vest is based on the Company’s stock price achieving pre-determined total shareholder return targets relative to that of companies comprising the Russell 3000 Index during each performance period. The PRSU award agreements provide that the quantity of units subject to vesting may range from 200% to 0% of the granted quantities for the first performance period, depending on the achievement of market-based targets. Achievement percentages applicable to the second and third performance periods will be determined in advance of the beginning of the second and third performance periods, by the Company’s compensation committee. The expense recognized each period is determined at the time of grant and not subject to fluctuation due to the achievement of market-based targets.
The following table presents a summary of the Company’s RSU and PRSU activity for the period indicated.
 
Number of
Units
 
Weighted-
Average Grant
Date Fair Value per Share
Outstanding balance as of December 31, 2019
3,694,915

 
$
35.76

Granted
2,369,093

 
20.42

Vested
(96,683
)
 
52.64

Forfeited
(260,279
)
 
53.31

Outstanding balance as of March 31, 2020
5,707,046

 
$
28.30