STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

NOTE 12. STOCK-BASED COMPENSATION

Expense

	Three Months Ended March 31,
(in thousands)	2024		2023
Cost of revenue	$	6,572	$	8,912
Selling and marketing	13,888		17,661
Research and development	7,646		9,060
General and administrative	6,675		6,924
	$	34,781	$	42,557
Income tax benefit	$	(311)	$	(672)

As of March 31, 2024, the Company had $184.1 million of unrecognized stock-based compensation expense, net of estimated forfeitures, which is expected to be recognized over a weighted-average period of 1.8 years.

Grants

	Three Months Ended March 31, 2024
(in thousands)	Quantity	Total Fair Value
Restricted stock units (1)	1,239	$	76,466
Non-qualified stock options	1,718	$	44,377
Performance stock options (2)	566	$	13,921

(1) Includes units issued when employees elect to receive 50% of the employee’s target incentive compensation under the Company’s Corporate Incentive Compensation Plan (the “CICP”) in the form of RSUs instead of cash.

(2) Performance stock options allow the holder to purchase a specified number of common stock shares at an exercise price equal to or greater than the shares' fair market value at the grant date. For the performance stock options granted in three months ended March 31, 2024, 25% can vest on the first anniversary of the grant date, and 75% can vest on the second anniversary of the grant date, based on the achievement of specific performance conditions.