STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

NOTE 12. STOCK-BASED COMPENSATION

Expense

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Cost of revenue	$	7,092	$	7,174	$	13,664	$	16,087
Selling and marketing	13,564		15,349		27,452		33,009
Research and development	7,825		7,851		15,471		16,911
General and administrative	7,743		5,853		14,418		12,777
	$	36,224	$	36,227	$	71,005	$	78,784
Income tax benefit	$	(554)	$	(581)	$	(865)	$	(1,253)

As of June 30, 2024, the Company had $149.7 million of unrecognized stock-based compensation expense, net of estimated forfeitures, which is expected to be recognized over a weighted-average period of 1.7 years.

Grants

	Six Months Ended June 30, 2024
(in thousands)	Quantity	Total Fair Value
Restricted stock units (1)	1,266	$	78,071
Non-qualified stock options	1,738	$	44,874
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 the six months ended June 30, 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. The options expire ten years from the grant date.