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Stockholders' Equity
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders’ Equity
Stock-Based Compensation

The Company’s stock-based compensation generally includes stock options, restricted stock units (“RSUs”), performance-vesting restricted stock units (“PRSUs”), and purchases under the Company’s 2019 Employee Stock Purchase Plan. Stock-based compensation expense related to RSUs is based on the market value of the underlying stock on the date of grant and the related expense is recognized ratably over the requisite service period. The stock-based compensation expense related to PRSUs is estimated at the grant date based on the expectation that performance goals will be achieved at the stated target level. The amount of compensation cost recognized depends on the relative satisfaction of the performance condition based on performance to date.

Stock Incentive Plan

The Company’s 2019 Stock Incentive Plan became effective on April 11, 2019. The 2019 Stock Incentive Plan, as amended and restated, allows the Company’s employees and directors to participate in the Company’s future performance through grants of stock-based awards of stock options and RSUs at the discretion of the board of directors. The number of shares authorized for issuance under the 2019 Stock Incentive Plan as of June 30, 2024 was 42,367,744 shares in the aggregate. Stock options granted under the 2019 Stock Incentive Plan have ten-year terms. As of June 30, 2024, 2,260,544 shares of common stock remained available for issuance (taking into account all stock option exercises and other equity award settlements through June 30, 2024).

Employee Stock Purchase Plan

As of June 30, 2024, there were 2,000,000 shares authorized and reserved for issuance under the Company’s ESPP, and as of June 30, 2024, 864,180 shares of common stock remained available for issuance under the ESPP (taking into account all share purchases through June 30, 2024).

Inducement Plan

There are 13,079,009 shares of common stock authorized and reserved for issuance under the Company’s 2018 Inducement Plan, inclusive of 6,920,000 shares, in the aggregate, authorized for issuance during the first and second quarters of 2024. As of June 30, 2024, 648,450 shares of common stock remained available for issuance under the Inducement Plan (taking into account all option exercises and other equity award settlements through June 30, 2024).

CEO Inducement Award

As part of an equity compensation package negotiated to induce John Sabino, the Company’s Chief Executive Officer, to accept employment with the Company, pursuant to the terms of the employment agreement entered into between Mr. Sabino and the Company, the Company granted Mr. Sabino an option to purchase 1,000,000 shares of common stock (the “CEO Inducement Award”) that will vest upon the satisfaction of certain performance-based and time-based vesting conditions. On May 17, 2024, the Company’s board of directors authorized 1,000,000 shares for issuance under the CEO Inducement Award in compliance with and in reliance on Nasdaq Listing Rule 5635(c)(4). The CEO Inducement Award was a standalone award granted outside of the 2019 Stock Incentive Plan and 2018 Inducement Plan. As of June 30, 2024, no shares of common stock remained available for issuance under the CEO Inducement Award.
Stock Option Activity

The following table is a summary of the Company’s stock option activity for the six months ended June 30, 2024:
Stock Option Activity
Weighted Average Remaining Contractual Term
Aggregate Intrinsic Value
Options
Weighted
Average
Exercise Price
(In thousands)
(Per option)
(In years)
(In thousands)
Balance outstanding as of December 31, 20233,137 $22.68 4.84$40 
Granted1,000 
(1)
1.02 
Cancelled or expired(1,256)22.22 
Balance outstanding as of June 30, 20242,881 15.38 6.31 
Options vested and expected to vest 624 6.89 9.29— 
Options exercisable as of June 30, 20241,692 $22.51 4.12$1 
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(1) Represents the CEO Inducement Award, which does not count against the number of shares reserved for issuance under the Company’s 2019 Stock Incentive Plan or the Company’s 2018 Inducement Plan.

As of June 30, 2024, there was approximately $2.2 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of approximately 1.7 years.

Restricted Stock Unit and Performance-Vesting Restricted Stock Unit Activity

The following table is a summary of the Company’s RSU and PRSU activity for the six months ended June 30, 2024:
Number of Shares
Weighted Average Grant Date Fair Value
Aggregate Fair Value
(In thousands)(Per share)(In thousands)
Balance outstanding as of December 31, 20235,064 $12.53 $19,193 
Awarded5,699 0.99 
Vested(969)16.66 
Forfeited(887)15.82 
Non-vested and outstanding as of June 30, 20248,907 4.37 5,171 
Expected to vest 6,215 $4.66 $3,608 
RSUs granted to employees generally vest over a three to four-year period or upon achievement of certain performance conditions. As of June 30, 2024, total unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested RSUs and PRSUs was approximately $27.3 million and the weighted-average remaining vesting period was 1.8 years.

PRSUs granted are generally subject to both a service-based vesting condition and a performance-based vesting condition. PRSUs will vest upon the achievement of specified performance targets and subject to continued service through the applicable vesting dates. The associated compensation cost is recognized over the requisite service period when it is probable that the performance condition will be satisfied. There were no PRSUs granted during the three and six months ended June 30, 2024. PRSUs granted during the three and six months ended June 30, 2023, were immaterial.
Total stock-based compensation costs included in our condensed consolidated statements of operations for the three and six months ended June 30, 2024 and 2023 are as follows:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)(In thousands)
Cost of revenue $288 $(1,232)$631 $803 
Sales and marketing 1,854 2,299 4,309 4,703 
General and administrative 2,318 (13,882)4,116 (11,250)
Product development 1,440 (5,333)4,402 (1,072)
Total
$5,900 $(18,148)$13,458 $(6,816)