In July 2018, the Board adopted the 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan became effective in connection with the Company's initial public offering ("IPO"). The number of shares reserved for issuance under the 2018 Plan increases automatically on January 1 of each year beginning in 2019 and continuing through 2028 by a number of shares of common stock equal to the lesser of (x) 5% of the total outstanding shares of the Company’s common stock and common stock equivalents as of the immediately preceding December 31 (rounded to the nearest whole share) and (y) a number of shares determined by the Company's Board.

Pursuant to the 2018 Plan, the Company issues stock options to employees and directors. The option price, number of shares, and grant date are determined at the discretion of the Board. For so long as the option holder performs services for the Company, the options generally vest over 48 months, on a monthly or quarterly basis, with certain options subject to an initial annual cliff vest, and are exercisable for a period not to exceed ten years from the date of grant.

The summary of the Company’s stock option activity is as follows:


	Number of Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Outstanding at October 1, 2022		10,802,882		$	13.37		4.5	$	10,956
Exercised		(730,376	)		11.10
Forfeited		(20,943	)		15.19
Outstanding at December 31, 2022		10,051,563		$	13.53		4.2	$	33,834
At December 31, 2022
Options exercisable		10,039,063		$	13.54		4.2	$	33,762
Options vested and expected to vest		10,051,332		$	13.53		4.2	$	33,833

As of December 31, 2022, and October 1, 2022, the Company had less than $0.1 million and had $0.4 million, respectively, of unrecognized stock-based compensation expense related to stock options, which are expected to be recognized over weighted-average periods of 0.1 and 0.2 years, respectively.

Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. RSUs vest quarterly over the service period, which is generally four years, with certain awards subject to an initial annual cliff vest. The summary of the Company’s RSU activity is as follows:


	Number of Units			Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
						(In thousands)
Outstanding at October 1, 2022		8,308,177		$	19.25	$	115,484
Granted		4,658,164			17.40
Released		(992,867	)		15.97
Forfeited		(182,718	)		18.95
Outstanding at December 31, 2022		11,790,756		$	18.80	$	199,264
At December 31, 2022
Units expected to vest		9,943,485		$	18.66	$	168,045

As of December 31, 2022, and October 1, 2022, the Company had $166.6 million and $120.6 million of unrecognized stock-based compensation expense related to RSUs, which are expected to be recognized over weighted-average periods of 2.8 and 2.5 years, respectively.

Pursuant to the 2018 Plan, the Company has issued and may issue certain PSUs that vest on the satisfaction of service and performance conditions. The number of outstanding PSUs is based on the target number of share awards. The number of shares vested at the end of the performance period is based on achievement of performance conditions and may include adjustments to reflect the extent to which the corresponding performance goals have

been achieved. In the first quarter of fiscal 2023, the number of shares vested included performance achievement adjustments of a net reduction of 12,895 units. The summary of the Company’s PSU activity is as follows:


	Number of Units			Weighted-Average Grant Date Fair Value		Aggregate Intrinsic Value
						(In thousands)
Outstanding at October 1, 2022		398,077		$	26.96	$	5,533
Granted		249,370			17.54
Vested		(263,158	)		26.26
Outstanding at December 31, 2022		384,289		$	21.33	$	6,494

As of December 31, 2022, and October 1, 2022, the Company had $3.5 million and $0.4 million of unrecognized stock-based compensation expense related to PSUs, which are expected to be recognized over weighted-average periods of 2.0 and 0.6 years, respectively.

Total stock-based compensation expense by functional category was as follows:


	Three Months Ended
	December 31, 2022		January 1, 2022
(In thousands)
Cost of revenue	$	570	$	328
Research and development		9,151		6,738
Sales and marketing		4,113		3,647
General and administrative		6,361		6,746
Total stock-based compensation expense	$	20,195	$	17,459