Stock-based Compensation

3 Months Ended

Mar. 31, 2013

Stock-based Compensation

(7) Stock-based Compensation

The fair value for options granted was estimated at the date of the grant using a Black-Scholes option-pricing model. There were no options granted during the three months ended March 31, 2013. The weighted-average grant date fair value of options granted during the three months ended March 31, 2012 was $2.95. The following table presents the weighted-average assumptions for options granted during the three months ended March 31, 2012:

	Three Months Ended
	March 31,
	2012
	(unaudited)
Expected term (in years)	6.4
Risk-free interest rate	1.45%
Dividend yield	None
Volatility rate	42%

The following table presents the effects of stock-based compensation on the Company’s condensed consolidated statement of operations during the periods presented (in thousands):

	Three Months Ended
	March 31,
	2013		2012
	(unaudited)
Stock-based compensation expense:
Marketing	$	92	$	51
Technology and development		226		148
Customer service and operations		77		42
General and administrative		383		183
	$	778	$	424

Stock option activity and related information during the period indicated was as follows (unaudited):

				Weighted-				Exercisable
				Average				Weighted-
	Options			Exercise		Options		Average
	Outstanding			Price		Exercisable		Exercise Price
Outstanding at December 31, 2012		6,730,520		$	5.10		3,352,116	$	2.20
Granted		—			—
Exercised		(218,484	)		1.83
Forfeited		(28,227	)		5.44
Outstanding at March 31, 2013		6,483,809		$	5.21		3,543,365	$	2.70

As of March 31, 2013, there were 6,424,796 options that had vested and are expected to vest with a weighted-average exercise price of $5.19 and a weighted-average contractual life of 6.9 years. As of December 31, 2012, there were 6,663,152 options that had vested and were expected to vest with a weighted-average exercise price of $5.08 and a weighted-average contractual life of 7.1 years.

The aggregate intrinsic value of options outstanding was $57.7 million and the aggregate intrinsic value of options exercisable was $40.5 million as of March 31, 2013.

The aggregate intrinsic value of options exercised was approximately $3.2 million and $18,000 for the three months ended March 31, 2013 and 2012, respectively. The total fair value of shares vested was approximately $1.1 million and $202,000 for the three months ended March 31, 2013 and 2012, respectively.

As of March 31, 2013, there was $9.3 million of total unrecognized compensation expense related to option grants, which is expected to be recognized over a weighted-average period of 3.24 years.