Stock-based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Stock-Based Compensation

Stock-based compensation expense includes stock options, restricted stock awards, and restricted stock units granted to employees and other service providers and has been reported in the Company’s consolidated statements of operations depending on the function performed by the employee or other service provider. Stock-based compensation expense recognized in the consolidated statements of operations was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Veterinary invoice expense	$	245	$	185	$	423	$	346
Other cost of revenue	99		93		189		179
Technology and development	133		110		233		173
General and administrative	1,075		918		1,804		1,536
Sales and marketing	675		567		1,231		996
Total stock-based compensation expense	2,227		1,873		3,880		3,230
Capitalized stock-based compensation	67		49		120		109
Total stock-based compensation	$	2,294	$	1,922	$	4,000	$	3,339

As of June 30, 2020, the Company had 101,341 unvested stock options and 812,143 unvested restricted stock awards and restricted stock units that are expected to vest. Stock-based compensation expenses of $0.7 million related to unvested stock options and $21.8 million related to unvested restricted stock awards and restricted stock units are expected to be recognized over a weighted average period of approximately 0.8 years and 3.1 years, respectively.

Stock Options

A summary of the Company's stock option activity is as follows:

	Number of Options	Weighted Average Exercise Price per Share		Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2019	2,097,978	$	9.86	$	57,907
Granted	—	—		—
Exercised	(156,295)	11.43		3,531
Forfeited	(11,332)	17.59		—
Outstanding as of June 30, 2020	1,930,351	9.69		63,709
Exercisable as of June 30, 2020	1,829,010	$	9.23	$	61,194

As of June 30, 2020, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.5 years and 4.4 years, respectively.

Restricted Stock Awards and Restricted Stock Units

A summary of the Company’s restricted stock award and restricted stock unit activity is as follows:

	Number of  Shares	Weighted Average Grant Date Fair Value per Share
Unvested shares as of December 31, 2019	581,943	$	29.56
Granted	439,690	27.34
Vested	(160,169)	29.08
Forfeited	(49,321)	29.81
Unvested shares as of June 30, 2020	812,143	$	28.44