Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

We currently grant restricted stock unit awards to employees, directors and non-employee consultants under our 2010 Equity Incentive Plan and from time to time may also grant stock option awards. Through our 2010 Employee Stock Purchase Plan, employees are also able to purchase shares of our Class A common stock at a discount through payroll deductions. We have reserved shares of our Class A common stock for issuance under these plans.

The total stock-based compensation expense recognized was $7.9 million and $10.8 million for the three months ended September 30, 2023 and 2022, respectively, and $27.7 million and $31.3 million for the nine months ended September 30, 2023 and 2022, respectively.

Restricted Stock Units

Restricted stock unit activity for awards subject to only service conditions was as follows for the nine months ended September 30, 2023:

	Shares	Weighted-Average Grant-Date Fair Value
	(In thousands, except per share data)
Outstanding at December 31, 2022	1,555	$	34.08
Restricted stock units granted	1,352	18.11
Restricted stock units vested	(609)	35.17
Restricted stock units canceled	(259)	30.33
Outstanding at September 30, 2023	2,039	$	23.64

Performance-Based Restricted Stock Units

Performance-based restricted stock unit activity for the nine months ended September 30, 2023 was as follows:

	Shares	Weighted-Average Grant-Date Fair Value
	(In thousands, except per share data)
Outstanding at December 31, 2022	644	$	32.40
Performance restricted stock units granted	724	18.13
Performance restricted stock units vested	(99)	35.82
Performance restricted stock units canceled	(161)	28.15
Adjustment for completed performance periods	15	46.82
Outstanding at September 30, 2023	1,123	$	23.70

We grant performance-based restricted stock units to certain employees that are subject to the attainment of pre-established internal performance conditions, market conditions, or a combination thereof (collectively referred to herein as "performance-based restricted stock units"). The actual number of shares subject to the award is determined at the end of the performance period and may range from 0% to 200% of the target shares granted depending upon the terms of the award. Compensation expense related to these awards is recognized using the accelerated attribution method over the vesting period based on the grant date fair value of the award.

Stock Options

Total stock option activity for the nine months ended September 30, 2023 was as follows:

	Options	Weighted-Average Exercise Price
	(In thousands, except per share data)
Outstanding at December 31, 2022	1,171	$	26.97
Options exercised	(8)	16.34
Options canceled	(139)	50.89
Outstanding at September 30, 2023	1,024	$	23.81
Exercisable at September 30, 2023	1,024	$	23.81

We did not issue any stock option awards from our 2010 Equity Incentive Plan for the periods presented in these consolidated financial statements.