Noncash Share-based Compensation (Note)

9 Months Ended

Sep. 30, 2022

Noncash Share-based Compensation [Abstract]

The Company's 2017 Equity Incentive Plan (as amended and restated, the "2017 Stock Plan") has an aggregate authorized limit of 7,650,000 shares for issuance. As of September 30, 2022, 2,882,571 shares remain available for issuance under the 2017 Stock Plan.

The following table presents the number of shares or units outstanding for each award type as of September 30, 2022 and December 31, 2021, respectively, (in thousands):


Award type	September 30, 2022	December 31, 2021

Restricted stock units (time-based)	2,554	2,145
Restricted stock units (performance-based)	—	140


Market stock units	216	126
EveryMundo Equity consideration	273	273

During the three months ended September 30, 2022, the Company granted 57,088 RSUs (time-based) with a weighted average grant-date fair value of $26.80 per share.

During the nine months ended September 30, 2022, the Company granted 1,410,309 RSUs (time-based) with a weighted average grant-date fair value of $30.09 per share. The Company also granted 116,640 MSUs with a weighted average grant-date fair value of $37.65 to certain executive employees during the nine months ended September 30, 2022. These MSUs vest on January 31, 2025 and the actual number of MSUs that will be eligible to vest is based on the total stockholder return of the Company relative to the total stockholder return of the Index over the performance period, as defined by each award's plan documents or individual award agreements. The maximum number of shares issuable upon vesting is 200% of the MSUs initially granted.

The Company did not grant any stock options, SARs or performance-based RSUs during the three and nine months ended September 30, 2022.

The assumptions used to value the MSUs granted during the nine months ended September 30, 2022 were as follows:


	September 30, 2022
Volatility	54.50	%
Risk-free interest rate	1.20	%
Expected award life in years	2.97
Dividend yield	—

Share-based compensation expense is allocated to expense categories on the unaudited condensed consolidated statements of comprehensive loss. The following table summarizes share-based compensation expense included in the Company's unaudited condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2022 and 2021:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Share-based compensation:
Cost of revenue	$	1,050	$	951	$	2,881	$	2,753
Operating expenses:
Selling and marketing	2,897		2,600		9,413		7,334
Research and development	2,995		1,924		9,607		5,867
General and administrative	3,684		3,159		10,716		9,456
Total included in operating expenses	9,576		7,683		29,736		22,657
Total share-based compensation expense	$	10,626	$	8,634	$	32,617	$	25,410

At September 30, 2022, the Company had an estimated $81.6 million of total unrecognized compensation costs related to share-based compensation arrangements. These costs will be recognized over a weighted average period of 2.7 years.

The Company's Employee Stock Purchase Plan (as amended, the "ESPP") provides for eligible employees to purchase shares on an after-tax basis in an amount between 1% and 10% of their annual pay: (i) on June 30 of each year at a 15% discount of the fair market value of the Company's common stock on January 1 or June 30, whichever is lower, and (ii) on December 31 of each year at a 15% discount of the fair market value of the Company's common stock on July 1 or December 31, whichever is lower. An employee may not purchase more than $5,000 in either of the six-month measurement periods described above or more than $10,000 annually. In May 2021, the Company's stockholders approved an amendment to the ESPP Plan increasing the aggregate amount of shares available for issuance under the ESPP to 1,000,000. During the three and nine months ended September 30, 2022, the Company issued 57,341 and 106,586 shares under the ESPP, respectively. As of September 30, 2022, 387,125 shares remain authorized and available for issuance under the ESPP. As of September 30, 2022, the Company held approximately $0.7 million on behalf of employees for future purchases under the ESPP, and this amount was recorded in accrued payroll and other employee benefits in the Company's unaudited condensed consolidated balance sheet.