Stockholders' Equity and Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Stockholders Equity And Stock Based Compensation [Abstract]

Summary of Number of Shares of Common Stock Reserved

The number of shares of common stock reserved for the vesting of RSUs, PSUs, and exercise of common stock options are as follows (in thousands):

	December 31, 2023		December 31, 2022
RSUs		1,902		1,580
PSUs		58		—
Common stock options		470		462
		2,430		2,042

Schedule of Stock Compensation Expense by Award Type

The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations:

	Year Ended December 31,
	2023		2022		2021
	( in thousands)
Options	$	11,555	$	9,713	$	6,253
RSUs		391,810		253,838		151,385
PSUs		13,502		—		—
ESPP		15,404		12,298		9,123
Total stock-based compensation	$	432,271	$	275,849	$	166,761

Effect of Stock-Based Compensation on Income by Line Item

The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations:

	2023		2022		2021
	(in thousands)
Cost of revenue, subscription	$	12,652	$	9,076	$	6,297
Cost of revenue, service		4,958		4,393		3,092
Research and development		198,953		107,517		61,614
Sales and marketing		140,362		107,640		67,413
General and administrative		75,346		47,223		28,345
Total stock-based compensation	$	432,271	$	275,849	$	166,761

Schedule of Assumptions Used for Estimation of Fair Value of Options Granted to Employees

Stock Options —The fair value of employee options is estimated on the date of each grant using the Black-Scholes option-pricing model with the following assumptions:

	Year Ended December 31,
	2023		2022		2021
Risk-free interest rate (%)	3.46-4.37		1.70-3.00		0.53-1.36
Expected term (years)	5.3-6.0		5.1-6.4		5.2-6.4
Volatility (%)	52.72-55.06		43.19-50.58		42.97-44.70
Expected dividends		—		—		—

Summary of Stock Option Activity

The stock option activity for the year ended December 31, 2023 is as follows:

	Shares (in thousands)			Weighted- Average Exercise Price		Weighted- Average Remaining Life (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding—January 1, 2023		462		$	175.81		5.1	$	71,973
Granted		82			365.66
Exercised		(65	)		94.71
Forfeited/expired		(9	)		568.20
Outstanding—December 31, 2023		470		$	212.69		5.2	$	173,186
Options vested or expected to vest—December 31, 2023		470		$	212.69		5.2	$	173,186
Options exercisable—December 31, 2023		361		$	155.72		4.2	$	153,376

Summary of Activity Related to RSUs and PSUs

The following table summarizes the activity related to RSUs and PSUs for the year ended December 31, 2023:

	Shares (in thousands)			Weighted- Average Grant Date Fair Value Per Share
Unvested and outstanding at January 1, 2023		1,580		$	378.12
Granted		1,666			410.65
Vested		(1,063	)		360.31
Forfeited		(223	)		389.82
Unvested and outstanding at December 31, 2023		1,960		$	414.11

Schedule of Assumptions Used for Estimation of Fair Value of Employee Options

The fair value of employee options is estimated using the Black-Scholes option-pricing model with the following assumptions:
 

	Year Ended December 31,
	2023		2022		2021
Risk-free interest rate (%)	4.65-5.44		0.10-4.65		0.04-0.10
Expected term (years)		0.50		0.50		0.50
Volatility (%)	38.83-76.02		39.85-76.02		42.73-45.67
Expected dividends		—		—		—

Summary of Activity Related to Employee Stock Purchase Plan

The following table summarizes the activity related to ESPP:

	Shares Issued  (in thousands)		Weighted- Average Purchase Price		Total Cash Proceeds (in thousands)
2023		127	$	319.70	$	40,479
2022		121	$	272.72	$	33,046
2021		77	$	372.50	$	28,667