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Stock-Based Compensation
9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock units, performance restricted stock units, options to purchase Class A common stock and Employee Stock Purchase Plan ("ESPP") purchase rights. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (“the 2009 Plan”). The 2009 Plan was amended to provide that no further awards will be issued thereunder, and our board of directors and stockholders adopted and approved our 2014 Equity Incentive Plan (“the 2014 Plan” and, together with the 2009 Plan, “the Plans”).
On May 30, 2024, stockholders approved an amendment to the 2014 Plan that increased the number of shares available for grant by 3,900,000. As of September 30, 2024, 4,920,079 shares of Class A common stock were available for grant under the 2014 Plan.
Stock-Based Compensation Expense
Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
Three months ended September 30,Nine months ended September 30,
2024202320242023
Cost of revenue
Subscription and support
$2,164 $1,247 $5,708 $3,732 
Professional services
858 623 2,348 1,923 
Operating expenses
Research and development
5,681 4,155 15,474 13,677 
Sales and marketing
9,942 7,108 26,470 20,769 
General and administrative
8,825 6,244 25,879 37,928 
Total
$27,470 $19,377 $75,879 $78,029 
Stock Options
The following table summarizes the option activity under the Plans for the nine months ended September 30, 2024:




Options

Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term (Years)
Outstanding at December 31, 20231,211,619 $14.46 2.3
Granted— — 
Forfeited— — 
Expired— — 
Exercised(245,202)15.76 
Outstanding at September 30, 2024966,417 $14.13 1.9
Exercisable at September 30, 2024966,417 $14.13 1.9
Restricted Stock Units and Performance Restricted Stock Units
The following table summarizes the restricted stock unit and performance restricted stock unit activity under the Plans for the nine months ended September 30, 2024:




Number of Shares
Weighted-
Average
Grant Date Fair Value
Unvested at December 31, 20232,198,411 $97.17 
Granted1,490,197 87.53 
Forfeited(166,120)95.04 
Vested(1)
(864,693)95.97 
Unvested at September 30, 20242,657,795 $92.34 
(1) During the nine months ended September 30, 2024, in accordance with our Nonqualified Deferred Compensation Plan, recipients of 3,325 shares elected to defer settlement of their vested restricted stock units and 18,919 shares were released from deferral.
Employee Stock Purchase Plan
During the nine months ended September 30, 2024, 194,239 shares of common stock were purchased under the ESPP at a weighted-average price of $71.16 per share, resulting in cash proceeds of $13.8 million.
Compensation expense associated with ESPP purchase rights is recognized on a straight-line basis over the vesting period. At September 30, 2024, there was approximately $1.4 million of total unrecognized compensation expense related to the ESPP, which is expected to be recognized over a weighted-average period of 0.3 years.