XML 24 R13.htm IDEA: XBRL DOCUMENT v3.24.3
Employee benefit plans
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Compensation and Employee Benefit Plans
7. Employee benefit plans
Equity incentive plans. The Company has outstanding equity grants from four of its five stock-based employee compensation plans: the 2024 Equity Incentive Plan (2024 Plan), the 2014 Equity Incentive Plan (2014 Plan), the 2010 Equity Incentive Plan (2010 Plan), and the 2024 Employee Stock Purchase Plan (2024 ESPP). The 2024 Plan serves as a successor to the 2014 Plan and the 2014 Plan serves as successor to the 2010 Plan. The effective date of both the 2024 Plan and the 2024 ESPP was February 15, 2024. The 2014 Plan and the 2014 Employee Stock Purchase Plan (2014 ESPP) each expired on February 15, 2024. The 2014 ESPP plan’s final purchase was on February 15, 2024, and no remaining purchase rights are accrued under this plan. Awards granted under the 2010 and 2014 Plans will continue to be subject to the terms and provisions of the 2010 and 2014 Plans.
The 2024 Plan provides for the granting of incentive and non-qualified stock options, restricted stock awards (RSAs), restricted stock units (RSUs), stock appreciation rights, stock bonus awards and performance awards to qualified employees, non-employee directors and consultants. Options granted under the 2024 Plan generally expire within ten years from the date of grant and generally vest over one to four years. Restricted stock units (RSUs) granted under the 2024 Plan generally vest over two to four years based upon continued service and are settled at vesting in shares of the Company’s Class A common stock. Performance stock units (PSUs) granted under the 2024 Plan generally vest over three years based upon continued service and the Company achieving certain financial and operating targets and are settled at vesting in shares of the Company’s Class A common stock. The Company accounts for forfeitures of stock-based payment awards in the period they occur. The 2024 ESPP allows eligible employees to purchase shares of the Company’s Class A common stock through payroll deductions at a price equal to 85% of the lesser of the fair market value of the stock as of the first date or the ending date of each six-month offering period. For additional information regarding the Company’s equity incentive plans, refer to the 2023 Annual Report.
Stock options
A summary of the Company’s stock option activity for the nine months ended September 30, 2024 is as follows:
Shares
(in thousands)
Weighted-average exercise price
Weighted-average remaining contractual term (in years)
Aggregate intrinsic value (in thousands)
Outstanding at December 31, 20232,684 $8.43 5.08$— 
Granted— — 
Exercised— — 
Forfeited/Cancelled(357)14.96 
Outstanding at September 30, 20242,327 $7.43 4.84$— 
Vested and expected to vest at September 30, 20242,327 $7.43 4.84$— 
Exercisable at September 30, 20242,015 $7.75 4.29$— 
The aggregate intrinsic value of the stock options outstanding as of September 30, 2024 represents the value of the Company’s closing stock price on September 30, 2024 in excess of the exercise price multiplied by the number of options outstanding.
Restricted stock units
A summary of the Company’s RSU activity for the nine months ended September 30, 2024 is as follows:
Shares
(in thousands)
Weighted-average grant date fair value
Non-vested shares at December 31, 202311,494 $5.94 
Granted6,616 1.91 
Vested(4,481)6.02 
Forfeited(1,571)4.72 
Non-vested shares at September 30, 202412,058 $3.86 
Performance stock units
A summary of the Company’s PSU activity for the nine months ended September 30, 2024 is as follows:
Shares
(in thousands)
Weighted-average grant date fair value
Non-vested shares at December 31, 2023829 

$6.40 
Granted1,531 1.70 
Vested(454)6.56 
Forfeited(12)5.79 
Non-vested shares at September 30, 20241,894 $2.57 
Employee stock purchase plan. For the nine months ended September 30, 2024 and 2023, the Company issued 1.4 million and 0.9 million shares under its employee stock purchase plans, respectively, at weighted-average prices of $1.56 and $4.10 per share, respectively.
Stock-based compensation expense. The Company measures compensation expense for all stock-based payment awards based on the estimated fair values on the date of the grant. The fair value of stock options granted and ESPP issuances is estimated using the Black-Scholes option pricing model. The fair value of RSUs and PSUs are determined using the Company’s closing stock price on the date of grant. There have been no significant changes in the Company’s valuation assumptions from those disclosed in its 2023 Annual Report.
The following table summarizes stock-based compensation expense included in the Condensed Consolidated Statements of Operations:
Three months ended September 30,Nine months ended September 30,
(in thousands)
2024202320242023
Cost of revenue
$349 $500 $1,103 $1,496 
Research and development
3,669 4,713 11,950 14,381 
Sales and marketing
1,603 2,125 4,892 6,662 
General and administrative
1,751 2,679 5,988 8,909 
Total stock-based compensation expense$7,372 $10,017 $23,933 $31,448 
There was no income tax benefit related to stock-based compensation expense for the three and nine months ended September 30, 2024 due to a full valuation allowance on the Company’s United States net deferred tax assets. The income tax benefit related to stock-based compensation expense was $2.3 million and $7.1 million for the three and nine months ended September 30, 2023, respectively. See Note 9, Income taxes, for additional details.
As of September 30, 2024, total unearned stock-based compensation of $39.0 million related to stock options, RSUs, PSUs, and ESPP shares is expected to be recognized over a weighted-average period of 2.31 years