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Stock-Based Compensation and Stockholders' Equity
3 Months Ended
Mar. 31, 2023
Equity [Abstract]  
Stock-Based Compensation and Stockholders' Equity Stock-Based Compensation and Stockholders' Equity
Stock-Based Compensation Expense

The following table sets forth stock-based compensation expense recognized by the Company in the following line items in the Company's consolidated statements of operations and comprehensive income during the periods presented:

 Three Months Ended March 31,
(in thousands)20232022
Cost of services$149 $76 
Sales and marketing2,658 769 
General and administrative2,586 1,083 
Stock-based compensation expense $5,393 $1,928 

The following table sets forth stock-based compensation expense by award type during the periods presented:

 Three Months Ended March 31,
(in thousands)20232022
RSUs$2,411 $— 
PSUs2,263 — 
Stock options428 1,553 
ESPP291 375 
Stock-based compensation expense $5,393 $1,928 
Restricted Stock Units

The following table sets forth the restricted stock unit (“RSU”) activity during the three months ended March 31, 2023:

 Number of Restricted Stock UnitsWeighted-Average Grant-Date Fair Value
Nonvested balance as of December 31, 2022517,135$25.93 
Granted675,70119.31
Vested (163,922)26.09
Forfeited(9,848)24.77
Nonvested balance as of March 31, 20231,019,066$21.52 

The Company grants RSUs to the Company's employees and non-employee directors under the Company’s 2020 Incentive Award Plan (the “2020 Plan”). Pursuant to the RSU award agreements, each RSU entitles the recipient to one share of the Company’s common stock, subject to time-based vesting conditions set forth in individual agreements.

The fair value of each RSU grant is determined based upon the market closing price of the Company’s common stock on the date of grant. The RSUs vest over the requisite service period, which ranges between one year and three years from the date of grant, subject to the continued employment of the employees and services of the non-employee board members.

As of March 31, 2023, the unrecognized stock-based compensation expense related to the unvested portion of the Company's RSU awards was approximately $20.3 million and is expected to be recognized over a weighted average period of 2.4 years.

During the three months ended March 31, 2023, the Company issued an aggregate of 164,812 shares of common stock to employees upon the exercise of RSUs previously granted under the 2020 Plan.

Performance-Based Restricted Stock Units

The following table sets forth the performance-based restricted stock unit (“PSU”) activity during the three months ended March 31, 2023:

 Number of Performance-Based Restricted Stock UnitsWeighted-Average Grant-Date Fair Value
Nonvested balance as of December 31, 2022473,371$26.76 
Granted657,40821.46
Vested
Forfeited
Nonvested balance as of March 31, 20231,130,779$23.68 

The Company also grants PSUs to employees under the Company’s 2020 Plan. Pursuant to the PSU Award Agreement, each PSU entitles the recipient to up to 1.5 shares of the Company’s common stock, subject to performance-based vesting conditions set forth in individual agreements.

The PSUs will vest, if at all, following the achievement of certain performance measures over a three year performance period, relative to certain performance and market conditions. Grant date fair value of PSUs, that vest relative to a performance condition, is measured based upon the market closing price of the Company’s common stock on the date of grant and expensed on a straight-line basis when it becomes probable that the performance conditions will be satisfied, net of forfeitures, over the service period of the awards, which is generally the vesting term of three years. Grant date fair value of PSUs, that vest relative to a market condition, is measured using a Monte Carlo simulation model and expensed on a straight-line basis, net of forfeitures, over the service period of the awards, which is generally the vesting term of three years. As of March 31, 2023, the nonvested balance of PSUs that vest based on performance and market conditions are 452,316 and 678,463 shares, respectively.
As of March 31, 2023, the unrecognized stock-based compensation expense related to the unvested portion of the Company's PSU awards was approximately $21.4 million and is expected to be recognized over a weighted average period of 2.4 years.

Stock Options

As of March 31, 2023, the unrecognized stock-based compensation expense related to the unvested portion of the Company's stock options was approximately $1.7 million, and is expected to be recognized over a weighted average period of 0.9 years. As of March 31, 2023, there were 767,189 stock options expected to vest with a weighted average grant-date fair value of $13.17.

During the three months ended March 31, 2023, the Company issued an aggregate of 113,620 shares of common stock to employees upon the exercise of options previously granted under the 2016 Stock Incentive Plan and 2020 Plan at exercise prices ranging from $3.68 to $13.82 per share.

During the three months ended March 31, 2022, the Company issued an aggregate of 82,810 shares of common stock to employees upon the exercise of options previously granted under the 2016 Stock Incentive Plan at exercise prices ranging from $3.68 to $13.82 per share.

Employee Stock Purchase Plan

During the three months ended March 31, 2023 and 2022, no shares were issued through the Employee Stock Purchase Plan ("ESPP").

Stock Warrants

As of March 31, 2023 and December 31, 2022, the Company had 9,427,343 fully vested outstanding warrants. As of March 31, 2023 and December 31, 2022, the holders of such warrants were entitled to purchase, in the aggregate, up to 5,237,413 shares of common stock. Warrants can be exercised at a strike price of $24.39 per common share. The warrants were issued in 2016 upon the Company's emergence from its pre-packaged bankruptcy. These warrants expire on August 15, 2023.
During the three months ended March 31, 2023 and 2022, no warrants were exercised.