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Equity Incentive Plan
6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plan
13. Equity Incentive Plan
2011 Equity Incentive Plan
The Company’s equity incentive plan allows the Company to grant restricted stock units, performance-based restricted stock units (“PRSU”), restricted stock, and stock options to employees and consultants of the Company and any of the Company’s parent, subsidiaries, or affiliates, and to the members of the Board of Directors.
The following summary of stock option activity for the periods presented is as follows (in thousands, except share and per share data):
Number of Shares
Underlying
Outstanding Options
Weighted
Average
Exercise Price
per Share
Weighted
Average
Remaining
Contractual Life
(in Years)
Aggregate
Intrinsic Value
Balance as of December 31, 20236,625,812 $6.57 4.7$59,957 
Options granted — — 
Options exercised(407,277)8.18 
Options canceled/forfeited (191,094)14.45 
Balance as of June 30, 20246,027,441 6.21 4.3157,803 
Exercisable as of June 30, 20245,443,161 $5.57 4.3$145,976 
As of June 30, 2024, there was total unrecognized compensation cost for outstanding stock options of $2.7 million to be recognized over a period of approximately 1.5 years.
Performance-based Restricted Stock Units
The Company granted 54,075 and 61,328 PRSUs (“the Target Grant”) to certain executive officers during the three months ended March 31, 2024 and June 30, 2024, respectively. The number of PRSUs that may be vested depends on the extent to which performance goals for the award are achieved over a one-year performance period, as determined by the Compensation Committee of the Board, up to a maximum of 200% of the Target Grant. The performance goals for the PRSUs consist of the following two metrics, each with a weighting of 50%: (1) a revenue metric for the year ended December 31, 2024; and (2) an Adjusted EBITDA metric for the year ended December 31, 2024. Each of the metrics are within the Company’s published revenue and Adjusted EBITDA guidance described in the Company’s press release furnished within Exhibit 99.1 of the Company’s Current Report on Form 8-K filed with the SEC on February 29, 2024.

The PRSU awards vest over a four-year period with 1/4th of the shares vesting after the first year and 1/16th of the shares vesting each quarter thereafter, subject to continuous service with the Company. As of June 30, 2024, PRSUs granted in 2024 are being accrued at the target amount. The Company uses the grant date fair value of the common stock to measure compensation expense for PRSU awards. Compensation expense is recognized over the vesting period of the PRSU award using the graded-vesting attribution method and shares attained over target upon vesting will be recognized as awards granted in the period. No PRSU awards vested as of June 30, 2024.
The following summary of restricted stock units (including PRSUs) activity for the periods presented is as follows:
Number of SharesWeighted
average grant
date fair value
Balance as of December 31, 20236,182,543 $12.67 
RSU granted2,041,638 24.30 
RSU vested and settled(1,992,579)25.82 
RSU canceled/forfeited(339,141)13.83 
Balance as of June 30, 20245,892,461 $16.59 
As of June 30, 2024, there was unrecognized compensation cost for outstanding restricted stock units of $89.1 million to be recognized over a period of approximately 3.0 years.
The number of RSUs vested and settled includes shares of common stock that the Company withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.
Stock-based Compensation
Stock-based compensation expense was allocated as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Cost of revenue
Subscription costs$203 $154 $362 $279 
Hardware costs224 243 408 449 
Other costs— 10 21 
Total cost of revenue427 407 774 749 
Research and development6,467 5,301 11,793 10,086 
Sales and marketing774 560 1,406 1,487 
General and administrative3,118 3,001 5,074 5,902 
Total stock-based compensation, net of amounts capitalized$10,786 $9,269 $19,047 $18,224 
There was $0.4 million of capitalized stock-based compensation costs recognized during the three and six months ended June 30, 2024, respectively. There was an immaterial amount of capitalized stock-based compensation costs recognized during the three and six months ended June 30, 2023.
Equity Awards Issued in Connection with Business Combinations
Jio, Inc.
In connection with the Jiobit acquisition in September 2021, the Company granted 43,083 service-based stock options under the Plan to certain Jiobit employees with an aggregate fair value of $0.5 million which vests ratably over the requisite service period. As of June 30, 2024, there was $20 thousand of unrecognized compensation expense related to unvested assumed stock options, which is expected to be recognized over the remaining weighted average life of 0.7 years. As of December 31, 2023, there was $0.1 million of unrecognized compensation expense related to unvested assumed stock options, which is expected to be recognized over the remaining weighted average life of 1 year.
Tile, Inc.
In connection with the Tile acquisition in January 2022, the Company issued 1,499,349 shares of retention restricted stock units with an aggregate fair value of $29.6 million. Of the 1,499,349 shares of retention restricted stock units, 787,446 shares valued at $15.6 million contained performance vesting criteria based on the achievement of certain company milestones during the three months ended March 31, 2022, and vest over a two year period. As of March 31, 2022, the vesting criteria had not been met and all 787,446 restricted stock units were forfeited. The remaining 711,903 retention restricted stock units vest over a two to four year period. As of June 30, 2024, there was $0.5 million of unrecognized compensation expense related to the retention restricted stock units which is expected to be recognized over the remaining weighted average life of 1.5 years. As of December 31, 2023, there was $0.7 million of unrecognized compensation expense related to the retention restricted stock units which is expected to be recognized over the remaining weighted average life of 1.9 years.
A total of 1,561 shares of common stock with an aggregate fair value of $31 thousand were issued to a key employee, the vesting of which is subject to continued employment over a 30-month period. As of June 30, 2024 there was an immaterial amount of unrecognized compensation expense related to unvested restricted stock units which was expected to be recognized over the remaining 0.5 years. As of December 31, 2023 the compensation expense related to the vested restricted stock units was fully recognized.