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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
In 2018, our Board of Directors adopted, and our stockholders approved, our 2018 Equity Incentive Plan ("2018 Plan"). Under the evergreen provision in the 2018 Plan, in January 2024 we reserved an additional 5.9 million shares of our common stock. At June 30, 2024, there were 26.1 million shares available for grant.
Stock-based compensation expense included in the consolidated statements of operations was as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Cost of revenue$3,288$2,906$6,270$5,531
Sales and marketing16,27616,42331,57630,817
Research and development11,7999,76422,96018,629
General and administrative10,0358,76720,31117,000
Total stock-based compensation expense$41,398$37,860$81,117$71,977
A summary of the unrecognized stock-based compensation expense related to unvested stock at June 30, 2024 is presented below:
Unrecognized Stock-Based Compensation Expense
(in thousands)		Estimated Weighted Average Period
(in years)
Restricted stock units ("RSUs")$347,395 2.9
Performance stock units ("PSUs")9,2253.3
Restricted stock9,9791.8
2018 Employee Stock Purchase Plan ("2018 ESPP")3,5700.7
Restricted Stock, RSUs and PSUs
A summary of our restricted stock, RSU and PSU activity is presented below:
Restricted StockRSUsPSUs
(in thousands, except for per share data)
Number of SharesWeighted Average Grant Date Fair ValueNumber
of Shares		Weighted
Average
Grant Date Fair Value		Number
of Shares		Weighted
Average
Grant Date Fair Value
Unvested balance at December 31, 2023311$45.67 7,343$43.80 258$43.90 
Granted
— — 3,595 46.61 170 47.20 
Performance adjustment(1)
— — — — (10)43.24 
Vested
(62)45.67 (1,936)42.80 (69)43.79 
Forfeited
— — (536)44.70 — — 
Unvested balance at June 30, 202424945.678,46645.15 34945.54 
_______________
(1)    Represents adjustments due to the achievement of predefined financial performance targets.
Stock Options
A summary of our stock option activity is presented below:
(in thousands, except for exercise prices and years)
Number
of Shares		Weighted
Average
Exercise Price		Weighted-Average Remaining Contractual Term (in years)
Aggregate Intrinsic Value
Outstanding at December 31, 20235,095$8.95 3.5$189,108
Exercised
(647)6.39 26,036
Forfeited/canceled
—— — 
Outstanding and exercisable at June 30, 20244,4489.32 3.1152,410
2018 Employee Stock Purchase Plan
Under the evergreen provision in our 2018 ESPP, in January 2024 we reserved an additional 1.8 million shares of our common stock. At June 30, 2024, there were 10.1 million shares reserved for issuance under our 2018 ESPP.
In the six months ended June 30, 2024, employees purchased 304,579 shares of our common stock at a weighted average price of $32.43 per share, resulting in $9.9 million of cash proceeds. At June 30, 2024, there was $5.3 million of employee contributions to the 2018 ESPP included in accrued compensation.
The fair value of the 2018 ESPP purchase rights was estimated on the offering or modification dates using a Black-Scholes option-pricing model and the following assumptions:
Six Months Ended June 30,
20242023
Expected term (in years)
0.5 — 2.0
0.5 — 2.0
Expected volatility
41.1% — 51.4%
51.0% — 58.1%
Risk-free interest rate
4.4% — 5.1%
4.8% — 5.0%
Expected dividend yield——