Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense

Stock-based compensation expense included in the consolidated statements of operations was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Cost of revenue	$	3,216	$	3,011	$	9,486	$	8,542
Sales and marketing	15,941		15,805		47,517		46,622
Research and development	12,435		9,242		35,395		27,871
General and administrative	10,092		8,777		30,403		25,777
Total stock-based compensation expense	$	41,684	$	36,835	$	122,801	$	108,812

Schedule of Unrecognized Stock-Based Compensation

A summary of the unrecognized stock-based compensation expense related to unvested stock at September 30, 2024 is presented below:

	Unrecognized Stock-Based Compensation Expense (in thousands)		Estimated Weighted Average Period (in years)
Restricted stock units ("RSUs")	$	310,029	2.7
Performance stock units ("PSUs")	7,190		3.0
Restricted stock	8,557		1.5
2018 Employee Stock Purchase Plan ("2018 ESPP")	13,345		1.0

Schedule of RSUs and PSUs

A summary of our restricted stock, RSU and PSU activity is presented below:

	Restricted Stock			RSUs			PSUs
(in thousands, except for per share data)	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2023	311	$	45.67	7,343	$	43.80	258	$	43.90
Granted	—	—		3,949	46.10		170	47.20
Performance adjustment(1)	—	—		—	—		(10)	43.24
Vested	(93)	45.67		(2,497)	43.07		(88)	43.87
Forfeited	—	—		(860)	45.02		(11)	43.95
Unvested balance at September 30, 2024	218	45.67		7,935	45.03		319	45.68

_______________

(1)    Represents adjustments due to the achievement of predefined financial performance targets.

Schedule of Stock Option Activity

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, 2023	5,095	$	8.95	3.5	$	189,108
Exercised	(756)	6.34			30,215
Forfeited/canceled	—	—			—
Outstanding and exercisable at September 30, 2024	4,339	9.40		2.9	135,020

Schedule of ESPP Valuation Assumptions

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:

	Nine Months Ended September 30,
	2024	2023
Expected term (in years)	0.5 — 2.0	0.5 — 2.0
Expected volatility	31.9% — 51.4%	46.9% — 58.1%
Risk-free interest rate	3.8% — 5.1%	4.8% — 5.4%
Expected dividend yield	—	—