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Stockholders' Equity and Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Stock Option Activity

The following is a summary of stock option activity for the respective periods:

 

 

 

Stock Options

 

 

 

Number of

Shares

 

 

Weighted

Average

Exercise

Price

 

 

Aggregate

Intrinsic Value

(in thousands)

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

Outstanding at December 31, 2016

 

 

12,028,622

 

 

$

14.53

 

 

$

9,903

 

 

 

8.3

 

Granted

 

 

4,139,372

 

 

$

16.03

 

 

 

 

 

 

 

 

 

Exercised

 

 

(35,352

)

 

$

4.35

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(1,623,057

)

 

$

16.02

 

 

 

 

 

 

 

 

 

Expired

 

 

(700,516

)

 

$

14.77

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2017

 

 

13,809,069

 

 

$

14.82

 

 

$

9,292

 

 

 

7.8

 

Granted

 

 

5,735,643

 

 

$

13.31

 

 

 

 

 

 

 

 

 

Exercised

 

 

(81,849

)

 

$

6.01

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(832,591

)

 

$

15.01

 

 

 

 

 

 

 

 

 

Expired

 

 

(177,897

)

 

$

14.08

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

18,452,375

 

 

$

14.39

 

 

$

8,482

 

 

 

7.5

 

Granted

 

 

3,394,030

 

 

$

14.17

 

 

 

 

 

 

 

 

 

Exercised

 

 

(3,733,401

)

 

$

12.77

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(1,351,967

)

 

$

14.02

 

 

 

 

 

 

 

 

 

Expired

 

 

(948,109

)

 

$

15.84

 

 

 

 

 

 

 

 

 

Outstanding, vested and expected to vest at December 31, 2019

 

 

15,812,928

 

 

$

14.67

 

 

$

50,994

 

 

 

7.4

 

Vested and exercisable at December 31, 2019

 

 

9,976,540

 

 

$

14.86

 

 

$

30,028

 

 

 

6.6

 
Summary of Estimated Fair Value of ESPP Purchase Rights Using a Black-Scholes Option Pricing Model Assumptions

The Company used the Black-Scholes-Merton option pricing model to estimate the fair value of ESPP purchase rights granted using the following assumptions:

 

 

 

Year Ended December 31,

 

 

2019

 

2018

 

2017

Expected life (in years)

 

0.5 to 2.0

 

0.6 to 2.1

 

n/a

Risk-free interest rate

 

1.6% - 2.4%

 

2.4% - 2.9%

 

n/a

Volatility

 

40% - 45%

 

38% - 40%

 

n/a

Dividend yield

 

—%

 

—%

 

n/a

Fair value of common stock

 

$16.98 to $17.03

 

$12.89

 

n/a
Summary of Stock-based Compensation Expense Recognized in Financial Statements

Stock-based compensation expense recognized in the consolidated financial statements is as follows:

 

 

 

Year Ended December 31,

 

(in thousands)

 

2019

 

 

2018

 

 

2017

 

Cost of revenue

 

$

3,658

 

 

$

8,931

 

 

$

2,503

 

Research and development

 

 

21,159

 

 

 

48,739

 

 

 

9,918

 

Sales and marketing

 

 

11,950

 

 

 

19,046

 

 

 

8,069

 

General and administrative

 

 

23,478

 

 

 

55,054

 

 

 

14,496

 

Stock-based compensation expense, net of amounts capitalized

 

 

60,245

 

 

 

131,770

 

 

 

34,986

 

Capitalized stock-based compensation expense

 

 

3,503

 

 

 

2,609

 

 

 

3,119

 

Stock-based compensation expense

 

$

63,748

 

 

$

134,379

 

 

$

38,105

 
Summary of Unamortized Stock-based Compensation

 

As of December 31, 2019, unamortized stock-based compensation was as follows:

 

 

 

Unrecognized

stock-based

compensation

(in thousands)

 

 

Weighted

average

vesting

period

(in years)

 

Restricted stock units (service-based)

 

$

70,735

 

 

 

2.9

 

Restricted stock units (performance-based)(1)

 

 

6,162

 

 

 

1.1

 

Stock options

 

 

34,501

 

 

 

2.2

 

Restricted stock awards

 

 

4,115

 

 

 

2.3

 

ESPP

 

 

3,649

 

 

 

1.3

 

Total unrecognized stock-based compensation

 

$

119,162

 

 

 

 

 

 

(1)

The Performance Vesting Condition occurred upon the effectiveness of the registration statement for the Company's IPO, which was September 25, 2018. The remaining unrecognized stock-based compensation expense is recognized on an accelerated basis over the weighted-average remaining requisite service period.
Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Restricted Stock Units and Restricted Stock Awards

The following is a summary of restricted stock units for the respective periods:

 

 

 

Restricted Stock Units

 

 

 

Number of

Shares

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

Unvested at December 31, 2016

 

 

8,533,775

 

 

$

12.89

 

 

 

3.3

 

Granted

 

 

2,936,437

 

 

$

11.91

 

 

 

 

 

Vested, gross of shares withheld for employee payroll taxes

 

 

(1,443,302

)

 

$

13.52

 

 

 

 

 

Forfeited/canceled, including shares withheld for employee payroll taxes

 

 

(1,188,629

)

 

$

12.71

 

 

 

 

 

Unvested at December 31, 2017

 

 

8,838,281

 

 

$

12.52

 

 

 

2.2

 

Granted

 

 

3,911,841

 

 

$

13.26

 

 

 

 

 

Vested, gross of shares withheld for employee payroll taxes

 

 

(5,883,890

)

 

$

12.75

 

 

 

 

 

Forfeited/canceled, including shares withheld for employee payroll taxes

 

 

(1,114,186

)

 

$

12.65

 

 

 

 

 

Unvested at December 31, 2018

 

 

5,752,046

 

 

$

12.77

 

 

 

1.2

 

Granted

 

 

6,270,720

 

 

$

15.23

 

 

 

 

 

Vested

 

 

(3,660,767

)

 

$

12.99

 

 

 

 

 

Forfeited/canceled

 

 

(1,386,005

)

 

$

13.53

 

 

 

 

 

Unvested at December 31, 2019

 

 

6,975,994

 

 

$

14.72

 

 

 

2.2

 
Restricted Stock Awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Restricted Stock Units and Restricted Stock Awards

The following is a summary of restricted stock awards for the respective periods:

 

 

 

Restricted Stock Awards

 

 

 

Number of

Shares

 

 

Weighted

Average

Grant-Date

Fair Value

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

Unvested at December 31, 2016

 

 

930,086

 

 

$

14.38

 

 

 

1.6

 

Vested

 

 

(449,220

)

 

$

14.38

 

 

 

 

 

Unvested at December 31, 2017

 

 

480,866

 

 

$

14.38

 

 

 

0.6

 

Vested

 

 

(480,866

)

 

$

14.38

 

 

 

 

 

Unvested at December 31, 2018

 

 

—

 

 

$

—

 

 

0.0

 

Granted

 

 

299,798

 

 

$

18.30

 

 

 

 

 

Unvested at December 31, 2019

 

 

299,798

 

 

$

18.30

 

 

 

2.3

 
At-the-Money Stock Option  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Estimated Fair Value of Stock Options on Grant Date The fair value of each at-the-money stock option was estimated on their grant dates using the following assumptions:

 

 

Year Ended December 31,

 

 

2019

 

2018

 

2017

Expected life (in years)

 

5.2 to 6.1

 

5.8 to 6.1

 

n/a

Risk-free interest rate

 

1.5% - 2.5%

 

2.7% - 3.0%

 

n/a

Volatility

 

44% - 46%

 

43% - 60%

 

n/a

Dividend yield

 

—%

 

—%

 

n/a

Fair value of common stock

 

$12.35 to $18.41

 

$12.00 to $13.65

 

n/a

 
Out-of-the-Money Stock Option  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Estimated Fair Value of Stock Options on Grant Date The fair value of each out-of-the-money stock option was estimated on their grant dates using the following assumptions

 

 

Year Ended December 31,

 

 

2019

 

2018

 

2017

Expected life (in years)

 

n/a

 

n/a

 

5.7 to 6.1

Risk-free interest rate

 

n/a

 

n/a

 

2.3% - 2.4%

Volatility

 

n/a

 

n/a

 

50%

Dividend yield

 

n/a

 

n/a

 

—%

Fair value of common stock

 

n/a

 

n/a

 

$11.84 to $12.33