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Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2020

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

The following is a summary of stock option activity for the current year period:

	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, 2019		15,812,928		$	14.67	$	50,994		7.4
Granted		2,312,230		$	21.15
Exercised		(1,920,482	)	$	13.34
Forfeited		(112,088	)	$	13.43
Expired		(23,376	)	$	14.73
Outstanding, vested and expected to vest at June 30, 2020		16,069,212		$	15.77	$	124,927		7.4
Vested and exercisable at June 30, 2020		9,760,821		$	15.15	$	81,850		6.4

Summary of Estimated Fair Value of Stock Options Granted Using Weighted-average Assumptions

The Company used the Black-Scholes-Merton option pricing model to estimate the fair value of stock options granted using the following weighted-average assumptions:

	Three Months Ended June 30,		Six Months Ended June 30,
	2020	2019	2020	2019
Expected life (in years)	6.2	6.0	5.8	5.9
Risk-free interest rate	0.5%	2.2%	1.4%	2.5%
Volatility	52%	46%	48%	46%
Dividend yield	—%	—%	—%	—%
Fair value of common stock	$19.24	$16.48	$21.15	$12.73

Summary of Estimated Fair Value of ESPP Purchase Rights Granted Using Weighted-average Assumptions

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

	Three Months Ended June 30,		Six Months Ended June 30,
	2020	2019	2020	2019
Expected life (in years)	1.3	1.2	1.3	1.2
Risk-free interest rate	0.2%	2.3%	0.2%	2.3%
Volatility	58%	43%	58%	43%
Dividend yield	—%	—%	—%	—%
Fair value of common stock	$19.81	$16.98	$19.81	$16.98

Summary of Stock-based Compensation Expense Recognized in Financial Statements

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

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Cost of revenue	$	1,047	$	991	$	2,007	$	2,087
Research and development		7,496		5,629		13,953		10,395
Sales and marketing		4,841		3,016		9,184		5,796
General and administrative		6,087		5,518		11,829		11,987
Stock-based compensation expense, net of amounts capitalized		19,471		15,154		36,973		30,265
Capitalized stock-based compensation expense		710		1,078		1,486		2,031
Stock-based compensation expense	$	20,181	$	16,232	$	38,459	$	32,296

Summary of Unamortized Stock-based Compensation

As of June 30, 2020, unamortized stock-based compensation was as follows:

	Unrecognized stock-based compensation (in thousands)		Weighted average vesting period (in years)
Restricted stock units (service-based)	$	116,445		2.7
Restricted stock units (performance-based)⁽¹⁾		2,672		1.0
Stock options		44,198		2.4
Restricted stock awards		3,204		1.8
ESPP		3,667		1.3
Total unrecognized stock-based compensation	$	170,186

(1)

Unrecognized stock-based compensation expense pertains to performance-based restricted stock units (“Performance RSUs”) that were granted between second quarter of 2015 through the date of the Company’s initial public offering (“IPO”). Such performance RSUs vest upon the satisfaction of both a service condition and a Performance Vesting Condition, both of which must be met in order for the awards to vest and issue. The Performance Vesting Condition was met upon the occurrence of the Company’s IPO. The remaining unamortized stock-based compensation is recognized on an accelerated basis over the remaining weighted-average requisite service period as employee services are provided.

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 current year period:

	Restricted Stock Units
	Number of Shares			Weighted Average Grant-Date Fair Value		Weighted Average Remaining Contractual Term (in years)
Unvested at December 31, 2019		6,975,994		$	14.72		2.2
Granted		3,999,194		$	18.21
Vested		(1,995,721	)	$	14.32
Forfeited/cancelled		(438,509	)	$	15.58
Unvested at June 30, 2020		8,540,958		$	16.40		2.4

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 current year period:

	Restricted Stock Awards
	Number of Shares			Weighted Average Grant-Date Fair Value		Weighted Average Remaining Contractual Term (in years)
Unvested at December 31, 2019		299,798		$	18.30		2.3
Vested		(99,933	)
Unvested at June 30, 2020		199,865		$	18.30		1.8