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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Costs
The following table shows the stock-based compensation cost by award type for the periods indicated:
Year Ended December 31,
202220212020
(in thousands)
Equity-classified awards
Restricted stock units$32,442 $14,149 $— 
Stock options3,579 6,406 — 
Class B common stock9,321 15,200 — 
Incentive unit awards— — 4,956 
Liability-classified awards(54)6,447 5,161 
Total stock-based compensation$45,288 $42,202 $10,117 
The following table sets forth the total stock-based compensation cost included in the Company’s consolidated statements of operations and comprehensive income or capitalized to assets for the periods indicated:
Year Ended December 31,
202220212020
(in thousands)
Cost of revenue
Connected machines$288 $34 $7 
Subscriptions443 219 31 
Accessories and materials199 — — 
Total cost of revenue930 253 38 
Research and development17,713 15,782 3,332 
Sales and marketing12,603 13,814 4,794 
General and administrative9,875 8,225 1,320 
Total stock-based compensation expense$41,121 $38,074 $9,484 
Capitalized for software development costs2,321 1,607 253 
Capitalized to inventory1,846 2,521 380 
Total stock-based compensation$45,288 $42,202 $10,117 
Schedule of Restricted Stock Unit Activity
A summary of the Company’s RSU activity under the 2021 Equity Incentive Plan is as follows:
Number of
RSUs
Weighted-
Average
Grant Date
Fair Value
(per share)
Outstanding at December 31, 20214,673,831 $23.84 
Granted3,548,356 $12.82 
Vested(1,300,739)$23.02 
Forfeited/cancelled(557,426)$20.26 
Outstanding at December 31, 20226,364,022 $18.16 
A summary of the Company’s PRSU activity under the 2021 Equity Incentive Plan is as follows:

Number of
PRSUs (a)
Weighted-
Average
Grant Date
Fair Value
(per share)
Outstanding at December 31, 2021— $— 
Granted6,655,000 $23.31 
Forfeited / cancelled(360,000)$23.11 
Outstanding at December 31, 20226,295,000 $23.32 
a.Represents the maximum number of PRSUs assuming all performance targets are achieved.
A summary of the RSU equivalent activity under the 2021 Equity Incentive Plan is as follows:
Number of
RSU Equivalents
Weighted-
Average
Base Price
Aggregate
Intrinsic
Value
(in thousands)
Outstanding at December 31, 202181,077 $20.00 $1,231 
Granted1,000 $— 
Forfeited/cancelled(77,231)$20.00 
Outstanding at December 31, 20224,846 $15.87 $86 
Schedule of Stock Option Activity
A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows:
Number of
Options
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Term
(Years)
Aggregate
Intrinsic
Value
(in thousands)
Outstanding at December 31, 20213,260,357 $20.00 5.8$6,814 
Granted— 
Exercised(1,535)20.00 
Forfeited/cancelled(115,911)20.00 
Outstanding at December 31, 20223,142,911 $20.00 4.6$— 
Vested and exercisable at December 31, 20222,135,938 $20.00 4.3$— 
The Company’s options to purchase Class B common stock resulted from the Corporate Reorganization and are not part of the 2021 Equity Incentive Plan. A summary of the Company stock option activity for the options to purchase shares of Class B common stock is as follows:
Number of
Options
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Term
(Years)
Aggregate
Intrinsic
Value
(in thousands)
Outstanding at December 31, 2021434,000 $9.04 3.9$5,664 
Forfeited / Cancelled(76,000)$9.04 
Outstanding at December 31, 2022358,000 $9.04 2.8$82 
Vested at December 31, 2022— $— N/A$— 
Schedule of Weighted-Average Valuation Assumptions The weighted-average grant date fair value of options granted during the year ended December 31, 2021 was $8.79 per share and the total intrinsic value of options exercised was $0.1 million. The Company used the following weighted-average assumptions in determining the grant date fair value of options granted:
Year Ended December 31, 2021
Expected volatility51.6 %
Risk-free interest rate0.8 %
Expected term (in years)4.9
Expected dividend— %
The weighted-average grant date fair value of options to purchase Class B common stock during the year ended December 31, 2021 was $13.42 per share based on the following weighted-average assumptions:
Year Ended December 31, 2021
Expected volatility51.4 %
Risk-free interest rate0.8 %
Expected term (in years)5.5
Expected dividend— %
The weighted-average grant date fair value of options granted during the years ended December 31, 2021 and 2020 was $4.45 and $3.01 per share, respectively, and were estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions for the periods indicated:
Years Ended December 31.
2021
2020
Fair value of common unit$8.99 $6.24 
Expected life (in years)5.03.5
Expected volatility50.9 %52.5 %
Risk-free rate0.6 %0.3 %
Expected dividend yield— %— %
Schedule of Weighted-Average Valuation Assumptions
The weighted-average fair value of RSU equivalents granted under the 2021 Equity Incentive Plan during the year ended December 31, 2021 was $7.57 per share based on the following weighted-average assumptions:
Year Ended December 31, 2021
Expected volatility80.5 %
Risk-free interest rate0.4 %
Expected term (in years)1.0
Expected dividend— %
The fair value of CIUs granted during the year ended December 31, 2020 was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:
Year Ended December 31, 2020
Fair value of common unit$2.77 
Expected life (in years)3.2
Expected volatility50.0 %
Risk-free rate0.6 %
Expected dividend yield— %
The significant assumptions used in the Monte Carlo Simulation were as follows:
Fair value of common unit$2.95 
Participation Threshold$5.00 
Expected volatility51.1 %
Risk-free rate0.24 %
Timing of liquidity event
2 - 6 years
Fair value thresholds$
6.00 - 7.00
Likelihood of termination10.0 %
The significant assumptions used in the Monte Carlo Simulation for the periods indicated were as follows:
Year Ended December 31, 2020
Fair value of common units$7.40 
Expected life (in years)
0.3 - 5.0
Expected Volatility51.1 %
Risk-free rate0.2 %
Expected dividend yield— %
Likelihood of termination10.0 %
Schedule of Nonvested Share Activity
The Company’s unvested Class B common stock resulted from the Corporate Reorganization and is not part of the 2021 Equity Incentive Plan. Dividends declared on unvested Class B common stock are subject to vesting and are forfeited if the underlying stock does not vest. Activity related to Class B common stock subject to future vesting for the year ended December 31, 2022 is as follows:
Number of
Unvested Shares
Weighted-
Average
Grant Date Fair Value (per share)
Outstanding at December 31, 202110,854,859 $20.00 
Vested(5,671,643)$20.00 
Forfeited / Cancelled(528,002)$20.00 
Outstanding at December 31, 20224,655,214 $20.00 
Schedule of Expensed Liability Classified Inventive Units Activity
Liability classified incentive unit equivalents were included in accrued expenses and other current liabilities per the Company’s consolidated balance sheets and the rollforward of this liability through settlement in 2021 is as follows:
(in thousands)
Balance at December 31, 2019$360 
Stock-based compensation during year$5,161 
Purchased unit equivalents during year$181 
Balance at December 31, 2020$5,702 
Stock-based compensation during year$6,041 
Settlement or modification of awards$(11,743)
Balance at December 31, 2021$—