Stock-Based Compensation (Tables)

3 Months Ended

Jun. 30, 2022

Stock-Based Compensation Recognized

The following table summarizes stock-based compensation expense by financial statement line item in the Company’s condensed consolidated statements of operations for each of the three months ended June 30, 2022 and 2021:

	For the Three Months Ended June 30,
	2022		2021
	(in thousands)
Cost of revenue	$	1,396	$	1,030
Research and development		2,798		2,109
Selling, general and administrative		9,168		9,469
	$	13,362	$	12,608

Summary of Stock Option Activity

The following table summarizes the stock option activity for the three months ended June 30, 2022:

						Weighted
				Weighted		Average		Aggregate
				Average		Remaining		Intrinsic
	Options			Exercise		Contractual		Value
	(in thousands)			Price		Term (years)		(in thousands)
Outstanding at beginning of period		595		$	178.54		5.55
Granted		2			275.58
Exercised		(18	)		84.37
Cancelled and expired		(1	)		284.46
Outstanding at end of period		578		$	181.61		5.37	$	50,807
Exercisable at end of period		503		$	168.81		4.89	$	50,099
Options vested and expected to vest at end of period		578		$	181.61		5.37	$	50,807

Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted

The weighted average grant-date fair values and weighted average assumptions used in the calculation of fair value of options granted were as follows:

	For the Three Months Ended June 30,
	2022			2021
Weighted average grant-date fair value	$	121.69		$	103.03
Valuation assumptions:
Risk-free interest rate		3.01	%		0.79	%
Expected option life (years)		5.54			4.20
Expected volatility		43.51	%		44.28	%

Restricted Stock Units

Summary of Restricted Stock Units Activity

The following table summarizes activity of restricted stock units for the three months ended June 30, 2022:

				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
	(in thousands)			(per share)
Restricted stock units at beginning of period		307		$	274.32
Granted (1)		258			266.07
Vested		(106	)		282.80
Forfeited		(3	)		272.26
Restricted stock units at end of period		456		$	267.00

(1) Includes 19,000 performance-based awards granted due to greater than 100% target vesting.

Summary of Assumptions Used To Value Awards And Estimated Grant-Date Fair Value

The table below sets forth the assumptions used to value the outstanding market-based restricted stock units and the estimated grant-date fair value:

	May 2021			May 2020
Risk-free interest rate		0.3	%		0.2	%
Expected volatility		44.8	%		35.5	%
Dividend yield		—			—
Remaining performance period (years)	2.8				2.9
Estimated fair value per share	$	292.40		$	349.28
Target performance (number of shares)		25,172			15,425