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Stock-Based Awards
3 Months Ended
Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Awards

Note 5. Stock-Based Awards

Stock Options

The following table summarizes stock options activity for the three months ended March 31, 2019 (in thousands):

 

 

Number of

Shares

 

Outstanding at December 31, 2018

 

 

3,603

 

Granted

 

 

57

 

Exercised

 

 

(28

)

Forfeited or expired

 

 

(178

)

Outstanding at March 31, 2019

 

 

3,454

 

Vested and exercisable at March 31, 2019

 

 

1,066

 

 

 

Restricted Stock Units

The following table summarizes activity for restricted stock units, or RSUs, and RSUs with performance conditions, or PSUs, for the three months ended March 31, 2019 (in thousands):

 

 

 

 

Number of Shares

 

 

 

 

RSUs

 

 

PSUs

 

Outstanding at December 31, 2018

 

 

 

32

 

 

 

 

Granted

 

 

 

3

 

 

 

242

 

Vested

 

 

 

 

 

 

 

Forfeited

 

 

 

 

 

 

 

Outstanding at March 31, 2019

 

 

 

35

 

 

 

242

 

PSUs granted during the three months ended March 31, 2019 were primarily related to 234,000 PSUs associated with a PSU bonus program that replaces what has historically been our annual cash-bonus program for our senior executives and other bonus-eligible employees. The number of PSUs that ultimately vest will depend on the extent to which we achieve certain 2019 financial metrics: 134,000 PSUs would vest at 100% achievement of such metrics, and 234,000 at 175% achievement. We record compensation expense each period based on our estimate of the most probable number of PSUs that will vest and recognize such expense over the related service period. During the three months ended March 31, 2019, stock-based compensation expense recognized for the PSUs was not material.

Share-Based Compensation Expense

The following table presents the effects of stock-based compensation in our condensed consolidated statements of operations during the periods presented (in thousands):

 

 

Three Months Ended March 31,

 

 

2019

 

 

2018

 

Cost of revenue

$

144

 

 

$

83

 

Research and development expense

 

1,071

 

 

 

759

 

Sales and marketing expense

 

1,290

 

 

 

757

 

General and administrative expense

 

972

 

 

 

466

 

Total stock-based compensation expense

$

3,477

 

 

$

2,065