Employee Benefit Plans

Stock-based compensation

Stock-based compensation is classified in the condensed consolidated statements of income in the same expense line items as cash compensation. Amounts recorded as expense in the condensed consolidated statements of income were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Cost of revenues	$	339	$	1,824	$	2,666	$	5,571
Technology and development	381		510		1,542		1,721
Sales and marketing	449		702		2,199		2,111
General and administrative	4,748		4,141		8,392		8,585
Total	$	5,917	$	7,177	$	14,799	$	17,988

(a) Employee Stock Option Plan

In May 2010, the Company adopted the 2010 Equity Incentive Plan ("2010 Plan"). Under the 2010 Plan, the Company can grant share-based awards to all employees, including executive officers, outside consultants and non-employee directors. Options under 2010 Plan generally has a term of 10 years and vest over 4 years with 25% vesting after one year of service and monthly vesting over the remaining period. As of September 30, 2018, the 2010 Plan has a total of 5.5 million common stock shares available for issuance.

The following table summarizes the weighted-average fair value of stock options granted:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Stock options granted (in thousands)	—		63		—		608
Weighted-average fair value at date of grant	$	—	$	23.27	$	—	$	26.36

Stock option activity for the nine months ended September 30, 2018 was as follows (shares in thousands):



	Shares		Weighted-average exercise price		Remaining contractual term (in years)	Aggregate intrinsic value (in thousands)
Outstanding at December 31, 2017	2,478		$	47.24	7.22	$	42,324
Granted	—		—
Exercised	(54	)	26.10
Forfeited and cancelled	(195	)	60.71
Outstanding as of September 30, 2018	2,229		$	46.56	5.36	$	12,383
Vested and expected to vest at September 30, 2018	2,191		$	46.34	5.31	$	12,387
Exercisable at September 30, 2018	1,783		$	43.29	4.76	$	12,386

As of September 30, 2018, there was $9.2 million of total unrecognized stock-based compensation expense associated with stock options which will be recognized over a weighted-average period of approximately 2 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures.

(b) Restricted Stock Units

The Company grants restricted stock units ("RSU") to certain employees, officers, and directors under the 2010 Plan. Restricted stock units vest upon performance-based, market-based, or service-based criteria.

In the third quarter of 2018 and 2017 the Company granted no performance-based restricted stock units. During the nine months ended September 30, 2018, the company granted no performance-based restricted stock units, and in the nine months ended September 30, 2017, the Company granted a total of 343,000 of performance-based restricted stock units to certain executive officers. Performance-based restricted stock units are typically granted such that they vest upon the achievement of certain revenue growth rates and other financial metrics during a specified performance period for which participants have the ability to receive up to 200% of the target number of shares originally granted, depending on terms of the grant agreement.

Stock-based compensation expense related to restricted stock units was $1.1 million and $4.1 million for the three months ended September 30, 2018 and 2017, respectively; and $4.1 million and $9.1 million for the nine months ended September 30, 2018 and 2017, respectively. Total unrecorded stock-based compensation expense at September 30, 2018 associated with restricted stock units was estimated at $12.2 million, which is expected to be recognized over a weighted-average period of approximately 1 year.

The following table summarizes information about restricted stock units issued to officers, directors and employees under the 2010 Plan (shares in thousands):



	(Shares in thousands)				Weighted-average grant date fair value
	Service- based RSUs		Performance- based RSUs		Service- based RSUs		Performance- based RSUs
Unvested at December 31, 2017	304		725		$	61.61	$	60.21
Granted	—		—		—		—
Vested	(73	)	(221	)	58.67		58.45
Forfeited and cancelled	(31	)	(304	)	63.27		61.65
Unvested at September 30, 2018	200		200		$	62.42	$	59.98