Stockholders' Equity and Stock-based Compensation Expense

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Stockholders' Equity and Stock-based Compensation Expense

Stockholders’ Equity and Stock-based Compensation Expense

The Company’s equity incentive plans are broad-based, long-term programs intended to attract and retain talented employees and align stockholder and employee interests. The 2019 Equity Incentive Plan (the "2019 Plan") provides for the grant of incentive stock options, non-statutory stock options, restricted stock units (“RSUs”), performance stock units ("PSUs"), and other stock or cash awards.

The Company’s Board of Directors granted the Company's executive officers, senior management and certain employees 90,658 PSUs during the three months ended March 31, 2022. These PSUs vest subject to the Company’s achievement of certain operational goals for the 2022 fiscal year related to product and commercial milestones. In addition, there is a service requirement related to half of the granted quantity that requires the grant recipient to provide one year of service subsequent to the milestone achievement date.

The Company’s Board of Directors also granted its executive officers and senior management 95,761 RSUs and 207,062 non-qualified stock options (“NQs”) during the three months ended March 31, 2022. The RSUs and NQs vest over four years with one-fourth vesting on the first anniversary of the vesting commencement date of January 1, 2022 and 1/36 of the remaining underlying shares vest each month thereafter.

Activity under the Company's equity incentive plans is summarized as follows:

	Shares Available for Grant
Balance, December 31, 2021	947,347
RSUs granted	(95,761)
PSUs granted	(90,658)
Options granted	(207,062)
Stock awards canceled / forfeited / expired	22,568
Options canceled / forfeited / expired	2,072
Balance, March 31, 2022	578,506

	Options Outstanding
	Number of Stock Options Outstanding	Weighted- Average Exercise Price		Weighted Average Remaining Term  (in Years)
Balance, December 31, 2021	287,175	$	25.89	4.92
Options granted	207,062	$	35.34
Options exercised	(7,459)	$	20.24
Options canceled / forfeited / expired	(2,072)	$	32.87
Balance, March 31, 2022	484,706	$	29.99	6.88

	Stock Awards Outstanding
	Number of Awards Outstanding	Weighted Average Grant Date Fair Value per Share
Balance, December 31, 2021	1,032,904	$	35.00
RSUs granted	95,761	$	39.53
PSUs granted	90,658	$	34.16
Awards released	(190,967)	$	28.04
Stock awards canceled / forfeited / expired	(21,081)	$	40.00
Balance, March 31, 2022	1,007,275	$	36.57

Stock-based Compensation Expense

Stock-based compensation expense by department recognized during the three months ended March 31, 2022 and 2021 was as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
Cost of revenue	$	459	$	144
Sales and marketing	576		721
Research and development	980		301
General and administrative	2,028		680
Total stock-based compensation expense	$	4,043	$	1,846