Stockholders' Equity and Stock-based Compensation Expense

9 Months Ended

Sep. 30, 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 166,421 PSUs during the nine months ended September 30, 2022. The majority of 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 184,313 RSUs and 278,903 non-qualified stock options (“NQs”) during the nine months ended September 30, 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 1/36th 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
Additional shares reserved	600,000
RSUs granted	(184,313)
PSUs granted	(166,421)
Options granted	(278,903)
Stock awards canceled / forfeited / expired	123,151
Options canceled / forfeited / expired	18,033
Balance, September 30, 2022	1,058,894

	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	278,903	$	40.87
Options exercised	(27,023)	$	23.09
Options canceled / forfeited / expired	(18,033)	$	39.94
Balance, September 30, 2022	521,022	$	33.57	6.76

	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	184,313	$	46.62
PSUs granted	166,421	$	45.98
Awards released	(307,485)	$	28.39
Stock awards canceled / forfeited / expired	(118,710)	$	41.22
Balance, September 30, 2022	957,443	$	40.12

Stock-based Compensation Expense

Stock-based compensation expense by department recognized during the three and nine months ended September 30, 2022 and 2021 was as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cost of revenue	$	471	$	330	$	1,430	$	908
Sales and marketing	1,641		711		3,855		1,954
Research and development	466		1,020		2,513		1,628
General and administrative	1,667		1,681		5,223		4,017
Total stock-based compensation expense	$	4,245	$	3,742	$	13,021	$	8,507