Stockholders’ Equity

Common Stock

As of June 30, 2016, the Company had 119,163,762 shares and 15,559,383 shares of Class A common stock and Class B common stock outstanding, respectively. As of December 31, 2015, the Company had 116,468,385 and 15,580,510 shares of Class A common stock and Class B common stock outstanding, respectively.

RSU Activity

A summary of RSU activity for the six months ended June 30, 2016, is as follows:



	Number of Shares		Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Unvested—December 31, 2015	6,136,702		$	211.77
Assumed RSUs from acquisition	42,157		114.12
Granted	3,146,105		116.84
Released	(1,375,535	)	191.45
Forfeited	(419,060	)	201.09
Unvested—June 30, 2016	7,530,369		$	175.87	$	1,425,122
Expected to vest as of June 30, 2016	6,574,470				$	1,244,218

The intrinsic value of RSUs released was approximately $99.2 million and $112.1 million in the three months ended June 30, 2016 and 2015, respectively, and $163.5 million and $234.5 million for the six months ended June 30, 2016 and 2015, respectively.

As of June 30, 2016, the total unrecognized compensation cost, adjusted for estimated forfeitures, related to RSUs was approximately $1.1 billion, which is expected to be recognized over the next 2.9 years.

Stock Option Activity

A summary of stock option activity for the six months ended June 30, 2016, is as follows:



	Options Outstanding				Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
	Number of Shares		Weighted-Average Exercise Price
Outstanding—December 31, 2015	2,582,517		$	102.64
Assumed options from acquisition	33,586		11.31
Granted	7,236		109.97
Exercised	(168,102	)	28.51
Forfeited or expired	(18,313	)	183.06
Outstanding—June 30, 2016	2,436,924		$	105.92	5.53	$	229,935
Options vested and expected to vest as of June 30, 2016 ⁽¹⁾	2,377,197		$	103.65	5.47	$	228,429
Options vested and exercisable as of June 30, 2016	1,805,355		$	76.17	4.76	$	213,845

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(1)	Of the options that are vested and expected to vest as of June 30, 2016, 600,476 shares have an exercise price above $196.00 and will be canceled for no payment at the effective time of the Merger. See Note 1, Description of Business and Basis of Presentation, for additional information regarding share conversion details upon consummation of the Merger.

Aggregate intrinsic value represents the difference between the Company's closing stock price of its Class A common stock and the exercise price of outstanding, in-the-money options. The Company’s closing stock price as reported on the New York Stock Exchange as of June 30, 2016 was $189.25. The total intrinsic value of options exercised was approximately $9.4 million and $31.8 million for the three months ended June 30, 2016 and 2015, respectively, and $20.1 million and $120.2 million for the six months ended June 30, 2016 and 2015, respectively.

As of June 30, 2016, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was approximately $48.3 million, which is expected to be recognized over the next 2.1 years.

Restricted Stock

The Company issued 0 and 394,094 shares of restricted Class A common stock during the three and six months ended June 30, 2016, respectively. A total of 726,194 shares of restricted stock were outstanding as of June 30, 2016, and the total unrecognized compensation cost was approximately $33.1 million, which is expected to be recognized over the next 2.4 years.

Stock-Based Compensation

The following table presents the amount of stock-based compensation related to stock-based awards to employees recognized in the Company’s condensed consolidated statements of operations during the periods presented (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Cost of revenue	$	14,773		$	11,946		$	29,242		$	21,703
Sales and marketing	27,684			23,417			56,164			42,758
Product development	71,647			59,847			141,832			109,817
General and administrative	30,839			50,281			63,809			74,322
Total stock-based compensation	144,943			145,491			291,047			248,600
Tax benefit from stock-based compensation	(305		)	(36,479		)	(669		)	(66,583		)
Total stock-based compensation, net of tax effect	$	144,638		$	109,012		$	290,378		$	182,017

The Company capitalized $9.6 million and $5.6 million for the three months ended June 30, 2016 and 2015, respectively, and $16.3 million and $10.0 million for the six months ended June 30, 2016 and 2015, respectively of stock-based compensation as website development and production costs.

The majority of the tax benefit from stock-based compensation during the three and six months ended June 30, 2016, was not recognized as a result of the valuation allowance. See Note 15, Income Taxes, for additional information.