Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Stock-Based Compensation

Stock-Based Compensation

Note 6 — Stock-Based Compensation

ESPP

The Company previously offered an ESPP until its expiration in February 2021.

2021 PSU Awards

During March 2021, the Company granted PSUs under the 2020 Plan to certain executives in which the number of shares ultimately received depends on the Company’s achievement of two performance goals for fiscal year 2021 and a rTSR modifier based on the Company’s rTSR for fiscal years 2021, 2022, and 2023 compared to a peer group. The aggregate target number of shares subject to these awards is 0.8 million. The awards were valued on the grant date using a Monte Carlo simulation for the rTSR modifier and using the Company’s closing stock price for the performance metrics for an aggregate grant date fair value of $1.2 million. The number of shares ultimately received related to these awards will range from 0% to 173% of the participant’s target award and will vest on the third anniversary of the grant date. The Company’s expense will be recognized over the service period and adjusted based on estimated achievement of the performance goals.

Additionally, certain of the Company’s senior leaders elected to receive a portion of their annual cash corporate incentive plan in PSUs. The Company granted the PSUs under the 2020 Plan during March 2021. The number of shares ultimately received depends on the Company’s achievement of specified revenue, Adjusted EBITDA, and free cash flow performance goals for fiscal year 2021. The aggregate target number of shares subject to these awards is 0.4 million. The awards were valued using the Company’s closing stock price on the grant date and had an aggregate grant date fair value of $0.6 million. The number of shares ultimately received related to these awards ranges from 0% to 200% of the participant’s target award and will vest on the first anniversary of the grant date. The Company’s expense will be recognized over the service period and adjusted based on estimated achievement of the performance targets.

Stock-Based Compensation Expense

The following table presents stock-based compensation expense as allocated within the Company’s Consolidated Statements of Operations:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Cost of revenue	$	245	$	110	$	663	$	245
Sales and marketing		141		200		500		1,021
Research and development		2		14		34		33
General and administrative		712		942		3,452		2,287
Total stock-based compensation	$	1,100	$	1,266	$	4,649	$	3,586

The above table does not include capitalized stock-based compensation related to internal-use software that was insignificant for the three and nine months ended September 30, 2021 and 2020.

Stock Awards

A summary of the Company’s stock option activity and related information was as follows:

					Weighted-
			Weighted-		Average
			Average		Remaining
			Exercise		Contractual
	Shares		Price		Life (Years)		Intrinsic Value
	(in thousands)						(in thousands)
Outstanding as of December 31, 2020		3,030	$	2.09			$	1,372
Exercised		(275)	$	1.18
Expired and/or forfeited		(808)	$	2.02
Outstanding as of September 30, 2021		1,947	$	2.25		6.19	$	283
Exercisable as of September 30, 2021		1,843	$	2.31		6.10	$	245

As of September 30, 2021, there was $0.1 million of unrecognized compensation expense related to previously granted stock options, which is expected to be recognized over a weighted-average period of 1.1 years.

A summary of the Company’s RSU and PSU activity and related information was as follows:

			Weighted-
			Average Grant
	Units		Date Fair Value
	(in thousands)
Non-vested as of December 31, 2020		7,015	$	1.55
Granted		4,791	$	1.52
Vested(1)		(1,882)	$	1.65
Forfeited		(1,439)	$	1.61
Non-vested as of September 30, 2021		8,485	$	1.50

(1) 1,758 shares of common stock were issued for RSUs and PSUs vested and the remaining 124 shares were withheld for taxes.

As of September 30, 2021, there was $8.0 million of unrecognized compensation expense related to previously granted RSUs and PSUs, which is expected to be recognized over a weighted-average period of 1.9 years.

Potential shares of common stock that are not included in the determination of diluted net loss per share because they are anti-dilutive for the periods presented consist of stock options and unvested RSUs and PSUs. The Company excluded from diluted earnings per share the weighted-average common share equivalents related to 1.5 million and 3.2

million shares for the three months ended September 30, 2021 and 2020, respectively, and 1.3 million and 4.1 million shares for the nine months ended September 30, 2021 and 2020, respectively, because their effect would have been anti-dilutive.