XML 25 R15.htm IDEA: XBRL DOCUMENT v3.22.0.1
Stock-based Compensation
 3 Months Ended
Jan. 01, 2022
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
2018 Equity Incentive Plan

In July 2018, the Board adopted the 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan became effective in connection with the Company's initial public offering ("IPO"). The number of shares reserved for issuance under the 2018 Plan increases automatically on January 1 of each year beginning in 2019 and continuing through 2028 by a number of shares of common stock equal to the lesser of (x) 5% of the total outstanding shares of the Company’s common stock and common stock equivalents as of the immediately preceding December 31 (rounded to the nearest whole share) and (y) a number of shares determined by the Company's the Board.

Stock options

Pursuant to the 2018 Plan, the Company issues stock options to employees and directors. The fair value of the stock options is based on the Company’s closing stock price on the trading day immediately prior to the date of grant. The option price, number of shares and grant date are determined at the discretion of the Board. For so long as the option holder performs services for the Company, the options generally vest over 48 months, on a monthly or quarterly basis, with certain options subject to an initial annual cliff vest, and are exercisable for a period not to exceed ten years from the date of grant.
The summary of the Company’s stock option activity is as follows:



Number of
Options		Weighted-Average Exercise PriceWeighted-Average Remaining Contractual TermAggregate Intrinsic Value
(In years)(In thousands)
Outstanding at October 2, 202114,545,239 $12.86 5.1$282,141 
Granted — — 
Exercised (1,076,077)12.29 
Forfeited (12,043)14.96 
Outstanding at January 1, 202213,457,119 $12.91 5.0$227,339 
At January 1, 2022
Options exercisable 12,395,258 $12.79 4.8$210,785 
Options vested and expected to vest 13,365,802 $12.90 5.0$225,905 

As of January 1, 2022, and October 2, 2021, the Company had $4.4 million and $6.2 million, respectively, of unrecognized stock-based compensation expense related to stock options, which are expected to be recognized over weighted-average periods of 0.8 and 0.9 years, respectively.

Restricted stock units

Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. The fair value of RSUs is based on the Company's closing stock price on the trading day immediately preceding the date of grant. RSUs vest quarterly over the service period, which is generally four years, with certain awards subject to an initial annual cliff vest. The summary of the Company’s RSU activity is as follows:
Number of
Units		Weighted-Average Grant Date Fair ValueAggregate Intrinsic Value
(In thousands)
Outstanding at October 2, 20219,283,525 $12.64 $299,487 
Granted 2,128,485 33.94 
Released(954,296)11.85 
Forfeited (184,013)15.00 
Outstanding at January 1, 202210,273,701 $17.08 $306,156 
At January 1, 2022
Units expected to vest8,736,544 $16.76 $260,349 

As of January 1, 2022, and October 2, 2021, the Company had $134.5 million and $90.0 million of unrecognized stock-based compensation expense related to RSUs, which are expected to be recognized over weighted-average periods of 2.9 and 2.5 years, respectively.

Performance stock units ("PSU")

Pursuant to the 2018 Plan, the Company issues PSUs that vest on the satisfaction of service and performance conditions. The Company estimates the fair value of PSUs on the grant date and recognizes compensation expense in the period it becomes probable that performance conditions will be achieved. On a quarterly basis, the Company re-evaluates the assumption of the probability that performance conditions will be satisfied and revises
its estimates as appropriate as new or updated information becomes available. The summary of the Company’s PSU activity is as follows:
Number of
Units		Weighted-Average Grant Date Fair ValueAggregate Intrinsic Value
(In thousands)
Outstanding at October 2, 2021158,521 $22.81 $5,114 
Granted 252,296 29.71 
Vested — — 
Forfeited — — 
Outstanding at January 1, 2022410,817 $27.05 $12,242 

As of January 1, 2022, and October 2, 2021, the Company had $10.3 million and $3.6 million of unrecognized stock-based compensation expense related to PSUs, which are expected to be recognized over weighted-average periods of 1.4 and 1.2 years, respectively.

    Stock-based compensation

Total stock-based compensation expense by functional category was as follows:
Three Months Ended
January 1,
2022		January 2,
2021
(In thousands)
Cost of revenue$328 $214 
Research and development6,738 6,258 
Sales and marketing3,647 3,408 
General and administrative6,746 4,964 
Total stock-based compensation expense$17,459 $14,844