Stock-based Awards

9 Months Ended

Sep. 30, 2014

9.Stock‑based Awards

Stock Options

A summary of the Company’s stock option activity under the 2005, 2008 and 2014 plans for the nine months ended September 30, 2014 is as follows (unaudited):


				Weighted-
		Weighted-		Average
		Average		Remaining
	Number of	Exercise		Contract Life
	Options	Price		(in years)
Outstanding at December 31, 2013	18,363,144	$	4.89	7.17
Granted	10,746,379	$	15.84
Exercised	(1,878,681)	$	1.07
Canceled/forfeited	(802,368)	$	9.38
Outstanding at September 30, 2014	26,428,474	$	9.48	7.75
Vested and expected to vest at September 30, 2014	25,379,923	$	9.43	7.69
Exercisable at September 30, 2014	18,469,792	$	8.88	7.16

At September 30, 2014, total remaining stock‑based compensation expense for unvested stock option awards was $67.6 million, which is expected to be recognized over a weighted‑average period of 2.9 years.

Restricted Stock Units and Awards

Activity in connection with the restricted stock units is as follows for the nine months ended September 30, 2014:


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
Non-vested — December 31, 2013	—	$	—
Granted	747,112	$	10.52
Vested	(3,951)	$	23.47
Canceled/forfeited	(34,370)	$	10.31
Non-vested — September 30, 2014	708,791	$	10.25

At September 30, 2014, total remaining stock‑based compensation expense for non-vested restricted stock units amounted to $5.3 million, which is expected to be recognized over a weighted-average period of 2.6 years.

In addition, previously issued restricted stock awards of 11,111 shares with a weighted average grant date fair value of $3.56 were non-vested at September 30, 2014.

Stock‑based Compensation Cost

The Company recorded stock‑based compensation cost relating to stock options and restricted stock awards in the following categories on the accompanying consolidated statements of comprehensive loss (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013

Cost of revenue	$	134	$	28	$	297	$	81
Sales and marketing		1,413		591		3,757		1,696
Technology and development		2,069		362		3,933		1,143
General and administrative		5,824		987		12,991		2,664
Total stock-based compensation expense		9,440		1,968		20,978		5,584
Amount capitalized to internal software use		331		112		947		366
Total stock-based compensation cost	$	9,771	$	2,080	$	21,925	$	5,950

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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