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STOCKHOLDERS' EQUITY
 3 Months Ended
Mar. 31, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity STOCKHOLDERS’ EQUITY
The following table presents the number of shares authorized and issued as of the dates indicated:
March 31, 2020December 31, 2019
Shares AuthorizedShares Issued Shares AuthorizedShares Issued
Stockholders’ equity:  
Common stock, $0.000001 par value
200,000,000  71,887,846  200,000,000  71,185,468  
Undesignated preferred stock10,000,000  —  10,000,000  —  
Stock Repurchase Program
In July 2017, the Company’s board of directors authorized a stock repurchase program under which the Company was authorized to repurchase up to $200.0 million of its outstanding common stock. The Company's board of directors authorized the Company to repurchase up to an additional $250.0 million of its outstanding common stock in each of November 2018, February 2019 and January 2020, bringing the total amount of authorized repurchases to $950.0 million as of March 31, 2020, $269.0 million of which remains available. The Company may purchase shares at management’s discretion in the open market, in privately negotiated transactions, in transactions structured through investment banking institutions, or a combination of the foregoing.
The Company did not repurchase any shares during the three months ended March 31, 2020. Pursuant to the restructuring plan announced on April 9, 2020 (the "Restructuring Plan"), the Company has deferred share repurchases under the stock repurchase program indefinitely. See Note 18, "Subsequent Events" for further details on the Restructuring Plan.
During the three months ended March 31, 2019, the Company repurchased on the open market and retired 2,847,226 shares for an aggregate purchase price of $102.1 million. The Company had no treasury stock balance as of March 31, 2019.
Equity Incentive Plans
The Company has outstanding awards under three equity incentive plans: the Amended and Restated 2005 Equity Incentive Plan (the "2005 Plan"), the 2011 Equity Incentive Plan (the "2011 Plan") and the 2012 Equity Incentive Plan, as amended (the "2012 Plan"). In July 2011, the Company adopted the 2011 Plan, terminated the 2005 Plan and provided that no further stock awards were to be granted under the 2005 Plan. All outstanding stock awards under the 2005 Plan continue to be governed by their existing terms. Upon the effectiveness of the underwriting agreement in connection with the Company’s initial public offering ("IPO"), the Company terminated the 2011 Plan and all shares that were reserved under the 2011 Plan but not issued were assumed by the 2012 Plan. No further awards have been or will be granted pursuant to the 2011 Plan. All outstanding stock awards under the 2011 Plan continue to be governed by their existing terms. Under the 2012 Plan, the Company has the ability to issue incentive stock options, non-statutory stock options, stock appreciation rights, RSUs, restricted stock awards, performance units and performance shares. Additionally, the 2012 Plan provides for the grant of performance cash awards to employees, directors and consultants.
Stock Options
Stock options granted under the 2012 Plan are granted at a price per share not less than the fair value of a share of the Company’s common stock on the grant date. Options granted to date generally vest over a three- or four-year period, on one of four schedules: (a) 25% vesting at the end of one year and the remaining shares vesting monthly thereafter; (b) 10% vesting over the first year, 20% vesting over the second year, 30% vesting over the third year and 40% vesting over the fourth year; (c) ratably on a monthly basis; or (d) 35% vesting over the first year, 40% vesting over the second year and 25% vesting over the third year. Options granted are generally exercisable for contractual terms of up to 10 years. The Company issues new shares when stock options are exercised.
A summary of stock option activity for the three months ended March 31, 2020 is as follows:
Number of SharesWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (in years)Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 20196,210,385  $25.10  4.3$75,805  
Granted86,500  28.94  
Exercised(200,847) 12.87   
Canceled(77,311) 46.89  
Outstanding at March 31, 20206,018,727  $25.29  4.3$18,213  
Options vested and exercisable at March 31, 20205,167,499  $23.33  3.7$18,213  
Aggregate intrinsic value represents the difference between the closing price of the Company’s common stock as quoted on the New York Stock Exchange on a given date and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was approximately $4.2 million and $0.8 million for the three months ended March 31, 2020 and 2019, respectively.
The weighted-average grant date fair value of options granted was $11.13 and $17.64 per share for the three months ended March 31, 2020 and 2019, respectively.
As of March 31, 2020, total unrecognized compensation costs related to nonvested stock options were approximately $13.9 million, which the Company expects to recognize over a weighted-average time period of 2.4 years.
RSUs
RSUs generally vest over a four-year period, on one of three schedules: (a) 25% vesting at the end of one year and the remaining vesting quarterly or annually thereafter; (b) 10% vesting over the first year, 20% vesting over the second year, 30% vesting over the third year and 40% vesting over the fourth year; or (c) ratably on a quarterly basis.
RSUs also include PRSUs, which are subject to both a time-based vesting schedule and either (a) a market condition or (b) the achievement of performance goals. For PRSUs subject to a market condition, the Company recognizes expense from the date of grant. For PRSUs subject to performance goals, the Company recognizes expense when it is probable that the performance condition will be achieved.
For PRSUs subject to a market condition, the shares underlying each PRSU award will be eligible to vest only if the average closing price of the Company's common stock equals or exceeds $45.3125 over any 60-day trading period during the four years following the grant date of February 7, 2019. If this market condition is met, the shares underlying each PRSU award will vest quarterly over four years from the grant date ("Time-Based Vesting Schedule"). Any shares subject to the PRSUs that have met the Time-Based Vesting Schedule at the time the market condition is achieved will fully vest as of such date; thereafter, any remaining nonvested shares subject to the PRSUs will continue vesting solely according to the Time-Based Vesting Schedule, subject to the applicable employee's continued service as of each such vesting date.
For PRSUs subject to performance goals, a percentage of the target number of shares, ranging from zero to 200%, will become eligible to vest based on the Company's level of achievement of certain financial targets for the year ending December 31, 2020, and a four-year, quarterly vesting schedule ("2020 Time-Based Vesting Schedule"). The shares subject to this PRSU become eligible to vest once the achievement against the financial targets is known, which will be no later than March 15, 2021. On the quarterly vest date immediately following such determination, the eligible shares, if any, will vest to the extent that the employee has met the 2020 Time-Based Vesting Schedule as of such date. Thereafter, the eligible shares will continue to vest in accordance with the 2020 Time-Based Vesting Schedule, subject to the applicable employee's continued service as of each such vesting date. As of March 31, 2020, the Company determined that it was not probable that these PRSUs will vest and, as a result, did not record any compensation cost during the three months ended March 31, 2020.
As the PRSU activity during the three months ended March 31, 2020 was not material, it is presented together with the RSU activity in the table below. A summary of RSU and PRSU activity for the three months ended March 31, 2020 is as follows:
Number of SharesWeighted-Average Grant Date Fair Value
Nonvested at December 31, 20197,625,584  $36.51  
Granted2,690,821  35.58  
Vested(1)
(840,805) 36.50  
Canceled(448,618) 36.54  
Nonvested at March 31, 20209,026,982  $36.23  
(1) Includes 339,274 shares that vested but were not issued due to net share settlement for payment of employee taxes.
The aggregate fair value as of the vest date of RSUs that vested during the three months ended March 31, 2020 and 2019 was $29.1 million and $31.8 million, respectively. As of March 31, 2020, the Company had approximately $303.9 million of unrecognized stock-based compensation expense related to RSUs, which it expects to recognize over the remaining weighted-average vesting period of approximately 2.9 years.
Employee Stock Purchase Plan
The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations, during designated offering periods. At the end of each offering period, employees are able to purchase shares at 85% of the fair market value of the Company’s common stock on the last day of the offering period, based on the closing sales price of the Company's common stock as quoted on the New York Stock Exchange on such date.
There were no shares purchased by employees under the ESPP in the three months ended March 31, 2020 and 2019. The Company recognized stock-based compensation expense related to the ESPP of $0.8 million and $0.7 million in the three months ended March 31, 2020 and 2019, respectively.
Stock-Based Compensation
The following table summarizes the effects of stock-based compensation expense related to stock-based awards in the condensed consolidated statements of operations during the periods presented (in thousands):
Three Months Ended March 31,
20202019
Cost of revenue$1,043  $1,244  
Sales and marketing7,696  7,687  
Product development17,755  16,075  
General and administrative5,256  6,313  
Total stock-based compensation recorded to (loss) income before income taxes31,750  31,319  
Benefit from income taxes(12,557) (8,113) 
Total stock-based compensation recorded to net (loss) income$19,193  $23,206  
The Company capitalized $2.3 million and $1.8 million of stock-based compensation expense as website development costs in the three months ended March 31, 2020 and 2019, respectively.