Stock-based Compensation Plans and Awards

3 Months Ended

Mar. 31, 2017

Stock-based Compensation Plans and Awards

Stock-Based Compensation Plans and Awards

9. Stock-based Compensation Plans and Awards

Stock-based Compensation Expense

Stock-based compensation expense related to all employee and non-employee stock-based awards recognized in the condensed consolidated statements of operations was as follows (in thousands):

	Three months ended March 31,
	2017		2016
Service costs	$	155	$	262
Sales and marketing		201		208
Product development		396		399
General and administrative		1,326		1,050
Total stock-based compensation	$	2,078	$	1,919

Award Activity

Stock Options

Stock option activity is as follows (in thousands):

	Number of
	options
	outstanding
Outstanding at December 31, 2016	2,856
Options granted	—
Options exercised	(52)
Options forfeited or cancelled	(50)
Outstanding at March 31, 2017	2,754

Restricted Stock Units

Restricted stock unit activity is as follows (in thousands):

	Number of
	shares
Unvested at December 31, 2016	1,941
Granted	1,260
Vested	(560)
Forfeited	(47)
Unvested at March 31, 2017	2,594

Employee Stock Purchase Plan

In May 2011, we commenced our first offering under the Employee Stock Purchase Plan (“ESPP”), which allows eligible employees to purchase, through payroll deductions, a limited amount of our common stock at a 15% discount to the lower of market price as of the beginning or ending of each six-month purchase period. Participants can authorize payroll deductions for amounts up to the lesser of 15% of their qualifying wages or the statutory limit under the U.S. Internal Revenue Code. The ESPP currently provides for a  12-month offering period which is comprised of two consecutive six-month purchase periods, one from May to November and the other from November to May. A maximum of 500 shares of common stock may be purchased by each participant during each six-month purchase period. The fair value of the ESPP options granted is determined using a Black-Scholes-Merton model and is amortized over the remaining life of the 12-month offering period of the ESPP. The Black-Scholes-Merton model included an assumption for expected volatility of between 32% and 48% for each of the two purchase periods in the current offering period. The expense recognized in relation to the ESPP was not material for each of the three month periods ended March 31, 2017 and 2016. Approximately 1.7 million shares of common stock remained authorized for issuance under the ESPP at March 31, 2017.