9. EQUITY AWARD PLANS

Options to Purchase Series A Preferred Stock

Upon the closing of the IPO, all outstanding shares of Series A preferred stock options converted into common stock options at the Series A preferred stock conversion rate. The following table summarizes the Company’s Series A preferred stock option activity since December 31, 2017:


				Weighted-
		Weighted-		Average Remaining		Aggregate
	Number of	Average		Contractual Term		Intrinsic
	Shares	Exercise Price		(in years)		Value
Outstanding at December 31, 2017	4,689,576	$	0.98	5.18	$	10,539
Granted	195,312		3.60
Exercised	(360,385)		0.59
Forfeited	(351,562)		0.52
Converted to common stock options upon IPO	(4,172,941)		1.18
Outstanding at June 30, 2018	—

The assumptions that the Company used to determine the fair value of the Series A preferred stock options granted to employees and directors were as follows:


	Six Months Ended June 30,
	2018		2017
Risk-free interest rate	2.74	%	2.17	%
Expected term (in years)	6.25		6.25
Expected volatility	43.85	%	47.42	%
Expected dividend yield	—	%	—	%

Options to Purchase Common Stock

The following table summarizes the Company’s common stock option activity since December 31, 2017 under all common stock option plans:


				Weighted-
		Weighted-		Average Remaining	Aggregate
	Number of	Average		Contractual Term	Intrinsic
	Shares	Exercise Price		(in years)	Value
Outstanding at December 31, 2017	14,183,221	$	4.89	7.16	$	17,626
Granted	2,905,375		12.28
Exercised	(624,019)		4.04
Forfeited	(543,216)		6.18
Series A options converted to common stock options upon IPO	1,693,197		2.90
Series E-1 options converted to common stock options upon IPO	837,835		0.86
Outstanding at June 30, 2018	18,452,393	$	5.68	7.03	$	375,031
Vested and expected to vest at June 30, 2018	17,748,554	$	5.54	6.95	$	363,193
Options exercisable at June 30, 2018	10,612,656	$	3.81	5.71	$	235,524

Upon the closing of the IPO, options to purchase 837,835 shares of the Company’s Series E-1 Preferred Stock options converted to options to purchase 837,835 shares of common stock.

The assumptions that the Company used to determine the fair value of the common stock options granted to employees and directors were as follows:


	Six Months Ended June 30,
	2018		2017
Risk-free interest rate	2.74-2.98	%	2-2.17	%
Expected term (in years)	6.25		6.25
Expected volatility	43.62-43.85	%	46.72-47.42	%
Expected dividend yield	—	%	—	%

Restricted Stock Unit (“RSU”) Activity

The following table summarizes the Company’s RSU activity since December 31, 2017 under all common stock option plans:


		Weighted‑		Weighted‑
		Average		Average Remaining	Aggregate
	Number of	Grant Date Fair		Contractual Term	Intrinsic
	Shares	Value Per Share		(in years)	Value
Outstanding at December 31, 2017	—	$	—	—	$	—
Granted	412,521		8.22
Vested	—
Forfeited	—
Outstanding at June 30, 2018	412,521			1.58	$	10,726
RSUs vested and expected to vest at June 30, 2018	368,419			1.50	$	9,579
RSUs vested and exercisable at June 30, 2018	—					—

Stock-Based Compensation

Stock-based compensation expense was classified in the unaudited consolidated statements of operations and comprehensive loss as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Cost of subscription, license and support revenue	$	137	$	85	$	273	$	160
Cost of services revenue		73		57		130		111
Sales and marketing expense		1,228		744		2,164		1,617
Research and development expense		894		651		1,458		1,270
General and administrative expense		1,155		623		1,851		1,209
	$	3,487	$	2,160	$	5,876	$	4,367

As of June 30, 2018, total unrecognized compensation cost related to the unvested common stock-based awards was $32,200, which is expected to be recognized over weighted-average periods of 2.66 years.

As of June 30, 2018, total unrecognized compensation cost related to these performance-based RSUs was $2,823 to be amortized over a weighted-average period of approximately 3.01 years.

2018 Stock Option and Incentive Plan

On April 17, 2018, the Company’s board of directors adopted, and on April 19, 2018, the Company’s stockholders approved, the 2018 Stock Option and Incentive Plan (the “2018 Plan”), which became effective on May 2, 2018, the date immediately preceding the effectiveness of the registration statement for the Company’s IPO. The 2018 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards and dividend equivalent rights. The number of shares initially reserved for issuance under the 2018 Plan is 6,075,051, plus the shares of common stock remaining available for issuance under the Company’s 2012 Stock Option and Grant Plan (the “2012 Plan”), which will be automatically increased on January 1, 2019 and each January 1 thereafter by 5% of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31 or a lesser number of shares determined by the Company’s board of directors or the compensation committee of the board of directors. The shares of common stock underlying any awards that are forfeited, canceled, held back upon exercise or settlement of an award to satisfy the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without any issuance of stock, expire or are otherwise terminated by the Company under the 2018 Plan, the 2012 Plan and the Company’s Amended and Restated Equity Incentive Plan will be added back to the shares of common stock available for issuance under the 2018 Plan.

2018 Employee Stock Purchase Plan

On April 17, 2018, the Company’s board of directors adopted, and on April 19, 2018, the Company’s stockholders approved, the 2018 Employee Stock Purchase Plan (the “ESPP”), which became effective on May 2, 2018, the date immediately preceding the effectiveness of the registration statement for the Company’s initial public offering. A total of 1,735,729 shares of common stock were reserved for issuance under this plan. In addition, the number of shares of common stock that may be issued under the ESPP will be cumulatively increased on January 1, 2019 and each January 1 thereafter through January 1, 2028, by the lesser of (i) 1% of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31, (ii) 1,735,729 shares of common stock or (iii) such lesser number of shares as determined by the compensation committee of the board of directors.