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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
Options
The following table summarizes option activity for the nine months ended September 30, 2016:
 
Number of
Options
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
(in years)
 
Aggregate
Intrinsic
Value
(in thousands)
Outstanding at January 1, 2016
10,711,324

 
$
6.16

 
 
 
 
Granted
2,022,999

 
$
5.98

 
 
 
 
Exercised
(420,846
)
 
$
0.59

 
 
 
 
Forfeited
(234,919
)
 
$
9.47

 
 
 
 
Expired
(81,007
)
 
$
12.59

 
 
 
 
Outstanding at September 30, 2016
11,997,551

 
$
6.20

 
7.57
 
$
25,101

Exercisable at September 30, 2016
6,629,040

 
$
4.51

 
6.74
 
$
21,610

Vested or expected to vest as of September 30, 2016
11,721,660

 
$
6.16

 
7.57
 
$
25,063

Total compensation cost related to unvested option awards not yet recognized as of September 30, 2016 was $19.3 million and will be recognized over a weighted-average period of approximately 2.47 years. The aggregate intrinsic value of employee options exercised during the three months ended September 30, 2016 and 2015 was $0.9 million and $1.8 million, respectively. The aggregate intrinsic value of employee options exercised during the nine months ended September 30, 2016 and 2015 was $2.4 million and $9.7 million, respectively.
Restricted Stock Units
The following table summarizes activity in our RSUs and PRSUs during the nine months ended September 30, 2016:
 
Number of RSUs
 
Weighted-Average Grant Date Fair Value
Unvested at January 1, 2016
1,853,452

 
$
12.85

RSUs and PRSUs granted
2,991,803

 
$
6.62

RSUs vested
(292,595
)
 
$
14.88

RSUs forfeited/expired
(327,180
)
 
$
10.52

Unvested at September 30, 2016
4,225,480

 
$
8.48

Expected to vest after September 30, 2016
3,438,805

 
$
9.17


During the nine months ended September 30, 2016, in addition to granting RSUs, we also granted 194,207 PRSUs with a grant date fair value of $5.95. For each of the three annual performance periods, one-third (1/3) of the total PRSUs may vest depending upon achievement of performance-based targets. Participants have the ability to earn up to 150% of the baseline award based on certain levels of achievement in excess of the relevant target performance level or could earn less than the baseline award, or nothing at all, based on certain levels of achievement below the relevant target performance level. Measurement of performance is based on a twelve-month period ending June 30 of each year. Performance goals have yet to be established for the twelve-month performance periods ending June 30, 2018 and June 30, 2019.
As of September 30, 2016, there was $23.9 million of unrecognized compensation cost related to unvested RSUs and PRSUs, which is expected to be recognized over the next 3.15 years.
Stock-based compensation expense related to stock options, RSUs, PRSUs and the 2014 Employee Stock Purchase Plan are included in the following line items in our accompanying consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Sales and marketing
$
920

 
$
1,012

 
$
2,749

 
$
2,180

Technology and analytics
793

 
778

 
2,437

 
1,719

Processing and servicing
227

 
227

 
781

 
530

General and administrative
1,821

 
1,690

 
5,456

 
3,636

Total
$
3,761

 
$
3,707

 
$
11,423

 
$
8,065