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Stock-Based Compensation and Employee Benefit Plans
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation and Employee Benefit Plans
Stock-Based Compensation and Employee Benefit Plans
Equity incentives are currently issued to employees and directors in the form of stock options and RSUs under our 2014 Equity Incentive Plan. Our 2007 Stock Option Plan was terminated in connection with our Initial Public Offering (IPO). Accordingly, no additional equity incentives are issuable under this plan although it continues to govern outstanding awards granted thereunder. Additionally, we offer an Employee Stock Purchase Plan through the 2014 Employee Stock Purchase Plan and a 401(k) plan to employees.
Options
The following table summarizes the assumptions used for estimating the fair value of stock options granted under our equity plans for the years ended December 31:
 
 
2017
 
2016
 
2015
Risk-free interest rate
2.32% - 2.42%
 
1.40% - 2.54%
 
1.65% - 2.13%
Expected term (years)
5.0
 
5.0 - 6.0
 
5.5 - 6.0
Expected volatility
42% - 44%
 
46% - 54%
 
41% - 47%
Dividend yield
—%
 
—%
 
—%
Weighted-average grant date fair value per share
$1.66
 
$2.65
 
$5.70


The following is a summary of option activity for the year ended December 31, 2017:
 
 
Number of
Options
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
(in years)
 
Aggregate
Intrinsic
Value
(in thousands)
Outstanding at January 1, 2017
11,426,296

 
$
6.10

 
—

 
—

Granted
368,894

 
$
4.13

 
—

 
—

Exercised
(1,407,646
)
 
$
0.85

 
—

 
—

Forfeited
(1,310,438
)
 
$
8.55

 
—

 
—

Expired
(1,158,253
)
 
$
11.45

 
—

 
—

Outstanding at December 31, 2017
7,918,853

 
$
5.75

 
6.4

 
$
17,792

Exercisable at December 31, 2017
6,080,899

 
$
5.16

 
5.8

 
$
16,989

Vested or expected to vest as of December 31, 2017
7,876,541

 
$
5.75

 
6.4

 
$
17,778

Total compensation cost related to nonvested option awards not yet recognized as of December 31, 2017 was $5.6 million and will be recognized over a weighted-average period of approximately 1.6 years. The aggregate intrinsic value of employee options exercised during the years ended December 31, 2017, 2016 and 2015 was $5.3 million, $3.0 million and $10.8 million, respectively.

Restricted Stock Units

The following table summarizes our activities of RSUs and PRSUs during the year ended December 31, 2017:
 
Number of RSUs
 
Weighted-Average Grant Date Fair Value
Unvested at January 1, 2017
3,888,768

 
$
8.46

RSUs and PRSUs granted
2,074,077

 
$
4.63

RSUs vested
(770,664
)
 
$
8.50

RSUs forfeited/expired
(1,849,541
)
 
$
7.84

Unvested at December 31, 2017
3,342,640

 
$
6.18

Expected to vest after December 31, 2017
2,843,933

 
$
6.31



During the year ended December 31, 2016, in addition to granting RSUs, we also granted 194,207 PRSUs. 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 12-month period ending June 30 of each year. The first tranche did not vest due to the performance-based targets not being achieved. The second tranche was granted with a grant date fair value of $4.67 during the year ended December 31, 2017. Performance goals have yet to be established for the twelve-month performance period ending June 30, 2019.

As of December 31, 2017, there was $14.3 million of unrecognized compensation cost related to unvested RSUs and PRSUs, which is expected to be recognized over a weighted-average period of 2.6 years.

Employee Stock Purchase Plan

As of December 31, 2017, there was $0.1 million of unrecognized compensation expense related to the ESPP.
The assumptions used to calculate our Black-Scholes-Merton Option Pricing Model for each stock purchase right granted under the ESPP were as follows for the year ended December 31:
 
2017
 
2016
 
2015
Risk-free interest rate
1.17
%
 
0.39
%
 
0.27
%
Expected term (years)
0.50

 
0.50

 
0.50

Expected volatility
37
%
 
52
%
 
42
%
Dividend yield
—
%
 
—
%
 
—
%

Stock-based compensation expense related to stock options, RSUs, PRSUs and the ESPP are included in the following line items in our accompanying consolidated statements of operations for the year ended December 31 (in thousands):
 
 
2017
 
2016
 
2015
Sales and marketing
$
2,429

 
$
4,002

 
$
3,081

Technology and analytics
2,300

 
3,422

 
2,582

Processing and servicing
483

 
869

 
544

General and administrative
7,303

 
7,622

 
5,375

Total
$
12,515

 
$
15,915

 
$
11,582



401(k) Plan
We maintain a 401(k) defined contribution plan that covers substantially all of our employees. Participants may elect to contribute their annual compensation up to the maximum limit imposed by federal tax law. During the years ended December 31, 2017, 2016 and 2015 we had $1.2 million, $1.4 million, and $1.0 million in employer related match expense, respectively.