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STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Non-cash Compensation Related to Equity Awards

Non-cash compensation related to equity awards is included in the following line items in the accompanying consolidated statements of operations and comprehensive income (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cost of revenue	$	62	$	66	$	231	$	311
Selling and marketing expense	713		1,127		2,566		4,207
General and administrative expense	5,029		5,828		15,802		19,721
Product development	1,055		1,571		3,486		4,760
Restructuring and severance	—		1,262		—		2,328
Total non-cash compensation	$	6,859	$	9,854	$	22,085	$	31,327

Schedule of Changes in Outstanding Stock Options

A summary of changes in outstanding stock options is as follows:


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value(a)
		(per option)		(in years)	(in thousands)
Options outstanding at January 1, 2024	734,775	$	150.74
Granted	—	—
Exercised	(257,155)	26.00
Forfeited	(2,798)	113.27
Expired	(98,876)	193.70
Options outstanding at September 30, 2024	375,946	225.04		5.79	$	151
Options exercisable at September 30, 2024	289,625	$	217.78	5.58	$	151

(a)The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price of $58.03 on the last trading day of the quarter ended September 30, 2024 and the exercise price, multiplied by the number of shares covered by in-the-money options) that would have been received by the option holder had the option holder exercised these options on September 30, 2024. The intrinsic value changes based on the market value of the Company's common stock.

Schedule of Changes in Outstanding Stock Options with Market Conditions

A summary of changes in outstanding stock options with market conditions at target is as follows:


	Number of Options with Market Conditions	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value(a)
		(per option)		(in years)	(in thousands)
Options outstanding at January 1, 2024	718,438	$	229.02
Granted	—	—
Exercised	—	—
Forfeited	—	—
Expired	(19,126)	275.82
Options outstanding at September 30, 2024	699,312	227.74		3.89	$	—
Options exercisable at September 30, 2024	481,669	$	195.10	2.85	$	—

Schedule of Changes in Outstanding Nonvested Restricted Stock Units and Restricted Stock Units With Market Conditions

A summary of changes in outstanding nonvested restricted stock units (“RSUs”) is as follows:


	RSUs
	Number of Units	Weighted Average Grant Date Fair Value
		(per unit)
Nonvested at January 1, 2024	471,593	$	66.42
Granted	434,665	40.71
Vested	(249,581)	73.88
Forfeited	(80,258)	45.20
Nonvested at September 30, 2024	576,419	$	46.76

A summary of changes in outstanding nonvested RSUs with performance conditions is as follows:


	RSUs with Market Conditions (a)
	Number of Units	Weighted Average Grant Date Fair Value
		(per unit)
Nonvested at January 1, 2024	—	$	—
Granted	69,000	35.83
Vested	(23,000)	37.02
Forfeited	—	—
Nonvested at September 30, 2024	46,000	$	35.24

(a)During the nine months ended September 30, 2024, the Company granted RSUs with market conditions that will vest if the Company's 45 trading day average closing stock prices equals or exceeds certain price hurdles ($41.17, $52.94 and $64.70) during the performance period of March 1, 2024 to March 1, 2028. Upon achievement of each price hurdle, one-half of the awards will vest immediately, and the other half of the awards will vest on the first anniversary of the achievement date.

Schedule of RSUs with Market Conditions Valuation Assumptions

For purposes of determining stock-based compensation expense, the weighted average grant date fair value per share of the RSUs with market conditions was estimated using the Monte Carlo simulation model, which requires the use of various key assumptions.


Expected term (1)	5.00 years
Expected volatility (2)	68.06	%
Risk-free interest rate (3)	4.13	%
Expected dividend (4)	—

(1)The expected term of RSUs with market conditions granted was calculated using a four-year performance period plus one year to account for the time-based vesting requirement.

(2)The expected volatility rate is based on the historical volatility of the Company's common stock.

(3)The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the awards in effect at the grant date.

(4)For all RSUs with market conditions granted, no dividends are expected to be paid over the contractual term of the stock options, resulting in a zero expected dividend rate.

Schedule of Employee Stock Purchase Plan Valuation Assumptions

For purposes of determining stock-based compensation expense, the grant date fair value per share estimated using the Black-Scholes option pricing model required the use of the following key assumptions:


	Nine Months Ended September 30,
	2024	2023
Expected term (1)	0.50 years	0.50 years
Expected dividend (2)	—	—
Expected volatility (3)	78 - 82 %	82	%
Risk-free interest rate (4)	5.28 - 5.33 %	4.76 - 5.50 %

(1)The expected term was calculated using the time period between the grant date and the purchase date.

(2)No dividends are expected to be paid, resulting in a zero expected dividend rate.

(3)The expected volatility rate is based on the historical volatility of the Company's common stock.

(4)The risk-free interest rate is specific to the date of grant. The risk-free interest rate is based on U.S. Treasury yields for notes with comparable expected terms as the employee stock purchase rights in effect at the grant date.