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Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2020
Stock-Based Compensation  
Schedule of weighted average grant date fair value
Three Months Ended
March 31,
20202019
(In thousands)
Aggregate intrinsic value of stock options exercised (1)
$68,359  $187,016  
Total estimated grant date fair value of options vested$23,335  $55,310  
Weighted-average grant date fair value per share of options granted$60.47  $58.00  
____________________
(1) Aggregate intrinsic value represents the difference between the fair value of the Company’s Class A common stock as reported on the New York Stock Exchange and the exercise price of outstanding “in-the-money” options.
Schedule of restricted stock unit activity
Number of
awards
outstanding		Weighted-
average
grant date
fair value
(Per share)		Aggregate
intrinsic
value
(In thousands)
Nonvested RSUs as of December 31, 20198,490,517  $74.21  $830,167  
Granted728,343  117.09  
Vested(872,870) 62.65  
Forfeited and canceled(306,167) $75.56  
Nonvested RSUs as of March 31, 20208,039,823  $80.61  $713,474  
Schedule of valuation assumptions, options
The following assumptions were used in the Monte Carlo simulation model to estimate the grant date fair value and the derived service period of the performance options:
Asset volatility40%
Equity volatility45%
Discount rate14%
Stock price at grant date$31.7
Schedule of stock based compensation expense
The Company recorded the total stock-based compensation expense as follows:
Three Months Ended
March 31,
20202019
(In thousands)
Cost of revenue$1,837  $1,809  
Research and development33,209  25,339  
Sales and marketing19,943  11,749  
General and administrative14,036  19,427  
Total$69,025  $58,324  
Employee and nonemployee stock options  
Stock-Based Compensation  
Schedule of stock options activity
Number of
options
outstanding		Weighted-
average
exercise
price
(Per share)		Weighted-
average
remaining
contractual
term
(In years)		Aggregate
intrinsic
value
(In thousands)
Outstanding options as of December 31, 20197,150,848  $28.79  6.47$511,971  
Granted534,412  121.20  
Exercised(669,030) 12.30  
Forfeited and canceled(78,260) 52.44  
Outstanding options as of March 31, 20206,937,970  $37.23  7.16$400,612  
Options vested and exercisable as of March 31, 20204,545,317  $18.07  6.39$329,352  
Performance-based stock options  
Stock-Based Compensation  
Schedule of stock options activity
On February 28, 2017, the Company granted a total of 555,000 shares of performance-based stock options in three distinct awards to an employee with grant date fair values of $13.48, $10.26 and $8.41 per share for a total grant value of $5.9 million. The first half of each award vests upon satisfaction of a performance condition and the remainder vests thereafter in equal monthly installments over a two year period. All performance conditions have been met. The stock options are amortized over a derived service period, as adjusted, of 3.1 years, 3.9 years and 4.4 years, respectively. The stock options value and the derived service period were estimated using the Monte-Carlo simulation model. The following table summarizes the details of the performance options:
Number of
options
outstanding		Weighted-
average
exercise
price
(Per share)		Weighted-
average
remaining
contractual
term
(In years)		Aggregate
intrinsic
value
(In thousands)
Outstanding options as of December 31, 2019555,000  $31.72  4.16$36,941  
Granted—  —  
Exercised—  —  
Forfeited and canceled—  —  
Outstanding options as of March 31, 2020555,000  $31.72  3.91$32,062  
Options vested and exercisable as of March 31, 2020462,499  $31.72  3.91$26,719  
Employee stock options  
Stock-Based Compensation  
Schedule of valuation assumptions, options The fair value of employee stock options was estimated on the date of grant using the following assumptions in the Black-Scholes option pricing model:
Three Months Ended
March 31,
Employee Stock Options:20202019
Fair value of common stock$117.9 - $126.7$111.3 - $130.7
Expected term (in years)6.080.33 - 6.08
Expected volatility51.9%48.3% - 66.5%
Risk-free interest rate1.3% - 1.4%2.4% - 2.5%
Dividend rate—%—%