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Stockholders' Equity and Stock Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Summary of Common Shares Reserved for Future Issuance
Shares of common stock outstanding and reserved for future issuance were as follows (in thousands):
June 30, 2024
2011 Stock Plan:
Options, RSUs and PRSUs outstanding4,149 
2021 Equity Incentive Plan:
Options, RSUs and PRSUs outstanding (1)
19,441 
Shares reserved for future award issuances82,078 
2022 Inducement Plan:
Options and RSUs outstanding3,128 
Shares reserved for future award issuances6,480 
2021 Employee Stock Purchase Plan
Shares reserved for future award issuances13,166 
Total awards outstanding and shares of common stock reserved for issuance
128,442 
(1)Outstanding shares include the Executive PRSUs and 2024 Executive Chairman Award, as discussed below, based on 100% achievement of target performance.
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period:
Valuation Assumption InputsThree and Six Months Ended June 30, 2024Three and Six Months Ended June 30, 2023
Expected term (in years)
0.5 - 2.0
0.5 - 1.5
Stock price volatility
48.3% - 57.2%
58.1% - 77.3%
Risk-free interest rate
4.78% - 5.41%
4.47% - 5.26%
Dividend yield
—%
—%
Schedule of Stock Option Activity
Share Information:Number of Shares (in thousands)Weighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (in years)
Aggregate Intrinsic Value (in thousands) (1)
Balance as of December 31, 20232,395 $10.39 7.0$31,368 
Assumed and converted options from acquisition (Note 6)
512 $3.26 
Stock options exercised(122)$0.29 
Stock options cancelled / forfeited / expired— $— 
Balance as of June 30, 20242,785 $9.52 5.9$10,493 
Options vested and expected to vest as of June 30, 20242,785 $9.52 5.9$10,493 
Options exercisable as of June 30, 20241,252 $8.75 5.7$5,667 
(1)Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of the Company’s common stock as of the end of the period, multiplied by the number of stock options outstanding, exercisable, or vested.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The following table summarizes the range of valuation assumptions used in estimating the fair value of the stock options during the period:
Valuation Assumption InputsThree and Six Months Ended June 30, 2024
Expected term (in years)6.0
Stock price volatility65%
Risk-free interest rate4.29%
Dividend yield—%
Schedule of Restricted Stock Unit Activity
RSU activity, which includes PRSUs, during the six months ended June 30, 2024 was as follows:
Share Information:Number of SharesWeighted-Average Grant Date Fair Value Per Share
(in thousands, except per share data)
Unvested, as of December 31, 2023
26,755 $18.44 
Granted (1)
10,262 $23.54 
Vested (2)
(5,052)$17.56 
Forfeited/Cancelled (3)
(8,032)$20.37 
Unvested, as of June 30, 2024
23,933 $20.16 
(1) During the six months ended June 30, 2024, shares granted includes 0.9 million shares granted to the Executive Chairman as long-term equity incentive award accounted for as a modification with a weighted average grant date fair value of $69.78 per share. Refer to the Executive Chairman Awards discussion below.
(2) During the six months ended June 30, 2024, total shares that vested were 5.1 million, of which 1.9 million were withheld for tax purposes.
(3) Shares forfeited includes the cancellation of the 2021 Executive Chairman Performance Award consisting of 6,000,000 PRSUs discussed in the Executive Chairman Awards section below.
Stock-based Compensation Expense
Total stock-based compensation expense recorded for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Cost of revenue$1,682 $1,731 $3,203 $3,427 
Research and development(1)
10,355 10,060 19,021 19,039 
Sales and marketing
18,376 17,273 35,677 33,029 
General and administrative(2)
24,726 25,184 49,680 49,447 
Stock-based compensation, net of amounts capitalized55,139 54,248 107,581 104,942 
Capitalized stock-based compensation382 424 756 938 
Total stock-based compensation expense
$55,521 $54,672 $108,337 $105,880 
(1)     Stock-based compensation expense recorded to research and development in the consolidated statements of operations excludes amounts that were capitalized for internal-use software.
(2)    General and administrative expense includes stock-based compensation associated with RSUs and PRSUs granted to our former CEO (now Executive Chairman) of $12.7 million and $13.9 million for the three months ended June 30, 2024 and 2023, respectively, and $26.2 million and $27.7 million for the six months ended June 30, 2024 and 2023, respectively.
Share-based Payment Arrangement, Nonvested Award, Cost
As of June 30, 2024, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data):
June 30, 2024
Unrecognized Stock-Based CompensationWeighted-Average Period to Recognize Expense
(in years)
RSUs and PRSUs$442,570 2.7
Stock options9,834 2.1
ESPP9,451 1.2
Total unrecognized stock-based compensation expense$461,855