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Stock-Based Compensation and Stockholders' Equity
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
Stock-Based Compensation and Stockholders' Equity Stock-Based Compensation and Stockholders' Equity
Stock-Based Compensation Expense

The following table sets forth stock-based compensation expense recognized by the Company in the following line items in the Company's consolidated statements of operations and comprehensive income during the periods presented:

 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2022202120222021
Cost of services$107 $156 $314 $320 
Sales and marketing1,967 1,060 4,569 2,686 
General and administrative2,328 1,124 5,257 3,226 
Stock-based compensation expense $4,402 $2,340 $10,140 $6,232 

The following table sets forth stock-based compensation expense by award type during the periods presented:

 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2022202120222021
Stock options$1,561 $1,572 $4,621 $4,813 
ESPP243 768 1,376 1,419 
RSUs1,404 — 2,196 — 
PSUs1,194 — 1,947 — 
Stock-based compensation expense $4,402 $2,340 $10,140 $6,232 

Restricted Stock Units

On May 3, 2022, the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) approved a form of award agreement (the “RSU Award Agreement”) for grants of restricted stock units (“RSUs”) to the Company’s named executive officers under the Company’s 2020 Incentive Award Plan (the “2020 Plan”). Additionally, on June 17, 2022, the Compensation Committee approved a form of award agreement for grants of RSUs to the Company’s non-employee directors (the “Non-Employee Director RSU Award Agreement”) under the 2020 Plan. Pursuant to the RSU Award Agreement and the Non-Employee Director RSU Award Agreement, each RSU entitles the recipient to one share of the Company’s common stock, subject to time-based vesting conditions set forth in individual agreements.

The fair value of each RSU grant is determined based upon the market closing price of the Company’s common stock on the date of grant. The RSUs vest over the requisite service period, which ranges between eight months and three years from the date of grant, subject to the continued employment of the employees and services of the non-employee board members.

As of September 30, 2022, the unrecognized stock-based compensation expense related to the unvested portion of the Company's RSU awards was approximately $11.4 million and is expected to be recognized over a weighted average period of 2.17 years. As of September 30, 2022, there were 525,735 RSUs expected to vest with a weighted average grant-date fair value of $25.93 per unit.

Performance-Based Restricted Stock Units

On May 3, 2022, the Compensation Committee approved a form of award agreement (the “PSU Award Agreement”) for grants of performance-based restricted stock units (“PSUs”), under the Company’s 2020 Plan. Pursuant to the PSU Award Agreement, each PSU entitles the recipient to one share of the Company’s common stock, subject to performance-based vesting conditions set forth in individual agreements.
The PSUs will vest, if at all, following the achievement of certain performance measures over a three year performance period, relative to certain performance and market conditions. Grant date fair value of PSUs, that vest relative to a performance condition, is measured based upon the market closing price of the Company’s common stock on the date of grant and expensed on a straight-line basis when it becomes probable that the performance conditions will be satisfied, net of forfeitures, over the service period of the awards, which is generally the vesting term of three years. Grant date fair value of PSUs, that vest relative to a market condition, is measured using a Monte Carlo simulation model and expensed on a straight-line basis, net of forfeitures, over the service period of the awards, which is generally the vesting term of three years.

As of September 30, 2022, the unrecognized stock-based compensation expense related to the unvested portion of the Company's PSU awards was approximately $10.7 million and is expected to be recognized over a weighted average period of 2.26 years. As of September 30, 2022, there were 473,371 PSUs expected to vest with a weighted average grant-date fair value of $26.76 per unit.

Stock Options

During the nine months ended September 30, 2022, the Company issued an aggregate of 170,006 shares of common stock to employees upon the exercise of options previously granted under the 2016 and 2020 Stock Incentive Plan(s) at exercise prices ranging from $3.68 to $13.82 per share.

During the nine months ended September 30, 2021, the Company issued an aggregate of 333,025 shares of common stock to employees upon the exercise of options previously granted under the 2016 Stock Incentive Plan at exercise prices ranging from $3.68 to $13.82 per share.

Employee Stock Purchase Plan

During the nine months ended September 30, 2022 and 2021, the Company issued 157,250 and 149,865 shares of common stock, respectively, through the Employee Stock Purchase Plan.

Stock Warrants

As of September 30, 2022 and December 31, 2021, the Company had 9,427,343 and 9,432,064 fully vested outstanding warrants, respectively. As of September 30, 2022 and December 31, 2021, the holders of such warrants were entitled to purchase, in the aggregate, up to 5,237,413 and 5,240,035 shares of common stock, respectively. Warrants can be exercised at a strike price of $24.39 per common share. The warrants were issued in 2016 upon the Company's emergence from its pre-packaged bankruptcy. These warrants expire on August 15, 2023.

During the three and nine months ended September 30, 2022, 4,721 warrants were exercised. During the three and nine months ended September 30, 2021, 15,425 and 1,026,649 warrants, respectively, were exercised.