Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

A summary of the Company’s stock option activity under the 2012 Plan, the 2018 Plan and the 2023 Plan, and related information is as follows:

		Options Outstanding
	Shares Available for Grant	Shares Subject to Options Outstanding	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
	(unaudited)
						(in thousands)
Balance as of January 1, 2024	12,003,394	4,012,903	$	31.76	6.6	$	39,115
2018 Plan annual increase(1)	3,689,000	—
Granted	(216,232)	216,232	20.14
Exercised	—	(36,791)	5.78
Canceled	32,666	(32,666)	40.29
Restricted stock units granted	(1,164,887)	—	—
Restricted stock units canceled	154,276	—	—
Market-based restricted stock units canceled	2,260,764	—	—
Performance-based restricted stock units granted	(870,268)	—	—
Performance-based restricted stock units adjusted for performance achievement	(48,234)	—	—
Performance-based restricted stock units canceled	1,467	—	—
Balance as of March 31, 2024	15,841,946	4,159,678	$	31.32	6.5	$	27,035
Vested and Exercisable as of March 31, 2024		2,454,606	$	26.85	4.8	$	26,383

(1)Effective as of January 1, 2024, an additional 3,689,000 shares of common stock became available for issuance under the 2018 Plan, as a result of the operation of an automatic annual increase provision therein.

Schedule of Restricted Stock Activity

A summary of the Company’s restricted stock unit activity excluding the performance-based and market-based restricted stock units under the 2012 Plan, the 2018 Plan and the 2023 Plan, and related information is as follows:

	Restricted Stock Units Outstanding	Weighted-Average Grant Date Fair Value
	(unaudited)
Balance as of January 1, 2024	4,346,785	$	42.63
Granted	1,164,887	18.60
Vested and released	(120,645)	50.85
Canceled	(154,276)	47.20
Balance as of March 31, 2024	5,236,751	$	36.96

A summary of the Company’s PSU activity under the 2018 Plan and related information is as follows:

	Performance-based Restricted Stock Units Outstanding	Weighted-Average Grant Date Fair Value
	(unaudited)
Balance as of January 1, 2024	412,490	$	91.25
Granted	870,268	18.09
Adjusted for performance achievement	48,234	32.84
Canceled	(1,467)	37.50
Balance as of March 31, 2024	1,329,525	$	41.30

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

The following table presents the effect of employee and non-employee related stock-based compensation expense:

	Three Months Ended March 31,
	2024		2023
	(unaudited)
	(in thousands)
Cost of precision oncology testing	$	1,261	$	1,202
Cost of development services and other	495		474
Research and development expense	9,932		8,678
Sales and marketing expense	7,256		7,503
General and administrative expense	8,097		4,409
Total stock-based compensation expense	$	27,041	$	22,266

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The grant date fair value of stock options was estimated using a Black-Scholes option-pricing model with the following weighted-average assumptions:

	Three Months Ended March 31,
	2024	2023
	(unaudited)
Expected term (in years)	5.72	5.95 – 6.10
Expected volatility	69.3%	69.5%
Risk-free interest rate	4.3%	4.1% – 4.2%
Expected dividend yield	—%	—%