Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 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	(478,263)	478,263	23.96
Exercised	—	(581,495)	4.47
Canceled	166,790	(166,790)	50.77
Restricted stock units granted	(1,874,273)	—	—
Restricted stock units canceled	682,506	—	—
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	36,852	—	—
Balance as of September 30, 2024	15,568,268	3,742,881	$	34.15	6.7	$	21,302
Vested and Exercisable as of September 30, 2024		2,178,301	$	33.96	5.1	$	20,696

(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 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	1,874,273	21.31
Vested and released	(572,985)	53.74
Canceled	(682,506)	46.73
Balance as of September 30, 2024	4,965,567	$	32.74

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
Vested and released	(2,251)	32.86
Adjusted for performance achievement	48,234	32.84
Canceled	(36,852)	76.65
Balance as of September 30, 2024	1,291,889	$	40.30

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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(unaudited)
	(in thousands)
Cost of precision oncology testing	$	1,484	$	1,092	$	4,020	$	3,470
Cost of development services and other	2,410		436		3,400		1,387
Research and development expense	18,643		8,491		38,413		25,390
Sales and marketing expense	13,215		5,061		27,633		18,387
General and administrative expense	14,017		6,739		30,579		17,805
Total stock-based compensation expense	$	49,769	$	21,819	$	104,045	$	66,439

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 September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
	(unaudited)
Expected term (in years)	5.81 - 6.09	5.97	5.50 - 6.09	5.50 – 6.10
Expected volatility	68.7% - 69.2%	69.4%	67.8% - 69.4%	69.4% –70.5%
Risk-free interest rate	3.8% - 4.1%	4.2%	3.8% - 4.5%	3.4% – 4.2%
Expected dividend yield	—%	—%	—%	—%

The grant date fair value of the stock purchase rights granted under the ESPP for the nine months ended September 30, 2024, and 2023 was estimated using a Black-Scholes option-pricing model with the following assumptions:

	Nine Months Ended September 30,
	2024	2023
	(unaudited)
Expected term (in years)	0.50	0.50
Expected volatility	64.2%	76.6%
Risk-free interest rate	5.4%	5.2%
Expected dividend yield	—%	—%