Stock-Based Compensation

3 Months Ended

Mar. 31, 2024

Stock-Based Compensation

Stock-Based Compensation

9. Stock-Based Compensation

Stock-Based Compensation Expense

The following table presents the stock-based compensation expense recorded for equity classified awards for the three months ended March 31, 2024 and 2023:

`
	Three months ended March 31,
		2024		2023
	(in thousands)
Cost of revenues	$	3,777	$	2,556
Research and development		20,649		14,640
Selling, general and administrative		40,021		23,281
Total	$	64,447	$	40,477

Additionally, the stock-based compensation expense for liability-classified awards for the three months ended March 31, 2024 and 2023 was $0.2 million in both periods.

Stock Options

The following table summarizes option activity for the three months ended March 31, 2024:

		Weighted-
	Number of	Average
	Shares	Exercise
	Outstanding	Price
	(in thousands, except for per share data)
December 31, 2023	5,501	$	23.65
Options exercised	(792)	$	8.17
March 31, 2024	4,709	$	26.25

Restricted Stock Units and Performance-Based Awards

The following table summarizes unvested RSU and performance-based awards for the three months ended March 31, 2024:

		Weighted-
		Average
		Grant Date
	Shares	Fair Value
	(in thousands, except for per share data)
Balance at December 31, 2023	9,248	$	49.50
Granted	4,608	$	67.28
Vested	(1,861)	$	52.40
Cancelled/forfeited	(94)	$	57.77
Balance at March 31, 2024	11,901	$	56.16

The Company grants certain senior-level executives performance stock units which vest based on performance and time-based service conditions, which are referred to herein as performance-based awards. During the three months ended March 31, 2024, the Company granted 0.8 million performance-based awards with an aggregate grant date fair

value of $55.0 million. Achievement at 200% of target is deemed probable and as a result, the Company expects to recognize a total of $110.0 million over the requisite service period of which $6.6 million has been recognized.

The Company has recognized $20.7 million and $7.3 million in total stock-based compensation for all performance-based awards for the three months ended March 31, 2024 and 2023, respectively.