Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Stock-Based Compensation

Stock-Based Compensation

9. Stock-Based Compensation

Stock-Based Compensation Expense

The following tables present the stock-based compensation expense recorded for equity classified awards on selected statements of operations line items for the three and six months ended June 30, 2024 and 2023.

	Three months ended June 30,
		2024		2023
	(in thousands)
Cost of revenues	$	4,046	$	2,838
Research and development		21,957		15,337
Selling, general and administrative		41,408		26,137
Total	$	67,411	$	44,312

	Six months ended June 30,
		2024		2023
	(in thousands)
Cost of revenues	$	7,823	$	5,394
Research and development		42,606		29,977
Selling, general and administrative		81,429		49,418
Total	$	131,858	$	84,789

Additionally, the stock-based compensation expense for liability-classified awards for the three months ended June 30, 2024 and 2023 was $0.2 million and $0.3 million, respectively. The stock-based compensation expense for liability-classified awards for the six months ended June 30, 2024 and 2023 was $0.4 million and $0.5 million, respectively.

Stock Options

The following table summarizes option activity for the six months ended June 30, 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	(1,078)	$	8.02
June 30, 2024	4,423	$	27.45

Restricted Stock Units and Performance-Based Awards

The following table summarizes unvested RSU and performance-based awards for the six months ended June 30, 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	4,786	$	68.59
Vested	(2,443)	$	54.93
Cancelled/forfeited	(253)	$	54.27
Balance at June 30, 2024	11,338	$	56.59

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 six months ended June 30, 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 $9.4 million and $16.0 million has been recognized for the three and six months ended June 30, 2024, respectively.

The Company has recognized $22.1 million and $10.2 million in stock-based compensation for performance-based awards for the three months ended June 30, 2024 and 2023, respectively. The Company has recognized $42.8 million and $17.5 million in stock-based compensation for performance-based awards for the six months ended June 30, 2024 and 2023, respectively.