Stock-Based Compensation

9 Months Ended

Sep. 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 nine months ended September 30, 2024 and 2023.

	Three months ended September 30,
		2024		2023
	(in thousands)
Cost of revenues	$	4,174	$	3,299
Research and development		22,549		18,784
Selling, general and administrative		43,921		35,504
Total	$	70,644	$	57,587

	Nine months ended September 30,
		2024		2023
	(in thousands)
Cost of revenues	$	11,997	$	8,692
Research and development		65,155		48,761
Selling, general and administrative		125,350		84,923
Total	$	202,502	$	142,376

Additionally, the stock-based compensation expense for liability-classified awards for both the three months ended September 30, 2024 and 2023 was $0.1 million. The stock-based compensation expense for liability-classified awards for both the nine months ended September 30, 2024 and 2023 was $0.6 million.

Stock Options

The following table summarizes option activity for the nine months ended September 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	(1,325)	$	7.80
September 30, 2024	4,176	$	28.67

Restricted Stock Units and Performance-Based Awards

The following table summarizes unvested RSU and performance-based awards for the nine months ended September 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	5,043	$	70.99
Vested	(2,968)	$	55.27
Cancelled/forfeited	(467)	$	57.96
Balance at September 30, 2024	10,856	$	57.91

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 nine months ended September 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 $25.4 million has been recognized for the three and nine months ended September 30, 2024, respectively.

The Company has recognized $23.7 million and $23.0 million in stock-based compensation for all performance-based awards for the three months ended September 30, 2024 and 2023, respectively. The Company has recognized $66.5 million and $40.5 million in stock-based compensation for all performance-based awards for the nine months ended September 30, 2024 and 2023, respectively.