Stock-Based Compensation

6 Months Ended

Jun. 30, 2025

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation expense included in the consolidated statements of operations was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Cost of revenue	$	3,460	$	3,288	$	6,775	$	6,270
Sales and marketing	17,818		16,276		34,448		31,576
Research and development	15,300		11,799		28,267		22,960
General and administrative(1)	9,948		10,035		32,939		20,311
Total stock-based compensation expense	$	46,526	$	41,398	$	102,429	$	81,117

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(1)    Stock-based compensation in the six months ended June 30, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards for our late CEO.

A summary of the unrecognized stock-based compensation expense related to unvested stock at June 30, 2025 is presented below:

	Unrecognized Stock-Based Compensation Expense (in thousands)		Estimated Weighted Average Period (in years)
Restricted stock units ("RSUs")	$	372,658	2.9
Performance stock units ("PSUs")	7,568		3.4
Restricted stock	10,361		2.1
2018 Employee Stock Purchase Plan ("2018 ESPP")	11,797		0.9

Restricted Stock, RSUs and PSUs

A summary of our restricted stock, RSU and PSU activity is presented below:

	Restricted Stock			RSUs			PSUs
(in thousands, except for per share data)	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2024	187	$	45.67	7,209	$	45.01	300	$	45.78
Granted	187	32.83		5,559	37.27		200	38.37
Performance adjustment(1)	—	—		—	—		(6)	47.20
Vested	(62)	45.67		(2,297)	45.45		(180)	46.01
Forfeited	—	—		(411)	43.67		—	—
Unvested balance at June 30, 2025	312	37.96		10,060	40.69		314	40.88

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(1)    Represents adjustments due to the achievement of predefined financial performance targets.

In January 2025, under the evergreen provision in our 2018 Equity Incentive Plan we reserved an additional 6.0 million shares of our common stock. At June 30, 2025, there were 27.2 million shares available for grant under the plan.

Stock Options

A summary of our stock option activity is presented below:

(in thousands, except for exercise prices and years)	Number of Shares	Weighted Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2024	4,051	$	9.26	2.6	$	122,024
Exercised(1)	(2,501)	7.30			64,874
Forfeited/canceled	—	—			—
Outstanding and exercisable at June 30, 2025	1,550	12.43		2.5	33,095

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(1)    Includes 485 options netted for option costs and 40 shares repurchased to cover taxes.

2018 Employee Stock Purchase Plan

In the six months ended June 30, 2025, employees purchased 0.3 million shares of our common stock at a weighted average price of $32.42 per share, resulting in $9.7 million of cash proceeds. At June 30, 2025, there was $6.4 million of employee contributions to the 2018 ESPP included in accrued compensation.

The fair value of the 2018 ESPP purchase rights was estimated on the offering or modification dates using a Black-Scholes option-pricing model and the following assumptions:

	Six Months Ended June 30,
	2025	2024
Expected term (in years)	0.5 — 2.0	0.5 — 2.0
Expected volatility	30.6% — 38.2%	41.1% — 51.4%
Risk-free interest rate	3.9% — 4.2%	4.4% — 5.1%
Expected dividend yield	—	—

Under the evergreen provision in our 2018 ESPP, in January 2025 we reserved an additional 1.8 million shares of our common stock. At June 30, 2025, there were 11.5 million shares reserved for issuance under our 2018 ESPP.