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Equity-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Equity-Based Compensation

The Company has included equity-based compensation expense as part of cost of revenue and operating expenses in the accompanying Consolidated Statements of Income as follows:

 

 

Year Ended December 31,

 

 

2022

 

 

2021

 

 

2020

 

 

(in thousands)

 

Cost of revenue

$

8,704

 

 

$

3,563

 

 

$

1,452

 

Research and development

 

10,449

 

 

 

6,326

 

 

 

2,693

 

Selling and marketing

 

4,373

 

 

 

2,513

 

 

 

2,092

 

General and administrative

 

9,114

 

 

 

3,480

 

 

 

1,920

 

Total

$

32,640

 

 

$

15,882

 

 

$

8,157

 

 
Summary of Activity for Options to Acquire Common Shares

The following table summarizes activity for options to acquire shares of the Company’s common stock in the years ended December 31, 2022, 2021 and 2020:

 

 

 

Number
of Shares
Subject to
Options
(in thousands)

 

 

Weighted-
Average
Exercise Price

 

 

Weighted-
Average
Grant Date Fair Value

 

 

Weighted-
Average
Remaining
Contractual Life
(in years)

 

 

Aggregate
Intrinsic
Value
(in thousands) (1)

 

Balance at December 31, 2019

 

 

341

 

 

$

1.27

 

 

 

 

 

 

6.4

 

 

$

3,960

 

Granted

 

 

10

 

 

$

15.82

 

 

$

11.45

 

 

 

 

 

 

 

Exercised

 

 

(56

)

 

$

1.86

 

 

$

5.04

 

 

 

 

 

 

 

Canceled

 

 

(8

)

 

$

4.18

 

 

$

4.68

 

 

 

 

 

 

 

Balance at December 31, 2020

 

 

287

 

 

$

1.59

 

 

 

 

 

 

5.5

 

 

$

14,484

 

Granted

 

 

5

 

 

$

73.64

 

 

$

56.34

 

 

 

 

 

 

 

Exercised

 

 

(76

)

 

$

1.13

 

 

$

8.40

 

 

 

 

 

 

 

Canceled

 

 

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

Balance at December 31, 2021

 

 

216

 

 

$

3.42

 

 

 

 

 

 

4.6

 

 

$

20,965

 

Granted

 

 

10

 

 

$

59.54

 

 

$

44.56

 

 

 

 

 

 

 

Exercised

 

 

(5

)

 

$

7.16

 

 

$

7.41

 

 

 

 

 

 

 

Canceled

 

 

(9

)

 

$

43.30

 

 

$

33.53

 

 

 

 

 

 

 

Balance at December 31, 2022

 

 

212

 

 

$

4.21

 

 

 

 

 

 

3.7

 

 

$

5,420

 

Exercisable as of December 31, 2022

 

 

196

 

 

$

1.22

 

 

 

 

 

 

3.3

 

 

$

5,608

 

 

(1)
Aggregate intrinsic value is calculated as the difference between (i) the exercise price of options and (ii) the market value of the Company’s common stock as of the applicable date.
Summary of Activity for RSUs Relating to Shares of Company's Common Stock

The following table summarizes activity for RSUs relating to shares of the Company’s common stock in the years ended December 31, 2022, 2021, and 2020:

 

 

Number of
Shares
(in thousands)

 

 

Weighted-Average
Grant Date
Fair Value

 

Balance at December 31, 2019

 

1,511

 

 

$

6.54

 

Granted

 

1,389

 

 

$

24.86

 

Vested and settled

 

(655

)

 

$

7.97

 

Forfeited

 

(160

)

 

$

11.17

 

Balance at December 31, 2020

 

2,085

 

 

$

17.93

 

Granted

 

477

 

 

$

95.33

 

Vested and settled

 

(836

)

 

$

15.43

 

Forfeited

 

(107

)

 

$

37.83

 

Balance at December 31, 2021

 

1,619

 

 

$

40.74

 

Granted

 

1,895

 

 

$

49.98

 

Vested and settled

 

(699

)

 

$

34.01

 

Forfeited

 

(184

)

 

$

61.11

 

Balance at December 31, 2022

 

2,631

 

 

$

47.76

 
Summary of Weighted-Average Assumptions Used to Estimate Fair Value of Options to Acquire Shares of Company's Common Stock

The table below sets forth the weighted-average assumptions used in the Black-Scholes option-pricing model to estimate the fair value of options to acquire shares of the Company’s common stock granted to employees during the years ended December 31, 2022, 2021 and 2020.

 

 

Year Ended December 31,

 

 

2022

 

 

2021

 

 

2020

 

Expected term (in years)

 

6.1

 

 

 

6.1

 

 

 

6.1

 

Risk-free interest rates

 

2.6

%

 

 

1.1

%

 

 

0.4

%

Dividend yield

 

—

 

 

 

—

 

 

 

—

 

Expected volatility

 

88.7

%

 

 

94.6

%

 

 

87.5

%