Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Fair value assumptions

The fair value of each option granted for the three months ended March 31, 2023 and 2022 is estimated on the date of grant using the Black-Scholes model based on the following assumptions:

	Three Months Ended March 31,
	2023	2022
Weighted average expected term (years)	6.0	6.1
Risk-free interest rate	3.8%	1.7%
Volatility	72%	48%
Expected dividend yield	0%	0%

Stock options activity

Stock options

	Number of Options	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2022 (1)	9,760,657	$	39.43	8.17	$	8.05
Granted	241,000	18.17
Exercised	(37,331)	5.29
Cancelled	(455,318)	39.14
Outstanding as of March 31, 2023	9,509,008	$	38.89	7.75	$	8.28
Options exercisable as of March 31, 2023	3,744,057	$	28.97	6.31	$	8.25
Options unvested as of March 31, 2023	5,764,951	$	45.57	8.65	$	0.02

(1) includes assumed options of 72,410 from the Metromile Acquisition (see Note 5)

Restricted stock units activity

Restricted Stock Units

	Number of Shares	Grant Date Fair Value
Outstanding as of December 31, 2022 (1)	1,651,243	$	27.92
Granted	589,373	18.16
Vested	(136,987)	27.69
Cancelled	(103,689)	23.98
Outstanding as of March 31, 2023	1,999,940	$	25.21

(1) includes assumed restricted stock units of 331,797 from the Metromile Acquisition (see Note 5)

Stock-based compensation expense

Stock-based compensation expense from stock options and RSUs granted are included and classified in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022, including assumed awards from the Metromile Acquisition for the three months ended March 31, 2023, as follows ($ in millions):

	Three Months Ended March 31,
	2023		2022
Loss and loss adjustment expense, net	$	0.7	$	0.6
Other insurance expense	0.5		0.3
Sales and marketing	1.2		1.5
Technology development	6.7		5.4
General and administrative	6.3		6.3
Total stock-based compensation expense	$	15.4	$	14.1

Stock-based compensation expense classified by award type as included in the condensed consolidated statements of operations is as follows ($ in millions):

	Three Months Ended March 31,
	2023		2022
Stock options	$	11.0	$	12.1
RSUs	4.4		2.0
Total stock-based compensation expense	$	15.4	$	14.1