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Share-based compensation
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-based compensation Share-based compensation
The Company’s equity incentive plans provide for granting various share-based awards to eligible employees, non-employee directors, and consultants of the Company. In addition, the Company offers an employee stock purchase plan to eligible employees.
The Company recognized stock-based compensation expense for all equity arrangements as follows:
Three Months Ended March 31,
20232022
(in thousands)
Cost of revenue:
Subscription
$2,267 $1,955 
Services
309 304 
Sales and marketing7,499 5,859 
Research and development5,033 3,859 
General and administrative4,442 4,033 
$19,550 $16,010 
Equity Incentive Plans
The maximum number of shares of common stock available for issuance under the 2020 Plan was 29,183,546 shares as of January 1, 2023. As of March 31, 2023, 14,101,048 shares of common stock were reserved for additional grants under the 2020 Plan and 128,928 shares of common stock were reserved for additional grants under the 2017 Option Plan. All stock options previously granted by the Company were at an exercise price at or above the estimated fair market value of the Company’s common stock as of the grant date.
Return Target Options
The table below summarizes return target option activity for the three months ended March 31, 2023:
OptionsWeighted‑
Average
Exercise
Price		Weighted‑
Average
Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 31, 20223,272,920 $6.75 5.8$47,623 
Granted— — 
Exercised(347,234)7.37 
Forfeitures— — 
Outstanding, March 31, 20232,925,686 $6.68 5.2$37,287 
Options exercisable at March 31, 20232,925,686 $6.68 5.2$37,287 
Vested or expected to vest at March 31, 20232,925,686 $6.68 5.2$37,287 
The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the optionholders had all optionholders exercised their options on the last day of the period. The return target options outstanding on June 27, 2022 were modified such that these options were deemed fully vested as of June 30, 2022. During the three months ended June 30, 2022, with the filing of a Form S-3 “shelf” registration statement, the market condition and the implied performance obligation were deemed to be satisfied and the Company recognized $33.0 million of stock-based compensation expense. There is no remaining unrecognized compensation expense related to these return target options as of March 31, 2023. The aggregate intrinsic value of the options exercised, which represents the difference between the fair market value of the Company’s common stock on the date of exercise and the exercise price of each option, was $4.7 million for the three months ended March 31, 2023. The Company issues new shares when return target options are exercised.
Service-Based Options
The table below summarizes the service-based option activity for the three months ended March 31, 2023:
OptionsWeighted‑
Average
Exercise
Price		Weighted‑
Average
Remaining
Contractual
Term (Years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 31, 20221,215,822 $5.70 5.1$18,968 
Granted
— — 
Exercised
(19,937)8.21 
Forfeitures
— — 
Outstanding, March 31, 20231,195,885 $5.66 4.0$16,459 
Options exercisable at March 31, 20231,156,009 $5.57 3.9$16,012 
Vested or expected to vest at March 31, 20231,195,885 $5.66 4.0$16,459 
The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the optionholders had all optionholders exercised their options on the last date of the period. Service-based options vest over four years with 25% vesting one year after grant and the remainder vesting ratably on a quarterly basis thereafter. The Company issues new shares when service-based options are exercised. All service-based options outstanding under the Company’s option plans have exercise prices equal to the fair value of the Company’s stock on the grant date. All awards expire after 10 years.
The aggregate intrinsic value of the options exercised, which represents the difference between the fair market value of the Company’s common stock on the date of exercise and the exercise price of each option, was $0.2 million for the three months ended March 31, 2023. The total fair value of service-based options vested during the three months ended March 31, 2023 was $0.1 million. There was $0.2 million of unrecognized compensation expense related to service-based options that is expected to be recognized over a weighted-average period of 0.6 years as of March 31, 2023.
Restricted Stock Units
RSU activity for the three months ended March 31, 2023 was as follows:
UnitsWeighted-Average Grant Date Fair Value (per share)
Outstanding, December 31, 20228,417,357 $29.61 
Granted4,593,134 20.02 
Vested(370,146)31.75 
Forfeited(353,645)29.95 
Outstanding, March 31, 202312,286,700 $25.99 
RSUs under the 2020 Plan generally vest ratably on an annual basis over four years. There was $279.0 million of unrecognized compensation expense related to unvested RSUs that is expected to be recognized over a weighted-average period
of 3.1 years as of March 31, 2023. The total fair value of RSUs vested during the three months ended March 31, 2023 was $11.8 million.
Employee Stock Purchase Plan
As of March 31, 2023 and December 31, 2022, the Company withheld, at the employees’ request, $2.7 million and $1.1 million, respectively, of eligible employee compensation, which is included in accrued liabilities in the condensed consolidated balance sheets, for purchases of common stock under the 2021 ESPP.
As of March 31, 2023, 5,130,772 shares of common stock were reserved for future issuance under the 2021 ESPP. No shares of common stock were issued under the 2021 ESPP during the three months ended March 31, 2023. There was $0.3 million of unrecognized compensation expense related to the 2021 ESPP that is expected to be recognized over a period of one month as of March 31, 2023.