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Stock-based Compensation
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation STOCK-BASED COMPENSATION
Stock-based compensation expense, including cash settled, for the three and nine months ended September 30, 2022 and 2021 was recorded as follows:
Three Months Ended September 30,Nine Months Ended September 30,
in thousands2022202120222021
Cost of subscription revenue$4,905 $2,516 $13,783 $8,522 
Cost of professional services and other revenue9,445 6,977 25,754 18,161 
Research and development28,722 33,697 115,553 89,410 
Sales and marketing55,622 36,651 155,540 94,917 
General and administrative148,582 196,979 467,962 553,582 
Total stock-based compensation expense, including cash settled247,276 276,820 778,592 764,592 
Cash Awards
During the three months ended September 30, 2022 and 2021, less than 0.1 million Qualtrics Rights and Move SAP RSUs vested and were settled for $0.7 million and $2.9 million in cash, respectively. During the nine months ended September 30, 2022 and 2021, less than 0.1 million and 1.8 million Qualtrics Rights and Move SAP RSUs vested and were settled for $4.7 million and $76.9 million in cash, respectively. The unrecognized expense related to
Qualtrics Rights and Move SAP RSUs was $0.7 million and $4.4 million as of September 30, 2022 and December 31, 2021, respectively, and will be recognized over a remaining vesting period of up to two years.
Equity Awards
Qualtrics RSUs
The following table sets forth the outstanding Qualtrics RSUs and related activity for the nine months ended September 30, 2022:
Number of RSUs (in thousands)Weighted-Average Grant Date Fair Value
Outstanding as of December 31, 2021
82,164 $43.11 
Granted32,117 21.69 
Vested(28,824)42.03 
Forfeited/Canceled(5,208)37.19 
Outstanding as of September 30, 2022
80,249 $35.31 
The total fair value of RSUs that vested during the three months ended September 30, 2022 and 2021 was $20.2 million and $15.3 million, respectively. The total fair value of RSUs that vested during the nine months ended September 30, 2022 and 2021 was $704.0 million and $184.4 million, respectively. As of September 30, 2022, there was $2,251.0 million of unrecognized stock-based compensation expense related to outstanding Qualtrics RSUs, which is expected to be recognized over a weighted-average period of 2.6 years.
Qualtrics Options
On October 1, 2021, in connection with the acquisition of Clarabridge, the Company assumed the outstanding Clarabridge stock option plans and converted all outstanding stock options into Qualtrics options. The following table sets forth the outstanding common stock options and related activity for the nine months ended September 30, 2022:
Number of Options (in thousands)Weighted-Average Exercise Price per ShareWeighted-Average Remaining Term (years)Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2021
1,855 $4.84 6.3$56,684 
Exercised(257)4.11 
Forfeited/Expired(27)6.34 
Outstanding as of September 30, 2022
1,571 $4.93 5.4$8,238 
Vested and exercisable at September 30, 2022
787 $4.61 5.4$4,387 
The intrinsic value represents the excess of the estimated fair value of the Company's common stock on the date of exercise over the exercise price of each option. The intrinsic value of options as of September 30, 2022 is based on the market closing price of the Company's Class A common stock on that date. The aggregate intrinsic value of options exercised was $1.1 million and $4.3 million for the three and nine months ended September 30, 2022, respectively.
As of September 30, 2022, there was $11.8 million of unrecognized stock-based compensation expense related to outstanding stock options which is expected to be recognized over a weighted-average period of 2 years.
Qualtrics Employee Stock Purchase Plan
In December 2020, the Company's board of directors approved the 2021 Qualtrics International Inc. Employee Stock Purchase Plan (the “ESPP”), which became effective in January 2021. Each employee who is a participant in the ESPP may purchase shares by authorizing contributions at a minimum of 1% up to a maximum of 20% of his or
her compensation for each pay period. Accumulated contributions are used to purchase shares on the last business day of the purchase period at a price equal to 85% of the fair market value of the shares on the first business day of the offering period or the last business day of the offering period, whichever is lower, provided that no more than the number of shares of Class A common stock determined by dividing $15,000 by the fair market value of the shares on the first business day of the offering period may be purchased by any one employee during each purchase period. An employee may also purchase no more than $25,000 worth of shares of Class A common stock for each calendar year in which a purchase right is outstanding. The Company recognized compensation expense associated with the ESPP of $9.3 million and $4.3 million during the three months ended September 30, 2022 and 2021, respectively, and $19.6 million and $11.9 million during the nine months ended September 30, 2022 and 2021, respectively.