Common Stock

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Restricted Stock Units

The summary of restricted stock unit ("RSU") activity is as follows (in thousands, except per share data):


	Number of Shares	Weighted- Average Grant Date Fair Value		Aggregate Intrinsic Value
Nonvested units as of December 31, 2019	41,685	$	52.06	$	1,793,305
Granted	23,854	27.82
Vested	(14,086)	45.02
Cancelled	(10,352)	47.99
Nonvested units as of September 30, 2020	41,101	$	41.39	$	1,132,220

Included in the grants for the nine months ended September 30, 2020 are approximately 250,000 performance based restricted stock units (“PSU”) that have a performance criteria tied to the Company’s Adjusted EBITDA profitability target. The grant date fair value per share of the PSUs granted in the nine months ended September 30, 2020 was $27.14. Compensation cost associated with these PSUs are recognized based on the estimated number of shares that the Company ultimately expects will vest and amortized on a straight-line basis over the requisite service period as these PSUs consist of only one tranche. If in the future, situations indicate that it is not probable that we will achieve the performance criteria, then no further compensation cost will be recorded and any previous costs will be reversed.

In connection with RSUs that vested in the nine months ended September 30, 2020, the Company withheld 408,637 shares and remitted tax liabilities of $14.5 million on behalf of the RSU holders to the relevant tax authorities in cash.

As of September 30, 2020, the total unrecognized compensation cost was $1.1 billion. The Company expects to recognize this expense over the remaining weighted-average period of 2.5 years. The Company recognizes compensation expense on the RSUs granted prior to the effectiveness of its IPO Registration Statement on March 28, 2019 using the accelerated attribution method. Generally, RSUs granted after March 28, 2019 vest on the satisfaction of a service-based condition only. The Company recognizes compensation expense for such RSUs upon a straight-line basis over their requisite service periods.

2019 Employee Stock Purchase Plan

In March 2019, the Company’s board of directors adopted, and the Company’s stockholders approved, the 2019 Employee Stock Purchase Plan (the “ESPP”). The ESPP went into effect on March 27, 2019. Subject to any limitations contained therein, the ESPP allows eligible employees to contribute, through payroll deductions, up to 15% of their eligible compensation to purchase the Company’s Class A common stock at a discounted price per share. The ESPP provides for consecutive, overlapping 12-month offering periods, subject to certain reset provisions as defined in the plan. The initial offering period ran from March 28, 2019 through June 30, 2020.

A total of 6,000,000 shares of Class A common stock were initially reserved for issuance under the ESPP, and on January 1, 2020, an additional 3,025,957 shares of Class A common stock were reserved for issuance under the ESPP. As of September 30, 2020, 866,518 shares of Class A common stock have been purchased under the ESPP. The number of shares reserved under the ESPP will automatically increase on the first day of each calendar year beginning on January 1, 2020 in a number of shares equal to the least of (i) 7,000,000 shares of Class A common stock, (ii) one percent of the outstanding shares of all classes of the Company’s common stock on the last day of the immediately preceding fiscal year, or (iii) an amount determined by the administrator of the ESPP.