Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Fair Value Weighted-Average Assumptions

The fair value of stock option awards was determined on the grant date using the Black-Scholes option-pricing model. No new options were granted during the period ended June 30, 2021. The assumptions for the Black-Scholes model for options granted during the period ended June 30, 2022, were as follows:

	Six Months Ended June 30,
	2022	2021
Expected term (years)(1)	6.02	5.79 — 6.02
Expected volatility(2)	48.7% — 49.0%	43.5% — 44.6%
Common stock value	2.92 — 3.28	14.32 — 14.50
Risk-free interest rate(3)	2.73% — 2.93%	1.20% — 1.60%
Dividend yield(4)	0%	0%

(1)Expected term is the length of time the grant is expected to be outstanding before it is exercised or terminated. This number is calculated as the midpoint between the vesting term and the original contractual term (contractual period to exercise). If the option contains graded vesting, then the vesting term would be based on the vesting pattern.

(2)Expected volatility was estimated based on comparable companies' reported volatilities.

(3)The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.

(4)The Company has assumed a dividend yield of zero as they have no plans to declare dividends in the foreseeable future.

Schedule of Stock Options Activity

A summary of the Company’s stock option activity for six months ended June 30, 2022, is as follows:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2021		13,858,356		$	0.39		7.47	$	99,406
Granted		1,335,000			3.08		—		—
Exercised		(1,199,321	)		0.20		—		—
Forfeited		(134,221	)		0.48		—		—
Outstanding as of June 30, 2022		13,859,814			0.66		7.34		34,300
Vested and exercisable as of June 30, 2022		9,697,099			0.40		6.95		26,453
Vested and expected to vest as of June 30, 2022		13,859,814			0.66		7.34		34,300

Schedule of Restricted Stock Activity

The following table summarizes our RSU activity which includes performance-based RSUs for the six months ended June 30, 2022:

	Shares			Weighted Average Grant Date Fair Value per Share
Outstanding as of December 31, 2021		6,631,079		$	10.04
Granted		5,353,145			3.56
Released		(1,130,020	)		10.26
Forfeited		(798,680	)		10.25
Outstanding as of June 30, 2022		10,055,524		$	6.55

Summary of Stock-Based Compensation Expense

Total stock-based compensation expense by function was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of revenue	$	206	$	410	$	342	$	410
Research and development expenses		4,652		2,022		8,975		3,818
General and administrative expenses		1,275		1,496		2,504		4,192
Sales and marketing expenses		301		81		397		102
Total	$	6,434	$	4,009	$	12,218	$	8,522