Equity Incentive Plans

9 Months Ended

Sep. 30, 2022

Equity Incentive Plans

Equity Incentive Plans

Note 10. Equity Incentive Plans

During the three and nine months ended September 30, 2022, there were no significant changes to the Company’s 2012 Employee, Director and Consultant Equity Incentive Plan, as amended, (the “2012 Plan”) and the Company’s Amended and Restated 2020 Equity Incentive Plan (the “2020 Plan”). In 2022, pursuant to the terms of the 2020 Plan, the number of shares that may be issued was increased automatically by 4% of the number of outstanding shares of common stock on January 1, 2022.

Stock option activity

The following table summarizes the changes in the Company’s outstanding stock options for the nine months ended September 30, 2022:

	Number of
	Options
Outstanding at December 31, 2021	16,243,532
Granted	869,778
Exercised	(1,035,474)
Forfeited	(2,337,108)
Outstanding at September 30, 2022	13,740,728

Each award will vest based on continued service per the award agreement. The grant date fair value of the award will be recognized as stock-based compensation expense over the requisite service period. The grant date fair value was determined using similar methods and assumptions as those previously disclosed by the Company.

Restricted stock unit (“RSU”) activity

The following table summarizes the changes in the Company’s outstanding restricted stock units for the nine months ended September 30, 2022:

	Number of
	RSUs
Outstanding at December 31, 2021	3,958,825
Granted	10,911,247
Vested	(1,445,678)
Forfeited	(1,853,959)
Outstanding at September 30, 2022	11,570,435

Generally, each award will vest based on continued service per the award agreement. The grant date fair value of the award will be recognized as stock-based compensation expense over the requisite service period. The fair value of restricted stock units was estimated on the date of grant based on the fair value of the Company’s Class A common stock.

The Company’s total stock-based compensation expense for all equity awards for the periods presented is as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Cost of revenue – software and other services	$	20	$	6	$	63	$	9
Research and development		3,160		3,552		9,533		6,502
Sales and marketing		2,021		2,484		5,920		6,243
General and administrative		4,212		4,692		11,912		26,015
Total stock-based compensation expense	$	9,413	$	10,734	$	27,428	$	38,769