Equity-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Equity-Based Compensation

11. Equity-Based Compensation

Equity Compensation Plans

A summary of the option activity under the Company’s equity compensation plans is as follows:

	Options Outstanding
	Number of Options			Weighted-Average Exercise Price (per option)		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2021		41,753,042		$	3.86		5.92	$	11,379
Granted		15,509,878			1.21
Exercised		(1,720,163	)		1.55
Forfeited		(6,075,160	)		2.17
Expired		(167,868	)		1.22
Outstanding at June 30, 2022		49,299,729		$	2.98		6.06	$	1,425
Exercisable at June 30, 2022		24,065,850		$	2.30		2.91	$	—

The intrinsic value of options exercised was $0.8 million for the six months ended June 30, 2022.

A summary of RSU activity is as follows:

	RSUs Outstanding
	Number of RSUs			Weighted-Average Fair Value (per RSU)
Outstanding at December 31, 2021		573,678		$	5.97
Granted		2,606,735			1.23
Vested		(210,146	)		6.68
Forfeited		(251,082	)		4.62
Outstanding at June 30, 2022		2,719,185		$	1.49

On January 1, 2022, the number of shares available for issuance under the 2021 Incentive Award Plan (the “2021 Plan”) increased by 15,479,188 pursuant to the terms of the 2021 Plan. As of June 30, 2022, 20,319,069 shares of Class A Common Stock were available for issuance under the 2021 Plan.

Equity-Based Compensation Expense

The fair value of each award as of the date of grant is estimated using a Black-Scholes option-pricing model. The following table summarizes the weighted-average assumptions used to determine the fair value of option grants:

	Six months ended June 30,
	2022			2021
Risk-free rate		2.8	%		0.7	%
Dividend yield rate		—			—
Volatility		52.6	%		53.9	%
Expected term (in years)		6.25			6.23
Weighted-average grant date fair value	$	0.64		$	4.91

Equity-based compensation expense for the three and six months ended June 30, 2022 and 2021 was as follows (in thousands):

	Three months ended June 30,					Six months ended June 30,
	2022			2021		2022		2021
Cost of revenue	$	382		$	91	$	717	$	182
Selling and marketing		1,018			1,616		2,657		3,333
Enterprise technology and development		(17	)		357		910		663
General and administrative		1,618			458		3,281		917
Total equity-based compensation	$	3,001		$	2,522	$	7,565	$	5,095

As of June 30, 2022, the total unrecognized equity-based compensation expense was $52.5 million, which will be recognized over a weighted-average remaining period of 2.95 years.