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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The Company recorded stock-based compensation expense of $5,115 and $2,796 during the three months ended March 31, 2024 and 2023, respectively. The following table shows stock-based compensation expense by where the stock-based compensation expense is recorded in the Company’s unaudited condensed consolidated statement of operations:
Three Months Ended
March 31,
20242023
Cost of revenue$39 $17 
Sales and marketing770 528 
Research and development636 343 
General and administrative3,670 1,908 
Total stock-based compensation$5,115 $2,796 
As of March 31, 2024, there was $15,790 of unrecognized compensation cost related to unvested common stock option arrangements, which is expected to be recognized over a weighted-average period of 2.66 years. As of March 31, 2024, there was $33,975 of unrecognized compensation cost related to unvested restricted stock unit awards, which is expected to be recognized over a weighted-average period of 2.76 years. As of March 31, 2024, there was $11,463 of unrecognized compensation cost
related to unvested performance stock unit awards, which is expected to be recognized over a weighted-average period of 2.92 years.
The fair value of each option award was estimated on the date of grant using the Black-Scholes option-pricing model. As there was no public market for its common stock prior to March 25, 2021, which was the first day of trading, and as the trading history of the Company’s common stock is limited, the Company determined the expected volatility for options granted based on an analysis of reported data for a peer group of companies that issued options with substantially similar terms. The expected volatility of options granted has been determined using an average of the historical volatility measures of this peer group of companies. The expected life of options granted to employees was calculated using the simplified method, which represents the average of the contractual term of the option and the weighted-average vesting period of the option. The Company uses the simplified method because it does not have sufficient historical option exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the share option. The Company has not paid, nor anticipates paying, cash dividends on its ordinary shares; therefore, the expected dividend yield is assumed to be zero.
The weighted-average assumptions utilized to determine the fair value of options granted to employees are presented in the following table:
Three Months Ended March 31,
20242023
Expected volatility61.8 %63.6 %
Weighted-average risk-free interest rate4.28 %4.22 %
Expected dividend yield— — 
Expected life – in years66
A summary of the Company’s option activity as of March 31, 2024, and changes during the three months then ended are as follows:
Number of OptionsWeighted-Average Exercise Price (per share)Weighted-Average Remaining Contractual Term (in years)
Outstanding at January 1, 20247,175,494 $7.02 7.78
Granted15,888 12.62 
Exercised(469,879)1.80 
Forfeited(265,242)8.47 
Outstanding at March 31, 2024
6,456,261 7.36 7.60
Options exercisable at March 31, 2024
3,183,237 4.606.41
The weighted-average grant-date fair value of options granted during the three months ended March 31, 2024 was $7.71 per share. The weighted-average grant-date fair value of options granted during the three months ended March 31, 2023 was $4.93 per share. No tax benefits were realized from options during the three months ended March 31, 2024 and 2023, respectively.
The aggregate intrinsic value of options outstanding as of March 31, 2024 and December 31, 2023 was $39,769 and $49,221, respectively.
The aggregate intrinsic value for options exercised during the three months ended March 31, 2024 was $5,035. The aggregate intrinsic value for options exercised during the three months ended March 31, 2023 was $708.
The aggregate intrinsic value for options exercisable as of March 31, 2024 and December 31, 2023 was $28,574 and $34,471, respectively.
The aggregate intrinsic value was calculated based on the positive difference, if any, between the estimated fair value of the Company’s common stock on March 31, 2024 and December 31, 2023, respectively, or the date of exercise, as appropriate, and the exercise price of the underlying options.
During the three months ended March 31, 2024 and 2023, the Company granted to employees RSUs for 1,439,963 and 523,294 shares of Class A common stock, respectively. During the three months ended March 31, 2024 and 2023, the Company recorded stock-based compensation expense related to the RSUs of $3,007 and $1,191, respectively.
A summary of RSU activity for the three months ended March 31, 2024 is as follows:
Number of SharesWeighted-Average Grant Date Fair ValueAggregate Fair Value
Unvested balance at January 1, 20242,571,318$9.88 $25,405 
Granted1,439,96312.5418,057
Vested(145,844)10.351,509 
Forfeited(153,805)8.381,289 
Unvested balance as of March 31, 2024
3,711,632$10.95 $40,642 
During the three months ended March 31, 2024, the Company granted to employees Performance Stock Unit (“PSU”) awards for 1,146,491 shares of Class A common stock. During the three months ended March 31, 2024 and 2023, $435 and $24 of stock-based compensation expense has been recognized in connection with PSU awards. respectively. The Company did not grant PSU awards during the three months ended March 31, 2023. The fair value of PSUs with a market component was estimated on the grant date using a Monte Carlo simulation model.
A summary of PSU activity for the three months ended March 31, 2024 is as follows:
Number of SharesWeighted-Average Grant Date Fair ValueAggregate Fair Value
Unvested balance at January 1, 20241,077,726$11.61 $12,512 
Granted1,146,49112.5614,400
Vested— —— 
Forfeited— —— 
Unvested balance at March 31, 2024
2,224,217$12.10 $26,913