Stock-Based Compensation (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
|
| Summary of Stock Option and SARs Activity |
The following table summarizes stock option and SAR activity for the year ended December 31, 2024 (in thousands, except per share amounts and years): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Options Outstanding | | SARs Outstanding | | Number of Awards | | Weighted-Average Exercise Price Per Share | | Weighted-Average
Remaining Contractual Life (years) | | Aggregate Intrinsic Value | | Number of Awards | | Weighted-Average Exercise Price Per Share | | Weighted-Average
Remaining Contractual Life (years) | | Aggregate Intrinsic Value | | Balance as of December 31, 2023 | 278,470 | | | $ | 8.62 | | | 7.6 | | $ | 2,381,172 | | | — | | | $ | — | | | 0.0 | | $ | — | | | Granted | — | | | — | | | | | | | 51,620 | | | 50.73 | | | | | | | Exercised | (99,297) | | | 7.51 | | | | | | | (41,023) | | | 50.00 | | | | | | | Canceled and forfeited | (1,064) | | | 5.78 | | | | | | | (4,160) | | | 50.19 | | | | | | | Balance as of December 31, 2024 | 178,109 | | | $ | 9.26 | | | 6.9 | | $ | 11,821,740 | | | 6,437 | | | $ | 55.75 | | | 6.7 | | $ | 127,976 | | | Vested and exercisable as of December 31, 2024 | 80,155 | | | $ | 6.66 | | | 6.0 | | $ | 5,528,204 | | | — | | | $ | — | | | 0.0 | | $ | — | |
|
| Schedule of Share-Based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions |
For the Market-Vesting SARs granted during the year ended December 31, 2024, the assumptions used in the Monte Carlo simulation model included the following: | | | | | | | Year Ended
December 31, 2024 | | Expected volatility rate | 55.2% - 58.9% | | Risk-free interest rate | 4.1% - 4.7% |
The Company determined the grant-date fair value of Time-Vesting SARs using a Black-Scholes option-pricing model, calculated as the difference in fair value between a SAR with a strike price at the exercise price and a SAR with the strike price at its maximum appreciation, using the following assumptions: | | | | | | | Year Ended
December 31, 2024 | | Expected volatility rate | 54.9% - 59.2% | | Expected term (in years) | 3.7 - 9.2 | | Risk-free interest rate | 3.4% - 3.9% | | Expected dividend yield | —% |
|
| Summary of RSU and P-RSU Activity |
The following table summarizes the RSU and P-RSU activity for the year ended December 31, 2024 (in thousands, except per share amounts): | | | | | | | | | | | | | | | | | | | | | | | | | RSUs Outstanding | | Weighted Average Grant Date Fair Value per Share | | P-RSUs Outstanding | | Weighted Average Grant Date Fair Value per Share | | Unvested and outstanding as of December 31, 2023 | 82,262 | | | $ | 10.71 | | | 1,976 | | | $ | 15.39 | | | Granted | 19,098 | | | 30.90 | | | 4,336 | | | 24.02 | | | Vested | (31,989) | | | 13.65 | | | (3,654) | | | 20.52 | | | Canceled and forfeited | (4,135) | | | 15.31 | | | (512) | | | 11.29 | | Adjustment for performance results achieved(1) | — | | | $ | — | | | (1,569) | | | $ | 18.90 | | | Unvested and outstanding as of December 31, 2024 | 65,236 | | | $ | 14.89 | | | 577 | | | $ | 41.93 | |
—————(1) This amount represents the difference between the maximum number of shares that could have been issued under the grant and the actual number of shares earned based on final performance.
|
| Summary of Stock-Based Compensation Expense |
Total stock-based compensation expense was as follows (in thousands): | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | 2024 | | 2023 | | 2022 | | Cost of revenue | $ | 69,065 | | | $ | 35,995 | | | $ | 44,061 | | | Sales and marketing | 239,121 | | | 160,645 | | | 196,301 | | | Research and development | 165,065 | | | 98,064 | | | 93,871 | | | General and administrative | 218,387 | | | 181,199 | | | 230,565 | | | Total stock-based compensation expense | $ | 691,638 | | | $ | 475,903 | | | $ | 564,798 | |
|