v3.25.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Stockholders’ Equity Stockholders’ Equity
Stock-Based Compensation Expense
Stock-based compensation expense, consisting of service-based expense related to the equity incentive plans, including expense from stock options and restricted stock units, and the employee stock purchase plan, was classified as follows in the accompanying condensed consolidated statements of operations and comprehensive loss for each of the periods presented (in thousands):
Three Months Ended March 31,
20252024
Cost of revenue$285 $239 
Sales and marketing1,841 1,151 
Research and development2,362 1,898 
General and administrative4,497 3,484 
Total$8,985 $6,772 
Equity Incentive Plan
In November 2021, in connection with the Company’s initial public offering (“IPO”), the Company adopted the 2021 Equity Incentive Plan (the “2021 EIP”) under which the Company could issue stock options or restricted stock units (“RSUs”) as awards. In addition to shares remaining available for issuance under a prior plan and shares subject to awards under the prior plan that may return to the 2021 EIP, the Company reserved 9.0 million shares of common stock for future issuance under the 2021 EIP, with scheduled annual increases to the reserve for amounts to be determined by the board of directors of the Company (the “Board”), subject to a maximum amount. In the first quarters of 2025 and 2024, the Board reserved an additional 3.7 million and 3.5 million common shares, respectively, for future issuance under the 2021 EIP.
In March 2023, the Company adopted the 2022 Inducement Equity Incentive Plan (the “Inducement Plan”) and reserved an additional 7.0 million shares of common stock for future issuance.
Stock-based compensation expense related to the 2021 EIP and the Inducement Plan was $8.8 million and $6.6 million for the three months ended March 31, 2025 and 2024, respectively.
Stock Options
Most stock options have a four-year vesting schedule with a one-year cliff and are classified as incentive stock options (“ISOs”). Some stock options have been granted in lieu of bonuses and have expedited two- or three-year vesting schedules. All awards vest based on service conditions.
Unrecognized stock-based compensation expense related to outstanding stock options as of March 31, 2025 and 2024 was $0.2 million and $2.6 million, respectively. Stock-based compensation expense is recognized on a straight-line basis over the remaining weighted-average vesting periods. As of March 31, 2025 and 2024 the weighted-average vesting periods approximated 0.43 years and 1.02 years, respectively.
Stock option activity was as follows:
Number of Stock Options
Weighted Average Exercise PriceWeighted Average Remaining Contractual Life (years)Aggregate Intrinsic Value
(in thousands)
Outstanding as of December 31, 20241,461,110 $4.01 4.54$17,408 
Exercisable as of December 31, 20241,400,993 $3.88 4.46$16,866 
Granted— $— 
Exercised(86,212)$4.35 
Forfeited and expired— $— 
Outstanding as of March 31, 20251,374,898 $3.98 4.53$9,630 
Exercisable as of March 31, 20251,325,547 $3.91 4.49$9,513 
The aggregate intrinsic value of stock options exercised is outlined in the table above. The intrinsic value represents the excess of the estimated fair value of the Company’s common stock on the date of exercise over the exercise price of each stock option.
Stock-based compensation expense is measured at the grant date based on the estimated fair value of the award. The fair value of the awards is fixed at grant date and amortized over the remaining service period. The Company uses the Black-Scholes model to estimate the value of its stock options issued under the 2021 EIP. Management reviews stock option grants and determines whether further valuation adjustments are appropriate based on recent company performance and/or changes in market conditions. The volatility assumed in the estimate was based on comparable publicly traded companies in the same industry and considers the expected term calculated by the Company. The expected term of the options was derived from a simplified method which estimated the term based on an averaging of the vesting period and contractual term of the stock option grant. The risk-free rate utilized was the average of the five- and seven-year U.S. Treasury yields as the estimated expected term for stock options approximated 6 years. The Company has no plans to declare dividends in the foreseeable future.
Restricted Stock Units
RSUs granted under the 2021 EIP and the Inducement Plan vest and settle upon the satisfaction of a service-based condition. The service-based condition for these awards is generally satisfied over three years. As of March 31, 2025, a total of 19,788 RSUs are outstanding for awards that were issued to non-employee directors have a three-year vesting schedule, with 33% vesting one year from the grant date and the remaining 67% vesting annually over the remaining two years. As of March 31, 2025, a total of 116,298 RSUs are outstanding that were issued to non-employee directors that have a one-year vesting schedule, with 100% vesting on the earlier of one year from the grant date or the annual meeting of stockholders. The remaining RSUs that have been issued have a three-year vesting schedule with 33% vesting one year from grant date and the remaining 67% vesting quarterly over the remaining two years.
RSU activity was as follows:
Number of SharesWeighted Average Grant Date Fair Value
Outstanding as of December 31, 20246,675,938 $8.93 
Granted1,496,600 $12.06 
Vested(1,486,607)$8.40 
Forfeited(174,496)$9.55 
Outstanding as of March 31, 20256,511,435 $9.75 
The total fair value of RSUs that vested during the three months ended March 31, 2025 and 2024 was $12.5 million and $6.4 million, respectively.
As of March 31, 2025, there was $57.0 million of unrecognized stock-based compensation expense related to outstanding RSUs, which is expected to be recognized over a weighted-average period of 2.3 years.
Employee Stock Purchase Plan
In October 2021, the Company adopted the Employee Stock Purchase Plan (“ESPP”) in which eligible employees may contribute up to 50% of their base compensation to purchase shares of common stock at a price equal to 85% of the lower of (1) the fair market value of a share of the Company’s common stock at the beginning of the offering period and (2) the fair market value of a share of the Company’s common stock on the purchase date. No participant may purchase more than 2,500 shares during any offering period. The ESPP became effective in November 2021 in connection with the Company’s IPO. As of March 31, 2025 and December 31, 2024, 4,034,053 and 3,301,800 shares were reserved for issuance, and 796,200 and 677,635 shares, respectively, of common stock had been issued under the ESPP. The number of shares available for issuance under the ESPP may be increased on the first day of each fiscal year beginning with the 2022 fiscal year by an amount to be determined by the board of directors. In the first quarter of 2025, the Board reserved an additional 732,253 common shares for issuance under the ESPP.
The 2021 ESPP provides for six-month offering periods beginning February 16 and August 16 of each year, and the last day of each offering period is the purchase date for that period.
During each of the three months ended March 31, 2025 and 2024, the Company recognized $0.2 million of stock-based compensation expense related to the ESPP. As of March 31, 2025 and December 31, 2024, $0.5 million and $1.0 million in accrued ESPP employee payroll contributions are included within accrued liabilities on the consolidated balance sheets, respectively. As of March 31, 2025, total unrecognized compensation expense related to the ESPP was $0.3 million, which will be amortized over the remaining offering period through August 15, 2025.