v3.25.2
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans
11.    EMPLOYEE BENEFIT PLANS
Stock Incentive Plans
As of June 30, 2025, 14.7 million shares and 6.2 million shares of our common stock were reserved for future issuance under our 2021 Stock Incentive Plan (the “2021 Plan”) and 2021 Employee Stock Purchase Plan (the “ESPP”). Shares issuable under the 2021 Plan and the ESPP may be drawn from authorized but unissued shares or from treasury stock. In 2024, we began settling stock option exercises, vesting of RSUs, and ESPP purchases by reissuing shares of our common stock from treasury stock.
CEO Transition
As described in Note 1, Mr. Hart was appointed on February 3, 2025 (the “Start Date”) as our President, CEO, and a Class III director on our Board. Pursuant to the terms of his offer letter, the Board granted Mr. Hart new hire equity awards consisting of approximately 1.9 million RSUs, 3.7 million service-based stock options, and 1.4 million performance-based stock options. The RSUs are scheduled to vest over four years, with 25% vesting on the first anniversary of the Start Date, 6.25% vesting on February 15, 2026, and the remainder vesting in equal quarterly installments thereafter, subject to Mr. Hart’s continued employment through each vesting date. The service-based stock options have an exercise price of $7.81 per share of common stock and are scheduled to vest over four years, with 25% vesting on the first anniversary of the Start Date and the remainder vesting in equal quarterly installments thereafter, subject to continued employment. The performance-based stock options also have an exercise price of $7.81 per share of common stock and are scheduled to vest upon satisfaction of both service- and market-based vesting conditions. The service-based vesting condition is consistent with the vesting schedule of the service-based stock options, and the market-based vesting condition is satisfied when the trailing simple moving average closing price of the Company’s common stock over a 60-trading day period equals or exceeds $12.81 per share.
We estimated the grant date fair value of the service-based stock options utilizing the Black-Scholes option-pricing model, resulting in a fair value of $4.47 per share. The Black-Scholes model considers several variables and assumptions in estimating the fair value of options, including the exercise price, expected term, risk-free interest rate, and expected stock price volatility over the expected term.
The grant date fair value of the performance-based stock options was estimated using a Monte Carlo simulation model, resulting in a fair value of $4.91 per share and a derived service period of 1.8 years. We are recognizing the related stock-based compensation expense using the accelerated attribution method, which recognizes the fair value of each vesting tranche over the longer of the derived service period and contractual vesting period.
In connection with the CEO transition, we entered into separation and advisory agreements with our former CEO. The advisory agreement runs through August 15, 2025. During this period, he will continue to vest in his stock awards, and the exercise period of his outstanding vested stock options will be extended through August 3, 2026. This modification of his stock-based awards coupled with a non-substantive service period resulted in the recognition of $4.1 million of stock-based compensation expense during the six months ended June 30, 2025. The separation agreement also includes other benefits, which are not considered material.
Stock Options
We grant stock options at prices equal to the grant date fair value. Typically, these stock options expire ten years from the grant date and vest ratably over a four-year service period.
Stock option activity for the six months ended June 30, 2025 was as follows:
Number of
Shares 		Weighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term
(in Years)		Aggregate
Intrinsic
Value
Balance—December 31, 20249.1 $7.64 4.97$25.3 
Granted5.2 7.81 
Exercised(0.8)4.70 
Canceled(0.2)18.40 
Balance—June 30, 202513.3 $7.75 6.57$28.4 
Options vested7.1 $7.26 4.09$23.0 
RSUs and PSUs
RSUs have a service-based vesting condition, which is satisfied generally either (i) over four years with a 25% cliff vesting period after one year and 6.25% vesting each quarter thereafter for new hires, or (ii) over four years with 6.25% vesting each quarter for new grants to existing employees. The related stock-based compensation expense is recognized on a straight-line basis over the requisite service period.
In 2024 and 2025, we granted PSUs to certain executives under the 2021 Plan. PSU grants have both performance and service-based vesting conditions. The ultimate number of units that will vest is determined based on the achievement of annual revenue against a pre-established target (with defined threshold and maximum amounts ranging from 50% to 150% of target). If annual revenue is below the threshold amount, none of the PSUs will vest. If annual revenue is equal to or exceeds the threshold amount, 25% of the PSUs ultimately granted will vest after one year, and 6.25% of the remaining PSUs will vest quarterly over the subsequent three years. The fair value of each unit is determined on the grant date, and the related stock-based compensation expense is recognized using the accelerated attribution method. We evaluate the vesting conditions on a quarterly basis and recognize stock-based compensation expense if the achievement of the performance condition is probable.
RSU and PSU activity for the six months ended June 30, 2025 was as follows:
RSUsPSUs
Number of
Units		Weighted-Average
Grant Date Fair Value		Aggregate
Intrinsic
Value		Number of
Units		Weighted-Average
Grant Date Fair Value		Aggregate
Intrinsic
Value
Unvested balance—December 31, 202416.1 $12.82 $136.7 0.3 $14.36 $2.2 
Granted(1)
9.1 7.58 0.4 7.73 
Vested(2)
(3.6)14.60 (0.1)14.36 
Forfeited(3)
(2.3)12.71 (0.1)14.36 
Unvested balance—June 30, 202519.3 $10.03 $169.5 0.5 $9.34 $4.9 

(1) For PSUs, the amount presented as the number of units granted is based on the performance condition being achieved at the target level. Once the performance period is complete, the number of units that will vest may range from 0% to 150% of the target amount based on actual performance.

(2) Includes 0.2 million units or 83.85% of PSUs granted in March 2024, certified as vested by our Human Resources and Compensation Committee in February 2025 based on attainment against the pre-established annual revenue target.

(3) Forfeited PSUs include awards forfeited due to the failure to meet service-based vesting conditions and those that did not satisfy the performance-based vesting condition. The latter represents the difference between the PSUs granted in March 2024 at target and the number of units vested based on the attainment against the pre-established annual revenue target.
Stock-Based Compensation Expense
Stock-based compensation expense is classified in the Condensed Consolidated Statements of Operations as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Cost of revenue$0.6 $0.7 $1.3 $1.4 
Research and development8.9 10.9 17.5 21.9 
Sales and marketing5.5 8.5 10.4 16.4 
General and administrative8.8 9.9 20.4 18.2 
Restructuring related charges— — (1.6)— 
Total$23.8 $30.0 $48.0 $57.9 
We capitalized $2.0 million and $2.3 million of stock-based compensation related to our internal-use software during the three months ended June 30, 2025 and 2024 and $3.7 million and $4.1 million during the six months ended June 30, 2025 and 2024.
The table below presents unrecognized employee compensation cost related to unvested shares and the weighted-average period over which it is expected to be recognized:
June 30, 2025
Unrecognized Employee Compensation Cost Related to Unvested SharesWeighted-Average Period Over Which the Compensation Is Expected to Be Recognized
(in Years)
RSUs
$170.1 2.6
Common stock options25.9 3.3
ESPP Rights
3.9 0.9
PSUs
3.9 3.6
Common Stock Reserved for Issuance
The following table presents total shares of our common stock reserved for future issuance:
June 30, 2025December 31, 2024
RSUs outstanding19.316.1
Stock options outstanding13.39.1
PSUs outstanding0.50.3
Shares available for future grants20.922.5
Total shares of common stock reserved54.047.9
401(k) Plan
We have a 401(k) savings plan that provides for a discretionary employer-matching contribution. We made matching contributions of $0.3 million and $0.5 million to the plan for the three months ended June 30, 2025 and 2024 and $1.2 million and $1.4 million during the six months ended June 30, 2025 and 2024.