v3.25.2
Equity Incentive Plan
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plan
12. Equity Incentive Plan
2011 Equity Incentive Plan
The Company’s equity incentive plan allows the Company to grant restricted stock units (“RSUs”, which includes PRSUs), restricted stock, and stock options to employees and consultants of the Company and any of the Company’s parent, subsidiaries, or affiliates, and to the members of the Board of Directors.
PRSUs are granted primarily to executive officers and, in limited cases, to other senior-level employees. All PRSUs vest upon the attainment of certain financial criteria as established and approved by our Board of Directors. The performance metrics are measured over a one-year performance period. The number of shares that may be issued to the award recipients may be greater or lesser than the target award amount depending on actual performance achieved as compared to the performance targets set forth in the awards.

Compensation cost related to time-based restricted stock awards is measured as of the closing price on the date of grant and is expensed on a straight-line basis over the vesting period of the award. Compensation cost related to performance-based restricted stock unit awards is also measured as of the closing price on the date of grant but is expensed in accordance with ASC 718, Compensation—Stock Compensation, which requires an assessment of the probability of attainment of the performance target. Each quarter, the Company evaluates the most probable outcome of performance and adjusts the cumulative expense accordingly based on the forecasted achievement level. Compensation expense is recognized over the vesting period of the PRSU award using the graded-vesting attribution method and shares attained over target upon vesting will be recognized as awards granted in the period.
Restricted Stock Units, Including PRSUs
RSU activity for the periods presented is as follows:
Number of SharesWeighted
average grant
date fair value
Balance as of December 31, 20245,091,601 $19.22 
RSUs granted1,707,016 38.21 
RSUs vested and settled(1,270,271)19.23 
RSUs cancelled/forfeited(311,902)20.22 
Balance as of June 30, 20255,216,444 $26.03 
As of June 30, 2025, there was unrecognized compensation cost for outstanding RSUs of $120.9 million to be recognized over a period of approximately 2.9 years.
The number of RSUs vested and settled includes shares of common stock that the Company withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.
Stock Options
The following summary of stock option activity for the periods presented is as follows (in thousands, except share and per share data):
Number of Shares
Underlying
Outstanding Options		Weighted
Average
Exercise Price
per Share		Weighted
Average
Remaining
Contractual Life
(in Years)		Aggregate
Intrinsic Value
Balance as of December 31, 20245,673,947 $6.16 3.9$199,239 
Options granted — — 
Options exercised(857,159)5.43 
Options cancelled/forfeited (669)5.71 
Balance as of June 30, 20254,816,119 6.05 3.2285,104 
Exercisable as of June 30, 20254,613,599 $5.79 3.2$274,326 
As of June 30, 2025, there was total unrecognized compensation cost for outstanding stock options of $1.1 million to be recognized over a period of approximately 0.5 years.
Stock-based Compensation
Stock-based compensation expense was allocated as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Cost of revenue
Cost of subscription revenue
$716 $203 $884 $362 
Cost of hardware revenue
438 224 673 408 
Cost of other revenue
— — — 4 
Total cost of revenue1,154 427 1,557 774 
Research and development7,780 6,467 13,490 11,793 
Sales and marketing2,047 774 3,373 1,406 
General and administrative4,247 3,118 6,698 5,074 
Total stock-based compensation, net of amounts capitalized$15,228 $10,786 $25,118 $19,047 
There was $0.3 million and $0.6 million of capitalized stock-based compensation costs recognized during the three and six months ended June 30, 2025, respectively. There was $0.4 million of capitalized stock-based compensation costs recognized during both the three and six months ended June 30, 2024.