Stock-Based Compensation (Tables)
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6 Months Ended |
Jun. 30, 2023 |
| Share-Based Payment Arrangement [Abstract] |
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| Schedule of Costs Related to Company's Stock-based Compensation Plan |
Stock-based compensation expense by nature of function, as below, are included in the unaudited consolidated statements of income: | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | | 2023 | | 2022 | | 2023 | | 2022 | | Cost of revenues | $ | 3,341 | | | $ | 3,131 | | | $ | 6,907 | | | $ | 5,772 | | | General and administrative expenses | 3,210 | | | 5,305 | | | 9,035 | | | 9,700 | | | Selling and marketing expenses | 4,960 | | | 4,904 | | | 9,976 | | | 9,092 | | | Total | $ | 11,511 | | | $ | 13,340 | | | $ | 25,918 | | | $ | 24,564 | | | | | | | | | | Income tax benefit related to share-based compensation(1) | $ | 2,789 | | | $ | 3,216 | | | $ | 12,619 | | | $ | 6,022 | |
(1) Includes $190 and $14 during the three months ended June 30, 2023 and 2022, respectively, and $12,710 and $3,624 during the six months ended June 30, 2023 and 2022, respectively, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.
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| Schedule of Stock Options Activity |
Stock options activity under the Company’s stock-based compensation plans is shown below: | | | | | | | | | | | | | | | | | | | | | | | | | Number of Stock Options | | Weighted Average Exercise Price | | Aggregate Intrinsic Value | | Weighted Average Remaining Contractual Life (Years) | | Outstanding as of December 31, 2022 | 3,093 | | | $ | 27.62 | | | $ | 362 | | | 1.0 | | Granted | 331,336 | | | 150.75 | | | — | | | 10.0 | | Exercised | (3,093) | | | 27.62 | | | 384 | | | — | | | Forfeited | — | | | — | | | — | | | — | | | Outstanding as of June 30, 2023 | 331,336 | | | $ | 150.75 | | | $ | 103 | | | 10.0 | Vested and exercisable as of June 30, 2023 | — | | | $ | — | | | $ | — | | | — | | Weighted average grant date fair value of Stock options granted during the period | $ | 60.13 | | | | | | | |
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| Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions |
The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: | | | | | | | Three and Six months ended June 30, 2023 | | Dividend yield | — | | | Expected life (years) | 6.25 | | Risk free interest rate for expected life | 3.8 | % | | Volatility for expected life | 32.4 | % |
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| Restricted Stock Activity Under Company's Stock Plans |
Restricted stock unit activity under the SMP is shown below: | | | | | | | | | | | | | | Restricted Stock Units (SMP) | | | Number | | Weighted Average Fair Value | | Outstanding as of December 31, 2022 | 47,623 | | | $ | 124.76 | | | Granted | — | | | — | | | Vested | — | | | — | | | Forfeited | (4,177) | | | 124.76 | | | Outstanding as of June 30, 2023 | 43,446 | | | $ | 124.76 | |
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| Schedule of Restricted Stock Unit Activity |
Restricted stock unit activity under the Company’s stock-based compensation plans is shown below: | | | | | | | | | | | | | | Restricted Stock Units | | | Number | | Weighted Average Fair Value | | Outstanding as of December 31, 2022* | 923,126 | | | $ | 98.71 | | | Granted | 238,431 | | | 171.38 | | | Vested | (307,060) | | | 90.47 | | | Forfeited | (61,323) | | | 104.53 | | | Outstanding as of June 30, 2023* | 793,174 | | | $ | 123.29 | |
* As of June 30, 2023 and December 31, 2022 restricted stock units vested for which the underlying common stock is yet to be issued are 130,528 and 174,490 respectively.
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| Schedule of Performance Based Stock Awards Activity |
PRSU activity under the Company’s stock plans is shown below: | | | | | | | | | | | | | | | | | | | | | | | | | | Revenue Based PRSUs | | Market Condition Based PRSUs | | | Number | | Weighted Average Fair Value | | Number | | Weighted Average Fair Value | | Outstanding as of December 31, 2022 | 49,591 | | | $ | 119.99 | | | 178,712 | | | $ | 134.72 | | | Granted | 43,948 | | | 172.80 | | | 65,849 | | | 223.61 | | | Vested | — | | | — | | | — | | | — | | | Forfeited | (5,399) | | | 127.56 | | | (17,252) | | | 141.19 | | | Outstanding as of June 30, 2023 | 88,140 | | | $ | 145.86 | | | 227,309 | | | $ | 159.98 | |
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| Schedule of Share-Based Compensation, Employee Stock Purchase Plan, Activity |
Activity under the Company’s 2022 ESPP is shown below:
| | | | | | | | | | | | | | | | | Number of Shares | | Total Proceeds Received | | Shares available for issuance as of December 31, 2022 | | 800,000 | | | | Issuance of common stock related to the first offering period | | (7,636) | | $ | 1,060 | | | Shares available for issuance as of June 30, 2023 | | 792,364 | | | | Issuance of common stock related to the second offering period made subsequent to June 30, 2023 | | 26,099 | | $ | 3,800 | |
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| Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions |
The fair value of common stock to be issued under the ESPP was determined using the Black-Scholes option pricing model with the following assumptions: | | | | | | | Six months ended June 30, 2023 | | Dividend yield | — | | | Expected life (years) | 0.5 | | Risk free interest rate for expected life | 4.7 | % | | Volatility for expected life | 38.9 | % | | Discount for illiquidity | 10.3 | % |
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