v3.23.2
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
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,
 2023202220232022
Cost of revenues$3,341 $3,131 $6,907 $5,772 
General and administrative expenses3,210 5,305 9,035 9,700 
Selling and marketing expenses4,960 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.
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, 20223,093 $27.62 $362 1.0
  Granted331,336 150.75 — 10.0
  Exercised(3,093)27.62 384 — 
  Forfeited— — — — 
Outstanding as of June 30, 2023331,336 $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 
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 life3.8 %
Volatility for expected life32.4 %
Restricted Stock Activity Under Company's Stock Plans
Restricted stock unit activity under the SMP is shown below:
 Restricted Stock Units (SMP)
 NumberWeighted Average
Fair Value
Outstanding as of December 31, 202247,623 $124.76 
  Granted— — 
  Vested— — 
  Forfeited(4,177)124.76 
Outstanding as of June 30, 202343,446 $124.76 
Schedule of Restricted Stock Unit Activity
Restricted stock unit activity under the Company’s stock-based compensation plans is shown below:
 Restricted Stock Units
 NumberWeighted Average
Fair Value
Outstanding as of December 31, 2022*923,126 $98.71 
  Granted238,431 171.38 
  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.
Schedule of Performance Based Stock Awards Activity
PRSU activity under the Company’s stock plans is shown below:
 Revenue Based PRSUsMarket Condition Based PRSUs
 NumberWeighted Average
Fair Value
NumberWeighted Average
Fair Value
Outstanding as of December 31, 202249,591 $119.99 178,712 $134.72 
Granted43,948 172.80 65,849 223.61 
Vested— — — — 
Forfeited(5,399)127.56 (17,252)141.19 
Outstanding as of June 30, 202388,140 $145.86 227,309 $159.98 
Schedule of Share-Based Compensation, Employee Stock Purchase Plan, Activity
Activity under the Company’s 2022 ESPP is shown below:

Number of SharesTotal Proceeds Received
Shares available for issuance as of December 31, 2022800,000
Issuance of common stock related to the first offering period (7,636)$1,060 
Shares available for issuance as of June 30, 2023792,364
Issuance of common stock related to the second offering period made subsequent to June 30, 202326,099$3,800 
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 life4.7 %
Volatility for expected life38.9 %
Discount for illiquidity10.3 %