Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Compensation Expense

Stock-based compensation expense recognized for the three and nine months ended September 30, 2023 and 2022, is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Costs of revenue	$	11	$	8	$	32	$	24
Sales and marketing	15		12		43		37
Research and development	23		18		69		52
General and administrative	22		19		62		54
Total Stock based compensation	$	71	$	57	$	206	$	167

Schedule of Stock Options Valuation Assumptions

The following table indicates the weighted-average assumptions made in estimating the fair value for the nine months ended September 30, 2023 and 2022:


	Nine Months Ended September 30,
	2023			2022
Risk-free interest rate	3.90		%	2.37		%
Expected term (in years)	6.1			6.1
Expected volatility	56.19		%	52.28		%
Expected dividend yield	—		%	—		%
Weighted-average fair value of common stock	$	18.01		$	17.20
Weighted-average grant date fair value	$	10.24		$	8.89

Schedule of Stock Option Activity

The following is a summary of stock option activity under our stock option plans for the nine months ended September 30, 2023:


(in millions, except share and per share amounts)	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (1)

Outstanding as of December 31, 2022	53,728,512	$	5.98	6.9	$	655
Granted	3,147,911	18.01
Exercised	(6,479,120)	3.07
Forfeited	(1,077,890)	13.09
Outstanding as of September 30, 2023	49,319,413	$	6.98	6.5	$	587


Options vested and expected to vest as of September 30, 2023	47,502,892	$	6.73	6.4	$	577
Options exercisable as of September 30, 2023	42,553,432	$	5.17	6.1	$	576

(1) The aggregate intrinsic value was determined as the difference between the closing price of the Class A common stock on the last trading day of September 2023, or the date of exercise, as appropriate, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their in-the-money options at period end.

Schedule of Restricted Stock Unit Activity

The following table summarizes RSU activity during the nine months ended September 30, 2023:


	RSU	Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2022	31,242,263	$	22.11
Granted	13,848,380	$	18.82
Vested	(7,759,507)	$	21.69
Forfeited	(2,109,436)	$	21.77
Unvested balance as of September 30, 2023	35,221,700	$	20.93