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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock units, performance restricted stock units, options to purchase Class A common stock and Employee Stock Purchase Plan ("ESPP") purchase rights. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (“the 2009 Plan”). The 2009 Plan was amended to provide that no further awards will be issued thereunder, and our board of directors and stockholders adopted and approved our 2014 Equity Incentive Plan (“the 2014 Plan” and, together with the 2009 Plan, “the Plans”).
Stock-Based Compensation Expense
Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
Three months ended March 31,
20242023
Cost of revenue
Subscription and support
$1,601 $1,072 
Professional services
727 633 
Operating expenses
Research and development
4,641 4,697 
Sales and marketing
8,038 6,958 
General and administrative
8,000 24,682 
Total
$23,007 $38,042 
Stock Options
The following table summarizes the option activity under the Plans for the three months ended March 31, 2024:




Options

Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term (Years)
Outstanding at December 31, 20231,211,619 $14.46 2.3
Granted— — 
Forfeited— — 
Expired— — 
Exercised(18,943)15.93 
Outstanding at March 31, 20241,192,676 $14.43 2.1
Exercisable at March 31, 20241,192,676 $14.43 2.1
Restricted Stock Units and Performance Restricted Stock Units
The following table summarizes the restricted stock unit and performance restricted stock unit activity under the Plans for the three months ended March 31, 2024:




Number of Shares
Weighted-
Average
Grant Date Fair Value
Unvested at December 31, 20232,198,411 $97.17 
Granted947,282 94.78 
Forfeited(39,340)101.42 
Vested(1)
(575,242)98.25 
Unvested at March 31, 20242,531,111 $96.02 
(1) During the three months ended March 31, 2024, in accordance with our Nonqualified Deferred Compensation Plan, no recipients elected to defer settlement of their vested restricted stock units and 14,840 shares were released from deferral.
Employee Stock Purchase Plan
During the three months ended March 31, 2024, 88,047 shares of common stock were purchased under the ESPP at a weighted-average price of $80.79 per share, resulting in cash proceeds of $7.1 million.
Compensation expense associated with ESPP purchase rights is recognized on a straight-line basis over the vesting period. At March 31, 2024, there was approximately $1.4 million of total unrecognized compensation expense related to the ESPP, which is expected to be recognized over a weighted-average period of 0.3 years.