Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

A summary of stock option activity for the three months ended March 31, 2024 is as follows:


	Shares Under Option	Weighted- Average Exercise Price		Weighted- Average Contractual Life	Aggregate Intrinsic Value
	(in thousands)				(in thousands)
Outstanding at December 31, 2023	4,262	$	8.65
Granted	130	$	9.20

Expired	(7)	$	15.30

Outstanding at March 31, 2024	4,385	$	8.66	5.3 years	$	18,357
Exercisable at March 31, 2024	3,781	$	7.70	4.8 years	$	18,036

The weighted-average input assumptions used by the Company were as follows:

The weighted-average input assumptions used by the Company were as follows:


	Three Months Ended
	March 31, 2024		March 31, 2023
Performance period (in years)	3.0		3.0
Risk-free interest rate	4.05	%	4.19	%
Expected volatility of Magnite	87	%	94	%
Expected volatility of selected peer companies	55	%	64	%
Expected correlation coefficients of Magnite	0.59		0.62
Expected correlation coefficients of selected peer companies	0.47		0.54
Dividend yield	—	%	—	%

A summary of restricted stock unit ("RSU") activity for the three months ended March 31, 2024 is as follows:


	Number of Shares	Weighted-Average Grant Date Fair Value
	(in thousands)
Restricted stock units outstanding at December 31, 2023	11,450	$	12.63
Granted	6,673	$	9.20
Canceled	(216)	$	10.30
Vested and released	(2,363)	$	11.90
Restricted stock units outstanding and unvested at March 31, 2024	15,544	$	11.30

A summary of PSU activity for the three months ended March 31, 2024 is as follows:


	Number of Shares	Weighted-Average Grant Date Fair Value
	(in thousands)
Outstanding at December 31, 2023	967	$	18.17
Granted	486	$	11.76


Outstanding at March 31, 2024	1,453	$	16.03

Total stock-based compensation expense recorded in the condensed consolidated statements of operations was as follows:


	Three Months Ended
	March 31, 2024		March 31, 2023
	(in thousands)
Cost of revenue	$	500	$	468
Sales and marketing	8,236		7,405
Technology and development	5,416		5,446
General and administrative	6,679		5,825
Merger, acquisition, and restructuring costs	—		143
Total stock-based compensation expense	$	20,831	$	19,287