Stockholders' Equity and Stock-Based Compensation (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Stockholders Equity And Stock Based Compensation [Abstract] |
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| Summary of Number of Shares of Common Stock Reserved |
The number of shares of common stock reserved for the vesting of RSUs, PSUs, and exercise of common stock options are as follows (in thousands):
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December 31, 2024 |
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|
December 31, 2023 |
|
RSUs |
|
|
1,475 |
|
|
|
1,902 |
|
PSUs |
|
|
71 |
|
|
|
58 |
|
Common stock options |
|
|
302 |
|
|
|
470 |
|
|
|
|
1,848 |
|
|
|
2,430 |
|
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| Schedule of Stock Compensation Expense by Award Type |
The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations:
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Year Ended December 31, |
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2024 |
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2023 |
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|
2022 |
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|
|
( in thousands) |
|
Options |
|
$ |
7,801 |
|
|
$ |
11,555 |
|
|
$ |
9,713 |
|
RSUs |
|
|
458,027 |
|
|
|
391,810 |
|
|
|
253,838 |
|
PSUs |
|
|
24,129 |
|
|
|
13,502 |
|
|
|
— |
|
ESPP |
|
|
14,813 |
|
|
|
15,404 |
|
|
|
12,298 |
|
Total stock-based compensation |
|
$ |
504,770 |
|
|
$ |
432,271 |
|
|
$ |
275,849 |
|
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| Effect of Stock-Based Compensation on Income by Line Item |
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2024 |
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2023 |
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|
2022 |
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|
(in thousands) |
|
Cost of revenue, subscription |
|
$ |
23,613 |
|
|
$ |
12,652 |
|
|
$ |
9,076 |
|
Cost of revenue, service |
|
|
4,339 |
|
|
|
4,958 |
|
|
|
4,393 |
|
Research and development |
|
|
243,164 |
|
|
|
198,953 |
|
|
|
107,517 |
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Sales and marketing |
|
|
145,778 |
|
|
|
140,362 |
|
|
|
107,640 |
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General and administrative |
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|
87,876 |
|
|
|
75,346 |
|
|
|
47,223 |
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Total stock-based compensation |
|
$ |
504,770 |
|
|
$ |
432,271 |
|
|
$ |
275,849 |
|
|
| Schedule of Assumptions Used for Estimation of Fair Value of Options Granted to Employees |
Stock Options —The fair value of employee options is estimated on the date of each grant using the Black-Scholes option-pricing model with the following assumptions. There were no options granted in 2024.
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Year Ended December 31, |
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2023 |
|
|
2022 |
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Risk-free interest rate (%) |
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3.46-4.37 |
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|
1.70-3.00 |
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Expected term (years) |
|
5.3-6.0 |
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|
5.1-6.4 |
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Volatility (%) |
|
52.72-55.06 |
|
|
43.19-50.58 |
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Expected dividends |
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|
— |
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|
|
— |
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| Summary of Stock Option Activity |
The stock option activity for the year ended December 31, 2024 is as follows:
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Shares (in
thousands) |
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Weighted-
Average
Exercise
Price |
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Weighted-
Average
Remaining
Life (in years) |
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|
Aggregate
Intrinsic
Value
(in thousands) |
|
Outstanding—January 1, 2024 |
|
|
470 |
|
|
$ |
212.69 |
|
|
|
5.2 |
|
|
$ |
173,186 |
|
Granted |
|
|
— |
|
|
|
— |
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|
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|
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Exercised |
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|
(149 |
) |
|
|
156.04 |
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Forfeited/expired |
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(19 |
) |
|
|
426.69 |
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|
|
|
|
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Outstanding—December 31, 2024 |
|
|
302 |
|
|
$ |
226.61 |
|
|
|
4.7 |
|
|
$ |
141,860 |
|
Options vested or expected to vest—December 31, 2024 |
|
|
302 |
|
|
$ |
226.61 |
|
|
|
4.7 |
|
|
$ |
141,860 |
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Options exercisable—December 31, 2024 |
|
|
260 |
|
|
$ |
199.41 |
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|
|
4.2 |
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|
$ |
129,281 |
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Year Ended December 31, |
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|
2024 |
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|
2023 |
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|
2022 |
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(in thousands, except per share amounts) |
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Total intrinsic value of options exercised |
|
$ |
67,545 |
|
|
$ |
23,105 |
|
|
$ |
60,940 |
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Total estimated grant date fair value of options vested |
|
$ |
8,980 |
|
|
$ |
11,565 |
|
|
$ |
7,185 |
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Weighted-average grant date fair value per share of options granted |
|
n/a |
|
|
$ |
197.31 |
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|
$ |
217.05 |
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|
| Summary of Activity Related to RSUs |
The following table summarizes the activity related to RSUs for the year ended December 31, 2024:
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Shares
(in thousands) |
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|
Weighted-Average Grant Date Fair Value Per Share |
|
Unvested and outstanding at January 1, 2024 |
|
|
1,902 |
|
|
$ |
415.06 |
|
Granted |
|
|
866 |
|
|
|
596.51 |
|
Vested |
|
|
(1,062 |
) |
|
|
432.18 |
|
Forfeited |
|
|
(231 |
) |
|
|
443.60 |
|
Unvested and outstanding at December 31, 2024 |
|
|
1,475 |
|
|
$ |
504.89 |
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|
Year Ended December 31, |
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|
|
2024 |
|
|
2023 |
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|
2022 |
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|
(in thousands, except per share amounts) |
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Total intrinsic value of RSUs vested |
|
$ |
616,970 |
|
|
$ |
481,196 |
|
|
$ |
303,359 |
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Total grant date fair value of RSUs vested |
|
$ |
458,913 |
|
|
$ |
383,175 |
|
|
$ |
242,988 |
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Weighted-average grant date fair value per share of RSUs granted |
|
$ |
596.51 |
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|
$ |
411.64 |
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|
$ |
404.84 |
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|
| Summary of Activity Related to PSUs |
The following table summarizes the activity related to PSUs for the year ended December 31, 2024:
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|
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|
Shares
(in thousands) |
|
|
Weighted-Average Grant Date Fair Value Per Share |
|
Unvested and outstanding at January 1, 2024 |
|
|
58 |
|
|
$ |
383.13 |
|
Granted |
|
|
50 |
|
|
|
633.80 |
|
Vested |
|
|
(34 |
) |
|
|
383.13 |
|
Forfeited |
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|
(3 |
) |
|
|
633.80 |
|
Unvested and outstanding at December 31, 2024 |
|
|
71 |
|
|
$ |
548.13 |
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| Schedule of Assumptions Used for Estimation of Fair Value of Employee Options |
The fair value of the purchase rights under the ESPP is estimated using the Black-Scholes option-pricing model with the following assumptions:
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Year Ended December 31, |
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|
2024 |
|
|
2023 |
|
|
2022 |
|
Risk-free interest rate (%) |
|
4.43-5.39 |
|
|
4.65-5.44 |
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|
0.10-4.65 |
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Expected term (years) |
|
|
0.50 |
|
|
|
0.50 |
|
|
|
0.50 |
|
Volatility (%) |
|
34.88-38.83 |
|
|
38.83-76.02 |
|
|
39.85-76.02 |
|
Expected dividends |
|
|
— |
|
|
|
— |
|
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|
— |
|
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| Summary of Activity Related to Employee Stock Purchase Plan |
The following table summarizes the activity related to ESPP:
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Shares Issued
(in thousands) |
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|
Weighted-
Average
Purchase Price |
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|
Total Cash
Proceeds
(in thousands) |
|
2024 |
|
|
109 |
|
|
$ |
469.73 |
|
|
$ |
50,993 |
|
2023 |
|
|
127 |
|
|
$ |
319.70 |
|
|
$ |
40,479 |
|
2022 |
|
|
121 |
|
|
$ |
272.72 |
|
|
$ |
33,046 |
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