Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity (Tables)

v3.19.3.a.u2
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Summary of Stock Options Activity

The activity for stock options under the Company’s stock plans for the years ended December 31, 2019, 2018 and 2017 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

weighted-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

average

 

 

Per share

 

 

 

 

 

 

 

 

 

 

average

 

 

contractual

 

 

average

 

 

 

 

 

 

Price per

 

 

exercise

 

 

terms

 

 

intrinsic

 

 

Options

 

 

share

 

 

price

 

 

(in years)

 

 

value

 

Outstanding as of December 31, 2016

 

2,355,527

 

 

$0.60-$58.95

 

 

$

28.22

 

 

 

5.42

 

 

$

38.95

 

Granted

 

64,498

 

 

 

83.30

 

 

 

83.30

 

 

 

 

 

 

 

 

 

Exercised

 

(520,393

)

 

0.60-58.95

 

 

 

24.16

 

 

 

 

 

 

 

 

 

Forfeited

 

(63,173

)

 

24.52-58.95

 

 

 

43.74

 

 

 

 

 

 

 

 

 

Expired

 

(33

)

 

 

8.70

 

 

 

8.70

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2017

 

1,836,426

 

 

0.60-83.30

 

 

 

30.77

 

 

 

4.58

 

 

 

88.31

 

Vested and exercisable as of December 31, 2017

 

1,176,504

 

 

0.60-83.30

 

 

 

24.33

 

 

 

4.39

 

 

 

94.75

 

Vested and expected to vest as of December 31, 2017

 

1,792,871

 

 

0.60-83.30

 

 

 

30.50

 

 

 

4.58

 

 

 

88.58

 

Outstanding as of December 31, 2017

 

1,836,426

 

 

0.60-83.30

 

 

 

30.77

 

 

 

4.58

 

 

 

88.31

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

(708,319

)

 

0.60-58.95

 

 

 

24.22

 

 

 

 

 

 

 

 

 

Forfeited

 

(771

)

 

24.52-44.19

 

 

 

28.24

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2018

 

1,127,336

 

 

0.75-83.30

 

 

 

34.89

 

 

 

3.84

 

 

 

89.28

 

Vested and exercisable as of December 31, 2018

 

851,039

 

 

0.75-83.30

 

 

 

32.12

 

 

 

3.75

 

 

 

92.05

 

Vested and expected to vest as of December 31, 2018

 

1,109,280

 

 

0.75-83.30

 

 

 

34.75

 

 

 

3.84

 

 

 

89.42

 

Outstanding as of December 31, 2018

 

1,127,336

 

 

0.75-83.30

 

 

 

34.89

 

 

 

3.84

 

 

 

89.28

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercised

 

(109,291

)

 

0.75-58.95

 

 

 

28.45

 

 

 

 

 

 

 

 

 

Forfeited

 

(37,161

)

 

38.54-58.95

 

 

 

44.58

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2019

 

980,884

 

 

0.75-83.30

 

 

 

35.24

 

 

 

2.84

 

 

 

34.07

 

Vested and exercisable as of December 31, 2019

 

929,825

 

 

0.75-83.30

 

 

 

34.73

 

 

 

2.81

 

 

 

34.64

 

Vested and expected to vest as of December 31, 2019

 

977,589

 

 

$0.75-$83.30

 

 

$

35.21

 

 

 

2.84

 

 

$

34.11

 

Summary of Restricted Stock Activity

Stock Awards activity for the years ended December 31, 2019 and December 31, 2018 are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

grant

 

 

 

 

 

 

Performance

 

 

 

 

 

 

date fair

 

 

 

 

 

 

and

 

 

 

 

 

 

value

 

Restricted stock units

Time-based

 

 

time-based

 

 

Total

 

 

per share

 

Unvested restricted stock units as of December 31, 2016

 

 

 

 

 

 

 

 

 

$

 

Granted

 

42,028

 

 

 

13,109

 

 

 

55,137

 

 

 

90.05

 

Vested

 

 

 

 

 

 

 

 

 

 

 

Forfeited/canceled

 

 

 

 

 

 

 

 

 

 

 

Unvested restricted stock units as of December 31, 2017 (1)

 

42,028

 

 

 

13,109

 

 

 

55,137

 

 

$

90.05

 

Unvested and expected to vest restricted stock units outstanding as of

   December 31, 2017

 

 

 

 

 

 

 

 

 

48,589

 

 

$

89.95

 

Unvested restricted stock units as of December 31, 2017

 

42,028

 

 

 

13,109

 

 

 

55,137

 

 

$

90.05

 

Granted

 

31,877

 

 

 

 

 

 

31,877

 

 

 

143.50

 

Vested

 

(13,742

)

 

 

(4,370

)

 

 

(18,112

)

 

 

89.35

 

Forfeited/canceled

 

(1,574

)

 

 

 

 

 

(1,574

)

 

 

106.55

 

Unvested restricted stock units as of December 31, 2018 (1)

 

58,589

 

 

 

8,739

 

 

 

67,328

 

 

$

115.16

 

Unvested and expected to vest restricted stock units outstanding as of

   December 31, 2018

 

 

 

 

 

 

 

 

 

62,504

 

 

$

115.98

 

Unvested restricted stock units as of December 31, 2018

 

58,589

 

 

 

8,739

 

 

 

67,328

 

 

$

115.16

 

Granted

 

87,902

 

 

 

 

 

 

87,902

 

 

 

75.56

 

Vested

 

(24,680

)

 

 

(4,366

)

 

 

(29,046

)

 

 

123.53

 

Forfeited/canceled

 

(12,835

)

 

 

(1,239

)

 

 

(14,074

)

 

 

102.89

 

Unvested restricted stock units as of December 31, 2019 (1)

 

108,976

 

 

 

3,134

 

 

 

112,110

 

 

$

83.48

 

Unvested and expected to vest restricted stock units outstanding as of

   December 31, 2019

 

 

 

 

 

 

 

 

 

103,087

 

 

$

83.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

grant

 

 

 

 

 

 

Performance

 

 

 

 

 

 

date fair

 

 

 

 

 

 

and

 

 

 

 

 

 

value

 

Restricted stock awards

Time-based

 

 

time-based

 

 

Total

 

 

per share

 

Unvested restricted stock awards outstanding as of December 31, 2016

 

 

 

 

 

 

 

 

 

$

 

Granted

 

20,789

 

 

 

20,785

 

 

 

41,574

 

 

 

91.52

 

Vested

 

 

 

 

 

 

 

 

 

 

 

Forfeited/canceled

 

 

 

 

 

 

 

 

 

 

 

Unvested restricted stock awards outstanding as of December 31, 2017 (1)

 

20,789

 

 

 

20,785

 

 

 

41,574

 

 

$

91.52

 

Unvested and expected to vest restricted stock awards outstanding as of

   December 31, 2017

 

 

 

 

 

 

 

 

 

34,051

 

 

$

91.52

 

Unvested restricted stock awards outstanding as of December 31, 2017

 

20,789

 

 

 

20,785

 

 

 

41,574

 

 

$

91.52

 

Granted

 

22,645

 

 

 

33,964

 

 

 

56,609

 

 

 

130.89

 

Vested

 

(6,497

)

 

 

(6,928

)

 

 

(13,425

)

 

 

91.52

 

Forfeited/canceled

 

 

 

 

 

 

 

 

 

 

 

Unvested restricted stock awards outstanding as of December 31, 2018 (1)

 

36,937

 

 

 

47,821

 

 

 

84,758

 

 

$

115.80

 

Unvested and expected to vest restricted stock awards outstanding as of

   December 31, 2018

 

 

 

 

 

 

 

 

 

65,773

 

 

$

115.85

 

Unvested restricted stock awards outstanding as of December 31, 2018

 

36,937

 

 

 

47,821

 

 

 

84,758

 

 

$

115.80

 

Granted

 

54,853

 

 

 

40,166

 

 

 

95,019

 

 

 

86.10

 

Vested

 

(13,627

)

 

 

(15,732

)

 

 

(29,359

)

 

 

115.37

 

Forfeited/canceled

 

(7,093

)

 

 

(9,627

)

 

 

(16,720

)

 

 

109.11

 

Unvested restricted stock awards outstanding as of December 31, 2019 (1)

 

71,070

 

 

 

62,628

 

 

 

133,698

 

 

$

95.74

 

Unvested and expected to vest restricted stock awards outstanding as of

   December 31, 2019

 

 

 

 

 

 

 

 

 

79,473

 

 

$

90.31

 

 

(1)

Outstanding restricted stock units and restricted stock awards are based on the maximum payout of the targeted number of shares.

Summary of Stock-based Compensation Expense

Stock-based compensation

Stock-based compensation expense recognized for the years ended December 31, 2019, 2018 and 2017, was as follows:

 

(amounts in thousands)

Years ended December 31,

 

Stock-based compensation expense by type of award:

2019

 

 

2018

 

 

2017

 

Stock option plan awards

$

2,977

 

 

$

6,015

 

 

$

7,652

 

Restricted stock units and restricted stock awards

 

5,413

 

 

 

5,890

 

 

 

1,447

 

Employee stock purchase plan

 

739

 

 

 

885

 

 

 

541

 

Total stock-based compensation expense

$

9,129

 

 

$

12,790

 

 

$

9,640

 

For the years ended December 31, 2019, 2018 and 2017, respectively, stock-based compensation expense recognized under ASC 718, included in cost of revenue, research and development expense, sales and marketing expense, and general and administrative expense was as follows:

 

 

Years ended December 31,

 

(amounts in thousands)

2019

 

 

2018

 

 

2017

 

Cost of revenue

$

890

 

 

$

1,060

 

 

$

845

 

Research and development

 

1,100

 

 

 

1,314

 

 

 

1,015

 

Sales and marketing

 

1,755

 

 

 

2,355

 

 

 

1,558

 

General and administrative

 

5,384

 

 

 

8,061

 

 

 

6,222

 

Total stock-based compensation expense

$

9,129

 

 

$

12,790

 

 

$

9,640

 

Assumptions Applied to Estimate Fair Value of Stock Option Awards

The following table displays the assumptions that have been applied to estimate the fair value of stock option awards on the date of grant using the Black-Scholes option pricing model. During 2019 and 2018, the Company did not grant any stock option awards.

 

 

 

2017

Expected term (years)

 

3.54-4.00

Risk free interest rate

 

1.65-1.73%

Expected dividend yield

 

None

Volatility

 

41.61-42.15%

Assumptions Applied to Estimate Fair Value of Shares Issued Under ESPP

The following table displays the assumptions that have been applied to estimate the fair value of the Company’s shares to be issued under the ESPP using the Black-Scholes option pricing model.  

 

 

 

2019

 

 

2018

 

 

2017

 

Expected term (years)

 

 

0.50

 

 

 

0.50

 

 

 

0.50

 

Risk free interest rate

 

1.75-2.53%

 

 

1.63-2.46%

 

 

1.15-1.63%

 

Expected dividend yield

 

None

 

 

None

 

 

None

 

Volatility

 

44.00-47.00%

 

 

37.34-44.00%

 

 

42.35-45.34%