Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2014 |
Stock-Based Compensation | ' |
Stock-Based Compensation Expense | ' |
7. Stock-Based Compensation |
|
The Company included stock-based compensation expense related to all of its stock-based awards in various operating expense categories for the three months ended September 30, 2014 and 2013 and for the nine months ended September 30, 2014 and 2013 as follows: |
|
| | Three Months Ended | | Nine Months Ended | |
| | September 30, | | September 30, | |
| | 2014 | | 2013 | | 2014 | | 2013 | |
| | (unaudited) | |
Technology and development | | $ | 239 | | $ | 142 | | $ | 653 | | $ | 391 | |
Sales and marketing | | 342 | | 317 | | 1,063 | | 883 | |
General and administrative | | 607 | | 459 | | 1,578 | | 1,145 | |
Total stock-based compensation expense | | $ | 1,188 | | $ | 918 | | $ | 3,294 | | $ | 2,419 | |
|
Stock-Based Incentive Plans |
|
On June 26, 2013, the Company adopted the 2013 Equity Incentive Plan (the “2013 Plan”). The Company has stock option awards outstanding under five stock-based incentive plans as of September 30, 2014 and December 31, 2013, including, in each case, two plans that were assumed as part of the acquisition of ScanScout, Inc. The Company has restricted stock unit awards outstanding under its 2013 Plan. |
|
Stock Option Awards Outstanding |
|
The following table presents a summary of the Company’s stock option award activity under all plans and related information for the nine months ended September 30, 2014: |
|
| | Number of | | Weighted-Average | | | | | | | | |
Stock Option | | | | | | | |
| | Awards | | Exercise Price | | | | | | | | |
| | Outstanding | | Per Share | | | | | | | | |
Stock option awards outstanding as of December 31, 2013 | | 7,302,761 | | $ | 3.96 | | | | | | | | |
Stock option awards granted | | 1,006,094 | | $ | 3.88 | | | | | | | | |
Stock option awards forfeited | | (614,013 | ) | $ | 5.27 | | | | | | | | |
Stock option awards exercised | | (745,807 | ) | $ | 0.97 | | | | | | | | |
Stock option awards outstanding as of September 30, 2014 | | 6,949,035 | | $ | 4.16 | | | | | | | | |
| | | | | | | | | | | | |
Stock option awards vested and exercisable as of September 30, 2014 | | 4,446,692 | | $ | 3.66 | | | | | | | | |
|
Stock option awards are generally granted at the fair market value of the Company’s common stock on the date of grant, generally vest over periods up to four years, have a one year cliff with monthly vesting thereafter, and have terms not to exceed 10 years. The weighted-average grant date fair value of stock option awards granted during the nine months ended September 30, 2014 was $1.84 per share. The total intrinsic value of stock option awards exercised during the nine months ended September 30, 2014 and 2013 was $2,378 and $993, respectively. Cash proceeds received from stock option awards exercised for the nine months ended September 30, 2014 and 2013 was $727 and $492, respectively. |
|
There was $5,691 of total unrecognized compensation cost related to non-vested stock option awards granted under the Company’s equity incentive plans as of September 30, 2014. This cost is expected to be recognized over a weighted-average period of 2.87 years. |
|
Non-vested Restricted Stock Units (RSU) |
|
The following table presents a summary of the Company’s non-vested restricted stock unit award activity under all plans and related information for the nine months ended September 30, 2014: |
|
| | Number of | | Weighted-Average | | | | | | | | |
Shares of | | | | | | | |
| | Restricted | | Grant Date | | | | | | | | |
| | Stock Unit | | Fair Value | | | | | | | | |
| | Awards | | Per Share | | | | | | | | |
Non-vested restricted stock unit awards outstanding as of December 31, 2013 | | 70,119 | | $ | 9.63 | | | | | | | | |
Restricted stock unit awards granted | | 1,499,405 | | $ | 3.94 | | | | | | | | |
Restricted stock unit awards forfeited | | (137,347 | ) | $ | 5.37 | | | | | | | | |
Restricted stock unit awards exercised | | (506,819 | ) | $ | 3.78 | | | | | | | | |
Non-vested restricted stock unit awards outstanding as of September 30, 2014 | | 925,358 | | $ | 4.25 | | | | | | | | |
|
As of September 30, 2014, there was $3,346 of total unrecognized compensation cost related to non-vested restricted stock unit awards. This cost is expected to be recognized over a weighted-average period of 3.55 years. |
|
Employee Stock Purchase Plan |
|
On April 22, 2014, the Company’s board of directors adopted the 2014 Employee Stock Purchase Plan (“2014 ESPP”), which was approved by the Company’s stockholders at the 2014 annual meeting of stockholders on June 16, 2014. The 2014 ESPP allows eligible participants to purchase shares of the Company’s common stock generally at six-month intervals, or offering periods, at a price equal to 85% of the lower of (i) the fair market value at the beginning of the offering period or (ii) the fair market value at the end of the offering period, or the purchase date. |
|
Employees purchase shares of common stock through payroll deductions, which may not exceed 15% of their total base salary. The 2014 ESPP imposes certain limitations upon an employee’s right to purchase shares, including the following: (1) no employee may purchase more than 5,000 shares on any one purchase date and (2) no employee may purchase shares with a fair market value in excess of $25 in any calendar year. |
|
No more than 2,000,000 shares of common stock are reserved for future issuance under the 2014 ESPP. |
|
The Company began its first offering period in August 2014 and will end in February 2015. |
|
The fair value for each award under the 2014 ESPP was estimated at the beginning of the offering period using a Black-Scholes option pricing model and requires subjective assumptions, including, but not limited, to the expected term of the award and stock price volatility. The Company estimates the expected term of the shares of common stock granted under the 2014 ESPP based on the duration of the offering periods, which is six months. The Company estimates the volatility of its common stock on the date of grant based on the historic volatility of comparable companies in its industry. The Company selected the risk-free interest rate based on yields from United States Treasury zero-coupon issues with a term consistent with the expected term of the awards in effect at the time of grant. The Company has never declared or paid any cash dividends and has no current plan to do so. Consequently, it used an expected dividend yield of zero. For the nine months ended September 30, 2014, the following assumptions were used for awards issued under the 2014 ESPP: |
|
| | 2014 | | | | | | | | | | | |
| | (unaudited) | | | | | | | | | | | |
Volatility | | 33.82 | % | | | | | | | | | | |
Risk-free interest rate | | 0.05 | % | | | | | | | | | | |
Expected term (in years) | | 0.50 | % | | | | | | | | | | |
Dividend yield | | 0.00 | % | | | | | | | | | | |
|
As of September 30, 2014, there was $122 of total unrecognized compensation cost related to awards under the 2014 ESPP. This cost is expected to be recognized over a weighted-average period of less than one year. |
|