Equity Award Plans
 3 Months Ended
Mar. 31, 2018
Disclosure Text Block  
Equity Award Plans

8. Equity Award Plans

Options to Purchase Series A Preferred Stock

The following table summarizes the Company’s Series A preferred stock option activity since December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

Weighted-

 

Weighted-

 

Aggregate

 

 

Number of

 

Average

 

Average Remaining

 

Intrinsic

 

    

Shares

    

Exercise Price

    

Contractual Term

    

Value

 

 

 

 

 

 

 

(in years)

 

 

 

Outstanding at December 31, 2017

 

4,689,576

 

$

0.98

 

5.18

 

$

10,539

Granted

 

195,312

 

 

3.60

 

 

 

 

 

Exercised

 

(185,063)

 

 

0.48

 

 

 

 

 

Forfeited

 

(32,010)

 

 

2.27

 

 

 

 

 

Outstanding at March 31, 2018

 

4,667,815

 

$

1.10

 

5.23

 

$

16,322

Vested and expected to vest at March 31, 2018

 

4,561,079

 

$

1.06

 

5.14

 

$

16,167

Options vested and exercisable at March 31, 2018

 

3,936,150

 

$

0.75

 

4.57

 

$

15,145

 

The assumptions that the Company used to determine the fair value of the Series A preferred stock options granted to employees and directors were as follows:

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

    

2018

    

2017

 

Risk-free interest rate

 

2.74

%  

2.17

%

Expected term (in years)

 

6.25

 

6.25

 

Expected volatility

 

43.85

%  

47.42

%

Expected dividend yield

 

0.0

%  

0.0

%

 

Options to Purchase Common Stock

The following table summarizes the Company’s common stock option activity since December 31, 2017 under all common stock option plans:

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Weighted-

    

Weighted-

 

Aggregate

 

 

Number of

 

Average

 

Average Remaining

 

Intrinsic

 

    

Shares

    

Exercise Price

    

Contractual Term

    

Value

 

 

 

 

 

 

 

(in years)

 

 

 

Outstanding at December 31, 2017

 

14,183,221

 

$

4.89

 

7.16

 

$

17,626

Granted

 

1,804,105

 

 

7.46

 

 

 

 

 

Exercised

 

(274,840)

 

 

3.55

 

 

 

 

 

Forfeited

 

(343,697)

 

 

5.68

 

 

 

 

 

Outstanding at March 31, 2018

 

15,368,789

 

$

5.19

 

7.32

 

$

90,459

Vested and expected to vest at March 31, 2018

 

14,698,656

 

$

5.14

 

7.25

 

$

87,329

Options vested and exercisable at March 31, 2018

 

7,986,329

 

$

4.27

 

5.98

 

$

54,358

 

The assumptions that the Company used to determine the fair value of the common stock options granted to employees and directors were as follows:

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

    

2018

 

2017

 

Risk-free interest rate

 

2.74

%  

2.17

%

Expected term (in years)

 

6.25

 

6.25

 

Expected volatility

 

43.85

%  

47.42

%

Expected dividend yield

 

0.0

%

0.0

%

 

Restricted Stock Unit (“RSU”) Activity

The following table summarizes the Company’s RSU activity since December 31, 2017 under all common stock option plans:

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Weighted‑

    

 

    

 

 

 

 

 

 

Average

 

Weighted‑

 

Aggregate

 

 

Number of

 

Grant Date Fair

 

Average Remaining

 

Intrinsic

 

 

Shares

 

Value Per Share

 

Contractual Term

 

Value

 

 

 

 

 

 

 

(in years)

 

 

 

Outstanding at December 31, 2017

 

 —

 

$

 —

 

 —

 

$

 —

Granted

 

394,500

 

 

7.46

 

  

 

 

  

Vested

 

 —

 

 

 —

 

  

 

 

  

Forfeited

 

 —

 

 

 —

 

  

 

 

  

Outstanding at March 31, 2018

 

394,500

 

$

7.46

 

1.86

 

$

4,371

RSUs vested and expected to vest at March 31, 2018

 

345,131

 

$

 —

 

1.78

 

$

3,824

RSUs vested and exercisable at March 31, 2018

 

 —

 

$

 —

 

 —

 

$

 —

 

In January 2018, the Company granted restricted stock units that may be settled for an aggregate of 394,500 shares of common stock to employees and directors as compensation for future services to the Company. The restricted stock units vest over terms of one to four years from date of grant, subject to the closing of the IPO of the Company’s common stock.

Stock-Based Compensation

Stock-based compensation expense was classified in the unaudited consolidated statements of operations and comprehensive loss as follows:

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

    

2018

    

2017

 

Cost of subscription, license and support revenue

 

$

136

 

$

75

 

Cost of services revenue

 

 

57

 

 

54

 

Sales and marketing expense

 

 

936

 

 

873

 

Research and development expense

 

 

564

 

 

619

 

General and administrative expense

 

 

696

 

 

586

 

 

 

$

2,389

 

$

2,207

 

 

As of March 31, 2018, total unrecognized compensation cost related to the unvested Series A preferred stock-based awards was $1,110, which is expected to be recognized over weighted-average periods of 2.34 years.

As of March 31, 2018, total unrecognized compensation cost related to the unvested common stock-based awards was $24,239, which is expected to be recognized over weighted-average periods of 2.70 years.

As of March 31, 2018, the Company had a total of 394,500 RSUs with a performance condition dependent upon the completion of an IPO. If an IPO had occurred as of March 31, 2018, the Company would have recorded stock-based compensation expense of $190 and the unrecognized compensation cost related to these performance-based RSUs would have been $2,740 to be amortized over a weighted-average period of approximately 3.36 years.