Quarterly report pursuant to Section 13 or 15(d)

Stock-based Expense

v3.20.1
Stock-based Expense
3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock-based Expense Stock-based Expense
Restricted Stock Awards
During the three months ended March 31, 2020, we granted 905,127 time-based restricted stock awards with a grant date weighted average fair value of $61.31 per share. These awards generally vest ratably over a period of twelve quarters with the first vesting on the first day of the second calendar quarter immediately following the grant date. A portion of these grants are associated with the Modern Message acquisition, and vest 5% each quarter over a period of eleven quarters with the first vesting on the first day of the second calendar quarter immediately following the grant date and with the remaining shares vesting during the twelfth quarter.
Market-based Restricted Stock Awards
During the three months ended March 31, 2020, we made grants of restricted stock that become eligible to vest based on the achievement of certain market-based conditions. Prior to July 1, 2023, these awards become Eligible Shares if the average closing price of our common stock equals or exceeds the triggers shown below for a period of twenty consecutive trading days:
Awards Granted
Stock Price Trigger
109,888
$73.60
109,888
$82.43
109,888
$94.21
109,960
$105.98

Shares that become Eligible Shares vest ratably over four calendar quarters, with the first vesting on the first day of the quarter immediately after becoming Eligible Shares. Vesting is conditional upon the recipient remaining a service provider, as defined in the plan document, to the Company through each applicable vesting date. The aggregate grant date fair value of these awards was $13.5 million.
We capitalized stock-based expense for software development costs of $0.4 million and $0.3 million during the three months ended March 31, 2020 and 2019, respectively.