Stock-based Compensation

9 Months Ended

Oct. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

10. Stock-based Compensation

The following table presents the classification of stock-based compensation for the periods indicated:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
	(in thousands)
Stock-based compensation:
Cost of revenue	$	868	$	360	$	2,694	$	1,071
Research and development		17,898		18,741		54,809		53,775
Selling, general and administrative		8,643		9,000		25,293		27,205
Total stock-based compensation	$	27,409	$	28,101	$	82,796	$	82,051

As of October 31, 2023, approximately $1.4 million of stock-based compensation expense was accrued in accrued and other current liabilities in the condensed consolidated balance sheets. Total unrecognized compensation cost related to unvested stock options at October 31, 2023 was $8.3 million and is expected to be recognized over a weighted-average period of 1.45 years. Total unrecognized compensation cost related to unvested restricted stock units at October 31, 2023 was approximately $188.0 million and is expected to be recognized over a weighted-average period of 2.56 years.

On October 17, 2023, the Company entered into a separation agreement and release with Mr. Brian White, the Company’s Chief Financial Officer, associated with his retirement for his continued service through January 31, 2024 ("the separation date"). The agreement provides for acceleration of vesting of 24,559 shares of equity awards and compensation of $693,000 which is expected to be settled through the issuance of restricted stock units. As a result, the Company expects to recognize approximately $1.9 million of additional stock-based compensation expense through the separation date, of which $0.2 million has been recognized in the three months ended October 31, 2023.

The following table sets forth the weighted-average assumptions used to estimate the fair value of employee stock purchase plan awards for the periods indicated:

	Three Months Ended October 31,						Nine Months Ended October 31,
	2023			2022			2023			2022
Employee stock purchase plan awards:
Volatility		54	%		72	%		56	%		81	%
Risk-free interest rate		5.49	%		3.78	%		5.11	%		2.32	%
Expected term (years)		0.5			0.5		0.5			0.5
Dividend yield		0	%		0	%		0	%		0	%

The following table summarizes stock option activities for the period indicated:

	Option Outstanding
									Weighted-
							Total Intrinsic		Average
						Weighted-	Value Of		Remaining		Aggregate
				Weighted-		Average	Options		Contractual		Intrinsic
				Average		Grant-date	Exercised		Term		Value
	Shares			Exercise Price		Fair Value	(in thousands)		(in years)		(in thousands)
Outstanding at January 31, 2023		484,791		$	42.18
Exercised		(65,188	)		23.62		$	3,418
Forfeited		(926	)		42.59
Expired		(1,064	)		74.33
Outstanding at October 31, 2023		417,613			45.00					3.68	$	2,584
Exercisable at October 31, 2023		358,750		$	46.30					3.15	$	1,790

The intrinsic value of options outstanding and exercisable is calculated based on the difference between the fair market value of the Company’s ordinary shares on the reporting date and the exercise price. The closing price of the Company’s ordinary shares on October 31, 2023 was $44.99, as reported by The Nasdaq Global Select Market. The intrinsic value of exercised options is calculated based on the difference between the fair market value of the Company’s ordinary shares on the exercise date and the exercise price.

The following table summarizes restricted stock unit activities for the period indicated:

				Weighted-
				Average
				Grant-Date
	Shares			Fair Value
Unvested at January 31, 2023		2,573,359		$	86.81
Granted		1,190,375			71.77
Vested		(969,060	)		78.11
Forfeited		(128,201	)		76.31
Unvested at October 31, 2023		2,666,473		$	83.76

As of October 31, 2023, the aggregate intrinsic value of unvested restricted stock units was $120.0 million.