Stock-based Compensation

9 Months Ended

Oct. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

11. 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,
	2024		2023		2024		2023
	(in thousands)
Stock-based compensation:
Cost of revenue	$	899	$	868	$	2,339	$	2,694
Research and development		18,637		17,898		54,653		54,809
Selling, general and administrative		7,311		8,643		23,503		25,293
Total stock-based compensation	$	26,847	$	27,409	$	80,495	$	82,796

As of October 31, 2024, approximately $4.9 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, 2024 was $2.9 million and is expected to be recognized over a weighted-average period of 0.58 years. Total unrecognized compensation cost related to unvested restricted stock units at October 31, 2024 was approximately $176.9 million and is expected to be recognized over a weighted-average period of 2.55 years.

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,
	2024			2023			2024			2023
Employee stock purchase plan awards:
Volatility		56	%		54	%		47	%		56	%
Risk-free interest rate		4.55	%		5.49	%		4.97	%		5.11	%
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:

	Options 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, 2024		373,318		$	46.39
Exercised		(105,890	)		37.59		$	1,705
Forfeited		(63	)		111.50
Expired		(1,425	)		50.93
Outstanding at October 31, 2024		265,940			49.86					3.64	$	2,883
Exercisable at October 31, 2024		246,289		$	51.26					3.45	$	2,377

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, 2024 was $56.19, 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, 2024		2,432,640		$	82.54
Granted		1,431,816			62.12
Vested		(851,932	)		75.81
Forfeited		(151,000	)		118.07
Unvested at October 31, 2024		2,861,524		$	72.45

As of October 31, 2024, the aggregate intrinsic value of unvested restricted stock units was $160.8 million.