Stockholders' Equity

3 Months Ended

Apr. 30, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stock Option Activity

A summary of stock option activity for the three months ended April 30, 2020 is as follows: 

	Number of shares		Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Options outstanding at January 31, 2020	13,448,026		$	40.64	5.4	$	1,426,502,005
Options granted	1,264,192		172.55
Options exercised	(645,515	)	15.92
Options forfeited/cancelled	(44,252	)	84.44
Options outstanding at April 30, 2020	14,022,451		$	53.40	5.6	$	1,926,725,769
Options vested and exercisable at April 30, 2020	6,759,113		$	11.99	3.3	$	1,208,620,921
Options vested and exercisable at April 30, 2020 and expected to vest thereafter	14,022,451		$	53.40	5.6	$	1,926,725,769

 

The options granted during the three months ended April 30, 2020 reflects grants predominantly made in connection with our annual performance review cycle. The weighted average grant-date fair value of options granted was $68.56 for the three months ended April 30, 2020.

As of April 30, 2020, there was $265 million in unrecognized compensation cost related to unvested stock options granted under the 2012 Equity Incentive Plan and 2013 Equity Incentive Plan (2013 EIP). This cost is expected to be recognized over a weighted average period of 3.8 years.

As of April 30, 2020, we had authorized and unissued shares of common stock sufficient to satisfy exercises of stock options.

The total intrinsic value of options exercised was approximately $90 million for the three months ended April 30, 2020.

Restricted Stock Units

A summary of restricted stock unit (RSU) activity for the three months ended April 30, 2020 is as follows:

	Unreleased restricted stock units		Weighted  average grant date fair value
Balance at January 31, 2020	1,818,622		$	95.23
RSUs granted	373,055		171.58
RSUs vested	(289,471	)	75.03
RSUs forfeited/cancelled	(29,608	)	74.92
Balance at April 30, 2020	1,872,598		$	113.90

As of April 30, 2020, there was a total of $196 million in unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 2.5 years. The total intrinsic value of RSUs vested was $43 million for the three months ended April 30, 2020.

Stock-Based Compensation

The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented:

	Three months ended April 30,
	2020	2019
Volatility	39% - 41%	41%
Expected term (in years)	6.25 - 7.25	5.75 - 6.35
Risk-free interest rate	0.51% - 1.43%	2.36% - 2.52%
Dividend yield	—%	—%