Equity Incentive Plans and Employee Stock Purchase Plan

9 Months Ended

Oct. 31, 2023

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans and Employee Stock Purchase Plan

Equity Incentive Plan and Employee Stock Purchase Plan

Equity Incentive Plan

The Company adopted the 2008 Stock Incentive Plan (as amended, the “2008 Plan”) and the 2016 Equity Incentive Plan (as amended the “2016 Plan”), primarily for the purpose of granting stock-based awards to eligible employees, directors and consultants, including stock options, restricted stock units (“RSUs”) and other stock-based awards. With the establishment of the 2016 Plan in December 2016, all shares available for grant under the 2008 Plan were transferred to the 2016 Plan. The Company no longer grants any stock-based awards under the 2008 Plan and any shares underlying stock options canceled under the 2008 Plan will be automatically transferred to the 2016 Plan.

Stock Options

The 2016 Plan provides for the issuance of incentive stock options to eligible employees and non-statutory stock options to eligible employees, directors or consultants. The Company’s Board of Directors, or a committee thereof, determines the vesting schedule for all equity awards. Stock option awards generally vest over a period of four years with 25% vesting on the one-year anniversary of the award and the remainder vesting monthly over the next 36 months of the grantee’s service to the Company. There were no stock options granted during the nine months ended October 31, 2023.

The following table summarizes stock option activity for the nine months ended October 31, 2023 (in thousands, except share and per share data and years):

	Shares	Weighted-Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
Balance - January 31, 2023	1,789,813	$	7.60	3.3	$	313,980
Stock options exercised	(659,091)	7.31
Stock options forfeited and expired	(547)	5.81
Balance - October 31, 2023	1,130,175	$	7.78	2.7	$	380,657
Vested and exercisable - January 31, 2023	1,789,813	$	7.60	3.3	$	313,980
Vested and exercisable - October 31, 2023	1,130,175	$	7.78	2.7	$	380,657

Restricted Stock Units

The 2016 Plan provides for the issuance of RSUs to eligible employees, directors and consultants. RSUs granted to new employees generally vest over a period of four years with 25% vesting on the one-year anniversary of the vesting start date and the remainder vesting quarterly over the next 12 quarters, subject to the grantee’s continued service to the Company. RSUs granted to existing employees generally vest quarterly over a period of four years, subject to the grantee’s continued service to the Company.

The following table summarizes RSU activity for the nine months ended October 31, 2023:

	Shares	Weighted-Average Grant Date Fair Value per RSU
Unvested - January 31, 2023	3,480,206	$	288.58
RSUs granted	1,922,364	240.62
RSUs vested	(1,256,300)	254.88
RSUs forfeited and canceled	(410,853)	294.93
Unvested - October 31, 2023	3,735,417	$	286.22

2017 Employee Stock Purchase Plan

In October 2017, the Company’s Board of Directors adopted, and stockholders approved, the 2017 Employee Stock Purchase Plan (the “2017 ESPP”). Subject to any plan limitations, the 2017 ESPP allows eligible employees to contribute, normally through payroll deductions, up to 15% of their earnings for the purchase of the Company’s common stock at a discounted price per share. In June 2023, the Company issued 114,508 shares of its common stock under the 2017 ESPP. The Company’s current offering period began on June 16, 2023 and is expected to end December 15, 2023.

Stock-Based Compensation Expense

Total stock-based compensation expense recognized in the Company’s unaudited condensed consolidated statements of operations is as follows (in thousands):

	Three Months Ended October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
Cost of revenue—subscription	$	6,018	$	5,016	$	17,607	$	14,492
Cost of revenue—services	3,200		2,827		9,490		7,599
Sales and marketing	40,585		38,352		118,567		104,539
Research and development	50,759		41,458		143,238		117,583
General and administrative	15,267		11,545		44,194		35,105
Total stock-based compensation expense	$	115,829	$	99,198	$	333,096	$	279,318