Common Stock and Stockholders' Equity

6 Months Ended

Sep. 30, 2019

Common Stock and Stockholders’ Equity

Employee Stock Purchase Plan—The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Employee Stock Purchase Plan (the “ESPP”), which became effective in December 2014. The ESPP initially reserved and authorized the issuance of up to 1,000,000 shares of common stock. The ESPP provides that the number of shares reserved and available for issuance under the ESPP automatically increases each April, beginning on April 1, 2015, by the lesser of 500,000 shares, 1% of the number of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. For the six months ended September 30, 2019, 117,115 shares of common stock were purchased under the ESPP. For the six months ended September 30, 2018, 82,851 shares of common stock were purchased under the ESPP. Stock-based compensation expense recognized related to the ESPP was $1.5 million and $1.1 million for the three months ended September 30, 2019 and 2018, respectively, and $2.7 million and $1.5 million for the six months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, there were 2,656,874 shares available for issuance under the ESPP.

2008 Equity Incentive Plan—The Company’s board of directors adopted, and the Company’s stockholders approved, the 2008 Equity Incentive Plan, or the 2008 Plan, in February 2008. The 2008 Plan was terminated in connection with the Company’s initial public offering (“IPO”), and accordingly, no shares are available for future issuance under this plan. The 2008 Plan continues to govern outstanding awards granted thereunder.

2014 Equity Incentive Plan—The Company’s board of directors adopted, and the Company’s stockholders approved, the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), which became effective in December 2014. The 2014 Plan serves as the successor to the Company’s 2008 Plan. The 2014 Plan initially reserved and authorized the issuance of 5,000,000 shares of the Company’s common stock. Additionally, shares not issued or subject to outstanding grants under the 2008 Plan upon its termination became available under the 2014 Plan, resulting in a total of 5,184,878 available shares under the 2014 Plan as of the effective date of the 2014 Plan. Pursuant to the terms of the 2014 Plan, any shares subject to outstanding stock options or other stock awards under the 2008 Plan that (i) expire or terminate for any reason prior to exercise or settlement, (ii) are

forfeited because of the failure to meet a contingency or condition required to vest such shares or otherwise return to the Company or (iii) are reacquired, withheld (or not issued) to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a stock award will become available for issuance pursuant to awards granted under the 2014 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan automatically increases each April 1, beginning on April 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock shares issued and outstanding on the immediately preceding March 31, or such lesser number of shares as determined by the Company’s board of directors. As of September 30, 2019, there were 13,162,855 shares available for issuance under the 2014 Plan.

The following table summarizes the Company’s stock option and RSU award activities for the six months ended September 30, 2019 (in thousands, except exercise price, contractual term and fair value information):


	Options Outstanding										RSUs Outstanding
	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value		Number of Shares	Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding - April 1, 2019	2,751	$	35.10	6.3	$	176,002	2,419	$	76.34	3.0	$	238,734
Stock options granted	273	91.94
RSUs granted							521	82.25
Stock options exercised	(121)	25.22			7,872
RSUs vested							(432)	61.85
Stock options canceled/forfeited	(43)	67.87
RSUs canceled/forfeited							(212)	75.54
Outstanding - September 30, 2019	2,860	$	40.45	5.6	$	85,051	2,296	$	80.48	2.7	$	141,140

Stock-Based Compensation Expense—Stock-based compensation expense was $23.4 million and $13.8 million for the three months ended September 30, 2019 and 2018, respectively, and $44.5 million and $24.9 million for the six months ended September 30, 2019 and 2018, respectively. Cost of revenue, research and development, sales and marketing, and general and administrative expenses were as follows (in thousands):


	Three Months Ended September 30,						Six Months Ended September 30,
	2019		2018		2019		2018
Cost of revenue	$	1,300	$	895	$	2,522	$	1,588
Research and development	7,434		3,858		14,462		7,121
Sales and marketing	10,533		6,028		19,592		10,818
General and administrative	4,091		3,052		7,970		5,333
Total stock-based compensation expense	$	23,358	$	13,833	$	44,546	$	24,860

As of September 30, 2019, unrecognized stock-based compensation cost related to outstanding unvested stock options was $26.6 million, which is expected to be recognized over a weighted-average period of approximately 2.7 years. As of September 30, 2019, unrecognized stock-based compensation cost related to outstanding unvested stock units was $166.8 million, which is expected to be recognized over a weighted-average period of approximately 2.8 years.