
						Six Months Ended July 31, 2020

Opening balance						23,050,732
Shares authorized⁽¹⁾						6,617,320
Options and RSUs granted						(3,491,910)
Cancelled shares						944,366
Ending balance						27,120,508

(1) Reflects an automatic increase to the number of shares of Common Stock reserved for issuance pursuant to future awards under the 2019 Plan, which annual increase is provided for in the 2019 Plan.

The stock-based compensation expense by line item in the unaudited condensed consolidated statements of operations is summarized as follows (in thousands):


	Three Months Ended July 31,						Six Months Ended July 31,
	2020		2019		2020		2019
Cost of subscription revenue	$	946	$	869	$	1,855	$	1,156
Cost of professional services revenue	2,719		2,690		5,402		3,247
Research and development expense	4,746		3,658		16,219		5,241
Sales and marketing expense	8,745		8,475		18,081		9,968
General and administrative expense	7,478		19,487		14,881		23,529
Total stock-based compensation	$	24,634	$	35,179	$	56,438	$	43,141


	Options Outstanding
	Number of Shares	Average Exercise Price per Share		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Balance as of January 31, 2020	41,935,173	$	5.47	7.29	$	954,124

Options exercised	(9,853,483)	4.13			262,410
Options cancelled or expired	(569,330)	6.71
Balance as of July 31, 2020	31,512,360	$	5.87	7.20	$	783,580
Exercisable as of July 31, 2020	20,217,598	$	5.48	6.75	$	510,437

The weighted-average grant-date fair value of options granted during the six months ended July 31, 2020 and 2019 was nil and $5.38 per share, respectively. The grant date fair value of stock options vested during the six months ended July 31, 2020 and 2019 was $12.7 million and $13.4 million, respectively.

As of July 31, 2020, total unrecognized compensation expense related to stock options was $31.8 million and will be recognized over a weighted-average remaining recognition period of 2.0 years.


	Restricted Stock Units				Performance Based Restricted Stock Units
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Balance as of January 31, 2020	9,019,681	$	16.07	826,333	$	13.95
Stock units granted	3,141,965	22.84		349,945	22.30
Stock units vested	(2,762,734)	13.86		—	—
Stock units cancelled and expired	(307,836)	21.85		(67,200)	13.41
Balance as of July 31, 2020	9,091,076	$	18.88	1,109,078	$	16.62

As of July 31, 2020, total unrecognized compensation expense related to the RSUs was $131.7 million and will be recognized over a weighted-average remaining period of 2.3 years. Certain RSUs, in addition to the satisfaction of the service-based performance vesting conditions, also require the fulfillment of performance vesting conditions which include subscription revenue growth targets and a combination of subscription revenue growth and operating margin targets.

The fair value of each Employee Stock Purchase Plan (ESPP) share is estimated on the enrollment date of the offering period using the Black-Scholes-Merton option-pricing model and the assumptions noted in the following table:


						July 31, 2020
Risk-free interest rate						0.3%
Expected volatility						45%
Expected term (in years)						0.5
Expected dividend rate						—

The fair value of stock purchase rights granted under the ESPP during the six-month period was $5.48 per share. As of July 31, 2020, the Company had $0.7 million of unrecognized compensation expense related to ESPP subscriptions that will be recognized over 0.1 years.