Stock-Based Compensation

12 Months Ended

Apr. 30, 2022

Share-based Payment Arrangement [Abstract]

On June 29, 2012, the Company adopted the 2012 Incentive Plan. The 2012 Incentive Plan provided for the grant of stock-based awards to employees, non-employee directors, and other service providers of the Company. The 2012 Incentive Plan was terminated in December 2020 in connection with the IPO but continues to govern the terms of outstanding awards that were granted prior to the termination of the 2012 Incentive Plan. No further equity awards will be granted under the 2012 Incentive Plan. With the establishment of the 2020 Equity Incentive Plan (the “2020 Incentive Plan”) as further discussed below, upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class A common stock underlying outstanding stock-based awards granted under the 2012 Incentive Plan, an equal number of shares of Class A common stock will become available for grant under the 2020 Plan (the “Returning Shares”).

On November 27, 2020, the Company’s board of directors adopted, and its stockholders approved, the 2020 Incentive Plan, which became effective in connection with the IPO. The 2020 Incentive Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, RSU awards, performance awards and other equity awards. As of April 30, 2022, the number of shares of Class A common stock available for issuance was 16,232,017. The number of shares of Class A common stock reserved for issuance under the 2020 Incentive Plan is subject to automatic evergreen increases annually through (and including) May 1, 2030 pursuant to the terms of the 2020 Incentive Plan.

On November 27, 2020, the Company’s board of directors also adopted, and its stockholders also approved, the 2020 Employee Stock Purchase Plan (the “2020 ESPP”), which became effective immediately prior to the IPO. The 2020 ESPP authorizes the issuance of shares of Class A common stock pursuant to purchase rights granted to employees. A total of 3,000,000 shares of Class A common stock were initially reserved for future issuance under the 2020 ESPP. The number of shares of Class A common stock reserved for issuance under the 2020 ESPP is subject to automatic evergreen increases annually through (and including) May 1, 2030 pursuant to the terms of the 2020 ESPP. The 2020 ESPP permits participants to purchase shares of Class A common stock in an amount not exceeding 15% of their earnings during the relevant offering period. The offering dates and purchase dates for the 2020 ESPP are determined at the discretion of the Company’s board of directors. As of April 30, 2022, the Company had not yet launched its 2020 ESPP.

Stock Options to Acquire Class A Common Stock

These stock options generally expire 10 years from the date of grant, or earlier if services are terminated. Generally, each stock option for common stock is subject to a vesting schedule such that one fifth of the award vests after the first-year anniversary and one-sixtieth of the award vests each month thereafter over the remaining four years, subject to continuous service.

A summary of the Company’s option activity during the periods indicated was as follows:


	Options Outstanding
	Number of Stock Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
	(in thousands)				(in thousands)
Balance as of April 30, 2020	32,877	$	3.48	8.03	$	116,962
Options granted	14,504	11.50
Options exercised	(5,799)	2.90
Options cancelled	(3,095)	5.89
Balance as of April 30, 2021	38,487	6.39		7.98	$	2,304,714
Options granted	6,327	45.41
Options exercised	(4,651)	4.61
Options cancelled	(3,825)	15.29
Balance as of April 30, 2022	36,338	$	12.44	7.34	$	165,436
Vested and exercisable as of April 30, 2022	16,300	$	5.63	6.39	$	185,103
Vested and expected to vest as of April 30, 2022(1)	36,712	$	12.44	7.34	$	167,138

(1) The number of options vested and expected to vest as of April 30, 2022 includes early exercised, unvested Class A common stock. Refer to Note 9. Stockholders’ Equity for more information.

The weighted average grant date fair value of options granted during the fiscal years ended April 30, 2022, 2021 and 2020 was $19.15, $6.17 and $2.22, respectively. Aggregate intrinsic value represents the difference between the estimated fair value of the underlying common stock and the exercise price of outstanding in-the-money options. The total intrinsic value of options exercised during the fiscal years ended April 30, 2022, 2021 and 2020 was $187.3 million, $137.3 million and $4.2 million, respectively. The total grant date fair value of options vested during the fiscal years ended April 30, 2022, 2021 and 2020 was $35.3 million, $15.0 million and $6.8 million, respectively.

As of April 30, 2022 and 2021, there was $151.0 million and $97.8 million, respectively, of unrecognized compensation cost related to stock options which are expected to be recognized over an estimated weighted-average period of 3.3 years and 3.8 years, respectively.

The grant-date fair value of the options issued for the fiscal years ended April 30, 2022 and 2021 are estimated on the date of grant using the Black-Scholes-Merton option pricing model. The weighted average assumptions underlying the fair value estimation are provided in the following table:


	Fiscal Year Ended April 30,
	2022		2021
Valuation assumptions:
Expected dividend yield	—	%	—	%
Expected volatility	44.1	%	43.8	%
Expected term (years)	6.4		6.3
Risk-free interest rate	1.1	%	0.4	%

Restricted Stock Units

During the fiscal year ended April 30, 2021, the Company began granting RSUs to its employees and some service providers. No RSUs were granted prior to the IPO. The RSUs are typically subject to service-based vesting conditions satisfied over five years with one-fifth of the award vesting after the first-year anniversary and one-twenty-fifth of the award vesting quarterly thereafter. The related stock-based compensation is recognized on a straight-line basis over the requisite service period. For the fiscal year ended April 30, 2022, the Company recognized stock-based compensation expense of $72.9 million associated with such RSUs.

A summary of the Company’s RSU activities and related information is as follows:


	RSUs Outstanding
	Number of RSUs	Weighted Average Grant Date Fair Value Per Share
	(in thousands)
Unvested Balance as of April 30, 2020	—	$	—
RSUs granted	447	74.52
Unvested Balance as of April 30, 2021	447	74.52
RSUs granted	13,750	37.49
RSUs vested	(264)	52.53
RSUs forfeited	(1,824)	54.06
Unvested Balance as of April 30, 2022	12,109	$	36.04

As of April 30, 2022 and 2021, there was $375.6 million and $32.2 million respectively, of unrecognized stock-based compensation expense related to outstanding RSUs granted to employees that is expected to be recognized over a weighted-average period of 3.5 years and 4.8 years, respectively.

Stock-based Compensation Expense

The following table summarizes the effects of stock-based compensation on the Company’s consolidated statements of operations (in thousands):


	Fiscal Year Ended April 30,
	2022		2021		2020
Cost of subscription	$	8,638	$	828	$	370
Cost of professional services	2,710		376		122
Sales and marketing	40,344		9,080		3,074
Research and development	39,200		2,950		1,223
General and administrative	22,549		8,506		3,521
Total stock-based compensation expense	$	113,441	$	21,740	$	8,310

Shareholder Loan

In January 2018, in connection with the Series F preferred stock financing, the Company issued 1,251,921 shares of Series F preferred stock in exchange for a note receivable of $24.5 million from its CEO. Prior to the automatic conversion of all Series F preferred stock outstanding into Class A common stock upon the completion of the IPO, the underlying shares of Series F preferred stock were legally outstanding though were not included in the carrying amounts of preferred stock as the note receivable is treated as an equity classified stock-based option grant. In September 2020, the Company’s CEO paid the outstanding full recourse promissory note and accrued interest in the amount of $26.0 million. No interest income was recorded for the note. Refer to Note 13. Related Party Transactions for more information.