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Stock-Based Compensation
 3 Months Ended
Apr. 30, 2022
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
Stock-Based Compensation Expense
The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following (in thousands):
Three Months Ended April 30,
20222021
Cost of revenue$1,848 $383 
Research and development10,463 7,139 
Sales and marketing7,096 2,047 
General and administrative12,223 3,868 
Total$31,630 $13,437 
Restricted Stock Units
A summary of our restricted stock unit (RSU) activity is as follows:
Number of SharesWeighted-Average Grant Date Fair Value
Outstanding as of January 31, 2022
1,770,304 $52.51 
Granted4,510,717 $39.68 
Released(26,630)$51.06 
Forfeited(105,238)$45.79 
Outstanding as of April 30, 2022
6,149,153 $43.24 
As of April 30, 2022, we had unrecognized stock-based compensation expense related to unvested RSUs of $242.7 million that is expected to be recognized on a straight-line basis over a weighted-average period of 3.6 years.
Stock Options
A summary of our stock option activity is as follows:
Number of OptionsWeighted-Average Exercise Price
Outstanding as of January 31, 2022
42,422,473 $4.30 
Granted— $— 
Exercised(2,018,597)$2.52 
Forfeited(479,224)$5.55 
Outstanding as of April 30, 2022
39,924,652 $4.37 
Vested and exercisable as of April 30, 2022
18,831,095 $2.83 
As of April 30, 2022, we had unrecognized stock-based compensation expense related to unvested options of $137.4 million that is expected to be recognized on a straight-line basis over a weighted-average period of 2.6 years.
Milestone Options
In March 2021, we granted options to purchase 1,404,605 shares of Class B common stock subject to service-based, performance-based, and market-based vesting conditions to our Chief Executive Officer and Chief Financial Officer under the 2013 Plan. These stock options will vest 100% upon the occurrence of our initial public offering (IPO) (the performance-based vesting condition) and the achievement of certain milestone events and our share
price targets (the market-based vesting conditions), subject to the executive’s continued service to us from the grant date through the milestone events. For these options, we used a Monte Carlo simulation to determine the fair value at the grant date and the implied service period.
During the three months ended April 30, 2022, we recorded $0.9 million of stock-based compensation expense related to these milestone options. During the three months ended April 30, 2021, we did not recognize any stock-based compensation expense associated with these options as the occurrence of our IPO was not deemed probable until consummated. As of April 30, 2022, we had unrecognized stock-based compensation expense related to these milestone options of $15.4 million that is expected to be recognized over the remaining vesting period of 4.3 years.
Restricted Common Stock
In connection with the acquisition of Scalyr, Inc, we granted 1,315,099 shares of restricted common stock with a fair value of $14.59 per share at the time of grant, that vest over a period of two years. During the three months ended April 30, 2022 and 2021, we recorded $2.1 million and $2.4 million, respectively, of stock-based compensation expense related to restricted common stock in connection with our acquisition of Scalyr. As of April 30, 2022, we had unrecognized stock-based compensation expense related to this restricted common stock of $6.6 million that is expected to be recognized over the remaining vesting period of 0.8 years.
Employee Stock Purchase Plan (ESPP)
The Company recognized stock-based compensation expense related to ESPP of $2.8 million during the three months ended April 30, 2022. No stock-based compensation expense related to ESPP was recognized during the three months ended April 30, 2021.