
	Three Months Ended October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
Cost of revenue	$	4,329	$	2,835	$	12,570	$	7,082
Research and development	15,634		13,996		45,876		37,954
Sales and marketing	14,085		12,166		40,362		28,977
General and administrative	20,865		16,690		65,560		44,305
Restructuring	—		—		(1,060)		—
Total	$	54,913	$	45,687	$	163,308	$	118,318


	Number of Shares	Weighted-Average Grant Date Fair Value
Outstanding as of January 31, 2023	14,409,166	$	27.37
Granted	19,229,577	16.32
Released	(4,090,297)	26.77
Forfeited	(2,516,121)	22.28
Outstanding as of October 31, 2023	27,032,325	$	19.86

As of October 31, 2023, we had unrecognized stock-based compensation expense related to unvested RSUs of $473.0 million that is expected to be recognized on a straight-line basis over a weighted-average period of 3.1 years.


	Number of Options	Weighted-Average Exercise Price
Outstanding as of January 31, 2023	32,446,814	$	4.71

Exercised	(6,484,688)	$	2.68
Forfeited	(583,334)	$	5.54
Outstanding as of October 31, 2023	25,378,792	$	5.22
Expected to vest as of October 31, 2023	25,378,792	$	5.22
Vested and exercisable as of October 31, 2023	18,189,967	$	4.10

As of October 31, 2023, we had unrecognized stock-based compensation expense related to unvested options of $61.9 million that is expected to be recognized on a straight-line basis over a weighted-average period of 1.9 years.

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 our 2013 Equity Incentive Plan. These stock options will vest 100% upon the occurrence of (a) our initial public offering (IPO) (the performance-based vesting condition), which was completed in June 2021, and (b) the achievement of certain 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. As of October 31, 2023, the share price targets have not been achieved, therefore, these stock options remain unvested. 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 and nine months ended October 31, 2023, we recorded $0.9 million and $2.7 million, respectively, of stock-based compensation expense related to these milestone options. During the three and nine months ended October 31, 2022, we recorded $0.9 million and $2.7 million, respectively, of stock-based compensation expense. As of October 31, 2023, we had unrecognized stock-based compensation expense related to these milestone options of $10.0 million that is expected to be recognized over the remaining implied service period of 2.8 years.

In March and May 2023, we granted Performance Stock Units (PSU) covering 1,133,455 shares of Class A common stock at target to certain executives subject to service-based and performance-based vesting conditions. These PSUs may vest from 0% to 225% of the number of target shares based on the achievement of certain financial performance metrics and will vest over four years from the grant date. As of October 31, 2023, we have assessed the financial performance metrics for these PSUs and consider achievement to be improbable (0% of target shares to vest). As such, we have not recorded any stock-based compensation expense and have no unrecognized stock-based compensation expense related to these PSUs.

In connection with the acquisition of Attivo Networks, Inc. (Attivo), we issued 63,327 shares of restricted Class A common stock to Attivo’s employees. We recorded stock-based compensation expense related to these restricted shares of $0.1 million and $0.5 million, respectively, during the three and nine months ended October 31, 2023. We recorded stock-based compensation expense related to these restricted shares of $0.3 million and $0.6 million, respectively, during the three and nine months ended October 31, 2022. As of October 31, 2023, we had unrecognized stock-based compensation expense related to this unvested restricted common stock of $0.5 million.

In connection with the acquisition of Scalyr, Inc. (Scalyr) in February 2021, we issued 1,315,099 shares of restricted common stock. During the nine months ended October 31, 2023 we recorded $0.2 million of stock-based compensation expense related to these restricted shares. No expense was recorded during the three months ended October 31, 2023 related to these restricted shares. During the three and nine months ended October 31, 2022, we recorded $2.1 million and $6.4 million, respectively, of stock-based compensation expense. As of October 31, 2023, this restricted common stock had fully vested.

We recognized stock-based compensation expense related to the Employee Stock Purchase Plan (ESPP) of $3.2 million and $9.1 million, respectively, during the three and nine months ended October 31, 2023. We recognized stock-based compensation expense of $3.6 million and $10.1 million, respectively, during the three and nine months ended October 31, 2022.

During the nine months ended October 31, 2023, we recorded $0.3 million in expense related to modification of our ESPP as a result of the decrease in our stock price in July 2022 and January 2023, which triggered resets of the ESPP offering periods in accordance with the terms of the ESPP. No expense related to the modification was recorded during the three months ended October 31, 2023. During the three and nine months ended October 31,

2022, we recorded $0.1 million and $0.3 million, respectively, in stock-based compensation expense. As of October 31, 2023, there is no remaining unrecognized stock-based compensation expense related to modification of our ESPP.

In connection with our acquisition of Attivo (Attivo Acquisition), we granted 539,795 shares of RSUs under our 2021 Equity Incentive Plan that will vest over a period of three years contingent on continued employment of certain Attivo employees, for which stock-based compensation expense will be recognized ratably over the vesting period.

In connection with the Attivo Acquisition, we assumed unvested stock options that were granted under the Attivo 2011 Equity Incentive Plan (Attivo Plan). We do not intend to grant any additional shares under the Attivo Plan and the Attivo Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder. Any shares underlying stock options that are expired, canceled, forfeited or repurchased under the Attivo Plan will be automatically available for issuance as Class A common stock pursuant to our 2021 Equity Incentive Plan.

During fiscal 2023 and fiscal 2024, certain members of our management team converted to non-employee consultants or to positions that no longer provide substantive service to the Company (Management Transitions). These Management Transitions have been accounted for as modifications, under which, the exercise period of certain vested awards has been extended and a certain number of unvested awards will vest through the end of the agreements entered into in connection with the Management Transitions.

During the three and nine months ended October 31, 2023, we recognized an incremental charge of $2.4 million and $6.4 million, respectively, related to the Management Transitions. During the three and nine months ended October 31, 2022, we recognized an incremental charge of $2.6 million.