Stockholders’ Equity and Equity Incentive Plans

3 Months Ended

Apr. 30, 2023

Stockholders' Equity Note [Abstract]

Stockholders’ Equity and Equity Incentive Plans

Stockholders’ Equity and Equity Incentive Plans

Common Stock

Our amended and restated certificate of incorporation authorizes the issuance of 2,000,000,000 shares of Class A common stock, $0.001 par value per share, and 300,000,000 shares of Class B common stock, $0.001 par value per share. Class A and Class B common stock are referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted.

Stock Repurchase Plan

In February 2022, our Board of Directors authorized a stock repurchase program of up to $1.0 billion of our Class A common stock, which was completed in December 2022. During the three months ended April 30, 2022, we repurchased and subsequently retired 1,224,250 shares of our Class A common stock, for an aggregate amount of $132.4 million.

Equity Incentive Plans

We have two equity incentive plans: the 2011 Global Share Plan (“2011 Plan”) and the 2019 Equity Incentive Plan (“2019 Plan”). All shares that remain available for future grants are under the 2019 Plan.

Stock Options

A summary of stock option activity under our equity incentive plan and related information is as follows:

	Stock Options
	Outstanding Stock Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
	(in thousands, except share, life, and per share data)
Balance as of January 31, 2023	4,800,616	$	8.22	4.9	$	322,929
Exercised	(501,968)	$	8.50		$	30,864
Canceled/forfeited/expired	(250)	$	58.18
Outstanding as of April 30, 2023	4,298,398	$	8.19	4.5	$	232,898
Vested and expected to vest as of April 30, 2023	4,298,398	$	8.19	4.5	$	232,898
Exercisable as of April 30, 2023	4,294,422	$	8.12	4.5	$	232,887

As of April 30, 2023, unrecognized stock-based compensation expense related to outstanding unvested stock options was $0.1 million, which is expected to be recognized over a weighted-average period of 0.7 years.

Restricted Stock Units

A summary of restricted stock unit (“RSU”) activity under our equity incentive plan and related information is as follows:

	RSUs
	RSUs	Weighted- Average Grant Date Fair Value Per Share
Unvested as of January 31, 2023	21,868,533	$	109.31
Granted	7,565,078	$	69.89
Vested	(3,130,859)	$	112.03
Canceled/forfeited	(2,277,349)	$	108.80
Unvested as of April 30, 2023	24,025,403	$	96.60

As of April 30, 2023, unrecognized stock-based compensation expense related to RSUs was $2,278.7 million, which is expected to be recognized over a weighted-average period of 2.7 years.

2019 Employee Stock Purchase Plan

In April 2019, we adopted the 2019 Employee Stock Purchase Plan (“ESPP”). As of April 30, 2023, unrecognized stock-based compensation expense related to the ESPP was $48.0 million, which is expected to be recognized over a weighted-average period of 1.2 years.

Stock-Based Compensation

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

	Three Months Ended April 30,
	2023		2022
	(in thousands)
Cost of revenue	$	38,089	$	31,150
Research and development	81,466		55,751
Sales and marketing	112,593		93,795
General and administrative	50,197		28,667
Total stock-based compensation expense	$	282,345	$	209,363
Benefit from income taxes	(49,677)		(42,915)
Total stock-based compensation expense recorded to net income	$	232,668	$	166,448