Stockholders’ Equity and Equity Incentive Plans

9 Months Ended

Oct. 31, 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 and nine months ended October 31, 2022, we repurchased and subsequently retired 6,955,529 and 11,044,500 shares of our Class A common stock, respectively, for an aggregate amount of $564.8 million and $990.8 million, respectively.

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	(1,214,532)	$	6.86		$	75,266
Canceled/forfeited/expired	(22,230)	$	92.95
Outstanding and exercisable as of October 31, 2023	3,563,854	$	8.16	4.1	$	188,163

As of October 31, 2023, all options have vested and there is no unrecognized stock-based compensation expense remaining.

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	17,141,593	$	69.01
Vested	(8,747,679)	$	105.71
Canceled/forfeited	(3,772,653)	$	102.10
Unvested as of October 31, 2023	26,489,794	$	85.46

As of October 31, 2023, unrecognized stock-based compensation expense related to RSUs was $1,927.5 million, which is expected to be recognized over a weighted-average period of 2.6 years.

2019 Employee Stock Purchase Plan

In April 2019, we adopted the 2019 Employee Stock Purchase Plan (“ESPP”). As of October 31, 2023, unrecognized stock-based compensation expense related to the ESPP was $46.9 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 October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
	(in thousands)
Cost of revenue	$	35,514	$	41,449	$	111,138	$	109,776
Research and development	86,662		83,202		250,165		208,654
Sales and marketing	86,593		125,144		293,104		329,100
General and administrative	50,165		53,020		148,381		120,163
Total stock-based compensation expense	$	258,934	$	302,815	$	802,788	$	767,693
Benefit from income taxes	(48,646)		(53,995)		(147,089)		(151,027)
Total stock-based compensation expense recorded to net income	$	210,288	$	248,820	$	655,699	$	616,666