Equity-Based Compensation

6 Months Ended

Oct. 31, 2023

Share-Based Payment Arrangement [Abstract]

General

Equity-based compensation expense related to stock options and restricted stock units was $7.7 million and $6.5 million during the six months ended October 31, 2023 and 2022, respectively, and is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income.

Stock Option Awards

The following table presents stock option activity for the six months ended October 31, 2023:


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
	(shares and dollars in thousands)
Outstanding as of April 30, 2023	1,106	$	32.60	6.5	$	28,155
Options granted	150	74.80
Options exercised	(65)	27.26
Options forfeited	(9)	44.03
Outstanding as of October 31, 2023	1,182	$	38.18	6.6	$	26,476
Exercisable as of October 31, 2023	842	$	28.43	5.6	$	25,314
Vested and Expected to vest as of October 31, 2023	1,182	$	38.17	6.6	$	26,473

The aggregate intrinsic value represents the excess of the Company’s closing stock price on the last trading day of the period over the weighted average exercise price, multiplied by the number of options outstanding, exercisable or expected to vest. Options expected to vest are unvested shares, net of expected forfeitures. The total intrinsic value of options exercised during the six months ended October 31, 2023 and 2022 was $2.7 million and $2.6 million, respectively. As of October 31, 2023, there was $7.8 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 2.0 years.

The fair value of stock options granted during the six months ended October 31, 2023 and 2022 was estimated using the Black-Scholes option-pricing model with the following assumptions and resulting weighted average grant date fair value:


	Six Months Ended October 31,
	2023			2022
Volatility	38.70		%	45.80		%
Expected life (years)	6.0			6.0
Risk-free interest rate	4.29		%	2.67		%
Dividend yield	—		%	—		%
Grant date fair value	$	33.34		$	25.26

Restricted Stock Units

The following table presents restricted stock unit activity for the six months ended October 31, 2023:


	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value
	(shares in thousands)
Outstanding as of April 30, 2023	353	$	46.97
Granted	140	74.80
Vested	(172)	44.37
Forfeited	(4)	50.35
Outstanding as of October 31, 2023	317	$	60.67

The total fair value of awards vested during the six months ended October 31, 2023 and 2022 was $12.9 million and $8.7 million, respectively. As of October 31, 2023, there was $11.3 million of total unrecognized compensation cost related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.8 years.

Employee Stock Purchase Plan

The Company has an employee stock purchase plan (“ESPP”), the terms of which allow for qualified employees to participate in the purchase of shares of the Company’s common stock at a price equal to 90% of the lower of the closing price at the beginning or end of the purchase period, which is a six-month period ending on December 31 and June 30 of each year. The Company recognized $0.7 million and $0.4 million of stock-based compensation expense related to the ESPP during the six months ended October 31, 2023 and 2022, respectively.

The following table presents the number of shares of the Company’s common stock purchased under the ESPP and average price per share:


	Six Months Ended October 31,
	2023		2022
	(shares in thousands)
Number of shares purchased under the ESPP	58		33
Average purchase price	$	45.90	$	40.05