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Equity Incentive Plans and Employee Stock Purchase Plan | 9 Months Ended
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Oct. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Equity Incentive Plans and Employee Stock Purchase Plan | Equity Incentive Plans and Employee Stock Purchase Plan 2008 Stock Incentive Plan and 2016 Equity Incentive Plan The Company adopted the 2008 Stock Incentive Plan (as amended, the “2008 Plan”) and the 2016 Equity Incentive Plan (as amended, the “2016 Plan”), primarily for the purpose of granting stock-based awards to employees, directors and consultants, including stock options, restricted stock units (“RSUs”) and other stock-based awards. With the establishment of the 2016 Plan in December 2016, all shares available for grant under the 2008 Plan were transferred to the 2016 Plan. The Company no longer grants any stock-based awards under the 2008 Plan and any shares underlying stock options canceled under the 2008 Plan will be automatically transferred to the 2016 Plan. Stock Options The 2016 Plan provides for the issuance of incentive stock options to employees and non-statutory stock options to employees, directors or consultants. The Company’s Board of Directors, or a committee thereof, determines the vesting schedule for all equity awards. Stock option awards generally vest over a period of four years with 25% vesting on the one-year anniversary of the award and the remainder vesting monthly over the next 36 months of the grantee’s service to the Company. There were no stock options granted during the nine months ended October 31, 2022. The following table summarizes stock option activity for the nine months ended October 31, 2022 (in thousands, except share and per share data and years):
| Shares |  | Weighted-Average Exercise Price Per Share |  | Weighted- Average Remaining Contractual Term (In Years) |  | Aggregate Intrinsic Value
Balance - January 31, 2022 | 2,591,894 |  |  | $ | 7.46 |  |  | 3.9 |  | $ | 1,030,680 |
Stock options exercised | (598,546) |  |  | 7.25 |  |  |  |  |
Stock options forfeited and expired | (809) |  |  | 5.72 |  |  |  |  |
Balance - October 31, 2022 | 1,992,539 |  |  | $ | 7.52 |  |  | 3.5 |  | $ | 349,716 |
Vested and exercisable - January 31, 2022 | 2,591,894 |  |  | $ | 7.46 |  |  | 3.9 |  | $ | 1,030,680 |
Vested and exercisable - October 31, 2022 | 1,992,539 |  |  | $ | 7.52 |  |  | 3.5 |  | $ | 349,716 |
Restricted Stock Units The 2016 Plan provides for the issuance of RSUs to employees, directors and consultants. RSUs granted to new employees generally vest over a period of four years with 25% vesting on the one-year anniversary of the vesting start date and the remainder vesting quarterly over the next 12 quarters, subject to the grantee’s continued service to the Company. RSUs granted to existing employees generally vest quarterly over a period of four years, subject to the grantee’s continued service to the Company. The following table summarizes RSU activity for the nine months ended October 31, 2022:
| Shares |  | Weighted-Average Grant Date Fair Value per RSU
Unvested - January 31, 2022 | 3,226,759 |  |  | $ | 258.85 |
RSUs granted | 1,790,022 |  |  | 316.47 |
RSUs vested | (1,139,763) |  |  | 214.84 |
RSUs forfeited and canceled | (296,995) |  |  | 291.22 |
Unvested - October 31, 2022 | 3,580,023 |  |  | $ | 298.99 |
Executive Performance Share Awards During three months ended April 30, 2022, the Company created a long-term performance-based equity award program and granted performance share units (“PSUs”) to the Company’s CEO and certain other executives. The vesting of PSUs is conditioned upon the achievement of certain targets for the year ended January 31, 2023. Upon achievement of those conditions, the PSUs vest annually over a period of three years from the date of grant, subject to the executive’s continued employment with the Company. Each vested PSU entitles the executive to one share of common stock. A PSU performance factor of 100 will result in the targeted number of PSUs being vested. The minimum percentage of PSUs that can vest is zero, with a maximum percentage of 200. On the date of grant, the Company assumed a performance factor of 100, which would result in 74,823 PSUs to be issued, if fully vested. The grant date fair value of these PSUs was $23.7 million at a performance factor of 100, which was determined by using the closing price of the Company’s stock at the date of grant. Compensation expense is being recognized over the requisite service period based on the probability of the performance conditions being satisfied using the accelerated attribution method. 2017 Employee Stock Purchase Plan In October 2017, the Company’s Board of Directors adopted, and stockholders approved, the 2017 Employee Stock Purchase Plan (the “2017 ESPP”). Subject to any plan limitations, the 2017 ESPP allows eligible employees to contribute, normally through payroll deductions, up to 15% of their earnings for the purchase of the Company’s common stock at a discounted price per share. In June 2022, the Company issued 72,966 shares of its common stock under the 2017 ESPP. The Company’s current offering period began June 16, 2022 and ends on December 15, 2022. Stock-Based Compensation Expense Total stock-based compensation expense recognized in the Company’s unaudited condensed consolidated statements of operations is as follows (in thousands):
| Three Months Ended October 31, |  | Nine Months Ended October 31,
| 2022 |  | 2021 |  | 2022 |  | 2021
Cost of revenue—subscription | $ | 5,016 |  |  | $ | 3,934 |  |  | $ | 14,492 |  |  | $ | 10,322 |
Cost of revenue—services | 2,827 |  |  | 1,521 |  | 7,599 |  |  | 4,473 |
Sales and marketing | 38,352 |  |  | 24,790 |  | 104,539 |  |  | 64,749 |
Research and development | 41,458 |  |  | 29,205 |  | 117,583 |  |  | 73,227 |
General and administrative | 11,545 |  |  | 9,258 |  | 35,105 |  |  | 24,556 |
Total stock-based compensation expense | $ | 99,198 |  |  | $ | 68,708 |  |  | $ | 279,318 |  |  | $ | 177,327 |

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