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Stock-Based Compensation | 3 Months Ended
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Jul. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based CompensationOn November 27, 2020, the Company’s board of directors adopted, and its stockholders approved, the 2020 Incentive Plan, which became effective in connection with the IPO. The 2020 Incentive Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit (“RSU”) awards, performance awards and other equity awards. The number of shares of Class A common stock reserved for issuance under the 2020 Incentive Plan is subject to automatic evergreen increases annually through (and including) May 1, 2030 pursuant to the terms of the 2020 Incentive Plan. There was an automatic annual increase on May 1, 2022 in the number of shares reserved for future issuance pursuant to the 2020 Incentive Plan in an amount equal to five percent (5%) of the total number of shares of the Company’s Class A common stock and Class B common stock outstanding on April 30, 2022. On November 27, 2020, the Company’s board of directors also adopted, and its stockholders also approved, the 2020 Employee Stock Purchase Plan (the “2020 ESPP”), which became effective immediately prior to the IPO. The 2020 ESPP authorizes the issuance of shares of Class A common stock pursuant to purchase rights granted to employees. A total of 3,000,000 shares of Class A common stock were initially reserved for future issuance under the 2020 ESPP. The number of shares of Class A common stock reserved for issuance under the 2020 ESPP is subject to automatic evergreen increases annually through (and including) May 1, 2030 pursuant to the terms of the 2020 ESPP. There was an automatic annual increase on May 1, 2022 in the number of shares reserved for future issuance pursuant to the 2020 ESPP in an amount equal to one percent (1%) of the total number of shares of the Company’s Class A common stock and Class B common stock outstanding on April 30, 2022. The 2020 ESPP permits participants to purchase shares of Class A common stock in an amount not exceeding 15% of their earnings during the relevant offering period. The offering dates and purchase dates for the 2020 ESPP are determined at the discretion of the Company’s board of directors. As of July 31, 2022, the Company had not yet launched its 2020 ESPP. Stock Options to Acquire Class A Common Stock Stock options generally expire 10 years from the date of grant, or earlier if services are terminated. Generally, each stock option for common stock is subject to a vesting schedule such that one fifth of the award vests after the first-year anniversary and one-sixtieth of the award vests each month thereafter over the remaining four years, subject to continuous service. A summary of the Company’s option activity during the three months ended July 31, 2022 is as follows:
| Options Outstanding
| Number of Stock Options Outstanding |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (years) |  | Aggregate Intrinsic Value
| (in thousands) |  |  |  |  |  | (in thousands)
Balance as of April 30, 2022 | 36,338 |  |  | $ | 12.44 |  |  | 7.34 |  | $ | 165,436 |
Options granted | 40 |  |  | 16.74 |  |  |  |  |
Options exercised | (287) |  |  | 18.88 |  |  |  |  |
Options cancelled | (222) |  |  | 13.47 |  |  |  |  |
Balance as of July 31, 2022 | 35,869 |  |  | $ | 12.50 |  |  | 7.12 |  | $ | 211,987 |
Vested and exercisable as of July 31, 2022 | 17,698 |  |  | $ | 6.62 |  |  | 6.27 |  | $ | 208,655 |
Vested and expected to vest as of July 31, 2022(1) | 36,169 |  |  | $ | 12.50 |  |  | 7.12 |  | $ | 213,761 |
(1) The number of options vested and expected to vest as of July 31, 2022 includes early exercised, unvested Class A common stock. Refer to Note 7. Stockholders’ Equit y for more information. As of July 31, 2022, there was $138.6 million of unrecognized compensation cost related to stock options which are expected to be recognized over an estimated weighted-average period of 3.1 years. The grant-date fair value of the options issued for the three months ended July 31, 2022 is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The weighted average assumptions underlying the fair value estimation are provided in the following table:
|  | As of July 31,
|  | 2022 |  | 2021
Valuation assumptions: |  |  |  |
Expected dividend yield |  | — | % |  | — | %
Expected volatility |  | 45.0 | % |  | 44.5 | %
Expected term (years) |  | 6.5 |  | 6.3
Risk-free interest rate |  | 2.9 | % |  | 0.8 | %
Restricted Stock Units The RSUs are typically subject to service-based vesting conditions satisfied over five years with one-fifth of the award vesting after the first-year anniversary and one-twenty-fifth of the award vesting quarterly thereafter. The related stock-based compensation is recognized on a straight-line basis over the requisite service period. A summary of the Company’s RSU activity during the three months ended July 31, 2022 is as follows:
| RSUs Outstanding
| Number of RSUs |  | Weighted Average Grant Date Fair Value Per Share
| (in thousands) |  |
Unvested Balance as of April 30, 2022 | 12,109 |  |  | $ | 36.04 |
RSUs granted | 8,969 |  |  | 17.84 |
RSUs vested | (1,841) |  |  | 30.59 |
RSUs forfeited | (1,630) |  |  | 36.11 |
Unvested Balance as of July 31, 2022 | 17,607 |  |  | $ | 27.29 |
As of July 31, 2022, there was $428.1 million of unrecognized stock-based compensation expense related to outstanding RSUs granted to employees that is expected to be recognized over a weighted-average period of 3.7 years. In June 2022, the Compensation Committee of the board of directors approved the payment of fiscal year 2022 bonuses under the Company’s annual bonus program by issuing shares of Class A common stock to employees through fully vested RSUs. The Company issued 811,790 shares of Class A common stock pursuant to this program in the three months ended July 31, 2022. Shares issued under this bonus program were issued from the 2020 Incentive Plan and reduce the 2020 Incentive Plan shares available for issuance. Beginning in fiscal year 2023, the Company records stock-based compensation associated with the Company’s annual bonus program that will be settled by shares of Class A common stock issued through fully vested RSUs. Stock-based Compensation Expense The following table summarizes the effects of stock-based compensation on the Company’s condensed consolidated statements of operations (in thousands):
| Three Months Ended July 31, |  |
| 2022 |  | 2021 |  |  |  |
Cost of subscription | $ | 4,272 |  |  | $ | 821 |  |  |  |  |
Cost of professional services | 1,071 |  |  | 602 |  |  |  |  |
Sales and marketing | 16,779 |  |  | 6,135 |  |  |  |  |
Research and development | 25,217 |  |  | 2,758 |  |  |  |  |
General and administrative | 9,291 |  |  | 3,596 |  |  |  |  |
Total stock-based compensation expense | $ | 56,630 |  |  | $ | 13,912 |  |  |  |  |
As of July 31, 2022, approximately $10.2 million of stock-based compensation expense was accrued and reflected under accrued compensation and employee benefits in the condensed consolidated balance sheets.

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