Equity | Equity As of April 29, 2023, there were 164,695,911, 363,815,483, and no shares of Class A, Class B, and Class C common stock issued and outstanding, respectively. As of January 28, 2023, there were 132,111,095, 392,049,114, and no shares of Class A, Class B, and Class C common stock issued and outstanding, respectively. The Company had reserved shares of common stock for future issuance as of April 29, 2023 and January 28, 2023, as follows: As of April 29, 2023 January 28, 2023 2015 Equity Incentive Plan: Options outstanding 6,696,729 6,927,540 RSUs outstanding 12,885,611 15,137,385 2021 Equity Incentive Plan: RSUs outstanding 36,933,581 25,658,719 Shares available for future grants 67,529,817 55,891,021 2021 Employee Stock Purchase Plan: Shares available for future issuance 18,713,371 13,471,769 Total shares of common stock reserved for future issuance 142,759,109 117,086,434 Employee Compensation Plans The Company currently has two equity incentive plans, the 2015 Equity Incentive Plan (the “2015 Plan”) and the 2021 Equity Incentive Plan (the “2021 Plan”). The 2015 Plan was terminated in connection with the adoption of the 2021 Plan in December 2021 but continues to govern the terms of outstanding stock options and RSUs that were granted prior to the termination of the 2015 Plan. The Company no longer grants equity awards pursuant to the 2015 Plan. 2021 Equity Incentive Plan —In December 2021, the Board of Directors adopted and stockholders approved the 2021 Equity Incentive Plan, which became effective in December 2021 in connection with the Company’s initial public offering (“IPO”). The total number of shares of the Company’s Class A common stock reserved for future grants as of April 29, 2023 includes 26,208,010 shares added on the first day of fiscal year 2024 pursuant to the annual automatic evergreen increase provision of the 2021 Plan. Options —A summary of the stock options activity under the 2015 Plan during the three months ended April 29, 2023 is presented below (the number of options represents shares of Class B common stock exercisable in respect thereof): Number of Shares Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (In Thousands) Balance as of January 28, 2023 6,927,540 $ 4.61 6.4 $ 63,351 Granted — $ — Exercised (230,811) $ 0.68 Forfeited, canceled, or expired — $ — Balance as of April 29, 2023 6,696,729 $ 4.75 6.2 $ 89,061 Exercisable as of April 29, 2023 5,552,499 $ 4.17 6.0 $ 77,093 __________ (1) Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of the Company’s Class A common stock for each period end presented, multiplied by the number of stock options outstanding or exercisable as of each period end presented. The intrinsic value of stock options exercised was $3.9 million and $10.8 million during the three months ended April 29, 2023 and April 30, 2022, respectively. As of April 29, 2023, unrecognized stock-based compensation expense related to outstanding unvested stock options for employees that are expected to vest was approximately $4.5 million. The remaining unrecognized stock-based compensation expense is expected to be recognized over a weighted-average period of approximately 0.8 years. RSUs —RSUs granted prior to the IPO had both a service condition and a performance condition. Stock-based compensation expense was only recognized for RSUs for which both the service condition and performance condition have been met. The service condition for these awards is generally satisfied over four years. The performance condition was satisfied upon the IPO. Prior to the IPO, the Company did not record expense on RSUs as a liquidity event upon which vesting is contingent was not probable of occurring. Following the closing of the IPO in December 2021, the Company began recording stock-based compensation expense for these RSUs using the accelerated attribution method, based on the grant-date fair value of the RSUs. RSUs granted after the IPO only have a service condition, and the related stock-based compensation expense is recognized on a straight-line basis over the requisite service period. The service condition for these awards is generally satisfied over four years for RSUs granted through fiscal year 2023 and three years for RSUs granted after fiscal year 2023. A summary of the RSUs activity under the 2015 Plan and 2021 Plan during the three months ended April 29, 2023 is presented below: Number of Shares Weighted-Average Balance as of January 28, 2023 40,796,104 $ 12.20 Granted 14,294,337 $ 16.51 Vested (4,115,374) $ 11.56 Forfeited (1,155,875) $ 13.53 Balance as of April 29, 2023 49,819,192 $ 13.46 As of April 29, 2023, unrecognized stock-based compensation expense related to outstanding unvested RSUs for employees that are expected to vest was approximately $555.0 million. The remaining unrecognized stock-based compensation expense is expected to be recognized over a weighted-average period of approximately 1.6 years. 2021 Employee Stock Purchase Plan —In December 2021, the Board of Directors adopted and stockholders approved the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which became effective in December 2021 in connection with the IPO. The total number of shares of the Company’s Class A common stock reserved for future issuance as of April 29, 2023 includes 5,241,602 shares added on the first day of fiscal year 2024 pursuant to the annual automatic evergreen increase provision of the 2021 ESPP. The price at which Class A common stock is purchased under the 2021 ESPP is equal to 85% of the lower of the fair market value of a share of the Company’s Class A common stock on the enrollment date or on the exercise date. The enrollment date means the first trading day of each offering period, and the exercise date means the last trading day of each purchase period. Offering periods are generally 12 months long, commencing on the first trading day on or after June 11 and December 11 of each year and terminating on the last trading day on or before June 10 and December 10 of each year. The first offering period began on the first trading day on or after the Company’s registration date, which was December 15, 2021, and ended on December 9, 2022, and the second offering period began on June 13, 2022. Purchase periods are generally six months long, commencing on the first trading day after one exercise date and ending with the next exercise date. The first purchase period of the first offering period began on the first trading day on or after the registration date, which was December 15, 2021, and ended on June 10, 2022, and the second purchase period began on June 13, 2022 and ended on December 9, 2022. For the three months ended April 29, 2023 and April 30, 2022, there were no purchases of shares under the 2021 ESPP. As of April 29, 2023, unrecognized stock-based compensation expense related to the 2021 ESPP for employees that are expected to vest was approximately $5.8 million. The remaining unrecognized stock-based compensation expense is expected to be recognized over a weighted-average period of approximately 0.6 years. Stock-Based Compensation Expense —Stock-based compensation expense, by grant type, was as follows (in thousands): Three Months Ended April 29, 2023 April 30, 2022 Stock options $ 811 $ 1,139 RSUs 49,416 39,311 Employee stock purchase plan 2,721 3,162 Total stock-based compensation expense $ 52,948 $ 43,612 Stock-based compensation expense included in the following line items of the Company’s condensed consolidated statements of operations and comprehensive loss was as follows (in thousands): Three Months Ended April 29, 2023 April 30, 2022 Cost of revenue $ 2,706 $ 1,704 Research and development 20,331 13,670 Sales and marketing 15,242 14,544 General and administrative 14,669 13,694 Total stock-based compensation expense $ 52,948 $ 43,612 |