Equity Incentive Plans and Stock-Based Compensation | Equity Incentive Plans and Stock-Based Compensation 2021 Stock Plan In April 2021, prior to and in connection with the IPO, we adopted our 2021 Equity Incentive Plan (the "2021 Plan"), which provides for grants of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards ("RSAs"), restricted stock units ("RSUs"), performance awards, and other forms of awards. As of April 30, 2023, we have reserved 173.7 million shares of our Class A common stock to be issued under the 2021 Plan. The number of shares of our Class A common stock reserved for issuance under the 2021 Plan will automatically increase on February 1 of each year for a period of ten years, which began on February 1, 2022 and continues through February 1, 2031, in an amount equal to (1) 5% of the total number of shares of our common stock (both Class A and Class B) outstanding on the preceding January 31, or (2) a lesser number of shares determined by our board of directors no later than the February 1 increase. 2021 Employee Stock Purchase Plan In April 2021, prior to and in connection with the IPO, we adopted our 2021 Employee Stock Purchase Plan (the “ESPP”). As of April 30, 2023, the ESPP authorizes the issuance of 21.5 million shares of our Class A common stock under purchase rights granted to our employees or to employees of any of our designated affiliates. The number of shares of our Class A common stock reserved for issuance will automatically increase on February 1 of each year for a period of ten years, which began on February 1, 2022 and continues through February 1, 2031, by the lesser of (1) 1% of the total number of shares of our common stock (both Class A and Class B) outstanding on the preceding January 31; and (2) 15.5 million shares, except before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth by (1) and (2) above. The ESPP allows participants to purchase shares at the lesser of (a) 85% of the fair market value of our Class A common stock as of the commencement of each offering period, and (b) 85% of the fair market value of our Class A common stock on the corresponding purchase date. Stock Options Stock option activity during the three months ended April 30, 2023 was as follows: Stock Weighted- Weighted-Average Aggregate Outstanding as of January 31, 2023 13,898 $ 3.32 7.7 $ 169,324 Granted 2,276 $ 0.10 Exercised (898) $ 1.31 Forfeited (116) $ 1.34 Outstanding as of April 30, 2023 15,160 $ 2.97 7.6 $ 172,461 Vested and exercisable as of April 30, 2023 6,419 $ 2.15 5.7 $ 76,588 The weighted-average grant date fair value of stock options granted during the three months ended April 30, 2023 was $16.51 per share. The intrinsic value of stock options exercised during the three months ended April 30, 2023 was $13.5 million. Unrecognized compensation expense associated with unvested stock options granted and outstanding as of April 30, 2023, was $142.6 million, which is to be recognized over a weighted-average remaining period of 2.6 years. Restricted Stock Units RSU activity during the three months ended April 30, 2023 was as follows: RSUs (in thousands) Weighted-Average Grant Unvested as of January 31, 2023 36,785 $ 22.48 Granted 11,914 $ 16.58 Vested (1) (4,181) $ 21.56 Forfeited (3,308) $ 24.65 Unvested as of April 30, 2023 41,210 $ 20.70 (1) Class A common stock has not been issued in connection with 77 vested RSUs because such RSUs were unsettled as of April 30, 2023. The vesting date fair value of RSUs that vested during the three months ended April 30, 2023 was $73.1 million. As of April 30, 2023, total unrecognized compensation expense related to unvested RSUs was approximately $751.5 million, which is to be recognized over a weighted-average remaining period of 2.7 years. Restricted Stock Awards In September 2020, we issued approximately 0.1 million RSAs to a member of our board of directors at a grant date fair value of $33.22 per share, totaling $4.0 million. Such RSAs vest monthly over four years from the grant date. The unvested shares are subject to a repurchase right held by us. As of April 30, 2023, total unrecognized compensation expense related to unvested RSAs was $1.4 million and will be recognized over the remaining vesting period of 1.4 years. Employee Stock Purchase Plan Awards As of April 30, 2023, total unrecognized compensation expense related to the ESPP was approximately $0.9 million, which is to be recognized over a weighted-average remaining period of 0.1 years. Stock-Based Compensation Associated with Business Acquisition At the closing of the acquisition of Re:infer on July 29, 2022, we issued 0.4 million shares of Class A common stock (outside of the 2021 Plan) that will be released to certain employee sellers in equal installments on the first, second, and third anniversaries of the closing date, subject to employment-related clawback provisions. As of April 30, 2023, total unrecognized compensation expense related to these shares was $5.7 million, which is to be recognized over a weighted-average remaining period of 2.3 years. Stock-Based Compensation Expense Stock-based compensation expense is classified in the condensed consolidated statements of operations as follows (in thousands): Three Months Ended April 30, 2023 2022 Cost of subscription services revenue $ 3,178 $ 3,216 Cost of professional services and other revenue 2,699 3,874 Sales and marketing 33,123 50,758 Research and development 24,773 26,623 General and administrative 21,275 16,983 Total $ 85,048 $ 101,454 |