Stockholders' Equity

9 Months Ended

Oct. 31, 2020

Share-based Payment Arrangement [Abstract]

Stockholders’ Equity

Stock Option Activity

A summary of stock option activity for the nine months ended October 31, 2020 is as follows:


	Number of shares	Weighted average exercise price		Weighted average remaining contractual term (in years)	Aggregate intrinsic value
Options outstanding at January 31, 2020	13,448,026	$	40.64	5.4	$	1,426,502,005
Options granted	1,368,632	177.44
Options exercised	(1,407,370)	17.91
Options forfeited/cancelled	(195,630)	121.20
Options outstanding at October 31, 2020	13,213,658	$	55.83	5.2	$	2,830,945,659
Options vested and exercisable at October 31, 2020	6,756,111	$	14.19	3.0	$	1,728,597,328
Options vested and exercisable at October 31, 2020 and expected to vest thereafter	13,213,658	$	55.83	5.2	$	2,830,945,659

The options granted during the nine months ended October 31, 2020 were predominantly made in connection with our annual performance review cycle. The weighted average grant-date fair value of options granted was $105.38 and $70.44 for the three and nine months ended October 31, 2020.

As of October 31, 2020, there was $230 million in unrecognized compensation cost related to unvested stock options granted under the 2012 Equity Incentive Plan and 2013 Equity Incentive Plan. This cost is expected to be recognized over a weighted average period of 3.4 years.

As of October 31, 2020, we had authorized and unissued shares of common stock sufficient to satisfy exercises of stock options.

The total intrinsic value of options exercised was approximately $81 million and $266 million for the three and nine months ended October 31, 2020, respectively.

Restricted Stock Units

A summary of restricted stock unit (RSU) activity for the nine months ended October 31, 2020 is as follows:


	Unreleased restricted stock units	Weighted average grant date fair value
Balance at January 31, 2020	1,818,622	$	95.23
RSUs granted	428,503	179.95
RSUs vested	(780,989)	95.06
RSUs forfeited/cancelled	(97,221)	111.42
Balance at October 31, 2020	1,368,915	120.63

As of October 31, 2020, there was a total of $137 million in unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted-average period of approximately 2.4 years. The total intrinsic value of RSUs vested was $68 million and $167 million for the three and nine months ended October 31, 2020, respectively.

Stock-Based Compensation

The following table presents the weighted-average assumptions used to estimate the grant date fair value of options granted during the periods presented:


	Three months ended October 31,							Nine months ended October 31,
	2020				2019			2020				2019
Volatility	39	%	-	40%	41%			39	%	-	41%	41%
Expected term (in years)	6.25				6.25			6.25		-	7.25	5.75		-	6.35
Risk-free interest rate	0.33	%	-	0.45%	1.39%	-	1.64%	0.33	%	-	1.43%	1.39	%	-	2.52%
Dividend yield	—%				—%			—%				—%