Equity Incentive Plans and Employee Stock Purchase Plan

Equity Incentive Plans

The Company adopted the 2008 Stock Incentive Plan (as amended, the “2008 Plan”) in 2008 and the 2016 Equity Incentive Plan (as amended, the “2016 Plan”) in 2016, primarily for the purpose of granting stock-based awards to employees, directors, and consultants. 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 nonstatutory stock options to employees, directors or consultants. The 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.

The following table summarizes stock option activity for the six months ended July 31, 2018 (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, 2018	12,637,435		$	7.63	7.72	$	246,227
Stock options granted	—		—
Stock options exercised	(1,191,587	)	6.78
Stock options forfeited and expired	(519,506	)	8.25
Balance - July 31, 2018	10,926,342		7.69		7.22	507,216
Vested and exercisable - January 31, 2018	5,540,858		6.33		6.63	115,122
Vested and exercisable - July 31, 2018	5,948,032		$	6.62	6.42	$	282,477

Restricted Stock Units

The 2016 Plan provides for the issuance of restricted stock units (“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 six months ended July 31, 2018:



	Shares		Weighted-Average Grant Date Fair Value per RSU
Unvested - January 31, 2018	245,746		$	26.20
RSUs granted	1,351,332		41.38
RSUs vested	(75,603	)	50.34
RSUs forfeited and canceled	(30,327	)	34.96
Unvested - July 31, 2018	1,491,148		$	38.56

Employee Stock Purchase Plan

In October 2017, the Board of Directors adopted, and stockholders approved, the 2017 Employee Stock Purchase Plan (“ESPP”). A total of 1.5 million shares of the Company’s Class A common stock have been authorized for issuance under 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 Class A common stock at a discounted price per share. Except for the initial offering period, the ESPP provides for separate six-month offering periods. The initial offering period began October 18, 2017 and ended June 15, 2018. During the three months ended July 31, 2018, the Company issued 275,874 shares of Class A common stock under the 2017 ESPP.

Unless otherwise determined by the Board of Directors or a committee thereof, the Company’s Class A common stock will be purchased for the accounts of employees participating in the ESPP at a price per share that is the lesser of (1) 85% of the fair market value of the Company’s Class A common stock on the first trading day of the offering period, which for the initial offering period is the price at which shares of the Company’s Class A common stock were first sold to the public, or (2) 85% of the fair market value of the Company’s Class A common stock on the last trading day of the offering period.

Stock-Based Compensation Expense

Total stock-based compensation expense recognized in the Company’s interim unaudited condensed consolidated statements of operations is as follows (in thousands):



	Three Months Ended July 31,				Six Months Ended July 31,
	2018		2017		2018		2017
Cost of revenue—subscription		$489		$170	$	848	$	321
Cost of revenue—services	281		98		465		170
Sales and marketing	2,129		1,482		4,347		2,697
Research and development	2,904		1,322		5,110		2,567
General and administrative	3,206		1,845		5,816		3,616
Total stock-based compensation expense	$	9,009	$	4,917	$	16,586	$	9,371