Common Stock and Stockholders' Equity

3 Months Ended

Apr. 30, 2023

9. Common Stock and Stockholders' Equity

Common Stock Reserved for Future Issuance

The Company reserved shares of common stock for future issuance as follows (in thousands):


	As of
	April 30, 2023	January 31, 2023
Options outstanding	8,801	9,315
Restricted stock units outstanding	12,064	11,588
Remaining shares available for future issuance under the 2021 Equity Incentive Plan ("2021 Plans")	29,419	21,466
2021 Employee Stock Purchase Plan ("ESPP")	4,907	3,008
Total	55,191	45,377

Stock Options

The following table summarizes stock option activity for the 2021 Plan (shares and aggregate intrinsic value in thousands):


	Options Outstanding
	Number of Options Outstanding	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
Balance as of January 31, 2023	9,315	$	1.92	4.6	$	281,837
Stock options exercised	(513)	1.98			14,679
Stock options cancelled/forfeited/expired	(1)	5.70
Balance as of April 30, 2023	8,801	1.92		4.5	219,062
Exercisable as of April 30, 2023	8,678	$	1.77	4.4	$	217,340

The total grant-date fair value of stock options vested was $0.5 million and $1.3 million during the three months ended April 30, 2023 and 2022.

The total intrinsic value of options exercised during the three months ended April 30, 2023 and 2022 were $14.7 million and $34.8 million, respectively.

Restricted Stock Units

The Company’s summary of restricted stock units ("RSUs") activity under the 2021 Plan is as follows (in thousands):


	Number of Awards	Weighted-Average Grant Date Fair Value
Outstanding and unvested at January 31, 2023	11,588	$	42.48
RSUs granted	1,939	$	31.89
RSUs released	(1,071)	$	35.74
RSUs cancelled	(392)	$	42.61
Outstanding and unvested at April 30, 2023	12,064	$	41.37

The total grant-date fair value of RSUs vested was $38.3 million and $17.5 million during the three months ended April 30, 2023 and 2022.

Employee Stock Purchase Plan

A total of 4,907,132 shares of Class A common stock are available for future issuance under the ESPP as of April 30, 2023. For the three months ended April 30, 2023 and 2022, the Company recognized $3.0 million and $3.1 million of stock-based compensation expense related to the ESPP, respectively. As of April 30, 2023, unrecognized stock-based compensation expense related to the ESPP was approximately $19.0 million, which is expected to be recognized over a weighted-average period of approximately 1.6 years. The Company’s current offering period began December 15, 2022 and is expected to end December 15, 2024.

ESPP employee payroll contributions accrued as of April 30, 2023 were $9.4 million and are reported within accrued compensation and benefits in the consolidated balance sheets. Payroll contributions accrued as of April 30, 2023 will be used to purchase shares at the end of the current purchase period ending on June 15, 2023. Payroll contributions ultimately used to purchase shares will be reclassified as stockholders’ equity on the purchase date.

Stock-Based Compensation Expense

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


	Three Months Ended April 30,
	2023		2022
Cost of support	$	2,256	$	1,959
Cost of cloud-hosted services	609		640
Cost of professional services and other	566		728
Sales and marketing	11,959		14,393
Research and development	11,731		14,738
General and administrative	13,042		13,801
Stock-based compensation expense, net of amounts capitalized	$	40,163	$	46,259
Capitalized stock-based compensation	1,103		882
Total stock-based compensation expense	$	41,266	$	47,141

As of April 30, 2023 and 2022, total unrecognized stock-based compensation expense related to RSUs was approximately $359.5 million and $420.6 million, respectively. This unrecognized stock-based compensation expense is expected to be recognized over a weighted-average period of approximately 2.9 years and 3.1 years, respectively.

As of April 30, 2023, and 2022, total unrecognized stock-based compensation expense related to unvested stock options was approximately $0.9 million and $4.0 million, respectively, which are expected to be recognized over a weighted-average period of approximately 1.2 years and 1.5 years, respectively.