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Equity Plans and Stock-based Compensation
 6 Months Ended
Jul. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Equity Plans and Stock-based Compensation Equity Plans and Stock-based Compensation
The following sets forth the total stock-based compensation expense for employee equity plans included in the Company’s condensed consolidated statements of operations:

Three Months Ended
July 31,		Six Months Ended
July 31,
2022202120222021
(in thousands)
Cost of revenue$1,341 $2,164 $2,126 $2,188 
Research and development11,420 13,682 17,398 14,357 
Sales and marketing5,285 4,169 7,831 4,767 
General and administrative8,373 8,278 14,591 14,558 
Total stock-based compensation expense$26,419 $28,293 $41,946 $35,870 
The following sets forth the total stock-based compensation expense by award type:
Three Months Ended
July 31,		Six Months Ended
July 31,
2022202120222021
(in thousands)
Stock Options$4,210 $4,440 $8,346 $12,017 
RSU18,587 23,853 28,213 23,853 
PRSU1,953 — 1,953 — 
ESPP1,669 — 3,434 — 
Total stock-based compensation expense$26,419 $28,293 $41,946 $35,870 
The following sets forth the unrecognized stock-based compensation expense and the weighted average period they are expected to be recognized:
July 31, 2022
Unrecognized Stock-Based Compensation ExpenseWeighted-Average Period
(in thousands, except period in years)
Stock Options$24,007 1.31
RSU164,193 3.49
PRSU19,046 2.87
ESPP9,028 1.61
Total unrecognized stock-based compensation expense$216,274 
2021 Employee Stock Purchase Plan
On February 25, 2021, the stockholders of the Company approved the 2021 Employee Stock Purchase Plan (“2021 ESPP”). The 2021 ESPP permits participants to purchase shares of the Company’s Common Stock, up to the IRS allowable limit, through contributions (in the form of payroll deductions or otherwise to the extent permitted by the administrator) of up to 15% of their eligible compensation. The 2021 ESPP provides for consecutive, overlapping 24-month offering periods, subject
to certain rollover and reset mechanisms as defined in the ESPP. Participants are permitted to purchase shares of the Company’s Common Stock at the end of each 6-month purchase period at 85% of the lower of the fair market value of the Company’s Common Stock on the first trading day of an offering period or on the last trading date in each purchase period. A participant may purchase a maximum of 10,000 shares of the Company’s Common Stock during a purchase period. Participants may end their participation at any time during an offering and will be paid their accrued contributions that have not yet been used to purchase shares. Participation ends automatically upon termination of employment with the Company. The initial offering period is from October 1, 2021 through September 9, 2023. The 2021 ESPP allows for up to one increase in contribution during each purchase period. The pre- and post-modification fair values are calculated on the date of the modification. The 2021 ESPP offers a rollover feature that provides for an offering period to be rolled over to a new lower-priced offering if the offering price of the new offering period is less than that of the current offering period. The 2021 ESPP rollover occurred when the Company’s closing stock price on March 10, 2022 was below the closing stock price on October 1, 2021, which triggered a new 24-month offering period through March 9, 2024. If an employee elects to increase his or her contribution, or the offering price resets an accounting modification occurs. The incremental expense as a result of such modifications was immaterial for the three and six months ended July 31, 2022, respectively.
Further, on the first day of each March during the term of the 2021 ESPP, commencing on March 1, 2021 and ending on (and including) March 1, 2040, the aggregate number of shares of Common Stock that may be issued under the 2021 ESPP shall automatically increase by a number equal to the lesser of (i) one percent (1%) of the total number of shares of Common Stock issued and outstanding on the last day of the preceding month, (ii) 5,400,000 shares of Common Stock (subject to standard anti-dilution adjustments), or (iii) a number of shares of Common Stock determined by the Company’s Board of Directors. As of July 31, 2022, 11,263,328 shares of Common Stock were available under the 2021 ESPP.
During the three and six months ended July 31, 2022, nil and 263,962 shares of Common Stock have been purchased under the 2021 ESPP, respectively.
2021 Equity Incentive Plan
On February 25, 2021, the stockholders of the Company approved the 2021 Equity Incentive Plan (“2021 EIP”). Under the 2021 EIP, the Company can grant stock options, stock appreciation rights, restricted stock, restricted stock units (“RSU”), performance restricted stock units (“PRSU”), and certain other awards which are settled in the form of shares of Common Stock issued under this 2021 EIP. On the first day of each March, beginning on March 1, 2021 and continuing through March 1, 2030, the 2021 EIP reserve will automatically increase by a number equal to the lesser of (a) 5% of the total number of shares of Common Stock actually issued and outstanding on the last day of the preceding month and (b) a number of shares of Common Stock determined by the Company’s Board of Directors. As of July 31, 2022, 40,909,760 shares of Common Stock were available under the 2021 EIP.
There were no options granted for the three and six months ended July 31, 2022.
2017 Plan and 2007 Plan
In fiscal year 2022, the Company terminated its 2017 Stock Option Plan (the “2017 Plan”) and 2007 Stock Option Plan (the “2007 Plan”). As of July 31, 2022, 17,037,742 shares and 2,243,034 shares of Common Stock remained reserved for outstanding awards issued under the 2017 Plan and 2007 Plan, respectively. Stock-based awards forfeited, cancelled or repurchased from the above plans generally are returned to the pool of shares of Common Stock available for issuance under the 2021 EIP.
Restricted Stock Units
The 2021 EIP provides for the issuance of RSUs to employees and directors.
A summary of RSUs outstanding under the 2021 EIP as of July 31, 2022 and changes during the period then ended is presented in the following table:
 Number of SharesWeighted Average Grant Date Fair Value per Share
Outstanding as of January 31, 20224,033,418 $26.27 
RSU granted10,930,410 $12.61 
RSU vested(1,176,506)$21.17 
RSU forfeited(409,603)$18.67 
Outstanding as of July 31, 202213,377,719 $15.79 
Performance Restricted Stock Units
On June 1, 2022, pursuant to the 2021 EIP, the Company granted PRSU to certain officers including the Company’s Chief Executive Officer. Vesting of the PRSU is dependent upon the satisfaction of both market- and service-based conditions. The market-based condition is achieved if the closing price of the Company’s Common Stock is greater than or equal to the applicable stock price appreciation target for at least 20 consecutive trading days at any time during the period beginning the date of the grant and ending on the expiration date. There are three stock appreciation targets applicable to each PRSU award, the achievement of which will cause the market-based condition to be satisfied with respect to the following percentage of each award (each of which is called a tranche): $17 per share/25% of total PRSUs, $22 per share/35% of the total PRSUs and $30 per share/40% of the total PRSUs.
For officers other than the Company’s Chief Executive Officer, the service-based conditions applicable to 1/20th of the PRSUs subject to each tranche will be satisfied if such officer remains in continuous service from the date of the grant until each PRSU vesting date occurring after June 20, 2022 or, if later, until the first PRSU vesting date after the applicable stock price appreciation target is achieved. The PRSU vesting dates are each March 20th, June 20th, September 20th, and December 20th. For the Company’s Chief Executive Officer, the service-based conditions applicable to 1/12th of the PRSUs subject to each tranche will be satisfied if he remains in continuous service from the date of the grant until each PRSU vesting date occurring after June 20, 2024 or, if later, until the first PRSU vesting date after the applicable stock price appreciation target is achieved.
The Company records stock-based compensation based on the fair value of the PRSU on grant date using the Monte-Carlo valuation. The weighted-average assumptions in the Monte-Carlo valuation used to determine the fair value of the PRSU granted were as follows:
June 1, 2022
Expected volatility74.02 %
Risk-free interest rate2.78 %
Dividend rate— %
Expected term (in years)
0.71 - 1.73
Expected volatility: the expected volatility was determined by using a blended volatility approach of historical volatility and implied volatility.
Risk-free interest rate: the risk-free interest rate is based on the U.S. Treasury Constant Maturities yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term of the options.
Expected dividend yield: the expended dividend rate is zero as the Company currently has no history or expectation of declaring dividends on its common stock.
Expected term: the expected term input for the award with a market condition is based upon the derived service period (“DSP”). The DSP represents the duration of the median of the distribution of stock-price paths on which the market condition is satisfied.
A summary of PRSUs outstanding under the 2021 EIP as of July 31, 2022 and changes during the period then ended is presented in the following table:
 Number of SharesWeighted Average Grant Date Fair Value per Share
Outstanding as of January 31, 2022— $— 
PRSU granted2,005,726 $10.47 
Outstanding as of July 31, 20222,005,726 $10.47 
Stock Options Activity
A summary of options outstanding under the 2017 Plan and 2007 Plan as of July 31, 2022 and changes during the periods then ended is presented in the following table:
 Number of Stock Option AwardsWeighted Average Exercise PriceWeighted Average Remaining Contractual term (in years)Aggregate Intrinsic Value (in thousands)
Outstanding as of January 31, 202222,200,869 $0.68 6.6$292,362 
Options exercised(2,602,432)$0.58 
Options cancelled(317,661)$0.75 
Outstanding as of July 31, 202219,280,776 $0.69 6.3$277,956 
Options vested and expected to vest as of July 31, 202219,209,593 $0.69 6.3$276,935 
Exercisable as of July 31, 202214,592,828 $0.67 5.9$210,669 
The options outstanding as of July 31, 2022, include the June 2020 grant of a stock option under the 2017 Plan to the Company’s Chief Executive Officer to purchase a total of 1.5 million shares of Common Stock (“CEO Award”) originally subject to both service and performance-based vesting conditions. No stock-based compensation expense had been recorded prior to the Merger as the CEO Awards were improbable of vesting before and after two modifications in each of September 2020 and December 2020, because the performance-based vesting condition was contingent upon the closing of the Merger. Accordingly, the Company commenced recognition of stock-based compensation expense for the CEO Award following the Merger in February 2021 when the only remaining vesting condition was service-based. As of July 31, 2022, the total unrecognized compensation expense related to the unvested portion of the CEO Award was $21.2 million, which is expected to be recognized over a period of 1.5 years.