Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v3.24.1
Stock-Based Compensation (Tables)
 12 Months Ended
Jan. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Activity
A summary of the Company’s stock option activity for the year ended January 31, 2024 is as follows:
Number of Stock Options
Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value
(in thousands) (in years) (in thousands)
Outstanding as of January 31, 2023
 33,049  $ 6.11  6.6 $ 135,831 
Granted 1,512  12.85 
Exercised (7,503) 5.79 
Cancelled/forfeited(1)
(3,786) 6.04 
Expired (5) 0.25 
Outstanding as of January 31, 2024
 23,267  $ 6.66  5.9 $ 136,602 
Exercisable as of January 31, 2024
 19,504  $ 5.80  5.6 $ 130,755 
Vested and expected to vest as of January 31, 2024
 22,875  $ 6.60  5.9 $ 135,629 
(1) 2,318,632 options tied to market conditions were cancelled during the second quarter as the applicable market conditions were not met by May 1, 2023.
Year Ended January 31,
(in thousands)
 2024 2023 2022
Intrinsic value of options exercised $ 58,565  $ 32,391  $ 83,387 
Estimated grant date fair value of options vested in the period $ 12,954  $ 32,085  $ 29,256 
Summary of Assumptions Used to Estimate Fair Value of Options Granted to Employees The following assumptions were used to estimate the fair value of options granted to employees:
Year Ended January 31,
2024 2023 2022
Expected term (in years) 6.1
(a)
 6.0
Risk-free interest rate
3.5%
(a)
0.9% - 1.4%
Expected volatility
60.1%
(a)
50.9% - 52.1%
Expected dividend rate 0% (a) 0%
Fair value of common stock
$12.85
 (a)
$10.96 - $14.02
(a) In fiscal year ended January 31, 2023, no stock options were granted.
The fair value of share purchase rights granted under the ESPP was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:
Year Ended January 31,
2024 2023 2022
Expected term (in years)
0.5 - 1.0
0.5 - 1.0
0.5 - 1.0
Risk-free interest rate
4.9% - 5.3%
2.2% - 4.6%
0.1% - 0.3%
Expected volatility
49.4% - 67.4%
66.2% - 81.9%
49.3% - 57.0%
Expected dividend rate 0%
0%
0%
Fair value of common stock
$11.48 - $14.58
$8.84 - $9.84
$14.27 - $22.37
Summary of RSU Award Activity
A summary of the Company’s RSU activity for the year ended January 31, 2024 is as follows:
(in thousands except per share data)
Number of Restricted Stock Units
 Weighted Average Grant Date Fair Value
Outstanding as of January 31, 2023
 9,400 $ 12.23 
Granted 6,319 13.00 
Released (3,445) 12.41 
Cancelled/forfeited (3,015) 12.49 
Outstanding as of January 31, 2024
 9,259 $ 12.61 
Summary of Stock-based Compensation Expense
Stock-based compensation expense included in operating results was allocated as follows:
Year Ended January 31,
(in thousands) 2024 2023 2022
Cost of subscription $ 1,130  $ 1,528  $ 1,794 
Cost of professional 1,450  2,249  2,448 
Research and development 11,566  10,678  6,417 
Sales and marketing 24,477  26,651  19,929 
General and administrative
 17,134  14,411  19,543 
Stock-based compensation, net of amounts capitalized 55,757  55,517  50,131 
Capitalized stock-based compensation 2,473  2,540  696 
Total stock-based compensation $ 58,230  $ 58,057  $ 50,827 
Year Ended January 31,
(in thousands) 2024 2023 2022
Equity classified awards (1)
$ 57,230  $ 57,057  $ 49,827 
Other awards (2)
1,000  1,000  1,000 
Total stock-based compensation $ 58,230  $ 58,057  $ 50,827 
Year Ended January 31,
(in thousands) 2024 2023 2022
Stock options (3)
$ 15,125  $ 23,454  $ 36,385 
Performance-based stock units (4)
(296) (55) 897 
Restricted stock units (3)
38,684  24,963  3,196 
Employee stock purchase plan 3,717  8,695  6,142 
Deferred stock compensation plan —  —  3,206 
Total stock-based compensation $ 57,230  $ 57,057  $ 49,827 
(1) Expense associated with equity-classified awards includes $3.7 million, $8.6 million and $6.1 million of ESPP expense recognized during the years ended January 31, 2024, 2023 and 2022, respectively.
(2) Non-employee grant recorded over five years, representing the same period and in the same manner as if the grantor had paid cash for the services instead of paying with or using the share-based payment award.
(3) Stock-based compensation for the year ended January 31, 2022 includes the acceleration of the expense recognized upon the effectiveness of the Company’s registration statement for the Chief Executive Officer’s performance-based stock options. Similarly, the acceleration of the expense for performance-based RSUs upon the effectiveness of the Company’s registration statement is captured within the stock-based compensation for RSUs for the year ended January 31, 2022.
(4) The stock-based compensation for performance-based stock units during the year ended January 31, 2023 includes the impact of stock-based compensation modifications.
Summary of Unrecognized Compensation Cost Related to Unvested Awards Not Yet Recognized
As of January 31, 2024, total unrecognized compensation cost related to unvested awards not yet recognized under all equity compensation plans, was as follows:
January 31, 2024
(in thousands) Unrecognized Expense Weighted Average Expense Recognition Period (in years)
Stock options $ 15,701  1.9
Performance share units $ 361  2.0
Restricted stock units $ 81,560  2.7
ESPP $ 2,875  0.9