
	Three Months Ended April 30,
	2023		2022
Cost of revenue	$	4,173	$	1,848
Research and development	14,790		10,463
Sales and marketing	12,596		7,096
General and administrative	23,990		12,223
Total	$	55,549	$	31,630


	Number of Shares	Weighted-Average Grant Date Fair Value
Outstanding as of January 31, 2023	14,409,166	$	27.37
Granted	14,654,468	16.31
Released	(759,416)	36.50
Forfeited	(868,611)	22.15
Outstanding as of April 30, 2023	27,435,607	$	21.38

As of April 30, 2023, we had unrecognized stock-based compensation expense related to unvested RSUs of $523.1 million that is expected to be recognized on a straight-line basis over a weighted-average period of 3.5 years.


	Number of Options	Weighted-Average Exercise Price
Outstanding as of January 31, 2023	32,446,814	$	4.71
Granted	—	$	—
Exercised	(3,701,792)	$	2.64
Forfeited	(295,729)	$	4.69
Outstanding as of April 30, 2023	28,449,293	$	4.98
Expected to vest as of April 30, 2023	28,449,293	$	4.98
Vested and exercisable as of April 30, 2023	17,972,283	$	3.78

As of April 30, 2023, we had unrecognized stock-based compensation expense related to unvested options of $87.6 million that is expected to be recognized on a straight-line basis over a weighted-average period of 2.1 years.

In March 2021, we granted options to purchase 1,404,605 shares of Class B common stock subject to service-based, performance-based, and market-based vesting conditions to our Chief Executive Officer and Chief Financial Officer under our 2013 Equity Incentive Plan. These stock options will vest 100% upon the occurrence of (a) our initial public offering (IPO) (the performance-based vesting condition), which was completed in June 2021, and (b) the achievement of certain share price targets (the market-based vesting conditions), subject to the executive’s continued service to us from the grant date through the milestone events. As of April 30, 2023, the share price targets have not been achieved, therefore, these stock options remain unvested. For these options, we used a Monte Carlo simulation to determine the fair value at the grant date and the implied service period.

During the three months ended April 30, 2023 and 2022, we recorded $0.9 million and $0.9 million, respectively, of stock-based compensation expense related to these milestone options. As of April 30, 2023, we had unrecognized stock-based compensation expense related to these milestone options of $11.8 million that is expected to be recognized over the remaining implied service period of 3.3 years.

In March 2023, we granted PSUs covering 1,031,284 shares of Class A common stock at target to certain executives subject to service-based and performance-based vesting conditions. These PSUs may vest from —% to 225% of the number of target shares based on the achievement of certain financial performance metrics and will vest over four years from the grant date. During the three months ended April 30, 2023, we recorded $0.5 million of stock-based compensation expense related to these PSUs. As of April 30, 2023, we had unrecognized stock-based compensation expense related to these PSUs of $7.3 million that is expected to be recognized over the remaining vesting period of 3.8 years.

In connection with the acquisition of Attivo, we issued 63,327 shares of restricted Class A common stock to Attivo’s employees. We recorded stock-based compensation expense related to these restricted shares of $0.3 million during the three months ended April 30, 2023. As of April 30, 2023, we had unrecognized stock-based compensation expense related to this unvested restricted common stock of $0.7 million.

In connection with the acquisition of Scalyr, Inc. (Scalyr) in February 2021, we issued 1,315,099 shares of restricted common stock. During the three months ended April 30, 2023 and 2022, we recorded $0.2 million and $2.1 million, respectively, of stock-based compensation expense related to these restricted shares. As of April 30, 2023, this restricted common stock had fully vested.

We recognized stock-based compensation expense related to the Employee Stock Purchase Plan (ESPP) of $3.0 million and $2.8 million, respectively, during the three months ended April 30, 2023 and 2022, respectively.

During the three months ended April 30, 2023, we recorded $0.2 million in expense related to modification of our ESPP as a result of the decrease in our stock price in July 2022 and January 2023 which triggered resets of the ESPP offering periods in accordance with our plan. We expect to record the remaining $0.1 million in expense related to these modifications through the second quarter of 2024.

In connection with the Attivo Acquisition, we granted 539,795 shares of restricted stock units (RSUs) under our 2021 Equity Incentive Plan that will vest over a period of three years contingent on continued employment of certain Attivo employees, for which stock-based compensation expense will be recognized ratably over the vesting period.

In connection with the Attivo Acquisition, we assumed unvested stock options that were granted under the Attivo 2011 Equity Incentive Plan (Attivo Plan). We do not intend to grant any additional shares under the Attivo Plan and the Attivo Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder. Any shares underlying stock options that are expired, canceled, forfeited or repurchased under the Attivo Plan will be automatically available for issuance as Class A common stock pursuant to our 2021 Equity Incentive Plan.

During the third quarter of fiscal 2023, certain members of our management team converted to non-employee consultants. The transition has been accounted for as a modification, under which, the exercise period of certain vested awards has been extended and a certain number of unvested awards will vest through the end of the consulting agreements.

During the first quarter of fiscal 2024, we recognized an incremental charge of $2.0 million related to the transition of these employees to non-employee consultants and expect to recognize an aggregate of an additional $4.2 million in expense over the requisite service period through the fourth quarter of 2024.