Net Income (Loss) Per Share

9 Months Ended

Oct. 31, 2021

Basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, net of treasury stock. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive shares of common stock, including our outstanding stock options, unvested RSUs, PRSUs, and RSAs, convertible senior notes, outstanding warrants, and ESPP obligations.

The net income (loss) per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common shares and Class B common shares as if the income (loss) for the period had been distributed. As the liquidation and dividend rights are identical, the net income (loss) attributable to common stockholders is allocated on a proportionate basis. The computation of the diluted net income (loss) per share of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income (loss) per share of Class B common stock does not assume the conversion of those shares.

Basic and diluted net loss per share was the same for the three and nine months ended October 31, 2020, as the inclusion of all potential common shares outstanding would have been anti-dilutive.

The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data):


	Three Months Ended October 31,								Nine Months Ended October 31,
	2021				2020				2021				2020
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Net income (loss) per share, basic:
Numerator:
Net income (loss)	$	33,417	$	9,995	$	(18,199)	$	(6,141)	$	78,546	$	24,080	$	(156,526)	$	(54,198)
Denominator:
Weighted-average shares outstanding, basic	191,259		57,209		178,004		60,055		188,546		57,802		175,071		60,614
Net income (loss) per share, basic	$	0.17	$	0.17	$	(0.10)	$	(0.10)	$	0.42	$	0.42	$	(0.89)	$	(0.89)
Net income (loss) per share, diluted:
Numerator:
Net income (loss)	33,417		9,995		(18,199)		(6,141)		78,546		24,080		(156,526)		(54,198)

Reallocation of net income and interest expense as a result of conversion of Class B to Class A common stock	9,995		—		—		—		24,080		—		—		—
Reallocation of net income and interest expense to Class B common stock	—		(247)		—		—		—		(718)		—		—
Net income (loss) for diluted calculation	43,412		9,748		(18,199)		(6,141)		102,626		23,362		(156,526)		(54,198)
Denominator:
Weighted-average shares outstanding, basic	191,259		57,209		178,004		60,055		188,546		57,802		175,071		60,614
Conversion of Class B to Class A common stock	57,209		—		—		—		57,802		—		—		—
Shares related to outstanding options, unvested RSUs, PRSUs, RSAs, and ESPP obligations	4,933		—		—		—		6,456		—		—		—

Shares subject to warrants related to the issuance of convertible senior notes	1,359		—		—		—		1,113		—		—		—
Weighted-average shares outstanding, diluted	254,760		57,209		178,004		60,055		253,917		57,802		175,071		60,614
Net income (loss) per share, diluted	$	0.17	$	0.17	$	(0.10)	$	(0.10)	$	0.40	$	0.40	$	(0.89)	$	(0.89)

The weighted-average number of shares outstanding used in the computation of diluted net income (loss) per share does not include the effect of the following potentially outstanding shares of common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net income (loss) per share because the effect would have been anti-dilutive (in thousands):


	Three Months Ended October 31,		Nine Months Ended October 31,
	2021	2020	2021	2020
Shares related to outstanding options, unvested RSUs, PRSUs, RSAs, and ESPP obligations	151	18,169	189	17,125
Shares related to the convertible senior notes	7,817	7,818	7,817	9,670
Shares subject to warrants related to the issuance of convertible senior notes	—	10,857	—	10,870
Total	7,968	36,844	8,006	37,665