NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Our Convertible Preferred Stock is considered a participating security. Participating securities do not have a contractual obligation to share in our losses. As such, for the periods we incur net losses, there is no impact on the calculated net loss per share attributable to common stockholders in applying the two-class method.

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to potentially dilutive common stock equivalents outstanding for the period, as their effect would be antidilutive. Potentially dilutive common shares include participating securities and shares issuable upon the exercise of stock options, the exercise of common stock warrants, the exercise of convertible preferred stock warrants, the vesting of RSUs, and each purchase under the 2016 ESPP, under the treasury stock method. In loss periods, basic net loss per share and diluted net loss per share are the same, as the effect of potential common shares is antidilutive and therefore excluded.

The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, our undistributed earnings or losses are allocated on a proportionate basis among the holders of both Class A and Class B common stock. As a result, the net income (loss) per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Net Loss Per Share Attributable to Class A and Class B Common Stockholders

The computation of basic and diluted net loss per share is as follows:



	Fiscal Year Ended July 31,
	2016 As Adjusted ⁽¹⁾			2017 As Adjusted ⁽¹⁾			2018
	(in thousands, except share and per share data)
Numerator:
Net loss	$	(108,233	)	$	(379,638	)	$	(297,161	)
Denominator:
Weighted average shares—basic and diluted	43,970,381			128,295,563			164,091,302
Net loss per share—basic and diluted	$	(2.46	)	$	(2.96	)	$	(1.81	)


(1)	Adjusted to include the impact of ASC 606. Refer to Note 3 for more details on the impact of the adoption of this standard.

The potential shares of common stock that would have been excluded from the computation of diluted net loss per share attributable to common stockholders for the fiscal years presented because including them would have been antidilutive are as follows:



	As of July 31,
	2016	2017	2018
Convertible preferred stock	76,319,511	—	—
Outstanding stock options and RSUs	38,432,337	37,710,621	34,930,053
Employee stock purchase plan	—	1,447,385	1,310,653
Common stock subject to repurchase	954,215	243,148	47,691
Contingently issuable shares pursuant to a business combination	—	—	276,625
Common stock warrants	824,094	34,180	34,180
Total	116,530,157	39,435,334	36,599,202

Shares that will be issued in connection with our stock awards and shares that will be purchased under the employee stock purchase plan are generally automatically converted into shares of our Class A common stock. Shares issued in connection with an exercise of the common stock warrants are converted into shares of our Class B common stock and are voluntarily convertible into shares of Class A common stock at the option of the holder.