NET LOSS PER SHARE

9 Months Ended

Apr. 30, 2019

Basic net income (loss) per share is computed using 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 during the period, as their effect would be dilutive. 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.

The computation of basic and diluted net loss per share attributable to Class A and Class B common stockholders is as follows:



	Three Months Ended April 30,						Nine Months Ended April 30,
	2018			2019			2018			2019
	(in thousands, except share and per share data)
Numerator:
Net loss	$	(85,674	)	$	(209,813	)	$	(209,792	)	$	(426,841	)
Denominator:
Weighted average shares—basic and diluted	166,845,544			182,962,921			161,709,365			179,235,498
Net loss per share attributable to common stockholders—basic and diluted	$	(0.51	)	$	(1.15	)	$	(1.30	)	$	(2.38	)

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



	Three and Nine Months Ended April 30,
	2018	2019
Outstanding stock options and RSUs	35,206,318	32,337,562
Employee stock purchase plan	1,341,470	1,657,333
Contingently issuable shares pursuant to business combinations	276,625	748,172
Common stock subject to repurchase	73,360	6,251
Common stock warrants	34,180	34,180
Total	36,931,953	34,783,498