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Net Income (Loss) Per Share
 3 Months Ended
Oct. 31, 2021
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period using the treasury stock method. For purposes of this calculation, options to purchase common stock, stock awards, and the Convertible Senior Notes are considered to be common stock equivalents.
The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands, except share and per share amounts):  
Three Months Ended October 31,
20212020
Numerator:
   Net income (loss)$(51,276)$(20,190)
Net income (loss) per share:
   Basic$(0.62)$(0.24)
   Diluted$(0.62)$(0.24)
Denominator:
Weighted average shares used in computing net income (loss) per share:
   Basic83,225,743 83,613,287 
   Diluted83,225,743 83,613,287 
The following weighted average shares of potential common stock were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive:
Three Months Ended October 31,
20212020
Stock options24,700 61,472 
Stock awards2,905,346 2,263,076 
Convertible senior notes133,668 — 

Since the Company has the intent and ability to settle the principal amount of the Convertible Senior Notes in cash and any excess in shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on net income per share, if applicable. The conversion spread will have a dilutive impact on net income (loss) per share when the average market price of the Company’s common stock for a given period exceeds the conversion price of $113.75 per share for the Convertible Senior Notes. During the three months ended October 31, 2021, the average market price of the Company's common stock exceeded the conversion price for the Convertible Senior Notes.