Net Loss Per Share

12 Months Ended

Jan. 31, 2020

The Company computes net loss per share of common stock in conformity with the two-class method required for participating securities. The Company considers all series of preferred stock to be participating securities as the holders of the preferred stock are entitled to receive a non-cumulative dividend on a pari passu basis in the event that a dividend is paid on the common stock. The holders of the preferred stock do not have a contractual obligation to share in the Company’s losses. As such, the Company’s net loss for the year ended January 31, 2018 was not allocated to these participating securities. Upon the closing of the IPO in April 2017, all shares of the Company’s then-outstanding redeemable convertible preferred stock automatically converted into the Company’s common stock.

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



	Year Ended January 31,
	2020						2019						2018
	Class A			Class B			Class A			Class B			Class A			Class B
Numerator:
Net loss	$	(192,138	)	$	(16,775	)	$	(107,926	)	$	(17,571	)	$	(31,980	)	$	(77,869	)
Denominator:
Weighted-average shares outstanding, basic and diluted	107,809			9,412			92,452			15,052			24,165			58,839
Net loss per share, basic and diluted	$	(1.78	)	$	(1.78	)	$	(1.17	)	$	(1.17	)	$	(1.32	)	$	(1.32	)

As the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):



	Year Ended January 31,
	2020	2019	2018
Issued and outstanding stock options	12,359	17,804	24,917
Unvested RSUs issued and outstanding	4,893	4,836	2,863
Unvested restricted stock awards issued and outstanding	177	388	599
Unvested shares subject to repurchase	5	48	188
Unvested restricted common stock issued and outstanding	—	400	800
Shares committed under the ESPP	253	271	1,149
Shares related to 2023 convertible senior notes	2,494	7,134	—
Shares subject to warrants related to the issuance of 2023 convertible senior notes	2,494	—	—
Shares related to 2025 convertible senior notes	5,617	—	—
	28,292	30,881	30,516

The Company uses the if-converted method for calculating any potential dilutive effect of the conversion options embedded in the Notes on diluted net income per share, if applicable. The conversion options of the 2023 and 2025 Notes and exercise rights of the Warrants will have a dilutive impact on net income per share of common stock when the average market price per share of the Company’s Class A common stock for a given period exceeds the conversion prices of $48.36 per share, $188.71 per share and exercise price of $68.06 per share, respectively. During the year ended January 31, 2020, the weighted average price per share of the Company’s Class A common stock exceeded the conversion price of the 2023 Notes and the exercise price of the Warrants; however, since the Company was in a net loss position there was no dilutive effect during any period presented.