Net income per share attributable to common stockholders

The Company computes net income per share of common stock in conformity with the two-class method required for participating securities. The Company considers its series D-3 redeemable convertible preferred stock to be participating securities as the holders of the preferred stock were entitled to receive a dividend in the event that a dividend is paid on common stock. The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders:



(in thousands, except per share data)	Three months ended October 31,						Nine months ended October 31,
(in thousands, except per share data)	2014			2013			2014			2013
Numerator (basic and diluted):
Net income	$	3,049		$	1,978		$	8,795		$	5,950
Add back (deduction): accretion of redeemable convertible preferred stock	—			(245		)	4,021			(925		)
Less: dividend on redeemable convertible preferred stock and dividend on convertible preferred stock	(21		)	(650		)	(1,286		)	(1,951		)
Less: undistributed income attributed to redeemable convertible preferred stockholders	(8		)	(476		)	(1,285		)	(1,357		)
Net income attributable to common stockholders for basic earnings per share	$	3,020		$	607		$	10,245		$	1,717
Add back: dividend of redeemable convertible preferred stock	15			241			1,286			723
Add back (deduction): accretion on redeemable convertible preferred stock and dividend on convertible preferred stock	—			75			(4,021		)	284
Add back: series D-3 derivative liability revaluations	—			—			735			—
Add back: adjustment to undistributed income attributed to redeemable convertible preferred stockholders	1			290			1,285			796
Net income attributable to common stockholders for diluted earnings per share	$	3,036		$	1,213		$	9,530		$	3,520

Denominator (basic):
Weighted-average common shares outstanding	53,678			5,582			23,232			5,548
Denominator (diluted):
Weighted-average common shares outstanding	53,678			5,582			23,232			5,548
Effect of potential dilutive securities:
Weighted-average dilutive effect of stock options	2,944			1,156			3,290			1,168
Weighted-average dilutive effect of common shares from stock warrants	3			2,579			1,634			2,581
Dilutive effect from preferred stock assuming conversion	928			19,408			21,896			19,408
Weighted-average common shares outstanding	57,553			28,725			50,052			28,705
Net income per share attributable to common stockholders:
Basic	$	0.06		$	0.11		$	0.44		$	0.31
Diluted	$	0.05		$	0.04		$	0.19		$	0.12

For the three months ended October 31, 2014 and 2013, approximately 322,000 and 14.5 million shares, respectively, attributable to outstanding series D-3 redeemable convertible preferred stock, series C redeemable convertible preferred stock and stock options were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive.

For the nine months ended October 31, 2014 and 2013, approximately 164,000 and 14.4 million shares, respectively, attributable to outstanding series D-3 redeemable convertible preferred stock, series C redeemable convertible preferred stock and stock options were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive.