Basic and Diluted Net Loss Per Share

6 Months Ended

Jul. 31, 2020

Note 9: Basic and Diluted Net Loss Per Share

Basic and diluted net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share of common stock is the same as basic net loss per share of common stock because the effects of potentially dilutive securities are antidilutive as the Company reported net losses for all periods presented.

The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except share and per share data):

	Three Months Ended						Six Months Ended
	July 31, 2020			July 31, 2019			July 31, 2020			July 31, 2019
Numerator
Net loss	$	(367	)	$	(4,983	)	$	(1,433	)	$	(9,723	)
Denominator
Weighted-average common shares		22,232,176			20,849,935			22,066,771			20,667,905
Basic and diluted net loss per share	$	(0.02	)	$	(0.24	)	$	(0.06	)	$	(0.47	)

Potentially dilutive securities of approximately 3.7 million and 4.0 million were excluded from the computation of diluted net loss per share for the three and six months ended July 31, 2020 and 2019, respectively. These shares included the Company’s outstanding RSUs, outstanding stock options and stock purchase rights under the ESPP at the end of the respective period. In the event the Company reported net income for the periods presented, a portion of these outstanding securities would be reflected in weighted-average shares outstanding for diluted earnings per share by application of the treasury method.