Net Income Per Ordinary Share

12 Months Ended

Jan. 31, 2013

Net Income Per Ordinary Share

10. Net Income Per Ordinary Share

The following table sets forth the computation of basic and diluted net income per ordinary share for the periods indicated:

	Year Ended January 31,
	2013			2012			2011
	(in thousands, except share and per share data)
Numerator:
Net income	$	18,188		$	9,821		$	13,929
Less: amount allocable to preference shareholders		(9,517	)		(7,204	)		(9,749	)
Less: amount allocable to unvested early exercised options		(61	)		(51	)		(172	)
Net income allocable to ordinary shareholders—basic	$	8,610		$	2,566		$	4,008
Undistributed earnings reallocated to ordinary shareholders		432			277			514
Net income allocable to ordinary shareholders—diluted	$	9,042		$	2,843		$	4,522
Denominator:
Weighted-average ordinary shares outstanding		13,599,273			8,118,834			7,779,624
Less: weighted-average unvested early exercised options subject to repurchase		(87,627	)		(156,890	)		(320,997	)
Weighted-average ordinary shares—basic		13,511,646			7,961,944			7,458,627
Effect of potentially dilutive securities:
Employee stock options		1,443,809			1,507,876			1,648,446
Restricted stock units		16,930			—			—
Employee stock purchase plan		27,230			—			—
Warrants to purchase ordinary shares		6,737			—			—
Over-allotment shares		10,634			—			—
Weighted-average ordinary shares—diluted		15,016,986			9,469,820			9,107,073
Net income per ordinary share:
Basic	$	0.64		$	0.32		$	0.54
Diluted	$	0.60		$	0.30		$	0.50

Earnings per share (EPS) of ordinary shares was calculated using the two-class method required for participating securities. Prior to the date of the IPO, all series of redeemable convertible preference shares were considered to be participating securities due to their non-cumulative dividend rights. In connection with the Company’s IPO in October 2012, all outstanding redeemable convertible preference shares converted to ordinary shares. Net income has been allocated to the ordinary shares, redeemable convertible preference shares and unvested early exercised options based on their respective rights to share in net income and weighted-average outstanding during the periods.

The following weighted-average potentially dilutive securities were excluded from the computation of diluted net income per ordinary share as their effect would have been antidilutive:

	Year Ended January 31,
	2013		2012		2011
Options to purchase ordinary shares		2,053,520		1,698,505		637,090
Restricted stock units		60,504		—		—
Employee stock purchase plan		20,356		—		—
Early exercised options subject to repurchase		87,627		156,890		320,997
Redeemable convertible preference shares (if-converted basis)		9,131,824		12,344,993		12,268,131
Warrants to purchase redeemable convertible preference shares (if-converted basis)		—		36,292		36,292
Warrants to purchase ordinary shares		24,889		—		—
		11,378,720		14,236,680		13,262,510