Net Income Per Ordinary Share

6 Months Ended

Jul. 31, 2013

Earnings Per Share [Abstract]

Net Income Per Ordinary Share

8. 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:

	Three Months Ended July 31,						Six Months Ended July 31,
	2013			2012			2013			2012
	(in thousands, except share and per share data)
Numerator:
Net income	$	6,254		$	5,226		$	10,995		$	7,828
Less: amount allocable to preference shareholders		—			(3,689	)		—			(5,719	)
Less: amount allocable to unvested early exercised options		(8	)		(15	)		(17	)		(26	)
Net income allocable to ordinary shareholders - basic	$	6,246		$	1,522		$	10,978		$	2,083
Undistributed earnings reallocated to ordinary shareholders		1			179			1			248
Net income allocable to ordinary shareholders - diluted	$	6,247		$	1,701		$	10,979		$	2,331
Denominator:
Weighted-average ordinary shares outstanding		27,443,622			7,679,674			27,273,376			7,651,418
Less: weighted-average unvested early exercised options subject to repurchase		(34,279	)		(75,231	)		(41,234	)		(94,073	)
Weighted-average ordinary shares - basic		27,409,343			7,604,443			27,232,142			7,557,345
Effect of potentially dilutive securities:
Employee stock options		2,046,623			1,510,484			1,867,695			1,511,417
Restricted stock units		159,434			—			150,541			—
Employee stock purchase plan		231,278			—			201,048			—
Warrants to purchase ordinary shares		1,998			—			4,948			—
Weighted-average ordinary shares - diluted		29,848,676			9,114,927			29,456,374			9,068,762
Net income per ordinary share:
Basic	$	0.23		$	0.20		$	0.40		$	0.28
Diluted	$	0.21		$	0.19		$	0.37		$	0.26

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 and participating securities 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:

	Three Months Ended July 31,				Six Months Ended July 31,
	2013		2012		2013		2012
Options to purchase ordinary shares		102,707		2,075,968		246,817		2,061,455
Restricted stock units		—		—		3,151		—
Early exercised options subject to repurchase		34,279		75,231		41,234		94,073
Redeemable convertible preference shares (if-converted basis)		—		13,315,727		—		13,315,727
Warrants to purchase redeemable convertible preference shares (if-converted basis)		—		36,292		—		36,292
		136,986		15,503,218		291,202		15,507,547