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 October 31,						Nine Months Ended October 31,
	2013			2012			2013			2012
	(in thousands, except share and per share data)
Numerator:
Net income	$	9,126		$	6,717		$	20,121		$	14,545
Less: amount allocable to preference shareholders		—			(3,456	)		—			(9,517	)
Less: amount allocable to unvested early exercised options		(8	)		(18	)		(27	)		(53	)


Net income allocable to ordinary shareholders - basic	$	9,118		$	3,243		$	20,094		$	4,975


Undistributed earnings reallocated to ordinary shareholders		—			155			2			432


Net income allocable to ordinary shareholders - diluted	$	9,118		$	3,398		$	20,096		$	5,407


Denominator:
Weighted-average ordinary shares outstanding		27,861,176			12,137,555			27,469,309			9,146,617
Less: weighted-average unvested early exercised options subject to repurchase		(25,090	)		(68,736	)		(37,008	)		(96,753	)


Weighted-average ordinary shares - basic		27,836,086			12,068,819			27,432,301			9,049,864


Effect of potentially dilutive securities:
Employee stock options		2,082,777			1,346,272			1,939,389			1,456,429
Restricted stock units		313,832			—			204,971			—
Employee stock purchase plan		122,535			—			174,877			—
Warrants to purchase ordinary shares		—			—			3,299			—

Weighted-average ordinary shares - diluted		30,355,230			13,415,091			29,754,837			10,506,293


Net income per ordinary share:
Basic	$	0.33		$	0.27		$	0.73		$	0.55


Diluted	$	0.30		$	0.25		$	0.68		$	0.51

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 October 31,				Nine Months Ended October 31,
	2013		2012		2013		2012

Options to purchase ordinary shares		155,940		2,245,018		216,525		2,122,643
Restricted stock units		—		242,014		2,101		80,671
Employee stock purchase plan		42,387		81,422		14,128		28,321
Allotment shares		—		216,000		—		72,000
Early exercised options subject to repurchase		25,090		68,736		37,008		96,753
Redeemable convertible preference shares (if-converted basis)		—		9,986,795		—		12,197,983
Warrants to purchase redeemable convertible preference shares (if-converted basis)		—		27,219		—		33,246


		223,417		12,867,204		269,762		14,631,617