Net Loss Per Share

3 Months Ended

Apr. 30, 2020

Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less the weighted-average unvested common stock subject to repurchase or forfeiture. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including convertible senior notes, preferred stock, stock options, RSUs, PSUs and RSAs to the extent dilutive.

The following table sets forth the computation of historical basic and diluted net loss per share:


	Three Months Ended April 30,
(In thousands, except per share amounts)	2020		2019
Numerator:
Net loss	$	(305,579)	$	(155,429)
Denominator:
Weighted-average common shares outstanding	158,350		149,736
Less: Weighted-average unvested common shares subject to repurchase or forfeiture	(816)		(676)
Weighted-average shares used to compute net loss per share, basic and diluted	157,534		149,060

Net loss per share, basic and diluted	$	(1.94)	$	(1.04)

Since we were in a net loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potentially dilutive securities outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:


	As of April 30,
(In thousands)	2020	2019
Shares subject to outstanding common stock options	608	353
Shares subject to outstanding RSUs, PSUs and RSAs	13,592	13,128
Employee stock purchase plan	610	720

Total	14,810	14,201

As we expect to settle the principal amount of our convertible senior notes in cash, we use the treasury stock method for calculating any potential dilutive effect on diluted net income per share, if applicable. The conversion spread of 14.3 million shares will have a dilutive impact on diluted net income per share of common stock when the average market price of our common stock for a given period exceeds the conversion price of $148.30 per share.