Net Income per Share Attributable to Common Stockholders

6 Months Ended

Jul. 31, 2024

Net Income per Share Attributable to Common Stockholders

Note 9. Net Income per Share Attributable to Common Stockholders

Basic net income per share is computed by dividing net income by the weighted-average number of common stocks outstanding for the period. Diluted net income per share is computed by giving effect to all potential weighted-average dilutive common stock, including stock options, restricted stock units, ESPP, and convertible senior notes.

The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts):


	Three Months Ended July 31,						Six Months Ended July 31,
	2024			2023			2024			2023
Numerator:
Net income	$	20,496		$	10,791		$	37,718		$	19,141
Accretion and dividend on series A convertible preferred stock		(4,310	)		(4,307	)		(8,550	)		(8,531	)
Undistributed earnings attributable to preferred stockholders		(1,845	)		(740	)		(3,313	)		(1,209	)
Net income attributable to common stockholders, basic and diluted	$	14,341		$	5,744		$	25,855		$	9,401

Denominator:
Weighted-average number of shares used to compute net income per share attributable to common stockholders, basic		144,070			144,248			144,678			144,490
Dilutive effect of awards issued under employee equity plans		2,098			4,366			2,395			4,307
Dilutive effect of shares related to the convertible senior notes		357			1,393			561			1,421
Weighted-average number of shares used to compute net income per share attributable to common stockholders, diluted		146,525			150,007			147,634			150,218

Net income per share attributable to common stockholders, basic	$	0.10		$	0.04		$	0.18		$	0.07
Net income per share attributable to common stockholders, diluted	$	0.10		$	0.04		$	0.18		$	0.06

The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because the impact of including them would have been antidilutive (in thousands):


	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Options to purchase common stock		25		7		25		7
Restricted stock units		7,303		80		5,453		56
Employee stock purchase plan		1,638		1,977		1,242		1,508
Shares related to convertible preferred stock		18,541		18,587		18,540		18,586
Total		27,507		20,651		25,260		20,157