Net Income per Share Attributable to Common Stockholders

9 Months Ended

Oct. 31, 2024

Earnings Per Share [Abstract]

Net Income per Share Attributable to Common Stockholders

Note 9. Net Income per Share Attributable to Common Stockholders

Net income attributable to common stockholders is calculated as net income less accretion, dividends, and undistributed earnings attributable to preferred stockholders. Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share attributable to common stockholders 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 October 31,						Nine Months Ended October 31,
	2024			2023			2024			2023
Numerator:
Net income	$	12,893		$	10,656		$	50,611		$	29,797
Accretion and dividend on series A convertible preferred stock		(4,282	)		(4,280	)		(12,832	)		(12,811	)
Undistributed earnings attributable to preferred stockholders		(985	)		(729	)		(4,302	)		(1,938	)
Net income attributable to common stockholders, basic and diluted	$	7,626		$	5,647		$	33,477		$	15,048
Denominator:
Weighted-average number of shares used to compute net income per share attributable to common stockholders, basic		143,479			143,915			144,275			144,296
Dilutive effect of awards issued under employee equity plans		4,234			3,216			3,009			3,943
Dilutive effect of shares related to the convertible senior notes		1,358			494			718			1,112
Weighted-average number of shares used to compute net income per share attributable to common stockholders, diluted		149,071			147,625			148,002			149,351
Net income per share attributable to common stockholders, basic	$	0.05		$	0.04		$	0.23		$	0.10
Net income per share attributable to common stockholders, diluted	$	0.05		$	0.04		$	0.23		$	0.10

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

	Three Months Ended October 31,				Nine Months Ended October 31,
	2024		2023		2024		2023
Options to purchase common stock		—		25		—		7
Restricted stock units		729		3,399		269		58
Employee stock purchase plan		151		910		51		307
Shares related to convertible preferred stock		18,540		18,588		18,540		18,587
Shares related to convertible senior notes		427		—		308		—
Total		19,847		22,922		19,168		18,959