Net Loss Per Share

6 Months Ended

Jul. 31, 2016

Note 9. Net Loss per Share

We calculate our basic and diluted net loss per share in conformity with the two-class method required for companies with participating securities. Under the two-class method, basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, less shares subject to repurchase. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock units, employee stock purchase plan, repurchasable shares from early exercised options and unvested restricted stock, and contingently issuable shares are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive.

The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. We did not present dilutive net loss per share on an as-if converted basis because the impact was not dilutive.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts):

	Three Months Ended July 31,
	2016						2015
	Class A			Class B			Class A			Class B
Numerator:
Net loss	$	(15,305	)	$	(22,797	)	$	(9,391	)	$	(40,784	)

Denominator:
Weighted-average number of shares outstanding—basic and diluted		50,925			75,851			22,535			97,864
Net loss per share—basic and diluted	$	(0.30	)	$	(0.30	)	$	(0.42	)	$	(0.42	)

	Six Months Ended July 31,
	2016						2015
	Class A			Class B			Class A			Class B
Numerator:
Net loss	$	(28,983	)	$	(47,694	)	$	(15,396	)	$	(82,062	)

Denominator:
Weighted-average number of shares outstanding—basic and diluted		47,575			78,289			18,941			100,956
Net loss per share—basic and diluted	$	(0.61	)	$	(0.61	)	$	(0.81	)	$	(0.81	)

The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net loss 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,
	2016		2015		2016		2015
Options to purchase common stock		13,782		17,079		14,338		17,080
Restricted stock units		10,218		7,189		9,305		6,434
Employee stock purchase plan		2,906		3,108		2,891		3,079
Repurchasable shares from early-exercised options and unvested restricted stock		346		607		370		628
Contingently issuable common stock		80		142		84		151
		27,332		28,125		26,988		27,372