Net Loss Per Share

3 Months Ended

Apr. 30, 2017

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 April 30,
	2017						2016
	Class A			Class B			Class A			Class B
Numerator:
Net loss	$	(22,061	)	$	(18,025	)	$	(13,632	)	$	(24,943	)

Denominator:
Weighted-average number of shares outstanding—basic and diluted		72,352			59,117			44,151			80,781
Net loss per share—basic and diluted	$	(0.30	)	$	(0.30	)	$	(0.31	)	$	(0.31	)

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 April 30,
	2017		2016
Options to purchase common stock		10,534		14,919
Restricted stock units		12,650		8,534
Employee stock purchase plan		2,187		3,133
Repurchasable shares from early-exercised options and unvested restricted stock		240		394
Contingently issuable common stock		60		88
		25,671		27,068