Net Income (Loss) per Share Attributable to Common Stockholders

12 Months Ended

Feb. 05, 2023

Net Income (Loss) per Share Attributable to Common Stockholders

Net Income (Loss) per Share Attributable to Common StockholdersBasic and diluted net income (loss) per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net income (loss) per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents, including our outstanding stock options, common stock related to unvested RSUs and PRSUs, unvested restricted stock, the shares underlying the conversion option in our Notes to the extent dilutive, and common stock issuable pursuant to the ESPP. The adoption of ASU 2020-06 at the beginning of fiscal 2023 eliminates the treasury stock method and instead requires the application of the if-converted method to calculate the impact of our Notes on diluted EPS. Using this method, the numerator is affected by adding back interest expense related to the Notes and the denominator is affected by including the effect of potential share settlement, if the effect is dilutive. All potentially dilutive common stock equivalents, including from our Notes, have been excluded from the calculation of diluted net loss per share attributable to common stockholders in periods of net loss as their effect is anti-dilutive.

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


	Fiscal Year Ended
	2021		2022		2023
Numerator:
Net income (loss) attributable to common stockholders, basic	$	(282,076)	$	(143,259)	$	73,071
Add: Interest charges related to our Notes	—		—		3,314
Net income (loss) attributable to common stockholders, diluted	$	(282,076)	$	(143,259)	$	76,385
Denominator:
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic	267,824		285,882		299,478
Add: Dilutive effect of common stock equivalents	—		—		39,706
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted	267,824		285,882		339,184

Net income (loss) per share attributable to common stockholders, basic	$	(1.05)	$	(0.50)	$	0.24
Net income (loss) per share attributable to common stockholders, diluted	$	(1.05)	$	(0.50)	$	0.23

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


	Fiscal Year Ended
	2021	2022	2023
Stock options to purchase common stock	23,180	15,686	10,516
Unvested RSUs and PRSUs	31,980	32,491	29,780
Unvested restricted stock	1,145	257	6
Shares related to convertible senior notes	21,884	21,884	—
Shares issuable pursuant to the ESPP	2,148	2,122	885

Total	80,337	72,440	41,187