Net Income (Loss) Per Share

9 Months Ended

Apr. 30, 2020

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


	Three Months Ended April 30,						Nine Months Ended April 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	(31,038)	$	(8,581)	$	(65,973)	$	(2,273)
Net income (loss) per share:
Basic	$	(0.37)	$	(0.11)	$	(0.80)	$	(0.03)
Diluted	$	(0.37)	$	(0.11)	$	(0.80)	$	(0.03)
Denominator:
Weighted average shares used in computing net income (loss) per share:
Basic	83,024,291		81,606,088		82,701,267		81,252,993
Weighted average effect of dilutive stock options	—		—		—		—
Weighted average effect of dilutive stock awards	—		—		—		—
Diluted	83,024,291		81,606,088		82,701,267		81,252,993

The following weighted average shares of potential common stock were excluded from the computation of diluted income (loss) per share for the periods presented because including them would have been anti-dilutive:


	Three Months Ended April 30,			Nine Months Ended April 30,
	2020	2019	2020	2019
Stock options	146,617	334,909	180,243	413,145
Stock awards	1,751,083	2,638,973	2,589,517	2,215,378

Since the Company has the intent and ability to settle the principal amount of the Convertible Senior Notes in cash and any excess in shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on net income (loss) per share, if applicable. The conversion spread will have a dilutive impact on net income (loss) per share when the average market price of the Company’s common stock for a given period exceeds the conversion price of $113.75 per share for the Convertible Senior Notes. During the three and nine months ended April 30, 2020 and 2019, the Company’s weighted average common stock price was below the conversion price of the Convertible Senior Notes.