Net Income (Loss) Per Share

9 Months Ended

Oct. 31, 2023

The Company has two classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net income (loss) per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis.

Basic income (loss) per share is computed by dividing net income (loss) attributable to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted net income (loss) per share is calculated by giving effect to all potential dilutive common stock equivalents, which includes stock options, restricted stock units and other awards. In periods of net loss, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive.

The following table sets forth the computation of basic and diluted net income (loss) per share:


	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands, except per share amounts)	2023		2022		2023		2022
Net income (loss) per share – basic:
Numerator:
Net income (loss)	$	16,967	$	(5,860)	$	30,260	$	(55,075)
Denominator:
Weighted-average shares outstanding used in computing net income (loss) per share, basic	271,202		260,285		268,596		258,677
Net income (loss) per common share, basic	$	0.06	$	(0.02)	$	0.11	$	(0.21)
Net income (loss) per share – diluted:
Numerator:
Net income (loss)	$	16,967	$	(5,860)	$	30,260	$	(55,075)
Denominator:
Weighted-average shares outstanding used in computing net income (loss) per share, basic	271,202		260,285		268,596		258,677
Weighted-average effect of diluted securities:
Stock options	12,059		—		12,067		—
RSUs	4,072		—		4,743		—
Common stock warrants	742		—		579		—
ESPP	46		—		—		—
Weighted-average shares outstanding used in computing net income (loss) per share, diluted	288,121		260,285		285,985		258,677
Net income (loss) per common share, diluted	$	0.06	$	(0.02)	$	0.11	$	(0.21)

Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:


	Three Months Ended October 31,		Nine Months Ended October 31,
(in thousands)	2023	2022	2023	2022
Stock options	2,544	36,033	2,832	36,033
PSUs and other performance-based awards	780	2,295	780	2,295
RSUs	19	9,202	466	9,202
ESPP	—	409	493	409
Warrants to purchase common stock	—	2,500	—	2,500
Total shares excluded from net income (loss) per share	3,343	50,439	4,571	50,439