Net Income Per Share

9 Months Ended

Oct. 31, 2024

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 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 net income per share is computed by dividing net income attributable to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted net income per share is calculated by giving effect to all potential dilutive common stock equivalents, which includes stock options, restricted stock units and other awards.

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


	Three Months Ended October 31,				Nine Months Ended October 31,
(in thousands, except per share data)	2024		2023		2024		2023
Net income per share – basic:
Numerator:
Net income	$	10,455	$	16,967	$	22,930	$	30,260
Denominator:
Weighted-average shares outstanding used in computing net income per share, basic	253,807		271,202		262,030		268,596
Net income per common share, basic	$	0.04	$	0.06	$	0.09	$	0.11
Net income per share – diluted:
Numerator:
Net income	$	10,455	$	16,967	$	22,930	$	30,260
Denominator:
Weighted-average shares outstanding used in computing net income per share, basic	253,807		271,202		262,030		268,596
Weighted-average effect of diluted securities:
Stock options	5,701		12,059		8,024		12,067
RSUs	2,464		4,072		4,971		4,743
Common stock warrants	—		742		68		579
ESPP	—		46		16		—
Weighted-average shares outstanding used in computing net income per share, diluted	261,972		288,121		275,109		285,985
Net income per common share, diluted	$	0.04	$	0.06	$	0.08	$	0.11

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)	2024	2023	2024	2023
Stock options	5,909	2,544	5,127	2,832
PSUs	780	780	780	780
RSUs	7,156	19	2,300	466
ESPP	16	—	—	493
Warrants to purchase common stock	628	—	—	—
Total shares excluded from net income per share	14,489	3,343	8,207	4,571