Net Loss Per Share

9 Months Ended

Oct. 31, 2020

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):


	Three Months Ended October 31,								Nine Months Ended October 31,
	2020				2019				2020				2019
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
	(unaudited)
Numerator:
Net loss	$	(68,146)	$	(4,618)	$	(58,761)	$	(4,734)	$	(177,887)	$	(12,639)	$	(145,139)	$	(13,302)
Denominator:
Weighted-average shares outstanding, basic and diluted	120,637		8,176		110,105		8,871		117,849		8,373		105,893		9,705
Net loss per share, basic and diluted	$	(0.56)	$	(0.56)	$	(0.53)	$	(0.53)	$	(1.51)	$	(1.51)	$	(1.37)	$	(1.37)

As the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):


	As of October 31,
	2020	2019
	(unaudited)




Issued and outstanding stock options	9,242	13,426
Unvested RSUs issued and outstanding	4,827	5,101
Unvested restricted stock awards issued and outstanding	—	177
Unvested shares subject to repurchase	1	7

Shares committed under the ESPP	137	209
Shares related to the 2023 Notes	832	2,494
Shares subject to warrants related to the issuance of the 2023 Notes	1,048	2,494
Shares related to the 2025 Notes	5,617	5,617
Shares related to the 2026 Notes	4,820	—
	26,524	29,525

The Company uses the if-converted method for calculating any potential dilutive effect of the conversion options embedded in the Notes on diluted net income per share, if applicable. The conversion options of the 2023, 2025 and 2026 Notes are dilutive in periods of net income on a weighted average basis using an assumed conversion date equal to the later of the beginning of the reporting period and the date of issuance of the respective Notes. The exercise rights of the Warrants will have a dilutive impact on net income per share of common stock under the treasury-stock method when the average market price per share of the Company’s Class A common stock for a given period exceeds the conversion price of $68.06 per share. During the three and nine months ended October 31, 2020, the average price per share of the Company’s Class A common stock exceeded the exercise price of the Warrants; however, since the Company is in a net loss position, there was no dilutive effect during any period presented.