Net Loss Per Share

12 Months Ended

Jan. 31, 2023

Net Loss Per Share The Company computes net loss per share of common stock in conformity with the two-class method required for participating securities. The following table presents the calculation of basic and diluted net loss per share:


	Year Ended January 31,
	2023				2022				2021
	Class A		Class B		Class A		Class B		Class A		Class B
	(dollars in millions, shares in thousands, except per share data)
Numerator:
Net loss	$	(778)	$	(37)	$	(806)	$	(42)	$	(249)	$	(17)
Denominator:
Weighted-average shares outstanding, basic and diluted	150,891		7,132		140,684		7,352		118,882		8,330
Net loss per share, basic and diluted	$	(5.16)	$	(5.16)	$	(5.73)	$	(5.73)	$	(2.09)	$	(2.09)

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:


	Year Ended January 31,
	2023	2022	2021
	(shares in thousands)
Issued and outstanding stock options	6,353	7,984	8,250
Unvested RSUs issued and outstanding	9,317	6,226	4,452
Unvested market-based RSUs issued and outstanding	116	—	—
Unvested restricted stock awards issued and outstanding	627	1,269	—


Shares committed under the ESPP	921	253	137
Shares related to the 2023 Notes	—	356	832
Shares subject to warrants related to the issuance of the 2023 Notes	1,048	1,048	1,048
Shares related to the 2025 Notes	5,617	5,617	5,617
Shares related to the 2026 Notes	4,820	4,820	4,820


	28,819	27,573	25,156

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 Notes, 2025 Notes 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.