Net Income per Share

3 Months Ended

Apr. 30, 2021

Earnings Per Share [Abstract]

Net Income per Share

Net Income per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income per share is computed by dividing net income by the weighted-average shares outstanding, including potentially dilutive shares of common equivalents outstanding during the period. The dilutive effect of potential shares of common stock are determined using the treasury stock method.

The computation of fully diluted net income per share of Class A common stock assumes the conversion from Class B common stock, while the fully diluted net income per share of Class B common stock does not assume the conversion of those shares.

The numerators and denominators of the basic and diluted net income per share computations for our common stock are calculated as follows (in thousands, except per share data):

	Three months ended April 30,
	2021				2020
	Class A		Class B		Class A		Class B
Basic
Numerator
Net income, basic	$	104,319	$	11,248	$	77,777	$	8,793
Denominator
Weighted average shares used in computing net income per share, basic	137,607		14,837		134,353		15,188
Net income per share, basic	$	0.76	$	0.76	$	0.58	$	0.58
Diluted
Numerator
Net income, basic	$	104,319	$	11,248	$	77,777	$	8,793
Reallocation as a result of conversion of Class B to Class A common stock:
Net income, basic	11,248		—		8,793		—
Reallocation of net income to Class B common stock	—		6,282		—		4,844
Net income, diluted	$	115,567	$	17,530	$	86,570	$	13,637
Denominator
Number of shares used for basic net income per share computation	137,607		14,837		134,353		15,188
Conversion of Class B to Class A common stock	14,837		—		15,188		—
Effect of potentially dilutive common shares	9,769		9,769		9,933		9,933
Weighted average shares used in computing net income per share, diluted	162,213		24,606		159,474		25,121
Net income per share, diluted	$	0.71	$	0.71	$	0.54	$	0.54

Potential common share equivalents excluded where the inclusion would be anti-dilutive are as follows:

	Three months ended April 30,
	2021	2020
Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive	348,495	2,386,498