Net Income per Share

9 Months Ended

Oct. 31, 2021

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 October 31,								Nine months ended October 31,
	2021				2020				2021				2020
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic
Numerator
Net income, basic	$	95,691	$	10,178	$	87,262	$	9,697	$	298,379	$	31,915	$	249,155	$	27,925
Denominator
Weighted average shares used in computing net income per share, basic	138,755		14,759		135,892		15,101		138,234		14,786		135,172		15,150
Net income per share, basic	$	0.69	$	0.69	$	0.64	$	0.64	$	2.16	$	2.16	$	1.84	$	1.84
Diluted
Numerator
Net income, basic	$	95,691	$	10,178	$	87,262	$	9,697	$	298,379	$	31,915	$	249,155	$	27,925
Reallocation as a result of conversion of Class B to Class A common stock:
Net income, basic	10,178		—		9,697		—		31,915		—		27,925		—
Reallocation of net income to Class B common stock	—		5,588		—		5,784		—		17,690		—		15,825
Net income, diluted	$	105,869	$	15,766	$	96,959	$	15,481	$	330,294	$	49,605	$	277,080	$	43,750
Denominator
Number of shares used for basic net income per share computation	138,755		14,759		135,892		15,101		138,234		14,786		135,172		15,150
Conversion of Class B to Class A common stock	14,759		—		15,101		—		14,786		—		15,150		—
Effect of potentially dilutive common shares	9,520		9,520		10,718		10,718		9,643		9,643		10,195		10,195
Weighted average shares used in computing net income per share, diluted	163,034		24,279		161,711		25,819		162,663		24,429		160,517		25,345
Net income per share, diluted	$	0.65	$	0.65	$	0.60	$	0.60	$	2.03	$	2.03	$	1.73	$	1.73

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


	Three months ended October 31,		Nine months ended October 31,
	2021	2020	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	1,105,478	85,099	869,044	997,236