Net Income per Share

12 Months Ended

Jan. 31, 2022

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):


	Fiscal year ended January 31,
		2022	2021				2020
			Class A		Class B		Class A		Class B		Class A		Class B
Basic
Numerator
Net income, basic			$	386,180	$	41,210	$	341,866	$	38,132	$	266,104	$	35,014
Denominator
Weighted average shares used in computing net income per share, basic			138,474		14,777		135,547		15,119		130,610		17,186
Net income per share, basic			$	2.79	$	2.79	$	2.52	$	2.52	$	2.04	$	2.04
Diluted
Numerator
Net income, basic			$	386,180	$	41,210	$	341,866	$	38,132	$	266,104	$	35,014
Reallocation as a result of conversion of Class B to Class A common stock:
Net income, basic			41,210		—		38,132		—		35,014		—
Reallocation of net income to Class B common stock			—		21,480		—		21,409		—		17,652
Net income, diluted			$	427,390	$	62,690	$	379,998	$	59,541	$	301,118	$	52,666
Denominator
Number of shares used for basic net income per share computation			138,474		14,777		135,547		15,119		130,610		17,186
Conversion of Class B to Class A common stock			14,777		—		15,119		—		17,186		—
Effect of potentially dilutive common shares			9,026		9,026		10,066		10,066		10,500		10,500
Weighted average shares used in computing net income per share, diluted			162,277		23,803		160,732		25,185		158,296		27,686
Net income per share, diluted			$	2.63	$	2.63	$	2.36	$	2.36	$	1.90	$	1.90

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


	Fiscal year ended January 31,
		2022	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		958,476	1,045,222	1,461,255