Net Income per Share

9 Months Ended

Oct. 31, 2023

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.

On October 15, 2023, all of our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock pursuant to the terms of our then effective Amended and Restated Certificate of Incorporation. See note 11 Stockholders’ Equity for additional details related to the conversion of Class B common stock. Because shares of Class B common stock were outstanding for a portion of the three and nine months ended October 31, 2023, we have disclosed earnings per share for Class A and Class B common stock for both the three and nine months ended October 31, 2023. For the three and nine months ended October 31, 2023 and 2022, 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,
	2023				2022				2023				2022
	Class A		Class B(1)		Class A		Class B		Class A		Class B(1)		Class A		Class B
Basic
Numerator
Net income, basic	$	124,569	$	10,589	$	98,151	$	10,306	$	345,597	$	32,710	$	270,666	$	28,507
Denominator
Weighted average shares used in computing net income per share, basic	148,172		12,596		140,626		14,766		146,480		13,864		140,193		14,765
Net income per share, basic	$	0.84	$	0.84	$	0.70	$	0.70	$	2.36	$	2.36	$	1.93	$	1.93
Diluted
Numerator
Net income, basic	$	124,569	$	10,589	$	98,151	$	10,306	$	345,597	$	32,710	$	270,666	$	28,507
Reallocation as a result of conversion of Class B to Class A common stock:
Net income, basic	10,589		—		10,306		—		32,710		—		28,507		—
Reallocation of net income to Class B common stock	—		2,277		—		4,175		—		5,901		—		12,067
Net income, diluted	$	135,158	$	12,866	$	108,457	$	14,481	$	378,307	$	38,611	$	299,173	$	40,574
Denominator
Number of shares used for basic net income per share computation	148,172		12,596		140,626		14,766		146,480		13,864		140,193		14,765
Conversion of Class B to Class A common stock	12,596		—		14,766		—		13,864		—		14,765		—
Effect of potentially dilutive common shares	2,993		2,993		6,903		6,903		2,785		2,785		7,231		7,231
Weighted average shares used in computing net income per share, diluted	163,761		15,589		162,295		21,669		163,129		16,649		162,189		21,996
Net income per share, diluted	$	0.83	$	0.83	$	0.67	$	0.67	$	2.32	$	2.32	$	1.84	$	1.84

(1) Net income per share attributable to Class B common stock was determined for the relevant periods through October 15, 2023. See n ote 11 Stockholders’ Equity.

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,
	2023	2022	2023	2022
Options and awards	6,340,276	5,022,968	6,615,821	4,363,631