Net Income per Share

9 Months Ended

Oct. 31, 2019

Basic net income per share is computed by dividing the net income by the weighted-average number of shares of common stock outstanding during the period. Unvested shares of common stock resulting from the early exercises of stock options are excluded from the calculation of the weighted-average shares of common stock until they vest as they are subject to repurchase until they are vested.

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 the 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 EPS 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,
	2019				2018				2019				2018
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic
Numerator
Net income, basic	$	73,120	$	9,125	$	54,592	$	9,493	$	206,862	$	28,074	$	133,568	$	25,113
Denominator
Weighted average shares used in computing net income per share, basic	131,720		16,437		123,297		21,440		129,845		17,622		121,013		22,752
Net income per share, basic	$	0.56	$	0.56	$	0.44	$	0.44	$	1.59	$	1.59	$	1.10	$	1.10
Diluted
Numerator
Net income, basic	$	73,120	$	9,125	$	54,592	$	9,493	$	206,862	$	28,074	$	133,568	$	25,113
Reallocation as a result of conversion of Class B to Class A common stock:
Net income, basic	9,125		—		9,493		—		28,074		—		25,113		—
Reallocation of net income to Class B common stock	—		4,879		—		3,950		—		13,942		—		10,243
Net income, diluted	$	82,245	$	14,004	$	64,085	$	13,443	$	234,936	$	42,016	$	158,681	$	35,356
Denominator
Number of shares used for basic EPS computation	131,720		16,437		123,297		21,440		129,845		17,622		121,013		22,752
Conversion of Class B to Class A common stock	16,437		—		21,440		—		17,622		—		22,752		—
Effect of potentially dilutive common shares	10,593		10,593		11,288		11,288		10,657		10,657		11,941		11,941
Weighted average shares used in computing net income per share, diluted	158,750		27,030		156,025		32,728		158,124		28,279		155,706		34,693
Net income per share, diluted	$	0.52	$	0.52	$	0.41	$	0.41	$	1.49	$	1.49	$	1.02	$	1.02

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,
	2019	2018	2019	2018
Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive	1,362,085	3,066,006	1,037,362	3,065,009