Net Income per Share

12 Months Ended

Jan. 31, 2020

Net Income per Share Attributable to Common Stockholders

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 EPS computations for our common stock are calculated as follows (in thousands, except per share data):



	For the fiscal year ended January 31,
	2020				2019				2018
	(in thousands)
	Class A		Class B		Class A		Class B		Class A		Class B
Basic
Numerator
Net income, basic	$	266,104	$	35,014	$	194,607	$	35,225	$	121,203	$	29,974
Denominator
Weighted average shares used in computing net income per share, basic	130,610		17,186		122,137		22,107		112,491		27,820
Net income per share, basic	$	2.04	$	2.04	$	1.59	$	1.59	$	1.08	$	1.08
Diluted
Numerator
Net income, basic	$	266,104	$	35,014	$	194,607	$	35,225	$	121,203	$	29,974
Reallocation as a result of conversion of Class B to Class A common stock:
Net income, basic	35,014		—		35,225		—		29,974		—
Reallocation of net income to Class B common stock	—		17,652		—		14,800		—		10,545
Net income, diluted	$	301,118	$	52,666	$	229,832	$	50,025	$	151,177	$	40,519
Denominator
Number of shares used for basic EPS computation	130,610		17,186		122,137		22,107		112,491		27,820
Conversion of Class B to Class A common stock	17,186		—		22,107		—		27,820		—
Effect of potentially dilutive common shares	10,500		10,500		11,873		11,873		13,370		13,370
Weighted average shares used in computing net income per share, diluted	158,296		27,686		156,117		33,980		153,681		41,190
Net income per share, diluted	$	1.90	$	1.90	$	1.47	$	1.47	$	0.98	$	0.98

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



	Fiscal Year Ended January 31,
	2020	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	1,461,255	3,054,322	833,691