Net Income per Share

3 Months Ended

Apr. 30, 2020

Earnings Per Share [Abstract]

Net Income per Share

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):

	Three months ended April 30,
	2020				2019
	Class A		Class B		Class A		Class B
Basic
Numerator
Net income, basic	$	77,777	$	8,793	$	63,652	$	9,797
Denominator
Weighted average shares used in computing net income per share, basic	134,353		15,188		127,139		19,569
Net income per share, basic	$	0.58	$	0.58	$	0.50	$	0.50
Diluted
Numerator
Net income, basic	$	77,777	$	8,793	$	63,652	$	9,797
Reallocation as a result of conversion of Class B to Class A common stock:
Net income, basic	8,793		—		9,797		—
Reallocation of net income to Class B common stock	—		4,844		—		4,516
Net income, diluted	$	86,570	$	13,637	$	73,449	$	14,313
Denominator
Number of shares used for basic EPS computation	134,353		15,188		127,139		19,569
Conversion of Class B to Class A common stock	15,188		—		19,569		—
Effect of potentially dilutive common shares	9,933		9,933		11,202		11,202
Weighted average shares used in computing net income per share, diluted	159,474		25,121		157,910		30,771
Net income per share, diluted	$	0.54	$	0.54	$	0.47	$	0.47

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

	Three months ended April 30,
	2020	2019
Options and awards to purchase shares not included in the computation of diluted net income per share because their inclusion would be anti-dilutive	2,386,498	376,944