NET LOSS PER SHARE

9 Months Ended

Apr. 30, 2018

We compute basic net income (loss) per share using the weighted average number of common shares outstanding during the period. We compute diluted net income (loss) per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares include shares issuable upon the exercise of stock options, the exercise of common stock warrants, the vesting of RSUs, and each purchase under our 2016 ESPP, under the treasury stock method.

In loss periods, basic net loss per share and diluted net loss per share are the same, as the effect of potential common shares is anti-dilutive and therefore excluded.

The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, our undistributed earnings or losses are allocated on a proportionate basis among the holders of both Class A and Class B common stock. As a result, the net income (loss) per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

The computation of basic and diluted net loss per share attributable to Class A and Class B common stockholders is as follows:



	Three Months Ended April 30,						Nine Months Ended April 30,
	2017 As Adjusted ⁽¹⁾			2018			2017 As Adjusted ⁽¹⁾			2018
	(in thousands, except share and per share data)
Numerator:
Net loss	$	(96,835	)	$	(85,674	)	$	(313,506	)	$	(209,792	)
Denominator:
Weighted average shares—basic and diluted	144,054,432			166,845,544			119,851,586			161,709,365
Net loss per share attributable to common stockholders—basic and diluted	$	(0.67	)	$	(0.51	)	$	(2.62	)	$	(1.30	)


(1)	Adjusted to include the impact of ASC 606. Refer to Note 3 for more details on the impact of the adoption of this standard.

The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive are as follows:



	Three and Nine Months Ended April 30,
	2017	2018
Outstanding stock options and RSUs	41,204,043	35,206,318
Employee stock purchase plan	1,474,965	1,341,470
Contingently issuable shares pursuant to a business combination	—	276,625
Common stock subject to repurchase	383,736	73,360
Common stock warrants	34,180	34,180
Total	43,096,924	36,931,953