Net Loss Per Share
The Company computes net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net losses.
The following table sets forth the calculation of basic and diluted net loss per share during the periods presented (in thousands, except per share amounts): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| 2024 | | 2025 | | 2026 |
| Class A | | Class B | | Class A | | Class B | | Class A | | Class B |
| Numerator: | | | | | | | | | | | |
| Net loss | $ | (6,842) | | | $ | (68,727) | | | $ | (6,946) | | | $ | (74,989) | | | $ | (4,726) | | | $ | (54,616) | |
| Denominator: | | | | | | | | | | | |
| Weighted-average number of shares used in computing net loss per share, basic and diluted | 3,264 | | | 32,786 | | | 3,264 | | | 35,237 | | | 3,264 | | | 37,720 | |
| Net loss per share, basic and diluted | $ | (2.10) | | | $ | (2.10) | | | $ | (2.13) | | | $ | (2.13) | | | $ | (1.45) | | | $ | (1.45) | |
Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| 2024 | | 2025 | | 2026 |
| | | | | |
| Options to purchase common stock | 2 | | | — | | | — | |
| Restricted stock units | 470 | | | 402 | | | 1,734 | |
| Employee stock purchase program | — | | | — | | | 51 | |
| Common stock warrants | — | | | 644 | | | 1,211 | |
| 472 | | | 1,046 | | | 2,996 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.