Net Loss Per Share Attributable to Common Stockholders
The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders: | | | | | | | | | | | | | | | | | |
| Fiscal year ended January 31, |
| (in thousands, except share and per share data) | 2025 | | 2024 | | 2023 |
| Numerator: | | | | | |
| Net loss attributable to common stockholders | $ | (27,948) | | | $ | (2,630) | | | $ | (65,938) | |
| Denominator: | | | | | |
| Weighted-average common shares outstanding | 126,850,809 | | | 124,056,949 | | | 125,250,723 | |
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.22) | | | $ | (0.02) | | | $ | (0.53) | |
Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Unvested restricted stock, restricted stock units, and performance-based restricted stock units where the market conditions have not been met are excluded from the denominator of basic net loss per share. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares plus common equivalent shares for the period, including any dilutive effect from such shares.
Since the Company was in a net loss position for all periods presented, net loss per share attributable to common stockholders was the same on a basic and diluted basis, as the inclusion of all potential common equivalent shares outstanding would have been anti-dilutive. Anti-dilutive common equivalent shares were as follows: | | | | | | | | | | | | | | | | | | | | |
| | As of January 31, |
| | 2025 | | 2024 | | 2023 |
| Options to purchase common stock | | 1,566,134 | | | 2,021,494 | | | 4,593,704 | |
| Restricted stock and restricted stock units | | 10,315,199 | | | 9,790,748 | | | 11,564,867 | |
| Shares estimated to be purchased under ESPP | | 366,055 | | | 487,529 | | | 517,140 | |
Performance-based restricted stock units (1) | | 3,495,000 | | | 3,555,000 | | | 2,000,000 | |
| Total anti-dilutive common equivalent shares | | 15,742,388 | | | 15,854,771 | | | 18,675,711 | |
(1) An additional 1.3 million shares of common stock may be awarded for certain PSUs based on the Company's total shareholder return ("TSR") relative to the TSR of companies in the S&P Software and Services Select Index over specified performance periods. See Note 10 "Stock-Based Compensation", for further discussion.
In connection with the Acquisition, the Company may also be required to pay up to $75.0 million to the former holders of Hearsay's outstanding equity interests, subject to the achievement of certain ARR milestones over a two-year period. Payment can be settled in cash or shares at the Company's election. In addition, an incentive pool of $20.0 million is payable to Hearsay founders, early employees and current employees, which can be settled in cash or shares at the Company's election.
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.