Annual report pursuant to Section 13 and 15(d)

Net (Loss) Income Per Share

v3.22.1
Net (Loss) Income Per Share
 12 Months Ended
Jan. 31, 2022
Earnings Per Share [Abstract]  
Net (Loss) Income Per Share Net Loss Per ShareThe Company computes net loss per share using the two-class method required for participating securities. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considers its convertible preferred shares to be participating securities as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, on a pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss was not allocated to the Company’s participating securities.
Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is using the treasury stock and method, which consider the potential impacts of outstanding stock options, RSUs, warrants, and convertible preferred stock. Under these methods, the numerator and denominator of the net loss per share calculation are adjusted for these securities if the impact of doing so increases net loss per share.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts):


Year Ended January 31,
2022 2021 2020
Numerator:
Net loss $ (111,470) $ (37,970) $ (39,781)
Net loss attributable to redeemable noncontrolling interests —  —  27 
Net loss attributable to Sprinklr (111,470) (37,970) (39,754)
Deemed dividend in relation to tender offer —  (600) — 
Net loss attributable to Sprinklr common stockholders (111,470) (38,570) (39,754)
Denominator:
Weighted-average shares outstanding used in computing net loss per share attributable to Sprinklr common stockholders - basic and diluted 195,020  90,378  84,343 
Net income loss per Sprinklr common stockholders - basic and diluted $ (0.57) $ (0.42) $ (0.47)

Because the Company was in a loss position for the periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):

Year Ended January 31,
2022 2021 2020
Convertible Preferred Stock —  120,902  102,408 
Options to purchase common stock 44,355  46,455  43,752 
Convertible note —  8,653  — 
Performance share units 3,175  3,100  — 
Restricted stock units 1,730  450  300 
ESPP 205  —  — 
Deferred stock compensation plan —  1,217  — 
Warrants to purchase common stock 2,500  2,731  231 
Total shares excluded from net loss per share 51,965  183,508  146,691