Net Loss Per Share

3 Months Ended

Mar. 31, 2023

As of March 31, 2023, the Company’s Convertible Notes were potentially convertible into 8,696,792 shares of common stock.

The denominator for diluted net income (loss) per share does not include any effect from the capped call transactions the Company entered into concurrently with the issuances of convertible notes, as this effect would be anti-dilutive. In the event of conversion of a convertible note, shares delivered to the Company under the capped call will offset the dilutive effect of the shares that the Company would issue under the convertible notes. In the three months ended March 31, 2023 and March 31, 2022, the if-converted method was not applied as the effect would have been anti-dilutive.

For the three months ended March 31, 2023 and March 31, 2022, a basic loss per common share and diluted loss per common share are the same in each period as the inclusion of any potentially issuable shares would be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss and the weighted average number of shares used in computing basic and diluted net loss per share (in thousands, except per share data):


	Three Months Ended March 31,
	2023		2022
Numerator:
Net loss used in calculating net loss per share, basic	$	(25,016)	$	(15,142)
Denominator:
Weighted average shares of common stock outstanding used in computing net loss per share, basic	19,776		18,080
Dilutive effect of incremental shares and share equivalents:
Convertible notes	—		—
Options	—		—
RSUs	—		—
PSUs	—		—
ESPP	—		—
Weighted average shares of common stock outstanding used in computing net loss per share, diluted	19,776		18,080
Net loss per share:
Net loss per share, basic	$	(1.26)	$	(0.84)
Net loss per share, diluted	$	(1.26)	$	(0.84)

The following numbers of shares outstanding, prior to the application of the treasury stock method and the if-converted method, were excluded from the computation of diluted net loss per common share for the periods presented because including them would have had an anti-dilutive effect (in thousands):


	Three Months Ended March 31,
	2023	2022
Capped call	8,697	4,167
Convertible notes	8,697	4,167
Options to purchase common stock	503	485
Restricted stock units	370	526
Performance stock units	235	482
Employee stock purchase plan shares	52	32
Total	18,554	9,859