Loss Per Share

Basic and diluted net loss per common share is presented in conformity with the two-class method required for participating securities.

Class A and Class B common stock are the only outstanding equity in the Company. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Shares of Class B common stock may be converted into Class A common stock at any time at the option of the stockholder, and are automatically converted to Class A common stock upon sale or transfer, subject to certain limited exceptions.

Basic net loss per share attributable to common stockholders is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share attributable to common stockholders would be computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of shares issuable upon the release of restricted stock units ("RSUs"), and to a lesser extent, the incremental common shares issuable upon the exercise of stock options and purchases related to the 2011 Employee Stock Purchase Plan. The dilutive effect of these potential common shares would be reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net loss per share of Class A common stock assumes the conversion of Class B common stock, while the diluted net loss per share of Class B common stock does not assume the conversion of Class A common stock as Class A common stock is not convertible into Class B common stock.

The undistributed earnings are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B common stock is assumed in the computation of the diluted net loss per share of Class A common stock, the undistributed earnings are equal to net loss for that computation.

The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):



	Three Months Ended June 30,												Six Months Ended June 30,
	2016						2015						2016						2015
	Class A			Class B			Class A			Class B			Class A			Class B			Class A			Class B
Basic net loss per share attributable to common stockholders:
Numerator:
Allocation of undistributed earnings	$	(105,430	)	$	(13,835	)	$	(59,469	)	$	(8,279	)	$	(145,784	)	$	(19,308	)	$	(96,649	)	$	(13,647	)
Denominator:
Weighted-average common shares outstanding	118,573			15,559			112,569			15,672			117,509			15,564			111,167			15,697
Basic net loss per share attributable to common stockholders	$	(0.89	)	$	(0.89	)	$	(0.53	)	$	(0.53	)	$	(1.24	)	$	(1.24	)	$	(0.87	)	$	(0.87	)
Diluted net loss per share attributable to common stockholders:
Numerator:
Allocation of undistributed earnings for basic computation	$	(105,430	)	$	(13,835	)	$	(59,469	)	$	(8,279	)	$	(145,784	)	$	(19,308	)	$	(96,649	)	$	(13,647	)
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares	(13,835		)	—			(8,279		)	—			(19,308		)	—			(13,647		)	—
Allocation of undistributed earnings	$	(119,265	)	$	(13,835	)	$	(67,748	)	$	(8,279	)	$	(165,092	)	$	(19,308	)	$	(110,296	)	$	(13,647	)
Denominator:



Number of shares used in basic calculation	118,573			15,559			112,569			15,672			117,509			15,564			111,167			15,697
Weighted-average effect of dilutive securities
Add:
Conversion of Class B to Class A common shares outstanding	15,559			—			15,672			—			15,564			—			15,697			—
Number of shares used in diluted calculation	134,132			15,559			128,241			15,672			133,073			15,564			126,864			15,697
Diluted net loss per share attributable to common stockholders	$	(0.89	)	$	(0.89	)	$	(0.53	)	$	(0.53	)	$	(1.24	)	$	(1.24	)	$	(0.87	)	$	(0.87	)

The following weighted-average employee equity awards were excluded from the calculation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented (in thousands):



	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Employee stock options	2,494	2,868	2,522	2,888
RSUs and other equity	7,911	6,066	7,443	5,971
Total	10,405	8,934	9,965	8,859