Basic and Diluted Net Loss Per Common Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Basic and Diluted Net Loss Per Common Share

18. Basic and Diluted Net Loss Per Common Share

Basic and diluted net loss per share attributable to common stockholders is computed in conformity with the two-class method required for participating securities. Prior to the automatic conversion of all of its convertible preferred stock outstanding into Class A common stock upon the completion of the Direct Listing, the Company considered all series of its convertible preferred stock to be participating securities as the holders of such stock had the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend was paid on common stock. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the preferred stockholders do not have a contractual obligation to share in the Company’s losses.

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock used to calculate basic net loss per share of common stock excludes those shares subject to repurchase related to stock options or unregistered restricted stock awards that were exercised or issued prior to vesting as these shares are not deemed to be issued for accounting purposes until they vest. Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred stock, stock options, unregistered restricted stock awards, convertible preferred stock warrants, common stock warrants, and purchase rights under the 2020 ESPP are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive for all periods presented.

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

	Three Months Ended March 31,
	2021			2020
Basic and diluted net loss per share
Numerator
Net loss	$	(136,103	)	$	(74,877	)
Less: net loss attributable to noncontrolling interest		(1,886	)		(498	)
Net loss attributable to common stockholders	$	(134,217	)	$	(74,379	)
Denominator
Weighted-average common shares used in per share computation, based and diluted		291,074			169,542
Net loss per share, basic and diluted	$	(0.46	)	$	(0.44	)

The potential shares of common stock that were excluded from the computation of diluted net loss per share for the period presented because including them would have been anti-dilutive are as follows (in thousands):

	As of March 31,
	2021		2020
Stock options outstanding		79,616		100,339
RSUs outstanding		8,559		—
Stock warrants outstanding		324		260
Convertible Preferred Stock outstanding		—		349,522
Unregistered restricted stock awards outstanding		356		—
2020 ESPP		770		—
Total		89,625		450,121

The CEO Long-Term Performance Award is excluded from the above table because the Company Stock Price Target had not been met as of March 31, 2021.