Net Loss per Share

6 Months Ended

Jun. 30, 2022

3. Net Loss per Share

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock units (“RSUs”), shares issued pursuant to the Employee Stock Purchase Plan (“ESPP”), the Warrants (defined in Note 8), the Conversion Option of the 2022 Notes, and the Conversion Option of the 2025 Notes (the “Conversion Options”) (Note 8) are considered to be potential common stock equivalents.

A reconciliation of the denominator used in the calculation of basic and diluted net loss per share is as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net loss	$	(56,361	)	$	(24,572	)	$	(65,702	)	$	(47,731	)
Weighted-average common shares outstanding — basic		47,815			46,777			47,697			46,603
Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP, Warrants and the Conversion Options		—			—			—			—
Weighted-average common shares, outstanding — diluted		47,815			46,777			47,697			46,603
Net loss per share, basic and diluted	$	(1.18	)	$	(0.53	)	$	(1.38	)	$	(1.02	)

Since the Company incurred net losses for each of the periods presented, diluted net loss per share is the same as basic net loss per share. All of the Company’s outstanding stock options, RSUs, and shares issuable under the ESPP, as well as the Warrants and Conversion Options were excluded in the calculation of diluted net loss per share as the effect would be anti-dilutive.

The Company uses the treasury stock method and the average market price per share during the period for calculating any potential dilutive effect of the Warrants. The average stock price for the three months ended June 30, 2022 was $365.21 and for the six months ended June 30, 2022 was $424.84. The Company uses the if-converted method when calculating any potential dilutive effect of the Conversion Options, which assumes conversion of outstanding convertible securities at the beginning of the reporting period or date of issuance, if the convertible security was issued during the period.

The following table contains all potentially dilutive common stock equivalents.


	As of June 30,
	2022		2021
	(in thousands)
Options to purchase common shares		538		749
RSUs		1,477		1,462
Conversion Option of the 2022 Notes and Warrants		1,049		1,830
Conversion Option of the 2025 Notes		1,625		664
ESPP		11		8