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”), and the Conversion Option and warrants of the 2022 Notes 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 March 31,
		2020			2019
Net loss	$	(17,716	)	$	(11,100	)
Weighted-average common shares outstanding — basic		43,275			40,568
Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP, Conversion Option and warrants of the 2022 Notes		—			—
Weighted-average common shares, outstanding — diluted		43,275			40,568
Net loss per share, basic and diluted	$	(0.41	)	$	(0.27	)

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. The Company’s outstanding stock options, RSUs, shares issuable under the ESPP, and Conversion Option and warrants of the 2022 Notes were not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. The following table contains all potentially dilutive common stock equivalents.

	As of March 31,
		2020	2019
	(in thousands)
Options to purchase common shares		1,401	1,734
RSUs		1,697	1,911
Conversion option and warrants of the 2022 Notes		3,093	2,830
ESPP		—	8

The Company expects to settle the principal amount of the 2022 Notes (Note 8) in cash, and therefore, the Company uses the treasury stock method for calculating any potential dilutive effect of the Conversion Option on diluted net income per share, if applicable. The Conversion Option will have a dilutive impact on net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of the 2022 Notes of $94.77 per share. Because the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the calendar quarter ended March 31, 2020 was equal to or greater than 130% of the applicable conversion price on each applicable trading day, the 2022 Notes are convertible at the option of the holders thereof during the calendar quarter ending June 30, 2020. In the first quarter of 2020, the Company settled $2 thousand of the principal balance of the 2022 Notes in cash. As of May 1, 2020, the Company has received conversion notices for approximately $2 thousand of the principal balance of the 2022 Notes, which will be settled in cash during the quarter ended June 30, 2020.