Net Loss Per Share Attributable to Common Stockholders

3 Months Ended

Mar. 31, 2020

Net Loss Per Share Attributable to Common Stockholders

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 10 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 into 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 loss per share attributable to common stockholders is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The dilutive effect of these potential common shares is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented:


	Three Months Ended March 31,
	2020		2019

Net loss attributable to common stockholders (in thousands)	$	(94,791)	$	(36,503)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted	139,231,594		116,590,513
Net loss per share attributable to common stockholders, basic and diluted	$	(0.68)	$	(0.31)

The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive:


	As of March 31,
	2020	2019

Stock options issued and outstanding	7,492,970	10,045,155
Nonvested restricted stock units issued and outstanding	8,039,823	8,813,737
Class A common stock reserved for Twilio.org	773,571	776,334
Class A common stock committed under 2016 ESPP	212,028	113,959
Conversion spread ⁽¹⁾	2,747,996	2,873,836
Unvested shares subject to repurchase	—	1,250
Total	19,266,388	22,624,271

____________________
⁽¹⁾ Since the Company expects to settle the principal amount of its outstanding convertible senior notes in cash and any excess in shares of the Company's Class A common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of Class A common stock when the average market price of the Company's Class A common stock for a given period exceeds the conversion price of $70.90 per share for the Notes. The conversion spread is calculated using the average market price of Class A common stock during the period, consistent with the treasury stock method.