Net Loss Per Share

9 Months Ended

Dec. 31, 2021

Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of employee share-based awards and warrants. Diluted net loss per share is computed giving effect to all potential dilutive common shares, including common stock issuable upon exercise of stock options and unvested restricted common stock. As the Company had net losses for each of the three and nine months ended December 31, 2021 and 2020, all potential common shares were determined to be anti-dilutive, resulting in basic and diluted net loss per share being equal. Additionally, the 4.5 million shares underlying the Conversion Option in the Notes were not considered in the calculation of diluted net loss per share as the effect would be anti-dilutive. The Notes were not convertible as of December 31, 2021.

ASU 2020-06 eliminates the treasury stock method and instead requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share when the instruments may be settled in cash or shares. The required use of the if-converted method did not impact the diluted net loss per share as the Company was in a net loss position.

The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except per share amounts):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2021		2020		2021		2020
Numerator:
Net loss attributable to New Relic	$	(62,706)	$	(53,626)	$	(194,889)	$	(130,933)
Denominator:
Weighted average shares used to compute net loss per share, basic and diluted	64,983		61,209		64,203		60,562
Net loss attributable to New Relic per share—basic and diluted	$	(0.96)	$	(0.88)	$	(3.04)	$	(2.16)

The following outstanding options, unvested shares, and ESPP shares were excluded (as common stock equivalents) from the computation of diluted net loss per common share for the periods presented as their effect would have been antidilutive (in thousands):


	As of December 31,
	2021	2020
Options to purchase common stock	1,804	3,011
RSUs	3,617	3,992
PSUs	320	112
ESPP shares	87	144
	5,828	7,259