Net Loss Per Share

9 Months Ended

Sep. 30, 2022

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including those related to outstanding share-based awards and our convertible senior notes, to the extent dilutive. Basic and diluted net loss per share were the same for each period presented as the inclusion of all potential common stock outstanding would have been anti-dilutive.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net loss	$	(59,093)	$	(54,417)	$	(221,121)	$	(161,789)
Weighted-average shares used to compute basic and diluted net loss per share	123,576		120,164		122,799		119,050
Net loss per share, basic and diluted	$	(0.48)	$	(0.45)	$	(1.80)	$	(1.36)

The anti-dilutive securities excluded from the shares used to calculate diluted net loss per share are as follows (in thousands):


	As of September 30,
	2022	2021
Shares subject to outstanding common stock options and employee stock purchase plan	3,567	3,894
RSUs and PRSUs	6,207	4,438
Shares related to convertible senior notes	12,939	2,883
	22,713	11,215

Prior to the adoption of ASU 2020-06, we used the treasury stock method for calculating any potential dilutive effect of the conversion spread of our convertible senior notes on diluted net income per share, if applicable. The conversion spread had a dilutive impact on diluted net income per share when the average market price of our common stock for a given reporting period exceeded the initial conversion prices of $63.07 and $108.76 per share for the 2023 Notes and 2025 Notes, respectively.

After the adoption of ASU 2020-06, we use the if-converted method for calculating any potential dilutive effect of our convertible senior notes. Under this method, we calculate diluted net income per share assuming that all the convertible senior notes were converted solely into shares of common stock at the beginning of the reporting period. Based on the initial conversion price, potential dilution related to the 2023 Notes and 2025 Notes is approximately 2.4 million and 10.6 million shares, respectively. The potential impact upon the conversion of the convertible senior notes was excluded from the calculation of diluted net loss per share for the three and nine months ended September 30, 2022 because the effect would have been anti-dilutive.