Net Loss per Share

6 Months Ended

Jun. 30, 2014

Net Loss per Share

Note 9. Net Loss Per Share

We compute net loss per share of common stock in conformity with the two-class method required for participating securities. We considered all series of the redeemable convertible preferred stock to be participating securities as the holders of the preferred stock were entitled to receive a non-cumulative dividend on a pari passu basis in the event that a dividend is paid on common stock. We also consider shares of common stock issued upon the early exercise of stock options subject to repurchase to be participating securities, because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. The holders of all series of the redeemable convertible preferred stock and the holders of shares of common stock acquired upon early exercise of stock options do not have a contractual obligation to share in our losses. As such, our net losses for the three and six months ended June 30, 2014 and 2013 were not allocated to these participating securities.

Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less the weighted-average unvested common stock subject to repurchase. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including common stock issuable upon conversion of the redeemable convertible preferred stock, outstanding share-based awards, and outstanding warrants, to the extent dilutive. Basic and diluted net loss per share was 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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net loss	$	(21,743	)	$	(6,352	)	$	(32,003	)	$	(11,710	)
Less: Accretion of redeemable convertible preferred stock		(6	)		(12	)		(18	)		(24	)
Net loss attributable to common stockholders	$	(21,749	)	$	(6,364	)	$	(32,021	)	$	(11,734	)
Basic shares:
Weighted-average shares used to compute basic net loss per share		45,760			21,568			33,817			21,213
Diluted shares:
Weighted-average shares used to compute diluted net loss per share		45,760			21,568			33,817			21,213
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.48	)	$	(0.30	)	$	(0.95	)	$	(0.55	)

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

	As of June 30,
	2014		2013
Redeemable convertible preferred stock		—		34,323
Shares subject to outstanding common stock options		14,355		9,375
Shares subject to common stock warrants		—		125
Restricted stock units		2,376		498
		16,731		44,321