Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2020

The Company computes net income (loss) per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net income and losses.

Basic net income (loss) per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Class A and Class B common stock outstanding.

Diluted net income (loss) per share is computed by dividing net income attributable to common stockholders by the weighted-average number of diluted common shares outstanding. The computation of the diluted net income (loss) per share of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income (loss per share) of Class B common stock does not assume the conversion of those shares to Class A common stock. Diluted loss per share for the three and nine months ended September 30, 2019 is the same as basic loss per share as there was a net loss for the period and inclusion of potentially issuable shares is anti-dilutive.

The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except for per share amounts


	Three Months Ended September 30,				Three Months Ended September 30,
	2020				2019
	Class A		Class B		Class A		Class B

Basic net income (loss) per share:
Numerator
Net income (loss) attributable to common stockholders	$	25.0	$	7.7	$	(10.4)	$	(6.6)
Denominator
Weighted-average number of common shares outstanding used in computing basic net income (loss) per share	316.3		97.8		252.7		161.7
Net income (loss) per common share, basic	$	0.08	$	0.08	$	(0.04)	$	(0.04)
Diluted net income (loss) per share:
Numerator
Net income (loss) attributable to common stockholders	$	25.0	$	7.7	$	(10.4)	$	(6.6)
Reallocation of net income as a result of conversion of Class B to Class A common stock	$	7.7	—		—		—
Reallocation of net income to Class B common stock	—		$	(0.1)	—		—
Net income (loss) attributable to common stockholders for diluted EPS	$	32.7	$	7.6	$	(10.4)	$	(6.6)
Denominator
Weighted-average number of common shares outstanding used in computing basic net income (loss) per share	316.3		97.8		252.7		161.7
Weighted-average effect of dilutive RSUs and employee stock options	5.5		0.2		—		—
Conversion of Class B to Class A common stock	97.8		—		—		—
Weighted-average number of common shares outstanding used in computed diluted net income (loss) per share	419.7		98.0		252.7		161.7
Net income (loss) per common share, diluted	$	0.08	$	0.08	$	(0.04)	$	(0.04)


	Nine Months Ended September 30,				Nine Months Ended September 30,
	2020				2019
	Class A		Class B		Class A		Class B

Basic net income (loss) per share:
Numerator
Net income (loss) attributable to common stockholders	$	61.7	$	27.8	$	(26.1)	$	(20.0)
Denominator
Weighted-average number of common shares outstanding used in computing basic net income (loss) per share	286.1		129.1		233.1		179.3
Net income (loss) per common share, basic	$	0.22	$	0.22	$	(0.11)	$	(0.11)
Diluted net income (loss) per share:
Numerator
Net income (loss) attributable to common stockholders	$	61.7	$	27.8	$	(26.1)	$	(20.0)
Reallocation of net income as a result of conversion of Class B to Class A common stock	$	27.8	—		—		—
Reallocation of net income to Class B common stock	—		$	(0.2)	—		—
Net income (loss) attributable to common stockholders for diluted EPS	$	89.5	$	27.6	$	(26.1)	$	(20.0)
Denominator
Weighted-average number of common shares outstanding used in computing basic net income (loss) per share	286.1		129.1		233.1		179.3
Weighted-average effect of dilutive RSUs and employee stock options	4.4		0.3		—		—
Conversion of Class B to Class A common stock	129.1		—		—		—
Weighted-average number of common shares outstanding used in computed diluted net income (loss) per share	419.6		129.4		233.1		179.3
Net income (loss) per common share, diluted	$	0.21	$	0.21	$	(0.11)	$	(0.11)

The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019

Restricted stock units and awards	9.9	30.1	10.2	28.7
Options to purchase shares of common stock	0.8	1.9	0.8	1.9
Co-Founder Grants	10.3	14.7	11.6	14.7
Total	21.0	46.7	22.6	45.3