Net Loss Per Share

6 Months Ended

Jun. 30, 2015

16.	Net Loss Per Share

The Company calculates net income (loss) per share (EPS) available to common stockholders using the two-class method. The two-class method allocates net income that otherwise would have been available to common shareholders to holders of participating securities. The Company considers all series of our convertible preferred stock to be participating securities due to their non-cumulative dividend rights. As such, net income allocated to these participating securities, which include participating rights in undistributed net income, is first subtracted from net income attributable to common stockholders to determine the amount available to the common stockholders. For the three months ended June 30, 2015, all of the net income attributable to common shareholders was allocated to participating securities because net income was less than the preference dividends to which they were entitled. The participating securities holders do not participate in the Company’s net loss.

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive.

The computation of the Company’s basic and diluted net loss per share are as follows (in thousands, except share and per share amounts):

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2015			2014			2015			2014
Numerator:
Net income (loss) attributable to common stockholders	$	7,540		$	(17,231	)	$	(10,455	)	$	(28,952	)
Less: Net income allocated to participating securities		(7,540	)		—			—			—
Net income (loss) available to common stockholders		—			(17,231	)		(10,455	)		(28,952	)
Denominator:
Weighted average shares used to compute net loss per share available to common stockholders, basic and diluted		26,215			23,827			25,322			21,437
Basic and diluted	$	—		$	(0.72	)	$	(0.41	)	$	(1.35	)

The following shares were excluded from the computation of diluted net loss per share as the impact of including those shares would be anti-dilutive:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2015		2014		2015		2014
Preferred stock		54,841		54,841		54,841		54,841
Outstanding stock options		12,908		10,757		11,837		9,297
Total		67,749		65,598		66,678		64,138