Net Loss Per Share

12 Months Ended

Dec. 31, 2019

The Company calculates basic and diluted net loss per share in conformity with the two-class method required for companies with participating securities. The Company considered all series of redeemable convertible preferred stock to have been participating securities as the holders were entitled to receive non-cumulative dividends on a pari passu basis in the event that a dividend was paid on common stock. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of redeemable convertible preferred stock do not have a contractual obligation to share in losses.

Under the two-class method, basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, redeemable convertible preferred stock, stock options to purchase common stock, early exercised stock options, restricted stock units and warrants to purchase redeemable convertible preferred stock are considered common shares equivalents, but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive.

The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

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


	Year Ended December 31,
	2019		2018		2017
Net loss	$	(68,760)	$	(64,078)	$	(38,547)
Weighted-average shares used in computing net loss per share, basic and diluted	81,979		37,540		19,500
Net loss per share, basic and diluted	$	(0.84)	$	(1.71)	$	(1.98)

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect (in thousands):


	December 31,
	2019	2018	2017
Redeemable convertible preferred stock (on an if-converted basis)	—	—	41,628
Stock-options to purchase common stock	15,684	22,013	18,701
Redeemable convertible preferred stock warrants	—	—	618
Restricted stock and restricted stock units	4,347	686	803
Early exercised options	19	56	115
Total shares of potentially dilutive securities	20,050	22,755	61,865