NET INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER SHARE

NOTE 10. NET INCOME (LOSS) PER SHARE

The Company calculates its basic and diluted net income (loss) per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. Under the two-class method, in periods when the Company has net income, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income less current period convertible preferred stock non-cumulative dividends, between common stock and convertible preferred stock. In computing diluted net income attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. The Company’s basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, options to purchase common stock and preferred stock warrants are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive.

Basic loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of employee stock-based awards and warrants. Because the Company had net losses for the three and six months ended June 30, 2014 and 2013, all potential shares of common stock were determined to be anti-dilutive.

The following table sets forth the computation of net loss per share of common stock (in thousands, except per share amounts):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Net loss	$	(9,759	)	$	(3,839	)	$	(20,985	)	$	(11,911	)
Weighted-average shares used to compute basic and diluted net loss per share	35,172			8,396			34,606			8,347
Basic and diluted net loss per share	$	(0.28	)	$	(0.46	)	$	(0.61	)	$	(1.43	)

The following securities were excluded from the calculation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented (in thousands):

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2014	2013	2014	2013
Convertible preferred stock	—	19,479	—	19,479
Employee stock options	6,926	7,607	6,926	7,607
Shares subject to repurchase	180	—	180	—
Restricted stock units (RSUs)	845	—	845	—
Employee stock purchase plan	42	—	42	—
Convertible preferred stock warrants	—	267	—	267
	7,993	27,353	7,993	27,353