Net Loss per Share

3 Months Ended

Mar. 31, 2017

11. Net Loss per Share

Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, excluding shares subject to repurchase and without consideration of potentially dilutive securities. Diluted net loss per share is computed by giving effect to all potentially dilutive common shares outstanding for the period. For purposes of this computation, outstanding common stock options, restricted stock units, unvested common shares subject to repurchase and warrants are considered to be common share equivalents. Common share equivalents are excluded from the computation in periods in which they have an anti-dilutive effect.

For the three months ended March 31, 2017, the Company reversed the remeasurement gain on the change in the fair value of warrants from its net loss and included the incremental shares from the assumed exercise of the warrants in the computation of its weighted-average shares outstanding as they gave a dilutive effect to the loss per share in the period. Other potentially dilutive common share equivalents such as outstanding common stock options, restricted stock and unvested common shares subject to repurchase were not included in the computation of diluted net loss per share for all periods as the result would be anti-dilutive. Such potentially dilutive common share equivalents are excluded when the effect would be to reduce the net loss per share.

The following table provides the basic and diluted net loss per share computations for the three months ended March 31, 2017 and 2016.


	Three months ended
	March 31,
(in thousands, except per share data)	2017		2016

Numerator:
Net loss used to compute net loss per share, basic	$	(35,961)	$	(8,685)

Less: Remeasurement gain on warrant liability		(1,042)		—
Net loss used to compute net loss per share, diluted	$	(37,003)		(8,685)

Denominator:
Weighted-average shares outstanding		52,758		50,803
Less: weighted-average unvested shares subject to repurchase		—		(364)
Weighted-average number of shares used in computing net loss per share, basic		52,758		50,439
Add: incremental shares from assumed exercise of warrants		285		—
Weighted-average number of shares used in computing net loss per share, diluted		53,043		50,439

Net loss per share, basic	$	(0.68)	$	(0.17)
Net loss per share, diluted	$	(0.70)	$	(0.17)

The following table shows the potentially dilutive shares excluded from the computation of diluted loss per share as their effect would be anti-dilutive, as of March 31, 2017 and 2016:


	March 31,
	2017	2016
	(in thousands)
Options to purchase common stock	8,774	8,395
Warrants to purchase common stock	—	377
Restricted stock units	138	—
Employee stock purchase plan	207	—
	9,119	8,772