Net Loss per Share

3 Months Ended

Mar. 31, 2018

12. 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 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, unless the consideration of any one of them gives a dilutive effect.

For the three months ended March 31, 2018, the warrants were excluded from the computation of diluted net loss per share as the change in its fair value and assumed exercises yielded an anti-dilutive effect. Other potentially dilutive common share equivalents such as outstanding common stock options and restricted stock were not included in the computation of diluted net loss per share for all periods as they also gave an anti-dilutive effect, which represents a reduction of the net loss per share. 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 by using the treasury stock method, the Company included the incremental shares from the assumed exercise of the warrants in the computation of its weighted-average shares outstanding as they yielded a dilutive effect to the loss per share in that period.

The following table provides the basic and diluted net loss per share computations for the three months ended March 31, 2018 and 2017.


	Three months ended
	March 31,
(in thousands, except per share data)	2018		2017
			(As Revised)
Numerator:
Net loss used to compute net loss per share, basic	$	(32,873)	$	(33,480)

Less: Remeasurement gain on warrant liability		—		(1,042)
Net loss used to compute net loss per share, diluted	$	(32,873)	$	(34,522)

Denominator:
Weighted-average number of shares used in computing net loss per share, basic		54,132		52,758
Add: incremental shares from assumed exercise of warrants		—		285
Weighted-average number of shares used in computing net loss per share, diluted		54,132		53,043

Net loss per share, basic	$	(0.61)	$	(0.63)
Net loss per share, diluted	$	(0.61)	$	(0.65)

The following table shows total outstanding potentially dilutive shares excluded from the computation of diluted loss per share as their effect would be anti-dilutive, as of March 31, 2018 and 2017:


	March 31,
	2018	2017
	(in thousands)
Options to purchase common stock	10,732	8,774
Warrants to purchase common stock	377	—
Restricted stock units	1,014	138
Employee stock purchase plan	181	207
	12,304	9,119