Net Loss per Share

12 Months Ended

Dec. 31, 2020

Net Loss per Share

Net Loss per Share

14.     Net Loss per Share

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.

In periods when the Company has incurred a net loss, common stock equivalents such as outstanding common stock options, restricted stock units, unvested common shares subject to repurchase and warrants are excluded from the calculation of diluted net loss per share as they give an anti-dilutive effect.

The Convertible Note is convertible as of December 31, 2020. Upon conversion, the Company has the option to pay cash, issue shares of common stock, or any combination thereof for the aggregate amount due upon conversion. The value of the Convertible Notes, if-converted, exceeds its principal amount by $388.4 million as of December 31, 2020. Since the Company is in a net loss position in the periods presented, the shares which would be issued upon conversion of the Converted Notes are excluded from the net loss per share calculation as it would have an antidilutive effect.  As such, the 7.4 million shares underlying the conversion option of the Convertible Notes will not have an impact on our diluted earnings per share. If converted, the Company does not intend to settle the obligation in cash.

The following table provides the basic and diluted net loss per share computations for the years ended December 31, 2020, 2019, and 2018:

	December 31,
	2020		2019		2018
	(in thousands, except per share data)
Numerator:
Net loss used to compute net loss per share, basic and diluted	$	(229,743)	$	(124,827)	$	(128,154)
Denominator:
Weighted-average number of shares used in computing net loss per share, basic and diluted		81,011		69,555		57,848
Net loss per share, basic and diluted	$	(2.84)	$	(1.79)	$	(2.22)

The following table shows the potentially dilutive common stock equivalents that were excluded from the computations of diluted net loss per share as their effect would be anti-dilutive, as of December 31, 2020, 2019, and 2018:

	December 31,
	2020	2019	2018
	(in thousands)
Options to purchase common stock	6,707	8,497	9,463
Restricted stock units	4,188	2,404	1,084
Employee stock purchase plan	37	32	42
Convertible Note	7,411	—	—
	18,343	10,933	10,589