Net Loss per Share

12 Months Ended

Dec. 31, 2021

Net Loss per Share

Net Loss per Share

14.     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, and restricted stock units 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.

The Convertible Notes are convertible as of December 31, 2021. 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. If converted, the value of the Convertible Notes based on contractual settlement provisions would exceed its principal amount by $441.9 million as of December 31, 2021. Since the Company is in a net loss position in the periods presented, the shares which would be issued upon conversion of the Convertible 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 the Company’s 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, 2021, 2020, and 2019:

	December 31,
	2021		2020		2019
	(in thousands, except per share data)
Numerator:
Net loss used to compute net loss per share, basic and diluted	$	(471,716)	$	(229,743)	$	(124,827)
Denominator:
Weighted-average number of shares used in computing net loss per share, basic and diluted		90,558		81,011		69,555
Net loss per share, basic and diluted	$	(5.21)	$	(2.84)	$	(1.79)

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, 2021, 2020, and 2019:

	December 31,
	2021	2020	2019
	(in thousands)
Options to purchase common stock	5,898	6,707	8,497
Restricted stock units	3,988	4,188	2,404
Employee stock purchase plan	33	37	32
Convertible Note	7,411	7,411	—
Estimated earnout shares for an asset acquisition	353	—	—
	17,683	18,343	10,933