Net Loss per Share

3 Months Ended

Mar. 31, 2024

Net Loss per Share

Net Loss per Share

12. Net Loss per Share

The Convertible Notes are convertible by the holders as of March 31, 2024. 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 fair value of the shares issued to settle the Convertible Notes would exceed the Convertible Note principle by $311.8 million based on the closing price of the Company’s common stock as of March 31, 2024. 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 have been excluded from the calculation of diluted earnings per share. If converted, the Company does not intend to settle the obligation in cash.

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, 2024 and 2023:

	March 31,
	2024	2023
	(in thousands)
Options to purchase common stock	4,709	5,448
Performance-based awards and restricted stock units	11,901	10,356
Employee stock purchase plan	221	197
Convertible Notes	7,411	7,411
Total	24,242	23,412