Net Income (Loss) per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Net Income (Loss) per Share

4. Net Income (Loss) per Share

We compute net income (loss) per share of Class A and Class B common stock using the two-class method required for multiple classes of common stock and participating securities. Prior to the IPO, our participating securities included Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock, as the holders of these series of preferred stock were entitled to receive noncumulative dividends subject to certain requirements at an annual rate of 8% of the respective original issue price then in effect in the event that a dividend was paid on common stock.

In connection with our IPO, our Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, and Series F preferred stock converted on a one-to-one basis into 67,917,432 shares of Class B common stock, and our Series F-1 preferred stock converted on a one-to-one basis into 5,104,017 shares of Class A common stock. These shares are weighted in the denominator of net loss per share for Class A and Class B common stock for the portion of the time outstanding subsequent to our IPO.

The holders of Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock did not have a contractual obligation to share in our losses. As such, our net losses for the three months ended March 31, 2023 were not allocated to these participating securities.

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stock:

	March 31, 2024
	Class A		Class B		Consolidated
	(in thousands, except share and per share data)
Numerator:
Net income (loss) attributable to common stockholders	$	(92,094)	$	(482,972)	$	(575,066)
Denominator:
Basic weighted-average common shares outstanding	11,248,688		58,991,804		70,240,492
Diluted weighted-average common shares outstanding	11,248,688		58,991,804		70,240,492
Basic and diluted income (loss) per share attributable to common stockholders:	$	(8.19)	$	(8.19)	$	(8.19)

	March 31, 2023
	Class A		Class B		Consolidated
	(in thousands, except share and per share data)
Numerator:
Net income (loss) attributable to common stockholders	$	(7,015)	$	(53,851)	$	(60,866)
Denominator:
Basic weighted-average common shares outstanding	6,698,085		51,416,661		58,114,745
Diluted weighted-average common shares outstanding	6,698,085		51,416,661		58,114,745
Basic and diluted income (loss) per share attributable to common stockholders:	$	(1.05)	$	(1.05)	$	(1.05)

As of March 31, 2024 and 2023, basic and diluted shares were the same as there were no securities that were dilutive.

The following outstanding potentially dilutive shares, including stock options that have been exercised prior to vesting, were excluded from the computation of diluted net income (loss) per share attributable to common stock for the periods presented because the impact of including them would have been anti-dilutive.

	March 31, 2024
	Class A	Class B	Consolidated
Stock options	19,365,137	6,418,074	25,783,211
Unvested RSUs & RSAs	14,758,638	1,372,694	16,131,332
	34,123,775	7,790,768	41,914,543

	March 31, 2023
	Class A	Class B	Consolidated
Stock options	15,882,441	8,204,871	24,087,312
Unvested RSUs & RSAs	15,223,756	4,362,661	19,586,417
Preferred shares	5,104,017	67,917,432	73,021,449
	36,210,214	80,484,964	116,695,178