Net Income (Loss) per Share

6 Months Ended

Jun. 30, 2024

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 income (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 and six months ended June 30, 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:


	Three months ended June 30,							Six months ended June 30,
	2024				2023					2024			2023
	Class A		Class B			Class A		Class B			Class A			Class B		Class A		Class B
	(in thousands, except share and per share data)
Numerator:
Net income (loss) attributable to common stockholders	$	(3,034)	$	(7,065)		$	(4,952)	$	(36,157)		$	(151,229)		$	(433,936)	$	(12,021)	$	(89,954)
Denominator:
Basic weighted-average common shares outstanding	49,386,912		114,995,824			7,047,807		51,460,350			30,317,800			86,993,814		6,873,912		51,438,626
Diluted weighted-average common shares outstanding	49,386,912		114,995,824			7,047,807		51,460,350			30,317,800			86,993,814		6,873,912		51,438,626
Basic and diluted income (loss) per share attributable to common stockholders:	$	(0.06)	$	(0.06)		$	(0.70)	$	(0.70)		$	(4.99)		$	(4.99)	$	(1.75)	$	(1.75)

As of June 30, 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.


	June 30, 2024
	Class A	Class B	Consolidated
Stock options	19,090,416	6,410,374	25,500,790
Unvested RSUs & RSAs	12,620,086	1,335,312	13,955,398

	31,710,502	7,745,686	39,456,188


	June 30, 2023
	Class A	Class B	Consolidated
Stock options	15,642,899	8,127,519	23,770,418
Unvested RSUs & RSAs	15,928,878	4,475,150	20,404,028
Preferred shares	5,104,017	67,917,432	73,021,449
	36,675,794	80,520,101	117,195,895