Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2024

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method for the employee equity incentive plans and stock-based awards, and the if-converted method for the 2026 Convertible Senior Notes and 2030 Convertible Notes. If the Company reports a net loss, the computation of diluted loss per share excludes the effect of dilutive common stock equivalents, as their effect would be antidilutive. The Company computes earnings (loss) per share using the two-class method for its Class A and Class B common stock. Earnings (loss) per share is same for both Class A and Class B common stock since they are entitled to the same liquidation and dividend rights.

The following table sets forth the computation of basic and diluted income/(loss) per share for the three and nine months ended September 30, 2024 and 2023 (in thousands, except for share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net income (loss)	$	27,403	$	(134,338)	$	(228,918)	$	(422,868)
2026 Convertible Senior Notes extinguishment	(141,203)		—		(141,203)		—
2030 Convertible Notes extinguishment	$	(5,355)	$	—	$	(5,355)	$	—

Net income (loss) attributable to common shareholders	$	(119,155)	$	(134,338)	$	(375,476)	$	(422,868)
Denominator:
Weighted average common shares outstanding—Basic	480,016,365		394,591,942		453,074,622		382,673,871
Dilutive effect of potential common shares
2026 Convertible Senior Notes extinguished	8,817,633		—		17,016,484		—
2030 Convertible Notes	5,180,954		—		1,726,985		—


Weighted average common shares outstanding—Diluted	494,014,952		394,591,942		471,818,091		382,673,871
Net income (loss) per share
Basic	$	0.06	$	(0.34)	$	(0.51)	$	(1.11)
Diluted	$	(0.24)	$	(0.34)	$	(0.80)	$	(1.11)

The following table presents the potential shares of common stock outstanding that were excluded from the computation of diluted net loss per share of common stock as of the periods presented because including them would have been antidilutive or related contingencies on issuance of shares had not been met for the three and nine months ended September 30, 2024:



																					September 30, 2024
Warrants																					5,757,549
Stock-based awards—Equity classified																					35,494,946
Stock-based awards—Liability classified																					37,743,480
Vendor stock-in-lieu of cash program																					6,314,814
Series 1 Notes																					48,821,579
Series 2 Notes																					112,112,553
2026 Convertible Senior Notes																					10,163,806
Earn-out shares																					8,606,717
Total																					265,015,444