NET LOSS PER SHARE

9 Months Ended

Sep. 30, 2024

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period.

Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, plus potentially dilutive common shares, consisting of stock-based awards and equivalents, and convertible debt. For purposes of this calculation, stock-based awards and equivalents and convertible debt are considered to be potential common shares and are only included in the calculation of diluted net loss per share when their effect is dilutive. The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock-based awards and equivalents. The Company uses the if-converted method to compute diluted earnings per share with respect to its convertible debt. Under the if-converted method, the Company assumes any convertible debt outstanding was converted at the beginning of each period presented when the effect is dilutive. As a result, interest expense, net of tax, and any other income statement impact associated with the 2027 Convertible Notes, net of tax, is added back to net loss used in the diluted earnings per share calculation. Additionally, the diluted shares used in the diluted earnings per share calculation includes the potential dilution effect of the convertible debt if converted into the Company’s common stock.

The Company’s potentially dilutive stock-based awards and convertible debt were not included in the computation of diluted net loss per share for the three and nine months ended September 30, 2024 and 2023, because to do so would be anti-dilutive. Therefore, for the three and nine months ended September 30, 2024 and 2023, basic and diluted net loss per common share were the same.

The following table reflects the calculation of basic and diluted loss per common share for the three and nine months ended September 30, 2024 and 2023 (in thousands, except for per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Basic and diluted net loss per share
Net loss	$	(2,921)	$	(279,544)	$	(11,105)	$	(274,558)
Weighted-average common shares outstanding	95,352		81,713		95,191		63,066
Basic and diluted net loss per share	$	(0.03)	$	(3.42)	$	(0.12)	$	(4.35)

The following table reflects outstanding potentially dilutive common shares that are not included in the computation of diluted net loss per share, because to do so would be anti-dilutive, for the three and nine months ended September 30, 2024 and 2023 (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Convertible notes	9,768	9,768	9,768	11,324
Stock-based awards and equivalents	10,298	7,016	9,451	7,641
Total potentially dilutive common shares	20,066	16,784	19,219	18,965