Net Loss Per Share

6 Months Ended

Jun. 30, 2022

NOTE 10. Net loss per share

The Company computes net loss per share attributable to common stockholders using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, the Company’s undistributed earnings or losses are allocated on a proportionate basis among the holders of both Class A and Class B common stock. As a result, the net loss per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Effective August 9, 2022, all Class B common stock were converted to Class A common stock. Net loss per share for the three and six months ended June 30, 2022 and 2021 were not affected by the conversion. Refer to Note 13 – Subsequent Events for more information on the conversion of Class B common stock to Class A common stock.

The following table sets forth the computation of basic and diluted net loss per share:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
	(in millions, except per share data)
Numerator:
Net loss	$	(90	)	$	(111	)	$	(150	)	$	(239	)
Denominator:
Weighted-average shares used in computing net loss per share, basic and diluted		667			624			664			621
Net loss per share, basic and diluted	$	(0.13	)	$	(0.18	)	$	(0.23	)	$	(0.38	)

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect:


	As of June 30,
	2022		2021
	(in millions)
Common stock options outstanding		50		70
Unvested restricted stock units outstanding(1)		80		39
Employee Stock Purchase Plan		2		3
Total		132		112

(1)

Unvested restricted stock units outstanding as of June 30, 2021 include 11 million performance-based RSUs, which were cancelled in the first quarter of 2022.