Basic and Diluted Net Loss Per Share

3 Months Ended

Mar. 31, 2024

Basic and Diluted Net Loss Per Share [Abstract]

6. Basic and Diluted Net Loss Per Share

Basic net loss per share

We calculated our basic net loss per share for the three months ended March 31, 2024 and 2023 by dividing our net loss by our weighted-average number of common shares outstanding during the period.

Diluted net loss per share

For the three months ended March 31, 2024 and 2023, we incurred a net loss; therefore, we did not include dilutive common equivalent shares in the computation of diluted net loss per share because the effect would have been anti-dilutive. Common stock from the following would have had an anti-dilutive effect on net loss per share:

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0 percent convertible senior notes, or 0% Notes;

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Note hedges related to the 0% Notes;

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0.125 percent convertible senior notes, or 0.125% Notes;

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Note hedges related to the 0.125% Notes;

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Dilutive stock options;

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Unvested restricted stock units, or RSUs;

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Unvested performance restricted stock units, or PRSUs; and

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Employee Stock Purchase Plan, or ESPP.

For the three months ended March 31, 2024, common stock underlying the 1.75 percent convertible senior notes, or 1.75% Notes, would also have had an anti-dilutive effect on net loss per share.

Additionally as of March 31, 2024 and 2023, we had warrants related to our 0% and 0.125% Notes outstanding. We will include the shares issuable under these warrants in our calculation of diluted earnings per share when the average market price per share of our common stock for the reporting period exceeds the strike price of the warrants.