Net Loss Per Share

6 Months Ended

Jun. 30, 2021

Basic earnings per share (“EPS”) excludes dilution for common stock equivalents and is computed by dividing net income or loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. All options, warrants, or other potentially dilutive instruments issued for nominal consideration are required to be included in the calculation of basic and diluted net income attributable to common stockholders. Diluted EPS is calculated using the treasury stock method and reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock.

A reconciliation of shares used in calculating basic and diluted net loss per share follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Net loss (in thousands)	$	(21,119)	$	(18,627)	$	(42,314)	$	(55,628)
Weighted average number of shares outstanding, basic and diluted	69,057,129		65,650,782		68,482,653		65,023,302
Net loss per share, basic and diluted	$	(0.31)	$	(0.28)	$	(0.62)	$	(0.86)

The anti-dilutive securities excluded from the shares used to calculate diluted net loss per share are as follows:


	As of June 30,
	2021	2020
Shares subject to outstanding common stock options and employee stock purchase plan	4,252,817	5,481,824
Restricted stock units	3,023,476	3,349,966
	7,276,293	8,831,790

We expect to settle the principal amount of our 0.750% Convertible Senior Notes due 2024 (the “2024 Notes”) and our 0% Convertible Senior Notes due 2026 (the “2026 Notes” and together with the 2024 Notes, the “Notes”) upon conversion in cash and any excess over the principal amount in shares of our common stock. We use the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of our common stock for a given period exceeds the initial conversion price of 130% of $38.58 per share for the 2024 Notes and $75.23 per share for the 2026 Notes.

See Note 8 – Convertible Senior Notes and Capped Call Transactions for a full description of the Notes.