Net Loss Per Share

9 Months Ended

Sep. 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 "if-converted" method. The "if-converted" method is only assumed in periods where such application would be dilutive. In applying the “if-converted” method for diluted net income per share, the Company would assume conversion of the Notes at a ratio of 25.9182 shares of our common stock per $1,000 principal amount of the Notes. Assumed converted shares of our common stock are weighted for the period the Notes were outstanding. The shares of common stock underlying the conversion option of the Notes were not included in the calculation of diluted income per share for the three and nine months ended September 30, 2021.

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

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Net loss (in thousands)	$	(32,807)	$	(38,710)	$	(75,121)	$	(94,338)
Weighted average number of shares outstanding, basic and diluted	69,798,839		66,451,414		68,926,203		65,504,571
Net loss per share, basic and diluted	$	(0.47)	$	(0.58)	$	(1.09)	$	(1.44)

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


	As of September 30,
	2021	2020
Shares subject to outstanding common stock options and employee stock purchase plan	4,291,829	4,830,154
Restricted stock units	3,063,156	3,231,261
Conversion option of the 2024 Notes	5,961,186	5,961,186
	13,316,171	14,022,601