Net Loss per Share

12 Months Ended

Dec. 31, 2021

Net Loss Per Share

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 2024 Notes at ratio of 25.9182 shares of our stock per $1,000 principal amount of the 2024 Notes. The Company would assume conversion of the 2026 Notes at a ratio of 13.2933 shares of our stock per $1,000 principal amount of the 2026 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 year ended December 31, 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:


	Year Ended December 31,
	2021		2020		2019
Net loss (in thousands)	$	(124,974)	$	(107,594)	$	(96,071)
Weighted average number of shares outstanding, basic and diluted	69,606,105		65,888,450		62,593,026
Net loss per share, basic and diluted	$	(1.80)	$	(1.63)	$	(1.53)

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


	December 31,
	2021	2020
Shares subject to outstanding common stock options and employee stock purchase plan	4,782,487	4,330,686
Restricted stock units	3,732,013	2,953,252
Conversion option of the 2024 Notes	5,961,186	5,961,186
Conversion option of the 2026 Notes	6,879,283	6,879,283
	21,354,969	20,124,407