Basic and Diluted Net Loss Per Share

3 Months Ended

Mar. 31, 2016

Note 12. Basic and Diluted Net Loss Per Share

Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less the weighted-average unvested common stock subject to repurchase or forfeiture as they are not deemed to be issued for accounting purposes. Diluted net loss per share is computed by giving effect to all potential shares of common stock, stock options, restricted stock units, ESPP, stock options related to the non-vested early exercises and stock related to non-vested restricted stock awards, to the extent they are dilutive. For the three months ended March 31, 2016 and 2015, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive.

The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except per share data):

	Three Months Ended
	March 31,
	2016			2015
Numerator
Net loss	$	(6,613	)	$	(10,611	)
Denominator
Weighted-average common shares for basic and diluted net loss per share		72,114			68,764
Basic and diluted net loss per share	$	(0.09	)	$	(0.15	)

The following table sets forth the potential shares of common stock that were excluded from diluted weighted-average common shares outstanding (in thousands):

	Three Months Ended
	March 31,
	2016		2015
Shares of unvested common stock subject to repurchase		—		13
Shares of common stock issuable under equity incentive awards outstanding		11,379		11,611
Potential common shares excluded from diluted net loss per share		11,379		11,624