Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2019

Note 12 - Net Income (Loss) Per Share

The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in millions, except share amounts which are reflected in thousands, and per share amounts):



	Three Months Ended March 31,
	2018			2019
Basic net income (loss) per share:
Numerator
Net income (loss)	$	3,748		$	(1,016	)
Less: net loss attributable to redeemable non-controlling interest, net of tax	—			4
Less: noncumulative dividends to preferred stockholders	(1,069		)	—
Less: undistributed earnings to participating securities	(1,803		)	—
Net income (loss) attributable to common stockholders	$	876		$	(1,012	)
Denominator
Basic weighted-average common stock outstanding	437,065			453,543
Basic net income (loss) per share attributable to common stockholders	$	2.00		$	(2.23	)
Diluted net income (loss) per share:
Numerator
Net income (loss) attributable to common stockholders	$	876		$	(1,012	)
Add: Change in fair value of MLU B.V. put/call feature	—			(12		)
Add: noncumulative dividends to preferred stockholders	—			—
Diluted net income (loss) attributable to common stockholders	$	876		$	(1,024	)
Denominator
Number of shares used in basic net income (loss) per share computation	437,065			453,543
Weighted-average effect of potentially dilutive securities:
Common stock subject to a put/call feature	653			76
Stock options	35,729			—
RSUs to settle fixed monetary awards	1,617			—
Other	89			—
Diluted weighted-average common stock outstanding	475,153			453,619
Diluted net income (loss) per share attributable to common stockholders	$	1.84		$	(2.26	)

On May 14, 2019, the Company completed its IPO, in which it issued and sold 180 million shares of its common stock at a price of $45.00 per share. On that date, all of the Company’s outstanding redeemable convertible preferred stock automatically converted into 905 million shares of common stock. These shares will be included in the Company’s issued and outstanding common stock starting on that date. Refer to Note 17 - Subsequent Events for further information.

The following potentially dilutive outstanding securities as of March 31, 2018 and 2019 were excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (in thousands):



	Three Months Ended March 31,
	2018	2019
Redeemable convertible preferred stock	894,060	904,530
Convertible notes	198,484	202,733
Stock options	7,654	42,466
Restricted common stock with performance condition	955	1,939
Common stock subject to repurchase	10,058	1,570
Warrants to purchase redeemable convertible preferred stock	1,585	150
SARs	867	803
RSUs to settle fixed monetary awards	1,066	999
RSUs	116,973	168,210
Warrants to purchase common stock	178	187
Total	1,231,880	1,323,587