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Net Loss Per Share
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net Loss Per Share

13. Net loss per share

The Company adopted ASU 2020-06 on January 1, 2022, using the modified retrospective method, applicable to its convertible senior notes outstanding as of adoption. The Company has not changed any previously disclosed amounts or provided additional disclosures for comparative periods. ASU 2020-06 requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. Under the if-converted method, shares related to convertible senior notes, to the extent dilutive, are assumed to be converted into common stock at the beginning of the period.

Basic net (loss) income per share attributable to common stockholders is computed using the weighted average number of shares of common stock outstanding for the period, excluding dilutive securities, stock options, RSUs and ESPP shares. Diluted net (loss) income per share attributable to common stockholders is based upon the weighted average number of shares of common stock outstanding for the period and potentially dilutive common shares. The treasury stock method is used to calculate the effect of dilutive securities, stock options, RSUs and ESPP shares and the if-converted method is used to calculate the effect of convertible instruments. The following table sets forth the computation of the numerators and denominators used in the basic and diluted net loss per share amounts (in thousands, except per share data):

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Numerator:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(43,429

)

 

$

(8,794

)

 

$

(10,500

)

Denominator:

 

 

 

 

 

 

 

 

 

Denominator for basic and diluted loss per share — weighted
  average shares

 

 

79,472

 

 

 

76,179

 

 

 

73,241

 

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.55

)

 

$

(0.12

)

 

$

(0.14

)

 

Anti-dilutive shares excluded from the computation of diluted net loss per share were as follows (in thousands):

 

 

 

Year ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Stock options and ESPP

 

 

961

 

 

 

3,425

 

 

 

3,123

 

Convertible shares

 

 

4,958

 

 

 

1,555

 

 

 

 

Total shares excluded from calculation

 

 

5,919

 

 

 

4,980

 

 

 

3,123

 

 

Since the Company was in a net loss position for the years ended December 31, 2022, 2021 and 2020, basic net loss per share attributable to common stockholders is the same as diluted net loss per share for those periods as the inclusion of all potential common shares outstanding would have been anti-dilutive.