Net Loss Per Share

12 Months Ended

Dec. 31, 2022

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 shares subject to repurchase. The diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, stock options, RSUs, PSUs, the 2025 Notes and stock purchase rights granted under the Company’s ESPP are considered to be common stock equivalents but are excluded from the calculation of diluted net loss per share when including them has an anti-dilutive effect. Basic and diluted net loss per share are the same for each class of common stock because they are entitled to the same liquidation and dividend rights.

The following table sets forth the computation of basic and diluted net loss per share for the periods indicated (in thousands, except per share data):


	Year Ended December 31,
	2022		2021		2020
Net loss	$	(1,584,511)	$	(1,062,144)	$	(1,752,857)
Weighted-average shares used in computing net loss per share, basic and diluted	354,731		334,724		312,175
Net loss per share, basic and diluted	$	(4.47)	$	(3.17)	$	(5.61)

The following potentially dilutive outstanding shares were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect, 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):


	As of December 31,
	2022	2021	2020
2025 Notes(1)	19,471	19,471	19,471
Restricted stock units	20,542	16,285	33,428
Performance based restricted stock units	1,773	831	175
Stock options	993	1,105	1,919
ESPP	307	115	89
Total	43,086	37,807	55,082

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(1)In connection with the issuance of the 2025 Notes, the Company entered into Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. The Capped Calls are expected to reduce the potential dilution to the Company's Class A common stock (or, in the event a conversion of the 2025 Notes is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2025 Notes the Company's Class A common stock price exceeds the conversion price of the 2025 Notes.