Net Loss Per Share

3 Months Ended

Mar. 31, 2017

NET LOSS PER SHARE

Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding (excluding shares of restricted stock). Shares issued during the period and shares reacquired during the period are weighted for the portion of the period they were outstanding. Diluted net loss per share is computed in a manner consistent with that of basic net loss per share, while giving effect to all potentially dilutive common shares outstanding during the period, which include the assumed exercise of stock options and the assumed vesting of restricted stock using the treasury stock method, and the assumed conversion of shares under the Notes using the “if-converted” method.

Options to purchase common stock, the vesting of restricted stock awards, RSUs and PSUs, and shares issuable upon conversion of the Notes are considered to be potentially dilutive common shares but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive for the three months ended March 31, 2017 and 2016 as a result of the net losses incurred in those periods. Therefore, diluted net loss per share was the same as basic net loss per share for the three months ended March 31, 2017 and 2016. Stock options, RSUs, restricted stock awards, PSUs, and shares issuable upon the conversion of the Notes outstanding at March 31, 2017 and 2016, which are excluded from the computation of diluted net loss per share for the three months ended March 31, 2017 and 2016, are shown in the table below:



	Three Months Ended March 31,
	2017	2016
Options to purchase common stock	2,945,397	3,370,113
Non-vested restricted stock awards and RSUs	597,673	408,895
Non-vested PSUs	484,746	470,612
Shares issuable upon conversion of the Notes	7,337,459	7,337,459
Potentially dilutive common shares	11,365,275	11,587,079

A summary of the net loss per share calculation is shown below for the periods indicated (in thousands, except share and per share amounts):



	Three Months Ended March 31,
	2017			2016
Net loss	$	(18,524	)	$	(17,291	)
Common shares outstanding:
Historical common shares outstanding at beginning of period	43,303,298			42,632,771
Weighted average common shares issued	187,885			64,552
Weighted average common shares outstanding — basic and diluted	43,491,183			42,697,323
Net loss per share — basic and diluted	$	(0.43	)	$	(0.40	)