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Net Loss per Share
6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Net Loss per Share

3. Net Loss per Share

We compute net loss per share using the two-class method required for multiple classes of common stock. We have three classes of authorized common stock for which voting rights differ by class.

Basic net loss per share is computed by dividing net loss attributable to each class of stockholders by the weighted-average number of shares of stock outstanding during the period. Vested restricted stock units (“RSUs”) that have not been settled, including the vested Chief Executive Officer (“CEO”) RSU award that was received upon our initial public offering (“IPO”) (“CEO Award”), and restricted stock awards (“RSAs”) for which the risk of forfeiture has lapsed have been included in the appropriate common share class used to calculate basic net loss per share.

For the calculation of diluted net loss per share, net loss per share attributable to common stockholders for basic net loss per share is adjusted by the effect of dilutive securities, including awards under our equity compensation plans. Diluted net loss per share attributable to common stockholders is computed by dividing the resulting net loss attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding. We use the if-converted method for calculating any potential dilutive effect of the senior convertible notes due in 2025 and 2026 (collectively, the “Convertible Notes”) on diluted net loss per share, subject to meeting the criteria for using the treasury stock method in future periods. The Convertible Notes would have a dilutive impact on net income per share when the average market price of Class A common stock for a given period exceeds the respective conversion price of the Convertible Notes. For the periods presented, our potentially dilutive shares relating to stock options, RSUs, RSAs, convertible notes, and common stock subject to repurchase were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive.

The numerators and denominators of the basic and diluted net loss per share computations for our common stock are calculated as follows for the three and six months ended June 30, 2020 and 2019:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(in thousands, except per share data)

 

 

 

Class A

Common

 

 

Class B

Common

 

 

Class C

Common

 

 

Class A

Common

 

 

Class B

Common

 

 

Class C

Common

 

 

Class A

Common

 

 

Class B

Common

 

 

Class C

Common

 

 

Class A

Common

 

 

Class B

Common

 

 

Class C

Common

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(266,759

)

 

$

(5,462

)

 

$

(53,730

)

 

$

(200,295

)

 

$

(9,089

)

 

$

(45,790

)

 

$

(515,923

)

 

$

(10,692

)

 

$

(105,271

)

 

$

(440,465

)

 

$

(22,440

)

 

$

(102,676

)

Net loss attributable to

   common stockholders

 

$

(266,759

)

 

$

(5,462

)

 

$

(53,730

)

 

$

(200,295

)

 

$

(9,089

)

 

$

(45,790

)

 

$

(515,923

)

 

$

(10,692

)

 

$

(105,271

)

 

$

(440,465

)

 

$

(22,440

)

 

$

(102,676

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average

   common shares

   - Basic

 

 

1,184,246

 

 

 

24,248

 

 

 

238,528

 

 

 

1,069,507

 

 

 

48,535

 

 

 

244,502

 

 

 

1,172,536

 

 

 

24,300

 

 

 

239,249

 

 

 

1,051,952

 

 

 

53,593

 

 

 

245,218

 

Diluted shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average

   common shares

   - Diluted

 

 

1,184,246

 

 

 

24,248

 

 

 

238,528

 

 

 

1,069,507

 

 

 

48,535

 

 

 

244,502

 

 

 

1,172,536

 

 

 

24,300

 

 

 

239,249

 

 

 

1,051,952

 

 

 

53,593

 

 

 

245,218

 

Net loss per share

   attributable to

   common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.23

)

 

$

(0.23

)

 

$

(0.23

)

 

$

(0.19

)

 

$

(0.19

)

 

$

(0.19

)

 

$

(0.44

)

 

$

(0.44

)

 

$

(0.44

)

 

$

(0.42

)

 

$

(0.42

)

 

$

(0.42

)

Diluted

 

$

(0.23

)

 

$

(0.23

)

 

$

(0.23

)

 

$

(0.19

)

 

$

(0.19

)

 

$

(0.19

)

 

$

(0.44

)

 

$

(0.44

)

 

$

(0.44

)

 

$

(0.42

)

 

$

(0.42

)

 

$

(0.42

)

 

 

The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:

 

 

 

Three and Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Stock options

 

 

7,008

 

 

 

12,491

 

Unvested RSUs and RSAs

 

 

152,972

 

 

 

158,253

 

Convertible Notes (if-converted)

 

 

101,591