Net Loss per Share

3 Months Ended

Mar. 31, 2021

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, adjusted for vested restricted stock units (“RSUs”) that have not been settled and restricted stock awards (“RSAs”) for which the risk of forfeiture has not yet lapsed.

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. 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, and Convertible Notes 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 months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021									2020
	(in thousands, except per share data)
	Class A Common			Class B Common			Class C Common			Class A Common			Class B Common			Class C Common
Numerator:
Net loss	$	(238,107	)	$	(4,523	)	$	(44,252	)	$	(249,240	)	$	(5,223	)	$	(51,473	)
Net loss attributable to common stockholders	$	(238,107	)	$	(4,523	)	$	(44,252	)	$	(249,240	)	$	(5,223	)	$	(51,473	)
Denominator:
Basic shares:
Weighted-average common shares - Basic		1,246,333			23,676			231,627			1,161,982			24,352			239,971
Diluted shares:
Weighted-average common shares - Diluted		1,246,333			23,676			231,627			1,161,982			24,352			239,971
Net loss per share attributable to common stockholders:
Basic	$	(0.19	)	$	(0.19	)	$	(0.19	)	$	(0.21	)	$	(0.21	)	$	(0.21	)
Diluted	$	(0.19	)	$	(0.19	)	$	(0.19	)	$	(0.21	)	$	(0.21	)	$	(0.21	)

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 Months Ended March 31,
	2021		2020
	(in thousands)
Stock options		5,305		9,793
Unvested RSUs and RSAs		114,307		143,511
Convertible Notes (if-converted)		101,591		55,468