Net Loss Per Share

3 Months Ended

Mar. 31, 2018

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. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options, stock related to unvested restricted stock awards, and common stock issuable pursuant to the ESPP to the extent dilutive.

The net loss per share is allocated based on the participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis.

We consider unvested restricted stock awards granted under the 2014 Equity Incentive Plan to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In future periods to the extent we are profitable, we will subtract earnings allocated to these participating securities from net income to determine net income attributable to common stockholders.

A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):


	Three months ended
	March 31, 2018				March 31, 2017
	Class A		Class B		Class A		Class B
Numerator
Net loss	$	(7,330)	$	(2,288)	$	(4,293)	$	(1,543)

Denominator
Weighted-average common shares outstanding - basic and diluted	32,662,318		10,196,438		30,239,390		10,869,221
Basic and diluted net loss per share	$	(0.22)	$	(0.22)	$	(0.14)	$	(0.14)

The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:


	As of
	March 31, 2018	March 31, 2017
Shares subject to outstanding common stock options	7,807,606	8,253,195
Shares subject to unvested restricted stock awards	—	176,665
Shares issuable pursuant to the ESPP	107,764	—