Note 23. Net Income (Loss) Per Share

Prior to the initial public offering, the Company calculated net income (loss) per share (EPS) available to common stockholders using the two-class method, which allocates net income that otherwise would have been available to common shareholders to holders of participating securities. In connection with the Company’s initial public offering, the Company recognized a deemed dividend of $24.9 million to Series D and E convertible preferred shareholders, as further discussed in Note 17, Shareholders’ Equity.

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive.

The computation of the Company’s basic and diluted net income (loss) per share are as follows (in thousands, except per share amounts):

	Years Ended December 31,
	2016		2015			2014
Numerator:
Net income (loss) attributable to common stockholders	$	91,687	$	(28,246	)	$	(70,852	)
Less: Deemed dividend to convertible preferred stockholders		—		(24,890	)		—
Net Income (loss) available to common stockholders	$	91,687	$	(53,136	)	$	(70,852	)
Denominator:
Weighted average shares used to compute net income (loss) per share attributable to common stockholders, basic		102,367		55,091			22,795
Weighted average effect of potentially dilutive shares to purchase common stock		2,597		—			—
Weighted average shares used to compute net income (loss) per share attributable to common stockholders, diluted		104,964		55,091			22,795
Net income (loss) per share attributable to common stockholders
Basic	$	0.90	$	(0.96	)	$	(3.11	)
Diluted	$	0.87	$	(0.96	)	$	(3.11	)

The following shares were excluded from the computation of diluted net income (loss) per share as the impact of including those shares would be anti-dilutive (in thousands):

	Year Ended December 31,
	2016		2015		2014
Preferred stock		—		—		54,841
Warrants		1,251		1,251		—
Outstanding stock options		8,981		12,631		11,328
Unvested restricted stock units		1,564		599		—
ESPP		—		79		—
Total		11,796		14,560		66,169