XML 32 R19.htm IDEA: XBRL DOCUMENT v3.25.1
Basic and Diluted Net Loss Per Share
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Basic and Diluted Net Loss Per Share
Note 13. Basic and Diluted Net Loss Per Share
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, stock options, restricted stock units, performance stock units, ESPP, convertible notes, and convertible preferred stock, to the extent dilutive. For the three months ended March 31, 2025 and 2024, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive.
The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except per share data):
Three Months Ended
March 31,
20252024
Numerator  
Net loss$(10,328)$(28,494)
Denominator
Weighted-average common shares outstanding for basic and diluted net loss per share91,015 93,142 
Basic and diluted net loss per share$(0.11)$(0.31)
The following table summarizes the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding because including them would have had an anti-dilutive effect (in thousands):
Three Months Ended
March 31,
 20252024
Shares of common stock issuable under equity incentive plans outstanding8,085 9,944 
Shares of common stock related to convertible preferred stock743 743 
Potential common shares excluded from diluted net loss per share8,828 10,687 
Pursuant to the terms of the 2026 Convertible Notes Indenture, effective January 1, 2022, the Company made an irrevocable election to, upon conversions of the 2026 Convertible Notes, settle the principal portion of such converted 2026 Convertible Notes only in cash, with the conversion premium to be settled in cash or shares at the Company’s election.
The Company calculates the potential dilutive effect of the 2026 Convertible Notes under the if-converted method. Under this method, only the amounts settled in excess of the principal will be considered in diluted earnings per share, in line with the terms of the 2026 Convertible Notes Indenture.