Net Loss Per Share

12 Months Ended

Dec. 31, 2022

(10)

Net Loss Per Share

Basic net loss per share attributable to the Company’s common stockholders is computed in conformity with the two-class method required for participating securities. Prior to the automatic conversion of all of its redeemable convertible preferred stock

outstanding into Class B common stock concurrent with the Direct Listing, the Company considered all series of its redeemable convertible preferred stock to be participating securities as holders of such stock had the right to receive nonforfeitable dividends on a ratable basis in the event that a dividend was paid on common stock. Under the two-class method, the net loss attributable to common stockholders was not allocated to the redeemable convertible preferred stock as the preferred stockholders did not have a contractual obligation to share in the Company's losses.

Basic net loss per share is computed by dividing the net loss attributable to the Company’s common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is the same as basic net loss per share for all periods presented because the effects of potentially dilutive items were anti-dilutive given the Company’s net loss position in each period presented.

The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. As the liquidation and dividend rights are identical, all undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and a combined basis.

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):


	Year Ended December 31,
	2022			2021			2020

Net loss attributable to Class A and Class B common stockholders	$	(93,377	)	$	(74,983	)	$	(24,567	)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted		111,437			51,360			25,060
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$	(0.84	)	$	(1.46	)	$	(0.98	)

The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):


	As of December 31,
	2022		2021		2020
Redeemable convertible preferred stock		—		—		61,718
Warrants		—		—		7
Non-plan stock options		—		—		36
Equity plan stock options outstanding		16,768		21,214		28,445
Equity plan stock options early exercised		235		799		276
RSUs outstanding		9,914		1,717		2,571
Restricted shares		241		362		—
Shares issuable pursuant to the ESPP		558		198		—
Total		27,716		24,290		93,053