Net Loss Per Share

12 Months Ended

Dec. 31, 2020

The following table summarizes the computation of basic and diluted net loss per share of our common stock for 2020, 2019 and 2018:


	Year Ended December 31,
	2020		2019		2018
	(in thousands, except share and per share data)
Numerator:
Net loss	$	(98,849)	$	(53,845)	$	(55,545)
Denominator:
Weighted-average common shares outstanding, basic and diluted	51,036,824		48,731,791		46,456,825
Net loss per share, basic and diluted	$	(1.94)	$	(1.10)	$	(1.20)

The shares underlying the conversion options in the 2023 Notes and the 2025 Notes were not considered in the calculation of diluted net loss per share as the effect would have been anti-dilutive. Based on the initial conversion prices, the entire outstanding principal amount of the 2023 Notes and the 2025 Notes as of December 31, 2020 would have been convertible into approximately 5.5 million and 3.8 million shares, respectively. We expect to settle the principal amount of the 2023 Notes and the 2025 Notes in cash. As a result, only the amount by which the conversion value exceeds the aggregate principal amount of the 2023 Notes and the 2025 Notes is considered in the diluted earnings per share computation under the treasury stock method. The conversion spread has a dilutive impact on diluted net income per share when the average market price of our common stock for a given period of time exceeds the initial conversion prices of $41.59 per share for the 2023 Notes and $61.02 per share for the 2025 Notes. In connection with the issuance of the 2023 Notes and the 2025 Notes, we entered into 2023 Capped Calls and 2025 Capped Calls, which were not included for the purpose of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive.

During the three months ended December 31, 2020, the conversion feature of the 2023 Notes was triggered as the last reported price of our common stock was more than or equal to 130% of the conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter, and therefore the Notes are currently convertible, in whole or in part, at the option of the holders. We had not received any conversion notices through the issuance date of our audited consolidated financial statements. For disclosure purposes, we have calculated the potentially dilutive effect of the conversion spread, which is included in the table below.

The following potentially dilutive securities outstanding, prior to the use of the treasury stock method, have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive:


	Year Ended December 31,
	2020	2019	2018
Options to purchase common stock	1,933,013	2,705,458	3,713,179
Unvested restricted stock	—	—	21,677
Unvested restricted stock units	2,941,914	2,936,924	2,773,773
Shares to be issued under ESPP	101,658	53,167	74,634
Convertible senior notes	9,299,432	5,530,176	5,530,176
Total	14,276,017	11,225,725	12,113,439