Net Loss Per Share from Continuing Operations Attributable to Common Stockholders and Common Stock

6 Months Ended

Jan. 27, 2024

Net Loss Per Share from Continuing Operations Attributable to Common Stockholders and Common Stock

Basic and diluted loss per share from continuing operations attributable to common stockholders is presented in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock.

Basic net loss per share from continuing operations attributable to common stockholders is computed by dividing the net loss from continuing operations attributable to common stockholders by the weighted-average number of common shares outstanding during the period.

For the calculation of diluted loss per share from continuing operations, net loss from continuing operations attributable to common stockholders for basic loss per share is adjusted by the effect of dilutive securities. Diluted net loss per share from continuing operations attributable to common stockholders is computed by dividing the net loss from continuing operations attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares. In periods of loss, there are no potentially dilutive common shares to add to the weighted-average number of common shares outstanding. The undistributed losses are allocated based on the contractual participation rights of the Class A and Class B common shares as if the losses for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed loss is allocated on a proportionate basis.

The table below presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted loss per share from continuing operations attributable to Class A and Class B common stockholders:


	For the Three Months Ended				For the Six Months Ended
(in thousands, except share and per share amounts)	January 27, 2024		January 28, 2023		January 27, 2024		January 28, 2023
Numerator:
Net loss from continuing operations attributable to Class A and Class B common stockholders	$	(34,956)	$	(63,444)	$	(61,127)	$	(111,596)
Denominator:
Weighted-average shares of common stock - basic	119,045,026		113,928,081		117,845,093		113,143,991
Weighted-average shares of common stock - diluted	119,045,026		113,928,081		117,845,093		113,143,991
Loss per share from continuing operations attributable to Class A and Class B common stockholders:
Basic	$	(0.29)	$	(0.56)	$	(0.52)	$	(0.99)
Diluted	$	(0.29)	$	(0.56)	$	(0.52)	$	(0.99)

As the Company has reported net loss from continuing operations for each of the periods presented, all potentially dilutive securities were considered antidilutive. The following common stock equivalents were excluded from the computation of diluted loss per share from continuing operations because their effect would have been antidilutive for the periods presented:


	For the Three Months Ended		For the Six Months Ended
	January 27, 2024	January 28, 2023	January 27, 2024	January 28, 2023
Restricted stock units that settle into Class A common stock	15,188,812	13,745,346	15,188,812	13,745,346
Stock options to purchase Class A common stock	9,213,028	4,296,003	9,213,028	4,296,003
Stock options to purchase Class B common stock	798,582	905,367	798,582	905,367
Total	25,200,422	18,946,716	25,200,422	18,946,716

Share Repurchase Program

In January 2022, the Company’s Board of Directors authorized a share repurchase program to repurchase up to $150.0 million of our outstanding Class A common stock, with no expiration date (the “2022 Repurchase Program”). The actual timing, number, and value of shares repurchased in the future will be determined by the Company in its discretion and will depend on a number of factors, including market conditions, applicable legal requirements, our capital needs, and whether there is a better alternative use of capital.

We did not repurchase any shares during the six months ended January 27, 2024 or January 28, 2023. As of January 27, 2024, $120.0 million remained available under the 2022 Repurchase Program authorization. Repurchases under the 2022 Repurchase Program during any given fiscal period will reduce the number of weighted-average common shares outstanding for the respective period.