Net Loss Per Share

9 Months Ended

Sep. 30, 2022

NOTE 10. NET LOSS PER SHARE

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed using the weighted-average number of shares of common stock outstanding and potential shares assuming the dilutive effect of the convertible senior notes, using the if-converted method, and outstanding stock options, restricted stock units and common stock issuable pursuant to our employee stock purchase plan, or ESPP, using the treasury stock method.

The following table presents the calculation of the basic and diluted net (loss) income per share amounts presented in the Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:
Net (loss) income	$	(76,971)	$	16,542	$	(229,864)	$	(111,894)

Denominator:
Basic
Weighted average shares used in computing basic net (loss) income		225,123		202,194		223,981		198,545
Basic net (loss) income per share	$	(0.34)	$	0.08	$	(1.03)	$	(0.56)

Diluted
Weighted average shares used in computing basic net (loss) income per share		225,123		202,194		223,981		198,545
Add: weighted average stock options		—		7,754		—		—
Add: weighted average restricted stock units		—		3,598		—		—
Add: weighted average common stock issuable pursuant to our ESPP		—		1,581		—		—
Weighted average shares used in computing diluted net loss per share		225,123		215,127		223,981		198,545
Diluted net (loss) income per share	$	(0.34)	$	0.08	$	(1.03)	$	(0.56)

The following outstanding shares issuable upon conversion of the convertible senior notes, common stock options, restricted stock units (“RSUs”), with time-based vesting and performance-based vesting and ESPP shares expected to be purchased, were excluded from the computation of diluted net (loss) income per share for the three and nine months ended September 30, 2022 and 2021 as the effect would be anti-dilutive or to reduce the net loss per share (in thousands).



	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2022	2021	2022	2021
Shares issuable upon conversion of convertible senior notes	20,690	20,690	20,690	20,690
Options to purchase common stock	15,537	2,326	15,537	12,703
RSUs	8,670	2,006	8,670	6,835
ESPP shares	3,880	126	3,880	1,564

As described in Note 2. Business Acquisitions in Part I, Item 1 of this Quarterly Report on Form 10-Q, the contingently issuable shares would be due upon the achievement of a milestone. See Note 9. Stockholders’ Equity in Part I, Item 1 of this Quarterly Report on Form 10-Q for detailed information on RSUs with time-based vesting and RSUs with performance-based vesting.