Net Loss Per Share

3 Months Ended

Mar. 31, 2020

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 by giving effect to all potential shares of common stock, including stock options, restricted stock units (RSUs), performance-based restricted stock units (PSUs), and shares related to convertible senior notes, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts):



	Three Months Ended March 31,
	2020			2019
Numerator:
Net loss	$	(5,713	)	$	(4,318	)
Denominator:
Weighted average shares used to compute net loss per share, basic and diluted	122,428			116,730

Net loss per share, basic and diluted	$	(0.05	)	$	(0.04	)

The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands):



	Three Months Ended March 31,
	2020	2019
Options to purchase common stock	1,050	3,258
RSUs and PSUs	3,316	6,732
Shares related to convertible senior notes	3,968	3,332
Employee stock purchase plan	10	41
Total common stock equivalents	8,344	13,363

Shares related to convertible senior notes represents the anti-dilutive impact of our issuance of $345 million in aggregate principal amount of our 2023 notes as the average price of our common stock during the three months ended March 31, 2020 and 2019 was higher than the conversion price of $26.95. While these shares are anti-dilutive during the three months ended March 31, 2020 and 2019, they may be dilutive in periods we report net income. However, as a result of the capped call transactions, there will be no economic dilution from the 2023 notes up to $40.68, as exercise of the capped call instruments will reduce dilution from the 2023 notes that would have otherwise occurred when the average price of our common stock exceeds the conversion price. None of the shares related to our issuance of $800 million in aggregate principal amount of our 2025 notes were anti-dilutive during the three months ended March 31, 2020 and 2019. The average price of our common stock during the three months ended March 31, 2020 and 2019 was lower than the conversion price of our 2025 notes of $51.56.