Net Loss Per Share

3 Months Ended

Mar. 31, 2021

Adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity

We adopted ASU 2020-06 on January 1, 2021 under the modified retrospective method applied to convertible senior notes outstanding as of January 1, 2021 and have not changed previously disclosed amounts or provided additional disclosures for comparative periods. ASU 2020-06 requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. Under the if-converted method, shares related to our convertible senior notes, to the extent dilutive, are assumed to be converted into common stock at the beginning of the period.

During the three months ended March 31, 2021 and 2020, basic and diluted net loss per share was the same, 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,
	2021		2020
Numerator:
Net loss	$	(65,179)	$	(5,713)



Denominator:
Weighted average shares used to compute net loss per share, basic and diluted	134,352		122,428





Net loss per share, basic and diluted	$	(0.49)	$	(0.05)

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,
	2021	2020(1)
Options to purchase common stock	556	1,050
PSUs and RSUs	2,982	3,316
Shares related to convertible senior notes	28,818	3,968
Employee stock purchase plan	25	10
Total common stock equivalents	32,381	8,344

(1) As noted above, prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method.