Net Loss and Net Loss Per Share
The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share data): | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2024 | | 2023 |
| | | |
| Numerator: | | | |
| Net loss | $ | (257,590) | | | $ | (327,265) | |
| Denominator: | | | |
| Weighted average common shares outstanding | 194,811,756 | | | 156,931,778 | |
| Net loss per share, basic and diluted | $ | (1.32) | | | $ | (2.09) | |
Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential dilutive securities would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2024 | | 2023 |
| Stock options to purchase common stock | 24,184,884 | | | 21,812,946 | |
| Restricted stock units subject to vesting | 13,343,793 | | | 12,180,471 | |
| Expected shares purchased under Employee Stock Purchase Plan | 1,913,748 | | | 2,168,264 | |
| Early exercised stock options subject to future vesting | — | | | 29,180 | |
| Total | 39,442,425 | | | 36,190,861 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.