11. Net Loss Per Share

The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common stockholders, which excludes shares which are legally outstanding, but subject to repurchase by the Company (in thousands, except share and per share amounts):

 

 

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

Net loss

 

$

(63,118

)

 

$

(69,197

)

Denominator:

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

38,210,589

 

 

 

37,904,318

 

Weighted average common stock outstanding subject to repurchase
   related to unvested early exercised stock options and
   restricted stock awards

 

 

(26,658

)

 

 

(92,334

)

Weighted average common shares outstanding - basic
   and diluted

 

 

38,183,931

 

 

 

37,811,984

 

Net loss per share attributable to common stockholders,
   basic and diluted

 

$

(1.65

)

 

$

(1.83

)

 

Potentially dilutive shares to be issued under the ESPP as of December 31, 2024 and 2023 were not included in the calculation of diluted net loss per share because they would be anti-dilutive and were immaterial. In addition, potential dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in common stock equivalent shares):

 

 

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

Common stock options issued and outstanding

 

 

11,423,193

 

 

 

10,706,541

 

Common stock outstanding subject to repurchase related
   to unvested early exercised stock options and restricted
   stock awards

 

 

 

 

 

52,533

 

Total

 

 

11,423,193

 

 

 

10,759,074

 

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.