Erasca, Inc. Earnings Per Share Disclosure
Note 14. Net loss per share
The following table summarizes the computation of basic and diluted net loss per share of the Company (in thousands, except share and per share data):
|
|
|
|
Year Ended December 31, |
|
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|
|
|
|
|
|
|
2024 |
|
|
2023 |
|
||
Net loss |
|
|
|
|
|
|
$ |
(161,650 |
) |
|
$ |
(125,042 |
) |
Weighted-average shares of common stock used in computing net loss per share, basic and diluted |
|
|
|
|
|
|
|
233,817,916 |
|
|
|
150,184,994 |
|
Net loss per share, basic and diluted |
|
|
|
|
|
|
$ |
(0.69 |
) |
|
$ |
(0.83 |
) |
The Company’s potentially dilutive securities, which include options to purchase common stock, shares purchasable under the ESPP and common stock subject to repurchase related to options early exercised, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same. The Company excluded the following potential common shares, presented as amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:
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|
December 31, |
|
|
|
December 31, |
|
||
|
|
2024 |
|
|
|
2023 |
|
||
Options to purchase common stock |
|
|
33,910,721 |
|
|
|
|
24,970,957 |
|
Options early exercised subject to future vesting |
|
|
— |
|
|
|
|
371,876 |
|
Estimated shares purchasable under the ESPP |
|
|
612,358 |
|
|
|
|
1,301,205 |
|
Total potentially dilutive shares |
|
|
34,523,079 |
|
|
|
|
26,644,038 |
|
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.