Net Loss Per Share Attributable to Common Stockholders

Basic net loss per share is computed by dividing net loss by basic weighted-average shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by diluted weighted-average shares outstanding, including potentially dilutive securities.

On July 12, 2021, the shares of Class B common stock that converted to Class A common stock were retired and will not be reissued by the Company. Prior to that date, the Company computed net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights of the holders of the Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Accordingly, the Class A common stock and Class B common stock share equally in the Company's net losses.

The following table presents the computation of basic and diluted net loss per share of common stock (in millions, except per share data):


	Year ended December 31,
	2022				2021				2020
	Class A(1)		Class B(2)		Class A (1)		Class B(2)		Class A (1)		Class B(2)
	(in thousands, except per share amounts)
Net loss attributable to common stockholders	$	(190,774)	$	—	$	(212,120)	$	(10,577)	$	(78,114)	$	(17,818)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	121,723		—		110,541		5,512		84,319		19,233
Net loss per share attributable to common stockholders, basic and diluted	$	(1.57)	$	—	$	(1.92)	$	(1.92)	(0.93)		$	(0.93)

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(1)Class A common stock includes the issuance of 12.9 million shares of Class A common stock issued by the Company in connection with the IPO and the shares issued in connection with the follow-on offering on May 26, 2020. It also includes shares issued upon the exercise of options and vesting of RSUs granted subsequent to the IPO, shares issued as part of the prior acquisitions, and converted Common B shares.

(2)Class B common stock includes, for all periods presented, common stock issued prior to the IPO and the conversion of all of the Company's preferred stock into an aggregate of 53.6 million shares of the Company's Class B common stock upon closing of the IPO. Some of these shares were previously converted into shares of Class A common stock. On July 12, 2021, all shares of Class B common stock were converted into shares of Class A common stock.

The following securities were excluded from the computation of diluted net loss per share of common stock for the periods presented as their effect would have been antidilutive (in millions):


	Number of Shares
	Year ended December 31,
	2022	2021	2020
		(in thousands)
Stock options	2,443	4,369	6,963
Early exercised stock options	—	—	91
RSUs	11,990	5,285	4,520
Revest shares	—	336	784
PSUs	267	71	88
MPSUs	2,174	—	—
Bonus PSUs	1,777	—	—
Shares issuable pursuant to the ESPP	186	51	25
Convertible senior notes (if-converted)	7,338	9,229	—
Total	26,175	19,341	12,471

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.

Fastly, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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