SUTRO BIOPHARMA, INC. Earnings Per Share Disclosure
14. Net Loss Per Share
The following table sets forth the computation of the Company’s basic and diluted net loss per share.
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|
Year Ended December 31, |
|
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|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|||
|
|
(in thousands, except share and per share amounts) |
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Numerator: |
|
|
|
|
|
|
|
|
|
|||
Net loss |
|
$ |
(227,461 |
) |
|
$ |
(106,793 |
) |
|
$ |
(119,204 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Shares used in computing net loss per share |
|
|
76,829,198 |
|
|
|
60,163,542 |
|
|
|
50,739,185 |
|
Net loss per share, basic and diluted |
|
$ |
(2.96 |
) |
|
$ |
(1.78 |
) |
|
$ |
(2.35 |
) |
The following common stock equivalents were excluded from the computation of diluted net loss per share for the years ended December 31, 2024, 2023 and 2022 because including them would have been antidilutive:
|
|
Year Ended December 31, |
|
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|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|||
Common stock options issued and outstanding |
|
|
8,671,883 |
|
|
|
7,905,032 |
|
|
|
7,310,611 |
|
Restricted stock units issued and outstanding |
|
|
5,955,109 |
|
|
|
5,244,873 |
|
|
|
3,958,478 |
|
Warrants to purchase common stock |
|
|
127,616 |
|
|
|
127,616 |
|
|
|
127,616 |
|
Shares to be issued under ESPP |
|
|
440,170 |
|
|
|
226,490 |
|
|
|
150,532 |
|
Total |
|
|
15,194,778 |
|
|
|
13,504,011 |
|
|
|
11,547,237 |
|
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.