Net Loss Per Common Share
Basic and diluted net loss per common share were calculated as follows (in thousands except per share amounts):
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| Year ended December 31, |
| 2024 | | 2023 | | 2022 |
| Numerator: | | | | | |
| Net loss attributable to Zentalis | $ | (165,839) | | | $ | (292,191) | | | $ | (236,806) | |
| Denominator: | | | | | |
| Weighted average number of common shares outstanding, basic and diluted | 71,080 | | | 65,409 | | | 52,857 | |
| Net loss per common share | $ | (2.33) | | | $ | (4.47) | | | $ | (4.48) | |
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Our potential and dilutive securities, which include outstanding stock options, unvested RSAs and unvested RSUs have been excluded from the computation of diluted net loss per common share as the effect would be anti-dilutive.
The following common stock equivalents have been excluded from the calculations of diluted net loss per common share because their inclusion would be antidilutive (in thousands):
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| Year ended December 31, |
| 2024 | | 2023 | | 2022 |
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| Outstanding stock options | 13,369 | | | 10,017 | | | 8,051 | |
| Unvested RSAs | — | | | 1 | | | 126 | |
| Unvested RSUs | 2,074 | | | 1,219 | | | 923 | |
| 15,443 | | | 11,237 | | | 9,100 | |
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.