Annual report pursuant to Section 13 and 15(d)

Net Income (Loss) Per Share

v3.8.0.1
Net Income (Loss) Per Share
12 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Income (Loss) Per Share
Prior to the initial public offering, the Company calculated net income (loss) per share (EPS) available to common stockholders using the two-class method, which allocates net income that otherwise would have been available to common shareholders to holders of participating securities. In connection with the Company’s initial public offering, the Company recognized a deemed dividend of $24.9 million to Series D and E convertible preferred shareholders, as further discussed in Note 17, Stockholders’ Equity.
Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities are excluded from the computation of dilutive EPS in periods in which the effect would be antidilutive.
The computation of the Company’s basic and diluted net income per share are as follows (in thousands, except per share amounts):
 
 
Years Ended December 31,
 
 
2017
 
2016
 
2015
Numerator:
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
 
$
124,525

 
$
91,687

 
$
(28,246
)
Less: Deemed dividend to convertible preferred stockholders
 

 

 
(24,890
)
Net Income (loss) available to common stockholders
 
$
124,525

 
$
91,687

 
$
(53,136
)
Denominator:
 
 
 
 
 
 
Weighted average shares used to compute net income (loss) per share attributable to common stockholders, basic
 
105,432

 
102,367

 
55,091

Weighted average effect of potentially dilutive shares to purchase common stock
 
2,774

 
2,597

 

Weighted average shares used to compute net income (loss) per share attributable to common stockholders, diluted
 
108,206

 
104,964

 
55,091

Net income (loss) per share attributable to common stockholders
 
 
 
 
 
 
Basic
 
$
1.18

 
$
0.90

 
$
(0.96
)
Diluted
 
$
1.15

 
$
0.87

 
$
(0.96
)

The following shares were excluded from the computation of diluted net income per share as the impact of including those shares would be anti-dilutive (in thousands):
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Warrants
 
1,251

 
1,251

 
1,251

Outstanding stock options
 
13,803

 
8,981

 
12,631

Unvested restricted stock units
 
1,451

 
1,564

 
599

ESPP
 

 

 
79

Total
 
16,505

 
11,796

 
14,560