; ForgeRock, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Share

v3.21.2
Net Loss Per Share
9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Net Loss Per Share Net Loss Per Share
The Company computes net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net losses. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both individual and combined basis. Before the IPO, the Company’s outstanding securities also included redeemable convertible preferred stock. The holders of redeemable convertible preferred stock did not have a contractual obligation to share in the Company’s losses, and as a result, net losses were not allocated to these securities.

The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented. The shares issued in the IPO, Class A, and Class B common stock issued upon conversion of the outstanding shares of common stock and redeemable convertible preferred stock in the IPO are included in the table below weighted for the period outstanding in the nine months ended September 30, 2021. There has not been any conversion of Class B shares to Class A since IPO.
The following table provides a reconciliation of the numerator and denominator used in the Company’s calculation of basic and diluted net loss per share:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(in thousands, except per share data) (in thousands, except per share data)
Class A Class B Common Class A Class B Common
Numerator:
Net loss attributable to common stockholders $ (908) $ (14,358) $ (7,809) $ (875) $ (34,535) $ (43,763)
Denominator:
Weighted-average common stock outstanding attributable to common stockholders, basic and diluted 2,063  32,618  24,039  695  27,429  23,941 
Net loss per share attributable to common stockholders:
Basic and diluted $ (0.44) $ (0.44) $ (0.32) $ (1.26) $ (1.26) $ (1.83)

Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti- dilutive. The following outstanding potentially dilutive ordinary shares were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented, as their effect would have been antidilutive:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(in thousands)
Redeemable convertible preferred stock —  40,843  —  40,843 
Stock options 12,997  4,396  13,050  4,419 
Restricted stock units 268  351  305  351 
Convertible preferred stock warrants and option —  2,347  —  2,347 
Other awards including contingently issuable shares 43  72  68  84 
Total anti-dilutive shares 13,308  48,009  13,423  48,044