NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2023

9. NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes stock options, stock awards and ESPP.

The following is a reconciliation of the denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share amounts):

	Years Ended December 31,
		2023	2022
Denominator:
Weighted-average shares outstanding, basic		32,214	33,280
Shares related to outstanding options, unvested RSUs, RSAs, PSUs and ESPP		322	228
Weighted average shares outstanding, diluted		32,536	33,508

We include market condition-based performance restricted stock units in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and exclude stock equity awards if the performance condition has not been met.

For the year ended December 31, 2023, we had no outstanding stock options and awards that could potentially dilute basic earnings per share in the future. For the year ended December 31, 2022, we had 0.2 million outstanding stock options and 25,000 outstanding awards that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive.