NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested restricted stock and RSUs. Diluted net income (loss) per share is computed using the weighted average common shares outstanding for the period plus dilutive potential shares including assumed release of unvested restricted stock and RSUs, assumed exercise of stock options, and assumed issuance of common stock under ESPP using the treasury stock method. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands, except for per share amounts):



	Years Ended December 31,
	2019			2018		2017
Numerator:
Net income (loss)	$	(20,044	)	$	54,343	$	(45,291	)
Denominator:
Weighted-average common stock outstanding, basic	31,529			30,459		29,179
Dilutive potential common shares:
Stock options, RSU's, RSAs and ESPP	—			948		—
Shares used in computation of diluted net income (loss) per share	31,529			31,407		29,179
Basic net income (loss) per share	$	(0.64	)	$	1.78	$	(1.55	)
Diluted net income (loss) per share	$	(0.64	)	$	1.73	$	(1.55	)

The Company includes the underlying market condition stock options in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and excludes such options if the performance condition has not been met.

For the year ended December 31, 2019, approximately 1.0 million stock options and 1.0 million RSUs and RSAs were excluded from computation of diluted net loss per share because their effect would have been anti-dilutive.

For the year ended December 31, 2018, approximately 0.4 million stock options were excluded from computation of diluted net income per share because their effect would have been anti-dilutive.

For the year ended December 31, 2017, approximately 3.6 million stock options and 0.6 million RSUs and RSAs were excluded from computation of diluted net loss per share because their effect would have been anti-dilutive.