NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2020

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, RSUs, RSAs and ESPP.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	2,855	$	(1,387)	$	(2,685)	$	(21,023)
Denominator:
Weighted-average common stock outstanding, basic	26,898		31,711		28,507		31,461
Dilutive effect of potential common shares:
Stock options, RSUs, RSA and ESPP	236		—		—		—
Total shares, diluted	27,134		31,711		28,507		31,461
Basic net income (loss) per share	$	0.11	$	(0.04)	$	(0.09)	$	(0.67)
Diluted net income (loss) per share	$	0.11	$	(0.04)	$	(0.09)	$	(0.67)

For the three and nine months ended September 30, 2020 and 2019, we had stock options, RSUs and RSAs outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net

income (loss) per share because their effect would have been anti-dilutive. These outstanding securities consisted of the following (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Stock options	1,368	2,011	1,367	2,011
RSUs and RSAs	181	1,040	1,197	1,040
	1,549	3,051	2,564	3,051