NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2021

NET INCOME PER SHARE

Basic net income per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income 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 per share (in thousands, except per share amounts):


	For the Year Ended December 31,
	2021	2020

Denominator:
Weighted-average shares outstanding, basic	31,459	28,117
Shares related to outstanding options, unvested RSUs, RSAs, PSUs and ESPP	310	360
Weighted average shares outstanding, diluted	31,769	28,477

We include the underlying market condition stock awards 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 years ended December 31, 2021 and 2020, we had 0.2 million and 1.2 million stock options outstanding, respectively, 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.