NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2022

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,
		2022	2021
Denominator:
Weighted-average shares outstanding, basic		33,280	31,459
Shares related to outstanding options, unvested RSUs, RSAs, PSUs and ESPP		228	310
Weighted average shares outstanding, diluted		33,508	31,769

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 years ended December 31, 2022, and 2021, we had stock options, RSUs, PSUs 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 per share because their effect would have been anti-dilutive. These outstanding securities consisted of the following (in thousands):


	Years Ended December 31,
		2022	2021
Stock options		184	225
Restricted stock units, restricted stock awards and market condition-based restricted stock units		25	—
Total		209	225