NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2024

NET INCOME (LOSS) PER SHARE:

NET INCOME (LOSS) PER SHARE

8. NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period (excluding outstanding stock options, nonvested restricted stock units and shares subject to repurchase). Diluted net income (loss) per share is computed using the weighted average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be

anti-dilutive. 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 amount):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net income (loss)	$	2,206	$	(4,972)	$	3,518	$	2,218
Denominator:
Basic weighted average shares outstanding		38,710		38,187		38,542		37,930
Effect of dilutive stock options, unvested restricted stock units, and shares of common stock expected to be issued under employee stock purchase plan		395		—		486		1,047
Diluted weighted average shares outstanding		39,105		38,187		39,028		38,977
Net income (loss) per share:
Basic	$	0.06	$	(0.13)	$	0.09	$	0.06
Diluted	$	0.06	$	(0.13)	$	0.09	$	0.06

For the three months ended September 30, 2023, because the Company was in a loss position, diluted net loss per share is the same as basic net loss per share as the inclusion of the potential common shares would have been anti-dilutive.

The following table sets forth the potential shares of common stock that were not included in the diluted net income (loss) per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Outstanding options	—	23	—	—
Non-vested restricted stock units	1,078	1,391	740	223
Employee Stock Purchase Plan	—	38	—	—
Total	1,078	1,452	740	223