Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2021

NET INCOME (LOSS) PER SHARE

As of December 31, 2021, the Company’s convertible notes were potentially convertible into 4,167,232 shares of common stock. The Company used the if-converted method to calculate the potential dilutive effect of the conversion spread on diluted net income per share for the year ended December 31, 2021.

The denominator for diluted net income (loss) per share does not include any effect from the capped call transactions the Company entered into concurrently with the issuance of the convertible notes, as this effect would be anti-dilutive. In the event of conversion of a convertible note, shares delivered to the Company under the capped call will offset the dilutive effect of the shares that the Company would issue under the convertible notes.

For the years ended December 31, 2020 and 2019, basic loss per common share and diluted loss per common share are the same in each respective period, as the inclusion of any potentially issuable shares would be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss and the weighted average number of shares used in computing basic and diluted net loss per share (in thousands, except per share data):


	Year Ended December 31,
	2021		2020		2019
Numerator:
Net income (loss)	$	2,062	$	(23,877)	$	(12,348)
Denominator:
Weighted average shares of common stock outstanding used in computing net income (loss) per share, basic	17,891		16,691		14,096
Dilutive effect of incremental shares and share equivalents:
Options	68		—		—
RSUs	294		—		—
PSUs	104		—		—
ESPP	5		—		—
Weighted average shares of common stock outstanding used in computing net income (loss) per share, diluted	18,362		16,691		14,096
Net income (loss) per share:
Net income (loss) per share, basic	$	0.12	$	(1.43)	$	(0.88)
Net income (loss) per share, diluted	$	0.11	$	(1.43)	$	(0.88)

The following numbers of shares outstanding, prior to the application of the treasury stock method and the if-converted method, were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect (in thousands):


	Year Ended December 31,
	2021	2020	2019
Capped call	4,167	—	—
Convertible debt	4,167	—	—
Options to purchase common stock	166	244	417
Restricted stock units	32	724	559
Employee stock purchase plan shares	—	87	111
Performance stock units	120	68	178
Total	8,652	1,123	1,265