Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share

Earnings Per Share

6. Earnings Per Share

Basic earnings per share is calculated by dividing the net (loss) income by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Diluted earnings per share is computed by dividing the net (loss) income by the weighted-average number of shares of common stock, plus potentially dilutive securities outstanding for the period, as determined in accordance with the treasury stock, if-converted, or contingently issuable accounting methods, depending on the nature of the security. For purposes of the diluted earnings per share calculation, stock options, restricted stock units (“RSUs”), performance share units (“PSUs”),

and shares potentially issuable in connection with our employee stock purchase plan and convertible senior notes are considered potentially dilutive securities and included to the extent that their addition is not anti-dilutive.

The following table presents the computations of basic and dilutive earnings per common share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net (loss) income	$	(5,191)	$	72,843	$	(18,260)	$	88,505
Adjustment for interest expense recognized on convertible senior notes:		—		1,168		—		2,333
Net (loss) income - diluted	$	(5,191)	$	74,011	$	(18,260)	$	90,838
Denominator:
Weighted-average shares outstanding — basic		34,001,553		35,302,608		33,838,638		35,128,144
Effect of dilutive securities:
Stock options		—		580,329		—		624,602
Restricted stock units		—		302,737		—		384,908
Performance share units		—		—		—		—
Employee stock purchase plan		—		125		—		1,149
Warrants		—		175,920		—		187,812
Convertible senior notes		—		4,925,134		—		4,925,134
						—
Weighted average shares outstanding — diluted		34,001,553		41,286,853		33,838,638		41,251,749
(Loss) earnings per share — basic	$	(0.15)	$	2.06	$	(0.54)	$	2.52
(Loss) earnings per share — diluted	$	(0.15)	$	1.79	$	(0.54)	$	2.20

The Company has the option to settle the conversion obligation for its convertible senior notes due in 2026 in cash, shares or a combination of the two. The Company uses the if-converted method for the convertible senior notes.

The following table presents dilutive securities excluded from the calculation of diluted earnings per share:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Stock options	2,230,895	1,416,696	2,230,895	1,415,431
Restricted stock units	2,024,634	677,824	2,024,634	677,824
Performance share units	447,770	392,220	447,770	392,220
Employee stock purchase plan	—	—	—	—
Warrants	1,041,667	—	1,041,667	—
Convertible senior notes	4,925,134	—	4,925,134	—

For PSUs, these securities were excluded from the calculation of diluted earnings per share as the performance-based or market-based vesting conditions were not met as of the end of the reporting period. All other securities presented in the table above were excluded from the calculation of diluted earnings per share as their inclusion would have had an antidilutive effect.