Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2020

Net Income (Loss) Per Share

Net Income (Loss) Per Share

3. Net Income (Loss) Per Share

We compute basic net income (loss) per common share by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration of common stock equivalents. Diluted net income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants, employee stock purchase plan (ESPP) and restricted stock units (RSUs). Potentially dilutive securities consisting of stock issuable under options, ESPP and RSUs are not included in the per common share calculation in periods when the inclusion of such shares would have an antidilutive effect.

Basic and diluted net income (loss) per common share is computed as follows (in thousands except share and per share data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	(in thousands, except share and per share data)
Numerator:
Net income (loss) attributable to common stockholders	$	(35,018)	$	(16,034)	$	(43,092)	$	64,012
Denominator:
Weighted-average common shares outstanding used in computing basic net income (loss)		57,059,610		56,399,255		57,003,162		56,351,377
Effect of dilutive securities		—		—		—		1,691,442
Weighted-average common shares outstanding used in computing diluted net income (loss)		57,059,610		56,399,255		57,003,162		58,042,819
Basic net income (loss) per common share	$	(0.61)	$	(0.28)	$	(0.76)	$	1.14
Diluted net income (loss) per common share	$	(0.61)	$	(0.28)	$	(0.76)	$	1.10

For the three and six months ended June 30, 2020, and the three months ended June 30, 2019, all outstanding potentially dilutive securities have been excluded from the calculation of diluted net loss per common share as the effect of including such securities would have been antidilutive. For the six months ended June 30, 2019, potentially dilutive securities consisting of 1,173,829 shares of stock awards are excluded from the calculation for the same period because the inclusion of such shares would have had an antidilutive effect.