Net Income (Loss) per Share

9 Months Ended

Sep. 30, 2019

Net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding. The Company has outstanding stock options, restricted stock units, options to purchase shares under its employee stock purchase plan, and convertible senior notes, which are considered in the calculation of diluted net income (loss) per share whenever doing so would be dilutive.

The following table sets forth the calculation of basic and diluted net income (loss) per share during the periods presented:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019			2018
Numerator
Net income (loss)	$	6,782	$	3,475	$	(73,023	)	$	(29,756	)
Denominator
Weighted average shares:
Basic	91,994,731		87,743,223		91,279,086			84,327,266
Dilutive shares from stock plans	5,176,539		6,899,240		—			—
Diluted	97,171,270		94,642,463		91,279,086			84,327,266
Net income (loss) per share
Net income (loss) per share - basic	$	0.07	$	0.04	$	(0.80	)	$	(0.35	)
Net income (loss) per share - diluted	$	0.07	$	0.04	$	(0.80	)	$	(0.35	)

The following outstanding shares of common stock equivalents as of September 30, 2019 and 2018 were excluded from the computation of the diluted net income (loss) per share for the periods presented because their effect would have been anti-dilutive:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Options to purchase common stock	—	—	8,102,171	10,150,522
Restricted stock units	1,744,366	238,668	4,536,677	2,081,173
Employee stock purchase plan shares	—	—	283,676	234,616
Total	1,744,366	238,668	12,922,524	12,466,311

There is no impact from the Notes on the Company's diluted net loss per share for the three and nine months ended September 30, 2019 because the Notes are accounted for based on the treasury stock method as the Company has the ability, and intent, to settle any conversions of the Notes solely in cash.