NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2021

Potential common shares are excluded from the diluted net income (loss) per share computation to the extent that they would be antidilutive. Because the Company reported a net loss for the year ended December 31, 2019, no potentially dilutive securities were included in the computation of diluted net loss per share for that period. As discussed in Note 11, Debt, the Company has the option to pay cash for the aggregate principal amount due upon the conversion of its 2022 Notes and 2025 Notes. Since it is the Company’s intent to settle the principal amount of its 2022 Notes and 2025 Notes in cash, the potentially dilutive effect of such notes on net income (loss) per share is computed under the treasury stock method. As discussed in Note 3, Recent Accounting Pronouncements, ASU 2020-06 will require the Company to use the if-converted method upon adoption; this new accounting pronouncement was not adopted as of December 31, 2021.

The following table sets forth the computation of basic and diluted net income (loss) per common share for the years ended December 31, 2021, 2020 and 2019 (in thousands, except per share amounts):


	Year Ended December 31,
	2021		2020		2019
Numerator:
Net income (loss)	$	41,980	$	145,523	$	(11,016)





Denominator:
Weighted average shares of common stock outstanding—basic	44,262		42,671		41,513
Computation of diluted securities:
Dilutive effect of stock options	1,030		783		—
Dilutive effect of RSUs	298		227		—
Dilutive effect of conversion premium on the 2022 Notes	38		—		—
Dilutive effect of ESPP purchase options	2		1		—
Weighted average shares of common stock outstanding—diluted	45,630		43,682		41,513
Net income (loss) per share:
Basic net income (loss) per common share	$	0.95	$	3.41	$	(0.27)
Diluted net income (loss) per common share	$	0.92	$	3.33	$	(0.27)

The following table summarizes the outstanding stock options, RSUs and ESPP purchase options that were excluded from the diluted net income (loss) per common share calculation because the effect of including these potential shares were antidilutive in the periods presented (in thousands):


	Year Ended December 31,
	2021	2020	2019
Weighted average number of stock options	2,141	4,237	6,404
Weighted average number of RSUs	116	99	606


Weighted average ESPP purchase options	13	16	34
Total	2,270	4,352	7,044