Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2024

Disclosure Text Block

Net Income (loss) Per Share

3. Net Income (Loss) Per Share

The following table sets forth the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts):

	Three Months Ended
	March 31,
	2024(1)		2023
Numerator:
Net income (loss)	$	(4,162)	$	45,714
Add back interest expense, net of tax benefit, on assumed conversion of 2024 Convertible Notes		—		447
Add back interest expense, net of tax benefit, on assumed conversion of 2026 Convertible Notes		—		668
Numerator used in computing net income (loss) per share — diluted	$	(4,162)	$	46,829
Denominator:
Weighted average number of common shares outstanding used in computing net income (loss) per share — basic		157,700		154,452
Effect of dilutive securities:
Stock options		—		250
Time-based restricted stock units		—		1,234
Performance-based restricted stock units		—		736
Restricted stock		—		126
Shares subject to issuance under Employee Stock Purchase Plan		—		14
2024 Convertible Notes assumed conversion		—		14,934
2026 Convertible Notes assumed conversion		—		14,934
Dilutive potential common shares
Weighted average number of common shares outstanding used in computing net income (loss) per share — diluted		157,700		186,680
Net income (loss) per share — basic	$	(0.03)	$	0.30
Net income (loss) per share — diluted	$	(0.03)	$	0.25

(1) During the three months ended March 31, 2024, the Company was in a net loss position and therefore did not differentiate basic and diluted earnings per share.

The outstanding securities set forth in the following table have been excluded from the computation of diluted weighted average shares outstanding, as applicable, as their effect would be anti-dilutive (in thousands):

	Three Months Ended
	March 31,
	2024	2023
Stock options	3,074	5,046
Time-based restricted stock units	860	570
Performance-based restricted stock units	—	76
Note hedge warrants	—	8,318
Total	3,934	14,010

There was no dilutive impact of the 2024 Convertible Notes (as defined below) for the three months ended March 31, 2024 because the Company had elected prior to the beginning of the period to settle the conversion of 2024 Convertible Notes, if any, with a combination settlement of a cash payment equal to the principal value of converted notes and shares of Class A Common Stock equal to the conversion value in excess of the principal value, if any (Note 8). Accordingly, interest expense was not removed from the numerator and there was no calculated spread added to the denominator because the average market price of the Company’s Class A Common Stock during the period was not in excess of the conversion price.