Earnings (Loss) per Common Share

6 Months Ended

Jun. 30, 2022

3. Earnings (Loss) per Common Share

Basic earnings (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock and pre-funded warrants outstanding during the period, without consideration of common share equivalents. Diluted earnings (loss) per common share is computed by dividing net income (loss) by the weighted-average number of shares of common stock, pre-funded warrants and common share equivalents outstanding for the period. The pre-funded warrants are included in the computation of basic and diluted earnings (loss) per common share as the exercise price is negligible and the pre-funded warrants are fully vested and exercisable. Common share equivalents are only included in the calculation of diluted earnings (loss) per common share when their effect is dilutive.

The following table is a reconciliation of the share amounts used in computing earnings per share:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands)				(in thousands)
Weighted average shares outstanding - Basic		101,601		92,152		101,166		91,806
Effect of dilutive securities		265		—		—		—
Weighted average shares outstanding - Diluted		101,866		92,152		101,166		91,806

Potential dilutive securities, which include unvested restricted stock units (“RSUs”), unvested performance-based RSUs and performance-based options to purchase common stock for which established performance criteria have been achieved as of the end of the respective periods, vested and unvested options to purchase common stock and shares to be issued under our employee stock purchase plan (“ESPP”), have been excluded from the computation of diluted earnings (loss) per share if the effect is antidilutive. Therefore, the denominator used to calculate both basic and diluted earnings (loss) per common share is the same in all periods for which we record a net loss.

The following table represents the potential common shares issuable pursuant to outstanding securities as of the related period end dates that were excluded from the computation of diluted earnings (loss) per common share, as their inclusion would have an antidilutive effect:



	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Unvested RSUs		7,483,684		4,997,674		7,483,684		4,997,674
Vested and unvested options		11,364,001		9,438,653		11,490,929		9,438,653
ESPP share purchase rights		—		23,929		55,598		23,929
Total		18,847,685		14,460,256		19,030,211		14,460,256