Net Income (Loss) per Share

9 Months Ended

Sep. 30, 2023

The computation of basic net income (loss) per share is based on the weighted-average number of our common shares outstanding. The computation of diluted net income (loss) per share is based on the weighted-average number of our common shares outstanding and potential dilutive common shares outstanding during the period as determined by using the treasury stock method.

The following table illustrates the determination of basic and diluted net income (loss) per share for each period presented (in thousands, except share and per share date):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income (loss)	$	35,461	$	(25,137)	$	2,859	$	(69,987)
Denominator:
Weighted‑average common shares outstanding, basic	33,281,287		31,298,052		32,942,958		31,273,612
Effect of dilutive securities	1,494,164		—		1,346,453		—
Weighted‑average common shares outstanding, diluted	34,775,451		31,298,052		34,289,411		31,273,612

Net income (loss) per share, basic	$	1.07	$	(0.80)	$	0.09	$	(2.24)
Net income (loss) per share, diluted	$	1.02	$	(0.80)	$	0.08	$	(2.24)

The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net income (loss) per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Unvested restricted common stock	11,299	445,445	12,198	445,445
Unvested shares from early exercises	—	67,737	—	67,737
Stock options to purchase common stock	3,480,965	5,002,730	3,609,307	5,002,730
	3,492,264	5,515,912	3,621,505	5,515,912