Net Income Per Share

3 Months Ended

Mar. 31, 2023

Basic net (loss) income per share attributable to common stockholders is computed using the weighted average number of shares of common stock outstanding for the period, excluding dilutive securities, stock options, RSUs, and ESPP shares. Diluted net (loss) income per share attributable to common stockholders is based upon the weighted average number of shares of common stock outstanding for the period and potentially dilutive common shares, including the effect of dilutive securities, stock options, RSUs and ESPP shares under the treasury stock method.

The Company applies the if-converted method for convertible instruments when calculating diluted earnings per share. Under the if-converted method, shares related to convertible senior notes, to the extent dilutive, are assumed to be converted into common stock at the beginning of the period.

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


	Three Months Ended March 31,
	2023			2022
Numerator:
Net (loss) income	$	(1,959	)	$	11,528
Interest expense related to Convertible Notes, net of tax		—			144
Numerator for diluted (loss) income per share	$	(1,959	)	$	11,672
Denominator:
Denominator for basic (loss) income per share— weighted average shares		80,191			79,462
Effect of dilutive securities, stock options, RSUs and ESPP shares		—			7,799
Denominator for dilutive (loss) income per share		80,191			87,261
Net (loss) income per share attributable to common stockholders, basic	$	(0.02	)	$	0.15
Net (loss) income per share attributable to common stockholders, diluted	$	(0.02	)	$	0.13

Anti-dilutive shares excluded from the computation of diluted net loss per share were as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Stock options and ESPP shares		2,883		—
Convertible shares		4,967		—
Total shares excluded from calculation		7,850		—