Net Income Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

The following table sets forth the calculation of basic and diluted net income per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(in thousands, except per share data)
Net income per share:
Numerator—basic:
Net income attributable to Switch, Inc.—basic	$	5,097	$	1,189	$	3,881	$	1,922
Numerator—diluted:
Net income attributable to Switch, Inc.—basic	$	5,097	$	1,189	$	3,881	$	1,922
Effect of dilutive securities:
Shares of Class B and Class C common stock	6,253		—		4,598		5,098
Net income attributable to Switch, Inc.—diluted	$	11,350	$	1,189	$	8,479	$	7,020
Denominator—basic:
Weighted average shares outstanding—basic	104,987		77,714		99,676		66,686
Net income per share—basic	$	0.05	$	0.02	$	0.04	$	0.03
Denominator—diluted:
Weighted average shares outstanding—basic	104,987		77,714		99,676		66,686
Weighted average effect of dilutive securities:
Stock options	1,615		627		1,392		334
Restricted stock units	1,224		618		1,030		464
Dividend equivalent units	30		22		30		20
Restricted stock awards	55		40		57		37
Shares of Class B and Class C common stock	136,005		—		141,437		179,686
Weighted average shares outstanding—diluted	243,916		79,021		243,622		247,227
Net income per share—diluted	$	0.05	$	0.02	$	0.03	$	0.03

Shares of Class B and Class C common stock do not share in the earnings or losses of Switch, Inc. and are therefore not participating securities. As such, separate calculations of basic and diluted net income per share for each of Class B and Class C common stock under the two-class method have not been presented.

The following table presents potentially dilutive securities excluded from the computation of diluted net income per share for the periods presented because their effect would have been anti-dilutive.

	Three Months Ended June 30,		Six Months Ended June 30,
	2020	2019	2020	2019
	(in thousands)
Stock options(1)	1,117	6,288	1,117	6,288
Restricted stock units(1)	—	1,518	—	1,518
Restricted stock awards(1)	—	80	—	80
Shares of Class B and Class C common stock(2)	—	167,815	—	—

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(1)  Represents the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce this amount if they had a dilutive effect and were included in the computation of diluted net income per share.

(2)  Shares of Class B and Class C common stock at the end of the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method.