Net Income Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Calculation of Basic and Diluted Net Income Per Share

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands, except per share data)
Net income per share:
Numerator—basic:
Net income attributable to Switch, Inc.—basic	$	5,206	$	2,947	$	9,087	$	4,869
Numerator—diluted:
Net income attributable to Switch, Inc.—basic	$	5,206	$	2,947	$	9,087	$	4,869
Effect of dilutive securities:
Shares of Class B and Class C common stock	—		5,492		10,806		10,590
Net income attributable to Switch, Inc.—diluted	$	5,206	$	8,439	$	19,893	$	15,459
Denominator—basic:
Weighted average shares outstanding—basic	108,690		84,135		102,703		72,566
Net income per share—basic	$	0.05	$	0.04	$	0.09	$	0.07
Denominator—diluted:
Weighted average shares outstanding—basic	108,690		84,135		102,703		72,566
Weighted average effect of dilutive securities:
Stock options	1,462		1,050		1,415		572
Restricted stock units	1,358		1,027		1,139		652
Dividend equivalent units	45		24		35		21
Restricted stock awards	10		25		42		33
Shares of Class B and Class C common stock	—		160,881		138,219		173,349
Weighted average shares outstanding—diluted	111,565		247,142		243,553		247,193
Net income per share—diluted	$	0.05	$	0.03	$	0.08	$	0.06

Potentially Dilutive Securities Excluded from the Computation of Diluted Net Income Per Share

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 September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	(in thousands)
Stock options(1)	1,117	5,040	1,117	5,040
Restricted stock units(1)	28	13	28	13

Shares of Class B and Class C common stock(2)	131,667	—	—	—

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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.