Net Income Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Net Income Per ShareThe following table sets forth the calculation of basic and diluted net income per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands, except per share data)
Net income per share:
Numerator—basic:
Net income attributable to Switch, Inc.—basic	$	4,361	$	5,097	$	16,002	$	3,881
Numerator—diluted:
Net income attributable to Switch, Inc.—basic	$	4,361	$	5,097	$	16,002	$	3,881
Effect of dilutive securities:
Shares of Class B and Class C common stock	3,055		6,253		—		4,598
Net income attributable to Switch, Inc.—diluted	$	7,416	$	11,350	$	16,002	$	8,479
Denominator—basic:
Weighted average shares outstanding—basic	130,163		104,987		128,412		99,676
Net income per share—basic	$	0.03	$	0.05	$	0.12	$	0.04
Denominator—diluted:
Weighted average shares outstanding—basic	130,163		104,987		128,412		99,676
Weighted average effect of dilutive securities:
Stock options	2,453		1,615		1,963		1,392
Restricted stock units	1,455		1,224		1,180		1,030
Dividend equivalent units	43		30		44		30
Restricted stock awards	53		55		50		57
Performance-vesting restricted stock units	23		—		11		—
Shares of Class B and Class C common stock	111,337		136,005		—		141,437
Weighted average shares outstanding—diluted	245,527		243,916		131,660		243,622
Net income per share—diluted	$	0.03	$	0.05	$	0.12	$	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,
	2021	2020	2021	2020
	(in thousands)
Stock options(1)	—	1,117	—	1,117
Restricted stock awards(1)	65	—	65	—
Shares of Class B and Class C common stock(2)	—	—	110,638	—

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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.