Net Income Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Calculation of Basic and Diluted Net Income Per Share

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands, except per share data)
Net (loss) income per share:
Numerator—basic:
Net (loss) income attributable to Switch, Inc.—basic	$	(369)	$	5,206	$	15,633	$	9,087
Numerator—diluted:
Net (loss) income attributable to Switch, Inc.—basic	$	(369)	$	5,206	$	15,633	$	9,087
Effect of dilutive securities:
Shares of Class B and Class C common stock	—		—		—		10,806
Net (loss) income attributable to Switch, Inc.—diluted	$	(369)	$	5,206	$	15,633	$	19,893
Denominator—basic:
Weighted average shares outstanding—basic	136,292		108,690		131,067		102,703
Net (loss) income per share—basic	$	(0.00)	$	0.05	$	0.12	$	0.09
Denominator—diluted:
Weighted average shares outstanding—basic	136,292		108,690		131,067		102,703
Weighted average effect of dilutive securities:
Stock options	—		1,462		2,510		1,415
Restricted stock units	—		1,358		1,431		1,139
Dividend equivalent units	—		45		44		35
Restricted stock awards	—		10		39		42

Shares of Class B and Class C common stock	—		—		—		138,219
Weighted average shares outstanding—diluted	136,292		111,565		135,091		243,553
Net (loss) income per share—diluted	$	(0.00)	$	0.05	$	0.12	$	0.08

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 (loss) 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,
	2021	2020	2021	2020
	(in thousands)
Stock options(1)	8,641	1,117	—	1,117
Restricted stock units(1)	3,484	28	200	28
Dividend equivalent units(1)	41	—	—	—
Restricted stock awards(1)	71	—	6	—
Performance-vesting restricted stock units(1)	277	—	277	—
Shares of Class B and Class C common stock(2)	104,515	131,667	104,515	—

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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 (loss) 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.