Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

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 March 31,
	2022		2021
	(in thousands, except per share data)
Net income per share:
Numerator—basic:
Net income attributable to Switch, Inc.—basic	$	12,793	$	11,641
Numerator—diluted:
Net income attributable to Switch, Inc.—diluted	$	12,793	$	11,641
Denominator—basic:
Weighted average shares outstanding—basic	147,745		126,641
Net income per share—basic	$	0.09	$	0.09
Denominator—diluted:
Weighted average shares outstanding—basic	147,745		126,641
Weighted average effect of dilutive securities:
Stock options	4,173		1,471
Restricted stock units	1,268		904
Dividend equivalent units	26		46
Restricted stock awards	52		48
Weighted average shares outstanding—diluted	153,265		129,110
Net income per share—diluted	$	0.08	$	0.09

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 March 31,
	2022	2021
	(in thousands)
Stock options(1)	—	5,762
Restricted stock units(1)	577	12
Performance-vesting restricted stock units(1)	498	277
Shares of Class B and Class C common stock(2)	95,773	113,915

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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.