Earnings (Loss) per Share

9 Months Ended

Sep. 30, 2022

Earnings (Loss) per Share

Earnings (Loss) per Share

12.         Earnings (Loss) per Share

The rights, including the liquidation and dividend rights, of the holders of Class A, Class B, Class A1 and Class B1 common shares are identical, except with respect to voting, transferability and conversion (see the Notes to Consolidated Financial Statements to our Form 10-K). As the liquidation and dividend rights are identical, income and losses are allocated on a proportionate basis, and the resulting net earnings (loss) per share (EPS) attributed to common shareholders will, therefore, be the same for the Class A, A1, B and B1 common shares on an individual or combined basis.

Basic and diluted EPS attributable to common shareholders was calculated as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Numerator:
Net income (loss) attributable to common shareholders	$	224,093	$	(30,544)	$	178,902	$	(121,591)
Denominator:
Weighted-average basic shares outstanding		69,445,071		68,662,673		69,305,755		68,444,061
Effect of dilutive securities
Options to purchase common shares		937,492		—		906,866		—
Unvested RSUs		169,455		—		73,823		—
Weighted-average diluted shares		70,552,018		68,662,673		70,286,444		68,444,061
Basic EPS	$	3.23	$	(0.44)	$	2.58	$	(1.78)
Diluted EPS	$	3.18	$	(0.44)	$	2.55	$	(1.78)

The Company’s unvested RSUs have been excluded from the computation of basic net loss per share attributable to common shareholders.

Diluted earnings per share includes the assumed exercise of dilutive options and the assumed issuance of unvested RSUs and performance-based awards for which the performance condition has been met as of the date of determination, using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options and the average unrecognized compensation expense for unvested share-based compensation awards, would be used to purchase the Company’s common stock at the average market price during the period.

For the three and nine months ended September 30, 2021 the Company’s potentially dilutive securities, which include options and unvested RSUs, have been excluded from the computation of diluted net loss per share attributable to common shareholders for the periods indicated as the effect would be to reduce the EPS attributable to common shareholders. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted EPS attributable to common shareholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted EPS attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Options to purchase common shares		8,472,937		9,556,481		8,880,055		9,556,481
Unvested RSUs		837,457		801,154		1,547,383		801,154
		9,310,394		10,357,635		10,427,438		10,357,635