Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2021

15. Net income (loss) per share

Basic and diluted earnings per share are computed using the two-class method, which is an allocation of earnings between the holders of common stock and a company’s participating security holders. The Company’s unvested restricted stock awards are considered participating securities because they are legally issued at the grant date and holders have a non-forfeitable right to receive dividends.

Basic EPS is generally computed by dividing net income attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share is generally computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of restricted stock units and stock options are reflected in diluted net income per share by applying the treasury stock method.

The following table summarizes the calculation of basic and diluted net income (loss) per share of common stock:

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	(in thousands, except per share amounts)
Basic earnings per common share:
Net income (loss)	$	18,683		$	(87,808	)	$	(161,934	)	$	(120,683	)
Less: net income allocated to participating securities⁽¹⁾		(749	)		-			-			-
Net income attributable to common stockholders	$	17,934		$	(87,808	)	$	(161,934	)	$	(120,683	)
Weighted-average number of common shares - basic		179,899			12,232			149,683			11,526
Basic earnings per common share	$	0.10		$	(7.18	)	$	(1.08	)	$	(10.47	)

Diluted earnings per common share:
Net income (loss)	$	18,683		$	(87,808	)	$	(161,934	)	$	(120,683	)
Less: net income allocated to participating securities(1)		(749	)		-			-			-
Net income attributable to common stockholders	$	17,934		$	(87,808	)	$	(161,934	)	$	(120,683	)
Weighted-average number of common shares - basic		179,899			12,232			149,683			11,526
Effect of dilutive securities:
Stock options and restricted stock units		10,609			-			-			-
Weighted-average number of common shares - diluted		190,508			12,232			149,683			11,526
Diluted earnings per common share	$	0.09		$	(7.18	)	$	(1.08	)	$	(10.47	)

(1) Restricted stock awards granted to employees by the Company are considered participating securities.

The following securities were excluded from the computation of net income (loss) per diluted share of common stock for periods presented as their effect would have been anti-dilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands)
Convertible preferred stock		-		134,113		-		134,113
Unvested restricted common stock		-		13,743		7,213		13,743
Options to purchase common stock		1,553		8,154		16,442		8,154
Unvested RSUs		-		328		328		328
Total		1,553		156,338		23,983		156,338