Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2022

13. 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 net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted earnings per share is 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 earnings 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,
	2022			2021			2022			2021
	(in thousands, except per share amounts)
Basic earnings per common share:
Net income (loss)	$	(72,465	)	$	18,683		$	(103,913	)	$	(161,934	)
Less: net income allocated to participating securities⁽¹⁾		-			(749	)		-			-
Net income (loss) attributable to common stockholders	$	(72,465	)	$	17,934		$	(103,913	)	$	(161,934	)
Weighted-average number of common shares - basic		187,626			179,899			186,801			149,683
Basic earnings (loss) per common share	$	(0.39	)	$	0.10		$	(0.56	)	$	(1.08	)

Diluted earnings per common share:
Net income (loss)	$	(72,465	)	$	18,683		$	(103,913	)	$	(161,934	)
Less: net income allocated to participating securities⁽¹⁾		-			(749	)		-			-
Net income (loss) attributable to common stockholders	$	(72,465	)	$	17,934		$	(103,913	)	$	(161,934	)
Weighted-average number of common shares - basic		187,626			179,899			186,801			149,683
Effect of dilutive securities:
Stock options and restricted stock units		-			10,609			-			-
Weighted-average number of common shares - diluted		187,626			190,508			186,801			149,683
Diluted earnings (loss) per common share	$	(0.39	)	$	0.09		$	(0.56	)	$	(1.08	)

(1)

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

The following securities were excluded from the calculation 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,
	2022		2021		2022		2021
	(in thousands)
Options to purchase common stock		25,616		1,553		25,616		16,442
Unvested restricted common stock		1,706		-		1,706		7,213
Unvested RSUs		911		-		911		328
Total		28,233		1,553		28,233		23,983