NET INCOME PER SHARE

3 Months Ended

Mar. 31, 2023

NET (LOSS) INCOME PER SHARE

Basic net (loss) income per share is calculated by dividing the net (loss) income by the weighted-average number of shares of common stock outstanding during the period.

Diluted net (loss) income per share is calculated by dividing the net (loss) income by the weighted-average number of shares of common stock outstanding during the period, plus potentially dilutive common shares, consisting of stock-based awards and equivalents, and convertible debt. For purposes of this calculation, stock-based awards and convertible debt are considered to be potential common shares and are only included in the calculation of diluted net (loss) income per share when their effect is dilutive. The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock-based awards and equivalents. The Company uses the if-converted method to compute diluted earnings per share with respect to its convertible debt. Under the if-converted method, the Company assumes any convertible debt outstanding was converted at the beginning of each period presented when the effect is dilutive. As a result, interest expense and any other income statement impact associated with the 2027 Convertible Notes, net of tax, is added back to net income used in the diluted earnings per share calculation. As the Company was in a net loss position for the three months ended March 31, 2023, the Company’s potentially dilutive stock-based awards and convertible debt were not included in the computation of diluted net (loss) income per share, because to do so would be anti-dilutive.

The following table reflects the calculation of basic and diluted earnings per common share for the three months ended March 31, 2023 and 2022 (in thousands, except for per share amounts):


	Three Months Ended March 31,
	2023		2022
Basic net (loss) income per share
Net (loss) income	$	(3,484)	$	9,064
Weighted-average common shares outstanding	51,005		45,204
Basic net (loss) income per share	$	(0.07)	$	0.20

Diluted net income per share
Net (loss) income	$	(3,484)	$	9,064


Weighted-average common shares and share equivalents outstanding	51,005		45,204
Add: effect of dilutive stock-based awards and equivalents	—		923

Denominator for diluted net (loss) income per share	51,005		46,127
Diluted net (loss) income per share	$	(0.07)	$	0.20

The following table reflects outstanding potentially dilutive common shares that are not included in the computation of diluted net (loss) income per share, because to do so would be anti-dilutive, for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023	2022
Convertible notes	14,489	—
Stock-based awards and equivalents	8,271	1,215
Total potentially dilutive common shares	22,760	1,215