NET (LOSS) INCOME PER SHARE

12 Months Ended

Dec. 31, 2023

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, net of tax, and any other income statement impact associated with the 2027 Convertible Notes, net of tax, is added back to net (loss) income used in the diluted earnings per share calculation. Additionally, the diluted shares used in the diluted earnings per share calculation includes the potential dilution effect of the convertible debt if converted into the Company’s common stock. For the year ended December 31, 2022, the Company’s potentially dilutive stock-based awards and convertible debt were included in the computation of diluted net income per share. However, as the Company was in a net loss position for the year ended December 31, 2023, the Company’s potentially dilutive stock-based awards and convertible debt were not included in the computation of diluted net loss per share, because to do so would be anti-dilutive.

The following table reflects the calculation of basic and diluted (loss) income per common share for the years ended December 31, 2023 and 2022 (in thousands, except for per share amounts):


	Year ended December 31,
	2023		2022
Basic net (loss) income per share
Net (loss) income	$	(331,942)	$	109,625
Weighted-average common shares and warrants outstanding	71,031		47,004
Basic net (loss) income per share	$	(4.67)	$	2.33

Diluted net (loss) income per share
Net (loss) income	$	(331,942)	$	109,625
Add: Convertible debt interest expense and fair value adjustment, net of tax	—		1,560
Adjusted net (loss) income	(331,942)		111,185
Weighted-average common shares and share equivalents outstanding	71,031		47,004
Add: effect of dilutive stock-based awards and equivalents	—		1,530
Add: effect of dilutive convertible debt under if-converted method	—		6,135
Denominator for diluted (loss) income per share	71,031		54,669
Diluted net (loss) income per share	$	(4.67)	$	2.03

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


	Year ended December 31,
	2023	2022
Convertible notes	10,932	—
Stock-based awards and equivalents	7,474	836
Total potentially dilutive common shares	18,406	836