NET (LOSS) INCOME PER SHARE

6 Months Ended

Jun. 30, 2024

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 equivalents 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. The Company’s potentially dilutive stock-based awards and convertible debt were not included in the computation of diluted net loss per share for the three and six months ended June 30, 2024, because to do so would be anti-dilutive. For the three months ended June 30, 2023, the Company’s potentially dilutive convertible debt was included in the computation of diluted net income per share. However, for the six months ended June 30, 2023, the Company’s potentially dilutive convertible debt was not included in the computation of diluted net income 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 three and six months ended June 30, 2024 and 2023 (in thousands, except for per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Basic net (loss) income per share
Net (loss) income	$	(3,674)	$	8,470	$	(8,184)	$	4,986
Weighted-average common shares outstanding	95,240		56,142		95,110		53,588
Basic net (loss) income per share	$	(0.04)	$	0.15	$	(0.09)	$	0.09

Diluted net (loss) income per share
Net (loss) income	$	(3,674)	$	8,470	$	(8,184)	$	4,986

Add: Convertible debt interest expense, net of tax	—		563		—		—
Adjusted net (loss) income	(3,674)		9,033		(8,184)		4,986
Weighted-average common shares and share equivalents outstanding	95,240		56,142		95,110		53,588
Add: effect of dilutive stock-based awards and equivalents	—		4,234		—		4,422
Add: effect of dilutive convertible debt under if-converted method	—		9,768		—		—
Denominator for diluted net (loss) income per share	95,240		70,144		95,110		58,010
Diluted net (loss) income per share	$	(0.04)	$	0.13	$	(0.09)	$	0.09

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 and six months ended June 30, 2024 and 2023 (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Convertible notes	9,768	—	9,768	12,116
Stock-based awards and equivalents	9,624	721	9,023	548
Total potentially dilutive common shares	19,392	721	18,791	12,664