Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2022

ARNINGS (LOSS) PER SHARE

Basic EPS and Diluted EPS attributable to common stockholders is calculated in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to twenty votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock.

As the economic rights of Class A and Class B common stock are identical, undistributed earnings are allocated on a proportionate basis and presented on a combined basis. The following table sets forth the computation of Basic EPS

and Diluted EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding for the years ended December 31, 2022, 2021, and 2020 (in thousands, except share and per share amounts).


	Year ended December 31,
	2022		2021		2020
Numerator:
Net income (loss)	$	21,186	$	(9,556)	$	49,758
Denominator:
Weighted-average shares—basic	165,268,185		159,177,713		153,327,308
Effect of dilutive stock options	20,362,453		—		10,004,040
Effect of dilutive restricted stock units	1,916,835		—		—
Weighted-average shares—diluted	187,547,474		159,177,713		163,331,348
Earnings (loss) per share:
Basic earnings (loss) per share	$	0.13	$	(0.06)	$	0.32
Effect of dilutive stock options and restricted stock units	(0.02)		—		(0.02)
Diluted earnings (loss) per share	$	0.11	$	(0.06)	$	0.30

The Company excluded the following weighted average common equivalent shares from the computation of Diluted EPS for the years ended December 31, 2022, 2021, and 2020 because including them would have had an anti-dilutive effect:


	Year ended December 31,
	2022	2021	2020
Stock options to purchase common stock	5,845,057	40,164,214	31,485,366
Restricted stock units	1,078,486	4,316,091	5,410,440