Net Income Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per ShareBasic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of shares outstanding during the period. In periods of net loss, all potential common shares are anti-dilutive, so diluted net loss per share equals the basic net loss per share. In periods of net income, diluted net income per share is computed by dividing net income for the period by the basic weighted-average number of shares plus any dilutive potential common stock outstanding during the period, using the treasury stock method for share-based awards and warrants, and the if-converted method for convertible senior notes. Potential common stock includes the effect of outstanding dilutive stock options, restricted stock awards, and restricted stock units, as well as shares the Company could be obligated to issue from its convertible senior notes and warrants, as described in Note 11, Convertible Senior Notes. For periods prior to the adoption of ASU 2020-06 on January 1, 2022, the Company applied the treasury stock method to calculate the dilutive impact of the convertible senior notes. Upon adoption of ASU 2020-06, effective January 1, 2022, the Company applies the if-converted method for calculating the dilutive impact of the convertible senior notes. Refer to Note 1, Organization and Summary of Significant Accounting Policies, for further information. Following the Company’s irrevocable election in December 2021 to settle the principal portion of the convertible senior notes in cash with any conversion consideration in excess of the principal portion in cash and/or shares of the Company’s common stock at the Company’s option upon conversion, only the amounts expected to be settled in excess of the principal portion are considered dilutive in calculating earnings per share under the if-converted method. Any anti-dilutive weighted-average dilutive shares related to stock award plans, convertible senior notes, and warrants are excluded from the computation of the diluted net income per share.The basic and diluted net income per share calculations for the years ended December 31, 2022, 2021, and 2020 were as follows:

	Year Ended December 31,
	2022		2021		2020
	(In thousands, except per share data)
Net income	$	5,648	$	77,849	$	32,194
Weighted-average shares outstanding – basic	44,398		43,475		42,583
Effect of dilutive securities from stock award plans	1,019		2,136		1,160
Effect of convertible senior notes	474		2,044		—
Effect of warrants	—		288		—
Weighted-average shares outstanding – diluted	45,891		47,943		43,743
Net income per share – basic	$	0.13	$	1.79	$	0.76
Net income per share – diluted	$	0.12	$	1.62	$	0.74
Anti-dilutive weighted-average shares related to stock award plans	725		156		2,054
Anti-dilutive weighted-average shares related to convertible senior notes and warrants	5,908		—		11,816