Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Income Per Share

Net Income (Loss) Per Share

Basic 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. 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 (loss) per share calculations for the years ended December 31, 2023, 2022, and 2021 were as follows:

	Year Ended December 31,
	2023		2022		2021
	(In thousands, except per share data)
Net income (loss)	$	(20,371)	$	5,648	$	77,849
Weighted-average shares outstanding – basic	45,212		44,398		43,475
Effect of dilutive securities from stock award plans	—		1,019		2,136
Effect of convertible senior notes	—		474		2,044
Effect of warrants	—		—		288
Weighted-average shares outstanding – diluted	45,212		45,891		47,943
Net income (loss) per share – basic	$	(0.45)	$	0.13	$	1.79
Net income (loss) per share – diluted	$	(0.45)	$	0.12	$	1.62
Anti-dilutive weighted-average shares related to stock award plans	3,368		725		156
Anti-dilutive weighted-average shares related to convertible senior notes and warrants	11,816		5,908		—