Quarterly report pursuant to Section 13 or 15(d)

Net Income Per Share

v3.23.2
Net Income Per Share
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
Basic earnings per share, or EPS, is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period and the weighted-average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, common stock options, restricted stock units and restricted stock awards are considered to be common stock equivalents and are only included in the calculation of diluted EPS when their effect is dilutive. In periods in which the Company has a net loss, dilutive common stock equivalents are excluded from the calculation of diluted EPS.
The table below presents the computation of basic and diluted EPS:
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
(in thousands, except per share amounts)
Numerator:
Net income (loss) $ (4,351) $ 31,966  $ 5,182  $ 65,552 
Denominator:
Weighted average common shares outstanding—basic 80,446  77,858  79,961  77,527 
Dilutive common stock equivalents —  2,421  1,559  2,935 
Weighted average common shares outstanding—diluted 80,446  80,279  81,520  80,462 
Net income (loss) per share:
Basic $ (0.05) $ 0.41  $ 0.06  $ 0.85 
Diluted $ (0.05) $ 0.40  $ 0.06  $ 0.81 
For the three months ended June 30, 2023 and 2022, the Company excluded common stock equivalents for outstanding stock-based awards, which represented potentially dilutive securities of 5.4 million and 1.0 million, respectively, from the calculation of diluted net income (loss) per share due to their anti-dilutive nature.
For the six months ended June 30, 2023 and 2022, the Company excluded common stock equivalents for outstanding stock-based awards, which represented potentially dilutive securities of 3.2 million and 1.0 million, respectively, from the calculation of diluted net income (loss) per share due to their anti-dilutive nature.