Quarterly report pursuant to Section 13 or 15(d)

Net Income Per Share

v3.23.3
Net Income Per Share
 9 Months Ended
Sep. 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 September 30, Nine Months Ended September 30,
2023 2022 2023 2022
(in thousands, except per share amounts)
Numerator:
Net income (loss) $ (39,829) $ 28,408  $ (34,647) $ 93,960 
Denominator:
Weighted average common shares outstanding—basic 81,249  78,436  80,395  77,833 
Dilutive common stock equivalents —  1,624  —  2,498 
Weighted average common shares outstanding—diluted 81,249  80,060  80,395  80,331 
Net income (loss) per share:
Basic $ (0.49) $ 0.36  $ (0.43) $ 1.21 
Diluted $ (0.49) $ 0.35  $ (0.43) $ 1.17 
For the three months ended September 30, 2023 and 2022, the Company excluded common stock equivalents for outstanding stock-based awards, which represented potentially dilutive securities of 4.9 million and 2.5 million, respectively, from the calculation of diluted net income (loss) per share due to their anti-dilutive nature.
For the nine months ended September 30, 2023 and 2022, the Company excluded common stock equivalents for outstanding stock-based awards, which represented potentially dilutive securities of 4.8 million and 1.5 million, respectively, from the calculation of diluted net income (loss) per share due to their anti-dilutive nature.