Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2021

Basic earnings (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the earnings by the weighted-average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of incremental common shares issuable upon exercise of stock options, employee stock purchases, restricted stock and restricted stock units and shares issuable upon the conversion of convertible notes. The dilutive effect of outstanding shares is reflected in diluted earnings per share by application of the treasury stock method. This method includes consideration of the amounts to be paid by the employees and the amount of unrecognized stock-based compensation related to future services. No potential dilutive common shares are included in the computation of any diluted per share amount when a net loss is reported.

The following table sets forth the computation of basic and diluted net income (loss) per share:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands, except per share amounts)	2021		2020 (As Restated)		2021		2020 (As Restated)
Net income (loss) per share:
Numerator:
Net income (loss)	$	3,676	$	(12,737)	$	12,229	$	(28,416)
Denominator:
Weighted-average shares outstanding - basic	108,989		113,828		111,103		113,437
Effect of potential dilutive common shares	4,672		—		3,851		—
Weighted-average shares outstanding - diluted	113,661		113,828		114,954		113,437
Basic net income (loss) per share	$	0.03	$	(0.11)	$	0.11	$	(0.25)
Diluted net income (loss) per share	$	0.03	$	(0.11)	$	0.11	$	(0.25)

For the three and nine months ended September 30, 2020, an additional 2.0 million and 2.2 million shares, respectively, were excluded from the weighted-average dilutive shares because there was a net loss position for the periods. During the three and nine months ended September 30, 2021, the Company’s stock price exceeded the 2023 Notes' conversion price of $18.93 per share, therefore approximately 1.8 million and 1.0 million shares for the three and nine months ended September 30, 2021, respectively, were included in the weighted-average dilutive shares. Under the treasury stock method, the cumulative dilutive effect of the 2023 Notes would be approximately 9.1 million shares. Refer to Note 10, “Convertible Notes.”