Net Income (Loss) per Share

9 Months Ended

Sep. 30, 2021

Basic and diluted net income (loss) per share was calculated as follows (in thousands, except per share data):


	For the three months ended September 30,				For the nine months ended September 30,
	2021		2020		2021		2020
Numerator:
Net income (loss)	$	38,427	$	(14,434)	$	12,391	$	(2,050)
Denominator:
Weighted-average shares used to compute net income (loss) per share—basic	51,416		51,190		51,315		51,161
Dilutive restrictive stock awards (1)	169		—		109		—
Weighted-average shares used to compute net income (loss) per share—diluted	51,585		51,190		51,424		51,161
Net income (loss) per share—basic	$	0.75	$	(0.28)	$	0.24	$	(0.04)
Net income (loss) per share—diluted	$	0.74	$	(0.28)	$	0.24	$	(0.04)

(1) In periods of net loss, the number of shares used to calculate diluted earnings per share is the same as basic earnings per

share; therefore, the effect of dilutive securities is zero for such periods.

On February 16, 2021, the Company awarded 398,945 restricted stock unit awards under the Company's 2017 Equity Incentive Plan (the "2017 Equity Plan"). These awards have certain service-based, performance-based and market-based vesting conditions, as applicable. The service-based awards vest over a period of three years and the performance-based and market-based awards are based on the Company's performance in each of the three years.

On April 27, 2021, the Company awarded 31,984 restricted stock unit awards under the Company's 2017 Equity Plan.

These awards have service-based vesting conditions and vest over a period of three years.

As of September 30, 2021, there were 317,915 restricted stock unit awards for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share.

As of September 30, 2021, there were 521,916 restricted stock unit awards for which the performance-based and market-based vesting conditions were not met as of the measurement date and, as such, these awards were excluded from basic and diluted earnings per share. Based on the Company's closing share price on September 30, 2021, there were 87,209 restricted stock unit awards classified as a liability.

As of September 30, 2021, there were 6,219 restricted stock unit awards granted under the Company's 2016 Equity Incentive Plan (the "2016 Equity Plan") to certain directors and employees, for which the service-based vesting conditions for these awards were not met as of the measurement date. As such, these awards were excluded from basic earnings per share.

As of September 30, 2021, there were 13,157 shares of its common stock contingently issuable upon the settlement of a vested restricted stock unit award under the 2017 Equity Plan. The settlement date for these awards is the earlier of a change in control as described in the 2016 Equity Plan or 2017 Equity Plan, as applicable, or five years from the grant date. These awards are vested and, as such, have been included in the weighted average shares used to compute basic and diluted net income (loss) per share.

During the second quarter of 2021, certain employees and directors reached retirement eligibility, which resulted in incremental stock compensation expense of $4.1 million that is included in selling, general and administrative expenses within the Condensed Statements of Operations.