Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2025

Basic and diluted net income (loss) per share for the three months ended March 31, 2025 and 2024 were calculated as follows (in thousands, except per share amounts):


	Three Months Ended March 31,
	2025		2024
Numerator:
Net income (loss)	$	32	$	(35,379)
Denominator:
Weighted average shares of common stock outstanding: basic	208,882		206,064
Net income (loss) per common share: basic	$	0.00	$	(0.17)
Effect of dilutive securities:
Stock options to purchase common stock	4,401		—
Unvested restricted stock unit awards	1,961		—
Shares issuable under the employee stock purchase plan	17		—
Dilutive potential common shares	6,379		—
Weighted average shares of common stock outstanding: diluted	215,261		206,064
Net income (loss) per common share: diluted	$	0.00	$	(0.17)

The Company’s potentially dilutive securities include outstanding stock options, unvested restricted stock units and shares issuable under the employee stock purchase plan for the three months ended March 31, 2025 and 2024.

For the three months ended March 31, 2025, the dilutive effect of outstanding stock options, restricted stock unit awards, and shares issuable under the employee stock purchase plan was calculated using the treasury method, whereby all such awards are assumed to be exercised at the beginning of the period. The hypothetical proceeds from such exercises, including the average unrecognized stock compensation expense for outstanding stock options, restricted stock units and shares issuable under the employee stock purchase plan, were assumed to be used to purchase outstanding common stock at the average price during the period. The net share impact of dilutive securities was added to the weighted average basic common shares outstanding to calculate weighted average diluted shares outstanding.

For the three months ended March 31, 2024, during which the Company recorded a net loss, all potentially dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share, and thus they are considered “anti-dilutive.” For this period, the weighted average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share of common stock is the same.

The Company excluded the following potential common shares, presented based on amounts outstanding as of March 31, 2025 and March 31, 2024, from the computation of diluted net income (loss) per share attributable to common stockholders for the three months ended March 31, 2025 and 2024 because including them would have had an anti-dilutive effect:


	Three Months Ended March 31,
	2025	2024
Outstanding stock options	30,555	39,580
Unvested restricted stock unit awards	1,422	6,124
Total	31,977	45,704