Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2021

Following the effectiveness of the amended and restated certificate of incorporation, the Class B Reclassification and the IPO, the Company has Class A common stock and Class B common stock outstanding. Because the only difference between the two classes of common stock are related to voting, transfer and conversion rights, the Company has not presented earnings per share under the two-class method, as earnings per share are the same for both Class A common stock and Class B common stock. The accompanying financial statements and related notes to the financial statements give retroactive effect to the stock split for all periods presented. See Note 11, “Shareholders’ Equity” for additional information.

The computation of basic net income (loss) per share (“EPS”) is based on the weighted-average number of shares that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common stock equivalents. Common stock equivalents consist of shares issuable upon the exercise of stock options and vesting of RSUs and PSUs.

The following table summarizes the computation of basic and diluted EPS for the three and nine months ended September 30, 2021 and 2020:


	Three months ended September 30,				Nine months ended September 30,
(in thousands,except share and per share data)	2021		2020		2021		2020
Numerator:
Net income (loss) available to common shareholders	$	11,636	$	11,456	$	(77,800)	$	20,979
Denominator:
Weighted-average common shares outstanding – basic	97,290,174		91,737,020		93,994,896		91,737,020
Effect of dilutive securities	12,135,837		—		—		—
Weighted-average common shares outstanding – diluted	109,426,011		91,737,020		93,994,896		91,737,020
Net income (loss) per common share:
Basic	$	0.12	$	0.12	$	(0.83)	$	0.23
Diluted	$	0.11	$	0.12	$	(0.83)	$	0.23

Since the Company was in a net loss position for the nine months ended September 30, 2021, diluted EPS is equal to basic EPS for that period as the inclusion of potential common stock equivalents would have been anti-dilutive. The Company excluded 12,309 and 23,607 potential common stock equivalents from the computation of diluted EPS for the three and nine months ended September 30, 2021, respectively, because the effect would have been anti-dilutive. In addition, the Company excluded 5,578,525 potential common stock equivalents from the computation of diluted EPS for the nine months ended September 30, 2021 since the Company was in a net loss position; however, these awards would have been dilutive if the Company was in a net income position.