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EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

EARNINGS PER SHARE

Earnings Per Share

6. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net income or loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Diluted earnings per share is computed by dividing the net income or loss by the weighted-average number of shares of common stock, plus potentially dilutive securities outstanding for the period, as determined in accordance with the treasury stock, if-converted, or contingently issuable accounting methods, depending on the nature of the security. For purposes of the diluted earnings per share calculation, stock options, restricted stock units (“RSUs”), performance share units (“PSUs”), and shares potentially issuable in connection with the employee stock purchase plan and convertible senior notes are considered potentially dilutive securities and included to the extent that their addition is not anti-dilutive.

The following table presents the computations of basic and dilutive earnings (loss) per common share:


	Years Ended December 31,
	2022			2021			2020
Numerator:
Net (loss) income	$	(25,002)		$	71,517		$	26,752
Adjustment for interest expense recognized on convertible senior notes:		—			4,675			—
Net (loss) income — diluted	$	(25,002)		$	76,192		$	26,752
Denominator:
Weighted-average shares outstanding — basic		33,829,495			34,936,817			34,407,959
Effect of dilutive securities:
Stock options		—			504,699			431,524
Restricted stock units		—			461,471			271,542
Performance share units		—			85,229			27,002
Employee stock purchase plan		—			1,198			567
Warrants		—			131,257			12,759
Convertible senior notes		—			4,925,134			—

Weighted average shares outstanding — diluted		33,829,495			41,045,805			35,151,353

(Loss) earnings per share — basic	$	(0.74)		$	2.05		$	0.78
(Loss) earnings per share — diluted	$	(0.74)		$	1.86		$	0.76

The Company has the option to settle the conversion obligation for its convertible senior notes due in 2026 in cash, shares or a combination of the two. The Company uses the if-converted method for the convertible senior notes.

The following table presents dilutive securities excluded from the calculation of diluted earnings per share:


	Years Ended December 31,
	2022		2021		2020
Stock options	1,683,805		1,202,403		2,294,961
Restricted stock units	2,047,571		22,605		4,809
Performance share units	447,770		242,714		211,618
Convertible senior notes	4,925,134		—		4,925,134

For PSUs, these securities were excluded from the calculation of diluted earnings per share as the performance-based or market-based vesting conditions were not met as of the end of the reporting period. All other securities presented in the table above were excluded from the calculation of diluted earnings per share as their inclusion would have had an antidilutive effect.