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Earnings Per Share

3 Months Ended

Mar. 31, 2023

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 Company’s 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 per common share:


	Three Months Ended March 31,
	2023			2022
Numerator:
Net loss	$	(17,426)		$	(13,069)
Adjustment for interest expense recognized on convertible senior notes:		—			—
Net loss - diluted	$	(17,426)		$	(13,069)
Denominator:
Weighted-average shares outstanding — basic		34,319,291			33,673,912
Effect of dilutive securities:
Stock options		—			—
Restricted stock units		—			—
Performance share units		—			—
Employee stock purchase plan		—			—
Warrants		—			—
Convertible senior notes		—			—

Weighted average shares outstanding — diluted		34,319,291			33,673,912

Loss per share — basic	$	(0.51)		$	(0.39)
Loss per share — diluted	$	(0.51)		$	(0.39)

The Company has the option to settle the conversion obligation for its convertible senior notes due in 2026 and 2029 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:


	Three Months Ended March 31,
	2023		2022
Stock options	1,443,996		2,401,110
Restricted stock units	2,455,919		2,039,179
Performance share units	503,880		484,292
Warrants	—		1,041,667
Convertible senior notes	7,509,104		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.