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Earnings Per Share

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Numerator:
Net income (loss)	$	13,007		$	(5,191)		$	(4,419)		$	(18,260)
Adjustment for interest expense recognized on convertible senior notes		1,677			—			—			—
Net income (loss) - diluted	$	14,684		$	(5,191)		$	(4,419)		$	(18,260)
Denominator:
Weighted-average shares outstanding — basic		34,622,284			34,001,553			34,471,624			33,838,638
Effect of dilutive securities:
Stock options		236,426			—			—			—
Restricted stock units		481,478			—			—			—
Employee stock purchase plan		660			—			—			—
Convertible senior notes		7,509,104			—			—			—
Weighted average shares outstanding — diluted		42,849,952			34,001,553			34,471,624			33,838,638

Earnings (loss) per share — basic	$	0.38		$	(0.15)		$	(0.13)		$	(0.54)
Earnings (loss) per share — diluted	$	0.34		$	(0.15)		$	(0.13)		$	(0.54)

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Stock options	751,930		2,230,895		1,368,968		2,230,895
Restricted stock units	1,073,613		2,024,634		2,522,025		2,024,634
Performance share units	503,880		447,770		503,880		447,770
Warrants	—		1,041,667		—		1,041,667
Convertible senior notes	—		4,925,134		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.