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Earnings Per Share

12 Months Ended

Dec. 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 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,
	2023			2022			2021
Numerator:
Net income (loss)	$	48,155		$	(25,002)		$	71,517
Adjustment for interest expense recognized on convertible senior notes:		5,889			—			4,675
Net (loss) income — diluted	$	54,044		$	(25,002)		$	76,192
Denominator:
Weighted-average shares outstanding — basic		33,741,213			33,829,495			34,936,817
Effect of dilutive securities:
Stock options		271,540			—			504,699
Restricted stock units		714,190			—			461,471
Performance share units		267,761			—			85,229
Employee stock purchase plan		—			—			1,198
Warrants		—			—			131,257
Convertible senior notes		6,793,421			—			4,925,134
Weighted average shares outstanding — diluted		41,788,125			33,829,495			41,045,805

Earnings (loss) per share — basic	$	1.43		$	(0.74)		$	2.05
Earnings (loss) per share — diluted	$	1.29		$	(0.74)		$	1.86

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:


	Years Ended December 31,
	2023		2022		2021
Stock options	259,405		1,683,805		1,202,403
Restricted stock units	31,050		2,047,571		22,605
Performance share units	308,680		447,770		242,714
Employee stock purchase plan	18,591		—		—
Convertible senior notes	—		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.