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Earnings Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share

Earnings Per Share

4. 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 antidilutive.

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Numerator:
Net income (loss)	$	19,606		$	13,007		$	47,319		$	(4,419)
Adjustment for interest expense recognized on convertible senior notes		1,477			1,677			2,942			—
Net income (loss) - diluted	$	21,083		$	14,684		$	50,261		$	(4,419)
Denominator:
Weighted-average shares outstanding — basic		32,433,025			34,622,284			32,379,807			34,471,624
Effect of dilutive securities:
Stock options		393,128			236,426			430,273			—
Restricted stock units		949,383			481,478			1,093,741			—
Performance share units		—			—			—			—
Employee stock purchase plan		1,853			660			817			—
Convertible senior notes		6,606,305			7,509,104			6,606,305			—
Weighted average shares outstanding — diluted		40,383,694			42,849,952			40,510,943			34,471,624

Earnings (loss) per share — basic	$	0.60		$	0.38		$	1.46		$	(0.13)
Earnings (loss) per share — diluted	$	0.52		$	0.34		$	1.24		$	(0.13)

The Company has the option to settle the conversion obligation for its convertible senior notes due in 2029 in cash, shares or a combination of the two. On April 11, 2024, the Company provided notice of redemption for the remaining $26,350 aggregate principal amount of its 2.625% convertible senior notes due in 2026 (the “2026 Convertible Notes”). The 2026 Convertible Notes were fully redeemed on June 18, 2024. The Company settled the redemption of the 2026 Convertible Notes in cash. The 2026 Convertible Notes represented 902,799 shares which were excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2024 as their inclusion would have had an antidilutive effect. 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,
	2024		2023		2024		2023
Stock options	—		751,930		—		1,368,968
Restricted stock units	5,150		1,073,613		6,200		2,522,025
Performance share units	223,680		503,880		223,680		503,880
Convertible senior notes	—		—		—		7,509,104

For PSUs, these securities were excluded from the calculation of diluted earnings per share as the 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.