INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2022

INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities include restricted stock units, performance share units, ESPP shares, warrants, capped call transactions and convertible senior notes. If dilutive, those potentially dilutive securities are reflected in diluted net income (loss) per share using the treasury stock method, except for the convertible senior notes, which are subject to the if-converted method.

The following table sets forth the computation of basic and diluted net income (loss) per share of common stock for the three months ended March 31, 2022 and 2021 (in thousands, except share amounts and per share amounts):


	Three Months Ended March 31,
	2022		2021
Basic and diluted net income (loss) per share:

Numerator
Net income (loss)	$	(34,352)	$	14,448
Less: Net income (loss) attributable to noncontrolling interests	500		(110)
Basic net income (loss) attributable to common stockholders	(34,852)		14,558

Diluted net income (loss) attributable to common stockholders	(34,852)		14,558
Plus: Interest expense from assumed conversion of convertible senior notes	—		72
Net income (loss) attributable to common stockholders plus assumed conversions	$	(34,852)	$	14,630

Denominator
Shares used in computation of basic net income (loss) per share	29,862,879		29,028,489
Weighted-average effect of diluted securities
Restricted stock units	—		931,922
Performance share units and other stock-based compensation awards	—		109,419
Convertible senior notes due 2026	—		195,733
Shares used in computation of diluted net income (loss) per share	29,862,879		30,265,563

Basic net income (loss) per share:	$	(1.17)	$	0.50

Diluted net income (loss) per share:	$	(1.17)	$	0.48

The following weighted-average potentially dilutive instruments are not included in the diluted net income (loss) per share calculations above because they would have had an antidilutive effect on the net income (loss) per share from continuing operations:


	Three Months Ended March 31,
	2022	2021
Restricted stock units	2,047,783	172,015
Performance share units and other stock-based compensation awards	54,182	—
Convertible Senior notes due 2022 (1)	—	2,314,815
Convertible Senior notes due 2026 (1)	3,376,400	—
Warrants	—	2,314,815
Capped call transactions	3,376,400	195,733
Total	8,854,765	4,997,378

(1)We apply the if-converted method in computing the effect of our convertible senior notes on diluted net income (loss) per share, whereby the numerator of our diluted net income (loss) per share computations is adjusted for interest expense, net of tax, and the denominator is adjusted for the number shares into which the convertible senior notes could be converted. The effect is only included in the calculation of income (loss) per share for those instruments for which it would reduce income (loss) per share. See Note 5, Financing Arrangements, for additional information.

We had outstanding Market-based Performance Share Units as of March 31, 2022 and 2021 that were eligible to vest into shares of common stock subject to the achievement of specified performance or market conditions. Contingently-issuable shares are excluded from the computation of diluted income (loss) per share if, based on current period results, the shares would not be issuable if the end of the reporting period were the end of the contingency period. As of March 31, 2022, there were up to 33,333 shares of common stock issuable upon vesting of outstanding Market-based Performance Share Units that were excluded from the table above as the performance or market conditions were not satisfied as of the end of the period.