INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2022

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 and six months ended June 30, 2022 and 2021 (in thousands, except share amounts and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Basic and diluted net income (loss) per share:

Numerator
Net income (loss)	$	(90,250)	$	(3,129)	$	(124,602)	$	11,319
Less: Net income (loss) attributable to noncontrolling interests	977		253		1,477		143
Basic net income (loss) attributable to common stockholders	(91,227)		(3,382)		(126,079)		11,176

Diluted net income (loss) attributable to common stockholders	(91,227)		(3,382)		(126,079)		11,176

Denominator
Shares used in computation of basic net income (loss) per share	30,039,233		29,273,806		29,952,018		29,139,930
Weighted-average effect of diluted securities
Restricted stock units	—		—		—		893,440
Performance share units and other stock-based compensation awards	—		—		—		87,481
Shares used in computation of diluted net income (loss) per share	30,039,233		29,273,806		29,952,018		30,120,851

Basic net income (loss) per share:	$	(3.04)	$	(0.12)	$	(4.21)	$	0.38

Diluted net income (loss) per share:	$	(3.04)	$	(0.12)	$	(4.21)	$	0.37

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:


	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Restricted stock units	3,073,435	1,871,251	2,560,609	189,132
Performance share units and other stock-based compensation awards	158,344	104,393	106,263	—
Convertible Senior notes due 2022 (1)	—	1,119,251	—	1,717,033
Convertible Senior notes due 2026 (1)	3,376,400	3,352,202	3,376,400	1,676,101
Warrants	—	1,195,564	—	1,755,189
Capped call transactions	3,376,400	3,352,202	3,376,400	1,773,968
Total	9,984,579	10,994,863	9,419,672	7,111,423

(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 June 30, 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 June 30, 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.