INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2023

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, 2023 and 2022 (in thousands, except share amounts and per share amounts):


	Three Months Ended March 31,
	2023		2022
Basic and diluted net income (loss) per share:

Numerator
Net income (loss)	$	(28,613)	$	(34,352)
Less: Net income (loss) attributable to noncontrolling interests	534		500
Net income (loss) attributable to common stockholders	(29,147)		(34,852)

Denominator
Weighted-average common shares outstanding	30,676,145		29,862,879

Basic and diluted net income (loss) per share:	$	(0.95)	$	(1.17)

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 March 31,
	2023	2022
Restricted stock units	2,353,393	2,047,783
Other stock-based compensation awards	101,118	54,182
Convertible Senior notes due 2026 (1)	3,376,400	3,376,400
Capped call transactions	3,376,400	3,376,400
Total	9,207,311	8,854,765

(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 of 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.