INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2023

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 stock options, restricted stock units, performance share units, ESPP shares, 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 nine months ended September 30, 2023 and 2022 (in thousands, except share amounts and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Basic and diluted net income (loss) per share:

Numerator
Net income (loss)	$	(40,806)	$	(55,543)	$	(81,423)	$	(180,145)
Less: Net income (loss) attributable to noncontrolling interests	552		680		1,689		2,157
Net income (loss) attributable to common stockholders	(41,358)		(56,223)		(83,112)		(182,302)

Denominator
Weighted-average common shares outstanding	31,500,489		30,307,734		31,039,668		30,070,598

Basic and diluted net income (loss) per share:	$	(1.31)	$	(1.86)	$	(2.68)	$	(6.06)

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 September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Restricted stock units	1,108,379	2,223,826	1,695,383	2,448,348
Stock options	3,309,783	—	2,282,890	—
Other stock-based compensation awards(1)	7,923	94,690	35,078	102,406
Convertible Senior notes due 2026 (2)	3,376,400	3,376,400	3,376,400	3,376,400
Capped call transactions	3,376,400	3,376,400	3,376,400	3,376,400
Total	11,178,885	9,071,316	10,766,151	9,303,554

(1)We had outstanding performance share units as of September 30, 2023 and 2022 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 September 30, 2023, there were up to 724,487 shares of common stock issuable upon vesting of outstanding Performance Share Units that were excluded from the table above as the performance conditions were not satisfied as of the end of the period.

(2)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.