The Company calculates earnings per share using a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the weighted-average shares of common stock outstanding without the consideration for potential dilutive shares of common stock. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding performance stock units, restricted stock units, public and private placement warrants, the employee stock purchase plan and stock options.

Diluted earnings per share is computed by dividing the net income by the weighted-average number of common share equivalents outstanding for the period determined using the treasury stock method and if-converted method, as applicable. During periods of net loss, diluted loss per share is equal to basic loss per share because the antidilutive effect of potential common shares is disregarded. As a result of the Transactions, the Company has retrospectively adjusted the weighted-average number of common shares outstanding prior to October 28, 2020 by multiplying them by the exchange ratio used to determine the number of common shares into which they converted.

The following is a reconciliation of basic and diluted net (loss) income per common share:


	Year Ended December 31,
(in thousands, except share and earnings per share data)	2022			2021		2020
Basic earnings per share computation:
Numerator:
Net (loss) income attributable to stockholders of Advantage Solutions Inc.	$	(1,380,502	)	$	54,494	$	(175,806	)
Denominator:
Weighted average common shares - basic		318,682,548			318,198,860		223,227,833
Basic (loss) earnings per common share	$	(4.33	)	$	0.17	$	(0.79	)
Diluted earnings per share computation:
Numerator:
Net (loss) income attributable to stockholders of Advantage Solutions Inc.	$	(1,380,502	)	$	54,494	$	(175,806	)
Denominator:
Weighted average common shares outstanding		318,682,548			318,198,860		223,227,833
Performance Stock Units		—			1,998,848		—
Restricted Stock Units		—			559,649		—
Warrants		—			4,468		—
Employee stock purchase plan and stock options		—			242,931		—
Weighted average common shares - diluted		318,682,548			321,004,756		223,227,833
Diluted (loss) earnings per common share	$	(4.33	)	$	0.17	$	(0.79	)

During periods of net loss, diluted loss per share is equal to basic loss per share because the antidilutive effect of potential common shares is disregarded.

As part of the Transactions, 5,000,000 Performance Shares were issued to Topco at Closing, which were subject to vesting upon satisfaction of a market performance condition for any period of 20 trading days out of 30 consecutive trading days during the five-year period after the Closing, and Topco was not able to vote or sell such shares until vesting. These Performance Shares were considered contingently issuable shares and remained unvested as of December 31, 2020. Therefore, these Performance Shares are excluded from shares outstanding for basic and diluted earnings per share until the contingency is resolved. The 5,000,000

Performance Shares vested on January 15, 2021, when the closing price for the Class A common stock exceeded $12.00 per share for 20 trading days out of 30 consecutive trading days.

The Company had 11,244,988 of public warrants and 7,333,333 of private placement warrants held by the CP Sponsor (as defined below), to purchase Class A common stock at $11.50 per share at the Closing, which remain outstanding at December 31, 2022 and 2021.

See Note 12 — Equity for additional information regarding the terms of public and private placement warrants.