Net Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2023

(15) Net Earnings (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) attributable to 3D Systems’ Common Stock shareholders by the weighted average number of Common Stock shares outstanding during the applicable period. Diluted net income (loss) per share incorporates the additional shares issuable upon the assumed exercise of stock options, the vesting of restricted stock and RSUs, and the assumed conversion of debt, except in such cases when (1) the inclusion of such shares or potential shares would be anti-dilutive or (2) when the vesting of restricted stock or RSUs is contingent upon one or more performance conditions that have not been met as of the balance sheet date.


	Three Months Ended				Six Months Ended
(in thousands, except per share amounts)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Numerator for basic and diluted net (loss) income per share:
Net (loss) income attributable to 3D Systems Corporation	$	(28,895)	$	(32,961)	$	(58,316)	$	(59,760)
Redeemable non-controlling interest redemption value in excess of carrying value	(172)		—		(260)		—
Net (loss) income attributable to common stock shareholders	$	(29,067)	$	(32,961)	$	(58,576)	$	(59,760)
Denominator for net (loss) income per share:
Weighted average shares – basic	129,907		127,703		129,535		127,218
Dilutive effect of shares issuable under stock based compensation and other plans(1)	—		—		—		—
Weighted average shares – diluted	129,907		127,703		129,535		127,218

Net income (loss) per share – basic	$	(0.22)	$	(0.26)	$	(0.45)	$	(0.47)
Net income (loss) per share – diluted	$	(0.22)	$	(0.26)	$	(0.45)	$	(0.47)

(1) Equity awards are deemed anti-dilutive for the three and six month periods ended June 30, 2023 and 2022 because we reported a net loss for these periods.

The following table presents the potentially dilutive shares that have been excluded from the computation of diluted earnings (loss) per share attributable to Common Stock shareholders because their effect is considered anti-dilutive for the three and six months ended June 30, 2023 and 2022:


	Three and Six Months Ended
(in thousands)	June 30, 2023	June 30, 2022
Restricted stock and restricted stock units	6,680	4,890
Stock options	420	420
Total	7,100	5,310

For the three and six months ended June 30, 2023, the table above excludes the following: (1) an estimate of 1,047 shares contingently issuable upon the achievement of one milestone in the Volumetric earnout arrangement, as discussed in Note 12; (2) an estimate of 109 shares for the payment of accrued annual bonus incentive compensation that is expected to be settled in shares; and (3) an estimate of 92 shares that are contingently issuable under the dp polar earnout arrangement, as discussed in Note 12. These share estimates are based upon the aggregate liabilities reported at June 30, 2023 for the Volumetric earnout arrangement, a ratable portion of the fiscal year 2023 annual bonus incentive compensation expected to be settled using shares of the Company's Common Stock and the dp polar earnout arrangement, divided by the Company's year-to-date average share price of $9.67 per share.

For the three and six months ended June 30, 2022, the table above excludes the following: (1) an estimate of 319 shares contingently issuable to settle the June 30, 2022 liability accrued for the assumed achievement of one milestone in the Volumetric earnout arrangement, as discussed in Note 12, and (2) an estimate of 111 shares for the payment of the portion of the fiscal year 2022 annual bonus incentive compensation that was accrued as of June 30, 2022 and expected to be settled in shares. These share estimates are based upon the aggregate liabilities reported at June 30, 2022 for the Volumetric earnout arrangement and a ratable portion of the fiscal year 2022 annual bonus incentive compensation that was settled using shares of the Company's Common Stock in the current quarter, divided by the Company's year-to-date average share price of $14.54 per share.

On November 16, 2021, the Company issued $460,000 in aggregate principal amount of 0% Convertible Senior Notes due November 15, 2026, as discussed in Note 10. The Notes’ impact to diluted shares will be calculated using the if-converted method as prescribed in ASC 260. The Notes will increase the diluted share count when the Company's average share price over an interim or annual reporting period is greater than $35.92 per share, the conversion price of the Notes. For the three and six months ended June 30, 2023 and 2022, the Notes were anti-dilutive on a stand-alone basis because the Company's average share price during these periods did not exceed the conversion price, and because we reported a net loss for each of the respective periods.