Net Earnings (Loss) Per Share

9 Months Ended

Sep. 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				Nine Months Ended
(in thousands, except per share amounts)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Numerator for basic and diluted net (loss) income per share:
Net (loss) income attributable to 3D Systems Corporation	$	(11,704)	$	(37,398)	$	(70,020)	$	(97,158)
Redeemable non-controlling interest redemption value in excess of carrying value	(61)		(462)		(321)		(462)
Net (loss) income attributable to common stock shareholders	$	(11,765)	$	(37,860)	$	(70,341)	$	(97,620)
Denominator for net (loss) income per share:
Weighted average shares – basic and diluted(1)	130,263		127,991		129,780		127,478



Net income (loss) per share – basic and diluted	$	(0.09)	$	(0.30)	$	(0.54)	$	(0.77)

(1) Equity awards are deemed anti-dilutive for the three and nine month periods ended September 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 nine months ended September 30, 2023 and 2022:


	Three and Nine Months Ended
(in thousands)	September 30, 2023	September 30, 2022
Restricted stock and restricted stock units	6,653	5,030
Stock options	420	420
Total	7,073	5,450

For the three and nine months ended September 30, 2023, the table above excludes an estimate of 110 shares that are contingently issuable under the dp polar earnout arrangement, as discussed in Note 12. As of September 30, 2023, there are no contingently issuable shares related to the Volumetric Earnout arrangement or the fiscal year 2023 annual bonus incentive compensation plan.

For the three and nine months ended September 30, 2022, the table above excludes the following: (1) an estimate of 506 shares contingently issuable to settle the September 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 233 shares for the payment of the portion of the fiscal year 2022 annual bonus incentive compensation that was accrued as of September 30, 2022 and expected to be settled in shares. These share estimates are based upon the aggregate liabilities reported at September 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 quarter ended June 30, 2023, divided by the Company's year-to-date average share price of $13.11 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 on weighted average diluted shares will be calculated using the if-converted method as prescribed in ASC 260. The Notes will increase the weighted average 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 nine months ended September 30, 2023 and 2022, the Notes were anti-dilutive on a stand-alone basis because (1) the Company's average share price during these periods did not exceed the conversion price and (2) we reported a net loss for each of the respective periods.