Net Income (Loss) Per Share

12 Months Ended

Jun. 30, 2021

NET INCOME (LOSS) PER SHAREThe Company calculates net income per share as defined by ASC Topic 260, “Earnings per Share”. Basic net income per share (“Basic EPS”) is computed by dividing net income attributable to common shareholders by the weighted-average common stock outstanding during the respective period. Net income attributable to common shareholders is computed by deducting both the dividends declared in the period on preferred stock and the dividends accumulated for the period on cumulative preferred stock from net income. Diluted net income per share (“Diluted EPS”) is computed by dividing net income attributable to common and common equivalent shareholders by the total of the weighted-average common stock outstanding and common equivalent shares outstanding during the respective period. For the purpose of calculating the Company’s Diluted EPS, common equivalent shares outstanding include the conversion of the preferred stock on an 8:1 ratio, as the rights and privileges dictate as such, common shares issuable upon the exercise of outstanding employee stock options, unvested RSU's, and common shares issuable upon the conclusion of each ESPP offering period. The number of common equivalent shares outstanding has been determined in accordance with the if-converted method for the preferred stock and the treasury stock method for employee stock options, RSU's, and common stock issuable pursuant to the ESPP to the extent they are dilutive. Under the treasury stock method, the exercise price paid by the option holder and future share-based compensation expense that the Company has not yet recognized are assumed to be used to repurchase shares.

The following table sets forth the computation of net income (loss) per share for the periods presented:


	Year Ended June 30,
(in thousands, except per share amounts)	2021		2020		2019
Basic:
Numerator:
Net income	$	131,046	$	81,147	$	72,579
Less: dividends declared on Series A, B, C & D preferred stock	—		(86,302)		(661)
Less: cumulative dividends on Series D preferred stock	—		(10,849)		(12,000)
Net income (loss) attributable to common shareholders	131,046		(16,004)		59,918
Denominator:
Weighted-average common stock outstanding	162,889		97,496		85,378
Net income (loss) per share—basic:	$	0.80	$	(0.16)	$	0.70
Diluted:
Numerator:
Net income (loss) attributable to common shareholders	$	131,046	$	(16,004)	$	59,918
Add: dividends declared on Series A, B & C preferred stock(1)	—		—		181
Add: dividends declared on Series D preferred stock(1)	—		—		480
Add: cumulative dividends on Series D preferred stock(1)	—		—		12,000
Net income (loss) attributable to common and common equivalent shareholders	131,046		(16,004)		72,579
Denominator:
Weighted-average common stock outstanding	162,889		97,496		85,378
Series A, B & C preferred stock outstanding(1)	—		—		12,071
Series D preferred stock outstanding(1)	—		—		32,000
Stock options outstanding to purchase shares of common stock including unvested RSU's and from the ESPP(1)	2,655		—		3,042
Total common and common equivalent shares outstanding	165,544		97,496		132,491
Net income (loss) per share—diluted:	$	0.79	$	(0.16)	$	0.55

(1) Excluded from the computation of net loss per share-diluted for the year ended June 30, 2020, because the effect would have been anti-dilutive.

The weighted average potential shares of common stock that were excluded from the calculation of net income (loss) per share-diluted for the periods presented because including them would have been anti-dilutive consisted of the following as of June 30:


(in thousands)	2021	2020	2019
Series A, B & C preferred stock outstanding	—	10,871	—
Series D preferred stock outstanding	—	28,817	—
Series E preferred stock outstanding	—	694	—
Stock options outstanding to purchase shares of common stock including unvested RSU's and from the ESPP	784	4,161	—
Shares subject to outstanding PSU's(1)	121	—	—
Total	905	44,543	—

(1) The weighted-average number of shares excluded from the computation of net income (loss) per share-diluted because the performance conditions associated with these awards were not met.