Net Income (Loss) Per Share

9 Months Ended

Mar. 31, 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, 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 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:


	Three Months Ended March 31,				Nine Months Ended March 31,
(in thousands, except per share amounts)	2021		2020		2021		2020
Basic:
Numerator:
Net income	$	36,481	$	23,716	$	127,734	$	61,098
Less: dividends declared on Series A, B, C & D preferred stock	—		—		—		(86,302)
Less: cumulative dividends on Series D preferred stock	—		(2,992)		—		(9,041)
Net income (loss) attributable to common shareholders	36,481		20,724		127,734		(34,245)
Denominator:
Weighted-average common stock outstanding	163,023		92,077		162,705		89,989
Net income (loss) per share—basic:	$	0.22	$	0.23	$	0.79	$	(0.38)
Diluted:
Numerator:
Net income (loss) attributable to common shareholders	$	36,481	$	20,724	$	127,734	$	(34,245)
Add: dividends declared on Series A, B & C preferred stock(1)	—		—		—		—
Add: dividends declared on Series D preferred stock(1)	—		—		—		—
Add: cumulative dividends on Series D preferred stock(1)	—		2,992		—		—
Net income (loss) attributable to common and common equivalent shareholders	36,481		23,716		127,734		(34,245)
Denominator:
Weighted-average common stock outstanding	163,023		92,077		162,705		89,989
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)	2,708		2,606		2,790		—
Total common and common equivalent shares outstanding	165,731		138,754		165,495		89,989
Net income (loss) per share—diluted:	$	0.22	$	0.17	$	0.77	$	(0.38)

(1) Excluded from the computation of net loss per share-diluted for the nine months ended March 31, 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 are as follows for the periods presented:


	Three Months Ended March 31,		Nine Months Ended March 31,
(in thousands)	2021	2020	2021	2020
Series A, B & C preferred stock outstanding	—	—	—	12,071
Series D preferred stock outstanding	—	—	—	32,000
Stock options outstanding to purchase shares of common stock including unvested RSU's and from the ESPP	322	—	918	4,146
Shares subject to outstanding PSU's(1)	132	—	117	—
Total	454	—	1,035	48,217

(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.