Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2020

Net Income (Loss) Per ShareBasic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including stock options, restricted stock units (RSUs), performance-based restricted stock units (PSUs), and shares related to convertible senior notes, to the extent dilutive.

The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Numerator:
Net income (loss)	$	10,589	$	(2,029)	$	4,876	$	(6,347)


Denominator:
Weighted average shares used to compute net income (loss) per share, basic	123,842		118,790		123,135		117,766
Options to purchase common stock	958		—		1,013		—
RSUs and PSUs	2,707		—		3,175		—
Shares related to convertible senior notes	6,344		—		5,351		—
Weighted average shares used to compute net income (loss) per share, diluted	133,851		118,790		132,674		117,766

Net income (loss) per share, basic	$	0.09	$	(0.02)	$	0.04	$	(0.05)
Net income (loss) per share, diluted	$	0.08	$	(0.02)	$	0.04	$	(0.05)

The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands):


	Three Months Ended June 30,			Six Months Ended June 30,
	2020	2019	2020	2019
Options to purchase common stock	—	2,753	—	3,006
RSUs and PSUs	103	3,787	52	5,394
Shares related to convertible senior notes	—	3,646	—	3,494
Employee stock purchase plan	10	—	10	—
Total common stock equivalents	113	10,186	62	11,894

Shares related to convertible senior notes represents the dilutive and anti-dilutive impact of our issuance of $345 million in aggregate principal amount of our 2023 notes as the average price of our common stock was higher than the conversion price of $26.95 and the conditions for conversion had been met. These shares were dilutive during the three and six months ended June 30, 2020 as we were in a net income position and anti-dilutive during the three and six months ended June 30, 2019 as we were in a net loss position. However, as a result of the capped call transactions, there will be no economic dilution from the 2023 notes up to $40.68, as exercise of the capped call instruments will reduce dilution from the 2023 notes that would have otherwise occurred when the average price of our common stock exceeds the conversion price. None of the shares related to our issuance of $800 million in aggregate principal amount of our 2025 notes were dilutive or anti-dilutive during the three and six months ended June 30, 2020 and 2019