Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2021

Adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity

We adopted ASU 2020-06 on January 1, 2021 under the modified retrospective method applied to convertible senior notes outstanding as of January 1, 2021 and have not changed previously disclosed amounts or provided additional disclosures for comparative periods. ASU 2020-06 requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. Under the if-converted method, outstanding convertible senior notes are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later).

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 September 30,				Nine Months Ended September 30,
	2021		2020(1)		2021		2020(1)
Basic
Numerator:
Net income (loss)	$	6,651	$	(37,140)	$	(25,764)	$	(32,264)
Denominator:
Weighted average shares used to compute net income (loss) per share, basic	144,746		126,194		140,775		124,162

Net income (loss) per share, basic	$	0.05	$	(0.29)	$	(0.18)	$	(0.26)

Diluted
Numerator:


Net income (loss), diluted	$	6,651	$	(37,140)	$	(25,764)	$	(32,264)
Denominator:
Weighted average shares used to compute net income (loss) per share, basic	144,746		126,194		140,775		124,162
Options to purchase common stock	485		—		—		—
PSUs and RSUs	1,462		—		—		—
Employee stock purchase plan	6		—		—		—

Weighted average shares used to compute net income (loss) per share, diluted	146,699		126,194		140,775		124,162

Net income (loss) per share, diluted	$	0.05	$	(0.29)	$	(0.18)	$	(0.26)

(1) As noted above, prior period amounts have not been adjusted due to the adoption of ASU 2020-06 under the modified retrospective method.

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 September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Options to purchase common stock	—	865	515	977
PSUs and RSUs	849	3,394	2,210	3,425
Shares related to convertible senior notes	22,875	8,721	23,876	4,422
Employee stock purchase plan	—	9	2	4
Total common stock equivalents	23,724	12,989	26,603	8,828