Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2020

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method.

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


	Year Ended December 31,
	2020		2019
Numerator:
Net income (loss) attributable to Travelzoo—continuing operations	$	(10,033)	$	12,287
Net income (loss) attributable to Travelzoo—discontinued operations	(3,390)		(8,132)
Denominator:
Weighted average common shares—basic	11,344		11,809
Effect of dilutive securities: stock options	—		226
Weighted average common shares—diluted	11,344		12,035

Income (loss) per share—basic
Continuing operations	$	(0.88)	$	1.04
Discontinued operations	(0.30)		(0.69)
Net income (loss) per share —basic	$	(1.18)	$	0.35

Income (loss) per share—diluted
Continuing operations	$	(0.88)	$	1.02
Discontinued operations	(0.30)		(0.69)
Net income (loss) per share—diluted	$	(1.18)	$	0.35

For the year ended December 31, 2020, options to purchase 3.3 million shares of common stock were not included in the computation of diluted net income per share because of the net loss. For the year ended December 31, 2019, options to purchase 200,000 shares of common stock, respectively, were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.