Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2021

Net Income (Loss) Per ShareBasic 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):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Numerator:
Net income (loss) attributable to Travelzoo—continuing operations	$	2,842	$	(1,121)	$	4,200	$	(10,206)
Net loss attributable to Travelzoo—discontinued operations	$	(19)	$	(230)	$	(5)	$	(3,944)
Denominator:
Weighted average common shares—basic	11,648		11,310		11,510		11,353
Effect of dilutive securities: stock options	1,256		—		1,622		—
Weighted average common shares—diluted	12,904		11,310		13,132		11,353

Income (loss) per share—basic
Continuing operations	$	0.24	$	(0.10)	$	0.36	$	(0.90)
Discontinued operations	—		(0.02)		—		(0.35)
Net income (loss) per share —basic	$	0.24	$	(0.12)	$	0.36	$	(1.25)

Income (loss) per share—diluted
Continuing operations	$	0.22	$	(0.10)	$	0.32	$	(0.90)
Discontinued operations	—		(0.02)		—		(0.35)
Net income (loss) per share—diluted	$	0.22	$	(0.12)	$	0.32	$	(1.25)

For the three and nine months ended September 30, 2021 and 2020, options to purchase 50,000 shares and 3.4 million shares of common stock, respectively, were not included in the computation of diluted net income (loss) per share because the effect would have been anti-dilutive.