Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2022

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):


	Three Months Ended
	March 31,
	2022		2021
Numerator:
Net income (loss) attributable to Travelzoo—continuing operations	$	2,370	$	(1,627)
Net loss attributable to Travelzoo—discontinued operations	$	(11)	$	(15)
Denominator:
Weighted average common shares—basic	12,056		11,391
Effect of dilutive securities: stock options	488		—
Weighted average common shares—diluted	12,544		11,391

Income (loss) per share—basic
Continuing operations	$	0.20	$	(0.14)
Discontinued operations	—		—
Net income (loss) per share —basic	$	0.20	$	(0.14)

Income (loss) per share—diluted
Continuing operations	$	0.19	$	(0.14)
Discontinued operations	—		—
Net income (loss) per share—diluted	$	0.19	$	(0.14)

For the three months ended March 31, 2022 and 2021, options to purchase 50,000 shares and 2.8 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.