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Net Income (Loss) Per Share
 3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share

(7) Net Income (Loss) Per Share

The Company computes net income (loss) per share of Class A and Class B common stock using the two-class method. Under the provisions of the two-class method, basic net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the year. Diluted net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the diluted net income (loss) per share of Class B common stock assumes the conversion of Class A common stock to Class B common stock, while the diluted net income (loss) per share of Class A common stock does not assume the conversion of those shares.

In accordance with the two-class method, the undistributed earnings (losses) for each year are allocated based on the contractual participation rights of the Class A and Class B common shares and the restricted shares as if the earnings for the year had been distributed. Considering the terms of the Company’s charter which provides that, if and when dividends are declared on the Company’s common stock in accordance with Delaware General Corporation Law, equivalent dividends shall be paid with respect to the shares of Class A common stock and Class B common stock and that both classes of common stock have identical dividend rights and would share equally in the Company’s net assets in the event of liquidation, the Company has allocated undistributed earnings (losses) on a proportionate basis.

Instruments granted in unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities prior to vesting. As such, the Company’s restricted stock awards are considered participating securities for purposes of calculating earnings per share.

The following tables present the computation of basic net loss per share applicable to common stockholders for the periods ended (in thousands, except per share amounts):

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2022

 

 

 

Class A

 

 

Class B

 

 

Class A

 

 

Class B

 

Basic net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) applicable to common stockholders

 

$

(568

)

 

$

(4,764

)

 

$

(170

)

 

$

(1,412

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding used to calculate

   basic net income (loss) per share

 

 

4,661

 

 

 

39,087

 

 

 

4,661

 

 

 

38,666

 

Basic net income (loss) per share applicable to common stockholders

 

$

(0.12

)

 

$

(0.12

)

 

$

(0.04

)

 

$

(0.04

)

 

The following tables present the computation of diluted net loss per share applicable to common stockholders for the periods ended (in thousands, except per share amounts):

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2022

 

 

 

Class A

 

 

Class B

 

 

Class A

 

 

Class B

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss applicable to common stockholders

 

$

(568

)

 

$

(4,764

)

 

$

(170

)

 

$

(1,412

)

Reallocation of net income (loss) for Class A shares as a result of

   conversion of Class A to Class B shares

 

 

—

 

 

 

(568

)

 

 

—

 

 

 

(170

)

Diluted net income (loss) applicable to common stockholders

 

$

(568

)

 

$

(5,332

)

 

$

(170

)

 

$

(1,582

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding used to calculate

   basic net income (loss) per share

 

 

4,661

 

 

 

39,087

 

 

 

4,661

 

 

 

38,666

 

Conversion of Class A to Class B common shares outstanding

 

 

—

 

 

 

4,661

 

 

 

—

 

 

 

4,661

 

Weighted average number of shares outstanding used to calculate

   diluted net income (loss) per share

 

 

4,661

 

 

 

43,748

 

 

 

4,661

 

 

 

43,327

 

Diluted net income (loss) per share applicable to common stockholders

 

$

(0.12

)

 

$

(0.12

)

 

$

(0.04

)

 

$

(0.04

)

 

For the three months ended March 31, 2021 and March 31, 2022, the computation of diluted net loss per share excludes the following because their effect would be anti-dilutive (in thousands):

 

•

As of March 31, 2021 and 2022, outstanding options to acquire 3,634 and 3,684 shares, respectively of Class B common stock.

 

•

As of March 31, 2021 and 2022, 1,148 and 1,141 shares of unvested Class B restricted common shares, respectively.

 

•

As of March 31, 2021 and 2022, 399 and 511 restricted stock units, respectively.