Earnings Per Share

3 Months Ended

Mar. 31, 2022

Note 12. Earnings per share

Basic net earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted net earnings per share is computed by giving effect to all potentially dilutive ordinary share equivalents outstanding for the period. For purposes of this calculation, share options, RSUs, RSAs, and ESPP awards are considered to be ordinary share equivalents but are excluded from the calculation of diluted earnings per share when including them would have an anti-dilutive effect. The following table sets forth the computation of basic and diluted net earnings per share (unaudited and in thousands, except for share and per share data):


	Three Months Ended March 31,
	2021		2022
Numerator:
Net income (loss)	$	19,860	$	(1,568	)
Denominator:
Basic weighted average shares outstanding		26,115,615		26,749,675
Dilutive effect of share option awards		1,948,192		—
Dilutive effect of restricted share units and restricted share awards		441,581		—
Dilutive effect of employee share purchase plan		12,325		—
Diluted weighted average shares outstanding		28,517,713		26,749,675
Net earnings (loss) per share, basic	$	0.76	$	(0.06	)
Net earnings (loss) per share, diluted	$	0.70	$	(0.06	)

The following outstanding shares of ordinary share equivalents were excluded from the computation of diluted net loss per share for the periods presented as including them would have had an anti-dilutive effect (unaudited and in thousands):


	Three Months Ended March 31,
	2021		2022
Share options		4		116
Restricted shares (RSUs and RSAs)		12		252
Total		16		368