Net Loss Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Net Loss Per Share

Net Income (Loss) Per Share 

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during each period. Diluted net income (loss) per share is calculated by dividing net income (loss) - diluted by the diluted number of shares outstanding during each period. Except where the result would be anti-dilutive to net income (loss), diluted net income (loss) per share would be calculated assuming the impact of the conversion of the 2023 Notes, the conversion of our preferred shares, the exercise of outstanding equity compensation awards, and ordinary shares expected to be issued under our employee stock purchase plan (“ESPP”).

We have a choice to settle the conversion obligation under the 2023 Notes in cash, shares or any combination of the two. We utilize the if-converted method to reflect the impact of the conversion of the 2023 Notes, unless the result is anti-dilutive. This method assumes the conversion of the 2023 Notes into shares of our ordinary shares and reflects the elimination of the interest expense related to the 2023 Notes.

The dilutive effect of the warrants, stock options, restricted stock units, preferred shares and ordinary shares expected to be issued under or ESPP has been calculated using the treasury stock method.

A reconciliation of basic and diluted net income (loss) per share, together with the related shares outstanding in thousands is as follows: 

	Three Months Ended June 30,					Six Months Ended June 30,
Net Income (Loss) Per Share:	2020		2019			2020		2019
Net income (loss)	$	30,874	$	(8,605	)	$	30,009	$	(21,623	)
Add: interest from 2023 Notes, net of tax	3,237		—			6,427		—
Net income (loss) - diluted	$	34,111	$	(8,605	)	$	36,436	$	(21,623	)
Weighted average shares:
Basic shares	54,272		37,356			47,665		37,355
Effect of dilutive securities—employee and director equity awards outstanding, preferred shares and 2023 Notes	15,670		—			15,418		—
Diluted shares	69,942		37,356			63,083		37,355
Net income (loss) per share - basic	$	0.57	$	(0.23	)	$	0.63	$	(0.58	)
Net income (loss) per share - diluted	$	0.49	$	(0.23	)	$	0.58	$	(0.58	)

 

Potential common shares of 2,472 and 20,359 were excluded from the calculation of weighted average shares for the three months ended June 30, 2020 and 2019, respectively, and potential common shares of 2,537 and 20,502 were excluded from the calculation of weighted average shares for the six months ended June 30, 2020 and 2019, respectively, because their effect was considered to be anti-dilutive. For the three and six months ended June 30, 2019, the effects of dilutive securities were entirely excluded from the calculation of net loss per share as a net loss was reported in this period.