EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2023

19. EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is calculated using the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated using the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options, RSUs, and convertible senior notes.

Calculation of earnings (loss) per share:


(in thousands, except per share amounts)	2023		2022		2021
Net income (loss)	$	67,808	$	(345,582)	$	(63,040)
Weighted-average common shares outstanding	83,162		81,947		81,387
Earnings (loss) per share, basic	$	0.82	$	(4.22)	$	(0.77)

Net income (loss)	$	67,808	$	(345,582)	$	(63,040)
Convertible senior notes - interest expense and settlement gains, net of tax	(5,528)		—		—
Numerator for diluted EPS	$	62,280	$	(345,582)	$	(63,040)
Weighted-average effect of dilutive securities:
Convertible senior notes	235		—		—
Stock options	794		—		—
RSUs	723		—		—
Effect of dilutive securities	1,752		—		—
Weighted-average common shares outstanding, assuming dilution (1) (2) (3)	84,914		81,947		81,387
Earnings (loss) per share, diluted	$	0.73	$	(4.22)	$	(0.77)

Outstanding anti-dilutive stock options and RSUs (4)	250		3,367		5,862

(1) All dilutive securities are excluded in periods of loss as their inclusion would be anti-dilutive.

(2) The shares underlying the conversion options in the Company’s Notes are included using the if-converted method, if dilutive in the period. If the outstanding conversion options were fully exercised, the Company would issue approximately 3.7 million shares as of December 31, 2023.

(3) The Company’s Capped Call Transactions represent the equivalent of approximately 3.7 million shares of the Company’s common stock (representing the number of shares for which the Notes are convertible) as of December 31, 2023. The Capped Call Transactions are expected to reduce common stock dilution and/or offset any potential cash payments the Company must make, other than for principal and interest, upon conversion of the Notes, with such reduction and/or offset subject to a cap of $196.44. The Capped Call Transactions are excluded from weighted-average common shares outstanding, assuming dilution, in all periods as their effect would be anti-dilutive.

(4) Outstanding stock options and RSUs that were anti-dilutive under the treasury stock method in the period were excluded from the computation of diluted earnings (loss) per share. These awards may be dilutive in the future.