EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2024

NOTE 14. 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:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2024		2023		2024		2023
Net income (loss)	$	6,613	$	(46,804)	$	(5,511)	$	(67,578)
Weighted-average common shares outstanding	85,157		83,039		84,712		82,823
Earnings (loss) per share, basic	$	0.08	$	(0.56)	$	(0.07)	$	(0.82)

Net income (loss)	$	6,613	$	(46,804)	$	(5,511)	$	(67,578)

Numerator for diluted EPS	$	6,613	$	(46,804)	$	(5,511)	$	(67,578)
Weighted-average effect of dilutive securities:

Stock options	2,164		—		—		—
RSUs	1,179		—		—		—
Effect of dilutive securities	3,343		—		—		—
Weighted-average common shares outstanding, assuming dilution (1) (2) (3)	88,500		83,039		84,712		82,823
Earnings (loss) per share, diluted	$	0.07	$	(0.56)	$	(0.07)	$	(0.82)

Outstanding anti-dilutive stock options and RSUs (4)	5		1,354		3,259		1,351

(1) All dilutive securities are excluded when 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 June 30, 2024.

(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 June 30, 2024. 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.