Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2024

Basic income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, stock options, restricted stock units, warrants, 0.750% Convertible Senior Notes due 2024 (“2024 Notes”), and 0% Convertible Senior Notes due 2026 (the “2026 Notes”) are considered to be common stock equivalents but are excluded from the calculation of diluted net income (loss) per share when including them has an anti-dilutive effect. See Note 8 – Convertible Senior Notes, Net of Current Portion, Capped Call Transactions, and Warrants for additional information about the 2024 Notes, 2026 Notes and First Lien Convertible Senior Notes due 2029 (the “2029 Notes” and together with the 2024 Notes and the 2026 Notes, the “Notes”).

Reconciliation of shares used in calculating basic and diluted net income (loss) per share for the three and six months ended June 30, 2024 and 2023, is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

	(In thousands, except per share amounts)
Numerator:
Net income (loss) available to stockholders for basic net income per share	$	41,795	$	10,822	$	6,164	$	(6,598)
Gain on debt extinguishment	(73,083)		—		(73,083)		—
Interest on assumed conversion of convertible notes, net of tax	—		136		—		—
Net (loss) income available to stockholders for diluted net income per share	$	(31,288)	$	10,958	$	(66,919)	$	(6,598)
Denominator:
Weighted-average shares used to compute basic net income (loss) per share	88,708,514		76,902,416		88,396,816		76,341,729
Weighted-average effect of dilutive securities:
Stock options and employee stock purchase plan	—		98,143		—		—
Restricted stock units	—		166,156		—		—
Earn-outs	—		5,575,251		—		—
Conversion option of the 2024 Notes	—		1,878,810		—		—
Conversion option of the 2026 Notes	6,269,720		6,879,283		6,576,185		—
Weighted-average shares used to compute diluted net (loss) income per share	94,978,234		91,500,059		94,973,001		76,341,729
Net income (loss) per share:
Basic	$	0.47	$	0.14	$	0.07	$	(0.09)
Diluted	$	(0.33)	$	0.12	$	(0.70)	$	(0.09)

The securities listed below were excluded from the computation of diluted net income (loss) per share for the three and six months ended June 30, 2024 and for the six months ended June 30, 2023, as their effect would have been anti-dilutive. Further, the computation of diluted net income (loss) per share for the three months ended June 30, 2023 excluded

approximately 3.8 million shares and 3.2 million shares related to stock options and RSUs, respectively, as their effect would have been anti-dilutive.


	As of June 30,
	2024	2023

Shares subject to outstanding common stock options and employee stock purchase plan	2,880,837	3,541,432
Restricted stock units	8,907,079	3,738,894
Earn-outs	—	5,575,251
Conversion option of the 2024 Notes	612,396	1,878,810
Conversion option of the 2026 Notes	—	6,879,283
Warrants	9,746,723	—
Total	22,147,035	21,613,670