INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2023

INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, restricted stock units, performance share units, ESPP shares, capped call transactions and convertible senior notes. If dilutive, those potentially dilutive securities are reflected in diluted net income (loss) per share using the treasury stock method, except for the convertible senior notes, which are subject to the if-converted method.

The following table sets forth the computation of basic and diluted net income (loss) per share of common stock for the three and six months ended June 30, 2023 and 2022 (in thousands, except share amounts and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Basic and diluted net income (loss) per share:

Numerator
Net income (loss)	$	(12,004)	$	(90,250)	$	(40,617)	$	(124,602)
Less: Net income (loss) attributable to noncontrolling interests	603		977		1,137		1,477
Net income (loss) attributable to common stockholders	(12,607)		(91,227)		(41,754)		(126,079)

Denominator
Weighted-average common shares outstanding	31,020,493		30,039,233		30,796,943		29,952,018

Basic and diluted net income (loss) per share:	$	(0.41)	$	(3.04)	$	(1.36)	$	(4.21)

The following weighted-average potentially dilutive instruments are not included in the diluted net income (loss) per share calculations above because they would have had an antidilutive effect on the net income (loss) per share:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Restricted stock units	1,624,378	3,073,435	1,988,886	2,560,609
Stock options	3,500,000	—	1,769,444	—
Other stock-based compensation awards(1)	33,165	158,344	48,176	106,263
Convertible Senior notes due 2026 (2)	3,376,400	3,376,400	3,376,400	3,376,400
Capped call transactions	3,376,400	3,376,400	3,376,400	3,376,400
Total	11,910,343	9,984,579	10,559,306	9,419,672

(1)As of June 30,2022, there were up to 33,333 shares of common stock outstanding that were excluded from the table above due to their status as Market-based Performance Share Units eligible to vest subject to the achievement of specified performance or market conditions which were not satisfied as of the end of the period.

(2)We apply the if-converted method in computing the effect of our convertible senior notes on diluted net income (loss) per share, whereby the numerator of our diluted net income (loss) per share computations is adjusted for interest expense, net of tax, and the denominator is adjusted for the number of shares into which the convertible senior notes could be converted. The effect is only included in the calculation of income (loss) per share for those instruments for which it would reduce income (loss) per share. See Note 5, Financing Arrangements, for additional information.