Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2020

3. Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is calculated using the weighted-average number of common shares outstanding, plus potential dilutive common stock during the period. Diluted net loss per share, for the comparative period, is the same as basic net loss per share since the effect of the potentially dilutive securities is anti-dilutive.

The following table presents the calculation of basic and diluted net income (loss) per share:

	Three Months Ended
	March 31,
	2020		2019
	(in thousands)
Numerator:
Net income (loss)	$	12,205	$	(14,124	)

Denominator:
Basic
Weighted-average common shares used to calculate net income (loss) per share		45,723,955		45,122,456
Diluted
Weighted-average common shares used to calculate net income (loss) per share		45,723,955		45,122,456
Effect of potentially dilutive securities:
Stock options and ESPP shares		1,320,819		-
		47,044,774		45,122,456
Net income (loss) per share
Basic	$	0.27	$	(0.31	)
Diluted	$	0.26	$	(0.31	)

The following weighted-average outstanding shares of potentially dilutive securities were excluded from the computation of diluted net income (loss) per share for the periods presented, because including them would have been anti-dilutive:

	Three Months Ended
	March 31,
	2020		2019
Options and ESPP to purchase common stock		8,234,298		8,962,799