Net (Loss) Income per Share

9 Months Ended

Sep. 30, 2022

The following table sets forth the computation of basic and diluted net (loss) income per share attributable to common stockholders for the periods presented:


(in thousands, except share and per share amounts)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Numerator:
Net (loss) income attributable to stockholders	$	(25,256)	$	9,303	$	(21,231)	$	27,110
Less: Undistributed amounts allocated to participating securities	—		—		—		—
Undistributed (loss) income allocated to stockholders	$	(25,256)	$	9,303	$	(21,231)	$	27,110
Denominator:
Weighted average number of shares outstanding, basic	89,431,022		94,134,690		88,956,388		94,043,105
Weighted average additional shares assuming conversion of potential common shares	—		4,983,831		—		5,174,020
Weighted average common shares outstanding - diluted	89,431,022		99,118,521		88,956,388		99,217,125
Net (loss) income per share attributable to stockholders, basic	$	(0.28)	$	0.10	$	(0.24)	$	0.29
Net (loss) income per share attributable to stockholders, diluted	$	(0.28)	$	0.09	$	(0.24)	$	0.27

In December 2020, the Company issued 370,182 shares of common stock to employees and consideration was made in the form of promissory notes between the employee and the Company. The promissory notes were partially secured by the underlying shares of common stock. The promissory notes were partial-recourse, but treated as non-recourse for accounting purposes and, as such, (i) each of these purchases of common stock with a promissory note was accounted for as if it were a stock option grant and (ii) no receivable for amounts due under the promissory notes was recorded on the Company’s consolidated balance sheets. The promissory notes were forgivable upon (i) a change in control or (ii) the first public filing of a registration statement with the SEC in connection with an initial public offering. On August 4, 2021, the Company approved the forgiveness and cancellation of the outstanding indebtedness of each promissory note holder prior to the IPO. On August 16, 2021, pursuant to the terms of the promissory notes, the principal amount on each loan, together with all accrued and unpaid interest, were forgiven. Prior to the forgiveness of the promissory notes in August 2021, the Company’s participating securities included shares of common stock issued in exchange for promissory notes that were being treated as fully vested outstanding stock options and were excluded from the denominator of basic earnings per share. As of September 30, 2022, the forgiven promissory notes are reflected as an issuance of common stock and are included in the denominator of basic earnings per share.

The following potentially dilutive outstanding securities were excluded from the computation of diluted net (loss) income per share because their effect would have been anti-dilutive for the periods presented, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period:


	Three and Nine Months Ended September 30,
	2021	2022
Stock options	13,175,249	8,964,397

Restricted Stock Awards	1,824,597	2,131,704
Restricted Stock Units	44,211	44,560