Net Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2021

NOTE 13 — NET EARNINGS (LOSS) PER SHARE

Basic and diluted net earnings (loss) per share is computed by dividing the net earnings (loss) attributable to Class A common stockholders by the weighted-average shares of Class A common stock outstanding during the period. Diluted net earnings (loss) per share is computed by giving effect to all potentially dilutive shares. For the six months ended June 30, 2021, and the three and six months ended June 30, 2020, potentially dilutive shares are excluded from diluted net earnings (loss) per share because they have an anti-dilutive impact.

The following table presents the calculation of basic and diluted net earnings (loss) per share during the three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020

	(in millions, except number of shares, which are reflected in thousands, and per share amounts)
Numerator:


Net income (loss) attributable to Carvana Co. - basic	$	22	$	(41)	$	(14)	$	(101)
Income impact of assumed conversions from LLC Units	23		—		—		—
Net income (loss) attributable to Carvana Co. - diluted	$	45	$	(41)	$	(14)	$	(101)

Denominator:
Weighted-average shares of Class A common stock outstanding	81,439		66,430		79,795		58,493
Nonvested weighted-average restricted stock awards	(41)		(103)		(44)		(130)
Weighted-average shares of Class A common stock outstanding - basic	81,398		66,327		79,751		58,363
Dilutive potential Class A common shares:
Options (1)	835		—		—		—
Restricted Stock Units and Awards (1)	420		—		—		—
Class A Units (2)	91,078		—		—		—
Class B Units (2)	2,284		—		—		—
Weighted-average shares of Class A common stock outstanding - diluted	176,015		66,327		79,751		58,363


Net earnings (loss) per share of Class A common stock - basic	$	0.27	$	(0.62)	$	(0.18)	$	(1.73)
Net earnings (loss) per share of Class A common stock - diluted	$	0.26	$	(0.62)	$	(0.18)	$	(1.73)

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(1) Calculated using the treasury stock method, if dilutive.

(2) Calculated using the if-converted method, if dilutive.

Shares of Class B common stock do not share in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted net earnings (loss) per share of Class B common stock under the two-class method has not been presented.

The following table presents potentially dilutive securities, as of the end of the period, excluded from the computations of diluted net earnings (loss) per share of Class A common stock for the three and six months ended June 30, 2021 and 2020.


	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020

	(in thousands)
Options (1)(2)	97	1,166	1,124	1,166
Restricted Stock Units and Awards (1)	27	926	654	926
Class A Units (1)	—	101,319	89,483	101,319
Class B Units (1)	—	3,646	2,248	3,646

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(1) Represents number of instruments outstanding at the end of the period that were excluded from the computation of diluted net earnings (loss) per share of Class A common stock because the effect would have been anti-dilutive.

(2) Number of securities outstanding for the three months ended June 30, 2021, that were excluded from the computation of diluted net earnings (loss) per share of Class A common stock because the exercise price of the options exceeded the average market price of our Class A common stock during the period ("out-of-the-money").