Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Net Income Per Share

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

	Three Months Ended March 31,
	2021		2020
	(in thousands, except per share data)
Net income (loss) per share:
Numerator—basic:
Net income (loss) attributable to Switch, Inc.—basic	$	11,641	$	(1,216)
Numerator—diluted:
Net income (loss) attributable to Switch, Inc.—diluted	$	11,641	$	(1,216)
Denominator—basic:
Weighted average shares outstanding—basic	126,641		94,366
Net income (loss) per share—basic	$	0.09	$	(0.01)
Denominator—diluted:
Weighted average shares outstanding—basic	126,641		94,366
Weighted average effect of dilutive securities:
Stock options	1,471		—
Restricted stock units	904		—
Dividend equivalent units	46		—
Restricted stock awards	48		—
Weighted average shares outstanding—diluted	129,110		94,366
Net income (loss) per share—diluted	$	0.09	$	(0.01)

Potentially Dilutive Securities Excluded from the Computation of Diluted Net Income Per Share

The following table presents potentially dilutive securities excluded from the computation of diluted net income (loss) per share for the periods presented because their effect would have been anti-dilutive.

	Three Months Ended March 31,
	2021	2020
	(in thousands)
Stock options(1)	5,762	9,243
Restricted stock units(1)	12	3,672
Dividend equivalent units(1)	—	29
Restricted stock awards(1)	—	80
Performance-vesting restricted stock units(1)	277	—
Shares of Class B and Class C common stock(2)	113,915	146,410

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(1)Represents the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce this amount if they had a dilutive effect and were included in the computation of diluted net income per share.

(2)Shares of Class B and Class C common stock at the end of the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method.