EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic net income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders for the applicable period by the weighted average number of common shares outstanding during the period. Potentially dilutive shares, consisting of outstanding stock options, RSUs, ESPP awards, and the Company’s Notes, are included in calculation of diluted net income (loss) per share when their effect is dilutive.

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

	Year ended December 31,
(in thousands, except per share amounts)	2022		2021		2020
Numerator:
Net income (loss)	$	28,182	$	13,254	$	(29,271)
Denominator:
Weighted average number of shares outstanding:
Basic	105,080		101,484		96,971
2022 Notes	2,681		2,175		—
2024 Notes	2,441		653		—
Stock options	213		292		—
Restricted stock units	1,884		1,525		—
Stock purchase rights under ESPP	79		42		—
Diluted	112,378		106,171		96,971
Net income (loss) per share:
Basic	$	0.27	$	0.13	$	(0.30)
Diluted	$	0.25	$	0.12	$	(0.30)

The following table presents the potentially dilutive shares that were excluded from the computation of diluted net income (loss) per share, because their effect was anti-dilutive:

	Year ended December 31,
(in thousands)	2022	2021	2020
2020 Notes	—	—	312
2022 Notes	—	—	192
Stock options	—	8	1,603
Restricted stock units	38	27	3,041
Stock purchase rights under the ESPP	—	390	531
Total	38	425	5,679

The Company applies the treasury stock method to determine the potential dilutive effect of its convertible debt on earnings per share. The 2020 Notes, 2022 Notes, and 2024 Notes are excluded from the calculation of diluted earnings per share under the treasury stock method for the periods when their respective conversion prices exceeded the average market price for the Company's common stock. Under the if-converted method, the 2022 Notes and 2024 Notes have potential dilutive effect of 6.6 million shares and 13.3 million shares, respectively.