Earnings Per Share

6 Months Ended

Jun. 30, 2024

Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive securities outstanding for the period.

The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023			2024		2023
Net income (loss)	$	1,063	$	(2,921)		$	(3,427)	$	(15,607)
Weighted-average shares used in computing earnings per share, basic	96,142		99,995			95,557		99,748
Weighted-average shares used in computing earnings per share, diluted	96,290		99,995			95,557		99,748
Net income (loss) per share, basic and diluted	$	0.01	$	(0.03)		$	(0.04)	$	(0.16)

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net income (loss) per share because including them would have had an anti-dilutive effect (in thousands):


	June 30, 2024	June 30, 2023
Shares related to Convertible Notes	19,538	19,538
Stock options to purchase common stock	11,639	12,675
Restricted stock units	15,557	13,566
ESPP	182	136
Total shares of potentially dilutive securities	46,916	45,915

For the 2025 Notes and 2026 Notes, the conversion spread of 11.9 million shares and 7.6 million shares, respectively, will have a dilutive impact on diluted net income per share of Class A common stock when the average market price of the Company’s Class A common stock for a given period exceeds the conversion price of $12.60 per share for the 2025 Notes and $27.89 per share for the 2026 Notes.