Basic net income (loss) per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock and dilutive potential common stock equivalents then outstanding. Dilutive potential common stock equivalents include the assumed exercise, vesting and issuance of employee stock awards using the treasury stock method, as well as common stock issuable upon assumed conversion of our convertible senior notes due 2025 (the “2025 Notes”) and our convertible senior notes due 2028 (the “2028 Notes”) using the if-converted method. If in a net loss position, diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, without consideration for dilutive potential common stock equivalents.

The following table shows the computation of basic and diluted net income (loss) per share for the three months ended March 31, 2025 and 2024:


	Three Months Ended March 31,
(In thousands except per share data)	2025			2024
Numerator:
Net income (loss), basic	$	(46,584	)	$	36,532
Add: interest expense on 2025 Notes, net of tax effect		—			1,121
Add: interest expense on 2028 Notes, net of tax effect		—			1,401
Net income (loss), diluted	$	(46,584	)	$	39,054
Denominator:
Weighted-average shares used to compute basic net income (loss) per share		62,709			63,185
Dilutive effect of 2025 Notes		—			11,150
Dilutive effect of 2028 Notes		—			9,956
Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan					240
Dilutive effect of outstanding warrant		—			—
Weighted-average shares used to compute diluted net income (loss) per share		62,709			84,531
Net income (loss) per share
Basic	$	(0.74	)	$	0.58
Diluted	$	(0.74	)	$	0.46

The following common stock equivalents were not included in the computation of diluted net income (loss) per share because their effect was anti-dilutive for the periods presented:


	Three Months Ended March 31,
(In thousands)	2025		2024
Outstanding options and awards granted under equity incentive plan and employee stock purchase plan		1,383		1,360
Outstanding stock warrant		591		591
Outstanding 2025 Notes		11,150		—
Outstanding 2028 Notes		9,955		—
Total		23,079		1,951