CytomX Therapeutics, Inc. Earnings Per Share Disclosure
3. Net Income (Loss) Per Share
Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted net income (loss) per share is calculated using the weighted-average number of common shares outstanding, plus potential dilutive common stock during the period. Diluted net loss per share is the same as basic net loss per share in the period when the effect of the potentially dilutive securities is anti-dilutive. The pre-funded warrants are included in both the basic and diluted EPS calculation.
The following table presents the calculation of basic and diluted net income (loss) per share:
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Year Ended December 31, |
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2024 |
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2023 |
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Numerator: |
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Net income (loss) |
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$ |
31,869 |
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$ |
(569 |
) |
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Denominator: |
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Basic |
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Weighted-average common shares outstanding |
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77,516,177 |
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66,655,971 |
|
Weighted-average pre-funded warrants |
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6,923,126 |
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7,152,266 |
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Weighted-average common shares outstanding used to calculate basic net income (loss) per share |
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84,439,303 |
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73,808,237 |
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Diluted |
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Weighted-average common shares outstanding used to calculate basic net income (loss) per share |
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84,439,303 |
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|
73,808,237 |
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Effect of potentially dilutive securities: |
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Stock options, ESPP & RSUs |
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305,813 |
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— |
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Weighted-average common shares outstanding used to calculate diluted net income (loss) per share |
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84,745,116 |
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73,808,237 |
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Net income (loss) per share, basic and diluted |
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Basic |
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$ |
0.38 |
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$ |
(0.01 |
) |
Diluted |
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$ |
0.38 |
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$ |
(0.01 |
) |
The following weighted-average outstanding shares of potentially dilutive securities are excluded from the computation of diluted net loss per share for the periods presented, because including them would have been anti-dilutive:
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Year Ended December 31, |
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2024 |
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2023 |
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Options and ESPP to purchase common stock |
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14,452,982 |
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13,805,472 |
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Common stock warrants |
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11,538,462 |
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5,675,167 |
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RSUs |
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227,925 |
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1,820,589 |
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Total |
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26,219,369 |
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21,301,228 |
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About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.