Zymeworks Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
Numerator: | |||||||||||||||||
Net (loss) income attributable to common stockholders: | |||||||||||||||||
| Basic | $ | (122,695) | $ | (118,674) | $ | 124,341 | |||||||||||
| Adjustment for change in fair value of liability classified stock options | 140 | — | (231) | ||||||||||||||
| Diluted | $ | (122,555) | $ | (118,674) | $ | 124,110 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted-average common stock outstanding: | |||||||||||||||||
| Basic | 75,846,681 | 68,863,010 | 65,194,775 | ||||||||||||||
| Adjustment for dilutive effect of equity classified stock options and RSUs | — | — | 53,535 | ||||||||||||||
| Adjustment for dilutive effect of liability classified stock options | 32,057 | — | 874 | ||||||||||||||
| Diluted | 75,878,738 | 68,863,010 | 65,249,184 | ||||||||||||||
| Net (loss) income per common share – basic | $ | (1.62) | $ | (1.72) | $ | 1.91 | |||||||||||
| Net (loss) income per common share – diluted | $ | (1.62) | $ | (1.72) | $ | 1.90 | |||||||||||
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.