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Net Income Per Share
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
Basic and diluted net income per common share is presented in conformity with the two-class method required for participating securities. Basic and diluted net income per share is computed using the weighted-average number of shares of common stock outstanding during the period. The undistributed earnings are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B common stock is assumed in the computation of the diluted net income per share of Class A common stock, the undistributed earnings are equal to net income for that computation.
The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):
Three Months Ended
March 31,
20252024
Basic net income per share:Class AClass BClass AClass B
Numerator:
Net income$22,808 $1,834 $39,306 $3,325 
Denominator:
Weighted-average shares used in calculating net income per share, basic
317,561 25,536 305,927 25,879 
Basic net income per share$0.07 $0.07 $0.13 $0.13 
Diluted net income per share:
Numerator:
Allocation of distributed income, net of interest expense and related tax
$24,101 $1,938 $39,306 $3,325 
Reallocation of undistributed net income as a result of conversion of Class B to Class A shares
1,938 — 3,325 — 
Allocation of undistributed income
$26,039 $1,938 $42,631 $3,325 
Denominator:
Number of shares used in basic calculation317,561 25,536 305,927 25,879 
Weighted-average effect of diluted securities:
Conversion of Class B to Class A common shares outstanding25,536 — 25,879 — 
Employee stock options5,961 — 11,047 — 
Employee stock purchase plan
86 — 34 — 
Restricted stock units and performance stock units
3,404 — 4,475 — 
Unvested restricted stock in connection with acquisition194 — 519 — 
Shares issuable upon conversion of the 2025 Notes
5,740 — 8,098 — 
Shares issuable upon conversion of the 2029 Notes
4,596 — — — 
Number of shares used in diluted calculation363,078 25,536 355,979 25,879 
Diluted net income per share$0.07 $0.08 $0.12 $0.13 
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):
As of March 31,
20252024
Shares subject to outstanding stock options, RSUs and PSUs2,868 966 
Total2,868 966 
The Company uses the if-converted method for calculating any potential dilutive effect of the conversion options embedded in the Notes on diluted net income per share.
The Company entered into Capped Calls in connection with the issuance of the Notes. The effect of the Capped Calls was excluded from the calculation of diluted net income per share as the effect of the Capped Calls would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the Notes.