Net Income Per Share

12 Months Ended

Dec. 31, 2021

Net Income Per ShareThe Company issues certain performance-based RSUs determined to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of the Company’s declaration of a dividend for common shares. As of December 31, 2021, 2020, and 2019, there were 96,683, 149,754, and 321,126 participating securities outstanding, respectively.

Undistributed net income allocated to participating securities are subtracted from net income in determining basic net income attributable to common stockholders. Basic net income per share is computed by dividing basic net income attributable to common stockholders by the weighted average number of shares, inclusive of undistributed shares held in the DCP as phantom shares of the Company’s Class B Common Stock.

For the Company’s diluted net income per share numerator, interest expense, net of tax, attributable to the conversion of the convertible senior notes is added back to basic net income attributable to common stockholders. For the Company’s diluted net income per share denominator, the basic weighted average number of shares is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans and ESPP, and by the dilutive effect of the assumed conversion of the convertible senior notes. Diluted net income per share attributable to common stockholders is computed by dividing diluted net income attributable to common stockholders by the weighted average number of fully diluted common shares.

Except with respect to voting and conversion, the rights of the holders of the Company’s Class A Common Stock and the Company’s Class B Common Stock are identical. Each class of shares has the same rights to dividends and allocation of income (loss) and, therefore, net income per share would not differ under the two‑class method.

The details of basic and diluted net income per share are as follows:


	Year Ended December 31,
	2021		2020		2019
Numerator:
Net income	$	93,192	$	126,521	$	103,096
Less: Net income attributable to participating securities	(9)		(234)		(8)
Net income attributable to Class A and Class B common stockholders, basic	93,183		126,287		103,088
Add: Interest expense, net of tax, attributable to assumed conversion of convertible senior notes	—		—		—
Net income attributable to Class A and Class B common stockholders, diluted	$	93,183	$	126,287	$	103,088

Denominator:
Weighted average shares, basic	305,711,345		289,863,272		284,625,642
Dilutive effect of stock options, restricted stock, and RSUs	8,791,084		9,507,857		9,171,065
Dilutive effect of ESPP	108,385		—		—
Dilutive effect of assumed conversion of convertible senior notes	—		—		—
Weighted average shares, diluted	314,610,814		299,371,129		293,796,707

Net income per share, basic	$	0.30	$	0.44	$	0.36
Net income per share, diluted	$	0.30	$	0.42	$	0.35

The following potential common shares were excluded from the calculation of diluted net income per share attributable to common stockholders because their effect would have been anti‑dilutive for the periods presented:


	Year Ended December 31,
	2021	2020	2019
Stock options, restricted stock, and RSUs	150,017	—	—

Convertible senior notes	13,474,580	—	—
Total anti-dilutive securities	13,624,597	—	—