Net Income Per Share

6 Months Ended

Jun. 30, 2023

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 June 30, 2023 and 2022, there were 368,283 and 356,946 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 assumed 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 for the effect of dilutive securities, including awards under the Company’s equity compensation plans and ESPP, and for 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:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	48,685	$	55,673	$	94,175	$	112,061
Less: Net income attributable to participating securities	(19)		(11)		(38)		(20)
Net income attributable to Class A and Class B common stockholders, basic	48,666		55,662		94,137		112,041
Add: Interest expense, net of tax, attributable to assumed conversion of convertible senior notes	1,723		1,705		3,440		3,400
Net income attributable to Class A and Class B common stockholders, diluted	$	50,389	$	57,367	$	97,577	$	115,441

Denominator:
Weighted average shares, basic	311,914,602		308,244,778		311,366,371		308,512,924
Dilutive effect of stock options, restricted stock, and RSUs	2,643,664		6,167,330		2,744,259		5,854,791
Dilutive effect of ESPP	160,673		195,485		87,557		173,097
Dilutive effect of assumed conversion of convertible senior notes	17,633,786		17,667,623		17,633,786		17,667,623
Weighted average shares, diluted	332,352,725		332,275,216		331,831,973		332,208,435

Net income per share, basic	$	0.16	$	0.18	$	0.30	$	0.36
Net income per share, diluted	$	0.15	$	0.17	$	0.29	$	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:


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2023	2022	2023	2022
RSUs	—	223,731	—	223,731


Total anti-dilutive securities	—	223,731	—	223,731