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Net Income Per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
The 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 September 30, 2024 and 2023, there were 352,730 and 364,753 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 EndedNine Months Ended
September 30,September 30,
2024202320242023
Numerator:
Net income
$42,338 $53,027 $184,694 $147,202 
Less: Net income attributable to participating securities
(21)(18)(63)(56)
Net income attributable to Class A and Class B common stockholders, basic
42,317 53,009 184,631 147,146 
Add: Interest expense, net of tax, attributable to assumed conversion of convertible senior notes1,723 1,716 5,164 5,157 
Net income attributable to Class A and Class B common stockholders, diluted
$44,040 $54,725 $189,795 $152,303 
Denominator:
Weighted average shares, basic315,207,216 313,069,132 314,820,679 311,915,808 
Dilutive effect of stock options, restricted stock, and RSUs941,136 2,115,802 1,221,222 2,534,773 
Dilutive effect of ESPP7,498 6,466 48,738 60,526 
Dilutive effect of assumed conversion of convertible senior notes17,633,786 17,633,786 17,633,786 17,633,786 
Weighted average shares, diluted333,789,636 332,825,186 333,724,425 332,144,893 
Net income per share, basic
$0.13 $0.17 $0.59 $0.47 
Net income per share, diluted
$0.13 $0.16 $0.57 $0.46 
There were no anti-dilutive securities for the three or nine months ended September 30, 2024 or 2023.