Earnings Per Share

3 Months Ended

Mar. 31, 2023

Note 10—Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing net income attributable to Class A Common stock by the weighted average shares of Class A Common Stock outstanding during each period. Diluted EPS is calculated by dividing adjusted net income by the weighted average shares of diluted Class A Common Stock outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted EPS calculation consists of (i) unvested equity-based restricted stock and performance stock units, outstanding stock options, withholding amounts from the employee stock purchase plan (prior to its discontinuation in January 2023), all using the treasury stock method, (ii) equity-based restricted stock and performance stock units that were vested but not outstanding, using the treasury stock method, and (iii) the Company’s Class C Common Stock and potential shares issuable under our Convertible Senior Notes, both using the “if-converted” method, which is net of tax.

The following table reflects the EPS computations for the periods indicated based on a weighted average number of Class A Common Stock outstanding each period:


	Three Months Ended March 31,
(in thousands, except per share data)	2023		2022
Net income (loss) attributable to Class A Common Stock	$	102,120	$	15,802

Add: Interest on Convertible Senior Notes, net of tax	1,375		1,293
Adjusted net income (loss) attributable to Class A Common Stock	$	103,495	$	17,095

Basic weighted average shares of Class A Common Stock outstanding	295,913		284,851

Add: Dilutive effects of Convertible Senior Notes	27,314		27,074
Add: Dilutive effects of equity awards and ESPP shares	12,621		7,755
Diluted weighted average shares of Class A Common Stock outstanding	335,848		319,680

Basic net earnings (loss) per share of Class A Common Stock	$	0.35	$	0.06
Diluted net earnings (loss) per share of Class A Common Stock	$	0.31	$	0.05

The following table presents shares excluded from the diluted earnings per share calculation for the periods presented as their impact was anti-dilutive:


	Three Months Ended March 31,
(in thousands)		2023	2022
Out-of-the-money stock options		1,914	2,097

Weighted average shares of Class C Common Stock		263,369	—
Performance stock units		—	449