NET INCOME PER SHARE

The computation of basic and diluted net income per share was as follows (in thousands, except per share amounts):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
Numerator:
Net income	$	126,630	$	81,382		$	329,981	$	115,738
Net income allocated to participating securities	—		(221		)	—		(368		)
Net income allocable to common stock for basic net income per share	126,630		81,161			329,981		115,370
Adjustment to net income allocated to participating securities	—		14			—		23
Net income allocable to common stock for diluted net income per share	$	126,630	$	81,175		$	329,981	$	115,393
Denominator:
Weighted-average shares of common stock outstanding used in computing basic net income per share	298,416		294,269			297,700		292,776
Dilutive securities:
Outstanding stock options, unvested RSUs and ESPP contributions	13,930		18,671			15,500		18,779
Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income per share	312,346		312,940			313,200		311,555

Net income per share, basic	$	0.42	$	0.28		$	1.11	$	0.39
Net income per share, diluted	$	0.41	$	0.26		$	1.05	$	0.37

The two-year warrants to purchase an aggregate of 1,000,000 shares of our common stock issued in January 2014 (“2014 Warrants”) were participating securities. The warrant holders did not have a contractual obligation to share in our losses. The 2014 Warrants were fully exercised in September 2017. For a description of the 2014 Warrants, see “Note 7. Common Stock and Warrants” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 26, 2018.

Potential shares of common stock not included in the computation of diluted net income per share because to do so would be anti-dilutive was as follows (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018	2017
Outstanding stock options, unvested RSUs and ESPP contributions	5,687	583	2,938	1,108
Total	5,687	583	2,938	1,108