Net Income per Share

3 Months Ended

Mar. 31, 2024

12. Net Income per Share

The Company computed basic net income per share based on the weighted average number of shares of common stock outstanding during the period. The Company computed diluted net income per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive common stock equivalents outstanding during the period. For the purposes of this calculation, stock options, restricted stock units, performance stock units, and stock sold through the ESPP are considered common stock equivalents.

A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income per share is as follows (in thousands, except share and per share amounts):


	Three Months Ended March 31,
	2024		2023
Numerator:
Net income	$	11,002	$	8,562



Denominator:
Weighted average shares used to compute net income attributable to common stockholders:
Basic	38,717,334		38,186,342
Potential dilutive stock-based options and awards	670,025		889,046

Diluted	39,387,359		39,075,388
Net income per share:
Basic	$	0.28	$	0.22
Diluted	$	0.28	$	0.22

For the three months ended March 31, 2024 and 2023, outstanding stock-based awards of 26 thousand and 26 thousand shares, respectively, were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive in the periods presented.