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Net Income Per Share | 12 Months Ended
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Dec. 31, 2023
Earnings Per Share [Abstract] |
Net Income Per Share | Net Income Per Share Basic and diluted net income per share are computed using the two-class method as required when there are participating securities and multiple classes of common stock. Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period. Prior to May 14, 2021, when the Company’s Series A preferred stock and Series B preferred stock converted into shares of Class B common stock, the Company’s redeemable convertible preferred stock were participating securities as the holders of the redeemable convertible preferred stock were entitled to participate in dividends with common stock. In periods of net income, net income after deducting the accretion of redeemable convertible preferred stock was attributed to common stockholders and participating securities based on their participation rights. Net losses after deducting the accretion of redeemable convertible preferred stock are not allocated to the participating securities as the participating securities do not have a contractual obligation to share in any losses. In April 2021, the Company filed its amended and restated certificate of incorporation, which resulted in the creation of Class A common stock and Class B common stock. As the liquidation and dividend rights are identical for Class A and Class B common stock (see Note 13), the undistributed earnings under the two-class method are allocated on a proportional basis and the resulting net income per share attributable to common stockholders is, therefore, the same for both Class A and Class B common stock on an individual or combined basis. The following table presents the Company’s basic net income per share (in thousands, except per share amounts):
|  |  | Year Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Net income per share, basic: |  |  |  |  |  |  |  |  |
Net income |  |  |  |  | $ | 49,098 |  |  | $ | 61,494 |  |  | $ | 3,600 |
Less: Accretion of redeemable convertible preferred stock |  |  |  |  | — |  |  | — |  |  | (1,480) |
Less: Undistributed earnings attributable to participating securities |  |  |  |  | — |  |  | — |  |  | (168) |
Net income attributable to Class A and Class B common stockholders |  |  |  |  | $ | 49,098 |  |  | $ | 61,494 |  |  | $ | 1,952 |
Weighted average shares of Class A and Class B common stock outstanding |  |  |  |  | 100,730 |  |  | 114,272 |  |  | 102,230 |
Net income per share attributable to Class A and Class B common stockholders, basic |  |  |  |  | $ | 0.49 |  |  | $ | 0.54 |  |  | $ | 0.02 |
The Company computes diluted net income per share under the two-class method where income is reallocated between common stock, potential common stock and participating securities. Potential common stock primarily includes stock options and RSUs computed using the treasury stock method and the conversion of the convertible notes and accrued interest using the if converted method. The following table presents the Company’s diluted net income per share (in thousands, except per share amounts):
|  |  | Year Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Net income per share, diluted: |  |  |  |  |  |  |  |  |
Numerator: |  |  |  |  |  |  |  |  |
Net income attributable to Class A and Class B common stockholders |  |  |  |  | $ | 49,098 |  |  | $ | 61,494 |  |  | $ | 1,952 |
Add: |  |  |  |  |  |  |  |  |
Reallocation of net income attributable to participating securities |  |  |  |  | — |  |  | — |  |  | 18 |
Net income attributable to Class A and Class B common stockholders, diluted |  |  |  |  | $ | 49,098 |  |  | $ | 61,494 |  |  | $ | 1,970 |
Denominator: |  |  |  |  |  |  |  |  |
Weighted average shares of Class A and Class B common stock outstanding, basic |  |  |  |  | 100,730 |  |  | 114,272 |  |  | 102,230 |
Effect of dilutive securities: |  |  |  |  |  |  |  |  |
Options to purchase common stock |  |  |  |  | 4,761 |  |  | 6,943 |  |  | 12,471 |
Unvested restricted stock units |  |  |  |  | 267 |  |  | 183 |  |  | 725 |
Employee stock purchase plan |  |  |  |  | 23 |  |  | — |  |  | 12 |
Unvested early exercise common stock |  |  |  |  | — |  |  | — |  |  | 33 |
Weighted average shares of Class A and Class B common stock outstanding, diluted |  |  |  |  | 105,781 |  |  | 121,398 |  |  | 115,471 |
Net income per share attributable to Class A and Class B common stockholders, diluted |  |  |  |  | $ | 0.46 |  |  | $ | 0.51 |  |  | $ | 0.02 |
The following table presents the weighted average number of potentially dilutive common stock equivalents excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive (in thousands):
|  |  | Year Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Options to purchase common stock |  |  |  |  | 5 |  |  | 71 |  |  | 3 |
Unvested restricted stock units |  |  |  |  | 6,247 |  |  | 5,681 |  |  | 153 |
Convertible notes with related parties, if converted basis |  |  |  |  | — |  |  | — |  |  | 1,226 |
Employee stock purchase plan |  |  |  |  | 124 |  |  | 240 |  |  | 45 |
Total shares excluded from diluted net income per share |  |  |  |  | 6,376 |  |  | 5,992 |  |  | 1,427 |
The CEO Performance Award is excluded from the above table because none of the market conditions had been met as of December 31, 2023. Additionally, in December 2023, the Company entered into the Cancellation Agreement with the CEO, which provided for the cancellation of the 1.4 million market-based RSUs included in the CEO Performance Award. For more information on the Cancellation Agreement, please see Note 15.

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