Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings per share (“EPS”) of Class A and Class B Common Stock amounts are computed using the two‑class method required for participating securities and using the if‑converted method for the convertible senior notes in accordance with ASU 2020‑06.

The Company issues certain restricted stock awards 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 June 30, 2021, there were 99,808 participating securities outstanding. As of June 30, 2020, there were no participating securities outstanding.

Undistributed earnings allocated to participating securities are subtracted from net income in determining basic net income attributable to common stockholders. Basic EPS 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.

For the Company’s diluted EPS numerator, interest expense, net of tax, attributable to the conversion of the convertible senior notes is added back to basic net income attributable to common stockholders. For the Company’s diluted EPS denominator, the basic weighted average number of shares is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans and ESPP, and by the dilutive effect of the assumed conversion of the convertible senior notes. Diluted EPS 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, earnings per share would not differ under the two‑class method.

The details of basic and diluted EPS are as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Numerator:
Net income	$	44,910	$	39,076	$	101,916	$	68,745
Less: Net income attributable to participating securities	(3)		—		(3)		—
Net income attributable to Class A and Class B common stockholders, basic	44,907		39,076		101,913		68,745
Add: Interest expense, net of tax, attributable to assumed conversion of convertible senior notes	841		—		1,430		—
Net income attributable to Class A and Class B common stockholders, diluted	$	45,748	$	39,076	$	103,343	$	68,745

Denominator:
Weighted average shares, basic	304,066,038		286,945,592		303,311,423		286,068,766
Dilutive effect of stock options, restricted stock, and RSUs	9,389,339		8,241,602		10,388,725		9,526,468
Dilutive effect of ESPP	110,355		—		112,360		—
Dilutive effect of assumed conversion of convertible senior notes	10,912,354		—		9,281,537		—
Weighted average shares, diluted	324,478,086		295,187,194		323,094,045		295,595,234

Net income per share, basic	$	0.15	$	0.14	$	0.34	$	0.24
Net income per share, diluted	$	0.14	$	0.13	$	0.32	$	0.23

The following potential common shares were excluded from the calculation of diluted net income per share attributable to common stockholders because their effect would have been anti‑dilutive for the periods presented:


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2021	2020	2021	2020
Stock options, restricted stock, and RSUs	495,368	—	495,368	—
Total anti-dilutive securities	495,368	—	495,368	—