NET INCOME PER COMMON SHARE

3 Months Ended

Mar. 31, 2022

Potentially issuable shares of common stock include shares issuable upon the exercise of outstanding employee stock option awards, common stock issuable under the Company’s Employee Share Purchase Plan (ESPP), unvested RSUs, the Company’s common stock held by the NQDC and contingent issuances of common stock related to the Company’s convertible debt.

The following table sets forth the computation of basic and diluted earnings per common share (common shares in thousands):


	Three Months Ended March 31,
		2022		2021
Numerator:
Net Income, basic		$	120,798	$	17,371
Add: Interest expense, net of tax, on convertible notes		2,763		—
Net Income, diluted		$	123,561	$	17,371
Denominator:
Weighted-average common shares outstanding, basic		183,990		181,772
Effect of dilutive securities:
Options to purchase common stock		564		1,010
Common stock issuable under the 2027 Notes		4,365		—
Common stock issuable under the 2024 Notes		3,970		—
Unvested RSUs		1,517		1,031
Common stock potentially issuable for ESPP purchases		307		359
The Company’s common stock held by the NQDC		173		193
Weighted-average common shares outstanding, diluted		194,886		184,365
Net income per common share, basic		$	0.66	$	0.10
Net income per common share, diluted		$	0.63	$	0.09

In addition to the equity instruments included in the table above, the table below presents potential shares of common stock that were excluded from the computation of basic and diluted income per common share as they were anti-dilutive (in thousands):


	Three Months Ended March 31,
		2022	2021
Options to purchase common stock		6,206	6,217

Common stock issuable under the 2027 Notes		—	4,365
Common stock issuable under the 2024 Notes		—	3,970
Unvested RSUs		4,463	3,920
Common stock potentially issuable for ESPP purchases		258	301

Total number of potentially issuable shares		10,927	18,773