Net Income Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Net income per share

Net Income Per Share

We compute basic and diluted net income per share by dividing our net income by the weighted-average number of common shares outstanding during the period. We used the treasury stock method to determine the number of dilutive shares of common stock resulting from the potential exercise of stock options. The statements of condensed consolidated comprehensive income show the computation of net income per share for each period, including the number of weighted-average shares outstanding.

The following table shows the computation of net income per share for each period:

	Three Months Ended March 31,
	2020		2019
	(in thousands)
Numerator:
Net income	$	30,065	$	18,274
Denominator:
Weighted-average shares used to compute basic net income per share	114,575		114,844
Dilutive effect of employee stock options	7,651		9,051
Weighted-average shares used to compute diluted net income per share	122,226		123,895
Net income per share
Basic	$	0.26	$	0.16
Diluted	$	0.25	$	0.15

As of March 31, 2020 and 2019, we had 27.0 million and 24.4 million stock options outstanding, respectively.

Because including them would have reduced dilution, we excluded from the computation of diluted net income per share, on a weighted-average basis, 12.5 million and 8.5 million stock options outstanding during the three months ended March 31, 2020 and 2019, respectively