Earnings Per Share

Basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents (outstanding stock options, restricted stock and restricted stock units) issued and outstanding at the reporting date, using the treasury stock method. Stock options, restricted stock and restricted stock units that are anti-dilutive are excluded from the computation of weighted average shares outstanding.

The following table sets forth the computation of basic and diluted earnings per share:



	Year ended December 31,
	2018		2017		2016
Numerator:
Net income	$	56,726	$	48,888	$	61,733
Denominators:
Basic weighted average common shares outstanding	34,451,008		33,897,916		33,566,367
Dilutive effect of share based awards	579,976		1,212,294		996,952
Diluted weighted average common shares outstanding	35,030,984		35,110,210		34,563,319
Earnings per share attributable to ExlService Holdings, Inc. stockholders:
Basic	$	1.65	$	1.44	$	1.84
Diluted	$	1.62	$	1.39	$	1.79
Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share	121,344		151,961		92,538