Net Income Per Share

3 Months Ended

Mar. 31, 2021

Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive shares of common stock, which are comprised of outstanding stock options, RSUs, ESPP obligations, the 2022 Notes and the 2022 Warrants. Stock awards with performance or market conditions are included in dilutive shares to the extent all conditions are met. The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, RSUs, ESPP obligations, 2022 Notes and 2022 Warrants are excluded from the computation of diluted net income per share in periods in which the effect would be antidilutive.

The following tables present the calculation of basic and diluted net income per share attributable to common stockholders (in thousands, except per share data):


	Three Months Ended March 31,
	2021		2020
Numerator:
Net income	$	82,440	$	48,231
Denominator:
Weighted-average shares outstanding - basic	196,624		190,163
Weighted-average effect of potentially dilutive securities:
Common stock options	351		756
RSUs	3,671		3,751



2022 Notes	748		3,229
2022 Notes settlements	50		10
2022 Warrants	618		2,029
Partial settlement of 2022 Warrants	206		—
Weighted-average shares outstanding - diluted	202,268		199,938
Net income per share - basic	$	0.42	$	0.25
Net income per share - diluted	$	0.41	$	0.24

Potentially dilutive securities that are not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows (in thousands):


	Three Months Ended March 31,
	2021	2020
Common stock options	36	161
RSUs	1,748	2,494
ESPP obligations	144	178
Total potentially dilutive securities	1,928	2,833