Net Income Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator:
Net income	$	62,890	$	12,858	$	203,725	$	101,855
Denominator:
Weighted-average shares outstanding - basic	198,600		193,237		197,680		193,203
Weighted-average effect of potentially dilutive securities:
Common stock options	295		460		314		577
RSUs	2,981		4,165		3,359		4,062
2022 Notes	556		1,258		539		1,148
2022 Notes settlements	25		1,260		138		2,057
2022 Warrants	667		996		631		827
Partial settlement of 2022 Warrants	—		485		68		963
Weighted-average shares outstanding - diluted	203,124		201,861		202,729		202,837
Net income per share - basic	$	0.32	$	0.07	$	1.03	$	0.53
Net income per share - diluted	$	0.31	$	0.06	$	1.00	$	0.50

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 September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Common stock options	36	—	36	—
RSUs	102	75	1,430	341
ESPP obligations	209	224	209	224
Total potentially dilutive securities	347	299	1,675	565