Earnings Per Share

6 Months Ended

Jun. 30, 2024

Basic and Diluted Earnings Per Share

The components of basic and diluted earnings per share are as follows (in thousands, except share and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
Numerator:	2024		2023		2024		2023
Net income	$	32,520	$	15,611	$	55,924	$	29,818
Net loss attributable to redeemable noncontrolling interests	991		188		1,182		397
Net income attributable to common stockholders - basic (A)	33,511		15,799		57,106		30,215
Add back interest expense, net of tax, attributable to convertible senior notes	1,473		591		2,067		1,181
Net income attributable to common stockholders - diluted (B)	$	34,984	$	16,390	$	59,173	$	31,396
Denominator:
Weighted average common shares outstanding — basic (C)	49,832,503		49,859,615		49,897,884		49,723,012
Dilutive effect of convertible senior notes, stock options and restricted stock units	6,847,852		4,586,660		5,970,163		4,700,035
Weighted average common shares outstanding — diluted (D)	56,680,355		54,446,275		55,868,047		54,423,047
Net income per share:
Basic (A/C)	$	0.67	$	0.32	$	1.14	$	0.61
Diluted (B/D)	$	0.62	$	0.30	$	1.06	$	0.58

The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect:


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Stock options	422,524	602,135	422,524	602,135
Restricted stock units	7,200	253,214	1,700	152,817

Our redeemable noncontrolling interests are related to our 86% equity ownership interests in OpenEye, and our 85% equity ownership interest in Noonlight.

We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share. We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 Notes on net income per share. As a result, we included 3,396,950 shares related to the 2026 Notes within the weighted average shares outstanding when calculating the diluted net income per share for each of the three and six months ended June 30, 2024 and 2023. We included 1,951,484 and 975,742 shares related to the 2029 Notes within the weighted average shares outstanding when calculating the diluted net income per share for each of the three and six months ended June 30, 2024, respectively. Additionally, we included $1.5 million and $2.1 million of interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share for the three and six months ended June 30, 2024, respectively, as compared to $0.6 million and $1.2 million for the same periods in the prior year.

The denominator for diluted net income per share does not include any effect from the capped call transactions we entered into concurrently with the issuance of the 2029 Notes, as this effect would be anti-dilutive. In the event of conversion of the 2029 Notes, shares delivered to us under the capped call will offset the dilutive effect of the shares that we would issue under the 2029 Notes. See Note 12 for further details on our 2029 Notes and the related capped call transactions.