11. Net Earnings Per Share

Basic net income per share attributable to common stockholders is calculated by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. The Company adjusts its net income attributable to common stockholders to reflect the impact of deemed dividends recorded for convertible preferred stock during the period.

The Company’s convertible preferred stock was entitled to receive noncumulative dividends, prior and in preference to any declaration or payment of any dividend on common stock and thereafter participate pro rata on an as-converted basis with the common stockholders in any distributions to common stockholders and were therefore considered to be participating securities. As a result, the Company calculated the net income per share using the two-class method. Accordingly, the net income attributable to common stockholders is derived from the net income for the period and, in periods in which the Company has net income attributable to common stockholders, an adjustment is made for the allocations of undistributed earnings to participating securities based on their outstanding stockholder rights. Under the two-class method, the net income attributable to common stockholders is not allocated to the convertible preferred stock as the convertible preferred stockholders did not have a contractual obligation to share in the Company’s losses.

Diluted net income attributable to common stockholders is computed by adjusting income attributable to common stockholders to allocate undistributed earnings based on the potential impact of dilutive securities, including outstanding stock options, convertible preferred stock, convertible preferred stock warrants, and common stock warrants. Diluted net income per share attributable to common stockholders is computed by dividing the diluted net income attributable to common stockholders by the weighted average number of common shares outstanding for the period, including common stock equivalents. In periods when the Company has incurred a net loss, convertible preferred stock, options to purchase common stock, convertible preferred stock warrants, and common stock warrants are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive.

A reconciliation of net income available to common stockholders and the number of shares in the calculation of basic and diluted net loss per share follows (in thousands, except share and per share amounts):


	Three Months Ended
	March 31
	2020		2019
Basic earnings per common share:
Numerator:
Net income	$	4,057	$	2,521
Less:
Deemed dividends on convertible preferred stock		—		(2,098)
Undistributed earnings to participating securities		—		(392)
Net income attributable to common stockholders	$	4,057	$	31

Denominator:
Weighted-average shares used in computing basic net income per share attributable to common stockholders		84,537,538		5,156,755
Basic net income per share attributable to common stockholders	$	0.05	$	0.01

Diluted earnings per common share:
Numerator:
Net income attributable to common stockholders	$	4,057	$	31
Adjustments to undistributed earnings of participating securities		—		48
Diluted net income attributable to common stockholders	$	4,057	$	79

Denominator:
Weighted-average shares used in computing diluted net income per share attributable to common stockholder		84,537,538		5,156,755
Effect of dilutive securities		15,127,620		9,964,173
Weighted-average shares used in computing diluted net income per share attributable to common stockholders		99,665,158		15,120,928
Diluted net income per share attributable to common stockholders	$	0.04	$	0.01

The following weighted-average outstanding shares of potentially dilutive securities were excluded from the computation of diluted loss per share attributable to common stockholders for the period presented because including them would have been antidilutive:


	Three Months Ended
	March 31,
	2020	2019
Redeemable convertible preferred stock	—	65,428,088
Options to purchase common stock	256,679	9,964,173
Restricted stock units	115,741	—
Warrants to purchase common stock	—	96,198
Warrants to purchase convertible preferred stock	—	1,050,217
Total	372,420	76,538,676