Earnings Per Share Attributable to Common Stockholders

3 Months Ended

Mar. 31, 2014

Earnings Per Share Attributable to Common Stockholders

9. Earnings Per Share Attributable to Common Stockholders

Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period without consideration for common stock equivalents. Diluted net income per share attributable to common stockholders is computed by dividing net income by the weighted average number of common shares outstanding during the period and potentially dilutive common stock equivalents, except in cases where the effect of the common stock equivalent would be antidilutive. Potential common stock equivalents consist of common stock issuable upon exercise of stock options using the treasury stock method and common stock issuable upon conversion of the Series A preferred stock. Upon the closing of the IPO, all shares of the Company’s then-outstanding convertible Series A preferred stock automatically converted into an aggregate of 19,284,113 shares of common stock.

The following table presents the calculation of basic and diluted net income per share as of March 31, 2014 and 2013:

	Three Months Ended March 31, 2014						Three Months Ended March 31, 2013
	Income (Numerator)		Shares (Denominator)		Per Share Amount		Income (Numerator)		Shares (Denominator)		Per Share Amount
	(in thousands, except per share data)
Basic EPS
Net income attributable to common stockholders	$	4,353		55,210	$	0.08	$	1,256		31,364	$	0.04
Effect of Dilutive Securities
Preferred Stock		—		19,284				—		11,186
Stock options		—		3,141				—		596
Diluted EPS
Net income attributable to common stockholders	$	4,353		77,635	$	0.06	$	1,256		43,146	$	0.03

For the three months ended March 31, 2014 and 2013, 696,190 and 1,629,427 shares of common stock underlying stock options, respectively, were excluded from the calculation of diluted net income per share attributable to common stockholders because their effect would have been antidilutive.