Earnings Per Share Attributable to Common Stockholders

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share Attributable to Common Stockholders

10. 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 attributable to common stockholders for the three months ended September 30, 2014 and 2013:

	Three Months Ended September 30, 2014						Three Months Ended September 30, 2013
	Income		Shares		Per  Share		Income			Shares		Per  Share
	(Numerator)		(Denominator)		Amount		(Numerator)			(Denominator)		Amount
	(in thousands, except per share data)
Net income	$	6,453					$	2,054
Preferred stock tax distributions		—						(425	)
Basic EPS
Net income attributable to common stockholders		6,453		79,426	$	0.08		1,629			45,072	$	0.04
Effect of Dilutive Securities
Preferred stock		—		—				425			15,902
Stock options		—		3,345				—			2,140
Diluted EPS
Net income attributable to common stockholders	$	6,453		82,771	$	0.08	$	2,054			63,114	$	0.03

The following table presents the calculation of basic and diluted net income per share attributable to common stock holders for the nine months ended September 30, 2014 and 2013:

	Nine Months Ended September 30, 2014							Nine Months Ended September 30, 2013
	Income			Shares		Per  Share		Income			Shares		Per  Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
	(in thousands, except per share data)
Net income	$	13,498						$	5,133
Preferred stock tax distributions		(320	)						(1,073	)
Basic EPS
Net income attributable to common stockholders		13,178			70,893	$	0.19		4,060			35,936	$	0.11
Effect of Dilutive Securities
Preferred stock		320			6,640				1,073			12,758
Stock options		—			3,293				—			1,248
Diluted EPS
Net income attributable to common stockholders	$	13,498			80,826	$	0.17	$	5,133			49,942	$	0.10

For the three and nine months ended September 30, 2014, 233,983 shares of common stock underlying stock options were excluded from the calculation of diluted net income per share attributable to common stockholders in each period because their effect would have been antidilutive. For the three and nine months ended September 30, 2013, 476,328 shares of common stock underlying stock options were excluded in each period because their effect would have been antidilutive.