Net Income (Loss) per Share

3 Months Ended

Mar. 31, 2025

4. Net Income (Loss) per Share

We compute net income (loss) per share of Class A and Class B common stock using the two-class method required for multiple classes of common stock and participating securities. Prior to our initial public offering (“IPO”) in March 2024, our participating securities included Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, Series F, and Series F-1 convertible preferred stock, as the holders of these series of preferred stock were entitled to receive noncumulative dividends subject to certain requirements at an annual rate of 8% of the respective original issue price then in effect in the event that a dividend was paid on common stock.

In connection with our IPO, our Series A, Series A-1, Series B, Series C, Series D, Series D-1, Series E, and Series F preferred stock converted on a one-to-one basis into 67,917,432 shares of Class B common stock, and our Series F-1 preferred stock converted on a one-to-one basis into 5,104,017 shares of Class A common stock. These shares are weighted in the denominator of net income (loss) per share for Class A and Class B common stock for the portion of the time outstanding subsequent to our IPO.

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stock:


	Three months ended March 31,
	2025				2024
	Class A		Class B		Class A		Class B
	(in thousands, except share and per share data)
Basic net income (loss) per share attributable to common stockholders:
Numerator:
Net income (loss) attributable to common stockholders	$	18,214	$	7,944	$	(92,094)	$	(482,972)
Denominator:
Basic weighted-average common shares outstanding	126,746,933		55,277,274		11,248,688		58,991,804
Basic income (loss) per share attributable to common stockholders	$	0.14	$	0.14	$	(8.19)	$	(8.19)
Diluted net income (loss) per share attributable to common stockholders:
Numerator:
Net income (loss) attributable to common stockholders	$	18,974	$	7,184	$	(92,094)	$	(482,972)
Denominator:
Basic weighted-average common shares outstanding	126,746,933		55,277,274		11,248,688		58,991,804
Weighted-average effect of dilutive potential common stock	19,251,016		—		—		—
Shares used in computation of diluted net income (loss) per share attributable to common stockholders	145,997,949		55,277,274		11,248,688		58,991,804
Diluted net income (loss) per share attributable to common stockholders	$	0.13	$	0.13	$	(8.19)	$	(8.19)

The following outstanding potentially dilutive shares, including stock options that have been exercised prior to vesting, were excluded from the computation of diluted net income (loss) per share attributable to common stock for the periods presented because the impact of including them would have been anti-dilutive.


	Three months ended March 31,
	2025		2024
	Class A	Class B		Class A	Class B
Stock options	—	—		19,365,137	6,418,074
Unvested RSUs and RSAs	143,904	—		14,758,638	1,372,694
	143,904	—		34,123,775	7,790,768