Basic and Diluted Net Income (Loss) per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Basic and Diluted Net Income (Loss) per Share

Basic and Diluted Net Income (Loss) per Share

The Company uses the two-class method to calculate net income (loss) per share. No dividends were declared or paid for the three and nine months ended September 30, 2024 and 2023. Undistributed earnings for each period are allocated equally to participating securities based on the contractual participation rights of the security to share in the current earnings as if all current period earnings had been distributed. The Company’s basic net income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average shares of common stock outstanding during the period. The Company’s diluted net income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average shares of common stock outstanding and, when dilutive, potential common shares outstanding during the period. The dilutive effect of potential common shares is reflected in diluted net income (loss) per share by application of the treasury stock method.

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders for the three and nine months ended September 30 (in thousands, except share and per share amounts):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
	Class A		Class V		Class A		Class V		Class A		Class V		Class A		Class V
Numerator:
Net income (loss) attributable to common stockholders, basic	$	72,665	$	2,923	$	(7,265)	$	(302)	$	96,114	$	3,899	$	(23,795)	$	(996)
Reallocation of undistributed earnings	229		(229)		—		—		305		(305)		—		—
Net income (loss) attributable to common stockholders, diluted	72,894		2,694		(7,265)		(302)		96,419		3,594		(23,795)		(996)
Denominator:
Weighted average shares outstanding, basic	208,239,520		8,377,623		201,757,058		8,377,623		206,524,417		8,377,623		200,199,280		8,377,623
Effect of dilutive potential common shares	18,452,396		—		—		—		18,247,722		—		—		—
Weighted average shares outstanding, diluted	226,691,916		8,377,623		201,757,058		8,377,623		224,772,139		8,377,623		200,199,280		8,377,623
Basic net income (loss) per share	$	0.35	$	0.35	$	(0.04)	$	(0.04)	$	0.47	$	0.47	$	(0.12)	$	(0.12)
Diluted net income (loss) per share	$	0.32	$	0.32	$	(0.04)	$	(0.04)	$	0.43	$	0.43	$	(0.12)	$	(0.12)

Basic net loss per share is the same as diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2023, because the inclusion of potential shares of common stock would have been anti-dilutive for the periods presented.

The following table discloses weighted-average Class A securities that were not included in the computation of diluted net income (loss) per share as their inclusion would have been anti-dilutive:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
RSUs	237,328	15,506,487	5,727,897	15,270,027
Stock options	62,276	21,114,274	876,877	21,452,808
PRSUs	—	1,104,301	—	869,445
Common stock issued subject to vesting	—	985,410	—	1,213,888
Common stock issuable under the ESPP	—	878,020	—	753,499
Warrants to purchase Class A common stock	—	561,058	—	561,058

There were no Class V securities that were excluded in the computation of diluted net income (loss) per share for the periods presented.