Net Income per Share

3 Months Ended

Mar. 31, 2022

Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed based on the weighted average number of common shares outstanding plus the effect of potentially dilutive common shares outstanding during the period using the applicable methods. The potentially dilutive common shares during the three months ended March 31, 2022 and 2021 were time-based restricted stock units. The potentially dilutive common shares during the same periods did not include unvested stock options and performance-based restricted stock units containing unmet performance conditions. The potentially dilutive common shares are included in the calculation of diluted net income per share only when their effect is dilutive.

The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
	2022		2021
	(in thousands, except shares and per share data)
Basic net income per share:
Numerator
Net income attributable to common stockholders	$	23,154	$	12,862
Denominator
Weighted average common shares	126,215,698		126,803,096
Basic net income per share attributable to common stockholders	$	0.18	$	0.10

Diluted net income per share:
Numerator
Net income attributable to common stockholders	$	23,154	$	12,862
Denominator
Basic weighted average common shares	126,215,698		126,803,096
Dilutive effect of outstanding Time-Based Restricted Stock Units	499		34,736
Diluted weighted average common shares	126,216,197		126,837,832
Diluted net income per share attributable to common stockholders	$	0.18	$	0.10

The following potentially dilutive outstanding securities as of March 31, 2022 and 2021 were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive for the periods presented, or issuance of such shares is contingent upon the satisfaction of certain conditions that were not satisfied by the end of the periods:


	Three Months Ended March 31,
	2022	2021
Unvested and not exercised Stock Options	188,540	199,764
Unvested Time-Based Restricted Stock Units	459,431	—
Unvested Performance-Based Restricted Stock Units	94,415	99,289
Total	742,386	299,053

Pursuant to a Stock Repurchase Agreement, dated as of March 29, 2021, between Open Lending and the selling stockholders named therein, the Company repurchased from the selling stockholders on April 6, 2021 an aggregate of 612,745 shares of common stock. The repurchased shares were recorded as treasury stock in April 2021. The repurchase would have changed the number of common shares or potential common shares outstanding at the end of the current reporting period if the transaction had occurred before March 31, 2021.