EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2024

Basic earnings per share (“basic EPS”) and diluted earnings per share (“diluted EPS”) attributable to common stockholders is calculated in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to twenty votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock.

Basic EPS attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. For the calculation of diluted EPS, net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities. Diluted EPS attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares.

As the economic rights of Class A and Class B common stock are identical, undistributed earnings are allocated on a proportionate basis and presented on a combined basis. The following table sets forth the computation of basic and diluted

EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding for the three and six months ended June 30, 2024 and 2023 (in thousands, except share and per share amounts):


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Numerator:
Net income	$	1,100	$	4,582	$	2,535	$	6,491
Denominator:
Weighted-average shares—basic	170,393,480		167,423,656		170,158,479		167,100,292
Effect of dilutive stock options	9,217,557		14,818,670		9,913,735		14,831,121
Effect of dilutive restricted stock	77,487		1,090,234		122,969		1,163,537
Weighted-average shares—diluted	179,688,524		183,332,560		180,195,183		183,094,950

Earnings per share:
Basic earnings per share	$	0.01	$	0.03	$	0.01	$	0.04
Effect of dilutive stock options and restricted stock	—		(0.01)		—		—
Diluted earnings per share	$	0.01	$	0.02	$	0.01	$	0.04

The Company excluded the following weighted average common equivalent shares from the computation of diluted earnings per share for the three and six months ended June 30, 2024 and 2023 because including them would have had an anti-dilutive effect:


	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Stock options to purchase common stock	22,069,783	11,303,495	22,343,742	10,198,597
Restricted stock units	5,063,315	2,287,331	2,384,577	2,030,447