Net Income Per Share

9 Months Ended

Sep. 30, 2023

4. Net Income Per Share

Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is calculated by dividing net income by the sum of the weighted average number of shares of common stock and potentially dilutive securities outstanding during the period using the treasury stock method. For the periods in which the Company incurs a net loss, the dilutive effect of the Company’s outstanding common stock equivalents is not included in the calculation as the effect would be anti-dilutive. The following table sets forth the computation of basic and diluted net income per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands, except share and per share amounts)
Numerator:
Net income	$	11,530	$	6,770	$	19,992	$	15,708
Denominator:
Weighted average shares outstanding, basic		167,546,450		164,427,770		166,940,589		163,195,976
Effect of potential dilutive shares		2,722,942		4,795,024		3,109,404		5,868,039
Weighted average shares outstanding, diluted		170,269,392		169,222,794		170,049,993		169,064,015
Net income per share, basic	$	0.07	$	0.04	$	0.12	$	0.10
Net income per share, diluted	$	0.07	$	0.04	$	0.12	$	0.09

The Company excluded the following potential shares of common stock, presented based on amounts outstanding at each period end, from the computation of diluted net income per share for the periods indicated because including them would have had an anti-dilutive effect:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Options to purchase shares		304,976		383,666		313,462		473,392
Unvested restricted stock units		2,776,295		1,535,412		1,686,442		913,466
Total		3,081,271		1,919,078		1,999,904		1,386,858