Summary of Significant Accounting Policies

Schedule of common stock equivalents, as calculated in accordance with the treasury-stock method

The following table sets forth the computation of basic and diluted earnings per share for the three months ended September 30, 2023. There was a net loss in all other periods presented, and as such, no loss was allocated to participating securities pursuant to the two class method for those periods.


	Three Months Ended
	September 30,
	2023
Numerator:
Net income	$	30,748
Allocation of earnings to participating securities		(2,276)
Numerator for basic EPS — income available to common stockholders (A)	$	28,472
Effect of dilutive securities:
Add back allocation of earnings to participating securities	$	2,276
Reallocation of earnings to participating securities considering potentially dilutive securities		(2,171)
Numerator for diluted EPS — income available to common stockholders (C)	$	28,577
Denominator:
Denominator for basic EPS — weighted average shares (B)		273,341
Effect of dilutive securities:
Common stock equivalents		14,249
Denominator for diluted EPS — adjusted weighted average shares (D)		287,590

Basic EPS (A / B)	$	0.10
Diluted EPS (C / D)	$	0.10

The Company’s common stock equivalents, as calculated in accordance with the treasury-stock method for options and unvested restricted stock units and the if-converted method for the Series A Convertible Preferred Stock, are shown in the following table (in thousands):


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2023	2022	2023	2022
Options outstanding to purchase common stock, shares issuable under the employee stock purchase plan, and unvested restricted stock units at end of period	29,927	31,479	29,927	31,479
Common stock equivalents under treasury stock method for options, shares issuable under the employee stock purchase plan, and unvested restricted stock units	14,249	2,246	10,671	1,437
Common stock equivalents under if-converted method for Series A Convertible Preferred Stock	21,853	—	21,853	—

Summary of stock option activity

A summary of option activity under the Company’s equity plans for the nine months ended September 30, 2023 is presented below (in thousands, except weighted-average data):


		Weighted-
	Number	Average
	of Stock	Exercise
	Options	Price
Outstanding at December 31, 2022	33,126	$	5.76
Granted	6,316		6.71
Exercised	(9,121)		5.05
Forfeited/Canceled	(2,653)		6.30
Outstanding at September 30, 2023	27,668	$	6.15