Net Income Per ShareThe computation of net income per share is as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2024 | | 2023 | | 2022 |
| (in thousands, except share and per share amounts) | | | | | |
| Basic earnings per share: | | | | | |
| Net income | $ | 62,830 | | | $ | 53,636 | | | $ | 60,666 | |
| Shares used in computation: | | | | | |
| Weighted-average common shares outstanding, basic | 215,105,815 | | | 216,892,525 | | | 214,458,284 | |
| Earnings per share, basic | $ | 0.29 | | | $ | 0.25 | | | $ | 0.28 | |
| | | | | |
| Diluted earnings per share: | | | | | |
| Net income | $ | 62,830 | | | $ | 53,636 | | | $ | 60,666 | |
| Shares used in computation: | | | | | |
| Weighted-average common shares outstanding, basic | 215,105,815 | | | 216,892,525 | | | 214,458,284 | |
| Weighted-average effect of potentially dilutive securities: | | | | | |
| Unvested common stock subject to forfeiture | 285,686 | | | 1,840,180 | | | 5,621,136 | |
| Employee stock options | — | | | 48,889 | | | 23,100 | |
| Restricted stock units | 254,005 | | | 940,469 | | | 486,269 | |
| | | | | |
| Diluted weighted-average common shares outstanding | 215,645,506 | | | 219,722,063 | | | 220,588,789 | |
| Diluted earnings per share | $ | 0.29 | | | $ | 0.24 | | | $ | 0.28 | |
The following potentially dilutive shares were excluded from the computation of diluted earnings per share for the periods presented because including them would have had an anti-dilutive effect:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2024 | | 2023 | | 2022 |
| | | | | |
| | | | | |
| Employee stock options | 2,947,503 | | | 2,999,085 | | | 3,142,911 | |
| Restricted stock units | 5,909,923 | | | 4,435,957 | | | 5,742,284 | |
| Unvested Class B common stock subject to forfeiture | 113,578 | | | 415,402 | | | 831,952 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.