Quarterly report pursuant to Section 13 or 15(d)

Net Income Per Share

v3.21.1
Net Income Per Share
3 Months Ended
Mar. 31, 2021
Net Income Per Share  
Net Income Per Share

4.

Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period and the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Potentially dilutive securities include stock options, restricted stock units and shares issuable under our stock award plans. The dilutive effect of these potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities.

The following table sets forth the computation of basic and diluted earnings per share (in thousands except per share amounts):

Three Months Ended 

March 31, 

    

2021

    

2020

EPS Numerator:

Net income

$

39,500

$

21,243

EPS Denominator—Basic:

Weighted-average common shares outstanding

 

169,800

 

168,469

EPS Denominator—Diluted:

Weighted-average common shares outstanding

 

169,800

 

168,469

Dilutive effect of stock options, restricted stock units and shares under ESPP

 

6,269

 

99

Weighted-average shares outstanding and common stock equivalents

 

176,069

 

168,568

Net income per common share, basic and diluted

Basic

$

0.23

$

0.13

Diluted

$

0.22

$

0.13

The potential shares of common stock that were excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive are as follows: (in thousands):

Three Months Ended 

March 31, 

2021

    

2020

Outstanding stock options

8,183

23,206

Restricted stock units

2

Total

8,185

23,206