Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2018

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share information):



	Year Ended December 31,
	2018		2017		2016
Net income	$	24,559	$	18,581	$	20,459
Basic:
Weighted-average shares of common stock outstanding	32,415		33,016		34,023
Shares used in computing basic net income per share	32,415		33,016		34,023

Effect of dilutive securities:
Restricted stock subject to vesting	672		488		493
Contingently issuable shares (1)	—		—		2
Shares issuable for acquisition consideration (2)	415		562		483
Shares used in computing diluted net income per share	33,502		34,066		35,001

Basic net income per share	$	0.76	$	0.56	$	0.60
Diluted net income per share	$	0.73	$	0.55	$	0.58


(1)	For the year ended December 31, 2016, this represents the shares issued to Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”) pursuant to the Asset Purchase Agreement.

(2)

For the year ended December 31, 2018, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm Systems, Inc. (“BioPharm”); (ii) the Asset Purchase Agreement with Zeon; (iii) the Asset Purchase Agreement with RAS & Associates, LLC (“RAS”); (iv) the Asset Purchase Agreement with Clarity Consulting, Inc. and Truth Labs, LLC (together, “Clarity”); (v) the Asset Purchase Agreement with Southport Services Group, LLC (“Southport”); (vi) the Asset Purchase Agreement with Stone Temple Consulting Corporation (“Stone Temple”); and (vii) the Agreement and Plan of Merger with Elixiter, Inc. (“Elixiter”), as part of the consideration. For the year ended December 31, 2017, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm; (ii) the Asset Purchase Agreement with Zeon; (iii) the Asset Purchase Agreement with The Pup Group, Inc. d/b/a Enlighten (“Enlighten”); (iv) the Asset Purchase Agreement with RAS; and (v) the Asset Purchase Agreement with Clarity, as part of the consideration. For the year ended December 31, 2016, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm; (ii) the Asset Purchase Agreement with Zeon; (iii) the Stock Purchase Agreement for Market Street Solutions, Inc. (“Market Street”); and (iv) the Asset Purchase Agreement with Enlighten, as part of the consideration.

Schedule of Antidilutive Securities

The number of anti-dilutive securities not included in the calculation of diluted net income per share were as follows (in thousands):



	Year Ended December 31,
	2018	2017	2016
Restricted stock subject to vesting	31	88	—
Convertible senior notes	3,823	—	—
Warrants related to the issuance of convertible senior notes	3,823	—	—
Total anti-dilutive securities	7,677	88	—