Net Income per Share (Tables)

9 Months Ended

Sep. 30, 2020

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income	$	6,177	$	9,779	$	21,760	$	25,333
Basic:
Weighted-average shares of common stock outstanding	31,873		31,246		31,800		31,321
Shares used in computing basic net income per share	31,873		31,246		31,800		31,321
Effect of dilutive securities:
Restricted stock subject to vesting	444		694		414		637
Shares issuable for acquisition consideration (1)	310		219		238		239
Shares issuable for conversion of convertible senior notes	22		—		57		—
Shares used in computing diluted net income per share	32,649		32,159		32,509		32,197

Basic net income per share	$	0.19	$	0.31	$	0.68	$	0.81
Diluted net income per share	$	0.19	$	0.30	$	0.67	$	0.79

(1)For the three and nine months ended September 30, 2020, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with RAS & Associates, LLC (“RAS”); (ii) the Asset Purchase Agreement with Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”); (iii) the Asset Purchase Agreement with Stone Temple Consulting Corporation (“Stone Temple”); (iv) the Asset Purchase Agreement with Sundog Interactive, Inc. (“Sundog”); (v) the Asset Purchase Agreement with MedTouch LLC (“MedTouch”); (vi) the Asset Purchase

Agreement with Catalyst Networks, Inc. (“Brainjocks”); and (vii) the Stock Purchase Agreement with the shareholders of Productora de Software S.A.S. (“PSL”), as part of the consideration. For the three and nine months ended September 30, 2019, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with Zeon; (ii) the Asset Purchase Agreement with RAS; (iii) the Asset Purchase Agreement with Southport Services Group, LLC (“Southport”); (iv) the Asset Purchase Agreement with Stone Temple; (v) the Agreement and Plan of Merger with Elixiter, Inc. (“Elixiter”); and (vi) the Asset Purchase Agreement with Sundog, as part of the consideration.

Antidilutive securities excluded from computation of earnings per share

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


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Restricted stock subject to vesting	—	—	139	35
Convertible senior notes	7,942	3,823	4,451	3,823
Warrants related to the issuance of convertible senior notes	8,274	3,823	8,274	3,823
Total anti-dilutive securities	16,216	7,646	12,864	7,681