Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2020

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


	Year Ended December 31,
	2020		2019		2018
Net income	$	30,181	$	37,125	$	24,559
Basic:
Weighted-average shares of common stock outstanding	31,793		31,344		32,415
Shares used in computing basic net income per share	31,793		31,344		32,415

Effect of dilutive securities:
Restricted stock subject to vesting	417		673		672
Shares issuable for conversion of convertible senior notes	52		—		—
Shares issuable for acquisition consideration (1)	254		226		415
Shares used in computing diluted net income per share	32,516		32,243		33,502

Basic net income per share	$	0.95	$	1.18	$	0.76
Diluted net income per share	$	0.93	$	1.15	$	0.73

(1)For the year ended December 31, 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 year ended December 31, 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. 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; (iv) the Asset Purchase Agreement with Clarity Consulting, Inc. and Truth Labs, LLC (together, “Clarity”); (v) the Asset Purchase Agreement with Southport; (vi) the Asset Purchase Agreement with Stone Temple; and (vii) the Agreement and Plan of Merger with Elixiter, 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,
	2020	2019	2018
Restricted stock subject to vesting	2	26	31
Convertible senior notes	4,451	3,823	3,823
Warrants related to the issuance of convertible senior notes	8,275	3,823	3,823
Total anti-dilutive securities	12,728	7,672	7,677