Net Income per Share (Tables)

9 Months Ended

Sep. 30, 2021

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,
	2021		2020		2021		2020
Net income	$	17,396	$	6,177	$	47,562	$	21,760
Basic:
Weighted-average shares of common stock outstanding	31,987		31,873		31,925		31,800
Shares used in computing basic net income per share	31,987		31,873		31,925		31,800
Effect of dilutive securities:
Restricted stock subject to vesting	613		444		536		414
Shares issuable for acquisition consideration (1)	66		310		166		238
Shares issuable for conversion of convertible senior notes	2,252		22		1,515		57
Shares issuable for exercise of warrants	975		—		35		—
Shares used in computing diluted net income per share	35,893		32,649		34,177		32,509

Basic net income per share	$	0.54	$	0.19	$	1.49	$	0.68
Diluted net income per share	$	0.48	$	0.19	$	1.39	$	0.67

(1)For the three and nine months ended September 30, 2021, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”); (ii) the Asset Purchase Agreement with MedTouch LLC (“MedTouch”); (iii) the Asset Purchase Agreement with Catalyst Networks, Inc. (“Brainjocks”); (iv) the Stock Purchase Agreement with the shareholders of Productora de Software S.A.S. (“PSL”); and (v) the Purchase Agreement with Talos (as defined in Note 9 - Business Combinations), as part of the consideration. 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; (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; (vi) the Asset Purchase Agreement with Brainjocks; and (vii) the Stock Purchase Agreement with the shareholders of PSL, 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,
	2021	2020	2021	2020
Restricted stock subject to vesting	—	—	—	139
Convertible senior notes	—	7,942	—	4,451
Warrants related to the issuance of convertible senior notes	—	8,274	4,451	8,274
Total anti-dilutive securities	—	16,216	4,451	12,864