Net Income per Share

6 Months Ended

Jun. 30, 2024

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income, basic	$	17,438	$	26,362	$	28,993	$	53,162
Add back interest expense on convertible notes, net of tax	551		573		1,088		1,133
Net income, diluted	$	17,989	$	26,935	$	30,081	$	54,295

Basic:
Weighted-average shares of common stock outstanding	34,353		33,988		34,251		33,951
Shares used in computing basic net income per share	34,353		33,988		34,251		33,951
Effect of dilutive securities:
Restricted stock and performance stock awards subject to vesting	173		133		175		144
Shares issuable for acquisition consideration (1)	116		166		132		182
Shares issuable for conversion of convertible senior notes	2,430		2,430		2,430		2,430

Shares used in computing diluted net income per share	37,072		36,717		36,988		36,707

Basic net income per share	$	0.51	$	0.78	$	0.85	$	1.57
Diluted net income per share	$	0.49	$	0.73	$	0.81	$	1.48

(1)For the three and six months ended June 30, 2024, 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 Purchase Agreement with Talos LLC, Talos Digital LLC, Talos Digital SAS and TCOMM SAS (collectively, “Talos”); (iii) the Stock Purchase Agreement with the shareholders of Izmul S.A. (“Overactive”); (iv) the Purchase Agreement with the shareholders of Ameex Technologies Corporation (“Ameex”); and (v) the Purchase Agreement with the shareholders of SMEDIX, Inc. (“SMEDIX”), as part of the consideration. For the three and six months ended June 30, 2023, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with Zeon; (ii) the Asset Purchase Agreement with Catalyst Networks, Inc. (“Brainjocks”); (iii) the Stock Purchase Agreement with the shareholders of Productora de Software S.A.S. (“PSL”); (iv) the Purchase Agreement with Talos; (v) the Stock Purchase Agreement with the shareholders of Overactive; (vi) the Stock Purchase Agreement with the shareholders of Inflection Point Systems, Inc.; and (vii) the Purchase Agreement with the shareholders of Ameex, as part of the consideration.

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		Six Months Ended
	June 30,		June 30,
	2024	2023	2024	2023
Restricted stock and performance stock awards subject to vesting	121	144	115	210

Warrants related to the issuance of convertible senior notes	2,431	2,431	2,431	2,431
Total anti-dilutive securities	2,552	2,575	2,546	2,641

See Note 12, Long-term Debt for further information on the convertible senior notes and warrants related to the issuance of convertible notes.

The Company’s Board of Directors authorized the repurchase of up to $375.0 million of Company common stock through a stock repurchase program expiring December 31, 2024. The program could be suspended or discontinued at any time, based on market, economic, or business conditions. The timing and amount of repurchase transactions will be determined by management based on its evaluation of market conditions, share price, and other factors. Since the program’s inception on August 11, 2008, the Company has repurchased approximately $291.1 million (16.5 million shares) of outstanding common stock through June 30, 2024.