Net Income Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive shares of common stock, which are comprised of outstanding stock options, RSUs, ESPP obligations, the 2022 Notes and the 2022 Warrants. Stock awards with performance or market conditions are included in dilutive shares to the extent all conditions are met. The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, RSUs, ESPP obligations, 2022 Notes and 2022 Warrants are excluded from the computation of diluted net income per share in periods in which the effect would be antidilutive.

The following tables present the calculation of basic and diluted net income per share attributable to common stockholders (in thousands, except per share data):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:
Net income	$	58,396	$	40,766	$	140,835	$	88,997
Denominator:
Weighted-average shares outstanding - basic	197,815		191,319		197,216		190,731
Weighted-average effect of potentially dilutive securities:
Common stock options	297		538		323		647
RSUs	2,913		3,613		3,375		3,791
ESPP obligations	—		11		—		—
2022 Notes	567		3,500		571		3,370
2022 Notes settlements	80		10		151		44
2022 Warrants	602		2,462		610		2,260
Partial settlement of 2022 Warrants	—		—		102		—
Weighted-average shares outstanding - diluted	202,274		201,453		202,348		200,843
Net income per share - basic	$	0.30	$	0.21	$	0.71	$	0.47
Net income per share - diluted	$	0.29	$	0.20	$	0.70	$	0.44

Potentially dilutive securities that are not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Common stock options	89	161	89	161
RSUs	1,619	195	1,658	2,537
ESPP obligations	137	—	137	178
Total potentially dilutive securities	1,845	356	1,884	2,876