Earnings Per Share

3 Months Ended

Mar. 31, 2021

Basic and Diluted Earnings Per Share

The components of basic and diluted earnings per share are as follows (in thousands, except share and per share amounts):


	Three Months Ended March 31,
	2021		2020
Net income	$	14,550	$	8,571
Net loss attributable to redeemable noncontrolling interest	280		236
Net income attributable to common stockholders (A)	$	14,830	$	8,807
Weighted average common shares outstanding — basic (B)	49,561,887		48,725,565
Dilutive effect of stock options and restricted stock units	2,177,574		1,521,422
Weighted average common shares outstanding — diluted (C)	51,739,461		50,246,987
Net income per share:
Basic (A/B)	$	0.30	$	0.18
Diluted (A/C)	$	0.29	$	0.18

The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect:


	Three Months Ended March 31,
	2021	2020
Stock options	—	272,876
Restricted stock units	125,191	197,478
Common stock subject to repurchase	—	100

Our redeemable noncontrolling interest relates to our 85% equity ownership interest in OpenEye. The OpenEye stockholder agreement contains a put option that gives the minority OpenEye stockholders the right to sell their OpenEye shares to us based on the fair value of the shares. The OpenEye stockholder agreement also contains a call option that gives us the right to purchase the remaining OpenEye shares from the minority OpenEye stockholders based on the fair value of the shares. The put and call options can each be exercised beginning in the first quarter of 2023. This redeemable noncontrolling interest is considered temporary equity and we report it between liabilities and stockholders’ equity in the condensed consolidated balance sheets. The amount of the net income or loss attributable to redeemable noncontrolling interests is recorded in the condensed consolidated statements of operations.

Since we expect to settle the principal amount on our outstanding 2026 Notes in cash and any excess in cash or shares of our common stock, we use the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread has a dilutive impact on diluted net income per share of common stock when the average market price of our common stock for a given period exceeds the conversion price of $147.19 per share for the 2026 Notes. Based on the initial conversion price and the average market price of our common stock for the three months ended March 31, 2021, there was no dilutive effect of the 2026 Notes on our earnings per share during the three months ended March 31, 2021.