Earnings Per Share

12 Months Ended

Dec. 31, 2022

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):


	Year Ended December 31,
Numerator:	2022		2021		2020
Net income	$	55,631	$	51,175	$	76,660
Net loss attributable to redeemable noncontrolling interests	707		1,084		1,193

Net income attributable to common stockholders - basic (A)	$	56,338	$	52,259	$	77,853
Add back interest expense, net of tax, attributable to convertible senior notes	2,352		—		—
Net income attributable to common stockholders - diluted (B)	$	58,690	$	52,259	$	77,853
Denominator:
Weighted average common shares outstanding — basic (C)	49,926,236		49,869,857		48,950,328
Dilutive effect of convertible senior notes, stock options and restricted stock units	5,006,521		2,050,045		2,012,862
Weighted average common shares outstanding — diluted (D)	54,932,757		51,919,902		50,963,190
Net income per share:
Basic (A/C)	$	1.13	$	1.05	$	1.59
Diluted (B/D)	$	1.07	$	1.01	$	1.53

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:


	Year Ended December 31,
	2022	2021	2020
Stock options	393,042	142,660	158,515
Restricted stock units	242,842	11,630	62,194

Our redeemable noncontrolling interests relate to our 85% equity ownership interest in OpenEye and Noonlight. See Note 2 and Note 7 for details on the put options and call options contained in the OpenEye and Noonlight stockholder agreements.

Prior to the adoption of ASU 2020-06, since we expected to settle the principal amount on our outstanding 2026 Notes in cash and any excess in cash or shares of our common stock, we used 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 had 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 exceeded 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 year ended December 31, 2021, there was no dilutive effect of the 2026 Notes on our earnings per share during the year ended December 31, 2021.

Upon adoption of ASU 2020-06 on January 1, 2022, we began using the if-converted method when calculating the dilutive impact of the 2026 Notes on net income per share. As a result, we included 3,396,950 shares related to the 2026 Notes within the weighted average shares outstanding when calculating the diluted net income per share for the year ended December 31, 2022. Additionally, we included $2.4 million of debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share for the year ended December 31, 2022.