Net Income per Share

6 Months Ended

Jun. 30, 2022

The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders for the periods presented:


(in thousands, except share and per share amounts)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2022		2021		2022
Numerator:
Net income attributable to stockholders	$	3,397	$	11,571	$	4,025	$	17,807
Less: Undistributed amounts allocated to participating securities	14		—		17		—
Undistributed income allocated to stockholders	$	3,383	$	11,571	$	4,008	$	17,807
Denominator:
Weighted average number of shares outstanding, basic	88,826,919		94,024,970		88,717,890		93,996,553
Weighted average additional shares assuming conversion of potential common shares	86,256		5,319,593		85,058		5,269,115
Weighted average common shares outstanding - diluted	88,913,175		99,344,563		88,802,948		99,265,668
Net income per share attributable to stockholders, basic	$	0.04	$	0.12	$	0.05	$	0.19
Net income per share attributable to stockholders, diluted	$	0.04	$	0.12	$	0.05	$	0.18

In December 2020, the Company issued 370,182 shares of common stock to employees and consideration was made in the form of promissory notes between the employee and the Company. The promissory notes were partially secured by the underlying shares of common stock. The promissory notes were partial-recourse, but treated as non-recourse for accounting purposes and, as such, (i) each of these purchases of common stock with a promissory note was accounted for as if it were a stock option grant and (ii) no receivable for amounts due under the promissory notes was recorded on the Company’s consolidated balance sheets. The promissory notes were forgivable upon (i) a change in control or (ii) the first public filing of a registration statement with the SEC in connection with an initial public offering. On August 4, 2021, the Company approved the forgiveness and cancellation of the outstanding indebtedness of each promissory note holder prior to the IPO. On August 16, 2021, pursuant to the terms of the promissory notes, the principal amount on each loan, together with all accrued and unpaid interest, were forgiven. Prior to the forgiveness of the promissory notes in August 2021, the Company’s participating securities included shares of common stock issued in exchange for promissory notes that were being treated as fully vested outstanding stock options and were excluded from the denominator of basic earnings per share. As of June 30, 2022, the forgiven promissory notes are reflected as an issuance of common stock and are included in the denominator of basic earnings per share.

The following potentially dilutive outstanding securities were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive for the periods presented, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period:


	Three and Six Months Ended June 30,
	2021	2022
Stock options	8,478,246	8,827,083
Common stock issued in exchange for promissory notes	370,182	—
Restricted Stock Awards	—	2,719,936
Restricted Stock Units	—	42,704