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Net Income (Loss) Per Share
 6 Months Ended
Jun. 30, 2023
Net Income (Loss) Per Share [Abstract]  
Net Income (Loss) Per Share
3 -
Net Income (Loss) Per Share



We have two classes of common stock, which we refer to as our Class A common stock and our Class B common stock. Our certificate of incorporation provides that whenever our board of directors declares a dividend on our Class B common stock, our board of directors shall simultaneously declare a dividend on our Class A common stock that is payable to the holders of our Class A common stock at the same time and as of the same record date at a rate that is at least 10% greater than the rate at which our board of directors declared a dividend on our Class B common stock. Accordingly, we use the two-class method to compute our net income (loss) per share. The two-class method is an earnings allocation formula that determines net income (loss) per share separately for each class of common stock based on dividends we have declared and an allocation of our remaining undistributed net income (loss) using a participation percentage that reflects the dividend rights of each class. The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income (loss) per share for our Class A common stock and our Class B common stock:

   
Three Months Ended June 30,
  
   
2023
    
2022
  
   
Class A
    
Class B
    
Class A
    
Class B
  
   
(in thousands, except per share data)
  
Basic net income (loss) per share:
                        
Numerator:
                        
Allocation of net income (loss)
  
$
1,694
 
$
303
 
$
(6,866
)
  
$
(1,342
)
Denominator:
                                
Weighted-average shares outstanding
    
27,382
      
5,577
      
26,070
      
5,577
  
Basic net income (loss) per share
  
$
0.06
 
$
0.05
 
$
(0.26
)
  
$
(0.24
)
                                 
Diluted net income (loss) per share:
                                
Numerator:
                                
Allocation of net income (loss)
  
$
1,694
 
$
303
 
$
(6,866
)
  
$
(1,342
)
Denominator:
                                
Number of shares used in basic computation
    
27,382
      
5,577
      
26,070
      
5,577
  
Weighted-average shares effect of dilutive securities:
                                
Director and employee stock options
    
107
      
—
      
—
      
—
  
Number of shares used in diluted computation
    
27,489
      
5,577
      
26,070
      
5,577
  
Diluted net income (loss) per share
  
$
0.06
 
$
0.05
 
$
(0.26
)
  
$
(0.24
)

   
Six Months Ended June 30,
  
   
2023
    
2022
  
   
Class A
    
Class B
    
Class A
    
Class B
  
   
(in thousands, except per share data)
  
Basic net income per share:
                        
Numerator:
                        
Allocation of net income
  
$
6,085
 
$
1,116
 
$
4,140
    
$
797
  
Denominator:
                                
Weighted-average shares outstanding
    
27,288
      
5,577
      
25,929
      
5,577
  
Basic net income per share
  
$
0.22
 
$
0.20
 
$
0.16
    
$
0.14
  
                                 
Diluted net income per share:
                                
Numerator:
                                
Allocation of net income
  
$
6,085
 
$
1,116
 
$
4,140
    
$
797
  
Denominator:
                                
Number of shares used in basic computation
    
27,288
      
5,577
      
25,929
      
5,577
  
Weighted-average shares effect of dilutive securities:
                                
Director and employee stock options
    
140
      
—
      
123
      
—
  
Number of shares used in diluted computation
    
27,428
      
5,577
      
26,052
      
5,577
  
Diluted net income per share
  
$
0.22
 
$
0.20
 
$
0.16
    
$
0.14
  


We did not include outstanding options to purchase the following number of shares of Class A common stock in our computation of diluted net income per share because the exercise price of the options exceeded the average market price of our Class A common stock during the applicable periods.

 
Three Months Ended June 30,
  
Six Months Ended June 30,
  
 
2023
  
2022
  
2023
  
2022
  
                         
Number of options to purchase Class A shares excluded
    
2,262,435
      
—
      
2,262,435
      
731,600
  



We did not include any effect of dilutive securities in the computation of diluted net income (loss) per share for the three months ended June 30, 2022 because we sustained a net loss for the period.