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Net Income Per Share
 3 Months Ended
Mar. 31, 2024
Net Income Per Share [Abstract]  
Net Income Per Share
3 -
Net Income 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 per share. The two-class method is an earnings allocation formula that determines net income per share separately for each class of common stock based on dividends we have declared and an allocation of our remaining undistributed net income 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 per share for our Class A common stock and our Class B common stock:


   
Three Months Ended March 31,
  
   
2024
    
2023
  
   
Class A
    
Class B
    
Class A
    
Class B
  
   
(in thousands, except per share data)
  
Basic net income per share:
                        
Numerator:
                        
Allocation of net income
  
$
5,039
 
$
917
 
$
4,387
 
$
817
Denominator:
                                
Weighted-average shares outstanding
    
27,811
      
5,577
      
27,193
      
5,577
  
Basic net income per share
  
$
0.18
 
$
0.16
 
$
0.16
 
$
0.15
                                 
Diluted net income per share:
                                
Numerator:
                                
Allocation of net income
  
$
5,039
 
$
917
 
$
4,387
 
$
817
Denominator:
                                
Number of shares used in basic computation
    
27,811
      
5,577
      
27,193
      
5,577
  
Weighted-average shares effect of dilutive securities:
                                
Director and employee stock options
    
35
      
—
      
173
      
—
  
Number of shares used in diluted  computation
    
27,846
      
5,577
      
27,366
      
5,577
  
Diluted net income per share
  
$
0.18
 
$
0.16
 
$
0.16
 
$
0.15
 

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 March 31,
  
   
2024
    
2023
  
                 
Number of options to purchase Class A shares excluded
    
1,693,904
      
2,307,435