v3.25.2
Net Income Per Share
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
Basic and diluted net income per common share is presented in conformity with the two-class method required for participating securities. Basic and diluted net income per share is computed using the weighted-average number of shares of common stock outstanding during the period. The undistributed earnings are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year have been distributed. As the liquidation and
dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B common stock is assumed in the computation of the diluted net income per share of Class A common stock, the undistributed earnings are equal to net income for that computation.
The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Basic net income per share:Class AClass BClass AClass BClass AClass BClass AClass B
Numerator:
Net income$2,450 $197 $40,409 $3,415 $25,257 $2,032 $79,715 $6,740 
Denominator:
Weighted-average shares used in calculating net income per share, basic
320,400 25,785 308,838 26,103 318,989 25,661 307,382 25,991 
Basic net income per share$0.01 $0.01 $0.13 $0.13 $0.08 $0.08 $0.26 $0.26 
Diluted net income per share:
Numerator:
Allocation of distributed income, net of interest expense and related tax
$3,744 $301 $40,409 $3,415 $27,957 $2,249 $79,715 $6,740 
Reallocation of undistributed net income as a result of conversion of Class B to Class A shares
301 — 3,415 — 2,249 — 6,740 — 
Allocation of undistributed income
$4,045 $301 $43,824 $3,415 $30,206 $2,249 $86,455 $6,740 
Denominator:
Number of shares used in basic calculation320,400 25,785 308,838 26,103 318,989 25,661 307,382 25,991 
Weighted-average effect of diluted securities:
Conversion of Class B to Class A common shares outstanding25,785 — 26,103 — 25,661 — 25,991 — 
Employee stock options4,542 — 9,716 — 5,248 — 10,382 — 
Employee stock purchase plan
13 — 26 — 18 — 30 — 
Restricted stock units and performance stock units
2,356 — 3,687 — 3,269 — 4,367 — 
Unvested restricted stock in connection with acquisition213 — 272 — 208 — 400 — 
Shares issuable upon conversion of the 2025 Notes
820 — 8,098 — 3,300 — 8,098 — 
Shares issuable upon conversion of the 2029 Notes
4,596 — — — 4,596 — — — 
Number of shares used in diluted calculation358,725 25,785 356,740 26,103 361,289 25,661 356,650 25,991 
Diluted net income per share$0.01 $0.01 $0.12 $0.13 $0.08 $0.09 $0.24 $0.26 
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):
As of June 30,
20252024
Shares subject to outstanding stock options, RSUs and PSUs4,405 1,017 
Shares subject to the employee stock purchase plan149 104 
Total4,554 1,121 
The Company uses the if-converted method for calculating any potential dilutive effect of the conversion options embedded in the Notes on diluted net income per share.
The Company entered into Capped Calls in connection with the issuance of the Notes. The effect of the Capped Calls was excluded from the calculation of diluted net income per share as the effect of the Capped Calls would have been anti-dilutive. In connection with the maturity of the 2025 Notes, the Company received shares from the relevant option counterparties, which resulted in no dilution to the Company’s Class A common stock.