Net Income (Loss) Per Share

We present net income (loss) per share using the two-class method required for multiple classes of common stock. Holders of our Class A and Class B common stock have identical rights except with respect to voting, conversion and transfer rights and therefore share equally in our net income or losses.

We calculate basic net income (loss) per share by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income (loss) per share gives effect to all potential shares of common stock, including stock options, RSAs and RSUs, to the extent these are dilutive. The calculation of diluted net income (loss) of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income (loss) of Class B common stock does not assume the conversion of those shares to Class A common stock.

We calculated basic and diluted net income (loss) per share as follows (in thousands, except per share amounts):


	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023					2024	2023
	Class A		Class B		Class A		Class B				Class A		Class B		Class A		Class B
Basic net income (loss) per share:
Numerator:
Net income (loss)	$	26,835	$	3,721	$	5,847	$	886			$	12,837	$	1,794	$	(205,602)	$	(31,186)
Denominator:
Weighted-average shares used in computing net income (loss) per share, basic	595,867		82,629		581,235		88,026				596,749		83,408		585,973		88,880
Basic net income (loss) per share	$	0.05	$	0.05	$	0.01	$	0.01			$	0.02	$	0.02	$	(0.35)	$	(0.35)
Diluted net income (loss) per share:
Numerator:
Net income (loss)	$	26,835	$	3,721	$	5,847	$	886			$	12,837	$	1,794	$	(205,602)	$	(31,186)
Reallocation of net income as a result of conversion of Class B to Class A common stock	3,721		—		886		—				1,794		—		—		—
Reallocation of net income to Class B common stock	—		(91)		—		(25)				—		(55)		—		—
Diluted net income (loss)	$	30,556	$	3,630	$	6,733	$	861			$	14,631	$	1,739	$	(205,602)	$	(31,186)
Denominator
Weighted-average shares used in computing net income (loss) per share, basic	595,867		82,629		581,235		88,026				596,749		83,408		585,973		88,880
Conversion of Class B to Class A common stock	82,629		—		88,026		—				83,408		—		—		—
Weighted average effect of dilutive potential common stock	16,987		—		17,840		—				21,611		—		—		—
Weighted-average shares used in computing net income (loss) per share, diluted	695,483		82,629		687,101		88,026				701,768		83,408		585,973		88,880
Diluted net income (loss) per share	$	0.04	$	0.04	$	0.01	$	0.01			$	0.02	$	0.02	$	(0.35)	$	(0.35)

Basic net income (loss) per share is the same as diluted net income (loss) per share for the nine months ended September 30, 2023 because we reported a net loss. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net income (loss) per share because these would be anti-dilutive (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023

Outstanding stock options	—	8,553	—	14,750
Unvested restricted stock units and restricted stock awards	13,932	5,327	5,701	53,967



Total	13,932	13,880	5,701	68,717