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Share-Based Compensation | 6 Months Ended
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Jun. 30, 2022
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation | Note 9. Share-Based Compensation A summary of share-based compensation expense recognized in the Condensed Consolidated Statements of Operations is as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Cost of revenues | $ | 8,650 |  |  | $ | 7,669 |  |  | $ | 17,697 |  |  | $ | 12,411 |
Research and development | 23,282 |  |  | 21,133 |  |  | 46,480 |  |  | 34,322 |
Sales and marketing | 38,964 |  |  | 37,004 |  |  | 78,841 |  |  | 58,347 |
General and administrative | 29,615 |  |  | 29,555 |  |  | 55,101 |  |  | 45,243 |
Total share-based compensation expense | $ | 100,511 |  |  | $ | 95,361 |  |  | $ | 198,119 |  |  | $ | 150,323 |
A summary of share-based compensation expense by award type is as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Options | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Employee stock purchase plan rights | 2,012 |  |  | 3,085 |  |  | 4,428 |  |  | 5,108 |
Restricted stock units | 98,499 |  |  | 92,276 |  |  | 193,691 |  |  | 145,214 |
Total share-based compensation expense | $ | 100,511 |  |  | $ | 95,361 |  |  | $ | 198,119 |  |  | $ | 150,323 |
Equity Incentive Plans As of June 30, 2022, a total of 22,594,284 shares remained available for grant under the RingCentral, Inc. Amended and Restated 2013 Equity Incentive Plan (“2013 Plan”). A summary of option activity under all of the Company’s equity incentive plans as of June 30, 2022 and changes during the period then ended is presented in the following table:
| Number of Options Outstanding (in thousands) |  | Weighted- Average Exercise Price Per Share |  | Weighted- Average Contractual Term (in Years) |  | Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2021 | 154 |  |  | $ | 9.12 |  |  | 0.9 |  | $ | 27,465 |
Exercised | (122) |  |  | 8.29 |  |  |  |  |
Canceled/Forfeited | — |  |  | — |  |  |  |  |
Outstanding at June 30, 2022 | 32 |  |  | $ | 12.27 |  |  | 1.0 |  | $ | 1,284 |
Vested and expected to vest as of June 30, 2022 | 32 |  |  | $ | 12.27 |  |  | 1.0 |  | $ | 1,284 |
Exercisable as of June 30, 2022 | 32 |  |  | $ | 12.27 |  |  | 1.0 |  | $ | 1,284 |
There were no options granted during the three and six months ended June 30, 2022 and 2021. The total intrinsic value of options exercised during the three months ended June 30, 2022 and 2021 were $1.8 million and $38.0 million, respectively, and $13.3 million and $75.4 million for the six months ended June 30, 2022 and 2021, respectively. There is no remaining unamortized share-based compensation expense. Employee Stock Purchase Plan The Company's Employee Stock Purchase Plan (“ESPP”) allows eligible employees to purchase shares of the Company’s Class A Common Stock at a discounted price through payroll deductions. As of June 30, 2022, there was a total of $2.0 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to the ESPP, which will be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately 0.4 years. As of June 30, 2022, a total of 6,202,244 shares were available for issuance under the ESPP. Restricted Stock Units The 2013 Plan provides for the issuance of restricted stock units (“RSUs”) to employees, directors, and consultants. RSUs issued under the 2013 Plan generally vest over four years. A summary of activity of RSUs under the 2013 Plan as of June 30, 2022, and changes during the period then ended is presented in the following table:
| Number of RSUs Outstanding (in thousands) |  | Weighted- Average Grant Date Fair Value Per Share |  | Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2021 | 2,851 |  |  | $ | 258.26 |  |  | $ | 534,186 |
Granted | 2,542 |  |  | 115.35 |  |  |
Released | (1,164) |  |  | 162.67 |  |  |
Canceled/Forfeited | (451) |  |  | 244.44 |  |  |
Outstanding at June 30, 2022 | 3,778 |  |  | $ | 193.21 |  |  | $ | 197,450 |
As of June 30, 2022, there was a total of $550.0 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to RSUs, which will be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately 2.9 years. Bonus Plan The Company's board of directors (the "Board") adopted employee equity bonus plans (the “Bonus Plans”), which allow the recipients to earn fully vested shares of the Company’s Class A Common Stock upon the achievement of quarterly service and performance conditions. During the three and six months ended June 30, 2022, the Company issued 196,295 and 277,399 RSUs, respectively, under the Bonus Plans. The total requisite service period of each quarterly award is approximately 0.4 years. The unrecognized share-based compensation expense was approximately $5.0 million, which will be recognized over the remaining service period of 0.1 years. The shares issued under the Bonus Plans will be issued from the reserve of shares available for issuance under the 2013 Plan.

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