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Share-Based Compensation
 9 Months Ended
Sep. 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
September 30,		Nine Months Ended
September 30,
 2022202120222021
Cost of revenues$8,464 $8,311 $26,161 $20,722 
Research and development21,830 24,636 68,310 58,958 
Sales and marketing37,548 39,736 116,389 98,083 
General and administrative27,816 31,743 82,917 76,986 
Total share-based compensation expense$95,658 $104,426 $293,777 $254,749 
A summary of share-based compensation expense by award type is as follows (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
 2022202120222021
Options$— $— $— $1 
Employee stock purchase plan rights1,058 1,963 5,486 7,071 
Restricted stock units94,600 102,463 288,291 247,677 
Total share-based compensation expense$95,658 $104,426 $293,777 $254,749 
Equity Incentive Plans
As of September 30, 2022, a total of 21,457,413 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 September 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, 2021154 $9.12 0.9$27,465 
Exercised(122)8.28 
Canceled/Forfeited— — 
Outstanding at September 30, 202232 $12.31 0.7$880 
Vested and expected to vest as of September 30, 202232 $12.31 0.7$880 
Exercisable as of September 30, 202232 $12.31 0.7$880 
There were no options granted during the three and nine months ended September 30, 2022 and 2021. The total intrinsic value of options exercised during the three months ended September 30, 2022 was immaterial, and during the three months ended 2021 was $47.2 million. The total intrinsic value of options exercised during the nine months ended September 30, 2022 and 2021 was $13.3 million and $122.5 million, 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 September 30, 2022, there was a total of $0.8 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 0.1 years. As of September 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 September 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, 20212,851 $258.26 $534,186 
Granted4,038 91.07 
Released(1,901)146.75 
Canceled/Forfeited(811)223.23 
Outstanding at September 30, 20224,177 $154.19 $166,932 
As of September 30, 2022, there was a total of $490.9 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 2.7 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 nine months ended September 30, 2022, the Company issued 242,356 and 519,755 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.