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OPERATING SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
OPERATING SEGMENT INFORMATION OPERATING SEGMENT INFORMATION
The Company has two reportable segments, which are intended to align with the manner in which the business is managed: Cloud and Edge, and IP Optical Networks.

The Cloud and Edge segment provides secure and reliable software and hardware products, solutions and services for enabling Voice over Internet Protocol ("VoIP") communications, Voice over Long-Term Evolution ("VoLTE") and Voice Over 5G ("VoNR") communications and Unified Communications and Collaboration ("UC&C") within service provider and enterprise networks and from the cloud. The Cloud and Edge products are increasingly software-centric and cloud-native for deployment on private, public or hybrid cloud infrastructures, in data centers, on enterprise premises and within service provider networks. Ribbon's Cloud and Edge product portfolio consists of our Session Border Controller ("SBC") products and our Network Transformation ("NTR") products.

The IP Optical Networks segment provides high-performance, secure solutions for IP networking and optical transport, supporting wireless networks including 5G, metro and edge aggregation, core networking, data center interconnect, legacy network transformation and transport solutions for wholesale carriers. This portfolio is offered to service provider, enterprise and industry verticals with critical transport network infrastructures including utilities, government, defense, transportation, and education and research.

The Company has not provided segment asset information as such information is not provided to the CODM and accordingly, asset information is not used in assessing segment performance. Segment revenue and expense included in the tables below represent direct revenue and expense attributable to each segment. Please see Note 10 for information regarding the allocation of goodwill between segments.

The CODM utilizes revenue and adjusted gross profit to measure and assess each segment's performance. The Company calculates adjusted gross profit by excluding from cost of revenue: amortization of acquired technology, stock-based compensation, acquisition-related inventory adjustments and acquisition-related facilities adjustments, and may also exclude other items in future periods that the Company believes are not part of the Company's core business. Adjusted gross profit is not a financial measure determined in accordance with U.S. GAAP, may not be comparable to similarly titled measures used by other companies, and should not be considered a substitute for gross profit or other results reported in accordance with U.S. GAAP. See below for a reconciliation of adjusted gross profit to gross profit which is the most directly comparable U.S. GAAP measure.

The tables below provide revenue, adjusted gross profit and depreciation expense by reportable segment for the years ended December 31, 2022, 2021 and 2020 (in thousands):
Year ended December 31,
Revenue202220212020
Segment revenue:
  Cloud and Edge$508,137 $556,656 $583,270 
  IP Optical Networks311,623 288,301 260,525 
    Total revenue$819,760 $844,957 $843,795 

Year ended December 31,
Adjusted gross profit202220212020
Segment adjusted gross profit:
  Cloud and Edge$330,395 $370,504 $385,137 
  IP Optical Networks104,711 114,496 110,845 
    Total segment adjusted gross profit435,106 485,000 495,982 
Stock-based compensation expense(2,628)(1,997)(875)
Amortization of acquired technology(31,542)(38,343)(42,290)
Acquisition-related inventory and facilities adjustments— — (2,000)
     Gross profit$400,936 $444,660 $450,817 
Year ended December 31,
Depreciation expense202220212020
Segment depreciation expense:
  Cloud and Edge$10,758 $12,269 $12,111 
  IP Optical Networks4,537 4,693 5,077 
    Total depreciation expense$15,295 $16,962 $17,188