RINGCENTRAL, INC., 10-Q filed on 8/7/2023
Quarterly Report
v3.23.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2023
Aug. 01, 2023
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2023  
Document Transition Report false  
Entity File Number 001-36089  
Entity Registrant Name RingCentral, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 94-3322844  
Entity Address, Address Line One 20 Davis Drive  
Entity Address, City or Town Belmont  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94002  
City Area Code 650  
Local Phone Number 472-4100  
Title of each class Class A Common Stock  
Trading Symbol(s) RNG  
Name of each exchange on which registered NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001384905  
Current Fiscal Year End Date --12-31  
Class A common stock    
Document Information [Line Items]    
Entity Common Stock Outstanding (in shares)   84,760,029
Class B common stock    
Document Information [Line Items]    
Entity Common Stock Outstanding (in shares)   9,924,538
v3.23.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Current assets    
Cash and cash equivalents $ 225,351 $ 269,984
Accounts receivable, net 322,191 311,318
Deferred and prepaid sales commission costs 170,536 158,865
Prepaid expenses and other current assets 85,465 55,849
Total current assets 803,543 796,016
Property and equipment, net 185,806 185,400
Operating lease right-of-use assets 31,339 35,433
Deferred and prepaid sales commission costs, non-current 403,714 438,579
Goodwill 54,575 54,335
Acquired intangibles, net 457,434 528,051
Other assets 23,949 35,848
Total assets 1,960,360 2,073,662
Current liabilities    
Accounts payable 36,739 62,721
Accrued liabilities 308,402 380,113
Current portion of long-term debt, net 20,000 0
Deferred revenue 227,211 209,725
Total current liabilities 592,352 652,559
Long-term debt, net 1,558,794 1,638,411
Operating lease liabilities 16,596 20,182
Other long-term liabilities 65,010 45,848
Total liabilities 2,232,752 2,357,000
Commitments and contingencies (Note 8)
Series A convertible preferred stock 199,449 199,449
Stockholders' deficit    
Common stock 9 10
Additional paid-in capital 1,143,124 1,059,880
Accumulated other comprehensive loss (5,197) (8,781)
Accumulated deficit (1,609,777) (1,533,896)
Total stockholders' deficit (471,841) (482,787)
Total liabilities, temporary equity and stockholders’ deficit $ 1,960,360 $ 2,073,662
v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Revenues        
Total revenues $ 539,305 $ 486,896 $ 1,072,994 $ 954,552
Cost of revenues        
Total cost of revenues 164,417 158,190 325,093 313,664
Gross profit 374,888 328,706 747,901 640,888
Operating expenses        
Research and development 80,280 96,518 165,521 186,792
Sales and marketing 264,443 265,398 524,655 519,853
General and administrative 75,227 74,554 157,318 145,549
Total operating expenses 419,950 436,470 847,494 852,194
Loss from operations (45,062) (107,764) (99,593) (211,306)
Other income (expense), net        
Interest expense (5,118) (1,203) (7,330) (2,435)
Other income (expense) 35,651 (49,500) 41,080 (94,719)
Other income (expense), net 30,533 (50,703) 33,750 (97,154)
Loss before income taxes (14,529) (158,467) (65,843) (308,460)
Provision for income taxes 6,953 1,048 10,038 2,027
Net loss $ (21,482) $ (159,515) $ (75,881) $ (310,487)
Net loss per common share        
Basic (in dollars per share) $ (0.23) $ (1.68) $ (0.79) $ (3.27)
Diluted (in dollars per share) $ (0.23) $ (1.68) $ (0.79) $ (3.27)
Weighted-average number of shares used in computing net loss per share        
Basic (in shares) 95,339 95,130 95,528 94,854
Diluted (in shares) 95,339 95,130 95,528 94,854
Subscriptions        
Revenues        
Total revenues $ 513,632 $ 462,984 $ 1,021,926 $ 902,911
Cost of revenues        
Total cost of revenues 136,067 131,022 272,492 260,711
Other        
Revenues        
Total revenues 25,673 23,912 51,068 51,641
Cost of revenues        
Total cost of revenues $ 28,350 $ 27,168 $ 52,601 $ 52,953
v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net loss $ (21,482) $ (159,515) $ (75,881) $ (310,487)
Other comprehensive income (loss)        
Foreign currency translation adjustments, net (1,570) (8,182) 190 (10,244)
Unrealized gain on derivative instruments 3,394 0 3,394 0
Comprehensive loss $ (19,658) $ (167,697) $ (72,297) $ (320,731)
v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative effect of accounting change
Common Stock
Additional Paid-in Capital
Additional Paid-in Capital
Cumulative effect of accounting change
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Accumulated Deficit
Cumulative effect of accounting change
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2021     94,309          
Stockholders' equity, beginning balance at Dec. 31, 2021 $ 338,967 $ (235,454) $ 9 $ 1,086,870 $ (329,280) $ 644 $ (748,556) $ 93,826
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings (in shares)     588          
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings (120)     (120)        
Share-based compensation 98,424     98,424        
Changes in comprehensive (loss) income (2,062)         (2,062)    
Net loss (150,972)           (150,972)  
Stockholders' equity, ending balance (in shares) at Mar. 31, 2022     94,897          
Stockholders' equity, ending balance at Mar. 31, 2022 48,783   $ 9 855,894   (1,418) (805,702)  
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2021     94,309          
Stockholders' equity, beginning balance at Dec. 31, 2021 338,967 $ (235,454) $ 9 1,086,870 $ (329,280) 644 (748,556) $ 93,826
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (310,487)              
Stockholders' equity, ending balance (in shares) at Jun. 30, 2022     95,318          
Stockholders' equity, ending balance at Jun. 30, 2022 (37,689)   $ 9 937,119   (9,600) (965,217)  
Stockholders' equity, beginning balance (in shares) at Mar. 31, 2022     94,897          
Stockholders' equity, beginning balance at Mar. 31, 2022 48,783   $ 9 855,894   (1,418) (805,702)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings (in shares)     842          
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings 7,827     7,827        
Repurchases of common stock (in shares)     (421)          
Repurchases of common stock (25,004)     (25,004)        
Share-based compensation 98,402     98,402        
Changes in comprehensive (loss) income (8,182)         (8,182)    
Net loss (159,515)           (159,515)  
Stockholders' equity, ending balance (in shares) at Jun. 30, 2022     95,318          
Stockholders' equity, ending balance at Jun. 30, 2022 (37,689)   $ 9 937,119   (9,600) (965,217)  
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2022     95,385          
Stockholders' equity, beginning balance at Dec. 31, 2022 (482,787)   $ 10 1,059,880   (8,781) (1,533,896)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings (in shares)     1,108          
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings (1,641)     (1,641)        
Issuance of common stock in connection with commercial arrangements (in shares)     1,265          
Issuance of common stock in connection with strategic partnership arrangement 42,585     42,585        
Repurchases of common stock (in shares)     (2,160)          
Repurchases of common stock (74,776)     (74,776)        
Share-based compensation 97,303     97,303        
Changes in comprehensive (loss) income 1,760         1,760    
Net loss (54,399)           (54,399)  
Stockholders' equity, ending balance (in shares) at Mar. 31, 2023     95,598          
Stockholders' equity, ending balance at Mar. 31, 2023 (471,955)   $ 10 1,123,351   (7,021) (1,588,295)  
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2022     95,385          
Stockholders' equity, beginning balance at Dec. 31, 2022 (482,787)   $ 10 1,059,880   (8,781) (1,533,896)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (75,881)              
Stockholders' equity, ending balance (in shares) at Jun. 30, 2023     94,684          
Stockholders' equity, ending balance at Jun. 30, 2023 (471,841)   $ 9 1,143,124   (5,197) (1,609,777)  
Stockholders' equity, beginning balance (in shares) at Mar. 31, 2023     95,598          
Stockholders' equity, beginning balance at Mar. 31, 2023 (471,955)   $ 10 1,123,351   (7,021) (1,588,295)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings (in shares)     1,978          
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings 8,542     8,542        
Issuance of common stock in connection with commercial arrangements (in shares)     428          
Issuance of common stock in connection with strategic partnership arrangement 12,429     12,429        
Repurchases of common stock (in shares)     (3,320)          
Repurchases of common stock (100,506)   $ (1) (100,505)        
Share-based compensation 99,307     99,307        
Changes in comprehensive (loss) income 1,824         1,824    
Net loss (21,482)           (21,482)  
Stockholders' equity, ending balance (in shares) at Jun. 30, 2023     94,684          
Stockholders' equity, ending balance at Jun. 30, 2023 $ (471,841)   $ 9 $ 1,143,124   $ (5,197) $ (1,609,777)  
v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities    
Net loss $ (75,881) $ (310,487)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 115,556 122,201
Share-based compensation 202,851 198,119
Unrealized loss on investments 1,646 98,045
Amortization of deferred and prepaid sales commission costs 65,160 50,068
Amortization of debt discount and issuance costs 2,398 2,232
Gain on early extinguishment of debt (31,107) 0
Reduction of operating lease right-of-use assets 10,175 9,857
Provision for bad debt 4,940 7,103
Other (1,632) 1,736
Changes in assets and liabilities:    
Accounts receivable (15,813) (27,832)
Deferred and prepaid sales commission costs (62,153) (108,349)
Prepaid expenses and other assets (2,773) (1,984)
Accounts payable (38,890) 28,494
Accrued and other liabilities 17,459 20,147
Deferred revenue 17,486 30,594
Operating lease liabilities (10,198) (10,271)
Net cash provided by operating activities 199,224 109,673
Cash flows from investing activities    
Purchases of property and equipment (13,160) (15,489)
Capitalized internal-use software (25,964) (26,232)
Purchases of intangible assets and long-term investments 0 (3,990)
Net cash used in investing activities (39,124) (45,711)
Cash flows from financing activities    
Proceeds from issuance of stock in connection with stock plans 10,887 10,889
Payments for taxes related to net share settlement of equity awards (3,986) (3,182)
Payments for repurchase of common stock (174,570) (25,004)
Proceeds from issuance of term loan, net of issuance costs 394,394 0
Payments for repurchase of convertible senior notes (427,304) 0
Repayment of financing obligations (3,291) (3,092)
Payment of contingent consideration (973) (1,538)
Net cash used in financing activities (204,843) (21,927)
Effect of exchange rate changes 110 (2,700)
Net increase (decrease) in cash, cash equivalents, and restricted cash (44,633) 39,335
Cash, cash equivalents, and restricted cash    
Beginning of period 269,984 267,162
End of period 225,351 306,497
Supplemental disclosure of cash flow data:    
Cash paid for interest 3,429 220
Cash paid for income taxes, net of refunds 7,654 1,717
Non-cash investing and financing activities    
Common stock issued in connection with strategic partnership arrangement 55,014 0
Equipment and capitalized internal-use software purchased and unpaid at period end 3,452 9,599
Equipment acquired under financing obligations $ 2,997 $ 0
v3.23.2
Description of Business and Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Summary of Significant Accounting Policies
Note 1. Description of Business and Summary of Significant Accounting Policies
Description of Business
RingCentral, Inc. (the “Company”) is a provider of software-as-a-service (“SaaS”) solutions that enables businesses to communicate, collaborate and connect. The Company was incorporated in California in 1999 and was reincorporated in Delaware on September 26, 2013.
Basis of Presentation and Consolidation
The Company’s unaudited condensed consolidated financial statements and accompanying notes reflect all adjustments (all of which are normal, recurring in nature and those discussed in these notes) that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending December 31, 2023. Certain information and note disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”).
The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 23, 2023.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The significant estimates made by management affect revenues, the allowance for doubtful accounts, deferred and prepaid sales commission costs, goodwill, useful lives of intangible assets, share-based compensation, capitalization of internally developed software, return reserves, derivative instruments, provision for income taxes, uncertain tax positions, loss contingencies, sales tax liabilities and accrued liabilities. Management periodically evaluates these estimates and will make adjustments prospectively based upon the results of such periodic evaluations. Actual results may differ from these estimates.
Segment Information
The Company has determined that the chief executive officer is the chief operating decision maker. The Company’s chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment.
Concentrations
As of June 30, 2023 and December 31, 2022, none of the Company’s customers accounted for more than 10% of the Company’s total accounts receivable.
Long-lived assets by geographic location are based on the location of the legal entity that owns the asset. As of June 30, 2023 and December 31, 2022, approximately 94% of the Company’s consolidated long-lived assets were located in the U.S. No other single country outside of the U.S. represented more than 10% of the Company’s consolidated long-lived assets.
Significant Accounting Policies
The Company’s significant accounting policies are described in Company’s Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes to these policies that have had a material impact on the condensed consolidated financial statements and related notes for the three and six months ended June 30, 2023, other than the derivative instruments and hedging policy described below.
Derivative Instruments and Hedging
The Company measures its derivative financial instruments at fair value and recognizes them as assets and liabilities in the Condensed Consolidated Balance Sheets. The Company records changes in the fair value of derivative financial instruments designated as cash flow hedges in other comprehensive income (loss). When a hedged transaction affects earnings, the Company subsequently reclassifies the net derivative gain or loss within earnings into the same line as the hedged item on the Condensed Consolidated Statements of Operations to offset the changes in the hedged transaction.
The cash flow effects related to derivative financial instruments designated as cash flow hedges are included within operating activities on the Condensed Consolidated Statements of Cash Flows.
Recent Accounting Pronouncements Not Yet Adopted
There are no material recent accounting pronouncements not yet adopted during the three and six months ended June 30, 2023 that are significant or potentially significant to the Company.
v3.23.2
Revenue
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue
Note 2. Revenue
The Company derives its revenues primarily from subscriptions, sale of products, and professional services. Revenues are recognized when control is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
Disaggregation of revenue
The following table provides information about disaggregated revenue by primary geographical markets:
Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Primary geographical markets    
North America90 %90 %90 %90 %
Others10 10 10 10 
Total revenues100 %100 %100 %100 %
The Company derived over 90% of subscriptions revenues from RingCentral MVP and RingCentral customer engagement solutions products for each of the three and six months ended June 30, 2023 and 2022. For the three and six months ended June 30, 2023 and 2022, RingCentral customer engagement solutions represented over 10% of total revenues.
Deferred revenue
During the three and six months ended June 30, 2023, the Company recognized revenue of $43.0 million and $169.2 million, respectively, that was included in the corresponding deferred revenue balance at the beginning of the year.
Remaining performance obligations
The typical subscription contract term ranges from one month to five years. Contract revenue as of June 30, 2023 that has not yet been recognized was approximately $2.3 billion. This excludes contracts with an original expected length of less than one year. Of these remaining performance obligations, the Company expects to recognize revenue of 53% of this balance over the next 12 months and 47% thereafter.
Other revenues
Other revenues are primarily comprised of product revenue from the sale of pre-configured phones and professional services. Product revenues from the sale of pre-configured phones were $11.5 million and $11.2 million for the three months ended June 30, 2023 and 2022, respectively, and $21.8 million and $22.6 million for the six months ended June 30, 2023 and 2022, respectively.
v3.23.2
Financial Statement Components
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Statement Components
Note 3. Financial Statement Components
Cash and cash equivalents consisted of the following (in thousands):
June 30, 2023December 31, 2022
Cash$81,690 $88,153 
Money market funds143,661 181,831 
Total cash and cash equivalents$225,351 $269,984 
As of June 30, 2023 and December 31, 2022, $1.1 million and $5.5 million in the cash balance above, respectively, represents restricted cash, which is held in the form of a bank deposit for issuance of a foreign bank guarantee.
Accounts receivable, net consisted of the following (in thousands):
June 30, 2023December 31, 2022
Accounts receivable$242,947 $242,650 
Unbilled accounts receivable90,761 78,249 
Allowance for doubtful accounts(11,517)(9,581)
Accounts receivable, net$322,191 $311,318 
Prepaid expenses and other current assets consisted of the following (in thousands):
June 30, 2023December 31, 2022
Prepaid expenses$34,914 $23,306 
Inventory1,126 1,209 
Other current assets49,425 31,334 
Total prepaid expenses and other current assets$85,465 $55,849 
Property and equipment, net consisted of the following (in thousands):
June 30, 2023December 31, 2022
Computer hardware and software$232,193 $221,727 
Internal-use software development costs228,711 199,642 
Furniture and fixtures8,836 8,937 
Leasehold improvements13,955 13,889 
Total property and equipment, gross483,695 444,195 
Less: accumulated depreciation and amortization(297,889)(258,795)
Property and equipment, net$185,806 $185,400 
Total depreciation and amortization expense related to property and equipment was $20.5 million and $17.6 million for the three months ended June 30, 2023 and 2022, respectively, and $40.8 million and $34.5 million for the six months ended June 30, 2023 and 2022, respectively.
The carrying value of goodwill is as follows (in thousands):
Balance at December 31, 2022$54,335 
Foreign currency translation adjustments240 
Balance at June 30, 2023$54,575 
The carrying values of intangible assets are as follows (in thousands):
June 30, 2023December 31, 2022
Weighted-Average Remaining Useful LifeCostAccumulated
Amortization and Impairment		Acquired
Intangibles, Net		CostAccumulated
Amortization and Impairment		Acquired
Intangibles, Net
Customer relationships
0.3 years
$20,954 $20,230 $724 $20,855 $19,090 $1,765 
Developed technology
3.3 years
818,737 362,027 456,710 814,614 288,328 526,286 
Total acquired intangible assets$839,691 $382,257 $457,434 $835,469 $307,418 $528,051 
Amortization expense from acquired intangible assets for the three months ended June 30, 2023 and 2022 was $37.5 million and $43.7 million, respectively, and $74.7 million and $87.7 million for the six months ended June 30, 2023 and 2022, respectively. Amortization of developed technology is included in cost of revenues and amortization of customer relationships is included in sales and marketing expenses in the Condensed Consolidated Statements of Operations.
Estimated amortization expense for acquired intangible assets for the following fiscal years is as follows (in thousands):
2023 (remaining)$74,594 
2024135,159 
2025134,289 
2026112,980 
2027 onwards412 
Total estimated amortization expense$457,434 
Accrued liabilities consisted of the following (in thousands):
June 30, 2023December 31, 2022
Accrued compensation and benefits$42,175 $53,419 
Accrued sales, use, and telecom related taxes39,181 37,836 
Accrued marketing and sales commissions58,667 127,940 
Operating lease liabilities, short-term16,992 17,513 
Other accrued expenses151,387 143,405 
Total accrued liabilities$308,402 $380,113 
Deferred and Prepaid Sales Commission Costs
Amortization expense for the deferred and prepaid sales commission costs was $32.9 million and $26.9 million for the three months ended June 30, 2023 and 2022, respectively, and $65.2 million and $50.1 million for the six months ended June 30, 2023 and 2022, respectively. There was no impairment loss in relation to the deferred commissions costs capitalized for the periods presented.
During the six months ended June 30, 2023, the Company recorded a gain of $4.5 million in other income (expense), pursuant to an amended agreement with a strategic partner.
Supplier Financing Obligations
The Company has established financing arrangements with certain third-party financial institutions and participating suppliers to be repaid over different terms ranging up to five years. As of June 30, 2023, the Company’s outstanding financing obligations related to such arrangements were $5.8 million, of which $3.5 million and $2.3 million were included in accrued liabilities and other long-term liabilities, respectively, in the Condensed Consolidated Balance Sheets. Some of these financing arrangements are collateralized against property and equipment.
v3.23.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
Note 4. Fair Value of Financial Instruments
The Company measures and reports certain cash equivalents, including money market funds and certificates of deposit, derivative interest rate swap agreements, and long-term investments at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of the inputs as follows:
Level 1:    Observable inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2:    Other inputs, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.
Level 3:    Unobservable inputs that are supported by little or no market activity and that are based on management’s assumptions, including fair value measurements determined by using pricing models, discounted cash flow methodologies or similar techniques.
The financial instruments carried at fair value were determined using the following inputs (in thousands):
Fair Value at
June 30, 2023		Level 1Level 2Level 3
Cash equivalents:    
Money market funds$143,661 $143,661 $— $— 
Other assets:
Interest rate swap derivatives
$5,728 $— $5,728 $— 
Other long-term liabilities:
Interest rate swap derivatives
$2,334 $— $2,334 $— 
Fair Value at
December 31, 2022		Level 1Level 2Level 3
Cash equivalents:    
Money market funds$181,831 $181,831 $— $— 
Other assets:
Long-term investments$1,646 $— $— $1,646 
The Company’s other financial instruments, including accounts receivable, accounts payable, and other current liabilities, are carried at cost, which approximates fair value due to the relatively short maturity of those instruments.
Fair Value of Long-Term Debt
As of June 30, 2023, the fair value of the 0% convertible senior notes due 2026 (the “2026 Notes”) was approximately $540.0 million, and the fair value of the 0% convertible senior notes due 2025 (the “2025 Notes”) was approximately $485.3 million. The fair value for the convertible notes was determined based on the quoted price for such notes in an inactive market on the last trading day of the reporting period and is considered as Level 2 in the fair value hierarchy.
As of June 30, 2023, the carrying amount of the Term Loan was $400.0 million. As there are no embedded features or other variable features, the fair value of the Term Loan approximated its carrying value.
Fair Value of Derivative Instruments
The Company’s interest rate swap derivative, which is considered as Level 2 in the fair value hierarchy, is valued using a discounted cash flow model that utilizes observable inputs including forward interest rate data at the measurement date.
v3.23.2
Long-Term Debt
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Long-Term Debt
Note 5. Long-Term Debt
The following table sets forth the net carrying amount of the outstanding long-term debt (in thousands):
Maturity DateJune 30, 2023December 31, 2022
2025 Notes (1)
March 1, 2025$539,296 $1,000,000 
2026 NotesMarch 15, 2026650,000 650,000 
Term Loan under Credit AgreementFebruary 14, 2028400,000 — 
Revolving Credit Facility under Credit Agreement (2)
February 14, 2028— — 
Total principal amount1,589,296 1,650,000 
Less: unamortized debt discount and issuance costs(10,502)(11,589)
Less: current portion of Term Loan (3)
(20,000)— 
Net carrying amount of long-term debt$1,558,794 $1,638,411 
(1)The Company repurchased $460.7 million principal amount of the 2025 Notes in the second quarter of 2023 using $400.0 million of proceeds drawn in May 2023 from the Term Loan and $27.3 million of other available cash resulting in a $31.1 million gain on early debt extinguishment, net of debt issuance costs.
(2)Of the $200.0 million available for borrowing, the Company has not drawn down any amount under the Revolving Credit Facility as of June 30, 2023.
(3)The Term Loan requires quarterly principal payments equal to 1.25% of the original aggregate principal amount with balance due at maturity.
As of June 30, 2023, the Company was in compliance with all covenants under the Credit Agreement and the indentures governing the 2025 Notes and 2026 Notes.
Credit Agreement
On February 14, 2023, the Company entered into a Credit Agreement with certain lenders. The Credit Agreement provides for a $200.0 million revolving loan facility (the “Revolving Credit Facility”), with a $25.0 million sub-limit for the issuance of letters of credit, and a $400.0 million delayed draw term loan facility (the “Term Loan”). The obligations under the Credit Agreement and the other loan documents are guaranteed by certain material domestic subsidiaries of the Company, and secured by substantially all of the personal property of the Company and such subsidiary guarantors.
The proceeds of the loans under the Revolving Credit Facility may be used for working capital and general corporate purposes. The Revolving Credit Facility commitments terminate, and all outstanding revolving loans thereunder are due and payable, on February 14, 2028.
The outstanding Term Loan of $400.0 million is due and payable through February 14, 2028. If on any date that is within 91 days prior to the final scheduled maturity date of any series of the Notes, such series of Notes is in an aggregate principal amount outstanding that exceeds an amount equal to 50% of last twelve months EBITDA, calculated as set forth in the Credit Agreement, the maturity date of both the Revolving Credit Facility and Term Loan shall automatically be modified to be such date.
Borrowings under the Credit Agreement will bear interest, at the Company’s option, at either: (a) the fluctuating rate per annum equal to the greatest of (i) the prime rate then in effect, (ii) the federal funds rate then in effect, plus 0.50% per annum, and (iii) an adjusted term SOFR rate determined on the basis of a one-month interest period, plus 1.00%, in each case, plus a margin of between 1.00% and 2.00%; and (b) an adjusted term SOFR rate (based on one, three or six month interest periods), plus a margin of between 2.00% and 3.00%. The applicable margin in each case is determined based on the Company’s total net leverage ratio. Interest is payable quarterly in arrears with respect to borrowings bearing interest at the alternate base rate or on the last day of an interest period, but at least every three months, with respect to borrowings bearing interest at the term SOFR rate.
As of June 30, 2023, the Company incurred $5.6 million of debt issuance costs in connection with the Credit Agreement, of which $4.9 million was capitalized in the Condensed Consolidated Balance Sheets and will be amortized on straight-line basis over the term of the Credit Agreement, while the remaining amount was expensed in the period incurred.
Future minimum principal payments of the Term Loan as of June 30, 2023 are presented in the table below (in thousands):

2023 (remaining)$10,000 
202420,000 
202520,000 
202620,000 
2027 onwards330,000 
Total$400,000 
Partial Repurchase of 2025 Notes
In May 2023, the Company used the entire proceeds from the drawdown of the $400.0 million Term Loan to repurchase $460.7 million principal amount of the 2025 Notes for $427.3 million in cash (the “Partial Repurchase of 2025 Notes”), including third-party costs. Immediately after the partial repurchase, the carrying value of the 2025 Notes, net of unamortized debt issuance costs, was $536.6 million. As of June 30, 2023, $539.3 million of principal remained outstanding on the 2025 Notes.
Convertible Senior Notes
In March 2020, the Company issued $1.0 billion aggregate principal amount of the 2025 Notes in a private placement to qualified institutional buyers. The 2025 Notes will mature on March 1, 2025, unless earlier repurchased or redeemed by the Company or converted pursuant to their terms. The total net proceeds from the debt offering, after deducting initial purchase discounts and debt issuance costs, were approximately $986.5 million.
In September 2020, the Company issued $650.0 million aggregate principal amount of 2026 Notes in a private placement to qualified institutional buyers. The 2026 Notes will mature on March 15, 2026, unless earlier repurchased or redeemed by the Company or converted pursuant to their terms. The total net proceeds from the debt offering, after deducting initial purchase discounts and debt issuance costs, were approximately $640.2 million.
The 2025 Notes and 2026 Notes (collectively, the “Notes”) are senior, unsecured obligations of the Company that do not bear regular interest, and the principal amount of the Notes do not accrete. The Notes may bear special interest under specified circumstances relating to the Company’s failure to comply with its reporting obligations under the indentures governing each of the Notes (collectively, the “Notes Indentures”) or if the Notes are not freely tradeable as required by each respective Notes Indenture.
Other Terms of the Notes
2025 Notes2026 Notes
$1,000 principal amount initially convertible into number of the Company’s Class A Common Stock, par value $0.0001
2.7745 shares
2.3583 shares
Equivalent initial approximate conversion price per share
$360.43 $424.03 
The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for any accrued and unpaid special interest. In addition, upon the occurrence of a make-whole fundamental change or a redemption period, each as defined in the respective Notes Indentures, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Notes in connection with such make-whole fundamental change or during the relevant redemption period.
The Notes will be convertible at certain times and upon the occurrence of certain events in the future. Further, on or after December 1, 2024 for the 2025 Notes, and December 15, 2025 for the 2026 Notes, until the close of business on the scheduled trading day immediately preceding the relevant maturity date, holders of the Notes may convert all or a portion of their notes regardless of these conditions. Pursuant to the terms of the respective Notes Indentures, effective January 1, 2022, the Company made an irrevocable election to settle the principal portion of the Notes only in cash, with the conversion premium to be settled in cash or shares.
During the three and six months ended June 30, 2023, the conditions allowing holders of the 2025 Notes and 2026 Notes to convert were not met. The Notes may be convertible thereafter if one or more of the conversion conditions specified in the indentures are satisfied during future measurement periods.
The Company may redeem the Notes at its option, on or after March 5, 2022 for the 2025 Notes, and March 20, 2023 for the 2026 Notes, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid special interest to, but excluding the redemption date, subject to certain conditions. No sinking fund is provided for the Notes.
Upon the occurrence of a fundamental change (as defined in each respective Notes Indentures) prior to the maturity date, holders may require the Company to repurchase all or a portion of the 2025 Notes or 2026 Notes for cash at a price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid special interest to, but excluding, the fundamental change repurchase date.
Capped Calls
In connection with the offering of the Notes, the Company entered into privately-negotiated capped call transactions relating to each series of notes with certain counterparties (collectively the “Capped Calls”). The initial strike price of the Notes corresponds to the initial conversion price of each of the Notes. The Capped Calls are generally intended to reduce or offset the potential dilution to the Class A Common Stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. The Capped Calls are subject to either adjustment or termination upon the occurrence of specified extraordinary events affecting the Company, including a merger event, a tender offer, and a nationalization, insolvency or delisting involving the Company. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including changes in law, insolvency filings; and hedging disruptions. The Capped Call transactions are recorded in stockholders’ equity and are not accounted for as derivatives.
The following table below sets forth key terms and costs incurred for the Capped Calls related to each of the Notes:
2025 Notes2026 Notes
Initial approximate strike price per share, subject to certain adjustments$360.43 $424.03 
Initial cap price per share, subject to certain adjustments$480.56 $556.10 
Net cost incurred (in millions)$60.9 $41.8 
Class A Common Stock covered, subject to anti-dilution adjustments (in millions)2.81.5
Settlement commencement date1/31/20242/13/2025
Settlement expiration date2/28/20243/13/2025
All of the capped call transactions were outstanding as of June 30, 2023.
Interest Expense on Long-Term Debt
The following table sets forth the total interest expense recognized related to long-term debt (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Contractual interest expense$3,286 $— $3,286 $— 
Amortization of debt discount and issuance costs1,279 1,116 2,398 2,232 
Total interest expense related to long-term debt$4,565 $1,116 $5,684 $2,232 
The Term Loan effective interest rate was 8.2% for the three months ended June 30, 2023.
v3.23.2
Derivative Instruments
 6 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
Note 6. Derivative Instruments
In May 2023, the Company entered into a five-year floating-to-fixed interest rate swap agreement with the objective of reducing exposure to the fluctuating interest rates associated with the Company’s variable rate borrowing program by paying quarterly a fixed interest rate of 3.79%, plus a margin of 2% to 3%. The interest rate swap agreement was effective on June 30, 2023, and terminates on February 14, 2028, consistent with the duration of the maturity of the Term Loan. As of June 30, 2023, the interest rate swap agreement had a notional amount of $400.0 million. As of June 30, 2023, the Company estimates the net amount related to the interest rate swaps expected to be reclassified into earnings over the next 12 months is approximately $5.7 million. The Company does not hold its interest rate swap agreement for trading or speculative purposes.
The Company’s interest rate swap agreement is designated as a cash flow hedge under ASC 815, Derivatives and Hedging (“ASC 815”), involving the assumption of variable amounts by a swap counterparty in exchange for the Company making fixed-rate payments to the counterparty over the life of the agreement, without the exchange of the underlying notional amount. These hedges are highly effective in offsetting changes in the Company’s future expected cash flows due to the fluctuation of the Company’s variable rate debt. The Company monitors the effectiveness of its hedges on a quarterly basis.
The Company will recognize its interest rate derivative designed as a cash flow hedge on a gross basis as an asset and a liability at fair value in the Condensed Consolidated Balance Sheets. The unrealized gains and losses on the interest rate swap agreement are included in other comprehensive income (loss) and will be subsequently recognized in earnings within or against interest expense when the hedged interest payments are accrued.
v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases
Note 7. Leases
The Company primarily leases facilities for office and data center space under non-cancelable operating leases for its U.S. and international locations. As of June 30, 2023, non-cancellable leases expire on various dates between 2023 and 2029.
The components of leases are as follows (in thousands):
June 30, 2023December 31, 2022
Operating leases
Operating lease right-of-use assets$31,339 $35,433 
Accrued liabilities$16,992 $17,513 
Operating lease liabilities16,596 20,182 
Total operating lease liabilities$33,588 $37,695 

Six Months Ended June 30,
20232022
Supplemental Cash Flow Information (in thousands)
Operating cash flows resulting from operating leases:
Cash paid for amounts included in the measurement of lease liabilities$11,197 $11,348 
New ROU assets obtained in exchange of lease liabilities:
Operating leases$6,089 $3,804 
v3.23.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 8. Commitments and Contingencies
Legal Matters
The Company is subject to certain legal proceedings described below, and from time to time may be involved in a variety of claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters, and other litigation matters relating to various claims that arise in the normal course of business.
The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using reasonably available information. The Company develops its views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. Actual claims could settle or be adjudicated against the Company in the future for materially different amounts than the Company has accrued due to the inherently unpredictable nature of litigation. Legal fees are expensed in the period in which they are incurred.
Patent Infringement Matter
On April 25, 2017, Uniloc USA, Inc. and Uniloc Luxembourg, S.A. (together, “Uniloc”) filed in the U.S. District Court for the Eastern District of Texas two actions against the Company alleging infringement of U.S. Patent Nos. 7,804,948; 7,853,000; and 8,571,194 by RingCentral’s Glip unified communications application. The plaintiffs seek a declaration that the Company has infringed the patents, damages according to proof, injunctive relief, as well as their costs, attorney’s fees, expenses and interest. On October 9, 2017, the Company filed a motion to dismiss or transfer requesting that the case be transferred to the United States District Court for the Northern District of California. In response to the motion, plaintiffs filed a first amended complaint on October 24, 2017. The Company filed a renewed motion to dismiss or transfer on November 15, 2017. Although briefing on that motion has been completed, the motion has not yet been decided. On February 5, 2018, Uniloc moved to stay the litigation pending the resolution of certain third-party inter partes review proceedings (“IPRs”) before the United States Patent and Trademark Office. On February 9, 2018, the court stayed the litigation pending resolution of the IPRs without prejudice to or waiver of the Company’s motion to dismiss or transfer. This litigation is still in its early stages. Based on the information known by the Company as of the date of this filing and the rules and regulations applicable to the preparation of the Company’s condensed consolidated financial statements, it is not possible to provide an estimated amount of any such loss or range of loss that may occur. The Company intends to vigorously defend against this lawsuit.
CIPA Matter
On June 16, 2020, Plaintiff Meena Reuben (“Reuben”) filed a complaint against the Company for a putative class action lawsuit in California Superior Court for San Mateo County. The complaint alleges claims on behalf of a class of individuals for whom, while they were in California, the Company allegedly intercepted and recorded communications between individuals and the Company’s customers without the individual’s consent, in violation of the California Invasion of Privacy Act (“CIPA”) Sections 631 and 632.7. Reuben seeks statutory damages of $5,000 for each alleged violation of Sections 631 and 632.7, injunctive relief, and attorneys’ fees and costs, and other unspecified amount of damages. The parties participated in mediation on August 24, 2021. On September 16, 2021, Reuben filed an amended complaint. The Company filed a demurrer to the amended complaint on October 18, 2021, and a motion for judgment on the pleadings on January 23, 2023. The Court overruled the Company’s demurrer and motion for judgment on the pleadings, and the parties are now engaged in discovery. This litigation is still in its early stages. Based on the information known by the Company as of the date of this filing and the rules and regulations applicable to the preparation of the Company’s condensed consolidated financial statements, it is not possible to provide an estimated amount of any such loss or range of loss that may occur. The Company intends to vigorously defend against this lawsuit.
Other Matter
On June 14, 2019, the Company filed suit in the Superior Court of California, County of Alameda, against Bright Pattern, Inc. and two of its officers, alleging that the defendants negotiated a potential acquisition of Bright Pattern by RingCentral fraudulently and in bad faith. The Company seeks its costs incurred in negotiating under the Letter of Intent (“LOI”) that the parties entered into and damages for lost opportunity as a result of forgoing another acquisition opportunity, and attorneys’ fees and costs. On August 26, 2019, Bright Pattern filed a cross-complaint against the Company and two of its executive officers alleging breach of the LOI as well as tort claims arising from the Company’s allegedly inducing Bright Pattern to enter into the LOI and subsequent extensions while allegedly misstating the timeframe for the proposed transaction. As damages, Bright Pattern seeks audit fees it allegedly incurred, a $5 million break-up fee, its alleged “cash burn” during the negotiations, and unspecified lost opportunity damages. The Company filed a demurrer to Bright Pattern’s amended cross-complaint, as well as a related motion to strike. On May 7, 2020, the court denied both the motion to strike and demurrer. On July 19, 2022, the parties filed a joint motion to stay the proceedings, which the court granted on July 20, 2022. Based on the information known by the Company as of the date of this filing and the rules and regulations applicable to the preparation of the Company’s condensed consolidated financial statements, it is not possible to provide an estimated amount of any loss or range of loss that may occur. The Company intends to vigorously prosecute and defend this lawsuit.
Purchase Obligations
During the second quarter of 2023, the Company entered into a commercial arrangement with a total incremental commitment of $19.8 million through January 2025. The entire incremental commitment balance was outstanding as of June 30, 2023.
During the first quarter of 2023, the Company entered into a commercial arrangement with a total commitment of $124.0 million through January 2029, out of which $117.8 million remained outstanding as of June 30, 2023.
v3.23.2
Stockholders’ Deficit and Convertible Preferred Stock
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Stockholders' Deficit and Convertible Preferred Stock
Note 9. Stockholders’ Deficit and Convertible Preferred Stock
Share Repurchase Programs
On February 13, 2023, the Company’s board of directors authorized a share repurchase program under which it may repurchase up to $175 million of the Company’s outstanding shares of Class A Common Stock, subject to certain limitations. Subsequently, on May 16, 2023, the board of directors authorized an additional share repurchase program under which the Company may repurchase up to an additional $125 million of our outstanding Class A Common Stock, also subject to certain limitations. Under these programs, share repurchases may be made at the Company’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, subject to a minimum cash balance. The programs do not obligate the Company to repurchase any specific dollar amount or to acquire any specific number of shares of its Class A Common Stock. The timing and number of any shares repurchased under the programs will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The authorization under these programs is effective until December 31, 2023.
During the six months ended June 30, 2023, the Company repurchased and subsequently retired 5.5 million shares of its Class A Common Stock, for an aggregate amount of approximately $175 million. As of June 30, 2023, approximately $125 million remained authorized and available under the Company’s share repurchase programs for future share repurchases.
Series A Convertible Preferred Stock
On November 8, 2021, the Company entered into the Investment Agreement, pursuant to which the Company sold to Searchlight Investor, in a private placement exempt from registration under the Securities Act of 1933, as amended, 200,000 shares of newly-issued Series A Convertible Preferred Stock, par value $0.0001 per share, for an aggregate purchase price of $200 million. The Series A Convertible Preferred Stock issued to Searchlight Investor pursuant to the Investment Agreement is convertible into shares of the Company’s Class A Common Stock, par value $0.0001 per share, at a conversion price of $269.22 per share, subject to adjustment as provided in the certificate of designations specifying the terms of such shares. The transactions contemplated by the Investment Agreement closed on November 9, 2021. The Series A Convertible Preferred Stock ranks senior to the shares of the Company’s Class A Common Stock and Class B Common Stock with respect to rights on the distribution of assets on any voluntary or involuntary liquidation or winding up of the affairs of the Company. The Series A Convertible Preferred Stock is a zero coupon, perpetual preferred stock, with a liquidation preference of $1,000 per share and other customary terms, including with respect to mandatory conversion and change of control premium under certain circumstances. The shares of Series A Convertible Preferred Stock shall not be redeemable or otherwise mature, other than for a
liquidation or a specified change in control event as provided in the certificate of designations specifying the terms of such shares. Holders of Series A Convertible Preferred Stock will be entitled to vote with the holders of the Class A Common Stock and Class B Common Stock on an as-converted basis. Holders of the Series A Convertible Preferred Stock will be entitled to a separate class vote with respect to, among other things, certain amendments to the Company’s organizational documents that have an adverse impact on the rights, preferences, privileges or voting power of the Series A Convertible Preferred Stock, authorizations or issuances of Company capital stock, or other securities convertible into capital stock, that is senior to, or equal in priority with, the Series A Convertible Preferred Stock, and increases or decreases in the number of authorized shares of Series A Convertible Preferred Stock.
As the liquidation or specified change in control event is not solely within the Company’s control, the Series A Convertible Preferred Stock is therefore classified as temporary equity and recorded outside of stockholders’ equity in the Condensed Consolidated Balance Sheets. As of June 30, 2023, and December 31, 2022, there were 200,000 shares of the Company’s Series A Convertible Preferred Stock issued and outstanding, and the carrying value, net of issuance costs, was $199.4 million.
v3.23.2
Share-Based Compensation
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
Note 10. 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,
 2023202220232022
Cost of revenues$8,870 $8,650 $17,604 $17,697 
Research and development22,888 23,282 46,093 46,480 
Sales and marketing40,026 38,964 76,761 78,841 
General and administrative32,876 29,615 62,393 55,101 
Total share-based compensation expense$104,660 $100,511 $202,851 $198,119 
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,
 2023202220232022
Employee stock purchase plan rights$2,430 $2,012 $4,681 $4,428 
Performance stock units (“PSUs”) 3,767 345 4,336 512 
Restricted stock units (“RSUs”) 98,463 98,154 193,834 193,179 
Total share-based compensation expense$104,660 $100,511 $202,851 $198,119 
Equity Incentive Plans
As of June 30, 2023, a total of 14,280,478 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, 2023, 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 as of December 31, 202222 $12.53 0.5$509 
Exercised(14)10.75 
Canceled/Forfeited— — 
Outstanding as of June 30, 20238 $15.55 0.3$142 
Vested and expected to vest as of June 30, 20238 $15.55 0.3$142 
Exercisable as of June 30, 20238 $15.55 0.3$142 
There were no options granted during the three and six months ended June 30, 2023 and 2022. The total intrinsic value of options exercised during the three and six months ended June 30, 2023 was immaterial, and during the three and six months ended June 30, 2022 was $1.8 million and $13.3 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 June 30, 2023, 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, 2023, a total of 6,547,384 shares were available for issuance under the ESPP.
Restricted and Performance Stock Units
A summary of activity of restricted and performance-based stock units as of June 30, 2023, and changes during the period then ended is presented in the following table:
Number of
RSUs/PSUs
Outstanding
(in thousands)		Weighted-
Average
Grant Date Fair
Value Per Share		Aggregate
Intrinsic Value
(in thousands)
Outstanding as of December 31, 20225,100 $119.55 $180,577 
Granted10,878 32.73 
Released(2,729)67.23 
Canceled/Forfeited(739)91.10 
Outstanding as of June 30, 202312,510 $57.15 $409,426 
Restricted Stock Units
The 2013 Plan provides for the issuance of RSUs to employees, directors, and consultants. RSUs issued under the 2013 Plan generally vest over four years.
As of June 30, 2023, there was a total of $474.0 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 3.0 years.
Performance Stock Units
The 2013 Plan provides for the issuance of PSUs. The PSUs granted under the 2013 Plan are contingent upon the achievement of predetermined market, performance, and service conditions. PSU expense is recognized using the accelerated attribution method over the requisite service period. For performance-based metrics, the compensation expense is based on a probability of achievement of the performance conditions. For market-based conditions, if the market conditions are not met but the service conditions are met, the PSUs will not vest; however, any stock-based compensation expense recognized will not be reversed.
As of June 30, 2023, there was a total of $30.1 million unrecognized share-based compensation expense, net of estimated forfeitures, related to these PSUs, which will be recognized over the remaining service period of approximately 2.6 years.
Employee Equity Compensation Plans
The Company’s board of directors adopted employee equity bonus and executive equity compensation plans (“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/or performance conditions and in lieu of a portion of base salary. During the three and six months ended June 30, 2023, the Company issued 638,732 and 1,153,999 RSUs, respectively, under these Plans. The shares under these Plans will be issued from the reserve of shares available for issuance under the 2013 Plan. The total requisite service period of each quarterly equity bonus award is approximately 0.4 years.
The unrecognized share-based compensation expense was approximately $4.7 million, which will be recognized over the remaining service period of 0.1 years. The shares issued under the bonus plan will be issued from the reserve of shares available for issuance under the 2013 Plan.
v3.23.2
Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
Note 11. Income Taxes
The provision for income taxes was $7.0 million and $1.0 million for the three months ended June 30, 2023 and 2022, respectively, and $10.0 million and $2.0 million for the six months ended June 30, 2023 and 2022, respectively. The provision for income taxes for the three and six months ended June 30, 2023 and 2022 consisted primarily of foreign income taxes and state income taxes. For the three and six months ended June 30, 2023 and 2022, the provision for income taxes differed from the U.S. federal statutory rate primarily due to foreign and state taxes currently payable.
Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminated the right to deduct research and development expenditures for tax purposes in the period the expenses were incurred and instead requires all U.S. and foreign research and development expenditures to be amortized over five and fifteen tax years, respectively. Due to this required capitalization of research and development expenditures, the Company has recorded current income tax expense of $5.0 million for the quarter ended June 30, 2023. The current income tax provision is primarily for state taxes we anticipate paying as a result of statutory limitations on our ability to offset expected taxable income with net operating loss carry forwards in certain states.
The realization of tax benefits of net deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence, the Company does not believe it is more likely than not that certain net deferred tax assets will be realizable. Accordingly, the Company continues to provide a full valuation allowance against the entire domestic and the majority of the foreign net deferred tax assets as of June 30, 2023 and December 31, 2022. The Company intends to maintain the full valuation allowance on the U.S. and certain foreign net deferred tax assets until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance.
During the three and six months ended June 30, 2023, there were no material changes to the total amount of unrecognized tax benefits.
v3.23.2
Basic and Diluted Net Loss Per Share
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Basic and Diluted Net Loss Per Share
Note 12. Basic and Diluted Net Loss Per Share
Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, stock options, restricted stock units, ESPP, convertible senior notes, and convertible preferred stock, to the extent dilutive. For the three and six months ended June 30, 2023 and 2022, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive.
The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except per share data):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Numerator    
Net loss$(21,482)$(159,515)$(75,881)$(310,487)
Denominator
Weighted-average common shares outstanding for basic and diluted net loss per share95,339 95,130 95,528 94,854 
Basic and diluted net loss per share$(0.23)$(1.68)$(0.79)$(3.27)
The following table summarizes the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding because including them would have had an anti-dilutive effect (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Shares of common stock issuable under equity incentive plans outstanding9,745 3,793 7,681 3,523 
Shares of common stock related to convertible preferred stock743 743 743 743 
Potential common shares excluded from diluted net loss per share10,488 4,536 8,424 4,266 
Pursuant to the terms of the respective Notes Indentures, effective January 1, 2022, the Company made an irrevocable election to settle the principal portion of the Notes only in cash, with the conversion premium to be settled in cash or shares.
The denominator for diluted net income per share does not include any effect from the capped call transactions the Company entered into concurrently with the issuance of the 2025 and 2026 Notes as this effect would be anti-dilutive. In the event of conversion of the Notes, if shares are delivered to the Company under the capped call, they will offset the dilutive effect of the shares that the Company would issue under the Notes.
v3.23.2
Restructuring Activities
 6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Activities
Note 13. Restructuring Activities
In the fourth quarter of 2022, the Company’s board of directors approved a reduction in force plan (the “Q4’22 Plan”) as part of broader efforts to align the Company’s cost base with its strategic priorities in the current environment. The restructuring costs associated with the Q4’22 Plan primarily consisted of severance payments, employee benefits and related costs.
The following table summarizes the Company’s restructuring costs that were recorded as an operating expense in the accompanying Condensed Consolidated Statement of Operations during the three and six months ended June 30, 2023 (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Cost of revenues$271 $156 $689 $156 
Research and development1,053 89 2,487 339 
Sales and marketing1,370 737 3,969 937 
General and administrative912 594 1,336 1,083 
Total restructuring costs$3,606 $1,576 $8,481 $2,515 
The following table summarizes the Company’s restructuring liability that is included in accrued liabilities in the accompanying Condensed Consolidated Balance Sheets (in thousands):
Balance as of December 31, 2022$5,485 
Restructuring costs8,481 
Cash payments(11,422)
Balance as of June 30, 2023$2,544 
v3.23.2
Subsequent Events
 6 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events
Note 14. Subsequent Events
On July 31, 2023, the Company completed its purchase of certain technology assets and customer relationships from Hopin, Inc. (“Hopin”), a virtual events platform for an upfront purchase consideration of $15 million and an additional consideration of up to $35 million (contingent consideration) based on the achievement of specified performance targets. The acquired technology will be incorporated into RingCentral’s global communications platform, providing customers with enhanced virtual events and webinar experience. Management is currently in the process of evaluating the impact of this transaction on its condensed consolidated financial statements.
v3.23.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Pay vs Performance Disclosure            
Net loss $ (21,482) $ (54,399) $ (159,515) $ (150,972) $ (75,881) $ (310,487)
v3.23.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.2
Description of Business and Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Consolidation
Basis of Presentation and Consolidation
The Company’s unaudited condensed consolidated financial statements and accompanying notes reflect all adjustments (all of which are normal, recurring in nature and those discussed in these notes) that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending December 31, 2023. Certain information and note disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”).
Use of Estimates
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The significant estimates made by management affect revenues, the allowance for doubtful accounts, deferred and prepaid sales commission costs, goodwill, useful lives of intangible assets, share-based compensation, capitalization of internally developed software, return reserves, derivative instruments, provision for income taxes, uncertain tax positions, loss contingencies, sales tax liabilities and accrued liabilities. Management periodically evaluates these estimates and will make adjustments prospectively based upon the results of such periodic evaluations. Actual results may differ from these estimates.
Segment Information
Segment Information
The Company has determined that the chief executive officer is the chief operating decision maker. The Company’s chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reportable segment.
Concentrations
Concentrations
As of June 30, 2023 and December 31, 2022, none of the Company’s customers accounted for more than 10% of the Company’s total accounts receivable.
Long-lived assets by geographic location are based on the location of the legal entity that owns the asset. As of June 30, 2023 and December 31, 2022, approximately 94% of the Company’s consolidated long-lived assets were located in the U.S. No other single country outside of the U.S. represented more than 10% of the Company’s consolidated long-lived assets.
Derivative Instruments and Hedging
Derivative Instruments and Hedging
The Company measures its derivative financial instruments at fair value and recognizes them as assets and liabilities in the Condensed Consolidated Balance Sheets. The Company records changes in the fair value of derivative financial instruments designated as cash flow hedges in other comprehensive income (loss). When a hedged transaction affects earnings, the Company subsequently reclassifies the net derivative gain or loss within earnings into the same line as the hedged item on the Condensed Consolidated Statements of Operations to offset the changes in the hedged transaction.
The cash flow effects related to derivative financial instruments designated as cash flow hedges are included within operating activities on the Condensed Consolidated Statements of Cash Flows.
The Company’s interest rate swap agreement is designated as a cash flow hedge under ASC 815, Derivatives and Hedging (“ASC 815”), involving the assumption of variable amounts by a swap counterparty in exchange for the Company making fixed-rate payments to the counterparty over the life of the agreement, without the exchange of the underlying notional amount. These hedges are highly effective in offsetting changes in the Company’s future expected cash flows due to the fluctuation of the Company’s variable rate debt. The Company monitors the effectiveness of its hedges on a quarterly basis.
The Company will recognize its interest rate derivative designed as a cash flow hedge on a gross basis as an asset and a liability at fair value in the Condensed Consolidated Balance Sheets. The unrealized gains and losses on the interest rate swap agreement are included in other comprehensive income (loss) and will be subsequently recognized in earnings within or against interest expense when the hedged interest payments are accrued.
Recent Accounting Pronouncements Not Yet Adopted
Recent Accounting Pronouncements Not Yet Adopted
There are no material recent accounting pronouncements not yet adopted during the three and six months ended June 30, 2023 that are significant or potentially significant to the Company.
v3.23.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table provides information about disaggregated revenue by primary geographical markets:
Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Primary geographical markets    
North America90 %90 %90 %90 %
Others10 10 10 10 
Total revenues100 %100 %100 %100 %
v3.23.2
Financial Statement Components (Tables)
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Components of Cash and Cash Equivalents
Cash and cash equivalents consisted of the following (in thousands):
June 30, 2023December 31, 2022
Cash$81,690 $88,153 
Money market funds143,661 181,831 
Total cash and cash equivalents$225,351 $269,984 
Schedule of Components of Accounts Receivable, Net
Accounts receivable, net consisted of the following (in thousands):
June 30, 2023December 31, 2022
Accounts receivable$242,947 $242,650 
Unbilled accounts receivable90,761 78,249 
Allowance for doubtful accounts(11,517)(9,581)
Accounts receivable, net$322,191 $311,318 
Schedule of Components of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
June 30, 2023December 31, 2022
Prepaid expenses$34,914 $23,306 
Inventory1,126 1,209 
Other current assets49,425 31,334 
Total prepaid expenses and other current assets$85,465 $55,849 
Schedule of Components of Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
June 30, 2023December 31, 2022
Computer hardware and software$232,193 $221,727 
Internal-use software development costs228,711 199,642 
Furniture and fixtures8,836 8,937 
Leasehold improvements13,955 13,889 
Total property and equipment, gross483,695 444,195 
Less: accumulated depreciation and amortization(297,889)(258,795)
Property and equipment, net$185,806 $185,400 
Schedule of Goodwill
The carrying value of goodwill is as follows (in thousands):
Balance at December 31, 2022$54,335 
Foreign currency translation adjustments240 
Balance at June 30, 2023$54,575 
Schedule of Carrying Values of Intangible Assets
The carrying values of intangible assets are as follows (in thousands):
June 30, 2023December 31, 2022
Weighted-Average Remaining Useful LifeCostAccumulated
Amortization and Impairment		Acquired
Intangibles, Net		CostAccumulated
Amortization and Impairment		Acquired
Intangibles, Net
Customer relationships
0.3 years
$20,954 $20,230 $724 $20,855 $19,090 $1,765 
Developed technology
3.3 years
818,737 362,027 456,710 814,614 288,328 526,286 
Total acquired intangible assets$839,691 $382,257 $457,434 $835,469 $307,418 $528,051 
Schedule of Estimated Amortization Expense for Acquired Intangible Assets
Estimated amortization expense for acquired intangible assets for the following fiscal years is as follows (in thousands):
2023 (remaining)$74,594 
2024135,159 
2025134,289 
2026112,980 
2027 onwards412 
Total estimated amortization expense$457,434 
Schedule of Components of Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
June 30, 2023December 31, 2022
Accrued compensation and benefits$42,175 $53,419 
Accrued sales, use, and telecom related taxes39,181 37,836 
Accrued marketing and sales commissions58,667 127,940 
Operating lease liabilities, short-term16,992 17,513 
Other accrued expenses151,387 143,405 
Total accrued liabilities$308,402 $380,113 
v3.23.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Financial Instruments Carried at Fair Value
The financial instruments carried at fair value were determined using the following inputs (in thousands):
Fair Value at
June 30, 2023		Level 1Level 2Level 3
Cash equivalents:    
Money market funds$143,661 $143,661 $— $— 
Other assets:
Interest rate swap derivatives
$5,728 $— $5,728 $— 
Other long-term liabilities:
Interest rate swap derivatives
$2,334 $— $2,334 $— 
Fair Value at
December 31, 2022		Level 1Level 2Level 3
Cash equivalents:    
Money market funds$181,831 $181,831 $— $— 
Other assets:
Long-term investments$1,646 $— $— $1,646 
v3.23.2
Long-Term Debt (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Summary of Net Carrying Amount of the Outstanding Long-Term Debt
The following table sets forth the net carrying amount of the outstanding long-term debt (in thousands):
Maturity DateJune 30, 2023December 31, 2022
2025 Notes (1)
March 1, 2025$539,296 $1,000,000 
2026 NotesMarch 15, 2026650,000 650,000 
Term Loan under Credit AgreementFebruary 14, 2028400,000 — 
Revolving Credit Facility under Credit Agreement (2)
February 14, 2028— — 
Total principal amount1,589,296 1,650,000 
Less: unamortized debt discount and issuance costs(10,502)(11,589)
Less: current portion of Term Loan (3)
(20,000)— 
Net carrying amount of long-term debt$1,558,794 $1,638,411 
(1)The Company repurchased $460.7 million principal amount of the 2025 Notes in the second quarter of 2023 using $400.0 million of proceeds drawn in May 2023 from the Term Loan and $27.3 million of other available cash resulting in a $31.1 million gain on early debt extinguishment, net of debt issuance costs.
(2)Of the $200.0 million available for borrowing, the Company has not drawn down any amount under the Revolving Credit Facility as of June 30, 2023.
(3)The Term Loan requires quarterly principal payments equal to 1.25% of the original aggregate principal amount with balance due at maturity.
Schedule of Future Minimum Principal Payments of the Term Facility
Future minimum principal payments of the Term Loan as of June 30, 2023 are presented in the table below (in thousands):

2023 (remaining)$10,000 
202420,000 
202520,000 
202620,000 
2027 onwards330,000 
Total$400,000 
Schedule of Debt Terms
2025 Notes2026 Notes
$1,000 principal amount initially convertible into number of the Company’s Class A Common Stock, par value $0.0001
2.7745 shares
2.3583 shares
Equivalent initial approximate conversion price per share
$360.43 $424.03 
Schedule of Key Terms and Costs Incurred
The following table below sets forth key terms and costs incurred for the Capped Calls related to each of the Notes:
2025 Notes2026 Notes
Initial approximate strike price per share, subject to certain adjustments$360.43 $424.03 
Initial cap price per share, subject to certain adjustments$480.56 $556.10 
Net cost incurred (in millions)$60.9 $41.8 
Class A Common Stock covered, subject to anti-dilution adjustments (in millions)2.81.5
Settlement commencement date1/31/20242/13/2025
Settlement expiration date2/28/20243/13/2025
Schedule of Interest Expense on Long-Term Debt
The following table sets forth the total interest expense recognized related to long-term debt (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Contractual interest expense$3,286 $— $3,286 $— 
Amortization of debt discount and issuance costs1,279 1,116 2,398 2,232 
Total interest expense related to long-term debt$4,565 $1,116 $5,684 $2,232 
v3.23.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Schedule of Components of Leases
The components of leases are as follows (in thousands):
June 30, 2023December 31, 2022
Operating leases
Operating lease right-of-use assets$31,339 $35,433 
Accrued liabilities$16,992 $17,513 
Operating lease liabilities16,596 20,182 
Total operating lease liabilities$33,588 $37,695 
Schedule of Lease Cost
Six Months Ended June 30,
20232022
Supplemental Cash Flow Information (in thousands)
Operating cash flows resulting from operating leases:
Cash paid for amounts included in the measurement of lease liabilities$11,197 $11,348 
New ROU assets obtained in exchange of lease liabilities:
Operating leases$6,089 $3,804 
v3.23.2
Share-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Share-Based Compensation Expense Recognized to Statements of Operations
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,
 2023202220232022
Cost of revenues$8,870 $8,650 $17,604 $17,697 
Research and development22,888 23,282 46,093 46,480 
Sales and marketing40,026 38,964 76,761 78,841 
General and administrative32,876 29,615 62,393 55,101 
Total share-based compensation expense$104,660 $100,511 $202,851 $198,119 
Summary of Share-Based Compensation Expense by Award Type
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,
 2023202220232022
Employee stock purchase plan rights$2,430 $2,012 $4,681 $4,428 
Performance stock units (“PSUs”) 3,767 345 4,336 512 
Restricted stock units (“RSUs”) 98,463 98,154 193,834 193,179 
Total share-based compensation expense$104,660 $100,511 $202,851 $198,119 
Summary of Stock Option Activity Plans
A summary of option activity under all of the Company’s equity incentive plans as of June 30, 2023, 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 as of December 31, 202222 $12.53 0.5$509 
Exercised(14)10.75 
Canceled/Forfeited— — 
Outstanding as of June 30, 20238 $15.55 0.3$142 
Vested and expected to vest as of June 30, 20238 $15.55 0.3$142 
Exercisable as of June 30, 20238 $15.55 0.3$142 
Summary of RSUs Activity
A summary of activity of restricted and performance-based stock units as of June 30, 2023, and changes during the period then ended is presented in the following table:
Number of
RSUs/PSUs
Outstanding
(in thousands)		Weighted-
Average
Grant Date Fair
Value Per Share		Aggregate
Intrinsic Value
(in thousands)
Outstanding as of December 31, 20225,100 $119.55 $180,577 
Granted10,878 32.73 
Released(2,729)67.23 
Canceled/Forfeited(739)91.10 
Outstanding as of June 30, 202312,510 $57.15 $409,426 
v3.23.2
Basic and Diluted Net Loss Per Share (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Schedule of Computation of Company's Basic and Diluted Net Loss Per Share of Common Stock
The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except per share data):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Numerator    
Net loss$(21,482)$(159,515)$(75,881)$(310,487)
Denominator
Weighted-average common shares outstanding for basic and diluted net loss per share95,339 95,130 95,528 94,854 
Basic and diluted net loss per share$(0.23)$(1.68)$(0.79)$(3.27)
Schedule of Potential Shares of Common Stock Excluded from Diluted Weighted-Average Common Shares Outstanding
The following table summarizes the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding because including them would have had an anti-dilutive effect (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Shares of common stock issuable under equity incentive plans outstanding9,745 3,793 7,681 3,523 
Shares of common stock related to convertible preferred stock743 743 743 743 
Potential common shares excluded from diluted net loss per share10,488 4,536 8,424 4,266 
v3.23.2
Restructuring Activities (Tables)
 6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Costs and Liability
The following table summarizes the Company’s restructuring costs that were recorded as an operating expense in the accompanying Condensed Consolidated Statement of Operations during the three and six months ended June 30, 2023 (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Cost of revenues$271 $156 $689 $156 
Research and development1,053 89 2,487 339 
Sales and marketing1,370 737 3,969 937 
General and administrative912 594 1,336 1,083 
Total restructuring costs$3,606 $1,576 $8,481 $2,515 
The following table summarizes the Company’s restructuring liability that is included in accrued liabilities in the accompanying Condensed Consolidated Balance Sheets (in thousands):
Balance as of December 31, 2022$5,485 
Restructuring costs8,481 
Cash payments(11,422)
Balance as of June 30, 2023$2,544 
v3.23.2
Description of Business and Summary of Significant Accounting Policies (Details) - segment
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Concentration Risk [Line Items]    
Number of reporting segments 1  
U.S. | Long-lived Assets | Geographic Concentration Risk    
Concentration Risk [Line Items]    
Concentration risk (in percent) 94.00% 94.00%
v3.23.2
Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]        
Revenue recognized $ 43,000   $ 169,200  
Revenue, remaining performance obligation, amount 2,300,000   2,300,000  
Product revenues $ 539,305 $ 486,896 $ 1,072,994 $ 954,552
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01        
Disaggregation of Revenue [Line Items]        
Revenue, remaining performance obligation, percentage (in percent) 53.00%   53.00%  
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months   12 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01        
Disaggregation of Revenue [Line Items]        
Revenue, remaining performance obligation, percentage (in percent) 47.00%   47.00%  
Revenue, remaining performance obligation, expected timing of satisfaction, period    
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk        
Disaggregation of Revenue [Line Items]        
Concentration risk (in percent) 100.00% 100.00% 100.00% 100.00%
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | North America        
Disaggregation of Revenue [Line Items]        
Concentration risk (in percent) 90.00% 90.00% 90.00% 90.00%
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | Others        
Disaggregation of Revenue [Line Items]        
Concentration risk (in percent) 10.00% 10.00% 10.00% 10.00%
RingCentral MVP And RingCentral Customer Engagement Solutions | Revenue from Contract with Customer Benchmark | Product Concentration Risk        
Disaggregation of Revenue [Line Items]        
Concentration risk (in percent) 90.00% 90.00% 90.00% 90.00%
RingCentral Customer Engagement Solutions | Revenue from Contract with Customer Benchmark | Product Concentration Risk        
Disaggregation of Revenue [Line Items]        
Concentration risk (in percent) 10.00% 10.00% 10.00% 10.00%
Product        
Disaggregation of Revenue [Line Items]        
Product revenues $ 11,500 $ 11,200 $ 21,800 $ 22,600
Minimum        
Disaggregation of Revenue [Line Items]        
Remaining performance obligations subscription term     1 month  
Maximum        
Disaggregation of Revenue [Line Items]        
Remaining performance obligations subscription term     5 years  
v3.23.2
Financial Statement Components - Components of Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Jun. 30, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Cash $ 81,690 $ 88,153    
Money market funds 143,661 181,831    
Total cash and cash equivalents $ 225,351 $ 269,984 $ 306,497 $ 267,162
v3.23.2
Financial Statement Components - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]          
Restricted cash $ 1,100,000   $ 1,100,000   $ 5,500,000
Depreciation and amortization 20,500,000 $ 17,600,000 40,800,000 $ 34,500,000  
Amortization expense of intangible assets 37,500,000 43,700,000 74,700,000 87,700,000  
Amortization of deferred and prepaid sales commission costs 32,900,000 26,900,000 65,160,000 50,068,000  
Impairment loss in relation to costs capitalized $ 0 $ 0 0 $ 0  
Non-cash gain     $ 4,500,000    
Supplier finance program, payment timing, period 5 years   5 years    
Supplier finance program, obligation $ 5,800,000   $ 5,800,000    
Supplier finance program, obligation, current 3,500,000   3,500,000    
Supplier finance program, obligation noncurrent $ 2,300,000   $ 2,300,000    
v3.23.2
Financial Statement Components - Components of Accounts Receivable, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accounts receivable $ 242,947 $ 242,650
Unbilled accounts receivable 90,761 78,249
Allowance for doubtful accounts (11,517) (9,581)
Accounts receivable, net $ 322,191 $ 311,318
v3.23.2
Financial Statement Components - Components of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Prepaid expenses $ 34,914 $ 23,306
Inventory 1,126 1,209
Other current assets 49,425 31,334
Total prepaid expenses and other current assets $ 85,465 $ 55,849
v3.23.2
Financial Statement Components - Components of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross $ 483,695 $ 444,195
Less: accumulated depreciation and amortization (297,889) (258,795)
Property and equipment, net 185,806 185,400
Computer hardware and software    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 232,193 221,727
Internal-use software development costs    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 228,711 199,642
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 8,836 8,937
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross $ 13,955 $ 13,889
v3.23.2
Financial Statement Components - Components of Goodwill (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
USD ($)
Goodwill [Roll Forward]  
Goodwill, beginning balance $ 54,335
Foreign currency translation adjustments 240
Goodwill, ending balance $ 54,575
v3.23.2
Financial Statement Components - Summary of Carrying Values of Intangible Assets (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Cost $ 839,691 $ 835,469
Accumulated Amortization and Impairment 382,257 307,418
Total estimated amortization expense $ 457,434 528,051
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Remaining Useful Life 3 months 18 days  
Cost $ 20,954 20,855
Accumulated Amortization and Impairment 20,230 19,090
Total estimated amortization expense $ 724 1,765
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Remaining Useful Life 3 years 3 months 18 days  
Cost $ 818,737 814,614
Accumulated Amortization and Impairment 362,027 288,328
Total estimated amortization expense $ 456,710 $ 526,286
v3.23.2
Financial Statement Components - Summary of Estimated Amortization Expense for Acquired Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
2023 (remaining) $ 74,594  
2024 135,159  
2025 134,289  
2026 112,980  
2027 onwards 412  
Total estimated amortization expense $ 457,434 $ 528,051
v3.23.2
Financial Statement Components - Components of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued compensation and benefits $ 42,175 $ 53,419
Accrued sales, use, and telecom related taxes 39,181 37,836
Accrued marketing and sales commissions 58,667 127,940
Operating lease liabilities, short-term 16,992 17,513
Other accrued expenses 151,387 143,405
Total accrued liabilities $ 308,402 $ 380,113
v3.23.2
Fair Value of Financial Instruments - Financial Instruments Carried at Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Other assets:    
Interest rate swap derivatives $ 5,728  
Long-term investments   $ 1,646
Other long-term liabilities:    
Interest rate swap derivatives 2,334  
Level 1    
Other assets:    
Interest rate swap derivatives 0  
Long-term investments   0
Other long-term liabilities:    
Interest rate swap derivatives 0  
Level 2    
Other assets:    
Interest rate swap derivatives 5,728  
Long-term investments   0
Other long-term liabilities:    
Interest rate swap derivatives 2,334  
Level 3    
Other assets:    
Interest rate swap derivatives 0  
Long-term investments   1,646
Other long-term liabilities:    
Interest rate swap derivatives 0  
Money market funds    
Cash equivalents:    
Money market funds 143,661 181,831
Money market funds | Level 1    
Cash equivalents:    
Money market funds 143,661 181,831
Money market funds | Level 2    
Cash equivalents:    
Money market funds 0 0
Money market funds | Level 3    
Cash equivalents:    
Money market funds $ 0 $ 0
v3.23.2
Fair Value of Financial Instruments - Additional Information (Details) - Level 2
$ in Millions
Jun. 30, 2023
USD ($)
2026 Notes  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt instrument, interest rate (in percent) 0.00%
Fair value of convertible senior notes $ 540.0
2025 Notes  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt instrument, interest rate (in percent) 0.00%
Fair value of convertible senior notes $ 485.3
Credit Agreement | Line of Credit | Secured Debt  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Carrying amount of loan $ 400.0
v3.23.2
Long-Term Debt - Summary of Net Carrying Amount of the Outstanding Long-Term Debt (Details) - USD ($)
 1 Months Ended 6 Months Ended
May 31, 2023
Jun. 30, 2023
Jun. 30, 2022
Feb. 14, 2023
Dec. 31, 2022
Debt Instrument [Line Items]          
Total principal amount   $ 1,589,296,000     $ 1,650,000,000
Less: unamortized debt discount and issuance costs   (10,502,000)     (11,589,000)
Less: current portion of term loan   (20,000,000)     0
Net carrying amount of long-term debt   1,558,794,000     1,638,411,000
Gain on early debt extinguishment   31,107,000 $ 0    
2025 Notes | Convertible Debt          
Debt Instrument [Line Items]          
Total principal amount   539,296,000     1,000,000,000
Debt issuance costs, current, net   27,300,000      
Gain on early debt extinguishment   31,100,000      
2025 Notes | Secured Debt | Convertible Debt          
Debt Instrument [Line Items]          
Debt instrument, repurchased face amount   460,700,000      
2026 Notes | Convertible Debt          
Debt Instrument [Line Items]          
Total principal amount   650,000,000     650,000,000
Credit Agreement | Secured Debt | Line of Credit          
Debt Instrument [Line Items]          
Total principal amount   $ 400,000,000     0
Proceeds from long-term lines of credit $ 400,000,000        
Line of credit facility, maximum borrowing capacity       $ 400,000,000  
Debt instrument, quarterly payment, principal interest rate (in percent)   1.25%      
Credit Agreement | Revolving Credit Facility | Line of Credit          
Debt Instrument [Line Items]          
Total principal amount   $ 0     $ 0
Line of credit facility, maximum borrowing capacity       $ 200,000,000  
Long-term line of credit   $ 0      
v3.23.2
Long-Term Debt - Narrative (Details) - USD ($)
 1 Months Ended 6 Months Ended
May 31, 2023
Sep. 30, 2020
Mar. 31, 2020
Jun. 30, 2023
Jun. 30, 2022
Feb. 14, 2023
Dec. 31, 2022
Debt Instrument [Line Items]              
Amount outstanding       $ 1,589,296,000     $ 1,650,000,000
Proceeds from issuance of term loan, net of issuance costs       $ 394,394,000 $ 0    
Convertible Debt              
Debt Instrument [Line Items]              
Debt redemption price (in percent)       100.00%      
Credit Agreement | Line of Credit              
Debt Instrument [Line Items]              
Modified term threshold       91 days      
Percentage of EBITDA       50.00%      
Credit Agreement | Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate (in percent)       0.50%      
Credit Agreement | Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate | Minimum              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate (in percent)       1.00%      
Credit Agreement | Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate | Maximum              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate (in percent)       2.00%      
Credit Agreement | Line of Credit | SOFR              
Debt Instrument [Line Items]              
Debt instrument, interest rate (in percent)       1.00%      
Credit Agreement | Line of Credit | SOFR | Minimum              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate (in percent)       2.00%      
Credit Agreement | Line of Credit | SOFR | Maximum              
Debt Instrument [Line Items]              
Debt instrument, basis spread on variable rate (in percent)       3.00%      
2025 Notes | Convertible Debt              
Debt Instrument [Line Items]              
Repayments of convertible debt       $ (427,300,000)      
Debt issuance costs, net       536,600,000      
Amount outstanding       539,296,000     1,000,000,000
Total principal amount     $ 1,000,000,000        
Proceeds from issuance of term loan, net of issuance costs     $ 986,500,000        
2026 Notes | Convertible Debt              
Debt Instrument [Line Items]              
Amount outstanding       650,000,000     650,000,000
Total principal amount   $ 650,000,000          
Proceeds from issuance of term loan, net of issuance costs   $ 640,200,000          
Revolving Credit Facility | Credit Agreement | Line of Credit              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity           $ 200,000,000  
Amount outstanding       0     0
Letter of Credit | Credit Agreement | Line of Credit              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity           25,000,000  
Secured Debt | Credit Agreement | Line of Credit              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity           $ 400,000,000  
Proceeds from long-term lines of credit $ 400,000,000            
Debt issuance costs incurred       5,600,000      
Debt issuance costs capitalized       4,900,000      
Amount outstanding       $ 400,000,000     $ 0
Effective interest rate percentage (in percent)       8.20%      
Secured Debt | 2025 Notes | Convertible Debt              
Debt Instrument [Line Items]              
Debt instrument, repurchased face amount       $ 460,700,000      
v3.23.2
Long-Term Debt - Summary of Future Minimum Principal Payments of the Term Facility (Details) - Credit Agreement - Secured Debt - Line of Credit
$ in Thousands
Jun. 30, 2023
USD ($)
Debt Instrument [Line Items]  
2023 (remaining) $ 10,000
2024 20,000
2025 20,000
2026 20,000
2027 onwards 330,000
Total $ 400,000
v3.23.2
Long-Term Debt - Summary of Conversion of the Notes (Details) - Class A common stock
 1 Months Ended
Sep. 30, 2020
$ / shares
Mar. 31, 2020
$ / shares
Jun. 30, 2023
$ / shares
Nov. 08, 2021
$ / shares
Debt Instrument [Line Items]        
Stock par value (in dollars per share)       $ 0.0001
2025 Notes        
Debt Instrument [Line Items]        
Stock par value (in dollars per share)     $ 0.0001  
Equivalent initial approximate conversion price per share (in dollars per share)   $ 360.43    
Debt conversion, converted instrument, shares issued   0.0027745    
2026 Notes        
Debt Instrument [Line Items]        
Stock par value (in dollars per share)     $ 0.0001  
Equivalent initial approximate conversion price per share (in dollars per share) $ 424.03      
Debt conversion, converted instrument, shares issued 0.0023583      
v3.23.2
Long-Term Debt - Summary of Capped Calls (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 1 Months Ended
Sep. 30, 2020
Mar. 31, 2020
2025 Notes | Class A common stock    
Debt Instrument [Line Items]    
Initial cap price per share, subject to certain adjustment (in dollars per share)   $ 360.43
2025 Notes | Capped call    
Debt Instrument [Line Items]    
Initial approximate strike price per share, subject to certain adjustments (in dollars per share)   360.43
Initial cap price per share, subject to certain adjustment (in dollars per share)   $ 480.56
Net cost incurred (in millions)   $ 60.9
2025 Notes | Capped call | Class A common stock    
Debt Instrument [Line Items]    
Class A common stock covered, subject to anti-dilution adjustments (in millions) (in shares)   2.8
2026 Notes | Class A common stock    
Debt Instrument [Line Items]    
Initial cap price per share, subject to certain adjustment (in dollars per share) $ 424.03  
2026 Notes | Capped call    
Debt Instrument [Line Items]    
Initial approximate strike price per share, subject to certain adjustments (in dollars per share) 424.03  
Initial cap price per share, subject to certain adjustment (in dollars per share) $ 556.10  
Net cost incurred (in millions) $ 41.8  
2026 Notes | Capped call | Class A common stock    
Debt Instrument [Line Items]    
Class A common stock covered, subject to anti-dilution adjustments (in millions) (in shares) 1.5  
v3.23.2
Long-Term Debt - Schedule of Interest Expense on Long-Term Debt (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Debt Disclosure [Abstract]        
Contractual interest expense $ 3,286 $ 0 $ 3,286 $ 0
Amortization of debt discount and issuance costs 1,279 1,116 2,398 2,232
Total interest expense related to long-term debt $ 4,565 $ 1,116 $ 5,684 $ 2,232
v3.23.2
Derivative Instruments (Details) - Interest Rate Swap - USD ($)
 1 Months Ended
May 31, 2023
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, term of contract 5 years  
Derivative, fixed interest rate (in percent) 3.79%  
Derivative, notional amount   $ 400,000,000
Reclassified into earnings over next 12 months   $ 5,700,000
Minimum    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, basis spread on variable interest rate (in percent) 2.00%  
Maximum    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, basis spread on variable interest rate (in percent) 3.00%  
v3.23.2
Leases - Components of Leases and Lease Costs (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Operating leases    
Operating lease right-of-use assets $ 31,339 $ 35,433
Accrued liabilities 16,992 17,513
Operating lease liabilities 16,596 20,182
Total operating lease liabilities $ 33,588 $ 37,695
Operating lease, liability, current, statement of financial position Accrued liabilities Accrued liabilities
v3.23.2
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Operating cash flows resulting from operating leases:    
Cash paid for amounts included in the measurement of lease liabilities $ 11,197 $ 11,348
New ROU assets obtained in exchange of lease liabilities:    
Operating leases $ 6,089 $ 3,804
v3.23.2
Commitments and Contingencies (Details)
Aug. 26, 2019
USD ($)
defendent
Jun. 14, 2019
defendent
Apr. 25, 2017
action
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Jun. 16, 2020
USD ($)
Loss Contingencies [Line Items]            
Number of actions filed against the company | action     2      
Damages sought per violation           $ 5,000
Cross complaint, number of defendants | defendent 2          
Purchase obligation       $ 19,800,000 $ 124,000,000  
Purchase obligation outstanding       $ 117,800,000    
RingCentral Suit Against Bright Pattern, Inc. And Officers            
Loss Contingencies [Line Items]            
Number of defendants | defendent   2        
Bright Pattern, Inc. Cross Complaint Against RingCentral            
Loss Contingencies [Line Items]            
Break up fee $ 5,000,000          
v3.23.2
Stockholders’ Deficit and Convertible Preferred Stock (Details) - USD ($)
 6 Months Ended
Nov. 08, 2021
Jun. 30, 2023
May 16, 2023
Feb. 13, 2023
Dec. 31, 2022
Equity, Class of Treasury Stock [Line Items]          
Repurchase authorization       $ 175,000,000  
Repurchased and retired shares (in shares)   5,500,000      
Repurchased and retired shares amount   $ 175,000,000      
Remaining repurchase authorization amount   125,000,000      
Temporary equity, convertible senior notes   $ 199,449,000     $ 199,449,000
Class A common stock          
Equity, Class of Treasury Stock [Line Items]          
Stock par value (in dollars per share) $ 0.0001        
Shares of common stock related to convertible preferred stock          
Equity, Class of Treasury Stock [Line Items]          
Shares authorized (in shares) 200,000        
Pare value (in dollars per share) $ 0.0001        
Aggregate purchase price $ 200,000,000        
Conversion price (in dollars per share) $ 269.22        
Liquidation preference per share (in dollars per share) $ 1,000        
Shares issued (in shares)   200,000     200,000
Shares outstanding (in shares)   200,000     200,000
Temporary equity, convertible senior notes   $ 199,400,000     $ 199,400,000
Board of Directors | Class A common stock          
Equity, Class of Treasury Stock [Line Items]          
Additional authorized amount     $ 125,000,000    
v3.23.2
Share-Based Compensation - Summary of Share-Based Compensation Expense Recognized to Statements of Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total share-based compensation expense $ 104,660 $ 100,511 $ 202,851 $ 198,119
Cost of revenues        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total share-based compensation expense 8,870 8,650 17,604 17,697
Research and development        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total share-based compensation expense 22,888 23,282 46,093 46,480
Sales and marketing        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total share-based compensation expense 40,026 38,964 76,761 78,841
General and administrative        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total share-based compensation expense $ 32,876 $ 29,615 $ 62,393 $ 55,101
v3.23.2
Share-Based Compensation - Summary of Share-Based Compensation Expense by Award Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total share-based compensation expense $ 104,660 $ 100,511 $ 202,851 $ 198,119
Employee stock purchase plan rights        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total share-based compensation expense 2,430 2,012 4,681 4,428
Performance stock units (“PSUs”)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total share-based compensation expense 3,767 345 4,336 512
Restricted stock units (“RSUs”)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total share-based compensation expense $ 98,463 $ 98,154 $ 193,834 $ 193,179
v3.23.2
Share-Based Compensation - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares) 0 0 0 0
Intrinsic value of options exercised $ 0 $ 1,800,000 $ 0 $ 13,300,000
Unamortized share-based compensation expense $ 0   $ 0  
Employee stock purchase plan rights        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Available for future grants (in shares) 6,547,384   6,547,384  
Unrecognized share-based compensation expense $ 2,000,000.0   $ 2,000,000.0  
Unrecognized share-based compensation expense, remaining weighted-average vesting periods     4 months 24 days  
Restricted Stock Units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized share-based compensation expense, remaining weighted-average vesting periods     3 years  
Vesting period contractual term     4 years  
Unrecognized share-based compensation expense 474,000,000   $ 474,000,000  
Performance Stock Units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized share-based compensation expense, remaining weighted-average vesting periods     2 years 7 months 6 days  
Unrecognized share-based compensation expense 30,100,000   $ 30,100,000  
Employee Equity Compensation Plans        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized share-based compensation expense, remaining weighted-average vesting periods     1 month 6 days  
Unrecognized share-based compensation expense $ 4,700,000   $ 4,700,000  
2013 Equity Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Available for future grants (in shares) 14,280,478   14,280,478  
2013 Equity Incentive Plan | Employee Equity Compensation Plans        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized share-based compensation expense, remaining weighted-average vesting periods     4 months 24 days  
Key Employee Equity Bonus Plan | Restricted Stock Units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares) 638,732   1,153,999  
v3.23.2
Share-Based Compensation - Summary of Stock Option Activity Plans (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Number of Options Outstanding    
Beginning balance (in shares) 22  
Exercised (in shares) (14)  
Canceled/forfeited (in shares) 0  
Ending balance (in shares) 8 22
Vested and expected to vest (in shares) 8  
Exercisable (in shares) 8  
Weighted- Average Exercise Price Per Share    
Beginning balance (in dollars per share) $ 12.53  
Exercised (in dollars per share) 10.75  
Canceled/forfeited (in dollars per share) 0  
Ending balance (in dollars per share) 15.55 $ 12.53
Vested and expected to vest (in dollars per share) 15.55  
Exercisable (in dollars per share) $ 15.55  
Weighted- Average Contractual Term (in Years)    
Outstanding 3 months 18 days 6 months
Vested and expected to vest 3 months 18 days  
Exercisable 3 months 18 days  
Aggregate Intrinsic Value (in thousands)    
Outstanding $ 142 $ 509
Vested and expected to vest 142  
Exercisable $ 142  
v3.23.2
Share-Based Compensation - Summary of RSUs Activity (Details) - Restricted stock units
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended
Jun. 30, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
Number of RSUs/PSUs Outstanding (in thousands)    
Beginning balance (in shares) | shares 5,100  
Granted (in shares) | shares 10,878  
Released (in shares) | shares (2,729)  
Canceled/Forfeited (in shares) | shares (739)  
Ending balance (in shares) | shares 12,510  
Weighted- Average Grant Date Fair Value Per Share    
Beginning balance (in dollars per share) | $ / shares $ 119.55  
Granted (in dollars per share) | $ / shares 32.73  
Released (in dollars per share) | $ / shares 67.23  
Canceled/Forfeited (in dollars per share) | $ / shares 91.10  
Ending balance (in dollars per share) | $ / shares $ 57.15  
Aggregate Intrinsic Value (in thousands)    
Outstanding, balance | $ $ 409,426 $ 180,577
v3.23.2
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]        
Provision for income taxes $ 6,953 $ 1,048 $ 10,038 $ 2,027
Current income tax expense $ 5,000      
v3.23.2
Basic and Diluted Net Loss Per Share - Computation of Company's Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Numerator            
Net loss $ (21,482) $ (54,399) $ (159,515) $ (150,972) $ (75,881) $ (310,487)
Denominator            
Weighted-average common shares outstanding for basic and diluted net loss per share (in shares) 95,339   95,130   95,528 94,854
Basic net loss per share (in dollars per share) $ (0.23)   $ (1.68)   $ (0.79) $ (3.27)
Diluted net loss per share (in dollars per share) $ (0.23)   $ (1.68)   $ (0.79) $ (3.27)
v3.23.2
Basic and Diluted Net Loss Per Share - Potential Shares of Common Stock Excluded from Diluted Weighted-Average Common Shares Outstanding (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potential common shares excluded from diluted net loss per share (in shares) 10,488 4,536 8,424 4,266
Shares of common stock issuable under equity incentive plans outstanding        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potential common shares excluded from diluted net loss per share (in shares) 9,745 3,793 7,681 3,523
Shares of common stock related to convertible preferred stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potential common shares excluded from diluted net loss per share (in shares) 743 743 743 743
v3.23.2
Restructuring Activities - Schedule of Restructuring Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]        
Total restructuring costs $ 3,606 $ 1,576 $ 8,481 $ 2,515
Cost of revenues        
Restructuring Cost and Reserve [Line Items]        
Total restructuring costs 271 156 689 156
Research and development        
Restructuring Cost and Reserve [Line Items]        
Total restructuring costs 1,053 89 2,487 339
Sales and marketing        
Restructuring Cost and Reserve [Line Items]        
Total restructuring costs 1,370 737 3,969 937
General and administrative        
Restructuring Cost and Reserve [Line Items]        
Total restructuring costs $ 912 $ 594 $ 1,336 $ 1,083
v3.23.2
Restructuring Activities - Schedule of Restructuring Liability (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Restructuring Reserve [Roll Forward]        
Beginning balance     $ 5,485  
Restructuring costs $ 3,606 $ 1,576 8,481 $ 2,515
Cash payments     (11,422)  
Ending balance $ 2,544   $ 2,544  
v3.23.2
Subsequent Events (Details) - Subsequent Event - Hopin, Inc.
$ in Millions
Jul. 31, 2023
USD ($)
Subsequent Event [Line Items]  
Asset acquisition consideration $ 15
Asset acquisition contingent consideration $ 35
v3.23.2
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2020-06 [Member]