RINGCENTRAL, INC., 10-K filed on 2/26/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2024
Feb. 18, 2025
Jun. 28, 2024
Document And Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
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 12(b) Security Class A Common Stock    
Trading Symbol RNG    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 2.4
Documents Incorporated by Reference [Text Block]
Information required in response to Part III of Form 10-K (Items 10, 11, 12, 13 and 14) is hereby incorporated by reference from portions of the Registrant’s 10-K/A in lieu of our Proxy Statement for the Annual Meeting of Stockholders to be held in 2025. Such 10-K/A will be filed by the Registrant with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year ended December 31, 2024.
    
Amendment Flag false    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001384905    
Common Class A      
Document And Entity Information [Line Items]      
Entity Common Stock, Shares Outstanding   80,917,329  
Class B Common Stock      
Document And Entity Information [Line Items]      
Entity Common Stock, Shares Outstanding   9,804,538  
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Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location San Francisco, California
Auditor Firm ID 185
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 242,811 $ 222,195
Accounts receivable, net 386,252 364,438
Deferred and prepaid sales commission costs 182,615 184,620
Prepaid expenses and other current assets 59,444 77,396
Total current assets 871,122 848,649
Property and equipment, net 180,650 184,390
Operating lease right-of-use assets 46,463 42,989
Deferred and prepaid sales commission costs, non-current 325,198 395,724
Goodwill 82,986 67,370
Acquired intangibles, net 258,526 393,767
Other assets 14,928 12,024
Total assets 1,779,873 1,944,913
Current liabilities    
Accounts payable 21,866 53,295
Accrued liabilities 283,799 325,632
Current portion of long-term debt, net 181,252 20,000
Deferred revenue 261,882 233,619
Total current liabilities 748,799 632,546
Long-term debt, net 1,347,881 1,525,482
Operating lease liabilities 29,733 28,178
Other long-term liabilities 4,930 61,827
Total liabilities 2,131,343 2,248,033
Commitments and contingencies (Note 10)
Stockholders’ deficit    
Additional paid-in capital 1,215,377 1,204,781
Accumulated other comprehensive loss (8,881) (8,223)
Accumulated deficit (1,757,424) (1,699,136)
Total stockholders’ deficit (550,919) (502,569)
Total liabilities, temporary equity and stockholders’ deficit 1,779,873 1,944,913
Shares of common stock related to convertible preferred stock    
Current liabilities    
Series A convertible preferred stock, $0.0001 par value; 200 shares authorized at December 31, 2024 and 2023; 200 shares issued and outstanding at December 31, 2024 and 2023 199,449 199,449
Common Class A    
Stockholders’ deficit    
Common stock 8 8
Class B Common Stock    
Stockholders’ deficit    
Common stock $ 1 $ 1
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Shares of common stock related to convertible preferred stock    
Convertible preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Convertible preferred stock, shares authorized (in shares) 200,000 200,000
Convertible preferred stock, shares issued (in shares) 200,000 200,000
Convertible preferred stock, shares outstanding (in shares) 200,000 200,000
Common Class A    
Stockholders’ deficit    
Common stock, par or stated value per share (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares issued (in shares) 80,913,000 83,543,000
Common stock, shares outstanding (in shares) 80,913,000 83,543,000
Class B Common Stock    
Stockholders’ deficit    
Common stock, par or stated value per share (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 250,000,000 250,000,000
Common stock, shares issued (in shares) 9,805,000 9,924,000
Common stock, shares outstanding (in shares) 9,805,000 9,924,000
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues      
Total revenues $ 2,400,395 $ 2,202,429 $ 1,988,330
Cost of revenues      
Total cost of revenues 705,507 664,291 641,731
Gross profit 1,694,888 1,538,138 1,346,599
Operating expenses      
Research and development 329,323 335,851 362,256
Sales and marketing 1,096,448 1,068,050 1,057,231
General and administrative 266,447 333,048 292,898
Asset write-down charges 0 0 283,689
Total operating expenses 1,692,218 1,736,949 1,996,074
Income (loss) from operations 2,670 (198,811) (649,475)
Other income (expense), net      
Interest expense (64,995) (35,997) (4,807)
Other income (expense) 15,100 77,963 (219,771)
Other income (expense), net (49,895) 41,966 (224,578)
Loss before income taxes (47,225) (156,845) (874,053)
Provision for income taxes 11,063 8,395 5,113
Net loss $ (58,288) $ (165,240) $ (879,166)
Net loss per common share      
Basic (in dollars per share) $ (0.63) $ (1.74) $ (9.23)
Diluted (in dollars per share) $ (0.63) $ (1.74) $ (9.23)
Weighted-average number of shares used in computing net loss per share      
Basic (in shares) 92,110 94,912 95,239
Diluted (in shares) 92,110 94,912 95,239
Subscriptions      
Revenues      
Total revenues $ 2,297,192 $ 2,100,329 $ 1,887,756
Cost of revenues      
Total cost of revenues 593,294 557,050 531,098
Other      
Revenues      
Total revenues 103,203 102,100 100,574
Cost of revenues      
Total cost of revenues $ 112,213 $ 107,241 $ 110,633
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net loss $ (58,288) $ (165,240) $ (879,166)
Other comprehensive (loss) income      
Foreign currency translation adjustments (5,537) 3,070 (9,425)
Unrealized gain (loss) on derivative instruments 4,879 (2,512) 0
Total other comprehensive (loss) income (658) 558 (9,425)
Comprehensive loss $ (58,946) $ (164,682) $ (888,591)
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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
Beginning balance (in shares) at Dec. 31, 2021     94,309          
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, and other commercial arrangements (in shares)     3,373          
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings, and other commercial arrangements 21,419   $ 1 21,418        
Repurchases of common stock (in shares)     (2,297)          
Repurchases of common stock (99,793)     (99,793)        
Share-based compensation 380,665     380,665        
Other comprehensive income (loss) (9,425)         (9,425)    
Net loss (879,166)           (879,166)  
Ending balance (in shares) at Dec. 31, 2022     95,385          
Ending 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, and other commercial arrangements (in shares)     6,337          
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings, and other commercial arrangements 7,625     7,625        
Issuance of common stock in connection with strategic partnership arrangement (in shares)     1,693          
Issuance of common stock in connection with strategic partnership arrangement 55,015     55,015        
Repurchases of common stock (in shares)     (9,948)          
Repurchases of common stock (316,322)   $ (1) (316,321)        
Share-based compensation 398,582     398,582        
Other comprehensive income (loss) 558         558    
Net loss (165,240)           (165,240)  
Ending balance (in shares) at Dec. 31, 2023     93,467          
Ending balance at Dec. 31, 2023 (502,569)   $ 9 1,204,781   (8,223) (1,699,136)  
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, and other commercial arrangements (in shares)     6,714          
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, net of tax withholdings, and other commercial arrangements 10,729   $ 1 10,728        
Issuance of common stock in connection with strategic partnership arrangement (in shares)     255          
Issuance of common stock in connection with strategic partnership arrangement 7,972     7,972        
Repurchases of common stock (in shares)     (9,718)          
Repurchases of common stock (317,964)   $ (1) (317,963)        
Share-based compensation 309,859     309,859        
Other comprehensive income (loss) (658)         (658)    
Net loss (58,288)           (58,288)  
Ending balance (in shares) at Dec. 31, 2024     90,718          
Ending balance at Dec. 31, 2024 $ (550,919)   $ 9 $ 1,215,377   $ (8,881) $ (1,757,424)  
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY (Parenthetical)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]  
Accounting standards update, extensible enumeration Accounting Standards Update 2020-06 [Member]
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net loss $ (58,288) $ (165,240) $ (879,166)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 222,609 233,940 246,561
Share-based compensation 339,059 426,679 386,009
Unrealized loss on investments 0 1,506 203,483
Asset write-down and other charges 0 0 305,351
Amortization of deferred and prepaid sales commission costs 162,552 138,134 115,184
Amortization of debt discount and issuance costs 4,272 4,566 4,468
Gain on early extinguishment of debt 0 (53,400) 0
Reduction of operating lease right-of-use assets 20,723 20,469 19,907
Provision for bad debt 8,667 6,852 9,367
Other (8,428) 1,486 4,327
Changes in assets and liabilities:      
Accounts receivable (30,481) (57,819) (87,843)
Deferred and prepaid sales commission costs (130,730) (156,734) (235,869)
Prepaid expenses and other assets 19,811 14,492 3,812
Accounts payable (29,793) (21,213) (6,166)
Accrued and other liabilities (37,433) 9,101 89,473
Deferred revenue 19,592 17,681 33,275
Operating lease liabilities (18,856) (20,838) (20,868)
Net cash provided by operating activities 483,276 399,662 191,305
Cash flows from investing activities      
Purchases of property and equipment (24,994) (23,513) (32,713)
Capitalized internal-use software (55,534) (52,227) (53,730)
Cash paid for business combination, net of cash acquired (26,291) (14,709) 0
Purchases of intangible assets and long-term investments (2,540) 0 (3,990)
Proceeds from sale of marketable equity investments 0 0 3,223
Net cash used in investing activities (109,359) (90,449) (87,210)
Cash flows from financing activities      
Proceeds from issuance of stock in connection with stock plans 16,693 16,687 15,855
Payments for taxes related to net share settlement of equity awards (5,965) (9,062) (7,598)
Payments for repurchase of common stock, including excise tax (322,356) (311,088) (99,793)
Proceeds from issuance of long-term debt, net of issuance costs 0 785,749 0
Payments for the repurchase of convertible notes 0 (820,960) 0
Payments for fees on long-term debt (4,851) 0 0
Repayments of principal on term loan (20,000) (10,000) 0
Repayment of financing obligations (4,257) (5,777) (4,815)
Payment for contingent consideration (10,345) (3,567) (1,867)
Net cash used in financing activities (351,081) (358,018) (98,218)
Effect of exchange rate changes (2,220) 1,016 (3,055)
Net increase (decrease) in cash, cash equivalents, and restricted cash 20,616 (47,789) 2,822
Cash, cash equivalents, and restricted cash      
Beginning of year 222,195 269,984 267,162
End of year 242,811 222,195 269,984
Supplemental disclosure of cash flow data:      
Cash paid for interest, net of interest rate swap 59,045 16,629 347
Cash paid for income taxes, net of refunds 17,752 10,940 3,726
Non-cash investing and financing activities      
Common stock issued in connection with strategic partnership arrangement 7,972 55,014 0
Acquisition related measurement period adjustment 9,147 0 0
Contingent consideration 0 7,461 0
Equipment and capitalized internal-use software purchased and unpaid at period end 3,091 3,953 6,808
Acquisition of intangibles $ 0 $ 3,629 $ 0
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Description of Business and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
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 leading provider of AI-powered cloud business communications, contact center, video, and hybrid event solutions. The Company was incorporated in California in 1999 and was reincorporated in Delaware on September 26, 2013.
Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include the consolidated accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of 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 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, change in the fair-value of contingent consideration, 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.
Foreign Currency
The functional currency of the Company’s foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as part of a separate component of stockholders’ equity and reported in the Consolidated Statements of Comprehensive Loss. Foreign currency transaction gains and losses are included in net loss for the period. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates.
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.
Allowance for Doubtful Accounts
For the years ended December 31, 2024 and 2023, a portion of revenues were realized from credit card transactions while the remaining revenues generated accounts receivable. The Company determines provisions based on historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with delinquent accounts.
Below is a summary of the changes in allowance for doubtful accounts for the years ended December 31, 2024, 2023 and 2022 (in thousands):
Balance at
beginning of
year		Provision,
net of
recoveries		Write-offsBalance at
end of
year
Year ended December 31, 2024
Allowance for doubtful accounts$12,472 $8,667 $6,008 $15,131 
Year ended December 31, 2023
Allowance for doubtful accounts$9,581 $6,852 $3,961 $12,472 
Year ended December 31, 2022
Allowance for doubtful accounts$8,026 $9,367 $7,812 $9,581 
Derivative Instruments and Hedging
The Company measures its derivative financial instruments at fair value and recognizes them as assets and liabilities in the Consolidated Balance Sheets. The Company records changes in the fair value of derivative financial instruments designated as cash flow hedges in other comprehensive (loss) income. 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 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 Consolidated Statements of Cash Flows.
Internal-Use Software Development Costs
The Company capitalizes qualifying internal-use software development costs that are incurred during the application development stage, provided that management with the relevant authority authorizes and commits to the funding of the project, it is probable the project will be completed, and the software will be used to perform the function intended. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Capitalized internal-use software development costs are included in property and equipment and are amortized on a straight-line basis over their estimated useful lives.
For the years ended December 31, 2024 and 2023, the Company capitalized $59.3 million and $56.0 million, net of impairment, of internal-use software development costs, respectively. The carrying value of internal-use software development costs was $135.2 million and $131.6 million as of December 31, 2024 and 2023, respectively.
Property and Equipment, net
Property and equipment, net is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Computer hardware and software
3 to 5 years
Internal-use software development costs
3 to 5 years
Furniture and fixtures
1 to 5 years
Leasehold improvementsShorter of the estimated lease term or useful life
The Company evaluates the recoverability of property and equipment and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets or asset groups may not be recoverable. Recoverability of these assets or asset groups is measured by comparing the carrying amounts of such assets or asset groups to the future undiscounted cash flows that such assets or asset groups are expected to generate. If this evaluation indicates that the carrying amount of the assets or asset groups is not recoverable, the carrying amount of such assets or asset groups is reduced to its estimated fair value.
Maintenance and repairs are charged to expense as incurred.
Business Combinations
The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed as of the acquisition date. The excess of the fair value of purchase consideration over the fair values of the tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. If applicable, we estimate the fair value of contingent consideration payments in determining the purchase price. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease to operating expenses. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.
Leases
The Company determines if a contract is a lease or contains a lease at the inception of the contract and reassesses that conclusion if the contract is modified. All leases are assessed for classification as an operating lease or a finance lease. Operating lease right-of-use (“ROU”) assets are presented separately on the Company’s Consolidated Balance Sheets. Operating lease liabilities are separated into a current portion, included within accrued liabilities on the Company’s Consolidated Balance Sheets, and a non-current portion included within operating lease liabilities on the Company’s Consolidated Balance Sheets. The Company does not have significant finance lease ROU assets or liabilities. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not obtain and control its right to use the identified asset until the lease commencement date.
The Company’s lease liabilities are recognized at the applicable lease commencement date based on the present value of the lease payments required to be paid over the lease term. Because the rate implicit in the lease is not readily determinable, the Company generally uses an incremental borrowing rate to discount the lease payments to present value. The estimated incremental borrowing rate is derived from information available at the lease commencement date. The Company factors in publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. The Company’s ROU assets are also recognized at the applicable lease commencement date. The ROU asset equals the carrying amount of the related lease liability, adjusted for any lease payments made prior to lease commencement and lease incentives provided by the lessor. Variable lease payments are expensed as incurred and do not factor into the measurement of the applicable ROU asset or lease liability.
The term of the Company’s leases is equal to the non-cancellable period of the lease, including any rent-free periods provided by the lessor, and also include options to renew or extend the lease (including by not terminating the lease) that the Company is reasonably certain to exercise. The Company establishes the term of each lease at lease commencement and reassesses that term in subsequent periods when one of the triggering events outlined in Topic 842, Leases, occurs. Operating lease cost for lease payments is recognized on a straight-line basis over the lease term.
The Company’s lease contracts often include lease and non-lease components. For facility leases, the Company has elected the practical expedient offered by the standard to not separate lease from non-lease components and accounts for them as a single lease component. For the Company’s other contracts that include leases, the Company accounts for the lease and non-lease components separately.
The Company has elected, for all classes of underlying assets, not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less. Lease cost for short-term leases is recognized on a straight-line basis over the lease term. Additionally, for certain facility leases, the Company applies a portfolio approach, whereby it effectively accounts for the operating lease ROU assets and liabilities for multiple leases as a single unit of account because the accounting effect of doing so is not material.
Goodwill and Intangible Assets
Goodwill is tested for impairment at the reporting unit level at a minimum on an annual basis or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The Company conducted its annual impairment test of goodwill in the fourth quarter of 2024 and 2023 and determined that no adjustment to the carrying value of goodwill was required.
Intangible assets consist of purchased customer relationships and developed technology. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from two to five years. No residual value is estimated for intangible assets.
Convertible Debt
Prior to the adoption of ASU 2020-06, the Company bifurcated the debt and equity (the contingently convertible feature) components of its convertible debt instruments in a manner that reflects its nonconvertible debt borrowing rate at the time of issuance. The equity components of the convertible debt instruments were recorded within stockholders’ (deficit) equity net of allocated issuance discount. The debt issuance discount was amortized to interest expense in the Consolidated Statements of Operations using the effective interest method over the expected term of the convertible debt.
Upon adoption of ASU 2020-06 on January 1, 2022, the Company is no longer recording the conversion feature of its convertible notes in equity. Instead, the Company combined the previously separated equity component with the liability component, which together is now classified as debt, thereby eliminating the subsequent amortization of the debt discount as interest expense. Similarly, the portion of issuance costs previously allocated to equity was reclassified to debt and amortized as interest expense. Accordingly, on January 1, 2022 opening balance sheet, the Company recorded a decrease to accumulated deficit of approximately $93.8 million, a decrease to additional paid-in capital of $329.3 million, and an increase to convertible notes, net of approximately $235.5 million.
Supplier Financing Arrangements
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. Some of these financing arrangements are collateralized against property and equipment. As of December 31, 2024 and 2023, the Company’s outstanding financing obligations related to such arrangements included in accrued liabilities and other long-term liabilities were $1.7 million and $4.2 million, respectively.
A summary of activity of the Company’s supplier financing obligations during the year ended December 31, 2024 and 2023 is presented in the following table (in thousands):
Year ended December 31,
20242023
Obligations outstanding at the beginning of period$4,168 $6,587 
Commitments— 2,997 
Payments(2,438)(5,416)
Obligations outstanding at the end of period$1,730 $4,168 
Revenue Recognition
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 or products.
The Company determines revenue recognition through the following steps:
•identification of the contract, or contracts, with a customer;
•identification of the performance obligations in the contract;
•determination of the transaction price;
•allocation of the transaction price to the performance obligations in the contract; and
•recognition of revenue when, or as, the Company satisfies a performance obligation.
The Company recognizes revenues as follows:
Subscriptions revenue
Subscriptions revenue is generated from fees that provide customers access to one or more of the Company’s software applications and related services. These arrangements have contractual terms typically ranging from one month to five years and include recurring fixed plan subscription fees, variable usage-based fees for usage in excess of plan limits, one-time fees, recurring license and other fees, derived from sales through our direct and indirect sales channels, including resellers and distributors, strategic partners and global service providers.
The Company generally bills its subscription fees in advance.
Arrangements with customers do not provide the customer with the right to take possession of the Company’s software at any time. Instead, customers are granted continuous access to the services over the contractual period. The Company transfers control evenly over the contractual period by providing stand-ready service. Accordingly, the fixed consideration related to subscription is recognized over time on a straight-line basis over the contract term beginning on the date the Company’s service is made available to the customer. The Company may offer its customer services for no consideration during the initial months. Such discounts are recognized ratably over the term of the contract.
Fees for additional minutes of usage in excess of plan limits are deemed to be variable consideration that meet the allocation exception for variable consideration as they are specific to the month that the usage occurs.
The Company’s subscription contracts typically allow the customers to terminate their services within the first 30 to 60 days and receive a refund for any amounts paid for the remaining contract period. After the end of the termination period, the contract is non-cancellable and the customer is obligated to pay for the remaining term of the contract. Accordingly, the Company considers the non-cancellable term of the contract to begin after the expiration of the termination period.
The Company records reductions to revenue for estimated sales returns and customer credits at the time the related revenue is recognized. Sales returns and customer credits are estimated based on the Company’s historical experience, current trends and the Company’s expectations regarding future experience. The Company monitors the accuracy of its sales reserve estimates by reviewing actual returns and credits and adjusts them for its future expectations to determine the adequacy of its current and future reserve needs. If actual future returns and credits differ from past experience, additional reserves may be required.
Other revenue
Other revenue primarily includes revenue generated from sale of pre-configured phones and professional implementation services.
Phone revenue is recognized upon transfer of control to the customer which is generally upon shipment from the Company’s or its designated agents’ warehouse.
The Company offers professional services to support implementation and deployment of its subscription services. Professional services do not result in significant customization of the product and are generally short-term in duration. The majority of the Company’s professional services contracts are on a fixed price basis and revenue is recognized as and when services are delivered.
Principal vs. Agent
A portion of the Company’s subscriptions and product revenues are generated through sales by resellers, strategic partners, and global service providers. When the Company controls the performance of contractual obligations to the customer, it records these revenues at the gross amount paid by the customer with amounts retained by the resellers recognized as sales and marketing expenses. The Company assesses control of goods or services when it is primarily responsible for fulfilling the promise to provide the good or service, has inventory risk and has discretion in establishing the price.
Deferred and prepaid sales commission costs
The Company capitalizes sales commission expenses and associated payroll taxes paid to internal sales personnel and resellers, who sell the Company’s offerings. The resellers are selling agents for the Company and earn sales commissions which are directly tied to the value of the contracts that the Company enters with the end-user customers. These sales commissions are incremental costs the Company incurs to obtain contracts with its end-user customers. The Company pays sales commissions on initial contracts and contracts for increased purchases with existing customers (expansion contracts). The Company generally does not pay sales commissions for contract renewals.
These sales commission costs are deferred and then amortized over the expected period of benefit, which is estimated to be five years. The Company has determined the period of benefit taking into consideration the expected subscription term
and expected renewal periods of its customer contracts, the duration of its relationships with its customers considering historical and expected customer retention, technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying Consolidated Statements of Operations. The Company evaluates its deferred and prepaid sales commission costs for possible recoverability whenever events or changes in circumstances have occurred that could indicate the carrying amount of such assets may not be recoverable.
Cost of Revenues
Cost of subscriptions revenue primarily consists of costs of network capacity purchased from third-party telecommunications providers, network operations, costs to build out and maintain data centers, including co-location fees for the right to place the Company’s servers in data centers owned by third parties, depreciation of the servers and equipment, along with related utilities and maintenance costs, amortization of acquired technology related intangible assets, personnel costs associated with customer care and support of the functionality of the Company’s platform and data center operations, including share-based compensation expenses, and allocated costs of facilities and information technology. Cost of subscriptions revenue is expensed as incurred.
Cost of other revenue is comprised primarily of the cost associated with purchased phones, personnel costs for employees and contractors, including share-based compensation expenses, shipping costs, costs of professional services, and allocated costs of facilities and information technology related to the procurement, management and shipment of phones. Cost of other revenue is expensed in the period product is delivered to the customer.
Asset Write-down Charges
Asset write-down charges consist of write-offs related to our assets, including deferred and prepaid sales commission. The Company performs periodic reviews to assess the recoverability of such assets, whenever events or changes in circumstances have occurred that could indicate the carrying amount of such assets may not be recoverable. An impairment loss is recognized if the carrying value of deferred commission asset exceeds the amount of consideration that the Company expects to receive in the future in exchange for goods or services to which the asset relates, less the costs that relate directly to providing those goods or services that have not yet been recognized.
Share-Based Compensation
Share-based compensation expense resulting from options, restricted stock units (“RSUs”), performance-based awards (“PSUs”), and employee stock purchase plan (“ESPP”) rights granted is measured at the grant date fair value of the award and is generally recognized using the straight-line attribution method over the requisite service period of the award, which is generally the vesting period. The Company estimates the fair value of stock options and ESPP rights using the Black-Scholes-Merton option-pricing model. The Company estimates the fair value of RSUs as the closing market value of its Class A Common Stock on the grant date. The Company estimates the fair value of its market condition performance stock units (“PSUs”) using the Monte Carlo simulation model. For awards with performance-based and service-based conditions, compensation cost is recognized using the graded attribution method over the requisite service period if it is probable that the performance condition will be satisfied. The expense for performance-based awards is evaluated each quarter based on the achievement of the performance conditions. The effect of a change in the estimated number of performance-based awards expected to be earned is recognized in the period those estimates are revised. Compensation expense is recognized net of estimated forfeiture activity, which is based on historical forfeiture rates.
Research and Development
Research and development expenses consist primarily of third-party contractor costs, personnel costs, technology license expenses, and depreciation associated with research and development equipment. Research and development costs are expensed as incurred.
Advertising Costs
Advertising costs, which include various forms of e-commerce such as search engine marketing, search engine optimization and online display advertising, as well as more traditional forms of media advertising such as radio and billboards, are expensed as incurred and were $96.0 million, $97.0 million, and $125.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Restructuring Costs
Restructuring costs generally include employee-related severance charges which are largely based upon substantive severance plans, while some are mandated requirements in certain foreign jurisdictions. Severance costs generally include
severance payments, outplacement services, health insurance coverage and legal costs. One-time employee termination benefits are recognized when the plan of termination has been communicated to employees and certain other criteria are met. Other severance and employee costs, primarily pertaining to ongoing employee benefit arrangements, are recognized when it is probable that the employees are entitled to the severance benefits and the amounts can be reasonably estimated.
Income Taxes
The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. As of December 31, 2024, except for deferred tax assets associated with certain foreign subsidiaries, the Company recorded a full valuation allowance against substantially all of its net deferred tax assets due to its history of operating losses. The Company classifies interest and penalties on unrecognized tax benefits as income tax expense.
Related Party Transactions
All contracts with related parties are executed in the ordinary course of business. There were no material related party transactions in the year ended December 31, 2024 and 2023, and no material amounts payable to or amounts receivable from related parties as of December 31, 2024 and 2023. During 2022, the Company made purchases from Google Inc. in the ordinary course of business, which one of the Company’s directors previously served as President, Americas. The total expenses incurred by the Company with Google Inc. for the year ended December 31, 2022 was $24.3 million.
Recent Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09 will have on its financial statement disclosures.
In November 2024, the FASB issued Accounting Standards Update No. 2024-03: Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. The ASU also requires disclosure of the total amount of selling expenses and our definition of selling expenses. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027 on a retrospective or prospective basis, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03 will have on its financial statement disclosures.
Recently Adopted Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07 Segment Reporting - Improvements to Reportable Segment Disclosures (Topic 280). The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. Additionally, the ASU mandates that all annual disclosures currently required under Topic 280 must also be included in interim period financial statements. The update is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years starting after December 15, 2024. Early adoption is permitted. The guidance must be applied retrospectively to all prior periods presented in the financial statements. The Company adopted ASU 2023-07 effective January 1, 2024. While the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements, it did result in additional disclosures. For more details, refer to Note 17 - Segment Information of this Annual Report on Form 10-K.
v3.25.0.1
Revenue
 12 Months Ended
Dec. 31, 2024
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 or products.
Disaggregation of revenue
Revenue by geographic location is based on the billing address of the customer. The following table provides information about disaggregated revenue by primary geographical markets:
Year ended December 31,
202420232022
Primary geographical markets
North America90 %90 %90 %
Others10 %10 %10 %
Total revenues100 %100 %100 %
The Company derived over 90% of subscription revenues from RingEX (formerly RingCentral MVP) and RingCentral contact center solutions for the years ended December 31, 2024, 2023, and 2022. For the years ended December 31, 2024 and 2023 and 2022, RingCentral contact center solutions represented over 10% of total revenues.
Deferred revenue
During the year ended December 31, 2024, the Company recognized approximately all of the corresponding deferred revenue balance at the beginning of the year as revenue.
Remaining performance obligations
The typical subscription term ranges from one month to five years. Contract revenue as of December 31, 2024 that has not yet been recognized was approximately $2.6 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 $51.9 million, $44.8 million, and $46.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.
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Financial Statement Components
 12 Months Ended
Dec. 31, 2024
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):
December 31,
2024		December 31,
2023
Cash$128,308 $113,733 
Money market funds114,503 108,462 
Total cash and cash equivalents$242,811 $222,195 
As of December 31, 2024 and 2023, $7.4 million and $1.1 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):
December 31,
2024		December 31,
2023
Accounts receivable$300,805 $280,544 
Unbilled accounts receivable100,578 96,366 
Allowance for doubtful accounts(15,131)(12,472)
Accounts receivable, net$386,252 $364,438 
Prepaid expenses and other current assets consisted of the following (in thousands):
December 31,
2024		December 31,
2023
Prepaid expenses$39,858 $32,440 
Inventory1,243 1,492 
Other current assets18,343 43,464 
Total prepaid expenses and other current assets$59,444 $77,396 
Property and equipment, net consisted of the following (in thousands):
December 31,
2024		December 31,
2023
Computer hardware and software$252,961 $238,802 
Internal-use software development costs314,944 255,649 
Furniture and fixtures8,965 8,964 
Leasehold improvements12,367 14,369 
Property and equipment, gross589,237 517,784 
Less: accumulated depreciation and amortization(408,587)(333,394)
Property and equipment, net$180,650 $184,390 
Total depreciation and amortization expense related to property and equipment was $86.1 million, $82.9 million, and $72.0 million for the years ended December 31, 2024, 2023 and 2022, respectively. For the year ended December 31, 2024, the Company recognized a non-cash impairment charge of $2.8 million related to abandoned internal-use software. This charge was recorded under research and development expenses in the Consolidated Statements of Operations.
The carrying value of goodwill is as follows (in thousands):
Balance at December 31, 2023$67,370 
Acquisitions (Note 8)
16,809 
Foreign currency translation adjustments(1,193)
Balance at December 31, 2024$82,986 
The carrying values of intangible assets are as follows (in thousands):
December 31, 2024December 31, 2023
Weighted-Average Remaining Useful LifeCostAccumulated
Amortization And Impairment		Acquired
Intangibles,
Net		CostAccumulated
Amortization And Impairment		Acquired
Intangibles,
Net
Customer relationships
4.1 years
$51,312 $25,833 $25,479 $26,506 $21,834 $4,672 
Developed technology
1.9 years
779,794 546,747 233,047 826,077 436,982 389,095 
Total acquired intangible assets$831,106 $572,580 $258,526 $852,583 $458,816 $393,767 
For the year ended December 31, 2024, the Company recognized a gross reduction of $50.6 million related to its developed technology assets. This reduction included $28.5 million due to an amended agreement with a strategic partner and $22.1 million attributed to the retirement of fully amortized developed technology. See Note 5 - Strategic Partnerships for additional information regarding our amended agreement with a strategic partner. During the year ended December 31, 2024, the Company purchased certain intangible assets including customer relationships, developed technology, trademarks and domain names amounting to $29.8 million.
Amortization expense from acquired intangible assets for the years ended December 31, 2024, 2023 and 2022 was $136.5 million, $151.1 million, and $174.5 million, 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 Consolidated Statements of Operations.
Estimated amortization expense for acquired intangible assets for the following fiscal years is as follows (in thousands):
2025$133,453 
2026110,987 
20275,398 
2028 onwards8,688 
Total estimated amortization expense$258,526 
Accrued liabilities consisted of the following (in thousands):
December 31,
2024		December 31,
2023
Accrued compensation and benefits$47,415 $63,009 
Accrued sales, use, and telecom related taxes55,699 43,796 
Accrued marketing and sales commissions36,391 60,528 
Operating lease liabilities, short-term20,445 16,707 
Other accrued expenses123,849 141,592 
Total accrued liabilities$283,799 $325,632 
Deferred and Prepaid Sales Commission Costs
Amortization expense for the deferred and prepaid sales commission costs for the years ended December 31, 2024, 2023 and 2022 were $162.6 million, $138.1 million, and $115.2 million, respectively. There was no asset write-off or impairment loss in relation to the deferred commission costs capitalized for the periods presented.
v3.25.0.1
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2024
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 agreement, and contingent consideration 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:
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 assets carried at fair value were determined using the following inputs (in thousands):
Fair Value at
December 31, 2024		Level 1Level 2Level 3
Cash equivalents:
Money market funds$114,503 $114,503 $— $— 
Other assets:
Interest rate swap derivatives
2,367 — 2,367 — 
Other long-term liabilities:
Contingent consideration 3,000 — — 3,000 
Fair Value at
December 31, 2023		Level 1Level 2Level 3
Cash equivalents:
Money market funds$108,462 $108,462 $— $— 
Other assets:
Interest rate swap derivatives
3,505 — 3,505 — 
Other long-term liabilities:
Interest rate swap derivatives
6,017 — 6,017 — 
Contingent consideration7,461 — — 7,461 
The Company’s other financial instruments, including accounts receivable, other current assets, accounts payable, accrued liabilities and other 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 December 31, 2024, the fair value of the 0% convertible senior notes due 2025 (the “2025 Convertible Notes”) was approximately $160.0 million, and the fair value of the 0% convertible senior notes due 2026 (the “2026 Convertible Notes” and, together with the 2025 Convertible Notes, the “Convertible Notes”) was approximately $557.4 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 December 31, 2024, the carrying amount of the Term Loan was $370.0 million. As there are no embedded features or other variable features, the fair value of the Term Loan approximated its carrying value.
As of December 31, 2024, the fair value of the 8.5% senior notes due 2030 (the “2030 Senior Notes” and, together with the Convertible Notes, the “Notes”) was approximately $423.6 million. The fair value for the 2030 Senior 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.
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.
Fair Value of Contingent Consideration
The contingent consideration as presented in the fair value table above is related to the Company’s acquisition of Hopin in the third quarter of 2023, and represents the future potential earn-out payments based on the achievement of specified performance targets over multiple years, paid quarterly in cash. The fair value of the contingent consideration liability was determined using a Monte Carlo simulation that includes significant unobservable inputs including the discount rate and projected revenues over the earn-out period. This contingent liability was classified as level 3 within the fair value hierarchy. For the year ended December 31, 2024, the estimated fair value of the contingent consideration liability was reduced by $4.5 million. The change in fair value was recorded within general and administrative expenses in the Consolidated Statement of Operations.
v3.25.0.1
Strategic Partnerships
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Strategic Partnerships
Note 5. Strategic Partnerships
Other Strategic Partnerships
During the year ended December 31, 2024, the Company and Mitel amended certain terms of their prior strategic arrangement, pursuant to which Mitel became a non-exclusive partner of the Company. In connection with the transaction, there was a release of $28.5 million of unpaid contingent consideration, which was recorded as a reduction to the developed technology intangible assets.
During the year ended December 31, 2024 and 2023, the Company recorded a gain of $7.7 million, and $11.5 million, respectively, in other income (expense) in the Consolidated Statements of Operations, pursuant to an amended agreement with one of its strategic partners.
Avaya Partnership
In October 2019, the Company entered into certain agreements for a strategic partnership with Avaya LLC (“Avaya”), previously known as Avaya Holdings Corp., and its subsidiaries, including Avaya Inc. (collectively, “Avaya”).
On December 13, 2022, Avaya filed a Form 8-K disclosing ongoing discussions regarding one or more potential financings, refinancings, recapitalizations, reorganizations, restructurings or investment transactions. Further, on February 14, 2023, Avaya initiated an expedited, prepackaged financial restructuring via Chapter 11 with the support of its financial stakeholders. For the year ended December 31, 2022, the Company recorded a non-cash asset write-down charge of $279.3 million, out of which $21.7 million was accrued interest and was recorded in other income (expense) in the Consolidated Statement of Operations. No portion of the impairment charge related to future cash expenditures.
v3.25.0.1
Long-Term Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Long-Term Debt Note 6. Long-Term Debt
The following table sets forth the net carrying amount of the Company’s long-term debt (in thousands):
Debt InstrumentMaturity DateDecember 31, 2024December 31, 2023
2030 Senior Notes
August 15, 2030$400,000 $400,000 
Term Loan under Credit Agreement (1)
February 14, 2028370,000 390,000 
Revolving Credit Facility under Credit Agreement (2)
February 14, 2028— — 
2026 Convertible NotesMarch 15, 2026609,065 609,065 
2025 Convertible NotesMarch 1, 2025161,326 161,326 
Total principal amount1,540,391 1,560,391 
Less: unamortized debt discount and issuance costs on long-term debt(11,258)(14,909)
Less: current portion of long-term debt, net (3)
(181,252)(20,000)
Net carrying amount of long-term debt$1,347,881 $1,525,482 
(1)The Company has $350.0 million available for drawdown under the Term Loan as of December 31, 2024.
(2)The Company has $225.0 million available for borrowing under the Revolving Credit Facility as of December 31, 2024.
(3)The current portion of long-term debt, net as of December 31, 2024 relates to $161.3 million net carrying amount from the 2025 Convertible Notes, and $20.0 million of expected principal payments due on the Term Loan. The Term Loan requires quarterly principal payments of 1.25% of the $400.0 million principal amount drawn, with balance due at maturity.
The following table sets forth the future minimum principal payments for long-term debt as of December 31, 2024 (in thousands):
2025 Convertible Notes2026 Convertible NotesTerm Loan2030 Senior NotesTotal
2025$161,326 $— $20,000 $— $181,326 
2026— 609,065 20,000 — 629,065 
2027— — 20,000 — 20,000 
2028— — 310,000 — 310,000 
2029 onwards— — — 400,000 400,000 
Total principal amount$161,326 $609,065 $370,000 $400,000 $1,540,391 
2030 Senior Notes
In August 2023, the Company issued $400.0 million aggregate principal amount of the 2030 Senior Notes in a private offering. The 2030 Senior Notes are senior unsecured obligations of the Company and bear interest at a fixed rate of 8.5% per annum payable semi-annually in arrears on February 15th and August 15th of each year. The 2030 Senior Notes are guaranteed by the Company’s domestic subsidiaries and are subject to certain covenants and redemption provisions outlined in the indenture governing the 2030 Senior Notes (the “Senior Notes Indenture”). As of December 31, 2024, the carrying value of the outstanding 2030 Senior Notes, net of unamortized debt discount and issuance costs, was $393.1 million, and the Company was in compliance with all covenants under the Senior Notes Indenture. The effective interest rate on the 2030 Senior Notes was 8.9% as of December 31, 2024.
Credit Agreement
In February 2023, the Company entered into a credit agreement with certain lenders, from time to time party thereto and Bank of America, N.A., as administrative agent and as collateral agent (as amended, the “Credit Agreement”), providing for a $200.0 million revolving credit facility (the “Revolving Credit Facility”) and a $400.0 million term loan (the “Term Loan”). In the second quarter of 2023, the Company drew down the initial $400.0 million Term Loan and used the proceeds to repurchase a portion of the 2025 Convertible Notes. The credit facilities were subsequently amended in 2023 and 2024 to increase the Revolving Credit Facility to $225.0 million and the Term Loan to $750.0 million. The proceeds from the Revolving Credit Facility can be used for working capital and general corporate purposes, while the remaining $350.0 million tranches of the Term Loan can be used to repurchase a portion of the Company’s convertible notes and for working capital and general corporate purposes. The credit facilities 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. If on any date that is within 91 days prior to the final scheduled maturity date of any series of the Convertible Notes (defined below), such series of Convertible 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. As of December 31, 2024, $350.0 million of the Term Loan remains available for draw until May 2025. Additionally, the $225.0 million Revolving Credit Facility commitments remains available for draw until February 14, 2028, at which time it will terminate, and all outstanding revolving loans under the facility will be due and payable. The Company will continue to pay a quarterly ticking fee of up to 0.500% per annum on the daily unused amount of the Term Loan and Revolving Credit Facility commitments until the earlier of the funding or the end of the availability period. Any drawdown under the Credit Agreement would be subject to compliance with the restrictive covenants in the Senior Notes Indenture.
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 0.5% per annum, (iii) an adjusted term Secured Overnight Financing Rate (“SOFR”) determined on the basis of a one-month interest period, plus 1.0% and (iv) 1.0%, in each case, plus a margin of between 0.75% and 2.0%; and (b) an adjusted term SOFR rate (based on one, three or six month interest periods), plus a margin of between 1.75% and 3.0%. The applicable margin in each case is determined based on the Company’s total net leverage ratio and varies between tranches of Term Loans. 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 December 31, 2024, the carrying value of the Term Loan, net of unamortized debt discount and issuance costs, was $367.7 million. As of December 31, 2024, the Company incurred $9.8 million of debt issuance costs in connection with the Credit Agreement, of which $7.0 million was capitalized in the Consolidated Balance Sheets and amortized primarily using the effective interest rate over the term of the Credit Agreement, while the remaining amount was expensed in the period incurred. As of December 31, 2024, the effective interest rate on the Term Loan was 7.4%. As of December 31, 2024, the Company was in compliance with all covenants under the Credit Agreement.
Convertible Notes
In March 2020, the Company issued $1.0 billion of the 2025 Convertible Notes, and in September 2020, it issued $650.0 million of the 2026 Convertible Notes. The Convertible Notes are senior, unsecured obligations that do not bear regular interest and the principal amount of the Convertible Notes does not accrete. As of December 31, 2024, the carrying values of the 2025 and 2026 Convertible Notes, net of unamortized debt issuance costs, were $161.3 million and $607.0 million, respectively, and the Company was in compliance with all covenants under the Convertible Notes Indentures.
Other Terms of the Notes
2025 Convertible Notes2026 Convertible 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 
During the three months and twelve months ended December 31, 2024 and prior to December 1, 2024, the conditions allowing holders of the 2025 Convertible Notes to convert were not met. On or after December 1, 2024 until the close of business on the scheduled trading day immediately preceding the maturity date, holders of the 2025 Convertible Notes may convert their 2025 Convertible Notes at any time. During the three months and twelve months ended December 31, 2024, the conditions allowing holders of the 2026 Convertible Notes to convert were not met. The 2026 Convertible Notes may be convertible thereafter if one or more of the conversion conditions specified in the indenture governing the 2026 Convertible Notes is satisfied during future measurement periods.
Partial Repurchase of 2025 and 2026 Convertible Notes
In May 2023, the Company used the entire proceeds from the drawdown of the $400.0 million Term Loan and $27.3 million of other available cash to repurchase $460.7 million principal amount of the 2025 Convertible Notes, resulting in a gain on early debt extinguishment of $31.1 million, net of related unamortized debt issuance costs.
In August 2023, the Company used a portion of the net proceeds from the offering of the 2030 Senior Notes to repurchase $125.3 million and $40.9 million principal of the 2025 Convertible Notes and 2026 Convertible Notes, respectively, by paying an aggregate amount of $153.6 million in cash, resulting in a gain on early debt extinguishment of $11.8 million, net of related unamortized debt issuance costs.
In December 2023, the Company used a portion of the remaining net proceeds from the offering of the 2030 Senior Notes to repurchase $252.7 million principal of the 2025 Convertible Notes by paying $241.3 million in cash, resulting in a gain of early debt extinguishment in the amount of $10.5 million, net of related unamortized debt issuance costs.
Capped Calls
In connection with the offering of the 2026 Convertible Notes, the Company entered into privately-negotiated capped call transactions with certain counterparties (the “Capped Calls”). The initial strike price of the 2026 Convertible Notes corresponds to the initial conversion price of the 2026 Convertible 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 2026 Convertible Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price.
The following table below sets forth key terms and costs incurred for the outstanding Capped Calls:
2026 Convertible Notes
Initial approximate strike price per share, subject to certain adjustments$424.03 
Initial cap price per share, subject to certain adjustments$556.10 
Net cost incurred (in millions)$41.8 
Class A Common Stock covered, subject to anti-dilution adjustments (in millions)1.5
Settlement commencement date2/13/2025
Settlement expiration date3/13/2025
The following table sets forth the interest expense recognized related to long-term debt (in thousands):
Twelve Months Ended December 31,
202420232022
Contractual interest expense$59,138 $29,285 $— 
Amortization of debt discount and issuance costs4,272 4,566 4,468 
Total interest expense related to long-term debt$63,410 $33,851 $4,468 
The following table sets forth the future minimum contractual interest for long-term debt as of December 31, 2024 (in thousands):
Term Loan (1)
2030 Senior NotesTotal
2025$23,160 $34,000 $57,160 
202621,882 34,000 55,882 
202720,605 34,000 54,605 
20282,421 34,000 36,421 
2029 onwards— 68,000 68,000 
Total contractual interest amount$68,068 $204,000 $272,068 
(1)Includes the impact of interest rate swap. Refer to Note 7 - Derivative Instruments in this Annual Report on Form 10-K for additional information.
v3.25.0.1
Derivative Instruments
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
Note 7. 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 became effective on June 30, 2023, and terminates on February 14, 2028, consistent with the duration of the maturity of the Term Loan. As of December 31, 2024, the interest rate swap agreement had a notional amount of $370.0 million.
The Company’s interest rate swap agreement is designated as a cash flow hedge under ASC 815, Derivatives and Hedging (“ASC 815”). 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 does not hold its interest rate swap agreement for trading or speculative purposes. The Company will recognize its interest rate derivative designated as a cash flow hedge on a gross basis as an asset and a liability at fair value in the Consolidated Balance Sheets. The unrealized gains and losses on the interest rate swap agreement are included in other comprehensive (loss) income and will be subsequently recognized in earnings within or against interest expense when the hedged interest payments are accrued.
As of December 31, 2024, the Company estimates the net amount related to the interest rate swaps under the interest rate swap agreement expected to be reclassified into earnings over the next 12 months is approximately $1.2 million. During the year ended December 31, 2024, the Company reclassified $5.3 million from accumulated other comprehensive loss to earnings as an offset and reduction to interest expense.
v3.25.0.1
Business Combinations
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Business Combinations
Note 8. Business Combinations
On June 21, 2024, the Company acquired certain customer relationships, intellectual property assets, and supporting operations and personnel for Mitel’s MiCloud Connect & Sky UCaaS offerings for a cash consideration of $26.3 million. The transaction was accounted for as a business combination. The preliminary purchase price was allocated based on the estimated fair value of the acquired customer relationships and developed technology intangible assets of $25.3 million and $2.0 million, respectively, net acquired liabilities of $8.7 million, and goodwill of $7.7 million.
During the three months ended December 31, 2024, the Company recorded a measurement period adjustment of $9.1 million relating to liability from a vendor contract. As a result, the acquired liabilities increased by $9.1 million, with a corresponding increase in goodwill. The amortizable intangible assets have a weighted-average useful life of approximately five years. The goodwill recognized was attributable primarily to the assembled workforce and synergies. Transaction costs related to the acquisition of $3.6 million were expensed as incurred as general and administrative expenses. The Company included the results of operations from the acquisition date, which were not material, in the consolidated financial statements.
On July 31, 2023, the Company completed its acquisition of certain assets of Hopin, Inc. (“Hopin”), a virtual events platform that aims to connect people around the world through immersive and interactive online experiences. The total purchase price consideration of $22.2 million consisted of $14.7 million in cash, and the acquisition date fair value of contingent consideration of $7.5 million, out of total maximum contingent consideration of $35.0 million based on the achievement of specified performance targets by the Hopin business over multiple years, paid quarterly in cash. The transaction was accounted for as a business combination. The allocation of the purchase price based on their estimated fair values included $12.7 million for acquired technology and customer relationships, less $3.3 million for net acquired liabilities, with the remaining $12.8 million allocated to goodwill. The amortizable intangible assets have a weighted-average useful life of three years. The goodwill recognized was attributable primarily to the contributions of the acquired technology and customer relationships to the overall corporate strategy and assembled workforce. As of December 31, 2024, the estimated fair value of the contingent consideration liability was reduced by $4.5 million. The change in fair value was recorded within general and administrative expenses in the Consolidated Statement of Operations. For further details on the fair value measurement of the Hopin contingent consideration, please refer to Note 4 - Fair Value of Financial Instruments in this Annual Report on Form 10-K.
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases
Note 9. 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 December 31, 2024, non-cancelable leases expire on various dates between 2025 and 2029.
Generally, the non-cancelable leases include one or more options to renew, with renewal terms that can extend the lease term from one to six years. The Company has the right to exercise or forego the lease renewal options. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As of December 31, 2024 and 2023, the balance sheet components of leases were as follows (in thousands):
December 31, 2024December 31, 2023
Operating lease right-of-use assets$46,463 $42,989 
Accrued liabilities$20,445 $16,707 
Operating lease liabilities29,733 28,178 
Total operating lease liabilities$50,178 $44,885 
The components of operating lease expense were as follows (in thousands):
Twelve Months Ended December 31,
202420232022
Operating lease cost (1)
$25,167 $23,315 $22,800 
Variable lease cost (2)
4,560 4,412 3,930 
Total lease cost$29,727 $27,727 $26,730 
(1)Includes short-term lease costs, which were not material in the years ended December 31, 2024, 2023, and 2022.
(2)Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate.
As of December 31, 2024, maturities of operating lease liabilities were as follows (in thousands):
Year Ending December 31,
2025$23,000 
202618,024 
20278,587 
20284,227 
2029 onwards816 
Total future minimum lease payments54,654 
Less: Imputed interest(4,476)
Present value of lease liabilities$50,178 
The supplemental cash flow information related to operating leases for the twelve months ended December 31, 2024 and 2023 were as follows (in thousands):
Year ended December 31,
20242023
Operating cash flows resulting from operating leases:
Cash paid for amounts included in the measurement of lease liabilities$21,876 $22,844 
New ROU assets obtained in exchange of lease liabilities:
Operating leases$24,966 $27,846 
Other information related to operating leases were as follows:
December 31, 2024December 31, 2023
Weighted-average remaining operating lease term (years)2.63.0
Weighted-average operating lease discount rate6.6 %7.0 %
As of December 31, 2024, the Company has additional operating leases of approximately $0.8 million that have not yet commenced and, as such, have not yet been recognized on the Company's Consolidated Balance Sheet. These operating leases are expected to commence in the first quarter of 2025 with minimum lease terms of approximately one year.
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 10. 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.
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 then engaged in discovery. The Company filed a motion for summary judgment (“MSJ”) on February 16, 2024. An evidentiary hearing was held on August 2, 2024 and a hearing on the MSJ was held on October 11, 2024, whereupon, the Court granted the Company’s motion for summary judgement. The Court entered judgment in RingCentral’s favor on November 5, 2024, and the plaintiff filed a notice of appeal on January 6, 2025. 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 consolidated financial statements, it is not reasonably possible to provide an estimated amount of any such loss or range of loss that may occur.
Employee Agreements
The Company has signed various employment agreements with executives and key employees pursuant to which if the Company terminates their employment without cause or if the employee terminates his or her employment for good reason following a change of control of the Company, the employees are entitled to receive certain benefits, including severance payments, accelerated vesting of stock options and RSUs, and continued COBRA coverage.
Indemnification
Certain of the Company’s agreements with resellers and customers include provisions for indemnification against liabilities if their subscriptions infringe upon a third party’s intellectual property rights. At least quarterly, the Company assesses the status of any significant matters and its potential financial statement exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, the Company accrues a liability for the estimated loss. The Company has not incurred any material costs as a result of such indemnification provisions. The Company has not accrued any material liabilities related to such obligations as of December 31, 2024 and 2023.
Purchase Obligations
Our purchase obligations are primarily related to third-party managed hosting services and represent our non-cancellable open purchase orders and contractual obligations for which we have not received the goods or services.
The following table sets forth our non-cancellable open purchase obligations for each of the next five years and thereafter as of December 31, 2024 (in thousands):
Purchase Obligations
2025$63,758 
202640,544 
202729,577 
202828,274 
20294,135 
Total$166,288 
v3.25.0.1
Stockholders’ Deficit and Convertible Preferred Stock
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Stockholders’ Deficit and Convertible Preferred Stock
Note 11. Stockholders’ Deficit and Convertible Preferred Stock
In connection with the Company’s initial public offering, the Company reincorporated in Delaware on September 26, 2013. The Delaware certificate of incorporation provides for two classes of common stock: Class A and Class B Common Stock, both with a par value of $0.0001 per share. In addition, the certificate of incorporation authorizes shares of undesignated preferred stock with a par value of $0.0001 per share, pursuant to which on November 9, 2021, the Company filed a certificate of designations authorizing the issuance of 200,000 shares of Series A Convertible Preferred Stock. The terms of preferred stock are described below.
Preferred Stock
The board of directors may, without further action by the stockholders, fix the powers, designations, preferences, or relative participating, optional, or other rights, and the qualifications, limitations, and restrictions of up to an aggregate of 100,000,000 shares of preferred stock in one or more series and authorizes their issuance. These rights, preferences, and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of the Class A and Class B Common Stock. As of December 31, 2024 and 2023, there were 100,000,000 shares of preferred stock authorized, 200,000 shares of which are issued and outstanding as Series A Convertible Preferred Stock.
Class A and Class B Common Stock
The Company has authorized 1,000,000,000 and 250,000,000 shares of Class A Common Stock and Class B Common Stock for issuance, respectively. Holders of Class A Common Stock and Class B Common Stock have identical rights for matters submitted to a vote of the Company’s stockholders. Holders of Class A Common Stock are entitled to one vote per share of Class A Common Stock and holders of Class B Common Stock are entitled to 10 votes per share of Class B Common Stock. Holders of shares of Class A Common Stock and Class B Common Stock vote together as a single class on all matters (including the election of directors) except for specific circumstances that would adversely affect the powers, preferences, or rights of a particular class of Common Stock. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, holders of Class A and Class B Common Stock share equally, identically and ratably, on a per share basis, with respect to any dividend or distribution of cash, property or shares of the Company’s capital stock. Holders of Class A and Class B Common Stock also share equally, identically, and ratably in all assets remaining after the payment of any liabilities and liquidation preferences and any accrued or declared but unpaid dividends, if any, with respect to any outstanding preferred stock at the time. Each share of Class B Common Stock is convertible at any time at the option of the holder into one share of Class A Common Stock. In addition, each share of Class B Common Stock will convert automatically to Class A Common Stock upon: (i) the date specified by an affirmative vote or written consent of holders of at least 67% of the outstanding shares of Class B Common Stock, (ii) the date on which the number of outstanding shares of Class B Common Stock represents less than 10% of the aggregate combined number of outstanding shares of Class A Common Stock and Class B Common Stock, or (iii) any time seven years after the Company’s initial public offering (October 2, 2020), when a stockholder owns less than 50% of the shares of Class B Common Stock that such holder owned immediately prior to completion of the initial public offering.
Shares of Class A Common Stock reserved for future issuance were as follows (in thousands):
December 31, 2024
Preferred stock100,000 
Class B Common Stock9,805 
2013 Employee stock purchase plan6,565 
2013 Equity incentive plan:
Outstanding options and restricted stock unit awards8,306 
Available for future grants13,769 
138,445 
Share Repurchase Programs
Under the Company’s share repurchase 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, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, 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 following tables summarizes the share repurchase activity of the Company’s Class A Common Stock (in thousands):
Twelve Months Ended December 31,
202420232022
SharesAmountSharesAmountSharesAmount
Repurchases under share repurchase programs9,600 $316,923 10,066 $314,964 2,297 $99,748 
Excise tax withholdings and broker’s commissions
— 1,040 — 1,357 — 45 
Total repurchases of common stock9,600 $317,963 10,066 $316,321 2,297 99,793 
As of December 31, 2024, approximately $168.1 million remained authorized and available under the Company’s share repurchase programs for future share repurchases. The Inflation Reduction Act of 2022 imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. During the year ended December 31, 2024, 2023 and 2022, the Company included the applicable excise tax withholdings and/or broker’s commissions in additional paid-in capital as part of the cost basis of repurchased stock. A corresponding liability for excise taxes payable was recorded in accrued liabilities on the Consolidated Balance Sheets.
On February 14, 2025, the Company’s board of directors further increased their authorization by $100.0 million, subject to certain limitations. This authorization does not expire. Refer to Note 18 – Subsequent Events in this Annual Report on Form 10-K for additional information.
During the year ended December 31, 2024, the Company paid $322.4 million on share repurchases, which included $4.1 million that was pending from the prior year, along with $1.4 million in excise taxes and broker’s commissions.
The following table summarizes the number of shares of the Company’s Class A Common Stock repurchased and settled under share repurchase programs for the twelve months ended months ended December 31, 2024, 2023 and 2022 (in thousands):
Repurchases during the year ended December 31, 20222,297 
Repurchases unsettled as of December 31, 2022— 
Prior year repurchases settled during the year ended December 31, 2022— 
Total repurchases settled during the year ended December 31, 20222,297 
Repurchases during the year ended December 31, 202310,066 
Repurchases unsettled as of December 31, 2023(118)
Prior year repurchases settled during the year ended December 31, 2023— 
Total repurchases settled during the year ended December 31, 20239,948 
Repurchases during the year ended December 31, 20249,600 
Repurchases unsettled as of December 31, 2024— 
Prior year repurchases settled during the year ended December 31, 2024118 
Total repurchases settled during the year ended December 31, 20249,718 
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 on the Consolidated Balance Sheet. As of December 31, 2024 and 2023, 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.
v3.25.0.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
Note 12. Share-Based Compensation
A summary of share-based compensation expense recognized in the Company’s Consolidated Statements of Operations is as follows (in thousands):
Year ended December 31,
202420232022
Cost of revenues$30,322 $36,484 $34,269 
Research and development76,971 93,961 88,846 
Sales and marketing134,659 151,221 151,950 
General and administrative97,107 145,013 110,944 
Total share-based compensation expense$339,059 $426,679 $386,009 
A summary of share-based compensation expense by award type is as follows (in thousands):
Year ended December 31,
202420232022
Employee stock purchase plan rights (“ESPP”)$6,338 $7,574 $7,719 
Performance stock units (“PSUs”)20,624 27,035 1,737 
Restricted stock units (“RSUs”)312,097 392,070 376,553 
Total share-based compensation expense$339,059 $426,679 $386,009 
Equity Incentive Plans
In September 2013, the Board adopted and the Company’s stockholders approved the 2013 Equity Incentive Plan, which became effective on September 26, 2013, and the stockholders approved an amended and restated 2013 Equity Plan on December 15, 2022 (together, “2013 Plan”). In connection with the adoption of the 2013 Plan, the Company terminated the 2010 Equity Incentive Plan (“2010 Plan”), under which stock options had been granted prior to September 26, 2013. The 2010 Plan was established in September 2010, when the 2003 Equity Incentive Plan (“2003 Plan”) was terminated. After the termination of the 2003 and 2010 Plans, no additional options were granted under these plans; however, options previously granted under these plans will continue to be governed by these plans and were exercisable into shares of Class B Common Stock. In addition, options authorized to be granted under the 2003 and 2010 Plans, including forfeitures of previously granted awards, are authorized for grant under the 2013 Plan.
A total of 6,200,000 shares of Class A Common Stock were originally reserved for issuance under the 2013 Plan. The 2013 Plan includes an annual increase on the first day of each fiscal year beginning in 2014, equal to the least of: (i) 6,200,000 shares of Class A Common Stock; (ii) 5% of the outstanding shares of all classes of common stock as of the last day of the Company’s immediately preceding fiscal year; or (iii) such other amount as the board of directors may determine. During the year ended December 31, 2024, a total of 4,673,390 shares of Class A Common Stock were added to the 2013 Plan in connection with the annual automatic increase provision. As of December 31, 2024, a total of 13,769,177 shares remain available for grant under the 2013 Plan.
The plans permit the grant of stock options and other share-based awards, such as restricted stock units, to employees, officers, directors, and consultants by the board of directors. Option awards are generally granted with an exercise price equal to the fair market value of the Company’s Class A Common Stock at the date of grant. Option awards generally vest according to a graded vesting schedule based on four years of continuous service. On January 29, 2014, the board of directors approved an amendment to decrease the contractual term of all equity awards issued from the 2013 Plan from 10 years to 7 years for all awards granted after January 29, 2014. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the option agreement) and early exercise of options prior to vesting (subject to the Company’s repurchase right).
A summary of option activity under all of the Company’s equity incentive plans and changes during the period then ended December 31, 2024, 2023, and 2022 is presented in the following table:
Number of
Options
Outstanding
(in thousands)		Weighted-
Average
Exercise Price
Per Share		Weighted-
Average
Contractual
Term
(in Years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding at December 31, 2021154 $9.12 0.9$27,465 
Exercised(132)8.54 
Canceled/Forfeited— — 
Outstanding at December 31, 202222 $12.53 0.5$509 
Exercised(22)12.53 
Canceled/Forfeited— — 
Outstanding at December 31, 2023— $— 0.0$— 
Exercised— — 
Canceled/Forfeited— — 
Outstanding at December 31, 2024— $— 0.0$— 
Vested and expected to vest as of December 31, 2024— $— 0.0$— 
Exercisable as of December 31, 2024— $— 0.0$— 

No options were granted during the years ended December 31, 2024 and 2023. The total intrinsic value of options exercised during year ended December 31, 2024 and 2023 was immaterial. There is no remaining unamortized share-based compensation expense related to these options.
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 of up to the lesser of 15% of their eligible compensation or the IRS allowable limit per calendar year. A participant may purchase a maximum of 3,000 shares during an offering period. The offering periods are for a period of six months and generally start on the first trading day on or after May 13th and November 13th of each year. At the end of the offering period, the purchase price is set at the lower of: (i) 85% of the fair value of the Company’s common stock at the beginning of the six-month offering period and (ii) 85% of the fair value of the Company’s Class A Common Stock at the end of the six-month offering period.
The ESPP provides for annual increases in the number of shares available for issuance under the ESPP on the first day of each fiscal year beginning in fiscal 2014, equal to the least of: (i) 1% of the outstanding shares of all classes of common stock on the last day of the immediately preceding year; (ii) 1,250,000 shares; or (iii) such other amount as may be determined by the board of directors. During the year ended December 31, 2024, a total of 934,678 shares of Class A Common Stock were added to the ESPP Plan in connection with the annual increase provision. As of December 31, 2024, a total of 6,564,718 shares were available for issuance under the ESPP.
The weighted-average assumptions used to value ESPP rights under the Black-Scholes-Merton option-pricing model and the resulting offering grant date fair value of ESPP rights granted in the periods presented were as follows:
Year ended December 31,
202420232022
Expected term (in years)0.50.50.5
Expected volatility46 %67 %81 %
Risk-free interest rate4.89 %5.36 %3.01 %
Expected dividend yield0 %0 %0 %
Offering grant date fair value of ESPP rights$10.59 $9.38 $20.18 
As of December 31, 2024 and 2023, there was approximately $2.5 million and $3.2 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to ESPP, which will be recognized on a straight-line basis over the remaining weighted-average vesting periods of approximately 0.4 years.
Restricted and Performance Stock Units
A summary of activity of restricted and performance-based stock units as of December 31, 2024, 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 at December 31, 20212,851 $258.26 $534,186 
Granted5,999 72.96 
Released(2,787)131.18 
Canceled/Forfeited(963)206.32 
Outstanding at December 31, 20225,100 $119.55 $180,577 
Granted13,666 32.16 
Released(5,891)61.12 
Canceled/Forfeited(2,828)57.29 
Outstanding at December 31, 202310,047 $52.47 $325,153 
Granted6,947 36.34 
Released(6,226)53.15 
Canceled/Forfeited(2,462)40.28 
Outstanding at December 31, 20248,306 $42.09 $290,799 
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 three or four years.
As of December 31, 2024 and 2023, there was a total of $250.4 million and $393.5 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 periods of approximately 2.1 years and 2.6 years, respectively.
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. The Company uses a Monte Carlo simulation model to determine the fair value of its market condition PSUs. PSU expense is recognized using the graded vesting 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.
For the majority of the PSUs granted, the number of shares of common stock to be issued at vesting will range from 0% to 200% of the target number based on the achievement of the different performance and market conditions over the respective measurement period. The PSUs generally vest over a two- or three-year period.
As of December 31, 2024 and 2023, there was a total of $22.5 million and $19.5 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 0.9 years and 2.1 years, respectively.
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 year ended December 31, 2024 and 2023, the Company issued 1,395,903 and 2,222,098 RSUs, respectively, under these Plans. The shares under these Plans are issued from the reserve of shares available for issuance under the 2013 Plan. The total requisite service period for these Plans is approximately 0.4 years.
The unrecognized share-based compensation expense as of December 31, 2024 was approximately $4.4 million, which will be recognized over the remaining service period of 0.1 years. The shares issued under these Plans are issued from the reserve of shares available for issuance under the 2013 Plan.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
Note 13. Income Taxes
Net loss before provision for income taxes consisted of the following (in thousands):
Year ended December 31,
202420232022
United States$(88,910)$(190,912)$(898,036)
International41,685 34,067 23,983 
Total net loss before provision for income taxes$(47,225)$(156,845)$(874,053)
The provision for income taxes consisted of the following (in thousands):
Year ended December 31,
202420232022
Current
Federal$2,930 $— $— 
State5,919 1,792 1,104 
Foreign5,849 5,972 4,710 
Total current$14,698 $7,764 $5,814 
Deferred
Federal$— $— $— 
State— — — 
Foreign(3,635)631 (701)
Total deferred(3,635)631 (701)
Total income tax provision$11,063 $8,395 $5,113 
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 $8.8 million for the year ended December 31, 2024, which includes $2.9 million for federal and $5.9 million for state taxes. The current income tax provision is primarily for federal, state and foreign taxes currently payable that we anticipate paying as a result of statutory limitations on our ability to offset expected taxable income with net operating loss carry forwards.
The provision for income taxes differed from the amounts computed by applying the U.S. federal income tax rate to pretax loss as a result of the following (in thousands):
 Year ended December 31,
 202420232022
Federal tax benefit at statutory rate$(9,917)$(32,937)$(183,551)
State tax, net of federal tax benefit4,676 1,415 848 
Research and development credits6,650 (11,574)(12,830)
Share-based compensation34,227 10,956 5,828 
Debt extinguishment— — 19 
Global Intangible Low-Taxed Income (“GILTI”)— 3,035 — 
Foreign derived intangible income (“FDII”)(2,143)— — 
Other permanent differences(983)1,674 3,143 
Foreign tax rate differential(2,624)548 (2,497)
Net operating (gains) losses not recognized(18,823)35,278 194,153 
Release of valuation allowance associated with acquisitions— — — 
Total income tax provision$11,063 $8,395 $5,113 
In general, it is the Company’s practice and intention to reinvest the earnings of its non-U.S. subsidiaries in those operations. Because the Company’s non-U.S. subsidiary earnings have previously been subject to the one-time transition tax on foreign earnings required by the 2017 Tax Act, any additional taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of its foreign investments would generally be limited to foreign withholding taxes and/or U.S. state income taxes.
The types of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands):
Year ended December 31,
20242023
Deferred tax assets
Net operating loss and credit carry-forwards$407,235 $463,400 
Research and development credits73,352 87,111 
Research and development expenditure capitalization201,814 130,792 
Basis difference in investments138 40,655 
Sales tax accrual67 67 
Share-based compensation5,926 21,014 
Acquired intangibles91,943 76,171 
Accrued liabilities15,141 17,994 
Gross deferred tax assets795,616 837,204 
Valuation allowance(644,379)(674,720)
Total deferred tax assets151,237 162,484 
Deferred tax liabilities
Deferred sales commissions(104,236)(117,875)
Lease right of use assets(6,948)(8,255)
Property and equipment(35,837)(35,753)
Net deferred tax assets$4,216 $601 
As of December 31, 2024, the Company has federal net operating loss carryforwards of approximately $1.4 billion, which does not expire. As of December 31, 2024, the Company had foreign net operating loss carryforwards of approximately $15.5 million that will carryforward indefinitely. As of December 31, 2024, the Company had state net operating loss carryforwards of approximately $1.2 billion that will begin to expire in 2025. The Company also has research credit carryforwards for federal and California tax purposes of approximately $67.8 million and $54.1 million, respectively, available to reduce future income subject to income taxes. The federal research credit carry-forwards will begin to expire in 2028 and the California research credits carry forward indefinitely.
The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses may be limited as prescribed under Internal Revenue Code Section 382 (“IRC Section 382”). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Utilization of the federal and state net operating losses may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions.
The Company’s management believes that, based on a number of factors, it is more likely than not, that all or some portion of the deferred tax assets will not be realized; and accordingly, for the year ended December 31, 2024, the Company has provided a valuation allowance against the Company’s U.S. net deferred tax assets. The net change in the valuation allowance for the years ended December 31, 2024 and 2023 was a decrease of $30.3 million and an increase of $5.0 million, respectively.
The following shows the changes in the gross amount of unrecognized tax benefits as of December 31, 2024 (in thousands):
202420232022
Unrecognized tax benefits, beginning of the year$31,976 $26,412 $20,010 
Increases related to prior year tax positions— — — 
Decreases related to prior year tax positions(3,088)(418)— 
Increases related to current year tax positions1,305 5,982 6,402 
Unrecognized tax benefits, end of year$30,193 $31,976 $26,412 
In accordance with ASC 740-10, Income Taxes, the Company has adopted the accounting policy that interest and penalties recognized are classified as part of its income taxes.
The Company does not anticipate that its total unrecognized tax benefits will significantly change due to settlement of examination or the expiration of statute of limitations during the next 12 months. Included in the balance of unrecognized tax benefits as of December 31, 2024 are $0.3 million of tax benefit that, if recognized, would affect the effective tax rate. Otherwise, as a result of the full valuation allowance as of December 31, 2024, current adjustments to the unrecognized tax benefit will not have an impact on our effective income tax rate. Any adjustments made after the valuation allowance is released will have an impact on the tax rate.
The Company files U.S. and foreign income tax returns with varying statutes of limitations. Due to the Company’s net carry-over of unused operating losses and tax credits, all years from 2003 forward remain subject to future examination by tax authorities.
v3.25.0.1
Basic and Diluted Net Loss Per Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Basic and Diluted Net Loss Per Share
Note 14. Basic and Diluted Net Loss Per Share
Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, stock options, restricted stock units, performance stock units, ESPP, convertible notes, and convertible preferred stock, to the extent dilutive. For the years ended December 31, 2024, 2023 and 2022, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive.
The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except per share data):
Year Ended December 31,
202420232022
Numerator
Net loss$(58,288)$(165,240)$(879,166)
Denominator
Weighted-average common shares outstanding for basic and diluted net loss per share92,110 94,912 95,239 
Basic net income (loss) per share$(0.63)$(1.74)$(9.23)
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):
Year Ended December 31,
202420232022
Shares of common stock issuable under equity incentive plans outstanding9,860 9,999 4,050 
Shares of common stock related to convertible preferred stock743 743 743 
Potential common shares excluded from diluted net loss per share10,603 10,742 4,793 
Pursuant to the terms of the respective Convertible Notes Indentures, effective January 1, 2022, the Company made an irrevocable election to, upon conversions of the Convertible Notes, settle the principal portion of such converted Convertible Notes only in cash, with the conversion premium to be settled in cash or shares at the Company’s election.
The Company calculates the potential dilutive effect of its Convertible Notes under the if-converted method. Under this method, only the amounts settled in excess of the principal will be considered in diluted earnings per share, in line with the terms of the Convertible Notes Indentures.
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 Convertible Notes as this effect would be anti-dilutive. In the event of conversion of the Convertible 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 Convertible Notes.
v3.25.0.1
401(k) Plan
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
401(k) Plan
Note 15. 401(k) Plan
The Company has a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code covering eligible employees. Substantially all of the U.S. employees are eligible to make contributions to the 401(k) plan. The Company matches 401(k) based on the amount of the employees’ contributions subject to certain limitations. Employer contributions were $6.0 million, $6.2 million, and $6.9 million for the years ended December 31, 2024, 2023 and 2022.
v3.25.0.1
Restructuring Activities
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Activities
Note 16. Restructuring Activities
During the year ended December 31, 2024, the Company incurred restructuring costs of $12.6 million as part of the broader efforts to optimize the Company’s cost structure. The restructuring costs primarily consisted of severance payments, employee benefits and related costs. The Company expects to substantially complete these actions in 2025, subject to local law and consultation requirements in certain countries. The Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur as a result of or in connection with the implementation of these actions.
The following table summarizes the Company’s restructuring costs that were recorded as an operating expense in the accompanying Consolidated Statement of Operations for the year ended December 31, 2024, 2023 and 2022 (in thousands):
Year Ended December 31,
202420232022
Cost of revenues$1,334 $876 $457 
Research and development3,215 4,457 5,321 
Sales and marketing5,885 8,758 9,695 
General and administrative2,201 6,277 2,711 
Total restructuring costs$12,635 $20,368 $18,184 
The following table summarizes the Company’s restructuring liability that is included in accrued liabilities in the accompanying Consolidated Balance Sheets (in thousands):
Balance as of December 31, 2022$5,485 
Restructuring costs20,368 
Cash payments(22,662)
Balance as of December 31, 2023$3,191 
Restructuring costs12,635 
Cash payments(14,209)
Balance as of December 31, 2024$1,617 
v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
Note 17. Segment Information
The Chief Executive Officer (“CEO”), who functions as the chief operating decision maker (“CODM”), oversees the Company’s business activities at the consolidated level as a single operating and reportable segment. The factors used to identify the Company’s single operating segment include the organizational structure of the Company and the financial information available for evaluation by the CODM. The CODM uses consolidated net income (or loss) and operating margin to evaluate financial performance and make decisions regarding resource allocation, including setting target revenue growth and distributing the budget across cost of revenues, research and development, sales and marketing, and general and administrative expenses.
The following table presents selected financial information for the Company’s single operating segment for the years ended December 31, 2024, 2023 and 2022:
Twelve Months Ended December 31,
202420232022
Revenue$2,400,395 $2,202,429 $1,988,330 
Less:
Share-based compensation expense339,059 426,679 386,009 
Asset write-down charges— — 283,689 
Depreciation and amortization222,609 233,940 246,561 
Other segment items (1)
1,836,057 1,740,621 1,721,546 
Income (loss) from operations2,670 (198,811)(649,475)
Operating margin as % of revenue0.1 %(9.0)%(32.7)%
Other income (expense), net
Interest expense(64,995)(35,997)(4,807)
Other income (expense) (2)
15,100 77,963 (219,771)
Other income (expense), net(49,895)41,966 (224,578)
Loss before income taxes(47,225)(156,845)(874,053)
Provision for income taxes11,063 8,395 5,113 
Net loss$(58,288)$(165,240)$(879,166)
(1)Other segment items mainly consist of personnel costs, third-party commissions, and advertising and marketing costs.
(2)Includes interest income of $8.0 million, $12.5 million and $2.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.
See the consolidated financial statements for other financial information regarding the Company’s operating segment.
Refer to Note 2 - Revenue in this Annual Report on Form 10-K for information about revenue by geographic location.
Concentrations
Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Although the Company deposits its cash with multiple financial institutions, its deposits, at times, may exceed federally insured limits. The Company’s accounts receivable are primarily derived from sales by resellers and to direct customers. The Company maintains an allowance for doubtful accounts for estimated potential credit losses. As of December 31, 2024 and 2023 and 2022, and for the years then ended, none of the Company’s customers accounted for more than 10% of total accounts receivable, total revenues, or subscription revenues.
Long-lived assets by geographic location is based on the location of the legal entity that owns the asset. As of December 31, 2024 and 2023, approximately 90% and 94%, of the Company’s consolidated long-lived assets, respectively, 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 as of December 31, 2024 and 2023.
v3.25.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events
Note 18. Subsequent Events
Share Repurchase Program
On February 14, 2025, the Company’s board of directors authorized an incremental $100.0 million under its share repurchase programs which, combined with the remaining $168.1 million available under previous authorizations as of December 31, 2024, results in approximately $268.1 million available to repurchase outstanding shares of the Company’s Class A Common Stock. Share repurchases may be made at the Company’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, subject to a minimum cash balance and certain other limitations. The Company’s share repurchase programs do not obligate the Company to repurchase any specific dollar amount or to acquire any specific number of shares of its Class A Common Stock. The timing and number of any shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The authorization under this program does not expire.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net loss $ (58,288) $ (165,240) $ (879,166)
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Dec. 31, 2024
shares
Dec. 31, 2024
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Abhey Lamba [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On December 12, 2024, Abhey Lamba, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 81,387 shares of Class A common stock. The number of shares that may be sold under the trading arrangement may also be increased by the number of shares of the company’s Class A common stock, if any (not yet determinable) that are awarded to Mr. Lamba under the company’s employee equity bonus and executive equity compensation plans. The number of shares that may be sold under the trading arrangement will be reduced by the number of shares (not yet determinable) withheld to satisfy tax obligations upon the vesting of certain outstanding equity awards. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until December 31, 2025 or earlier if all transactions under the trading arrangement are completed.
Name Abhey Lamba  
Title Chief Financial Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 12, 2024  
Expiration Date December 31, 2025  
Arrangement Duration 384 days  
Aggregate Available 81,387 81,387
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have an enterprise-wide information security program designed to protect, identify, detect, respond to and manage reasonably foreseeable cybersecurity risks and threats. Furthermore, to protect our information systems and data from cybersecurity threats, we use various security tools that help prevent, identify, investigate, resolve and recover from identified vulnerabilities and security incidents in a timely manner. These include, but are not limited to, internal reporting, monitoring and detection tools, and a bug bounty program to allow security researchers to assist us in identifying vulnerabilities in our products before they are exploited by malicious threat actors. We also maintain a third party risk management program to identify, prioritize, assess, mitigate and remediate third party risks; however, we rely on the third parties we use to implement security programs commensurate with their risks, and we cannot ensure in all circumstances that their efforts will be successful.
We recognize the critical importance of maintaining the safety and security of our systems and data and have a holistic process for overseeing and managing cybersecurity and related risks. This process is owned by the Chief Information Security Officer (“CISO”) and is supported by both management and our board of directors.
The CISO is responsible for management of cybersecurity risk and the protection and defense of our networks, systems and data. The CISO manages a team of cybersecurity professionals with broad experience and expertise, including in cybersecurity threat assessments and detection, mitigation technologies, cybersecurity training, incident response, cyber forensics, insider threats and regulatory compliance. Our CISO has served in various information technology and security leadership roles for over 20 years, including serving as the Chief Information Security Officer at 8x8 Communications and Lam Research Corporation. He holds a B.S. degree in Information Technology from the University of the Pacific and an M.B.A. from the University of Southern California.
Our board of directors oversees our enterprise risk management activities in general, and receives regular updates on the company’s risk management process and the risk trends related to cybersecurity. The audit committee specifically assists the board of directors in its oversight of risks related to cybersecurity. To help ensure effective oversight, the audit committee receives regular reports on information security and cybersecurity from the CISO.
We have an established process and playbook led by our CISO governing our assessment, containment, mitigation, response and internal and external disclosures upon the occurrence of a cybersecurity incident. Depending on the nature and severity of an incident, this process provides for escalating notification to our CEO and the board of directors (including our lead independent director and the audit and committee chair).
Our approach to cybersecurity risk management includes the following key elements:
•Multi-Layered Defense and Continuous Monitoring - We work to protect our computing environments and products from cybersecurity threats through multi-layered defenses and apply lessons learned from our defense and monitoring efforts to help prevent future attacks. We utilize data analytics to detect anomalies and search for cyber threats. Our Cybersecurity Operations Center provides comprehensive cyber threat detection and response capabilities and maintains a 24 hour, seven day per week monitoring system which complements the technology, processes, and threat detection techniques we use to monitor, manage, and mitigate cybersecurity threats. From time to time, we engage third party consultants or other advisors to assist in assessing, identifying and/or managing cybersecurity threats. We also periodically use our internal audit function to conduct additional reviews and assessments.
•Insider Threats - We maintain an insider threat program designed to identify, assess, and address potential risks from within our company. Our program evaluates potential risks consistent with industry practices, customer requirements and applicable law, including privacy and other considerations.
•Information Sharing and Collaboration - We work with government and local law enforcement, customers, industry and/or supplier partners to gather and develop best practices and share information to address cyber threats. These relationships enable the rapid sharing of threat and vulnerability mitigation information.
•Third Party Risk Assessments - We conduct information security assessments before sharing or allowing the hosting of sensitive data in computing environments managed by third parties, and our standard terms and conditions contain contractual provisions requiring certain security protections.
•Training and Awareness - We provide on at least an annual basis awareness training to our employees to help identify, avoid and mitigate cybersecurity threats. Our employees with network access participate quarterly in required training, including spear phishing, social engineering and other awareness training. We also periodically host tabletop exercises with management and other employees to practice rapid cyber incident response.
•Supplier Engagement - We require our suppliers to comply with our standard information security terms and conditions, in addition to any requirements from our customers, as a condition of doing business with us, and require them to complete information security questionnaires to review and assess any potential cyber-related risks depending on the nature of the services being provided.
Although the "Risk Factors" section includes further detail about the material cybersecurity risks we face, we believe that risks from prior cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected our business to date.
We continue to invest in the cybersecurity and resiliency of our networks and to enhance our internal controls and processes, which are designed to help protect our systems and infrastructure, and the information they contain. For more information regarding the risks we face from cybersecurity threats, please see “Risk Factors.”
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have an enterprise-wide information security program designed to protect, identify, detect, respond to and manage reasonably foreseeable cybersecurity risks and threats.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
We have an enterprise-wide information security program designed to protect, identify, detect, respond to and manage reasonably foreseeable cybersecurity risks and threats. Furthermore, to protect our information systems and data from cybersecurity threats, we use various security tools that help prevent, identify, investigate, resolve and recover from identified vulnerabilities and security incidents in a timely manner. These include, but are not limited to, internal reporting, monitoring and detection tools, and a bug bounty program to allow security researchers to assist us in identifying vulnerabilities in our products before they are exploited by malicious threat actors. We also maintain a third party risk management program to identify, prioritize, assess, mitigate and remediate third party risks; however, we rely on the third parties we use to implement security programs commensurate with their risks, and we cannot ensure in all circumstances that their efforts will be successful.
We recognize the critical importance of maintaining the safety and security of our systems and data and have a holistic process for overseeing and managing cybersecurity and related risks. This process is owned by the Chief Information Security Officer (“CISO”) and is supported by both management and our board of directors.
The CISO is responsible for management of cybersecurity risk and the protection and defense of our networks, systems and data. The CISO manages a team of cybersecurity professionals with broad experience and expertise, including in cybersecurity threat assessments and detection, mitigation technologies, cybersecurity training, incident response, cyber forensics, insider threats and regulatory compliance. Our CISO has served in various information technology and security leadership roles for over 20 years, including serving as the Chief Information Security Officer at 8x8 Communications and Lam Research Corporation. He holds a B.S. degree in Information Technology from the University of the Pacific and an M.B.A. from the University of Southern California.
Our board of directors oversees our enterprise risk management activities in general, and receives regular updates on the company’s risk management process and the risk trends related to cybersecurity. The audit committee specifically assists the board of directors in its oversight of risks related to cybersecurity. To help ensure effective oversight, the audit committee receives regular reports on information security and cybersecurity from the CISO.
We have an established process and playbook led by our CISO governing our assessment, containment, mitigation, response and internal and external disclosures upon the occurrence of a cybersecurity incident. Depending on the nature and severity of an incident, this process provides for escalating notification to our CEO and the board of directors (including our lead independent director and the audit and committee chair).
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
We have an enterprise-wide information security program designed to protect, identify, detect, respond to and manage reasonably foreseeable cybersecurity risks and threats. Furthermore, to protect our information systems and data from cybersecurity threats, we use various security tools that help prevent, identify, investigate, resolve and recover from identified vulnerabilities and security incidents in a timely manner. These include, but are not limited to, internal reporting, monitoring and detection tools, and a bug bounty program to allow security researchers to assist us in identifying vulnerabilities in our products before they are exploited by malicious threat actors. We also maintain a third party risk management program to identify, prioritize, assess, mitigate and remediate third party risks; however, we rely on the third parties we use to implement security programs commensurate with their risks, and we cannot ensure in all circumstances that their efforts will be successful.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
The CISO is responsible for management of cybersecurity risk and the protection and defense of our networks, systems and data. The CISO manages a team of cybersecurity professionals with broad experience and expertise, including in cybersecurity threat assessments and detection, mitigation technologies, cybersecurity training, incident response, cyber forensics, insider threats and regulatory compliance. Our CISO has served in various information technology and security leadership roles for over 20 years, including serving as the Chief Information Security Officer at 8x8 Communications and Lam Research Corporation. He holds a B.S. degree in Information Technology from the University of the Pacific and an M.B.A. from the University of Southern California.
Our board of directors oversees our enterprise risk management activities in general, and receives regular updates on the company’s risk management process and the risk trends related to cybersecurity. The audit committee specifically assists the board of directors in its oversight of risks related to cybersecurity. To help ensure effective oversight, the audit committee receives regular reports on information security and cybersecurity from the CISO.
We have an established process and playbook led by our CISO governing our assessment, containment, mitigation, response and internal and external disclosures upon the occurrence of a cybersecurity incident. Depending on the nature and severity of an incident, this process provides for escalating notification to our CEO and the board of directors (including our lead independent director and the audit and committee chair).
Cybersecurity Risk Role of Management [Text Block]
We recognize the critical importance of maintaining the safety and security of our systems and data and have a holistic process for overseeing and managing cybersecurity and related risks. This process is owned by the Chief Information Security Officer (“CISO”) and is supported by both management and our board of directors.
The CISO is responsible for management of cybersecurity risk and the protection and defense of our networks, systems and data. The CISO manages a team of cybersecurity professionals with broad experience and expertise, including in cybersecurity threat assessments and detection, mitigation technologies, cybersecurity training, incident response, cyber forensics, insider threats and regulatory compliance. Our CISO has served in various information technology and security leadership roles for over 20 years, including serving as the Chief Information Security Officer at 8x8 Communications and Lam Research Corporation. He holds a B.S. degree in Information Technology from the University of the Pacific and an M.B.A. from the University of Southern California.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
The CISO is responsible for management of cybersecurity risk and the protection and defense of our networks, systems and data. The CISO manages a team of cybersecurity professionals with broad experience and expertise, including in cybersecurity threat assessments and detection, mitigation technologies, cybersecurity training, incident response, cyber forensics, insider threats and regulatory compliance. Our CISO has served in various information technology and security leadership roles for over 20 years, including serving as the Chief Information Security Officer at 8x8 Communications and Lam Research Corporation. He holds a B.S. degree in Information Technology from the University of the Pacific and an M.B.A. from the University of Southern California.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO has served in various information technology and security leadership roles for over 20 years, including serving as the Chief Information Security Officer at 8x8 Communications and Lam Research Corporation. He holds a B.S. degree in Information Technology from the University of the Pacific and an M.B.A. from the University of Southern California.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our board of directors oversees our enterprise risk management activities in general, and receives regular updates on the company’s risk management process and the risk trends related to cybersecurity. The audit committee specifically assists the board of directors in its oversight of risks related to cybersecurity. To help ensure effective oversight, the audit committee receives regular reports on information security and cybersecurity from the CISO.
We have an established process and playbook led by our CISO governing our assessment, containment, mitigation, response and internal and external disclosures upon the occurrence of a cybersecurity incident. Depending on the nature and severity of an incident, this process provides for escalating notification to our CEO and the board of directors (including our lead independent director and the audit and committee chair).
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Description of Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Principles of Consolidation
Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include the consolidated accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The preparation of 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 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, change in the fair-value of contingent consideration, 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.
Foreign Currency
Foreign Currency
The functional currency of the Company’s foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as part of a separate component of stockholders’ equity and reported in the Consolidated Statements of Comprehensive Loss. Foreign currency transaction gains and losses are included in net loss for the period. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts
For the years ended December 31, 2024 and 2023, a portion of revenues were realized from credit card transactions while the remaining revenues generated accounts receivable. The Company determines provisions based on historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with delinquent accounts.
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 Consolidated Balance Sheets. The Company records changes in the fair value of derivative financial instruments designated as cash flow hedges in other comprehensive (loss) income. 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 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 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”). 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 does not hold its interest rate swap agreement for trading or speculative purposes. The Company will recognize its interest rate derivative designated as a cash flow hedge on a gross basis as an asset and a liability at fair value in the Consolidated Balance Sheets. The unrealized gains and losses on the interest rate swap agreement are included in other comprehensive (loss) income and will be subsequently recognized in earnings within or against interest expense when the hedged interest payments are accrued.
Internal-Use Software Development Costs
Internal-Use Software Development Costs
The Company capitalizes qualifying internal-use software development costs that are incurred during the application development stage, provided that management with the relevant authority authorizes and commits to the funding of the project, it is probable the project will be completed, and the software will be used to perform the function intended. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Capitalized internal-use software development costs are included in property and equipment and are amortized on a straight-line basis over their estimated useful lives.
Property and Equipment, Net
Property and Equipment, net
Property and equipment, net is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Computer hardware and software
3 to 5 years
Internal-use software development costs
3 to 5 years
Furniture and fixtures
1 to 5 years
Leasehold improvementsShorter of the estimated lease term or useful life
The Company evaluates the recoverability of property and equipment and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets or asset groups may not be recoverable. Recoverability of these assets or asset groups is measured by comparing the carrying amounts of such assets or asset groups to the future undiscounted cash flows that such assets or asset groups are expected to generate. If this evaluation indicates that the carrying amount of the assets or asset groups is not recoverable, the carrying amount of such assets or asset groups is reduced to its estimated fair value.
Maintenance and repairs are charged to expense as incurred.
Business Combinations
Business Combinations
The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed as of the acquisition date. The excess of the fair value of purchase consideration over the fair values of the tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. If applicable, we estimate the fair value of contingent consideration payments in determining the purchase price. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease to operating expenses. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.
Leases
Leases
The Company determines if a contract is a lease or contains a lease at the inception of the contract and reassesses that conclusion if the contract is modified. All leases are assessed for classification as an operating lease or a finance lease. Operating lease right-of-use (“ROU”) assets are presented separately on the Company’s Consolidated Balance Sheets. Operating lease liabilities are separated into a current portion, included within accrued liabilities on the Company’s Consolidated Balance Sheets, and a non-current portion included within operating lease liabilities on the Company’s Consolidated Balance Sheets. The Company does not have significant finance lease ROU assets or liabilities. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not obtain and control its right to use the identified asset until the lease commencement date.
The Company’s lease liabilities are recognized at the applicable lease commencement date based on the present value of the lease payments required to be paid over the lease term. Because the rate implicit in the lease is not readily determinable, the Company generally uses an incremental borrowing rate to discount the lease payments to present value. The estimated incremental borrowing rate is derived from information available at the lease commencement date. The Company factors in publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. The Company’s ROU assets are also recognized at the applicable lease commencement date. The ROU asset equals the carrying amount of the related lease liability, adjusted for any lease payments made prior to lease commencement and lease incentives provided by the lessor. Variable lease payments are expensed as incurred and do not factor into the measurement of the applicable ROU asset or lease liability.
The term of the Company’s leases is equal to the non-cancellable period of the lease, including any rent-free periods provided by the lessor, and also include options to renew or extend the lease (including by not terminating the lease) that the Company is reasonably certain to exercise. The Company establishes the term of each lease at lease commencement and reassesses that term in subsequent periods when one of the triggering events outlined in Topic 842, Leases, occurs. Operating lease cost for lease payments is recognized on a straight-line basis over the lease term.
The Company’s lease contracts often include lease and non-lease components. For facility leases, the Company has elected the practical expedient offered by the standard to not separate lease from non-lease components and accounts for them as a single lease component. For the Company’s other contracts that include leases, the Company accounts for the lease and non-lease components separately.
The Company has elected, for all classes of underlying assets, not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less. Lease cost for short-term leases is recognized on a straight-line basis over the lease term. Additionally, for certain facility leases, the Company applies a portfolio approach, whereby it effectively accounts for the operating lease ROU assets and liabilities for multiple leases as a single unit of account because the accounting effect of doing so is not material.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill is tested for impairment at the reporting unit level at a minimum on an annual basis or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The Company conducted its annual impairment test of goodwill in the fourth quarter of 2024 and 2023 and determined that no adjustment to the carrying value of goodwill was required.
Intangible assets consist of purchased customer relationships and developed technology. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from two to five years. No residual value is estimated for intangible assets.
Convertible Debt
Convertible Debt
Prior to the adoption of ASU 2020-06, the Company bifurcated the debt and equity (the contingently convertible feature) components of its convertible debt instruments in a manner that reflects its nonconvertible debt borrowing rate at the time of issuance. The equity components of the convertible debt instruments were recorded within stockholders’ (deficit) equity net of allocated issuance discount. The debt issuance discount was amortized to interest expense in the Consolidated Statements of Operations using the effective interest method over the expected term of the convertible debt.
Upon adoption of ASU 2020-06 on January 1, 2022, the Company is no longer recording the conversion feature of its convertible notes in equity. Instead, the Company combined the previously separated equity component with the liability component, which together is now classified as debt, thereby eliminating the subsequent amortization of the debt discount as interest expense. Similarly, the portion of issuance costs previously allocated to equity was reclassified to debt and amortized as interest expense.
Recent Accounting Pronouncements Not Yet Adopted and Recently Adopted Accounting Pronouncements
Recent Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09 will have on its financial statement disclosures.
In November 2024, the FASB issued Accounting Standards Update No. 2024-03: Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. The ASU also requires disclosure of the total amount of selling expenses and our definition of selling expenses. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027 on a retrospective or prospective basis, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03 will have on its financial statement disclosures.
Recently Adopted Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07 Segment Reporting - Improvements to Reportable Segment Disclosures (Topic 280). The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. Additionally, the ASU mandates that all annual disclosures currently required under Topic 280 must also be included in interim period financial statements. The update is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years starting after December 15, 2024. Early adoption is permitted. The guidance must be applied retrospectively to all prior periods presented in the financial statements. The Company adopted ASU 2023-07 effective January 1, 2024. While the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements, it did result in additional disclosures.
Supplier Financing Arrangements
Supplier Financing Arrangements
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. Some of these financing arrangements are collateralized against property and equipment.
Revenue Recognition
Revenue Recognition
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 or products.
The Company determines revenue recognition through the following steps:
•identification of the contract, or contracts, with a customer;
•identification of the performance obligations in the contract;
•determination of the transaction price;
•allocation of the transaction price to the performance obligations in the contract; and
•recognition of revenue when, or as, the Company satisfies a performance obligation.
The Company recognizes revenues as follows:
Subscriptions revenue
Subscriptions revenue is generated from fees that provide customers access to one or more of the Company’s software applications and related services. These arrangements have contractual terms typically ranging from one month to five years and include recurring fixed plan subscription fees, variable usage-based fees for usage in excess of plan limits, one-time fees, recurring license and other fees, derived from sales through our direct and indirect sales channels, including resellers and distributors, strategic partners and global service providers.
The Company generally bills its subscription fees in advance.
Arrangements with customers do not provide the customer with the right to take possession of the Company’s software at any time. Instead, customers are granted continuous access to the services over the contractual period. The Company transfers control evenly over the contractual period by providing stand-ready service. Accordingly, the fixed consideration related to subscription is recognized over time on a straight-line basis over the contract term beginning on the date the Company’s service is made available to the customer. The Company may offer its customer services for no consideration during the initial months. Such discounts are recognized ratably over the term of the contract.
Fees for additional minutes of usage in excess of plan limits are deemed to be variable consideration that meet the allocation exception for variable consideration as they are specific to the month that the usage occurs.
The Company’s subscription contracts typically allow the customers to terminate their services within the first 30 to 60 days and receive a refund for any amounts paid for the remaining contract period. After the end of the termination period, the contract is non-cancellable and the customer is obligated to pay for the remaining term of the contract. Accordingly, the Company considers the non-cancellable term of the contract to begin after the expiration of the termination period.
The Company records reductions to revenue for estimated sales returns and customer credits at the time the related revenue is recognized. Sales returns and customer credits are estimated based on the Company’s historical experience, current trends and the Company’s expectations regarding future experience. The Company monitors the accuracy of its sales reserve estimates by reviewing actual returns and credits and adjusts them for its future expectations to determine the adequacy of its current and future reserve needs. If actual future returns and credits differ from past experience, additional reserves may be required.
Other revenue
Other revenue primarily includes revenue generated from sale of pre-configured phones and professional implementation services.
Phone revenue is recognized upon transfer of control to the customer which is generally upon shipment from the Company’s or its designated agents’ warehouse.
The Company offers professional services to support implementation and deployment of its subscription services. Professional services do not result in significant customization of the product and are generally short-term in duration. The majority of the Company’s professional services contracts are on a fixed price basis and revenue is recognized as and when services are delivered.
Principal vs. Agent
A portion of the Company’s subscriptions and product revenues are generated through sales by resellers, strategic partners, and global service providers. When the Company controls the performance of contractual obligations to the customer, it records these revenues at the gross amount paid by the customer with amounts retained by the resellers recognized as sales and marketing expenses. The Company assesses control of goods or services when it is primarily responsible for fulfilling the promise to provide the good or service, has inventory risk and has discretion in establishing the price.
Deferred and prepaid sales commission costs
The Company capitalizes sales commission expenses and associated payroll taxes paid to internal sales personnel and resellers, who sell the Company’s offerings. The resellers are selling agents for the Company and earn sales commissions which are directly tied to the value of the contracts that the Company enters with the end-user customers. These sales commissions are incremental costs the Company incurs to obtain contracts with its end-user customers. The Company pays sales commissions on initial contracts and contracts for increased purchases with existing customers (expansion contracts). The Company generally does not pay sales commissions for contract renewals.
These sales commission costs are deferred and then amortized over the expected period of benefit, which is estimated to be five years. The Company has determined the period of benefit taking into consideration the expected subscription term
and expected renewal periods of its customer contracts, the duration of its relationships with its customers considering historical and expected customer retention, technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying Consolidated Statements of Operations. The Company evaluates its deferred and prepaid sales commission costs for possible recoverability whenever events or changes in circumstances have occurred that could indicate the carrying amount of such assets may not be recoverable.
Cost of Revenues
Cost of Revenues
Cost of subscriptions revenue primarily consists of costs of network capacity purchased from third-party telecommunications providers, network operations, costs to build out and maintain data centers, including co-location fees for the right to place the Company’s servers in data centers owned by third parties, depreciation of the servers and equipment, along with related utilities and maintenance costs, amortization of acquired technology related intangible assets, personnel costs associated with customer care and support of the functionality of the Company’s platform and data center operations, including share-based compensation expenses, and allocated costs of facilities and information technology. Cost of subscriptions revenue is expensed as incurred.
Cost of other revenue is comprised primarily of the cost associated with purchased phones, personnel costs for employees and contractors, including share-based compensation expenses, shipping costs, costs of professional services, and allocated costs of facilities and information technology related to the procurement, management and shipment of phones. Cost of other revenue is expensed in the period product is delivered to the customer.
Asset Write-down Charges
Asset Write-down Charges
Asset write-down charges consist of write-offs related to our assets, including deferred and prepaid sales commission. The Company performs periodic reviews to assess the recoverability of such assets, whenever events or changes in circumstances have occurred that could indicate the carrying amount of such assets may not be recoverable. An impairment loss is recognized if the carrying value of deferred commission asset exceeds the amount of consideration that the Company expects to receive in the future in exchange for goods or services to which the asset relates, less the costs that relate directly to providing those goods or services that have not yet been recognized.
Share-Based Compensation
Share-Based Compensation
Share-based compensation expense resulting from options, restricted stock units (“RSUs”), performance-based awards (“PSUs”), and employee stock purchase plan (“ESPP”) rights granted is measured at the grant date fair value of the award and is generally recognized using the straight-line attribution method over the requisite service period of the award, which is generally the vesting period. The Company estimates the fair value of stock options and ESPP rights using the Black-Scholes-Merton option-pricing model. The Company estimates the fair value of RSUs as the closing market value of its Class A Common Stock on the grant date. The Company estimates the fair value of its market condition performance stock units (“PSUs”) using the Monte Carlo simulation model. For awards with performance-based and service-based conditions, compensation cost is recognized using the graded attribution method over the requisite service period if it is probable that the performance condition will be satisfied. The expense for performance-based awards is evaluated each quarter based on the achievement of the performance conditions. The effect of a change in the estimated number of performance-based awards expected to be earned is recognized in the period those estimates are revised. Compensation expense is recognized net of estimated forfeiture activity, which is based on historical forfeiture rates.
Research and Development
Research and Development
Research and development expenses consist primarily of third-party contractor costs, personnel costs, technology license expenses, and depreciation associated with research and development equipment. Research and development costs are expensed as incurred.
Advertising Costs
Advertising Costs
Advertising costs, which include various forms of e-commerce such as search engine marketing, search engine optimization and online display advertising, as well as more traditional forms of media advertising such as radio and billboards, are expensed as incurred
Restructuring Costs
Restructuring Costs
Restructuring costs generally include employee-related severance charges which are largely based upon substantive severance plans, while some are mandated requirements in certain foreign jurisdictions. Severance costs generally include
severance payments, outplacement services, health insurance coverage and legal costs. One-time employee termination benefits are recognized when the plan of termination has been communicated to employees and certain other criteria are met. Other severance and employee costs, primarily pertaining to ongoing employee benefit arrangements, are recognized when it is probable that the employees are entitled to the severance benefits and the amounts can be reasonably estimated.
Income Taxes
Income Taxes
The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. As of December 31, 2024, except for deferred tax assets associated with certain foreign subsidiaries, the Company recorded a full valuation allowance against substantially all of its net deferred tax assets due to its history of operating losses. The Company classifies interest and penalties on unrecognized tax benefits as income tax expense.
Fair Value of Financial Instruments
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.
v3.25.0.1
Description of Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Changes in Allowance for Doubtful Accounts
Below is a summary of the changes in allowance for doubtful accounts for the years ended December 31, 2024, 2023 and 2022 (in thousands):
Balance at
beginning of
year		Provision,
net of
recoveries		Write-offsBalance at
end of
year
Year ended December 31, 2024
Allowance for doubtful accounts$12,472 $8,667 $6,008 $15,131 
Year ended December 31, 2023
Allowance for doubtful accounts$9,581 $6,852 $3,961 $12,472 
Year ended December 31, 2022
Allowance for doubtful accounts$8,026 $9,367 $7,812 $9,581 
Schedule of Estimated Useful Lives of Assets
Property and equipment, net is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Computer hardware and software
3 to 5 years
Internal-use software development costs
3 to 5 years
Furniture and fixtures
1 to 5 years
Leasehold improvementsShorter of the estimated lease term or useful life
Schedule of Supplier Financing Obligation
A summary of activity of the Company’s supplier financing obligations during the year ended December 31, 2024 and 2023 is presented in the following table (in thousands):
Year ended December 31,
20242023
Obligations outstanding at the beginning of period$4,168 $6,587 
Commitments— 2,997 
Payments(2,438)(5,416)
Obligations outstanding at the end of period$1,730 $4,168 
v3.25.0.1
Revenue (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue by Geographical Markets The following table provides information about disaggregated revenue by primary geographical markets:
Year ended December 31,
202420232022
Primary geographical markets
North America90 %90 %90 %
Others10 %10 %10 %
Total revenues100 %100 %100 %
v3.25.0.1
Financial Statement Components (Tables)
 12 Months Ended
Dec. 31, 2024
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):
December 31,
2024		December 31,
2023
Cash$128,308 $113,733 
Money market funds114,503 108,462 
Total cash and cash equivalents$242,811 $222,195 
Schedule of Components of Accounts Receivable, Net
Accounts receivable, net consisted of the following (in thousands):
December 31,
2024		December 31,
2023
Accounts receivable$300,805 $280,544 
Unbilled accounts receivable100,578 96,366 
Allowance for doubtful accounts(15,131)(12,472)
Accounts receivable, net$386,252 $364,438 
Schedule of Components of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
December 31,
2024		December 31,
2023
Prepaid expenses$39,858 $32,440 
Inventory1,243 1,492 
Other current assets18,343 43,464 
Total prepaid expenses and other current assets$59,444 $77,396 
Schedule of Components of Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
December 31,
2024		December 31,
2023
Computer hardware and software$252,961 $238,802 
Internal-use software development costs314,944 255,649 
Furniture and fixtures8,965 8,964 
Leasehold improvements12,367 14,369 
Property and equipment, gross589,237 517,784 
Less: accumulated depreciation and amortization(408,587)(333,394)
Property and equipment, net$180,650 $184,390 
Schedule of Carrying Value of Goodwill
The carrying value of goodwill is as follows (in thousands):
Balance at December 31, 2023$67,370 
Acquisitions (Note 8)
16,809 
Foreign currency translation adjustments(1,193)
Balance at December 31, 2024$82,986 
Schedule of Carrying Values of Intangible Assets
The carrying values of intangible assets are as follows (in thousands):
December 31, 2024December 31, 2023
Weighted-Average Remaining Useful LifeCostAccumulated
Amortization And Impairment		Acquired
Intangibles,
Net		CostAccumulated
Amortization And Impairment		Acquired
Intangibles,
Net
Customer relationships
4.1 years
$51,312 $25,833 $25,479 $26,506 $21,834 $4,672 
Developed technology
1.9 years
779,794 546,747 233,047 826,077 436,982 389,095 
Total acquired intangible assets$831,106 $572,580 $258,526 $852,583 $458,816 $393,767 
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):
2025$133,453 
2026110,987 
20275,398 
2028 onwards8,688 
Total estimated amortization expense$258,526 
Schedule of Components of Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
December 31,
2024		December 31,
2023
Accrued compensation and benefits$47,415 $63,009 
Accrued sales, use, and telecom related taxes55,699 43,796 
Accrued marketing and sales commissions36,391 60,528 
Operating lease liabilities, short-term20,445 16,707 
Other accrued expenses123,849 141,592 
Total accrued liabilities$283,799 $325,632 
v3.25.0.1
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets Carried at Fair Value
The financial assets carried at fair value were determined using the following inputs (in thousands):
Fair Value at
December 31, 2024		Level 1Level 2Level 3
Cash equivalents:
Money market funds$114,503 $114,503 $— $— 
Other assets:
Interest rate swap derivatives
2,367 — 2,367 — 
Other long-term liabilities:
Contingent consideration 3,000 — — 3,000 
Fair Value at
December 31, 2023		Level 1Level 2Level 3
Cash equivalents:
Money market funds$108,462 $108,462 $— $— 
Other assets:
Interest rate swap derivatives
3,505 — 3,505 — 
Other long-term liabilities:
Interest rate swap derivatives
6,017 — 6,017 — 
Contingent consideration7,461 — — 7,461 
v3.25.0.1
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2024
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 Company’s long-term debt (in thousands):
Debt InstrumentMaturity DateDecember 31, 2024December 31, 2023
2030 Senior Notes
August 15, 2030$400,000 $400,000 
Term Loan under Credit Agreement (1)
February 14, 2028370,000 390,000 
Revolving Credit Facility under Credit Agreement (2)
February 14, 2028— — 
2026 Convertible NotesMarch 15, 2026609,065 609,065 
2025 Convertible NotesMarch 1, 2025161,326 161,326 
Total principal amount1,540,391 1,560,391 
Less: unamortized debt discount and issuance costs on long-term debt(11,258)(14,909)
Less: current portion of long-term debt, net (3)
(181,252)(20,000)
Net carrying amount of long-term debt$1,347,881 $1,525,482 
(1)The Company has $350.0 million available for drawdown under the Term Loan as of December 31, 2024.
(2)The Company has $225.0 million available for borrowing under the Revolving Credit Facility as of December 31, 2024.
(3)The current portion of long-term debt, net as of December 31, 2024 relates to $161.3 million net carrying amount from the 2025 Convertible Notes, and $20.0 million of expected principal payments due on the Term Loan. The Term Loan requires quarterly principal payments of 1.25% of the $400.0 million principal amount drawn, with balance due at maturity.
Summary of Future Minimum Principal Payments of the Term Facility
The following table sets forth the future minimum principal payments for long-term debt as of December 31, 2024 (in thousands):
2025 Convertible Notes2026 Convertible NotesTerm Loan2030 Senior NotesTotal
2025$161,326 $— $20,000 $— $181,326 
2026— 609,065 20,000 — 629,065 
2027— — 20,000 — 20,000 
2028— — 310,000 — 310,000 
2029 onwards— — — 400,000 400,000 
Total principal amount$161,326 $609,065 $370,000 $400,000 $1,540,391 
Summary of Debt Terms
2025 Convertible Notes2026 Convertible 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 
Summary of Key Terms and Costs Incurred
2026 Convertible Notes
Initial approximate strike price per share, subject to certain adjustments$424.03 
Initial cap price per share, subject to certain adjustments$556.10 
Net cost incurred (in millions)$41.8 
Class A Common Stock covered, subject to anti-dilution adjustments (in millions)1.5
Settlement commencement date2/13/2025
Settlement expiration date3/13/2025
Summary of Interest Expense on Long-Term Debt
The following table sets forth the interest expense recognized related to long-term debt (in thousands):
Twelve Months Ended December 31,
202420232022
Contractual interest expense$59,138 $29,285 $— 
Amortization of debt discount and issuance costs4,272 4,566 4,468 
Total interest expense related to long-term debt$63,410 $33,851 $4,468 
Schedule Of Future Minimum Contractual Interest For Long-term Debt
The following table sets forth the future minimum contractual interest for long-term debt as of December 31, 2024 (in thousands):
Term Loan (1)
2030 Senior NotesTotal
2025$23,160 $34,000 $57,160 
202621,882 34,000 55,882 
202720,605 34,000 54,605 
20282,421 34,000 36,421 
2029 onwards— 68,000 68,000 
Total contractual interest amount$68,068 $204,000 $272,068 
(1)Includes the impact of interest rate swap. Refer to Note 7 - Derivative Instruments in this Annual Report on Form 10-K for additional information.
The following table sets forth our non-cancellable open purchase obligations for each of the next five years and thereafter as of December 31, 2024 (in thousands):
Purchase Obligations
2025$63,758 
202640,544 
202729,577 
202828,274 
20294,135 
Total$166,288 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Components of Leases
As of December 31, 2024 and 2023, the balance sheet components of leases were as follows (in thousands):
December 31, 2024December 31, 2023
Operating lease right-of-use assets$46,463 $42,989 
Accrued liabilities$20,445 $16,707 
Operating lease liabilities29,733 28,178 
Total operating lease liabilities$50,178 $44,885 
Schedule of Lease Cost
The components of operating lease expense were as follows (in thousands):
Twelve Months Ended December 31,
202420232022
Operating lease cost (1)
$25,167 $23,315 $22,800 
Variable lease cost (2)
4,560 4,412 3,930 
Total lease cost$29,727 $27,727 $26,730 
(1)Includes short-term lease costs, which were not material in the years ended December 31, 2024, 2023, and 2022.
(2)Variable lease cost includes common area maintenance, property taxes, utilities and fluctuations in rent due to a change in an index or rate.
The supplemental cash flow information related to operating leases for the twelve months ended December 31, 2024 and 2023 were as follows (in thousands):
Year ended December 31,
20242023
Operating cash flows resulting from operating leases:
Cash paid for amounts included in the measurement of lease liabilities$21,876 $22,844 
New ROU assets obtained in exchange of lease liabilities:
Operating leases$24,966 $27,846 
Other information related to operating leases were as follows:
December 31, 2024December 31, 2023
Weighted-average remaining operating lease term (years)2.63.0
Weighted-average operating lease discount rate6.6 %7.0 %
Schedule of Future Operating Lease Maturities
As of December 31, 2024, maturities of operating lease liabilities were as follows (in thousands):
Year Ending December 31,
2025$23,000 
202618,024 
20278,587 
20284,227 
2029 onwards816 
Total future minimum lease payments54,654 
Less: Imputed interest(4,476)
Present value of lease liabilities$50,178 
v3.25.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Purchase Obligations
The following table sets forth the future minimum contractual interest for long-term debt as of December 31, 2024 (in thousands):
Term Loan (1)
2030 Senior NotesTotal
2025$23,160 $34,000 $57,160 
202621,882 34,000 55,882 
202720,605 34,000 54,605 
20282,421 34,000 36,421 
2029 onwards— 68,000 68,000 
Total contractual interest amount$68,068 $204,000 $272,068 
(1)Includes the impact of interest rate swap. Refer to Note 7 - Derivative Instruments in this Annual Report on Form 10-K for additional information.
The following table sets forth our non-cancellable open purchase obligations for each of the next five years and thereafter as of December 31, 2024 (in thousands):
Purchase Obligations
2025$63,758 
202640,544 
202729,577 
202828,274 
20294,135 
Total$166,288 
v3.25.0.1
Stockholders’ Deficit and Convertible Preferred Stock (Tables)
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Common Stock Reserved for Future Issuance
Shares of Class A Common Stock reserved for future issuance were as follows (in thousands):
December 31, 2024
Preferred stock100,000 
Class B Common Stock9,805 
2013 Employee stock purchase plan6,565 
2013 Equity incentive plan:
Outstanding options and restricted stock unit awards8,306 
Available for future grants13,769 
138,445 
Schedule Of Share Repurchase Activity
The following tables summarizes the share repurchase activity of the Company’s Class A Common Stock (in thousands):
Twelve Months Ended December 31,
202420232022
SharesAmountSharesAmountSharesAmount
Repurchases under share repurchase programs9,600 $316,923 10,066 $314,964 2,297 $99,748 
Excise tax withholdings and broker’s commissions
— 1,040 — 1,357 — 45 
Total repurchases of common stock9,600 $317,963 10,066 $316,321 2,297 99,793 
Schedule of Share Repurchased and Settled
The following table summarizes the number of shares of the Company’s Class A Common Stock repurchased and settled under share repurchase programs for the twelve months ended months ended December 31, 2024, 2023 and 2022 (in thousands):
Repurchases during the year ended December 31, 20222,297 
Repurchases unsettled as of December 31, 2022— 
Prior year repurchases settled during the year ended December 31, 2022— 
Total repurchases settled during the year ended December 31, 20222,297 
Repurchases during the year ended December 31, 202310,066 
Repurchases unsettled as of December 31, 2023(118)
Prior year repurchases settled during the year ended December 31, 2023— 
Total repurchases settled during the year ended December 31, 20239,948 
Repurchases during the year ended December 31, 20249,600 
Repurchases unsettled as of December 31, 2024— 
Prior year repurchases settled during the year ended December 31, 2024118 
Total repurchases settled during the year ended December 31, 20249,718 
v3.25.0.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
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 Company’s Consolidated Statements of Operations is as follows (in thousands):
Year ended December 31,
202420232022
Cost of revenues$30,322 $36,484 $34,269 
Research and development76,971 93,961 88,846 
Sales and marketing134,659 151,221 151,950 
General and administrative97,107 145,013 110,944 
Total share-based compensation expense$339,059 $426,679 $386,009 
Summary of Share-Based Compensation Expense by Award Type
A summary of share-based compensation expense by award type is as follows (in thousands):
Year ended December 31,
202420232022
Employee stock purchase plan rights (“ESPP”)$6,338 $7,574 $7,719 
Performance stock units (“PSUs”)20,624 27,035 1,737 
Restricted stock units (“RSUs”)312,097 392,070 376,553 
Total share-based compensation expense$339,059 $426,679 $386,009 
Summary of Stock Option Activity Plans
A summary of option activity under all of the Company’s equity incentive plans and changes during the period then ended December 31, 2024, 2023, and 2022 is presented in the following table:
Number of
Options
Outstanding
(in thousands)		Weighted-
Average
Exercise Price
Per Share		Weighted-
Average
Contractual
Term
(in Years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding at December 31, 2021154 $9.12 0.9$27,465 
Exercised(132)8.54 
Canceled/Forfeited— — 
Outstanding at December 31, 202222 $12.53 0.5$509 
Exercised(22)12.53 
Canceled/Forfeited— — 
Outstanding at December 31, 2023— $— 0.0$— 
Exercised— — 
Canceled/Forfeited— — 
Outstanding at December 31, 2024— $— 0.0$— 
Vested and expected to vest as of December 31, 2024— $— 0.0$— 
Exercisable as of December 31, 2024— $— 0.0$— 
Summary of Assumptions Used to Value ESPP Rights Under the Black-Scholes Option-Pricing Model
The weighted-average assumptions used to value ESPP rights under the Black-Scholes-Merton option-pricing model and the resulting offering grant date fair value of ESPP rights granted in the periods presented were as follows:
Year ended December 31,
202420232022
Expected term (in years)0.50.50.5
Expected volatility46 %67 %81 %
Risk-free interest rate4.89 %5.36 %3.01 %
Expected dividend yield0 %0 %0 %
Offering grant date fair value of ESPP rights$10.59 $9.38 $20.18 
Summary of RSUs Activity
A summary of activity of restricted and performance-based stock units as of December 31, 2024, 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 at December 31, 20212,851 $258.26 $534,186 
Granted5,999 72.96 
Released(2,787)131.18 
Canceled/Forfeited(963)206.32 
Outstanding at December 31, 20225,100 $119.55 $180,577 
Granted13,666 32.16 
Released(5,891)61.12 
Canceled/Forfeited(2,828)57.29 
Outstanding at December 31, 202310,047 $52.47 $325,153 
Granted6,947 36.34 
Released(6,226)53.15 
Canceled/Forfeited(2,462)40.28 
Outstanding at December 31, 20248,306 $42.09 $290,799 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Summary of Net Loss Before Provision for Income Taxes
Net loss before provision for income taxes consisted of the following (in thousands):
Year ended December 31,
202420232022
United States$(88,910)$(190,912)$(898,036)
International41,685 34,067 23,983 
Total net loss before provision for income taxes$(47,225)$(156,845)$(874,053)
Summary of Provision for Income Taxes
The provision for income taxes consisted of the following (in thousands):
Year ended December 31,
202420232022
Current
Federal$2,930 $— $— 
State5,919 1,792 1,104 
Foreign5,849 5,972 4,710 
Total current$14,698 $7,764 $5,814 
Deferred
Federal$— $— $— 
State— — — 
Foreign(3,635)631 (701)
Total deferred(3,635)631 (701)
Total income tax provision$11,063 $8,395 $5,113 
Summary of Variation of Effective Provision for (Benefit from) Income Taxes from Statutory Federal Income Tax Rate
The provision for income taxes differed from the amounts computed by applying the U.S. federal income tax rate to pretax loss as a result of the following (in thousands):
 Year ended December 31,
 202420232022
Federal tax benefit at statutory rate$(9,917)$(32,937)$(183,551)
State tax, net of federal tax benefit4,676 1,415 848 
Research and development credits6,650 (11,574)(12,830)
Share-based compensation34,227 10,956 5,828 
Debt extinguishment— — 19 
Global Intangible Low-Taxed Income (“GILTI”)— 3,035 — 
Foreign derived intangible income (“FDII”)(2,143)— — 
Other permanent differences(983)1,674 3,143 
Foreign tax rate differential(2,624)548 (2,497)
Net operating (gains) losses not recognized(18,823)35,278 194,153 
Release of valuation allowance associated with acquisitions— — — 
Total income tax provision$11,063 $8,395 $5,113 
Summary of Deferred Income Tax Assets and Liabilities
The types of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands):
Year ended December 31,
20242023
Deferred tax assets
Net operating loss and credit carry-forwards$407,235 $463,400 
Research and development credits73,352 87,111 
Research and development expenditure capitalization201,814 130,792 
Basis difference in investments138 40,655 
Sales tax accrual67 67 
Share-based compensation5,926 21,014 
Acquired intangibles91,943 76,171 
Accrued liabilities15,141 17,994 
Gross deferred tax assets795,616 837,204 
Valuation allowance(644,379)(674,720)
Total deferred tax assets151,237 162,484 
Deferred tax liabilities
Deferred sales commissions(104,236)(117,875)
Lease right of use assets(6,948)(8,255)
Property and equipment(35,837)(35,753)
Net deferred tax assets$4,216 $601 
Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
The following shows the changes in the gross amount of unrecognized tax benefits as of December 31, 2024 (in thousands):
202420232022
Unrecognized tax benefits, beginning of the year$31,976 $26,412 $20,010 
Increases related to prior year tax positions— — — 
Decreases related to prior year tax positions(3,088)(418)— 
Increases related to current year tax positions1,305 5,982 6,402 
Unrecognized tax benefits, end of year$30,193 $31,976 $26,412 
v3.25.0.1
Basic and Diluted Net Loss Per Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Computation of Company's Basic and Diluted Net Loss Per Share of Common Stock
The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except per share data):
Year Ended December 31,
202420232022
Numerator
Net loss$(58,288)$(165,240)$(879,166)
Denominator
Weighted-average common shares outstanding for basic and diluted net loss per share92,110 94,912 95,239 
Basic net income (loss) per share$(0.63)$(1.74)$(9.23)
Schedule of Potential Shares of Common Stock Excluded from Diluted Weighted-Average Common Shares Outstanding
Year Ended December 31,
202420232022
Shares of common stock issuable under equity incentive plans outstanding9,860 9,999 4,050 
Shares of common stock related to convertible preferred stock743 743 743 
Potential common shares excluded from diluted net loss per share10,603 10,742 4,793 
v3.25.0.1
Restructuring Activities (Tables)
 12 Months Ended
Dec. 31, 2024
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 Consolidated Statement of Operations for the year ended December 31, 2024, 2023 and 2022 (in thousands):
Year Ended December 31,
202420232022
Cost of revenues$1,334 $876 $457 
Research and development3,215 4,457 5,321 
Sales and marketing5,885 8,758 9,695 
General and administrative2,201 6,277 2,711 
Total restructuring costs$12,635 $20,368 $18,184 
The following table summarizes the Company’s restructuring liability that is included in accrued liabilities in the accompanying Consolidated Balance Sheets (in thousands):
Balance as of December 31, 2022$5,485 
Restructuring costs20,368 
Cash payments(22,662)
Balance as of December 31, 2023$3,191 
Restructuring costs12,635 
Cash payments(14,209)
Balance as of December 31, 2024$1,617 
v3.25.0.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Reconciliation of Net Income
The following table presents selected financial information for the Company’s single operating segment for the years ended December 31, 2024, 2023 and 2022:
Twelve Months Ended December 31,
202420232022
Revenue$2,400,395 $2,202,429 $1,988,330 
Less:
Share-based compensation expense339,059 426,679 386,009 
Asset write-down charges— — 283,689 
Depreciation and amortization222,609 233,940 246,561 
Other segment items (1)
1,836,057 1,740,621 1,721,546 
Income (loss) from operations2,670 (198,811)(649,475)
Operating margin as % of revenue0.1 %(9.0)%(32.7)%
Other income (expense), net
Interest expense(64,995)(35,997)(4,807)
Other income (expense) (2)
15,100 77,963 (219,771)
Other income (expense), net(49,895)41,966 (224,578)
Loss before income taxes(47,225)(156,845)(874,053)
Provision for income taxes11,063 8,395 5,113 
Net loss$(58,288)$(165,240)$(879,166)
(1)Other segment items mainly consist of personnel costs, third-party commissions, and advertising and marketing costs.
(2)Includes interest income of $8.0 million, $12.5 million and $2.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.
v3.25.0.1
Description of Business and Summary of Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Balance at beginning of year $ 12,472 $ 9,581 $ 8,026
Provision, net of recoveries 8,667 6,852 9,367
Write-offs 6,008 3,961 7,812
Balance at end of year $ 15,131 $ 12,472 $ 9,581
v3.25.0.1
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jan. 01, 2022
Dec. 31, 2021
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Software development cost, net of impairment     $ 59,300,000 $ 56,000,000.0      
Carrying value of internal-use software development costs $ 135,200,000 $ 131,600,000 135,200,000 131,600,000      
Adjustment to goodwill 0 0          
Increase (decrease) to stockholders' equity $ (550,919,000) $ (502,569,000) $ (550,919,000) $ (502,569,000) $ (482,787,000)   $ 338,967,000
Supplier finance program, payment timing, period 5 years   5 years        
Supplier finance program, obligation, statement of financial position   Accrued liabilities, Other long-term liabilities   Accrued liabilities, Other long-term liabilities      
Supplier finance program, obligation $ 1,730,000 $ 4,168,000 $ 1,730,000 $ 4,168,000 6,587,000    
Deferred contract costs, expected amortization period of benefit     5 years        
Advertising expense     $ 96,000,000.0 97,000,000.0 125,600,000    
Accounts payable 21,866,000 53,295,000 21,866,000 53,295,000      
Total expenses incurred from related party     0 0      
Google Inc.              
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Total expenses incurred from related party         24,300,000    
Related Party              
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Accounts payable 0 0 0 0      
Accumulated Deficit              
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Increase (decrease) to stockholders' equity (1,757,424,000) (1,699,136,000) (1,757,424,000) (1,699,136,000) (1,533,896,000)   (748,556,000)
Additional Paid-in Capital              
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Increase (decrease) to stockholders' equity $ 1,215,377,000 $ 1,204,781,000 $ 1,215,377,000 $ 1,204,781,000 $ 1,059,880,000   1,086,870,000
Cumulative effect of accounting change              
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Increase (decrease) to stockholders' equity           $ (235,500,000) (235,454,000)
Cumulative effect of accounting change | Accumulated Deficit              
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Increase (decrease) to stockholders' equity           93,800,000 93,826,000
Cumulative effect of accounting change | Additional Paid-in Capital              
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Increase (decrease) to stockholders' equity           $ (329,300,000) $ (329,280,000)
Minimum              
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Useful life 2 years   2 years        
Contractual arrangement subscriptions period     1 month        
Subscription contracts services termination period     30 days        
Maximum              
Description Of Business And Summary Of Significant Accounting Policies [Line Items]              
Useful life 5 years   5 years        
Contractual arrangement subscriptions period     5 years        
Subscription contracts services termination period     60 days        
v3.25.0.1
Description of Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details)
Dec. 31, 2024
Computer hardware and software | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Computer hardware and software | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Internal-use software development costs | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Internal-use software development costs | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Furniture and fixtures | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 1 year
Furniture and fixtures | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
v3.25.0.1
Description of Business and Summary of Significant Accounting Policies - Schedule of Supplier Financing Obligation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Supplier Finance Program, Obligation [Roll Forward]    
Obligations outstanding at the beginning of period $ 4,168 $ 6,587
Commitments 0 2,997
Payments (2,438) (5,416)
Obligations outstanding at the end of period $ 1,730 $ 4,168
v3.25.0.1
Revenue - Schedule of Revenue by Geographical Markets (Details) - Geographic Concentration Risk - Revenue from Contract with Customer Benchmark
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Total revenues 100.00% 100.00% 100.00%
North America      
Disaggregation of Revenue [Line Items]      
Total revenues 90.00% 90.00% 90.00%
Others      
Disaggregation of Revenue [Line Items]      
Total revenues 10.00% 10.00% 10.00%
v3.25.0.1
Revenue - Performance Obligation, Timing of Satisfaction (Details)
Dec. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, percentage 53.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, percentage 47.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period
v3.25.0.1
Revenue - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Revenue, remaining performance obligation, amount $ 2,600,000    
Revenues $ 2,400,395 $ 2,202,429 $ 1,988,330
Minimum      
Disaggregation of Revenue [Line Items]      
Subscription term 1 month    
Maximum      
Disaggregation of Revenue [Line Items]      
Subscription term 5 years    
Product      
Disaggregation of Revenue [Line Items]      
Revenues $ 51,900 $ 44,800 $ 46,600
Product Concentration Risk | Revenue from Contract with Customer Benchmark | RingEX And RingCentral Contact Center Solutions      
Disaggregation of Revenue [Line Items]      
Concentration risk, percentage 90.00% 90.00% 90.00%
Product Concentration Risk | Revenue from Contract with Customer Benchmark | RingCentral Contact Center Solutions      
Disaggregation of Revenue [Line Items]      
Concentration risk, percentage 10.00% 10.00% 10.00%
v3.25.0.1
Financial Statement Components - Schedule of Components of Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Cash $ 128,308 $ 113,733
Money market funds 114,503 108,462
Total cash and cash equivalents $ 242,811 $ 222,195
v3.25.0.1
Financial Statement Components - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Restricted cash $ 7,400,000 $ 1,100,000  
Depreciation and amortization 86,100,000 82,900,000 $ 72,000,000.0
Asset write-down and other charges 0 0 305,351,000
Amortization expense of intangible assets 136,500,000 151,100,000 174,500,000
Amortization of deferred and prepaid sales commission costs 162,552,000 138,134,000 115,184,000
Impairment loss in relation to costs capitalized 0 $ 0 $ 0
Internal-use software development costs      
Property, Plant and Equipment [Line Items]      
Asset write-down and other charges 2,800,000    
Developed technology      
Property, Plant and Equipment [Line Items]      
Gross reduction of intangible assets 50,600,000    
Reduction of intangible assets 28,500,000    
Amortization expense of intangible assets 22,100,000    
Cash consideration 29,800,000    
Trademarks and Trade Names      
Property, Plant and Equipment [Line Items]      
Cash consideration 29,800,000    
Customer relationships      
Property, Plant and Equipment [Line Items]      
Cash consideration $ 29,800,000    
v3.25.0.1
Financial Statement Components - Schedule of Components of Accounts Receivable, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Accounts receivable $ 300,805 $ 280,544    
Unbilled accounts receivable 100,578 96,366    
Allowance for doubtful accounts (15,131) (12,472) $ (9,581) $ (8,026)
Accounts receivable, net $ 386,252 $ 364,438    
v3.25.0.1
Financial Statement Components - Schedule of Components of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Prepaid expenses $ 39,858 $ 32,440
Inventory 1,243 1,492
Other current assets 18,343 43,464
Total prepaid expenses and other current assets $ 59,444 $ 77,396
v3.25.0.1
Financial Statement Components - Schedule of Components of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 589,237 $ 517,784
Less: accumulated depreciation and amortization (408,587) (333,394)
Property and equipment, net 180,650 184,390
Computer hardware and software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 252,961 238,802
Internal-use software development costs    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 314,944 255,649
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 8,965 8,964
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 12,367 $ 14,369
v3.25.0.1
Financial Statement Components - Schedule of Carrying Value of Goodwill (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Goodwill [Roll Forward]  
Goodwill, Beginning balance $ 67,370
Acquisitions (Note 8) 16,809
Foreign currency translation adjustments (1,193)
Goodwill, Ending balance $ 82,986
v3.25.0.1
Financial Statement Components - Schedule of Carrying Values of Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Cost $ 831,106 $ 852,583
Accumulated Amortization And Impairment 572,580 458,816
Total estimated amortization expense $ 258,526 393,767
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Remaining Useful Life 4 years 1 month 6 days  
Cost $ 51,312 26,506
Accumulated Amortization And Impairment 25,833 21,834
Total estimated amortization expense $ 25,479 4,672
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Remaining Useful Life 1 year 10 months 24 days  
Cost $ 779,794 826,077
Accumulated Amortization And Impairment 546,747 436,982
Total estimated amortization expense $ 233,047 $ 389,095
v3.25.0.1
Financial Statement Components - Schedule of Estimated Amortization Expense for Acquired Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
2025 $ 133,453  
2026 110,987  
2027 5,398  
2028 onwards 8,688  
Total estimated amortization expense $ 258,526 $ 393,767
v3.25.0.1
Financial Statement Components - Schedule of Components of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued compensation and benefits $ 47,415 $ 63,009
Accrued sales, use, and telecom related taxes 55,699 43,796
Accrued marketing and sales commissions 36,391 60,528
Operating lease liabilities, short-term 20,445 16,707
Other accrued expenses 123,849 141,592
Total accrued liabilities $ 283,799 $ 325,632
v3.25.0.1
Fair Value of Financial Instruments - Schedule of Financial Assets Carried at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Other assets:    
Derivative asset, statement of financial position Other assets  
Interest rate swap derivatives $ 2,367 $ 3,505
Other long-term liabilities:    
Derivative liability, statement of financial position Other long-term liabilities  
Interest rate swap derivatives   6,017
Contingent consideration $ 3,000 7,461
Level 1    
Other assets:    
Interest rate swap derivatives 0 0
Other long-term liabilities:    
Interest rate swap derivatives   0
Contingent consideration 0 0
Level 2    
Other assets:    
Interest rate swap derivatives 2,367 3,505
Other long-term liabilities:    
Interest rate swap derivatives   6,017
Contingent consideration 0 0
Level 3    
Other assets:    
Interest rate swap derivatives 0 0
Other long-term liabilities:    
Interest rate swap derivatives   0
Contingent consideration 3,000 7,461
Money market funds    
Cash equivalents:    
Money market funds 114,503 108,462
Money market funds | Level 1    
Cash equivalents:    
Money market funds 114,503 108,462
Money market funds | Level 2    
Cash equivalents:    
Money market funds 0 0
Money market funds | Level 3    
Cash equivalents:    
Money market funds $ 0 $ 0
v3.25.0.1
Fair Value of Financial Instruments - Additional Information (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Level 3  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Change in fair value of consideration liability $ (4.5)
2025 Convertible Notes | Level 2  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt instrument, interest rate 0.00%
Estimated fair value of convertible senior notes $ 160.0
2026 Convertible Notes | Level 2  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt instrument, interest rate 0.00%
Estimated fair value of convertible senior notes $ 557.4
Credit Agreement | Level 2 | Secured Debt | Line of Credit  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Carrying amount of debt $ 370.0
2030 Senior Notes | Senior Notes  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt instrument, interest rate 8.50%
2030 Senior Notes | Level 2 | Senior Notes  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt instrument, interest rate 8.50%
Estimated fair value of convertible senior notes $ 423.6
v3.25.0.1
Strategic Partnerships (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Business Acquisition [Line Items]      
Gain from strategic partnership   $ 11.5  
Developed technology      
Business Acquisition [Line Items]      
Reduction of intangible assets $ 28.5    
Mitel US Holdings      
Business Acquisition [Line Items]      
Gain from strategic partnership $ 7.7    
Avaya      
Business Acquisition [Line Items]      
Asset write-down charge     $ 279.3
Accrued interest on the prepaid sales commission     $ 21.7
v3.25.0.1
Long-Term Debt - Summary of Net Carrying Amount of the Outstanding Long-Term Debt (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Feb. 28, 2023
Debt Instrument [Line Items]      
Total principal amount $ 1,540,391,000 $ 1,560,391,000  
Less: unamortized debt discount and issuance costs on long-term debt (11,258,000) (14,909,000)  
Less: current portion of long-term debt (181,252,000) (20,000,000)  
Long-term debt, net 1,347,881,000 1,525,482,000  
2030 Senior Notes | Senior Notes      
Debt Instrument [Line Items]      
Total principal amount 400,000,000 400,000,000  
Long-term debt, net 393,100,000    
Term Loan | Secured Debt | Line of Credit      
Debt Instrument [Line Items]      
Total principal amount 370,000,000 390,000,000  
Debt instrument, periodic payment, principal $ 20,000,000    
Debt instrument, quarterly payment, principal interest rate (in percent) 1.25%    
Credit agreement $ 400,000,000   $ 400,000,000
Term Loan | Revolving Credit Facility | Line of Credit      
Debt Instrument [Line Items]      
Total principal amount 0 0  
Available borrowing 225,000,000    
Credit agreement 225,000,000   $ 200,000,000
2026 Convertible Notes | Senior Notes      
Debt Instrument [Line Items]      
Long-term debt, net 607,000,000    
2026 Convertible Notes | Convertible Debt      
Debt Instrument [Line Items]      
Total principal amount 609,065,000 609,065,000  
2025 Convertible Notes | Senior Notes      
Debt Instrument [Line Items]      
Long-term debt, net 161,300,000    
2025 Convertible Notes | Convertible Debt      
Debt Instrument [Line Items]      
Total principal amount $ 161,326,000 $ 161,326,000  
v3.25.0.1
Long-Term Debt - Summary of Future Minimum Principal Payments of the Term Facility (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
2025 $ 181,326  
2026 629,065  
2027 20,000  
2028 310,000  
2029 onwards 400,000  
Total principal amount 1,540,391 $ 1,560,391
2025 Convertible Notes | Convertible Debt    
Debt Instrument [Line Items]    
2025 161,326  
2026 0  
2027 0  
2028 0  
2029 onwards 0  
Total principal amount 161,326 161,326
2026 Convertible Notes | Convertible Debt    
Debt Instrument [Line Items]    
2025 0  
2026 609,065  
2027 0  
2028 0  
2029 onwards 0  
Total principal amount 609,065 609,065
Term Loan | Secured Debt | Line of Credit    
Debt Instrument [Line Items]    
2025 20,000  
2026 20,000  
2027 20,000  
2028 310,000  
2029 onwards 0  
Total principal amount 370,000 390,000
2030 Senior Notes | Senior Notes    
Debt Instrument [Line Items]    
2025 0  
2026 0  
2027 0  
2028 0  
2029 onwards 400,000  
Total principal amount $ 400,000 $ 400,000
v3.25.0.1
Long-Term Debt - Narrative (Details) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2023
Aug. 31, 2023
May 31, 2023
Jun. 30, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Feb. 28, 2023
Sep. 30, 2020
Mar. 31, 2020
Debt Instrument [Line Items]                    
Gain on early debt extinguishment         $ 0 $ 53,400,000 $ 0      
Convertible Debt                    
Debt Instrument [Line Items]                    
Percentage of EBITDA         50.00%          
2030 Senior Notes | Senior Notes                    
Debt Instrument [Line Items]                    
Debt instrument, face amount   $ 400,000,000                
Debt instrument, interest rate         8.50%          
Long-term debt, net         $ 393,100,000          
Effective interest rate         8.90%          
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)         0.75%          
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, basis spread on variable 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)         1.75%          
Credit Agreement | Line of Credit | SOFR | Maximum                    
Debt Instrument [Line Items]                    
Debt instrument, basis spread on variable rate (in percent)         3.00%          
Credit Agreement | Revolving Credit Facility | Line of Credit                    
Debt Instrument [Line Items]                    
Credit agreement         $ 225,000,000     $ 200,000,000    
Available borrowing         $ 225,000,000          
Credit Agreement | Secured Debt | Line of Credit                    
Debt Instrument [Line Items]                    
Effective interest rate         7.40%          
Credit agreement         $ 400,000,000     $ 400,000,000    
Convertible senior notes         367,700,000          
Debt issuance costs, net         9,800,000          
Amortization of debt issuance cost         7,000,000          
Credit Agreement | Term Loan | Secured Debt                    
Debt Instrument [Line Items]                    
Credit agreement         750,000,000          
Available borrowing         $ 350,000,000          
Unused capacity, commitment fee percentage         0.50%          
Convertible Senior Notes Due 2025 And 2026 | Convertible Debt                    
Debt Instrument [Line Items]                    
Repayments of debt   153,600,000                
Gain on early debt extinguishment   11,800,000                
2025 Convertible Notes | Senior Notes                    
Debt Instrument [Line Items]                    
Long-term debt, net         $ 161,300,000          
2025 Convertible Notes | Convertible Debt                    
Debt Instrument [Line Items]                    
Debt instrument, face amount                   $ 1,000,000,000
Repayments of debt $ 241,300,000                  
Debt instrument, repurchase amount 252,700,000 125,300,000 $ 460,700,000     $ 252,700,000        
Gain on early debt extinguishment $ 10,500,000   31,100,000              
2025 Convertible Notes | Convertible Debt | Proceeds From Term Loan                    
Debt Instrument [Line Items]                    
Repayments of debt     400,000,000 $ 400,000,000            
2025 Convertible Notes | Convertible Debt | Other Available Cash on Hand                    
Debt Instrument [Line Items]                    
Repayments of debt     $ 27,300,000              
2026 Convertible Notes | Senior Notes                    
Debt Instrument [Line Items]                    
Long-term debt, net         $ 607,000,000          
2026 Convertible Notes | Convertible Debt                    
Debt Instrument [Line Items]                    
Debt instrument, face amount                 $ 650,000,000  
Debt instrument, repurchase amount   $ 40,900,000                
v3.25.0.1
Long-Term Debt - Summary of Conversion of the Notes (Details) - Common Class A
 1 Months Ended
Sep. 30, 2020
$ / shares
Mar. 31, 2020
$ / shares
Dec. 31, 2024
$ / shares
Dec. 31, 2023
$ / shares
Nov. 08, 2021
$ / shares
Debt Instrument [Line Items]          
Common stock, par or stated value per share (in dollars per share)     $ 0.0001 $ 0.0001 $ 0.0001
2025 Convertible Notes          
Debt Instrument [Line Items]          
Common stock, par or stated value per share (in dollars per share)     0.0001    
Initial cap price per share, subject to certain adjustments (in dollars per share)   $ 360.43      
Debt conversion, converted instrument, shares issued   0.0027745      
2026 Convertible Notes          
Debt Instrument [Line Items]          
Common stock, par or stated value per share (in dollars per share)     $ 0.0001    
Initial cap price per share, subject to certain adjustments (in dollars per share) $ 424.03        
Debt conversion, converted instrument, shares issued 0.0023583        
v3.25.0.1
Long-Term Debt - Summary of Capped Calls (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended
Sep. 30, 2020
Mar. 31, 2020
2025 Convertible Notes | Common Class A    
Debt Instrument [Line Items]    
Initial cap price per share, subject to certain adjustment (in dollars per share)   $ 360.43
2026 Convertible Notes | Common Class A    
Debt Instrument [Line Items]    
Initial cap price per share, subject to certain adjustment (in dollars per share) $ 424.03  
2026 Convertible 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 Convertible Notes | Capped call | Common Class A    
Debt Instrument [Line Items]    
Class A Common Stock covered, subject to anti-dilution adjustments (in millions) (in shares) 1,500,000  
v3.25.0.1
Long-Term Debt - Summary of Interest Expense on Long-Term Debt (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Disclosure [Abstract]      
Contractual interest expense $ 59,138 $ 29,285 $ 0
Amortization of debt discount and issuance costs 4,272 4,566 4,468
Total interest expense related to long-term debt $ 63,410 $ 33,851 $ 4,468
v3.25.0.1
Long-Term Debt - Summary of Future Minimum Contractual Interest for Long-Term Debt (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Debt Instrument [Line Items]  
2025 $ 57,160
2026 55,882
2027 54,605
2028 36,421
2029 onwards 68,000
Total contractual interest amount 272,068
Credit Agreement | Line of Credit | Secured Debt  
Debt Instrument [Line Items]  
2025 23,160
2026 21,882
2027 20,605
2028 2,421
2029 onwards 0
Total contractual interest amount 68,068
2030 Senior Notes | Senior Notes  
Debt Instrument [Line Items]  
2025 34,000
2026 34,000
2027 34,000
2028 34,000
2029 onwards 68,000
Total contractual interest amount $ 204,000
v3.25.0.1
Derivative Instruments (Details) - Interest Rate Swap - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
May 31, 2023
Dec. 31, 2024
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   $ 370.0
Reclassified into earnings over next 12 months   1.2
Interest Expense    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Accumulated other comprehensive loss reclassified to earnings   $ 5.3
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%  
v3.25.0.1
Business Combinations (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 21, 2024
Jul. 31, 2023
Dec. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Business Acquisition [Line Items]          
Goodwill     $ 82,986 $ 82,986 $ 67,370
Level 3          
Business Acquisition [Line Items]          
Change in fair value of consideration liability       $ 4,500  
Customer relationships          
Business Acquisition [Line Items]          
Weighted-average useful life (in years)       4 years 1 month 6 days  
Developed technology          
Business Acquisition [Line Items]          
Weighted-average useful life (in years)       1 year 10 months 24 days  
Mitel US Holdings          
Business Acquisition [Line Items]          
Cash consideration $ 26,300        
Net acquired liabilities assumed 8,700        
Goodwill 7,700        
Measurement period adjustment     9,100    
Increase in acquired liabilities     9,100    
Increase in goodwill     $ 9,100    
Weighted-average useful life (in years)     5 years    
Transaction costs     $ 3,600 $ 3,600  
Mitel US Holdings | Customer relationships          
Business Acquisition [Line Items]          
Liabilities assumed 25,300        
Mitel US Holdings | Developed technology          
Business Acquisition [Line Items]          
Liabilities assumed $ 2,000        
Hopin, Inc.          
Business Acquisition [Line Items]          
Cash consideration   $ 14,700      
Goodwill   12,800      
Net acquired liabilities   3,300      
Total purchase price   22,200      
Contingent consideration   7,500      
Asset acquisition contingent consideration   35,000      
Hopin, Inc. | Developed Technology Rights And Customer Relationships          
Business Acquisition [Line Items]          
Liabilities assumed   $ 12,700      
Hopin, Inc. | Developed technology          
Business Acquisition [Line Items]          
Weighted-average useful life (in years)   3 years      
v3.25.0.1
Leases - Narrative (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Lessee, Lease, Description [Line Items]  
Operating lease not yet commenced $ 0.8
Operating lease not yet commenced, lease terms (in years) 1 year
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease renewal term 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease renewal term 6 years
v3.25.0.1
Leases - Schedule of Components of Leases and Lease Costs (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Operating leases    
Operating lease right-of-use assets $ 46,463 $ 42,989
Accrued liabilities 20,445 16,707
Operating lease liabilities 29,733 28,178
Total operating lease liabilities $ 50,178 $ 44,885
Operating lease, liability, current, statement of financial position extensible list Accrued liabilities Accrued liabilities
v3.25.0.1
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease cost $ 25,167 $ 23,315 $ 22,800
Variable lease cost 4,560 4,412 3,930
Total lease cost $ 29,727 $ 27,727 $ 26,730
v3.25.0.1
Leases - Schedule of Future Lease Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Year Ending December 31,    
2025 $ 23,000  
2026 18,024  
2027 8,587  
2028 4,227  
2029 onwards 816  
Total future minimum lease payments 54,654  
Less: Imputed interest (4,476)  
Present value of lease liabilities $ 50,178 $ 44,885
v3.25.0.1
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Operating cash flows resulting from operating leases:    
Cash paid for amounts included in the measurement of lease liabilities $ 21,876 $ 22,844
New ROU assets obtained in exchange of lease liabilities:    
Operating leases $ 24,966 $ 27,846
v3.25.0.1
Leases - Schedule of Lease Term and Discount Rate (Details)
Dec. 31, 2024
Dec. 31, 2023
Lease, Cost [Abstract]    
Weighted-average remaining operating lease term (years) 2 years 7 months 6 days 3 years
Weighted-average operating lease discount rate 6.60% 7.00%
v3.25.0.1
Commitments and Contingencies - Narrative (Details)
$ in Thousands
Jun. 16, 2020
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Damages sought per violation $ 5
v3.25.0.1
Commitments and Contingencies - Schedule of Non-Cancellable Purchase Obligations (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 63,758
2026 40,544
2027 29,577
2028 28,274
2029 4,135
Total $ 166,288
v3.25.0.1
Stockholders’ Deficit and Convertible Preferred Stock - Additional Information (Details)
 12 Months Ended
Nov. 08, 2021
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
vote
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
Feb. 14, 2025
USD ($)
Stockholders Equity Note Disclosure [Line Items]          
Preferred stock, par value (in dollars per share) | $ / shares   $ 0.0001      
Preferred stock, shares authorized (in shares) | shares   100,000,000 100,000,000    
Year of anniversary   7 years      
Remaining repurchase authorization amount   $ 168,100,000      
Stock repurchased during period, value   $ 317,964,000 $ 316,322,000 $ 99,793,000  
Subsequent Event          
Stockholders Equity Note Disclosure [Line Items]          
Share repurchase program authorized additional amount         $ 100,000,000
Common Class A          
Stockholders Equity Note Disclosure [Line Items]          
Common stock, par or stated value per share (in dollars per share) | $ / shares $ 0.0001 $ 0.0001 $ 0.0001    
Common stock, shares authorized (in shares) | shares   1,000,000,000 1,000,000,000    
Number of votes per share | vote   1      
Shares issued upon conversion (in shares) | shares   1      
Repurchases under share repurchase programs   $ 316,923,000 $ 314,964,000 99,748,000  
Stock repurchased during period, value   317,963,000 316,321,000 $ 99,793,000  
Common Class A | Share Repurchase Programs, Settled In July 2024          
Stockholders Equity Note Disclosure [Line Items]          
Repurchases under share repurchase programs   322,400,000      
Stock repurchased during period, value     $ 4,100,000    
Stock repurchased during period, value, excise taxes   $ 1,400,000      
Shares of common stock related to convertible preferred stock          
Stockholders Equity Note Disclosure [Line Items]          
Convertible preferred stock, shares authorized (in shares) | shares 200,000 200,000 200,000    
Convertible preferred stock, shares issued (in shares) | shares   200,000 200,000    
Convertible preferred stock, shares outstanding (in shares) | shares   200,000 200,000    
Convertible preferred stock, par value (in dollars per share) | $ / shares $ 0.0001 $ 0.0001 $ 0.0001    
Convertible preferred stock, aggregate purchase price $ 200,000,000        
Convertible preferred stock, conversion price (in dollars per share) | $ / shares $ 269.22        
Liquidation preference per share (in dollars per share) | $ / shares $ 1,000        
Temporary equity, carrying amount, attributable to parent   $ 199,449,000 $ 199,449,000    
Class B Common Stock          
Stockholders Equity Note Disclosure [Line Items]          
Common stock, par or stated value per share (in dollars per share) | $ / shares   $ 0.0001 $ 0.0001    
Common stock, shares authorized (in shares) | shares   250,000,000 250,000,000    
Number of votes per share | vote   10      
Percentage of written consent of shareholders   67.00%      
Common stock, number of shares outstanding as a percentage of total shares outstanding (percent)   10.00%      
Common stock, shares beneficially owned as a percentage of shares beneficially owned immediately prior to completion of the initial public offering (percent)   50.00%      
v3.25.0.1
Stockholders’ Deficit and Convertible Preferred Stock - Schedule of Common Stock Reserved for Future Issuance (Details)
Dec. 31, 2024
shares
Class of Stock [Line Items]  
Common stock reserved for future issuance (in shares) 138,445,000
2013 Equity incentive plan  
Class of Stock [Line Items]  
Outstanding options and restricted stock unit awards (in shares) 8,306,000
Available for future grants (in shares) 13,769,177
2013 Employee stock purchase plan  
Class of Stock [Line Items]  
Common stock reserved for future issuance (in shares) 6,565,000
Class B Common Stock  
Class of Stock [Line Items]  
Common stock reserved for future issuance (in shares) 9,805,000
Preferred stock  
Class of Stock [Line Items]  
Common stock reserved for future issuance (in shares) 100,000,000
v3.25.0.1
Stockholders’ Deficit and Convertible Preferred Stock - Schedule of Stock Repurchased Activity (Details) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Equity, Class of Treasury Stock [Line Items]      
Total repurchases of common stock $ 317,964 $ 316,322 $ 99,793
Common Class A      
Equity, Class of Treasury Stock [Line Items]      
Repurchases under share repurchase programs (in shares) 9,600 10,066 2,297
Repurchases under share repurchase programs $ 316,923 $ 314,964 $ 99,748
Excise tax withholdings and broker’s commissions 1,040 1,357 45
Total repurchases of common stock $ 317,963 $ 316,321 $ 99,793
v3.25.0.1
Stockholders’ Deficit and Convertible Preferred Stock - Schedule of Share Repurchased and Settled (Details) - Common Class A - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Equity, Class of Treasury Stock [Line Items]      
Repurchases under share repurchase programs (in shares) 9,600 10,066 2,297
Repurchases unsettled as of quarter end (in shares) 0 (118) 0
Prior quarter repurchases settled in current quarter (in shares) 118 0 0
Repurchases of common stock (in shares) 9,718 9,948 2,297
v3.25.0.1
Share-Based Compensation - Summary of Share-Based Compensation Expense Recognized to Statements of Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense $ 339,059 $ 426,679 $ 386,009
Cost of revenues      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense 30,322 36,484 34,269
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense 76,971 93,961 88,846
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense 134,659 151,221 151,950
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense $ 97,107 $ 145,013 $ 110,944
v3.25.0.1
Share-Based Compensation - Summary of Share-Based Compensation Expense by Award Type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 339,059 $ 426,679 $ 386,009
Employee stock purchase plan rights (“ESPP”)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 6,338 7,574 7,719
Performance stock units (“PSUs”)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 20,624 27,035 1,737
Restricted stock units (“RSUs”)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 312,097 $ 392,070 $ 376,553
v3.25.0.1
Share-Based Compensation - Additional Information (Details) - USD ($)
$ in Millions
 1 Months Ended 5 Months Ended 12 Months Ended
Jan. 29, 2014
Sep. 30, 2013
Jan. 29, 2014
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of options granted (in shares)       0 0
Total intrinsic value of options exercised       $ 0.0 $ 0.0
2013 Employee stock purchase plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Available for future grants (in shares)       6,564,718  
Maximum employee subscription rate (percent)       15.00%  
Maximum number of share per employee (in shares)       3,000  
Offering period       6 months  
Additional shares reserved for future issuance (in shares)       934,678  
Unrecognized share-based compensation expense       $ 2.5 $ 3.2
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       2 years 1 month 6 days 2 years 7 months 6 days
Unrecognized share-based compensation expense       $ 250.4 $ 393.5
Restricted Stock Units | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period contractual term       3 years  
Restricted Stock Units | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period contractual term       4 years  
Performance stock units (“PSUs”)          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized share-based compensation expense, remaining weighted-average vesting periods       10 months 24 days 2 years 1 month 6 days
Unrecognized share-based compensation expense       $ 22.5 $ 19.5
Performance stock units (“PSUs”) | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period contractual term       2 years  
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage       0.00%  
Performance stock units (“PSUs”) | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period contractual term       3 years  
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage       200.00%  
Common Class A          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Common stock, shares reserved for future issuance (in shares)       80,913,000 83,543,000
Common Class A | 2013 Employee stock purchase plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Common stock, shares reserved for future issuance (in shares)       1,250,000  
Percentage of outstanding shares (percent)       1.00%  
Common Class A | Tranche One | 2013 Employee stock purchase plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Purchase price of common stock (as a percentage of fair value)       85.00%  
Common Class A | Tranche Two | 2013 Employee stock purchase plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Purchase price of common stock (as a percentage of fair value)       85.00%  
2013 Equity Incentive Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Percentage of outstanding shares (percent)   5.00%      
Available for future grants (in shares)       13,769,177  
Vesting period contractual term 7 years   4 years    
2013 Equity Incentive Plan | Post January 29, 2014 | Previously Reported          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period contractual term     10 years    
2013 Equity Incentive Plan | Common Class A          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Common stock, shares reserved for future issuance (in shares)   6,200,000      
Common stock, additional shares reserved (in shares)   6,200,000   4,673,390  
Key Employee Equity Bonus Plan | Restricted Stock Units          
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       $ 4.4  
Number of shares issued (in shares)       1,395,903 2,222,098
Share based compensation requisite service period recognition       4 months 24 days  
v3.25.0.1
Share-Based Compensation - Summary of Stock Option Activity Plans (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Number of Options Outstanding (in thousands)        
Beginning balance (in shares) 0 22 154  
Exercised (in shares) 0 (22) (132)  
Canceled/Forfeited (in shares) 0 0 0  
Ending balance (in shares) 0 0 22 154
Vested and expected to vest (in shares) 0      
Exercisable (in shares) 0      
Weighted- Average Exercise Price Per Share        
Beginning balance (in dollars per share) $ 0 $ 12.53 $ 9.12  
Exercised (in dollars per share) 0 12.53 8.54  
Canceled/Forfeited (in dollars per share) 0 0 0  
Ending balance (in dollars per share) 0 $ 0 $ 12.53 $ 9.12
Vested and expected to vest (in dollars per share) 0      
Exercisable (in dollars per share) $ 0      
Weighted- Average Contractual Term (in Years)        
Weighted-average contractual term 0 years 0 years 6 months 10 months 24 days
Vested and expected to vest 0 years      
Exercisable 0 years      
Aggregate Intrinsic Value (in thousands)        
Outstanding $ 0 $ 0 $ 509 $ 27,465
Vested and expected to vest 0      
Exercisable $ 0      
v3.25.0.1
Share-Based Compensation - Summary of Assumptions Used to Value ESPP Rights Under the Black-Scholes Option-Pricing Model (Details) - 2013 Employee stock purchase plan - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 6 months 6 months 6 months
Expected volatility 46.00% 67.00% 81.00%
Risk-free interest rate 4.89% 5.36% 3.01%
Expected dividend yield 0.00% 0.00% 0.00%
Offering grant date fair value of ESPP rights (in dollars per share) $ 10.59 $ 9.38 $ 20.18
v3.25.0.1
Share-Based Compensation - Summary of RSUs/PSUs Activity (Details) - Restricted Stock And Performance Shares - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Number of RSUs/PSUs Outstanding (in thousands)        
Beginning balance (in shares) 10,047 5,100 2,851  
Granted (in shares) 6,947 13,666 5,999  
Released (in shares) (6,226) (5,891) (2,787)  
Canceled/Forfeited (in shares) (2,462) (2,828) (963)  
Ending balance (in shares) 8,306 10,047 5,100  
Weighted- Average Grant Date Fair Value Per Share        
Beginning balance (in dollars per share) $ 52.47 $ 119.55 $ 258.26  
Granted (in dollars per share) 36.34 32.16 72.96  
Released (in dollars per share) 53.15 61.12 131.18  
Canceled/Forfeited (in dollars per share) 40.28 57.29 206.32  
Ending balance (in dollars per share) $ 42.09 $ 52.47 $ 119.55  
Aggregate Intrinsic Value (in thousands)        
Outstanding $ 290,799 $ 325,153 $ 180,577 $ 534,186
v3.25.0.1
Income Taxes - Summary of Net Loss Before Provision for (Benefit from) Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
United States $ (88,910) $ (190,912) $ (898,036)
International 41,685 34,067 23,983
Loss before income taxes $ (47,225) $ (156,845) $ (874,053)
v3.25.0.1
Income Taxes - Summary of Provision for (Benefit from) Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current      
Federal $ 2,930 $ 0 $ 0
State 5,919 1,792 1,104
Foreign 5,849 5,972 4,710
Total current 14,698 7,764 5,814
Deferred      
Federal 0 0 0
State 0 0 0
Foreign (3,635) 631 (701)
Total deferred (3,635) 631 (701)
Total income tax provision $ 11,063 $ 8,395 $ 5,113
v3.25.0.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Contingency [Line Items]      
Current income tax expense, capitalization of research and development $ 8,800    
Current federal income tax expense 2,930 $ 0 $ 0
Current state income tax expense 5,919 1,792 $ 1,104
Unrecognized tax benefits that would impact effective tax rate 300    
Federal      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards 1,400,000    
Foreign Country      
Income Tax Contingency [Line Items]      
Deferred tax assets, operating loss carryforwards, not subject to expiration 15,500    
State      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards 1,200,000    
Valuation allowances, deferred tax asset, (decrease) increase (30,300) $ 5,000  
Research Credit Carry-forward | Federal      
Income Tax Contingency [Line Items]      
Research credit carryforwards for tax purposes 67,800    
Research Credit Carry-forward | State      
Income Tax Contingency [Line Items]      
Research credit carryforwards for tax purposes $ 54,100    
v3.25.0.1
Income Taxes - Summary of Variation of Effective Provision for (Benefit from) Income Taxes from Statutory Federal Income Tax Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal tax benefit at statutory rate $ (9,917) $ (32,937) $ (183,551)
State tax, net of federal tax benefit 4,676 1,415 848
Research and development credits 6,650 (11,574) (12,830)
Share-based compensation 34,227 10,956 5,828
Debt extinguishment 0 0 19
Global Intangible Low-Taxed Income (“GILTI”) 0 3,035 0
Foreign derived intangible income (“FDII”) (2,143) 0 0
Other permanent differences (983) 1,674 3,143
Foreign tax rate differential (2,624) 548 (2,497)
Net operating (gains) losses not recognized (18,823) 35,278 194,153
Release of valuation allowance associated with acquisitions 0 0 0
Total income tax provision $ 11,063 $ 8,395 $ 5,113
v3.25.0.1
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets    
Net operating loss and credit carry-forwards $ 407,235 $ 463,400
Research and development credits 73,352 87,111
Research and development expenditure capitalization 201,814 130,792
Basis difference in investments 138 40,655
Sales tax accrual 67 67
Share-based compensation 5,926 21,014
Acquired intangibles 91,943 76,171
Accrued liabilities 15,141 17,994
Gross deferred tax assets 795,616 837,204
Valuation allowance (644,379) (674,720)
Total deferred tax assets 151,237 162,484
Deferred tax liabilities    
Deferred sales commissions (104,236) (117,875)
Lease right of use assets (6,948) (8,255)
Property and equipment (35,837) (35,753)
Net deferred tax assets $ 4,216 $ 601
v3.25.0.1
Income Taxes - Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]      
Unrecognized tax benefits, beginning of the year $ 31,976 $ 26,412 $ 20,010
Increases related to prior year tax positions 0 0 0
Decreases related to prior year tax positions (3,088) (418) 0
Increases related to current year tax positions 1,305 5,982 6,402
Unrecognized tax benefits, end of year $ 30,193 $ 31,976 $ 26,412
v3.25.0.1
Basic and Diluted Net Loss Per Share - Computation of Company's Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator      
Net loss $ (58,288) $ (165,240) $ (879,166)
Denominator      
Weighted-average common shares outstanding for basic net loss per share (in shares) 92,110 94,912 95,239
Weighted-average common shares outstanding for diluted net loss per share (in shares) 92,110 94,912 95,239
Basic net income (loss) per common share (in dollars per share) $ (0.63) $ (1.74) $ (9.23)
v3.25.0.1
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
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potential common shares excluded from diluted net loss per share (in shares) 10,603 10,742 4,793
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) 9,860 9,999 4,050
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
v3.25.0.1
401(k) Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
401(k) Plan      
Defined Contribution Plan Disclosure [Line Items]      
Employer contributions $ 6.0 $ 6.2 $ 6.9
v3.25.0.1
Restructuring Activities - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Restructuring and Related Activities [Abstract]  
Restructuring and related costs $ 12.6
v3.25.0.1
Restructuring Activities - Schedule of Restructuring Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 12,635 $ 20,368 $ 18,184
Cost of revenues      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 1,334 876 457
Research and development      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 3,215 4,457 5,321
Sales and marketing      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 5,885 8,758 9,695
General and administrative      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 2,201 $ 6,277 $ 2,711
v3.25.0.1
Restructuring Activities - Schedule of Restructuring Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring Reserve [Roll Forward]      
Beginning balance $ 3,191 $ 5,485  
Restructuring costs 12,635 20,368 $ 18,184
Cash payments (14,209) (22,662)  
Ending balance $ 1,617 $ 3,191 $ 5,485
v3.25.0.1
Segment Information - Narrative (Details) - segment
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]    
Number of reportable segment 1  
Number of operating segments 1  
U.S. | Long-lived Assets | Geographic Concentration Risk    
Segment Reporting Information [Line Items]    
Concentration risk, percentage 90.00% 94.00%
v3.25.0.1
Segment Information - Schedule of Reconciliation of Net Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Revenues $ 2,400,395 $ 2,202,429 $ 1,988,330
Less:      
Share-based compensation 339,059 426,679 386,009
Asset write-down and other charges 0 0 305,351
Income (loss) from operations 2,670 (198,811) (649,475)
Other income (expense), net      
Interest expense (64,995) (35,997) (4,807)
Other income (expense) 15,100 77,963 (219,771)
Other income (expense), net (49,895) 41,966 (224,578)
Loss before income taxes (47,225) (156,845) (874,053)
Provision for income taxes 11,063 8,395 5,113
Net loss (58,288) (165,240) (879,166)
Reportable Segment      
Segment Reporting Information [Line Items]      
Revenues 2,400,395 2,202,429 1,988,330
Less:      
Share-based compensation 339,059 426,679 386,009
Asset write-down and other charges 0 0 283,689
Depreciation and amortization 222,609 233,940 246,561
Other segment items 1,836,057 1,740,621 1,721,546
Income (loss) from operations $ 2,670 $ (198,811) $ (649,475)
Operating margin as % of revenue 0.10% (9.00%) (32.70%)
Other income (expense), net      
Interest expense $ (64,995) $ (35,997) $ (4,807)
Other income (expense) 15,100 77,963 (219,771)
Other income (expense), net (49,895) 41,966 (224,578)
Loss before income taxes (47,225) (156,845) (874,053)
Provision for income taxes 11,063 8,395 5,113
Net loss (58,288) (165,240) (879,166)
Interest income $ 8,000 $ 12,500 $ 2,500
v3.25.0.1
Subsequent Events (Details) - USD ($)
$ in Millions
Feb. 14, 2025
Dec. 31, 2024
Subsequent Event [Line Items]    
Remaining repurchase authorization amount   $ 168.1
Subsequent Event    
Subsequent Event [Line Items]    
Share repurchase program authorized additional amount $ 100.0  
Share repurchase program authorized amount $ 268.1