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Share-Based Compensation
 9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
A summary of share-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations is as follows (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
 2020201920202019
Cost of revenues$3,847 $2,351 $10,419 $6,112 
Research and development10,679 6,230 27,918 16,000 
Sales and marketing17,552 10,182 45,165 27,589 
General and administrative19,488 8,613 53,908 21,989 
Total share-based compensation expense$51,566 $27,376 $137,410 $71,690 
A summary of share-based compensation expense by award type is as follows (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
 2020201920202019
Options$8 $137 $41 $876 
Employee stock purchase plan rights1,719 868 4,954 2,810 
Restricted stock units49,839 26,371 132,415 68,004 
Total share-based compensation expense$51,566 $27,376 $137,410 $71,690 
Equity Incentive Plans
As of September 30, 2020, a total of 17,605,478 shares remained available for grant under the RingCentral, Inc. Amended and Restated 2013 Equity Incentive Plan (“2013 Plan”).
A summary of option activity under all of the Company’s equity incentive plans at September 30, 2020 and changes during the period then ended is presented in the following table:
Number of
Options
Outstanding
(in thousands)		Weighted-
Average
Exercise Price
Per Share		Weighted-
Average
Contractual
Term
(in Years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding at December 31, 20192,257 $13.13 2.5$351,428 
Granted— — 
Exercised(956)13.36 
Canceled/Forfeited— — 
Outstanding at September 30, 20201,301 $12.96 1.8$340,420 
Vested and expected to vest as of September 30, 20201,301 $12.96 1.8$340,416 
Exercisable as of September 30, 20201,300 $12.96 1.8$340,264 
There were no options granted during the three and nine months ended September 30, 2020 and 2019. The total intrinsic value of options exercised during the three months ended September 30, 2020 and 2019 were $43.9 million and $57.3 million, respectively, and $219.7 million and $137.6 million, during the nine months ended September 30, 2020 and 2019, respectively.
As of September 30, 2020, there was an immaterial amount of unrecognized share-based compensation expense, net of estimated forfeitures, related to non-vested stock option grants, which will be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately 0.3 years.
Employee Stock Purchase Plan
The Company's Employee Stock Purchase Plan (“ESPP”) allows eligible employees to purchase shares of the Company’s Class A Common Stock at a discounted price through payroll deductions.
As of September 30, 2020, there was a total of $1.0 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to the ESPP, which will be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately 0.1 years. As of September 30, 2020, a total of 4,713,290 shares were available for issuance under the ESPP.
Restricted Stock Units
The 2013 Plan provides for the issuance of restricted stock units (“RSUs”) to employees, directors, and consultants. RSUs issued under the 2013 Plan generally vest over four years. A summary of activity of RSUs under the 2013 Plan at September 30, 2020, and changes during the period then ended is presented in the following table:
Number of
RSUs
Outstanding
(in thousands)		Weighted-
Average
Grant Date Fair
Value Per Share		Aggregate
Intrinsic Value
(in thousands)
Outstanding at December 31, 20193,249 $85.39 $548,145 
Granted1,253 217.88 
Released(1,397)95.97 
Canceled/Forfeited(198)107.71 
Outstanding at September 30, 20202,907 $135.88 $798,357 
As of September 30, 2020, there was a total of $278.9 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to RSUs, which will be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately 2.3 years.
Bonus Plan
In December 2018, the Company's board of directors (the "Board") adopted the Selective 2019 Key Employee Equity Bonus Plan (the "2019 KEEB Plan”), which became effective on January 1, 2019, and in December 2019, the Board adopted the Selective 2020 Key Employee Equity Bonus Plan (the "2020 KEEB Plan" and together with the 2019 KEEB Plan the "KEEB Plans"), which became effective on January 1, 2020. Both KEEB Plans allow the recipients to earn fully vested shares of the Company’s Class A Common Stock upon the achievement of quarterly service and performance conditions. During the three and nine months ended September 30, 2020, the Company issued 22,685 and 71,541 RSUs, respectively, under the KEEB Plans. The total requisite service period of each quarterly award is approximately 0.4 years.
The unrecognized share-based compensation expense was approximately $2.1 million, which will be recognized over the remaining service period of 0.1 years. The shares issued under the KEEB Plans will be issued from the reserve of shares available for issuance under the 2013 Plan.