An asset that has long-term financial worth to a business but has no physical presence yet offers substantial value is known as an "intangible asset". Intangible assets that can be separated from other assets and sold by the company are considered identifiable intangible assets. Intellectual property like patents, trademarks, copyrights, and even non-cash government grants like landing rights at airports or broadcasting licenses are examples of identifiable intangible assets. These assets are being straight-line-amortized at their estimated fair values that were recorded at the acquisition date across their respective expected useful lifetimes.
RingCentral’s gross value of intangible assets grew from $149.99 million in FY2020 to $814.87 million in FY2021. In FY2021, the company's net value of intangible assets was $716.61 million. Customer relationships and Developed technology amounted to $21.33 million, and $814.87 million respectively, based on the company's calculation of the fair value of identified intangible assets. The company's amortization expense for intangible assets was $66.4 million in FY2022.
The company acquired specific intellectual property rights (primarily developed technology) for a consideration of $8.6 million in 2021, $26.6 million in 2020, and $105.5 million in 2019, which were recorded as acquired intangibles on the company's consolidated balance sheet in connection with their strategic partnerships in 2020 and 2019 and arrangements with other unrelated third parties. The company spent $302.7 million in the three months ending December 2021, to buy intellectual property from Mitel, this was the main factor in the $396.8 million net cash utilized in investing activities for the year ended 2021.
The company funded $6.9 million in property, equipment, and software licenses through vendor financing contracts for a three-year repayment period with interest rates of up to 3% during the fiscal year ending 2021. The subscription revenue grew from 1,086.28 million in FY2020 to $ 1,482.08 million in FY2021. In comparison to the fiscal year 2020, subscription revenue increased by $395.8 million. The upsells of seats and new products to their current customer base, as well as the addition of their MVP and contact center solutions, were the primary drivers of the growth in revenue.
RingCentral Inc (RCI) is a provider of enterprise cloud communications, collaboration, Voice and video meetings, and contact center software-as-a-service solutions. The company's product portfolio includes RingCentral MVP, RingCentral customer engagement solutions, and RingCentral Video. It offers multiple modes of communication and cost-effective solutions such as audio, video, text messaging, web conferencing, and a contact center. The company serves healthcare, financial services, high-tech, government, education, technology, insurance, hospitality, retail, real estate, manufacturing, construction, professional services, and legal sectors. It has a business presence in the US, Canada, Russia, China, Ukraine, the Philippines, France, and the UK.
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United States of America
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Japan
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