Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

7. Goodwill and Intangible Assets

Goodwill

Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired.

The following table represents the changes to goodwill during the nine months ended September 30, 2023 (in thousands):

	Carrying Amount
Balance as of December 31, 2022	$	134,335
Additions from acquisitions	7,536
Foreign currency translation adjustments	(71)
Balance as of September 30, 2023	$	141,800

There are no accumulated impairment losses for any period presented.

Intangible Assets

The following tables present details of the Company’s finite-lived intangible assets as of September 30, 2023 and December 31, 2022 (in thousands):

	As of September 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	75,333	$	(35,538)	$	39,795
Patents (1)	13,000		(325)		12,675
Assembled workforce	10,000		(6,541)		3,459
Trade name	500		(208)		292
Total intangible assets	$	98,833	$	(42,612)	$	56,221

(1)The estimated useful life of the acquired patents was 10 years as of the second quarter of 2023 acquisition date.

	As of December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	72,059	$	(24,240)	$	47,819
Assembled workforce	10,000		(4,042)		5,958
Trade name	500		(133)		367
Total intangible assets	$	82,559	$	(28,415)	$	54,144

The above tables do not include $0.6 million of indefinite lived intangible assets as of September 30, 2023 and December 31, 2022.

Amortization expense related to our finite-lived intangible assets was $5.2 million and $14.2 million for the three and nine months ended September 30, 2023, respectively, and $4.2 million and $12.0 million for the three and nine months ended September 30, 2022, respectively.

Expected future amortization expenses related to the intangible assets as of September 30, 2023 are as follows (in thousands):

Year ending December 31:
Remainder of 2023	$	5,050
2024	18,729
2025	15,503
2026	6,468
2027	2,905
Thereafter	7,566
Total remaining amortization	$	56,221