Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets The carrying amount of goodwill was $512.9 million and $462.3 million at December 31, 2021 and 2020, respectively. During the second quarter of 2021, the Company added $50.6 million of goodwill from the ClickSWITCH acquisition. Goodwill represents the excess purchase price over the fair value of assets acquired. The Company has one operating segment and one reporting unit. Goodwill is tested for impairment on an annual basis in the fourth quarter of the fiscal year, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach based on the market capitalization of the reporting unit. The annual impairment test was performed as of October 31, 2021 and no impairment of goodwill was identified during 2021, nor has any impairment of goodwill been recorded to date.

Intangible assets at December 31, 2021 and 2020 were as follows:

	As of December 31, 2021						As of December 31, 2020
	Gross Amount		Accumulated Amortization		Net Carrying Amount		Gross Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	62,785	$	(28,349)	$	34,436	$	64,405	$	(18,568)	$	45,837
Non-compete agreements	13,275		(5,898)		7,377		12,705		(3,205)		9,500
Trademarks	19,870		(5,858)		14,012		19,870		(3,612)		16,258
Acquired technology	152,080		(52,220)		99,860		141,340		(30,256)		111,084
Capitalized software development costs	10,969		(4,193)		6,776		5,103		(2,923)		2,180
	$	258,979	$	(96,518)	$	162,461	$	243,423	$	(58,564)	$	184,859

The estimated useful lives and weighted average amortization periods for intangible assets at December 31, 2021 are as follows (in years):

	Estimated Useful Life	Weighted Average Amortization Period
Customer relationships	4 - 5	2.8
Non-compete agreements	2 - 5	2.8
Trademarks	8 - 10	6.4
Acquired technology	5 - 7	4.7
Capitalized software development costs	3 - 5	4.6
Total		4.3

The Company recorded intangible assets from the business combinations discussed in Note 3 - Business Combinations. Intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from two to ten years. Amortization expense included in cost of revenues in the consolidated statements of comprehensive loss was $22.0 million, $21.3 million and $9.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amortization expense included in operating expenses in the consolidated statements of comprehensive loss was $17.9 million, $17.9 million and $6.3 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Gross capitalized software development costs were $11.0 million and $5.1 million as of December 31, 2021 and 2020, respectively. The Company amortized $1.3 million, $0.8 million, and $0.8 million of capitalized software development costs for the years ended December 31, 2021, 2020 and 2019, respectively.

The estimated future amortization expense related to intangible assets as of December 31, 2021 was as follows:

	Amortization
Year Ended December 31,
2022	$	41,666
2023	40,970
2024	35,860
2025	23,620
2026	17,052
Thereafter	3,293
Total amortization	$	162,461