Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

5. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of purchase consideration in a business combination over the fair value of tangible and intangible assets acquired net of the liabilities assumed. All goodwill relates to the Company’s platform segment.

The following table reflects the carrying value of goodwill (in thousands):

	Carrying Value
Balance as of December 31, 2020	$	73,058
Additions:
This Old House acquisition		47,626
Other immaterial acquisitions		5,000
Balance as of March 31, 2021	$	125,684

Intangible Assets

The following table is the summary of Company’s intangible assets (in thousands):

	As of March 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Useful Lives (in years)
Developed technology	$	62,367	$	(16,082	)	$	46,285		5.9
Customer relationships		14,100		(4,752	)		9,348		4.0
Tradename		20,400		(466	)		19,934		9.8
Patents		4,076		(388	)		3,688		14.0
Intangible assets	$	100,943	$	(21,688	)	$	79,255

	As of December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Useful Lives (in years)
Developed technology	$	62,367	$	(13,439	)	$	48,928		5.9
Customer relationships		13,400		(3,908	)		9,492		4.0
Tradename		400		(400	)		—		0.5
Patents		4,076		(315	)		3,761		14.0
Intangible assets	$	80,243	$	(18,062	)	$	62,181

The Company recorded expenses of $3.6 million and $3.8 million for amortization of intangible assets during the three months ended March 31, 2021 and March 31, 2020, respectively. In three months ended March 31, 2021 and 2020, the Company recorded amortization of developed technology in Cost of revenue, platform, Cost of revenue, player and Research and development expenses. The amortization for customer relationships and tradenames is recorded in Sales and marketing expenses and the amortization of patents is recorded in General and administrative expenses in the condensed consolidated statement of operations.

The estimated future amortization expense for intangible asset for the next five years and thereafter is as follows (in thousands):

Year Ending December 31,
2021 (remaining 9 months)	$	12,153
2022		15,896
2023		15,338
2024		12,546
2025		10,794
Thereafter		12,528
Total	$	79,255