Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 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		46,671
Nielsen AVA business acquisition		22,055
Other immaterial acquisitions		5,000
Balance as of September 30, 2021	$	146,784

Intangible Assets

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

	As of September 30, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Useful Lives (in years)
Developed technology	$	76,567	$	(22,596	)	$	53,971		5.9
IPR&D technology		8,500		—			8,500		—
Customer relationships		14,100		(6,514	)		7,586		4.0
Tradename		20,400		(1,466	)		18,934		9.8
Patents		4,076		(533	)		3,543		14.0
Intangible assets	$	123,643	$	(31,109	)	$	92,534		6.7

	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		6.0

The Company recorded expenses of $4.7 million and $3.6 million for amortization of intangible assets during the three months ended September 30, 2021 and 2020, respectively. The Company recorded expenses of $13.0 million and $10.9 million for amortization of intangible assets during the nine months ended September 30, 2021 and 2020, respectively. During the three and nine months ended September 30, 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 Company recorded amortization of customer relationships and tradenames in Sales and marketing expenses, and recorded amortization of patents in General and administrative expenses in the condensed consolidated statements of operations.

As of September 30, 2021, the estimated future amortization expense for intangible assets for the next five years and thereafter is as follows (in thousands):

Year Ending December 31,
2021 (remaining 3 months)	$	4,588
2022		18,302
2023		17,600
2024		14,808
2025		13,104
Thereafter		15,632
Total	$	84,034