Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The tables below summarize the Company’s intangible assets at March 31, 2024 and December 31, 2023 (in thousands):


	Useful Life (Years)	Weighted Average Remaining Life (Years)	March 31, 2024
			Intangible Assets		Accumulated Amortization		Net Balance

Trade names	2 - 9	4.9	38,844		(17,624)		21,220
Capitalized internal use software	3	2.1	29,378		(8,040)		21,338
Software and technology	3 - 9	4.9	195,954		(85,466)		110,488
Total			$	264,176	$	(111,130)	$	153,046


	Useful Lives (Years)	Weighted Average Remaining Life (Years)	December 31, 2023
			Intangible Assets		Accumulated Amortization		Net Balance
Customer relationships	2	0.0	$	32,729	$	(32,729)	$	—
Trade names	2 - 9	5.2	38,859		(16,578)		22,281
Capitalized internal use software	3	2.3	25,770		(5,893)		19,877
Software and technology	3 - 9	5.1	196,136		(79,846)		116,290
Total			$	293,494	$	(135,046)	$	158,448

The intangible assets are being amortized over their respective original useful lives, which range from two to nine years. The Company recorded amortization expense related to the above intangible assets of approximately $8.9 million and $8.4 million for the three months ended March 31, 2024 and 2023, respectively.

The estimated future amortization expense associated with intangible assets, net is as follows (in thousands):


Year ended December 31,	Future Amortization
2024	$	27,501
2025	34,876
2026	32,492
2027	26,993
2028	25,075
Thereafter	6,109
Total	$	153,046

Goodwill

The following table is a summary of the changes to goodwill for the three months ended March 31, 2024 (in thousands):


Balance - December 31, 2023	$	622,818
Foreign currency translation adjustment	(2,907)
Balance - March 31, 2024	$	619,911

Since December 31, 2023, the Company experienced sustained decreases in its stock price and market capitalization. As a result, the Company conducted an impairment test of its goodwill and long-lived assets as of March 31, 2024. The Company estimated the fair value by weighting results from a market approach and an income approach. Significant assumptions inherent in the valuation methodologies included, but are not limited to, prospective financial information (including revenue growth and subscriber related expenses), a long-term growth rate, discount rate, and comparable multiples from publicly-traded companies in the same industry. The results of the impairment test showed that the fair value was in excess of its carrying value. Therefore, it was determined that goodwill is not impaired.

As of March 31, 2024, goodwill includes an accumulated impairment charge of $148.1 million.