Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Intangible Assets

The table below summarizes the Company’s intangible assets (in thousands):

	Useful Lives (Years)	Weighted Average Remaining  Life (Years)	December 31, 2024
			Intangible Assets		Accumulated Amortization		Net Balance
Trade names	2-9	4.2	38,822		(20,784)		18,038
Capitalized internal use software	3	1.8	37,238		(16,087)		21,151
Software and technology	3-9	4.1	196,821		(102,307)		94,514
Total			$	272,881	$	(139,178)	$	133,703

	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 of $37.1 million, $35.0 million, and $35.5 million for the years ended December 31, 2024, 2023 and 2022 including amortization related to impaired intangible assets. Intangible assets includes an impairment charge of $100.3 million related to the historical Facebank reporting unit.

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

	Future Amortization
2025	37,715
2026	35,330
2027	29,033
2028	25,305
2029	6,320
Total	$	133,703

Goodwill

The following table is a summary of the changes to goodwill (in thousands):

	December 31,
	2024		2023
Beginning balance	$	622,818	$	618,506
Foreign currency translation adjustment	(7,419)		4,312
Ending balance	$	615,399	$	622,818

In the first quarter of 2024, we identified a triggering event that required us to perform a quantitative assessment of impairment of goodwill as of March 31, 2024. The Company estimated the fair value of its single reporting unit by weighting results from a market approach and an income approach. Significant assumptions inherent in the valuation methodologies included, but were 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.

We performed a qualitative assessment for our annual impairment test in the fourth quarter of 2024 and concluded that it was not more-likely-than-not that the fair value was less than the carrying value.

Goodwill includes a cumulative impairment charge of $148.1 million as of December 31, 2024 and 2023 related to the historical Facebank reporting unit