Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

8. Intangible Assets and Goodwill

Acquisition intangible assets, net

As of June 30, 2022 and December 31, 2021, intangible assets, net consisted of the following:


	June 30, 2022							December 31, 2021
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	20,235	$	(14,250	)	$	5,985	$	20,426	$	(12,927	)	$	7,499
Trade name		2,029		(1,759	)		270		2,125		(1,094	)		1,031
Developed technology		16,194		(15,866	)		328		17,074		(14,831	)		2,243
Acquisition intangible assets, net	$	38,458	$	(31,875	)	$	6,583	$	39,625	$	(28,852	)	$	10,773

Amortization expense was $1.3 million and $4.2 million during the three and six months ended June 30, 2022, respectively, and $2.6 million and $5.2 million during the three and six months ended June 30, 2021, respectively.

In connection with the March 2022 Restructuring Plan, the Company simplified its brand positioning. As a result, the Company concluded that the acquired Trade name from a prior acquisition had no future economic benefit beyond that date and has accelerated the amortization of the related intangible, which is included in restructuring in the condensed consolidated statement of operations. See Note 15 for additional information.

Goodwill

The changes in the carrying amount of goodwill were as follows (in thousands):


Balance as of December 31, 2021	$	463,736
Foreign currency translation		(5,140	)
Balance as of June 30, 2022	$	458,596

Capitalized internal-use software

As of June 30, 2022 and December 31, 2021, capitalized internal-use software consisted of the following:


(in thousands)	June 30, 2022			December 31, 2021
Gross capitalized internal-use software	$	57,878		$	51,395
Less: Accumulated amortization		(28,777	)		(23,237	)
Capitalized internal-use software, net	$	29,101		$	28,158

Amortization expense related to capitalized internal-use software was $2.7 million and $5.5 million during the three and six months ended June 30, 2022, respectively, and $3.0 million and $5.9 million during the three and six months ended June 30, 2021, respectively, and is included in cost of revenue in the condensed consolidated statements of operations.

Future amortization expense

As of June 30, 2022, future amortization expense by year is expected to be as follows:


(in thousands)	Capitalized internal-use software, net		Acquisition intangible assets, net
Remainder of 2022	$	3,579	$	1,428
2023		4,139		1,483
2024		1,608		1,483
2025		400		1,389
2026		—		800
Total amortization expense	$	9,726	$	6,583

Future capitalized internal-use software amortization excludes $19.4 million of costs which are currently in the development phase.