Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

8. Intangible Assets and Goodwill

Acquisition intangible assets, net

As of March 31, 2023 and December 31, 2022, intangible assets, net consisted of the following:


	March 31, 2023							December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	10,100	$	(5,315	)	$	4,785	$	10,100	$	(4,944	)	$	5,156
Trade name		900		(900	)		—		900		(900	)		—
Acquisition intangible assets, net	$	11,000	$	(6,215	)	$	4,785	$	11,000	$	(5,844	)	$	5,156

Amortization expense was $0.4 million and $2.9 million during the three months ended March 31, 2023 and 2022, respectively.

Goodwill

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


Balance as of December 31, 2022	$	459,817
Foreign currency translation		1,162
Balance as of March 31, 2023	$	460,979

Capitalized internal-use software

As of March 31, 2023 and December 31, 2022, capitalized internal-use software consisted of the following:


(in thousands)	March 31, 2023			December 31, 2022
Gross capitalized internal-use software	$	45,078		$	62,249
Less: Accumulated amortization		(15,136	)		(32,654	)
Capitalized internal-use software, net	$	29,942		$	29,595

Amortization expense related to capitalized internal-use software was $2.1 million and $2.8 million during the three months ended March 31, 2023 and 2022, respectively, and is included in cost of revenue in the condensed consolidated statements of operations.

The decrease in gross capitalized internal-use software is due to the removal of $19.6 million of fully amortized capitalized internal-use software during the first quarter of 2023, offset by current quarter additions.

Future amortization expense

As of March 31, 2023, future amortization expense by year is expected to be as follows:


(in thousands)	Capitalized internal-use software, net		Acquisition intangible assets, net
Remainder of 2023	$	5,085	$	1,113
2024		4,964		1,483
2025		3,458		1,389
2026		279		800
Total amortization expense	$	13,786	$	4,785

Future capitalized internal-use software amortization excludes $16.2 million of costs which are currently in the development phase.