Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

As described in Note 4, as of May 2022, the Company revised the presentation of segment information to reflect changes in the way the Company manages and evaluates the business. As such, the Company now has two operating segments, Software Platform and Apps, which are also its reporting units. This change also resulted in a change in reporting units to coincide with the new operating segments—Software Platform and Apps. Due to this change, the Company considered whether indicators of impairment were present through the date of filing of this Quarterly Report on Form 10-Q for goodwill and concluded that no applicable factors existed to give rise to goodwill impairment testing during the three months ended June 30, 2022. Though we concluded that goodwill impairment testing was not applicable as of June 30, 2022, we will continue to monitor impairment indicators. The fair value of reporting units after the change was measured using a discounted cash flow valuation model incorporating discount rates commensurate with the risks involved. The Company allocated goodwill to the new reporting units using a relative fair value approach with total goodwill of $1.8 billion allocated, $1.5 billion to Software Platform and $0.3 billion to Apps.

The following table presents goodwill activity (in thousands):



December 31, 2021	$	966,427
Goodwill acquired	894,463
Foreign currency translation	(57,723)
June 30, 2022	$	1,803,167

Intangible assets, net consisted of the following (in thousands):


	Weighted- Average Remaining Useful Life (Years)	As of June 30, 2022						As of December 31, 2021
		Gross Carrying Value		Accumulated Amortization		Net Book Value		Gross Carrying Value		Accumulated Amortization		Net Book Value


Long-lived intangible assets:
Apps	4.8	$	1,988,525	$	(701,772)	$	1,286,753	$	1,939,180	$	(529,012)	$	1,410,168
Customer relationships	9.7	511,338		(32,722)		478,616		145,870		(8,442)		137,428
User base	3.8	68,817		(32,245)		36,572		68,817		(27,369)		41,448
License asset	1.0	25,640		(8,547)		17,093		25,640		—		25,640
Developed technology	5.1	204,405		(36,269)		168,136		87,851		(21,435)		66,416
Other	6.6	51,409		(9,605)		41,804		34,895		(6,648)		28,247
Total long-lived intangible assets		2,850,134		(821,160)		2,028,974		2,302,253		(592,906)		1,709,347
Short-lived intangible assets:
Apps	0.5	44,807		(42,961)		1,846		40,348		(38,724)		1,624
Total intangible assets		$	2,894,941	$	(864,121)	$	2,030,820	$	2,342,601	$	(631,630)	$	1,710,971

As of June 30, 2022 and December 31, 2021, short-lived mobile Apps were included in prepaid expenses and other current assets.

The Company recorded amortization expenses related to acquired intangible assets as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of revenue	$	126,237	$	95,200	$	230,856	$	177,385
Sales and marketing	16,532		6,034		32,924		9,243
Total	$	142,769	$	101,234	$	263,780	$	186,628