Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

As described in Note 4, during the second quarter of 2022, the Company revised the presentation of segment information to reflect changes in the way the Company manages and evaluates the business. As a result, beginning in the second quarter of 2022, the Company reports operating results based on two reportable segments—Software Platform and Apps. This change also resulted in a change in reporting units to coincide with the new operating segments. Given the change in reporting units, the Company performed a relative fair value calculation to allocate historical goodwill of $1.8 billion between the two new reporting units, with $1.5 billion and $0.3 billion of goodwill allocated to Software Platform and Apps, respectively. The Company also performed a qualitative impairment test immediately before and after the change in reporting units and determined that it is not more likely than not that the fair value of the reporting units is less than their carrying amounts, including goodwill. Accordingly, the Company concluded that the goodwill relating to those reporting units was not impaired and further quantitative impairment test was not necessary.

The following table presents the changes in the carrying amount of goodwill (in thousands):



December 31, 2021	$	966,427
Goodwill acquired	894,463
Foreign currency translation	(97,720)
September 30, 2022	$	1,763,170

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


	Weighted- Average Remaining Useful Life (Years)	As of September 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	4.6	$	1,965,752	$	(779,027)	$	1,186,725	$	1,939,180	$	(529,012)	$	1,410,168
Customer relationships	9.4	503,195		(44,557)		458,638		145,870		(8,442)		137,428
User base	3.5	68,817		(34,684)		34,133		68,817		(27,369)		41,448
License asset	0.8	25,640		(12,820)		12,820		25,640		—		25,640
Developed technology	4.9	200,751		(44,098)		156,653		87,851		(21,435)		66,416
Other	6.3	51,137		(10,943)		40,194		34,895		(6,648)		28,247
Total long-lived intangible assets		2,815,292		(926,129)		1,889,163		2,302,253		(592,906)		1,709,347
Short-lived intangible assets:
Apps	0.3	46,189		(44,753)		1,436		40,348		(38,724)		1,624
Total intangible assets		$	2,861,481	$	(970,882)	$	1,890,599	$	2,342,601	$	(631,630)	$	1,710,971

As of September 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cost of revenue	$	111,259	$	96,059	$	342,115	$	273,444
Sales and marketing	16,619		6,765		49,543		16,008
Total	$	127,878	$	102,824	$	391,658	$	289,452