Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

During the second quarter of 2022, the Company revised the presentation of its 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.

The following table presents goodwill activity (in thousands):


	Software Platform		Apps		Total
December 31, 2020					$	249,773
Goodwill acquired					762,553
Foreign currency translation					(45,899)
December 31, 2021					$	966,427
Goodwill acquired					891,387
Foreign currency translation					(38,710)
Segment allocation in the second quarter of 2022	1,473,474		345,630		1,819,104
Additions	5,281		—		5,281
Foreign currency translation	(519)		(111)		(630)
December 31, 2022	$	1,478,014	$	345,741	$	1,823,755

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


	Weighted- Average Remaining Useful Life (Years)	As of December 31, 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	4.2	$	1,790,820	$	(836,375)	$	954,445	$	1,939,180	$	(529,012)	$	1,410,168
Customer relationships	9.2	515,084		(58,881)		456,203		145,870		(8,442)		137,428
User base	4.3	68,817		(37,122)		31,695		68,817		(27,369)		41,448
License asset	3.0	59,207		(16,901)		42,306		25,640		—		25,640
Developed technology	4.6	206,060		(53,879)		152,181		87,851		(21,435)		66,416
Other	5.8	53,933		(13,103)		40,830		34,895		(6,648)		28,247
Total long-lived intangible assets		2,693,921		(1,016,261)		1,677,660		2,302,253		(592,906)		1,709,347
Short-lived intangible assets:
Apps	0.2	45,791		(44,838)		953		40,348		(38,724)		1,624
Total intangible assets		$	2,739,712	$	(1,061,099)	$	1,678,613	$	2,342,601	$	(631,630)	$	1,710,971

As of December 31, 2022 and 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):


	Year Ended December 31,
	2022		2021		2020
Cost of revenue	$	448,462	$	373,726	$	228,339
Sales and marketing	66,173		22,661		11,587
Total	$	514,635	$	396,387	$	239,926

As of December 31, 2022, the expected future amortization expense related to acquired intangible assets is estimated as follows (in thousands):


2023	$	339,773
2024	338,820
2025	338,820
2026	324,718
2027	122,490
Thereafter	213,992
Total	$	1,678,613