Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2023

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 the changes in the carrying amount of goodwill by reporting unit (in thousands):


	Software Platform		Apps		Total
December 31, 2021					$	966,427
Additions					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
Additions	—		—		—
Foreign currency translation	19,095		—		19,095
December 31, 2023	$	1,497,109	$	345,741	$	1,842,850

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


	Weighted- Average Remaining Useful Life (Years)	As of December 31, 2023						As of December 31, 2022
		Gross Carrying Value		Accumulated Amortization		Net Book Value		Gross Carrying Value		Accumulated Amortization		Net Book Value
Apps	3.8	$	1,818,907	$	(1,152,611)	$	666,296	$	1,790,820	$	(836,375)	$	954,445
Customer relationships	8.2	519,175		(111,374)		407,801		515,084		(58,881)		456,203
User base	2.3	68,817		(46,874)		21,943		68,817		(37,122)		31,695
License asset	2.0	59,207		(31,003)		28,204		59,207		(16,901)		42,306
Developed technology	3.6	207,900		(88,716)		119,184		206,060		(53,879)		152,181
Other	3.8	71,196		(21,989)		49,207		53,933		(13,103)		40,830
Total intangible assets		$	2,745,202	$	(1,452,567)	$	1,292,635	$	2,693,921	$	(1,016,261)	$	1,677,660

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


	Year Ended December 31,
	2023		2022		2021
Cost of revenue	$	382,956	$	448,462	$	373,726
Sales and marketing	67,190		66,173		22,661
Total	$	450,146	$	514,635	$	396,387

As of December 31, 2023, the expected future amortization expense related to acquired intangible assets is estimated as follows (in thousands):


2024	$	295,810
2025	295,810
2026	274,394
2027	216,621
2028	49,450
Thereafter	160,550
Total	$	1,292,635