Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

9. Goodwill and Intangible Assets

Goodwill

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


	Year ended December 31, 2023		Year ended December 31, 2022
Beginning Balance	$	92,728	$	122,805
Foreign currency translation		2,323		(6,808	)
Additions from acquisitions		818		—
Impairment		—		(23,269	)
Ending Balance	$	95,869	$	92,728

Impairment of Goodwill

There was no goodwill impairment in the year ended December 31, 2023.

During the year ended December 31, 2022, the Company identified indicators of impairment related to goodwill due to the significant decline in the Company’s stock price. The Company’s stock price had rapidly declined during the fourth quarter, which was not consistent or was significantly worse than the performance of its peers and the market as a whole. Management concluded that, given the sustained decrease in its stock price, it was more likely than not that the Company’s fair value was less than its carrying amount on December 31, 2022. Accordingly, the Company performed the quantitative impairment test by estimating the Company’s fair value using a market-based approach, using Level 3 inputs such as comparable companies’ market multiples and next fiscal year revenue projections. Based on the comparison of the Company’s weighted estimated fair value to its carrying amount, a $23.3 million goodwill impairment charge was recorded during the year ended December 31, 2022.

Intangibles Assets, net

The detail of intangible assets is as follows (in thousands):


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-average remaining life (Years)
Developed technology	$	12,235	$	(11,452	)	$	783		0.3
Customer relationships		39,921		(32,896	)		7,025		0.9
Trade names		323		(323	)		—		—
Capitalized software costs - work in progress ("WIP")		5,550		—			5,550	N/A
Total	$	58,029	$	(44,671	)	$	13,358		0.8


	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-average remaining life (Years)
Developed technology	$	11,407	$	(8,365	)	$	3,042		1.3
Customer relationships		31,124		(24,238	)		6,886		1.3
Trade names		314		(314	)		—		—
Capitalized software costs - WIP		1,100		—			1,100	N/A

Amortization expense was $11.6 million and $7.8 million for the years ended December 31, 2023 and 2022, respectively.

Expected future amortization expense for intangible assets as of December 31, 2023 is as follows (in thousands):


Year ended December 31,
2024		7,568
2025		1,905
2026		1,110
2027		1,110
Thereafter		1,665
Total	$	13,358