Goodwill and Acquired Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

8. Goodwill and Acquired Intangible Assets

The carrying amount of goodwill was $423.4 million and $425.7 million as of September 30, 2023 and December 31, 2022, respectively. Changes in the carrying amount of goodwill by reportable segment through September 30, 2023 were as follows (in thousands):

	Enterprise Solutions			SMB Solutions		Total
Balance as of December 31, 2022	$	218,658		$	207,019	$	425,677
Goodwill acquired		—			12,804		12,804
Goodwill divested		(15,075	)		—		(15,075	)
Balance as of September 30, 2023	$	203,583		$	219,823	$	423,406

Acquired intangible assets of the Company consisted of the following (in thousands):

			September 30, 2023
	Weighted Average Useful Life		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
	(in years)
Customer relationships		10.0	$	81,643	$	(35,393	)	$	46,250
Developed technology		6.9		41,044		(26,641	)		14,403
Trade names		5.0		5,551		(5,050	)		501
Other		1.0		370		(62	)		308
Total			$	128,608	$	(67,146	)	$	61,462

			December 31, 2022
	Weighted Average Useful Life		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
	(in years)
Customer relationships		10.0	$	82,841	$	(31,344	)	$	51,497
Developed technology		7.0		42,913		(23,463	)		19,450
Trade names		5.0		5,824		(4,452	)		1,372
Total			$	131,578	$	(59,259	)	$	72,319

The Company recorded amortization expense of $4.0 million for the three month period ended September 30, 2023 and $3.9 million for the three month period ended September 30, 2022. The Company recorded amortization expense of $11.8 million for the nine month period ended September 30, 2023 and $11.7 million for the nine month period ended September 30, 2022. Amortization of developed technology is recorded within cost of revenue, while amortization of customer relationships, trade names and other is recorded within amortization of intangible assets within operating expenses on the Company’s condensed consolidated statements of operations and comprehensive income. Future estimated amortization expense of the Company’s intangible assets as of September 30, 2023 is expected to be as follows (in thousands):

Remainder of 2023	$	3,974
2024		14,656
2025		13,939
2026		9,177
2027		8,164
Thereafter		11,552
Total	$	61,462