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Discontinued Operations | 6 Months Ended
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Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations Divestiture On June 30, 2025, the Company completed the sale of its Apps Business, as part of its strategic effort to divest non-core assets and dedicate its resources to advancing its advertising business. In connection with the transaction, the Company received $715.6 million in total consideration, consisting of $430.6 million in cash and 596,869,142 ordinary shares of Tripledot, valued a t $285.0 million. These shares represented approximately 22% of Tripledot’s outstanding ordinary shares and 20% of its fully diluted equity capitalization as of the closing date. The cash consideration of $430.6 million includes $400.0 million as specified in the purchase agreement and $30.6 million in preliminary purchase price adjustments based on estimated closing date net assets, which is subject to finalization in the third quarter of the year ending December 31, 2025. The fair value of the equity consideration was determined based on the combined value of Tripledot and the Apps Business as of the closing date, estimated using a combination of the market approach, which incorporated valuation multiples of comparable public companies, and the income approach based on projected discounted cash flows. The significant assumptions used included estimates of future revenues and operating expenses, long-term growth rates, working capital requirements and discount rates, which are considered unobservable inputs and are classified as Level 3 within the fair value hierarchy. See Note 5 – Equity Method Investments for further details. For tax purposes, the transfer of certain Apps Business subsidiaries was treated as an asset sale and resulted in a write-off of $125.6 million of deferred tax assets from the carrying value of Apps Business net assets, which was included in the provision for income taxes from discontinued operations. As a result of the divestiture, the Company derecognized net assets of $591.2 million and incurred transaction costs of $18.3 million, resulting in a pre-tax gain of $106.2 million, which was recorded in net income from discontinued operations for the three months ended June 30, 2025. In addition, the Company entered into a Transition Services Agreement (“TSA”) with Tripledot. Under the terms of the TSA, the Company agreed to provide limited administrative and transitional services related to the divested Apps Business for a period of up to six months following the closing date. The following table summarizes the results of operations classified as discontinued operations, net of income taxes, in the condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Revenue | $ | 315,783 |  |  | $ | 369,104 |  |  | $ | 640,830 |  |  | $ | 748,849 |
Costs and expenses: |  |  |  |  |  |  |
Cost of revenue | 89,890 |  |  | 160,788 |  |  | 209,442 |  |  | 330,394 |
Sales and marketing | 118,974 |  |  | 135,142 |  |  | 242,547 |  |  | 300,919 |
Research and development | 63,786 |  |  | 64,773 |  |  | 130,298 |  |  | 131,148 |
General and administrative | 1,224 |  |  | 1,837 |  |  | 4,202 |  |  | 4,166 |
Goodwill impairment | — |  |  | — |  |  | 188,943 |  |  | — |
Total costs and expenses | 273,874 |  |  | 362,540 |  |  | 775,432 |  |  | 766,627 |
Income (loss) from operations | 41,909 |  |  | 6,564 |  |  | (134,602) |  |  | (17,778) |
Other income: |  |  |  |  |  |  |
Gain on divestiture, net of transaction costs | 106,229 |  |  | — |  |  | 106,229 |  |  | — |
Other income, net | 1,220 |  |  | 827 |  |  | 1,519 |  |  | 1,504 |
Total other income, net | 107,449 |  |  | 827 |  |  | 107,748 |  |  | 1,504 |
Income (loss) from discontinued operations before income taxes | 149,358 |  |  | 7,391 |  |  | (26,854) |  |  | (16,274) |
Provision for (benefit from) income taxes | 101,683 |  |  | (1,596) |  |  | 72,590 |  |  | (2,087) |
Income (loss) from discontinued operations, net of income taxes | $ | 47,675 |  |  | $ | 8,987 |  |  | $ | (99,444) |  |  | $ | (14,187) |
The following table represents assets and liabilities that are classified as discontinued operations in the condensed consolidated balance sheets for the period presented (in thousands):
Assets: | December 31, 2024
Cash and cash equivalents | $ | 44,381 |
Accounts receivable, net | 130,911 |
Prepaid expenses and other current assets | 16,063 |
Total current assets of discontinued operations | 191,355 |
Goodwill | 345,741 |
Intangible assets, net | 423,826 |
Other non-current assets | 167,682 |
Total assets of discontinued operations | $ | 1,128,604 |
Liabilities: |
Accounts payable | $ | 59,125 |
Accrued and other current liabilities | 45,202 |
Deferred revenue | 32,786 |
Total current liabilities of discontinued operations | 137,113 |
Other non-current liabilities | 1,414 |
Total liabilities of discontinued operations | $ | 138,527 |
The following table summarizes significant non-cash operating items and capital expenditures related to discontinued operations, as reflected in the condensed consolidated statements of cash flows for the periods presented (in thousands):
| Six Months Ended June 30,
| 2025 |  | 2024
Amortization, depreciation and write-offs | $ | 64,054 |  |  | $ | 159,049 |
Stock-based compensation | $ | 3,663 |  |  | $ | 11,474 |
Goodwill impairment | $ | 188,943 |  |  | $ | — |
Acquisition of intangible assets | $ | 22,429 |  |  | $ | 15,089 |
Goodwill Impairment The Company evaluates goodwill for impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. On February 12, 2025, the Company entered into a non-binding term sheet to sell its Apps Business to Tripledot. As of March 31, 2025, the Apps Business was not classified as held for sale, as the criteria required for such classification had not yet been met. However, the Company identified the non-binding term sheet combined with negotiations throughout the first quarter of 2025 to sell the Apps Business as an indicator of impairment for the Apps reporting unit and performed an interim quantitative goodwill impairment test as of March 31, 2025. Based on this assessment, the Company determined that the carrying amount of the Apps reporting unit exceeded its estimated fair value and recorded a non-cash goodwill impairment charge of $188.9 million. This charge was included in loss from discontinued operations, net of income taxes, for the six months ended June 30, 2025. At the time the interim impairment test was performed, the Company had not yet determined the fair value of the total consideration, which was subject to the valuation of the equity consideration at the closing of the transaction. As a result, the Company estimated the fair value of the Apps reporting unit using the discounted cash flow method of the income approach. Key valuation inputs included projected future cash flows, risk-adjusted discount rates and long-term growth rates, which are based on management’s estimates and assumptions believed to be reasonable and reflective of known market conditions as of the interim impairment test date. The resulting fair value measurement is classified as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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