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Equity Method Investment
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Equity Method Investment Equity Method Investment
In May 2022, the Company acquired 44.6% of the equity interests in Syniverse Corporation (“Syniverse”) for $750.0 million in cash. The Company determined that it does not have a controlling financial interest in Syniverse but does exercise significant influence and, therefore, the investment was accounted for under the equity method. The Company estimated that on the investment closing date there was an excess investment basis of $530.7 million related to its proportionate share of the identifiable intangible assets and $41.3 million related to the associated deferred tax liability. The equity method goodwill was estimated at $623.8 million.
The Company engaged a third‑party expert to assist with the valuation analysis. The following table presents the estimated basis differences attributable to the identifiable intangible assets as of the date of investment and their respective useful lives:
TotalEstimated
life
(In thousands)(In years)
Developed technology$62,767 6
Customer relationships439,152 9
Trademarks28,822 Indefinite
Total basis difference attributable to the identifiable intangible assets$530,741 
In the years ended December 31, 2024, 2023 and 2022, the Company recorded $108.5 million, $121.9 million and $35.3 million, respectively, of its proportionate share of the investee's net operating results, the amortization of the basis difference and dilution loss as part of other expenses, net, in the accompanying consolidated statements of operations. The Company also recorded $0.7 million and $15.6 million of its proportionate share of the investee’s other comprehensive income for the years ended December 31, 2024 and 2023, respectively, and $14.9 million of its proportionate share of the investee’s other comprehensive loss for the year ended December 31, 2022, in the accompanying consolidated statements of other comprehensive loss. Results of operations and other comprehensive loss were recorded on a 90-day lag.
As of December 31, 2024 and 2023, the Company held 43.8% and 44.0%, respectively, of the equity interests in Syniverse. The unamortized net excess investment basis was $353.3 million and $410.4 million, respectively. The carrying amount of the investment in the accompanying consolidated balance sheets was $485.8 million and $593.6 million as of December 31, 2024 and 2023, respectively.
In conjunction with this investment, the Company and Syniverse entered into a wholesale agreement, pursuant to which Syniverse would process, route and deliver application-to-person messages originating and/or terminating between the Company’s customers and mobile network operators. The values of the transactions that occurred between the Company and Syniverse were $145.0 million and $143.7 million for the years ended December 31, 2024 and 2023, respectively, and $89.6 million for the period from the investment closing date on May 13, 2022, through December 31, 2022. These transactions were recorded as cost of revenue in the accompanying consolidated statements of operations.
Summarized financial information of Syniverse is presented below on a one-month lag. The investee’s fiscal year end is November 30.
As of November 30,
20242023
(In thousands)
Current assets
$225,975 $195,426 
Noncurrent assets
$2,344,658 $2,368,645 
Current liabilities
$232,522 $200,541 
Noncurrent liabilities
$1,176,332 $1,153,801 
Non controlling interest
$6,027 $6,380 
Year Ended November 30,
20242023
2022(1)
(In thousands)
Revenue$819,164 $739,317 $753,913 
Cost of operations (excluding depreciation and amortization)
$474,081 $430,140 $466,340 
Income (loss) from operations
$113,950 $67,870 $(147,166)
Net loss
$(38,849)$(89,096)$(312,773)
Net loss attributable to Syniverse Corporation
$(40,917)$(90,770)$(314,379)
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(1) The Company invested in the investee in May 2022. It is impracticable to provide audited financial information for a partial fiscal year due to its unavailability.