INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets

During the three months ended March 31, 2025, the Company completed the acquisition of Novorender, which was accounted for as a business combination, as described above in Note 5. The Company also acquired another developed technology for $4.9 million, which was accounted for as an asset acquisition with an estimated useful life of four years, and the amortization expense is recorded in cost of revenue on the accompanying condensed consolidated statements of operations and comprehensive loss.

The Company’s finite-lived and indefinite-lived intangible assets are summarized as follows (in thousands):


	March 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted-Average Remaining Useful Life (Years)
Developed technology	$	212,353	$	(103,449)	$	108,904	4.3
Customer relationships	75,950		(46,989)		28,961		5.8
Total finite-lived intangible assets	$	288,303	$	(150,438)	$	137,865	4.6


	December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted-Average Remaining Useful Life (Years)
Developed technology	$	185,947	$	(95,216)	$	90,731	4.0
Customer relationships	71,050		(43,683)		27,367		4.9
Total finite-lived intangible assets	256,997		(138,899)		118,098		4.2
In-process research and development	2,848		—		2,848
Total intangible assets	$	259,845	$	(138,899)	$	120,946

The Company's in-process research and development (“IPR&D”) intangible asset, which was acquired in 2023, was considered indefinite-lived and assessed annually for impairment. During the three months ended March 31, 2025, the Company completed the development of the IPR&D intangible asset and reclassified it as a finite-lived intangible asset, which started to be amortized over its estimated useful life of two years.

The Company estimates that there is no significant residual value related to its finite-lived intangible assets. Amortization expense recorded on the Company’s finite-lived intangible assets is summarized as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Cost of revenue	$	7,602	$	5,885
Sales and marketing	3,305		3,106
Research and development	632		675
Total amortization of acquired intangible assets	$	11,539	$	9,666

Goodwill

The following table presents the changes in carrying amount of goodwill during the three months ended March 31, 2025 (in thousands):


Beginning balance	$	549,651
Additions	23,706
Other adjustments, net(1)	26
Ending balance	$	573,383

(1) Includes the effect of foreign currency translation.

The addition to goodwill was due to the acquisition of Novorender, as disclosed in Note 5 to these condensed consolidated financial statements. There was no impairment of goodwill during the periods presented.