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Goodwill and Intangible Assets, Net | 9 Months Ended
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Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Note 5 - Goodwill and Intangible Assets, Net Goodwill The changes in the carrying amount of goodwill for the period presented are as follows (in thousands):
|  | Gross Carrying Amount |  |  | Accumulated Impairment Losses |  |  | Net Carrying Amount |
Balance as of December 31, 2023 |  | $ | 1,585,750 |  |  | $ | — |  |  | $ | 1,585,750 |
Impairment charge |  |  | — |  |  |  | (197,214 | ) |  |  | (197,214 | )
Foreign currency translation adjustment |  |  | 466 |  |  |  | — |  |  |  | 466 |
Balance as of September 30, 2024 |  | $ | 1,586,216 |  |  | $ | (197,214 | ) |  | $ | 1,389,002 |
During the three months ended September 30, 2024, the Company identified potential impairment triggering events indicating that the fair value of its reporting unit was more likely than not less than its carrying value. These triggering events included the Company’s revised 2024 outlook and a decrease in the Company’s stock price and market capitalization that was sustained during the third quarter of 2024. In accordance with ASC 350, Intangibles – Goodwill and Other, the Company performed a quantitative goodwill impairment test. The fair value of the reporting unit was estimated using a combination of two approaches, an income approach, employing a discounted cash flow model, and a market approach, employing a guideline public company approach. These valuation approaches require the Company to make various assumptions regarding the timing and amount of expected cash flows, including, but not limited to, the revenue growth rate, the discount rate and valuation multiples. As a result of this impairment test, the Company recognized a goodwill impairment charge of $197.2 million during the three and nine months ended September 30, 2024. The fair value of the Company’s reporting unit was impacted by its revised forecast, as well as adverse macroeconomic factors, including but not limited to, slower economic growth, a higher cost of borrowing, inflationary pressures, and fluctuations in foreign currency exchange rates. There were no impairment charges recorded for the three and nine months ended September 30, 2023. Intangible Assets, Net A summary of the Company’s intangible assets, net is as follows (in thousands):
|  | September 30, 2024 |  |  |  |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Accumulated Impairment Losses |  |  | Net Carrying Amount |  |  | Weighted- Average Remaining Useful Life (Years) |
Brands - indefinite-lived |  | $ | 1,511,269 |  |  | $ | — |  |  | $ | (811,269 | ) |  | $ | 700,000 |  |  | Indefinite |
Brands - definite-lived |  |  | 43,736 |  |  |  | (7,779 | ) |  |  | (23,854 | ) |  |  | 12,103 |  |  |  | 5.0 |
Developed technology |  |  | 266,714 |  |  |  | (232,440 | ) |  |  | (1,043 | ) |  |  | 33,231 |  |  |  | 2.1 |
User base |  |  | 113,770 |  |  |  | (113,388 | ) |  |  | — |  |  |  | 382 |  |  |  | 0.3 |
White label contracts |  |  | 33,384 |  |  |  | (6,953 | ) |  |  | (26,431 | ) |  |  | — |  |  |  | — |
Other |  |  | 32,867 |  |  |  | (14,177 | ) |  |  | — |  |  |  | 18,690 |  |  |  | 3.8 |
Total Intangible assets, net |  | $ | 2,001,740 |  |  | $ | (374,737 | ) |  | $ | (862,597 | ) |  | $ | 764,406 |  |  |  |
|  | December 31, 2023 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Accumulated Impairment Losses |  |  | Net Carrying Amount |  |  | Weighted- Average Remaining Useful Life (Years) |
Brands - indefinite-lived |  | $ | 1,511,269 |  |  | $ | — |  |  | $ | (141,000 | ) |  | $ | 1,370,269 |  |  | Indefinite |
Brands - definite-lived |  |  | 43,309 |  |  |  | (5,301 | ) |  |  | — |  |  |  | 38,008 |  |  |  | 12.3 |
Developed technology |  |  | 249,470 |  |  |  | (193,777 | ) |  |  | — |  |  |  | 55,693 |  |  |  | 1.1 |
User base |  |  | 113,760 |  |  |  | (113,154 | ) |  |  | — |  |  |  | 606 |  |  |  | 0.5 |
White label contracts |  |  | 33,384 |  |  |  | (6,953 | ) |  |  | (26,431 | ) |  |  | — |  |  |  | — |
Other |  |  | 28,549 |  |  |  | (8,835 | ) |  |  | — |  |  |  | 19,714 |  |  |  | 3.9 |
Total Intangible assets, net |  | $ | 1,979,741 |  |  | $ | (328,020 | ) |  | $ | (167,431 | ) |  | $ | 1,484,290 |  |  |  |
During the three months ended September 30, 2024, the decline in the Company's stock price and market capitalization indicated that the fair value of the Company's indefinite-lived assets was more likely than not less than its carrying value. The Company evaluated the fair value of its indefinite-lived assets by using the relief from royalty methodology based on management’s assumptions. This valuation approach requires the Company to make various assumptions regarding the timing and amount of expected cash flows, including, but not limited to, the revenue growth rate, royalty rate, and discount rate. As a result, the Company recognized an impairment charge of $670.3 million associated with the indefinite-lived assets during the three and nine months ended September 30, 2024, representing the difference between the carrying value and the fair value of the Company's indefinite-lived intangible assets. Additionally, the Company assessed the recoverability of our long-lived assets and definite-lived intangible assets at the asset group level and determined that the carrying value of the Fruitz asset group was not recoverable. The Company then evaluated the fair value of the Fruitz asset group using a discounted cash flow method, which required the Company to make various assumptions, including, but not limited to, the revenue growth rate and discount rate. As a result of this impairment test, the Company recognized $24.7 million of impairment charges during the three and nine months ended September 30, 2024. The impairment charges were allocated to the Fruitz asset group on a pro-rata basis based on the carrying amounts of the long-lived assets and definite-lived intangible assets. Additionally, the Company revised the remaining useful life of certain definite-lived intangible assets of Fruitz. There were no impairment charges recorded for the three and nine months ended September 30, 2023. On July 1, 2024, the Company completed the acquisition of Geneva Technologies, Inc. (“Geneva”) for total cash consideration of $17.5 million (the “Purchase Consideration”), net of cash acquired. The principal assets of Geneva, which is a pre-revenue company, are a social networking and communications platform for building friendship and community and related intellectual property rights. As substantially all of the fair value of the acquired assets was concentrated in Geneva’s developed technology, the transaction did not meet the definition of a business combination. As such, the Company accounted for this transaction as an asset acquisition in accordance with ASC 805, Business Combinations. The Purchase Consideration was allocated to the acquired assets and liabilities based on their relative fair values, with $17.2 million allocated to developed technology, which will be amortized on a straight-line basis over four years, and $0.3 million allocated to other assets and liabilities. Amortization expense related to intangible assets, net for the three months ended September 30, 2024 and 2023 was $16.4 million and $14.9 million, respectively, and for the nine months ended September 30, 2024 and 2023 was $47.1 million and $43.8 million, respectively. As of September 30, 2024, amortization of intangible assets with definite lives is estimated to be as follows (in thousands):
Remainder of 2024 |  | $ | 16,281 |
2025 |  |  | 18,260 |
2026 |  |  | 10,655 |
2027 |  |  | 8,346 |
2028 and thereafter |  |  | 9,870 |
Total |  | $ | 63,412 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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