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v3.22.2.2

Acquisitions (Tables) | 9 Months Ended
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Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract] |
Schedule of Aggregate Purchase Price Allocation to Assets Acquired and Liabilities Assumed | The aggregate purchase price for these acquisitions has been allocated to the assets acquired and liabilities assumed as follows (in thousands):
Assets acquired and liabilities assumed (in thousands): | Pond5 1 | Splash News 1 | Total
Cash and cash equivalents | $ | 11,675 |  | $ | 180 |  | $ | 11,855 |
Accounts receivable | 1,273 |  | 500 |  | $ | 1,773 |
Other assets | 1,102 |  | 525 |  | 1,627 |
Right of use asset | 1,674 |  | — |  | 1,674 |
Intangible assets: |  |  |
Customer relationships | 34,900 |  | — |  | 34,900 |
Trade name | 5,300 |  | — |  | 5,300 |
Developed technology | 27,600 |  | 1,263 |  | 28,863 |
Intangible assets | 67,800 |  | 1,263 |  | 69,063 |
Goodwill | 158,957 |  | 5,565 |  | 164,522 |
Total assets acquired | $ | 242,481 |  | $ | 8,033 |  | $ | 250,514 |
|  |  | — |
Accounts payable, accrued expenses and other liabilities | (9,304) |  | (1,528) |  | (10,832) |
Contributor royalties payable | (3,039) |  |  | (3,039) |
Deferred revenue | (3,705) |  | — |  | (3,705) |
Deferred tax liability | (6,381) |  | (189) |  | (6,570) |
Lease liability | (2,038) |  | — |  | (2,038) |
Total liabilities assumed | (24,467) |  | (1,717) |  | (26,184) |
Net assets acquired | $ | 218,014 |  | $ | 6,316 |  | $ | 224,330 |
____________________________________________________ 1 The allocation of the purchase price is preliminary and will be finalized within the allowable measurement period once independent valuations of the fair value of the assets acquired and liabilities assumed are completed. During the three months ended September 30, 2022, the Company updated its preliminary allocation of the Pond5 purchase price to the assets acquired and liabilities assumed. This resulted in a (i) $4.0 million increase to goodwill, (ii) a $4.1 million decrease to intangible assets, including a $7.0 million decrease to the value of customer relationships, partially offset by a $2.3 million increase to the value of the developed technology, and (iii) other immaterial adjustments. The aggregate purchase price for these acquisitions has been allocated to the assets acquired and liabilities assumed as follows (in thousands):
Assets acquired and liabilities assumed (in thousands): | PicMonkey | TurboSquid | Total
Cash and cash equivalents | $ | — |  | $ | 5,165 |  | $ | 5,165 |
Other assets | 502 |  | 1,553 |  | 2,055 |
Property and equipment | — |  | 472 |  | 472 |
Right of use asset | 1,420 |  | — |  | 1,420 |
Intangible assets: |  |  |
Customer relationships | 28,800 |  | 9,000 |  | 37,800 |
Trade name | 3,000 |  | 2,200 |  | 5,200 |
Developed technology | 12,900 |  | 7,800 |  | 20,700 |
Contributor content | — |  | 2,500 |  | 2,500 |
Intangible assets | 44,700 |  | 21,500 |  | 66,200 |
Goodwill | 71,607 |  | 59,491 |  | 131,098 |
Deferred tax asset | 2,456 |  | — |  | 2,456 |
Total assets acquired | $ | 120,685 |  | $ | 88,181 |  | $ | 208,866 |
Accounts payable, accrued expenses and other liabilities | (780) |  | (4,685) |  | (5,465) |
Contributor royalties payable | — |  | (2,243) |  | (2,243) |
Deferred revenue | (8,557) |  | — |  | (8,557) |
Deferred tax liability | (533) |  | (3,923) |  | (4,456) |
Lease liability | (1,420) |  | — |  | (1,420) |
Total liabilities assumed | (11,290) |  | (10,851) |  | (22,141) |
Net assets acquired | $ | 109,395 |  | $ | 77,330 |  | $ | 186,725 |
Business Acquisition, Pro Forma Information | These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the previous annual period.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Revenue |  |  |  |  |  |  |
As Reported | $ | 204,096 |  |  | $ | 194,439 |  |  | $ | 610,100 |  |  | $ | 567,632 |
Pro Forma | 204,096 |  |  | 213,350 |  |  | 630,383 |  |  | 630,666 |
Income before income taxes |  |  |  |  |  |  |
As Reported | $ | 27,139 |  |  | $ | 20,420 |  |  | $ | 82,528 |  |  | $ | 90,624 |
Pro Forma | 27,139 |  |  | 23,253 |  |  | 85,956 |  |  | 92,550 |

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- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(3) -URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4845-128472 + Details
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