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Acquisitions (Tables)
 9 Months Ended
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):
Pond51
Splash News1
Total
Cash and cash equivalents$11,675 $180 $11,855 
Accounts receivable1,273 500 $1,773 
Other assets1,102 525 1,627 
Right of use asset1,674 — 1,674 
Intangible assets:
Customer relationships34,900 — 34,900 
Trade name5,300 — 5,300 
Developed technology27,600 1,263 28,863 
Intangible assets67,800 1,263 69,063 
Goodwill158,957 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 $2.3 million increase to the value of the developed technology, and (iii) other immaterial adjustments.
The aggregate purchase price for these acquisitions has been allocated to the assets acquired and liabilities assumed as follows (in thousands):
Assets acquired and liabilities assumed (in thousands):PicMonkeyTurboSquidTotal
Cash and cash equivalents$— $5,165 $5,165 
Other assets502 1,553 2,055 
Property and equipment— 472 472 
Right of use asset1,420 — 1,420 
Intangible assets:
Customer relationships28,800 9,000 37,800 
Trade name3,000 2,200 5,200 
Developed technology12,900 7,800 20,700 
Contributor content— 2,500 2,500 
Intangible assets44,700 21,500 66,200 
Goodwill71,607 59,491 131,098 
Deferred tax asset2,456 — 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,
2022202120222021
Revenue
As Reported$204,096 $194,439 $610,100 $567,632 
Pro Forma204,096 213,350 630,383 630,666 
Income before income taxes
As Reported$27,139 $20,420 $82,528 $90,624 
Pro Forma27,139 23,253 85,956 92,550