Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company’s goodwill balance is attributable to its Content reporting unit and is tested for impairment annually on October 1 or upon a triggering event. No triggering events were identified during the nine months ended September 30, 2023.

The following table summarizes the changes in the Company’s goodwill balance during the nine months ended September 30, 2023 (in thousands):


	Goodwill
Balance as of December 31, 2022	$	381,920

Foreign currency translation adjustment	246

Balance as of September 30, 2023	$	382,166

Intangible Assets

Intangible assets consisted of the following as of September 30, 2023 and December 31, 2022 (in thousands):


	As of September 30, 2023							As of December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizing intangible assets:
Customer relationships	$	89,067	$	(24,686)	$	64,381	12	$	88,996	$	(19,168)	$	69,828
Trade name	37,644		(8,478)		29,166		12	16,588		(7,209)		9,379
Developed technology	116,582		(54,769)		61,813		4	94,872		(35,288)		59,584
Contributor content	64,089		(25,762)		38,327		8	54,284		(20,098)		34,186

Patents	259		(161)		98		18	259		(149)		110

Total	$	307,641	$	(113,856)	$	193,785		$	254,999	$	(81,912)	$	173,087

Amortization expense was $11.7 million and $9.5 million for the three months ended September 30, 2023 and 2022, respectively, and $31.7 million and $24.8 million for the nine months ended September 30, 2023 and 2022, respectively. Cost of revenue included amortization expense of $10.8 million and $8.9 million for the three months ended September 30, 2023 and 2022, respectively, and $29.4 million and $23.1 million for the nine months ended September 30, 2023 and 2022, respectively. General and administrative expense included amortization expense of $1.0 million and $0.6 million for the three months ended September 30, 2023 and 2022, respectively, and $2.3 million and $1.7 million for the nine months ended September 30, 2023 and 2022, respectively.

The Company determined that there was no indication of impairment of the intangible assets for any period presented. Estimated amortization expense is: $11.6 million for the remaining three months of 2023, $39.9 million in 2024, $29.4 million in 2025, $27.2 million in 2026, $18.3 million in 2027, $13.1 million in 2028 and $54.3 million thereafter.