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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table presents the changes in the carrying amount of our goodwill balances (in thousands):
| December 31,
| 2024 |  | 2023
Beginning balance | $ | 631,995 |  |  | $ | 615,093 |
Impairment expense | (635,391) |  |  | — |
Foreign currency translation adjustment | 3,396 |  |  | 16,902 |
Ending balance | $ | — |  |  | $ | 631,995 |
In September 2024 and June 2024, in consideration of the sustained decline in our stock price, industry developments, and our financial performance, we evaluated our current operating performance. Accordingly, we determined that there were indicators of impairment and a quantitative assessment was necessary. In the quantitative assessment, we estimated the fair value of our reporting unit utilizing an income approach, based on the present value of future discounted cash flows, which is classified as Level 3 in the fair value hierarchy. Significant estimates used to determine fair value include the weighted average cost of capital, growth rates, and amount and timing of expected future cash flows. As a result of the quantitative assessment, we determined that goodwill was impaired as the fair value of our reporting unit was less than the carrying value. As such, during the year ended December 31, 2024, we recorded impairment expense of $635.4 million equal to the excess of the carrying value of our reporting unit over the estimated fair value, limited to the remaining balance of goodwill, which was classified as impairment expense on our consolidated statements of operations. We did not record goodwill impairment expense during the years ended December 31, 2023, and 2022. Intangible Assets The following table presents our intangible assets balances (in thousands, except weighted-average amortization period):
| December 31, 2024
| Weighted-Average Amortization Period (in months) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Accumulated Impairment |  | Foreign Currency Translation Adjustment |  | Net Carrying Amount
Developed technologies | 80 |  | $ | 106,703 |  |  | $ | (63,029) |  |  | $ | (29,369) |  |  | $ | (3,958) |  |  | $ | 10,347 |
Content libraries | 60 |  | 12,230 |  |  | (12,230) |  |  | — |  |  | — |  |  | — |
Customer lists | 35 |  | 34,190 |  |  | (32,892) |  |  | — |  |  | (1,298) |  |  | — |
Trade and domain names | 52 |  | 16,213 |  |  | (13,343) |  |  | (2,493) |  |  | (377) |  |  | — |
Total intangible assets | 67 |  | $ | 169,336 |  |  | $ | (121,494) |  |  | $ | (31,862) |  |  | $ | (5,633) |  |  | $ | 10,347 |
| December 31, 2023
| Weighted-Average Amortization Period (in months) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Accumulated Impairment |  | Foreign Currency Translation Adjustment |  | Net Carrying Amount
Developed technologies | 80 |  | $ | 106,703 |  |  | $ | (55,651) |  |  | $ | — |  |  | $ | (3,757) |  |  | $ | 47,295 |
Content libraries | 60 |  | 12,230 |  |  | (11,189) |  |  | — |  |  | — |  |  | 1,041 |
Customer lists | 35 |  | 34,190 |  |  | (31,836) |  |  | — |  |  | (1,298) |  |  | 1,056 |
Trade and domain names | 52 |  | 16,213 |  |  | (12,817) |  |  | — |  |  | (358) |  |  | 3,038 |
Total intangible assets | 67 |  | $ | 169,336 |  |  | $ | (111,493) |  |  | $ | — |  |  | $ | (5,413) |  |  | $ | 52,430 |
During the years ended December 31, 2024, 2023 and 2022, intangible assets amortization expense was $10.0 million, $24.4 million and $25.9 million, respectively. In conjunction with our goodwill impairment analysis in June 2024, we determined that there were indicators of impairment for our Busuu assets and a recoverability test was necessary. In the recoverability test, we determined that the expected future undiscounted cash flows for the asset group were not sufficient to recover the carrying value. We then proceeded in estimating the fair value of the asset group utilizing the income approach, based on a present value of future discounted cash flows, which is classified as Level 3 in the fair value hierarchy. Significant estimates used to determine fair value include the growth rates and amount and timing of expected future cash flows. As a result of the impairment test, we determined the asset group was impaired and recorded a $31.9 million impairment expense related to the intangible assets during the year ended December 31, 2024, which was classified as impairment expense on our consolidated statements of operations. In connection with the design and build of our new generative AI experience in August 2023, we streamlined our product experiences. During the year ended December 31, 2023, we recognized an impairment charge on our indefinite-lived intangible asset of $3.6 million. The following table presents the estimated future intangible assets amortization expense (in thousands):
| December 31, 2024
2025 | $ | 4,240 |
2026 | 3,897 |
2027 | 1,776 |
2028 | 407 |
2029 | 27 |
Total | $ | 10,347 |

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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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