GOODWILL AND ACQUIRED INTANGIBLES

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

There have been no changes to the carrying amounts of goodwill since December 31, 2022. The carrying amounts of goodwill for the three months ended March 31, 2023 are as follows (in thousands):


	Cardlytics Platform		Bridg Platform		Consolidated
Gross goodwill	$	210,692	$	538,271	$	748,963
Accumulated impairments	(46,262)		(349,980)		(396,242)
Net goodwill	$	164,430	$	188,291	$	352,721

Goodwill is tested annually for impairment, unless certain triggering events require an interim impairment analysis, including macroeconomic conditions, industry and market considerations, costs factors, overall financial performance and other relevant entity-specific events and changes. These considerations are evaluated holistically to assess whether it is more likely than not that a reporting unit's carrying value exceeds its fair value. Our reporting units consist of the Cardlytics platform in the U.S., the Cardlytics platform in the U.K. and the Bridg platform. There is no goodwill recorded within the Cardlytics platform in the U.K.

We have assessed the triggering events criteria along with related conditions and developments as of March 31, 2023. We have determined that none of the conditions collectively constitute a triggering event. As such, we have determined that it is not more likely than not that the carrying values of our reporting units exceed their respective fair values, and an impairment test was not required as of March 31, 2023.

As of June 30, 2022 we determined that it was necessary to perform an interim impairment test for goodwill, in which we recognized goodwill impairment of $83.1 million related to the Bridg platform.

Subsequently, we performed our annual impairment test as of October 1, 2022 and determined that the carrying value of both the Cardlytics platform in the U.S. and the Bridg platform exceeded their respective fair values, and we recognized goodwill impairment of $313.1 million as of December 31, 2022.

Acquired intangible assets subject to amortization as of March 31, 2023 were as follows:


	Gross Carrying Amount (1)		Accumulated Amortization		Net		Weighted Average Remaining Useful Life
	(in thousands)						(in years)
Trade name	$	2,315	$	(1,836)	$	479	0.6
Developed technology	64,070		(27,174)		36,896		1.0
Merchant relationships	25,915		(13,374)		12,541		1.3


Total other intangible assets	$	92,300	$	(42,384)	$	49,916

(1)We recorded an impairment of intangible assets in the amount of $56.4 million as of December 31, 2022.

Amortization expense of acquired intangibles during the three months ended March 31, 2022 and 2023 was $7.1 million and $3.5 million, respectively.

Acquired intangible assets subject to amortization as of December 31, 2022 were as follows:


	Gross Carrying Amount		Accumulated Amortization		Impairments of Intangible Assets		Net		Weighted Average Remaining Useful Life
	(in thousands)								(in years)
Trade name	$	3,500	$	(1,744)	$	(1,185)	$	571	1.4
Developed technology	91,700		(24,882)		(27,630)		39,188		3.6
Merchant relationships	40,300		(12,301)		(14,385)		13,614		1.7
Partner relationships	2,000		(450)		(1,550)		—		0.0
Card-linked subscriber user base	17,000		(5,355)		(11,645)		—		0.0
Total other intangible assets	$	154,500	$	(44,732)	$	(56,395)	$	53,373

As of March 31, 2023, we expect amortization expense in future periods to be as follows (in thousands):


	Amount
2023 (remaining nine months)	10,278
2024	13,269
2025	11,808
2026	9,673
2027	4,888
Thereafter	—
Total expected future amortization expense	$	49,916