GOODWILL AND ACQUIRED INTANGIBLES

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND ACQUIRED INTANGIBLES

GOODWILL AND ACQUIRED INTANGIBLES

Goodwill

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.

There have been no changes to the carrying amounts of goodwill since December 31, 2023. The carrying amounts of goodwill as of March 31, 2024 are as follows (in thousands):

	Cardlytics Platform		Bridg Platform		Consolidated
Goodwill	$	159,429	$	117,773	$	277,202

We have assessed the triggering events criteria along with related conditions and developments as of March 31, 2024. 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, 2024. However, future changes in assumptions or deterioration in market conditions could result in an impairment.

Acquired Intangibles

We evaluate the recoverability of our finite-lived intangible assets and other long-lived assets whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. Prior to the quantitative goodwill impairment test, we evaluated the recoverability of these long-lived assets for our asset groups. The evaluation is based on the cash flows generated by the underlying asset groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset group, we would recognize an impairment charge to the extent the carrying amount of the asset group exceeded its estimated fair value.

2024 Acquired Intangibles

Acquired intangible assets subject to amortization as of March 31, 2024 were as follows:

	Gross Carrying Amount		Accumulated Amortization		Net		Weighted Average Remaining Useful Life
	(in thousands)						(in years)
Developed technology	64,070		(36,521)		27,549		3.1
Merchant relationships	25,915		(21,320)		4,595		2.1
Total other intangible assets	$	89,985	$	(57,841)	$	32,144

2023 Acquired Intangibles

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

	Gross Carrying Amount		Accumulated Amortization		Divestiture of Entertainment		Net		Weighted Average Remaining Useful Life
	(in thousands)								(in years)
Trade name	$	2,315	$	(1,802)	$	(513)	$	—	0.0
Developed technology	64,070		(33,838)		(449)		29,783		3.4
Merchant relationships	25,915		(16,784)		(3,985)		5,146		2.4
Total other intangible assets	$	92,300	$	(52,424)	$	(4,947)	$	34,929

Amortization expense of acquired intangibles during the three months ended March 31, 2024 and 2023 was $2.8 million and $3.5 million, respectively.

As of March 31, 2024, we expect amortization expense in future periods to be as follows (in thousands):

	Amount
2024 (remaining nine months)	8,338
2025	11,117
2026	9,674
2027	3,015
Thereafter	—
Total expected future amortization expense	$	32,144