Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

6. Intangible Assets and Goodwill

Capitalized internal-use software

As of March 31, 2019 and December 31, 2018, capitalized internal-use software consisted of the following:

(in thousands)	March 31, 2019			December 31, 2018
Gross capitalized internal-use software	$	113,298		$	109,133
Less: Accumulated amortization		(79,588	)		(75,853	)
Capitalized internal use software, net	$	33,710		$	33,280

Amortization expense related to capitalized internal-use software was $3.7 million and $5.9 million during the three months ended March 31, 2019 and 2018, respectively, and is included in cost of revenue in the condensed consolidated statements of operations.

Acquisition intangible assets, net

As of March 31, 2019 and December 31, 2018, intangible assets, net consisted of the following:

	March 31, 2019							December 31, 2018
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	47,696	$	(42,839	)	$	4,857	$	47,696	$	(42,410	)	$	5,286
Trade name		6,072		(5,904	)		168		6,072		(5,796	)		276
Technology		22,007		(18,733	)		3,274		22,007		(18,245	)		3,762
Acquisition intangible assets, net	$	75,775	$	(67,476	)	$	8,299	$	75,775	$	(66,451	)	$	9,324

Amortization expense was $1.0 million and $1.1 million during the three months ended March 31, 2019 and 2018, respectively.

Future amortization expense

As of March 31, 2019, future amortization expense by year is expected to be as follows (in thousands):

(in thousands)	Capitalized internal-use software, net		Acquisition intangible assets, net
Remainder of 2019	$	9,241	$	2,814
2020		6,189		2,952
2021		1,353		1,705
2022		—		828
Total amortization expense	$	16,783	$	8,299

Future capitalized internal-use software amortization excludes $16.9 million of costs which are currently in the development phase.

Goodwill

The changes in the carrying amount of goodwill were as follows (in thousands):

Balance as of December 31, 2018		$	336,861
Balance as of March 31, 2019		$	336,861