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Acquisitions (Tables)
9 Months Ended
Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]  
Summary of the Fair Value of Identifiable Assets Acquired and Liabilities Assumed
The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed (in thousands):
Cash and cash equivalents$12,155 
Accounts receivable and other current assets21,840 
Intangible assets
Customer Relationships—estimated useful life of 12 years
155,000 
Developed Technology—estimated useful life of 6 years
77,000 
Tradename—estimated useful life of 5 years
8,000 
Goodwill776,147 
Operating lease right-of-use assets8,130 
Property and equipment, net1,897 
Finance lease right-of-use assets43,156 
Other assets3,191 
Accounts payable, accrued liabilities and other current liabilities(15,540)
Deferred revenue(5,600)
Operating lease liabilities(8,130)
Finance lease liabilities(43,156)
Deferred income tax liability(66,273)
Total purchase consideration$967,817 
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands):
Cash$1,043 
Accounts receivable and other current assets1,457 
Intangible assets
Apps—estimated useful life of 5 years
17,040 
Tradename—estimated useful life of 5 years
260 
Developed Technology—estimated useful life of 2 years
590 
Property, equipment and other tangible assets369 
Goodwill9,805 
Accounts payable, accrued liabilities and other liabilities(4,935)
Total purchase consideration$25,629 
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands):
Cash$2,787 
Accounts receivable, net1,850 
Intangible assets
Apps—estimated useful life of 5 years
44,000 
Tradename—estimated useful life of 5 years
900 
Goodwill20,198 
Other tangible assets131 
Accounts payable(2,492)
Other liabilities(11,142)
Total valuation56,232 
Redeemable noncontrolling interest(2,556)
Total purchase consideration$53,676 
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed (in thousands):
Cash$37,767 
Accounts receivable and other current assets27,284 
Intangible assets
Tradename—estimated useful life of 10 years
13,000 
Apps—estimated useful life of 3—5 years
272,000 
Intellectual property license—useful life of 2 years
28,551 
Goodwill82,353 
Right-of-use assets under operating leases125,639 
Property, equipment and other tangible assets 42,312 
Accounts payable, accrued liabilities and other liabilities (81,591)
Deferred revenue (43,200)
License obligation (35,685)
Operating lease liabilities (139,875)
Total purchase consideration$328,555 
Supplemental Pro Forma Information
The unaudited supplemental pro forma information below presents the combined historical results of operations of the Company, Machine Zone and Adjust for each of the periods presented as if Adjust had been acquired as of January 1, 2020 and Machine Zone had been acquired as of January 1, 2019 (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue$727,633 $429,062 $2,034,908 $1,156,144 
Net income (loss)(51)(102,917)3,963 (230,779)
The unaudited supplemental pro forma information above include the following adjustments to net income (loss) in the appropriate pro forma periods (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
An (increase) in amortization expense related to the fair value of acquired identifiable intangible assets, net of the amortization expense already reflected in actual historical results$— $(5,934)$(7,325)$(42,058)
A net increase in revenue related to fair value adjustment682 22,542 1,219 31,584 
A decrease (increase) in expenses related to transaction expenses— — 14,115 (2,617)
An decrease (increase) in interest expense related to new debt financing, net of interest expense related to pre-existing debt settled as part of the acquisitions— (2,652)(2,640)97,107 
A (decrease) in other income - liability classified warrants— — — (1,730)
An (increase) in tax provision(156)(3,201)(1,232)(18,877)