Goodwill, Internal-use Software Development Costs and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Internal-use Software Development Costs and Intangible Assets

6. Goodwill, Internal-use Software Development Costs and Intangible Assets

Goodwill

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

	United States		Other			Total
Balance as of December 31, 2021	$	128,519	$	894		$	129,413
Goodwill acquired (1)		2,509		—			2,509
Foreign currency translation adjustments		—		(71	)		(71	)
Balance as of December 31, 2022	$	131,028	$	823		$	131,851
Foreign currency translation adjustments		—		9			9
Balance as of December 31, 2023	$	131,028	$	832		$	131,860

(1) The goodwill acquired in the year ended December 31, 2022 is related to the PROFIT acquisition.

Internal-use Software Development Costs

During the years ended December 31, 2023, 2022 and 2021, the Company capitalized $33.7 million, $29.8 million and $19.3 million in software development costs, respectively.

During the years ended December 31, 2023, 2022 and 2021, the Company recorded $13.3 million, $8.8 million and $4.9 million of amortization expense in cost of revenue, and $8.0 million, $5.9 million and $4.5 million of amortization expense in operating expenses, respectively.

Intangible Assets

Intangible assets, net consisted of the following (in thousands):

	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
Technology	$	21,845	$	(14,951	)	$	6,894		4.0
License		2,568		(2,568	)		—		—
Customer relationship		32,006		(13,480	)		18,526		8.0
Software		451		(411	)		40		3.0
Trademark		4,038		(2,340	)		1,698		4.0
Total	$	60,908	$	(33,750	)	$	27,158

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
Technology	$	22,631	$	(11,965	)	$	10,666		4.0
License		2,503		(2,503	)		—		—
Customer relationship		33,788		(11,695	)		22,093		8.0
Software		1,212		(661	)		551		3.0
Trademark		4,238		(1,531	)		2,707		4.0
Total	$	64,372	$	(28,355	)	$	36,017

Amortization expense of intangible assets was $8.4 million, $8.3 million and $2.9 million for the years ended December 31, 2023, 2022 and 2021 respectively.

As of December 31, 2023, future expected amortization expense is as follows (in thousands):

Years Ending December 31,
2024		8,082
2025		6,620
2026		3,738
2027		3,269
2028		3,269
Thereafter		2,180
Total future amortization expense	$	27,158

There were no impairments of goodwill, internal-use software development costs or intangible assets in the years ended December 31, 2023, 2022 and 2021.