Goodwill, Internal-use Software Development Costs and Intangible Assets

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Internal-use Software Development Costs and Intangible Assets

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

Goodwill

The goodwill reporting units were realigned into single reporting unit, consistent with the change to the Company's segment structure described in Note 2, "Segment Information". The changes in the carrying amount of goodwill during the three month ended March 31, 2025, relate to foreign currency translation adjustments.

Internal-use Software Development Costs

During the three months ended March 31, 2025 and 2024, the Company capitalized $9.4 million and $9.3 million in software development and implementation costs, respectively.

Amortization expense included in the condensed consolidated statements of operations was as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Cost of revenue	$	5,638	$	4,029
Research and development		2,788		2,282
Total	$	8,426	$	6,311

Intangible Assets

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


	March 31, 2025
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted- Average Useful Life (Years)
Technology	$	21,802	$	(19,736	)	$	2,066		4.0
Customer relationship		31,951		(17,512	)		14,439		8.0
Software and license		2,813		(2,813	)		—		3.0
Trademark		4,038		(3,605	)		433		4.0
Total	$	60,604	$	(43,666	)	$	16,938


	December 31, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted- Average Useful Life (Years)
Technology	$	21,798	$	(18,675	)	$	3,123		4.0
Customer relationship		31,946		(16,689	)		15,257		8.0
Software and license		2,797		(2,789	)		8		3.0
Trademark		4,038		(3,350	)		688		4.0
Total	$	60,579	$	(41,503	)	$	19,076

Amortization expense of intangible assets was $2.1 million and $2.0 million for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, future expected amortization expense is as follows (in thousands):


Years Ending December 31,
2025	$	4,951
2026		3,269
2027		3,269
2028		3,269
2029		2,180
Total future amortization expense	$	16,938

There were no impairments of goodwill, internal-use software development costs or intangible assets in the three months ended March 31, 2025 and 2024.