v3.25.2
Acquisitions (Tables)
6 Months Ended
Jun. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Aggregate Purchase Price Allocation to Assets Acquired and Liabilities Assumed
The aggregate purchase price for the Envato and Backgrid acquisitions have been allocated to the assets acquired and liabilities assumed as follows (in thousands):
Assets acquired and liabilities assumed:EnvatoBackgridTotal
Cash and cash equivalents1
$90,591 $1,718 $92,309 
Accounts receivable6,818 732 7,550 
Other assets5,404 77 5,481 
Right of use asset273 — 273 
Fixed assets
895 — 895 
Intangible assets:
Trade name31,000 300 31,300 
Developed technology61,000 900 61,900 
Customer relationships
14,200 — 14,200 
Intangible assets106,200 1,200 107,400 
Goodwill2
169,161 19,843 189,004 
Deferred tax asset36,956 — 36,956 
Total assets acquired$416,298 $23,570 $439,868 
Accounts payable(4,173)— (4,173)
Contributor royalties payable(11,917)(849)(12,766)
Accrued expenses(30,233)(228)(30,461)
Deferred revenue(46,888)— (46,888)
Deferred tax liability— (271)(271)
Other liabilities1
(72,682)(1,074)(73,756)
Lease liability(190)— (190)
Total liabilities assumed(166,083)(2,422)(168,505)
Net assets acquired$250,215 $21,148 $271,363 
1 Envato’s cash includes $63.4 million for the funding of Envato obligations that were triggered upon the closing of the acquisition (the “Envato Seller Obligations”). These obligations are also reported as assumed liabilities within Other liabilities. The Envato Obligations would not have been incurred had the acquisition not closed, and are presented “on-the-line” because they are not reflected in either the acquirer’s or acquiree’s statement of operations.
2 In the first quarter of 2025, the Company updated its preliminary allocation of the Envato purchase price to the assets acquired and liabilities assumed. This resulted in (i) a $1.6 million increase to goodwill, (ii) a $0.4 million decrease to Deferred tax assets, and (iii) a $1.2 million increase to Other liabilities.
Business Combination, Pro Forma Information These pro forma results have been prepared for comparative purposes only and are based on estimates and assumptions that have been made solely for purposes of developing such pro forma information and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the previous annual period.
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenue
As Reported$266,990 $220,053 $509,610 $434,368 
Pro Forma266,990 268,616 509,610 533,475 
Income before income taxes
As Reported$43,131 $16,560 $63,549 $36,950 
Pro Forma43,131 19,429 63,549 48,567