DoubleVerify Holdings, Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

Goodwill and Intangible Assets

Goodwill and Intangible Assets

9 Months Ended

12 Months Ended

Sep. 30, 2021

Dec. 31, 2020

Goodwill and Intangible Assets

Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

As of September 30, 2021 and December 31, 2020, the carrying value of goodwill was $244.7 million and $227.3 million, respectively. The total change in the carrying value of goodwill was primarily related to $17.1 million from the Meetrics acquisition. The remaining change in goodwill was deemed immaterial.

The following table summarizes the Company’s intangible assets and related accumulated amortization:


	September 30, 2021						December 31, 2020
	Gross Carrying		Accumulated		Net Carrying		Gross Carrying		Accumulated		Net Carrying
(in thousands)	Amount		Amortization		Amount		Amount		Amortization		Amount
Trademarks and brands		11,736		(3,200)		8,536		11,690		(2,562)		9,128
Customer relationships		109,301		(34,194)		75,107		102,220		(27,720)		74,500
Developed technology		65,599		(31,604)		33,995		63,210		(25,128)		38,082
Non-compete agreements		69		(2)		67		—		—		—
Total intangible assets	$	186,705	$	(69,000)	$	117,705	$	177,120	$	(55,410)	$	121,710

Amortization expense for the three months ended September 30, 2021 and September 30, 2020 is $4.6 million and $4.4 million, respectively. Amortization expense related to intangible assets amounted to $13.5 million and $13.4 million for the nine months ended September 30, 2021 and September 30, 2020, respectively.

Estimated future expected amortization expense of intangible assets as of September 30, 2021 is as follows:


(in thousands)
2021	$	4,755
2022		19,001
2023		18,929
2024		17,303
2025		15,146
2026		10,283
Thereafter		32,288
Total	$	117,705

The weighted-average remaining useful life by major asset classes as of September 30, 2021 is as follows:


		(In years)
Trademarks and brands		11
Customer relationships		8
Developed technology		4
Non-compete agreements		2

There were no impairments identified during the nine months ended September 30, 2021 or September 30, 2020.

5. Goodwill and Intangible Assets

The following is a summary of changes to the goodwill carrying value from December 31, 2018 through December 31, 2019:


Goodwill as of December 31, 2018	$	174,204
Business combinations (Zentrick and Ad‑Juster)		53,181
Foreign exchange impact		(36)
Goodwill as of December 31, 2019	$	227,349

There were no changes to the goodwill carrying value from December 31, 2019 through December 31, 2020. The foreign exchange impact on Goodwill was immaterial for the period.

The following table summarizes the Company’s intangible assets and related accumulated amortization:


	As of December 31, 2020						As of December 31, 2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
(in thousands)	Amount		Amortization		Amount		Amount		Amortization		Amount
Trademarks and brands		11,690		(2,562)		9,128		11,690		(1,718)		9,972
Customer relationships		102,220		(27,720)		74,500		102,220		(19,148)		83,072
Developed Technology		63,210		(25,128)		38,082		63,184		(16,607)		46,577
Total intangible assets	$	177,120	$	(55,410)	$	121,710	$	177,094	$	(37,473)	$	139,621

Amortization expense related to intangible assets amounted to $17.9 million, $17.1 million, and $15.6 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Estimated future expected amortization expense of intangible assets as of December 31, 2020, is as follows:


(in thousands)
2021	$	17,860
2022		17,860
2023		17,825
2024		16,205
Thereafter		51,960
Total	$	121,710

The weighted-average remaining useful life by major asset classes as of December 31, 2020 is as follows:


		(In years)
Trademarks and brands		11
Customer relationships		9
Developed Technology		5

There were no impairments identified during the years ended December 31, 2020, 2019 and 2018.