ROKU INC
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 31, 2024
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4. Goodwill and Intangible Assets
- GOODWILL AND INTANGIBLE ASSETS
Goodwill
Goodwill represents the excess of purchase consideration in a business combination over the fair value of tangible and intangible assets acquired net of the liabilities assumed. All goodwill relates to the Company’s platform segment.
Intangible Assets
The following tables summarize the Company’s intangible assets for the periods presented (in thousands, except years):
| As of September 30, 2024 | ||||
|---|---|---|---|---|
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted-Average Useful Lives(in years) | |
| Developed technology | $73,367 | $(57,944) | $15,423 | 5.9 |
| Customer relationships | 14,100 | (14,100) | $— | 4.0 |
| Tradename | 20,400 | (7,466) | 12,934 | 9.8 |
| Patents | 4,076 | (1,407) | 2,669 | 14.0 |
| Total Intangible assets | $111,943 | $(80,917) | $31,026 | 6.7 |
| As of December 31, 2023 | ||||
|---|---|---|---|---|
| GrossCarryingAmount | AccumulatedAmortization | NetCarryingAmount | Weighted-Average Useful Lives(in years) | |
| Developed technology | $73,367 | $(49,087) | $24,280 | 5.9 |
| Customer relationships | 14,100 | (13,948) | 152 | 4.0 |
| Tradename | 20,400 | (5,966) | 14,434 | 9.8 |
| Patents | 4,076 | (1,189) | 2,887 | 14.0 |
| Total Intangible assets | $111,943 | $(70,190) | $41,753 | 6.7 |
The Company recorded amortization expense of $3.5 million and $4.4 million for intangible assets during the three months ended September 30, 2024 and 2023, respectively. The Company recorded amortization expense of $10.7 million and $13.2 million for intangible assets during the nine months ended September 30, 2024 and 2023, respectively.
The Company recorded amortization of developed technology in Cost of revenue, platform in the three months ended September 30, 2023 and 2024 and in the nine months ended September 30, 2024. In the nine months ended September 30, 2023, amortization of developed technology was recorded in Cost of revenue, platform and Research and development expenses. The Company recorded amortization of customer relationships and tradename in Sales and marketing expenses and amortization of patents in General and administrative expenses in the condensed consolidated statements of operations for all periods presented.
As of September 30, 2024, the estimated future amortization expense for intangible assets for the next five years and thereafter is as follows (in thousands):
| Year Ending December 31, | |
|---|---|
| 2024 (remaining 3 months) | $3,525 |
| 2025 | 12,533 |
| 2026 | 4,074 |
| 2027 | 2,737 |
| 2028 | 2,291 |
| Thereafter | 5,866 |
| Total | $31,026 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.