UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_____________________________________

FORM 10-Q

_____________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-39056

_____________________________________________________________________________________________________________________________________

PING IDENTITY HOLDING CORP.

(Exact Name of Registrant as Specified in Its Charter)

_____________________________________________________________________________________________________________________________________

Delaware	81-2933383
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

1001 17th Street, Suite 100
Denver, Colorado	80202
(Address of Principal executive offices)	(Zip Code)

(303) 468-2900

(Registrant’s telephone number, including area code)

_______________________________________________________________________________________________________________________________________

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol(s):	Name of each exchange on which registered:
Common Stock, $0.001 par value per share	PING	New York Stock Exchange

__________________________________________________________________________________________________________________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ⌧  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files)  Yes ⌧  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No ☒

On October 29, 2021, the Registrant had 83,579,621 shares of common stock, $0.001 par value, outstanding.

PING IDENTITY HOLDING CORP.

FORM 10-Q

For the Quarter Ended September 30, 2021

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020	3
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020	4
	Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2021 and 2020	5
	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2021 and 2020	6
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020	8
	Notes to Condensed Consolidated Financial Statements	9
Forward-Looking Statements		28
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	49
Item 4.	Controls and Procedures	50
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3.	Defaults Upon Senior Securities	51
Item 4.	Mine Safety Disclosures	51
Item 5.	Other Information	51
Item 6.	Exhibits	51
	Signatures	53

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PING IDENTITY HOLDING CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(unaudited)

	September 30,		December 31,
	2021		2020
Assets
Current assets:
Cash and cash equivalents	$	51,025	$	145,733
Accounts receivable, net of allowances of $737 and $828 at September 30, 2021 and December 31, 2020, respectively		62,194		82,335
Contract assets, current (net of allowance)		68,480		62,503
Deferred commissions, current		8,037		6,604
Prepaid expenses		18,203		17,608
Other current assets		2,815		1,940
Total current assets		210,754		316,723
Noncurrent assets:
Property and equipment, net		8,337		9,446
Goodwill		529,636		441,150
Intangible assets, net		195,970		180,422
Contract assets, noncurrent (net of allowance)		4,218		11,288
Deferred commissions, noncurrent		13,658		9,325
Deferred income taxes, net		3,942		3,962
Operating lease right-of-use assets		13,208		15,619
Other noncurrent assets		4,700		2,516
Total noncurrent assets		773,669		673,728
Total assets	$	984,423	$	990,451
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	1,715	$	2,795
Accrued expenses and other current liabilities		11,009		7,339
Accrued compensation		19,325		17,170
Deferred revenue, current		45,546		49,203
Operating lease liabilities, current		4,075		3,979
Total current liabilities		81,670		80,486
Noncurrent liabilities:
Deferred revenue, noncurrent		4,188		3,195
Long-term debt		119,201		149,014
Deferred income taxes, net		6,823		17,867
Operating lease liabilities, noncurrent		14,129		17,213
Other liabilities, noncurrent		1,569		1,566
Total noncurrent liabilities		145,910		188,855
Total liabilities		227,580		269,341
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock; $0.001 par value; 50,000,000 shares authorized at September 30, 2021 and December 31, 2020; no shares issued or outstanding at September 30, 2021 or December 31, 2020		—		—
Common stock; $0.001 par value; 500,000,000 shares authorized at September 30, 2021 and December 31, 2020; 83,550,499 and 81,163,896 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively		84		81
Additional paid-in capital		813,856		739,051
Accumulated other comprehensive income		662		1,373
Accumulated deficit		(57,759)		(19,395)
Total stockholders' equity		756,843		721,110
Total liabilities and stockholders' equity	$	984,423	$	990,451

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

PING IDENTITY HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue:
Subscription	$	71,531	$	55,113	$	208,898	$	166,199
Professional services and other		4,653		4,828		15,134		14,135
Total revenue		76,184		59,941		224,032		180,334
Cost of revenue:
Subscription (exclusive of amortization shown below)		11,366		8,091		30,965		22,709
Professional services and other (exclusive of amortization shown below)		6,314		4,083		18,039		12,322
Amortization expense		6,811		5,177		18,697		14,723
Total cost of revenue		24,491		17,351		67,701		49,754
Gross profit		51,693		42,590		156,331		130,580
Operating expenses:
Sales and marketing		30,379		21,164		85,010		64,105
Research and development		18,476		12,224		58,870		35,849
General and administrative		17,278		10,633		51,278		34,230
Depreciation and amortization		4,340		4,223		13,032		12,705
Total operating expenses		70,473		48,244		208,190		146,889
Loss from operations		(18,780)		(5,654)		(51,859)		(16,309)
Other income (expense):
Interest expense		(490)		(605)		(1,196)		(1,835)
Other income (expense), net		(805)		1,271		(1,247)		716
Total other income (expense)		(1,295)		666		(2,443)		(1,119)
Loss before income taxes		(20,075)		(4,988)		(54,302)		(17,428)
Benefit for income taxes		8,624		4,061		15,938		8,937
Net loss	$	(11,451)	$	(927)	$	(38,364)	$	(8,491)
Net loss per share:
Basic and diluted	$	(0.14)	$	(0.01)	$	(0.47)	$	(0.11)
Weighted-average shares used in computing net loss per share:
Basic and diluted		82,174		80,692		81,849		80,203

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

PING IDENTITY HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net loss	$	(11,451)	$	(927)	$	(38,364)	$	(8,491)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(1,168)		502		(711)		(162)
Total other comprehensive income (loss)		(1,168)		502		(711)		(162)
Comprehensive loss	$	(12,619)	$	(425)	$	(39,075)	$	(8,653)

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

PING IDENTITY HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share amounts)

(unaudited)

Three Months Ended September 30, 2021:

							Accumulated
					Additional		Other				Total
	Common Stock				Paid-in		Comprehensive		Accumulated		Stockholders'
	Shares		Amount		Capital		Income (Loss)		Deficit		Equity
Balances at June 30, 2021		82,086,665	$	82	$	771,332	$	1,830	$	(46,308)	$	726,936
Net loss		—		—		—		—		(11,451)		(11,451)
Stock-based compensation		—		—		11,676		—		—		11,676
Exercise of stock options, net of tax withholding		3,000		—		36		—		—		36
Vesting of restricted stock units, net of tax withholding		199,949		1		(2,058)		—		—		(2,057)
Shares issued related to business combinations		1,260,885		1		32,870						32,871
Foreign currency translation adjustments, net of tax		—		—		—		(1,168)		—		(1,168)
Balances at September 30, 2021		83,550,499	$	84	$	813,856	$	662	$	(57,759)	$	756,843

Three Months Ended September 30, 2020:

							Accumulated
					Additional		Other				Total
	Common Stock				Paid-in		Comprehensive		Accumulated		Stockholders'
	Shares		Amount		Capital		Income (Loss)		Deficit		Equity
Balances at June 30, 2020		80,444,507	$	80	$	729,602	$	(1,063)	$	(15,068)	$	713,551
Net loss		—		—		—		—		(927)		(927)
Stock-based compensation		—		—		3,956		—		—		3,956
Exercise of stock options, net of tax withholding		318,818		1		2,980		—		—		2,981
Vesting of restricted stock units, net of tax withholding		240,182		—		(2,769)		—		—		(2,769)
Foreign currency translation adjustments, net of tax		—		—		—		502		—		502
Balances at September 30, 2020		81,003,507	$	81	$	733,769	$	(561)	$	(15,995)	$	717,294

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

PING IDENTITY HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share amounts)

(unaudited)

Nine Months Ended September 30, 2021:

							Accumulated
					Additional		Other				Total
	Common Stock				Paid-in		Comprehensive		Accumulated		Stockholders'
	Shares		Amount		Capital		Income (Loss)		Deficit		Equity
Balances at December 31, 2020		81,163,896	$	81	$	739,051	$	1,373	$	(19,395)	$	721,110
Net loss		—		—		—		—		(38,364)		(38,364)
Stock-based compensation		—		—		45,143		—		—		45,143
Reclassification of liability-classified awards upon settlement		—		—		3,089						3,089
Exercise of stock options, net of tax withholding		223,482		1		1,836		—		—		1,837
Vesting of restricted stock units, net of tax withholding		902,236		1		(8,133)		—		—		(8,132)
Shares issued related to business combinations		1,260,885		1		32,870						32,871
Foreign currency translation adjustments, net of tax		—		—		—		(711)		—		(711)
Balances at September 30, 2021		83,550,499	$	84	$	813,856	$	662	$	(57,759)	$	756,843

Nine Months Ended September 30, 2020:

							Accumulated
					Additional		Other				Total
	Common Stock				Paid-in		Comprehensive		Accumulated		Stockholders'
	Shares		Amount		Capital		Loss		Deficit		Equity
Balances at December 31, 2019		79,632,500	$	80	$	718,446	$	(399)	$	(7,656)	$	710,471
Cumulative-effect adjustment for adoption of ASU 2016-13										152		152
Net loss		—		—		—		—		(8,491)		(8,491)
Stock-based compensation		—		—		10,720		—		—		10,720
Exercise of stock options, net of tax withholding		1,104,481		1		7,372		—		—		7,373
Vesting of restricted stock units, net of tax withholding		266,526		—		(2,769)		—		—		(2,769)
Foreign currency translation adjustments, net of tax		—		—		—		(162)		—		(162)
Balances at September 30, 2020		81,003,507	$	81	$	733,769	$	(561)	$	(15,995)	$	717,294

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

PING IDENTITY HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

	Nine Months Ended September 30,
	2021		2020
Cash flows from operating activities
Net loss	$	(38,364)	$	(8,491)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		31,729		27,428
Stock-based compensation expense		46,381		11,983
Amortization of deferred commissions		7,407		5,432
Amortization of deferred debt issuance costs		187		187
Operating leases, net		(576)		(105)
Deferred taxes		(16,259)		(11,391)
Other		179		400
Changes in operating assets and liabilities:
Accounts receivable		20,084		18,029
Contract assets		1,082		2,005
Deferred commissions		(13,173)		(5,766)
Prepaid expenses and other current assets		(960)		(2,869)
Other assets		(3,055)		(700)
Accounts payable		(1,086)		(322)
Accrued compensation		2,876		(9,017)
Accrued expenses and other		4,676		2,682
Deferred revenue		(3,001)		(9,515)
Net cash provided by operating activities		38,127		19,970
Cash flows from investing activities
Payments for business acquisitions, net of cash acquired		(80,191)		(4,703)
Purchases of property and equipment and other		(2,056)		(1,716)
Capitalized software development costs		(13,732)		(9,824)
Net cash used in investing activities		(95,979)		(16,243)
Cash flows from financing activities
Payment of acquisition-related holdbacks		(993)		(424)
Payment of offering costs		—		(295)
Proceeds from stock option exercises		1,936		9,027
Payment for tax withholding on equity awards		(8,231)		(4,422)
Proceeds from long-term debt		80,000		97,823
Payment of long-term debt		(110,000)		—
Net cash provided by (used in) financing activities		(37,288)		101,709
Effect of exchange rates on cash and cash equivalents and restricted cash		437		132
Net increase (decrease) in cash and cash equivalents and restricted cash		(94,703)		105,568
Cash and cash equivalents and restricted cash
Beginning of period		146,499		68,386
End of period	$	51,796	$	173,954
Supplemental disclosures of cash flow information:
Cash paid for interest	$	1,011	$	1,728
Cash paid for taxes		290		931
Noncash activities:
Purchases of property and equipment, accrued but not yet paid	$	107	$	—
Reclassification of liability-classified awards upon settlement		3,089		—
Acquisition-related accruals		—		226
Acquisition-related receivables		413		—
Fair value of common stock issued as consideration for business combinations		32,871		—
Lease liabilities arising from right-of-use assets		—		2,717
Reconciliation of cash and cash equivalents and restricted cash within the consolidated balance sheets to the amounts shown in the statements of cash flows above:
Cash and cash equivalents	$	51,025	$	173,206
Restricted cash included in other noncurrent assets		771		748
Total cash and cash equivalents and restricted cash	$	51,796	$	173,954

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

PING IDENTITY HOLDING CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.   Overview and Basis of Presentation

Organization and Description of Business

Ping Identity Holding Corp. and its wholly owned subsidiaries, referred to herein as the “Company,” is headquartered in Denver, Colorado with international locations principally in Canada, the United Kingdom, France, Australia, Israel and India. The Company, doing business as Ping Identity Corporation (“Ping Identity”), provides customers, employees and partners with secure access to any service, application or application programming interface (“API”), while also managing identity and profile data at scale.

Basis of Presentation and Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All amounts are reported in U.S. dollars. Certain amounts for the three and nine months ended September 30, 2020 have been reclassified to conform with current period presentation.

Unaudited Interim Condensed Consolidated Financial Information

The accompanying interim condensed consolidated balance sheet as of September 30, 2021, the condensed consolidated statements of operations, of comprehensive loss and of stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, the condensed consolidated statements of cash flows for the nine months ended September 30, 2021 and 2020 and the related footnote disclosures are unaudited. The condensed consolidated balance sheet data as of December 31, 2020 was derived from audited financial statements, but does not include all disclosures required by GAAP. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in management’s opinion, include all adjustments necessary to state fairly the consolidated financial position of the Company as of September 30, 2021, the results of operations for the three and nine months ended September 30, 2021 and 2020 and cash flows for the nine months ended September 30, 2021 and 2020. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future period.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, determining the fair values of assets acquired and liabilities assumed in business combinations, valuing stock option awards and assessing the probability of the awards meeting vesting conditions, recognizing revenue, establishing allowances for expected credit losses based on expected credit losses and the collectability of financial assets, determining useful lives for finite-lived assets, assessing the recoverability of long-lived assets, determining the value of right-of-use assets and lease liabilities, accounting for income taxes and related valuation allowances against deferred tax

9

PING IDENTITY HOLDING CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

assets, determining the amortization period for deferred commissions and assessing the accounting treatment for commitments and contingencies. Management evaluates these estimates and assumptions on an ongoing basis and makes estimates based on historical experience and various other assumptions that are believed to be reasonable. Actual results may differ from these estimates due to risks and uncertainties, including the continued uncertainty surrounding rapidly changing market and economic conditions due to the novel Coronavirus Disease 2019 (“COVID-19”) pandemic.

2.       Summary of Significant Accounting Policies

The Company’s significant accounting policies are discussed in “Note 2 — Summary of Significant Accounting Policies” to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. There have been no significant changes to these policies that have had a material impact on the Company’s condensed consolidated financial statements and related notes for the three and nine months ended September 30, 2021. The following describes the impact of certain policies.

Recent Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions to the general principles in Topic 740 and clarifies certain aspects of the current guidance to improve consistent application among reporting entities. Effective January 1, 2021, the Company adopted ASU 2019-12. The adoption did not have a material impact on its condensed consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”), which provides companies with temporary optional financial reporting alternatives to ease the potential burden in accounting for reference rate reform and includes a provision that allows companies to account for a modified contract as a continuation of an existing contract. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. Adoption of ASU 2020-04 did not have a material impact on the Company’s condensed consolidated financial statements.

3.       Revenue Recognition and Deferred Commissions

The Company recognizes revenue under Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services.

10

PING IDENTITY HOLDING CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Disaggregation of Revenue

The following table presents revenue by category:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Subscription term-based licenses:
Multi-year subscription term-based licenses	$	30,456	$	22,974	$	86,685	$	68,103
1-year subscription term-based licenses		13,192		11,944		46,000		40,276
Total subscription term-based licenses		43,648		34,918		132,685		108,379
Subscription SaaS		15,343		9,857		40,754		27,273
Maintenance and support		12,540		10,338		35,459		30,547
Total subscription revenue		71,531		55,113		208,898		166,199
Professional services and other		4,653		4,828		15,134		14,135
Total revenue	$	76,184	$	59,941	$	224,032	$	180,334

The following table presents revenue by geographic region, which is based on the delivery address of the customer, and is summarized by geographic area:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
United States	$	54,654	$	41,818	$	165,459	$	129,473
International		21,530		18,123		58,573		50,861
Total revenue	$	76,184	$	59,941	$	224,032	$	180,334

Other than the United States, no other individual country exceeded 10% of total revenue for the three months ended September 30, 2021 and 2020 or the nine months ended September 30, 2021 and 2020.

Contract Balances

Contract assets represent amounts for which the Company has recognized revenue, pursuant to its revenue recognition policy, for contracts that have not yet been invoiced to customers where there is a remaining performance obligation, typically for multi-year arrangements. In multi-year agreements, the Company generally invoices customers on an annual basis on each anniversary of the contract start date. Amounts anticipated to be billed within one year of the balance sheet date are recorded as contract assets, current; the remaining portion is recorded as contract assets, noncurrent in the condensed consolidated balance sheets. The change in the total contract asset balance relates to entering into new multi-year contracts and billing on existing contracts. The opening and closing balances of contract assets were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Beginning balance	$	68,114	$	84,640	$	73,791	$	86,010
Ending balance		72,698		83,945		72,698		83,945
Change	$	4,584	$	(695)	$	(1,093)	$	(2,065)

11

PING IDENTITY HOLDING CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Contract liabilities consist of customer billings in advance of revenue being recognized. The Company primarily invoices its customers for subscription arrangements annually in advance, though certain contracts require invoicing for the entire subscription in advance. Amounts anticipated to be recognized within one year of the balance sheet date are recorded as deferred revenue, current; the remaining portion is recorded as deferred revenue, noncurrent in the condensed consolidated balance sheets. The opening and closing balances of contract liabilities included in deferred revenue were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Beginning balance	$	47,719	$	39,964	$	52,398	$	47,507
Ending balance		49,734		37,992		49,734		37,992
Change	$	2,015	$	(1,972)	$	(2,664)	$	(9,515)

The change in deferred revenue relates primarily to invoicing customers and recognizing revenue in conjunction with the satisfaction of performance obligations. Revenue recognized during the three and nine months ended September 30, 2021 and 2020 that was included in the deferred revenue balances at the beginning of the respective periods was as follows: