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 June 30, 2022

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 July 29, 2022, the Registrant had 85,924,844 shares of common stock, $0.001 par value, outstanding.

PING IDENTITY HOLDING CORP.

FORM 10-Q

For the Quarter Ended June 30, 2022

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021	4
	Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2022 and 2021	5
	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30, 2022 and 2021	6
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021	8
	Notes to Condensed Consolidated Financial Statements	9
Forward-Looking Statements		29
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	50
Item 4.	Controls and Procedures	51
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	54
Item 4.	Mine Safety Disclosures	54
Item 5.	Other Information	54
Item 6.	Exhibits	54
	Signatures	56

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)

	June 30,		December 31,
	2022		2021
Assets
Current assets:
Cash and cash equivalents	$	210,303	$	220,607
Accounts receivable, net of allowances of $608 and $610 at June 30, 2022 and December 31, 2021, respectively		78,329		82,969
Contract assets, current (net of allowance)		46,945		67,540
Deferred commissions, current		11,464		10,460
Prepaid expenses		19,936		16,654
Other current assets		2,956		2,914
Total current assets		369,933		401,144
Noncurrent assets:
Property and equipment, net		8,810		9,396
Goodwill		526,045		528,548
Intangible assets, net		176,131		190,077
Contract assets, noncurrent (net of allowance)		5,688		3,457
Deferred commissions, noncurrent		20,595		19,380
Deferred income taxes, net		4,236		6,201
Operating lease right-of-use assets		11,769		13,709
Other noncurrent assets		8,836		6,121
Total noncurrent assets		762,110		776,889
Total assets	$	1,132,043	$	1,178,033
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	4,919	$	4,528
Accrued expenses and other current liabilities		10,439		10,305
Accrued compensation		20,178		29,258
Deferred revenue, current		81,159		71,957
Operating lease liabilities, current		4,305		4,330
Current portion of long-term debt (net of issuance costs)		1,882		1,132
Total current liabilities		122,882		121,510
Noncurrent liabilities:
Deferred revenue, noncurrent		3,931		5,584
Long-term debt (net of issuance costs)		290,208		291,154
Deferred income taxes, net		1,919		4,240
Operating lease liabilities, noncurrent		11,717		14,140
Total noncurrent liabilities		307,775		315,118
Total liabilities		430,657		436,628
Commitments and contingencies (Note 15)
Stockholders' equity:
Preferred stock; $0.001 par value; 50,000,000 shares authorized at June 30, 2022 and December 31, 2021; no shares issued or outstanding at June 30, 2022 or December 31, 2021		—		—
Common stock; $0.001 par value; 500,000,000 shares authorized at June 30, 2022 and December 31, 2021; 85,785,493 and 83,754,449 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		86		84
Additional paid-in capital		855,968		824,455
Accumulated other comprehensive income (loss)		(2,776)		652
Accumulated deficit		(151,892)		(83,786)
Total stockholders' equity		701,386		741,405
Total liabilities and stockholders' equity	$	1,132,043	$	1,178,033

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenue:
Subscription	$	66,308	$	73,151	$	146,508	$	137,367
Professional services and other		5,719		5,753		10,210		10,481
Total revenue		72,027		78,904		156,718		147,848
Cost of revenue:
Subscription (exclusive of amortization shown below)		14,223		10,185		27,611		19,599
Professional services and other (exclusive of amortization shown below)		6,845		6,142		13,604		11,725
Amortization expense		8,743		6,077		17,259		11,886
Total cost of revenue		29,811		22,404		58,474		43,210
Gross profit		42,216		56,500		98,244		104,638
Operating expenses:
Sales and marketing		36,712		29,082		67,653		54,631
Research and development		22,086		18,692		42,553		40,394
General and administrative		19,882		19,545		36,113		34,000
Depreciation and amortization		4,448		4,327		8,836		8,692
Total operating expenses		83,128		71,646		155,155		137,717
Loss from operations		(40,912)		(15,146)		(56,911)		(33,079)
Other income (expense):
Interest expense		(3,883)		(310)		(7,519)		(706)
Other income (expense), net		(2,860)		430		(3,664)		(442)
Total other income (expense)		(6,743)		120		(11,183)		(1,148)
Loss before income taxes		(47,655)		(15,026)		(68,094)		(34,227)
Benefit (provision) for income taxes		(193)		4,047		(12)		7,314
Net loss	$	(47,848)	$	(10,979)	$	(68,106)	$	(26,913)
Net loss per share:
Basic and diluted	$	(0.56)	$	(0.13)	$	(0.81)	$	(0.33)
Weighted-average shares used in computing net loss per share:
Basic and diluted		85,295		82,025		84,562		81,684

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net loss	$	(47,848)	$	(10,979)	$	(68,106)	$	(26,913)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(2,595)		207		(3,428)		457
Total other comprehensive income (loss)		(2,595)		207		(3,428)		457
Comprehensive loss	$	(50,443)	$	(10,772)	$	(71,534)	$	(26,456)

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 June 30, 2022:

							Accumulated
					Additional		Other				Total
	Common Stock				Paid-in		Comprehensive		Accumulated		Stockholders'
	Shares		Amount		Capital		Loss		Deficit		Equity
Balances at March 31, 2022		84,016,147	$	84	$	835,454	$	(181)	$	(104,044)	$	731,313
Net loss		—		—		—		—		(47,848)		(47,848)
Stock-based compensation		—		—		14,001		—		—		14,001
Exercise of stock options, net of tax withholding		662,984		1		6,608		—		—		6,609
Vesting of restricted stock, net of tax withholding		1,106,362		1		(95)		—		—		(94)
Foreign currency translation adjustments, net of tax		—		—		—		(2,595)		—		(2,595)
Balances at June 30, 2022		85,785,493	$	86	$	855,968	$	(2,776)	$	(151,892)	$	701,386

Three Months Ended June 30, 2021:

							Accumulated
					Additional		Other				Total
	Common Stock				Paid-in		Comprehensive		Accumulated		Stockholders'
	Shares		Amount		Capital		Income		Deficit		Equity
Balances at March 31, 2021		81,475,176	$	81	$	759,645	$	1,623	$	(35,329)	$	726,020
Net loss		—		—		—		—		(10,979)		(10,979)
Stock-based compensation		—		—		17,167		—		—		17,167
Exercise of stock options, net of tax withholding		22,377		—		30		—		—		30
Vesting of restricted stock, net of tax withholding		589,112		1		(5,510)		—		—		(5,509)
Foreign currency translation adjustments, net of tax		—		—		—		207		—		207
Balances at June 30, 2021		82,086,665	$	82	$	771,332	$	1,830	$	(46,308)	$	726,936

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)

Six Months Ended June 30, 2022:

							Accumulated
					Additional		Other				Total
	Common Stock				Paid-in		Comprehensive		Accumulated		Stockholders'
	Shares		Amount		Capital		Income (Loss)		Deficit		Equity
Balances at December 31, 2021		83,754,449	$	84	$	824,455	$	652	$	(83,786)	$	741,405
Net loss		—		—		—		—		(68,106)		(68,106)
Stock-based compensation		—		—		21,702		—		—		21,702
Reclassification of liability-classified awards upon settlement		—		—		2,541						2,541
Exercise of stock options, net of tax withholding		769,418		1		7,446		—		—		7,447
Vesting of restricted stock, net of tax withholding		1,261,626		1		(176)		—		—		(175)
Foreign currency translation adjustments, net of tax		—		—		—		(3,428)		—		(3,428)
Balances at June 30, 2022		85,785,493	$	86	$	855,968	$	(2,776)	$	(151,892)	$	701,386

Six Months Ended June 30, 2021:

							Accumulated
					Additional		Other				Total
	Common Stock				Paid-in		Comprehensive		Accumulated		Stockholders'
	Shares		Amount		Capital		Income		Deficit		Equity
Balances at December 31, 2020		81,163,896	$	81	$	739,051	$	1,373	$	(19,395)	$	721,110
Net loss		—		—		—		—		(26,913)		(26,913)
Stock-based compensation		—		—		33,467		—		—		33,467
Reclassification of liability-classified awards upon settlement		—		—		3,089						3,089
Exercise of stock options, net of tax withholding		220,482		—		1,801		—		—		1,801
Vesting of restricted stock, net of tax withholding		702,287		1		(6,076)		—		—		(6,075)
Foreign currency translation adjustments, net of tax		—		—		—		457		—		457
Balances at June 30, 2021		82,086,665	$	82	$	771,332	$	1,830	$	(46,308)	$	726,936

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)

	Six Months Ended June 30,
	2022		2021
Cash flows from operating activities
Net loss	$	(68,106)	$	(26,913)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		26,095		20,578
Stock-based compensation expense		21,613		34,415
Amortization of deferred commissions		6,618		4,674
Amortization of deferred debt issuance costs		640		124
Operating leases, net		(507)		(346)
Deferred taxes		(204)		(7,624)
Foreign currency transaction net unrealized loss		996		—
Other		279		63
Changes in operating assets and liabilities:
Accounts receivable		3,729		17,621
Contract assets		18,009		5,653
Deferred commissions		(8,837)		(8,209)
Prepaid expenses and other current assets		(3,476)		3,405
Other assets		(2,297)		(426)
Accounts payable		805		348
Accrued compensation		(6,903)		4,280
Accrued expenses and other		315		1,338
Deferred revenue		7,549		(5,016)
Net cash provided by (used in) operating activities		(3,682)		43,965
Cash flows from investing activities
Payments for business acquisitions, net of cash acquired		(4)		(39,875)
Purchases of investments		(500)		—
Purchases of property and equipment and other		(2,029)		(1,502)
Capitalized software development costs		(9,611)		(8,582)
Net cash used in investing activities		(12,144)		(49,959)
Cash flows from financing activities
Payment of acquisition-related holdbacks		—		(993)
Proceeds from stock option exercises		7,301		1,900
Payment for tax withholding on equity awards		(176)		(6,174)
Proceeds from long-term debt		—		80,000
Payment of long-term debt		(750)		(110,000)
Net cash provided by (used in) financing activities		6,375		(35,267)
Effect of exchange rates on cash and cash equivalents and restricted cash		(831)		(130)
Net decrease in cash and cash equivalents and restricted cash		(10,282)		(41,391)
Cash and cash equivalents and restricted cash
Beginning of period		220,889		146,499
End of period	$	210,607	$	105,108
Supplemental disclosures of cash flow information:
Cash paid for interest	$	6,876	$	584
Cash paid for taxes		1,434		283
Noncash activities:
Purchases of property and equipment, accrued but not yet paid	$	101	$	40
Reclassification of liability-classified awards upon settlement		2,541		3,089
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	$	210,303	$	104,342
Restricted cash included in other noncurrent assets		304		766
Total cash and cash equivalents and restricted cash	$	210,607	$	105,108

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.

Unaudited Interim Condensed Consolidated Financial Information

The accompanying interim condensed consolidated balance sheet as of June 30, 2022, the condensed consolidated statements of operations, of comprehensive loss and of stockholders’ equity for the three and six months ended June 30, 2022 and 2021, the condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 and the related footnote disclosures are unaudited. The condensed consolidated balance sheet data as of December 31, 2021 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, 2021.

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 June 30, 2022, the results of operations for the three and six months ended June 30, 2022 and 2021 and cash flows for the six months ended June 30, 2022 and 2021. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 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-based compensation 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 assets, determining the amortization period for deferred commissions and assessing the accounting treatment for commitments and contingencies. Management evaluates these estimates and

9

PING IDENTITY HOLDING CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

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.

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, 2021. 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 six months ended June 30, 2022. The following describes the impact of certain policies.

Recent Accounting Pronouncements

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies the guidance in Topic 820 that a contractual restriction on the sale of an equity security should not be considered in measuring fair value, and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its condensed consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU No. 2021-08”). ASU No. 2021-08 will require companies to apply the definition of a performance obligation under ASC Topic 606 to recognize and measure contract assets and contract liabilities (i.e. deferred revenue) relating to contracts with customers that are acquired in a business combination. Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its condensed consolidated financial statements. The impact is dependent on the size and frequency of future acquisitions and does not affect contract assets or contract liabilities related to acquisitions completed in years prior to the adoption date.

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands)
Subscription term-based licenses:
Multi-year subscription term-based licenses	$	15,992	$	32,391	$	48,774	$	56,229
1-year subscription term-based licenses		9,164		15,464		20,692		32,808
Total subscription term-based licenses		25,156		47,855		69,466		89,037
Subscription SaaS		22,726		13,425		42,907		25,411
Maintenance and support		18,426		11,871		34,135		22,919
Total subscription revenue		66,308		73,151		146,508		137,367
Professional services and other		5,719		5,753		10,210		10,481
Total revenue	$	72,027	$	78,904	$	156,718	$	147,848

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands)
United States	$	51,280	$	56,934	$	117,043	$	110,805
International		20,747		21,970		39,675		37,043
Total revenue	$	72,027	$	78,904	$	156,718	$	147,848

Other than the United States, no other individual country exceeded 10% of total revenue for the three months ended June 30, 2022 and 2021 or the six months ended June 30, 2022 and 2021.

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands)
Beginning balance	$	67,033	$	69,681	$	70,997	$	73,791
Ending balance		52,633		68,114		52,633		68,114
Change	$	(14,400)	$	(1,567)	$	(18,364)	$	(5,677)

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands)
Beginning balance	$	74,744	$	49,352	$	77,541	$	52,398
Ending balance		85,090		47,719		85,090		47,719
Change	$	10,346	$	(1,633)	$	7,549	$	(4,679)

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 six months ended June 30, 2022 and 2021 that was included in the deferred revenue balances at the beginning of the respective periods was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands)
Deferred revenue recognized as revenue	$	15,413	$	12,101	$	53,182	$	38,036

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and noncancelable amounts to be invoiced. As of June 30, 2022, the Company had $329.5 million of transaction price allocated to remaining performance obligations, of which 83.1% is expected to be recognized as revenue over the next 24 months, with the remainder to be recognized thereafter.

Deferred Commissions

The following table summarizes the account activity of deferred commissions for the three and six months ended June 30, 2022 a