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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

 

For the Quarterly Period Ended: March 31, 2022

 

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 001-34702

SPS COMMERCE, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

41-2015127

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

333 South Seventh Street, Suite 1000, Minneapolis, MN 55402

(Address of principal executive offices, including Zip Code)

(612) 435-9400

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol

 

Name of exchange on which registered

Common Stock, par value $0.001 per share

 

SPSC

 

The Nasdaq Stock Market LLC (Nasdaq Global Market)

 

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  

The number of shares of the registrant’s common stock, par value $0.001 per share, outstanding at April 21, 2022 was 36,095,129 shares.

 


Table of Contents

 

 

SPS COMMERCE, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

 

 

 

 

 

Page

PART I. FINANCIAL INFORMATION

 

 

 

 

 

Item 1.

 

Financial Statements (unaudited)

 

3

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity

 

5

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows  

 

6

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

7

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

17

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

23

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

23

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

24

 

 

 

 

 

Item 1A.

 

Risk Factors

 

24

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

24

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

24

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

24

 

 

 

 

 

Item 5.

 

Other Information

 

24

 

 

 

 

 

Item 6.

 

Exhibits

 

25

 

 

 

 

 

SIGNATURES

 

26

 

Unless the context otherwise requires, for purposes of the Quarterly Report on Form 10-Q, the words “we,” “us,” “our,” the “Company,” “SPS,” and “SPS Commerce” refer to SPS Commerce, Inc.


 

    SPS COMMERCE, INC.

2

Form 10-Q for the Quarterly Period ended March 31, 2022

 


Table of Contents

 

 

PART I. – FINANCIAL INFORMATION

Item 1.Financial Statements

SPS COMMERCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

March 31,

 

 

December 31,

 

(in thousands, except shares)

 

2022

 

 

2021

 

ASSETS

 

(unaudited)

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

203,088

 

 

$

207,552

 

Short-term investments

 

 

39,968

 

 

 

49,758

 

Accounts receivable

 

 

43,065

 

 

 

38,811

 

Allowance for credit losses

 

 

(4,287

)

 

 

(4,249

)

Accounts receivable, net

 

 

38,778

 

 

 

34,562

 

Deferred costs

 

 

46,710

 

 

 

44,529

 

Other assets

 

 

22,923

 

 

 

16,042

 

Total current assets

 

 

351,467

 

 

 

352,443

 

Property and equipment, net

 

 

32,261

 

 

 

31,901

 

Operating lease right-of-use assets

 

 

10,248

 

 

 

10,851

 

Goodwill

 

 

144,162

 

 

 

143,663

 

Intangible assets, net

 

 

56,158

 

 

 

58,587

 

Other assets

 

 

 

 

 

 

 

 

Deferred costs, non-current

 

 

15,900

 

 

 

15,191

 

Deferred income tax assets

 

 

199

 

 

 

182

 

Other assets, non-current

 

 

2,913

 

 

 

3,028

 

Total assets

 

$

613,308

 

 

$

615,846

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

4,731

 

 

$

8,330

 

Accrued compensation

 

 

21,930

 

 

 

31,661

 

Accrued expenses

 

 

6,632

 

 

 

8,345

 

Deferred revenue

 

 

56,798

 

 

 

50,428

 

Operating lease liabilities

 

 

4,337

 

 

 

4,108

 

Total current liabilities

 

 

94,428

 

 

 

102,872

 

Other liabilities

 

 

 

 

 

 

 

 

Deferred revenue, non-current

 

 

5,123

 

 

 

5,144

 

Operating lease liabilities, non-current

 

 

15,338

 

 

 

16,426

 

Deferred income tax liabilities

 

 

6,898

 

 

 

7,145

 

Total liabilities

 

 

121,787

 

 

 

131,587

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding

 

 

 

 

 

 

Common stock, $0.001 par value; 110,000,000 shares authorized; 38,031,415 and 37,798,610 shares issued; and 36,120,518 and 36,009,257 shares outstanding, respectively

 

 

38

 

 

 

38

 

Treasury Stock, at cost; 1,910,897 and 1,789,353 shares, respectively

 

 

(100,903

)

 

 

(85,677

)

Additional paid-in capital

 

 

442,405

 

 

 

433,258

 

Retained earnings

 

 

150,690

 

 

 

138,087

 

Accumulated other comprehensive loss

 

 

(709

)

 

 

(1,447

)

Total stockholders’ equity

 

 

491,521

 

 

 

484,259

 

Total liabilities and stockholders’ equity

 

$

613,308

 

 

$

615,846

 

 

See accompanying notes to these condensed consolidated financial statements.

 

    SPS COMMERCE, INC.

3

Form 10-Q for the Quarterly Period ended March 31, 2022

 


Table of Contents

 

SPS COMMERCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

Three Months Ended

 

 

 

March 31,

 

(in thousands, except per share amounts) (unaudited)

 

2022

 

 

2021

 

Revenues

 

$

105,193

 

 

$

90,094

 

Cost of revenues

 

 

35,389

 

 

 

29,970

 

Gross profit

 

 

69,804

 

 

 

60,124

 

Operating expenses

 

 

 

 

 

 

 

 

Sales and marketing

 

 

24,655

 

 

 

21,355

 

Research and development

 

 

10,701

 

 

 

8,706

 

General and administrative

 

 

15,468

 

 

 

14,737

 

Amortization of intangible assets

 

 

2,470

 

 

 

2,664

 

Total operating expenses

 

 

53,294

 

 

 

47,462

 

Income from operations

 

 

16,510

 

 

 

12,662

 

Other income (expense), net

 

 

423

 

 

 

(325

)

Income before income taxes

 

 

16,933

 

 

 

12,337

 

Income tax expense

 

 

4,330

 

 

 

2,137

 

Net income

 

$

12,603

 

 

$

10,200

 

Other comprehensive income

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

730

 

 

 

192

 

Unrealized loss on investments, net of tax of ($1) and ($15)

 

 

(3

)

 

 

(45

)

Reclassification of loss on investments into earnings, net of tax of $4 and $19

 

 

11

 

 

 

57

 

Total other comprehensive income

 

 

738

 

 

 

204

 

Comprehensive income

 

$

13,341

 

 

$

10,404

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

Basic

 

$

0.35

 

 

$

0.29

 

Diluted

 

$

0.34

 

 

$

0.28

 

 

 

 

 

 

 

 

 

 

Weighted average common shares used to compute net income per share

 

 

 

 

 

 

 

 

Basic

 

 

36,136

 

 

 

35,751

 

Diluted

 

 

36,989

 

 

 

36,722

 

 

 See accompanying notes to these condensed consolidated financial statements.

 

    SPS COMMERCE, INC.

4

Form 10-Q for the Quarterly Period ended March 31, 2022

 


Table of Contents

 

SPS COMMERCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

Stockholders'

 

(in thousands, except shares) (unaudited)

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Equity

 

Balances, December 31, 2020

 

 

35,487,217

 

 

$

37

 

 

 

1,613,250

 

 

$

(65,247

)

 

$

393,462

 

 

$

93,490

 

 

$

(1,021

)

 

$

420,721

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,491

 

 

 

 

 

 

 

 

 

6,491

 

Shares issued pursuant to stock awards

 

 

372,746

 

 

 

 

 

 

 

 

 

 

 

 

2,802

 

 

 

 

 

 

 

 

 

2,802

 

Employee stock purchase plan activity

 

 

1,621

 

 

 

 

 

 

 

 

 

 

 

 

105

 

 

 

 

 

 

 

 

 

105

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,200

 

 

 

 

 

 

10,200

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

192

 

 

 

192

 

Unrealized loss on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(45

)

 

 

(45

)

Reclassification of loss on investments into earnings, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57

 

 

 

57

 

Balances, March 31, 2021

 

 

35,861,584

 

 

$

37

 

 

 

1,613,250

 

 

$

(65,247

)

 

$

402,860

 

 

$

103,690

 

 

$

(817

)

 

$

440,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances, December 31, 2021

 

 

36,009,257

 

 

$

38

 

 

 

1,789,353

 

 

$

(85,677

)

 

$

433,258

 

 

$

138,087

 

 

$

(1,447

)

 

$

484,259

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,496

 

 

 

 

 

 

 

 

 

8,496

 

Shares issued pursuant to stock awards

 

 

231,107

 

 

 

 

 

 

 

 

 

 

 

 

504

 

 

 

 

 

 

 

 

 

504

 

Employee stock purchase plan activity

 

 

1,698

 

 

 

 

 

 

 

 

 

 

 

 

147

 

 

 

 

 

 

 

 

 

147

 

Repurchases of common stock

 

 

(121,544

)

 

 

 

 

 

121,544

 

 

 

(15,226

)

 

 

 

 

 

 

 

 

 

 

 

(15,226

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,603

 

 

 

 

 

 

12,603

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

730

 

 

 

730

 

Unrealized loss on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

Reclassification of loss on investments into earnings, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

 

 

11

 

Balances, March 31, 2022

 

 

36,120,518

 

 

$

38

 

 

 

1,910,897

 

 

$

(100,903

)

 

$

442,405

 

 

$

150,690

 

 

$

(709

)

 

$

491,521

 

 

See accompanying notes to these condensed consolidated financial statements.

 

    SPS COMMERCE, INC.

5

Form 10-Q for the Quarterly Period ended March 31, 2022

 


Table of Contents

 

SPS COMMERCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

Three Months Ended

 

 

 

March 31,

 

(in thousands) (unaudited)

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

12,603

 

 

$

10,200

 

Reconciliation of net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

(269

)

 

 

163

 

Depreciation and amortization of property and equipment

 

 

3,864

 

 

 

3,765

 

Amortization of intangible assets

 

 

2,470

 

 

 

2,664

 

Provision for credit losses

 

 

1,144

 

 

 

1,205

 

Stock-based compensation

 

 

9,015

 

 

 

6,925

 

Other, net

 

 

(7

)

 

 

76

 

Changes in assets and liabilities

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(5,563

)

 

 

(2,828

)

Deferred costs

 

 

(2,797

)

 

 

(986

)

Other current and non-current assets

 

 

(6,736

)

 

 

(2,257

)

Accounts payable

 

 

(3,229

)

 

 

(828

)

Accrued compensation

 

 

(10,495

)

 

 

(2,988

)

Accrued expenses

 

 

(1,746

)

 

 

(1,052

)

Deferred revenue

 

 

6,349

 

 

 

7,565

 

Operating leases

 

 

(256

)

 

 

(19

)

Net cash provided by operating activities

 

 

4,347

 

 

 

21,605

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(4,355

)

 

 

(3,263

)

Purchases of investments

 

 

(54,977

)

 

 

(14,039

)

Maturities of investments

 

 

65,000

 

 

 

12,500

 

Net cash provided by (used in) investing activities

 

 

5,668

 

 

 

(4,802

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Repurchases of common stock

 

 

(15,226

)

 

 

 

Net proceeds from exercise of options to purchase common stock

 

 

504

 

 

 

2,802

 

Net proceeds from employee stock purchase plan activity

 

 

147

 

 

 

105

 

Payment for contingent consideration

 

 

 

 

 

(164

)

Net cash provided by (used in) financing activities

 

 

(14,575

)

 

 

2,743

 

Effect of foreign currency exchange rate changes

 

 

96

 

 

 

36

 

Net increase (decrease) in cash and cash equivalents

 

 

(4,464

)

 

 

19,582

 

Cash and cash equivalents at beginning of period

 

 

207,552

 

 

 

149,692

 

Cash and cash equivalents at end of period

 

$

203,088

 

 

$

169,274

 

 

See accompanying notes to these condensed consolidated financial statements.

 

 

    SPS COMMERCE, INC.

6

Form 10-Q for the Quarterly Period ended March 31, 2022

 


Table of Contents

 

 

SPS COMMERCE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

NOTE A – General

Business Description

SPS Commerce is a leading provider of cloud-based supply chain management services across our global retail network. Our products make it easier for retailers, suppliers, grocers, distributors, and logistics firms to orchestrate the management of item data, order fulfillment, inventory control, and sales analytics across omnichannel retail channels. SPS Commerce delivers our products using a full-service model whereby our internal experts monitor, update, and boost network performance on our customers’ behalf.

The services offered by SPS Commerce eliminate the need for on-premise software and support staff by taking on that capability on the customer’s behalf. The services we provide enable our customers to increase their supply cycle agility, optimize their inventory levels and sell-through, reduce operational costs and gain increased visibility into customer orders, to help ensure that suppliers, grocers, distributors, and logistics firms can satisfy exacting retailer requirements.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SPS Commerce, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements.

This interim financial information has been prepared under the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission (“SEC”). We have included all normal recurring adjustments considered necessary to provide a fair presentation of our financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Significant Accounting Policies

There were no material changes in our significant accounting policies during the three months ended March 31, 2022. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC, for additional information regarding our significant accounting policies.

Accounting Pronouncements Not Yet Adopted

 

Standard

 

Date of Issuance

 

Description

 

Date of Required

Adoption

 

Effect on the Financial Statements

ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

 

October 2021

 

This amendment requires that an acquirer recognize and

measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, effective for all business combinations in the year of adoption and thereafter.

 

January 2023

 

The adoption of this standard may have a material impact on the purchase accounting for business combinations depending on the specific amount of contract assets and liabilities being acquired.

 

 

    SPS COMMERCE, INC.

7

Form 10-Q for the Quarterly Period ended March 31, 2022

 


Table of Contents

 

 

NOTE B – Revenue

 

We derive our revenues from the following revenue streams:

 

 

Three Months Ended

 

 

 

March 31,

 

(in thousands)

 

2022

 

 

2021

 

Recurring revenues:

 

 

 

 

 

 

 

 

Fulfillment

 

$

84,731

 

 

$

71,404

 

Analytics

 

 

11,296

 

 

 

10,144

 

Other

 

 

1,540

 

 

 

1,253

 

Recurring revenues

 

 

97,567

 

 

 

82,801

 

One-time revenues

 

 

7,626

 

 

 

7,293

 

Total revenue

 

$

105,193

 

 

$

90,094

 

 

Revenues are the amount that reflects the consideration we are contractually and legally entitled to, as well as expect to collect, in exchange for those services.

Recurring Revenues

Recurring revenues consist of recurring subscriptions from customers that utilize our Fulfillment, Analytics, and Other supply chain management products. Revenue for these products is generally recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our contracts with our recurring revenue customers are recurring in nature, generally ranging from monthly to annual, and generally allow the customer to cancel the contract for any reason with 30 to 90 days’ notice. Timing of billings varies by customer and by contract type and generally are either in advance or within 30 days of the service being performed.

Given that the recurring revenue contracts are for one year or less, we have applied the optional exemption to not disclose information about the remaining performance obligations for recurring revenue contracts.

One-time Revenues

One-time revenues consist of set-up fees and miscellaneous fees from customers.

Set-up revenues

Set-up fees are specific for each connection a customer has with a trading partner. These nonrefundable fees are necessary for our customers to utilize our services and do not provide any standalone value. Many of our customers have connections with numerous trading partners.

Set-up fees constitute a material renewal option right that provide customers a significant future incentive that would not be otherwise available to that customer unless they entered into the contract, as the set-up fees will not be incurred again upon contract renewal. As such, set-up fees and related costs are deferred and recognized ratably over two years, which is the estimated period for which a material right is present for our customers.

The table below presents the activity of the portion of the deferred revenue liability relating to set-up fees:

 

 

 

Three Months Ended

 

 

 

March 31,

 

(in thousands)

 

2022

 

 

2021

 

Balance, beginning of period

 

$

14,459

 

 

$

11,118

 

Invoiced set-up fees

 

 

4,003

 

 

 

3,867

 

Recognized set-up fees

 

 

(3,524

)

 

 

(2,883

)

Balance, end of period

 

$

14,938

 

 

$

12,102

 

 

The entire balance of deferred set-up fees will be recognized within two years. Those that will be recognized within the next year are classified as current, whereas the remainder are classified as non-current.

 

    SPS COMMERCE, INC.

8

Form 10-Q for the Quarterly Period ended March 31, 2022

 


Table of Contents

 

Miscellaneous one-time revenues

Miscellaneous one-time fees consist of professional services and testing and certification.

The contract period for these one-time fees is for one year or less and recognized at the time service is provided. We have applied the optional exemption to not disclose information about the remaining performance obligations for miscellaneous one-time fee contracts since they have original durations of one year or less.

NOTE C – Deferred Costs

The deferred costs activity was as follows:

 

 

Three Months Ended

 

 

 

March 31,

 

(in thousands)

 

2022

 

 

2021

 

Balance, beginning of period

 

$

59,720