Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 22, 2023 | Dec. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-39149 | ||
Entity Registrant Name | BILL HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-2661725 | ||
Entity Address, Address Line One | 6220 America Center Drive, Suite 100 | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95002 | ||
City Area Code | 650 | ||
Local Phone Number | 621-7700 | ||
Title of 12(b) Security | Common Stock, $0.00001 par value | ||
Trading Symbol | BILL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 106,605,605 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive proxy statement for its 2023 Annual Meeting of Stockholders (Proxy Statement), to be filed within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, are incorporated by reference in Part III. Except with respect to information specifically incorporated by reference in this Annual Report, the Proxy Statement shall not be deemed to be filed as part hereof. | ||
Entity Central Index Key | 0001786352 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 11.1 |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Mateo, California |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,617,151 | $ 1,596,542 |
Short-term investments | 1,043,110 | 1,108,493 |
Accounts receivable, net | 28,233 | 24,045 |
Acquired card receivables, net | 458,650 | 256,392 |
Prepaid expenses and other current assets | 170,111 | 151,258 |
Funds held for customers | 3,355,909 | 3,142,660 |
Total current assets | 6,673,164 | 6,279,390 |
Non-current assets: | ||
Operating lease right-of-use assets, net | 68,988 | 76,445 |
Property and equipment, net | 81,564 | 56,985 |
Intangible assets, net | 361,427 | 432,583 |
Goodwill | 2,396,509 | 2,362,893 |
Other assets | 54,366 | 47,730 |
Total assets | 9,636,018 | 9,256,026 |
Current liabilities: | ||
Accounts payable | 8,519 | 9,948 |
Accrued compensation and benefits | 32,901 | 29,004 |
Deferred revenue | 26,328 | 31,868 |
Other accruals and current liabilities | 194,733 | 120,080 |
Borrowings from credit facilities, net | 135,046 | 75,097 |
Customer fund deposits | 3,355,909 | 3,142,660 |
Total current liabilities | 3,753,436 | 3,408,657 |
Non-current liabilities: | ||
Deferred revenue | 410 | 2,159 |
Operating lease liabilities | 72,477 | 82,728 |
Convertible senior notes, net | 1,704,782 | 1,697,985 |
Other long-term liabilities | 18,944 | 20,803 |
Total liabilities | 5,550,049 | 5,212,332 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity: | ||
Preferred stock: $0.00001 par value per share; 10,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock; $0.00001 par value per share; 500,000 shares authorized; 106,550 and 104,731 shares issued and outstanding at June 30, 2023 and 2022, respectively | 2 | 2 |
Additional paid-in capital | 4,946,623 | 4,598,737 |
Accumulated other comprehensive loss | (4,488) | (10,217) |
Accumulated deficit | (856,168) | (544,828) |
Total stockholders' equity | 4,085,969 | 4,043,694 |
Total liabilities and stockholders' equity | $ 9,636,018 | $ 9,256,026 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Common stock par value (dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock shares authorized (shares) | 500,000,000 | 500,000,000 |
Common stock issued (shares) | 106,550,000 | 104,731,000 |
Common stock shares outstanding (shares) | 106,550,000 | 104,731,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Revenue | ||||
Total revenue | $ 1,058,468 | $ 641,959 | $ 238,265 | |
Cost of revenue | ||||
Service costs | 151,010 | 105,496 | 56,576 | |
Depreciation and amortization of intangible assets | [1] | 42,967 | 39,508 | 5,230 |
Total cost of revenue | 193,977 | 145,004 | 61,806 | |
Gross profit | 864,491 | 496,955 | 176,459 | |
Operating expenses | ||||
Research and development | 314,632 | 219,818 | 89,503 | |
Sales and marketing | 515,858 | 307,151 | 67,935 | |
General and administrative | 281,278 | 241,174 | 128,116 | |
Depreciation and amortization of intangible assets | [1] | 48,496 | 45,630 | 4,872 |
Total operating expenses | 1,160,264 | 813,773 | 290,426 | |
Loss from operations | (295,773) | (316,818) | (113,967) | |
Other income (expense), net | 72,856 | (13,861) | (25,370) | |
Loss before provision for (benefit from) income taxes | (222,917) | (330,679) | (139,337) | |
Provision for (benefit from) income taxes | 808 | (4,318) | (40,617) | |
Net loss | $ (223,725) | $ (326,361) | $ (98,720) | |
Net loss per share attributable to common stockholders: | ||||
Earnings per share, basic (dollars per share) | $ (2.11) | $ (3.21) | $ (1.19) | |
Earnings per share, diluted (dollars per share) | $ (2.11) | $ (3.21) | $ (1.19) | |
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders: | ||||
Weighted average number of shares outstanding, basic (shares) | 105,976 | 101,753 | 82,813 | |
Weighted average number of shares outstanding, diluted (shares) | 105,976 | 101,753 | 82,813 | |
Subscription and transaction fees | ||||
Revenue | ||||
Total revenue | $ 944,710 | $ 633,365 | $ 232,255 | |
Interest on funds held for customers | ||||
Revenue | ||||
Total revenue | $ 113,758 | $ 8,594 | $ 6,010 | |
[1]Depreciation expense does not include amortization of capitalized internal-use software wage costs. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (223,725) | $ (326,361) | $ (98,720) |
Other comprehensive income (loss): | |||
Net unrealized gain (loss) on investments in available-for-sale securities | 5,729 | (10,117) | (2,520) |
Comprehensive loss | $ (217,996) | $ (336,478) | $ (101,240) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative effect of adjustments | Common stock | Additional paid-in capital | Additional paid-in capital Cumulative effect of adjustments | Accumulated other comprehensive (loss) income | Accumulated deficit | Accumulated deficit Cumulative effect of adjustments |
Beginning balance, shares at Jun. 30, 2020 | 79,635,000 | |||||||
Beginning balance at Jun. 30, 2020 | $ 710,719 | $ 2 | $ 857,044 | $ 2,420 | $ (148,747) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||||
Issuance of common stock as consideration for an acquisition, net of issuance costs, shares | 10,767,000 | |||||||
Issuance of common stock as consideration for an acquisition, net of issuance costs | $ 1,603,031 | 1,603,031 | ||||||
Fair value of replacement awards | 55,275 | 55,275 | ||||||
Equity component of 2025 Notes, net of issuance costs and taxes | 245,066 | 245,066 | ||||||
Purchase of capped calls | (87,860) | (87,860) | ||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units, shares | 3,656,000 | |||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 26,981 | 26,981 | ||||||
Issuance of common stock under the employee stock purchase plan, shares | 446,000 | |||||||
Issuance of common stock under the employee stock purchase plan | 8,864 | 8,864 | ||||||
Stock-based compensation | 68,754 | 68,754 | ||||||
Other comprehensive loss | (2,520) | (2,520) | ||||||
Net loss | (98,720) | (98,720) | ||||||
Ending balance, shares at Jun. 30, 2021 | 94,504,000 | |||||||
Ending balance at Jun. 30, 2021 | 2,529,590 | $ (216,066) | $ 2 | 2,777,155 | $ (245,066) | (100) | (247,467) | $ 29,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs, shares | 5,074,000 | |||||||
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs | 1,341,122 | 1,341,122 | ||||||
Issuance of common stock as consideration for an acquisition, net of issuance costs, shares | 1,788,000 | |||||||
Issuance of common stock as consideration for an acquisition, net of issuance costs | 488,263 | 488,263 | ||||||
Fair value of replacement awards | 26,710 | 26,710 | ||||||
Purchase of capped calls | (37,893) | (37,893) | ||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units, shares | 3,283,000 | |||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 34,024 | 34,024 | ||||||
Issuance of common stock under the employee stock purchase plan, shares | 82,000 | |||||||
Issuance of common stock under the employee stock purchase plan | 12,849 | 12,849 | ||||||
Stock-based compensation | 201,573 | 201,573 | ||||||
Other comprehensive loss | (10,117) | (10,117) | ||||||
Net loss | $ (326,361) | (326,361) | ||||||
Ending balance, shares at Jun. 30, 2022 | 104,731,000 | 104,731,000 | ||||||
Ending balance at Jun. 30, 2022 | $ 4,043,694 | $ 2 | 4,598,737 | (10,217) | (544,828) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock as consideration for an acquisition, net of issuance costs, shares | 40,000 | |||||||
Issuance of common stock as consideration for an acquisition, net of issuance costs | 3,375 | 3,375 | ||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units, shares | 2,703,000 | |||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 13,872 | 13,872 | ||||||
Issuance of common stock under the employee stock purchase plan, shares | 182,000 | |||||||
Issuance of common stock under the employee stock purchase plan | 17,879 | 17,879 | ||||||
Repurchase and retirement of common stock, shares | (1,106,000) | |||||||
Repurchase and retirement of common stock | (87,615) | (87,615) | ||||||
Stock-based compensation | 312,760 | 312,760 | ||||||
Other comprehensive loss | 5,729 | 5,729 | ||||||
Net loss | $ (223,725) | (223,725) | ||||||
Ending balance, shares at Jun. 30, 2023 | 106,550,000 | 106,550,000 | ||||||
Ending balance at Jun. 30, 2023 | $ 4,085,969 | $ 2 | $ 4,946,623 | $ (4,488) | $ (856,168) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (223,725) | $ (326,361) | $ (98,720) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 313,567 | 197,157 | 68,290 |
Amortization of intangible assets | 80,205 | 75,977 | 5,659 |
Depreciation of property and equipment | 11,258 | 9,161 | 4,443 |
Amortization of capitalized internal-use software costs | 4,215 | 2,366 | 907 |
Amortization of debt discount and issuance costs, net of accretion of debt premium | 6,964 | 4,777 | 27,531 |
Amortization of premium (accretion of discount) on investments in marketable debt securities | (37,194) | 11,386 | 4,692 |
Provision for losses on acquired card receivables and other financial assets | 32,189 | 19,879 | 741 |
Non-cash operating lease expense | 9,493 | 8,601 | 3,813 |
Deferred income taxes | (1,361) | (4,075) | (40,617) |
Other | 1,127 | (726) | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (4,482) | (3,032) | (6,535) |
Prepaid expenses and other current assets | (16,844) | (12,970) | 706 |
Other assets | 320 | 5,105 | (12,525) |
Accounts payable | (1,686) | (3,771) | 7,417 |
Other accruals and current liabilities | 34,465 | 7,460 | 22,980 |
Operating lease liabilities | (10,303) | (7,877) | 8,395 |
Other long-term liabilities | (3,097) | (6,749) | 592 |
Deferred revenue | (7,343) | 5,599 | 6,854 |
Net cash provided by (used in) operating activities | 187,768 | (18,093) | 4,623 |
Cash flows from investing activities: | |||
Cash paid for acquisition, net of acquired cash and cash equivalents | (28,902) | (144,349) | (556,090) |
Purchases of corporate and customer fund short-term investments | (2,743,763) | (2,801,697) | (2,070,296) |
Proceeds from maturities of corporate and customer fund short-term investments | 3,283,961 | 1,902,474 | 1,104,532 |
Proceeds from sale of corporate and customer fund short-term investments | 11,607 | 55,744 | 142,665 |
Increase in acquired card receivables, net | (234,256) | (129,178) | (26,495) |
Purchases of property and equipment | (7,589) | (5,377) | (18,902) |
Capitalization of internal-use software costs | (23,614) | (10,259) | (2,304) |
Proceeds from beneficial interest | 2,080 | 6,699 | 0 |
Other | (239) | (1,359) | 0 |
Net cash provided by (used in) investing activities | 259,285 | (1,127,302) | (1,426,890) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock upon public offering, net of underwriting discounts and other offering costs | 0 | 1,341,122 | 0 |
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | 0 | 560,075 | 1,129,379 |
Purchase of capped calls | 0 | (37,893) | (87,860) |
Increase in customer fund deposits liability and other | 204,390 | 941,003 | 563,291 |
Repurchase of common stock | (87,615) | 0 | 0 |
Increase in prepaid card deposits | 26,584 | 29,886 | 0 |
Proceeds from line of credit borrowings | 60,000 | 37,500 | 0 |
Payments on line of credit and bank borrowings | 0 | (40,000) | (2,300) |
Proceeds from exercise of stock options | 13,872 | 34,024 | 28,209 |
Proceeds from issuance of common stock under the employee stock purchase plan | 17,879 | 12,849 | 8,864 |
Net cash provided by financing activities | 235,110 | 2,878,566 | 1,639,583 |
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents | (38) | (149) | 0 |
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | 682,125 | 1,733,022 | 217,316 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year | 3,542,715 | 1,809,693 | 1,592,377 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | 4,224,840 | 3,542,715 | 1,809,693 |
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | |||
Cash and cash equivalents | 1,617,151 | 1,596,542 | 509,615 |
Restricted cash included in other current assets | 87,322 | 85,252 | 10,977 |
Restricted cash included in other assets | 13,810 | 6,724 | 6,875 |
Restricted cash and restricted cash equivalents included in funds held for customers | 2,506,557 | 1,854,197 | 1,282,226 |
Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year | 4,224,840 | 3,542,715 | 1,809,693 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest during the period | 7,440 | 4,867 | 112 |
Cash paid for income taxes during the period | 1,266 | 0 | 0 |
Noncash investing and financing activities: | |||
Payable on purchases of property and equipment and internal-use software costs | 174 | 1,936 | 664 |
Fair value of shares issued as consideration for acquisition | 3,375 | 488,494 | 1,603,543 |
Fair value of stock-based awards assumed in acquisition | 0 | 21,724 | 55,275 |
Fair value of earn-out consideration for acquisition | 10,762 | 0 | 0 |
Recognition of beneficial interest | $ 1,682 | $ 4,690 | $ 0 |
The Company and Its Significant
The Company and Its Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
The Company and Its Significant Accounting Policies | THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES Bill.com, Inc. was incorporated in the State of Delaware in April 2006. BILL.com Holdings, Inc., was incorporated in the State of Delaware in August 2018. In November 2018, Bill.com, Inc. consummated a reorganization with Bill.com Holdings, Inc. (renamed BILL Holdings, Inc. in February 2023), resulting in the latter becoming the parent entity of Bill.com, Inc. Bill.com, Inc. was subsequently converted into a limited liability company and renamed Bill.com, LLC. BILL Holdings, Inc. and its wholly owned subsidiaries are collectively referred to as the “Company”. The Company is a provider of software-as-a-service, cloud-based payments, and spend and expense management products, which allow users to automate accounts payable and accounts receivable transactions, enable businesses to easily connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency. Follow-on Offering On September 24, 2021, the Company closed a public offering in which the Company issued and sold a total of 5,073,529 shares of common stock at a public offering price of $272.00 per share. The Company received $1.3 billion in net proceeds from this public offering, after deducting underwriting discounts, commissions, and other offering costs of $38.9 million. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and were prepared in conformity with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC). All intercompany accounts and transactions have been eliminated. Segment Reporting The Company operates as one operating segment because its chief operating decision maker, who is the Chief Executive Officer, reviews its financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. The Company's long-lived assets are mainly located in the United States (U.S.) and revenue is mainly generated in the U.S. Long-lived assets outside the U.S. are not material as of June 30, 2023 and 2022. Total revenue from external customers outside of the U.S. was approximately 3% of consolidated total revenue during the years ended June 30, 2023 and 2022. There were no revenue from external customers outside of the U.S. for the year ended June 30, 2021. Business Combinations The Company accounts for acquisitions using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of the identifiable assets and liabilities is recorded as goodwill. The determination of the fair value of assets acquired and liabilities assumed involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the date of the acquisition. Significant management inputs used in the estimation of fair value of assets acquired and liabilities assumed include, but are not limited to, expected future cash flows, future changes in technology, estimated replacement costs, discount rates, and assumptions about the period of time the brand will continue to be used in the Company’s product portfolio. Where appropriate, external advisers are consulted to assist in the determination of fair value. For non-observable market values, fair value has been determined using acceptable valuation methods (e.g., relief from royalty methods). The results of operations for businesses acquired are included in the financial statements from the acquisition date. Acquisition-related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred. During the measurement period, not to exceed one year from the date of acquisition, Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make various estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Management regularly assesses these estimates, including, but not limited to useful lives of long-lived assets; capitalization of internal-use software costs; incremental borrowing rates for right-of-use (ROU) operating lease assets, and operating lease liabilities; the estimate of losses on accounts receivable, acquired card receivables and other financial assets; accrual for rewards; variable consideration used in revenue recognition for certain contracts; benefit periods used to amortize deferred costs; reserve for losses on funds held for customers; inputs used to value certain stock-based compensation awards; and valuation of income taxes. The Company evaluates these estimates and assumptions and adjusts them accordingly. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Funds Held for Customers and Customer Fund Deposits Funds held for customers and the corresponding liability on customer fund deposits represent funds that are collected from customers for payments to their suppliers and funds that are collected on behalf of customers. Generally, these funds held for customers are initially deposited in separate bank accounts until remitted to the customers’ suppliers or to the customers. Funds held for customers also include amounts that are held by or deposited into the accounts of payment processing companies and receivables from customers. The funds held for customers are restricted for the purpose of satisfying the customers’ fund obligations and are not available for general business use by the Company. The Company partially invests funds held for customers in highly liquid investments with maturities of three months or less, consisting of money market funds and marketable debt securities, and in marketable debt securities with maturities of more than three months up to thirteen months at the time of purchase. Funds held for customers that are invested in marketable debt securities are classified as available-for-sale. These investments are carried at fair value, with unrealized gains or losses included in accumulated other comprehensive loss on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss. The Company contractually earns interest on funds held for customers with associated counterparties. Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash and cash equivalents consist of cash in banks, highly liquid investments with maturities of three months or less at the time of purchase, and securities purchased under overnight reverse repurchase agreements. Restricted cash consists of (i) amounts restricted under deposit account control agreements, (ii) minimum cash balances that are required to be maintained by certain banks, (iii) cash collateral required by the Company’s lessors to satisfy letter of credit requirements under its lease agreements, (iv) cash collateral required by a bank in connection with the Company’s money transmission activities, and (v) cash in bank and cash deposits held by payment processing companies included in funds held for customers. Restricted cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase that are included in funds held for customers. Except for the restricted cash included in funds held for customers, the current and non-current portion of the restricted cash is included in prepaid expenses and other current assets and in other assets, respectively, in the accompanying consolidated balance sheets. Short–term Investments The Company invests excess cash in a diversified portfolio of highly rated marketable debt securities with maturities of more than three months. These securities are classified as available-for-sale and recorded at fair value. The Company determines the appropriate classification of investments in marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. After consideration of risk versus reward attributes and liquidity requirements, the Company may sell these debt securities prior to their stated maturities. As the Company views these securities as available to support current operations, the Company classifies highly liquid securities with maturities beyond 12 months as current assets. Unrealized gains or losses are included in accumulated other comprehensive income (loss) on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss. An impairment loss is recognized when the decline in fair value of the marketable debt securities is determined to be other than temporary. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which will be at maturity. The Company periodically evaluates its investments to determine if impairment charges are required. The Company determined that there was no other-than-temporary impairment on short-term investments during each of the years ended June 30, 2023, 2022, and 2021. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, restricted cash, restricted cash equivalents, short-term investments, accounts receivable, and acquired card receivables (collectively referred to as Financial Assets). The Company maintains its cash, cash equivalents, restricted cash, restricted cash equivalents and short-term investments with large multinational financial institutions that may at times exceed federally insured limits. In connection with recent instability in the U.S. banking system, the Company's management has taken incremental precautions to safeguard its assets and evaluate the nature and extent of its financial partnerships. Management believes that the financial institutions with which the Company does business are financially sound with minimal credit risk. Management further believes the associated risk of concentration for the Company’s investments is mitigated by holding a diversified portfolio of highly rated investments consisting of money market funds and short-term debt securities. The Company performs credit evaluations to verify the credit quality of its financial assets and determine any at-risk receivables. An allowance for potential credit losses on Financial Assets is recognized, if material. As of June 30, 2023 and 2022, the allowance for potential credit losses related to accounts receivable and acquired card receivables totaled approximately $15.9 million and $5.8 million, respectively. These amounts do not include the immaterial allowance for potential credit losses on the purchase of card receivables that have been authorized but not cleared at the end of the periods (see Note 15). There were no customers that exceeded 10% of the Company’s total revenue during each of the years ended June 30, 2023, 2022, and 2021. Accounts Receivable and Unbilled Revenue Accounts receivable, which consist primarily of fees from customers, including accounting firm and financial institution customers, are recorded at the invoiced amount, net of an allowance for credit losses. Unbilled revenue is recorded based on amounts that the Company expects to invoice to customers in the subsequent period. The allowance for credit losses related to accounts receivable and unbilled revenue is based on the Company’s assessment of the collectability of the receivables. The Company regularly reviews the adequacy of the allowance for credit losses by considering the age of each outstanding invoice and the Acquired Card Receivables The portfolios of acquired card receivables are U.S. based commercial accounts diversified across various geographies and industries. The Company manages credit risk based on common risk characteristics including financial condition of the users of the spend and expense management application. Acquired card receivables are reported at their principal amounts outstanding net of allowance for credit losses. Acquired card receivables are deemed to be held for investment when such receivables are not acquired specifically for resale. As part of the onboarding process, users of the Company’s free spend and expense management application are provided with a credit limit subject to a credit policy and underwriting process which is periodically re-performed based on risk indicators and the size of the credit limit. Spending businesses may over fund their accounts through payments in excess of the outstanding balance. Such over funded amounts are recorded as prepaid card deposits, which are included in other accruals and current liabilities in the accompanying consolidated balance sheets. Acquired card receivables represent amounts due on card transactions integrated with the spend and expense management application. The Company is contractually obligated to purchase all card receivables from U.S.-based card issuing banks (Issuing Banks) including authorized transactions that have not cleared at the Issuing Banks. Acquired card receivables are recorded at the time a transaction clears the Issuing Banks and generally payment for the card receivables is made on the day the transaction clears the Issuing Banks. The acquired card receivables portfolio consists of a large group of smaller balances from spending businesses across a wide range of industries. The allowance for credit losses reflects the Company’s estimate of uncollectible balances resulting from credit and fraud losses and is based on the determination of the amount of expected losses inherent in the acquired card receivable as of the reporting date. An estimate of lifetime expected credit losses is performed by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period beyond the balance sheet date. In estimating expected credit losses, the Company uses models that entail a significant amount of judgment. The primary areas of judgment used in measuring the quantitative components of the Company’s reserves relate to the attributes used to segment the portfolio, the determination of the historical loss experience look-back period, and the weighting of historical loss experience by monthly cohort. The Company uses these models and assumptions to determine the reserve rates applicable to the outstanding acquired card receivable balances to estimate reserves for expected credit losses. Based on historical loss experience, the probability of default decreases over time, therefore the attribute used to segment the portfo lio is the length of time since an account’s credit limit origination. The Company’s models use past loss experience to estimate the probability of default and exposure at default by aged balances. The Company also estimates the likelihood and magnitude of recovery of previously written off loans based on historical recovery experience. Additionally, management evaluates whether to include qualitative reserves to cover losses that are expected but may not be adequately represented in the quantitative methods or the economic assumptions. The qualitative reserves address possible limitations within the models or factors not included within the models, such as external conditions, changes in underwriting strategies, the nature and volume of the portfolio, and the volume and severity of past due accounts. In general, acquired card receivables are written off after substantially the entire balance becomes 120 days delinquent. Assumptions regarding expected losses are reviewed periodically and may be impacted by actual performance of the acquired card receivables and changes in any of the factors discussed above. As of June 30, 2023 and 2022, the allowance for potential credit losses on acquired card receivables shown on the consolidated balance sheets totaled $15.5 million and $5.4 million, respectively. These amounts do not include the immaterial allowance for potential credit losses on purchase of card receivables that have been authorized but not cleared at the end of the periods (see Note 15). Derivative Instruments The Company retains a beneficial interest derivative in the form of a deferred purchase price on card receivables sold. This derivative is not designated as a hedging instrument, and is initially recorded at fair value, with subsequent changes in fair value recorded through other gains and losses. The Company does not use derivative instruments for speculative or trading purposes. The beneficial interest derivative is a residual interest in collections on card receivables sold, and serves to align the economic interests of the Company as servicer with those of the purchasing bank. Effective August 2022, the Company ceased selling acquired card receivables (see Note 7). Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, generally one The Company capitalizes internal and external direct costs incurred related to obtaining or developing internal-use software. Costs incurred during the application development stage are capitalized and are amortized using the straight-line method over the estimated useful lives of the software, generally three years commencing on the first day of the month following when the software is ready for its intended use. Costs related to planning and other preliminary project activities and post-implementation activities are expensed as incurred. Goodwill Goodwill represents the excess of the purchase price of the acquisition over the net fair value of identifiable assets acquired and liabilities assumed. Goodwill amounts are not amortized. Intangible Assets The Company generally recognizes assets for customer relationships, developed technology and finite-lived trade names from an acquisition. Finite-lived intangible assets are carried at acquisition cost less accumulated amortization. Such amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets, generally from three Impairment Goodwill is tested annually at the reporting unit level for impairment during the fourth fiscal quarter or more frequently if facts or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. The Company has one reporting unit; therefore, all of its goodwill is associated with the entire company. Management has the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the Company is less than the carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of the Company is less than the carrying amount, a quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company also has the option to bypass the qualitative assessment and perform the quantitative assessment. The Company reviews the valuation of long-lived assets, including property and equipment and finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The recoverability of long-lived assets or asset groups is calculated based on the estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset. Impairment testing is performed at the asset group level. Based on management's assessment, the Company did not recognize any impairment losses on its goodwill, finite-lived intangible assets or other long-lived assets during the periods presented herein. Leases The Company determines if an arrangement is a lease, or contains a lease, by evaluating whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. The Company determines the classification of the lease, whether operating or financing, at the lease commencement date, which is the date the leased assets are made available for use. The Company uses the non-cancelable lease term when recognizing the ROU assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. The Company accounts for lease components and non-lease components as a single lease component. Modifications are assessed to determine whether incremental differences result in new contract terms and accounted for as a new lease or whether the additional right of use should be included in the original lease and continue to be accounted with the remaining ROU asset. Operating lease ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives. Variable costs, such as common area maintenance costs, are not included in the measurement of the ROU assets and lease liabilities, but are expensed as incurred. As the implicit rate of the leases is not determinable, the Company uses an incremental borrowing rate in determining the present value of the lease payments. Lease expenses are recognized on a straight-line basis over the lease term. The Company does not recognize ROU assets on lease arrangements with a term of 12 months or less. Lease expense for such arrangements is recognized on a straight-line basis over the term of the lease. Accrued Rewards Spending businesses participate in rewards programs based on card transactions. The Company records a rewards liability that represents the estimated cost for rewards owed to spending businesses. Rewards liabilities are impacted over time by redemption costs and by spending businesses meeting eligibility requirements. Changes in the rewards liabilities during the period are recognized as an increase or decrease to sales and marketing expense in the accompanying consolidated statements of operations. The accrued rewards liability, which was $55.4 million and $36.2 million as of June 30, 2023 and 2022, respectively, is included in other accruals and current liabilities in the accompanying consolidated balance sheets. The rewards expense, which was $173.9 million, $95.2 million, and $4.5 million, during the years ended June 30, 2023, 2022, and 2021, respectively, is included in sales and marketing expenses in the accompanying consolidated statements of operations. Revenue Recognition The Company enters into contracts with small and midsize businesses (SMB) and accounting firm customers to provide access to the functionality of the Company’s cloud-based payments platform to process transactions. These contracts are either monthly contracts paid in arrears or upfront, or annual arrangements paid up front. The Company charges its SMB and accounting firm customers subscription fees for access to its platform either based on the number of users or per customer account and the level of service. The Company generally also charges these customers transaction fees based on transaction volume and the category of transaction. The contractual price for subscription and transaction services is based on either negotiated fees or the rates published on the Company’s website. The Company accounts for its annual and monthly contracts as a series of distinct services that are satisfied over time. The Company determines the transaction price for such contracts by estimating the total consideration to be received over the contract term from subscription and transaction fees. The Company recognizes the transaction price as a single performance obligation based on the proportion of transactions processed to the total estimated transactions to be processed over the contract period. Revenues recognized exclude amounts collected on behalf of third parties, such as sales taxes collected and remitted to governmental authorities. The Company enables SMB and accounting firm customers to make virtual card payments to their suppliers. The Company also facilitate the extension of credit to spending businesses through the Divvy product in the form of Divvy cards. The spending businesses utilize the credit on Divvy cards as a means of payment for goods and services provided by their suppliers. Virtual card payments and Divvy cards are originated through agreements with Issuing Banks. The agreements with the Issuing Banks allow for card transactions on the MasterCard and Visa networks. For each virtual card and Divvy card transaction, suppliers are required to pay interchange fees to the issuer of the card. Based on the Company's agreements with its Issuing Banks, the Company recognizes the interchange fees as revenue gross or net of rebates received from the Issuing Bank based on the Company's determination of whether it is the principal or agent under the agreements. The Company enters into multi-year contracts with financial institution customers to provide access to the Company’s cloud-based payments platform to process transactions. These contracts typically include fees for initial implementation services that are paid during the period the implementation services are provided as well as fees for subscription and transaction processing services, which are subject to guaranteed monthly minimum fees that are paid monthly over the contract term. These contracts enable the financial institutions to provide their customers with access to online bill pay services through the financial institutions’ online platforms. Implementation services are required up-front to establish an infrastructure that allows the financial institutions’ online platforms to communicate with the Company’s online platform. A financial institution’s customers cannot access online bill pay services until implementation is complete. Initial implementation services and transaction processing services are not capable of being distinct from the subscription for online bill pay services and are combined into a single performance obligation. The total consideration in these contracts varies based on the number of users and transactions to be processed. The Company has determined it meets the variable consideration allocation exception and therefore recognizes guaranteed monthly payments and any overages as revenue in the month they are earned. Implementation fees are recognized based on the proportion of transactions processed to the total estimated transactions to be processed over the contract period. The ability of the financial institution customers to renew their contracts without having to pay up-front implementation fees again could provide them a material right. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. Interest on Funds Held for Customers The Company also earns revenue from interest earned on funds held for customers that are initially deposited into the Company’s bank accounts that are separate from the Company’s operating cash accounts until remitted to the customers or their suppliers. The Company partially invests funds held for customers in highly liquid investments with maturities of three months or less and in marketable debt securities with maturities of three months to one year at the time of purchase. Interest and fees earned are recognized based on the effective interest method and also include the accretion of discounts and the amortization of premiums on marketable debt securities. Deferred Revenue Subscription and transaction fees from customers for which the Company has annual or multi-year contracts are generally billed in advance. These fees are initially recorded as deferred revenue and subsequently recognized as revenue as the performance obligation is satisfied. Deferred Costs Deferred costs consist of (i) deferred sales commissions that are incremental costs of obtaining customer contracts and (ii) deferred service costs, primarily direct payroll costs, for implementation services provided to customers prior to the launching of the Company’s products for general availability (go-live) to customers. Sales commissions paid on renewals are not material and are not commensurate with sales commissions paid on the initial contract. Deferred sales commissions are amortized ratably over the estimated Service Costs Service costs consist primarily of personnel-related costs, including stock-based compensation expenses, for the Company’s customer success and payment operations teams, outsourced support services for the Company's customer success team, costs that are directly attributed to processing customers’, and spending businesses' transactions (such as the cost of printing checks, postage for mailing checks, fees associated with the issuance and processing of card transactions, fees for processing payments, such as ACH, check and cross-border wires), direct and amortized costs for implementing and integrating the Company’s platform into the customers’ systems, costs for maintaining, optimizing, and securing the Company’s cloud payments infrastructure, amortization of capitalized internal-use software (excluding capitalized stock-based compensation), fees on the investment of customer funds, and allocation of overhead costs. Research and Development Costs incurred in research and development, excluding development costs eligible for capitalization as internal-use software, are expensed as incurred. Stock-based Compensation The Company measures stock-based compensation for stock options and purchase rights issued under the Employee Stock Purchase Plan (ESPP) at fair value on the date of grant using the Black-Scholes option-pricing model. The Company measures stock-based compensation for restricted stock units (RSUs) and market-based RSUs based on the closing price of the Company’s stock and using the Monte Carlo simulation model, respectively, on the date of grant. The Company measures stock-based compensation for performance-based awards at fair value on the date of grant by using the Black-Scholes valuation option-pricing model or other valuation technique depending on the nature of the award. Awards that are classified as liabilities are remeasured at fair value at the end of each reporting period. The Company recognizes compensation costs on a straight-line basis over the requisite service period, which is generally the vesting term of four years for stock options and RSUs, the offering period of one year for purchase rights under the ESPP, and the requisite period of one to three years for market-based RSUs. Stock compensation costs are reduced by the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the forfeiture rate based on its historical experience for annual grant years where the majority of the vesting terms have been satisfied. The Company recognizes compensation costs for performance-based awards over the vesting period if it is probable that the performance condition will be achieved. The Black-Scholes option-pricing model and Monte Carlo simulation model require the use of highly subjective assumptions which determine the fair value of stock-based awards. The main assumptions used in the Black-Scholes option-pricing model include: Expected term – The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the stock-based awards. Expected volatility – The expected volatility was estimated based on the his |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The Company generates revenue primarily from subscription and transaction fees. The table below shows the Company’s revenue from subscription and transaction fees, which are disaggregated by sales channel, and revenue from interest on funds held for customers (in thousands). Year ended June 30, 2023 2022 2021 SMBs, accounting firms, spending businesses and other $ 901,602 $ 603,171 $ 218,227 Financial institutions 43,108 30,194 14,028 Total subscription and transaction fees 944,710 633,365 232,255 Interest on funds held for customers 113,758 8,594 6,010 Total revenue $ 1,058,468 $ 641,959 $ 238,265 Deferred revenue Fees from customers with which the Company has annual or multi-year contracts are generally billed in advance. These fees are initially recorded as deferred revenue and subsequently recognized as revenue as the performance obligation is satisfied. During the year ended June 30, 2023, the Company recognized approximately $32 million of revenue that was included in the deferred revenue balance as of June 30, 2022. Remaining performance obligations The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized as revenue. As of June 30, 2023, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $131.1 million. Of the total remaining performance obligations, the Company expects to recognize approximately 77% within two years and 23% over the next three Unbilled revenue Unbilled revenue consists of revenue recognized that has not been billed to the customers yet. The unbilled revenue amounted to $14.0 million and $11.4 million as of June 30, 2023 and 2022, respectively. Deferred costs Deferred costs consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Deferred sales commissions: Current $ 6,523 $ 5,460 Non-current 12,317 9,187 Total deferred sales commissions $ 18,840 $ 14,647 Deferred service costs: Current $ 904 $ 720 Non-current 2,221 3,433 Total deferred service costs $ 3,125 $ 4,153 The current portion of deferred costs is included in prepaid expenses and other current assets and the non-current portion is included in other assets in the accompanying consolidated balance sheets. The amortization of deferred sales commissions, which is included in sales and marketing in the accompanying |
Business Combination
Business Combination | 12 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Business Combination | BUSINESS COMBINATION Fiscal 2022 Acquisition On September 1, 2021, the Company acquired 100% of the outstanding equity interests of Invoice2go, LLC, and Cimrid Pty, Ltd (together, Invoice2go). The results of Invoice2go's operations have been included in the accompanying consolidated financial statements since the acquisition date. Invoice2go provides mobile-first accounts receivable software that empowers SMBs and freelancers to grow their client base, manage invoicing and payments, and build their brand. Invoice2go has operations in the U.S. and in Australia, and serves a large global customer base of SMBs. The acquisition of Invoice2go will enhance the Company’s ability to provide an expanded product solution to enable SMBs to manage accounts payable, corporate card spend, and accounts receivable all in one place. Additionally, the acquisition will expand the market opportunity for the Company by offering Invoice2go's product to its existing customers and network members and vice versa. The acquisition purchase consideration totaled $674.3 million, which consisted of the following (in thousands): Equity consideration (1) $ 510,218 Cash 164,087 Total $ 674,305 (1) This includes 1,788,372 shares of the Company’s common stock issued with a fair value based upon the opening market price on the acquisition date. This also includes the stock options assumed to replace stock options that were outstanding on the acquisition date under Invoice2go's 2014 Equity Incentive Plan. The fair value of these stock options was $21.7 million, which was the amount attributable to the pre-combination requisite service period. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash and cash equivalents $ 19,738 Accounts receivable and other assets 4,518 Intangible assets 91,219 Total identifiable assets acquired 115,475 Accounts payable and other liabilities (26,618) Net identifiable assets acquired 88,857 Goodwill 585,448 Net assets acquired $ 674,305 The preliminary fair values allocated to the identifiable intangible assets (in thousands) and their estimated useful lives are as follows: Preliminary Weighted average Customer relationships $ 61,269 10.0 Developed technology 15,908 3.0 Trade name 14,042 3.0 Total $ 91,219 Customer relationships were measured at fair value using the multiple-period excess earnings method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue and costs associated with existing customers, and a discount rate of 12.3%. Developed technology was measured at fair value using the relief-from-royalty method of the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from existing technology, a pre-tax royalty rate of 15.0%, and a discount rate of 12.3%. Trade name was measured at fair value using the relief-from-royalty method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from the trade name, a pre-tax royalty rate of 2.5%, and a discount rate of 12.3%. The $585.4 million goodwill is attributable primarily to the expected synergies and economies of scale expected from combining the operations of both entities, and intangible assets that do not qualify for separate recognition, including assembled workforce acquired through the acquisition. None of the goodwill is expected to be deductible for income tax purposes. As a result of the adoption of ASU 2021-08 Business Combinations (Topic 805)— Accounting for Contract Assets and Contract Liabilities from Contracts with Customers on October 1, 2021, retrospectively to September 1, 2021, the Company recorded adjustments of $8.0 million to increase goodwill and deferred revenue, and an immaterial amount to deferred income tax liability. The amounts recorded as measurement period adjustments were not material during the 12-month measurement period. The Company recognized $3.7 million of acquisition-related costs that were expensed during the year ended June 30, 2022. These costs are shown as part of general and administrative expenses in the accompanying consolidated statements of operations. The amount of Invoice2go’s revenue and net loss, which includes amortization of intangible assets, from the acquisition date of Invoice2go that were included in the Company’s consolidated statements of operations during the year ended June 30, 2022 were approximately $32.9 million and $32.0 million, respectively. Unaudited Pro Forma Financial Information The unaudited pro forma information below summarizes the combined results (in thousands) of the Company and Invoice2go as if the Company’s acquisition of Invoice2go closed on July 1, 2020, but does not necessarily reflect the combined actual results of operations of the Company and Invoice2go that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma information reflects certain adjustments that were directly attributable to the acquisition of Invoice2go, including additional depreciation and amortization adjustments for the fair value of the assets acquired and liabilities assumed. The pro forma net loss for the year ended June 30, 2022 was adjusted to exclude nonrecurring acquisition-related costs of $19.0 million. The pro forma net loss for the year ended June 30, 2021 was adjusted to exclude nonrecurring acquisition-related costs of $20.6 million. Year ended June 30, 2022 2021 Revenue $ 648,476 $ 274,842 Net loss $ (327,136) $ (149,003) Fiscal 2021 Acquisition On June 1, 2021, the Company acquired 100% of the outstanding equity interests of DivvyPay, Inc. (Divvy). The results of Divvy’s operations have been included in the consolidated financial statements since the acquisition date. Divvy offers a cloud-based spend management application and smart corporate cards to SMBs in the U.S. The acquisition of Divvy will enhance the Company’s ability to provide an expanded solution to enable SMBs to manage accounts payable, corporate card spend, and accounts receivable all in one place. Additionally, the acquisition will expand the market opportunity for the Company by offering a spend management application combined with smart corporate cards to its existing customers and network members. The acquisition purchase consideration totaled $2.3 billion, which consisted of the following (in thousands): Equity consideration (1) $ 1,658,818 Cash 664,779 Total $ 2,323,597 (1) This includes 10,767,140 shares of the Company’s common stock issued with a fair value based upon the opening market price on the acquisition date. This also includes the stock options assumed to replace stock options that were granted after May 1, 2019 under Divvy’s 2016 Equity Incentive Plan and were outstanding on the acquisition date. The fair value of these stock options was $55.3 million, which was the amount attributable to the pre-combination requisite service period. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash $ 108,689 Acquired card receivables 159,784 Accounts receivable 7,435 Card receivables held for sale 12,730 Property and equipment 15,805 Intangible assets 423,000 Prepaid expenses and other assets 57,669 Total identifiable assets acquired 785,112 Accounts payable and other liabilities (153,855) Outstanding borrowings from credit facilities (79,703) Total liabilities assumed (233,558) Net identifiable assets acquired 551,554 Goodwill 1,772,043 Net assets acquired $ 2,323,597 The fair values allocated to the identifiable intangible assets (in thousands) and their estimated useful lives are as follows: Fair value Weighted average useful life (in years) Customer relationships $ 198,000 10.0 Developed technology 191,000 6.0 Trade name 34,000 3.0 Total $ 423,000 Following the acquisition of Divvy, the Company had a period of not more than 12 months to finalize the fair values of assets acquired and liabilities assumed, including valuations of identifiable intangible assets and indemnification asset related to certain assumed liabilities at the acquisition date. During the 12-month measurement period, the Company remeasured the fair value of the leases acquired and the replacement stock-based awards included in the purchase consideration. The effect of these measurement period adjustments resulted in a decrease of goodwill by $2.7 million. There were no other material adjustments made during the 12-month measurement period related to the acquisition of Divvy. Customer relationships were measured at fair value using the multiple-period excess earnings method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue and costs associated with existing customers, and a discount rate of 16.0%. Developed technology was measured at fair value using the relief-from-royalty method of the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from existing technology, a pre-tax royalty rate of 15.0%, and a discount rate of 16.0%. Trade name was measured at fair value using the relief-from-royalty method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from the trade name, a pre-tax royalty rate of 1.0%, and a discount rate of 16.0%. The $1.8 billion goodwill is attributable primarily to the expected synergies and economies of scale expected from combining the operations of both entities, and intangible assets that do not qualify for separate recognition, including assembled workforce acquired through the acquisition. Goodwill is not expected to be deductible for income tax purposes. As of the acquisition date, the fair value of card receivables held for sale, which approximates the gross contractual amount, was $12.7 million. These receivables were substantially settled as of June 30, 2021. Pursuant to the terms of the merger agreement, the Company recognized an indemnification asset of $13.4 million and $20.4 million related to certain assumed liabilities at the acquisition date as of June 30, 2022 and 2021, respectively. The indemnification asset was measured and recognized on the same basis and at the same time as the indemnified liabilities. The Company recognized $15.5 million of acquisition-related costs that were expensed during the year ended June 30, 2021. These costs are shown as part of general and administrative expenses in the accompanying consolidated statements of operations. The amounts of Divvy’s total revenue and net loss that were included in the Company’s consolidated statement of operations from the acquisition date through June 30, 2021 were $10.3 million and $11.4 million, respectively. Unaudited Pro Forma Financial Information The unaudited pro forma information does not necessarily reflect the actual results of operations of the combined entities that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma information reflects certain adjustments that were directly attributable to the acquisition of Divvy, including additional depreciation and amortization adjustments for the fair value of the assets acquired and liabilities assumed. The pro forma net loss for the year ended June 30, 2021 was adjusted to exclude nonrecurring acquisition related costs of $2.3 million. Below is the unaudited pro forma financial information of the combined results of operations of the Company and Divvy as if the acquisition occurred on July 1, 2019 (in thousands). Year ended 2021 Total revenue $ 307,618 Net loss $ (223,470) |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT The Company measures and reports its cash equivalents, short-term investments, funds held for customers that are invested in money market funds and marketable debt securities, and contingent consideration at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. In determining fair value, the Company utilizes quoted market prices, or valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and also considers counterparty credit risk in its assessment of fair value. The following tables set forth the fair value of assets and liabilities that were measured at fair value on a recurring basis based on the three-tier fair value hierarchy as of the dates presented (in thousands): June 30, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,131,621 $ — $ — $ 1,131,621 Certificates of deposit — 2,578 — 2,578 Corporate bonds — 45,301 — 45,301 U.S. treasury securities 44,856 — — 44,856 1,176,477 47,879 — 1,224,356 Short-term investments: Corporate bonds — 479,483 — 479,483 U.S. treasury securities 408,368 — — 408,368 U.S. agency securities — 57,967 — 57,967 Asset-backed securities — 51,193 — 51,193 Certificates of deposit — 46,099 — 46,099 408,368 634,742 — 1,043,110 Funds held for customers: Restricted cash equivalents Money market funds 713,469 — — 713,469 713,469 — — 713,469 Short-term investments Corporate bonds — 433,920 — 433,920 Certificates of deposit — 233,291 — 233,291 U.S. agency securities — 27,458 — 27,458 Asset-backed securities — 70,661 — 70,661 U.S. treasury securities 81,074 — — 81,074 81,074 765,330 — 846,404 Total assets measured at fair value $ 2,379,388 $ 1,447,951 $ — $ 3,827,339 Liabilities Contingent consideration (1) — — (12,035) — Total liabilities measured at fair value $ — $ — $ (12,035) $ — (1) The Company used the probability-weighted discounted cash flow method to estimate the contingent consideration. The significant inputs used in the fair value measurement of the contingent consideration are the probability of payout and discount rate. As these inputs are not based on observable market data, the liability represents a Level 3 measurement within the fair value hierarchy. June 30, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,424,259 $ — $ — $ 1,424,259 Corporate bonds — 11,430 — 11,430 1,424,259 11,430 — 1,435,689 Short-term investments: Corporate bonds — 597,204 — 597,204 U.S. treasury securities 421,728 — — 421,728 Asset-backed securities — 51,406 — 51,406 Certificates of deposit — 38,155 — 38,155 421,728 686,765 — 1,108,493 Funds held for customers: Restricted cash equivalents Money market funds 34,703 — — 34,703 Corporate bonds — 133,557 — 133,557 34,703 133,557 — 168,260 Short-term investments Corporate bonds — 807,685 — 807,685 Certificates of deposit — 397,533 — 397,533 Municipal bonds — 6,516 — 6,516 Asset-backed securities — 69,912 — 69,912 U.S. treasury securities 3,072 — — 3,072 3,072 1,281,646 — 1,284,718 Beneficial interest derivative on card receivables sold — — 398 398 Total assets measured at fair value $ 1,883,762 $ 2,113,398 $ 398 $ 3,997,558 There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented. The fair values of the Company’s Level 1 instruments were derived from quoted market prices and active markets for these specific instruments. The valuation techniques used to measure the fair values of Level 2 instruments were derived from non-binding market consensus prices that were corroborated with observable market data, quoted market prices for similar instruments, or pricing models. The Company has $575 million and $1.15 billion in aggregate principal amount of its 0% convertible senior notes due in 2027 (2027 Notes) and in 2025 (2025 Notes, together with the 2027 Notes, the Notes), respectively, outstanding as of June 30, 2023. The Company carries the Notes at par value, less the unamortized issuance costs in the accompanying consolidated balance sheets. The estimated fair value of the 2027 Notes and 2025 Notes, which is presented for disclosure purposes only, was approximately $473.7 million and $1.19 billion, respectively, as of June 30, 2023. The fair value was based on a market approach, which represents a L evel 2 valuation estimate. The market approach was determined based on the actual bids and offers of the Notes in an over-the-counter market as of the last day of trading prior to the end of the period. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | SHORT-TERM INVESTMENTS Short-term investments consisted of the following as of the dates presented (in thousands): June 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 481,658 $ 207 $ (2,382) $ 479,483 U.S. treasury securities 409,586 42 (1,260) 408,368 Asset-backed securities 51,321 8 (136) 51,193 Certificates of deposit 46,099 — — 46,099 U.S. agency securities 58,166 — (199) 57,967 $ 1,046,830 $ 257 $ (3,977) $ 1,043,110 June 30, 2022 Amortized Gross Gross Fair value Corporate bonds $ 601,987 $ 3 $ (4,786) $ 597,204 U.S. treasury securities 424,644 1 (2,917) 421,728 Asset-backed securities 51,622 — (216) 51,406 Certificates of deposit 38,155 — — 38,155 $ 1,116,408 $ 4 $ (7,919) $ 1,108,493 The amortized cost and fair value amounts include accrued interest receivable of $4.3 million and $3.0 million at June 30, 2023 and 2022, respectively. As of June 30, 2023, the fair value of the Company’s short-term investments that mature within one year and thereafter was $758.1 million and $285.0 million, respectively, or 73% and 27%, respectively, of the Company’s total short-term investments. As of June 30, 2022, the fair value of the Company’s short-term investments that mature within one year and thereafter was $961.8 million and $146.7 million, respectively, or 87% and 13%, respectively, of the Company’s total short-term investments. As of June 30, 2023, approximately 190 out of approximately 330 investment positions were in an unrealized loss position. The following table presents the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): June 30, 2023 Fair value Unrealized Corporate bonds $ 296,562 $ (2,382) U.S. treasury securities 213,726 (1,260) Asset-backed securities 38,426 (136) U.S. agency securities 57,967 (199) Total $ 606,681 $ (3,977) June 30, 2022 Fair value Unrealized Corporate bonds $ 392,699 $ (4,786) U.S. treasury securities 411,787 (2,917) Asset backed securities 51,406 (216) Total $ 855,892 $ (7,919) The Company investments balance with unrealized losses that had been in a continuous unrealized loss position for less than 12 months was $506.5 million and $851.8 million as of June 30, 2023 and June 30, 2022, respectively. Investments balance with unrealized losses that had been in a continuous unrealized loss position for more than 12 months was $100.2 million and not material as of June 30, 2023 and June 30, 2022, respectively. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which will be at maturity. Therefore, the Company does not consider those unrealized investment losses as other-than-temporary impairment of the investments. There have been no significant realized gains or losses on the short-term investments during each of the years ended June 30, 2023, 2022, and 2021. |
Funds Held for Customers
Funds Held for Customers | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Funds Held for Customers | FUNDS HELD FOR CUSTOMERS Funds held for customers consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Restricted cash $ 1,793,088 $ 1,685,937 Restricted cash equivalents 713,469 168,260 Funds receivable 12,822 6,747 Corporate bonds 433,920 807,685 Certificates of deposit 233,291 397,533 Municipal bonds — 6,516 Asset-backed securities 70,661 69,912 U.S. agency securities 27,458 — U.S. treasury securities 81,074 3,072 Total funds held for customers 3,365,783 3,145,662 Less - income earned by the Company included in other current assets (9,874) (3,002) Total funds held for customers, net of income earned by the Company $ 3,355,909 $ 3,142,660 Income earned by the Company that is included in other current assets represents interest income, accretion of discount (offset by amortization of premium), and net unrealized gains on customer funds that were invested in money market funds and short-term marketable debt securities. Earnings from these investments are contractually earned by the Company and are expected to be transferred into the Company’s corporate deposit account upon sale or settlement of the associated investment, and are not considered funds held for customers. Below is a summary of the fair value of funds held for customers that were invested in short-term marketable debt securities as of the dates presented (in thousands): June 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 433,936 $ 18 $ (34) $ 433,920 Certificates of deposit 233,290 1 — 233,291 Asset-backed securities 70,993 — (332) 70,661 U.S. agency securities 27,484 5 (31) 27,458 U.S. treasury securities 81,309 1 (236) 81,074 Total $ 847,012 $ 25 $ (633) $ 846,404 June 30, 2022 Amortized Gross Gross Fair value Corporate bonds $ 809,113 $ 1 $ (1,429) $ 807,685 Certificates of deposit 397,533 — — 397,533 Municipal bonds 6,542 — (26) 6,516 Asset backed securities 70,574 — (662) 69,912 U.S. treasury securities 3,082 — (10) 3,072 Total $ 1,286,844 $ 1 $ (2,127) $ 1,284,718 The amortized cost and fair value amounts include accrued interest receivable of $6.9 million and $3.0 million at June 30, 2023 and 2022, respectively. As of June 30, 2023, approximately 93%, or $785.3 million, of the total funds held for customers invested in marketable debt securities mature within one year and approximately 7%, or $61.1 million, mature thereafter. As of June 30, 2022, 95%, or $1.2 billion, of the funds held for customers invested in short-term marketable debt securities matured within one year and approximately 5%, or $69.9 million, mature thereafter. As of June 30, 2023, approximately 50 out of approximately 230 investment positions were in an unrealized loss position. The following tables present the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): June 30, 2023 Fair value Unrealized Corporate bonds $ 34,530 $ (34) Asset-backed securities 70,661 (332) U.S. agency securities 22,494 (31) U.S. treasury securities 74,888 (236) Total $ 202,573 $ (633) June 30, 2022 Fair value Unrealized Corporate bonds $ 301,625 $ (1,429) Municipal bonds 6,516 (26) Asset backed securities 64,361 (662) U.S. treasury securities 3,072 (10) Total $ 375,574 $ (2,127) Investments with unrealized losses have been in a continuous unrealized loss position for less than 12 months was $191.0 million and $375.6 million as of June 30, 2023 and June 30, 2022, respectively. Investments balance with unrealized losses that had been in a continuous unrealized loss position for more than 12 months was not material as of June 30, 2023 and 2022. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which will be at maturity. Therefore, the Company does not consider those unrealized investment losses as other-than-temporary impairment of the investments. There have been no significant realized gains or losses on funds held for customers that were invested in short-term marketable debt securities during each of the years ended June 30, 2023, 2022, and 2021. |
Acquired Card Receivables
Acquired Card Receivables | 12 Months Ended |
Jun. 30, 2023 | |
Acquired Card Receivables [Abstract] | |
Acquired Card Receivables | ACQUIRED CARD RECEIVABLES Acquired Card Receivables Acquired card receivables consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Gross amount of acquired card receivables $ 474,148 $ 261,806 Less: allowance for credit losses (15,498) (5,414) Total $ 458,650 $ 256,392 Certain lines of credit and acquired card receivable balances are collateralized by cash deposits held by the Issuing Banks. Before an account is charged off, the Company obtains any available cash collateral from the Issuing Banks. As of June 30, 2023, approximately $188.0 million of the acquired card receivable balance served as collateral for the Company’s borrowings from the Revolving Credit Facility (see Note 10). The Company incurred losses related to card transactions disputed by spending businesses. The amounts were not material during each of the years ended June 30, 2023 and 2022. The acquired card receivable balances above do not include purchases of card receivables from the Issuing Banks that have not cleared at the end of the reporting period. Purchases of card receivables that have not cleared as of June 30, 2023 totaled $68.6 million. The Company recognized an immaterial amount of expected credit losses on the purchased card receivables that have not cleared yet as of each of June 30, 2023 and 2022 (see Note 15). Credit Quality Information The Company regularly reviews collection experience, delinquencies, and net charge-offs in determining allowance for credit losses related to acquired card receivables. Historical collections rates have shown that days past due is the primary indicator of the likelihood of loss. The Company uses the delinquency trends or past due status of the acquired card receivables as the credit quality indicator. Acquired card receivables are considered past due if full payment is not received on the bill date or within a grace period, which is generally limited to five days. Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands): June 30, 2023 2022 Current and less than 30 days past due $ 463,704 $ 257,618 30 ~ 59 days past due 2,507 1,677 60 ~ 89 days past due 4,544 1,199 90 ~ 119 days past due 3,196 1,186 Over 119 days past due 197 126 Total $ 474,148 $ 261,806 The amount of outstanding balance of acquired card receivables that is (i) 90 days or more past due that continue to accrue fees and has an allowance for outstanding balance and fees and (ii) classified as nonperforming was not material as of each of June 30, 2023 and 2022. As part of its collection efforts, the Company may modify card receivables terms with spending businesses that defaulted on payments; such modifications may include principal forgiveness, late fee forgiveness, and/or an extension of payment terms. Total card receivables subject to such modifications were not material during the years ended June 30, 2023 and 2022. Outstanding and modified card receivables as of June 30, 2023 subject to modification were not material. Upon the Company's determination that a modified card receivable (or a portion of the card receivable) has subsequently been deemed uncollectible, the card receivable balance and allowance for credit losses are adjusted for the uncollectible portion . Allowance for Credit Losses Below is a summary of the changes in allowance for credit losses (in thousands): June 30, 2023 2022 Balance, beginning $ 5,414 $ 1,740 Initial allowance for credit losses on purchased card receivables with credit deterioration 10 313 Provision for expected credit losses 32,015 19,566 Charge-off amounts (24,120) (18,005) Recoveries collected 2,179 1,800 Balance, ending $ 15,498 $ 5,414 Card receivables acquired from the Issuing Banks and held for investment during the years ended June 30, 2023 and 2022 were $13.2 billion and $6.6 billion, respectively. The allowance for credit losses related to acquired card receivables increased during the year ended June 30, 2023 due to portfolio growth. Gross charge-off amounts for the year ended June 30, 2023 consisted of $6.5 million that originated in the year ended June 30, 2022 and $17.6 million that originated in the year ended June 30, 2023. Card Receivables Held for Sale The Company sells a portion of acquired card receivables to a purchasing bank at a discount. Effective August 2022, the Company ceased selling acquired card receivables. Card receivables held for sale, which are carried at the lower of cost or estimated market value at the individual user account level based on pricing agreed upon with the purchasing bank plus an estimate of the deferred purchased card receivables held for sale, are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets, amounted to zero and $8.7 million as of June 30, 2023 and 2022, respectively. Card Receivables Sold and Related Servicing and Beneficial Interest Derivative Retained The Company accounts for the transfer of card receivables as a sale if all of the following conditions are met: • the financial asset is isolated from the transferor and its consolidated affiliates as well as its creditors, even in bankruptcy or other receivership; • the transferee or beneficial interest holders have the right to pledge or exchange the transferred financial asset; and • the transferor, its consolidated affiliates and its agents do not maintain effective control over the transferred financial asset The card receivables that the Company transferred to the purchasing bank during each of the years ended June 30, 2023 and 2022 met all of the requirements described above; therefore, the Company accounted for the transfer as a sale of financial assets. Accordingly, the Company measures gain or loss on the sales of financial assets as the net proceeds less the carrying amount of the card receivables sold. The net proceeds represent the fair value of any assets obtained or liabilities incurred as part of the transfer, including, but not limited to, servicing assets, servicing liabilities, or beneficial interest derivatives. Under the agreement with the purchasing bank, the Company had a continuing involvement as servicer. Effective August 2022, the Company ceased selling acquired card receivables. The outstanding transferred card receivable balance as of June 30, 2023 and 2022 was zero and $57.3 million, respectively. The fair value of the beneficial interest derivative, which is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets, was zero and immaterial as of June 30, 2023 and 2022, respectively. The servicing fee income was not material during each of the years ended June 30, 2023 and 2022. Below is a summary of the fair value of consideration received from the transfer of card receivables accounted for as a sale during the periods presented (in thousands): Year ended June 30, 2023 (1) 2022 Initial fair value of consideration received: Cash $ 316,477 $ 1,483,481 Beneficial interest derivative 1,682 4,690 Total $ 318,159 $ 1,488,171 (1) Effective August 2022, the Company ceased selling acquired card receivables. Card receivable repurchases during each of the years ended June 30, 2023 and 2022 were not material. Below is a summary of outstanding transferred card receivables by class (i.e., past due status) that have not been charged-off and have not been recorded on the Company's consolidated balance sheets, but with which the Company has a continuing involvement through its servicing agreements, as of the dates presented (in thousands): June 30, 2023 (1) 2022 Current and less than 30 days past due $ — $ 56,162 30 ~ 59 days past due — 292 60 ~ 89 days past due — 375 90 ~ 119 days past due — 422 Over 119 days past due — 30 Total $ — $ 57,281 (1) Effective August 2022, the Company ceased selling acquired card receivables The difference between the outstanding balance of transferred card receivables as of June 30, 2022 and the amount derecognized for which the Company has a continuing involvement as a servicer as of June 30, 2022 was not material. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Software and equipment $ 20,971 $ 20,102 Capitalized software 53,950 21,457 Furniture and fixtures 12,598 10,608 Leasehold improvements 39,068 35,105 Property and equipment, gross 126,587 87,272 Less: accumulated depreciation and amortization (45,023) (30,287) Property and equipment, net $ 81,564 $ 56,985 Depreciation and amortization expense, which includes the amortization of capitalized software, during the years ended June 30, 2023, 2022, and 2021 was $15.5 million, $11.5 million, and $5.4 million, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill, which is primarily attributable to expected synergies from acquisitions and is not deductible for U.S. federal and state income tax purposes, consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Balance, beginning $ 2,362,893 $ 1,772,043 Addition related to acquisition during the period 33,441 585,448 Measurement period adjustments 175 (2,876) Adoption of ASU 2021-08 — 8,278 Balance, ending $ 2,396,509 $ 2,362,893 Intangible Assets Intangible assets consisted of the following as of the dates presented (amounts in thousands): June 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted average remaining Customer relationships $ 259,269 $ (52,483) $ 206,786 8.0 Developed technology 215,958 (77,178) 138,780 3.8 Trade name 48,042 (32,181) 15,861 1.0 Total $ 523,269 $ (161,842) $ 361,427 Jun 30, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted average remaining Customer relationships $ 259,269 $ (26,556) $ 232,713 9.0 Developed technology 206,908 (38,909) 167,999 4.7 Trade name 48,042 (16,171) 31,871 2.0 Total $ 514,219 $ (81,636) $ 432,583 Amortization of finite-lived intangible assets was as follows during the years ended June 30, 2023 and 2022 (in thousands): June 30, 2023 2022 Cost of revenue $ 38,269 $ 36,256 Sales and marketing 41,936 39,721 Total $ 80,205 $ 75,977 As of June 30, 2023, future amortization of finite-lived intangible assets that will be recorded in cost of revenue and operating expenses is estimated as follows (in thousands): Fiscal years ending June 30: Amount 2024 $ 79,953 2025 61,234 2026 59,570 2027 56,912 2028 26,606 Thereafter 77,152 Total $ 361,427 |
Debt and Bank Borrowings
Debt and Bank Borrowings | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Bank Borrowings | DEBT AND BANK BORROWINGS Debt and borrowings consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Current liabilities: Borrowings from credit facilities (including unamortized debt premium) (1) $ 135,046 $ 75,097 Non-current liabilities: Convertible senior notes: 2027 Notes, principal $ 575,000 $ 575,000 2025 Notes, principal 1,150,000 1,150,000 Less: unamortized issuance costs (20,218) (27,015) Convertible senior notes, net $ 1,704,782 $ 1,697,985 Total $ 1,839,828 $ 1,773,082 (1) Unamortized debt issuance costs on the Revolving Credit Facility were $0.2 million and zero as of June 30, 2023 and June 30, 2022, respectively, and are included in Prepaid expense and other current assets on the consolidated balance sheet. 2027 Notes On September 24, 2021, the Company issued $575.0 million in aggregate principal amount of its 0% convertible senior notes due on April 1, 2027, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2027 Notes are subject to the terms and conditions of the indenture governing the 2027 Notes between the Company and Wells Fargo Bank, N.A., as trustee (2027 Notes Trustee). The net proceeds from the issuance of the 2027 Notes were $560.1 million, after deducting debt discount and debt issuance costs totaling $14.9 million. The 2027 Notes are senior, unsecured obligations of the Company, and will not accrue interest unless the Company determines to pay special interest as a remedy for failure to timely file any reports required to be filed with the SEC, certain trading restrictions or failure to deliver reports to the 2027 Notes Trustee. The 2027 Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the 2027 Notes and rank equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated, including the 2025 Notes. In addition, the 2027 Notes are subordinated to any of the Company’s secured indebtedness and to all indebtedness and other liabilities of the Company’s subsidiaries. The 2027 Notes have an initial conversion rate of 2.4108 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $414.80 per share of the Company’s common stock and approximately 1.4 million shares issuable upon conversion. The conversion rate is subject to customary adjustments for certain events as described below. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. The Company’s current intent is to settle conversions of the 2027 Notes through a combination settlement, which involves a repayment of the principal portion in cash with any excess of the conversion value over the principal amount settled in shares of common stock. The Company may redeem for cash, all or any portion of the 2027 Notes, at the Company’s option, on or after October 5, 2024 if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day (Conversion Condition) preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the 2027 Notes. The holders of the 2027 Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding January 1, 2027 in multiples of $1,000 principal amount, under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on December 31, 2021, and only during such calendar quarter, if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day periods after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2027 Notes for each trading day of that period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; • if the Company calls such notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. The conversion rate is subject to adjustment upon the occurrence of certain events or if the Company’s board of directors determines it is in the best interest of the Company. Additionally, holders of the 2027 Notes that convert their notes in connection with a make-whole fundamental change or during the redemption period, may be eligible to receive a make-whole premium through an increase of the conversion rate based on the estimated fair value of the 2027 Notes for the given date and stock price. The make-whole premium is designed to compensate the holder for lost “time-value” of the conversion option. The maximum number of additional shares that may be issued under the make-whole premium is 1.2656 per $1,000 principal (the lowest price of $272.00 in the make whole). The indenture governing the 2027 Notes contains customary events of default with respect to the 2027 Notes and provides that upon certain events of default occurring and continuing, the holders of the 2027 Notes will have the right, at their option, to require the Company to repurchase for cash all or a portion of their outstanding notes, at a price equal to 100% of the principal amount of the 2027 Notes to be repurchased, plus any accrued and unpaid interest. 2025 Notes On November 30, 2020, the Company issued $1.15 billion in aggregate principal amount of its 0% convertible senior notes due on December 1, 2025, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2025 Notes are subject to the terms and conditions of the indenture governing the 2025 Notes between the Company and Wells Fargo Bank, N.A., as trustee (2025 Notes Trustee). The net proceeds from the issuance of the 2025 Notes were $1.13 billion, after deducting debt discount and debt issuance costs totaling $20.6 million. The 2025 Notes are senior, unsecured obligations of the Company, and will not accrue interest unless the Company determines to pay special interest as a remedy for failure to timely file any reports required to be filed with the SEC, certain trading restrictions, or failure to deliver reports to the 2025 Notes Trustee. The 2025 Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the 2025 Notes and rank equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated, including the 2027 Notes. In addition, the 2025 Notes are subordinated to any of the Company’s secured indebtedness and to all indebtedness and other liabilities of the Company’s subsidiaries. The 2025 Notes have an initial conversion rate of 6.2159 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $160.88 per share of the Company’s common stock and approximately 7.1 million shares issuable upon conversion. The conversion rate is subject to customary adjustments for certain events as described below. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. The Company’s current intent is to settle conversions of the 2025 Notes through a combination settlement, which involves a repayment of the principal portion in cash with any excess of the conversion value over the principal amount settled in shares of common stock. The Company may redeem for cash, all or any portion of the 2025 Notes, at the Company’s option, on or after December 5, 2023 if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day (Conversion Condition) preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the 2025 Notes. The holders of the 2025 Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding September 1, 2025 in multiples of $1,000 principal amount, under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on March 31, 2021, and only during such calendar quarter, if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day periods after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2025 Notes for each trading day of that period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; • if the Company calls such notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. The conversion rate is subject to adjustment upon the occurrence of certain events or if the Company’s board of directors determines it is in the best interest of the Company. Additionally, holders of the 2025 Notes that convert their notes in connection with a make-whole fundamental change or during the redemption period, may be eligible to receive a make-whole premium through an increase of the conversion rate based on the estimated fair value of the 2025 Notes for the given date and stock price. The make-whole premium is designed to compensate the holder for lost “time-value” of the conversion option. The maximum number of additional shares that may be issued under the make-whole premium is 2.9525 per $1,000 principal (the lowest price of $109.07 in the make whole). The indenture governing the 2025 Notes contains customary events of default with respect to the 2025 Notes and provides that upon certain events of default occurring and continuing, the holders of the 2025 Notes will have the right, at their option, to require the Company to repurchase for cash all or a portion of their outstanding notes, at a price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus any accrued and unpaid interest. Additional Information About the Notes As of June 30, 2023 and 2022, the Notes consisted of the following (in thousands): June 30, 2023 June 30, 2022 2027 Notes 2025 Notes 2027 Notes 2025 Notes Liability component: Principal $ 575,000 $ 1,150,000 $ 575,000 $ 1,150,000 Less: unamortized debt issuance costs (10,188) (10,030) (12,873) (14,142) Net carrying amount $ 564,812 $ 1,139,970 $ 562,127 $ 1,135,858 The debt issuance costs of the Notes are being amortized using the effective interest method. During the years ended June 30, 2023 and 2022, the Company recognized $6.8 million and $6.1 million, respectively, of the debt issuance costs of the Notes. The effective interest rates of the 2027 Notes and 2025 Notes was 0.48% and 0.36%, respectively. As of June 30, 2023, the weighted-average remaining life of the Notes was 2.9 years. The "if-converted" value of the Notes did not exceed the principal amount of $1.7 billion as of June 30, 2023. Capped Call Transactions In conjunction with the issuance of each of the 2025 Notes and the 2027 Notes, the Company entered into capped call transactions (collectively, the Capped Calls) with certain of the initial purchasers of the Notes and/or their respective affiliates or other financial institutions at a total cost of $125.8 million. The Capped Calls are separate transactions and are not part of the terms of the Notes. The total amount paid for the Capped Calls was recorded as a reduction of additional paid-in capital. The Company used the proceeds from the Notes to pay for the cost of the Capped Call premium. The cost of the Capped Calls is not expected to be tax-deductible as the Company did not elect to integrate the Capped Calls into the Notes for tax purposes. The Capped Calls associated with the 2027 Notes and 2025 Notes have an initial strike price of approximately $414.80 per share and $160.88 per share, respectively, subject to certain adjustments, which corresponds to the respective initial conversion price of the 2027 Notes and 2025 Notes, and have an initial cap price of $544.00 per share and $218.14 per share, respectively, subject to certain adjustments; provided that such cap price shall not be reduced to an amount less than their respective strike price. The Capped Calls associated with the Notes cover, subject to anti-dilution adjustments, a total of approximately 8.5 million shares of the Company’s common stock. The Capped Calls are expected to generally reduce the potential dilution of the Company’s common stock upon any conversion of the Notes and/or offset any cash payments that the Company is required to make in excess of the principal amount of such converted notes, as the case may be, with such reduction and/or offset subject to a cap. Revolving Credit Facility The Company’s Revolving Credit and Security Agreement, was executed in March 2021 (the 2021 Revolving Credit Agreement), and was amended in August 2022 (as amended, the Revolving Credit Facility), to finance the acquisition of card receivables. The Revolving Credit Facility matures in June 2024 or earlier pursuant to the agreement and has a total commitment of $225.0 million. The required minimum utilization was $135.0 million, or 60% of the total commitment, and the Company had borrowed $135.0 million against the Revolving Credit Facility as of June 30, 2023. The Revolving Credit Facility requires the Company to pay unused fees up to 0.50% per annum. Borrowings are secured by acquired card receivables. Prior to March 3, 2023, borrowings of up to $75.0 million bore interest of 2.75% per annum and borrowings greater than $75.0 million bore interest of 2.65% per annum, plus SOFR (subject to a floor rate of 0.25% and benchmark adjustment rate of 0.28%). Beginning March 3, 2023, borrowings bear interest of 2.65% per annum, plus SOFR (subject to a floor rate of 0.25% and benchmark adjustment rate of 0.28%). The effective interest rate was 8.19% per annum as of June 30, 2023. The Company is required to comply with certain restricted covenants, including liquidity requirements. As of June 30, 2023, the Company was in compliance with those covenants. The debt issuance costs and debt premium associated with the Revolving Credit Facility is amortized using the effective interest method over the remaining term of the agreement, with a weighted-average remaining amortization period of approximately 0.9 years. The amortization of the debt issuance costs and debt premium is recorded in interest income (expense), net in the accompanying consolidated statement of operations and during each of the years ended June 30, 2023 and 2022 was not material. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Equity Incentive Plans On November 26, 2019 , the Company’s board of directors approved the 2019 Equity Incentive Plan (2019 Plan), which became effective on December 10, 2019. The 2019 Plan authorizes the award of stock options, RSUs, restricted stock awards, stock appreciation rights, performance-based awards, market-based awards, cash awards, and stock bonus awards, as determined by the Company’s board of directors. The Company’s 2016 Equity Incentive Plan (2016 Plan), which was adopted in February 2016, was terminated concurrent to the effective date of the 2019 Plan. The Company’s 2006 Equity Incentive Plan (2006 Plan), which was adopted in April 2006, was terminated upon the adoption of the 2016 Plan. There were no equity-based awards granted under the 2016 Plan and the 2006 Plan after their termination; however, all outstanding awards under the 2016 Plan and the 2006 Plan continue to remain subject to the terms of the respective Equity Incentive Plan until such awards are exercised or until they terminate or expire by their terms. The 2019 Plan, 2016 Plan, and 2006 Plan are collectively referred to as the “Equity Incentive Plans.” The Company initially reserv ed 7,100,000 s hares of its common stock, plus any reserved shares not issued or subject to outstanding grants under the 2016 Plan, for issuance pursuant to awards granted under the 2019 Plan. The number of shares reserved for issuance under the 2019 Plan increases automatically on July 1 of each of 2020 through 2029 by the number of shares equal to the lesser of 5% of the total number of outstanding shares of the Company’s common stock as of the immediately preceding June 30 , or a number as may be determined by the Company’s board of directors. In addition, the following shares of common stock from the 2016 Plan and the 2006 Plan will be available for grant and issuance under the 2019 Plan: • shares issuable upon the exercise of options or subject to other awards under the 2016 Plan or 2006 Plan that cease to be subject to such options or other awards by forfeiture or after the effective date of the 2019 Plan; and • shares issued pursuant to outstanding awards under the 2016 Plan and 2006 Plan that are forfeited or repurchased after the effective date of the 2019 Plan. The total number of shares of common stock available for future grants under the Equity Incentive Plans was 15,087,695 shares as of June 30, 2023. Equity Awards Assumed in Acquisitions The Company assumed and replaced the outstanding stock options of Invoice2go and Divvy upon their acquisitions. The assumed equity awards will be settled in shares of the Company’s common stock and will retain the terms and conditions under which they were originally granted. No additional equity awards will be granted under equity incentive plans of the acquired companies. Stock Options The Company may grant incentive and non-statutory stock options to employees, non-employee directors, and consultants of the Company under the Equity Incentive Plans. Stock options granted generally vest and become exercisable ratably over a requisite service period of four years following the date of the grant and expire ten years from the date of the grant. The exercise price of stock options granted is generally the market closing price of the Company’s common stock at the date of grant. A summary of stock option activity as of June 30, 2023, and changes during the year ended June 30, 2023, is presented below: Number of Weighted Weighted Aggregate Outstanding at June 30, 2022 3,858 $ 18.28 6.97 $ 361,053 Exercised (1,063) $ 13.06 Forfeited (207) $ 29.06 Outstanding at June 30, 2023 2,588 $ 19.56 5.90 $ 258,093 Vested and expected to vest at June 30, 2023 (1) 2,560 $ 19.32 5.89 $ 255,787 Vested and exercisable at June 30, 2023 2,367 $ 15.62 5.79 $ 242,525 (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options. No options were granted during the year ended June 30, 2023.The fair value of options granted during the years ended June 30, 2022, and 2021 was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Year ended June 30, 2022 2021 Expected term (in years) 2.00 to 7.05 6.25 Expected volatility 30.0% to 81.2% 35.0% to 85.1% Risk-free interest rate 0.20% to 2.88% 0.38% to 1.03% Expected dividend yield 0 % 0 % The weighted-average grant date fair value of options granted during the years ended June 30, 2022, and 2021 was $207.07 and $132.04 per share, respectively. The total intrinsic value of options exercised during the years ended June 30, 2023, 2022, and 2021 was $114.1 million, $640.0 million, and $387.1 million, respectively. The intrinsic value was calculated as the difference between the estimated fair value of the Company’s common stock at exercise and the exercise price of the in-the-money options. The fair value of stock options vested during the years ended June 30, 2023, 2022, and 2021 was $163.8 million, $555.8 million, and $485.7 million, respectively. As of June 30, 2023, the total unamortized stock-based compensation cost related to the unvested stock options was approximately $14.0 million, which the Company expects to amortize over a weighted-average period of 1.5 years. Restricted Stock Units A summary of RSU activity as of June 30, 2023, and changes during the year ended June 30, 2023, is presented below. Number of shares (1) (in thousands) Weighted Nonvested at June 30, 2022 3,279 $ 178.85 Granted 3,322 $ 120.25 Vested (1,640) $ 164.38 Forfeited (777) $ 165.37 Nonvested at June 30, 2023 4,184 $ 140.50 (1) Includes RSU, market-based RSUs and performance-based RSUs. The fair value of the RSU grant is determined based upon the market closing price of the Company’s common stock on the date of grant. The weighted-average grant date fair value of RSU granted during the years ended June 30, 2023, 2022, and 2021 was $120.25, $202.79, and $134.29 per share, respectively. The RSUs vest over the requisite service period, which ranges between 1 year and 4 years from the date of grant, subject to the continued employment of the employees and services of the non-employee directors. The total fair value of RSUs that vested during the years ended June 30, 2023, 2022, and 2021 was approximately $197.3 million, $118.9 million, and $40.0 million, respectively. As of June 30, 2023, the total unamortized stock-based compensation expense related to the unvested RSUs was approximately $412.1 million, which the Company expects to amortize over a weighted-average period of 2.9 years. Market-based RSUs In December 2021, the Company granted a total of 50,000 market-based RSUs to one executive employee that vest based on appreciation of the price of the Company’s common stock over a multi-year period, subject to such executive’s continued service to the Company. The Company estimated the fair value of the market-based RSU award on the grant date using the Monte Carlo simulation model with the following assumptions: (i) expected volatility of 60%, (ii) risk-free interest rate of 1.08% to 1.21%, and (iii) total performance period of three As of June 30, 2023, the total unrecognized compensation expense related to the market-based RSUs was approximately $2.2 million, which is expected to be amortized over a weighted-average period of 1.1 years. Performance-based RSUs During the year ended June 30, 2023, the Company granted approximately 150,000 RSUs to certain executive employees that vest based upon the achievement of designated financial and continued employment with the Company over period of three years. The fair value of the performance-based RSU grant is determined based upon the market closing price of the Company’s common stock on the date of grant. The weighted-average grant date fair value of these performance-based RSUs was $133.48 per unit. The Company recognizes expense for performance-based RSUs over the requisite service period based on management's estimate of the number of performance-based RSUs expected to vest. For any change in the estimate of the number of performance-based RSUs that are probable of vesting, the Company will cumulatively adjust compensation expense in the period that the change in estimate is made. The number of shares that ultimately vest vary with the achievement of the specified performance criteria. As of June 30, 2023, the total unrecognized compensation expense related to the performance-based RSUs was $5.9 million, which is expected to be recognized over a weighted-average period of 1.3 years. Employee Stock Purchase Plan On November 26, 2019, the Company’s board of directors approved the ESPP, which became effective on December 11, 2019. The ESPP is intended to qualify under Section 423 of the U.S. Internal Revenue Code of 1986, as amended (the Code), and will provide eligible employees a means to acquire shares of common stock through payroll deductions. Under the ESPP, the Company initially reserved for issuance 1,400,000 shares of common stock, which will increase automatically on July 1 of each fiscal year during the term of the ESPP by the number of shares equal to 1% of the total number of shares of common stock and preferred stock (on as-converted basis) outstanding as of the immediately preceding June 30, unless the board of directors elects to authorize a lesser number of shares; provided, that, the total number of shares issued under the ESPP may not exceed 14,000,000 shares of common stock. The ESPP provides for consecutive offering periods of 12-months during which eligible employees can participate in the ESPP and be granted the right to purchase shares semiannually. Eligible employees can contribute up to 15% of their eligible compensation, subject to limitation as provided for in the ESPP, and purchase the common stock at a purchase price per share equal to 85% of the lesser of the fair market value of the common stock on (i) the offering date or (ii) the purchase date. The fair value of ESPP offerings during the years ended June 30, 2023, 2022, and 2021 was estimated at the date of the offering using the Black-Scholes option-pricing model with the following assumptions: Year ended June 30, 2023 2022 2021 Expected term (in years) 0.4 to 1.0 0.4 to 1.0 0.5 to 1.00 Expected volatility 81.8% to 82.5% 76.0% to 77.3% 81.0% to 88.4% Risk-free interest rate 3.39% to 4.89% 0.06% to 0.88% 0.05% to 0.13% Expected dividend yield 0 % 0 % 0 % As of June 30, 2023, the total unrecognized compensation expense related to the ESPP was $4.5 million, which is expected to be amortized over a weighted-average period of 0.5 years. Stock Based Compensation Cost Stock-based compensation cost by award type (in thousands): Year ended 2023 2022 2021 Stock options $ 37,882 $ 55,667 $ 45,035 RSUs (1) 251,456 134,222 23,225 Performance-based awards 17,914 — — Market-based RSUs 4,308 2,755 — Employee stock purchase plan 11,280 8,918 4,191 Total stock-based compensation cost $ 322,840 $ 201,562 $ 72,451 Stock-based compensation cost from stock options, RSUs and purchase rights issued under the ESPP was included in the following line items in the accompanying consolidated statements of operations and consolidated balance sheets (in thousands): Year ended June 30, 2023 2022 2021 Revenue - subscription and transaction fees $ 188 $ — $ — Cost of revenue - service costs 9,111 5,144 2,938 Research and development 93,364 54,907 16,091 Sales and marketing (1) 130,421 60,237 8,547 General and administrative 80,619 76,869 44,411 Total amount charged to loss from operations 313,703 197,157 71,987 Property and equipment (capitalized internal-use software) 9,137 4,405 464 Total stock-based compensation cost $ 322,840 $ 201,562 $ 72,451 (1) In October 2022, the Company entered into separation and advisory agreements with its former Chief Revenue Officer (the CRO, and such agreements, the CRO Agreements). Pursuant to the CRO Agreements, the former CRO will serve the Company Share Repurchase Program In January 2023, the Company's board of directors authorized the repurchase of up to $300 million of the Company's outstanding shares of common stock (the Share Repurchase Program). The Company may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans, intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing and total amount of share repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The Share Repurchase Program has a term of 12 months, may be suspended or discontinued at any time, and does not obligate the Company to acquire any amount of common stock. During the year ended June 30, 2023, the Company repurchased and subsequently retired 1,077,445 shares for $87.6 million under the Share Repurchase Program. The total price of the shares repurchased and related transaction costs are reflected as a reduction of common stock and accumulated deficit on the accompanying consolidated balance sheets. As of June 30, 2023, $212.4 million remained available for future share repurchases under the Share Repurchase Program. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Jun. 30, 2023 | |
Other Income, Nonoperating [Abstract] | |
Other Income (Expense), Net | OTHER INCOME (EXPENSE), NET Other income (expense), net consisted of the following for the periods presented (in thousands): Year ended June 30, 2023 2022 2021 Interest expense $ (15,203) $ (9,419) $ (28,158) Lower of cost or market adjustment on card (1,545) (11,460) (691) Interest income 91,279 6,691 2,992 Other (1,675) 327 487 Total $ 72,856 $ (13,861) $ (25,370) |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of loss before provision for (benefit from) income taxes were as follows during the periods presented (in thousands): Year ended June 30, 2023 2022 2021 Domestic $ (199,452) $ (304,508) $ (139,337) Foreign (23,465) (26,171) — Total $ (222,917) $ (330,679) $ (139,337) The components of provision for (benefit from) income taxes were as follows during the periods presented (in thousands): Year ended June 30, 2023 2022 2021 Current: Federal $ 572 $ (247) $ — State 1,583 — — Foreign 14 — — Total current 2,169 (247) — Deferred: Federal (995) (1,115) (27,529) State (366) (2,956) (13,088) Foreign — — — Total deferred (1,361) (4,071) (40,617) Provision for (benefit from) income taxes $ 808 $ (4,318) $ (40,617) The items accounting for the difference between the income taxes computed at the federal statutory rate and the provision for (benefit from) income taxes consisted of the following during the periods presented (in thousands): Year ended June 30, 2023 2022 2021 Expected benefit at U.S. federal statutory rate $ (46,813) $ (69,443) $ (29,261) State income taxes, net of federal benefit 8,087 13,509 (54) Stock-based compensation (1) 4,253 (93,705) (70,262) Research and development tax credits (19,974) (22,061) (8,846) Change in valuation allowance related to acquisition (2) (126) (2,831) (34,749) Change in valuation allowance (3) 48,321 174,477 94,244 Unrecognized tax benefit (390) (10,975) 6,766 Acquisition-related costs — 553 1,484 Foreign rate differential 4,942 5,496 — Other 2,508 662 61 Provision for (benefit from) income taxes $ 808 $ (4,318) $ (40,617) (1) The rate impact during the year ended June 30, 2023 relates to the impact of non-deductible stock compensation and shortfalls related to tax deductions being smaller than the associated stock compensation expense. The rate impact during the years ended June 30, 2022 and 2021 pertains windfalls from tax deductions being larger than the associated stock compensation expense. (2) The rate impact during the years ended June 30, 2022 and 2021 pertains to the income tax benefit recorded as a result of the acquisitions of Invoice2go and Divvy, respectively, which allowed the Company to release a portion of its valuation allowance due to the net deferred tax liabilities that were recorded as a result of such acquisitions. (3) The rate impact during the year ended June 30, 2023, 2022 and 2021 pertains to (i) an increase in valuation allowance due to the increase in deferred tax assets associated with losses, capitalized R&D expense and tax credits generated during the year, (ii) a change in deferred tax liability related to the 2025 Notes, and (iii) a change in deferred tax liability related to the acquisitions of Invoice2go and Divvy. The components of deferred tax assets and liabilities were as follows as of the dates presented (in thousands): June 30, 2023 2022 Deferred tax assets: Accruals and reserves $ 12,537 $ 9,325 Capitalized research and development 75,694 — Deferred revenue 1,084 1,794 Stock-based compensation 24,998 25,897 Net operating loss carryforwards 379,758 410,849 Research and development credits 62,299 46,013 Accrued rewards 1,855 2,867 Operating lease liabilities 21,616 24,203 Other 1,257 3,247 Total deferred tax assets before valuation allowance 581,098 524,195 Valuation allowance (479,449) (384,158) Deferred tax assets $ 101,649 $ 140,037 Deferred tax liabilities: Deferred contract costs $ (4,772) $ (3,745) Property and equipment (13,078) (19,316) Intangible assets (67,455) (99,483) Operating right of use assets (17,155) (19,490) Total deferred tax liabilities $ (102,460) $ (142,034) Net deferred tax liabilities $ (811) $ (1,997) Accounting Standards Codification 740 requires that the tax benefit of net operating losses, temporary differences, and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. Because of the Company’s recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. The change in valuation allowance was approximately $95.3 million, $276.3 million, and $22.3 million during the years ended June 30, 2023, 2022, and 2021, respectively. The increase in the June 30, 2023 valuation allowance is primarily from the application of the Tax Cuts and Jobs Act of 2017 effective fiscal year 2023 and thereafter, that requires companies to capitalize and amortize research and development expenses rather than deduct the costs as incurred, offset by a reduction in a deferred tax liabilities. The net deferred tax liability is included as other long-term liabilities in the accompanying consolidated balance sheet. The Tax Cuts and Job Act subjects a U.S. company to tax on its Global Intangible Low Tax Income (GILTI). Under GAAP, the Company can make an accounting policy election to either treat taxes due on the GILTI inclusion as a current period expense or factor such amounts into the measurement of deferred taxes. The Company elected the period expense method. The Company does not currently operate under any tax holiday in any country in which it operates. The Company does not have foreign earnings available to distribute. As such, there is no unrecorded deferred tax liability associated with an outside basis of foreign subsidiaries. As of June 30, 2023, the Company had NOL carryforwards of $1.4 billion, $1.1 billion, and $83.4 million for federal, state, and foreign tax purposes, respectively, that are available to reduce future taxable income. If not utilized, the state NOL carryforwards will begin to expire in 2025. As of June 30, 2023, the federal and foreign NOL carryforwards do not expire and will carry forward indefinitely until utilized. As of June 30, 2023, the Company also had research and development tax credit carryforwards of approximately $56.1 million and $35.6 million for federal and state tax purposes, respectively. If not utilized, the federal tax credits will expire at various dates beginning in 2039. The state tax credits do not expire and will carry forward indefinitely until utilized. Utilization of the NOL and tax credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Code and other similar state provisions. The annual limitation may result in the expiration of NOLs and tax credits before utilization. Below is the reconciliation of the unrecognized tax benefits related to federal and California research and development credits during the periods presented (in thousands): Year ended 2023 2022 2021 Balance at the beginning of the year $ 16,724 $ 22,185 $ 5,787 Add: Tax positions related to the current year 6,642 7,354 8,267 Increase from business combination — 160 668 Tax positions related to the prior year 226 — 7,463 Less: Tax positions related to the prior year — (12,761) — Statute of limitations lapse (292) (214) — Balance at the end of the year $ 23,300 $ 16,724 $ 22,185 The Company had unrecognized tax benefits of approximately $23.3 million and $16.7 million as of June 30, 2023 and 2022, respectively, all of which are offset by a full valuation allowance. If the unrecognized tax benefits as of June 30, 2023 is recognized, it will not have an impact to the effective tax rate due to the Company’s valuation allowance. The amount of interest and penalties accrued as of each of June 30, 2023 and 2022 were not material. The Company files income tax returns in the U.S. for U.S. federal, California, and various states and foreign jurisdictions. The Company’s U.S. federal, state, and foreign tax returns for all years remain subject to examination by taxing authorities as a result of unused tax attributes being carried forward. The Company records liabilities related to uncertain tax positions, which provide adequate reserves for income tax uncertainties in all open tax years. The Company’s management evaluates the realizability of the Company’s deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company’s ability to generate sufficient future taxable income during the foreseeable future. The Company does not anticipate any material change on its unrecognized tax benefits over the next 12 months. In December 2022, the Internal Revenue Service initiated an audit of Divvy's pre-acquisition tax year ending December 31, 2020, which was closed without adjustment on August 7, 2023. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASES The Company has non-cancelable operating leases for office and other facilities in various locations, and certain equipment, which expire through 2031. Also, the Company subleases part of its office facility in Draper, Utah under a non-cancellable operating lease that expires in December 2025. The Company's leases do not contain any material residual value guarantees. As of June 30, 2023, the weighted average remaining term of these operating leases is 7.3 years and the weighted-average discount rate used to estimate the net present value of the operating lease liabilities was 5.1%. The total payment for amounts included in the measurement of operating lease liabilities was $14.9 million, $13.8 million, and $2.1 million during the years ended June 30, 2023, 2022, and 2021, respectively. The total amount of ROU assets obtained in exchange for new operating lease liabilities was $2.0 million, $5.3 million, and $31.6 million during the years ended June 30, 2023, 2022, and 2021, respectively. The components of lease expense during the years ended June 30, 2023, 2022, and 2021 are shown in the table below (in thousands): Year ended June 30 2023 2022 2021 Operating lease expense (1) $ 14,081 $ 12,983 $ 7,826 Variable lease expense, net of credit 2,251 2,909 2,252 Sublease income (586) (712) (55) Total lease cost $ 15,746 $ 15,180 $ 10,023 (1) Includes short-term lease, which is not material for the fiscal years ended June 30, 2023, 2022, and 2021 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The Company has non-cancelable operating leases for office and other facilities in various locations, and certain equipment, which expire through 2031. Future minimum lease payments as of June 30, 2023 are as follows (in thousands): Fiscal years ending June 30: Amount 2024 $ 14,649 2025 13,699 2026 13,292 2027 13,226 2028 13,590 Thereafter 35,919 Gross lease payments 104,375 Less - present value adjustments (17,737) Total operating lease liabilities, net $ 86,638 The current portion of operating lease liabilities, which is included in other accruals and current liabilities In addition to the minimum lease payments above, the Company has multi-year agreements with certain third parties and financial institution partners, expiring through 2029, which require the Company to pay fees over the term of the respective agreements. Future payments under these other agreements as of June 30, 2023 are as follows (in thousands). Fiscal years ending June 30: Amount 2024 $ 14,612 2025 12,582 2026 6,004 2027 5,241 2028 5,491 Thereafter 29,373 Total $ 73,303 Purchase of Card Receivables That Have Not Cleared The Company is contractually obligated to purchase all card receivables from the Issuing Banks including authorized transactions that have not cleared. The transactions that have been authorized but not cleared totaled $68.6 million as of June 30, 2023 and have not been recorded on the accompanying consolidated balance sheets. The Company has credit exposures with these authorized but not cleared transactions; however, the expected credit losses recorded were not material as of June 30, 2023. See Note 7 for additional discussion about acquired card receivables. Litigation From time to time, the Company is involved in lawsuits, claims, investigations, and proceedings that arise in the ordinary course of business. The Company records a provision for a liability when management believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of each of June 30, 2023 and 2022, the Company’s reserve for litigation is immaterial. The Company reviews these provisions periodically and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable To Common Stockholders | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable To Common Stockholders | NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented (in thousands, except per share amounts): Year ended June 30, 2023 2022 2021 Numerator: Net loss attributable to common stockholders $ (223,725) $ (326,361) $ (98,720) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders Basic and diluted 105,976 101,753 82,813 Net loss per share attributable to common stockholders: Basic and diluted $ (2.11) $ (3.21) $ (1.19) Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been anti-dilutive, were as follows as of the dates presented (in thousands): June 30, 2023 2022 2021 Stock options 2,588 3,858 6,552 Restricted stock units 4,184 3,279 1,176 Total 6,772 7,137 7,728 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net loss | $ (223,725) | $ (326,361) | $ (98,720) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Alison Wagonfeld [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Action Date Trading Arrangement Total Shares to be Sold Expiration Date Rule 10b5-1 (1) Non-Rule 10b5-1 (2) Alison Wagonfeld Adopt 6/9/2023 X 1,039 8/23/2024 (1) Intended to satisfy the affirmative defense of Rule 10b5-1(c). The Rule 10b5-1 plan included a representation from the participant to the broker administering the plan that such person was not in possession of any material nonpublic information regarding us or our securities subject to the Rule 10b5-1 plan at the time the Rule 10b5-1 plan was entered into. This representation was made as of the date of adoption of the Rule 10b5-1 plan, and speaks only as of that date. In making this representation, there is no assurance with respect to any material nonpublic information of which the participant was unaware, or with respect to any material nonpublic information acquired by the participant or us after the date of the representation. (2) Not intended to satisfy the affirmative defense of Rule 10b5-1(c). | |
Name | Alison Wagonfeld | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 6/9/2023 | |
Arrangement Duration | 441 days | |
Aggregate Available | 1,039 | 1,039 |
The Company and Its Significa_2
The Company and Its Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Follow-on Offering | Follow-on OfferingOn September 24, 2021, the Company closed a public offering in which the Company issued and sold a total of 5,073,529 shares of common stock at a public offering price of $272.00 per share. The Company received $1.3 billion in net proceeds from this public offering, after deducting underwriting discounts, commissions, and other offering costs of $38.9 million. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of ConsolidationThe accompanying consolidated financial statements include the accounts of the Company and were prepared in conformity with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC). All intercompany accounts and transactions have been eliminated. |
Segment Reporting | Segment Reporting The Company operates as one operating segment because its chief operating decision maker, who is the Chief Executive Officer, reviews its financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. The Company's long-lived assets are mainly located in the United States (U.S.) and revenue is mainly generated in the U.S. |
Business Combinations | Business Combinations The Company accounts for acquisitions using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of the identifiable assets and liabilities is recorded as goodwill. The determination of the fair value of assets acquired and liabilities assumed involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the date of the acquisition. Significant management inputs used in the estimation of fair value of assets acquired and liabilities assumed include, but are not limited to, expected future cash flows, future changes in technology, estimated replacement costs, discount rates, and assumptions about the period of time the brand will continue to be used in the Company’s product portfolio. Where appropriate, external advisers are consulted to assist in the determination of fair value. For non-observable market values, fair value has been determined using acceptable valuation methods (e.g., relief from royalty methods). The results of operations for businesses acquired are included in the financial statements from the acquisition date. Acquisition-related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred. During the measurement period, not to exceed one year from the date of acquisition, |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make various estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Management regularly assesses these estimates, including, but not limited to useful lives of long-lived assets; capitalization of internal-use software costs; incremental borrowing rates for right-of-use (ROU) operating lease assets, and operating lease liabilities; the estimate of losses on accounts receivable, acquired card receivables and other financial assets; accrual for rewards; variable consideration used in revenue recognition for certain contracts; benefit periods used to amortize deferred costs; reserve for losses on funds held for customers; inputs used to value certain stock-based compensation awards; and valuation of income taxes. The Company evaluates these estimates and assumptions and adjusts them accordingly. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. |
Funds Held for Customers and Customer Fund Deposits | Funds Held for Customers and Customer Fund DepositsFunds held for customers and the corresponding liability on customer fund deposits represent funds that are collected from customers for payments to their suppliers and funds that are collected on behalf of customers. Generally, these funds held for customers are initially deposited in separate bank accounts until remitted to the customers’ suppliers or to the customers. Funds held for customers also include amounts that are held by or deposited into the accounts of payment processing companies and receivables from customers. The funds held for customers are restricted for the purpose of satisfying the customers’ fund obligations and are not available for general business use by the Company. The Company partially invests funds held for customers in highly liquid investments with maturities of three months or less, consisting of money market funds and marketable debt securities, and in marketable debt securities with maturities of more than three months up to thirteen months at the time of purchase. Funds held for customers that are invested in marketable debt securities are classified as available-for-sale. These investments are carried at fair value, with unrealized gains or losses included in accumulated other comprehensive loss on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss. The Company contractually earns interest on funds held for customers with associated counterparties. |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash and cash equivalents consist of cash in banks, highly liquid investments with maturities of three months or less at the time of purchase, and securities purchased under overnight reverse repurchase agreements. Restricted cash consists of (i) amounts restricted under deposit account control agreements, (ii) minimum cash balances that are required to be maintained by certain banks, (iii) cash collateral required by the Company’s lessors to satisfy letter of credit requirements under its lease agreements, (iv) cash collateral required by a bank in connection with the Company’s money transmission activities, and (v) cash in bank and cash deposits held by payment processing companies included in funds held for customers. Restricted cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase that are included in funds held for customers. Except for the restricted cash included in funds held for customers, the current and non-current portion of the restricted cash is included in prepaid expenses and other current assets and in other assets, respectively, in the accompanying consolidated balance sheets. |
Short–term investments | Short–term Investments The Company invests excess cash in a diversified portfolio of highly rated marketable debt securities with maturities of more than three months. These securities are classified as available-for-sale and recorded at fair value. The Company determines the appropriate classification of investments in marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. After consideration of risk versus reward attributes and liquidity requirements, the Company may sell these debt securities prior to their stated maturities. As the Company views these securities as available to support current operations, the Company classifies highly liquid securities with maturities beyond 12 months as current assets. Unrealized gains or losses are included in accumulated other comprehensive income (loss) on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, restricted cash, restricted cash equivalents, short-term investments, accounts receivable, and acquired card receivables (collectively referred to as Financial Assets). The Company maintains its cash, cash equivalents, restricted cash, restricted cash equivalents and short-term investments with large multinational financial institutions that may at times exceed federally insured limits. In connection with recent instability in the U.S. banking system, the Company's management has taken incremental precautions to safeguard its assets and evaluate the nature and extent of its financial partnerships. Management believes that the financial institutions with which the Company does business are financially sound with minimal credit risk. Management further believes the associated risk of concentration for the Company’s investments is mitigated by holding a diversified portfolio of highly rated investments consisting of money market funds and short-term debt securities. The Company performs credit evaluations to verify the credit quality of its financial assets and determine any at-risk receivables. An allowance for potential credit losses on Financial Assets is recognized, if material. As of June 30, 2023 and 2022, the allowance for potential credit losses related to accounts receivable and acquired card receivables totaled approximately $15.9 million and $5.8 million, respectively. These amounts do not include the immaterial allowance for potential credit losses on the purchase of card receivables that have been authorized but not cleared at the end of the periods (see Note 15). There were no customers that exceeded 10% of the Company’s total revenue during each of the years ended June 30, 2023, 2022, and 2021. |
Foreign Currency | Foreign Currency The functional currency of the Company's foreign subsidiaries is the U.S. dollar, which is the Company's reporting currency. Gains and losses from the remeasurement of transactions denominated in foreign currencies other than the functional currency of the foreign subsidiaries are included in other (expense) income, net in the accompanying statements of operations |
Accounts Receivable and Unbilled Revenue | Accounts Receivable and Unbilled Revenue Accounts receivable, which consist primarily of fees from customers, including accounting firm and financial institution customers, are recorded at the invoiced amount, net of an allowance for credit losses. Unbilled revenue is recorded based on amounts that the Company expects to invoice to customers in the subsequent period. The allowance for credit losses related to accounts receivable and unbilled revenue is based on the Company’s assessment of the collectability of the receivables. The Company regularly reviews the adequacy of the allowance for credit losses by considering the age of each outstanding invoice and the |
Acquired Card Receivables | Acquired Card Receivables The portfolios of acquired card receivables are U.S. based commercial accounts diversified across various geographies and industries. The Company manages credit risk based on common risk characteristics including financial condition of the users of the spend and expense management application. Acquired card receivables are reported at their principal amounts outstanding net of allowance for credit losses. Acquired card receivables are deemed to be held for investment when such receivables are not acquired specifically for resale. As part of the onboarding process, users of the Company’s free spend and expense management application are provided with a credit limit subject to a credit policy and underwriting process which is periodically re-performed based on risk indicators and the size of the credit limit. Spending businesses may over fund their accounts through payments in excess of the outstanding balance. Such over funded amounts are recorded as prepaid card deposits, which are included in other accruals and current liabilities in the accompanying consolidated balance sheets. Acquired card receivables represent amounts due on card transactions integrated with the spend and expense management application. The Company is contractually obligated to purchase all card receivables from U.S.-based card issuing banks (Issuing Banks) including authorized transactions that have not cleared at the Issuing Banks. Acquired card receivables are recorded at the time a transaction clears the Issuing Banks and generally payment for the card receivables is made on the day the transaction clears the Issuing Banks. The acquired card receivables portfolio consists of a large group of smaller balances from spending businesses across a wide range of industries. The allowance for credit losses reflects the Company’s estimate of uncollectible balances resulting from credit and fraud losses and is based on the determination of the amount of expected losses inherent in the acquired card receivable as of the reporting date. An estimate of lifetime expected credit losses is performed by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period beyond the balance sheet date. In estimating expected credit losses, the Company uses models that entail a significant amount of judgment. The primary areas of judgment used in measuring the quantitative components of the Company’s reserves relate to the attributes used to segment the portfolio, the determination of the historical loss experience look-back period, and the weighting of historical loss experience by monthly cohort. The Company uses these models and assumptions to determine the reserve rates applicable to the outstanding acquired card receivable balances to estimate reserves for expected credit losses. Based on historical loss experience, the probability of default decreases over time, therefore the attribute used to segment the portfo lio is the length of time since an account’s credit limit origination. |
Derivatives Instruments | Derivative Instruments The Company retains a beneficial interest derivative in the form of a deferred purchase price on card receivables sold. This derivative is not designated as a hedging instrument, and is initially recorded at fair value, with subsequent changes in fair value recorded through other gains and losses. The Company does not use derivative instruments for speculative or trading purposes. The beneficial interest derivative is a residual interest in collections on card receivables sold, and serves to align the economic interests of the Company as servicer with those of the purchasing bank. Effective August 2022, the Company ceased selling acquired card receivables (see Note 7). |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, generally one The Company capitalizes internal and external direct costs incurred related to obtaining or developing internal-use software. Costs incurred during the application development stage are capitalized and are amortized using the straight-line method over the estimated useful lives of the software, generally three years commencing on the first day of the month following when the software is ready for its intended use. Costs related to planning and other preliminary project activities and post-implementation activities are expensed as incurred. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of the acquisition over the net fair value of identifiable assets acquired and liabilities assumed. Goodwill amounts are not amortized. |
Intangible Assets | Intangible Assets The Company generally recognizes assets for customer relationships, developed technology and finite-lived trade names from an acquisition. Finite-lived intangible assets are carried at acquisition cost less accumulated amortization. Such amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets, generally from three |
Impairment | Impairment Goodwill is tested annually at the reporting unit level for impairment during the fourth fiscal quarter or more frequently if facts or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. The Company has one reporting unit; therefore, all of its goodwill is associated with the entire company. Management has the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the Company is less than the carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of the Company is less than the carrying amount, a quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company also has the option to bypass the qualitative assessment and perform the quantitative assessment. The Company reviews the valuation of long-lived assets, including property and equipment and finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The recoverability of long-lived assets or asset groups is calculated based on the estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset. Impairment testing is performed at the asset group level. Based on management's assessment, the Company did not recognize any impairment losses on its goodwill, finite-lived intangible assets or other long-lived assets during the periods presented herein. |
Leases | Leases The Company determines if an arrangement is a lease, or contains a lease, by evaluating whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. The Company determines the classification of the lease, whether operating or financing, at the lease commencement date, which is the date the leased assets are made available for use. The Company uses the non-cancelable lease term when recognizing the ROU assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. The Company accounts for lease components and non-lease components as a single lease component. Modifications are assessed to determine whether incremental differences result in new contract terms and accounted for as a new lease or whether the additional right of use should be included in the original lease and continue to be accounted with the remaining ROU asset. Operating lease ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives. Variable costs, such as common area maintenance costs, are not included in the measurement of the ROU assets and lease liabilities, but are expensed as incurred. As the implicit rate of the leases is not determinable, the Company uses an incremental borrowing rate in determining the present value of the lease payments. Lease expenses are recognized on a straight-line basis over the lease term. The Company does not recognize ROU assets on lease arrangements with a term of 12 months or less. Lease expense for such arrangements is recognized on a straight-line basis over the term of the lease. |
Accrued Rewards | Accrued Rewards Spending businesses participate in rewards programs based on card transactions. The Company records a rewards liability that represents the estimated cost for rewards owed to spending businesses. Rewards liabilities are impacted over time by redemption costs and by spending businesses meeting eligibility requirements. Changes in the rewards liabilities during the period are recognized as an increase or decrease to sales and marketing expense in the accompanying consolidated statements of operations. The accrued rewards liability, which was $55.4 million and $36.2 million as of June 30, 2023 and 2022, respectively, is included in other accruals and current liabilities in the accompanying consolidated balance sheets. The rewards expense, which was $173.9 million, $95.2 million, and $4.5 million, during the years ended June 30, 2023, 2022, and 2021, respectively, is included in sales and marketing expenses in the accompanying consolidated statements of operations. |
Revenue Recognition | Revenue Recognition The Company enters into contracts with small and midsize businesses (SMB) and accounting firm customers to provide access to the functionality of the Company’s cloud-based payments platform to process transactions. These contracts are either monthly contracts paid in arrears or upfront, or annual arrangements paid up front. The Company charges its SMB and accounting firm customers subscription fees for access to its platform either based on the number of users or per customer account and the level of service. The Company generally also charges these customers transaction fees based on transaction volume and the category of transaction. The contractual price for subscription and transaction services is based on either negotiated fees or the rates published on the Company’s website. The Company accounts for its annual and monthly contracts as a series of distinct services that are satisfied over time. The Company determines the transaction price for such contracts by estimating the total consideration to be received over the contract term from subscription and transaction fees. The Company recognizes the transaction price as a single performance obligation based on the proportion of transactions processed to the total estimated transactions to be processed over the contract period. Revenues recognized exclude amounts collected on behalf of third parties, such as sales taxes collected and remitted to governmental authorities. The Company enables SMB and accounting firm customers to make virtual card payments to their suppliers. The Company also facilitate the extension of credit to spending businesses through the Divvy product in the form of Divvy cards. The spending businesses utilize the credit on Divvy cards as a means of payment for goods and services provided by their suppliers. Virtual card payments and Divvy cards are originated through agreements with Issuing Banks. The agreements with the Issuing Banks allow for card transactions on the MasterCard and Visa networks. For each virtual card and Divvy card transaction, suppliers are required to pay interchange fees to the issuer of the card. Based on the Company's agreements with its Issuing Banks, the Company recognizes the interchange fees as revenue gross or net of rebates received from the Issuing Bank based on the Company's determination of whether it is the principal or agent under the agreements. The Company enters into multi-year contracts with financial institution customers to provide access to the Company’s cloud-based payments platform to process transactions. These contracts typically include fees for initial implementation services that are paid during the period the implementation services are provided as well as fees for subscription and transaction processing services, which are subject to guaranteed monthly minimum fees that are paid monthly over the contract term. These contracts enable the financial institutions to provide their customers with access to online bill pay services through the financial institutions’ online platforms. Implementation services are required up-front to establish an infrastructure that allows the financial institutions’ online platforms to communicate with the Company’s online platform. A financial institution’s customers cannot access online bill pay services until implementation is complete. Initial implementation services and transaction processing services are not capable of being distinct from the subscription for online bill pay services and are combined into a single performance obligation. The total consideration in these contracts varies based on the number of users and transactions to be processed. The Company has determined it meets the variable consideration allocation exception and therefore recognizes guaranteed monthly payments and any overages as revenue in the month they are earned. Implementation fees are recognized based on the proportion of transactions processed to the total estimated transactions to be processed over the contract period. The ability of the financial institution customers to renew their contracts without having to pay up-front implementation fees again could provide them a material right. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. Interest on Funds Held for Customers The Company also earns revenue from interest earned on funds held for customers that are initially deposited into the Company’s bank accounts that are separate from the Company’s operating cash accounts until remitted to the customers or their suppliers. The Company partially invests funds held for customers in highly liquid investments with maturities of three months or less and in marketable debt securities with maturities of three months to one year at the time of purchase. Interest and fees earned are recognized based on the effective interest method and also include the accretion of discounts and the amortization of premiums on marketable debt securities. |
Deferred Revenue | Deferred Revenue Subscription and transaction fees from customers for which the Company has annual or multi-year contracts are generally billed in advance. These fees are initially recorded as deferred revenue and subsequently recognized as revenue as the performance obligation is satisfied. |
Deferred Costs | Deferred Costs Deferred costs consist of (i) deferred sales commissions that are incremental costs of obtaining customer contracts and (ii) deferred service costs, primarily direct payroll costs, for implementation services provided to customers prior to the launching of the Company’s products for general availability (go-live) to customers. Sales commissions paid on renewals are not material and are not commensurate with sales commissions paid on the initial contract. Deferred sales commissions are amortized ratably over the estimated |
Service Costs | Service Costs Service costs consist primarily of personnel-related costs, including stock-based compensation expenses, for the Company’s customer success and payment operations teams, outsourced support services for the Company's customer success team, costs that are directly attributed to processing customers’, and spending businesses' transactions (such as the cost of printing checks, postage for mailing checks, fees associated with the issuance and processing of card transactions, fees for processing payments, such as ACH, check and cross-border wires), direct and amortized costs for implementing and integrating the Company’s platform into the customers’ systems, costs for maintaining, optimizing, and securing the Company’s cloud payments infrastructure, amortization of capitalized internal-use software (excluding capitalized stock-based compensation), fees on the investment of customer funds, and allocation of overhead costs. |
Research and Development | Research and DevelopmentCosts incurred in research and development, excluding development costs eligible for capitalization as internal-use software, are expensed as incurred. |
Stock-Based Compensation | Stock-based Compensation The Company measures stock-based compensation for stock options and purchase rights issued under the Employee Stock Purchase Plan (ESPP) at fair value on the date of grant using the Black-Scholes option-pricing model. The Company measures stock-based compensation for restricted stock units (RSUs) and market-based RSUs based on the closing price of the Company’s stock and using the Monte Carlo simulation model, respectively, on the date of grant. The Company measures stock-based compensation for performance-based awards at fair value on the date of grant by using the Black-Scholes valuation option-pricing model or other valuation technique depending on the nature of the award. Awards that are classified as liabilities are remeasured at fair value at the end of each reporting period. The Company recognizes compensation costs on a straight-line basis over the requisite service period, which is generally the vesting term of four years for stock options and RSUs, the offering period of one year for purchase rights under the ESPP, and the requisite period of one to three years for market-based RSUs. Stock compensation costs are reduced by the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the forfeiture rate based on its historical experience for annual grant years where the majority of the vesting terms have been satisfied. The Company recognizes compensation costs for performance-based awards over the vesting period if it is probable that the performance condition will be achieved. The Black-Scholes option-pricing model and Monte Carlo simulation model require the use of highly subjective assumptions which determine the fair value of stock-based awards. The main assumptions used in the Black-Scholes option-pricing model include: Expected term – The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the stock-based awards. Expected volatility – The expected volatility was estimated based on the historical volatility of the Company’s common stock. Risk-free interest rate – The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of option. Expected dividend yield – The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero. |
Advertising | AdvertisingThe Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses during the years ended June 30, 2023, 2022, and 2021 were $39.0 million, $29.4 million, and $8.5 million, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of taxes payable or refundable for the current year and deferred income tax assets and liabilities for the future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the Company's assets and liabilities, net operating loss (NOL), and tax credit carryforwards. A valuation allowance is established to reduce deferred tax assets to the amount expected to be realized. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common StockholdersBasic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders for all periods presented since the effect of potentially dilutive securities is anti-dilutive given the net loss of the Company. |
New Accounting Pronouncements | New Accounting Pronouncements: Adopted In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance for Troubled Debt Restructurings (TDRs) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires a company to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The Company early adopted this ASU on a prospective basis beginning July 1, 2022. The Company does not expect the adoption to have a material impact on the Company's financial statements. Not Yet Adopted The Company does not expect that any other recently issued accounting pronouncements will have a significant effect on its financial statements. |
Fair Value Measurement | The Company measures and reports its cash equivalents, short-term investments, funds held for customers that are invested in money market funds and marketable debt securities, and contingent consideration at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. In determining fair value, the Company utilizes quoted market prices, or valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and also considers counterparty credit risk in its assessment of fair value. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Subscription and Transaction Fees Disaggregated by Customer Category | The table below shows the Company’s revenue from subscription and transaction fees, which are disaggregated by sales channel, and revenue from interest on funds held for customers (in thousands). Year ended June 30, 2023 2022 2021 SMBs, accounting firms, spending businesses and other $ 901,602 $ 603,171 $ 218,227 Financial institutions 43,108 30,194 14,028 Total subscription and transaction fees 944,710 633,365 232,255 Interest on funds held for customers 113,758 8,594 6,010 Total revenue $ 1,058,468 $ 641,959 $ 238,265 |
Summary of Deferred Costs | Deferred costs consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Deferred sales commissions: Current $ 6,523 $ 5,460 Non-current 12,317 9,187 Total deferred sales commissions $ 18,840 $ 14,647 Deferred service costs: Current $ 904 $ 720 Non-current 2,221 3,433 Total deferred service costs $ 3,125 $ 4,153 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Summary of Acquisition Purchase Consideration | The acquisition purchase consideration totaled $674.3 million, which consisted of the following (in thousands): Equity consideration (1) $ 510,218 Cash 164,087 Total $ 674,305 (1) This includes 1,788,372 shares of the Company’s common stock issued with a fair value based upon the opening market price on the acquisition date. This also includes the stock options assumed to replace stock options that were outstanding on the acquisition date under Invoice2go's 2014 Equity Incentive Plan. The fair value of these stock options was $21.7 million, which was the amount attributable to the pre-combination requisite service period. Equity consideration (1) $ 1,658,818 Cash 664,779 Total $ 2,323,597 (1) This includes 10,767,140 shares of the Company’s common stock issued with a fair value based upon the opening market price on the acquisition date. This also includes the stock options assumed to replace stock options that were granted after May 1, 2019 under Divvy’s 2016 Equity Incentive Plan and were outstanding on the acquisition date. The fair value of these stock options was $55.3 million, which was the amount attributable to the pre-combination requisite service period. |
Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash and cash equivalents $ 19,738 Accounts receivable and other assets 4,518 Intangible assets 91,219 Total identifiable assets acquired 115,475 Accounts payable and other liabilities (26,618) Net identifiable assets acquired 88,857 Goodwill 585,448 Net assets acquired $ 674,305 The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash $ 108,689 Acquired card receivables 159,784 Accounts receivable 7,435 Card receivables held for sale 12,730 Property and equipment 15,805 Intangible assets 423,000 Prepaid expenses and other assets 57,669 Total identifiable assets acquired 785,112 Accounts payable and other liabilities (153,855) Outstanding borrowings from credit facilities (79,703) Total liabilities assumed (233,558) Net identifiable assets acquired 551,554 Goodwill 1,772,043 Net assets acquired $ 2,323,597 |
Summary of Preliminary Fair Values Allocated to Identifiable Intangible Assets and Estimated Useful Lives | The preliminary fair values allocated to the identifiable intangible assets (in thousands) and their estimated useful lives are as follows: Preliminary Weighted average Customer relationships $ 61,269 10.0 Developed technology 15,908 3.0 Trade name 14,042 3.0 Total $ 91,219 The fair values allocated to the identifiable intangible assets (in thousands) and their estimated useful lives are as follows: Fair value Weighted average useful life (in years) Customer relationships $ 198,000 10.0 Developed technology 191,000 6.0 Trade name 34,000 3.0 Total $ 423,000 |
Summary of Unaudited Proforma Financial Information | The pro forma net loss for the year ended June 30, 2021 was adjusted to exclude nonrecurring acquisition-related costs of $20.6 million. Year ended June 30, 2022 2021 Revenue $ 648,476 $ 274,842 Net loss $ (327,136) $ (149,003) Year ended 2021 Total revenue $ 307,618 Net loss $ (223,470) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis | The following tables set forth the fair value of assets and liabilities that were measured at fair value on a recurring basis based on the three-tier fair value hierarchy as of the dates presented (in thousands): June 30, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,131,621 $ — $ — $ 1,131,621 Certificates of deposit — 2,578 — 2,578 Corporate bonds — 45,301 — 45,301 U.S. treasury securities 44,856 — — 44,856 1,176,477 47,879 — 1,224,356 Short-term investments: Corporate bonds — 479,483 — 479,483 U.S. treasury securities 408,368 — — 408,368 U.S. agency securities — 57,967 — 57,967 Asset-backed securities — 51,193 — 51,193 Certificates of deposit — 46,099 — 46,099 408,368 634,742 — 1,043,110 Funds held for customers: Restricted cash equivalents Money market funds 713,469 — — 713,469 713,469 — — 713,469 Short-term investments Corporate bonds — 433,920 — 433,920 Certificates of deposit — 233,291 — 233,291 U.S. agency securities — 27,458 — 27,458 Asset-backed securities — 70,661 — 70,661 U.S. treasury securities 81,074 — — 81,074 81,074 765,330 — 846,404 Total assets measured at fair value $ 2,379,388 $ 1,447,951 $ — $ 3,827,339 Liabilities Contingent consideration (1) — — (12,035) — Total liabilities measured at fair value $ — $ — $ (12,035) $ — (1) The Company used the probability-weighted discounted cash flow method to estimate the contingent consideration. The significant inputs used in the fair value measurement of the contingent consideration are the probability of payout and discount rate. As these inputs are not based on observable market data, the liability represents a Level 3 measurement within the fair value hierarchy. June 30, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,424,259 $ — $ — $ 1,424,259 Corporate bonds — 11,430 — 11,430 1,424,259 11,430 — 1,435,689 Short-term investments: Corporate bonds — 597,204 — 597,204 U.S. treasury securities 421,728 — — 421,728 Asset-backed securities — 51,406 — 51,406 Certificates of deposit — 38,155 — 38,155 421,728 686,765 — 1,108,493 Funds held for customers: Restricted cash equivalents Money market funds 34,703 — — 34,703 Corporate bonds — 133,557 — 133,557 34,703 133,557 — 168,260 Short-term investments Corporate bonds — 807,685 — 807,685 Certificates of deposit — 397,533 — 397,533 Municipal bonds — 6,516 — 6,516 Asset-backed securities — 69,912 — 69,912 U.S. treasury securities 3,072 — — 3,072 3,072 1,281,646 — 1,284,718 Beneficial interest derivative on card receivables sold — — 398 398 Total assets measured at fair value $ 1,883,762 $ 2,113,398 $ 398 $ 3,997,558 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-Term Investments | Short-term investments consisted of the following as of the dates presented (in thousands): June 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 481,658 $ 207 $ (2,382) $ 479,483 U.S. treasury securities 409,586 42 (1,260) 408,368 Asset-backed securities 51,321 8 (136) 51,193 Certificates of deposit 46,099 — — 46,099 U.S. agency securities 58,166 — (199) 57,967 $ 1,046,830 $ 257 $ (3,977) $ 1,043,110 June 30, 2022 Amortized Gross Gross Fair value Corporate bonds $ 601,987 $ 3 $ (4,786) $ 597,204 U.S. treasury securities 424,644 1 (2,917) 421,728 Asset-backed securities 51,622 — (216) 51,406 Certificates of deposit 38,155 — — 38,155 $ 1,116,408 $ 4 $ (7,919) $ 1,108,493 |
Schedule of Gross Unrealized Loss and Fair Values | The following table presents the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): June 30, 2023 Fair value Unrealized Corporate bonds $ 296,562 $ (2,382) U.S. treasury securities 213,726 (1,260) Asset-backed securities 38,426 (136) U.S. agency securities 57,967 (199) Total $ 606,681 $ (3,977) June 30, 2022 Fair value Unrealized Corporate bonds $ 392,699 $ (4,786) U.S. treasury securities 411,787 (2,917) Asset backed securities 51,406 (216) Total $ 855,892 $ (7,919) |
Funds Held for Customers (Table
Funds Held for Customers (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Funds Held For Customers | Funds held for customers consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Restricted cash $ 1,793,088 $ 1,685,937 Restricted cash equivalents 713,469 168,260 Funds receivable 12,822 6,747 Corporate bonds 433,920 807,685 Certificates of deposit 233,291 397,533 Municipal bonds — 6,516 Asset-backed securities 70,661 69,912 U.S. agency securities 27,458 — U.S. treasury securities 81,074 3,072 Total funds held for customers 3,365,783 3,145,662 Less - income earned by the Company included in other current assets (9,874) (3,002) Total funds held for customers, net of income earned by the Company $ 3,355,909 $ 3,142,660 |
Summary of Fair Value of Funds Held For Customers Invested In Short Term Marketable Debt Securities | Below is a summary of the fair value of funds held for customers that were invested in short-term marketable debt securities as of the dates presented (in thousands): June 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 433,936 $ 18 $ (34) $ 433,920 Certificates of deposit 233,290 1 — 233,291 Asset-backed securities 70,993 — (332) 70,661 U.S. agency securities 27,484 5 (31) 27,458 U.S. treasury securities 81,309 1 (236) 81,074 Total $ 847,012 $ 25 $ (633) $ 846,404 June 30, 2022 Amortized Gross Gross Fair value Corporate bonds $ 809,113 $ 1 $ (1,429) $ 807,685 Certificates of deposit 397,533 — — 397,533 Municipal bonds 6,542 — (26) 6,516 Asset backed securities 70,574 — (662) 69,912 U.S. treasury securities 3,082 — (10) 3,072 Total $ 1,286,844 $ 1 $ (2,127) $ 1,284,718 |
Summary of Gross Unrealized Losses And Fair Values | The following tables present the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): June 30, 2023 Fair value Unrealized Corporate bonds $ 34,530 $ (34) Asset-backed securities 70,661 (332) U.S. agency securities 22,494 (31) U.S. treasury securities 74,888 (236) Total $ 202,573 $ (633) June 30, 2022 Fair value Unrealized Corporate bonds $ 301,625 $ (1,429) Municipal bonds 6,516 (26) Asset backed securities 64,361 (662) U.S. treasury securities 3,072 (10) Total $ 375,574 $ (2,127) |
Acquired Card Receivables (Tabl
Acquired Card Receivables (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Acquired Card Receivables [Abstract] | |
Schedule of Acquired Card Receivables | Acquired card receivables consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Gross amount of acquired card receivables $ 474,148 $ 261,806 Less: allowance for credit losses (15,498) (5,414) Total $ 458,650 $ 256,392 |
Summary of Acquired Card Receivables by Class | Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands): June 30, 2023 2022 Current and less than 30 days past due $ 463,704 $ 257,618 30 ~ 59 days past due 2,507 1,677 60 ~ 89 days past due 4,544 1,199 90 ~ 119 days past due 3,196 1,186 Over 119 days past due 197 126 Total $ 474,148 $ 261,806 |
Summary of Change in Allowance for Credit Losses | Below is a summary of the changes in allowance for credit losses (in thousands): June 30, 2023 2022 Balance, beginning $ 5,414 $ 1,740 Initial allowance for credit losses on purchased card receivables with credit deterioration 10 313 Provision for expected credit losses 32,015 19,566 Charge-off amounts (24,120) (18,005) Recoveries collected 2,179 1,800 Balance, ending $ 15,498 $ 5,414 |
Summary Of Fair Value Of Consideration Received From Transfer Of Card Receivables | Below is a summary of the fair value of consideration received from the transfer of card receivables accounted for as a sale during the periods presented (in thousands): Year ended June 30, 2023 (1) 2022 Initial fair value of consideration received: Cash $ 316,477 $ 1,483,481 Beneficial interest derivative 1,682 4,690 Total $ 318,159 $ 1,488,171 |
Summary of Transferred Card Receivables by Class | Below is a summary of outstanding transferred card receivables by class (i.e., past due status) that have not been charged-off and have not been recorded on the Company's consolidated balance sheets, but with which the Company has a continuing involvement through its servicing agreements, as of the dates presented (in thousands): June 30, 2023 (1) 2022 Current and less than 30 days past due $ — $ 56,162 30 ~ 59 days past due — 292 60 ~ 89 days past due — 375 90 ~ 119 days past due — 422 Over 119 days past due — 30 Total $ — $ 57,281 (1) Effective August 2022, the Company ceased selling acquired card receivables |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Software and equipment $ 20,971 $ 20,102 Capitalized software 53,950 21,457 Furniture and fixtures 12,598 10,608 Leasehold improvements 39,068 35,105 Property and equipment, gross 126,587 87,272 Less: accumulated depreciation and amortization (45,023) (30,287) Property and equipment, net $ 81,564 $ 56,985 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill, which is primarily attributable to expected synergies from acquisitions and is not deductible for U.S. federal and state income tax purposes, consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Balance, beginning $ 2,362,893 $ 1,772,043 Addition related to acquisition during the period 33,441 585,448 Measurement period adjustments 175 (2,876) Adoption of ASU 2021-08 — 8,278 Balance, ending $ 2,396,509 $ 2,362,893 |
Schedule of Intangible Assets | Intangible assets consisted of the following as of the dates presented (amounts in thousands): June 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted average remaining Customer relationships $ 259,269 $ (52,483) $ 206,786 8.0 Developed technology 215,958 (77,178) 138,780 3.8 Trade name 48,042 (32,181) 15,861 1.0 Total $ 523,269 $ (161,842) $ 361,427 Jun 30, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted average remaining Customer relationships $ 259,269 $ (26,556) $ 232,713 9.0 Developed technology 206,908 (38,909) 167,999 4.7 Trade name 48,042 (16,171) 31,871 2.0 Total $ 514,219 $ (81,636) $ 432,583 |
Schedule of Amortization of Finite-Lived Intangible Assets | Amortization of finite-lived intangible assets was as follows during the years ended June 30, 2023 and 2022 (in thousands): June 30, 2023 2022 Cost of revenue $ 38,269 $ 36,256 Sales and marketing 41,936 39,721 Total $ 80,205 $ 75,977 |
Schedule of Future Amortization of Finite-Lived Intangible Assets | As of June 30, 2023, future amortization of finite-lived intangible assets that will be recorded in cost of revenue and operating expenses is estimated as follows (in thousands): Fiscal years ending June 30: Amount 2024 $ 79,953 2025 61,234 2026 59,570 2027 56,912 2028 26,606 Thereafter 77,152 Total $ 361,427 |
Debt and Bank Borrowings (Table
Debt and Bank Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt and borrowings consisted of the following as of the dates presented (in thousands): June 30, 2023 2022 Current liabilities: Borrowings from credit facilities (including unamortized debt premium) (1) $ 135,046 $ 75,097 Non-current liabilities: Convertible senior notes: 2027 Notes, principal $ 575,000 $ 575,000 2025 Notes, principal 1,150,000 1,150,000 Less: unamortized issuance costs (20,218) (27,015) Convertible senior notes, net $ 1,704,782 $ 1,697,985 Total $ 1,839,828 $ 1,773,082 (1) Unamortized debt issuance costs on the Revolving Credit Facility were $0.2 million and zero as of June 30, 2023 and June 30, 2022, respectively, and are included in Prepaid expense and other current assets on the consolidated balance sheet. |
Convertible Debt | As of June 30, 2023 and 2022, the Notes consisted of the following (in thousands): June 30, 2023 June 30, 2022 2027 Notes 2025 Notes 2027 Notes 2025 Notes Liability component: Principal $ 575,000 $ 1,150,000 $ 575,000 $ 1,150,000 Less: unamortized debt issuance costs (10,188) (10,030) (12,873) (14,142) Net carrying amount $ 564,812 $ 1,139,970 $ 562,127 $ 1,135,858 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Summary of Stock Option Activities | A summary of stock option activity as of June 30, 2023, and changes during the year ended June 30, 2023, is presented below: Number of Weighted Weighted Aggregate Outstanding at June 30, 2022 3,858 $ 18.28 6.97 $ 361,053 Exercised (1,063) $ 13.06 Forfeited (207) $ 29.06 Outstanding at June 30, 2023 2,588 $ 19.56 5.90 $ 258,093 Vested and expected to vest at June 30, 2023 (1) 2,560 $ 19.32 5.89 $ 255,787 Vested and exercisable at June 30, 2023 2,367 $ 15.62 5.79 $ 242,525 (1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options. |
Summary of Fair Value of Options Granted Black-Scholes Option-Pricing Model Assumptions | The fair value of options granted during the years ended June 30, 2022, and 2021 was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Year ended June 30, 2022 2021 Expected term (in years) 2.00 to 7.05 6.25 Expected volatility 30.0% to 81.2% 35.0% to 85.1% Risk-free interest rate 0.20% to 2.88% 0.38% to 1.03% Expected dividend yield 0 % 0 % |
Summary of RSU Activity | A summary of RSU activity as of June 30, 2023, and changes during the year ended June 30, 2023, is presented below. Number of shares (1) (in thousands) Weighted Nonvested at June 30, 2022 3,279 $ 178.85 Granted 3,322 $ 120.25 Vested (1,640) $ 164.38 Forfeited (777) $ 165.37 Nonvested at June 30, 2023 4,184 $ 140.50 (1) Includes RSU, market-based RSUs and performance-based RSUs. |
Schedule of Fair Value of ESPP Offerings | The fair value of ESPP offerings during the years ended June 30, 2023, 2022, and 2021 was estimated at the date of the offering using the Black-Scholes option-pricing model with the following assumptions: Year ended June 30, 2023 2022 2021 Expected term (in years) 0.4 to 1.0 0.4 to 1.0 0.5 to 1.00 Expected volatility 81.8% to 82.5% 76.0% to 77.3% 81.0% to 88.4% Risk-free interest rate 3.39% to 4.89% 0.06% to 0.88% 0.05% to 0.13% Expected dividend yield 0 % 0 % 0 % |
Summary of Stock Based Compensation Cost | Stock-based compensation cost by award type (in thousands): Year ended 2023 2022 2021 Stock options $ 37,882 $ 55,667 $ 45,035 RSUs (1) 251,456 134,222 23,225 Performance-based awards 17,914 — — Market-based RSUs 4,308 2,755 — Employee stock purchase plan 11,280 8,918 4,191 Total stock-based compensation cost $ 322,840 $ 201,562 $ 72,451 Stock-based compensation cost from stock options, RSUs and purchase rights issued under the ESPP was included in the following line items in the accompanying consolidated statements of operations and consolidated balance sheets (in thousands): Year ended June 30, 2023 2022 2021 Revenue - subscription and transaction fees $ 188 $ — $ — Cost of revenue - service costs 9,111 5,144 2,938 Research and development 93,364 54,907 16,091 Sales and marketing (1) 130,421 60,237 8,547 General and administrative 80,619 76,869 44,411 Total amount charged to loss from operations 313,703 197,157 71,987 Property and equipment (capitalized internal-use software) 9,137 4,405 464 Total stock-based compensation cost $ 322,840 $ 201,562 $ 72,451 (1) In October 2022, the Company entered into separation and advisory agreements with its former Chief Revenue Officer (the CRO, and such agreements, the CRO Agreements). Pursuant to the CRO Agreements, the former CRO will serve the Company |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Other Income, Nonoperating [Abstract] | |
Schedule of Other (Expense) Income, Net | Other income (expense), net consisted of the following for the periods presented (in thousands): Year ended June 30, 2023 2022 2021 Interest expense $ (15,203) $ (9,419) $ (28,158) Lower of cost or market adjustment on card (1,545) (11,460) (691) Interest income 91,279 6,691 2,992 Other (1,675) 327 487 Total $ 72,856 $ (13,861) $ (25,370) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Loss before (Benefit from) Provision for Income Taxes | The components of loss before provision for (benefit from) income taxes were as follows during the periods presented (in thousands): Year ended June 30, 2023 2022 2021 Domestic $ (199,452) $ (304,508) $ (139,337) Foreign (23,465) (26,171) — Total $ (222,917) $ (330,679) $ (139,337) |
Components of (Benefit from) Provision for Income Taxes | The components of provision for (benefit from) income taxes were as follows during the periods presented (in thousands): Year ended June 30, 2023 2022 2021 Current: Federal $ 572 $ (247) $ — State 1,583 — — Foreign 14 — — Total current 2,169 (247) — Deferred: Federal (995) (1,115) (27,529) State (366) (2,956) (13,088) Foreign — — — Total deferred (1,361) (4,071) (40,617) Provision for (benefit from) income taxes $ 808 $ (4,318) $ (40,617) |
Difference between Income Taxes Computed At Federal Statutory Rate and (Benefit from) Provision for Income Taxes | The items accounting for the difference between the income taxes computed at the federal statutory rate and the provision for (benefit from) income taxes consisted of the following during the periods presented (in thousands): Year ended June 30, 2023 2022 2021 Expected benefit at U.S. federal statutory rate $ (46,813) $ (69,443) $ (29,261) State income taxes, net of federal benefit 8,087 13,509 (54) Stock-based compensation (1) 4,253 (93,705) (70,262) Research and development tax credits (19,974) (22,061) (8,846) Change in valuation allowance related to acquisition (2) (126) (2,831) (34,749) Change in valuation allowance (3) 48,321 174,477 94,244 Unrecognized tax benefit (390) (10,975) 6,766 Acquisition-related costs — 553 1,484 Foreign rate differential 4,942 5,496 — Other 2,508 662 61 Provision for (benefit from) income taxes $ 808 $ (4,318) $ (40,617) (1) The rate impact during the year ended June 30, 2023 relates to the impact of non-deductible stock compensation and shortfalls related to tax deductions being smaller than the associated stock compensation expense. The rate impact during the years ended June 30, 2022 and 2021 pertains windfalls from tax deductions being larger than the associated stock compensation expense. (2) The rate impact during the years ended June 30, 2022 and 2021 pertains to the income tax benefit recorded as a result of the acquisitions of Invoice2go and Divvy, respectively, which allowed the Company to release a portion of its valuation allowance due to the net deferred tax liabilities that were recorded as a result of such acquisitions. (3) The rate impact during the year ended June 30, 2023, 2022 and 2021 pertains to (i) an increase in valuation allowance due to the increase in deferred tax assets associated with losses, capitalized R&D expense and tax credits generated during the year, (ii) a change in deferred tax liability related to the 2025 Notes, and (iii) a change in deferred tax liability related to the acquisitions of Invoice2go and Divvy. |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows as of the dates presented (in thousands): June 30, 2023 2022 Deferred tax assets: Accruals and reserves $ 12,537 $ 9,325 Capitalized research and development 75,694 — Deferred revenue 1,084 1,794 Stock-based compensation 24,998 25,897 Net operating loss carryforwards 379,758 410,849 Research and development credits 62,299 46,013 Accrued rewards 1,855 2,867 Operating lease liabilities 21,616 24,203 Other 1,257 3,247 Total deferred tax assets before valuation allowance 581,098 524,195 Valuation allowance (479,449) (384,158) Deferred tax assets $ 101,649 $ 140,037 Deferred tax liabilities: Deferred contract costs $ (4,772) $ (3,745) Property and equipment (13,078) (19,316) Intangible assets (67,455) (99,483) Operating right of use assets (17,155) (19,490) Total deferred tax liabilities $ (102,460) $ (142,034) Net deferred tax liabilities $ (811) $ (1,997) |
Reconciliation of Unrecognized Tax Benefits | Below is the reconciliation of the unrecognized tax benefits related to federal and California research and development credits during the periods presented (in thousands): Year ended 2023 2022 2021 Balance at the beginning of the year $ 16,724 $ 22,185 $ 5,787 Add: Tax positions related to the current year 6,642 7,354 8,267 Increase from business combination — 160 668 Tax positions related to the prior year 226 — 7,463 Less: Tax positions related to the prior year — (12,761) — Statute of limitations lapse (292) (214) — Balance at the end of the year $ 23,300 $ 16,724 $ 22,185 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease expense during the years ended June 30, 2023, 2022, and 2021 are shown in the table below (in thousands): Year ended June 30 2023 2022 2021 Operating lease expense (1) $ 14,081 $ 12,983 $ 7,826 Variable lease expense, net of credit 2,251 2,909 2,252 Sublease income (586) (712) (55) Total lease cost $ 15,746 $ 15,180 $ 10,023 (1) Includes short-term lease, which is not material for the fiscal years ended June 30, 2023, 2022, and 2021 . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments | Future minimum lease payments as of June 30, 2023 are as follows (in thousands): Fiscal years ending June 30: Amount 2024 $ 14,649 2025 13,699 2026 13,292 2027 13,226 2028 13,590 Thereafter 35,919 Gross lease payments 104,375 Less - present value adjustments (17,737) Total operating lease liabilities, net $ 86,638 |
Schedule of Future Payments Under Other Agreements | Future payments under these other agreements as of June 30, 2023 are as follows (in thousands). Fiscal years ending June 30: Amount 2024 $ 14,612 2025 12,582 2026 6,004 2027 5,241 2028 5,491 Thereafter 29,373 Total $ 73,303 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable To Common Stockholders (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented (in thousands, except per share amounts): Year ended June 30, 2023 2022 2021 Numerator: Net loss attributable to common stockholders $ (223,725) $ (326,361) $ (98,720) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders Basic and diluted 105,976 101,753 82,813 Net loss per share attributable to common stockholders: Basic and diluted $ (2.11) $ (3.21) $ (1.19) |
Summary of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share Calculation | Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been anti-dilutive, were as follows as of the dates presented (in thousands): June 30, 2023 2022 2021 Stock options 2,588 3,858 6,552 Restricted stock units 4,184 3,279 1,176 Total 6,772 7,137 7,728 |
The Company and Its Significa_3
The Company and Its Significant Accounting Policies - Follow-on Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Sep. 24, 2021 | Sep. 14, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||||
Proceeds from issuance of common stock upon public offering, net of underwriting discounts and other offering costs | $ 1,300,000 | $ 0 | $ 1,341,122 | $ 0 | |
IPO | |||||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||||
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs, shares | 5,073,529 | ||||
Shares issued price to public per share | $ 272 | ||||
Payments for underwriting discounts commissions and other offering costs | $ 38,900 |
The Company and Its Significa_4
The Company and Its Significant Accounting Policies - Segment Reporting (Details) | 12 Months Ended | ||
Jun. 30, 2023 segment | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | |||
Number of operating segments | 1 | ||
Percentage of revenue from non US customers | 0.03 | 0.03 | 0 |
The Company and Its Significa_5
The Company and Its Significant Accounting Policies - Short-Term Investments (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | |||
Other-than-temporary impairment on short-term investments | $ 0 | $ 0 | $ 0 |
The Company and Its Significa_6
The Company and Its Significant Accounting Policies - Concentrations of Credit Risk (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 USD ($) Customer | Jun. 30, 2022 USD ($) Customer | Jun. 30, 2021 Customer | |
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||
Allowance for potential credit losses related to accounts receivable and acquired card receivables | $ | $ 15.9 | $ 5.8 | |
Revenue Benchmark | Customer Concentration Risk | |||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||
Number of customers exceed 10% of revenue | Customer | 0 | 0 | 0 |
Revenue Benchmark | Customer Concentration Risk | No Customer | |||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||
Concentration percentage | 10% | 10% | 10% |
The Company and Its Significa_7
The Company and Its Significant Accounting Policies - Acquired Card Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Accounting Policies [Abstract] | ||
Allowance for potential credit losses for acquired card receivables | $ 15.5 | $ 5.4 |
The Company and Its Significa_8
The Company and Its Significant Accounting Policies - Property and Equipment (Details) | Jun. 30, 2023 |
Minimum | |
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |
Estimated useful lives | 1 year |
Maximum | |
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |
Estimated useful lives | 4 years |
The Company and Its Significa_9
The Company and Its Significant Accounting Policies - Intangible Assets (Details) | Jun. 30, 2023 |
Minimum | |
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |
Estimated useful lives | 3 years |
Maximum | |
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |
Estimated useful lives | 10 years |
The Company and Its Signific_10
The Company and Its Significant Accounting Policies - Impairment (Details) | 12 Months Ended |
Jun. 30, 2023 reportingUnit | |
Accounting Policies [Abstract] | |
Number of reporting unit | 1 |
The Company and Its Signific_11
The Company and Its Significant Accounting Policies - Leases (Details) | Jun. 30, 2023 |
Minimum | |
Lessee Lease Description [Line Items] | |
Lease arrangements term | 12 months |
The Company and Its Signific_12
The Company and Its Significant Accounting Policies - Accrued Rewards (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Sales and Marketing Expenses | |||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||
Rewards and promotions expense | $ 173.9 | $ 95.2 | $ 4.5 |
Other Accruals and Current Liabilities | |||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||
Accrued rewards and promotions liability | $ 55.4 | $ 36.2 |
The Company and Its Signific_13
The Company and Its Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||
Offering period of purchase rights under ESPP | 1 year | ||
Risk-free interest rate | 0% | ||
Expected dividend yield | 0% | 0% | 0% |
Stock Options and RSUs | |||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||
Vesting term | 4 years |
The Company and Its Signific_14
The Company and Its Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | |||
Advertising expenses | $ 39 | $ 29.4 | $ 8.5 |
Revenue - Schedule of Subscript
Revenue - Schedule of Subscription and Transaction Fees Disaggregated by Customer Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 1,058,468 | $ 641,959 | $ 238,265 |
Subscription and transaction fees | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 944,710 | 633,365 | 232,255 |
Subscription and transaction fees | Small-to-midsize Business and Accounting Firm Customers | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 901,602 | 603,171 | 218,227 |
Subscription and transaction fees | Financial Institution Customers | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 43,108 | 30,194 | 14,028 |
Interest on funds held for customers | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 113,758 | $ 8,594 | $ 6,010 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Deferred revenue, recognized | $ 32,000 | |
Aggregate amount of transaction price allocated to performance obligations | 131,100 | |
Unbilled revenue | $ 14,000 | $ 11,400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 | ||
Disaggregation Of Revenue [Line Items] | ||
Aggregate amount of transaction price allocated to performance obligations, percentage | 77% | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01 | ||
Disaggregation Of Revenue [Line Items] | ||
Aggregate amount of transaction price allocated to performance obligations, percentage | 23% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01 | Minimum | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01 | Maximum | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 5 years |
Revenue - Summary of Deferred C
Revenue - Summary of Deferred Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Deferred Costs [Line Items] | |||
Amortization of deferred sales commissions | $ 6,600 | $ 5,200 | $ 3,600 |
Amortization of deferred service costs | 2,500 | 1,600 | $ 600 |
Deferred Sales Commissions | |||
Deferred Costs [Line Items] | |||
Current | 6,523 | 5,460 | |
Non-current | 12,317 | 9,187 | |
Total | 18,840 | 14,647 | |
Deferred Service Costs | |||
Deferred Costs [Line Items] | |||
Current | 904 | 720 | |
Non-current | 2,221 | 3,433 | |
Total | $ 3,125 | $ 4,153 |
Business Combination - Summary
Business Combination - Summary of Acquisition Purchase Consideration -Invoice2go (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 01, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Equity consideration | $ 3,375 | $ 488,494 | $ 1,603,543 | |
Invoice2go, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Sep. 01, 2021 | |||
Percentage of outstanding equity interests acquired | 100% | |||
Equity consideration | $ 510,218 | |||
Cash | 164,087 | |||
Total | $ 674,305 | |||
Business acquisition, common stock issued (shares) | 1,788,372 | |||
Invoice2go, Inc. | 2014 Equity Incentive Plan | ||||
Business Acquisition [Line Items] | ||||
Fair value of stock options | $ 21,700 |
Business Combination - Summar_2
Business Combination - Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed - Invoice2go (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 01, 2021 | Jun. 30, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,396,509 | $ 2,362,893 | $ 1,772,043 | |
Invoice2go, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 19,738 | |||
Accounts receivable and other assets | 4,518 | |||
Intangible assets | 91,219 | |||
Total identifiable assets acquired | 115,475 | |||
Accounts payable and other liabilities | (26,618) | |||
Net identifiable assets acquired | 88,857 | |||
Goodwill | 585,448 | |||
Net assets acquired | $ 674,305 |
Business Combination - Summar_3
Business Combination - Summary of Preliminary Fair Values Allocated to Identifiable Intangible Assets and Estimated Useful Lives - Invoice2go (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 01, 2021 |
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 523,269 | $ 514,219 | |
Customer relationships | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | 259,269 | 259,269 | |
Developed technology | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | 215,958 | 206,908 | |
Trade name | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 48,042 | $ 48,042 | |
Invoice2go, Inc. | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 91,219 | ||
Invoice2go, Inc. | Customer relationships | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 61,269 | ||
Weighted average useful life (in years) | 10 years | ||
Invoice2go, Inc. | Developed technology | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 15,908 | ||
Weighted average useful life (in years) | 3 years | ||
Invoice2go, Inc. | Trade name | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 14,042 | ||
Weighted average useful life (in years) | 3 years |
Business Combination - Narrativ
Business Combination - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||
Sep. 01, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | May 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 01, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,772,043,000 | $ 2,396,509,000 | $ 2,362,893,000 | $ 1,772,043,000 | |||
Total revenue | 1,058,468,000 | 641,959,000 | 238,265,000 | ||||
Net loss | $ (223,725,000) | (326,361,000) | (98,720,000) | ||||
Invoice2go, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill expected to be deductible for income tax purposes | $ 0 | ||||||
Adjustment to goodwill and deferred revenue | 8,000,000 | ||||||
Goodwill | $ 585,448,000 | ||||||
Total revenue | 32,900,000 | ||||||
Net loss | (32,000,000) | ||||||
Net loss | (327,136,000) | (149,003,000) | |||||
Invoice2go, Inc. | Nonrecurring Acquisition-Related Costs | |||||||
Business Acquisition [Line Items] | |||||||
Net loss | 19,000,000 | 20,600,000 | |||||
Invoice2go, Inc. | General and Administrative Expense | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related costs | 3,700,000 | ||||||
DivvyPay, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Changes in recognized amount of goodwill | $ 2,700,000 | ||||||
Goodwill | $ 1,772,043,000 | ||||||
Card receivables held for sale | $ 12,730,000 | ||||||
Indemnification asset | 20,400,000 | $ 13,400,000 | 20,400,000 | ||||
Total revenue | 10,300,000 | ||||||
Net loss | $ 11,400,000 | ||||||
Net loss | (223,470,000) | ||||||
DivvyPay, Inc. | Nonrecurring Acquisition-Related Costs | |||||||
Business Acquisition [Line Items] | |||||||
Net loss | (2,300,000) | ||||||
DivvyPay, Inc. | General and Administrative Expense | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition-related costs | $ 15,500,000 | ||||||
Customer relationships | Invoice2go, Inc. | Discount Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.123 | ||||||
Customer relationships | DivvyPay, Inc. | Discount Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.160 | ||||||
Developed technology | Invoice2go, Inc. | Discount Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.123 | ||||||
Developed technology | Invoice2go, Inc. | Pre-tax Royalty Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.150 | ||||||
Developed technology | DivvyPay, Inc. | Discount Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.160 | ||||||
Developed technology | DivvyPay, Inc. | Pre-tax Royalty Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.150 | ||||||
Trade name | Invoice2go, Inc. | Discount Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.123 | ||||||
Trade name | Invoice2go, Inc. | Pre-tax Royalty Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.025 | ||||||
Trade name | DivvyPay, Inc. | Discount Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.160 | ||||||
Trade name | DivvyPay, Inc. | Pre-tax Royalty Rate | |||||||
Business Acquisition [Line Items] | |||||||
Fair value measurement input | 0.010 |
Business Combination - Summar_4
Business Combination - Summary of Unaudited Pro Forma Financial Information (Details) - Invoice2go, Inc. - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||
Revenue | $ 648,476 | $ 274,842 |
Net loss | $ (327,136) | $ (149,003) |
Business Combination - Summar_5
Business Combination - Summary of Acquisition of Divvy (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 01, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Equity consideration | $ 3,375 | $ 488,494 | $ 1,603,543 | |
DivvyPay, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 01, 2021 | |||
Percentage of outstanding equity interests acquired | 100% | |||
Acquisition purchase consideration | $ 2,323,597 | |||
Equity consideration | 1,658,818 | |||
Cash | $ 664,779 | |||
Business acquisition, common stock issued (shares) | 10,767,140 | |||
DivvyPay, Inc. | 2016 Equity Incentive Plan | ||||
Business Acquisition [Line Items] | ||||
Fair value of stock options | $ 55,300 |
Business Combination - Summar_6
Business Combination - Summary of Fair Values of Assets Acquired and Liabilities Assumed - Divvy (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 01, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,396,509 | $ 2,362,893 | $ 1,772,043 | |
DivvyPay, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 108,689 | |||
Acquired card receivables | 159,784 | |||
Accounts receivable | 7,435 | |||
Card receivables held for sale | 12,730 | |||
Property and equipment | 15,805 | |||
Intangible assets | 423,000 | |||
Prepaid expenses and other assets | 57,669 | |||
Total identifiable assets acquired | 785,112 | |||
Accounts payable and other liabilities | (153,855) | |||
Outstanding borrowings from credit facilities | (79,703) | |||
Total liabilities assumed | 233,558 | |||
Net identifiable assets acquired | 551,554 | |||
Goodwill | 1,772,043 | |||
Net assets acquired | $ 2,323,597 |
Business Combination - Summar_7
Business Combination - Summary of Fair Values Allocated to Identifiable Intangible Assets and Estimated Useful Lives - Divvy (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 01, 2021 |
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 523,269 | $ 514,219 | |
Customer relationships | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | 259,269 | 259,269 | |
Developed technology | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | 215,958 | 206,908 | |
Trade name | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 48,042 | $ 48,042 | |
DivvyPay, Inc. | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 423,000 | ||
DivvyPay, Inc. | Customer relationships | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 198,000 | ||
Estimated useful lives | 10 years | ||
DivvyPay, Inc. | Developed technology | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 191,000 | ||
Estimated useful lives | 6 years | ||
DivvyPay, Inc. | Trade name | |||
Business Acquisition [Line Items] | |||
Preliminary fair value | $ 34,000 | ||
Estimated useful lives | 3 years |
Business Combination - Summar_8
Business Combination - Summary of Unaudited Proforma Financial Information - Divvy (Details) - DivvyPay, Inc. $ in Thousands | 12 Months Ended |
Jun. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | |
Total revenue | $ 307,618 |
Net loss | (223,470) |
Nonrecurring Acquisition-Related Costs | |
Business Acquisition [Line Items] | |
Net loss | $ (2,300) |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets | ||
Cash equivalents: | $ 1,224,356 | $ 1,435,689 |
Short-term investments: | 1,043,110 | 1,108,493 |
Funds held for customers: | 846,404 | 1,284,718 |
Beneficial interest derivative on card receivables sold | 398 | |
Total assets measured at fair value | 3,827,339 | 3,997,558 |
Liabilities | ||
Contingent consideration | 0 | |
Total liabilities measured at fair value | 0 | |
U.S. agency securities | ||
Assets | ||
Funds held for customers: | 6,516 | |
Money market funds | ||
Assets | ||
Cash equivalents: | 1,131,621 | 1,424,259 |
Certificates of deposit | ||
Assets | ||
Cash equivalents: | 2,578 | |
Certificates of deposit | ||
Assets | ||
Short-term investments: | 46,099 | 38,155 |
Funds held for customers: | 233,291 | 397,533 |
Corporate bonds | ||
Assets | ||
Cash equivalents: | 45,301 | 11,430 |
Short-term investments: | 479,483 | 597,204 |
Funds held for customers: | 433,920 | 807,685 |
Corporate bonds | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 133,557 | |
U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 44,856 | |
Short-term investments: | 408,368 | 421,728 |
Funds held for customers: | 81,074 | 3,072 |
U.S. agency securities | ||
Assets | ||
Short-term investments: | 57,967 | |
Funds held for customers: | 27,458 | |
Asset-backed securities | ||
Assets | ||
Short-term investments: | 51,193 | 51,406 |
Funds held for customers: | 70,661 | 69,912 |
Restricted cash equivalents | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 713,469 | 168,260 |
Restricted cash equivalents | Money market funds | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 713,469 | 34,703 |
Level 1 | ||
Assets | ||
Cash equivalents: | 1,176,477 | 1,424,259 |
Short-term investments: | 408,368 | 421,728 |
Funds held for customers: | 81,074 | 3,072 |
Beneficial interest derivative on card receivables sold | 0 | |
Total assets measured at fair value | 2,379,388 | 1,883,762 |
Liabilities | ||
Contingent consideration | 0 | |
Total liabilities measured at fair value | 0 | |
Level 1 | U.S. agency securities | ||
Assets | ||
Funds held for customers: | 0 | |
Level 1 | Money market funds | ||
Assets | ||
Cash equivalents: | 1,131,621 | 1,424,259 |
Level 1 | Certificates of deposit | ||
Assets | ||
Cash equivalents: | 0 | |
Level 1 | Certificates of deposit | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 1 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 1 | Corporate bonds | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 0 | |
Level 1 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 44,856 | |
Short-term investments: | 408,368 | 421,728 |
Funds held for customers: | 81,074 | 3,072 |
Level 1 | U.S. agency securities | ||
Assets | ||
Short-term investments: | 0 | |
Funds held for customers: | 0 | |
Level 1 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 1 | Restricted cash equivalents | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 713,469 | 34,703 |
Level 1 | Restricted cash equivalents | Money market funds | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 713,469 | 34,703 |
Level 2 | ||
Assets | ||
Cash equivalents: | 47,879 | 11,430 |
Short-term investments: | 634,742 | 686,765 |
Funds held for customers: | 765,330 | 1,281,646 |
Beneficial interest derivative on card receivables sold | 0 | |
Total assets measured at fair value | 1,447,951 | 2,113,398 |
Liabilities | ||
Contingent consideration | 0 | |
Total liabilities measured at fair value | 0 | |
Level 2 | U.S. agency securities | ||
Assets | ||
Funds held for customers: | 6,516 | |
Level 2 | Money market funds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Level 2 | Certificates of deposit | ||
Assets | ||
Cash equivalents: | 2,578 | |
Level 2 | Certificates of deposit | ||
Assets | ||
Short-term investments: | 46,099 | 38,155 |
Funds held for customers: | 233,291 | 397,533 |
Level 2 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 45,301 | 11,430 |
Short-term investments: | 479,483 | 597,204 |
Funds held for customers: | 433,920 | 807,685 |
Level 2 | Corporate bonds | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 133,557 | |
Level 2 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 2 | U.S. agency securities | ||
Assets | ||
Short-term investments: | 57,967 | |
Funds held for customers: | 27,458 | |
Level 2 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 51,193 | 51,406 |
Funds held for customers: | 70,661 | 69,912 |
Level 2 | Restricted cash equivalents | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 0 | 133,557 |
Level 2 | Restricted cash equivalents | Money market funds | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Beneficial interest derivative on card receivables sold | 398 | |
Total assets measured at fair value | 0 | 398 |
Liabilities | ||
Contingent consideration | (12,035) | |
Total liabilities measured at fair value | (12,035) | |
Level 3 | U.S. agency securities | ||
Assets | ||
Funds held for customers: | 0 | |
Level 3 | Money market funds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Level 3 | Certificates of deposit | ||
Assets | ||
Cash equivalents: | 0 | |
Level 3 | Certificates of deposit | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | Corporate bonds | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 0 | |
Level 3 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | U.S. agency securities | ||
Assets | ||
Short-term investments: | 0 | |
Funds held for customers: | 0 | |
Level 3 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | Restricted cash equivalents | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Restricted cash equivalents | Money market funds | Restricted cash equivalents | ||
Assets | ||
Funds held for customers: | $ 0 | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Sep. 24, 2021 | Nov. 30, 2020 |
2027 Notes | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Debt instrument, aggregate principal amount | $ 575 | $ 575 | |
Debt Instrument, Fair Value Estimated | 473.7 | ||
2025 Notes | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Debt instrument, aggregate principal amount | $ 1,150 | $ 1,150 | |
Debt instrument, interest rate | 0% | 0% | |
Debt Instrument, Fair Value Estimated | $ 1,190 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 1,046,830 | $ 1,116,408 |
Gross unrealized gains | 257 | 4 |
Gross unrealized losses | (3,977) | (7,919) |
Fair value | 1,043,110 | 1,108,493 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 481,658 | 601,987 |
Gross unrealized gains | 207 | 3 |
Gross unrealized losses | (2,382) | (4,786) |
Fair value | 479,483 | 597,204 |
U.S. treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 409,586 | 424,644 |
Gross unrealized gains | 42 | 1 |
Gross unrealized losses | (1,260) | (2,917) |
Fair value | 408,368 | 421,728 |
Asset-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 51,321 | 51,622 |
Gross unrealized gains | 8 | 0 |
Gross unrealized losses | (136) | (216) |
Fair value | 51,193 | 51,406 |
Certificates of deposit | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 46,099 | 38,155 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 46,099 | $ 38,155 |
U.S. agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 58,166 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (199) | |
Fair value | $ 57,967 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Details) | 12 Months Ended | ||
Jun. 30, 2023 USD ($) InvestmentPosition | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | |||
Debt Securities Available For Sale Accrued Interest After Allowance For Credit Loss Statement Of Financial Position Extensible List Not Disclosed Flag | accrued interest receivable | ||
Accrued interest receivable | $ 4,300,000 | $ 3,000,000 | |
Short-term investments mature within one year | $ 758,100,000 | $ 961,800,000 | |
Percentage of short-term investments maturing within one year | 73% | 87% | |
Short-term investments mature thereafter | $ 285,000,000 | $ 146,700,000 | |
Percentage of short-term investments maturing thereafter | 27% | 13% | |
Number of investments in unrealized loss positions | InvestmentPosition | 190 | ||
Unrealized losses, continuous realized loss position, less than 12 months | $ 506,500,000 | $ 851,800,000 | |
Unrealized losses, continuous realized loss position, 12 months or longer | 100,200,000 | 0 | |
Short-term investments realized gains or losses | 0 | 0 | $ 0 |
Allowance for credit losses on investments that were in an unrealized loss position | $ 0 | $ 0 | |
Minimum | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Number of investment positions | InvestmentPosition | 330 |
Short-Term Investments - Sche_2
Short-Term Investments - Schedule of Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | $ 606,681 | $ 855,892 |
Unrealized losses | (3,977) | (7,919) |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 296,562 | 392,699 |
Unrealized losses | (2,382) | (4,786) |
U.S. treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 213,726 | 411,787 |
Unrealized losses | (1,260) | (2,917) |
Asset-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 38,426 | 51,406 |
Unrealized losses | (136) | $ (216) |
U.S. agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 57,967 | |
Unrealized losses | $ (199) |
Funds Held for Customers - Summ
Funds Held for Customers - Summary of Funds Held for Customers (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Funds Held For Customers [Line Items] | ||
Total funds held for customers | $ 3,365,783 | $ 3,145,662 |
Total funds held for customers, net of income earned by the Company | 3,355,909 | 3,142,660 |
Restricted cash | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 1,793,088 | 1,685,937 |
Restricted cash equivalents | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 713,469 | 168,260 |
Funds receivable | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 12,822 | 6,747 |
Corporate bonds | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 433,920 | 807,685 |
Asset-backed securities | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 70,661 | 69,912 |
U.S. agency securities | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 27,458 | 0 |
U.S. treasury securities | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 81,074 | 3,072 |
Certificates of deposit | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 233,291 | 397,533 |
U.S. agency securities | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 0 | 6,516 |
Other Current Assets | ||
Funds Held For Customers [Line Items] | ||
Less - income earned by the Company included in other current assets | $ (9,874) | $ (3,002) |
Funds Held for Customers - Su_2
Funds Held for Customers - Summary of Fair Value of Funds Held For Customers (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Funds Held For Customers [Line Items] | ||
Amortized cost | $ 847,012 | $ 1,286,844 |
Gross unrealized gains | 25 | 1 |
Gross unrealized losses | (633) | (2,127) |
Fair value | 846,404 | 1,284,718 |
Corporate bonds | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 433,936 | 809,113 |
Gross unrealized gains | 18 | 1 |
Gross unrealized losses | (34) | (1,429) |
Fair value | 433,920 | 807,685 |
Asset-backed securities | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 70,993 | 70,574 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (332) | (662) |
Fair value | 70,661 | 69,912 |
U.S. agency securities | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 27,484 | |
Gross unrealized gains | 5 | |
Gross unrealized losses | (31) | |
Fair value | 27,458 | |
U.S. treasury securities | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 81,309 | 3,082 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (236) | (10) |
Fair value | 81,074 | 3,072 |
Certificates of deposit | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 233,290 | 397,533 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | $ 233,291 | 397,533 |
U.S. agency securities | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 6,542 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (26) | |
Fair value | $ 6,516 |
Funds Held for Customers - Addi
Funds Held for Customers - Additional Information (Details) | Jun. 30, 2023 USD ($) InvestmentPosition | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) |
Funds Held For Customers [Line Items] | |||
Amortized Cost | $ 847,012,000 | $ 1,286,844,000 | |
Fair value | $ 846,404,000 | $ 1,284,718,000 | |
Debt securities percentage mature within one year | 93% | 95% | |
Debt securities mature within one year | $ 785,300,000 | $ 1,200,000,000 | |
Debt securities percentage mature thereafter | 7% | 5% | |
Debt securities mature thereafter | $ 61,100,000 | $ 69,900,000 | |
Number of unrealized loss investment positions | InvestmentPosition | 50 | ||
Unrealized losses, continuous unrealized loss position, less than 12 months | $ 375,600,000 | 191,000,000 | |
Short-term investments realized gains or losses | 0 | 0 | $ 0 |
Allowance for credit losses on investments that were in an unrealized loss position | $ 0 | 0 | |
Minimum | |||
Funds Held For Customers [Line Items] | |||
Number of investment positions | InvestmentPosition | 230 | ||
Accrued Interest Receivable | |||
Funds Held For Customers [Line Items] | |||
Amortized Cost | $ 6,900,000 | 3,000,000 | |
Fair value | $ 6,900,000 | $ 3,000,000 |
Funds Held for Customers - Su_3
Funds Held for Customers - Summary of Gross Unrealized Losses And Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Funds Held For Customers [Line Items] | ||
Fair value | $ 202,573 | $ 375,574 |
Unrealized losses | (633) | (2,127) |
U.S. agency securities | ||
Funds Held For Customers [Line Items] | ||
Fair value | 6,516 | |
Unrealized losses | (26) | |
Corporate bonds | ||
Funds Held For Customers [Line Items] | ||
Fair value | 34,530 | 301,625 |
Unrealized losses | (34) | (1,429) |
Asset-backed securities | ||
Funds Held For Customers [Line Items] | ||
Fair value | 70,661 | 64,361 |
Unrealized losses | (332) | (662) |
U.S. agency securities | ||
Funds Held For Customers [Line Items] | ||
Fair value | 22,494 | |
Unrealized losses | (31) | |
U.S. treasury securities | ||
Funds Held For Customers [Line Items] | ||
Fair value | 74,888 | 3,072 |
Unrealized losses | $ (236) | $ (10) |
Acquired Card Receivables - Sch
Acquired Card Receivables - Schedule of Acquired Card Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Acquired Card Receivables [Abstract] | |||
Gross amount of acquired card receivables | $ 474,148 | $ 261,806 | |
Less: allowance for credit losses | (15,498) | (5,414) | $ (1,740) |
Total | $ 458,650 | $ 256,392 |
Acquired Card Receivables - Add
Acquired Card Receivables - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Acquired Card Receivables [Line Items] | ||
Acquired card receivable as collateral | $ 188,000 | |
Authorized transactions but not cleared | $ 68,600 | |
Grace period to payment on acquired card receivables | 5 days | |
Acquired card receivables, minimum number of past due days to accrue fees | 90 days | 90 days |
Card receivables acquired during the period | $ 13,200,000 | $ 6,600,000 |
Gross charge-off amount, prior fiscal year | 6,500 | |
Gross charge-off amount, current fiscal year | 17,600 | |
Fair value, beneficial interest derivative | 0 | 0 |
Prepaid Expenses and Other Current Assets | ||
Acquired Card Receivables [Line Items] | ||
Card receivables held for sale, amount | $ 0 | $ 8,700 |
Acquired Card Receivables - Sum
Acquired Card Receivables - Summary of Acquired Card Receivables by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Acquired Card Receivables [Line Items] | ||
Total | $ 474,148 | $ 261,806 |
Current and less than 30 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | 463,704 | 257,618 |
30 ~ 59 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | 2,507 | 1,677 |
60 ~ 89 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | 4,544 | 1,199 |
90 ~ 119 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | 3,196 | 1,186 |
Over 119 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | $ 197 | $ 126 |
Acquired Card Receivables - S_2
Acquired Card Receivables - Summary of Change in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Allowance For Credit Losses [Roll Forward] | ||
Balance, beginning | $ 5,414 | $ 1,740 |
Initial allowance for credit losses on purchased card receivables with credit deterioration | 10 | 313 |
Provision for expected credit losses | 32,015 | 19,566 |
Charge-off amounts | (24,120) | (18,005) |
Recoveries collected | 2,179 | 1,800 |
Balance, ending | $ 15,498 | $ 5,414 |
Acquired Card Receivables - S_3
Acquired Card Receivables - Summary of Fair Value of Consideration Received From Transfer of Card Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Credit Loss [Abstract] | ||
Cash | $ 316,477 | $ 1,483,481 |
Beneficial interest derivative | 1,682 | 4,690 |
Total | $ 318,159 | $ 1,488,171 |
Acquired Card Receivables - S_4
Acquired Card Receivables - Summary of Transferred Card Receivables by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Acquired Card Receivables [Line Items] | ||
Total | $ 0 | $ 57,281 |
Current and less than 30 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | 0 | 56,162 |
30 ~ 59 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | 0 | 292 |
60 ~ 89 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | 0 | 375 |
90 ~ 119 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | 0 | 422 |
Over 119 days past due | ||
Acquired Card Receivables [Line Items] | ||
Total | $ 0 | $ 30 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 126,587 | $ 87,272 |
Less: accumulated depreciation and amortization | (45,023) | (30,287) |
Property and equipment, net | 81,564 | 56,985 |
Software and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 20,971 | 20,102 |
Capitalized software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 53,950 | 21,457 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 12,598 | 10,608 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 39,068 | $ 35,105 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation of property and equipment | $ 15.5 | $ 11.5 | $ 5.4 |
Unamortized capitalized software cost | $ 42.7 | $ 15.7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||
Balance, beginning | $ 2,362,893 | $ 1,772,043 |
Addition related to acquisition during the period | 33,441 | 585,448 |
Measurement period adjustments | 175 | (2,876) |
Balance, ending | 2,396,509 | 2,362,893 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 2,396,509 | 2,362,893 |
Adoption of ASU 2021-08 | ||
Goodwill [Roll Forward] | ||
Balance, beginning | 8,278 | |
Balance, ending | 0 | 8,278 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 0 | $ 8,278 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 523,269 | $ 514,219 |
Accumulated Amortization | (161,842) | (81,636) |
Net Carrying Amount | 361,427 | 432,583 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 259,269 | 259,269 |
Accumulated Amortization | (52,483) | (26,556) |
Net Carrying Amount | $ 206,786 | $ 232,713 |
Weighted average remaining useful life (In years) | 8 years | 9 years |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 215,958 | $ 206,908 |
Accumulated Amortization | (77,178) | (38,909) |
Net Carrying Amount | $ 138,780 | $ 167,999 |
Weighted average remaining useful life (In years) | 3 years 9 months 18 days | 4 years 8 months 12 days |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 48,042 | $ 48,042 |
Accumulated Amortization | (32,181) | (16,171) |
Net Carrying Amount | $ 15,861 | $ 31,871 |
Weighted average remaining useful life (In years) | 1 year | 2 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Amortization of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 80,205 | $ 75,977 | $ 5,659 |
Cost of revenue | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 38,269 | 36,256 | |
Sales and marketing | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 41,936 | $ 39,721 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Amortization of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 79,953 | |
2025 | 61,234 | |
2026 | 59,570 | |
2027 | 56,912 | |
2028 | 26,606 | |
Thereafter | 77,152 | |
Net Carrying Amount | $ 361,427 | $ 432,583 |
Debt and Bank Borrowings - Sche
Debt and Bank Borrowings - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Less: unamortized issuance costs | $ (20,218) | $ (27,015) |
Convertible senior notes, net | 1,704,782 | 1,697,985 |
Net carrying amount | 1,839,828 | 1,773,082 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Borrowing from revolving credit facility | 135,046 | 75,097 |
Unamortized debt issuance costs | 200 | 0 |
2027 Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes: | 575,000 | 575,000 |
Less: unamortized issuance costs | (10,188) | (12,873) |
Net carrying amount | 564,812 | 562,127 |
2025 Notes | ||
Debt Instrument [Line Items] | ||
Convertible senior notes: | 1,150,000 | 1,150,000 |
Less: unamortized issuance costs | (10,030) | (14,142) |
Net carrying amount | $ 1,139,970 | $ 1,135,858 |
Debt and Bank Borrowings - Addi
Debt and Bank Borrowings - Additional Information (Details) $ / shares in Units, shares in Millions | 12 Months Ended | |||||
Sep. 24, 2021 USD ($) Tradingday d $ / shares shares | Nov. 30, 2020 USD ($) TradingDay d $ / shares shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2022 $ / shares | |
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 0 | $ 560,075,000 | $ 1,129,379,000 | |||
Sinking fund | $ 0 | |||||
Number of business day period for conversion of Notes | d | 5 | |||||
2027 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, aggregate principal amount | $ 575,000,000 | 575,000,000 | ||||
Debt instrument, maturity date | Apr. 01, 2027 | |||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 560,100,000 | |||||
Debt issuance costs | $ 14,900,000 | |||||
Debt initial conversion rate | 0.0024108 | |||||
Debt instrument denomination of principal amount for conversion into common stock | $ 1,000 | |||||
Initial conversion price per share | $ / shares | $ 414.80 | |||||
Notes issued upon conversion (shares) | shares | 1.4 | |||||
Debt convertible date | Jan. 01, 2027 | |||||
Threshold percentage of stock price trigger in measurement period | 98% | |||||
Debt conversion rate in make whole | 1.2656 | |||||
Debt conversion price per share in make whole | $ / shares | $ 272 | |||||
2027 Notes | Debt Instrument, Redemption, Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument threshold percentage of conversion price | 130% | |||||
Number of trading days for conversion of Notes | Tradingday | 20 | |||||
Number of consecutive trading days for conversion of Notes | Tradingday | 30 | |||||
Redemption price percentage of principal amount redeemed | 100% | |||||
2025 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, aggregate principal amount | $ 1,150,000,000 | $ 1,150,000,000 | ||||
Debt instrument, interest rate | 0% | 0% | ||||
Debt instrument, maturity date | Dec. 01, 2025 | |||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 1,130,000,000 | |||||
Debt issuance costs | $ 20,600,000 | |||||
Debt initial conversion rate | 0.0062159 | |||||
Debt instrument denomination of principal amount for conversion into common stock | $ 1,000 | |||||
Initial conversion price per share | $ / shares | $ 160.88 | |||||
Notes issued upon conversion (shares) | shares | 7.1 | |||||
Debt instrument threshold percentage of conversion price | 130% | |||||
Number of trading days for conversion of Notes | TradingDay | 20 | |||||
Number of consecutive trading days for conversion of Notes | TradingDay | 30 | |||||
Debt convertible date | Sep. 01, 2025 | |||||
Number of business day period for conversion of Notes | d | 5 | |||||
Number of consecutive trading day period in consideration for conversion of Notes | d | 5 | |||||
Threshold percentage of stock price trigger in measurement period | 98% | |||||
Debt conversion rate in make whole | 2.9525 | |||||
Debt conversion price per share in make whole | $ / shares | $ 109.07 | |||||
Debt default threshold principal amount percentage | 100% | |||||
2025 Notes | Redeem On or After December 5, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption period, start date | Dec. 05, 2023 | |||||
Debt instrument threshold percentage of conversion price | 130% | |||||
Number of trading days for conversion of Notes | TradingDay | 20 | |||||
Number of consecutive trading days for conversion of Notes | TradingDay | 30 | |||||
Redemption price percentage of principal amount redeemed | 100% | |||||
Sinking fund | $ 0 |
Debt and Bank Borrowings - Sc_2
Debt and Bank Borrowings - Schedule of Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Liability component: | ||
Less: unamortized debt issuance costs | $ (20,218) | $ (27,015) |
Net carrying amount | 1,839,828 | 1,773,082 |
2027 Notes | ||
Liability component: | ||
Principal | 575,000 | 575,000 |
Less: unamortized debt issuance costs | (10,188) | (12,873) |
Net carrying amount | 564,812 | 562,127 |
2025 Notes | ||
Liability component: | ||
Principal | 1,150,000 | 1,150,000 |
Less: unamortized debt issuance costs | (10,030) | (14,142) |
Net carrying amount | $ 1,139,970 | $ 1,135,858 |
Debt and Bank Borrowings - Cred
Debt and Bank Borrowings - Credit Agreements - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
Amortization of debt discount and issuance costs, net of accretion of debt premium | $ 6,964 | $ 4,777 | $ 27,531 |
Weighted-average remaining life | 2 years 10 months 24 days | ||
2027 Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 0.48% | ||
Capped call, initial strike price (dollars per share) | $ 414.80 | ||
Capped call, initial cap price (dollars per share) | $ 544 | ||
2025 Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 0.36% | ||
Capped call, initial strike price (dollars per share) | $ 160.88 | ||
Capped call, initial cap price (dollars per share) | $ 218.14 | ||
2025 and 2027 Senior Notes Member | |||
Debt Instrument [Line Items] | |||
Amortization of debt discount and issuance costs, net of accretion of debt premium | $ 6,800 | $ 6,100 | |
Debt instrument, aggregate principal amount if converted | 1,700,000 | ||
Cost of capped call | $ 125,800 | ||
Cap calls cover subject to anti-dilution adjustments to common stock (shares) | 8,500,000 |
Debt and Borrowings - Revolving
Debt and Borrowings - Revolving Credit Facility- Additional Information (Details) - 2021 Revolving Credit Agreement - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2022 | Jun. 30, 2023 | Aug. 01, 2022 | |
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 225 | ||
Line of credit facility, amount borrowed | $ 135 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||
Line of credit, outstanding amount threshold | $ 75 | ||
Benchmark adjustment rate | 0.28% | ||
Remaining weighted-average amortization period | 10 months 24 days | ||
Effective interest rate | 8.19% | ||
Utilization Period Two | |||
Debt Instrument [Line Items] | |||
Line of credit facility, minimum utilization | $ 135 | ||
Line of credit, minimum utilization percentage | 60% | ||
Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument floor rate | 0.25% | ||
Variable Rate Component One | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 2.75% | ||
Variable Rate Component Two | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 2.65% | ||
Variable Rate Component Three | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 2.65% |
Stockholders' Equity - Equity I
Stockholders' Equity - Equity Incentive Plans (Details) - shares | 12 Months Ended | |
Nov. 26, 2019 | Jun. 30, 2023 | |
2016 Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity-based awards granted (shares) | 0 | |
2019 Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares of common stock reserved for issuance | 7,100,000 | |
Potential percentage of additional number of shares reserved for issuance each year | 5% | |
Equity Incentive Plans | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of common shares available for issuance | 15,087,695 |
Stockholders' Equity - Equity A
Stockholders' Equity - Equity Awards Assumed in Acquisitions (Details) | 12 Months Ended |
Jun. 30, 2023 shares | |
Divvy and Invoice2go Acquired Plans | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Equity-based awards granted (shares) | 0 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | |||
Vest over requisite service period | 4 years | ||
Option expiration period | 10 years | ||
Weighted-average grant date fair value of options granted (dollars per share) | $ 207.07 | $ 132.04 | |
Total intrinsic value of options exercised | $ 114.1 | $ 640 | $ 387.1 |
Fair value of stock options vested | 163.8 | $ 555.8 | $ 485.7 |
Unamortized stock-based compensation expense | $ 14 | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 6 months |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Number of shares (in thousands) | ||
Beginning balance (in shares) | 3,858 | |
Options exercised (in shares) | (1,063) | |
Options forfeited (in shares) | (207) | |
Ending balance (in shares) | 2,588 | 3,858 |
Vested and expected to vest at June 30, 2023 (in shares) | 2,560 | |
Vested and exercisable at June 30, 2023 (in shares) | 2,367 | |
Weighted average exercise price per share | ||
Beginning balance (dollars per share) | $ 18.28 | |
Options exercised (dollars per share) | 13.06 | |
Options forfeited (dollars per share) | 29.06 | |
Ending balance (dollars per share) | 19.56 | $ 18.28 |
Vested and expected to vest at June 30, 2023 (dollars per share) | 19.32 | |
Vested and exercisable at June 30, 2023 (dollars per share) | $ 15.62 | |
Weighted average remaining contractual term (in years) | ||
Remaining contractual term (in years) | 5 years 10 months 24 days | 6 years 11 months 19 days |
Vested and expected to vest at June 30, 2023 (in years) | 5 years 10 months 20 days | |
Vested and exercisable at June 30, 2023 (in years) | 5 years 9 months 14 days | |
Aggregate intrinsic value | $ 258,093 | $ 361,053 |
Vested and expected to vest at June 30, 2023 | 255,787 | |
Vested and exercisable at June 30, 2023 | $ 242,525 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Fair Value of Options Granted Black-Scholes Option-Pricing Model Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 3 months | ||
Expected volatility, minimum | 30% | 35% | |
Expected volatility, maximum | 81.20% | 85.10% | |
Risk-free interest rate, minimum | 0.20% | 0.38% | |
Risk-free interest rate, maximum | 2.88% | 1.03% | |
Expected dividend yield | 0% | 0% | 0% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 2 years | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 7 years 18 days |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Number of Shares Outstanding | |||
Beginning balance (in shares) | 3,279 | ||
Granted (shares) | 3,322 | ||
Vested (shares) | (1,640) | ||
Forfeited (shares) | (777) | ||
Ending balance (in shares) | 4,184 | 3,279 | |
Weighted average grant date fair value | |||
Beginning balance (dollars per share) | $ 178.85 | ||
Granted (dollars per share) | 120.25 | $ 202.79 | $ 134.29 |
Vested (dollars per share) | 164.38 | ||
Forfeited (dollars per share) | 165.37 | ||
Ending balance (dollars per share) | $ 140.50 | $ 178.85 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unamortized stock-based compensation expense | $ 14 | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 6 months | ||
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted (dollars per share) | $ 120.25 | $ 202.79 | $ 134.29 |
Fair value of shares vested | $ 197.3 | $ 118.9 | $ 40 |
Unamortized stock-based compensation expense | $ 412.1 | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 10 months 24 days | ||
Minimum | Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting term | 1 year | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting term | 4 years |
Stockholders' Equity - Market-b
Stockholders' Equity - Market-based RSUs (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 Employee $ / shares shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate, minimum | 0.20% | 0.38% | ||
Risk-free interest rate, maximum | 2.88% | 1.03% | ||
Expected term (in years) | 6 years 3 months | |||
Vest over requisite service period | 4 years | |||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 6 months | |||
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 2 years | |||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 7 years 18 days | |||
Market-based RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Employees Shares Granted | Employee | 1 | |||
Expected volatility | 60% | |||
Risk-free interest rate, minimum | 1.08% | |||
Risk-free interest rate, maximum | 1.21% | |||
Granted (dollars per share) | $ / shares | $ 182.15 | |||
Expected to recognize stock based compensation expense | $ | $ 2.2 | |||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 1 month 6 days | |||
Market-based RSUs | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 1 year | |||
Vest over requisite service period | 3 years | |||
Market-based RSUs | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 3 years | |||
Vest over requisite service period | 5 years | |||
Executive Employee | Market-based RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted (shares) | shares | 50,000 |
Stockholder's Equity - Performa
Stockholder's Equity - Performance-based RSUs (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vest over requisite service period | 4 years |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 6 months |
Performance-based awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Granted (shares) | shares | 150,000 |
Vest over requisite service period | 3 years |
Granted (dollars per share) | $ / shares | $ 133.48 |
Expected to recognize stock based compensation expense | $ | $ 5.9 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 3 months 18 days |
Stockholders' Equity - Employee
Stockholders' Equity - Employee Stock Purchase Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Nov. 26, 2019 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Offering period | 12 months | |
Unamortized stock-based compensation expense | $ 14 | |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 6 months | |
2019 Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares of common stock reserved for issuance | 1,400,000 | |
Potential percentage of additional number of shares reserved for issuance each year | 1% | |
Total number of shares issued | 14,000,000 | |
Percentage of employee compensation, maximum | 15% | |
Fair value of option granted percentage | 85% | |
Unamortized stock-based compensation expense | $ 4.5 | |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 6 months |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Fair Value of ESPP Offerings (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 3 months | ||
Expected volatility, minimum | 30% | 35% | |
Expected volatility, maximum | 81.20% | 85.10% | |
Risk-free interest rate, minimum | 0.20% | 0.38% | |
Risk-free interest rate, maximum | 2.88% | 1.03% | |
Expected dividend yield | 0% | 0% | 0% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 2 years | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 7 years 18 days | ||
2019 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility, minimum | 81.80% | 76% | 81% |
Expected volatility, maximum | 82.50% | 77.30% | 88.40% |
Risk-free interest rate, minimum | 3.39% | 0.06% | 0.05% |
Risk-free interest rate, maximum | 4.89% | 0.88% | 0.13% |
Expected dividend yield | 0% | 0% | 0% |
2019 Employee Stock Purchase Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 4 months 24 days | 4 months 24 days | 6 months |
2019 Employee Stock Purchase Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 1 year | 1 year | 1 year |
Stockholders' Equity - Stock Ba
Stockholders' Equity - Stock Based Compensation Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation cost | $ 322,840 | $ 201,562 | $ 72,451 |
Stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation cost | 37,882 | 55,667 | 45,035 |
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation cost | 251,456 | 134,222 | 23,225 |
Performance-based awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation cost | 17,914 | 0 | 0 |
Market-based RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation cost | 4,308 | 2,755 | 0 |
Employee stock purchase plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation cost | $ 11,280 | $ 8,918 | $ 4,191 |
Stockholders' Equity - Summar_5
Stockholders' Equity - Summary of Stock Based Compensation Cost from Stock Options, RSUs and ESPP (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total amount charged to loss from operations | $ 313,703 | $ 197,157 | $ 71,987 | |
Property and equipment (capitalized internal-use software) | 9,137 | 4,405 | 464 | |
Total stock-based compensation cost | 322,840 | 201,562 | 72,451 | |
Share-Based Payment Arrangement, Accelerated Cost | $ 52,200 | |||
Revenue - subscription and transaction fees | Subscription and transaction fees | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total amount charged to loss from operations | 188 | 0 | 0 | |
Cost of revenue - service costs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total amount charged to loss from operations | 9,111 | 5,144 | 2,938 | |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total amount charged to loss from operations | 93,364 | 54,907 | 16,091 | |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total amount charged to loss from operations | 130,421 | 60,237 | 8,547 | |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total amount charged to loss from operations | $ 80,619 | $ 76,869 | $ 44,411 |
Stockholder's Equity - Share Re
Stockholder's Equity - Share Repurchase Program (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jan. 01, 2023 | |
Equity [Abstract] | ||
Share repurchase program, authorized amount | $ 300,000 | |
Stock repurchase program term | 12 months | |
Treasury stock, acquired (in shares) | 1,077,445 | |
Treasury stock, retired (in shares) | 1,077,445 | |
Treasury stock, value (in dollars) | $ 87,600 | |
Remaining authorized repurchase amount | $ 212,400 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income, Nonoperating [Abstract] | |||
Interest expense | $ (15,203) | $ (9,419) | $ (28,158) |
Lower of cost or market adjustment on card receivables sold and held for sale | (1,545) | (11,460) | (691) |
Interest income | 91,279 | 6,691 | 2,992 |
Other | (1,675) | 327 | 487 |
Total | $ 72,856 | $ (13,861) | $ (25,370) |
Income Taxes - Components of Lo
Income Taxes - Components of Loss before (Benefit from) Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (199,452) | $ (304,508) | $ (139,337) |
Foreign | (23,465) | (26,171) | 0 |
Loss before provision for (benefit from) income taxes | $ (222,917) | $ (330,679) | $ (139,337) |
Income Taxes - Components of (B
Income Taxes - Components of (Benefit from) Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current: | |||
Federal | $ 572 | $ (247) | $ 0 |
State | 1,583 | 0 | 0 |
Foreign | 14 | 0 | 0 |
Total current | 2,169 | (247) | 0 |
Deferred: | |||
Federal | (995) | (1,115) | (27,529) |
State | (366) | (2,956) | (13,088) |
Foreign | 0 | 0 | 0 |
Total deferred | (1,361) | (4,071) | (40,617) |
Provision for (benefit from) income taxes | $ 808 | $ (4,318) | $ (40,617) |
Income Taxes - Difference betwe
Income Taxes - Difference between Income Taxes Computed At Federal Statutory Rate and (Benefit from) Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Expected benefit at U.S. federal statutory rate | $ (46,813) | $ (69,443) | $ (29,261) |
State income taxes, net of federal benefit | 8,087 | 13,509 | (54) |
Stock-based compensation (1) | 4,253 | (93,705) | (70,262) |
Research and development tax credits | (19,974) | (22,061) | (8,846) |
Change in valuation allowance related to acquisition | (126) | (2,831) | (34,749) |
Change in valuation allowance | 48,321 | 174,477 | 94,244 |
Unrecognized tax benefit | (390) | (10,975) | 6,766 |
Acquisition-related costs | 0 | 553 | 1,484 |
Foreign rate differential | 4,942 | 5,496 | 0 |
Other | 2,508 | 662 | 61 |
Provision for (benefit from) income taxes | $ 808 | $ (4,318) | $ (40,617) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Accruals and reserves | $ 12,537 | $ 9,325 |
Capitalized research and development | 75,694 | 0 |
Deferred revenue | 1,084 | 1,794 |
Stock-based compensation | 24,998 | 25,897 |
Net operating loss carryforwards | 379,758 | 410,849 |
Research and development credits | 62,299 | 46,013 |
Accrued rewards | 1,855 | 2,867 |
Operating lease liabilities | 21,616 | 24,203 |
Other | 1,257 | 3,247 |
Total deferred tax assets before valuation allowance | 581,098 | 524,195 |
Valuation allowance | (479,449) | (384,158) |
Deferred tax assets | 101,649 | 140,037 |
Deferred tax liabilities: | ||
Deferred contract costs | (4,772) | (3,745) |
Property and equipment | (13,078) | (19,316) |
Intangible assets | (67,455) | (99,483) |
Operating right of use assets | (17,155) | (19,490) |
Total deferred tax liabilities | (102,460) | (142,034) |
Net deferred tax (liabilities) | $ (811) | $ (1,997) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes [Line Items] | ||||
Change in valuation allowance | $ 95,300 | $ 276,300 | $ 22,300 | |
Federal and state net operating loss carryforwards expiration year | 2025 | |||
Unrecognized tax benefits related to federal and California R&D credits | $ 23,300 | $ 16,724 | $ 22,185 | $ 5,787 |
Federal Tax | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 1,400,000 | |||
Research and development tax credit carryforwards | 56,100 | |||
State Tax | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 1,100,000 | |||
Research and development tax credit carryforwards | 35,600 | |||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 83,400 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the year | $ 16,724 | $ 22,185 | $ 5,787 |
Add: | |||
Tax positions related to the current year | 6,642 | 7,354 | 8,267 |
Increase from business combination | 0 | 160 | 668 |
Tax positions related to the prior year | 226 | 0 | 7,463 |
Less: | |||
Tax positions related to the prior year | 0 | (12,761) | 0 |
Statute of limitations lapse | (292) | (214) | 0 |
Balance at the end of the year | $ 23,300 | $ 16,724 | $ 22,185 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Weighted average remaining term | 7 years 3 months 18 days | ||
Weighted average discount rate | 5.10% | ||
Lease expense paid during period | $ 14,900 | $ 13,800 | $ 2,100 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 2,000 | 5,300 | 31,600 |
Lease expense | $ 15,746 | $ 15,180 | $ 10,023 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lease, Cost [Abstract] | |||
Operating lease expense | $ 14,081 | $ 12,983 | $ 7,826 |
Variable lease expense, net of credit | 2,251 | 2,909 | 2,252 |
Sublease income | (586) | (712) | (55) |
Total lease cost | $ 15,746 | $ 15,180 | $ 10,023 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 14,649 |
2025 | 13,699 |
2026 | 13,292 |
2027 | 13,226 |
2028 | 13,590 |
Thereafter | 35,919 |
Gross lease payments | 104,375 |
Less - present value adjustments | (17,737) |
Total operating lease liabilities, net | $ 86,638 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease liability, current | $ 14,100 | $ 12,100 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other accruals and current liabilities | Other accruals and current liabilities |
Operating lease liability, noncurrent | $ 72,477 | $ 82,728 |
Multi-year agreements expiration year | 2029 | |
Authorized transactions but not cleared | $ 68,600 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Payments Under Other Agreements (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 14,612 |
2025 | 12,582 |
2026 | 6,004 |
2027 | 5,241 |
2028 | 5,491 |
Thereafter | 29,373 |
Total | $ 73,303 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable To Common Stockholders - Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | |||
Net loss attributable to common stockholders | $ (223,725) | $ (326,361) | $ (98,720) |
Denominator: | |||
Weighted average number of shares outstanding, basic (shares) | 105,976 | 101,753 | 82,813 |
Weighted average number of shares outstanding, diluted (shares) | 105,976 | 101,753 | 82,813 |
Net loss per share attributable to common stockholders: | |||
Earnings per share, basic (dollars per share) | $ (2.11) | $ (3.21) | $ (1.19) |
Earnings per share, diluted (dollars per share) | $ (2.11) | $ (3.21) | $ (1.19) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable To Common Stockholders - Summary of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share Calculation (Details) - shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities, potentially dilutive securities excluded from calculation of diluted net loss per share | 6,772,000 | 7,137,000 | 7,728,000 |
Stock options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities, potentially dilutive securities excluded from calculation of diluted net loss per share | 2,588,000 | 3,858,000 | 6,552,000 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities, potentially dilutive securities excluded from calculation of diluted net loss per share | 4,184,000 | 3,279,000 | 1,176,000 |
Net Loss Per Share Attributab_5
Net Loss Per Share Attributable To Common Stockholders - Additional Information (Details) - shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Number of shares not considered in calculation of diluted net loss per share | 6,772,000 | 7,137,000 | 7,728,000 |
2025 Notes | Maximum | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Number of shares subject to adjustment | 12,700,000 | ||
Shares Underlying Conversion Option in 2025 Notes | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Number of shares not considered in calculation of diluted net loss per share | 8,500,000 |