Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2023 | Feb. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
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, $0.00001 par value | |
Trading Symbol | BILL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,134,877 | |
Entity Central Index Key | 0001786352 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,579,633 | $ 1,617,151 |
Short-term investments | 972,621 | 1,043,110 |
Accounts receivable, net | 26,652 | 28,233 |
Acquired card receivables, net of allowances of $21,509 and $15,498 as of December 31, 2023 and June 30, 2023, respectively | 516,980 | 458,650 |
Prepaid expenses and other current assets | 204,726 | 170,111 |
Funds held for customers | 3,655,435 | 3,355,909 |
Total current assets | 6,956,047 | 6,673,164 |
Non-current assets: | ||
Operating lease right-of-use assets, net | 63,505 | 68,988 |
Property and equipment, net | 86,577 | 81,564 |
Intangible assets, net | 320,985 | 361,427 |
Goodwill | 2,396,509 | 2,396,509 |
Other assets | 48,788 | 54,366 |
Total assets | 9,872,411 | 9,636,018 |
Current liabilities: | ||
Accounts payable | 8,772 | 8,519 |
Accrued compensation and benefits | 33,228 | 32,901 |
Deferred revenue | 17,327 | 26,328 |
Other accruals and current liabilities | 268,409 | 194,733 |
Borrowings from credit facilities, net | 135,021 | 135,046 |
Customer fund deposits | 3,655,435 | 3,355,909 |
Total current liabilities | 4,118,192 | 3,753,436 |
Non-current liabilities: | ||
Deferred revenue | 4,174 | 410 |
Operating lease liabilities | 67,725 | 72,477 |
Convertible senior notes, net | 1,708,208 | 1,704,782 |
Other long-term liabilities | 22,267 | 18,944 |
Total liabilities | 5,920,566 | 5,550,049 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock | 2 | 2 |
Additional paid-in capital | 5,088,799 | 4,946,623 |
Accumulated other comprehensive income (loss) | 237 | (4,488) |
Accumulated deficit | (1,137,193) | (856,168) |
Total stockholders' equity | 3,951,845 | 4,085,969 |
Total liabilities and stockholders' equity | $ 9,872,411 | $ 9,636,018 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||||||
Acquired card receivables, allowances | $ (21,509) | $ (18,513) | $ (15,498) | $ (11,948) | $ (7,541) | $ (5,414) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Revenue | $ 318,495 | $ 260,006 | $ 623,480 | $ 489,930 | |
Cost of revenue | |||||
Service costs | 47,239 | 36,965 | 92,143 | 71,786 | |
Depreciation and amortization of intangible assets | [1] | 11,138 | 10,502 | 22,260 | 20,789 |
Total cost of revenue | 58,377 | 47,467 | 114,403 | 92,575 | |
Gross profit | 260,118 | 212,539 | 509,077 | 397,355 | |
Operating expenses | |||||
Research and development | 86,489 | 78,910 | 175,552 | 154,030 | |
Sales and marketing | 118,305 | 164,683 | 236,704 | 283,308 | |
General and administrative | 85,583 | 69,381 | 170,909 | 136,119 | |
Depreciation and amortization of intangible assets | [1] | 12,324 | 12,028 | 25,141 | 24,055 |
Restructuring | 25,091 | 0 | 25,091 | 0 | |
Total operating expenses | 327,792 | 325,002 | 633,397 | 597,512 | |
Loss from operations | (67,674) | (112,463) | (124,320) | (200,157) | |
Other income, net | 28,919 | 17,022 | 58,227 | 22,970 | |
Loss before provision for (benefit from) income taxes | (38,755) | (95,441) | (66,093) | (177,187) | |
Provision for (benefit from) income taxes | 1,666 | (365) | 2,189 | (471) | |
Net loss | $ (40,421) | $ (95,076) | $ (68,282) | $ (176,716) | |
Net loss per share attributable to common stockholders: | |||||
Net loss per share, basic (dollars per share) | $ (0.38) | $ (0.90) | $ (0.64) | $ (1.68) | |
Net loss per share, diluted (dollars per share) | $ (0.38) | $ (0.90) | $ (0.64) | $ (1.68) | |
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders: | |||||
Weighted-average number of shares outstanding, basic (in shares) | 105,914 | 105,906 | 106,350 | 105,494 | |
Weighted-average number of shares outstanding, diluted (in shares) | 105,914 | 105,906 | 106,350 | 105,494 | |
Subscription and transaction fees | |||||
Revenue | $ 274,992 | $ 231,095 | $ 540,134 | $ 445,706 | |
Interest on funds held for customers | |||||
Revenue | $ 43,503 | $ 28,911 | $ 83,346 | $ 44,224 | |
[1] (1) Depreciation expense does not include amortization of capitalized internal-use software costs paid in cash. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (40,421) | $ (95,076) | $ (68,282) | $ (176,716) |
Other comprehensive income: | ||||
Net unrealized gain on investments in available-for-sale securities | 4,050 | 4,126 | 4,725 | 3,856 |
Comprehensive loss | $ (36,371) | $ (90,950) | $ (63,557) | $ (172,860) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit |
Beginning balance (in shares) at Jun. 30, 2022 | 104,731 | ||||
Beginning 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 upon exercise of stock options and release of restricted stock units (in shares) | 835 | ||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 3,901 | 3,901 | |||
Issuance of common stock under the employee stock purchase plan (in shares) | 67 | ||||
Issuance of common stock under the employee stock purchase plan | 8,494 | 8,494 | |||
Stock-based compensation | 73,352 | 73,352 | |||
Other comprehensive income (loss) | (270) | (270) | |||
Net loss | (81,640) | (81,640) | |||
Ending balance (in shares) at Sep. 30, 2022 | 105,633 | ||||
Ending balance at Sep. 30, 2022 | 4,047,531 | $ 2 | 4,684,484 | (10,487) | (626,468) |
Beginning balance (in shares) at Jun. 30, 2022 | 104,731 | ||||
Beginning balance at Jun. 30, 2022 | 4,043,694 | $ 2 | 4,598,737 | (10,217) | (544,828) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (176,716) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 106,336 | ||||
Ending balance at Dec. 31, 2022 | 4,083,877 | $ 2 | 4,811,780 | (6,361) | (721,544) |
Beginning balance (in shares) at Sep. 30, 2022 | 105,633 | ||||
Beginning balance at Sep. 30, 2022 | 4,047,531 | $ 2 | 4,684,484 | (10,487) | (626,468) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares) | 663 | ||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 4,316 | 4,316 | |||
Issuance of common stock as consideration for an acquisition (in shares) | 40 | ||||
Issuance of common stock as consideration for an acquisition | 3,376 | 3,376 | |||
Stock-based compensation | 119,604 | 119,604 | |||
Other comprehensive income (loss) | 4,126 | 4,126 | |||
Net loss | (95,076) | (95,076) | |||
Ending balance (in shares) at Dec. 31, 2022 | 106,336 | ||||
Ending balance at Dec. 31, 2022 | 4,083,877 | $ 2 | 4,811,780 | (6,361) | (721,544) |
Beginning balance (in shares) at Jun. 30, 2023 | 106,550 | ||||
Beginning balance at Jun. 30, 2023 | 4,085,969 | $ 2 | 4,946,623 | (4,488) | (856,168) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares) | 634 | ||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 2,946 | 2,946 | |||
Issuance of common stock under the employee stock purchase plan (in shares) | 91 | ||||
Issuance of common stock under the employee stock purchase plan | 7,846 | 7,846 | |||
Repurchase and retirement of common stock (in shares) | (160) | ||||
Repurchase and retirement of common stock | (16,068) | (16,068) | |||
Stock-based compensation | 64,606 | 64,606 | |||
Other comprehensive income (loss) | 675 | 675 | |||
Net loss | (27,861) | (27,861) | |||
Ending balance (in shares) at Sep. 30, 2023 | 107,115 | ||||
Ending balance at Sep. 30, 2023 | 4,118,113 | $ 2 | 5,022,021 | (3,813) | (900,097) |
Beginning balance (in shares) at Jun. 30, 2023 | 106,550 | ||||
Beginning balance at Jun. 30, 2023 | 4,085,969 | $ 2 | 4,946,623 | (4,488) | (856,168) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (68,282) | ||||
Ending balance (in shares) at Dec. 31, 2023 | 105,081 | ||||
Ending balance at Dec. 31, 2023 | 3,951,845 | $ 2 | 5,088,799 | 237 | (1,137,193) |
Beginning balance (in shares) at Sep. 30, 2023 | 107,115 | ||||
Beginning balance at Sep. 30, 2023 | 4,118,113 | $ 2 | 5,022,021 | (3,813) | (900,097) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares) | 689 | ||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 2,106 | 2,106 | |||
Repurchase and retirement of common stock (in shares) | (2,723) | ||||
Repurchase and retirement of common stock | (196,675) | (196,675) | |||
Stock-based compensation | 64,672 | 64,672 | |||
Other comprehensive income (loss) | 4,050 | 4,050 | |||
Net loss | (40,421) | (40,421) | |||
Ending balance (in shares) at Dec. 31, 2023 | 105,081 | ||||
Ending balance at Dec. 31, 2023 | $ 3,951,845 | $ 2 | $ 5,088,799 | $ 237 | $ (1,137,193) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (68,282) | $ (176,716) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation | 130,647 | 191,925 |
Amortization of intangible assets | 40,443 | 39,763 |
Depreciation of property and equipment | 6,958 | 5,081 |
Amortization of capitalized internal-use software costs | 3,739 | 1,901 |
Amortization of debt issuance costs, net of accretion of debt premium | 3,523 | 3,483 |
Amortization of premium (accretion of discount) on investments in marketable debt securities | (24,171) | (10,401) |
Provision for losses on acquired card receivables and other financial assets | 28,689 | 15,042 |
Non-cash operating lease expense | 4,552 | 4,718 |
Deferred income taxes | (116) | (826) |
Other | (2,615) | 516 |
Changes in assets and liabilities: | ||
Accounts receivable | 390 | (7,052) |
Prepaid expenses and other current assets | (151) | (4,623) |
Other assets | (1,240) | (1,880) |
Accounts payable | 233 | 3,511 |
Other accruals and current liabilities | 20,944 | 15,408 |
Operating lease liabilities | (4,917) | (4,794) |
Other long-term liabilities | (47) | 35 |
Deferred revenue | (5,237) | (1,709) |
Net cash provided by operating activities | 133,342 | 73,382 |
Cash flows from investing activities: | ||
Cash paid for acquisition, net of acquired cash and cash equivalents | 0 | (28,902) |
Purchases of corporate and customer fund short-term investments | (990,240) | (1,641,193) |
Proceeds from maturities of corporate and customer fund short-term investments | 1,281,505 | 1,683,413 |
Proceeds from sale of corporate and customer fund short-term investments | 0 | 5,088 |
Purchases of loans held for investment | (110,113) | 0 |
Principal repayments of loans held for investment | 94,300 | 0 |
Acquired card receivables, net | (12,342) | (102,353) |
Purchases of property and equipment | (755) | (3,161) |
Capitalization of internal-use software costs | (10,762) | (10,510) |
Proceeds from beneficial interest | 0 | 2,080 |
Other | 0 | 1,000 |
Net cash provided by (used in) investing activities | 251,593 | (94,538) |
Cash flows from financing activities: | ||
Customer fund deposits liability and other | 299,770 | 325,846 |
Prepaid card deposits | (16,484) | 6,815 |
Repurchase of common stock | (211,902) | 0 |
Proceeds from line of credit borrowings | 0 | 37,500 |
Proceeds from exercise of stock options | 5,052 | 8,217 |
Proceeds from issuance of common stock under the employee stock purchase plan | 7,846 | 8,494 |
Contingent consideration payout | (5,471) | 0 |
Net cash provided by financing activities | 78,811 | 386,872 |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (7) | 182 |
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | 463,739 | 365,898 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 4,224,841 | 3,542,715 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | 4,688,580 | 3,908,613 |
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above: | ||
Cash and cash equivalents | 1,579,633 | 1,616,758 |
Restricted cash included in other current assets | 103,462 | 103,809 |
Restricted cash included in other assets | 7,116 | 6,724 |
Restricted cash and restricted cash equivalents included in funds held for customers | 2,998,369 | 2,181,322 |
Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ 4,688,580 | $ 3,908,613 |
The Company and Its Significant
The Company and Its Significant Accounting Policies | 6 Months Ended |
Dec. 31, 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 (and renamed BILL Holdings, Inc. in February 2023). In November 2018, Bill.com, Inc. consummated a reorganization with BILL Holdings, Inc., resulting in the latter becoming the parent entity of Bill.com, Inc. 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. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed 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) regarding interim financial reporting. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all normal and recurring adjustments that are, in the opinion of management, necessary to state fairly the Company’s financial position, results of operations, comprehensive loss, changes in stockholders’ equity, and cash flows for the periods presented. The results of operations for the three and six months ended December 31, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2024 or for any other future annual or interim period. The unaudited condensed consolidated balance sheet as of June 30, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. All intercompany accounts and transactions have been eliminated. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (2023 10-K). 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 December 31, 2023 and June 30, 2023. Total revenue from external customers outside of the U.S. was approximately 3% of consolidated total revenue during each of the three and six months ended December 31, 2023 and 2022. Reclassification Certain accounts in the prior period condensed consolidated statements of cash flows were reclassified to conform with the current year presentation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make various estimates and assumptions that affect the amounts reported and disclosed in the condensed 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 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 deferred tax assets. 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 condensed consolidated financial statements. 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. 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 condensed consolidated balance sheets. 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 expected credit losses on Financial Assets is recognized. As of December 31, 2023 and June 30, 2023, the allowance for expected credit losses related to accounts receivable and acquired card receivables totaled approximately $21.7 million and $15.9 million, respectively. These amounts do not include the immaterial allowance for expected credit losses on the purchase of card receivables that have been authorized but not cleared at the end of the periods. There were no customers that exceeded 10% of the Company’s total revenue during the three and six months ended December 31, 2023 and 2022. Foreign Currency Significant Accounting Policies There have been no changes to the Company’s significant accounting policies described in the 2023 10-K, except as noted below: Restructuring The Company records a liability for involuntary employee termination benefits when management has committed to a plan that establishes the terms of the arrangement and that plan has been communicated to employees. Costs to terminate a contract before the end of the term are recognized on the termination date, and costs that will continue to be incurred in a contract for the remaining term without economic benefit are recognized as of the cease-use date. New Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Reportable Segments (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses, including public entities with a single operating or reportable segment. The updated standard is effective for our annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026. Early adoption is permitted. This ASU will result in the required additional disclosures being included in our consolidated financial statements retrospectively to all periods presented, once adopted. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The updated standard will be effective for annual periods beginning in fiscal 2026. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. |
Revenue
Revenue | 6 Months Ended |
Dec. 31, 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). Three Months Ended Six Months Ended 2023 2022 2023 2022 Small-to-midsize businesses, accounting firms, spending businesses and other $ 269,845 $ 220,406 $ 530,049 $ 425,227 Financial institutions 5,147 10,689 10,085 20,479 Total subscription and transaction fees 274,992 231,095 540,134 445,706 Interest on funds held for customers 43,503 28,911 83,346 44,224 Total revenue $ 318,495 $ 260,006 $ 623,480 $ 489,930 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 three and six months ended December 31, 2023, the Company recognized $6.5 million and $16.7 million of revenue, respectively, that was included in the deferred revenue balance as of June 30, 2023. 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 December 31, 2023, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $110.0 million. Of the total remaining performance obligations, the Company expects to recognize approximately 84% within two years and 16% 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 $16.5 million and $14.0 million as of December 31, 2023 and June 30, 2023, respectively, and is included in accounts receivable, net in the accompanying condensed consolidated balance sheets. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Dec. 31, 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): December 31, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 993,163 $ — $ — $ 993,163 Corporate bonds — 41,644 — 41,644 Certificates of deposit — 2,097 — 2,097 U.S. agency securities — 4,965 — 4,965 993,163 48,706 — 1,041,869 Short-term investments: Corporate bonds — 424,434 — 424,434 U.S. treasury securities — 372,197 — 372,197 Asset-backed securities — 71,724 — 71,724 Certificates of deposit — 58,811 — 58,811 U.S. agency securities — 45,455 — 45,455 — 972,621 — 972,621 Funds held for customers: Restricted cash equivalents: Money market funds 1,449,575 — — 1,449,575 Corporate bonds — 283,988 — 283,988 U.S. treasury securities — 139,414 — 139,414 1,449,575 423,402 — 1,872,977 Short-term investments: Corporate bonds — 338,855 — 338,855 U.S. treasury securities — 182,430 — 182,430 Certificates of deposit — 86,490 — 86,490 Asset-backed securities — 30,771 — 30,771 U.S. agency securities — 13,839 — 13,839 — 652,385 — 652,385 Total assets measured at fair value $ 2,442,738 $ 2,097,114 $ — $ 4,539,852 Liabilities Contingent consideration (1) $ — $ — $ (6,500) $ (6,500) Total liabilities measured at fair value $ — $ — $ (6,500) $ (6,500) (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, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,131,621 $ — $ — $ 1,131,621 Corporate bonds — 45,301 — 45,301 U.S. treasury securities 44,856 — — 44,856 Certificates of deposit — 2,578 — 2,578 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. treasury securities 81,074 — — 81,074 Asset-backed securities — 70,661 — 70,661 U.S. agency securities — 27,458 — 27,458 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) $ (12,035) Total liabilities measured at fair value $ — $ — $ (12,035) $ (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. 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 $575.0 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 December 31, 2023. The Company carries the Notes at par value, less the unamortized issuance costs in the accompanying condensed consolidated balance sheets. The estimated fair value of the 2027 Notes and 2025 Notes, which is presented for disclosure purposes only, was approximately $479.7 million and $1.08 billion, respectively, as of December 31, 2023. The fair value was based on a market approach, which represents a Level 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. Our financial instruments not measured and recorded at fair value, includes cash, restricted cash, acquired cards receivables, interest receivable, incentive receivables and borrowings from revolving credit facility, are carried at amortized cost, which approximates their fair value. If these financial instruments were measured at fair value in the financial statements, cash would be classified as Level 1; restricted cash, interest receivables, incentive receivables and borrowings from revolving credit facility would be classified as Level 2 and the acquired cards receivables would be classified as Level 3 in the fair value hierarchy. |
Short-Term Investments and Fund
Short-Term Investments and Funds Held for Customers | 6 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments and Funds Held for Customers | SHORT-TERM INVESTMENTS AND FUNDS HELD FOR CUSTOMERS The following table summarizes the assets underlying short-term investments and funds held for customers as of the dates presented (in thousands): December 31, June 30, Short-term investments: Available-for-sale debt securities $ 972,621 $ 1,043,110 Total short-term investments 972,621 1,043,110 Funds held for customers: Restricted cash 1,125,392 1,793,088 Restricted cash equivalents 1,872,977 713,469 Funds receivable 12,281 12,822 Available-for-sale debt securities 652,385 846,404 Total funds held for customers 3,663,035 3,365,783 Less - income earned by the Company included in other current assets (7,600) (9,874) Total funds held for customers, net of income earned by the Company $ 3,655,435 $ 3,355,909 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. The Company contractually earns income from these investments, which 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. The following table summarizes the estimated fair value of available-for-sale debt securities included within funds held for customers and short-term investments as of the dates presented (in thousands): December 31, 2023 Amortized Gross Gross Fair value Short-term investments: Corporate bonds $ 424,195 $ 730 $ (491) $ 424,434 U.S. treasury securities 372,372 170 (345) 372,197 Asset-backed securities 71,536 217 (29) 71,724 Certificates of deposit 58,811 — — 58,811 U.S. agency securities 45,460 20 (25) 45,455 Total short-term investments $ 972,374 $ 1,137 $ (890) $ 972,621 Funds held for customers: Corporate bonds $ 338,702 $ 158 $ (5) $ 338,855 Certificates of deposit 86,490 — — 86,490 U.S. agency securities 13,849 — (10) 13,839 Asset-backed securities 30,824 — (53) 30,771 U.S. treasury securities 182,375 102 (47) 182,430 Total funds held for customers $ 652,240 $ 260 $ (115) $ 652,385 June 30, 2023 Amortized Gross Gross Fair value Short-term investments: Corporate bonds $ 481,658 $ 207 $ (2,382) $ 479,483 U.S. treasury securities 409,586 42 (1,260) 408,368 U.S. agency securities 58,166 — (199) 57,967 Asset-backed securities 51,321 8 (136) 51,193 Certificates of deposit 46,099 — — 46,099 Total short-term investments $ 1,046,830 $ 257 $ (3,977) $ 1,043,110 Funds held for customers: 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 funds held for customers $ 847,012 $ 25 $ (633) $ 846,404 The amortized cost and fair value amounts for short-term investments include accrued interest receivables of $5.2 million and $4.3 million as of December 31, 2023 and June 30, 2023, respectively. The amortized cost and fair value amounts for funds held for customers include accrued interest receivable of $3.7 million and $6.9 million as of December 31, 2023 and June 30, 2023, respectively. The following table summarizes fair value of the Company's available-for-sale debt securities by remaining contractual maturity as of the dates presented (in thousands): December 31, June 30, Due within one year $ 1,337,185 $ 1,543,379 Due in 1 year through 5 years 287,821 346,135 Total $ 1,625,006 $ 1,889,514 As of December 31, 2023, approximately 130 out of approximately 440 investments in available-for-sale debt securities were in an unrealized loss position. The following table shows gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): December 31, 2023 Less than 12 months 12 months or longer Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Short-term investments: Corporate bonds $ 119,582 $ (280) $ 45,813 $ (211) $ 165,395 $ (491) U.S. treasury securities 54,361 (95) 31,095 (250) 85,456 (345) Asset-backed securities 10,783 (14) 1,638 (15) 12,421 (29) U.S. agency securities 45,651 (25) — — 45,651 (25) Total short-term investments $ 230,377 $ (414) $ 78,546 $ (476) $ 308,923 $ (890) Funds held for customers: Corporate bonds $ 19,511 $ (5) $ — $ — $ 19,511 $ (5) U.S. agency securities 13,838 (10) — — 13,838 (10) Asset-backed securities 23,151 (29) 7,620 (24) 30,771 (53) U.S. treasury securities 45,226 (47) — — 45,226 (47) Total funds held for customers $ 101,726 $ (91) $ 7,620 $ (24) $ 109,346 $ (115) June 30, 2023 Less than 12 months 12 months or longer Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Short-term investments: Corporate bonds $ 213,373 $ (1,421) $ 83,189 $ (961) $ 296,562 $ (2,382) U.S. treasury securities 199,440 (976) 14,286 (284) 213,726 (1,260) Asset-backed securities 35,719 (103) 2,707 (33) 38,426 (136) U.S. agency securities 57,967 (199) — — 57,967 (199) Total short-term investments $ 506,499 $ (2,699) $ 100,182 $ (1,278) $ 606,681 $ (3,977) Funds held for customers: Corporate bonds $ 34,530 $ (34) $ — $ — $ 34,530 $ (34) Asset-backed securities 59,128 (258) 11,533 (74) 70,661 (332) U.S. agency securities 22,494 (31) — — 22,494 (31) U.S. treasury securities 74,888 (236) — — 74,888 (236) Total funds held for customers $ 191,040 $ (559) $ 11,533 $ (74) $ 202,573 $ (633) Unrealized losses have not been recognized into income as the Company neither intends to sell, nor anticipates that it is more likely than not that the Company will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. There have been no significant realized gains or losses on the short-term investments and funds held for customers during the three and six months ended December 31, 2023 and 2022. |
Acquired Card Receivables
Acquired Card Receivables | 6 Months Ended |
Dec. 31, 2023 | |
Acquired Card Receivables [Abstract] | |
Acquired Card Receivables | ACQUIRED CARD RECEIVABLES Acquired Card Receivables As of December 31, 2023, approximately $191.4 million of the acquired card receivable balance served as collateral for the Company’s borrowings from the Revolving Credit Facility (see Note 6). The Company incurred losses related to card transactions disputed by spending businesses. The amounts were not material during the three and six months ended December 31, 2023 and 2022. The acquired card receivable balances do not include purchases of card receivables from the Company's card issuing partner banks (Issuing Banks) that have not cleared at the end of the reporting period. Purchases of card receivables that have not cleared as of December 31, 2023 totaled $15.8 million. The Company recognized an immaterial amount of expected credit losses on the purchased card receivables that have not cleared yet as of December 31, 2023. 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): December 31, June 30, Current and less than 30 days past due $ 524,440 $ 463,704 30 ~ 59 days past due 5,570 2,507 60 ~ 89 days past due 5,584 4,544 90 ~ 119 days past due 2,511 3,196 Over 119 days past due 384 197 Total $ 538,489 $ 474,148 The outstanding balance of acquired card receivables that were (i) 90 days or more past due that continued to accrue fees and had an allowance for outstanding balance and fees and (ii) not classified as non-accrual was not material as of each of December 31, 2023 and June 30, 2023. Unused Credit Arrangements As of December 31, 2023, the Company, in partnership with the Issuing Banks, had approximately $2.1 billion in unused credit available to spending businesses. While this balance represents the total unused credit available, historical trends and current expectations indicate that the unused credit will likely not be fully utilized by spending businesses at any one time. The Company manages credit risk exposure by limiting total credit for each spending business. The Company periodically reviews credit lines to assess different factors, including account usage and customer creditworthiness. The credit lines can be terminated by the Company at any time, and they do not necessarily represent future cash requirements. The Company does not record a liability for expected credit losses for unused lines of credit as they are unconditionally cancellable. Allowance for Credit Losses Below is a summary of the changes in allowance for credit losses presented (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance, beginning $ 18,513 $ 7,541 $ 15,498 $ 5,414 Initial allowance for credit losses on purchased card receivables with credit deterioration — — — 10 Provision for expected credit losses 14,354 8,520 26,329 15,103 Charge-off amounts (12,118) (4,379) (21,908) (9,412) Recoveries collected 760 266 1,590 833 Balance, end of period $ 21,509 $ 11,948 $ 21,509 $ 11,948 |
Debt and Borrowings
Debt and Borrowings | 6 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Borrowings | DEBT AND BORROWINGS Debt and borrowings consisted of the following (in thousands): December 31, June 30, Current liabilities: Borrowings from revolving credit facility (including unamortized debt premium) (1) $ 135,021 $ 135,046 Non-current liabilities: Convertible senior notes: 2027 Notes, principal 575,000 575,000 2025 Notes, principal 1,150,000 1,150,000 Less: unamortized debt issuance costs (16,792) (20,218) Convertible senior notes, net 1,708,208 1,704,782 Total $ 1,843,229 $ 1,839,828 (1) Unamortized debt issuance costs balance for the Revolving Credit Facility was $0.1 million and $0.2 million as of December 31, 2023 and June 30, 2023, respectively, and is included in "Other assets" on the condensed consolidated balance sheets . 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). 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 five • 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, and together with the 2027 Notes, the Notes). 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 five • 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 December 31, 2023 and June 30, 2023, the Notes consisted of the following (in thousands): December 31, 2023 June 30, 2023 2027 Notes 2025 Notes 2027 Notes 2025 Notes Principal $ 575,000 $ 1,150,000 $ 575,000 $ 1,150,000 Less: unamortized issuance costs (8,840) (7,952) (10,188) (10,030) Net carrying amount $ 566,160 $ 1,142,048 $ 564,812 $ 1,139,970 The debt issuance costs of the Notes are being amortized using the effective interest method. During the three and six months ended December 31, 2023, the Company recognized $1.7 million and $3.4 million, respectively, of the debt issuance costs of the Notes. During the three and six months ended December 31, 2022, the Company recognized $1.7 million and $3.4 million, respectively, of the debt discount and issuance amortization costs related to the Notes. During each of the three and six months ended December 31, 2023 and 2022 the effective interest rate of the 2027 Notes was 0.48% and the effective interest rate of the 2025 Notes was 0.36%. As of December 31, 2023, the weighted-average remaining life of the Notes was 2.4 years. The "if-converted" value of the Notes did not exceed the principal amount of $1.7 billion as of each of December 31, 2023 and 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 2021 Revolving Credit 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 December 31, 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 8.31% per annum as of December 31, 2023. The Company is required to comply with certain restricted covenants, including liquidity requirements. As of December 31, 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 2021 Revolving Credit Agreement, with a weighted-average remaining amortization period of approximately 0.4 years. The amortization of the debt issuance costs and debt premium is recorded in other income, net in the accompanying condensed consolidated statement of operations and during each of the three and six months ended December 31, 2023 and 2022 was not material. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Stock Based Compensation Stock-based compensation by award type (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Restricted stock units (RSUs) (1) $ 57,495 $ 101,266 $ 112,357 $ 156,935 Stock options 2,784 13,117 6,491 24,911 Performance-based awards 4,253 3,157 9,316 6,448 Employee stock purchase plan 1,462 2,961 4,229 5,782 Market-based RSUs 1,415 1,254 2,485 2,507 Total stock-based compensation $ 67,409 $ 121,755 $ 134,878 $ 196,583 Stock-based compensation was included in the following line items in the accompanying condensed consolidated statements of operations and condensed consolidated balance sheets (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Revenue - subscription and transaction fees $ 486 $ — $ 856 $ — Cost of revenue 2,388 2,298 4,934 4,299 Research and development 26,160 26,981 53,526 47,831 Sales and marketing (1) 12,789 69,522 26,674 98,779 General and administrative 20,322 20,641 41,302 41,152 Restructuring 3,355 — 3,355 — Total amount charged to loss from operations 65,500 119,442 130,647 192,061 Property and equipment (capitalized internal-use software) 1,909 2,313 4,231 4,522 Total stock-based compensation $ 67,409 $ 121,755 $ 134,878 $ 196,583 1 In October 2022, the Company entered into separation and advisory agreements with its former Chief Revenue Officer (the CRO Agreements). Pursuant to the CRO Agreements, the former CRO will serve the Company as an advisor through September 2024. Upon execution of the CRO Agreements, the Company recognized $52.2 million of stock-based compensation expense related to the former CRO's RSUs. Unamortized stock-based compensation by award type: Unrecognized compensation (in thousands) Weighted-average recognition period (in years) RSUs $ 529,954 3.1 Performance-based awards 19,987 3.2 Market-based RSUs 9,698 1.6 Stock options 7,958 1.2 Employee stock purchase plan 1,526 0.5 Total unamortized stock-based compensation $ 569,124 Share Repurchase Program In January 2023, the Company's board of directors authorized the repurchase of up to $300.0 million of the Company's outstanding shares of common stock (the Share Repurchase Program). As of December 31, 2023, the Company completed the repurchase of shares with an aggregate value equal to the full authorized amount under the Share Repurchase Program. |
Other Income, Net
Other Income, Net | 6 Months Ended |
Dec. 31, 2023 | |
Other Income, Nonoperating [Abstract] | |
Other Income, Net | OTHER INCOME, NET Other income, net consisted of the following for the periods presented (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Interest expense $ (4,753) $ (3,562) $ (9,491) $ (6,411) Lower of cost or market adjustment on card receivables sold and held for sale — — — (1,545) Interest income 33,781 20,910 68,134 32,375 Other (109) (326) (416) (1,449) Total other income, net $ 28,919 $ 17,022 $ 58,227 $ 22,970 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s provision for income taxes during the interim periods is determined using an estimate of the Company’s annual effective tax rate, which is adjusted for certain discrete tax items during the interim period. The Company's income tax provision was approximately $1.7 million and $2.2 million for the three and six months ended December 31, 2023, respectively, and income tax benefit was approximately $0.4 million and $0.5 million for three and six months ended December 31, 2022, respectively. The Company’s effective tax rate differs from the federal statutory rate primarily due to its federal, state and foreign valuation allowance positions. The income tax provision during the three and six months ended December 31, 2023 consisted primarily of an estimated cash tax liability associated with the capitalization of R&D costs for federal and certain state tax purposes for the year ending June 30, 2024, partially offset by a reduction to the net deferred tax liability as a result of the Company's current year losses. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES During the three and six months ended December 31, 2023 there have been no material changes to the Company's contractual obligations, commitments or litigation from those disclosed in Note 15 to the financial statements in the 2023 10-K. |
Restructuring
Restructuring | 6 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING On December 5, 2023, the Company announced a restructuring plan (Restructuring Pl an) intended to right-size our organization, enhance profitability, and reallocate resources towards the most impactful initiatives. The Restru cturing Plan included a reduction of the Company's global workforce and closure of its office in Sydney, Australia. The Company incurred the majority of the charges relating to the Restructuring Plan in the three months ended December 31, 2023. The Company expects the Restructuring Plan to be substantially completed by June 30, 2024, subject to local law and consultation requirements. During the three and six months ended December 31, 2023, the Company recorded restructuring expenses of $25.1 million, which includes $3.4 million of stock-based compensation expense, as a separate line item in the accompanying condensed consolidated statements of operations. The following table summarizes the restructuring liability that is included in other accruals and current liabilities and accounts payable on the accompanying condensed consolidated balance sheets: Severance and termination benefits Contract termination Other Total restructuring liability Balance, at June 30, 2023 $ — $ — $ — $ — Charges 20,975 343 417 21,735 Cash payments (8,239) (72) — (8,311) Balance, at December 31, 2023 $ 12,736 $ 271 $ 417 $ 13,424 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable To Common Stockholders | 6 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable To Common Stockholders | NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been December 31, 2023 2022 RSUs 5,203 4,644 Stock options 2,189 3,156 Performance-based awards 285 — Market-based RSUs 115 — Employee stock purchase plan 6 — Total 7,798 7,800 In addition, approximately 8.5 million shares underlying the conversion option of the Notes are not considered in the calculation of diluted net loss per share as they would be anti-dilutive. Such number of shares issuable under the Notes is subject to adjustment up to approximately 12.7 million shares if certain corporate events occur prior to the maturity date of the Notes or if the Company issues a notice of redemption. The |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||||
Net loss | $ (40,421) | $ (27,861) | $ (95,076) | $ (81,640) | $ (68,282) | $ (176,716) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Individual Action Date Trading Arrangement Total Shares to be Sold Expiration Date Rule 10b5-1 (1) Non-Rule 10b5-1 (2) Germaine Cota Adopt 12/7/2023 X 17,926 (3) 8/23/2024 René Lacerte Terminate 11/20/2023 X 487,383 (4) 5/31/2025 John Rettig Terminate 11/21/2023 X 74,173 (4) 6/14/2024 (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). (3) Includes certain shares to be received upon the vesting and settlement of restricted stock units. Ms. Cota's plan includes, but the listed figure does not reflect, shares to be purchased under our Employee Stock Purchase Plan. (4) Includes certain shares to be received upon the vesting and settlement of restricted stock units and performance-based restricted stock units. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Germaine Cota [Member] | ||
Trading Arrangements, by Individual | ||
Name | Germaine Cota | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 12/7/2023 | |
Arrangement Duration | 260 days | |
Aggregate Available | 17,926 | 17,926 |
Rene Lacerte [Member] | ||
Trading Arrangements, by Individual | ||
Name | René Lacerte | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | 11/20/2023 | |
Aggregate Available | 487,383 | 487,383 |
John Rettig [Member] | ||
Trading Arrangements, by Individual | ||
Name | John Rettig | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | 11/21/2023 | |
Aggregate Available | 74,173 | 74,173 |
The Company and Its Significa_2
The Company and Its Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed 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) regarding interim financial reporting. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all normal and recurring adjustments that are, in the opinion of management, necessary to state fairly the Company’s financial position, results of operations, comprehensive loss, changes in stockholders’ equity, and cash flows for the periods presented. The results of operations for the three and six months ended December 31, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2024 or for any other future annual or interim period. The unaudited condensed consolidated balance sheet as of June 30, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. All intercompany accounts and transactions have been eliminated. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (2023 10-K). |
Segment Reporting | Segment Reporting |
Reclassification | Reclassification Certain accounts in the prior period condensed consolidated statements of cash flows were reclassified to conform with the current year presentation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make various estimates and assumptions that affect the amounts reported and disclosed in the condensed 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 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 deferred tax assets. 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 condensed consolidated financial statements. |
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. 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. |
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. |
Foreign Currency | Foreign Currency |
Significant Accounting Policies | Significant Accounting Policies There have been no changes to the Company’s significant accounting policies described in the 2023 10-K, except as noted below: |
Restructuring | Restructuring The Company records a liability for involuntary employee termination benefits when management has committed to a plan that establishes the terms of the arrangement and that plan has been communicated to employees. Costs to terminate a contract before the end of the term are recognized on the termination date, and costs that will continue to be incurred in a contract for the remaining term without economic benefit are recognized as of the cease-use date. |
New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Reportable Segments (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses, including public entities with a single operating or reportable segment. The updated standard is effective for our annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026. Early adoption is permitted. This ASU will result in the required additional disclosures being included in our consolidated financial statements retrospectively to all periods presented, once adopted. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The updated standard will be effective for annual periods beginning in fiscal 2026. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. |
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. Our financial instruments not measured and recorded at fair value, includes cash, restricted cash, acquired cards receivables, interest receivable, incentive receivables and borrowings from revolving credit facility, are carried at amortized cost, which approximates their fair value. If these financial instruments were measured at fair value in the financial statements, cash would be classified as Level 1; restricted cash, interest receivables, incentive receivables and borrowings from revolving credit facility would be classified as Level 2 and the acquired cards receivables would be classified as Level 3 in the fair value hierarchy. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from 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). Three Months Ended Six Months Ended 2023 2022 2023 2022 Small-to-midsize businesses, accounting firms, spending businesses and other $ 269,845 $ 220,406 $ 530,049 $ 425,227 Financial institutions 5,147 10,689 10,085 20,479 Total subscription and transaction fees 274,992 231,095 540,134 445,706 Interest on funds held for customers 43,503 28,911 83,346 44,224 Total revenue $ 318,495 $ 260,006 $ 623,480 $ 489,930 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Dec. 31, 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): December 31, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 993,163 $ — $ — $ 993,163 Corporate bonds — 41,644 — 41,644 Certificates of deposit — 2,097 — 2,097 U.S. agency securities — 4,965 — 4,965 993,163 48,706 — 1,041,869 Short-term investments: Corporate bonds — 424,434 — 424,434 U.S. treasury securities — 372,197 — 372,197 Asset-backed securities — 71,724 — 71,724 Certificates of deposit — 58,811 — 58,811 U.S. agency securities — 45,455 — 45,455 — 972,621 — 972,621 Funds held for customers: Restricted cash equivalents: Money market funds 1,449,575 — — 1,449,575 Corporate bonds — 283,988 — 283,988 U.S. treasury securities — 139,414 — 139,414 1,449,575 423,402 — 1,872,977 Short-term investments: Corporate bonds — 338,855 — 338,855 U.S. treasury securities — 182,430 — 182,430 Certificates of deposit — 86,490 — 86,490 Asset-backed securities — 30,771 — 30,771 U.S. agency securities — 13,839 — 13,839 — 652,385 — 652,385 Total assets measured at fair value $ 2,442,738 $ 2,097,114 $ — $ 4,539,852 Liabilities Contingent consideration (1) $ — $ — $ (6,500) $ (6,500) Total liabilities measured at fair value $ — $ — $ (6,500) $ (6,500) (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, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,131,621 $ — $ — $ 1,131,621 Corporate bonds — 45,301 — 45,301 U.S. treasury securities 44,856 — — 44,856 Certificates of deposit — 2,578 — 2,578 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. treasury securities 81,074 — — 81,074 Asset-backed securities — 70,661 — 70,661 U.S. agency securities — 27,458 — 27,458 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) $ (12,035) Total liabilities measured at fair value $ — $ — $ (12,035) $ (12,035) (1) |
Short-Term Investments and Fu_2
Short-Term Investments and Funds Held for Customers (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Funds Held For Customers | The following table summarizes the assets underlying short-term investments and funds held for customers as of the dates presented (in thousands): December 31, June 30, Short-term investments: Available-for-sale debt securities $ 972,621 $ 1,043,110 Total short-term investments 972,621 1,043,110 Funds held for customers: Restricted cash 1,125,392 1,793,088 Restricted cash equivalents 1,872,977 713,469 Funds receivable 12,281 12,822 Available-for-sale debt securities 652,385 846,404 Total funds held for customers 3,663,035 3,365,783 Less - income earned by the Company included in other current assets (7,600) (9,874) Total funds held for customers, net of income earned by the Company $ 3,655,435 $ 3,355,909 |
Summary of Fair Value of Funds Held For Customers Invested In Short Term Marketable Debt Securities and Funds Held for Customers | The following table summarizes the estimated fair value of available-for-sale debt securities included within funds held for customers and short-term investments as of the dates presented (in thousands): December 31, 2023 Amortized Gross Gross Fair value Short-term investments: Corporate bonds $ 424,195 $ 730 $ (491) $ 424,434 U.S. treasury securities 372,372 170 (345) 372,197 Asset-backed securities 71,536 217 (29) 71,724 Certificates of deposit 58,811 — — 58,811 U.S. agency securities 45,460 20 (25) 45,455 Total short-term investments $ 972,374 $ 1,137 $ (890) $ 972,621 Funds held for customers: Corporate bonds $ 338,702 $ 158 $ (5) $ 338,855 Certificates of deposit 86,490 — — 86,490 U.S. agency securities 13,849 — (10) 13,839 Asset-backed securities 30,824 — (53) 30,771 U.S. treasury securities 182,375 102 (47) 182,430 Total funds held for customers $ 652,240 $ 260 $ (115) $ 652,385 June 30, 2023 Amortized Gross Gross Fair value Short-term investments: Corporate bonds $ 481,658 $ 207 $ (2,382) $ 479,483 U.S. treasury securities 409,586 42 (1,260) 408,368 U.S. agency securities 58,166 — (199) 57,967 Asset-backed securities 51,321 8 (136) 51,193 Certificates of deposit 46,099 — — 46,099 Total short-term investments $ 1,046,830 $ 257 $ (3,977) $ 1,043,110 Funds held for customers: 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 funds held for customers $ 847,012 $ 25 $ (633) $ 846,404 |
Summary of Fair Value of Available-for-Sale Debt Securities | The following table summarizes fair value of the Company's available-for-sale debt securities by remaining contractual maturity as of the dates presented (in thousands): December 31, June 30, Due within one year $ 1,337,185 $ 1,543,379 Due in 1 year through 5 years 287,821 346,135 Total $ 1,625,006 $ 1,889,514 |
Summary of Gross Unrealized Losses And Fair Values | The following table shows gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): December 31, 2023 Less than 12 months 12 months or longer Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Short-term investments: Corporate bonds $ 119,582 $ (280) $ 45,813 $ (211) $ 165,395 $ (491) U.S. treasury securities 54,361 (95) 31,095 (250) 85,456 (345) Asset-backed securities 10,783 (14) 1,638 (15) 12,421 (29) U.S. agency securities 45,651 (25) — — 45,651 (25) Total short-term investments $ 230,377 $ (414) $ 78,546 $ (476) $ 308,923 $ (890) Funds held for customers: Corporate bonds $ 19,511 $ (5) $ — $ — $ 19,511 $ (5) U.S. agency securities 13,838 (10) — — 13,838 (10) Asset-backed securities 23,151 (29) 7,620 (24) 30,771 (53) U.S. treasury securities 45,226 (47) — — 45,226 (47) Total funds held for customers $ 101,726 $ (91) $ 7,620 $ (24) $ 109,346 $ (115) June 30, 2023 Less than 12 months 12 months or longer Total Fair value Unrealized Fair value Unrealized Fair value Unrealized Short-term investments: Corporate bonds $ 213,373 $ (1,421) $ 83,189 $ (961) $ 296,562 $ (2,382) U.S. treasury securities 199,440 (976) 14,286 (284) 213,726 (1,260) Asset-backed securities 35,719 (103) 2,707 (33) 38,426 (136) U.S. agency securities 57,967 (199) — — 57,967 (199) Total short-term investments $ 506,499 $ (2,699) $ 100,182 $ (1,278) $ 606,681 $ (3,977) Funds held for customers: Corporate bonds $ 34,530 $ (34) $ — $ — $ 34,530 $ (34) Asset-backed securities 59,128 (258) 11,533 (74) 70,661 (332) U.S. agency securities 22,494 (31) — — 22,494 (31) U.S. treasury securities 74,888 (236) — — 74,888 (236) Total funds held for customers $ 191,040 $ (559) $ 11,533 $ (74) $ 202,573 $ (633) |
Acquired Card Receivables (Tabl
Acquired Card Receivables (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Acquired Card Receivables [Abstract] | |
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): December 31, June 30, Current and less than 30 days past due $ 524,440 $ 463,704 30 ~ 59 days past due 5,570 2,507 60 ~ 89 days past due 5,584 4,544 90 ~ 119 days past due 2,511 3,196 Over 119 days past due 384 197 Total $ 538,489 $ 474,148 |
Summary of Change in Allowance for Credit Losses | Below is a summary of the changes in allowance for credit losses presented (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Balance, beginning $ 18,513 $ 7,541 $ 15,498 $ 5,414 Initial allowance for credit losses on purchased card receivables with credit deterioration — — — 10 Provision for expected credit losses 14,354 8,520 26,329 15,103 Charge-off amounts (12,118) (4,379) (21,908) (9,412) Recoveries collected 760 266 1,590 833 Balance, end of period $ 21,509 $ 11,948 $ 21,509 $ 11,948 |
Debt and Borrowings (Tables)
Debt and Borrowings (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt and borrowings consisted of the following (in thousands): December 31, June 30, Current liabilities: Borrowings from revolving credit facility (including unamortized debt premium) (1) $ 135,021 $ 135,046 Non-current liabilities: Convertible senior notes: 2027 Notes, principal 575,000 575,000 2025 Notes, principal 1,150,000 1,150,000 Less: unamortized debt issuance costs (16,792) (20,218) Convertible senior notes, net 1,708,208 1,704,782 Total $ 1,843,229 $ 1,839,828 (1) Unamortized debt issuance costs balance for the Revolving Credit Facility was $0.1 million and $0.2 million as of December 31, 2023 and June 30, 2023, respectively, and is included in "Other assets" on the condensed consolidated balance sheets . |
Convertible Debt | As of December 31, 2023 and June 30, 2023, the Notes consisted of the following (in thousands): December 31, 2023 June 30, 2023 2027 Notes 2025 Notes 2027 Notes 2025 Notes Principal $ 575,000 $ 1,150,000 $ 575,000 $ 1,150,000 Less: unamortized issuance costs (8,840) (7,952) (10,188) (10,030) Net carrying amount $ 566,160 $ 1,142,048 $ 564,812 $ 1,139,970 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Summary of Stock Based Compensation Cost from Stock Options, RSUs and ESPP | Stock-based compensation by award type (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Restricted stock units (RSUs) (1) $ 57,495 $ 101,266 $ 112,357 $ 156,935 Stock options 2,784 13,117 6,491 24,911 Performance-based awards 4,253 3,157 9,316 6,448 Employee stock purchase plan 1,462 2,961 4,229 5,782 Market-based RSUs 1,415 1,254 2,485 2,507 Total stock-based compensation $ 67,409 $ 121,755 $ 134,878 $ 196,583 Stock-based compensation was included in the following line items in the accompanying condensed consolidated statements of operations and condensed consolidated balance sheets (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Revenue - subscription and transaction fees $ 486 $ — $ 856 $ — Cost of revenue 2,388 2,298 4,934 4,299 Research and development 26,160 26,981 53,526 47,831 Sales and marketing (1) 12,789 69,522 26,674 98,779 General and administrative 20,322 20,641 41,302 41,152 Restructuring 3,355 — 3,355 — Total amount charged to loss from operations 65,500 119,442 130,647 192,061 Property and equipment (capitalized internal-use software) 1,909 2,313 4,231 4,522 Total stock-based compensation $ 67,409 $ 121,755 $ 134,878 $ 196,583 1 In October 2022, the Company entered into separation and advisory agreements with its former Chief Revenue Officer (the CRO Agreements). Pursuant to the CRO Agreements, the former CRO will serve the Company as an advisor through September 2024. Upon execution of the CRO Agreements, the Company recognized $52.2 million of stock-based compensation expense related to the former CRO's RSUs. Unamortized stock-based compensation by award type: Unrecognized compensation (in thousands) Weighted-average recognition period (in years) RSUs $ 529,954 3.1 Performance-based awards 19,987 3.2 Market-based RSUs 9,698 1.6 Stock options 7,958 1.2 Employee stock purchase plan 1,526 0.5 Total unamortized stock-based compensation $ 569,124 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Other Income, Nonoperating [Abstract] | |
Schedule of Other Income, Net | Other income, net consisted of the following for the periods presented (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Interest expense $ (4,753) $ (3,562) $ (9,491) $ (6,411) Lower of cost or market adjustment on card receivables sold and held for sale — — — (1,545) Interest income 33,781 20,910 68,134 32,375 Other (109) (326) (416) (1,449) Total other income, net $ 28,919 $ 17,022 $ 58,227 $ 22,970 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Liabilities | The following table summarizes the restructuring liability that is included in other accruals and current liabilities and accounts payable on the accompanying condensed consolidated balance sheets: Severance and termination benefits Contract termination Other Total restructuring liability Balance, at June 30, 2023 $ — $ — $ — $ — Charges 20,975 343 417 21,735 Cash payments (8,239) (72) — (8,311) Balance, at December 31, 2023 $ 12,736 $ 271 $ 417 $ 13,424 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable To Common Stockholders (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
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 December 31, 2023 2022 RSUs 5,203 4,644 Stock options 2,189 3,156 Performance-based awards 285 — Market-based RSUs 115 — Employee stock purchase plan 6 — Total 7,798 7,800 |
The Company and Its Significa_3
The Company and Its Significant Accounting Policies - Segment Reporting (Details) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 Segment | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||||
Number of operating segments | 1 | |||
External customer revenue, percentage | 0.03 | 0.03 | 0.03 | 0.03 |
The Company and Its Significa_4
The Company and Its Significant Accounting Policies - Concentrations of Credit Risk (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 USD ($) Customer | Dec. 31, 2022 Customer | Dec. 31, 2023 USD ($) Customer | Dec. 31, 2022 Customer | Jun. 30, 2023 USD ($) | |
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 | $ | $ 21.7 | $ 21.7 | $ 15.9 | ||
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 | 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% | 10% |
Revenue - Schedule of Revenue f
Revenue - Schedule of Revenue from Subscription and Transaction Fees Disaggregated by Customer Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 318,495 | $ 260,006 | $ 623,480 | $ 489,930 |
Subscription and transaction fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 274,992 | 231,095 | 540,134 | 445,706 |
Subscription and transaction fees | Small-to-midsize businesses, accounting firms, spending businesses and other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 269,845 | 220,406 | 530,049 | 425,227 |
Subscription and transaction fees | Financial institutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 5,147 | 10,689 | 10,085 | 20,479 |
Interest on funds held for customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 43,503 | $ 28,911 | $ 83,346 | $ 44,224 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2023 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | |||
Deferred revenue, recognized | $ 6.5 | $ 16.7 | |
Aggregate amount of transaction price allocated to performance obligations | 110 | 110 | |
Unbilled revenue | $ 16.5 | $ 16.5 | $ 14 |
Percentage expected to be amended | 0.44 | 0.44 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |||
Disaggregation Of Revenue [Line Items] | |||
Aggregate amount of transaction price allocated to performance obligations, percentage | 84% | 84% | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 2 years | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |||
Disaggregation Of Revenue [Line Items] | |||
Aggregate amount of transaction price allocated to performance obligations, percentage | 16% | 16% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | Minimum | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 years | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | Maximum | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 5 years | 5 years |
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 | Dec. 31, 2023 | Jun. 30, 2023 |
Assets | ||
Cash equivalents: | $ 1,041,869 | $ 1,224,356 |
Short-term investments: | 972,621 | 1,043,110 |
Total assets measured at fair value | 4,539,852 | 3,827,339 |
Liabilities | ||
Contingent consideration | (6,500) | (12,035) |
Total liabilities measured at fair value | (6,500) | (12,035) |
Money market funds | ||
Assets | ||
Cash equivalents: | 993,163 | 1,131,621 |
Corporate bonds | ||
Assets | ||
Cash equivalents: | 41,644 | 45,301 |
Short-term investments: | 424,434 | 479,483 |
U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 44,856 | |
Short-term investments: | 372,197 | 408,368 |
U.S. agency securities | ||
Assets | ||
Cash equivalents: | 4,965 | |
Short-term investments: | 45,455 | 57,967 |
Asset-backed securities | ||
Assets | ||
Short-term investments: | 71,724 | 51,193 |
Certificates of deposit | ||
Assets | ||
Cash equivalents: | 2,097 | 2,578 |
Short-term investments: | 58,811 | 46,099 |
Restricted cash equivalents: | Corporate bonds | ||
Assets | ||
Funds held for customers: | 283,988 | |
Restricted cash equivalents: | U.S. treasury securities | ||
Assets | ||
Funds held for customers: | 139,414 | |
Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 1,872,977 | 713,469 |
Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 1,449,575 | 713,469 |
Short-term investments | ||
Assets | ||
Funds held for customers: | 652,385 | 846,404 |
Short-term investments | Corporate bonds | ||
Assets | ||
Funds held for customers: | 338,855 | 433,920 |
Short-term investments | U.S. treasury securities | ||
Assets | ||
Funds held for customers: | 182,430 | 81,074 |
Short-term investments | U.S. agency securities | ||
Assets | ||
Funds held for customers: | 13,839 | 27,458 |
Short-term investments | Asset-backed securities | ||
Assets | ||
Funds held for customers: | 30,771 | 70,661 |
Short-term investments | Certificates of deposit | ||
Assets | ||
Funds held for customers: | 86,490 | 233,291 |
Level 1 | ||
Assets | ||
Cash equivalents: | 993,163 | 1,176,477 |
Short-term investments: | 0 | 408,368 |
Total assets measured at fair value | 2,442,738 | 2,379,388 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Money market funds | ||
Assets | ||
Cash equivalents: | 993,163 | 1,131,621 |
Level 1 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 44,856 | |
Short-term investments: | 0 | 408,368 |
Level 1 | U.S. agency securities | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments: | 0 | 0 |
Level 1 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Level 1 | Certificates of deposit | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Level 1 | Restricted cash equivalents: | Corporate bonds | ||
Assets | ||
Funds held for customers: | 0 | |
Level 1 | Restricted cash equivalents: | U.S. treasury securities | ||
Assets | ||
Funds held for customers: | 0 | |
Level 1 | Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 1,449,575 | 713,469 |
Level 1 | Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 1,449,575 | 713,469 |
Level 1 | Short-term investments | ||
Assets | ||
Funds held for customers: | 0 | 81,074 |
Level 1 | Short-term investments | Corporate bonds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 1 | Short-term investments | U.S. treasury securities | ||
Assets | ||
Funds held for customers: | 0 | 81,074 |
Level 1 | Short-term investments | U.S. agency securities | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 1 | Short-term investments | Asset-backed securities | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 1 | Short-term investments | Certificates of deposit | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 2 | ||
Assets | ||
Cash equivalents: | 48,706 | 47,879 |
Short-term investments: | 972,621 | 634,742 |
Total assets measured at fair value | 2,097,114 | 1,447,951 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | Money market funds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Level 2 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 41,644 | 45,301 |
Short-term investments: | 424,434 | 479,483 |
Level 2 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments: | 372,197 | 0 |
Level 2 | U.S. agency securities | ||
Assets | ||
Cash equivalents: | 4,965 | |
Short-term investments: | 45,455 | 57,967 |
Level 2 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 71,724 | 51,193 |
Level 2 | Certificates of deposit | ||
Assets | ||
Cash equivalents: | 2,097 | 2,578 |
Short-term investments: | 58,811 | 46,099 |
Level 2 | Restricted cash equivalents: | Corporate bonds | ||
Assets | ||
Funds held for customers: | 283,988 | |
Level 2 | Restricted cash equivalents: | U.S. treasury securities | ||
Assets | ||
Funds held for customers: | 139,414 | |
Level 2 | Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 423,402 | 0 |
Level 2 | Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 2 | Short-term investments | ||
Assets | ||
Funds held for customers: | 652,385 | 765,330 |
Level 2 | Short-term investments | Corporate bonds | ||
Assets | ||
Funds held for customers: | 338,855 | 433,920 |
Level 2 | Short-term investments | U.S. treasury securities | ||
Assets | ||
Funds held for customers: | 182,430 | 0 |
Level 2 | Short-term investments | U.S. agency securities | ||
Assets | ||
Funds held for customers: | 13,839 | 27,458 |
Level 2 | Short-term investments | Asset-backed securities | ||
Assets | ||
Funds held for customers: | 30,771 | 70,661 |
Level 2 | Short-term investments | Certificates of deposit | ||
Assets | ||
Funds held for customers: | 86,490 | 233,291 |
Level 3 | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Contingent consideration | (6,500) | (12,035) |
Total liabilities measured at fair value | (6,500) | (12,035) |
Level 3 | Money market funds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Level 3 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments: | 0 | 0 |
Level 3 | U.S. agency securities | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments: | 0 | 0 |
Level 3 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Level 3 | Certificates of deposit | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Level 3 | Restricted cash equivalents: | Corporate bonds | ||
Assets | ||
Funds held for customers: | 0 | |
Level 3 | Restricted cash equivalents: | U.S. treasury securities | ||
Assets | ||
Funds held for customers: | 0 | |
Level 3 | Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Short-term investments | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Short-term investments | Corporate bonds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Short-term investments | U.S. treasury securities | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Short-term investments | U.S. agency securities | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Short-term investments | Asset-backed securities | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Short-term investments | Certificates of deposit | ||
Assets | ||
Funds held for customers: | $ 0 | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 24, 2021 | Nov. 30, 2020 |
2027 Senior Notes | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Debt instrument, aggregate principal amount | $ 575 | $ 575 | |
Debt stated percentage | 0% | 0% | |
Debt instrument, fair value estimated | $ 479.7 | ||
2025 Senior Notes | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Debt instrument, aggregate principal amount | $ 1,150 | $ 1,150 | |
Debt stated percentage | 0% | 0% | |
Debt instrument, fair value estimated | $ 1,080 |
Short-Term Investments and Fu_3
Short-Term Investments and Funds Held for Customers - Summary of Funds Held for Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Short-term investments: | ||
Available-for-sale debt securities | $ 972,621 | $ 1,043,110 |
Funds held for customers: | ||
Total funds held for customers | 3,663,035 | 3,365,783 |
Less - income earned by the Company included in other current assets | (7,600) | (9,874) |
Funds held for customers | 3,655,435 | 3,355,909 |
Restricted cash | ||
Funds held for customers: | ||
Total funds held for customers | 1,125,392 | 1,793,088 |
Restricted cash equivalents: | ||
Funds held for customers: | ||
Total funds held for customers | 1,872,977 | 713,469 |
Funds receivable | ||
Funds held for customers: | ||
Total funds held for customers | 12,281 | 12,822 |
Available-for-sale debt securities | ||
Funds held for customers: | ||
Total funds held for customers | $ 652,385 | $ 846,404 |
Short-Term Investments and Fu_4
Short-Term Investments and Funds Held for Customers - Summary of Fair Value of Funds Held For Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Short-term investments: | ||
Amortized cost | $ 972,374 | $ 1,046,830 |
Gross unrealized gains | 1,137 | 257 |
Gross unrealized losses | (890) | (3,977) |
Short-term investments | 972,621 | 1,043,110 |
Funds held for customers: | ||
Amortized cost | 652,240 | 847,012 |
Gross unrealized gains | 260 | 25 |
Gross unrealized losses | (115) | (633) |
Fair value | 652,385 | 846,404 |
Certificates of deposit | ||
Funds held for customers: | ||
Amortized cost | 233,290 | |
Gross unrealized gains | 1 | |
Gross unrealized losses | 0 | |
Fair value | 233,291 | |
Corporate bonds | ||
Short-term investments: | ||
Amortized cost | 424,195 | 481,658 |
Gross unrealized gains | 730 | 207 |
Gross unrealized losses | (491) | (2,382) |
Short-term investments | 424,434 | 479,483 |
Funds held for customers: | ||
Amortized cost | 338,702 | 433,936 |
Gross unrealized gains | 158 | 18 |
Gross unrealized losses | (5) | (34) |
Fair value | 338,855 | 433,920 |
U.S. treasury securities | ||
Short-term investments: | ||
Amortized cost | 372,372 | 409,586 |
Gross unrealized gains | 170 | 42 |
Gross unrealized losses | (345) | (1,260) |
Short-term investments | 372,197 | 408,368 |
Funds held for customers: | ||
Amortized cost | 182,375 | 81,309 |
Gross unrealized gains | 102 | 1 |
Gross unrealized losses | (47) | (236) |
Fair value | 182,430 | 81,074 |
Asset-backed securities | ||
Short-term investments: | ||
Amortized cost | 71,536 | 51,321 |
Gross unrealized gains | 217 | 8 |
Gross unrealized losses | (29) | (136) |
Short-term investments | 71,724 | 51,193 |
Funds held for customers: | ||
Amortized cost | 30,824 | 70,993 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (53) | (332) |
Fair value | 30,771 | 70,661 |
Certificates of deposit | ||
Short-term investments: | ||
Amortized cost | 58,811 | 46,099 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Short-term investments | 58,811 | 46,099 |
Funds held for customers: | ||
Amortized cost | 86,490 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 86,490 | |
U.S. agency securities | ||
Short-term investments: | ||
Amortized cost | 45,460 | 58,166 |
Gross unrealized gains | 20 | 0 |
Gross unrealized losses | (25) | (199) |
Short-term investments | 45,455 | 57,967 |
Funds held for customers: | ||
Amortized cost | 13,849 | 27,484 |
Gross unrealized gains | 0 | 5 |
Gross unrealized losses | (10) | (31) |
Fair value | $ 13,839 | $ 27,458 |
Short-Term Investments and Fu_5
Short-Term Investments and Funds Held for Customers - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 USD ($) InvestmentPosition | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) InvestmentPosition | Dec. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | |
Debt Securities, Available-for-Sale [Line Items] | |||||
Accrued interest receivable | $ 5,200,000 | $ 5,200,000 | $ 4,300,000 | ||
Amortized cost | 652,240,000 | 652,240,000 | 847,012,000 | ||
Fair value | $ 652,385,000 | $ 652,385,000 | 846,404,000 | ||
Number of unrealized loss investment positions | InvestmentPosition | 130 | 130 | |||
Number of investment positions | InvestmentPosition | 440 | 440 | |||
Short-term investments realized gains or losses | $ 0 | $ 0 | $ 0 | $ 0 | |
Accrued Interest Receivable | |||||
Debt Securities, Available-for-Sale [Line Items] | |||||
Amortized cost | 3,700,000 | 3,700,000 | 6,900,000 | ||
Fair value | $ 3,700,000 | $ 3,700,000 | $ 6,900,000 |
Short-Term Investments and Fu_6
Short-Term Investments and Funds Held for Customers - Summary of Fair Value of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year | $ 1,337,185 | $ 1,543,379 |
Due in 1 year through 5 years | 287,821 | 346,135 |
Total | $ 1,625,006 | $ 1,889,514 |
Short-Term Investments and Fu_7
Short-Term Investments and Funds Held for Customers - Summary of Gross Unrealized Losses And Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Short-term investments: | ||
Fair value, less than 12 months | $ 230,377 | $ 506,499 |
Unrealized losses, less than 12 months | (414) | (2,699) |
Fair value, 12 months or longer | 78,546 | 100,182 |
Unrealized losses, 12 months or longer | (476) | (1,278) |
Fair value | 308,923 | 606,681 |
Unrealized losses | (890) | (3,977) |
Funds held for customers: | ||
Fair value, less than 12 months | 101,726 | 191,040 |
Unrealized losses, less than 12 months | (91) | (559) |
Fair value, 12 months or longer | 7,620 | 11,533 |
Unrealized losses, 12 months or longer | (24) | (74) |
Fair value | 109,346 | 202,573 |
Unrealized losses | (115) | (633) |
Corporate bonds | ||
Short-term investments: | ||
Fair value, less than 12 months | 119,582 | 213,373 |
Unrealized losses, less than 12 months | (280) | (1,421) |
Fair value, 12 months or longer | 45,813 | 83,189 |
Unrealized losses, 12 months or longer | (211) | (961) |
Fair value | 165,395 | 296,562 |
Unrealized losses | (491) | (2,382) |
Funds held for customers: | ||
Fair value, less than 12 months | 19,511 | 34,530 |
Unrealized losses, less than 12 months | (5) | (34) |
Fair value, 12 months or longer | 0 | 0 |
Unrealized losses, 12 months or longer | 0 | 0 |
Fair value | 19,511 | 34,530 |
Unrealized losses | (5) | (34) |
U.S. treasury securities | ||
Short-term investments: | ||
Fair value, less than 12 months | 54,361 | 199,440 |
Unrealized losses, less than 12 months | (95) | (976) |
Fair value, 12 months or longer | 31,095 | 14,286 |
Unrealized losses, 12 months or longer | (250) | (284) |
Fair value | 85,456 | 213,726 |
Unrealized losses | (345) | (1,260) |
Funds held for customers: | ||
Fair value, less than 12 months | 45,226 | 74,888 |
Unrealized losses, less than 12 months | (47) | (236) |
Fair value, 12 months or longer | 0 | 0 |
Unrealized losses, 12 months or longer | 0 | 0 |
Fair value | 45,226 | 74,888 |
Unrealized losses | (47) | (236) |
Asset-backed securities | ||
Short-term investments: | ||
Fair value, less than 12 months | 10,783 | 35,719 |
Unrealized losses, less than 12 months | (14) | (103) |
Fair value, 12 months or longer | 1,638 | 2,707 |
Unrealized losses, 12 months or longer | (15) | (33) |
Fair value | 12,421 | 38,426 |
Unrealized losses | (29) | (136) |
Funds held for customers: | ||
Fair value, less than 12 months | 23,151 | 59,128 |
Unrealized losses, less than 12 months | (29) | (258) |
Fair value, 12 months or longer | 7,620 | 11,533 |
Unrealized losses, 12 months or longer | (24) | (74) |
Fair value | 30,771 | 70,661 |
Unrealized losses | (53) | (332) |
U.S. agency securities | ||
Short-term investments: | ||
Fair value, less than 12 months | 45,651 | 57,967 |
Unrealized losses, less than 12 months | (25) | (199) |
Fair value, 12 months or longer | 0 | 0 |
Unrealized losses, 12 months or longer | 0 | 0 |
Fair value | 45,651 | 57,967 |
Unrealized losses | (25) | (199) |
Funds held for customers: | ||
Fair value, less than 12 months | 13,838 | 22,494 |
Unrealized losses, less than 12 months | (10) | (31) |
Fair value, 12 months or longer | 0 | 0 |
Unrealized losses, 12 months or longer | 0 | 0 |
Fair value | 13,838 | 22,494 |
Unrealized losses | $ (10) | $ (31) |
Acquired Card Receivables - Add
Acquired Card Receivables - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Acquired Card Receivables [Abstract] | ||||
Acquired card receivable as collateral | $ 191.4 | $ 191.4 | ||
Authorized transactions but not cleared | 15.8 | $ 15.8 | ||
Grace period to payment on acquired card receivables | 5 days | |||
Acquired card receivables, minimum number of past due days to accrue fees | 90 days | |||
Unused credit available | 2,100 | $ 2,100 | ||
Card receivables acquired during the period | $ 4,300 | $ 3,300 | $ 8,300 | $ 6,000 |
Acquired Card Receivables - Sum
Acquired Card Receivables - Summary of Acquired Card Receivables by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 538,489 | $ 474,148 |
Current and less than 30 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 524,440 | 463,704 |
30 ~ 59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,570 | 2,507 |
60 ~ 89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,584 | 4,544 |
90 ~ 119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,511 | 3,196 |
Over 119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 384 | $ 197 |
Acquired Card Receivables - S_2
Acquired Card Receivables - Summary of Change in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning | $ 18,513 | $ 7,541 | $ 15,498 | $ 5,414 |
Initial allowance for credit losses on purchased card receivables with credit deterioration | 0 | 0 | 0 | 10 |
Provision for expected credit losses | 14,354 | 8,520 | 26,329 | 15,103 |
Charge-off amounts | (12,118) | (4,379) | (21,908) | (9,412) |
Recoveries collected | 760 | 266 | 1,590 | 833 |
Balance, end of period | $ 21,509 | $ 11,948 | $ 21,509 | $ 11,948 |
Debt and Borrowings - Schedule
Debt and Borrowings - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Less: unamortized debt issuance costs | $ (16,792) | $ (20,218) |
Convertible senior notes, net | 1,708,208 | 1,704,782 |
Total | 1,843,229 | 1,839,828 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Borrowings from revolving credit facility | 135,021 | 135,046 |
Unamortized debt issuance costs | 100 | 200 |
2027 Senior Notes | ||
Debt Instrument [Line Items] | ||
Non-current liabilities | 575,000 | 575,000 |
Total | 566,160 | 564,812 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Non-current liabilities | 1,150,000 | 1,150,000 |
Total | $ 1,142,048 | $ 1,139,970 |
Debt and Borrowings - Additiona
Debt and Borrowings - Additional Information (Details) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | |||||
Sep. 24, 2021 USD ($) $ / shares shares | Nov. 30, 2020 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) Tradingday $ / shares shares | Dec. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||||
Amortization of debt discount and issuance costs | $ 3,523,000 | $ 3,483,000 | |||||
2021 Revolving Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, effective interest rate percentage | 8.31% | 8.31% | |||||
2027 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 575,000,000 | $ 575,000,000 | $ 575,000,000 | ||||
Debt stated percentage | 0% | 0% | 0% | ||||
Debt instrument, maturity date | Apr. 01, 2027 | ||||||
Debt issuance costs | $ 14,900,000 | ||||||
Debt initial conversion rate | 0.0024108 | ||||||
Initial conversion price per share | $ / shares | $ 414.80 | ||||||
Notes issued upon conversion (in shares) | shares | 1.4 | ||||||
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 | Jan. 01, 2027 | ||||||
Debt instrument denomination of principal amount for conversion into common stock | $ 1,000 | ||||||
Number of business day period for conversion of notes | 5 days | ||||||
Number of consecutive trading day period in consideration for conversion of notes | 5 days | ||||||
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 | $ 272 | |||||
Debt default threshold principal amount percentage | 100% | ||||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 560,100,000 | ||||||
Debt instrument, effective interest rate percentage | 0.48% | 0.48% | |||||
Cost of capped call | $ 125,800,000 | ||||||
Capped call, initial strike price (dollars per share) | $ / shares | $ 414.80 | $ 414.80 | |||||
Capped call, initial cap price (dollars per share) | $ / shares | $ 544 | $ 544 | |||||
Cap calls cover subject to anti-dilution adjustments to common stock (in shares) | shares | 8.5 | ||||||
Principal | $ 575,000,000 | $ 575,000,000 | $ 575,000,000 | ||||
2027 Senior Notes | Redeem On or After October 5, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption period, start date | Oct. 05, 2024 | ||||||
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 | ||||||
2025 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | ||||
Debt stated percentage | 0% | 0% | 0% | ||||
Debt instrument, maturity date | Dec. 01, 2025 | ||||||
Debt issuance costs | $ 20,600,000 | ||||||
Debt initial conversion rate | 0.0062159 | ||||||
Initial conversion price per share | $ / shares | $ 160.88 | ||||||
Notes issued upon conversion (in 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 | ||||||
Debt instrument denomination of principal amount for conversion into common stock | $ 1,000 | $ 1,000 | |||||
Number of business day period for conversion of notes | 5 days | ||||||
Number of consecutive trading day period in consideration for conversion of notes | 5 days | ||||||
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 | $ 109.07 | |||||
Debt default threshold principal amount percentage | 100% | ||||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 1,130,000,000 | ||||||
Debt instrument, effective interest rate percentage | 0.36% | 0.36% | |||||
Cost of capped call | $ 125,800,000 | ||||||
Capped call, initial strike price (dollars per share) | $ / shares | 160.88 | $ 160.88 | |||||
Capped call, initial cap price (dollars per share) | $ / shares | $ 218.14 | $ 218.14 | |||||
Cap calls cover subject to anti-dilution adjustments to common stock (in shares) | shares | 8.5 | ||||||
Principal | $ 1,150,000,000 | $ 1,150,000,000 | 1,150,000,000 | ||||
2025 Senior 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 | ||||||
2027 and 2025 Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Amortization of debt discount and issuance costs | 1,700,000 | $ 1,700,000 | $ 3,400,000 | $ 3,400,000 | |||
Debt instrument, weighted average remaining term | 2 years 4 months 24 days | ||||||
Principal | $ 1,700,000,000 | $ 1,700,000,000 | $ 1,700,000,000 |
Debt and Borrowings - Schedul_2
Debt and Borrowings - Schedule of Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Total | $ 1,843,229 | $ 1,839,828 |
2027 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 575,000 | 575,000 |
Less: unamortized issuance costs | (8,840) | (10,188) |
Total | 566,160 | 564,812 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 1,150,000 | 1,150,000 |
Less: unamortized issuance costs | (7,952) | (10,030) |
Total | $ 1,142,048 | $ 1,139,970 |
Debt and Borrowings - Revolving
Debt and Borrowings - Revolving Credit Facility- Additional Information (Details) - 2021 Revolving Credit Agreement - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Aug. 31, 2022 | Dec. 31, 2023 | Aug. 01, 2022 | |
Debt Instrument [Line Items] | |||
Line of credit facility maturity month and year | 2024-06 | ||
Line of credit facility, maximum borrowing capacity | $ 225,000 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||
Line of credit, outstanding amount threshold | $ 75,000 | ||
Benchmark adjustment rate | 0.28% | ||
Remaining weighted-average amortization period | 4 months 24 days | ||
Utilization Period Two | |||
Debt Instrument [Line Items] | |||
Line of credit facility, minimum utilization | $ 135,000 | ||
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 - Summary
Stockholders' Equity - Summary of Stock-Based Compensation By Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 67,409 | $ 121,755 | $ 134,878 | $ 196,583 |
RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 57,495 | 101,266 | 112,357 | 156,935 |
Stock options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 2,784 | 13,117 | 6,491 | 24,911 |
Performance-based awards | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 4,253 | 3,157 | 9,316 | 6,448 |
Employee stock purchase plan | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 1,462 | 2,961 | 4,229 | 5,782 |
Market-based RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 1,415 | $ 1,254 | $ 2,485 | $ 2,507 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Based Compensation from Stock Options, RSUs and ESPP (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total amount charged to loss from operations | $ 65,500 | $ 119,442 | $ 130,647 | $ 192,061 | ||
Property and equipment (capitalized internal-use software) | 1,909 | 2,313 | 4,231 | 4,522 | ||
Total stock-based compensation | 67,409 | 121,755 | 134,878 | 196,583 | ||
Stock-based compensation, CRO agreement | $ 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 | 486 | 0 | $ 856 | 0 | ||
Cost of revenue | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total amount charged to loss from operations | 2,388 | 2,298 | 4,934 | 4,299 | ||
Research and development | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total amount charged to loss from operations | 26,160 | 26,981 | 53,526 | 47,831 | ||
Sales and marketing | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total amount charged to loss from operations | 12,789 | 69,522 | 26,674 | 98,779 | ||
General and administrative | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total amount charged to loss from operations | 20,322 | 20,641 | 41,302 | 41,152 | ||
Restructuring | ||||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||||
Total amount charged to loss from operations | $ 3,355 | $ 0 | $ 3,355 | $ 0 |
Stockholder's Equity - Unamorti
Stockholder's Equity - Unamortized Stock-based Compensation Expense (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2023 USD ($) | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 569,124 |
RSUs | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 529,954 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 1 month 6 days |
Performance-based awards | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 19,987 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 2 months 12 days |
Market-based RSUs | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 9,698 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 7 months 6 days |
Stock options | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 7,958 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 2 months 12 days |
Employee stock purchase plan | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 1,526 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 6 months |
Stockholder's Equity - Restrict
Stockholder's Equity - Restricted Stock Units (RSUs) (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2023 USD ($) | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 569,124 |
RSUs | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 529,954 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 1 month 6 days |
Performance-based awards | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 19,987 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 2 months 12 days |
Market-based RSUs | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 9,698 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 7 months 6 days |
Stock options | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 7,958 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 2 months 12 days |
Employee stock purchase plan | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 1,526 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 6 months |
Stockholder's Equity - Share Re
Stockholder's Equity - Share Repurchase Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2023 | Jan. 31, 2023 | |
Equity [Abstract] | |||
Share repurchase program, authorized amount | $ 300,000 | ||
Treasury stock, acquired (in shares) | 2,722,655 | 2,882,634 | |
Treasury stock, retired (in shares) | 2,722,655 | 2,882,634 | |
Treasury stock, value (in dollars) | $ 196,700 | $ 212,700 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Other Income (Expenses), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Other Income, Nonoperating [Abstract] | ||||
Interest expense | $ (4,753) | $ (3,562) | $ (9,491) | $ (6,411) |
Lower of cost or market adjustment on card receivables sold and held for sale | 0 | 0 | 0 | (1,545) |
Interest income | 33,781 | 20,910 | 68,134 | 32,375 |
Other | (109) | (326) | (416) | (1,449) |
Total other income, net | $ 28,919 | $ 17,022 | $ 58,227 | $ 22,970 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 1,666 | $ (365) | $ 2,189 | $ (471) |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring | $ 25,091 | $ 0 | $ 25,091 | $ 0 |
Restructuring expenses, stock-based compensation expense | $ 3,400 | $ 3,400 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Liabilities (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 0 |
Charges | 21,735 |
Cash payments | (8,311) |
Ending balance | 13,424 |
Severance and termination benefits | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 20,975 |
Cash payments | (8,239) |
Ending balance | 12,736 |
Contract termination | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 343 |
Cash payments | (72) |
Ending balance | 271 |
Other | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 417 |
Cash payments | 0 |
Ending balance | $ 417 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable To Common Stockholders - Summary of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share Calculation (Details) - shares shares in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 7,798 | 7,800 |
RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 5,203 | 4,644 |
Stock options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 2,189 | 3,156 |
Performance-based awards | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 285 | 0 |
Market-based RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 115 | 0 |
Employee stock purchase plan | ||
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 | 0 |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable To Common Stockholders - Additional Information (Details) - shares shares in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 7,798 | 7,800 |
Notes | Maximum | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares subject to adjustment | 12,700 | |
Shares Underlying Conversion Option in 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 |