Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2022 | May 10, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39888 | |
Entity Registrant Name | Affirm Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-2224323 | |
Entity Address, Address Line One | 650 California Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94108 | |
City Area Code | 415 | |
Local Phone Number | 984-0490 | |
Title of 12(b) Security | Class A common stock, par value $0.00001 per share | |
Trading Symbol | AFRM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity Central Index Key | 0001820953 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 226,270,872 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 60,159,497 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Assets | ||
Cash and cash equivalents | $ 2,261,937 | $ 1,466,558 |
Restricted cash | 413,628 | 226,074 |
Securities available for sale at fair value | 617,023 | 16,170 |
Loans held for sale | 3,618 | 13,030 |
Loans held for investment | 2,502,860 | 2,022,320 |
Allowance for credit losses | (159,475) | (117,760) |
Loans held for investment, net | 2,343,385 | 1,904,560 |
Accounts receivable, net | 124,614 | 91,575 |
Property, equipment and software, net | 141,658 | 62,499 |
Goodwill | 547,393 | 516,515 |
Intangible assets | 60,890 | 67,930 |
Commercial agreement assets | 287,129 | 227,377 |
Other assets | 230,451 | 274,679 |
Total Assets | 7,031,726 | 4,866,967 |
Liabilities: | ||
Accounts payable | 48,985 | 57,758 |
Payable to third-party loan owners | 35,962 | 50,079 |
Accrued interest payable | 2,992 | 2,751 |
Accrued expenses and other liabilities | 313,307 | 323,577 |
Convertible senior notes, net | 1,705,624 | 0 |
Notes issued by securitization trusts | 1,447,568 | 1,176,673 |
Funding debt | 901,233 | 680,602 |
Total liabilities | 4,455,671 | 2,291,440 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Additional paid in capital | 3,987,881 | 3,467,236 |
Accumulated deficit | (1,419,506) | (898,485) |
Accumulated other comprehensive gain (loss) | 7,677 | 6,773 |
Total stockholders’ equity | 2,576,055 | 2,575,527 |
Total Liabilities and Stockholders’ Equity | 7,031,726 | 4,866,967 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 2 | 2 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Assets of consolidated VIEs, included in total assets above | ||
Restricted cash | $ 413,628 | $ 226,074 |
Loans held for investment | 2,502,860 | 2,022,320 |
Allowance for credit losses | (159,475) | (117,760) |
Loans held for investment, net | 2,343,385 | 1,904,560 |
Accounts receivable, net | 124,614 | 91,575 |
Other assets | 230,451 | 274,679 |
Total Assets | 7,031,726 | 4,866,967 |
Liabilities of consolidated VIEs, included in total liabilities above | ||
Accounts payable | 48,985 | 57,758 |
Accrued interest payable | 2,992 | 2,751 |
Accrued expenses and other liabilities | 313,307 | 323,577 |
Notes issued by securitization trusts | 1,447,568 | 1,176,673 |
Funding debt | 901,233 | 680,602 |
Total liabilities | 4,455,671 | 2,291,440 |
Consolidated Variable Interest Entities | ||
Assets of consolidated VIEs, included in total assets above | ||
Restricted cash | 290,661 | 142,385 |
Loans held for investment | 2,214,932 | 1,743,810 |
Allowance for credit losses | (125,115) | (94,463) |
Loans held for investment, net | 2,089,817 | 1,649,347 |
Accounts receivable, net | 8,195 | 8,209 |
Other assets | 12,398 | 3,683 |
Total Assets | 2,401,071 | 1,803,624 |
Liabilities of consolidated VIEs, included in total liabilities above | ||
Accounts payable | 2,960 | 2,927 |
Accrued interest payable | 2,941 | 2,613 |
Accrued expenses and other liabilities | 12,433 | 3,820 |
Notes issued by securitization trusts | 1,447,568 | 1,176,673 |
Funding debt | 734,430 | 607,394 |
Total liabilities | 2,200,332 | 1,793,427 |
Total net assets | $ 200,739 | $ 10,197 |
Class A common stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 3,030,000,000 | 3,030,000,000 |
Common stock, issued (in shares) | 225,617,857 | 181,131,728 |
Common stock, outstanding (in shares) | 225,617,857 | 181,131,728 |
Class B common stock | ||
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock, issued (in shares) | 60,160,468 | 88,226,376 |
Common stock, outstanding (in shares) | 60,160,468 | 88,226,376 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||||
Revenue | $ 144,223 | $ 111,808 | $ 409,507 | $ 321,481 |
Interest income | 134,599 | 94,530 | 390,256 | 222,624 |
Gain on sales of loans | 52,484 | 16,350 | 141,153 | 47,344 |
Servicing income | 23,456 | 7,977 | 44,242 | 17,235 |
Total Revenue, net | 354,762 | 230,665 | 985,158 | 608,684 |
Operating Expenses | ||||
Loss on loan purchase commitment | 46,853 | 62,054 | 163,796 | 195,690 |
Provision for credit losses | 66,294 | (1,063) | 182,581 | 40,389 |
Funding costs | 15,824 | 14,665 | 50,277 | 37,077 |
Processing and servicing | 43,371 | 21,368 | 110,421 | 51,668 |
Technology and data analytics | 110,291 | 104,806 | 283,293 | 180,208 |
Sales and marketing | 156,214 | 58,184 | 363,650 | 119,878 |
General and administrative | 142,466 | 179,999 | 419,962 | 253,188 |
Total Operating Expenses | 581,313 | 440,013 | 1,573,980 | 878,098 |
Operating Loss | (226,551) | (209,348) | (588,822) | (269,414) |
Other (expense) income, net | 172,139 | (77,773) | 68,507 | (48,088) |
Loss Before Income Taxes | (54,412) | (287,121) | (520,315) | (317,502) |
Income tax expense (benefit) | 259 | (70) | 706 | 105 |
Net Loss | (54,671) | (287,051) | (521,021) | (317,607) |
Other Comprehensive Income (Loss) | ||||
Foreign currency translation adjustments | 5,406 | 2,829 | 3,945 | 5,048 |
Unrealized gain (loss) on securities available for sale, net | (2,105) | 0 | (3,041) | 0 |
Net Other Comprehensive Income (Loss) | 3,301 | 2,829 | 904 | 5,048 |
Comprehensive Loss | $ (51,370) | $ (284,222) | $ (520,117) | $ (312,559) |
Net loss per share attributable to common stockholders for Class A and Class B | ||||
Basic (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.60) |
Diluted (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.80) |
Weighted average common shares outstanding | ||||
Basic (in shares) | 285,641,820 | 233,309,590 | 279,570,015 | 122,161,508 |
Diluted (in shares) | 285,641,820 | 233,309,590 | 279,570,015 | 123,329,359 |
Merchant network revenue | ||||
Revenue | ||||
Revenue | $ 121,054 | $ 97,999 | $ 340,385 | $ 290,894 |
Virtual card network revenue | ||||
Revenue | ||||
Revenue | $ 23,169 | $ 13,809 | $ 69,122 | $ 30,587 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Redeemable convertible preferred stock | Common StockCommon Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, Redeemable Convertible Preferred Stock (in shares) at Jun. 30, 2020 | 122,115,971 | |||||||
Beginning balance, Redeemable Convertible Preferred Stock at Jun. 30, 2020 | $ 804,170 | |||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Issuance of redeemable convertible preferred stock, net of issuance costs (in shares) | 21,824,141 | |||||||
Issuance of redeemable convertible preferred stock, net of issuance costs | $ 434,434 | |||||||
Conversion of convertible debt (in shares) | 4,444,321 | |||||||
Conversion of convertible debt | $ 88,559 | |||||||
Ending balance, Redeemable Convertible Preferred Stock (in shares) at Sep. 30, 2020 | 148,384,433 | |||||||
Ending balance, Redeemable Convertible Preferred Stock at Sep. 30, 2020 | $ 1,327,163 | |||||||
Beginning balance, Common Stock (in shares) at Jun. 30, 2020 | 47,684,427 | |||||||
Beginning balance at Jun. 30, 2020 | $ (367,096) | $ (9,980) | $ 0 | $ 80,373 | $ (447,167) | $ (9,980) | $ (302) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock option (in shares) | 388,246 | |||||||
Issuance of common stock upon exercise of stock option | 1,741 | 1,741 | ||||||
Repurchases of common stock (in shares) | (115,625) | |||||||
Repurchases of common stock | (584) | (584) | ||||||
Stock-based compensation | 7,175 | 7,175 | ||||||
Foreign currency translation adjustments | 405 | 405 | ||||||
Net Loss | (3,946) | (3,946) | ||||||
Vesting and exercise of warrants for common stock (in shares) | 5,074,398 | |||||||
Vesting and exercise of warrants for common stock | 67,645 | 67,645 | ||||||
Conversion of convertible debt | (42,124) | (42,124) | ||||||
Ending balance, Common Stock (in shares) at Sep. 30, 2020 | 53,031,446 | |||||||
Ending balance at Sep. 30, 2020 | (346,764) | $ 0 | 114,226 | (461,093) | 103 | |||
Beginning balance, Redeemable Convertible Preferred Stock (in shares) at Jun. 30, 2020 | 122,115,971 | |||||||
Beginning balance, Redeemable Convertible Preferred Stock at Jun. 30, 2020 | $ 804,170 | |||||||
Ending balance, Redeemable Convertible Preferred Stock (in shares) at Mar. 31, 2021 | 0 | |||||||
Ending balance, Redeemable Convertible Preferred Stock at Mar. 31, 2021 | $ 0 | |||||||
Beginning balance, Common Stock (in shares) at Jun. 30, 2020 | 47,684,427 | |||||||
Beginning balance at Jun. 30, 2020 | (367,096) | $ (9,980) | $ 0 | 80,373 | (447,167) | $ (9,980) | (302) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Foreign currency translation adjustments | 5,048 | |||||||
Net Loss | (317,607) | |||||||
Ending balance, Common Stock (in shares) at Mar. 31, 2021 | 264,658,118 | |||||||
Ending balance at Mar. 31, 2021 | 2,405,698 | $ 3 | 3,175,714 | (774,765) | 4,746 | |||
Beginning balance, Redeemable Convertible Preferred Stock (in shares) at Sep. 30, 2020 | 148,384,433 | |||||||
Beginning balance, Redeemable Convertible Preferred Stock at Sep. 30, 2020 | $ 1,327,163 | |||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Issuance of redeemable convertible preferred stock, net of issuance costs (in shares) | 12,546 | |||||||
Issuance of redeemable convertible preferred stock, net of issuance costs | $ 108 | |||||||
Ending balance, Redeemable Convertible Preferred Stock (in shares) at Dec. 31, 2020 | 148,396,979 | |||||||
Ending balance, Redeemable Convertible Preferred Stock at Dec. 31, 2020 | $ 1,327,271 | |||||||
Beginning balance, Common Stock (in shares) at Sep. 30, 2020 | 53,031,446 | |||||||
Beginning balance at Sep. 30, 2020 | (346,764) | $ 0 | 114,226 | (461,093) | 103 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock option (in shares) | 6,220,024 | |||||||
Issuance of common stock upon exercise of stock option | 21,676 | 21,676 | ||||||
Repurchases of common stock (in shares) | (12,100) | |||||||
Repurchases of common stock | (199) | (199) | ||||||
Stock-based compensation | 6,774 | 6,774 | ||||||
Foreign currency translation adjustments | 1,814 | 1,814 | ||||||
Net Loss | (26,610) | (26,610) | ||||||
Ending balance, Common Stock (in shares) at Dec. 31, 2020 | 59,239,370 | |||||||
Ending balance at Dec. 31, 2020 | (343,309) | $ 0 | 142,477 | (487,703) | 1,917 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Conversion of convertible debt (in shares) | (148,396,979) | |||||||
Conversion of convertible debt | $ (1,327,271) | |||||||
Ending balance, Redeemable Convertible Preferred Stock (in shares) at Mar. 31, 2021 | 0 | |||||||
Ending balance, Redeemable Convertible Preferred Stock at Mar. 31, 2021 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock option (in shares) | 4,721,033 | |||||||
Issuance of common stock upon exercise of stock option | 19,819 | 19,819 | ||||||
Issuance of common stock for acquisition (in shares) | 6,209,806 | |||||||
Issuance of common stock in acquisition | 117,023 | 117,023 | ||||||
Vesting of restricted stock units (in shares) | 2,225,411 | |||||||
Repurchases of common stock (in shares) | (1,666) | |||||||
Repurchases of common stock | (3) | (3) | ||||||
Stock-based compensation | 187,883 | 187,883 | ||||||
Tax withholding on stock-based compensation | (127,566) | (127,566) | ||||||
Foreign currency translation adjustments | 2,829 | 2,829 | ||||||
Net Loss | (287,051) | (287,051) | ||||||
Vesting and exercise of warrants for common stock (in shares) | 15,577,185 | |||||||
Vesting and exercise of warrants for common stock | 203,511 | 203,511 | ||||||
Issuance of common stock (in shares) | 28,290,000 | |||||||
Issuance of common stock | 1,305,302 | $ 1 | 1,305,301 | |||||
Conversion of redeemable convertible preferred stock (in shares) | 148,396,979 | |||||||
Conversion of redeemable convertible preferred stock | 1,327,260 | $ 2 | 1,327,269 | (11) | ||||
Ending balance, Common Stock (in shares) at Mar. 31, 2021 | 264,658,118 | |||||||
Ending balance at Mar. 31, 2021 | 2,405,698 | $ 3 | 3,175,714 | (774,765) | 4,746 | |||
Beginning balance, Common Stock (in shares) at Jun. 30, 2021 | 269,358,104 | |||||||
Beginning balance at Jun. 30, 2021 | 2,575,527 | $ 3 | 3,467,236 | (898,485) | 6,773 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock option (in shares) | 7,403,503 | |||||||
Issuance of common stock upon exercise of stock option | 37,470 | 37,470 | ||||||
Issuance of common stock for acquisition (in shares) | 183,733 | |||||||
Issuance of common stock in acquisition | 10,000 | 10,000 | ||||||
Vesting of restricted stock units (in shares) | 772,653 | |||||||
Repurchases of common stock (in shares) | (821) | |||||||
Repurchases of common stock | (4) | (4) | ||||||
Stock-based compensation | 104,879 | 104,879 | ||||||
Tax withholding on stock-based compensation | (39,817) | (39,817) | ||||||
Foreign currency translation adjustments | (3,802) | (3,802) | ||||||
Unrealized gain (loss) on securities available for sale | (279) | (279) | ||||||
Net Loss | (306,615) | (306,615) | ||||||
Ending balance, Common Stock (in shares) at Sep. 30, 2021 | 277,717,172 | |||||||
Ending balance at Sep. 30, 2021 | 2,377,359 | $ 3 | 3,579,764 | (1,205,100) | 2,692 | |||
Beginning balance, Common Stock (in shares) at Jun. 30, 2021 | 269,358,104 | |||||||
Beginning balance at Jun. 30, 2021 | $ 2,575,527 | $ 3 | 3,467,236 | (898,485) | 6,773 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock option (in shares) | 12,986,539 | |||||||
Foreign currency translation adjustments | $ 3,945 | |||||||
Net Loss | (521,021) | |||||||
Ending balance, Common Stock (in shares) at Mar. 31, 2022 | 285,778,325 | |||||||
Ending balance at Mar. 31, 2022 | 2,576,055 | $ 3 | 3,987,881 | (1,419,506) | 7,677 | |||
Beginning balance, Common Stock (in shares) at Sep. 30, 2021 | 277,717,172 | |||||||
Beginning balance at Sep. 30, 2021 | 2,377,359 | $ 3 | 3,579,764 | (1,205,100) | 2,692 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock option (in shares) | 4,689,973 | |||||||
Issuance of common stock upon exercise of stock option | 21,674 | 21,674 | ||||||
Vesting of restricted stock units (in shares) | 803,263 | |||||||
Stock-based compensation | 101,920 | 101,920 | ||||||
Tax withholding on stock-based compensation | (72,963) | (72,963) | ||||||
Foreign currency translation adjustments | 2,341 | 2,341 | ||||||
Unrealized gain (loss) on securities available for sale | (657) | (657) | ||||||
Net Loss | (159,735) | (159,735) | ||||||
Vesting of warrants for common stock | 198,383 | 198,383 | ||||||
Ending balance, Common Stock (in shares) at Dec. 31, 2021 | 283,210,408 | |||||||
Ending balance at Dec. 31, 2021 | 2,468,322 | $ 3 | 3,828,778 | (1,364,835) | 4,376 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock option (in shares) | 1,258,865 | |||||||
Issuance of common stock upon exercise of stock option | 8,171 | 8,171 | ||||||
Vesting of restricted stock units (in shares) | 1,318,524 | |||||||
Repurchases of common stock (in shares) | (9,472) | |||||||
Repurchases of common stock | (80) | (80) | ||||||
Stock-based compensation | 113,005 | 113,005 | ||||||
Tax withholding on stock-based compensation | (54,162) | (54,162) | ||||||
Foreign currency translation adjustments | 5,406 | 5,406 | ||||||
Unrealized gain (loss) on securities available for sale | (2,105) | (2,105) | ||||||
Net Loss | (54,671) | (54,671) | ||||||
Vesting of warrants for common stock | 92,169 | 92,169 | ||||||
Ending balance, Common Stock (in shares) at Mar. 31, 2022 | 285,778,325 | |||||||
Ending balance at Mar. 31, 2022 | $ 2,576,055 | $ 3 | $ 3,987,881 | $ (1,419,506) | $ 7,677 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Preferred stock issuance costs | $ 143 | $ 440 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net Loss | $ (521,021) | $ (317,607) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for credit losses | 182,581 | 40,389 |
Amortization of premiums and discounts on loans, net | (129,714) | (60,705) |
Gain on sales of loans | (141,153) | (47,344) |
Changes in fair value of assets and liabilities | (38,821) | 45,310 |
Amortization of commercial agreement assets | 72,804 | 50,097 |
Amortization of debt issuance costs | 13,215 | 3,675 |
Amortization of discount on securities available for sale | 968 | 0 |
Commercial agreement warrant expense | 157,023 | 0 |
Stock-based compensation | 280,113 | 192,363 |
Depreciation and amortization | 35,607 | 12,092 |
Other | (5,725) | 18,163 |
Purchases of loans held for sale | (3,869,327) | (1,640,672) |
Proceeds from the sale of loans held for sale | 3,868,919 | 1,599,554 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | (42,467) | (6,461) |
Other assets | 28,018 | (208,798) |
Accounts payable | (8,773) | 4,064 |
Payable to third-party loan owners | (14,117) | 11,526 |
Accrued interest payable | 240 | 2,535 |
Accrued expenses and other liabilities | 28,545 | 128,602 |
Net Cash Used in Operating Activities | (103,085) | (173,217) |
Cash Flows from Investing Activities | ||
Purchases and origination of loans held for investment | (7,529,324) | (4,313,834) |
Proceeds from the sale of loans held for investment | 1,330,341 | 348,195 |
Principal repayments and other loan servicing activity | 5,867,583 | 3,002,351 |
Acquisition, net of cash and restricted cash acquired | (5,999) | (104,776) |
Acquisition of commercial agreement assets | 0 | (25,900) |
Additions to property, equipment and software | (59,254) | (12,414) |
Purchases of securities available for sale | (770,047) | 0 |
Proceeds from maturities and repayments of securities available for sale | 191,854 | 0 |
Other investing cash inflows (outflows) | (10,775) | 0 |
Net Cash Used in Investing Activities | (985,621) | (1,106,378) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of convertible debt, net | 1,704,300 | 0 |
Proceeds from funding debt | 2,776,245 | 2,413,905 |
Payment of debt issuance costs | (8,154) | (11,266) |
Principal repayments of funding debt | (2,572,876) | (2,555,699) |
Proceeds from issuance of notes and residual trust certificates by securitization trusts | 499,494 | 1,396,229 |
Principal repayments of notes issued by securitization trusts | (233,723) | (144,503) |
Proceeds from issuance of redeemable convertible preferred stock, net | 0 | 434,542 |
Conversion of redeemable convertible preferred stock | 0 | (13) |
Proceeds from initial public offering, net | 0 | 1,305,301 |
Proceeds from exercise of common stock options and warrants and contributions to ESPP | 67,740 | 43,815 |
Repurchases of common stock | (84) | (786) |
Payments of tax withholding for stock-based compensation | (166,942) | (127,566) |
Net Cash Provided by Financing Activities | 2,066,000 | 2,753,959 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 5,639 | 4,510 |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 982,933 | 1,478,874 |
Cash, Cash equivalents and Restricted cash, Beginning of period | 1,692,632 | 328,128 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 2,675,565 | 1,807,002 |
Reconciliation to amounts on consolidated balance sheets (as of period end) | ||
Cash and cash equivalents | 2,261,937 | 1,623,672 |
Restricted cash | 413,628 | 183,330 |
Total Cash, Cash Equivalents and Restricted Cash | 2,675,565 | 1,807,002 |
Supplemental Disclosures of Cash Flow Information | ||
Cash payments for interest expense | 34,325 | 28,575 |
Cash paid for operating leases | 11,989 | 9,726 |
Cash paid for income taxes | 99 | 81 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities | ||
Stock-based compensation included in capitalized internal-use software | 39,691 | 7,792 |
Issuance of common stock in connection with acquisition | 10,000 | 117,023 |
Securities retained under unconsolidated securitization transactions | 22,067 | 0 |
Right of use assets obtained in exchange for operating lease liabilities | 3,421 | 78,421 |
Additions to property and equipment included in accrued expenses | 107 | 24 |
Issuance of warrants in exchange for commercial agreement | 0 | 270,579 |
Conversion of convertible debt | $ 0 | $ 88,559 |
Business Description
Business Description | 9 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | Business Description Affirm Holdings, Inc. (“Affirm,” the “Company,” “we,” “us,” or “our”), headquartered in San Francisco, California, provides consumers with a simpler, more transparent, and flexible alternative to traditional payment options. Our mission is to deliver honest financial products that improve lives. Through our next-generation commerce platform, partnerships with originating banks, and capital markets partners, we enable consumers to confidently pay for a purchase over time, with terms ranging from one Merchants partner with us to transform the consumer shopping experience and to acquire and convert customers more effectively through our frictionless point-of-sale payment solutions. Consumers get the flexibility to buy now and make simple regular payments for their purchases and merchants see increased average order value, repeat purchase rates, and an overall more satisfied customer base. Unlike legacy payment options and our competitors’ product offerings, which charge deferred or compounding interest and unexpected costs, we disclose up-front to consumers exactly what they will owe — no hidden fees, no deferred interest, no penalties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), disclosure requirements for interim financial information, and the requirements of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended June 30, 2021. The balance sheet as of June 30, 2021 has been derived from the audited financial statements at that date. Management believes these interim condensed consolidated financial statements reflect all adjustments, including those of a normal and recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. Our interim condensed financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all wholly owned subsidiaries and variable interest entities (“VIEs”), in which we have a controlling financial interest. These include various business trust entities and limited partnerships established to enter into warehouse credit agreements with certain lenders for funding debt facilities and certain asset-backed securitization transactions. Our variable interest arises from contractual, ownership, or other monetary interests in the entity, which changes with fluctuations in the fair value of the entity’s net assets. We consolidate a VIE when we are deemed to be the primary beneficiary. We assess whether or not we are the primary beneficiary of a VIE on an ongoing basis. Use of Estimates The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts in the interim condensed consolidated financial statements and the accompanying notes. Material estimates that are particularly susceptible to significant change relate to determination of variable consideration for revenue, the allowance for credit losses, capitalized internal-use software development costs, valuation allowance for deferred tax assets, loss on loan purchase commitment, the fair value of servicing assets and liabilities, discount on self-originated loans, the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations, the fair value of contingent consideration related to business combinations, the evaluation for impairment of intangible assets and goodwill, the incremental borrowing rate used in discounting our lease liabilities, the fair value of available for sale debt securities including retained interests in our securitization trusts, the fair value of residual certificates issued by our securitization trusts held by third parties, and stock-based compensation, including the fair value of warrants issued to nonemployees. We base our estimates on historical experience, current events, and other factors we believe to be reasonable under the circumstances. To the extent that there are material differences between these estimates and actual results, our financial condition or operating results will be materially affected. These estimates are based on information available as of the date of the interim condensed consolidated financial statements; therefore, actual results could differ materially from those estimates. Immaterial Correction of Prior Period Amounts Subsequent to the issuance of our financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021, which was filed with the SEC on September 17, 2021, we identified understatements in certain prior period amounts related to the fair value measurement of contingent consideration and stock-based compensation. We remeasure the fair value of the contingent consideration liability recorded in connection with the PayBright, Inc. (“PayBright”) acquisition at each reporting date. An incorrect input in the Monte Carlo simulation used to estimate the fair value as of June 30, 2021, resulted in an understatement of accrued expenses and other liabilities of $5.6 million as of June 30, 2021 as previously reported. We measure stock-based compensation based on the fair value of an award at the grant date and recognize expense over the vesting period of the award based on the estimated portion of the award that is expected to vest. An incorrect determination of the grant date and service inception dates for certain awards granted prior to our initial public offering (“IPO”), as well as incorrect treatment of expense recognition for certain terminated employees, resulted in an understatement of additional paid in capital of $4.5 million as of June 30, 2021 as previously reported. Accordingly, we have corrected the relevant financial statements and related footnotes as of June 30, 2021 within these interim condensed consolidated financial statements from amounts previously reported. We have evaluated the materiality of these misstatements based on an analysis of quantitative and qualitative factors and concluded they were not material to the prior period financial statements, individually or in aggregate. The following table provides the impact of the correction on our consolidated balance sheet as of June 30, 2021, as presented below (in thousands): As of June 30, 2021 As Previously Reported Adjustments As Corrected Accrued expenses and other liabilities 317,951 5,626 323,577 Total liabilities 2,285,814 5,626 2,291,440 Additional paid in capital 3,462,762 4,474 3,467,236 Accumulated deficit (888,381) (10,104) (898,485) Accumulated other comprehensive income 6,769 4 6,773 Total stockholders’ equity 2,581,153 (5,626) 2,575,527 We also determined that stock based compensation previously recorded during the three and nine months ended March 31, 2021 was understated by $25.0 million, as the estimated fair value of RSUs granted during the three months ended December 31, 2020 did not reflect an increase in share value due to the anticipated IPO. Such matter was corrected and properly reported in our consolidated financial statements as of and for the year ended June 30, 2021, and is prospectively corrected in the accompanying unaudited interim financial statements for the three and nine months ended March 31, 2021. As a result, the accompanying unaudited interim financial information for the three and nine months ended March 31, 2021 has been corrected to reflect the total combined increase in stock based compensation expense of $40.0 million from amounts previously reported. We determined, based on consideration of quantitative and qualitative factors, that the errors had an immaterial impact, individually and in aggregate, on our previously issued financial statements. The following tables show the affected line items (in thousands) for the periods ended March 31, 2021. Three Months Ended March 31, 2021 As Previously Reported Adjustments As Corrected Consolidated Statement of Operations and Comprehensive Loss Processing and servicing 21,335 33 21,368 Technology and data analytics 98,728 6,078 104,806 Sales and marketing 57,549 635 58,184 General and administrative 146,853 33,146 179,999 Total Operating Expenses 400,121 39,892 440,013 Loss Before Income Taxes (247,229) (39,892) (287,121) Net Loss Attributable to Common Stockholders (247,159) (39,892) (287,051) Net loss per share attributable to common stockholders for Class A and Class B: Basic $ (1.06) $ (0.17) $ (1.23) Diluted $ (1.06) $ (0.17) $ (1.23) Nine Months Ended March 31, 2021 As Previously Reported Adjustments As Corrected Consolidated Statement of Operations and Comprehensive Loss Processing and servicing 51,635 33 51,668 Technology and data analytics 174,130 6,078 180,208 Sales and marketing 119,243 635 119,878 General and administrative 220,042 33,146 253,188 Total Operating Expenses 838,206 39,892 878,098 Loss Before Income Taxes (277,610) (39,892) (317,502) Net Loss Attributable to Common Stockholders (277,715) (39,892) (317,607) Net loss per share attributable to common stockholders for Class A and Class B: Basic $ (2.27) $ (0.33) $ (2.60) Diluted $ (2.48) $ (0.32) $ (2.80) Three Months Ended March 31, 2021 As Previously Reported Adjustments As Corrected Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) Stock-based compensation - Additional Paid-In Capital 146,314 41,569 187,883 Net Loss - Accumulated Deficit (247,159) (39,892) (287,051) Balance as of March 31, 2021 - Total Stockholders' Equity 2,404,021 1,677 2,405,698 Nine Months Ended March 31, 2021 As Previously Reported Adjustments As Corrected Consolidated Statement of Cash Flows Cash Flows from Operating Activities Net Loss (277,715) (39,892) (317,607) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 152,471 39,892 192,363 Net Cash Used in Operating Activities (173,217) — (173,217) Significant Accounting Policies Except for the addition of policies described below for securities available for sale, there were no material changes to our significant accounting policies as disclosed in Note 2. Summary of Significant Accounting Policies of our Annual Report on Form 10-K for the fiscal year ended June 30, 2021, which was filed with the SEC on September 17, 2021. Securities Available for Sale We hold certain investments in marketable debt securities and retained interests in our unconsolidated securitization trusts which are accounted for under ASC Topic 320, “Investments - Debt Securities” (“ASC 320”). We have classified these investments as available for sale, as defined within ASC 320. These investments are held at fair value with changes in fair value recorded in unrealized gain (loss) on securities available for sale, net within other comprehensive income (loss). As of the end of each reporting period, management reviews each security where the fair value is less than the amortized cost to determine whether any portion of the decline in fair value is due to a credit loss and/or whether or not we intend to sell or will be required to sell such security before recovery of its amortized cost basis. The portion of any decline in fair value which management identifies as a credit loss will be recognized as an allowance for credit losses through other (expense) income, net rather than unrealized gain (loss) on securities available for sale, net. To the extent management intends to sell or may be required to sell a security in an unrealized loss position, we 1) reverse any previously recorded allowance for credit losses with an offsetting entry to reduce the amortized cost basis of the security and 2) write-off any remaining portion of the amortized cost basis to equal its fair value, with this change recorded through other (expense) income, net. Interest income for available for sale securities is recorded within other (expense) income, net. Available for sale securities initially purchased with less than 90 days until maturity with quoted transaction prices in an active market are classified as cash and cash equivalents. With respect to retained interests in our securitization trusts, we apply the guidance in ASC Topic 325, “Investments - Other” (“ASC 325”) relating to beneficial interests. Accordingly, we recognize interest income each period based on the effective interest rate calculated using expected cash flows. Changes in the timing of expected cash flows are accounted for prospectively through an adjustment to interest income. When fair value is below amortized cost, we record an allowance for credit losses measured based on the difference between amortized cost and projected cash flows discounted at the effective interest rate. The allowance for credit losses is capped at the difference between amortized cost and fair value. Refer to Note 12. Investments for additional information. Sales and Marketing Costs Sales and marketing costs include the expense related to warrants and other share-based payments granted to our enterprise partners. See Note 6. Balance Sheet Components for more information on these arrangements. Sales and marketing costs also include salaries and personnel-related costs, as well as costs of general marketing and promotional activities, promotional event programs, sponsorships, and allocated overhead. A portion of these costs related to general marketing and promotional activities are considered advertising costs within the meaning of ASC Topic 720, “Other Expenses” (“ASC 720”), and are expensed as incurred. Advertising costs totaled $12.2 million and $55.6 million for the three and nine months ended March 31, 2022, respectively, and $9.1 million and $24.4 million for the three and nine months ended March 31, 2021, respectively. Recently Adopted Accounting Standards Convertible Debt Instruments In August 2020, the FASB issued Accounting Standard Update (“ASU”) 2020-06, “Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40),” which simplifies the accounting for convertible instruments. The guidance removes certain accounting models that separate the embedded conversion features from the host contract for convertible instruments. Either a modified retrospective method of transition or a fully retrospective method of transition is permissible for the adoption of this standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted no earlier than the fiscal year beginning after December 15, 2020. We early adopted the new standard effective July 1, 2021 on a modified retrospective basis. The adoption of the new standard did not have any impact on our financial statements as of the adoption date. As further discussed in Note 10. Debt , the Company issued certain convertible senior notes in November 2021, and the accounting for these instruments was based on the guidance in ASU 2020-06. Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” Subject to meeting certain criteria, the new guidance provides optional expedients and exceptions to applying contract modification accounting under existing U.S. GAAP, to address the expected phase out of the London Interbank Offered Rate (“LIBOR”). This ASU is effective for all entities upon issuance as of March 12, 2020 through December 31, 2022. In January 2021, the FASB also issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which provides additional optional expedients and exceptions applicable to all entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This ASU is effective for all entities upon issuance as of January 7, 2021 through December 31, 2022. We have reviewed all our financial agreements that utilize LIBOR as the reference rate and determined there is no material impact to our interim condensed consolidated financial statements as of March 31, 2022. Throughout the remaining effective period for ASU 2020-04 and ASU 2021-01, we will continue to evaluate the available relief measures within each of these amendments and will determine any impact on our consolidated financial statements and disclosures, as applicable. Business Combinations In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities, such as deferred revenue, acquired in a business combination to be recognized and measured in accordance with Topic 606 (Revenue from Contracts with Customers). ASU 2021-08 is expected to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The ASU is effective for fiscal years beginning after December 15, 2022 and should be applied prospectively to acquisitions occurring on or after the effective date. Early adoption is permitted, including for interim periods, and is applicable to all business combinations for which the acquisition date occurs within the beginning of the fiscal year of adoption. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures. Financial Instruments - Credit Losses In March 2022, the FASB issued ASU 2022-02, “Financial Instruments— Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosure” which addresses areas identified by the FASB as part of its post-implementation review of the current expected credit losses model or “CECL” previously issued in ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326)”. The amendments in this ASU eliminate the accounting guidance for troubled debt restructurings by creditors while enhancing the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases in the vintage disclosures. For entities that have adopted ASU 2016-13, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted if an entity has adopted ASU 2016-13. Amendments in this ASU should be applied prospectively except for the transition method related to the accounting for troubled debt restructurings in which an entity has the option to apply a modified retrospective transition method resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures. |
Interest Income
Interest Income | 9 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Interest Income | Interest Income Interest income consisted of the following components (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Interest income on unpaid principal balance $ 95,253 $ 65,921 $ 266,868 162,666 Amortization of discount on loans 45,443 31,625 138,853 68,843 Amortization of premiums on loans (3,407) (2,373) (9,139) (6,449) Interest receivable charged-off, net of recoveries (2,690) (643) (6,326) (2,436) Total interest income $ 134,599 $ 94,530 $ 390,256 $ 222,624 |
Loans Held for Investment and A
Loans Held for Investment and Allowance for Credit Losses | 9 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans Held for Investment and Allowance for Credit Losses | Loans Held for Investment and Allowance for Credit Losses Loans held for investment consisted of the following (in thousands): March 31, 2022 June 30, 2021 Unpaid principal balance $ 2,528,197 $ 2,058,863 Accrued interest receivable 20,390 15,466 Premiums on loans held for investment 8,580 7,071 Less: Discount due to loss on loan purchase commitment (1) (29,196) (53,177) Less: Discount due to loss on self-originated loans (1) (20,305) — Less: Fair value adjustment on loans acquired through business combination (4,806) (5,903) Total loans held for investment $ 2,502,860 $ 2,022,320 (1) As of June 30, 2021, discount due to loss on self-originated loans, in the amount of $6.2 million, was included with discount due to loss on loan purchase commitment. The majority of the loans that are underwritten using our technology platform and originated by our originating bank partners are later purchased by us. We purchased loans from our originating bank partners in the amount of $3,013.8 million and $8,631.2 million for the three and nine months ended March 31, 2022, respectively, and $2,031.2 million and $5,620.8 million for the three and nine months ended March 31, 2021, respectively. These loans have a variety of lending terms as well as maturities ranging from one We closely monitor credit quality for our loan receivables to manage and evaluate our related exposure to credit risk. Credit risk management begins with initial underwriting, where loan applications are assessed against the credit underwriting policy and procedures for our self-originated loans and originating bank partner loans, and continues through to full repayment of a loan. To assess a consumer who requests a loan, we use, among other indicators, internally developed risk models using detailed information from external sources, such as credit bureaus where available, and internal historical experience, including the consumer’s prior repayment history on our platform as well as other measures. We combine these factors to establish a proprietary score as a credit quality indicator. Our proprietary score (“ITACs”) is assigned to most loans facilitated through our technology platform, ranging from zero to 100, with 100 representing the highest credit quality and therefore the lowest likelihood of loss. The ITACs model analyzes the characteristics of a consumer's attributes that are shown to be predictive of both willingness and ability to repay including, but not limited to: basic features of a consumer's credit profile, a consumer's prior repayment performance with other creditors, current credit utilization, and legal and policy changes. When a consumer passes both fraud and credit policy checks, the application is assigned an ITACs score. ITACs is also used for portfolio performance monitoring. Our credit risk team closely tracks the distribution of ITACs at the portfolio level, as well as ITACs at the individual loan level to monitor for signs of a changing credit profile within the portfolio. Repayment performance within each ITACs band is also monitored to support both the integrity of the risk scoring models and to measure possible changes in consumer behavior amongst various credit tiers. The following table presents an analysis of the credit quality, by ITACs score, of the amortized cost basis by fiscal year of origination on loans held for investment and loans held for sale (in thousands) as of March 31, 2022: Amortized Costs Basis by Fiscal Year of Origination 2022 2021 2020 2019 2018 Prior Total 96+ $ 1,162,905 $ 201,085 $ 44,799 $ 598 $ 1 $ — $ 1,409,388 94 – 96 549,083 33,978 1,192 35 2 — 584,290 90 – 94 219,475 12,631 77 4 — — 232,187 <90 59,324 426 3 — — — 59,753 No score (1) 165,593 29,002 5,115 626 127 7 200,470 Total loan receivables $ 2,156,380 $ 277,122 $ 51,186 $ 1,263 $ 130 $ 7 $ 2,486,088 (1) This balance represents loan receivables in new markets without sufficient data currently available for use by the Affirm scoring methodology including loan receivables originated in Canada and Australia. Net Charge-offs by Fiscal Year of Origination 2022 2021 2020 2019 2018 Prior Total Current period charge-offs (50,207) (16,790) (250) (32) (1) — (67,280) Current period recoveries 2,080 2,479 777 669 250 190 6,445 Current period net charge-offs $ (48,127) $ (14,311) $ 527 $ 637 $ 249 $ 190 $ (60,835) Loan receivables are defined as past due if either the principal or interest have not been received within four March 31, 2022 June 30, 2021 Non-delinquent loans $ 2,330,666 $ 1,939,976 4 – 29 calendar days past due 63,010 43,838 30 – 59 calendar days past due 33,471 17,267 60 – 89 calendar days past due 30,231 12,044 90 – 119 calendar days past due 28,710 6,759 Total amortized cost basis $ 2,486,088 $ 2,019,884 We maintain an allowance for credit losses at a level sufficient to absorb expected credit losses based on evaluating known and inherent risks in our loan portfolio. The allowance for credit losses is determined based on our current estimate of expected credit losses over the remaining contractual term, historical credit losses, consumer payment trends, estimates of recoveries, and future expectations as of each balance sheet date. Adjustments to the allowance each period for changes in our estimate of lifetime expected credit losses are recognized in earnings through the provision for credit losses presented on our interim condensed consolidated statements of operations and comprehensive loss. When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged against the allowance for credit losses. Loans are charged-off in accordance with our charge-off policy, as the contractual principal becomes 120 days past due. Subsequent recoveries of the unpaid principal balance, if any, are credited to the allowance for credit losses. The following table details activity in the allowance for credit losses (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Balance at beginning of period $ 158,289 $ 124,992 117,760 95,137 Adjustment due to adoption of new accounting standard — — — 10,083 Provision for credit losses 62,021 (993) 172,720 39,190 Charge-offs (67,280) (14,537) (145,307) (40,377) Recoveries of charged-off receivables 6,445 4,292 14,302 9,721 Balance at end of period $ 159,475 $ 113,754 159,475 113,754 |
Business Combination
Business Combination | 9 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combinations ShopBrain On July 1, 2021, Affirm completed the acquisition of technology and intellectual property from Yroo, Inc. and entered into employment arrangements with certain of its employees (“the ShopBrain acquisition”). Yroo, Inc. is a data aggregation and cataloging technology company based in Canada (“ShopBrain”). The purchase price was comprised of (i) $30.0 million in cash and (ii) 151,745 shares of our Class A common stock issued to the shareholders of ShopBrain at closing. The acquisition date fair value of the consideration transferred was approximately $40.0 million, which consisted of the following (in thousands): Cash $ 30,000 Fair value of Class A common stock transferred 10,000 Total acquisition date fair value of the consideration transferred $ 40,000 The acquisition was accounted for as a business combination and reflects the application of acquisition accounting in accordance with ASC Topic 805, “Business Combinations” (“ASC 805”) . The acquired identifiable intangible assets have been recorded at their estimated fair values with the excess purchase price assigned to goodwill. The goodwill was primarily attributed to future synergies from integration and the value of the assembled workforce. The goodwill is expected to be deductible for income tax purposes. The following table summarizes the allocation of the consideration paid of approximately $40.0 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Intangible assets $ 9,488 Total net assets acquired 9,488 Goodwill 30,512 Total purchase price $ 40,000 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Developed technology $ 9,488 3.0 The fair values of the intangible assets were determined by applying the replacement cost method. The fair value measurements are based on significant unobservable inputs, including management estimates and assumptions, and thus represents Level 3 measurements. The transaction costs associated with the acquisition were approximately $0.2 million for the nine months ended March 31, 2022, which are included in general and administrative expense within the interim condensed consolidated statements of operations and comprehensive loss. There were no transaction costs associated with the acquisition for the three months ended March 31, 2022. Pro forma adjustments would only include the additional amortization that would have been charged assuming the intangible assets had been recorded as of July 1, 2020. Such adjustments would not be material to the consolidated statements of operations and comprehensive loss for the three and nine months ended March 31, 2021. Kite On June 1, 2021, Affirm completed the acquisition of technology and intellectual property from Manhattan Engineering, Inc. and entered into employment arrangements with certain of its employees (“the Kite acquisition”). The purchase price was comprised of $26.0 million in cash, including $9.0 million held in escrow and subject to forfeiture if certain employees terminate within a stipulated time period. The acquisition date fair value of the consideration transferred was approximately $24.8 million which consisted of the following (in thousands): Cash $ 26,000 Less: Fair value of contingent consideration asset $ (1,241) Total acquisition date fair value of consideration transferred $ 24,759 The acquisition was accounted for as a business combination and reflects the application of acquisition accounting in accordance with ASC 805. The acquired identifiable intangible assets have been recorded at their estimated fair values with the excess purchase price assigned to goodwill. The goodwill was primarily attributed to the value of assembled workforce. The goodwill is expected to be deductible for income tax purposes. The following table summarizes the allocation of the consideration paid of approximately $24.8 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Intangible assets $ 6,975 Net assets acquired 6,975 Goodwill $ 17,784 Total purchase price $ 24,759 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Developed technology $ 6,900 3.0 Trademarks 75 1.0 Total intangible assets $ 6,975 The fair values of the intangible assets were determined by applying the replacement cost method. The fair value measurements are based on significant unobservable inputs, including management estimates and assumptions, and thus represent Level 3 measurements. During the year ended June 30, 2021, we incurred transaction costs associated with the acquisition in the amount of approximately $0.2 million which are included in general and administrative expense in the consolidated statements of operations and comprehensive loss. Pro forma adjustments would only include the additional amortization that would have been charged assuming the intangible assets had been recorded as of July 1, 2019. Such adjustments would not be material to the consolidated statements of operations and comprehensive loss for the three and nine months ended March 31, 2021. Returnly On May 1, 2021, Affirm completed a merger transaction with Returnly Technologies, Inc. (“Returnly”), a leading provider of online return experiences for direct-to-consumer brands. Prior to the merger transaction, Affirm owned approximately 1% of the outstanding shares of Returnly. By effect of the merger transaction, Affirm acquired all of the remaining outstanding shares, increasing its equity interest from approximately 1% to 100%. We have included the financial results of Returnly in our interim condensed consolidated financial statements from the date of acquisition. The purchase price for the remaining interest was comprised of (i) approximately $71.5 million in cash and (ii) 2,989,697 shares of our common stock issued to the shareholders of Returnly at closing. We also issued 304,364 shares of our common stock, which are held in escrow and subject to forfeiture upon the termination of certain employees or if certain revenue milestones are not met. Because the future payment of the escrowed shares is contingent on continued employment, the arrangement represents stock-based compensation in the post combination period. Refer to Note 15. Equity Incentive Plans for additional information on the escrowed share arrangement. The acquisition date fair value of the consideration transferred for Returnly was approximately $286.0 million, which consisted of the following (in thousands): Cash $ 71,484 Fair value of common stock transferred 214,475 Total acquisition date fair value of consideration transferred $ 285,959 The acquisition date fair value of the equity interest in Returnly held by Affirm immediately before the acquisition date was $2.1 million, resulting in the recognition of a $1.6 million gain included in other (expense) income, net in the interim condensed consolidated statements of operations and comprehensive loss. The acquisition of Returnly was accounted for as a business combination and reflects the application of acquisition accounting in accordance with ASC 805. The acquired Returnly assets, including identifiable intangible assets and liabilities assumed, have been recorded at their estimated fair values with the excess purchase price assigned to goodwill. The goodwill was primarily attributed to future synergies from integration, new customer acquisitions, and the value of assembled workforce. Goodwill is not expected to be deductible for income tax purposes. The following table summarizes the allocation of the fair value of the consideration paid and the previously held equity interest of approximately $288.1 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash and cash equivalents $ 3,788 Accounts receivable, net 9,585 Property, equipment and software 127 Intangible assets 45,900 Other assets 1,830 Total assets acquired $ 61,230 Accounts payable 594 Accrued expenses and other liabilities 6,205 Total liabilities assumed $ 6,799 Net assets acquired $ 54,431 Goodwill 233,623 Total fair value of consideration transferred and previously held investment $ 288,054 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Developed technology $ 16,200 3.0 Merchant relationships 29,200 5.0 Trade name 500 1.0 Total intangible assets $ 45,900 The fair value of the merchant relationship intangible asset was estimated by applying the income approach, which is based upon the discounted projected future cash flows attributable to the existing merchant relationships. The fair value of the developed technology intangible asset was determined by applying the replacement cost method. The fair value measurements are based on significant unobservable inputs, including management estimates and assumptions, and thus represent Level 3 measurements. During the year ended June 30, 2021, we incurred transaction costs associated with the acquisition costs in the amount of approximately $1.8 million which are included in general and administrative expense in the consolidated statements of operations and comprehensive loss. Unaudited Pro Forma Information The following table reflects the pro forma consolidated total revenue and net loss for the periods presented as if the acquisition of Returnly had occurred on July 1, 2019 and combines the historical results of Affirm and Returnly. This supplemental unaudited pro forma information is based upon accounting estimates and judgments that we believe are reasonable and includes certain adjustments to conform accounting standards to U.S. GAAP. This supplemental unaudited pro forma financial information has been prepared for illustrative purposes only and is not necessarily indicative of what actual results would have occurred, or of results that may occur in the future. Three Months Ended Nine Months Ended 2021 2021 Revenue $ 234,271 $ 618,356 Net loss $ (291,597) $ (329,540) PayBright On January 1, 2021, Affirm Canada Holdings Ltd. (“Affirm Canada”), a subsidiary of Affirm, and Affirm acquired all outstanding stock of PayBright, Inc., one of Canada’s leading buy now, pay later providers, for approximately $288.8 million. We have included the financial results of PayBright in our interim condensed consolidated financial statements from the date of acquisition. The purchase price was comprised of (i) approximately $114.5 million in cash, (ii) 3,622,445 shares of our common stock issued to the shareholders of PayBright at closing and (iii) 2,587,362 shares of our common stock held in escrow and subject to forfeiture if certain revenue milestones are not met. On January 12, 2021, these shares were reclassified into an aggregate of 1,811,222 shares of our Class A common stock and 1,811,222 shares of our Class B common stock issued to the shareholders of PayBright at closing and an aggregate of 1,293,681 shares of our Class A common stock and 1,293,681 shares of our Class B common stock held in escrow. The acquisition date fair value of the consideration transferred for PayBright was approximately $288.8 million, which consisted of the following (in thousands): Cash $ 114,490 Fair value of common stock transferred 116,989 Fair value of contingent consideration 57,275 Total purchase price $ 288,754 For further details on our fair value methodology with respect to the contingent consideration, see Note 13. Fair Value of Financial Assets and Liabilities. The acquisition of PayBright was accounted for as a business combination and reflects the application of acquisition accounting in accordance with ASC 805. The acquired PayBright assets, including identifiable intangible assets and liabilities assumed, have been recorded at their estimated fair values with the excess purchase price assigned to goodwill. The goodwill was primarily attributed to future synergies from integration, new customer acquisitions, and the value of assembled workforce in Canada. Goodwill is not expected to be deductible for income tax purposes. The following table summarizes the allocation of the consideration paid of approximately $288.8 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash and cash equivalents $ 8,219 Restricted cash 1,469 Loans held for investment 89,570 Accounts receivable, net 1,537 Property, equipment and software, net 586 Intangible assets 16,653 Other assets 5,651 Total assets acquired $ 123,685 Accounts payable 6,579 Accrued interest payable 23 Accrued expenses and other liabilities 193 Funding debt 85,310 Total liabilities assumed $ 92,105 Net assets acquired $ 31,580 Goodwill 257,174 Total purchase price $ 288,754 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands) Fair Value Useful Life Developed technology $ 6,127 3.0 Merchant relationships 9,505 4.0 Trade name 1,021 5.0 Total intangible assets $ 16,653 During the year ended June 30, 2021, we incurred transaction costs associated with the acquisition costs in the amount of approximately $2.4 million, which are included in general and administrative expense in the consolidated statements of operations and comprehensive loss. Unaudited Pro Forma Information The following table reflects the pro forma consolidated total revenue and net loss for the periods presented as if the acquisition of PayBright had occurred on July 1, 2019 and combines the historical results of Affirm and PayBright. This supplemental unaudited pro forma information is based upon accounting estimates and judgments that we believe are reasonable and includes certain adjustments to conform accounting standards to U.S. GAAP. This supplemental unaudited pro forma financial information has been prepared for illustrative purposes only and is not necessarily indicative of what actual results would have occurred, or of results that may occur in the future. Nine Months Ended 2021 Revenue $ 617,340 Net loss $ (347,511) |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts Receivable, net Our accounts receivable consist primarily of amounts due from payment processors, merchant partners, and servicing fees due from third-party loan owners. We evaluate accounts receivable estimated to be uncollectible and provide an allowance, as necessary, for doubtful accounts. This allowance was $12.0 million and $4.1 million as of March 31, 2022 and June 30, 2021, respectively. Goodwill and Intangible Assets The changes in the carrying amount of goodwill during the nine months ended March 31, 2022 were as follows (in thousands): Balance as of June 30, 2021 $ 516,515 Additions 33,410 Effect of foreign currency translation (2,532) Balance as of March 31, 2022 $ 547,393 Refer to Note 5. Business Combinations for a description of additions to goodwill during the nine months ended March 31, 2022. No impairment losses related to goodwill were recorded during the nine months ended March 31, 2022 and 2021. Intangible assets consisted of the following (in thousands): March 31, 2022 Gross Accumulated Amortization Net Weighted Average Remaining Useful Life Merchant relationships $ 38,657 $ (8,335) $ 30,322 3.8 Developed technology 39,967 (12,715) 27,252 2.2 Trademarks and domains, definite 1,538 (718) 820 2.8 Trademarks and domains, indefinite 2,146 — 2,146 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 82,658 $ (21,768) $ 60,890 June 30, 2021 Gross Accumulated Amortization Net Weighted Average Merchant relationships $ 38,951 $ (2,192) $ 36,759 4.5 Developed technology 30,176 (2,930) 27,246 2.8 Trademarks and domains (1) 3,769 (194) 3,575 3.3 Other intangibles 350 — 350 Indefinite Total intangible assets $ 73,246 $ (5,316) $ 67,930 (1) As of June 30, 2021, trademarks and domains included both definite and indefinite intangible assets. Amortization expense for intangible assets was $5.5 million and $16.4 million for the three and nine months ended March 31, 2022, respectively, and $1.2 million for both the three and nine months ended March 31, 2021. No impairment losses related to intangible assets were recorded during the three and nine months ended March 31, 2022 and 2021. The expected future amortization expense of these intangible assets as of March 31, 2022 is as follows (in thousands): 2022 (remaining three months) $ 5,406 2023 21,416 2024 19,287 2025 7,274 2026 and thereafter 5,011 Total amortization expense $ 58,394 Commercial Agreement Assets In July 2020, we recognized an asset in connection with a commercial agreement with Shopify Inc. (“Shopify”), in which we granted warrants in exchange for the opportunity to acquire new merchant partners. This asset represents the probable future economic benefit to be realized over the four-year expected benefit period and is valued based on the fair value of the warrants on the grant date. We recognized an asset of $270.6 million associated with the fair value of the warrants, which were fully vested as of March 31, 2022. During the three and nine months ended March 31, 2022, we recorded amortization expense related to the commercial agreement asset of $16.7 million and $50.7 million, respectively, and $16.7 million and $48.0 million for the three and nine months ended March 31, 2021, respectively, in our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. In January 2021, we recognized an asset in connection with a commercial agreement with an enterprise partner, in which we granted stock appreciation rights in exchange for the benefit of acquiring access to the partner's consumers. This asset represents the probable future economic benefit to be realized over the three-year expected benefit period and is valued based on the fair value of the stock appreciation rights on the grant date. We initially recognized an asset of $25.9 million associated with the fair value of the stock appreciation rights. During the three and nine months ended March 31, 2022, we recorded amortization expense related to the asset of $2.0 million and $6.0 million respectively, and $2.1 million for the three and nine months ended March 31, 2021, respectively, in our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. In November 2021, we entered into a commercial agreement with Amazon.com Services LLC and Amazon Payments, Inc. ("Amazon") and granted warrants in exchange for certain exclusivity and performance provisions and the benefit of acquiring new users. In connection with the agreements, we recognized an asset of $133.5 million associated with the portion of the warrants that were fully vested upon execution of the agreement. The asset was valued based on the fair value of the warrants on the grant date and represents the probable future economic benefit to be realized over the approximately 3.2 year remaining initial term of the commercial agreement. For the three and nine months ended March 31, 2022, we recognized amortization expense of $10.2 million and $16.0 million respectively, in our interim condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. Refer to Note 14. Redeemable Convertible Preferred Stock and Stockholders’ Equity for further discussion of the warrants. Other Assets Other assets consisted of the following (in thousands): March 31, 2022 June 30, 2021 Operating lease right-of-use assets $ 52,391 $ 57,828 Derivative instruments 43,437 2,880 Prepaid payroll taxes for stock-based compensation 35,172 111,278 Equity securities, at cost 33,172 11,278 Prepaid expenses 23,271 21,069 Processing reserves 21,240 14,042 Other receivables 15,055 26,423 Other assets 6,713 29,881 Total other assets $ 230,451 $ 274,679 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands) March 31, 2022 June 30, 2021 Contingent consideration liability $ 119,008 $ 153,447 Operating lease liability 67,905 74,952 Collateral held for derivative instruments 44,859 2,780 Accrued expenses 44,493 47,674 Commercial agreement liability — 25,357 Other liabilities 37,042 19,367 Total accrued expenses and other liabilities $ 313,307 $ 323,577 Our acquisition of PayBright included consideration transferred and shares held in escrow, contingent upon the achievement of future milestones. We classified the contingent consideration as a liability and will remeasure the liability to its fair value at each reporting date until the contingency is resolved. As of March 31, 2022, the fair value of the contingent consideration liability was $119.0 million. For further details on our fair value methodology with respect to the contingent consideration, see Note 13. Fair Value of Financial Assets and Liabilities. |
Leases
Leases | 9 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We lease facilities under operating leases with various expiration dates through 2030. We have the option to renew or extend our leases. Certain lease agreements include the option to terminate the lease with prior written notice ranging from 180 days to one year. As of March 31, 2022, we have not considered such provisions in the determination of the lease term, as it is not reasonably certain these options will be exercised. Leases have remaining terms that range from less than one year to nine years. We have elected the practical expedient allowing the combination of lease and non-lease components by class of underlying asset. We have also elected the short-term lease exception and will not recognize right-of-use assets or lease liabilities for qualifying leases with a term of less than 12 months from lease commencement. Several leases require us to obtain standby letters of credit, naming the lessor as a beneficiary. These letters of credit act as security for the faithful performance by us of all terms, covenants and conditions of the lease agreement. The cash collateral and deposits for the letters of credit have been recognized as restricted cash in the interim condensed consolidated balance sheets and totaled $9.6 million and $9.9 million as of March 31, 2022 and June 30, 2021, respectively. The discount rate used in determining the lease liability for each individual lease was derived from a corporate yield curve which corresponded with the remaining lease term as of July 1, 2020 for leases that existed at the adoption of Leases (ASC Topic 842) (“ASC 842”) and as of the lease commencement date for leases subsequently entered into or modified after July 1, 2020. The impairment expense related to leases during the three and nine months ended March 31, 2022 was not material to our interim condensed consolidated statements of operations. For the three and nine months ended March 31, 2021, we recognized impairment expense of $11.1 million for several of our operating lease right-of-use assets, included in general and administrative expense on our interim condensed consolidated statements of operations and comprehensive loss. Total lease expense incurred for all locations totaled $3.9 million and $11.4 million for the three and nine months ended March 31, 2022, respectively, and $4.1 million and $12.0 million for the three and nine months ended March 31, 2021, respectively. Total lease expense incurred for short term leases with a term 12 months or less totaled $0.1 million and $0.3 million for the three and nine months ended March 31, 2022, respectively, and $0.2 million and $1.1 million for the three and nine months ended March 31, 2021, respectively. We have subleased a portion of our leased facilities. Sublease income totaled $0.9 million and $2.3 million during the three and nine months ended March 31, 2022, respectively. There was no sublease income during the three and nine months ended March 31, 2021. Lease term and discount rate information are summarized as follows: March 31, 2022 Weighted average remaining lease term (in years) 5.2 Weighted average discount rate 4.6% Maturities of lease liabilities as of March 31, 2022 are as follows (in thousands) for the years ended: 2022 (remaining three months) $ 4,075 2023 15,832 2024 15,812 2025 16,119 2026 and thereafter 25,638 Total lease payments 77,476 Less imputed interest (9,571) Present value of lease liabilities $ 67,905 |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Repurchase Obligation Under the normal terms of our whole loans sales to third-party investors, we may become obligated to repurchase loans from investors in certain instances where a breach in representation and warranties is identified. Generally, a breach in representation and warranties would occur where a loan has been identified as subject to verified or suspected fraud, or in cases where a loan was serviced or originated in violation of Affirm’s guidelines. We would only experience a loss if the contractual repurchase price of the loan exceeds the fair value on the repurchase date. The aggregate outstanding balance of loans held by third-party investors or unconsolidated VIEs was $4,036.4 million and $2,453.9 million as of March 31, 2022 and June 30, 2021, respectively, of which we have recorded a repurchase liability of $2.3 million and $2.1 million as of March 31, 2022 and June 30, 2021, respectively, within accrued expenses and other liabilities in our interim condensed consolidated balance sheets. Legal Proceedings From time to time, we are subject to legal proceedings and claims in the ordinary course of business. The results of such matters often cannot be predicted with certainty. In accordance with applicable accounting guidance, we establish an accrued liability for legal proceedings and claims when those matters present loss contingencies which are both probable and reasonably estimable. Toole v. Affirm Holdings, Inc. On February 28, 2022, plaintiff Jeffrey Toole filed a putative class action against Affirm and Max Levchin in the U.S. District Court for the Northern District of California (the “Toole action”). The Toole complaint alleges that Affirm violated Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder by issuing and then subsequently deleting a tweet from its official Twitter account on February 10, 2022, which omitted full details of Affirm’s second quarter fiscal 2022 financial results. Toole seeks class certification, unspecified compensatory and punitive damages, and costs and expenses. Vallieres v Levchin, et al. On April 25, 2022, plaintiff Michael Vallieres filed a derivative lawsuit in the U.S. District Court for the Northern District of California against Affirm, as a nominal defendant, and certain of Affirm’s current officers and directors as defendants based on allegations substantially similar to those in the Toole action. The Vallieres complaint purports to assert claims on Affirm's behalf for breach of fiduciary duty, gross mismanagement, abuse of control, unjust enrichment, and contribution under the federal securities laws, and seeks corporate reforms, unspecified damages and restitution, and fees and costs. Concentrations of Credit Risk We have substantial credit risk primarily in our consumer loans held for investment and in our cash and cash equivalents. We maintain our cash and cash equivalents in accounts at regulated domestic financial institutions in amounts that may exceed FDIC insured amounts. We believe we are not exposed to any significant credit risk in these accounts. We are exposed to default risk on both loan receivables purchased from our originating bank partners and loan receivables that are self-originated. The ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in economic and market conditions. Loans receivables are diversified geographically. As of March 31, 2022 and June 30, 2021, approximately 12% and 15%, respectively, of loan receivables related to customers residing in the state of California. No other states or provinces exceeded 10%. Concentrations of Revenue |
Transactions with Related Parti
Transactions with Related Parties | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related PartiesIn the ordinary course of business, we may enter into transactions with directors, principal officers, their immediate families and affiliated companies in which they are principal stockholders (commonly referred to as related parties). Some of our directors, principal officers, and their immediate families have received loans facilitated by us, in accordance with our regular consumer loan offerings. As of March 31, 2022, the outstanding balance and interest earned on such accounts is immaterial. |
Debt
Debt | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt encompasses funding debt, convertible senior notes and our revolving credit facility. Funding Debt Funding debt and its aggregate future maturities consists of the following (in thousands): March 31, 2022 June 30, 2021 2022 $ 208,468 $ 104,159 2023 — 460,289 2024 393,480 22,705 2025 — — 2026 and thereafter 308,858 102,203 Total $ 910,806 $ 689,356 Deferred debt issuance costs (9,573) (8,754) Total funding debt, net of deferred debt issuance costs $ 901,233 $ 680,602 Warehouse Credit Facilities Through trusts, we entered into warehouse credit facilities with certain lenders to finance the purchase and origination of our loans. Each trust entered into a credit agreement and security agreement with a third-party as administrative agent and a national banking association as collateral trustee and paying agent. Borrowings under these agreements are referred to as funding debt and these proceeds from the borrowings can only be used for the purposes of facilitating loan funding and origination, with advance rates ranging from 79% to 88% of the total collateralized balance. These trusts are bankruptcy-remote special-purpose vehicles in which creditors do not have recourse against the general credit of Affirm. These revolving facilities mature between fiscal years 2024 and 2029, and subject to covenant compliance, generally permit borrowings up to 12 months prior to the final maturity date of each respective facility. As of March 31, 2022, the aggregate commitment amount of these facilities was $1,975.0 million on a revolving basis, of which $702.0 million was drawn, with $1,272.7 million remaining available. Some of the loans originated by us or purchased from the originating bank partners are pledged as collateral for borrowings in our facilities. The unpaid principal balance of these loans totaled $803.7 million and $664.1 million as of March 31, 2022 and June 30, 2021, respectively. Borrowings under these warehouse credit facilities bear interest at an annual benchmark rate of LIBOR or an alternative commercial paper rate (which is either (i) the per annum rate equivalent to the weighted-average of the per annum rates at which all commercial paper notes were issued by certain lenders to fund advances or maintain loans, or (ii) the daily weighted-average of LIBOR, as set forth in the applicable credit agreement), plus a spread ranging from 1.65% to 4.00%. Interest is payable monthly. In addition, these agreements require payment of a monthly unused commitment fee ranging from 0.00% to 0.75% per annum on the undrawn portion available. These agreements contain certain customary negative covenants and financial covenants including maintaining certain levels of minimum liquidity, maximum leverage, and minimum tangible net worth. As of March 31, 2022, we were in compliance with all applicable covenants in the agreements. Other Funding Facilities Prior to our acquisition of PayBright on January 1, 2021, PayBright entered into various credit facilities utilized to finance the origination of loan receivables in Canada. Similar to our warehouse credit facilities, borrowings under these agreements are referred to as funding debt, and proceeds from the borrowings may only be used for the purposes of facilitating loan funding and origination. These facilities are secured by PayBright loan receivables pledged to the respective facility as collateral, mature in 2022, and bear interest based on a benchmark rate plus a spread ranging from 1.25% to 4.25%. As of March 31, 2022, the aggregate commitment amount of these facilities was $419.0 million on a revolving basis, of which $172.3 million was drawn, with $246.8 million remaining available. The unpaid principal balance of loans pledged to these facilities totaled $199.5 million as of March 31, 2022. These agreements contain certain customary negative covenants and financial covenants including maintaining certain levels of minimum liquidity, maximum leverage, and minimum tangible net worth at the PayBright subsidiary level or the Affirm Holdings level. As of March 31, 2022, we were in compliance with all applicable covenants in the agreements. Repurchase Agreements We entered into certain sale and repurchase agreements pursuant to our retained interests in our off-balance sheet securitizations where we have sold these securities to a counterparty with an obligation to repurchase at a future date and price. The repurchase agreements each have an initial term of three months and subject to mutual agreement by Affirm and the counterparty, we may enter into a repurchase date extension for an additional three month term at market interest rates on such extension date. As of March 31, 2022, the interest rates were 1.58% for 2022-X1 and 1.79% for 2021-Z1 and 2021-Z2 on the senior pledged securities and 3.23% for 2022-X1and 3.44% for 2021-Z1 and 2021-Z2 on the residual certificate pledged securities. We had $36.2 million and $13.9 million in debt outstanding under our repurchase agreements disclosed within funding debt on the interim condensed consolidated balance sheets as of March 31, 2022 and June 30, 2021, respectively. The debt will be amortized through regular principal and interest payments on the pledged securities. The outstanding debt relates to $42.7 million and $16.2 million in pledged securities disclosed within securities available for sale at fair value on the interim condensed consolidated balance sheets as of March 31, 2022 and June 30, 2021, respectively. Convertible Senior Notes On November 23, 2021, we issued $1,725 million in aggregate principal amount of 0% convertible senior notes due 2026 (the “2026 Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The total net proceeds from this offering, after deducting debt issuance costs, were approximately $1,704 million. The 2026 Notes represent senior unsecured obligations of the Company. The 2026 Notes do not bear interest except in special circumstances described below, and the principal amount of the 2026 Notes does not accrete. The 2026 Notes mature on November 15, 2026. Each $1,000 of principal of the 2026 Notes will initially be convertible into 4.6371 shares of our common stock, which is equivalent to an initial conversion price of approximately $215.65 per share, subject to adjustment upon the occurrence of certain specified events set forth in the indenture governing the 2026 Notes (the “Indenture”). Holders of the 2026 Notes may convert their 2026 Notes at their option at any time on or after August 15, 2026 until close of business on the second scheduled trading day immediately preceding the maturity date of November 15, 2026. Further, holders of the 2026 Notes may convert all or any portion of their 2026 Notes at their option prior to the close of business on the business day immediately preceding August 15, 2026, only under the following circumstances: 1) during any calendar quarter commencing after March 31, 2022 (and only during such calendar quarter), if the last reported sale price of the Class A 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; 2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture governing the 2026 Notes) per $1,000 principal amount of the 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; 3) if the Company calls any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or 4) upon the occurrence of certain specified corporate events. Upon conversion of the 2026 Notes, the Company will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at the Company’s election. If we satisfy our conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and shares of our common stock, the amount of cash and shares of common stock, if any, due upon conversion will be based on a daily conversion value (as set forth in the Indenture) calculated on a proportionate basis for each trading day in a 40 trading day observation period. No sinking fund is provided for the 2026 Notes. We may not redeem the notes prior to November 20, 2024. We may redeem for cash all or part of the notes on or after November 20, 2024 if the last reported sale price of our Class A 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 immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid special interest, if any. If a fundamental change (as defined in the Indenture) occurs prior to the maturity date, holders of the 2026 Notes may require us to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount of the 2026 Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. In addition, if specific corporate events occur prior to the maturity date of the 2026 Notes, we will be required to increase the conversion rate for holders who elect to convert their 2026 Notes in connection with such corporate events. The convertible senior notes outstanding as of March 31, 2022 consisted of the following (in thousands): Principal Amount Unamortized Discount and Issuance Cost Net Carrying Amount Convertible Senior Notes $ 1,725,000 $ (19,376) $ 1,705,624 The 2026 Notes do not bear interest. In the three and nine months ended March 31, 2022, we recognized $1.0 million and $1.4 million, respectively, of interest expense related to the amortization of debt discount and issuance costs in the interim condensed consolidated statement of operations and comprehensive loss within other (expense) income, net. As of March 31, 2022, the remaining life of the 2026 Notes is approximately 56 months. Revolving Credit Facility On January 19, 2021, we entered into a revolving credit agreement with a syndicate of commercial banks for a $185.0 million unsecured revolving credit facility. This facility bears interest at a rate equal to, at our option, either (a) a Eurodollar rate determined by reference to adjusted LIBOR for the interest period, plus an applicable margin of 2.50% per annum or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50% per annum, (ii) the rate last quoted by The Wall Street Journal as the U.S. prime rate, and (iii) the one-month adjusted LIBOR plus 1.00% per annum, in each case, plus an applicable margin of 1.50% per annum. The revolving credit agreement has a final maturity date of January 19, 2024. The facility contains certain covenants and restrictions, including certain financial maintenance covenants, and requires payment of a monthly unused commitment fee of 0.35% per annum on the undrawn balance available. We executed our right to terminate the revolving credit agreement effective December 15, 2021and no early termination penalties were incurred. We had not drawn on the facility and there was no outstanding balance to be repaid. Upon termination, we accelerated $1.2 million of issuance costs which were recorded in other (expense) income, net. On February 4, 2022, we entered into a revolving credit agreement with a syndicate of commercial banks for a $165.0 million unsecured revolving credit facility. This facility bears interest at a rate equal to, at our option, either (a) a Secured Overnight Financing Rate (“SOFR”) rate determined by reference to the forward-looking term SOFR rate for the interest period, plus an applicable margin of 1.85% per annum or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50% per annum, (ii) the rate last quoted by the Wall Street Journal as the U.S. prime rate and (iii) the one-month forward-looking term SOFR rate plus 1.0% per annum, in each case, plus an applicable margin of 0.85% per annum. The revolving credit agreement has a final maturity date of February 4, 2025. The facility contains certain covenants and restrictions, including certain financial maintenance covenants, and requires payment of a monthly unused commitment fee of 0.20% per annum on the undrawn balance available. There are no borrowings outstanding under the facility as of March 31, 2022. |
Securitization and Variable Int
Securitization and Variable Interest Entities | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Securitization and Variable Interest Entities | Securitization and Variable Interest Entities Consolidated VIEs We consolidate VIEs when we are deemed to be the primary beneficiary. Warehouse Credit Facilities We established certain entities, deemed to be VIEs, to enter into warehouse credit facilities for the purpose of purchasing loans from our originating bank partners and funding self-originated loans. Refer to Note 10. Debt for additional information. The creditors of the VIEs have no recourse to the general credit of Affirm and the liabilities of the VIEs can only be settled by the respective VIEs’ assets; however, as the servicer of the loans pledged to our warehouse funding facilities, we have the power to direct the activities that most significantly impact the VIEs' economic performance. In addition, we retain significant economic exposure to the pledged loans and therefore, we are the primary beneficiary. Securitizations In connection with our asset-backed securitization program, we sponsor and establish trusts (deemed to be VIEs) to ultimately purchase loans facilitated by our platform. Securities issued from our asset-backed securitizations are senior or subordinated, based on the waterfall criteria of loan payments to each security class. The subordinated residual interests issued from these transactions are first to absorb credit losses in accordance with the waterfall criteria. For these VIEs, the creditors have no recourse to the general credit of Affirm and the liabilities of the VIEs can only be settled by the respective VIEs’ assets. Additionally, the assets of the VIEs can be used only to settle obligations of the VIEs. We consolidate securitization VIEs when we are deemed to be the primary beneficiary and therefore have the power to direct the activities that most significantly affect the VIEs’ economic performance and a variable interest that could potentially be significant to the VIE. Through our role as the servicer, we have the power to direct the activities that most significantly affect the VIEs’ economic performance. In evaluating whether we have a variable interest that could potentially be significant to the VIE, we consider our retained interests. We also earn a servicing fee which has a senior distribution priority in the payment waterfall. In evaluating whether we are the primary beneficiary, management considers both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIEs. Management assesses whether we are the primary beneficiary of the VIEs on an ongoing basis. Where we consolidate the securitization trusts, the loans held in the securitization trusts are included in loans held for investment, and the notes sold to third-party investors are recorded in notes issued by securitization trusts in the consolidated balance sheets. As of March 31, 2022, we consolidated Affirm Asset Securitization Trust 2020-Z1 (“2020-Z1”), Affirm Asset Securitization Trust 2020-A (“2020-A”), Affirm Asset Securitization Trust 2020-Z2 (“2020-Z2”), Affirm Asset Securitization Trust 2021-A (“2021-A”) and Affirm Asset Securitization Trust 2021-B (“2021-B”). Each securitization trust issued interest-bearing notes and residual certificates to finance the purchase of the loans facilitated by our platform. At the closing of each securitization, we contributed loans, facilitated through our technology platform and purchased from our originating bank partners, with an aggregate outstanding principal balance of $2,024.3 million. The 2020-Z1 and 2020-Z2 securitizations are secured by static pools of loans contributed at closing, whereas the 2020-A, 2021-A, and 2021-B securitization are revolving and we may contribute additional loans from time to time until the end of the revolving period. For the 2020-Z2 securitization, we purchased $27.9 million of loan receivables from our third-party loan buyers which were then contributed to the trust. For each securitization, the residual certificates represent the right to receive excess cash on the loans each collection period after all fees and required distributions have been made to the note holders on the related payment date. For 2020-Z1, 2020-A, 2021-A and 2021-B, all notes were sold to third-party investors and we retained 100% of the residual certificates issued by the securitization trusts. For 2020-Z2, all notes were sold to third-party investors and we retained 93.3% of the residual certificates issued by the securitization trust, and a third-party investor holds the remaining 6.7% of the residual certificates in 2020-Z2. The residual trust certificates held by third-party investors are measured at fair value, using a discounted cash flow model, and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. In addition to the retained residual certificates, our continued involvement includes loan servicing responsibilities over the life of the underlying loans. The following tables present the aggregate carrying value of financial assets and liabilities from our involvement with consolidated VIEs. March 31, 2022 Assets Liabilities Net Assets Warehouse credit facilities $ 839,670 $ 751,419 $ 88,251 Securitizations 1,561,401 1,448,913 112,488 Total consolidated VIEs $ 2,401,071 $ 2,200,332 $ 200,739 June 30, 2021 Assets Liabilities Net Assets Warehouse credit facilities $ 688,197 $ 614,882 $ 73,315 Securitizations 1,115,427 1,178,545 (63,118) Total consolidated VIEs $ 1,803,624 $ 1,793,427 $ 10,197 Unconsolidated VIEs As of March 31, 2022, Affirm Asset Securitization Trust 2021-Z1 (“2021-Z1”), Affirm Asset Securitization Trust 2021-Z2 (“2021-Z2”) and Affirm Asset Securitization Trust 2022-X (“2022-X1”) were unconsolidated VIEs. We did not retain significant economic exposure through our variable interests and therefore we determined that we are not the primary beneficiary as of March 31, 2022. 2021-Z1 On May 5, 2021, the notes under 2021-Z1 securitization were issued as a single class: Class A in the amount of $320.0 million (the “2021-Z1 notes”). The 2021-Z1 notes bear interest at a fixed rate of 1.07% and have a maturity date of August 15, 2025. Principal and interest payments began in June 2021 and are payable monthly. The 2021-Z1 securitization is secured by a static pool of loans which were contributed at the closing date to the 2021-Z1 trust. The loans contributed at closing were facilitated through our technology platform and purchased from our originating bank partners, with an aggregate outstanding principal balance of $351.0 million. Of the loans sold to the 2021-Z1 trust, we purchased $41.4 million of loan receivables from one of our third-party loan buyers, which were contributed to the trust at closing. At closing, we retained 5% of the 2021-Z1 notes and 86.9% of the residual certificates issued by the 2021-Z1 trust. The third-party loan contributor received 13.1% of the re sidual certificates at closing. On May 17, 2021, we sold a majority of the residual certificates retained at closing, comprising 81.9% of the par value, to five third-party investors. Subsequent to this sale, we retained only a 5% vertical interest in the 2021-Z1 trust via our ownership of 5% par amount of the 2021-Z1 notes and 5% par amount of the residual interests. We were required to retain these interests for compliance with U.S. risk retention rules. We initially consolidated the 2021-Z1 trust at closing due to retaining a majority of the residual interest. However, upon completing the subsequent third-party sale of 81.9% of the residual certificates on May 17, 2021, we determined that we no longer had significant economic exposure through our variable interests and as such, we determined that we were no longer the primary beneficiary as of this date. Upon deconsolidating the 2021-Z1 trust, we recognized a gain of $16.7 million, primarily driven by the gain on sale of the loans sold to the trust at closing. 2021-Z2 On November 10, 2021, the notes under 2021-Z2 securitization were issued as a single class: Class A in the amount of $260.0 million (the “2021-Z2 notes”). The 2021-Z2 notes bear interest at a fixed rate of 1.17% and have a maturity date of November 16, 2026. Principal and interest payments began in January 2022 and are payable monthly. The 2021-Z2 securitization is secured by a static pool of loans which were contributed at the closing date to the 2021-Z2 trust. The loans contributed at closing were facilitated through our technology platform and purchased from our originating bank partners, with an aggregate outstanding principal balance of $287.5 million. Of the loans sold to the 2021-Z2 trust, we purchased $192.5 million of loan receivables from one of our third-party loan buyers, which were contributed to the trust at closing. At closing, we retained only a 5% vertical interest in the 2021-Z2 trust via our ownership of 5% par amount of the 2021-Z2 notes and 5% par amount of the residual interests. We were required to retain these interests for compliance with U.S. risk retention rules. The third-party loan contributor received 95% of the residual certificates at closing. On the closing date of the 2021-Z2 trust, we recognized a gain on sales of loans sold to the trust of $6.1 million, w hich is included within gain on sales of loans in our interim condensed consolidated statements of operations and comprehensive loss . 2022-X1 On February 9, 2022, the notes under 2022-X1 securitization were issued as a single class: Class A in the amount of $366.5 million (the “2022-X1 notes”). The 2022-X1 notes bear interest at a fixed rate of 1.75% and have a maturity date of February 16, 2027. Principal and interest payments began in April 2022 and are payable monthly. The 2022-X1 securitization is secured by a static pool of loans which were contributed at the closing date to the 2022-X1 trust. The loans contributed at closing were facilitated through our technology platform and originated by us or purchased from our originating bank partners, with an aggregate outstanding principal balance of $406.2 million. Of the loans sold to the 2022-X1 trust, we purchased $258.3 million of loan receivables from one of our third-party loan buyers, which were contributed to the trust at closing. At closing, we retained only a 5% vertical interest in the 2022-X1 trust via our ownership of 5% par amount of the 2022-X1 notes and 5% par amount of the residual interests. We were required to retain these interests for compliance with U.S. risk retention rules. The third-party loan contributor received 95% of the residual certificates at closing. On the closing date of the 2022-X1 trust, we recognized gain on sales of loans sold to the trust of $13.1 million, which is included within gain on sales of loans in our interim condensed consolidated statements of operations and comprehensive loss. The following tables present the aggregate carrying value of financial assets and liabilities for unconsolidated VIEs where we hold a variable interest but are not the primary beneficiary: March 31, 2022 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 817,633 $ 766,651 $ 50,982 $ 44,092 Total unconsolidated VIEs $ 817,633 $ 766,651 $ 50,982 $ 44,092 June 30, 2021 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 305,414 $ 304,567 $ 847 $ 16,850 Total unconsolidated VIEs $ 305,414 $ 304,567 $ 847 $ 16,850 Assets of unconsolidated VIEs include the carrying value for loans held in the 2021-Z1, 2021-Z2, and 2022-X1 trust and cash held in the collection and reserve accounts established for the trust. Liabilities include the outstanding principal balance of the 2021-Z1, 2021-Z2, and 2022-X1 n otes. Maximum exposure to losses represents our exposure through our continuing involvement as servicer and through our retained interests. For 2021-Z1, 2021-Z2 and 2022-X1, this includes $42.7 million in retained notes and residual certificates disclosed within securities available for sale at fair value in our interim condensed consolidated balance sheets and $1.4 million related to our servicing asset and receivables disclosed within other assets in our interim condensed consolidated balance sheets. Additionally, we may experience a loss due to future repurchase obligations resulting from breaches in representations and warranties in our securitization and third-party sale agreements. In connection with 2021-Z1, 2021-Z2 and 2022-X1, this amount was not material as of March 31, 2022. Retained Beneficial Interests in Unconsolidated VIEs The investors of the securitizations have no direct recourse to the assets of Affirm, and the timing and amount of beneficial interest payments is dependent on the performance of the underlying loan assets held within each trust. We have classified our retained beneficial interests in 2021-Z1, 2021-Z2 and 2022-X1 as “available for sale” and as such they are disclosed at fair value in our interim condensed consolidated balance sheets. See Note 12 . Investments and Note 13. Fair Value of Financial Assets and Liabilities for additional information on the fair value sensitivity of the notes receivable and residual certificates. Additionally, as of March 31, 2022 , we have pledged the 2021-Z1, 2021-Z2, a nd 2022-X1 ret ained beneficial interests as collateral in connection with a repurchase agreement as described in Note 10. Debt . |
Investments
Investments | 9 Months Ended |
Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments Marketable Securities Marketable securities include certain investments classified as cash and cash equivalents and securities available for sale, at fair value, and consist of the following as of each date presented within the interim condensed consolidated balance sheets (in thousands): March 31, 2022 June 30, 2021 Cash and cash equivalents: Money market funds $ 1,461,956 $ 143,241 Corporate bonds 854 — Commercial paper 73,689 — Securities, available for sale: Certificates of deposit 54,048 — Corporate bonds 185,432 — Commercial paper 133,437 — Government bonds Non-US 35,775 — US 165,624 — Securitization notes receivable and certificates (1) 42,707 16,170 Total marketable securities: $ 2,153,522 $ 159,411 (1) These securities have been pledged as collateral in connection with sale and repurchase agreements as discussed within Note 10. Debt. Securities Available for Sale, at Fair Value The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of March 31, 2022 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit (1) $ 54,168 $ 27 $ (147) $ — $ 54,048 Corporate bonds (1) 187,580 5 (1,299) — 186,286 Commercial paper (1) 207,302 11 (187) — 207,126 Government bonds Non-US (1) 36,008 — (233) — 35,775 US 166,285 — (661) — 165,624 Securitization notes receivable and certificates (2) 43,394 — (557) (130) 42,707 Total securities available for sale $ 694,737 $ 43 $ (3,084) $ (130) $ 691,566 (1) Certificates of deposit, corporate bonds, non-US government bonds and commercial paper include $74.5 million classified as cash and cash equivalents within the interim condensed consolidated balance sheets. (2) These securities have been pledged as collateral in connection with sale and repurchase agreements as discussed within Note 10. Debt The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of June 30, 2021 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Securitization notes receivable and certificates $ 16,144 $ 29 $ — $ (3) $ 16,170 Total securities available for sale $ 16,144 $ 29 $ — $ (3) $ 16,170 As of March 31, 2022 and June 30, 2021, there were no material reversals of prior period allowance for credit losses recognized for available for sale securities. A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous loss position as of March 31, 2022 , is as follows: Less than or equal to 1 year Greater than 1 year Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificates of deposit $ 29,846 $ (147) $ — $ — $ 29,846 $ (147) Corporate bonds 177,798 (1,299) — — 177,798 (1,299) Commercial paper 126,289 (187) — — 126,289 (187) Government bonds Non-US 35,775 (233) — — 35,775 (233) US 165,624 (661) — — 165,624 (661) Securitization notes receivable and certificates 42,707 (557) — — 42,707 (557) Total securities available for sale (1) $ 578,039 $ (3,084) $ — $ — $ 578,039 $ (3,084) (1) The number of positions with unrealized losses as of March 31, 2022 totaled 113. There were no securities available for sale with unrealized losses for which an allowance for credit losses had not been recorded as of June 30, 2021. The length of time to contractual maturities of securities available for sale as of March 31, 2022 , were as follows: Within 1 year Greater than 1 year, less than or equal to 5 years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Certificates of deposit $ 54,168 $ 54,048 $ — $ — $ 54,168 $ 54,048 Corporate bonds 153,996 153,310 33,584 32,976 187,580 186,286 Commercial paper 207,302 207,126 — — 207,302 207,126 Government bonds Non-US 31,762 31,656 4,246 4,119 36,008 35,775 US 166,285 165,624 — — 166,285 165,624 Securitization notes receivable and certificates (1) 32,067 31,510 11,327 11,197 43,394 42,707 Total securities available for sale $ 645,580 $ 643,274 $ 49,157 $ 48,292 $ 694,737 $ 691,566 (1) Based on weighted average life of expected cash flows as of March 31, 2022. Gross proceeds from matured or redeemed securities for the three and nine months ended March 31, 2022 were $949.3 million and $1,584.8 million, respectively. There were no portfolio sales or associated realized gains or losses for available for sale securities for the three and nine months ended March 31, 2022 . Non-marketable Equity Securities Non-marketable equity securities which do not have a readily determinable fair value are measured at cost less impairment, if any, and adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “measurement alternative”). Unrealized and realized gains and losses on the investment due to impairment or observable price changes in orderly transaction for an identical or similar investment of the same issuer, if any, are recognized in other (expense) income, net on our interim condensed consolidated statements of operations and comprehensive loss and a new carrying value is established for the investment upon such recognition. Equity investments without a readily determinable fair value held at cost were $33.2 million and $11.3 million as of March 31, 2022 and June 30, 2021, respectively, and are included in other assets within the interim condensed consolidated balance sheets. There have been no unrealized or realized gains and losses due to observable changes in orderly transactions and we did not record any impairment for the three and nine months ended March 31, 2022 or March 31, 2021 . |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities ASC Topic 820, “Fair Value Measurement” (“ASC 820”) establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: • Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. • Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Financial Assets and Liabilities Recorded at Fair Value The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2022 (in thousands): Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 1,461,956 $ — $ — $ 1,461,956 Corporate bonds — 852 — 852 Commercial paper — 73,689 — 73,689 Restricted cash: Securities available for sale: Certificate of deposit — 54,048 — 54,048 Corporate bonds — 185,434 — 185,434 Commercial paper — 133,437 — 133,437 Government bonds: Non-U.S. — 35,775 — 35,775 U.S. — 165,624 — 165,624 Securitization notes receivable and residual trust certificates — — 42,707 42,707 Total securities available for sale — 574,318 42,707 617,025 Servicing assets — — 4,620 4,620 Derivative instruments — 43,437 — 43,437 Total assets $ 1,461,956 $ 692,296 $ 47,327 $ 2,201,579 Liabilities: Servicing liabilities $ — $ — $ 5,606 $ 5,606 Performance fee liability — — 1,584 1,584 Residual trust certificates, held by third-parties — — 489 489 Contingent consideration — — 119,008 119,008 Profit share liability — — 1,878 1,878 Total liabilities $ — $ — $ 128,565 $ 128,565 The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 143,241 $ — $ — $ 143,241 Restricted cash: Securitization notes receivable and residual trust certificates — — 16,170 16,170 Servicing assets — — 2,349 2,349 Derivative instruments — 2,880 — 2,880 Total assets $ 143,241 $ 2,880 $ 18,519 $ 164,640 Liabilities: Servicing liabilities $ — $ — $ 3,961 $ 3,961 Performance fee liability — — 1,290 1,290 Residual trust certificates, held by third-parties — — 914 914 Contingent consideration — — 153,447 153,447 Profit share liability — — 2,464 2,464 Total liabilities $ — $ — $ 162,076 $ 162,076 There were no transfers between levels during the periods ended March 31, 2022 and June 30, 2021. Assets and Liabilities Measured at Fair Value on a Recurring Basis (Level 2) Securities Available for Sale As of March 31, 2022, we held marketable securities classified as available for sale. Management obtains pricing from one or more third-party pricing services for the purpose of determining fair value. Whenever available, the fair value is based on quoted bid prices as of the end of the trading day. When quoted prices are not available, other methods may be utilized including evaluated prices provided by third-party pricing services. Derivative Instruments Our primary objective in holding derivatives is to reduce the volatility in cash flows associated with our funding activities, arising from changes in interest rates. We do not employ derivatives for trading or speculative purposes. As of March 31, 2022, we used a combination of interest rate cap agreements and interest rate swaps to manage interest costs and the risk associated with variable interest rates. Neither the interest rate caps or the interest rate swaps have been designated as hedging instruments. As of March 31, 2022 and June 30, 2021, the interest rate caps and interest rate swaps are in a net asset position, and classified as Level 2 within the fair value hierarchy, based on prices quoted for similar financial instruments in markets that are not active. The fair values are presented gross within other assets and offsetting collateral received by the counterparty is presented as a liability within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. Any changes in the fair value of these financial instruments are reflected in other (expense) income, net, on the interim condensed consolidated statements of operations and comprehensive loss. Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3) We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them each reporting period. Since our servicing assets and liabilities, performance fee liability, securitization notes and residual trust certificates, contingent consideration, and profit share liability do not trade in an active market with readily observable prices, we use significant unobservable inputs to measure fair value. This determination requires significant judgments to be made. Servicing Assets and Liabilities We sold loans with an unpaid balance of $2,042.5 million and $5,647.5 million for the three and nine months ended March 31, 2022, respectively, and $756.7 million and $2,013.2 million for the three and nine months ended March 31, 2021, respectively, for which we retained servicing rights. As of March 31, 2022 and June 30, 2021, we serviced loans which we sold with a remaining unpaid principal balance of $4,036.4 million and $2,453.9 million, respectively. We use discounted cash flow models to arrive at an estimate of fair value. Significant assumptions used in the valuation of our servicing rights are as follows: Adequate Compensation We estimate adequate compensation as the rate a willing market participant would require for servicing loans with similar characteristics as those in the serviced portfolio. Discount Rate Estimated future payments to be received under servicing agreements are discounted as a part of determining the fair value of the servicing rights. For servicing rights on loans, the discount rate reflects the time value of money and a risk premium intended to reflect the amount of compensation market participants would require. Net Default Rate We estimate the timing and probability of early loan payoffs, loan defaults and write-offs, thus affecting the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenue and expenses. We earned $23.5 million and $44.2 million of servicing income for the three and nine months ended March 31, 2022, respectively, and $8.0 million and $17.2 million for the three and nine months ended March 31, 2021, respectively. As of March 31, 2022 and June 30, 2021, the aggregate fair value of the servicing assets was measured at $4.6 million and $2.3 million, respectively, and presented within other assets on the interim condensed consolidated balance sheets. As of March 31, 2022 and June 30, 2021, the aggregate fair value of the servicing liabilities was measured at $5.6 million and $4.0 million, respectively, and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. The following table summarizes the activity related to the aggregate fair value of our servicing assets (in thousands): Servicing Assets Three Months Ended March 31, Nine Months Ended 2022 2021 2022 2021 Fair value at beginning of period $ 2,178 $ 1,923 $ 2,349 $ 2,132 Initial transfers of financial assets 1,991 202 3,105 1,732 Subsequent changes in fair value 451 (5) (834) (1,744) Fair value at end of period $ 4,620 $ 2,120 $ 4,620 $ 2,120 The following table summarizes the activity related to the aggregate fair value of our servicing liabilities (in thousands): Servicing Liabilities Three Months Ended March 31, Nine Months Ended 2022 2021 2022 2021 Fair value at beginning of period $ 8,626 $ 2,826 $ 3,961 $ 1,540 Initial transfers of financial assets 2,940 1,972 13,826 5,185 Subsequent changes in fair value (5,960) (2,550) (12,181) (4,477) Fair value at end of period $ 5,606 $ 2,248 $ 5,606 $ 2,248 The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.84 % 1.65 % 1.29 % Net default rate 0.87 % 9.25 % 4.56 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 2.12 % 4.26 % 3.13 % Net default rate 1.50 % 29.18 % 13.76 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of June 30, 2021: Unobservable Input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.70 % 0.84 % 0.81 % Net default rate 0.53 % 0.95 % 0.64 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 1.29 % 3.70 % 2.71 % Net default rate 0.80 % 8.42 % 7.12 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance The following table summarizes the effect that adverse changes in estimates would have on the fair value of the servicing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2022 June 30, 2021 Servicing assets Net default rate assumption: Net default rate increase of 25% $ (41) $ (7) Net default rate increase of 50% $ (75) $ (15) Adequate compensation assumption: Adequate compensation increase of 25% $ (4,587) $ (2,006) Adequate compensation increase of 50% $ (9,173) $ (4,011) Discount rate assumption: Discount rate increase of 25% $ (64) $ (4) Discount rate increase of 50% $ (129) $ (1) Servicing liabilities Net default rate assumption: Net default rate increase of 25% $ (26) $ (40) Net default rate increase of 50% $ (49) $ (61) Adequate compensation assumption: Adequate compensation increase of 25% $ 4,370 $ 3,060 Adequate compensation increase of 50% $ 8,739 $ 6,119 Discount rate assumption: Discount rate increase of 25% $ (512) $ (137) Discount rate increase of 50% $ (663) $ (263) Performance Fee Liability In accordance with our agreements with our originating bank partners, we pay a fee for each loan that is fully repaid by the consumer, due at the end of the period in which the loan is fully repaid. We recognize a liability upon the purchase of a loan for the expected future payment of the performance fee. This liability is measured using a discounted cash flow model and recorded at fair value and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. Any changes in the fair value of the liability are reflected in other (expense) income, net, on the interim condensed consolidated statements of operations and comprehensive loss. The following table summarizes the activity related to the fair value of the performance fee liability (in thousands): Performance Fee Liability Three Months Ended March 31, Nine Months Ended 2022 2021 2022 2021 Fair value at beginning of period $ 1,530 $ 1,205 $ 1,290 $ 875 Purchases of loans 432 349 1,265 1,070 Settlements Paid (418) — (418) — Subsequent changes in fair value 40 (312) (553) (703) Fair value at end of period $ 1,584 $ 1,242 $ 1,584 $ 1,242 Significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability are the discount rate, refund rate, and default rate. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.78% 2.98% 2.30% The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of June 30, 2021: Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.78% 2.83% 1.80% Residual Trust Certificates Held by Third-Parties in Consolidated VIEs Refer to Note 11. Securitization and Variable Interest Entities for a description of the 2020-Z2 securitization trust. Residual trust certificates held by third-party investor(s) are measured at fair value, using a discounted cash flow model, and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. Any changes in the fair value of the liability are reflected in other (expense) income, net, on the interim condensed consolidated statements of operations and comprehensive loss. The following table summarizes the activity related to the fair value of the residual trust certificates held by third-parties (in thousands): Three Months Ended Nine Months Ended Fair value at beginning of period $ 619 $ 914 Repayments (146) (549) Subsequent changes in fair value 16 124 Fair value at end of period $ 489 $ 489 Significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates held by third-parties are the discount rate, loss rate, and prepayment rate. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates held by third-parties as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Loss rate 0.75% 0.75% 0.75% Prepayment rate 8.00% 8.00% 8.00% The following table summarizes the effect that adverse changes in estimates would have on the fair value of the securitization residual certificates held by third-party investor(s) given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2022 Discount rate assumption: Discount rate increase of 25% $ (8) Discount rate increase of 50% $ (16) Loss rate assumption: Loss rate increase of 25% $ (12) Loss rate increase of 50% $ (23) Prepayment rate assumption: Prepayment rate decrease of 25% $ (3) Prepayment rate decrease of 50% $ (6) Retained Beneficial Interests in Unconsolidated VIEs As of March 31, 2022, the Company held notes receivable and residual trust certificates with an aggregate fair value of $42.7 million in connection with th e 2021-Z1, 2021-Z2 and 2022-X1 securitizations, which are unconsolidated securitizations. The balances correspond to the 5% economic risk retention the Company is required to maintain as the securitization sponsor. Refer to Note 11. Securitization and Variable Interest Entities for a further description of the 2021-Z1, 2021-Z2 and 2022-X1securitization trusts. These assets are measured at fair value using a discounted cash flow model, and presented within securities available for sale at fair value on the interim condensed consolidated balance sheets. Changes in the fair value, other than declines in fair value due to credit recognized as an allowance, are reflected in other comprehensive income (loss) on the interim condensed consolidated statements of operations and comprehensive loss. Declines in fair value due to credit are reflected in other (expense) income, net on the interim condensed consolidated statements of operations and comprehensive loss. The following table summarizes the activity related to the fair value of the residual trust certificates during the three and nine months ended March 31, 2022 (in thousands): Three Months Ended March 31, 2022 Nine Months Ended March 31, 2022 Fair value at beginning of period $ 25,319 $ 16,170 Additions 22,067 35,762 Cash received (due to payments or sales) (4,414) (8,798) Change in unrealized loss (402) (586) Accrued interest 215 285 Reversal of (impairment on) securities available for sale (78) (126) Fair value at end of period $ 42,707 $ 42,707 Significant unobservable inputs used for our Level 3 fair value measurement of the notes and residual trust certificates are the discount rate, loss rate, and prepayment rate. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 2.13% 20.25% 3.81% Loss rate 0.61% 10.95% 4.15% Prepayment rate 5.25% 35.00% 23.45% The following table summarizes the effect that adverse changes in estimates would have on the fair value of the securitization residual trust certificates given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2022 Discount rate assumption: Discount rate increase of 25% $ (319) Discount rate increase of 50% $ (628) Loss rate assumption: Loss rate increase of 25% $ (298) Loss rate increase of 50% $ (588) Prepayment rate assumption: Prepayment rate decrease of 25% $ 53 Prepayment rate decrease of 50% $ 117 Contingent Consideration Our acquisition of PayBright included consideration transferred and shares held in escrow, contingent upon the achievement of future milestones. We classified the contingent consideration as a liability. The acquisition date fair value of the contingent consideration liability was estimated using a Monte Carlo simulation in which the fair value is equal to the estimated number of shares to be released from escrow, which are determined based on simulated revenue, multiplied by the simulated share price, discounted at the risk-free rate. The liability is remeasured to its fair value at each reporting date, utilizing a Monte Carlo simulation for periods in which actual revenues are unknown, until the contingency is resolved. The change in fair value of the contingent consideration at each reporting date is recognized as a component of other (expense) income, net in the interim condensed consolidated statements of operations and comprehensive loss for the respective period. The following table summarizes the activity related to the fair value of the PayBright contingent consideration during the three and nine months ended March 31, 2022 (in thousands): Three Months Ended Nine Months Ended Fair value at beginning of period $ 253,750 $ 153,447 Subsequent changes in fair value (136,248) (28,682) Effect of foreign currency translation 1,506 (5,757) Fair value at end of period $ 119,008 $ 119,008 Significant unobservable inputs used for our Level 3 fair value measurement of the PayBright contingent consideration are the discount rate, equity volatility, and revenue volatility. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the contingent consideration as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 13.00% 13.00% 13.00% Equity volatility 19.00% 103.00% 86.00% Revenue volatility 11.00% 134.00% 33.00% The Kite acquisition included $9.0 million of cash held in escrow, the release of which is determined based on employee retention. The acquisition date fair value of the contingent consideration was estimated using a probability-weighted approach in which the likelihoods of potential employee retention outcomes were applied to the respective payout amounts and discounted to present value. The contingent consideration asset is remeasured to fair value at each reporting date based on the remaining amount held in escrow, passage of time, and any changes in expectations regarding employee retention outcomes until the contingency is resolved. The change in fair value of the contingent consideration asset at each reporting date is recognized as a component of other (expense) income, net in the consolidated statements of operations and comprehensive loss for the respective period. During the three months ended March 31, 2022, the contingency was resolved and the fair value of the contingent consideration asset was reduced to zero. For the three and nine months ended March 31, 2022, the change in fair value of the contingent consideration asset was not material. Profit Share Liability During the fiscal year ended June 30, 2021, we entered into a commercial agreement with an enterprise partner, in which we are obligated to share in the profitability of transactions facilitated by our platform. Upon capture of a loan under this program, we record a liability associated with the estimated future profit to be shared over the life of the loan based on estimated program profitability levels. This liability is measured using a discounted cash flow model and recorded at fair value and presented within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. The following table summarizes the activity related to the fair value of the profit share liability during the three and nine months ended March 31, 2022 (in thousands): Three Months Ended March 31, 2022 Nine Months Ended March 31, 2022 Fair value at beginning of period $ 2,053 $ 2,465 Facilitation of loans 1,098 4,672 Actual performance (2,918) (3,929) Subsequent changes in fair value 1,645 (1,330) Fair value at end of period $ 1,878 $ 1,878 Significant unobservable inputs used for our Level 3 fair value measurement of the profit share liability are the discount rate and estimated program profitability. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the profit sharing liability as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 30.00% 30.00% 30.00% Program profitability 1.25% 3.54% 1.26% Financial Assets and Liabilities Not Recorded at Fair Value The following table presents the fair value hierarchy for financial assets and liabilities not recorded at fair value as of March 31, 2022 (in thousands): Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 3,618 $ — $ 3,618 $ — $ 3,618 Loans held for investment, net 2,343,385 — — 2,410,903 2,410,903 Other assets 11,807 — 11,807 — 11,807 Total assets $ 2,358,810 $ — $ 15,425 $ 2,410,903 $ 2,426,328 Liabilities: Convertible senior notes, net (1) $ 1,705,624 $ — $ 1,213,020 $ — $ 1,213,020 Notes issued by securitization trusts 1,447,568 — — 1,406,390 1,406,390 Funding debt 910,806 — — 910,847 910,847 Total liabilities $ 4,063,998 $ — $ 1,213,020 $ 2,317,237 $ 3,530,257 (1) The estimated fair value of the convertible senior notes is determined based on a market approach, using the estimated or actual bids and offers of the notes in an over-the-counter market on the last business day of the period. The following table presents the fair value hierarchy for financial assets and liabilities not recorded at fair value as of June 30, 2021 (in thousands): Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 13,030 $ — $ 13,030 $ — $ 13,030 Loans held for investment, net 1,904,560 — — 1,883,364 1,883,364 Accounts receivable, net 91,575 — 91,575 — 91,575 Other assets 171,250 — 171,250 — 171,250 Total assets $ 2,180,415 $ — $ 275,855 $ 1,883,364 $ 2,159,219 Liabilities: Accounts payable $ 57,758 $ — $ 57,758 $ — $ 57,758 Payable to third-party loan owners 50,079 — 50,079 — 50,079 Accrued interest payable 2,751 — 2,751 — 2,751 Accrued expenses and other liabilities 161,502 — 159,387 2,115 161,502 Notes issued by securitization trusts 1,176,673 — — 1,184,663 1,184,663 Funding debt 689,356 — — 689,356 689,356 Total liabilities $ 2,138,119 $ — $ 269,975 $ 1,876,134 $ 2,146,109 |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock and Stockholders’ Deficit | 9 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Redeemable Convertible Preferred Stock and Stockholders’ Deficit | Redeemable Convertible Preferred Stock and Stockholders’ Equity Redeemable Convertible Preferred Stock In September 2020, we issued 21,836,687 shares of Series G redeemable convertible preferred stock at $19.93 per share for an aggregate purchase amount of $434.9 million. These shares had a liquidation preference of $435.1 million. As part of this equity financing round, the convertible notes converted into 4,444,321 shares of Series G-1 redeemable convertible preferred stock. These shares had a liquidation preference of $75.3 million prior to conversion. On January 12, 2021, prior to our IPO, all outstanding shares of redeemable convertible preferred stock were converted into shares of our common stock on a one-to-one basis and their carrying value of $1,327.3 million was reclassified into stockholders' deficit. Following this conversion, we amended and restated our certificate of incorporation to effect a reclassification of each share of our outstanding common stock into ½ share of Class A common stock and ½ share of Class B common stock, with cash paid for fractional shares. As of March 31, 2022 and June 30, 2021, there were no shares of redeemable convertible preferred stock issued and outstanding. Common Stock The Company had shares of common stock reserved for issuance as follows: March 31, 2022 June 30, 2021 Available outstanding under stock option plan 46,442,672 58,417,514 Available for future grant under stock option plan 39,309,914 29,793,755 Total 85,752,586 88,211,269 The common stock is not redeemable. We have two classes of common stock: Class A common stock and Class B common stock. Each holder of Class A common stock has the right to one vote per share of common stock. Each holder of Class B common stock has the right to 15 votes and can be converted at any time into one share of Class A common stock. Holders of Class A and Class B common stock are entitled to notice of any stockholders’ meeting in accordance with the bylaws of the corporation, and are entitled to vote upon such matters and in such manner as may be provided by law. Subject to the prior rights of holders of all classes of stock at the time outstanding having prior rights as to dividends, the holders of the common stock are entitled to receive, when and as declared by the Board of Directors, out of any assets of the corporation legally available therefore, such dividends as may be declared from time to time by the Board of Directors. Common Stock Warrants Common stock warrants are included as a component of additional paid in capital within the consolidated balance sheets. In November 2021, we granted warrants to purchase 22,000,000 shares of common stock in connection with a commercial agreement with Amazon. 7,000,000 of the warrant shares have an exercise price of $0.01 per share and a term of 3.5 years, while the remaining 15,000,000 warrant shares have an exercise price of $100 per share and a term of 7.5 years. We valued the warrants at the grant date using the Black-Scholes-Merton option pricing model with the following assumptions: a dividend yield of zero; years to maturity of 3.5 and 7.5 years, respectively; volatility of 45%; and a risk-free rate of 0.93% and 1.47%, respectively. In connection with the portion of these warrants that were fully vested upon execution, we recognized a commercial agreement asset of $133.5 million as of December 31, 2021. Refer to Note 6. Balance Sheet Components for more information on the asset and related amortization during the period. The remaining grant-date fair value of the warrants will be recognized within our condensed consolidated statements of operations and comprehensive loss as a component of sales and marketing expense as the warrants vest, based upon Amazon’s satisfaction of the vesting conditions. During the three and nine months ended March 31, 2022, a total of $102.4 million and $173.0 million, respectively, was recognized within |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans 2012 Stock Plan Under our Amended and Restated 2012 Stock Plan (the “Plan”), we may grant incentive and nonqualified stock options, restricted stock, and restricted stock units (“RSUs”) to employees, officers, directors, and consultants. As of March 31, 2022, the maximum number of shares of common stock which may be issued under the Plan is 118,374,202 Class A shares. As of March 31, 2022 and June 30, 2021, there were 39,309,914 and 29,793,755 shares of Class A common stock, respectively, available for future grants under the Plan. Stock Options For stock options granted before our IPO in January 2021, the minimum expiration period is seven years after termination of employment or 10 years from the date of grant. For stock options granted after our IPO, the minimum expiration period is three months after termination of employment or 10 years from the date of grant. Stock options generally vest over a period of four years or with 25% vesting on the 12 month anniversary of the vesting commencement date, and the remainder vesting on a pro-rata basis each month over the next three years. The following table summarizes our stock option activity for the nine months ended March 31, 2022: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balance as of June 30, 2021 31,662,750 $ 10.42 6.30 Granted 164,748 58.01 Exercised (12,986,539) 5.14 Forfeited, expired or cancelled (1,193,026) 23.59 Balance as of March 31, 2022 17,647,933 13.84 6.78 Vested and exercisable, March 31, 2022 11,118,698 $ 6.81 6.10 $ 442,482 Vested and exercisable, and expected to vest thereafter (1) March 31, 2022 17,195,165 $ 12.92 6.73 $ 586,036 (1) Options expected to vest reflect the application of an estimated forfeiture rate. When an employee exercises stock options, we collect and remit taxes on the employee’s behalf to applicable taxing authorities. As of March 31, 2022 and June 30, 2021, the balance of equity exercise taxes payable was $19.9 million and $23.7 million, respectively, which is included in accounts payable on the interim condensed consolidated balance sheets. Stock Options with Early Exercise Rights In accordance with the Plan, for certain stock options issued prior to the IPO, we allow for early exercise of the options while retaining the right to repurchase any unvested options upon termination of employment at the original exercise price. The proceeds received from early exercise of stock options have been recorded within accrued expenses and other liabilities on the interim condensed consolidated balance sheets. As of March 31, 2022, the early exercise liability totaled $0.5 million. Value Creation Award In November 2020, in connection with an overall review of the compensation of Max Levchin, our Chief Executive Officer, in advance of the IPO, and taking into account Mr. Levchin’s leadership since the inception of the Company, the comparatively modest level of cash compensation he had received from the Company during his many years of service, and that he did not hold any unvested equity awards, the Company's Board of Directors approved a long-term, multi-year performance-based stock option grant providing Mr. Levchin with the opportunity to earn the right to purchase up to 12,500,000 shares of the Company's Class A common stock (the “Value Creation Award”). We recognize stock-based compensation on these awards based on the grant date fair value using an accelerated attribution method over the requisite service period, and only if performance-based conditions are considered probable of being satisfied. During the three and nine months ended March 31, 2022, we incurred stock-based compensation expense of $29.0 million and $113.5 million, respectively, associated with the Value Creation Award as a component of general and administrative expense within the interim condensed consolidated statements of operations and comprehensive loss. For both the three and nine months ending March 31, 2021, we incurred stock-based compensation expense of $38.5 million. As of March 31, 2022, unrecognized compensation expense related to the Value Creation Award was approximately $120.5 million. The period over which such compensation expense will be recognized is approximately 3.8 years. Restricted Stock Units RSUs granted prior to the IPO were subject to two vesting conditions: a service-based vesting condition (i.e., employment over a period of time) and a performance-based vesting condition (i.e., a liquidity event in the form of either a change of control or an initial public offering, each as defined in the Plan), both of which must be met in order to vest. The performance-based condition was met upon the IPO. We record stock-based compensation expense for those RSUs on an accelerated attribution method over the requisite service period, which is generally four years. RSUs granted after IPO are subject to a service-based vesting condition. We record stock-based compensation expense for service-based RSUs on a straight-line basis over the requisite service period, which is generally one During the nine months ended March 31, 2022, we awarded 8,530,480 RSUs to certain employees under the Plan. The following table summarizes our RSU activity during the nine months ended March 31, 2022: Number of Shares Weighted Average Grant Date Fair Value Non-vested as of June 30, 2021 14,242,111 $ 37.93 Granted 8,530,480 58.29 Vested (4,780,097) 37.69 Forfeited, expired or cancelled (1,640,873) 33.57 Non-vested as of March 31, 2022 16,351,621 $ 45.23 As of March 31, 2022, unrecognized compensation expense related to unvested RSUs was approximately $632.9 million. The weighted-average period over which such compensation expense will be recognized is approximately 2.2 years. 2020 Employee Stock Purchase Plan On November 18, 2020, our Board of Directors adopted and approved the 2020 Employee Stock Purchase Plan (“ESPP”). A total of 9.1 million shares of Class A common stock were reserved and available for issuance under the ESPP as of March 31, 2022. The ESPP provides for six-month offering periods beginning December 1 and June 1 of each year. The first offering period began on December 1, 2021. At the end of each offering period, shares of our Class A common stock are purchased on behalf of each ESPP participant at a price per share equal to 85% of the lesser of (1) the fair market value of the Class A common stock on first day of the offering period (the grant date) or (2) the fair market value of the Class A common stock on the on the last day of the offering period (the purchase date). We use the Black-Scholes-Merton option pricing model to measure the fair value of the purchase rights issued under the ESPP. We record stock-based compensation expense on a straight-line basis over each six-month offering period, the requisite service period of the award. Stock-Based Compensation Expense The following table presents the components and classification of stock-based compensation (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 General and administrative $ 58,100 $ 115,566 $ 187,789 $ 121,867 Technology and data analytics 33,639 52,058 75,133 56,827 Sales and marketing 5,998 10,568 15,655 11,909 Processing and servicing 650 1,447 1,536 1,760 Total stock-based compensation in operating expenses 98,387 179,639 280,113 192,363 Capitalized into property, equipment and software, net 14,618 6,567 39,691 7,792 Total stock-based compensation expense $ 113,005 $ 186,206 $ 319,804 $ 200,155 In connection with the acquisition of Returnly on May 1, 2021, we issued 304,364 shares of our Class A common stock, which are held in escrow. Because the future payment of the escrowed shares is contingent on continued employment of certain employees, the arrangement represents stock-based compensation in the post combination period. The grant-date fair value was estimated based on the value of the shares at the date of closing. The escrowed shares have a requisite service period of two years and contain a performance-based vesting condition (i.e., the achievement of certain revenue targets). We record stock-based compensation expense on a straight-line basis for each tranche over the requisite service period, as long as the performance-based conditions are considered probable of being satisfied. We estimate the grant date fair value based on the probability of achievement of the revenue targets at each reporting period. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesFor the three and nine months ended March 31, 2022, we recorded income tax expense (benefit) of $0.3 million and $0.7 million, respectively, which was primarily attributable to various U.S state and foreign income taxes and the tax amortization of certain intangibles. For three and nine months ended March 31, 2021, we recorded income tax expense (benefit) of $(0.1) million and $0.1 million, respectively, which was primarily attributable to the effects of foreign income taxes and various U.S. state income taxes. As of March 31, 2022, we continue to recognize a full valuation allowance against our U.S. federal and state as well as the majority of our foreign net deferred tax assets. This determination was based on the assessment of the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred by the Company for the prior three fiscal years. The presence of a three-year cumulative loss limits the ability to consider other subjective evidence, such as our expectations of future taxable income and projections for growth. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 9 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders On January 12, 2021, we amended and restated our certificate of incorporation to effect a reclassification of each share of our outstanding common stock into ½ share of Class A common stock and ½ share of Class B common stock, with cash paid for fractional shares. Therefore, we have two classes of common stock: Class A common stock and Class B common stock. The rights, including the dividends and distributions, of the holders of our Class A and Class B common stock are identical, except with respect to voting. Additionally, the conversion of all outstanding shares of redeemable convertible preferred stock into shares of our common stock occurred immediately prior to the reclassification. The following tables present basic and diluted net loss per share attributable to common stockholders for Class A and Class B common stock (in thousands, except share and per share data): Three Months Ended March 31, 2022 Nine Months Ended March 31, 2022 Class A Class B Class A Class B Numerator: Basic and Diluted Net Loss $ (43,061) $ (11,610) $ (389,424) $ (131,597) Net Loss Attributable to Common Stockholders $ (43,061) $ (11,610) $ (389,424) $ (131,597) Denominator: Basic Weighted average shares outstanding, basic 224,980,598 60,661,222 208,957,734 70,612,281 Total-basic 224,980,598 60,661,222 208,957,734 70,612,281 Diluted Weighted average common shares outstanding, diluted 224,980,598 60,661,222 208,957,734 70,612,281 Total-diluted 224,980,598 60,661,222 208,957,734 70,612,281 Net loss per share attributable to common stockholders: Basic $ (0.19) $ (0.19) $ (1.86) $ (1.86) Diluted $ (0.19) $ (0.19) $ (1.86) $ (1.86) Three Months Ended March 31, 2021 Nine Months Ended March 31, 2021 Class A Class B Class A Class B Numerator: Basic Net Loss $ (150,953) $ (136,098) $ (152,148) $ (165,459) Net Loss Attributable to Common Stockholders $ (150,953) $ (136,098) $ (152,148) $ (165,459) Diluted Net Loss $ (150,953) $ (136,098) $ (152,148) $ (165,459) Excess return to preferred stockholders on repurchase — — (14,428) (15,677) Gain on conversion of convertible debt — — 191 207 Interest on convertible debt prior to conversion — — 859 933 Net Loss Attributable to Common Stockholders $ (150,953) $ (136,098) $ (165,526) $ (179,996) Denominator: Basic Weighted average shares outstanding, basic 122,691,770 110,617,820 58,520,980 63,640,528 Total-basic 122,691,770 110,617,820 58,520,980 63,640,528 Diluted Weighted average common shares outstanding, diluted 122,691,770 110,617,820 58,520,980 63,640,528 Weighted average common shares attributable to convertible debt prior to conversion — — 583,925 583,925 Total-diluted 122,691,770 110,617,820 59,104,905 64,224,453 Net loss per share attributable to common stockholders: Basic $ (1.23) $ (1.23) $ (2.60) $ (2.60) Diluted $ (1.23) $ (1.23) $ (2.80) $ (2.80) The following common stock equivalents, presented based on amounts outstanding, were excluded from the calculation of diluted net loss per share attributable to common stockholders because their inclusion would have been anti-dilutive: As of March 31, 2022 2021 Stock options, including early exercise of options 17,195,165 33,342,527 Restricted stock units 16,351,621 13,975,457 Common stock warrants 5,909,896 350,000 Employee stock purchase plan shares 161,300 — Total 39,617,982 47,667,984 |
Segments and Geographical Infor
Segments and Geographical Information | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments and Geographical Information | Segments and Geographical Information We conduct our operations through a single operating segment and, therefore, one reportable segment. Revenue Revenue by geography is based on the billing addresses of the borrower or the location of the merchant’s national headquarters. The following table sets forth revenue by geographic area (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 United States $ 344,731 $ 224,863 $ 956,789 $ 603,048 Canada 9,975 5,802 28,282 5,636 Other 56 — 87 — Total $ 354,762 $ 230,665 $ 985,158 $ 608,684 Long-Lived Assets The following table sets forth our long-lived assets, consisting of property, equipment and software, net and operating lease right-of-use assets, by geographic area (in thousands): March 31, 2022 June 30, 2021 United States $ 190,659 $ 118,076 Canada 3,240 2,251 Other $ 150 $ — Total $ 194,049 $ 120,327 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Fast Transaction On April 19, 2022, Affirm completed the closing of the transaction contemplated by a Release and Waiver Agreement entered into with Fast AF, Inc., (“Fast”) relating to the hiring of certain of its employees or service providers and an option to acquire certain of its assets. The purchase price was comprised of (i) $10.0 million in cash and (ii) forgiveness of a $15.0 million senior secured note issued to Fast in April 2022 prior to the closing. Due to the timing of the transaction, the initial accounting for the transaction is incomplete. As a result, the Company is not able to disclose certain information relating to the transaction, including the preliminary fair value of the assets acquired. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), disclosure requirements for interim financial information, and the requirements of Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended June 30, 2021. The balance sheet as of June 30, 2021 has been derived from the audited financial statements at that date. Management believes these interim condensed consolidated financial statements reflect all adjustments, including those of a normal and recurring nature, which are necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. |
Principles of Consolidation | Our interim condensed financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all wholly owned subsidiaries and variable interest entities (“VIEs”), in which we have a controlling financial interest. These include various business trust entities and limited partnerships established to enter into warehouse credit agreements with certain lenders for funding debt facilities and certain asset-backed securitization transactions. Our variable interest arises from contractual, ownership, or other monetary interests in the entity, which changes with fluctuations in the fair value of the entity’s net assets. We consolidate a VIE when we are deemed to be the primary beneficiary. We assess whether or not we are the primary beneficiary of a VIE on an ongoing basis. |
Use of Estimates | The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments and assumptions that affect the reported amounts in the interim condensed consolidated financial statements and the accompanying notes. Material estimates that are particularly susceptible to significant change relate to determination of variable consideration for revenue, the allowance for credit losses, capitalized internal-use software development costs, valuation allowance for deferred tax assets, loss on loan purchase commitment, the fair value of servicing assets and liabilities, discount on self-originated loans, the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations, the fair value of contingent consideration related to business combinations, the evaluation for impairment of intangible assets and goodwill, the incremental borrowing rate used in discounting our lease liabilities, the fair value of available for sale debt securities including retained interests in our securitization trusts, the fair value of residual certificates issued by our securitization trusts held by third parties, and stock-based compensation, including the fair value of warrants issued to nonemployees. We base our estimates on historical experience, current events, and other factors we believe to be reasonable under the circumstances. To the extent that there are material differences between these estimates and actual results, our financial condition or operating results will be materially affected.These estimates are based on information available as of the date of the interim condensed consolidated financial statements; therefore, actual results could differ materially from those estimates. |
Securities Available for Sale | We hold certain investments in marketable debt securities and retained interests in our unconsolidated securitization trusts which are accounted for under ASC Topic 320, “Investments - Debt Securities” (“ASC 320”). We have classified these investments as available for sale, as defined within ASC 320. These investments are held at fair value with changes in fair value recorded in unrealized gain (loss) on securities available for sale, net within other comprehensive income (loss). As of the end of each reporting period, management reviews each security where the fair value is less than the amortized cost to determine whether any portion of the decline in fair value is due to a credit loss and/or whether or not we intend to sell or will be required to sell such security before recovery of its amortized cost basis. The portion of any decline in fair value which management identifies as a credit loss will be recognized as an allowance for credit losses through other (expense) income, net rather than unrealized gain (loss) on securities available for sale, net. To the extent management intends to sell or may be required to sell a security in an unrealized loss position, we 1) reverse any previously recorded allowance for credit losses with an offsetting entry to reduce the amortized cost basis of the security and 2) write-off any remaining portion of the amortized cost basis to equal its fair value, with this change recorded through other (expense) income, net. Interest income for available for sale securities is recorded within other (expense) income, net. Available for sale securities initially purchased with less than 90 days until maturity with quoted transaction prices in an active market are classified as cash and cash equivalents. With respect to retained interests in our securitization trusts, we apply the guidance in ASC Topic 325, “Investments - Other” (“ASC 325”) relating to beneficial interests. Accordingly, we recognize interest income each period based on the effective interest rate calculated using expected cash flows. Changes in the timing of expected cash flows are accounted for prospectively through an adjustment to interest income. When fair value is below amortized cost, we record an allowance for credit losses measured based on the difference between amortized cost and projected cash flows discounted at the effective interest rate. The allowance for credit losses is capped at the difference between amortized cost and fair value. Refer to Note 12. Investments for additional information. |
Sales and Marketing Costs | Sales and marketing costs include the expense related to warrants and other share-based payments granted to our enterprise partners. See Note 6. Balance Sheet Components for more information on these arrangements. Sales and marketing costs also include salaries and personnel-related costs, as well as costs of general marketing and promotional activities, promotional event programs, sponsorships, and allocated overhead. A portion of these costs related to general marketing and promotional activities are considered advertising costs within the meaning of ASC Topic 720, “Other Expenses” (“ASC 720”), and are expensed as incurred. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted | Convertible Debt Instruments In August 2020, the FASB issued Accounting Standard Update (“ASU”) 2020-06, “Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40),” which simplifies the accounting for convertible instruments. The guidance removes certain accounting models that separate the embedded conversion features from the host contract for convertible instruments. Either a modified retrospective method of transition or a fully retrospective method of transition is permissible for the adoption of this standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted no earlier than the fiscal year beginning after December 15, 2020. We early adopted the new standard effective July 1, 2021 on a modified retrospective basis. The adoption of the new standard did not have any impact on our financial statements as of the adoption date. As further discussed in Note 10. Debt , the Company issued certain convertible senior notes in November 2021, and the accounting for these instruments was based on the guidance in ASU 2020-06. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” Subject to meeting certain criteria, the new guidance provides optional expedients and exceptions to applying contract modification accounting under existing U.S. GAAP, to address the expected phase out of the London Interbank Offered Rate (“LIBOR”). This ASU is effective for all entities upon issuance as of March 12, 2020 through December 31, 2022. In January 2021, the FASB also issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which provides additional optional expedients and exceptions applicable to all entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This ASU is effective for all entities upon issuance as of January 7, 2021 through December 31, 2022. We have reviewed all our financial agreements that utilize LIBOR as the reference rate and determined there is no material impact to our interim condensed consolidated financial statements as of March 31, 2022. Throughout the remaining effective period for ASU 2020-04 and ASU 2021-01, we will continue to evaluate the available relief measures within each of these amendments and will determine any impact on our consolidated financial statements and disclosures, as applicable. Business Combinations In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities, such as deferred revenue, acquired in a business combination to be recognized and measured in accordance with Topic 606 (Revenue from Contracts with Customers). ASU 2021-08 is expected to reduce diversity in practice and increase comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The ASU is effective for fiscal years beginning after December 15, 2022 and should be applied prospectively to acquisitions occurring on or after the effective date. Early adoption is permitted, including for interim periods, and is applicable to all business combinations for which the acquisition date occurs within the beginning of the fiscal year of adoption. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures. Financial Instruments - Credit Losses In March 2022, the FASB issued ASU 2022-02, “Financial Instruments— Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosure” which addresses areas identified by the FASB as part of its post-implementation review of the current expected credit losses model or “CECL” previously issued in ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326)”. The amendments in this ASU eliminate the accounting guidance for troubled debt restructurings by creditors while enhancing the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases in the vintage disclosures. For entities that have adopted ASU 2016-13, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted if an entity has adopted ASU 2016-13. Amendments in this ASU should be applied prospectively except for the transition method related to the accounting for troubled debt restructurings in which an entity has the option to apply a modified retrospective transition method resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. We are in the process of evaluating the impact of adopting this accounting standard update on our consolidated financial statements and disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Prior Period Adjustments Error Corrections | The following table provides the impact of the correction on our consolidated balance sheet as of June 30, 2021, as presented below (in thousands): As of June 30, 2021 As Previously Reported Adjustments As Corrected Accrued expenses and other liabilities 317,951 5,626 323,577 Total liabilities 2,285,814 5,626 2,291,440 Additional paid in capital 3,462,762 4,474 3,467,236 Accumulated deficit (888,381) (10,104) (898,485) Accumulated other comprehensive income 6,769 4 6,773 Total stockholders’ equity 2,581,153 (5,626) 2,575,527 Three Months Ended March 31, 2021 As Previously Reported Adjustments As Corrected Consolidated Statement of Operations and Comprehensive Loss Processing and servicing 21,335 33 21,368 Technology and data analytics 98,728 6,078 104,806 Sales and marketing 57,549 635 58,184 General and administrative 146,853 33,146 179,999 Total Operating Expenses 400,121 39,892 440,013 Loss Before Income Taxes (247,229) (39,892) (287,121) Net Loss Attributable to Common Stockholders (247,159) (39,892) (287,051) Net loss per share attributable to common stockholders for Class A and Class B: Basic $ (1.06) $ (0.17) $ (1.23) Diluted $ (1.06) $ (0.17) $ (1.23) Nine Months Ended March 31, 2021 As Previously Reported Adjustments As Corrected Consolidated Statement of Operations and Comprehensive Loss Processing and servicing 51,635 33 51,668 Technology and data analytics 174,130 6,078 180,208 Sales and marketing 119,243 635 119,878 General and administrative 220,042 33,146 253,188 Total Operating Expenses 838,206 39,892 878,098 Loss Before Income Taxes (277,610) (39,892) (317,502) Net Loss Attributable to Common Stockholders (277,715) (39,892) (317,607) Net loss per share attributable to common stockholders for Class A and Class B: Basic $ (2.27) $ (0.33) $ (2.60) Diluted $ (2.48) $ (0.32) $ (2.80) Three Months Ended March 31, 2021 As Previously Reported Adjustments As Corrected Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) Stock-based compensation - Additional Paid-In Capital 146,314 41,569 187,883 Net Loss - Accumulated Deficit (247,159) (39,892) (287,051) Balance as of March 31, 2021 - Total Stockholders' Equity 2,404,021 1,677 2,405,698 Nine Months Ended March 31, 2021 As Previously Reported Adjustments As Corrected Consolidated Statement of Cash Flows Cash Flows from Operating Activities Net Loss (277,715) (39,892) (317,607) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 152,471 39,892 192,363 Net Cash Used in Operating Activities (173,217) — (173,217) |
Interest Income (Tables)
Interest Income (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Interest Income | Interest income consisted of the following components (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Interest income on unpaid principal balance $ 95,253 $ 65,921 $ 266,868 162,666 Amortization of discount on loans 45,443 31,625 138,853 68,843 Amortization of premiums on loans (3,407) (2,373) (9,139) (6,449) Interest receivable charged-off, net of recoveries (2,690) (643) (6,326) (2,436) Total interest income $ 134,599 $ 94,530 $ 390,256 $ 222,624 |
Loans Held for Investment and_2
Loans Held for Investment and Allowance for Credit Losses (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Loans Held for Investment and Allowance for Credit Loss | Loans held for investment consisted of the following (in thousands): March 31, 2022 June 30, 2021 Unpaid principal balance $ 2,528,197 $ 2,058,863 Accrued interest receivable 20,390 15,466 Premiums on loans held for investment 8,580 7,071 Less: Discount due to loss on loan purchase commitment (1) (29,196) (53,177) Less: Discount due to loss on self-originated loans (1) (20,305) — Less: Fair value adjustment on loans acquired through business combination (4,806) (5,903) Total loans held for investment $ 2,502,860 $ 2,022,320 |
Schedule of Credit Quality by ITACs Score | The following table presents an analysis of the credit quality, by ITACs score, of the amortized cost basis by fiscal year of origination on loans held for investment and loans held for sale (in thousands) as of March 31, 2022: Amortized Costs Basis by Fiscal Year of Origination 2022 2021 2020 2019 2018 Prior Total 96+ $ 1,162,905 $ 201,085 $ 44,799 $ 598 $ 1 $ — $ 1,409,388 94 – 96 549,083 33,978 1,192 35 2 — 584,290 90 – 94 219,475 12,631 77 4 — — 232,187 <90 59,324 426 3 — — — 59,753 No score (1) 165,593 29,002 5,115 626 127 7 200,470 Total loan receivables $ 2,156,380 $ 277,122 $ 51,186 $ 1,263 $ 130 $ 7 $ 2,486,088 (1) This balance represents loan receivables in new markets without sufficient data currently available for use by the Affirm scoring methodology including loan receivables originated in Canada and Australia. Net Charge-offs by Fiscal Year of Origination 2022 2021 2020 2019 2018 Prior Total Current period charge-offs (50,207) (16,790) (250) (32) (1) — (67,280) Current period recoveries 2,080 2,479 777 669 250 190 6,445 Current period net charge-offs $ (48,127) $ (14,311) $ 527 $ 637 $ 249 $ 190 $ (60,835) |
Schedule of Delinquent Financing Receivables | The following table presents an aging analysis of the amortized cost basis of loans held for investment and loans held for sale by delinquency status (in thousands): March 31, 2022 June 30, 2021 Non-delinquent loans $ 2,330,666 $ 1,939,976 4 – 29 calendar days past due 63,010 43,838 30 – 59 calendar days past due 33,471 17,267 60 – 89 calendar days past due 30,231 12,044 90 – 119 calendar days past due 28,710 6,759 Total amortized cost basis $ 2,486,088 $ 2,019,884 |
Schedule of Loans Held for Investment and Allowance for Credit Loss | The following table details activity in the allowance for credit losses (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Balance at beginning of period $ 158,289 $ 124,992 117,760 95,137 Adjustment due to adoption of new accounting standard — — — 10,083 Provision for credit losses 62,021 (993) 172,720 39,190 Charge-offs (67,280) (14,537) (145,307) (40,377) Recoveries of charged-off receivables 6,445 4,292 14,302 9,721 Balance at end of period $ 159,475 $ 113,754 159,475 113,754 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Acquisition Consideration Transferred | The acquisition date fair value of the consideration transferred was approximately $40.0 million, which consisted of the following (in thousands): Cash $ 30,000 Fair value of Class A common stock transferred 10,000 Total acquisition date fair value of the consideration transferred $ 40,000 The acquisition date fair value of the consideration transferred was approximately $24.8 million which consisted of the following (in thousands): Cash $ 26,000 Less: Fair value of contingent consideration asset $ (1,241) Total acquisition date fair value of consideration transferred $ 24,759 The acquisition date fair value of the consideration transferred for Returnly was approximately $286.0 million, which consisted of the following (in thousands): Cash $ 71,484 Fair value of common stock transferred 214,475 Total acquisition date fair value of consideration transferred $ 285,959 The acquisition date fair value of the consideration transferred for PayBright was approximately $288.8 million, which consisted of the following (in thousands): Cash $ 114,490 Fair value of common stock transferred 116,989 Fair value of contingent consideration 57,275 Total purchase price $ 288,754 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the consideration paid of approximately $40.0 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Intangible assets $ 9,488 Total net assets acquired 9,488 Goodwill 30,512 Total purchase price $ 40,000 The following table summarizes the allocation of the consideration paid of approximately $24.8 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Intangible assets $ 6,975 Net assets acquired 6,975 Goodwill $ 17,784 Total purchase price $ 24,759 The following table summarizes the allocation of the fair value of the consideration paid and the previously held equity interest of approximately $288.1 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash and cash equivalents $ 3,788 Accounts receivable, net 9,585 Property, equipment and software 127 Intangible assets 45,900 Other assets 1,830 Total assets acquired $ 61,230 Accounts payable 594 Accrued expenses and other liabilities 6,205 Total liabilities assumed $ 6,799 Net assets acquired $ 54,431 Goodwill 233,623 Total fair value of consideration transferred and previously held investment $ 288,054 The following table summarizes the allocation of the consideration paid of approximately $288.8 million to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): Cash and cash equivalents $ 8,219 Restricted cash 1,469 Loans held for investment 89,570 Accounts receivable, net 1,537 Property, equipment and software, net 586 Intangible assets 16,653 Other assets 5,651 Total assets acquired $ 123,685 Accounts payable 6,579 Accrued interest payable 23 Accrued expenses and other liabilities 193 Funding debt 85,310 Total liabilities assumed $ 92,105 Net assets acquired $ 31,580 Goodwill 257,174 Total purchase price $ 288,754 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Developed technology $ 9,488 3.0 Fair Value Useful Life Developed technology $ 6,900 3.0 Trademarks 75 1.0 Total intangible assets $ 6,975 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands): Fair Value Useful Life Developed technology $ 16,200 3.0 Merchant relationships 29,200 5.0 Trade name 500 1.0 Total intangible assets $ 45,900 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands) Fair Value Useful Life Developed technology $ 6,127 3.0 Merchant relationships 9,505 4.0 Trade name 1,021 5.0 Total intangible assets $ 16,653 |
Schedule of Pro Forma Consolidated Total Revenues and Net Loss | The following table reflects the pro forma consolidated total revenue and net loss for the periods presented as if the acquisition of Returnly had occurred on July 1, 2019 and combines the historical results of Affirm and Returnly. This supplemental unaudited pro forma information is based upon accounting estimates and judgments that we believe are reasonable and includes certain adjustments to conform accounting standards to U.S. GAAP. This supplemental unaudited pro forma financial information has been prepared for illustrative purposes only and is not necessarily indicative of what actual results would have occurred, or of results that may occur in the future. Three Months Ended Nine Months Ended 2021 2021 Revenue $ 234,271 $ 618,356 Net loss $ (291,597) $ (329,540) The following table reflects the pro forma consolidated total revenue and net loss for the periods presented as if the acquisition of PayBright had occurred on July 1, 2019 and combines the historical results of Affirm and PayBright. This supplemental unaudited pro forma information is based upon accounting estimates and judgments that we believe are reasonable and includes certain adjustments to conform accounting standards to U.S. GAAP. This supplemental unaudited pro forma financial information has been prepared for illustrative purposes only and is not necessarily indicative of what actual results would have occurred, or of results that may occur in the future. Nine Months Ended 2021 Revenue $ 617,340 Net loss $ (347,511) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the nine months ended March 31, 2022 were as follows (in thousands): Balance as of June 30, 2021 $ 516,515 Additions 33,410 Effect of foreign currency translation (2,532) Balance as of March 31, 2022 $ 547,393 |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following (in thousands): March 31, 2022 Gross Accumulated Amortization Net Weighted Average Remaining Useful Life Merchant relationships $ 38,657 $ (8,335) $ 30,322 3.8 Developed technology 39,967 (12,715) 27,252 2.2 Trademarks and domains, definite 1,538 (718) 820 2.8 Trademarks and domains, indefinite 2,146 — 2,146 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 82,658 $ (21,768) $ 60,890 June 30, 2021 Gross Accumulated Amortization Net Weighted Average Merchant relationships $ 38,951 $ (2,192) $ 36,759 4.5 Developed technology 30,176 (2,930) 27,246 2.8 Trademarks and domains (1) 3,769 (194) 3,575 3.3 Other intangibles 350 — 350 Indefinite Total intangible assets $ 73,246 $ (5,316) $ 67,930 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consisted of the following (in thousands): March 31, 2022 Gross Accumulated Amortization Net Weighted Average Remaining Useful Life Merchant relationships $ 38,657 $ (8,335) $ 30,322 3.8 Developed technology 39,967 (12,715) 27,252 2.2 Trademarks and domains, definite 1,538 (718) 820 2.8 Trademarks and domains, indefinite 2,146 — 2,146 Indefinite Other intangibles 350 — 350 Indefinite Total intangible assets $ 82,658 $ (21,768) $ 60,890 June 30, 2021 Gross Accumulated Amortization Net Weighted Average Merchant relationships $ 38,951 $ (2,192) $ 36,759 4.5 Developed technology 30,176 (2,930) 27,246 2.8 Trademarks and domains (1) 3,769 (194) 3,575 3.3 Other intangibles 350 — 350 Indefinite Total intangible assets $ 73,246 $ (5,316) $ 67,930 |
Schedule of Intangible Assets, Future Amortization Expense | The expected future amortization expense of these intangible assets as of March 31, 2022 is as follows (in thousands): 2022 (remaining three months) $ 5,406 2023 21,416 2024 19,287 2025 7,274 2026 and thereafter 5,011 Total amortization expense $ 58,394 |
Schedule of Other Assets | Other assets consisted of the following (in thousands): March 31, 2022 June 30, 2021 Operating lease right-of-use assets $ 52,391 $ 57,828 Derivative instruments 43,437 2,880 Prepaid payroll taxes for stock-based compensation 35,172 111,278 Equity securities, at cost 33,172 11,278 Prepaid expenses 23,271 21,069 Processing reserves 21,240 14,042 Other receivables 15,055 26,423 Other assets 6,713 29,881 Total other assets $ 230,451 $ 274,679 |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands) March 31, 2022 June 30, 2021 Contingent consideration liability $ 119,008 $ 153,447 Operating lease liability 67,905 74,952 Collateral held for derivative instruments 44,859 2,780 Accrued expenses 44,493 47,674 Commercial agreement liability — 25,357 Other liabilities 37,042 19,367 Total accrued expenses and other liabilities $ 313,307 $ 323,577 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Term and Discount Rate | Lease term and discount rate information are summarized as follows: March 31, 2022 Weighted average remaining lease term (in years) 5.2 Weighted average discount rate 4.6% |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of March 31, 2022 are as follows (in thousands) for the years ended: 2022 (remaining three months) $ 4,075 2023 15,832 2024 15,812 2025 16,119 2026 and thereafter 25,638 Total lease payments 77,476 Less imputed interest (9,571) Present value of lease liabilities $ 67,905 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Funding Debt and Aggregate Future Maturities | Funding debt and its aggregate future maturities consists of the following (in thousands): March 31, 2022 June 30, 2021 2022 $ 208,468 $ 104,159 2023 — 460,289 2024 393,480 22,705 2025 — — 2026 and thereafter 308,858 102,203 Total $ 910,806 $ 689,356 Deferred debt issuance costs (9,573) (8,754) Total funding debt, net of deferred debt issuance costs $ 901,233 $ 680,602 |
Schedule of Long-term Debt Instruments | The convertible senior notes outstanding as of March 31, 2022 consisted of the following (in thousands): Principal Amount Unamortized Discount and Issuance Cost Net Carrying Amount Convertible Senior Notes $ 1,725,000 $ (19,376) $ 1,705,624 |
Securitization and Variable I_2
Securitization and Variable Interest Entities (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Carrying Value of Financial Assets and Liabilities from VIEs | The following tables present the aggregate carrying value of financial assets and liabilities from our involvement with consolidated VIEs. March 31, 2022 Assets Liabilities Net Assets Warehouse credit facilities $ 839,670 $ 751,419 $ 88,251 Securitizations 1,561,401 1,448,913 112,488 Total consolidated VIEs $ 2,401,071 $ 2,200,332 $ 200,739 June 30, 2021 Assets Liabilities Net Assets Warehouse credit facilities $ 688,197 $ 614,882 $ 73,315 Securitizations 1,115,427 1,178,545 (63,118) Total consolidated VIEs $ 1,803,624 $ 1,793,427 $ 10,197 |
Schedule of Variable Interest Entities | The following tables present the aggregate carrying value of financial assets and liabilities for unconsolidated VIEs where we hold a variable interest but are not the primary beneficiary: March 31, 2022 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 817,633 $ 766,651 $ 50,982 $ 44,092 Total unconsolidated VIEs $ 817,633 $ 766,651 $ 50,982 $ 44,092 June 30, 2021 Assets Liabilities Net Assets Maximum Exposure to Losses Securitizations $ 305,414 $ 304,567 $ 847 $ 16,850 Total unconsolidated VIEs $ 305,414 $ 304,567 $ 847 $ 16,850 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Marketable Securities | Marketable securities include certain investments classified as cash and cash equivalents and securities available for sale, at fair value, and consist of the following as of each date presented within the interim condensed consolidated balance sheets (in thousands): March 31, 2022 June 30, 2021 Cash and cash equivalents: Money market funds $ 1,461,956 $ 143,241 Corporate bonds 854 — Commercial paper 73,689 — Securities, available for sale: Certificates of deposit 54,048 — Corporate bonds 185,432 — Commercial paper 133,437 — Government bonds Non-US 35,775 — US 165,624 — Securitization notes receivable and certificates (1) 42,707 16,170 Total marketable securities: $ 2,153,522 $ 159,411 (1) These securities have been pledged as collateral in connection with sale and repurchase agreements as discussed within Note 10. Debt. |
Unrealized Gain (Loss) on Investments | The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of March 31, 2022 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Certificates of deposit (1) $ 54,168 $ 27 $ (147) $ — $ 54,048 Corporate bonds (1) 187,580 5 (1,299) — 186,286 Commercial paper (1) 207,302 11 (187) — 207,126 Government bonds Non-US (1) 36,008 — (233) — 35,775 US 166,285 — (661) — 165,624 Securitization notes receivable and certificates (2) 43,394 — (557) (130) 42,707 Total securities available for sale $ 694,737 $ 43 $ (3,084) $ (130) $ 691,566 (1) Certificates of deposit, corporate bonds, non-US government bonds and commercial paper include $74.5 million classified as cash and cash equivalents within the interim condensed consolidated balance sheets. (2) These securities have been pledged as collateral in connection with sale and repurchase agreements as discussed within Note 10. Debt The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of June 30, 2021 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Securitization notes receivable and certificates $ 16,144 $ 29 $ — $ (3) $ 16,170 Total securities available for sale $ 16,144 $ 29 $ — $ (3) $ 16,170 |
Schedule of Available-for-sale Securities with Unrealized Losses | A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time that individual securities have been in a continuous loss position as of March 31, 2022 , is as follows: Less than or equal to 1 year Greater than 1 year Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Certificates of deposit $ 29,846 $ (147) $ — $ — $ 29,846 $ (147) Corporate bonds 177,798 (1,299) — — 177,798 (1,299) Commercial paper 126,289 (187) — — 126,289 (187) Government bonds Non-US 35,775 (233) — — 35,775 (233) US 165,624 (661) — — 165,624 (661) Securitization notes receivable and certificates 42,707 (557) — — 42,707 (557) Total securities available for sale (1) $ 578,039 $ (3,084) $ — $ — $ 578,039 $ (3,084) (1) The number of positions with unrealized losses as of March 31, 2022 totaled 113. |
Schedule of Length of Contractual Maturities of Securities Available for Sale | The length of time to contractual maturities of securities available for sale as of March 31, 2022 , were as follows: Within 1 year Greater than 1 year, less than or equal to 5 years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Certificates of deposit $ 54,168 $ 54,048 $ — $ — $ 54,168 $ 54,048 Corporate bonds 153,996 153,310 33,584 32,976 187,580 186,286 Commercial paper 207,302 207,126 — — 207,302 207,126 Government bonds Non-US 31,762 31,656 4,246 4,119 36,008 35,775 US 166,285 165,624 — — 166,285 165,624 Securitization notes receivable and certificates (1) 32,067 31,510 11,327 11,197 43,394 42,707 Total securities available for sale $ 645,580 $ 643,274 $ 49,157 $ 48,292 $ 694,737 $ 691,566 (1) Based on weighted average life of expected cash flows as of March 31, 2022. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Fair Value Measured on Recurring Basis | The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2022 (in thousands): Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 1,461,956 $ — $ — $ 1,461,956 Corporate bonds — 852 — 852 Commercial paper — 73,689 — 73,689 Restricted cash: Securities available for sale: Certificate of deposit — 54,048 — 54,048 Corporate bonds — 185,434 — 185,434 Commercial paper — 133,437 — 133,437 Government bonds: Non-U.S. — 35,775 — 35,775 U.S. — 165,624 — 165,624 Securitization notes receivable and residual trust certificates — — 42,707 42,707 Total securities available for sale — 574,318 42,707 617,025 Servicing assets — — 4,620 4,620 Derivative instruments — 43,437 — 43,437 Total assets $ 1,461,956 $ 692,296 $ 47,327 $ 2,201,579 Liabilities: Servicing liabilities $ — $ — $ 5,606 $ 5,606 Performance fee liability — — 1,584 1,584 Residual trust certificates, held by third-parties — — 489 489 Contingent consideration — — 119,008 119,008 Profit share liability — — 1,878 1,878 Total liabilities $ — $ — $ 128,565 $ 128,565 The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents: Money market funds $ 143,241 $ — $ — $ 143,241 Restricted cash: Securitization notes receivable and residual trust certificates — — 16,170 16,170 Servicing assets — — 2,349 2,349 Derivative instruments — 2,880 — 2,880 Total assets $ 143,241 $ 2,880 $ 18,519 $ 164,640 Liabilities: Servicing liabilities $ — $ — $ 3,961 $ 3,961 Performance fee liability — — 1,290 1,290 Residual trust certificates, held by third-parties — — 914 914 Contingent consideration — — 153,447 153,447 Profit share liability — — 2,464 2,464 Total liabilities $ — $ — $ 162,076 $ 162,076 |
Schedule of Servicing Assets at Fair Value | The following table summarizes the activity related to the aggregate fair value of our servicing assets (in thousands): Servicing Assets Three Months Ended March 31, Nine Months Ended 2022 2021 2022 2021 Fair value at beginning of period $ 2,178 $ 1,923 $ 2,349 $ 2,132 Initial transfers of financial assets 1,991 202 3,105 1,732 Subsequent changes in fair value 451 (5) (834) (1,744) Fair value at end of period $ 4,620 $ 2,120 $ 4,620 $ 2,120 |
Schedule of Servicing Liabilities at Fair Value | The following table summarizes the activity related to the aggregate fair value of our servicing liabilities (in thousands): Servicing Liabilities Three Months Ended March 31, Nine Months Ended 2022 2021 2022 2021 Fair value at beginning of period $ 8,626 $ 2,826 $ 3,961 $ 1,540 Initial transfers of financial assets 2,940 1,972 13,826 5,185 Subsequent changes in fair value (5,960) (2,550) (12,181) (4,477) Fair value at end of period $ 5,606 $ 2,248 $ 5,606 $ 2,248 |
Schedule of Significant Unobservable Inputs for Level 3 Fair Value Measurement | The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.84 % 1.65 % 1.29 % Net default rate 0.87 % 9.25 % 4.56 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 2.12 % 4.26 % 3.13 % Net default rate 1.50 % 29.18 % 13.76 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of servicing assets and liabilities as of June 30, 2021: Unobservable Input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 0.70 % 0.84 % 0.81 % Net default rate 0.53 % 0.95 % 0.64 % Servicing liabilities Discount rate 30.00 % 30.00 % 30.00 % Adequate compensation (1) 1.29 % 3.70 % 2.71 % Net default rate 0.80 % 8.42 % 7.12 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.78% 2.98% 2.30% The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the performance fee liability as of June 30, 2021: Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Refund rate 4.50% 4.50% 4.50% Default rate 1.78% 2.83% 1.80% The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates held by third-parties as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 10.00% 10.00% 10.00% Loss rate 0.75% 0.75% 0.75% Prepayment rate 8.00% 8.00% 8.00% The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the residual trust certificates as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 2.13% 20.25% 3.81% Loss rate 0.61% 10.95% 4.15% Prepayment rate 5.25% 35.00% 23.45% The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the contingent consideration as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 13.00% 13.00% 13.00% Equity volatility 19.00% 103.00% 86.00% Revenue volatility 11.00% 134.00% 33.00% The following table presents quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the profit sharing liability as of March 31, 2022: Unobservable Input Minimum Maximum Weighted Average Discount rate 30.00% 30.00% 30.00% Program profitability 1.25% 3.54% 1.26% |
Schedule of Sensitivity Analysis of Fair Value, Servicing Assets and Liabilities | The following table summarizes the effect that adverse changes in estimates would have on the fair value of the servicing assets and liabilities given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2022 June 30, 2021 Servicing assets Net default rate assumption: Net default rate increase of 25% $ (41) $ (7) Net default rate increase of 50% $ (75) $ (15) Adequate compensation assumption: Adequate compensation increase of 25% $ (4,587) $ (2,006) Adequate compensation increase of 50% $ (9,173) $ (4,011) Discount rate assumption: Discount rate increase of 25% $ (64) $ (4) Discount rate increase of 50% $ (129) $ (1) Servicing liabilities Net default rate assumption: Net default rate increase of 25% $ (26) $ (40) Net default rate increase of 50% $ (49) $ (61) Adequate compensation assumption: Adequate compensation increase of 25% $ 4,370 $ 3,060 Adequate compensation increase of 50% $ 8,739 $ 6,119 Discount rate assumption: Discount rate increase of 25% $ (512) $ (137) Discount rate increase of 50% $ (663) $ (263) |
Summary of Activity for Liabilities With Significant Unobservable Inputs for Fair Value | The following table summarizes the activity related to the fair value of the performance fee liability (in thousands): Performance Fee Liability Three Months Ended March 31, Nine Months Ended 2022 2021 2022 2021 Fair value at beginning of period $ 1,530 $ 1,205 $ 1,290 $ 875 Purchases of loans 432 349 1,265 1,070 Settlements Paid (418) — (418) — Subsequent changes in fair value 40 (312) (553) (703) Fair value at end of period $ 1,584 $ 1,242 $ 1,584 $ 1,242 The following table summarizes the activity related to the fair value of the residual trust certificates held by third-parties (in thousands): Three Months Ended Nine Months Ended Fair value at beginning of period $ 619 $ 914 Repayments (146) (549) Subsequent changes in fair value 16 124 Fair value at end of period $ 489 $ 489 The following table summarizes the activity related to the fair value of the residual trust certificates during the three and nine months ended March 31, 2022 (in thousands): Three Months Ended March 31, 2022 Nine Months Ended March 31, 2022 Fair value at beginning of period $ 25,319 $ 16,170 Additions 22,067 35,762 Cash received (due to payments or sales) (4,414) (8,798) Change in unrealized loss (402) (586) Accrued interest 215 285 Reversal of (impairment on) securities available for sale (78) (126) Fair value at end of period $ 42,707 $ 42,707 The following table summarizes the activity related to the fair value of the PayBright contingent consideration during the three and nine months ended March 31, 2022 (in thousands): Three Months Ended Nine Months Ended Fair value at beginning of period $ 253,750 $ 153,447 Subsequent changes in fair value (136,248) (28,682) Effect of foreign currency translation 1,506 (5,757) Fair value at end of period $ 119,008 $ 119,008 The following table summarizes the activity related to the fair value of the profit share liability during the three and nine months ended March 31, 2022 (in thousands): Three Months Ended March 31, 2022 Nine Months Ended March 31, 2022 Fair value at beginning of period $ 2,053 $ 2,465 Facilitation of loans 1,098 4,672 Actual performance (2,918) (3,929) Subsequent changes in fair value 1,645 (1,330) Fair value at end of period $ 1,878 $ 1,878 |
Schedule Sensitivity Analysis of Fair Value, Residual Trust Certificates | The following table summarizes the effect that adverse changes in estimates would have on the fair value of the securitization residual certificates held by third-party investor(s) given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2022 Discount rate assumption: Discount rate increase of 25% $ (8) Discount rate increase of 50% $ (16) Loss rate assumption: Loss rate increase of 25% $ (12) Loss rate increase of 50% $ (23) Prepayment rate assumption: Prepayment rate decrease of 25% $ (3) Prepayment rate decrease of 50% $ (6) The following table summarizes the effect that adverse changes in estimates would have on the fair value of the securitization residual trust certificates given hypothetical changes in significant unobservable inputs (in thousands): March 31, 2022 Discount rate assumption: Discount rate increase of 25% $ (319) Discount rate increase of 50% $ (628) Loss rate assumption: Loss rate increase of 25% $ (298) Loss rate increase of 50% $ (588) Prepayment rate assumption: Prepayment rate decrease of 25% $ 53 Prepayment rate decrease of 50% $ 117 |
Fair Value Hierarchy for Financial Assets and Liabilities Not Recorded at Fair Value | The following table presents the fair value hierarchy for financial assets and liabilities not recorded at fair value as of March 31, 2022 (in thousands): Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 3,618 $ — $ 3,618 $ — $ 3,618 Loans held for investment, net 2,343,385 — — 2,410,903 2,410,903 Other assets 11,807 — 11,807 — 11,807 Total assets $ 2,358,810 $ — $ 15,425 $ 2,410,903 $ 2,426,328 Liabilities: Convertible senior notes, net (1) $ 1,705,624 $ — $ 1,213,020 $ — $ 1,213,020 Notes issued by securitization trusts 1,447,568 — — 1,406,390 1,406,390 Funding debt 910,806 — — 910,847 910,847 Total liabilities $ 4,063,998 $ — $ 1,213,020 $ 2,317,237 $ 3,530,257 (1) The estimated fair value of the convertible senior notes is determined based on a market approach, using the estimated or actual bids and offers of the notes in an over-the-counter market on the last business day of the period. The following table presents the fair value hierarchy for financial assets and liabilities not recorded at fair value as of June 30, 2021 (in thousands): Carrying Amount Level 1 Level 2 Level 3 Balance at Fair Value Assets: Loans held for sale $ 13,030 $ — $ 13,030 $ — $ 13,030 Loans held for investment, net 1,904,560 — — 1,883,364 1,883,364 Accounts receivable, net 91,575 — 91,575 — 91,575 Other assets 171,250 — 171,250 — 171,250 Total assets $ 2,180,415 $ — $ 275,855 $ 1,883,364 $ 2,159,219 Liabilities: Accounts payable $ 57,758 $ — $ 57,758 $ — $ 57,758 Payable to third-party loan owners 50,079 — 50,079 — 50,079 Accrued interest payable 2,751 — 2,751 — 2,751 Accrued expenses and other liabilities 161,502 — 159,387 2,115 161,502 Notes issued by securitization trusts 1,176,673 — — 1,184,663 1,184,663 Funding debt 689,356 — — 689,356 689,356 Total liabilities $ 2,138,119 $ — $ 269,975 $ 1,876,134 $ 2,146,109 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock and Stockholders’ Deficit (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock, Reserved for Future Issuance | The Company had shares of common stock reserved for issuance as follows: March 31, 2022 June 30, 2021 Available outstanding under stock option plan 46,442,672 58,417,514 Available for future grant under stock option plan 39,309,914 29,793,755 Total 85,752,586 88,211,269 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes our stock option activity for the nine months ended March 31, 2022: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balance as of June 30, 2021 31,662,750 $ 10.42 6.30 Granted 164,748 58.01 Exercised (12,986,539) 5.14 Forfeited, expired or cancelled (1,193,026) 23.59 Balance as of March 31, 2022 17,647,933 13.84 6.78 Vested and exercisable, March 31, 2022 11,118,698 $ 6.81 6.10 $ 442,482 Vested and exercisable, and expected to vest thereafter (1) March 31, 2022 17,195,165 $ 12.92 6.73 $ 586,036 (1) Options expected to vest reflect the application of an estimated forfeiture rate. |
Schedule of Restricted Stock Unit Activity | The following table summarizes our RSU activity during the nine months ended March 31, 2022: Number of Shares Weighted Average Grant Date Fair Value Non-vested as of June 30, 2021 14,242,111 $ 37.93 Granted 8,530,480 58.29 Vested (4,780,097) 37.69 Forfeited, expired or cancelled (1,640,873) 33.57 Non-vested as of March 31, 2022 16,351,621 $ 45.23 |
Schedule of Components and Classification of Stock-based Compensation | The following table presents the components and classification of stock-based compensation (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 General and administrative $ 58,100 $ 115,566 $ 187,789 $ 121,867 Technology and data analytics 33,639 52,058 75,133 56,827 Sales and marketing 5,998 10,568 15,655 11,909 Processing and servicing 650 1,447 1,536 1,760 Total stock-based compensation in operating expenses 98,387 179,639 280,113 192,363 Capitalized into property, equipment and software, net 14,618 6,567 39,691 7,792 Total stock-based compensation expense $ 113,005 $ 186,206 $ 319,804 $ 200,155 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | The following tables present basic and diluted net loss per share attributable to common stockholders for Class A and Class B common stock (in thousands, except share and per share data): Three Months Ended March 31, 2022 Nine Months Ended March 31, 2022 Class A Class B Class A Class B Numerator: Basic and Diluted Net Loss $ (43,061) $ (11,610) $ (389,424) $ (131,597) Net Loss Attributable to Common Stockholders $ (43,061) $ (11,610) $ (389,424) $ (131,597) Denominator: Basic Weighted average shares outstanding, basic 224,980,598 60,661,222 208,957,734 70,612,281 Total-basic 224,980,598 60,661,222 208,957,734 70,612,281 Diluted Weighted average common shares outstanding, diluted 224,980,598 60,661,222 208,957,734 70,612,281 Total-diluted 224,980,598 60,661,222 208,957,734 70,612,281 Net loss per share attributable to common stockholders: Basic $ (0.19) $ (0.19) $ (1.86) $ (1.86) Diluted $ (0.19) $ (0.19) $ (1.86) $ (1.86) Three Months Ended March 31, 2021 Nine Months Ended March 31, 2021 Class A Class B Class A Class B Numerator: Basic Net Loss $ (150,953) $ (136,098) $ (152,148) $ (165,459) Net Loss Attributable to Common Stockholders $ (150,953) $ (136,098) $ (152,148) $ (165,459) Diluted Net Loss $ (150,953) $ (136,098) $ (152,148) $ (165,459) Excess return to preferred stockholders on repurchase — — (14,428) (15,677) Gain on conversion of convertible debt — — 191 207 Interest on convertible debt prior to conversion — — 859 933 Net Loss Attributable to Common Stockholders $ (150,953) $ (136,098) $ (165,526) $ (179,996) Denominator: Basic Weighted average shares outstanding, basic 122,691,770 110,617,820 58,520,980 63,640,528 Total-basic 122,691,770 110,617,820 58,520,980 63,640,528 Diluted Weighted average common shares outstanding, diluted 122,691,770 110,617,820 58,520,980 63,640,528 Weighted average common shares attributable to convertible debt prior to conversion — — 583,925 583,925 Total-diluted 122,691,770 110,617,820 59,104,905 64,224,453 Net loss per share attributable to common stockholders: Basic $ (1.23) $ (1.23) $ (2.60) $ (2.60) Diluted $ (1.23) $ (1.23) $ (2.80) $ (2.80) |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following common stock equivalents, presented based on amounts outstanding, were excluded from the calculation of diluted net loss per share attributable to common stockholders because their inclusion would have been anti-dilutive: As of March 31, 2022 2021 Stock options, including early exercise of options 17,195,165 33,342,527 Restricted stock units 16,351,621 13,975,457 Common stock warrants 5,909,896 350,000 Employee stock purchase plan shares 161,300 — Total 39,617,982 47,667,984 |
Segments and Geographical Inf_2
Segments and Geographical Information (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographical Area | The following table sets forth revenue by geographic area (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 United States $ 344,731 $ 224,863 $ 956,789 $ 603,048 Canada 9,975 5,802 28,282 5,636 Other 56 — 87 — Total $ 354,762 $ 230,665 $ 985,158 $ 608,684 |
Long-lived Assets by Geographic Areas | The following table sets forth our long-lived assets, consisting of property, equipment and software, net and operating lease right-of-use assets, by geographic area (in thousands): March 31, 2022 June 30, 2021 United States $ 190,659 $ 118,076 Canada 3,240 2,251 Other $ 150 $ — Total $ 194,049 $ 120,327 |
Business Description (Details)
Business Description (Details) | 9 Months Ended |
Mar. 31, 2022 | |
Minimum | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan lending terms | 1 month |
Maximum | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loan lending terms | 60 months |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Accrued expenses and other liabilities | $ 313,307 | $ 313,307 | $ 323,577 | ||
Additional paid in capital | 3,987,881 | 3,987,881 | 3,467,236 | ||
Advertising costs | $ 12,200 | $ 9,100 | $ 55,600 | $ 24,400 | |
Restricted stock units | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Estimated fair value of RSUs grated | 40,000 | 40,000 | |||
Adjustments | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Accrued expenses and other liabilities | 5,626 | ||||
Additional paid in capital | $ 4,474 | ||||
Adjustments | Restricted stock units | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Estimated fair value of RSUs grated | $ 25,000 | $ 25,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Immaterial Correction of Prior Period Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Accrued expenses and other liabilities | $ 313,307 | $ 323,577 | ||||||
Total liabilities | 4,455,671 | 2,291,440 | ||||||
Additional paid in capital | 3,987,881 | 3,467,236 | ||||||
Accumulated deficit | (1,419,506) | (898,485) | ||||||
Accumulated other comprehensive income | 7,677 | 6,773 | ||||||
Total stockholders’ equity | $ 2,576,055 | $ 2,468,322 | $ 2,377,359 | 2,575,527 | $ 2,405,698 | $ (343,309) | $ (346,764) | $ (367,096) |
As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Accrued expenses and other liabilities | 317,951 | |||||||
Total liabilities | 2,285,814 | |||||||
Additional paid in capital | 3,462,762 | |||||||
Accumulated deficit | (888,381) | |||||||
Accumulated other comprehensive income | 6,769 | |||||||
Total stockholders’ equity | 2,581,153 | 2,404,021 | ||||||
Adjustments | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Accrued expenses and other liabilities | 5,626 | |||||||
Total liabilities | 5,626 | |||||||
Additional paid in capital | 4,474 | |||||||
Accumulated deficit | (10,104) | |||||||
Accumulated other comprehensive income | 4 | |||||||
Total stockholders’ equity | $ (5,626) | $ 1,677 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Consolidated Statement of Operations and Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Expenses | ||||||||
Processing and servicing | $ 43,371 | $ 21,368 | $ 110,421 | $ 51,668 | ||||
Technology and data analytics | 110,291 | 104,806 | 283,293 | 180,208 | ||||
Sales and marketing | 156,214 | 58,184 | 363,650 | 119,878 | ||||
General and administrative | 142,466 | 179,999 | 419,962 | 253,188 | ||||
Total Operating Expenses | 581,313 | 440,013 | 1,573,980 | 878,098 | ||||
Loss Before Income Taxes | (54,412) | (287,121) | (520,315) | (317,502) | ||||
Net Loss | $ (54,671) | $ (159,735) | $ (306,615) | $ (287,051) | $ (26,610) | $ (3,946) | $ (521,021) | $ (317,607) |
Net loss per share attributable to common stockholders for Class A and Class B | ||||||||
Basic (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.60) | ||||
Diluted (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.80) | ||||
As Previously Reported | ||||||||
Operating Expenses | ||||||||
Processing and servicing | $ 21,335 | $ 51,635 | ||||||
Technology and data analytics | 98,728 | 174,130 | ||||||
Sales and marketing | 57,549 | 119,243 | ||||||
General and administrative | 146,853 | 220,042 | ||||||
Total Operating Expenses | 400,121 | 838,206 | ||||||
Loss Before Income Taxes | (247,229) | (277,610) | ||||||
Net Loss | $ (247,159) | $ (277,715) | ||||||
Net loss per share attributable to common stockholders for Class A and Class B | ||||||||
Basic (in USD per share) | $ (1.06) | $ (2.27) | ||||||
Diluted (in USD per share) | $ (1.06) | $ (2.48) | ||||||
Adjustments | ||||||||
Operating Expenses | ||||||||
Processing and servicing | $ 33 | $ 33 | ||||||
Technology and data analytics | 6,078 | 6,078 | ||||||
Sales and marketing | 635 | 635 | ||||||
General and administrative | 33,146 | 33,146 | ||||||
Total Operating Expenses | 39,892 | 39,892 | ||||||
Loss Before Income Taxes | (39,892) | (39,892) | ||||||
Net Loss | $ (39,892) | $ (39,892) | ||||||
Net loss per share attributable to common stockholders for Class A and Class B | ||||||||
Basic (in USD per share) | $ (0.17) | $ (0.33) | ||||||
Diluted (in USD per share) | $ (0.17) | $ (0.32) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation - Additional Paid-In Capital | $ 113,005 | $ 101,920 | $ 104,879 | $ 187,883 | $ 6,774 | $ 7,175 | ||||
Net Loss - Accumulated Deficit | (54,671) | (159,735) | (306,615) | (287,051) | (26,610) | (3,946) | $ (521,021) | $ (317,607) | ||
Total stockholders’ equity | $ 2,576,055 | $ 2,468,322 | $ 2,377,359 | 2,405,698 | $ (343,309) | $ (346,764) | $ 2,576,055 | 2,405,698 | $ 2,575,527 | $ (367,096) |
As Previously Reported | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation - Additional Paid-In Capital | 146,314 | |||||||||
Net Loss - Accumulated Deficit | (247,159) | (277,715) | ||||||||
Total stockholders’ equity | 2,404,021 | 2,404,021 | 2,581,153 | |||||||
Adjustments | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation - Additional Paid-In Capital | 41,569 | |||||||||
Net Loss - Accumulated Deficit | (39,892) | (39,892) | ||||||||
Total stockholders’ equity | $ 1,677 | $ 1,677 | $ (5,626) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||||||||
Net Loss | $ (54,671) | $ (159,735) | $ (306,615) | $ (287,051) | $ (26,610) | $ (3,946) | $ (521,021) | $ (317,607) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock-based compensation | 280,113 | 192,363 | ||||||
Net Cash Used in Operating Activities | $ (103,085) | (173,217) | ||||||
As Previously Reported | ||||||||
Cash Flows from Operating Activities | ||||||||
Net Loss | (247,159) | (277,715) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock-based compensation | 152,471 | |||||||
Net Cash Used in Operating Activities | (173,217) | |||||||
Adjustments | ||||||||
Cash Flows from Operating Activities | ||||||||
Net Loss | $ (39,892) | (39,892) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock-based compensation | 39,892 | |||||||
Net Cash Used in Operating Activities | $ 0 |
Interest Income - Schedule of I
Interest Income - Schedule of Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Banking and Thrift, Interest [Abstract] | ||||
Interest income on unpaid principal balance | $ 95,253 | $ 65,921 | $ 266,868 | $ 162,666 |
Amortization of discount on loans | 45,443 | 31,625 | 138,853 | 68,843 |
Amortization of premiums on loans | (3,407) | (2,373) | (9,139) | (6,449) |
Interest receivable charged-off, net of recoveries | (2,690) | (643) | (6,326) | (2,436) |
Interest income | $ 134,599 | $ 94,530 | $ 390,256 | $ 222,624 |
Interest Income - Additional In
Interest Income - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Banking and Thrift, Interest [Abstract] | ||
Period of suspended accrued interest past due | 120 days | |
Non-accrued loans held for investment | $ 1.5 | $ 1.1 |
Loans Held for Investment and_3
Loans Held for Investment and Allowance for Credit Losses - Loans Held for Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Receivables [Abstract] | ||
Unpaid principal balance | $ 2,528,197 | $ 2,058,863 |
Accrued interest receivable | 20,390 | 15,466 |
Premiums on loans held for investment | 8,580 | 7,071 |
Less: Discount due to loss on loan purchase commitment | (29,196) | (53,177) |
Less: Discount due to loss on self-originated loans | 20,305 | 0 |
Less: Fair value adjustment on loans acquired through business combination | (4,806) | (5,903) |
Loans held for investment | $ 2,502,860 | 2,022,320 |
Discount due to loss on self-originated loans | $ 6,200 |
Loans Held for Investment and_4
Loans Held for Investment and Allowance for Credit Losses - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans purchased | $ 3,013.8 | $ 2,031.2 | $ 8,631.2 | $ 5,620.8 |
Threshold period for delinquent loans past due | 4 days | 4 days | ||
Minimum | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan lending terms | 1 month | |||
Proprietary credit quality score | 0 | 0 | ||
Maximum | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan lending terms | 60 months | |||
Proprietary credit quality score | 100 | 100 |
Loans Held for Investment and_5
Loans Held for Investment and Allowance for Credit Losses - Credit Quality by ITACs Score (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | $ 2,156,380 | |
2021 | 277,122 | |
2020 | 51,186 | |
2019 | 1,263 | |
2018 | 130 | |
Prior | 7 | |
Loans held for investment | 2,486,088 | $ 2,019,884 |
2022 Current period charge-offs | (50,207) | |
2021 Current period charge-offs | (16,790) | |
2020 Current period charge-offs | (250) | |
2019 Current period charge-offs | (32) | |
2018 Current period charge-offs | (1) | |
Prior current period charge-offs | 0 | |
Total current period charge-offs | (67,280) | |
2022 Current period recoveries | 2,080 | |
2021 Current period recoveries | 2,479 | |
2020 Current period recoveries | 777 | |
2019 Current period recoveries | 669 | |
2018 Current period recoveries | 250 | |
Prior current period recoveries | 190 | |
Total current period recoveries | 6,445 | |
2022 Current period net charge-offs | (48,127) | |
2021 Current period net charge-offs | (14,311) | |
2020 Current period net charge-offs | 527 | |
2019 Current period net charge-offs | 637 | |
2018 Current period net charge-offs | 249 | |
Prior current period net charge-offs | 190 | |
Total current period net charge-offs | (60,835) | |
96+ | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 1,162,905 | |
2021 | 201,085 | |
2020 | 44,799 | |
2019 | 598 | |
2018 | 1 | |
Prior | 0 | |
Loans held for investment | 1,409,388 | |
94 – 96 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 549,083 | |
2021 | 33,978 | |
2020 | 1,192 | |
2019 | 35 | |
2018 | 2 | |
Prior | 0 | |
Loans held for investment | 584,290 | |
90 – 94 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 219,475 | |
2021 | 12,631 | |
2020 | 77 | |
2019 | 4 | |
2018 | 0 | |
Prior | 0 | |
Loans held for investment | 232,187 | |
Less than 90 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 59,324 | |
2021 | 426 | |
2020 | 3 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Loans held for investment | 59,753 | |
No score | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 165,593 | |
2021 | 29,002 | |
2020 | 5,115 | |
2019 | 626 | |
2018 | 127 | |
Prior | 7 | |
Loans held for investment | $ 200,470 |
Loans Held for Investment and_6
Loans Held for Investment and Allowance for Credit Losses - Unpaid Principal Balance for Loans Held for Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 2,502,860 | $ 2,022,320 |
Loans held for investment | 2,486,088 | 2,019,884 |
Non-delinquent loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 2,330,666 | 1,939,976 |
4 – 29 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 63,010 | 43,838 |
30 – 59 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 33,471 | 17,267 |
60 – 89 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 30,231 | 12,044 |
90 – 119 calendar days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 28,710 | $ 6,759 |
Loans Held for Investment and_7
Loans Held for Investment and Allowance for Credit Losses - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 158,289 | $ 124,992 | $ 117,760 | $ 95,137 |
Provision for credit losses | 62,021 | (993) | 172,720 | 39,190 |
Charge-offs | (67,280) | (14,537) | (145,307) | (40,377) |
Recoveries of charged-off receivables | 6,445 | 4,292 | 14,302 | 9,721 |
Ending balance | 159,475 | 113,754 | 159,475 | 113,754 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 10,083 |
Business Combination - Addition
Business Combination - Additional Information (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Jun. 01, 2021 | May 01, 2021 | Jan. 12, 2021 | Jan. 01, 2021 | Mar. 31, 2022 | Mar. 31, 2022 | Jun. 30, 2021 |
ShopBrain | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 30,000 | |||||||
Purchase price | 40,000 | |||||||
Transaction costs | $ 0 | $ 200 | ||||||
Net assets acquired | $ 40,000 | |||||||
ShopBrain | Class A common stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Common stock issued (in shares) | 151,745 | |||||||
Kite | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 26,000 | |||||||
Purchase price | 24,759 | |||||||
Transaction costs | $ 200 | |||||||
Escrow deposit | 9,000 | $ 9,000 | $ 9,000 | |||||
Net assets acquired | $ 24,759 | |||||||
Returnly | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 71,484 | |||||||
Common stock issued (in shares) | 2,989,697 | |||||||
Purchase price | $ 285,959 | |||||||
Transaction costs | 1,800 | |||||||
Percentage ownership prior to transaction | 1.00% | |||||||
Percentage ownership after transaction | 100.00% | |||||||
Common stock issued in escrow, subject to forfeiture (in shares) | 304,364 | |||||||
Equity interest | $ 2,100 | |||||||
Gain from equity interest | 1,600 | |||||||
Net assets acquired | $ 288,054 | |||||||
PayBright | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 114,490 | |||||||
Common stock issued (in shares) | 3,622,445 | |||||||
Purchase price | $ 288,754 | |||||||
Transaction costs | $ 2,400 | |||||||
Common stock issued in escrow, subject to forfeiture (in shares) | 2,587,362 | |||||||
Net assets acquired | $ 288,754 | |||||||
PayBright | Class A common stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Common stock issued (in shares) | 1,811,222 | |||||||
Common stock issued in escrow, subject to forfeiture (in shares) | 1,293,681 | |||||||
PayBright | Class B common stock | ||||||||
Business Acquisition [Line Items] | ||||||||
Common stock issued (in shares) | 1,811,222 | |||||||
Common stock issued in escrow, subject to forfeiture (in shares) | 1,293,681 |
Business Combination - Fair Val
Business Combination - Fair Value of Consideration Transferred (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Jun. 01, 2021 | May 01, 2021 | Jan. 01, 2021 |
ShopBrain | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 30,000 | |||
Fair value of Class A common stock transferred | 10,000 | |||
Total purchase price | $ 40,000 | |||
Kite | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 26,000 | |||
Less: Fair value of contingent consideration asset | (1,241) | |||
Total purchase price | $ 24,759 | |||
Returnly | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 71,484 | |||
Fair value of Class A common stock transferred | 214,475 | |||
Total purchase price | $ 285,959 | |||
PayBright | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 114,490 | |||
Fair value of Class A common stock transferred | 116,989 | |||
Fair value of contingent consideration | 57,275 | |||
Total purchase price | $ 288,754 |
Business Combination - Allocati
Business Combination - Allocation of Consideration Paid to Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jul. 01, 2021 | Jun. 30, 2021 | Jun. 01, 2021 | May 01, 2021 | Jan. 01, 2021 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 547,393 | $ 516,515 | ||||
ShopBrain | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 9,488 | |||||
Total assets acquired | 9,488 | |||||
Goodwill | 30,512 | |||||
Total purchase price | $ 40,000 | |||||
Kite | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 6,975 | |||||
Total assets acquired | 6,975 | |||||
Goodwill | 17,784 | |||||
Total purchase price | $ 24,759 | |||||
Returnly | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 3,788 | |||||
Accounts receivable, net | 9,585 | |||||
Property, equipment and software | 127 | |||||
Intangible assets | 45,900 | |||||
Other assets | 1,830 | |||||
Total assets acquired | 61,230 | |||||
Accounts payable | 594 | |||||
Accrued expenses and other liabilities | 6,205 | |||||
Total liabilities assumed | 6,799 | |||||
Net assets acquired | 54,431 | |||||
Goodwill | 233,623 | |||||
Total purchase price | $ 288,054 | |||||
PayBright | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 8,219 | |||||
Restricted cash | 1,469 | |||||
Loans held for investment | 89,570 | |||||
Accounts receivable, net | 1,537 | |||||
Property, equipment and software | 586 | |||||
Intangible assets | 16,653 | |||||
Other assets | 5,651 | |||||
Total assets acquired | 123,685 | |||||
Accounts payable | 6,579 | |||||
Accrued interest payable | 23 | |||||
Accrued expenses and other liabilities | 193 | |||||
Funding debt | 85,310 | |||||
Total liabilities assumed | 92,105 | |||||
Net assets acquired | 31,580 | |||||
Goodwill | 257,174 | |||||
Total purchase price | $ 288,754 |
Business Combination - Identifi
Business Combination - Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Jun. 01, 2021 | May 01, 2021 | Jan. 01, 2021 |
ShopBrain | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 9,488 | |||
Useful Life (in years) | 3 years | |||
Kite | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 6,975 | |||
Kite | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 6,900 | |||
Useful Life (in years) | 3 years | |||
Kite | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 75 | |||
Useful Life (in years) | 1 year | |||
Returnly | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 45,900 | |||
Returnly | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 16,200 | |||
Useful Life (in years) | 3 years | |||
Returnly | Merchant relationships | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 29,200 | |||
Useful Life (in years) | 5 years | |||
Returnly | Trade name | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 500 | |||
Useful Life (in years) | 1 year | |||
PayBright | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 16,653 | |||
PayBright | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 6,127 | |||
Useful Life (in years) | 3 years | |||
PayBright | Merchant relationships | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 9,505 | |||
Useful Life (in years) | 4 years | |||
PayBright | Trade name | ||||
Business Acquisition [Line Items] | ||||
Fair Value | $ 1,021 | |||
Useful Life (in years) | 5 years |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Mar. 31, 2021 | |
Returnly | ||
Business Acquisition [Line Items] | ||
Revenue | $ 234,271 | $ 618,356 |
Net loss | $ (291,597) | (329,540) |
PayBright | ||
Business Acquisition [Line Items] | ||
Revenue | 617,340 | |
Net loss | $ (347,511) |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2021 | Jan. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Allowance for accounts receivable | $ 12,000 | $ 12,000 | $ 4,100 | ||||
Goodwill impairment loss | 0 | $ 0 | |||||
Amortization of intangible assets | 5,500 | $ 1,200 | 16,400 | 1,200 | |||
Impairment of intangible assets | 0 | 0 | 0 | 0 | |||
Amortization of commercial agreement assets | 72,804 | 50,097 | |||||
Vesting of warrants exercised | $ 133,500 | ||||||
Commercial agreement term | 3 years 2 months 12 days | ||||||
Amortization of sales and marketing expense | 10,200 | 16,000 | |||||
Contingent consideration | 119,008 | 119,008 | 153,447 | ||||
Commercial agreement liability | 0 | $ 0 | $ 25,357 | ||||
Commercial Agreement Asset, Shopify Inc, Warrants | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset amortization period | 4 years | ||||||
Commercial agreement asset, gross | 270,600 | $ 270,600 | |||||
Amortization of commercial agreement assets | 16,700 | 16,700 | 50,700 | 48,000 | |||
Commercial Agreement Asset, Enterprise Partner, Stock Appreciation Rights | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset amortization period | 3 years | ||||||
Commercial agreement asset, gross | $ 25,900 | ||||||
Amortization of commercial agreement assets | $ 2,000 | $ 2,100 | $ 6,000 | $ 2,100 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill and Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 516,515 |
Additions | 33,410 |
Effect of foreign currency translation | (2,532) |
Ending balance | $ 547,393 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (21,768) | $ (5,316) |
Total amortization expense | 58,394 | |
Total intangible assets, gross | 82,658 | 73,246 |
Total intangible assets, net | 60,890 | 67,930 |
Trademarks and Domains | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 2,146 | |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 350 | 350 |
Merchant relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 38,657 | 38,951 |
Accumulated Amortization | (8,335) | (2,192) |
Total amortization expense | $ 30,322 | $ 36,759 |
Weighted Average Remaining Useful Life (in years) | 3 years 9 months 18 days | 4 years 6 months |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 39,967 | $ 30,176 |
Accumulated Amortization | (12,715) | (2,930) |
Total amortization expense | $ 27,252 | $ 27,246 |
Weighted Average Remaining Useful Life (in years) | 2 years 2 months 12 days | 2 years 9 months 18 days |
Trademarks and Domains | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,538 | $ 3,769 |
Accumulated Amortization | (718) | (194) |
Total amortization expense | $ 820 | $ 3,575 |
Weighted Average Remaining Useful Life (in years) | 2 years 9 months 18 days | 3 years 3 months 18 days |
Balance Sheet Components - Expe
Balance Sheet Components - Expected Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
2022 (remaining three months) | $ 5,406 |
2023 | 21,416 |
2024 | 19,287 |
2025 | 7,274 |
2026 and thereafter | 5,011 |
Total amortization expense | $ 58,394 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating lease right-of-use assets | $ 52,391 | $ 57,828 |
Derivative instruments | 43,437 | 2,880 |
Prepaid payroll taxes for stock-based compensation | 35,172 | 111,278 |
Equity securities, at cost | 33,172 | 11,278 |
Prepaid expenses | 23,271 | 21,069 |
Processing reserves | 21,240 | 14,042 |
Other receivables | 15,055 | 26,423 |
Other assets | 6,713 | 29,881 |
Total other assets | $ 230,451 | $ 274,679 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Offsetting [Abstract] | ||
Contingent consideration liability | $ 119,008 | $ 153,447 |
Operating lease liability | 67,905 | 74,952 |
Collateral held for derivative instruments | 44,859 | 2,780 |
Accrued expenses | 44,493 | 47,674 |
Commercial agreement liability | 0 | 25,357 |
Other liabilities | 37,042 | 19,367 |
Total accrued expenses and other liabilities | $ 313,307 | $ 323,577 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |||||
Restricted cash | $ 413,628 | $ 183,330 | $ 413,628 | $ 183,330 | $ 226,074 |
Weighted average remaining lease term | 5 years 2 months 12 days | 5 years 2 months 12 days | |||
Impairment expense | $ 0 | 11,100 | $ 0 | 11,100 | |
Rent expense incurred | 3,900 | 4,100 | 11,400 | 12,000 | |
Short-term lease expense | 100 | 200 | 300 | 1,100 | |
Sublease Income | $ 900 | $ 0 | $ 2,300 | $ 0 | |
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease termination notice period | 180 days | ||||
Remaining lease term | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease termination notice period | 1 year | ||||
Remaining lease term | 9 years | 9 years | |||
Cash collateral and deposits for letters of credit | |||||
Lessee, Lease, Description [Line Items] | |||||
Restricted cash | $ 9,600 | $ 9,600 | $ 9,900 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rate (Details) | Mar. 31, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 5 years 2 months 12 days |
Weighted average discount rate | 4.60% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Leases [Abstract] | ||
2022 (remaining three months) | $ 4,075 | |
2023 | 15,832 | |
2024 | 15,812 | |
2025 | 16,119 | |
2026 and thereafter | 25,638 | |
Total lease payments | 77,476 | |
Less imputed interest | (9,571) | |
Present value of lease liabilities | $ 67,905 | $ 74,952 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Other Commitments [Line Items] | ||||
Loans held by third party investors or unconsolidated VIEs | $ 4,036.4 | $ 2,453.9 | ||
Repurchase liability | $ 2.3 | $ 2.1 | ||
Customer Concentration Risk | Revenue | Largest merchant partner | ||||
Other Commitments [Line Items] | ||||
Revenue concentration percent | 20.00% | 31.00% | ||
CALIFORNIA | Geographic Concentration Risk | Loan receivable | ||||
Other Commitments [Line Items] | ||||
Revenue concentration percent | 12.00% | 15.00% |
Debt - Aggregate Future Maturit
Debt - Aggregate Future Maturities of Funding Debt (Details) - Funding debt - Revolving facilities - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Line of Credit Facility [Line Items] | ||
Remainder of fiscal year | $ 208,468 | |
Year one | 0 | $ 104,159 |
Year two | 393,480 | 460,289 |
Year three | 0 | 22,705 |
Year four | 0 | |
After year three | 308,858 | |
After year four | 102,203 | |
Borrowings outstanding | 910,806 | 689,356 |
Deferred debt issuance costs | (9,573) | (8,754) |
Total funding debt, net of deferred debt issuance costs | $ 901,233 | $ 680,602 |
Debt - Additional Information (
Debt - Additional Information (Details) $ / shares in Units, $ in Thousands | Mar. 31, 2022USD ($) | Feb. 04, 2022USD ($) | Dec. 15, 2021USD ($) | Nov. 23, 2021USD ($)dsegment$ / shares | Jan. 19, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($) |
Line of Credit Facility [Line Items] | |||||||||
Remaining life | 56 months | ||||||||
Amortization of debt issuance costs | $ 13,215 | $ 3,675 | |||||||
Borrowings outstanding | $ 901,233 | $ 901,233 | $ 901,233 | $ 680,602 | |||||
2022-X1 | Senior Pledged Securities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Investment interest rate | 1.58% | 1.58% | 1.58% | ||||||
2022-X1 | Residual Certificate Pledged Securities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Investment interest rate | 3.23% | 3.23% | 3.23% | ||||||
2021-Z1 and 2021-Z2 | Senior Pledged Securities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Investment interest rate | 1.79% | 1.79% | 1.79% | ||||||
2021-Z1 and 2021-Z2 | Residual Certificate Pledged Securities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Investment interest rate | 3.44% | 3.44% | 3.44% | ||||||
Convertible Senior Notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Conversion ratio | 0.0046371 | ||||||||
Interest expense | $ 1,000 | $ 1,400 | |||||||
Convertible Senior Notes | Conversion Period One | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Threshold trading days | d | 20 | ||||||||
Threshold consecutive trading days | segment | 30 | ||||||||
Threshold percentage of stock price trigger | 130.00% | ||||||||
Convertible Senior Notes | Conversion Period Two | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Threshold consecutive trading days | d | 5 | ||||||||
Minimum percentage of common stock price trigger | 98.00% | ||||||||
Funding debt | Warehouse Credit Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unpaid principal balance of loans pledged as collateral | $ 803,700 | 803,700 | 803,700 | 664,100 | |||||
Funding debt | PayBright Funding Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unpaid principal balance of loans pledged as collateral | 199,500 | 199,500 | 199,500 | ||||||
Repurchase Agreement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Liability component of debt outstanding | 36,200 | 36,200 | 36,200 | 13,900 | |||||
Repurchase Agreement | 2021-Z1 and 2021-Z2 | Other Receivables | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Pledged securities | 42,700 | 42,700 | 42,700 | 16,200 | |||||
Convertible Debt | Convertible Senior Notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Liability component of debt outstanding | 1,705,624 | 1,705,624 | 1,705,624 | ||||||
Securitization issued | 1,725,000 | $ 1,725,000 | 1,725,000 | 1,725,000 | |||||
Proceeds from debt | $ 1,704,000 | ||||||||
Conversion price of redeemable convertible preferred stock (in USD per share) | $ / shares | $ 215.65 | ||||||||
Revolving facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Aggregate commitment amount of credit facility | $ 165,000 | $ 185,000 | |||||||
Unused commitment fee percentage | 0.20% | 0.35% | |||||||
Amortization of debt issuance costs | $ 1,200 | ||||||||
Borrowings outstanding | 0 | 0 | 0 | ||||||
Revolving facilities | Fed Funds Effective Rate Overnight Index Swap Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread | 0.50% | 0.50% | |||||||
Revolving facilities | One Month London Interbank Offered Rate (LIBOR) | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread | 1.00% | 1.00% | |||||||
Revolving facilities | Base Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread | 0.85% | 1.50% | |||||||
Revolving facilities | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread | 1.85% | 2.50% | |||||||
Revolving facilities | Funding debt | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Funding debt | 910,806 | 910,806 | 910,806 | 689,356 | |||||
Liability component of debt outstanding | 901,233 | 901,233 | $ 901,233 | $ 680,602 | |||||
Revolving facilities | Funding debt | Warehouse Credit Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Covenant, period prior to final maturity date borrowings can occur | 12 months | ||||||||
Aggregate commitment amount of credit facility | 1,975,000 | 1,975,000 | $ 1,975,000 | ||||||
Funding debt | 702,000 | 702,000 | 702,000 | ||||||
Remaining amount available of credit facility | 1,272,700 | 1,272,700 | 1,272,700 | ||||||
Revolving facilities | Funding debt | PayBright Funding Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Aggregate commitment amount of credit facility | 419,000 | 419,000 | 419,000 | ||||||
Funding debt | 172,300 | 172,300 | 172,300 | ||||||
Remaining amount available of credit facility | $ 246,800 | $ 246,800 | $ 246,800 | ||||||
Minimum | Revolving facilities | Warehouse Credit Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unused commitment fee percentage | 0.00% | ||||||||
Minimum | Revolving facilities | Funding debt | Warehouse Credit Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Advance rate percentage | 79.00% | ||||||||
Minimum | Revolving facilities | Funding debt | LIBOR | Warehouse Credit Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread | 1.65% | ||||||||
Minimum | Revolving facilities | Funding debt | Commercial paper rate | PayBright Funding Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread | 1.25% | ||||||||
Maximum | Revolving facilities | Warehouse Credit Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unused commitment fee percentage | 0.75% | ||||||||
Maximum | Revolving facilities | Funding debt | Warehouse Credit Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Advance rate percentage | 88.00% | ||||||||
Maximum | Revolving facilities | Funding debt | LIBOR | Warehouse Credit Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread | 4.00% | ||||||||
Maximum | Revolving facilities | Funding debt | Commercial paper rate | PayBright Funding Facilities | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread | 4.25% |
Debt - Convertible Notes Outsta
Debt - Convertible Notes Outstanding (Details) - Convertible Senior Notes - Convertible Debt - USD ($) $ in Thousands | Mar. 31, 2022 | Nov. 23, 2021 |
Line of Credit Facility [Line Items] | ||
Principal Amount | $ 1,725,000 | $ 1,725,000 |
Unamortized Discount and Issuance Cost | (19,376) | |
Total funding debt, net of deferred debt issuance costs | $ 1,705,624 |
Securitization and Variable I_3
Securitization and Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Feb. 09, 2022 | Nov. 10, 2021 | Jun. 30, 2021 | May 18, 2021 | May 17, 2021 | May 05, 2021 |
Debt Instrument [Line Items] | |||||||
Securitized loans outstanding | $ 2,024.3 | ||||||
2020-Z2 | |||||||
Debt Instrument [Line Items] | |||||||
Securitized loans outstanding | $ 27.9 | ||||||
Percentage of residual certificates retained | 93.30% | ||||||
2020-A | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of residual certificates retained | 100.00% | ||||||
2021-A | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of residual certificates retained | 100.00% | ||||||
2020-Z1 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of residual certificates retained | 100.00% | ||||||
2021-B | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of residual certificates retained | 100.00% | ||||||
2021-Z1 and 2021-Z2 | Repurchase Agreement | Other Receivables | |||||||
Debt Instrument [Line Items] | |||||||
Pledged securities | $ 42.7 | $ 16.2 | |||||
2021-Z1 | |||||||
Debt Instrument [Line Items] | |||||||
Securitized loans outstanding | $ 41.4 | ||||||
Percentage of residual certificates retained | 5.00% | 5.00% | |||||
Percentage of certificates owned | 5.00% | ||||||
Gain on sale of loans | $ 16.7 | ||||||
2021-Z1 | Secured debt | |||||||
Debt Instrument [Line Items] | |||||||
Securitization issued | $ 320 | ||||||
Fixed interest rate | 1.07% | ||||||
Loans pledged as collateral at amortized cost | $ 351 | ||||||
2021-Z1 | Funding debt | Other Assets | |||||||
Debt Instrument [Line Items] | |||||||
Pledged securities | $ 1.4 | ||||||
2021-Z1 Residual Certificates | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of residual certificates retained | 86.90% | ||||||
Percentage of certificates owned | 5.00% | ||||||
2021-Z2 | |||||||
Debt Instrument [Line Items] | |||||||
Securitized loans outstanding | $ 192.5 | ||||||
Percentage of certificates owned | 5.00% | ||||||
Gain on sale of loans | $ 6.1 | ||||||
2021-Z2 | Secured debt | |||||||
Debt Instrument [Line Items] | |||||||
Securitization issued | $ 260 | ||||||
Fixed interest rate | 1.17% | ||||||
Loans pledged as collateral at amortized cost | $ 287.5 | ||||||
2022-X1 | |||||||
Debt Instrument [Line Items] | |||||||
Securitized loans outstanding | $ 258.3 | ||||||
Percentage of certificates owned | 5.00% | ||||||
Gain on sale of loans | $ 13.1 | ||||||
2022-X1 | Secured debt | |||||||
Debt Instrument [Line Items] | |||||||
Securitization issued | $ 366.5 | ||||||
Fixed interest rate | 1.75% | ||||||
Loans pledged as collateral at amortized cost | $ 406.2 | ||||||
Third party loan buyer | 2020-Z2 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of residual certificates retained | 6.70% | ||||||
Third party loan buyer | 2021-Z1 Residual Certificates | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of residual certificates retained | 13.10% | ||||||
Percentage of residual certificates sold | 81.90% | ||||||
Third party loan buyer | 2021-Z2 Residual Certificates | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of residual certificates sold | 95.00% | ||||||
Third party loan buyer | 2022-X1 Residual Certificates | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of residual certificates sold | 95.00% |
Securitizations and Variable In
Securitizations and Variable Interest Entities - Aggregate Carrying Value of Financial Assets and Liabilities from Consolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Assets | $ 7,031,726 | $ 4,866,967 |
Liabilities | 4,455,671 | 2,291,440 |
Consolidated Variable Interest Entities | ||
Debt Instrument [Line Items] | ||
Assets | 2,401,071 | 1,803,624 |
Liabilities | 2,200,332 | 1,793,427 |
Net Assets | 200,739 | 10,197 |
Consolidated Variable Interest Entities | Warehouse credit facilities | ||
Debt Instrument [Line Items] | ||
Assets | 839,670 | 688,197 |
Liabilities | 751,419 | 614,882 |
Net Assets | 88,251 | 73,315 |
Consolidated Variable Interest Entities | Securitizations | ||
Debt Instrument [Line Items] | ||
Assets | 1,561,401 | 1,115,427 |
Liabilities | 1,448,913 | 1,178,545 |
Net Assets | $ 112,488 | $ (63,118) |
Securitizations and Variable _2
Securitizations and Variable Interest Entities - Aggregate Carrying Value of Financial Assets and Liabilities from Unconsolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Assets | $ 7,031,726 | $ 4,866,967 |
Liabilities | 4,455,671 | 2,291,440 |
Variable Interest Entity, Not Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Assets | 817,633 | 305,414 |
Liabilities | 766,651 | 304,567 |
Net Assets | 50,982 | 847 |
Maximum Exposure to Losses | 44,092 | 16,850 |
Variable Interest Entity, Not Primary Beneficiary | Securitizations | ||
Debt Instrument [Line Items] | ||
Assets | 817,633 | 305,414 |
Liabilities | 766,651 | 304,567 |
Net Assets | 50,982 | 847 |
Maximum Exposure to Losses | $ 44,092 | $ 16,850 |
Investments - Marketable Securi
Investments - Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Marketable Securities [Line Items] | ||
Marketable Securities | $ 2,153,522 | $ 159,411 |
Money market funds | Cash Equivalents | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 1,461,956 | 143,241 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 185,432 | 0 |
Corporate bonds | Cash Equivalents | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 854 | 0 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 133,437 | 0 |
Commercial paper | Cash Equivalents | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 73,689 | 0 |
Certificates of deposit | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 54,048 | 0 |
Government bonds, Non-US | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 35,775 | 0 |
Government bonds, US | ||
Marketable Securities [Line Items] | ||
Marketable Securities | 165,624 | 0 |
Securitization notes receivable and certificates | ||
Marketable Securities [Line Items] | ||
Marketable Securities | $ 42,707 | $ 16,170 |
Investments - Securities Availa
Investments - Securities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 694,737 | $ 16,144 |
Gross Unrealized Gains | 43 | 29 |
Gross Unrealized Losses | (3,084) | 0 |
Allowance for Credit Losses | (130) | (3) |
Fair Value | 691,566 | 16,170 |
Certificates of deposit, corporate bonds, and commercial paper classified as cash and cash equivalents | 74,500 | |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 54,168 | |
Gross Unrealized Gains | 27 | |
Gross Unrealized Losses | (147) | |
Allowance for Credit Losses | 0 | |
Fair Value | 54,048 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 187,580 | |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (1,299) | |
Allowance for Credit Losses | 0 | |
Fair Value | 186,286 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 207,302 | |
Gross Unrealized Gains | 11 | |
Gross Unrealized Losses | (187) | |
Allowance for Credit Losses | 0 | |
Fair Value | 207,126 | |
Government bonds, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 36,008 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (233) | |
Allowance for Credit Losses | 0 | |
Fair Value | 35,775 | |
Government bonds, US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 166,285 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (661) | |
Allowance for Credit Losses | 0 | |
Fair Value | 165,624 | |
Securitization notes receivable and certificates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 43,394 | 16,144 |
Gross Unrealized Gains | 0 | 29 |
Gross Unrealized Losses | (557) | 0 |
Allowance for Credit Losses | (130) | (3) |
Fair Value | $ 42,707 | $ 16,170 |
Investments - Available for Sal
Investments - Available for Sale Securities with Unrealized Losses (Details) $ in Thousands | Mar. 31, 2022USD ($)position |
Debt Securities, Available-for-sale [Line Items] | |
Less than or equal to 1 year, fair value | $ 578,039 |
Less than or equal to 1 year, unrealized losses | (3,084) |
Greater than 1 year, fair value | 0 |
Greater than 1 year, unrealized losses | 0 |
Total, fair value | 578,039 |
Total, unrealized losses | $ (3,084) |
Number of positions with unrealized losses | position | 113,000 |
Certificates of deposit | |
Debt Securities, Available-for-sale [Line Items] | |
Less than or equal to 1 year, fair value | $ 29,846 |
Less than or equal to 1 year, unrealized losses | (147) |
Greater than 1 year, fair value | 0 |
Greater than 1 year, unrealized losses | 0 |
Total, fair value | 29,846 |
Total, unrealized losses | (147) |
Corporate bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Less than or equal to 1 year, fair value | 177,798 |
Less than or equal to 1 year, unrealized losses | (1,299) |
Greater than 1 year, fair value | 0 |
Greater than 1 year, unrealized losses | 0 |
Total, fair value | 177,798 |
Total, unrealized losses | (1,299) |
Commercial paper | |
Debt Securities, Available-for-sale [Line Items] | |
Less than or equal to 1 year, fair value | 126,289 |
Less than or equal to 1 year, unrealized losses | (187) |
Greater than 1 year, fair value | 0 |
Greater than 1 year, unrealized losses | 0 |
Total, fair value | 126,289 |
Total, unrealized losses | (187) |
Government bonds, Non-US | |
Debt Securities, Available-for-sale [Line Items] | |
Less than or equal to 1 year, fair value | 35,775 |
Less than or equal to 1 year, unrealized losses | (233) |
Greater than 1 year, fair value | 0 |
Greater than 1 year, unrealized losses | 0 |
Total, fair value | 35,775 |
Total, unrealized losses | (233) |
Government bonds, US | |
Debt Securities, Available-for-sale [Line Items] | |
Less than or equal to 1 year, fair value | 165,624 |
Less than or equal to 1 year, unrealized losses | (661) |
Greater than 1 year, fair value | 0 |
Greater than 1 year, unrealized losses | 0 |
Total, fair value | 165,624 |
Total, unrealized losses | (661) |
Securitization notes receivable and certificates | |
Debt Securities, Available-for-sale [Line Items] | |
Less than or equal to 1 year, fair value | 42,707 |
Less than or equal to 1 year, unrealized losses | (557) |
Greater than 1 year, fair value | 0 |
Greater than 1 year, unrealized losses | 0 |
Total, fair value | 42,707 |
Total, unrealized losses | $ (557) |
Investments - Length of Contrac
Investments - Length of Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | $ 645,580 | |
Within 1 year, fair value | 643,274 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 49,157 | |
Greater than 1 year, less than or equal to 5 years, fair value | 48,292 | |
Amortized Cost | 694,737 | $ 16,144 |
Total, amortized cost | 694,737 | |
Total, fair value | 691,566 | 16,170 |
Recurring | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 42,707 | 16,170 |
Level 3 | Recurring | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 42,707 | 16,170 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 54,168 | |
Within 1 year, fair value | 54,048 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 0 | |
Greater than 1 year, less than or equal to 5 years, fair value | 0 | |
Amortized Cost | 54,168 | |
Total, fair value | 54,048 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 153,996 | |
Within 1 year, fair value | 153,310 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 33,584 | |
Greater than 1 year, less than or equal to 5 years, fair value | 32,976 | |
Amortized Cost | 187,580 | |
Total, fair value | 186,286 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 207,302 | |
Within 1 year, fair value | 207,126 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 0 | |
Greater than 1 year, less than or equal to 5 years, fair value | 0 | |
Amortized Cost | 207,302 | |
Total, fair value | 207,126 | |
Government bonds, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 31,762 | |
Within 1 year, fair value | 31,656 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 4,246 | |
Greater than 1 year, less than or equal to 5 years, fair value | 4,119 | |
Amortized Cost | 36,008 | |
Total, fair value | 35,775 | |
Government bonds, US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 166,285 | |
Within 1 year, fair value | 165,624 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 0 | |
Greater than 1 year, less than or equal to 5 years, fair value | 0 | |
Amortized Cost | 166,285 | |
Total, fair value | 165,624 | |
Securitization notes receivable and certificates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year, amortized cost | 32,067 | |
Within 1 year, fair value | 31,510 | |
Greater than 1 year, less than or equal to 5 years, amortized cost | 11,327 | |
Greater than 1 year, less than or equal to 5 years, fair value | 11,197 | |
Amortized Cost | 43,394 | 16,144 |
Total, amortized cost | 43,394 | |
Total, fair value | $ 42,707 | $ 16,170 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | |
Investments, All Other Investments [Abstract] | |||
Gross proceeds from matured or redeemed securities | $ 949,300 | $ 1,584,800 | |
Equity securities, at cost | $ 33,172 | $ 33,172 | $ 11,278 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale at fair value | $ 617,025 | |||||
Servicing assets | 4,600 | $ 2,300 | ||||
Derivative instruments | 43,437 | 2,880 | ||||
Servicing liabilities | 5,606 | $ 8,626 | 3,961 | $ 2,248 | $ 2,826 | $ 1,540 |
Contingent consideration | 119,008 | 153,447 | ||||
Money market funds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 1,461,956 | 143,241 | ||||
Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 852 | |||||
Restricted cash | 185,434 | |||||
Commercial paper | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 73,689 | |||||
Restricted cash | 133,437 | |||||
Certificates of deposit | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 54,048 | |||||
Government bonds, Non-US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 35,775 | |||||
Government bonds, US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 165,624 | |||||
Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securitization notes receivable and residual trust certificates | 42,707 | 16,170 | ||||
Servicing assets | 4,620 | 2,349 | ||||
Derivative instruments | 43,437 | 2,880 | ||||
Total assets | 2,201,579 | 164,640 | ||||
Servicing liabilities | 5,606 | 3,961 | ||||
Performance fee liability | 1,584 | 1,290 | ||||
Residual trust certificates, held by third-parties | 489 | 914 | ||||
Contingent consideration | 119,008 | 153,447 | ||||
Profit share liability | 1,878 | 2,464 | ||||
Total liabilities | 128,565 | 162,076 | ||||
Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale at fair value | 0 | |||||
Total assets | 0 | 0 | ||||
Total liabilities | 0 | 0 | ||||
Level 1 | Money market funds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 1,461,956 | 143,241 | ||||
Level 1 | Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | |||||
Restricted cash | 0 | |||||
Level 1 | Commercial paper | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | |||||
Restricted cash | 0 | |||||
Level 1 | Certificates of deposit | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | |||||
Level 1 | Government bonds, Non-US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | |||||
Level 1 | Government bonds, US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | |||||
Level 1 | Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securitization notes receivable and residual trust certificates | 0 | 0 | ||||
Servicing assets | 0 | 0 | ||||
Derivative instruments | 0 | 0 | ||||
Total assets | 1,461,956 | 143,241 | ||||
Servicing liabilities | 0 | 0 | ||||
Performance fee liability | 0 | 0 | ||||
Residual trust certificates, held by third-parties | 0 | 0 | ||||
Contingent consideration | 0 | 0 | ||||
Profit share liability | 0 | 0 | ||||
Total liabilities | 0 | 0 | ||||
Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale at fair value | 574,318 | |||||
Total assets | 15,425 | 275,855 | ||||
Total liabilities | 1,213,020 | 269,975 | ||||
Level 2 | Money market funds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Level 2 | Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 852 | |||||
Restricted cash | 185,434 | |||||
Level 2 | Commercial paper | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 73,689 | |||||
Restricted cash | 133,437 | |||||
Level 2 | Certificates of deposit | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 54,048 | |||||
Level 2 | Government bonds, Non-US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 35,775 | |||||
Level 2 | Government bonds, US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 165,624 | |||||
Level 2 | Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securitization notes receivable and residual trust certificates | 0 | 0 | ||||
Servicing assets | 0 | 0 | ||||
Derivative instruments | 43,437 | 2,880 | ||||
Total assets | 692,296 | 2,880 | ||||
Servicing liabilities | 0 | 0 | ||||
Performance fee liability | 0 | 0 | ||||
Residual trust certificates, held by third-parties | 0 | 0 | ||||
Contingent consideration | 0 | 0 | ||||
Profit share liability | 0 | 0 | ||||
Total liabilities | 0 | 0 | ||||
Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale at fair value | 42,707 | |||||
Total assets | 2,410,903 | 1,883,364 | ||||
Total liabilities | 2,317,237 | 1,876,134 | ||||
Level 3 | Money market funds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Level 3 | Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | |||||
Restricted cash | 0 | |||||
Level 3 | Commercial paper | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 0 | |||||
Restricted cash | 0 | |||||
Level 3 | Certificates of deposit | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | |||||
Level 3 | Government bonds, Non-US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | |||||
Level 3 | Government bonds, US | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Restricted cash | 0 | |||||
Level 3 | Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securitization notes receivable and residual trust certificates | 42,707 | 16,170 | ||||
Servicing assets | 4,620 | 2,349 | ||||
Derivative instruments | 0 | 0 | ||||
Total assets | 47,327 | 18,519 | ||||
Servicing liabilities | 5,606 | 3,961 | ||||
Performance fee liability | 1,584 | 1,290 | ||||
Residual trust certificates, held by third-parties | 489 | 914 | ||||
Contingent consideration | 119,008 | 153,447 | ||||
Profit share liability | 1,878 | 2,464 | ||||
Total liabilities | $ 128,565 | $ 162,076 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 01, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Unpaid balance on loans sold with retained servicing rights | $ 2,042,500 | $ 756,700 | $ 5,647,500 | $ 2,013,200 | |||
Unpaid principal balance on serviced sold loans | 4,036,400 | 4,036,400 | $ 2,453,900 | ||||
Servicing income | 23,456 | $ 7,977 | 44,242 | $ 17,235 | |||
Servicing assets | 4,600 | 4,600 | 2,300 | ||||
Servicing liabilities | $ 5,600 | $ 5,600 | 4,000 | ||||
Economic risk retention | 5.00% | 5.00% | |||||
Senior Notes And Residual Trust Certificates | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Aggregate fair value | $ 42,707 | $ 42,707 | $ 25,319 | $ 16,170 | |||
Kite | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Escrow deposit | $ 9,000 | $ 9,000 | $ 9,000 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Fair Value of Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Fair value at beginning of period | $ 2,178 | $ 1,923 | $ 2,349 | $ 2,132 |
Initial transfers of financial assets | 1,991 | 202 | 3,105 | 1,732 |
Subsequent changes in fair value | 451 | (5) | (834) | (1,744) |
Fair value at end of period | $ 4,620 | $ 2,120 | $ 4,620 | $ 2,120 |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Fair Value of Servicing Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Servicing Liability at Fair Value, Amount [Roll Forward] | ||||
Fair value at beginning of period | $ 8,626 | $ 2,826 | $ 3,961 | $ 1,540 |
Initial transfers of financial assets | 2,940 | 1,972 | 13,826 | 5,185 |
Subsequent changes in fair value | (5,960) | (2,550) | (12,181) | (4,477) |
Fair value at end of period | $ 5,606 | $ 2,248 | $ 5,606 | $ 2,248 |
Fair Value of Financial Asset_7
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Servicing Assets and Liabilities (Details) | Mar. 31, 2022 | Jun. 30, 2021 |
Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.3000 | 0.3000 |
Servicing liability, measurement input | 0.3000 | 0.3000 |
Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.3000 | 0.3000 |
Servicing liability, measurement input | 0.3000 | 0.3000 |
Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.3000 | 0.3000 |
Servicing liability, measurement input | 0.3000 | 0.3000 |
Adequate compensation | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0084 | 0.0070 |
Servicing liability, measurement input | 0.0212 | 0.0129 |
Adequate compensation | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0165 | 0.0084 |
Servicing liability, measurement input | 0.0426 | 0.0370 |
Adequate compensation | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0129 | 0.0081 |
Servicing liability, measurement input | 0.0313 | 0.0271 |
Net default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0087 | 0.0053 |
Servicing liability, measurement input | 0.0150 | 0.0080 |
Net default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0925 | 0.0095 |
Servicing liability, measurement input | 0.2918 | 0.0842 |
Net default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement input | 0.0456 | 0.0064 |
Servicing liability, measurement input | 0.1376 | 0.0712 |
Fair Value of Financial Asset_8
Fair Value of Financial Assets and Liabilities - Summary of Adverse Changes in Estimates for Servicing Assets and Liabilities Inputs (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Net default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, effect of 25% increase in measurement input | $ (41) | $ (7) |
Servicing asset, effect of 50% increase in measurement input | (75) | (15) |
Servicing liability, effect of 25% increase in measurement input | (26) | (40) |
Servicing liability, effect of 50% increase in measurement input | (49) | (61) |
Adequate compensation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, effect of 25% increase in measurement input | (4,587) | (2,006) |
Servicing asset, effect of 50% increase in measurement input | (9,173) | (4,011) |
Servicing liability, effect of 25% increase in measurement input | 4,370 | 3,060 |
Servicing liability, effect of 50% increase in measurement input | 8,739 | 6,119 |
Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, effect of 25% increase in measurement input | (64) | (4) |
Servicing asset, effect of 50% increase in measurement input | (129) | (1) |
Servicing liability, effect of 25% increase in measurement input | (512) | (137) |
Servicing liability, effect of 50% increase in measurement input | $ (663) | $ (263) |
Fair Value of Financial Asset_9
Fair Value of Financial Assets and Liabilities - Fair Value of Performance Fee Liability (Details) - Performance Fee Liability - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | $ 1,530 | $ 1,205 | $ 1,290 | $ 875 |
Purchases of loans | 432 | 349 | 1,265 | 1,070 |
Settlements Paid | (418) | 0 | (418) | 0 |
Subsequent changes in fair value | 40 | (312) | (553) | (703) |
Fair value at end of period | $ 1,584 | $ 1,242 | $ 1,584 | $ 1,242 |
Fair Value of Financial Asse_10
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Performance Fee Liability (Details) | Mar. 31, 2022 | Jun. 30, 2021 |
Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.1000 | 0.1000 |
Minimum | Refund rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0450 | 0.0450 |
Minimum | Default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0178 | 0.0178 |
Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.1000 | 0.1000 |
Maximum | Refund rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0450 | 0.0450 |
Maximum | Default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0298 | 0.0283 |
Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.1000 | 0.1000 |
Weighted Average | Refund rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0450 | 0.0450 |
Weighted Average | Default rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Performance fee liability, measurement input | 0.0230 | 0.0180 |
Fair Value of Financial Asse_11
Fair Value of Financial Assets and Liabilities - Fair Value of Residual Trust Certificates (Details) - Residual Trust Certificates Held by Third-Parties in Consolidated VIEs - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 619 | $ 914 |
Repayments | (146) | (549) |
Subsequent changes in fair value | 16 | 124 |
Fair value at end of period | $ 489 | $ 489 |
Fair Value of Financial Asse_12
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Residual Trust Certificates (Details) - Residual Trust Certificates Held by Third-Parties in Consolidated VIEs | Mar. 31, 2022 |
Minimum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.1000 |
Minimum | Loss rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0075 |
Minimum | Prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0800 |
Maximum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.1000 |
Maximum | Loss rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0075 |
Maximum | Prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0800 |
Weighted Average | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.1000 |
Weighted Average | Loss rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0075 |
Weighted Average | Prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0800 |
Fair Value of Financial Asse_13
Fair Value of Financial Assets and Liabilities - Summary of Adverse Changes in Estimates for Residual Trust Certificates Inputs (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, effect of 25% increase in measurement input | $ (8) |
Residual trust certificates, effect of 50% increase in measurement input | (16) |
Loss rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, effect of 25% increase in measurement input | (12) |
Residual trust certificates, effect of 50% increase in measurement input | (23) |
Prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, effect of 25% increase in measurement input | (3) |
Residual trust certificates, effect of 50% increase in measurement input | $ (6) |
Fair Value of Financial Asse_14
Fair Value of Financial Assets and Liabilities - Fair Value of Senior Notes and Residual Trust Certificates (Details) - Senior Notes And Residual Trust Certificates - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 25,319 | $ 16,170 |
Additions | 22,067 | 35,762 |
Cash received (due to payments or sales) | (4,414) | (8,798) |
Change in unrealized loss | (402) | (586) |
Accrued interest | 215 | 285 |
Reversal of (impairment on) securities available for sale | (78) | (126) |
Fair value at end of period | $ 42,707 | $ 42,707 |
Fair Value of Financial Asse_15
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Senior Notes and Residual Trust Certificated (Details) - Senior Notes And Residual Trust Certificates | Mar. 31, 2022 |
Minimum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0213 |
Minimum | Loss rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0061 |
Minimum | Prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0525 |
Maximum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.2025 |
Maximum | Loss rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.1095 |
Maximum | Prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.3500 |
Weighted Average | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0381 |
Weighted Average | Loss rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.0415 |
Weighted Average | Prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Residual trust certificates, measurement input | 0.2345 |
Fair Value of Financial Asse_16
Fair Value of Financial Assets and Liabilities - Summary of Adverse Changes in Estimates for Securitization Notes and Residual Trust Certificates (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securitization notes and residual trust certificates, effect of 25% increase (decrease) in measurement input | $ (319) |
Securitization notes and residual trust certificates, effect of 50% increase (decrease) in measurement input | (628) |
Loss rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securitization notes and residual trust certificates, effect of 25% increase (decrease) in measurement input | (298) |
Securitization notes and residual trust certificates, effect of 50% increase (decrease) in measurement input | (588) |
Prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Securitization notes and residual trust certificates, effect of 25% increase (decrease) in measurement input | 53 |
Securitization notes and residual trust certificates, effect of 50% increase (decrease) in measurement input | $ 117 |
Fair Value of Financial Asse_17
Fair Value of Financial Assets and Liabilities - Fair Value of Contingent Consideration (Details) - Contingent Consideration - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 253,750 | $ 153,447 |
Subsequent changes in fair value | (136,248) | (28,682) |
Effect of foreign currency translation | 1,506 | (5,757) |
Fair value at end of period | $ 119,008 | $ 119,008 |
Fair Value of Financial Asse_18
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Contingent Consideration (Details) - Contingent Consideration | Mar. 31, 2022 |
Minimum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 0.1300 |
Minimum | Equity volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 0.1900 |
Minimum | Revenue volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 0.1100 |
Maximum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 0.1300 |
Maximum | Equity volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 1.0300 |
Maximum | Revenue volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 1.3400 |
Weighted Average | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 0.1300 |
Weighted Average | Equity volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 0.8600 |
Weighted Average | Revenue volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 0.3300 |
Fair Value of Financial Asse_19
Fair Value of Financial Assets and Liabilities - Fair Value of Profit Share Liability (Details) - Commercial Agreement, Profit Share Liability - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 2,053 | $ 2,465 |
Facilitation of loans | 1,098 | 4,672 |
Actual performance | (2,918) | (3,929) |
Subsequent changes in fair value | 1,645 | (1,330) |
Fair value at end of period | $ 1,878 | $ 1,878 |
Fair Value of Financial Asse_20
Fair Value of Financial Assets and Liabilities - Quantitative Information About Significant Unobservable Inputs for Profit Share Liability (Details) - Commercial Agreement, Profit Share Liability | Mar. 31, 2022 |
Minimum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial agreement, profit share liability, measurement input | 0.3000 |
Minimum | Program profitability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial agreement, profit share liability, measurement input | 0.0125 |
Maximum | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial agreement, profit share liability, measurement input | 0.3000 |
Maximum | Program profitability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial agreement, profit share liability, measurement input | 0.0354 |
Weighted Average | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial agreement, profit share liability, measurement input | 0.3000 |
Weighted Average | Program profitability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Commercial agreement, profit share liability, measurement input | 0.0126 |
Fair Value of Financial Asse_21
Fair Value of Financial Assets and Liabilities - Financial Assets and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Level 1 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | $ 0 | $ 0 |
Loans held for investment, net | 0 | 0 |
Other assets | 0 | 0 |
Accounts receivable, net | 0 | |
Total assets | 0 | 0 |
Convertible senior notes, net | 0 | |
Notes issued by securitization trusts | 0 | 0 |
Funding debt | 0 | 0 |
Accounts payable | 0 | |
Payable to third-party loan owners | 0 | |
Accrued interest payable | 0 | |
Accrued expenses and other liabilities | 0 | |
Total liabilities | 0 | 0 |
Level 2 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 3,618 | 13,030 |
Loans held for investment, net | 0 | 0 |
Other assets | 11,807 | 171,250 |
Accounts receivable, net | 91,575 | |
Total assets | 15,425 | 275,855 |
Convertible senior notes, net | 1,213,020 | |
Notes issued by securitization trusts | 0 | 0 |
Funding debt | 0 | 0 |
Accounts payable | 57,758 | |
Payable to third-party loan owners | 50,079 | |
Accrued interest payable | 2,751 | |
Accrued expenses and other liabilities | 159,387 | |
Total liabilities | 1,213,020 | 269,975 |
Level 3 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 0 | 0 |
Loans held for investment, net | 2,410,903 | 1,883,364 |
Other assets | 0 | 0 |
Accounts receivable, net | 0 | |
Total assets | 2,410,903 | 1,883,364 |
Convertible senior notes, net | 0 | |
Notes issued by securitization trusts | 1,406,390 | 1,184,663 |
Funding debt | 910,847 | 689,356 |
Accounts payable | 0 | |
Payable to third-party loan owners | 0 | |
Accrued interest payable | 0 | |
Accrued expenses and other liabilities | 2,115 | |
Total liabilities | 2,317,237 | 1,876,134 |
Carrying Amount | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 3,618 | 13,030 |
Loans held for investment, net | 2,343,385 | 1,904,560 |
Other assets | 11,807 | 171,250 |
Accounts receivable, net | 91,575 | |
Total assets | 2,358,810 | 2,180,415 |
Convertible senior notes, net | 1,705,624 | |
Notes issued by securitization trusts | 1,447,568 | 1,176,673 |
Funding debt | 910,806 | 689,356 |
Accounts payable | 57,758 | |
Payable to third-party loan owners | 50,079 | |
Accrued interest payable | 2,751 | |
Accrued expenses and other liabilities | 161,502 | |
Total liabilities | 4,063,998 | 2,138,119 |
Balance at Fair Value | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Loans held for sale | 3,618 | 13,030 |
Loans held for investment, net | 2,410,903 | 1,883,364 |
Other assets | 11,807 | 171,250 |
Accounts receivable, net | 91,575 | |
Total assets | 2,426,328 | 2,159,219 |
Convertible senior notes, net | 1,213,020 | |
Notes issued by securitization trusts | 1,406,390 | 1,184,663 |
Funding debt | 910,847 | 689,356 |
Accounts payable | 57,758 | |
Payable to third-party loan owners | 50,079 | |
Accrued interest payable | 2,751 | |
Accrued expenses and other liabilities | 161,502 | |
Total liabilities | $ 3,530,257 | $ 2,146,109 |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Additional Information (Details) $ / shares in Units, $ in Thousands | Jan. 12, 2021USD ($) | Nov. 30, 2021USD ($)$ / sharesshares | Mar. 31, 2022USD ($)voteshares | Mar. 31, 2021USD ($)shares | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($)$ / sharesshares | Mar. 31, 2022USD ($)voteshares | Jun. 30, 2021shares | Jun. 30, 2020USD ($) |
Temporary Equity [Line Items] | |||||||||
Total common stock reserved for future issuance (in shares) | shares | 85,752,586 | 85,752,586 | 88,211,269 | ||||||
Warrants granted for purchase (in shares) | shares | 22,000,000 | ||||||||
Dividend yield | 0.00% | ||||||||
Volatility | 45.00% | ||||||||
Vesting of warrants exercised | $ 133,500 | ||||||||
Sale of warrants recognized | $ 102,400 | $ 173,000 | |||||||
Amortization expense of warrants sold | 10,200 | 16,000 | |||||||
Expenses on sale of warrants | $ 92,200 | $ 157,000 | |||||||
Minimum | |||||||||
Temporary Equity [Line Items] | |||||||||
Warrants exercise term | 3 years 6 months | ||||||||
Risk free rate | 0.93% | ||||||||
Maximum | |||||||||
Temporary Equity [Line Items] | |||||||||
Warrants exercise term | 7 years 6 months | ||||||||
Risk free rate | 1.47% | ||||||||
Series G Preferred Stock | |||||||||
Temporary Equity [Line Items] | |||||||||
Redeemable convertible preferred stock issued (in shares) | shares | 21,836,687 | ||||||||
Redeemable convertible preferred stock per share (in USD per shares) | $ / shares | $ 19.93 | ||||||||
Redeemable convertible preferred stock, aggregate purchase amount | $ 434,900 | ||||||||
Preferred stock, liquidation preference | 435,100 | ||||||||
Series G-1 Preferred Stock | |||||||||
Temporary Equity [Line Items] | |||||||||
Preferred stock, liquidation preference | $ 75,300 | ||||||||
Conversion of convertible debt (in shares) | shares | 4,444,321 | ||||||||
Redeemable convertible preferred stock | |||||||||
Temporary Equity [Line Items] | |||||||||
Redeemable convertible preferred stock, aggregate purchase amount | $ 108 | $ 434,434 | |||||||
Conversion of convertible debt (in shares) | shares | (148,396,979) | 4,444,321 | |||||||
Carrying value reclassified | $ 1,327,300 | $ 0 | $ 1,327,271 | $ 1,327,163 | $ 804,170 | ||||
Total common stock reserved for future issuance (in shares) | shares | 0 | 0 | 0 | ||||||
Class A common stock | |||||||||
Temporary Equity [Line Items] | |||||||||
Common stock, stock split | 0.5 | ||||||||
Number of votes per share | vote | 1 | 1 | |||||||
Exercise price of warrants (in USD per share) | $ / shares | $ 100 | ||||||||
Class A common stock | First Warrant Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Shares purchased by warrants (in shares) | shares | 7,000,000 | ||||||||
Exercise price of warrants (in USD per share) | $ / shares | $ 0.01 | ||||||||
Warrants exercise term | 7 years 6 months | ||||||||
Class A common stock | Second Warrant Shares | |||||||||
Temporary Equity [Line Items] | |||||||||
Shares purchased by warrants (in shares) | shares | 15,000,000 | ||||||||
Class B common stock | |||||||||
Temporary Equity [Line Items] | |||||||||
Common stock, stock split | 0.5 | ||||||||
Number of votes per share | vote | 15 | 15 |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Common Stock Reserved for Issuance (Details) - shares | Mar. 31, 2022 | Jun. 30, 2021 |
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 85,752,586 | 88,211,269 |
Available outstanding under stock option plan | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 46,442,672 | 58,417,514 |
Available for future grant under stock option plan | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 39,309,914 | 29,793,755 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) $ in Thousands | May 01, 2021shares | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | May 30, 2022 | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($)shares | Jan. 14, 2021segment | Nov. 18, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of common stock available for issuance (in shares) | 85,752,586 | 85,752,586 | 88,211,269 | ||||||
Early exercise rights liability | $ | $ 500 | $ 500 | |||||||
Right to purchase shares (in shares) | 164,748 | ||||||||
Stock-based compensation expense | $ | $ 98,387 | $ 179,639 | $ 280,113 | $ 192,363 | |||||
Class A common stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of common stock available for issuance (in shares) | 39,309,914 | 39,309,914 | 29,793,755 | ||||||
Returnly | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock issued in escrow, subject to forfeiture (in shares) | 304,364 | ||||||||
Service period | 2 years | ||||||||
Stock options, including early exercise of options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of common stock available for issuance (in shares) | 46,442,672 | 46,442,672 | 58,417,514 | ||||||
Vesting period | 4 years | ||||||||
Equity exercise taxes payable | $ | $ 19,900 | $ 19,900 | $ 23,700 | ||||||
Stock options, including early exercise of options | Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting rights percentage | 25.00% | ||||||||
Stock options, including early exercise of options | Tranche Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Stock options, including early exercise of options | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period prior to IPO | 7 years | ||||||||
Expiration period | 3 months | ||||||||
Stock options, including early exercise of options | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period prior to IPO | 10 years | ||||||||
Expiration period | 10 years | ||||||||
Performance Based Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Right to purchase shares (in shares) | 12,500,000 | ||||||||
Stock-based compensation expense | $ | 29,000 | $ 38,500 | $ 113,500 | $ 38,500 | |||||
Non-vested stock options, unrecognized compensation cost | $ | 120,500 | $ 120,500 | |||||||
Weighted-average compensation expense recognition period | 3 years 9 months 18 days | ||||||||
Restricted stock units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted-average compensation expense recognition period | 2 years 2 months 12 days | ||||||||
Number of vesting conditions | segment | 2 | ||||||||
RSUs awarded (in shares) | 8,530,480 | ||||||||
Non-vested RSUs, unrecognized compensation cost | $ | $ 632,900 | $ 632,900 | |||||||
Restricted stock units | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
Restricted stock units | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
2012 Stock Plan | Class A common stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of common stock available for issuance (in shares) | 118,374,202 | 118,374,202 | |||||||
2020 Employee Stock Purchase Plan | Forecast | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share purchase price discount percent | 85.00% | ||||||||
2020 Employee Stock Purchase Plan | Class A common stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of common stock available for issuance (in shares) | 9,100,000 |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | Jun. 30, 2021$ / sharesshares | |
Number of Options | ||
Beginning balance (in shares) | shares | 31,662,750 | |
Granted (in shares) | shares | 164,748 | |
Exercised (in shares) | shares | (12,986,539) | |
Forfeited, expired or cancelled (in shares) | shares | (1,193,026) | |
Ending balance (in shares) | shares | 17,647,933 | 31,662,750 |
Vested and exercisable (in shares) | shares | 11,118,698 | |
Vested and exercisable, and expected to vest thereafter (in shares) | shares | 17,195,165 | |
Weighted Average Exercise Price | ||
Beginning balance (in USD per share) | $ / shares | $ 10.42 | |
Granted (in USD per share) | $ / shares | 58.01 | |
Exercised (in USD per share) | $ / shares | 5.14 | |
Forfeited, expired or cancelled (in USD per share) | $ / shares | 23.59 | |
Ending balance (in USD per share) | $ / shares | 13.84 | $ 10.42 |
Vested and exercisable (in USD per share) | $ / shares | 6.81 | |
Vested and exercisable, and expected to vest thereafter (in USD per share) | $ / shares | $ 12.92 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Contractual Term | 6 years 9 months 10 days | 6 years 3 months 18 days |
Weighted Average Remaining Contractual Term, Vested and exercisable | 6 years 1 month 6 days | |
Weighted Average Remaining Contractual Term, Vested and exercisable, and expected to vest | 6 years 8 months 23 days | |
Aggregate Intrinsic Value, Vested and exercisable | $ | $ 442,482 | |
Aggregate Intrinsic Value, Vested and exercisable, and expected to vest | $ | $ 586,036 |
Equity Incentive Plans - RSU Ac
Equity Incentive Plans - RSU Activity (Details) - Restricted stock units | 9 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Beginning balance, Non-vested (in shares) | shares | 14,242,111 |
Granted (in shares) | shares | 8,530,480 |
Vested (in shares) | shares | (4,780,097) |
Forfeited, expired or cancelled (in shares) | shares | (1,640,873) |
Ending balance, Non-vested (in shares) | shares | 16,351,621 |
Weighted Average Grant Date Fair Value | |
Beginning balance, Non-vested (in USD per share) | $ / shares | $ 37.93 |
Granted (in USD per share) | $ / shares | 58.29 |
Vested (in USD per share) | $ / shares | 37.69 |
Forfeited, expired or cancelled (in USD per share) | $ / shares | 33.57 |
Ending balance, Non-vested (in USD per share) | $ / shares | $ 45.23 |
Equity Incentive Plans - Compon
Equity Incentive Plans - Components and Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | $ 98,387 | $ 179,639 | $ 280,113 | $ 192,363 |
Capitalized into property, equipment and software, net | 14,618 | 6,567 | 39,691 | 7,792 |
Total stock-based compensation expense | 113,005 | 186,206 | 319,804 | 200,155 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | 58,100 | 115,566 | 187,789 | 121,867 |
Technology and data analytics | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | 33,639 | 52,058 | 75,133 | 56,827 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | 5,998 | 10,568 | 15,655 | 11,909 |
Processing and servicing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation in operating expenses | $ 650 | $ 1,447 | $ 1,536 | $ 1,760 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 259 | $ (70) | $ 706 | $ 105 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stockholders - Additional Information (Details) | Jan. 12, 2021 |
Class A common stock | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Common stock, stock split | 0.5 |
Class B common stock | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Common stock, stock split | 0.5 |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stockholders - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator, Basic | ||||||||
Net Loss | $ (54,671) | $ (159,735) | $ (306,615) | $ (287,051) | $ (26,610) | $ (3,946) | $ (521,021) | $ (317,607) |
Denominator, Basic | ||||||||
Basic weighted average common shares outstanding (in shares) | 285,641,820 | 233,309,590 | 279,570,015 | 122,161,508 | ||||
Denominator, Diluted | ||||||||
Total-diluted (in shares) | 285,641,820 | 233,309,590 | 279,570,015 | 123,329,359 | ||||
Net loss per share attributable to common stockholders: | ||||||||
Basic (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.60) | ||||
Diluted (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.80) | ||||
Class A common stock | ||||||||
Numerator, Basic | ||||||||
Net Loss | $ (43,061) | $ (150,953) | $ (389,424) | $ (152,148) | ||||
Net Loss Attributable to Common Stockholders | $ (43,061) | (150,953) | $ (389,424) | (152,148) | ||||
Numerator, Diluted | ||||||||
Excess return to preferred stockholders on repurchase | 0 | (14,428) | ||||||
Gain on conversion of convertible debt | 0 | 191 | ||||||
Interest on convertible debt prior to conversion | 0 | 859 | ||||||
Net Loss Attributable to Common Stockholders | $ (150,953) | $ (165,526) | ||||||
Denominator, Basic | ||||||||
Basic weighted average common shares outstanding (in shares) | 224,980,598 | 122,691,770 | 208,957,734 | 58,520,980 | ||||
Denominator, Diluted | ||||||||
Weighted average common shares attributable to convertible debt prior to conversion (in shares) | 0 | 583,925 | ||||||
Total-diluted (in shares) | 224,980,598 | 122,691,770 | 208,957,734 | 59,104,905 | ||||
Net loss per share attributable to common stockholders: | ||||||||
Basic (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.60) | ||||
Diluted (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.80) | ||||
Class B common stock | ||||||||
Numerator, Basic | ||||||||
Net Loss | $ (11,610) | $ (136,098) | $ (131,597) | $ (165,459) | ||||
Net Loss Attributable to Common Stockholders | $ (11,610) | (136,098) | $ (131,597) | (165,459) | ||||
Numerator, Diluted | ||||||||
Excess return to preferred stockholders on repurchase | 0 | (15,677) | ||||||
Gain on conversion of convertible debt | 0 | 207 | ||||||
Interest on convertible debt prior to conversion | 0 | 933 | ||||||
Net Loss Attributable to Common Stockholders | $ (136,098) | $ (179,996) | ||||||
Denominator, Basic | ||||||||
Basic weighted average common shares outstanding (in shares) | 60,661,222 | 110,617,820 | 70,612,281 | 63,640,528 | ||||
Denominator, Diluted | ||||||||
Weighted average common shares attributable to convertible debt prior to conversion (in shares) | 0 | 583,925 | ||||||
Total-diluted (in shares) | 60,661,222 | 110,617,820 | 70,612,281 | 64,224,453 | ||||
Net loss per share attributable to common stockholders: | ||||||||
Basic (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.60) | ||||
Diluted (in USD per share) | $ (0.19) | $ (1.23) | $ (1.86) | $ (2.80) |
Net Loss per Share Attributab_5
Net Loss per Share Attributable to Common Stockholders - Common Stock Equivalents Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 39,617,982 | 47,667,984 |
Stock options, including early exercise of options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 17,195,165 | 33,342,527 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 16,351,621 | 13,975,457 |
Common stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 5,909,896 | 350,000 |
Employee stock purchase plan shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive common stock equivalents excluded from diluted net loss per share (in shares) | 161,300 | 0 |
Segments and Geographical Inf_3
Segments and Geographical Information - Additional Information (Details) | 9 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Segments and Geographical Inf_4
Segments and Geographical Information - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenue, net | $ 354,762 | $ 230,665 | $ 985,158 | $ 608,684 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenue, net | 344,731 | 224,863 | 956,789 | 603,048 |
Canada | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenue, net | 9,975 | $ 5,802 | 28,282 | $ 5,636 |
Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenue, net | $ 56 | $ 87 |
Segments and Geographical Inf_5
Segments and Geographical Information - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 194,049 | $ 120,327 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 190,659 | 118,076 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 3,240 | 2,251 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 150 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Fast AF, Inc $ in Millions | Apr. 19, 2022USD ($) |
Subsequent Event [Line Items] | |
Cash paid for acquisition | $ 10 |
Senior Notes | Senior Secured Note Issued To Fast AF, Inc | |
Subsequent Event [Line Items] | |
Forgiveness of senior secured note | $ 15 |