BILL HOLDINGS, INC., 10-K filed on 8/29/2023
Annual Report
v3.23.2
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
Jun. 30, 2023
Aug. 22, 2023
Dec. 31, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jun. 30, 2023    
Current Fiscal Year End Date --06-30    
Document Transition Report false    
Entity File Number 001-39149    
Entity Registrant Name BILL HOLDINGS, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 83-2661725    
Entity Address, Address Line One 6220 America Center Drive, Suite 100    
Entity Address, City or Town San Jose    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 95002    
City Area Code 650    
Local Phone Number 621-7700    
Title of 12(b) Security Common Stock, $0.00001 par value    
Trading Symbol BILL    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction Flag false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   106,605,605  
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant’s definitive proxy statement for its 2023 Annual Meeting of Stockholders (Proxy Statement), to be filed within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, are incorporated by reference in Part III. Except with respect to information specifically incorporated by reference in this Annual Report, the Proxy Statement shall not be deemed to be filed as part hereof.
    
Entity Central Index Key 0001786352    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Public Float     $ 11.1
v3.23.2
Audit Information
 12 Months Ended
Jun. 30, 2023
Auditor Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location San Mateo, California
Auditor Firm ID 42
v3.23.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Current assets:    
Cash and cash equivalents $ 1,617,151 $ 1,596,542
Short-term investments 1,043,110 1,108,493
Accounts receivable, net 28,233 24,045
Acquired card receivables, net 458,650 256,392
Prepaid expenses and other current assets 170,111 151,258
Funds held for customers 3,355,909 3,142,660
Total current assets 6,673,164 6,279,390
Non-current assets:    
Operating lease right-of-use assets, net 68,988 76,445
Property and equipment, net 81,564 56,985
Intangible assets, net 361,427 432,583
Goodwill 2,396,509 2,362,893
Other assets 54,366 47,730
Total assets 9,636,018 9,256,026
Current liabilities:    
Accounts payable 8,519 9,948
Accrued compensation and benefits 32,901 29,004
Deferred revenue 26,328 31,868
Other accruals and current liabilities 194,733 120,080
Borrowings from credit facilities, net 135,046 75,097
Customer fund deposits 3,355,909 3,142,660
Total current liabilities 3,753,436 3,408,657
Non-current liabilities:    
Deferred revenue 410 2,159
Operating lease liabilities 72,477 82,728
Convertible senior notes, net 1,704,782 1,697,985
Other long-term liabilities 18,944 20,803
Total liabilities 5,550,049 5,212,332
Commitments and contingencies (Note 15)
Stockholders' equity:    
Preferred stock: $0.00001 par value per share; 10,000 shares authorized; none issued and outstanding 0 0
Common stock; $0.00001 par value per share; 500,000 shares authorized; 106,550 and 104,731 shares issued and outstanding at June 30, 2023 and 2022, respectively 2 2
Additional paid-in capital 4,946,623 4,598,737
Accumulated other comprehensive loss (4,488) (10,217)
Accumulated deficit (856,168) (544,828)
Total stockholders' equity 4,085,969 4,043,694
Total liabilities and stockholders' equity $ 9,636,018 $ 9,256,026
v3.23.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2023
Jun. 30, 2022
Statement of Financial Position [Abstract]    
Preferred stock par value (dollars per share) $ 0.00001 $ 0.00001
Preferred stock authorized (shares) 10,000,000 10,000,000
Preferred stock issued (shares) 0 0
Preferred stock outstanding (shares) 0 0
Common stock par value (dollars per share) $ 0.00001 $ 0.00001
Common stock shares authorized (shares) 500,000,000 500,000,000
Common stock issued (shares) 106,550,000 104,731,000
Common stock shares outstanding (shares) 106,550,000 104,731,000
v3.23.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Revenue      
Total revenue $ 1,058,468 $ 641,959 $ 238,265
Cost of revenue      
Service costs 151,010 105,496 56,576
Depreciation and amortization of intangible assets [1] 42,967 39,508 5,230
Total cost of revenue 193,977 145,004 61,806
Gross profit 864,491 496,955 176,459
Operating expenses      
Research and development 314,632 219,818 89,503
Sales and marketing 515,858 307,151 67,935
General and administrative 281,278 241,174 128,116
Depreciation and amortization of intangible assets [1] 48,496 45,630 4,872
Total operating expenses 1,160,264 813,773 290,426
Loss from operations (295,773) (316,818) (113,967)
Other income (expense), net 72,856 (13,861) (25,370)
Loss before provision for (benefit from) income taxes (222,917) (330,679) (139,337)
Provision for (benefit from) income taxes 808 (4,318) (40,617)
Net loss $ (223,725) $ (326,361) $ (98,720)
Net loss per share attributable to common stockholders:      
Earnings per share, basic (dollars per share) $ (2.11) $ (3.21) $ (1.19)
Earnings per share, diluted (dollars per share) $ (2.11) $ (3.21) $ (1.19)
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders:      
Weighted average number of shares outstanding, basic (shares) 105,976 101,753 82,813
Weighted average number of shares outstanding, diluted (shares) 105,976 101,753 82,813
Subscription and transaction fees      
Revenue      
Total revenue $ 944,710 $ 633,365 $ 232,255
Interest on funds held for customers      
Revenue      
Total revenue $ 113,758 $ 8,594 $ 6,010
[1] Depreciation expense does not include amortization of capitalized internal-use software wage costs.
v3.23.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Statement of Comprehensive Income [Abstract]      
Net loss $ (223,725) $ (326,361) $ (98,720)
Other comprehensive income (loss):      
Net unrealized gain (loss) on investments in available-for-sale securities 5,729 (10,117) (2,520)
Comprehensive loss $ (217,996) $ (336,478) $ (101,240)
v3.23.2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative effect of adjustments
Common stock
Additional paid-in capital
Additional paid-in capital
Cumulative effect of adjustments
Accumulated other comprehensive (loss) income
Accumulated deficit
Accumulated deficit
Cumulative effect of adjustments
Beginning balance, shares at Jun. 30, 2020     79,635,000          
Beginning balance at Jun. 30, 2020 $ 710,719   $ 2 $ 857,044   $ 2,420 $ (148,747)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2020-06 [Member]              
Issuance of common stock as consideration for an acquisition, net of issuance costs, shares     10,767,000          
Issuance of common stock as consideration for an acquisition, net of issuance costs $ 1,603,031     1,603,031        
Fair value of replacement awards 55,275     55,275        
Equity component of 2025 Notes, net of issuance costs and taxes 245,066     245,066        
Purchase of capped calls (87,860)     (87,860)        
Issuance of common stock upon exercise of stock options and release of restricted stock units, shares     3,656,000          
Issuance of common stock upon exercise of stock options and release of restricted stock units 26,981     26,981        
Issuance of common stock under the employee stock purchase plan, shares     446,000          
Issuance of common stock under the employee stock purchase plan 8,864     8,864        
Stock-based compensation 68,754     68,754        
Other comprehensive loss (2,520)         (2,520)    
Net loss (98,720)           (98,720)  
Ending balance, shares at Jun. 30, 2021     94,504,000          
Ending balance at Jun. 30, 2021 2,529,590 $ (216,066) $ 2 2,777,155 $ (245,066) (100) (247,467) $ 29,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs, shares     5,074,000          
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs 1,341,122     1,341,122        
Issuance of common stock as consideration for an acquisition, net of issuance costs, shares     1,788,000          
Issuance of common stock as consideration for an acquisition, net of issuance costs 488,263     488,263        
Fair value of replacement awards 26,710     26,710        
Purchase of capped calls (37,893)     (37,893)        
Issuance of common stock upon exercise of stock options and release of restricted stock units, shares     3,283,000          
Issuance of common stock upon exercise of stock options and release of restricted stock units 34,024     34,024        
Issuance of common stock under the employee stock purchase plan, shares     82,000          
Issuance of common stock under the employee stock purchase plan 12,849     12,849        
Stock-based compensation 201,573     201,573        
Other comprehensive loss (10,117)         (10,117)    
Net loss $ (326,361)           (326,361)  
Ending balance, shares at Jun. 30, 2022 104,731,000   104,731,000          
Ending balance at Jun. 30, 2022 $ 4,043,694   $ 2 4,598,737   (10,217) (544,828)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock as consideration for an acquisition, net of issuance costs, shares     40,000          
Issuance of common stock as consideration for an acquisition, net of issuance costs 3,375     3,375        
Issuance of common stock upon exercise of stock options and release of restricted stock units, shares     2,703,000          
Issuance of common stock upon exercise of stock options and release of restricted stock units 13,872     13,872        
Issuance of common stock under the employee stock purchase plan, shares     182,000          
Issuance of common stock under the employee stock purchase plan 17,879     17,879        
Repurchase and retirement of common stock, shares     (1,106,000)          
Repurchase and retirement of common stock (87,615)           (87,615)  
Stock-based compensation 312,760     312,760        
Other comprehensive loss 5,729         5,729    
Net loss $ (223,725)           (223,725)  
Ending balance, shares at Jun. 30, 2023 106,550,000   106,550,000          
Ending balance at Jun. 30, 2023 $ 4,085,969   $ 2 $ 4,946,623   $ (4,488) $ (856,168)  
v3.23.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Cash flows from operating activities:      
Net loss $ (223,725) $ (326,361) $ (98,720)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Stock-based compensation 313,567 197,157 68,290
Amortization of intangible assets 80,205 75,977 5,659
Depreciation of property and equipment 11,258 9,161 4,443
Amortization of capitalized internal-use software costs 4,215 2,366 907
Amortization of debt discount and issuance costs, net of accretion of debt premium 6,964 4,777 27,531
Amortization of premium (accretion of discount) on investments in marketable debt securities (37,194) 11,386 4,692
Provision for losses on acquired card receivables and other financial assets 32,189 19,879 741
Non-cash operating lease expense 9,493 8,601 3,813
Deferred income taxes (1,361) (4,075) (40,617)
Other 1,127 (726) 0
Changes in assets and liabilities:      
Accounts receivable (4,482) (3,032) (6,535)
Prepaid expenses and other current assets (16,844) (12,970) 706
Other assets 320 5,105 (12,525)
Accounts payable (1,686) (3,771) 7,417
Other accruals and current liabilities 34,465 7,460 22,980
Operating lease liabilities (10,303) (7,877) 8,395
Other long-term liabilities (3,097) (6,749) 592
Deferred revenue (7,343) 5,599 6,854
Net cash provided by (used in) operating activities 187,768 (18,093) 4,623
Cash flows from investing activities:      
Cash paid for acquisition, net of acquired cash and cash equivalents (28,902) (144,349) (556,090)
Purchases of corporate and customer fund short-term investments (2,743,763) (2,801,697) (2,070,296)
Proceeds from maturities of corporate and customer fund short-term investments 3,283,961 1,902,474 1,104,532
Proceeds from sale of corporate and customer fund short-term investments 11,607 55,744 142,665
Increase in acquired card receivables, net (234,256) (129,178) (26,495)
Purchases of property and equipment (7,589) (5,377) (18,902)
Capitalization of internal-use software costs (23,614) (10,259) (2,304)
Proceeds from beneficial interest 2,080 6,699 0
Other (239) (1,359) 0
Net cash provided by (used in) investing activities 259,285 (1,127,302) (1,426,890)
Cash flows from financing activities:      
Proceeds from issuance of common stock upon public offering, net of underwriting discounts and other offering costs 0 1,341,122 0
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs 0 560,075 1,129,379
Purchase of capped calls 0 (37,893) (87,860)
Increase in customer fund deposits liability and other 204,390 941,003 563,291
Repurchase of common stock (87,615) 0 0
Increase in prepaid card deposits 26,584 29,886 0
Proceeds from line of credit borrowings 60,000 37,500 0
Payments on line of credit and bank borrowings 0 (40,000) (2,300)
Proceeds from exercise of stock options 13,872 34,024 28,209
Proceeds from issuance of common stock under the employee stock purchase plan 17,879 12,849 8,864
Net cash provided by financing activities 235,110 2,878,566 1,639,583
Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents (38) (149) 0
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents 682,125 1,733,022 217,316
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year 3,542,715 1,809,693 1,592,377
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year 4,224,840 3,542,715 1,809,693
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above:      
Cash and cash equivalents 1,617,151 1,596,542 509,615
Restricted cash included in other current assets 87,322 85,252 10,977
Restricted cash included in other assets 13,810 6,724 6,875
Restricted cash and restricted cash equivalents included in funds held for customers 2,506,557 1,854,197 1,282,226
Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year 4,224,840 3,542,715 1,809,693
Supplemental disclosure of cash flow information:      
Cash paid for interest during the period 7,440 4,867 112
Cash paid for income taxes during the period 1,266 0 0
Noncash investing and financing activities:      
Payable on purchases of property and equipment and internal-use software costs 174 1,936 664
Fair value of shares issued as consideration for acquisition 3,375 488,494 1,603,543
Fair value of stock-based awards assumed in acquisition 0 21,724 55,275
Fair value of earn-out consideration for acquisition 10,762 0 0
Recognition of beneficial interest $ 1,682 $ 4,690 $ 0
v3.23.2
The Company and Its Significant Accounting Policies
 12 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
The Company and Its Significant Accounting Policies THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES
Bill.com, Inc. was incorporated in the State of Delaware in April 2006. BILL.com Holdings, Inc., was incorporated in the State of Delaware in August 2018. In November 2018, Bill.com, Inc. consummated a reorganization with Bill.com Holdings, Inc. (renamed BILL Holdings, Inc. in February 2023), resulting in the latter becoming the parent entity of Bill.com, Inc. Bill.com, Inc. was subsequently converted into a limited liability company and renamed Bill.com, LLC. BILL Holdings, Inc. and its wholly owned subsidiaries are collectively referred to as the “Company”.
The Company is a provider of software-as-a-service, cloud-based payments, and spend and expense management products, which allow users to automate accounts payable and accounts receivable transactions, enable businesses to easily connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency.
Follow-on Offering
On September 24, 2021, the Company closed a public offering in which the Company issued and sold a total of 5,073,529 shares of common stock at a public offering price of $272.00 per share. The Company received $1.3 billion in net proceeds from this public offering, after deducting underwriting discounts, commissions, and other offering costs of $38.9 million.
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and were prepared in conformity with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC). All intercompany accounts and transactions have been eliminated.
Segment Reporting
The Company operates as one operating segment because its chief operating decision maker, who is the Chief Executive Officer, reviews its financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. The Company's long-lived assets are mainly located in the United States (U.S.) and revenue is mainly generated in the U.S. Long-lived assets outside the U.S. are not material as of June 30, 2023 and 2022. Total revenue from external customers outside of the U.S. was approximately 3% of consolidated total revenue during the years ended June 30, 2023 and 2022. There were no revenue from external customers outside of the U.S. for the year ended June 30, 2021.
Business Combinations
The Company accounts for acquisitions using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of the identifiable assets and liabilities is recorded as goodwill.
The determination of the fair value of assets acquired and liabilities assumed involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the date of the acquisition. Significant management inputs used in the estimation of fair value of assets acquired and liabilities assumed include, but are not limited to, expected future cash flows, future changes in technology, estimated replacement costs, discount rates, and assumptions about the period of time the brand will continue to be used in the Company’s product portfolio. Where appropriate, external advisers are consulted to assist in the determination of fair value. For non-observable market values, fair value has been determined using acceptable valuation methods (e.g., relief from royalty methods). The results of operations for businesses acquired are included in the financial statements from the acquisition date. Acquisition-related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred. During the measurement period, not to exceed one year from the date of acquisition,
the Company may record adjustments to the tangible and intangible assets acquired and liabilities assumed, including the fair value of acquired intangible assets, an indemnification asset related to certain assumed liabilities, net lease liabilities, uncertain tax positions, tax-related valuation allowances, and pre-acquisition contingencies with a corresponding offset to goodwill. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of operations.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make various estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Management regularly assesses these estimates, including, but not limited to useful lives of long-lived assets; capitalization of internal-use software costs; incremental borrowing rates for right-of-use (ROU) operating lease assets, and operating lease liabilities; the estimate of losses on accounts receivable, acquired card receivables and other financial assets; accrual for rewards; variable consideration used in revenue recognition for certain contracts; benefit periods used to amortize deferred costs; reserve for losses on funds held for customers; inputs used to value certain stock-based compensation awards; and valuation of income taxes. The Company evaluates these estimates and assumptions and adjusts them accordingly. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements.
Funds Held for Customers and Customer Fund Deposits
Funds held for customers and the corresponding liability on customer fund deposits represent funds that are collected from customers for payments to their suppliers and funds that are collected on behalf of customers. Generally, these funds held for customers are initially deposited in separate bank accounts until remitted to the customers’ suppliers or to the customers. Funds held for customers also include amounts that are held by or deposited into the accounts of payment processing companies and receivables from customers. The funds held for customers are restricted for the purpose of satisfying the customers’ fund obligations and are not available for general business use by the Company. The Company partially invests funds held for customers in highly liquid investments with maturities of three months or less, consisting of money market funds and marketable debt securities, and in marketable debt securities with maturities of more than three months up to thirteen months at the time of purchase. Funds held for customers that are invested in marketable debt securities are classified as available-for-sale. These investments are carried at fair value, with unrealized gains or losses included in accumulated other comprehensive loss on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss. The Company contractually earns interest on funds held for customers with associated counterparties.
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Cash and cash equivalents consist of cash in banks, highly liquid investments with maturities of three months or less at the time of purchase, and securities purchased under overnight reverse repurchase agreements.
Restricted cash consists of (i) amounts restricted under deposit account control agreements, (ii) minimum cash balances that are required to be maintained by certain banks, (iii) cash collateral required by the Company’s lessors to satisfy letter of credit requirements under its lease agreements, (iv) cash collateral required by a bank in connection with the Company’s money transmission activities, and (v) cash in bank and cash deposits held by payment processing companies included in funds held for customers.
Restricted cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase that are included in funds held for customers.
Except for the restricted cash included in funds held for customers, the current and non-current portion of the restricted cash is included in prepaid expenses and other current assets and in other assets, respectively, in the accompanying consolidated balance sheets.
Short–term Investments
The Company invests excess cash in a diversified portfolio of highly rated marketable debt securities with maturities of more than three months. These securities are classified as available-for-sale and recorded at fair value. The Company determines the appropriate classification of investments in marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. After consideration of risk versus reward attributes and liquidity requirements, the Company may sell these debt securities prior to their stated maturities. As the Company views these securities as available to support current operations, the Company classifies highly liquid securities with maturities beyond 12 months as current assets. Unrealized gains or losses are included in accumulated other comprehensive income (loss) on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss.
An impairment loss is recognized when the decline in fair value of the marketable debt securities is determined to be other than temporary. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which will be at maturity. The Company periodically evaluates its investments to determine if impairment charges are required. The Company determined that there was no other-than-temporary impairment on short-term investments during each of the years ended June 30, 2023, 2022, and 2021.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, restricted cash, restricted cash equivalents, short-term investments, accounts receivable, and acquired card receivables (collectively referred to as Financial Assets). The Company maintains its cash, cash equivalents, restricted cash, restricted cash equivalents and short-term investments with large multinational financial institutions that may at times exceed federally insured limits. In connection with recent instability in the U.S. banking system, the Company's management has taken incremental precautions to safeguard its assets and evaluate the nature and extent of its financial partnerships. Management believes that the financial institutions with which the Company does business are financially sound with minimal credit risk. Management further believes the associated risk of concentration for the Company’s investments is mitigated by holding a diversified portfolio of highly rated investments consisting of money market funds and short-term debt securities.
The Company performs credit evaluations to verify the credit quality of its financial assets and determine any at-risk receivables. An allowance for potential credit losses on Financial Assets is recognized, if material. As of June 30, 2023 and 2022, the allowance for potential credit losses related to accounts receivable and acquired card receivables totaled approximately $15.9 million and $5.8 million, respectively. These amounts do not include the immaterial allowance for potential credit losses on the purchase of card receivables that have been authorized but not cleared at the end of the periods (see Note 15).
There were no customers that exceeded 10% of the Company’s total revenue during each of the years ended June 30, 2023, 2022, and 2021.
Foreign Currency The functional currency of the Company's foreign subsidiaries is the U.S. dollar, which is the Company's reporting currency. Gains and losses from the remeasurement of transactions denominated in foreign currencies other than the functional currency of the foreign subsidiaries are included in other (expense) income, net in the accompanying statements of operations
Accounts Receivable and Unbilled Revenue
Accounts receivable, which consist primarily of fees from customers, including accounting firm and financial institution customers, are recorded at the invoiced amount, net of an allowance for credit losses. Unbilled revenue is recorded based on amounts that the Company expects to invoice to customers in the subsequent period. The allowance for credit losses related to accounts receivable and unbilled revenue is based on the Company’s assessment of the collectability of the receivables. The Company regularly reviews the adequacy of the allowance for credit losses by considering the age of each outstanding invoice and the
collection history of each customer to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for credit losses when identified. For all periods presented, the allowance for credit losses related to accounts receivable and unbilled revenue was not material.
Acquired Card Receivables
The portfolios of acquired card receivables are U.S. based commercial accounts diversified across various geographies and industries. The Company manages credit risk based on common risk characteristics including financial condition of the users of the spend and expense management application.
Acquired card receivables are reported at their principal amounts outstanding net of allowance for credit losses. Acquired card receivables are deemed to be held for investment when such receivables are not acquired specifically for resale.
As part of the onboarding process, users of the Company’s free spend and expense management application are provided with a credit limit subject to a credit policy and underwriting process which is periodically re-performed based on risk indicators and the size of the credit limit.
Spending businesses may over fund their accounts through payments in excess of the outstanding balance. Such over funded amounts are recorded as prepaid card deposits, which are included in other accruals and current liabilities in the accompanying consolidated balance sheets.
Acquired card receivables represent amounts due on card transactions integrated with the spend and expense management application. The Company is contractually obligated to purchase all card receivables from U.S.-based card issuing banks (Issuing Banks) including authorized transactions that have not cleared at the Issuing Banks. Acquired card receivables are recorded at the time a transaction clears the Issuing Banks and generally payment for the card receivables is made on the day the transaction clears the Issuing Banks.
The acquired card receivables portfolio consists of a large group of smaller balances from spending businesses across a wide range of industries. The allowance for credit losses reflects the Company’s estimate of uncollectible balances resulting from credit and fraud losses and is based on the determination of the amount of expected losses inherent in the acquired card receivable as of the reporting date. An estimate of lifetime expected credit losses is performed by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period beyond the balance sheet date. In estimating expected credit losses, the Company uses models that entail a significant amount of judgment. The primary areas of judgment used in measuring the quantitative components of the Company’s reserves relate to the attributes used to segment the portfolio, the determination of the historical loss experience look-back period, and the weighting of historical loss experience by monthly cohort. The Company uses these models and assumptions to determine the reserve rates applicable to the outstanding acquired card receivable balances to estimate reserves for expected credit losses. Based on historical loss experience, the probability of default decreases over time, therefore the attribute used to segment the portfolio is the length of time since an account’s credit limit origination. The Company’s models use past loss experience to estimate the probability of default and exposure at default by aged balances. The Company also estimates the likelihood and magnitude of recovery of previously written off loans based on historical recovery experience. Additionally, management evaluates whether to include qualitative reserves to cover losses that are expected but may not be adequately represented in the quantitative methods or the economic assumptions. The qualitative reserves address possible limitations within the models or factors not included within the models, such as external conditions, changes in underwriting strategies, the nature and volume of the portfolio, and the volume and severity of past due accounts. In general, acquired card receivables are written off after substantially the entire balance becomes 120 days delinquent. Assumptions regarding expected losses are reviewed periodically and may be impacted by actual performance of the acquired card receivables and changes in any of the factors discussed above. As of June 30, 2023 and 2022, the allowance for potential credit losses on acquired card receivables shown on the consolidated balance sheets totaled $15.5 million and $5.4 million, respectively. These amounts do not include the immaterial allowance for potential credit losses on purchase of card receivables that have been authorized but not cleared at the end of the periods (see Note 15).
Derivative Instruments
The Company retains a beneficial interest derivative in the form of a deferred purchase price on card receivables sold. This derivative is not designated as a hedging instrument, and is initially recorded at fair value, with subsequent changes in fair value recorded through other gains and losses. The Company does not use derivative instruments for speculative or trading purposes. The beneficial interest derivative is a residual interest in collections on card receivables sold, and serves to align the economic interests of the Company as servicer with those of the purchasing bank. Effective August 2022, the Company ceased selling acquired card receivables (see Note 7).
Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, generally one to four years. Leasehold improvements are amortized over the shorter of estimated useful lives of the assets or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition, the cost and related accumulated depreciation and amortization are removed from the accounts and the resulting gain or loss is reflected in the consolidated statements of operations.
The Company capitalizes internal and external direct costs incurred related to obtaining or developing internal-use software. Costs incurred during the application development stage are capitalized and are amortized using the straight-line method over the estimated useful lives of the software, generally three years commencing on the first day of the month following when the software is ready for its intended use. Costs related to planning and other preliminary project activities and post-implementation activities are expensed as incurred.
Goodwill
Goodwill represents the excess of the purchase price of the acquisition over the net fair value of identifiable assets acquired and liabilities assumed. Goodwill amounts are not amortized.
Intangible Assets
The Company generally recognizes assets for customer relationships, developed technology and finite-lived trade names from an acquisition. Finite-lived intangible assets are carried at acquisition cost less accumulated amortization. Such amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets, generally from three to ten years. Amortization for developed technology is recognized in cost of revenue. Amortization for customer relationships and trade names is recognized in sales and marketing expenses.
Impairment
Goodwill is tested annually at the reporting unit level for impairment during the fourth fiscal quarter or more frequently if facts or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. The Company has one reporting unit; therefore, all of its goodwill is associated with the entire company. Management has the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the Company is less than the carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of the Company is less than the carrying amount, a quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company also has the option to bypass the qualitative assessment and perform the quantitative assessment.
The Company reviews the valuation of long-lived assets, including property and equipment and finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The recoverability of long-lived assets or asset groups is calculated based on the
estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset. Impairment testing is performed at the asset group level.
Based on management's assessment, the Company did not recognize any impairment losses on its goodwill, finite-lived intangible assets or other long-lived assets during the periods presented herein.
Leases
The Company determines if an arrangement is a lease, or contains a lease, by evaluating whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. The Company determines the classification of the lease, whether operating or financing, at the lease commencement date, which is the date the leased assets are made available for use.
The Company uses the non-cancelable lease term when recognizing the ROU assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. The Company accounts for lease components and non-lease components as a single lease component. Modifications are assessed to determine whether incremental differences result in new contract terms and accounted for as a new lease or whether the additional right of use should be included in the original lease and continue to be accounted with the remaining ROU asset.
Operating lease ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives. Variable costs, such as common area maintenance costs, are not included in the measurement of the ROU assets and lease liabilities, but are expensed as incurred. As the implicit rate of the leases is not determinable, the Company uses an incremental borrowing rate in determining the present value of the lease payments. Lease expenses are recognized on a straight-line basis over the lease term.
The Company does not recognize ROU assets on lease arrangements with a term of 12 months or less. Lease expense for such arrangements is recognized on a straight-line basis over the term of the lease.
Accrued Rewards
Spending businesses participate in rewards programs based on card transactions. The Company records a rewards liability that represents the estimated cost for rewards owed to spending businesses. Rewards liabilities are impacted over time by redemption costs and by spending businesses meeting eligibility requirements. Changes in the rewards liabilities during the period are recognized as an increase or decrease to sales and marketing expense in the accompanying consolidated statements of operations. The accrued rewards liability, which was $55.4 million and $36.2 million as of June 30, 2023 and 2022, respectively, is included in other accruals and current liabilities in the accompanying consolidated balance sheets. The rewards expense, which was $173.9 million, $95.2 million, and $4.5 million, during the years ended June 30, 2023, 2022, and 2021, respectively, is included in sales and marketing expenses in the accompanying consolidated statements of operations.
Revenue Recognition
The Company enters into contracts with small and midsize businesses (SMB) and accounting firm customers to provide access to the functionality of the Company’s cloud-based payments platform to process transactions. These contracts are either monthly contracts paid in arrears or upfront, or annual arrangements paid up front. The Company charges its SMB and accounting firm customers subscription fees for access to its platform either based on the number of users or per customer account and the level of service. The Company generally also charges these customers transaction fees based on transaction volume and the category of transaction. The contractual price for subscription and transaction services is based on either negotiated fees or the rates published on the Company’s website.
The Company accounts for its annual and monthly contracts as a series of distinct services that are satisfied over time. The Company determines the transaction price for such contracts by estimating the total consideration to be received over the contract term from subscription and transaction fees. The Company
recognizes the transaction price as a single performance obligation based on the proportion of transactions processed to the total estimated transactions to be processed over the contract period. Revenues recognized exclude amounts collected on behalf of third parties, such as sales taxes collected and remitted to governmental authorities.
The Company enables SMB and accounting firm customers to make virtual card payments to their suppliers. The Company also facilitate the extension of credit to spending businesses through the Divvy product in the form of Divvy cards. The spending businesses utilize the credit on Divvy cards as a means of payment for goods and services provided by their suppliers. Virtual card payments and Divvy cards are originated through agreements with Issuing Banks. The agreements with the Issuing Banks allow for card transactions on the MasterCard and Visa networks. For each virtual card and Divvy card transaction, suppliers are required to pay interchange fees to the issuer of the card. Based on the Company's agreements with its Issuing Banks, the Company recognizes the interchange fees as revenue gross or net of rebates received from the Issuing Bank based on the Company's determination of whether it is the principal or agent under the agreements.
The Company enters into multi-year contracts with financial institution customers to provide access to the Company’s cloud-based payments platform to process transactions. These contracts typically include fees for initial implementation services that are paid during the period the implementation services are provided as well as fees for subscription and transaction processing services, which are subject to guaranteed monthly minimum fees that are paid monthly over the contract term. These contracts enable the financial institutions to provide their customers with access to online bill pay services through the financial institutions’ online platforms. Implementation services are required up-front to establish an infrastructure that allows the financial institutions’ online platforms to communicate with the Company’s online platform. A financial institution’s customers cannot access online bill pay services until implementation is complete.
Initial implementation services and transaction processing services are not capable of being distinct from the subscription for online bill pay services and are combined into a single performance obligation. The total consideration in these contracts varies based on the number of users and transactions to be processed. The Company has determined it meets the variable consideration allocation exception and therefore recognizes guaranteed monthly payments and any overages as revenue in the month they are earned. Implementation fees are recognized based on the proportion of transactions processed to the total estimated transactions to be processed over the contract period. The ability of the financial institution customers to renew their contracts without having to pay up-front implementation fees again could provide them a material right. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price.
Interest on Funds Held for Customers
The Company also earns revenue from interest earned on funds held for customers that are initially deposited into the Company’s bank accounts that are separate from the Company’s operating cash accounts until remitted to the customers or their suppliers. The Company partially invests funds held for customers in highly liquid investments with maturities of three months or less and in marketable debt securities with maturities of three months to one year at the time of purchase. Interest and fees earned are recognized based on the effective interest method and also include the accretion of discounts and the amortization of premiums on marketable debt securities.
Deferred Revenue
Subscription and transaction fees from customers for which the Company has annual or multi-year contracts are generally billed in advance. These fees are initially recorded as deferred revenue and subsequently recognized as revenue as the performance obligation is satisfied.
Deferred Costs
Deferred costs consist of (i) deferred sales commissions that are incremental costs of obtaining customer contracts and (ii) deferred service costs, primarily direct payroll costs, for implementation services provided to customers prior to the launching of the Company’s products for general availability (go-live) to customers. Sales commissions paid on renewals are not material and are not commensurate with sales commissions paid on the initial contract. Deferred sales commissions are amortized ratably over the estimated
life of the customer relationship aligned with the pattern of customer attrition, taking into consideration the initial contract term and expected renewal periods. Deferred service costs are amortized ratably over the estimated benefit period of the capitalized costs starting on the go-live date of the service.
Service Costs
Service costs consist primarily of personnel-related costs, including stock-based compensation expenses, for the Company’s customer success and payment operations teams, outsourced support services for the Company's customer success team, costs that are directly attributed to processing customers’, and spending businesses' transactions (such as the cost of printing checks, postage for mailing checks, fees associated with the issuance and processing of card transactions, fees for processing payments, such as ACH, check and cross-border wires), direct and amortized costs for implementing and integrating the Company’s platform into the customers’ systems, costs for maintaining, optimizing, and securing the Company’s cloud payments infrastructure, amortization of capitalized internal-use software (excluding capitalized stock-based compensation), fees on the investment of customer funds, and allocation of overhead costs.
Research and Development
Costs incurred in research and development, excluding development costs eligible for capitalization as internal-use software, are expensed as incurred.
Stock-based Compensation
The Company measures stock-based compensation for stock options and purchase rights issued under the Employee Stock Purchase Plan (ESPP) at fair value on the date of grant using the Black-Scholes option-pricing model. The Company measures stock-based compensation for restricted stock units (RSUs) and market-based RSUs based on the closing price of the Company’s stock and using the Monte Carlo simulation model, respectively, on the date of grant. The Company measures stock-based compensation for performance-based awards at fair value on the date of grant by using the Black-Scholes valuation option-pricing model or other valuation technique depending on the nature of the award. Awards that are classified as liabilities are remeasured at fair value at the end of each reporting period.
The Company recognizes compensation costs on a straight-line basis over the requisite service period, which is generally the vesting term of four years for stock options and RSUs, the offering period of one year for purchase rights under the ESPP, and the requisite period of one to three years for market-based RSUs. Stock compensation costs are reduced by the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the forfeiture rate based on its historical experience for annual grant years where the majority of the vesting terms have been satisfied. The Company recognizes compensation costs for performance-based awards over the vesting period if it is probable that the performance condition will be achieved.
The Black-Scholes option-pricing model and Monte Carlo simulation model require the use of highly subjective assumptions which determine the fair value of stock-based awards.
The main assumptions used in the Black-Scholes option-pricing model include:
Expected term – The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the stock-based awards.
Expected volatility – The expected volatility was estimated based on the historical volatility of the Company’s common stock.
Risk-free interest rate – The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of option.
Expected dividend yield – The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero.
The main assumptions used in the Monte Carlo simulation model include (i) expected volatility, (ii) risk-free interest rate, and (iii) performance period of the market-based RSU award, which represents the period that the Company's stock price condition has to be achieved in order for the award to vest.
Advertising
The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses during the years ended June 30, 2023, 2022, and 2021 were $39.0 million, $29.4 million, and $8.5 million, respectively.
Income Taxes
The Company accounts for income taxes using the asset and liability method, which requires the recognition of taxes payable or refundable for the current year and deferred income tax assets and liabilities for the future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the Company's assets and liabilities, net operating loss (NOL), and tax credit carryforwards. A valuation allowance is established to reduce deferred tax assets to the amount expected to be realized.
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies any liabilities for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.
Net Loss Per Share Attributable to Common Stockholders
Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders for all periods presented since the effect of potentially dilutive securities is anti-dilutive given the net loss of the Company.
New Accounting Pronouncements:
Adopted
In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance for Troubled Debt Restructurings (TDRs) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires a company to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The Company early adopted this ASU on a prospective basis beginning July 1, 2022. The Company does not expect the adoption to have a material impact on the Company's financial statements.
Not Yet Adopted
The Company does not expect that any other recently issued accounting pronouncements will have a significant effect on its financial statements.
v3.23.2
Revenue
 12 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
The Company generates revenue primarily from subscription and transaction fees. The table below shows the Company’s revenue from subscription and transaction fees, which are disaggregated by sales channel, and revenue from interest on funds held for customers (in thousands).
 
Year ended
June 30,
 202320222021
SMBs, accounting firms, spending businesses and other$901,602 $603,171 $218,227 
Financial institutions43,108 30,194 14,028 
Total subscription and transaction fees944,710 633,365 232,255 
Interest on funds held for customers113,758 8,594 6,010 
Total revenue$1,058,468 $641,959 $238,265 

Deferred revenue

Fees from customers with which the Company has annual or multi-year contracts are generally billed in advance. These fees are initially recorded as deferred revenue and subsequently recognized as revenue as the performance obligation is satisfied. During the year ended June 30, 2023, the Company recognized approximately $32 million of revenue that was included in the deferred revenue balance as of June 30, 2022.

Remaining performance obligations

The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized as revenue. As of June 30, 2023, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $131.1 million. Of the total remaining performance obligations, the Company expects to recognize approximately 77% within two years and 23% over the next three to five years thereafter. The Company determines remaining performance obligations at a point of time. Actual amounts and timing of revenue recognized may differ due to subsequent contract modifications, renewals and/or terminations.

Unbilled revenue

Unbilled revenue consists of revenue recognized that has not been billed to the customers yet. The unbilled revenue amounted to $14.0 million and $11.4 million as of June 30, 2023 and 2022, respectively.
Deferred costs
Deferred costs consisted of the following as of the dates presented (in thousands):
 June 30,
 20232022
Deferred sales commissions:
Current$6,523 $5,460 
Non-current12,317 9,187 
Total deferred sales commissions$18,840 $14,647 
Deferred service costs:
Current$904 $720 
Non-current2,221 3,433 
Total deferred service costs$3,125 $4,153 
The current portion of deferred costs is included in prepaid expenses and other current assets and the non-current portion is included in other assets in the accompanying consolidated balance sheets. The amortization of deferred sales commissions, which is included in sales and marketing in the accompanying
consolidated statements of operations, was $6.6 million, $5.2 million, and $3.6 million during the years ended June 30, 2023, 2022, and 2021, respectively. The amortization of deferred service costs, which is included in the service costs in the accompanying consolidated statements of operations, was $2.5 million, $1.6 million, and $0.6 million during the years ended June 30, 2023, 2022, and 2021, respectively.
v3.23.2
Business Combination
 12 Months Ended
Jun. 30, 2023
Business Combinations [Abstract]  
Business Combination BUSINESS COMBINATION
Fiscal 2022 Acquisition

On September 1, 2021, the Company acquired 100% of the outstanding equity interests of Invoice2go, LLC, and Cimrid Pty, Ltd (together, Invoice2go). The results of Invoice2go's operations have been included in the accompanying consolidated financial statements since the acquisition date. Invoice2go provides mobile-first accounts receivable software that empowers SMBs and freelancers to grow their client base, manage invoicing and payments, and build their brand. Invoice2go has operations in the U.S. and in Australia, and serves a large global customer base of SMBs. The acquisition of Invoice2go will enhance the Company’s ability to provide an expanded product solution to enable SMBs to manage accounts payable, corporate card spend, and accounts receivable all in one place. Additionally, the acquisition will expand the market opportunity for the Company by offering Invoice2go's product to its existing customers and network members and vice versa.

The acquisition purchase consideration totaled $674.3 million, which consisted of the following (in thousands):

Equity consideration (1)
$510,218 
Cash164,087 
Total$674,305 

(1) This includes 1,788,372 shares of the Company’s common stock issued with a fair value based upon the opening market price on the acquisition date. This also includes the stock options assumed to replace stock options that were outstanding on the acquisition date under Invoice2go's 2014 Equity Incentive Plan. The fair value of these stock options was $21.7 million, which was the amount attributable to the pre-combination requisite service period.
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):

Cash and cash equivalents$19,738 
Accounts receivable and other assets4,518 
Intangible assets91,219 
Total identifiable assets acquired115,475 
Accounts payable and other liabilities(26,618)
Net identifiable assets acquired88,857 
Goodwill585,448 
Net assets acquired$674,305 

The preliminary fair values allocated to the identifiable intangible assets (in thousands) and their estimated useful lives are as follows:

Preliminary
fair value		Weighted average
useful life
(in years)
Customer relationships$61,269 10.0
Developed technology15,908 3.0
Trade name14,042 3.0
Total$91,219 
Customer relationships were measured at fair value using the multiple-period excess earnings method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue and costs associated with existing customers, and a discount rate of 12.3%.

Developed technology was measured at fair value using the relief-from-royalty method of the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from existing technology, a pre-tax royalty rate of 15.0%, and a discount rate of 12.3%.

Trade name was measured at fair value using the relief-from-royalty method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from the trade name, a pre-tax royalty rate of 2.5%, and a discount rate of 12.3%.

The $585.4 million goodwill is attributable primarily to the expected synergies and economies of scale expected from combining the operations of both entities, and intangible assets that do not qualify for separate recognition, including assembled workforce acquired through the acquisition. None of the goodwill is expected to be deductible for income tax purposes. As a result of the adoption of ASU 2021-08 Business Combinations (Topic 805)—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers on October 1, 2021, retrospectively to September 1, 2021, the Company recorded adjustments of $8.0 million to increase goodwill and deferred revenue, and an immaterial amount to deferred income tax liability. The amounts recorded as measurement period adjustments were not material during the 12-month measurement period.

The Company recognized $3.7 million of acquisition-related costs that were expensed during the year ended June 30, 2022. These costs are shown as part of general and administrative expenses in the accompanying consolidated statements of operations.

The amount of Invoice2go’s revenue and net loss, which includes amortization of intangible assets, from the acquisition date of Invoice2go that were included in the Company’s consolidated statements of operations during the year ended June 30, 2022 were approximately $32.9 million and $32.0 million, respectively.

Unaudited Pro Forma Financial Information

The unaudited pro forma information below summarizes the combined results (in thousands) of the Company and Invoice2go as if the Company’s acquisition of Invoice2go closed on July 1, 2020, but does not necessarily reflect the combined actual results of operations of the Company and Invoice2go that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma information reflects certain adjustments that were directly attributable to the acquisition of Invoice2go, including additional depreciation and amortization adjustments for the fair value of the assets acquired and liabilities assumed. The pro forma net loss for the year ended June 30, 2022 was adjusted to exclude nonrecurring acquisition-related costs of $19.0 million. The pro forma net loss for the year ended June 30, 2021 was adjusted to exclude nonrecurring acquisition-related costs of $20.6 million.

Year ended June 30,
20222021
Revenue$648,476 $274,842 
Net loss$(327,136)$(149,003)

Fiscal 2021 Acquisition

On June 1, 2021, the Company acquired 100% of the outstanding equity interests of DivvyPay, Inc. (Divvy). The results of Divvy’s operations have been included in the consolidated financial statements since the acquisition date. Divvy offers a cloud-based spend management application and smart corporate cards to SMBs in the U.S. The acquisition of Divvy will enhance the Company’s ability to provide an expanded solution to enable SMBs to manage accounts payable, corporate card spend, and accounts receivable all in one place. Additionally, the acquisition will expand the market opportunity for the Company by offering a spend management application combined with smart corporate cards to its existing customers and network members.

The acquisition purchase consideration totaled $2.3 billion, which consisted of the following (in thousands):
Equity consideration (1)
$1,658,818 
Cash664,779 
  Total$2,323,597 

(1) This includes 10,767,140 shares of the Company’s common stock issued with a fair value based upon the opening market price on the acquisition date. This also includes the stock options assumed to replace stock options that were granted after May 1, 2019 under Divvy’s 2016 Equity Incentive Plan and were outstanding on the acquisition date. The fair value of these stock options was $55.3 million, which was the amount attributable to the pre-combination requisite service period.

The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):

Cash $108,689 
Acquired card receivables159,784 
Accounts receivable7,435 
Card receivables held for sale12,730 
Property and equipment15,805 
Intangible assets423,000 
Prepaid expenses and other assets57,669 
   Total identifiable assets acquired785,112 
Accounts payable and other liabilities(153,855)
Outstanding borrowings from credit facilities(79,703)
   Total liabilities assumed(233,558)
 Net identifiable assets acquired551,554 
 Goodwill1,772,043 
   Net assets acquired$2,323,597 

The fair values allocated to the identifiable intangible assets (in thousands) and their estimated useful lives are as follows:

Fair valueWeighted average useful life (in years)
Customer relationships$198,000 10.0
Developed technology191,000 6.0
Trade name34,000 3.0
   Total$423,000 

Following the acquisition of Divvy, the Company had a period of not more than 12 months to finalize the fair values of assets acquired and liabilities assumed, including valuations of identifiable intangible assets and indemnification asset related to certain assumed liabilities at the acquisition date. During the 12-month measurement period, the Company remeasured the fair value of the leases acquired and the replacement stock-based awards included in the purchase consideration. The effect of these measurement period adjustments resulted in a decrease of goodwill by $2.7 million. There were no other material adjustments made during the 12-month measurement period related to the acquisition of Divvy.
Customer relationships were measured at fair value using the multiple-period excess earnings method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue and costs associated with existing customers, and a discount rate of 16.0%.
Developed technology was measured at fair value using the relief-from-royalty method of the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from existing technology, a pre-tax royalty rate of 15.0%, and a discount rate of 16.0%.
Trade name was measured at fair value using the relief-from-royalty method under the income approach. Significant inputs used to measure the fair value include an estimate of projected revenue from the trade name, a pre-tax royalty rate of 1.0%, and a discount rate of 16.0%.
The $1.8 billion goodwill is attributable primarily to the expected synergies and economies of scale expected from combining the operations of both entities, and intangible assets that do not qualify for separate recognition, including assembled workforce acquired through the acquisition. Goodwill is not expected to be deductible for income tax purposes.
As of the acquisition date, the fair value of card receivables held for sale, which approximates the gross contractual amount, was $12.7 million. These receivables were substantially settled as of June 30, 2021.
Pursuant to the terms of the merger agreement, the Company recognized an indemnification asset of $13.4 million and $20.4 million related to certain assumed liabilities at the acquisition date as of June 30, 2022 and 2021, respectively. The indemnification asset was measured and recognized on the same basis and at the same time as the indemnified liabilities.
The Company recognized $15.5 million of acquisition-related costs that were expensed during the year ended June 30, 2021. These costs are shown as part of general and administrative expenses in the accompanying consolidated statements of operations.
The amounts of Divvy’s total revenue and net loss that were included in the Company’s consolidated statement of operations from the acquisition date through June 30, 2021 were $10.3 million and $11.4 million, respectively.

Unaudited Pro Forma Financial Information
The unaudited pro forma information does not necessarily reflect the actual results of operations of the combined entities that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma information reflects certain adjustments that were directly attributable to the acquisition of Divvy, including additional depreciation and amortization adjustments for the fair value of the assets acquired and liabilities assumed. The pro forma net loss for the year ended June 30, 2021 was adjusted to exclude nonrecurring acquisition related costs of $2.3 million. Below is the unaudited pro forma financial information of the combined results of operations of the Company and Divvy as if the acquisition occurred on July 1, 2019 (in thousands).

Year ended
June 30,
2021
Total revenue$307,618 
Net loss$(223,470)
v3.23.2
Fair Value Measurement
 12 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurement FAIR VALUE MEASUREMENT
The Company measures and reports its cash equivalents, short-term investments, funds held for customers that are invested in money market funds and marketable debt securities, and contingent consideration at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.
The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:
Level 1 –     Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 –     Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can
be corroborated by observable market data for substantially the full term of the related assets or liabilities.
Level 3 –     Unobservable inputs that are supported by little or no market activity for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the assets or liabilities.
In determining fair value, the Company utilizes quoted market prices, or valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and also considers counterparty credit risk in its assessment of fair value.
The following tables set forth the fair value of assets and liabilities that were measured at fair value on a recurring basis based on the three-tier fair value hierarchy as of the dates presented (in thousands):
June 30, 2023
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$1,131,621 $— $— $1,131,621 
Certificates of deposit— 2,578 — 2,578 
Corporate bonds— 45,301 — 45,301 
U.S. treasury securities44,856 — — 44,856 
1,176,477 47,879 — 1,224,356 
Short-term investments:
Corporate bonds— 479,483 — 479,483 
U.S. treasury securities408,368 — — 408,368 
U.S. agency securities— 57,967 — 57,967 
Asset-backed securities— 51,193 — 51,193 
Certificates of deposit— 46,099 — 46,099 
408,368 634,742 — 1,043,110 
Funds held for customers:
Restricted cash equivalents
Money market funds713,469 — — 713,469 
713,469 — — 713,469 
Short-term investments
Corporate bonds— 433,920 — 433,920 
Certificates of deposit— 233,291 — 233,291 
U.S. agency securities— 27,458 — 27,458 
Asset-backed securities— 70,661 — 70,661 
U.S. treasury securities81,074 — — 81,074 
81,074 765,330 — 846,404 
Total assets measured at fair value$2,379,388 $1,447,951 $— $3,827,339 
Liabilities
Contingent consideration(1)
— — (12,035)— 
Total liabilities measured at fair value$— $— $(12,035)$— 
(1) The Company used the probability-weighted discounted cash flow method to estimate the contingent consideration. The significant inputs used in the fair value measurement of the contingent consideration are the probability of payout and discount rate. As these inputs are not based on observable market data, the liability represents a Level 3 measurement within the fair value hierarchy.
June 30, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$1,424,259 $— $— $1,424,259 
Corporate bonds— 11,430 — 11,430 
1,424,259 11,430 — 1,435,689 
Short-term investments:
Corporate bonds— 597,204 — 597,204 
U.S. treasury securities421,728 — — 421,728 
Asset-backed securities— 51,406 — 51,406 
Certificates of deposit— 38,155 — 38,155 
421,728 686,765 — 1,108,493 
Funds held for customers:
Restricted cash equivalents
Money market funds34,703 — — 34,703 
Corporate bonds— 133,557 — 133,557 
34,703 133,557 — 168,260 
Short-term investments
Corporate bonds— 807,685 — 807,685 
Certificates of deposit— 397,533 — 397,533 
Municipal bonds— 6,516 — 6,516 
Asset-backed securities— 69,912 — 69,912 
U.S. treasury securities3,072 — — 3,072 
3,072 1,281,646 — 1,284,718 
Beneficial interest derivative on card receivables sold— — 398 398 
Total assets measured at fair value$1,883,762 $2,113,398 $398 $3,997,558 
There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented.
The fair values of the Company’s Level 1 instruments were derived from quoted market prices and active markets for these specific instruments.
The valuation techniques used to measure the fair values of Level 2 instruments were derived from non-binding market consensus prices that were corroborated with observable market data, quoted market prices for similar instruments, or pricing models.
The Company has $575 million and $1.15 billion in aggregate principal amount of its 0% convertible senior notes due in 2027 (2027 Notes) and in 2025 (2025 Notes, together with the 2027 Notes, the Notes), respectively, outstanding as of June 30, 2023. The Company carries the Notes at par value, less the unamortized issuance costs in the accompanying consolidated balance sheets. The estimated fair value of the 2027 Notes and 2025 Notes, which is presented for disclosure purposes only, was approximately $473.7 million and $1.19 billion, respectively, as of June 30, 2023. The fair value was based on a market approach, which represents a Level 2 valuation estimate. The market approach was determined based on the actual bids and offers of the Notes in an over-the-counter market as of the last day of trading prior to the end of the period.
v3.23.2
Short-Term Investments
 12 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Short-Term Investments SHORT-TERM INVESTMENTS
Short-term investments consisted of the following as of the dates presented (in thousands):
June 30, 2023
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Corporate bonds$481,658 $207 $(2,382)$479,483 
U.S. treasury securities409,586 42 (1,260)408,368 
Asset-backed securities51,321 8 (136)51,193 
Certificates of deposit46,099 — — 46,099 
U.S. agency securities58,166 — (199)57,967 
$1,046,830 $257 $(3,977)$1,043,110 
June 30, 2022
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair value
Corporate bonds$601,987 $3 $(4,786)$597,204 
U.S. treasury securities424,644 1 (2,917)421,728 
Asset-backed securities51,622 — (216)51,406 
Certificates of deposit38,155 — — 38,155 
$1,116,408 $4 $(7,919)$1,108,493 
The amortized cost and fair value amounts include accrued interest receivable of $4.3 million and $3.0 million at June 30, 2023 and 2022, respectively.
As of June 30, 2023, the fair value of the Company’s short-term investments that mature within one year and thereafter was $758.1 million and $285.0 million, respectively, or 73% and 27%, respectively, of the Company’s total short-term investments. As of June 30, 2022, the fair value of the Company’s short-term investments that mature within one year and thereafter was $961.8 million and $146.7 million, respectively, or 87% and 13%, respectively, of the Company’s total short-term investments.
As of June 30, 2023, approximately 190 out of approximately 330 investment positions were in an unrealized loss position. The following table presents the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands):
June 30, 2023
Fair valueUnrealized
losses
Corporate bonds$296,562 $(2,382)
U.S. treasury securities213,726 (1,260)
Asset-backed securities38,426 (136)
U.S. agency securities57,967 (199)
Total$606,681 $(3,977)
June 30, 2022
Fair valueUnrealized
losses
Corporate bonds$392,699 $(4,786)
U.S. treasury securities411,787 (2,917)
Asset backed securities51,406 (216)
Total$855,892 $(7,919)
The Company investments balance with unrealized losses that had been in a continuous unrealized loss position for less than 12 months was $506.5 million and $851.8 million as of June 30, 2023 and June 30, 2022, respectively. Investments balance with unrealized losses that had been in a continuous unrealized loss position for more than 12 months was $100.2 million and not material as of June 30, 2023 and June 30, 2022, respectively. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which will be at maturity. Therefore, the Company does not consider those unrealized investment losses as other-than-temporary impairment of the investments. There have been no significant realized gains or losses on the short-term investments during each of the years ended June 30, 2023, 2022, and 2021.
The Company has not recorded an allowance for credit losses on investments that were in an unrealized loss position as of each of June 30, 2023 and 2022 because they were not material.
v3.23.2
Funds Held for Customers
 12 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Funds Held for Customers FUNDS HELD FOR CUSTOMERS
Funds held for customers consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Restricted cash$1,793,088 $1,685,937 
Restricted cash equivalents713,469 168,260 
Funds receivable
12,822 6,747 
Corporate bonds433,920 807,685 
Certificates of deposit233,291 397,533 
Municipal bonds— 6,516 
Asset-backed securities70,661 69,912 
U.S. agency securities27,458 — 
U.S. treasury securities81,074 3,072 
Total funds held for customers3,365,783 3,145,662 
Less - income earned by the Company included in other current assets
(9,874)(3,002)
Total funds held for customers, net of income earned by the Company
$3,355,909 $3,142,660 
Income earned by the Company that is included in other current assets represents interest income, accretion of discount (offset by amortization of premium), and net unrealized gains on customer funds that were invested in money market funds and short-term marketable debt securities. Earnings from these investments are contractually earned by the Company and are expected to be transferred into the Company’s corporate deposit account upon sale or settlement of the associated investment, and are not considered funds held for customers.
Below is a summary of the fair value of funds held for customers that were invested in short-term marketable debt securities as of the dates presented (in thousands):
June 30, 2023
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Corporate bonds$433,936 $18 $(34)$433,920 
Certificates of deposit233,290 1 — 233,291 
Asset-backed securities70,993 — (332)70,661 
U.S. agency securities27,484 5 (31)27,458 
U.S. treasury securities81,309 1 (236)81,074 
Total$847,012 $25 $(633)$846,404 
June 30, 2022
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Corporate bonds$809,113 $1 $(1,429)$807,685 
Certificates of deposit397,533 — — 397,533 
Municipal bonds6,542 — (26)6,516 
Asset backed securities70,574 — (662)69,912 
U.S. treasury securities3,082 — (10)3,072 
Total$1,286,844 $1 $(2,127)$1,284,718 
The amortized cost and fair value amounts include accrued interest receivable of $6.9 million and $3.0 million at June 30, 2023 and 2022, respectively.
As of June 30, 2023, approximately 93%, or $785.3 million, of the total funds held for customers invested in marketable debt securities mature within one year and approximately 7%, or $61.1 million, mature thereafter. As of June 30, 2022, 95%, or $1.2 billion, of the funds held for customers invested in short-term marketable debt securities matured within one year and approximately 5%, or $69.9 million, mature thereafter.
As of June 30, 2023, approximately 50 out of approximately 230 investment positions were in an unrealized loss position. The following tables present the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands):
June 30, 2023
Fair valueUnrealized
losses
Corporate bonds$34,530 $(34)
Asset-backed securities70,661 (332)
U.S. agency securities22,494 (31)
U.S. treasury securities74,888 (236)
Total$202,573 $(633)
June 30, 2022
Fair valueUnrealized
losses
Corporate bonds$301,625 $(1,429)
Municipal bonds6,516 (26)
Asset backed securities64,361 (662)
U.S. treasury securities3,072 (10)
Total$375,574 $(2,127)
Investments with unrealized losses have been in a continuous unrealized loss position for less than 12 months was $191.0 million and $375.6 million as of June 30, 2023 and June 30, 2022, respectively. Investments balance with unrealized losses that had been in a continuous unrealized loss position for more than 12 months was not material as of June 30, 2023 and 2022. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which will be at maturity. Therefore, the Company does not consider those unrealized investment losses as other-than-temporary impairment of the investments. There have been no significant realized gains or losses on funds held for customers that were invested in short-term marketable debt securities during each of the years ended June 30, 2023, 2022, and 2021.
The Company has not recorded an allowance for credit losses on investments that were in an unrealized loss position as of each of June 30, 2023 and 2022 because they were not material.
v3.23.2
Acquired Card Receivables
 12 Months Ended
Jun. 30, 2023
Acquired Card Receivables [Abstract]  
Acquired Card Receivables ACQUIRED CARD RECEIVABLES
Acquired Card Receivables
Acquired card receivables consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Gross amount of acquired card receivables$474,148 $261,806 
Less: allowance for credit losses(15,498)(5,414)
Total$458,650 $256,392 
Certain lines of credit and acquired card receivable balances are collateralized by cash deposits held by the Issuing Banks. Before an account is charged off, the Company obtains any available cash collateral from the Issuing Banks. As of June 30, 2023, approximately $188.0 million of the acquired card receivable balance served as collateral for the Company’s borrowings from the Revolving Credit Facility (see Note 10).
The Company incurred losses related to card transactions disputed by spending businesses. The amounts were not material during each of the years ended June 30, 2023 and 2022.
The acquired card receivable balances above do not include purchases of card receivables from the Issuing Banks that have not cleared at the end of the reporting period. Purchases of card receivables that have not cleared as of June 30, 2023 totaled $68.6 million. The Company recognized an immaterial amount of expected credit losses on the purchased card receivables that have not cleared yet as of each of June 30, 2023 and 2022 (see Note 15).
Credit Quality Information
The Company regularly reviews collection experience, delinquencies, and net charge-offs in determining allowance for credit losses related to acquired card receivables. Historical collections rates have shown that days past due is the primary indicator of the likelihood of loss. The Company uses the delinquency trends or past due status of the acquired card receivables as the credit quality indicator. Acquired card
receivables are considered past due if full payment is not received on the bill date or within a grace period, which is generally limited to five days. Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands):
June 30,
20232022
Current and less than 30 days past due$463,704 $257,618 
30 ~ 59 days past due2,507 1,677 
60 ~ 89 days past due4,544 1,199 
90 ~ 119 days past due3,196 1,186 
Over 119 days past due197 126 
Total$474,148 $261,806 
The amount of outstanding balance of acquired card receivables that is (i) 90 days or more past due that continue to accrue fees and has an allowance for outstanding balance and fees and (ii) classified as nonperforming was not material as of each of June 30, 2023 and 2022.
As part of its collection efforts, the Company may modify card receivables terms with spending businesses that defaulted on payments; such modifications may include principal forgiveness, late fee forgiveness, and/or an extension of payment terms. Total card receivables subject to such modifications were not material during the years ended June 30, 2023 and 2022. Outstanding and modified card receivables as of June 30, 2023 subject to modification were not material. Upon the Company's determination that a modified card receivable (or a portion of the card receivable) has subsequently been deemed uncollectible, the card receivable balance and allowance for credit losses are adjusted for the uncollectible portion.
Allowance for Credit Losses
Below is a summary of the changes in allowance for credit losses (in thousands):
June 30,
20232022
Balance, beginning
$5,414 $1,740 
Initial allowance for credit losses on purchased card receivables with credit deterioration
10 313 
Provision for expected credit losses32,015 19,566 
Charge-off amounts(24,120)(18,005)
Recoveries collected2,179 1,800 
Balance, ending
$15,498 $5,414 
Card receivables acquired from the Issuing Banks and held for investment during the years ended June 30, 2023 and 2022 were $13.2 billion and $6.6 billion, respectively. The allowance for credit losses related to acquired card receivables increased during the year ended June 30, 2023 due to portfolio growth.
Gross charge-off amounts for the year ended June 30, 2023 consisted of $6.5 million that originated in the year ended June 30, 2022 and $17.6 million that originated in the year ended June 30, 2023.
Card Receivables Held for Sale
The Company sells a portion of acquired card receivables to a purchasing bank at a discount. Effective August 2022, the Company ceased selling acquired card receivables.
Card receivables held for sale, which are carried at the lower of cost or estimated market value at the individual user account level based on pricing agreed upon with the purchasing bank plus an estimate of the deferred purchased card receivables held for sale, are included in prepaid expenses and other current assets in
the accompanying consolidated balance sheets, amounted to zero and $8.7 million as of June 30, 2023 and 2022, respectively.
Card Receivables Sold and Related Servicing and Beneficial Interest Derivative Retained
The Company accounts for the transfer of card receivables as a sale if all of the following conditions are met:

•the financial asset is isolated from the transferor and its consolidated affiliates as well as its creditors, even in bankruptcy or other receivership;

•the transferee or beneficial interest holders have the right to pledge or exchange the transferred financial asset; and

•the transferor, its consolidated affiliates and its agents do not maintain effective control over the transferred financial asset

The card receivables that the Company transferred to the purchasing bank during each of the years ended June 30, 2023 and 2022 met all of the requirements described above; therefore, the Company accounted for the transfer as a sale of financial assets. Accordingly, the Company measures gain or loss on the sales of financial assets as the net proceeds less the carrying amount of the card receivables sold. The net proceeds represent the fair value of any assets obtained or liabilities incurred as part of the transfer, including, but not limited to, servicing assets, servicing liabilities, or beneficial interest derivatives.
Under the agreement with the purchasing bank, the Company had a continuing involvement as servicer. Effective August 2022, the Company ceased selling acquired card receivables. The outstanding transferred card receivable balance as of June 30, 2023 and 2022 was zero and $57.3 million, respectively. The fair value of the beneficial interest derivative, which is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets, was zero and immaterial as of June 30, 2023 and 2022, respectively. The servicing fee income was not material during each of the years ended June 30, 2023 and 2022.

Below is a summary of the fair value of consideration received from the transfer of card receivables accounted for as a sale during the periods presented (in thousands):
Year ended June 30,
2023(1)
2022
Initial fair value of consideration received:
Cash$316,477 $1,483,481 
Beneficial interest derivative1,682 4,690 
Total$318,159 $1,488,171 
(1) Effective August 2022, the Company ceased selling acquired card receivables.
Card receivable repurchases during each of the years ended June 30, 2023 and 2022 were not material.
Below is a summary of outstanding transferred card receivables by class (i.e., past due status) that have not been charged-off and have not been recorded on the Company's consolidated balance sheets, but with which the Company has a continuing involvement through its servicing agreements, as of the dates
presented (in thousands):
June 30,
2023(1)
2022
Current and less than 30 days past due$— $56,162 
30 ~ 59 days past due— 292 
60 ~ 89 days past due— 375 
90 ~ 119 days past due— 422 
Over 119 days past due— 30 
Total$— $57,281 
(1) Effective August 2022, the Company ceased selling acquired card receivables
The difference between the outstanding balance of transferred card receivables as of June 30, 2022 and the amount derecognized for which the Company has a continuing involvement as a servicer as of June 30, 2022 was not material.
v3.23.2
Property and Equipment
 12 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment PROPERTY AND EQUIPMENT
Property and equipment consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Software and equipment$20,971 $20,102 
Capitalized software53,950 21,457 
Furniture and fixtures12,598 10,608 
Leasehold improvements39,068 35,105 
Property and equipment, gross126,587 87,272 
Less: accumulated depreciation and amortization(45,023)(30,287)
Property and equipment, net$81,564 $56,985 
Depreciation and amortization expense, which includes the amortization of capitalized software, during the years ended June 30, 2023, 2022, and 2021 was $15.5 million, $11.5 million, and $5.4 million, respectively.
As of June 30, 2023 and 2022, the unamortized capitalized software cost was $42.7 million and $15.7 million, respectively.
v3.23.2
Goodwill and Intangible Assets
 12 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS
Goodwill
Goodwill, which is primarily attributable to expected synergies from acquisitions and is not deductible for U.S. federal and state income tax purposes, consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Balance, beginning$2,362,893 $1,772,043 
Addition related to acquisition during the period33,441 585,448 
Measurement period adjustments175 (2,876)
Adoption of ASU 2021-08— 8,278 
Balance, ending$2,396,509 $2,362,893 
Intangible Assets
Intangible assets consisted of the following as of the dates presented (amounts in thousands):
June 30, 2023
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted average remaining
useful life
(In years)
Customer relationships$259,269 $(52,483)$206,786 8.0
Developed technology215,958 (77,178)138,780 3.8
Trade name48,042 (32,181)15,861 1.0
Total$523,269 $(161,842)$361,427 
Jun 30, 2022
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted average remaining
useful life
(In years)
Customer relationships$259,269 $(26,556)$232,713 9.0
Developed technology206,908 (38,909)167,999 4.7
Trade name48,042 (16,171)31,871 2.0
Total$514,219 $(81,636)$432,583 
Amortization of finite-lived intangible assets was as follows during the years ended June 30, 2023 and 2022 (in thousands):
June 30,
20232022
Cost of revenue$38,269 $36,256 
Sales and marketing41,936 39,721 
Total$80,205 $75,977 
As of June 30, 2023, future amortization of finite-lived intangible assets that will be recorded in cost of revenue and operating expenses is estimated as follows (in thousands):
Fiscal years ending June 30:
Amount
2024$79,953 
202561,234 
202659,570 
202756,912 
202826,606 
Thereafter77,152 
Total$361,427 
v3.23.2
Debt and Bank Borrowings
 12 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Debt and Bank Borrowings DEBT AND BANK BORROWINGS
Debt and borrowings consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Current liabilities:
Borrowings from credit facilities
   (including unamortized debt premium)(1)
$135,046 $75,097 
Non-current liabilities:
Convertible senior notes:
2027 Notes, principal$575,000 $575,000 
2025 Notes, principal1,150,000 1,150,000 
Less: unamortized issuance costs(20,218)(27,015)
Convertible senior notes, net$1,704,782 $1,697,985 
Total $1,839,828 $1,773,082 

(1) Unamortized debt issuance costs on the Revolving Credit Facility were $0.2 million and zero as of June 30, 2023 and June 30, 2022, respectively, and are included in Prepaid expense and other current assets on the consolidated balance sheet.
2027 Notes
On September 24, 2021, the Company issued $575.0 million in aggregate principal amount of its 0% convertible senior notes due on April 1, 2027, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2027 Notes are subject to the terms and conditions of the indenture governing the 2027 Notes between the Company and Wells Fargo Bank, N.A., as trustee (2027 Notes Trustee). The net proceeds from the issuance of the 2027 Notes were $560.1 million, after deducting debt discount and debt issuance costs totaling $14.9 million.
The 2027 Notes are senior, unsecured obligations of the Company, and will not accrue interest unless the Company determines to pay special interest as a remedy for failure to timely file any reports required to be filed with the SEC, certain trading restrictions or failure to deliver reports to the 2027 Notes Trustee. The 2027 Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the 2027 Notes and rank equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated, including the 2025 Notes. In addition, the 2027 Notes are subordinated to any of the Company’s secured indebtedness and to all indebtedness and other liabilities of the Company’s subsidiaries.
The 2027 Notes have an initial conversion rate of 2.4108 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $414.80 per share of the Company’s common stock and approximately 1.4 million shares issuable upon conversion. The conversion rate is subject to customary adjustments for certain events as described below. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. The Company’s current intent is to settle conversions of the 2027 Notes through a combination settlement, which involves a repayment of the principal portion in cash with any excess of the conversion value over the principal amount settled in shares of common stock.
The Company may redeem for cash, all or any portion of the 2027 Notes, at the Company’s option, on or after October 5, 2024 if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day (Conversion Condition) preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the 2027 Notes.
The holders of the 2027 Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding January 1, 2027 in multiples of $1,000 principal amount, under the following circumstances:
•during any calendar quarter commencing after the calendar quarter ending on December 31, 2021, and only during such calendar quarter, if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;
•during the five business day periods after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2027 Notes for each trading day of that period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day;
•if the Company calls such notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or
•upon the occurrence of specified corporate events.
The conversion rate is subject to adjustment upon the occurrence of certain events or if the Company’s board of directors determines it is in the best interest of the Company. Additionally, holders of the 2027 Notes that convert their notes in connection with a make-whole fundamental change or during the redemption period, may be eligible to receive a make-whole premium through an increase of the conversion rate based on the estimated fair value of the 2027 Notes for the given date and stock price. The make-whole premium is designed to compensate the holder for lost “time-value” of the conversion option. The maximum number of additional shares that may be issued under the make-whole premium is 1.2656 per $1,000 principal (the lowest price of $272.00 in the make whole).
The indenture governing the 2027 Notes contains customary events of default with respect to the 2027 Notes and provides that upon certain events of default occurring and continuing, the holders of the 2027 Notes will have the right, at their option, to require the Company to repurchase for cash all or a portion of their outstanding notes, at a price equal to 100% of the principal amount of the 2027 Notes to be repurchased, plus any accrued and unpaid interest.
2025 Notes

On November 30, 2020, the Company issued $1.15 billion in aggregate principal amount of its 0% convertible senior notes due on December 1, 2025, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2025 Notes are subject to the terms and conditions of the indenture governing the 2025 Notes between the Company and Wells Fargo Bank, N.A., as trustee (2025 Notes Trustee). The net proceeds from the issuance of the 2025 Notes were $1.13 billion, after deducting debt discount and debt issuance costs totaling $20.6 million.
The 2025 Notes are senior, unsecured obligations of the Company, and will not accrue interest unless the Company determines to pay special interest as a remedy for failure to timely file any reports required to be filed with the SEC, certain trading restrictions, or failure to deliver reports to the 2025 Notes Trustee. The 2025 Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the 2025 Notes and rank equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated, including the 2027 Notes. In addition, the 2025 Notes are subordinated to any of the Company’s secured indebtedness and to all indebtedness and other liabilities of the Company’s subsidiaries.
The 2025 Notes have an initial conversion rate of 6.2159 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $160.88 per share of the Company’s common stock and approximately 7.1 million shares issuable upon conversion. The conversion rate is subject to customary adjustments for certain events as described below. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. The Company’s current intent is to settle conversions of the 2025 Notes through
a combination settlement, which involves a repayment of the principal portion in cash with any excess of the conversion value over the principal amount settled in shares of common stock.
The Company may redeem for cash, all or any portion of the 2025 Notes, at the Company’s option, on or after December 5, 2023 if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day (Conversion Condition) preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the 2025 Notes.
The holders of the 2025 Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding September 1, 2025 in multiples of $1,000 principal amount, under the following circumstances:
•during any calendar quarter commencing after the calendar quarter ending on March 31, 2021, and only during such calendar quarter, if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;
•during the five business day periods after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2025 Notes for each trading day of that period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day;
•if the Company calls such notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or
•upon the occurrence of specified corporate events.
The conversion rate is subject to adjustment upon the occurrence of certain events or if the Company’s board of directors determines it is in the best interest of the Company. Additionally, holders of the 2025 Notes that convert their notes in connection with a make-whole fundamental change or during the redemption period, may be eligible to receive a make-whole premium through an increase of the conversion rate based on the estimated fair value of the 2025 Notes for the given date and stock price. The make-whole premium is designed to compensate the holder for lost “time-value” of the conversion option. The maximum number of additional shares that may be issued under the make-whole premium is 2.9525 per $1,000 principal (the lowest price of $109.07 in the make whole).
The indenture governing the 2025 Notes contains customary events of default with respect to the 2025 Notes and provides that upon certain events of default occurring and continuing, the holders of the 2025 Notes will have the right, at their option, to require the Company to repurchase for cash all or a portion of their outstanding notes, at a price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus any accrued and unpaid interest.
Additional Information About the Notes
As of June 30, 2023 and 2022, the Notes consisted of the following (in thousands):
June 30, 2023June 30, 2022
2027 Notes2025 Notes2027 Notes2025 Notes
Liability component:
Principal$575,000 $1,150,000 $575,000 $1,150,000 
Less: unamortized debt issuance costs(10,188)(10,030)(12,873)(14,142)
Net carrying amount$564,812 $1,139,970 $562,127 $1,135,858 
The debt issuance costs of the Notes are being amortized using the effective interest method. During the years ended June 30, 2023 and 2022, the Company recognized $6.8 million and $6.1 million, respectively, of the debt issuance costs of the Notes. The effective interest rates of the 2027 Notes and 2025 Notes was 0.48% and 0.36%, respectively. As of June 30, 2023, the weighted-average remaining life of the Notes was 2.9 years.
The "if-converted" value of the Notes did not exceed the principal amount of $1.7 billion as of June 30, 2023.
Capped Call Transactions
In conjunction with the issuance of each of the 2025 Notes and the 2027 Notes, the Company entered into capped call transactions (collectively, the Capped Calls) with certain of the initial purchasers of the Notes and/or their respective affiliates or other financial institutions at a total cost of $125.8 million. The Capped Calls are separate transactions and are not part of the terms of the Notes. The total amount paid for the Capped Calls was recorded as a reduction of additional paid-in capital. The Company used the proceeds from the Notes to pay for the cost of the Capped Call premium. The cost of the Capped Calls is not expected to be tax-deductible as the Company did not elect to integrate the Capped Calls into the Notes for tax purposes.
The Capped Calls associated with the 2027 Notes and 2025 Notes have an initial strike price of approximately $414.80 per share and $160.88 per share, respectively, subject to certain adjustments, which corresponds to the respective initial conversion price of the 2027 Notes and 2025 Notes, and have an initial cap price of $544.00 per share and $218.14 per share, respectively, subject to certain adjustments; provided that such cap price shall not be reduced to an amount less than their respective strike price. The Capped Calls associated with the Notes cover, subject to anti-dilution adjustments, a total of approximately 8.5 million shares of the Company’s common stock. The Capped Calls are expected to generally reduce the potential dilution of the Company’s common stock upon any conversion of the Notes and/or offset any cash payments that the Company is required to make in excess of the principal amount of such converted notes, as the case may be, with such reduction and/or offset subject to a cap.
Revolving Credit Facility
The Company’s Revolving Credit and Security Agreement, was executed in March 2021 (the 2021 Revolving Credit Agreement), and was amended in August 2022 (as amended, the Revolving Credit Facility), to finance the acquisition of card receivables. The Revolving Credit Facility matures in June 2024 or earlier pursuant to the agreement and has a total commitment of $225.0 million. The required minimum utilization was $135.0 million, or 60% of the total commitment, and the Company had borrowed $135.0 million against the Revolving Credit Facility as of June 30, 2023. The Revolving Credit Facility requires the Company to pay unused fees up to 0.50% per annum. Borrowings are secured by acquired card receivables. Prior to March 3, 2023, borrowings of up to $75.0 million bore interest of 2.75% per annum and borrowings greater than $75.0 million bore interest of 2.65% per annum, plus SOFR (subject to a floor rate of 0.25% and benchmark adjustment rate of 0.28%). Beginning March 3, 2023, borrowings bear interest of 2.65% per annum, plus SOFR (subject to a floor rate of 0.25% and benchmark adjustment rate of 0.28%). The effective interest rate was 8.19% per annum as of June 30, 2023. The Company is required to comply with certain restricted covenants, including liquidity requirements. As of June 30, 2023, the Company was in compliance with those covenants.
The debt issuance costs and debt premium associated with the Revolving Credit Facility is amortized using the effective interest method over the remaining term of the agreement, with a weighted-average remaining amortization period of approximately 0.9 years. The amortization of the debt issuance costs and debt premium is recorded in interest income (expense), net in the accompanying consolidated statement of operations and during each of the years ended June 30, 2023 and 2022 was not material.
v3.23.2
Stockholders' Equity
 12 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Stockholders' Equity STOCKHOLDERS’ EQUITY
Equity Incentive Plans
On November 26, 2019, the Company’s board of directors approved the 2019 Equity Incentive Plan (2019 Plan), which became effective on December 10, 2019. The 2019 Plan authorizes the award of stock
options, RSUs, restricted stock awards, stock appreciation rights, performance-based awards, market-based awards, cash awards, and stock bonus awards, as determined by the Company’s board of directors.
The Company’s 2016 Equity Incentive Plan (2016 Plan), which was adopted in February 2016, was terminated concurrent to the effective date of the 2019 Plan. The Company’s 2006 Equity Incentive Plan (2006 Plan), which was adopted in April 2006, was terminated upon the adoption of the 2016 Plan. There were no equity-based awards granted under the 2016 Plan and the 2006 Plan after their termination; however, all outstanding awards under the 2016 Plan and the 2006 Plan continue to remain subject to the terms of the respective Equity Incentive Plan until such awards are exercised or until they terminate or expire by their terms. The 2019 Plan, 2016 Plan, and 2006 Plan are collectively referred to as the “Equity Incentive Plans.”
The Company initially reserved 7,100,000 shares of its common stock, plus any reserved shares not issued or subject to outstanding grants under the 2016 Plan, for issuance pursuant to awards granted under the 2019 Plan. The number of shares reserved for issuance under the 2019 Plan increases automatically on July 1 of each of 2020 through 2029 by the number of shares equal to the lesser of 5% of the total number of outstanding shares of the Company’s common stock as of the immediately preceding June 30, or a number as may be determined by the Company’s board of directors. In addition, the following shares of common stock from the 2016 Plan and the 2006 Plan will be available for grant and issuance under the 2019 Plan:
•shares issuable upon the exercise of options or subject to other awards under the 2016 Plan or 2006 Plan that cease to be subject to such options or other awards by forfeiture or after the effective date of the 2019 Plan; and
•shares issued pursuant to outstanding awards under the 2016 Plan and 2006 Plan that are forfeited or repurchased after the effective date of the 2019 Plan.
The total number of shares of common stock available for future grants under the Equity Incentive Plans was 15,087,695 shares as of June 30, 2023.
Equity Awards Assumed in Acquisitions
The Company assumed and replaced the outstanding stock options of Invoice2go and Divvy upon their acquisitions. The assumed equity awards will be settled in shares of the Company’s common stock and will retain the terms and conditions under which they were originally granted. No additional equity awards will be granted under equity incentive plans of the acquired companies.
Stock Options
The Company may grant incentive and non-statutory stock options to employees, non-employee directors, and consultants of the Company under the Equity Incentive Plans. Stock options granted generally vest and become exercisable ratably over a requisite service period of four years following the date of the grant and expire ten years from the date of the grant.
The exercise price of stock options granted is generally the market closing price of the Company’s common stock at the date of grant.
A summary of stock option activity as of June 30, 2023, and changes during the year ended June 30, 2023, is presented below:
Number of
shares
(in thousands) 		Weighted
average
exercise
price
per share		Weighted
average
remaining
contractual
term
(in years)		Aggregate
intrinsic
value
(in thousands)
Outstanding at June 30, 2022
3,858 $18.28 6.97$361,053 
Exercised(1,063)$13.06 
Forfeited(207)$29.06 
Outstanding at June 30, 2023
2,588 $19.56 5.90$258,093 
Vested and expected to vest at June 30, 2023 (1)
2,560 $19.32 5.89$255,787 
Vested and exercisable at June 30, 2023
2,367 $15.62 5.79$242,525 
(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options.
No options were granted during the year ended June 30, 2023.The fair value of options granted during the years ended June 30, 2022, and 2021 was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:
Year ended
June 30,
20222021
Expected term (in years)
2.00 to 7.05
6.25
Expected volatility
30.0% to 81.2%
35.0% to 85.1%
Risk-free interest rate
0.20% to 2.88%
0.38% to 1.03%
Expected dividend yield0 %0 %
The weighted-average grant date fair value of options granted during the years ended June 30, 2022, and 2021 was $207.07 and $132.04 per share, respectively. The total intrinsic value of options exercised during the years ended June 30, 2023, 2022, and 2021 was $114.1 million, $640.0 million, and $387.1 million, respectively. The intrinsic value was calculated as the difference between the estimated fair value of the Company’s common stock at exercise and the exercise price of the in-the-money options. The fair value of stock options vested during the years ended June 30, 2023, 2022, and 2021 was $163.8 million, $555.8 million, and $485.7 million, respectively.
As of June 30, 2023, the total unamortized stock-based compensation cost related to the unvested stock options was approximately $14.0 million, which the Company expects to amortize over a weighted-average period of 1.5 years.
Restricted Stock Units
A summary of RSU activity as of June 30, 2023, and changes during the year ended June 30, 2023, is presented below.
Number of
shares (1)
(in thousands)
Weighted
average
grant date
fair value
Nonvested at June 30, 2022
3,279 $178.85 
Granted3,322 $120.25 
Vested(1,640)$164.38 
Forfeited(777)$165.37 
Nonvested at June 30, 2023
4,184 $140.50 
(1) Includes RSU, market-based RSUs and performance-based RSUs.
The fair value of the RSU grant is determined based upon the market closing price of the Company’s common stock on the date of grant. The weighted-average grant date fair value of RSU granted during the years ended June 30, 2023, 2022, and 2021 was $120.25, $202.79, and $134.29 per share, respectively. The RSUs vest over the requisite service period, which ranges between 1 year and 4 years from the date of grant, subject to the continued employment of the employees and services of the non-employee directors. The total fair value of RSUs that vested during the years ended June 30, 2023, 2022, and 2021 was approximately $197.3 million, $118.9 million, and $40.0 million, respectively.
As of June 30, 2023, the total unamortized stock-based compensation expense related to the unvested RSUs was approximately $412.1 million, which the Company expects to amortize over a weighted-average period of 2.9 years.
Market-based RSUs
In December 2021, the Company granted a total of 50,000 market-based RSUs to one executive employee that vest based on appreciation of the price of the Company’s common stock over a multi-year period, subject to such executive’s continued service to the Company. The Company estimated the fair value of the market-based RSU award on the grant date using the Monte Carlo simulation model with the following assumptions: (i) expected volatility of 60%, (ii) risk-free interest rate of 1.08% to 1.21%, and (iii) total performance period of three to five years. The weighted-average grant date fair value of the market-based RSU award was $182.15 per share. The Company recognizes expense for market-based RSUs over the requisite service period of 1 to 3 years. Provided that the requisite service is rendered, the total fair value of the market-based RSUs at the date of grant is recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the achievement of the specified market criteria.
As of June 30, 2023, the total unrecognized compensation expense related to the market-based RSUs was approximately $2.2 million, which is expected to be amortized over a weighted-average period of 1.1 years.
Performance-based RSUs
During the year ended June 30, 2023, the Company granted approximately 150,000 RSUs to certain executive employees that vest based upon the achievement of designated financial and continued employment with the Company over period of three years. The fair value of the performance-based RSU grant is determined based upon the market closing price of the Company’s common stock on the date of grant. The weighted-average grant date fair value of these performance-based RSUs was $133.48 per unit. The Company recognizes expense for performance-based RSUs over the requisite service period based on management's estimate of the number of performance-based RSUs expected to vest. For any change in the estimate of the number of performance-based RSUs that are probable of vesting, the Company will cumulatively adjust compensation expense in the period that the change in estimate is made. The number of shares that ultimately vest vary with the achievement of the specified performance criteria.
As of June 30, 2023, the total unrecognized compensation expense related to the performance-based RSUs was $5.9 million, which is expected to be recognized over a weighted-average period of 1.3 years.
Employee Stock Purchase Plan
On November 26, 2019, the Company’s board of directors approved the ESPP, which became effective on December 11, 2019. The ESPP is intended to qualify under Section 423 of the U.S. Internal Revenue Code of 1986, as amended (the Code), and will provide eligible employees a means to acquire shares of common stock through payroll deductions. Under the ESPP, the Company initially reserved for issuance 1,400,000 shares of common stock, which will increase automatically on July 1 of each fiscal year during the term of the ESPP by the number of shares equal to 1% of the total number of shares of common stock and preferred stock (on as-converted basis) outstanding as of the immediately preceding June 30, unless the board of directors elects to authorize a lesser number of shares; provided, that, the total number of shares issued under the ESPP may not exceed 14,000,000 shares of common stock.
The ESPP provides for consecutive offering periods of 12-months during which eligible employees can participate in the ESPP and be granted the right to purchase shares semiannually.
Eligible employees can contribute up to 15% of their eligible compensation, subject to limitation as provided for in the ESPP, and purchase the common stock at a purchase price per share equal to 85% of the lesser of the fair market value of the common stock on (i) the offering date or (ii) the purchase date.
The fair value of ESPP offerings during the years ended June 30, 2023, 2022, and 2021 was estimated at the date of the offering using the Black-Scholes option-pricing model with the following assumptions:
Year ended
June 30,
202320222021
Expected term (in years)
0.4 to 1.0
0.4 to 1.0
0.5 to 1.00
Expected volatility
81.8% to 82.5%
76.0% to 77.3%
81.0% to 88.4%
Risk-free interest rate
3.39% to 4.89%
0.06% to 0.88%
0.05% to 0.13%
Expected dividend yield0 %0 %0 %
As of June 30, 2023, the total unrecognized compensation expense related to the ESPP was $4.5 million, which is expected to be amortized over a weighted-average period of 0.5 years.
Stock Based Compensation Cost
Stock-based compensation cost by award type (in thousands):
Year ended
June 30,
202320222021
Stock options$37,882 $55,667 $45,035 
RSUs(1)
251,456 134,222 23,225 
Performance-based awards17,914 — — 
Market-based RSUs4,308 2,755 — 
Employee stock purchase plan11,280 8,918 4,191 
Total stock-based compensation cost
$322,840 $201,562 $72,451 
Stock-based compensation cost from stock options, RSUs and purchase rights issued under the ESPP was included in the following line items in the accompanying consolidated statements of operations and consolidated balance sheets (in thousands):
Year ended
June 30,
202320222021
Revenue - subscription and transaction fees$188 $— $— 
Cost of revenue - service costs9,111 5,144 2,938 
Research and development93,364 54,907 16,091 
Sales and marketing(1)
130,421 60,237 8,547 
General and administrative80,619 76,869 44,411 
Total amount charged to loss from operations313,703 197,157 71,987 
Property and equipment (capitalized internal-use software)9,137 4,405 464 
Total stock-based compensation cost$322,840 $201,562 $72,451 
(1) In October 2022, the Company entered into separation and advisory agreements with its former Chief Revenue Officer (the CRO, and such agreements, the CRO Agreements). Pursuant to the CRO Agreements, the former CRO will serve the Company
as an advisor through September 2024. Upon execution of the CRO Agreements, the Company recognized $52.2 million of stock-based compensation expense related to the former CRO's outstanding RSU awards.
Share Repurchase Program
In January 2023, the Company's board of directors authorized the repurchase of up to $300 million of the Company's outstanding shares of common stock (the Share Repurchase Program). The Company may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans, intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing and total amount of share repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The Share Repurchase Program has a term of 12 months, may be suspended or discontinued at any time, and does not obligate the Company to acquire any amount of common stock.
During the year ended June 30, 2023, the Company repurchased and subsequently retired 1,077,445 shares for $87.6 million under the Share Repurchase Program. The total price of the shares repurchased and related transaction costs are reflected as a reduction of common stock and accumulated deficit on the accompanying consolidated balance sheets. As of June 30, 2023, $212.4 million remained available for future share repurchases under the Share Repurchase Program.
v3.23.2
Other Income (Expense), Net
 12 Months Ended
Jun. 30, 2023
Other Income, Nonoperating [Abstract]  
Other Income (Expense), Net OTHER INCOME (EXPENSE), NET
Other income (expense), net consisted of the following for the periods presented (in thousands):
Year ended
June 30,
202320222021
Interest expense$(15,203)$(9,419)$(28,158)
Lower of cost or market adjustment on card
     receivables sold and held for sale		(1,545)(11,460)(691)
Interest income91,279 6,691 2,992 
Other(1,675)327 487 
Total$72,856 $(13,861)$(25,370)
v3.23.2
Income Taxes
 12 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
The components of loss before provision for (benefit from) income taxes were as follows during the periods presented (in thousands):
Year ended
June 30,
202320222021
Domestic$(199,452)$(304,508)$(139,337)
Foreign(23,465)(26,171)— 
Total$(222,917)$(330,679)$(139,337)
The components of provision for (benefit from) income taxes were as follows during the periods presented (in thousands):
Year ended
June 30,
202320222021
Current:
Federal$572 $(247)$— 
State1,583 — — 
Foreign14 — — 
Total current2,169 (247)— 
Deferred:
Federal(995)(1,115)(27,529)
State(366)(2,956)(13,088)
Foreign— — — 
Total deferred(1,361)(4,071)(40,617)
Provision for (benefit from) income taxes$808 $(4,318)$(40,617)
The items accounting for the difference between the income taxes computed at the federal statutory rate and the provision for (benefit from) income taxes consisted of the following during the periods presented (in thousands):
Year ended
June 30,
202320222021
Expected benefit at U.S. federal statutory rate$(46,813)$(69,443)$(29,261)
State income taxes, net of federal benefit8,087 13,509 (54)
Stock-based compensation (1)
4,253 (93,705)(70,262)
Research and development tax credits(19,974)(22,061)(8,846)
Change in valuation allowance related to acquisition (2)
(126)(2,831)(34,749)
Change in valuation allowance (3)
48,321 174,477 94,244 
Unrecognized tax benefit(390)(10,975)6,766 
Acquisition-related costs— 553 1,484 
Foreign rate differential4,942 5,496 — 
Other2,508 662 61 
Provision for (benefit from) income taxes
$808 $(4,318)$(40,617)
(1)
The rate impact during the year ended June 30, 2023 relates to the impact of non-deductible stock compensation and shortfalls related to tax deductions being smaller than the associated stock compensation expense. The rate impact during the years ended June 30, 2022 and 2021 pertains windfalls from tax deductions being larger than the associated stock compensation expense.
(2)
The rate impact during the years ended June 30, 2022 and 2021 pertains to the income tax benefit recorded as a result of the acquisitions of Invoice2go and Divvy, respectively, which allowed the Company to release a portion of its valuation allowance due to the net deferred tax liabilities that were recorded as a result of such acquisitions.
(3)
The rate impact during the year ended June 30, 2023, 2022 and 2021 pertains to (i) an increase in valuation allowance due to the increase in deferred tax assets associated with losses, capitalized R&D expense and tax credits generated during the year, (ii) a change in deferred tax liability related to the 2025 Notes, and (iii) a change in deferred tax liability related to the acquisitions of Invoice2go and Divvy.
The components of deferred tax assets and liabilities were as follows as of the dates presented (in thousands):
June 30,
20232022
Deferred tax assets:
Accruals and reserves$12,537 $9,325 
Capitalized research and development75,694 — 
Deferred revenue1,084 1,794 
Stock-based compensation24,998 25,897 
Net operating loss carryforwards379,758 410,849 
Research and development credits62,299 46,013 
Accrued rewards1,855 2,867 
Operating lease liabilities21,616 24,203 
Other1,257 3,247 
Total deferred tax assets before valuation allowance
581,098 524,195 
Valuation allowance(479,449)(384,158)
Deferred tax assets$101,649 $140,037 
Deferred tax liabilities:
Deferred contract costs$(4,772)$(3,745)
Property and equipment(13,078)(19,316)
Intangible assets(67,455)(99,483)
Operating right of use assets(17,155)(19,490)
Total deferred tax liabilities$(102,460)$(142,034)
Net deferred tax liabilities$(811)$(1,997)
Accounting Standards Codification 740 requires that the tax benefit of net operating losses, temporary differences, and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. Because of the Company’s recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. The change in valuation allowance was approximately $95.3 million, $276.3 million, and $22.3 million during the years ended June 30, 2023, 2022, and 2021, respectively. The increase in the June 30, 2023 valuation allowance is primarily from the application of the Tax Cuts and Jobs Act of 2017 effective fiscal year 2023 and thereafter, that requires companies to capitalize and amortize research and development expenses rather than deduct the costs as incurred, offset by a reduction in a deferred tax liabilities. The net deferred tax liability is included as other long-term liabilities in the accompanying consolidated balance sheet.
The Tax Cuts and Job Act subjects a U.S. company to tax on its Global Intangible Low Tax Income (GILTI). Under GAAP, the Company can make an accounting policy election to either treat taxes due on the GILTI inclusion as a current period expense or factor such amounts into the measurement of deferred taxes. The Company elected the period expense method.
The Company does not currently operate under any tax holiday in any country in which it operates.
The Company does not have foreign earnings available to distribute. As such, there is no unrecorded deferred tax liability associated with an outside basis of foreign subsidiaries.
As of June 30, 2023, the Company had NOL carryforwards of $1.4 billion, $1.1 billion, and $83.4 million for federal, state, and foreign tax purposes, respectively, that are available to reduce future taxable income. If not utilized, the state NOL carryforwards will begin to expire in 2025. As of June 30, 2023, the federal and foreign NOL carryforwards do not expire and will carry forward indefinitely until utilized. As of June 30, 2023, the
Company also had research and development tax credit carryforwards of approximately $56.1 million and $35.6 million for federal and state tax purposes, respectively. If not utilized, the federal tax credits will expire at various dates beginning in 2039. The state tax credits do not expire and will carry forward indefinitely until utilized.
Utilization of the NOL and tax credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Code and other similar state provisions. The annual limitation may result in the expiration of NOLs and tax credits before utilization.
Below is the reconciliation of the unrecognized tax benefits related to federal and California research and development credits during the periods presented (in thousands):
Year ended
June 30,
202320222021
Balance at the beginning of the year$16,724 $22,185 $5,787 
Add:
Tax positions related to the current year
6,642 7,354 8,267 
Increase from business combination— 160 668 
Tax positions related to the prior year
226 — 7,463 
Less:
Tax positions related to the prior year— (12,761)— 
Statute of limitations lapse(292)(214)— 
Balance at the end of the year$23,300 $16,724 $22,185 
The Company had unrecognized tax benefits of approximately $23.3 million and $16.7 million as of June 30, 2023 and 2022, respectively, all of which are offset by a full valuation allowance. If the unrecognized tax benefits as of June 30, 2023 is recognized, it will not have an impact to the effective tax rate due to the Company’s valuation allowance.
The amount of interest and penalties accrued as of each of June 30, 2023 and 2022 were not material.
The Company files income tax returns in the U.S. for U.S. federal, California, and various states and foreign jurisdictions. The Company’s U.S. federal, state, and foreign tax returns for all years remain subject to examination by taxing authorities as a result of unused tax attributes being carried forward. The Company records liabilities related to uncertain tax positions, which provide adequate reserves for income tax uncertainties in all open tax years. The Company’s management evaluates the realizability of the Company’s deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company’s ability to generate sufficient future taxable income during the foreseeable future. The Company does not anticipate any material change on its unrecognized tax benefits over the next 12 months.

In December 2022, the Internal Revenue Service initiated an audit of Divvy's pre-acquisition tax year ending December 31, 2020, which was closed without adjustment on August 7, 2023.
v3.23.2
Leases
 12 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases LEASES
The Company has non-cancelable operating leases for office and other facilities in various locations, and certain equipment, which expire through 2031. Also, the Company subleases part of its office facility in Draper, Utah under a non-cancellable operating lease that expires in December 2025. The Company's leases do not contain any material residual value guarantees.
As of June 30, 2023, the weighted average remaining term of these operating leases is 7.3 years and the weighted-average discount rate used to estimate the net present value of the operating lease liabilities was 5.1%.
The total payment for amounts included in the measurement of operating lease liabilities was $14.9 million, $13.8 million, and $2.1 million during the years ended June 30, 2023, 2022, and 2021, respectively.
The total amount of ROU assets obtained in exchange for new operating lease liabilities was $2.0 million, $5.3 million, and $31.6 million during the years ended June 30, 2023, 2022, and 2021, respectively.
The components of lease expense during the years ended June 30, 2023, 2022, and 2021 are shown in the table below (in thousands):
Year ended June 30
202320222021
Operating lease expense (1)
$14,081 $12,983 $7,826 
Variable lease expense, net of credit2,251 2,909 2,252 
Sublease income(586)(712)(55)
Total lease cost$15,746 $15,180 $10,023 
(1) Includes short-term lease, which is not material for the fiscal years ended June 30, 2023, 2022, and 2021.
v3.23.2
Commitments and Contingencies
 12 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
Commitments
The Company has non-cancelable operating leases for office and other facilities in various locations, and certain equipment, which expire through 2031. Future minimum lease payments as of June 30, 2023 are as follows (in thousands):
Fiscal years ending June 30:
Amount
2024$14,649 
202513,699 
202613,292 
202713,226 
202813,590 
Thereafter35,919 
Gross lease payments104,375 
Less - present value adjustments(17,737)
Total operating lease liabilities, net$86,638 
The current portion of operating lease liabilities, which is included in other accruals and current liabilities in the accompanying consolidated balance sheets, was $14.1 million and $12.1 million as of June 30, 2023 and 2022, respectively. The non-current portion of operating lease liabilities was $72.5 million and $82.7 million as of June 30, 2023 and 2022, respectively.
In addition to the minimum lease payments above, the Company has multi-year agreements with certain third parties and financial institution partners, expiring through 2029, which require the Company to pay
fees over the term of the respective agreements. Future payments under these other agreements as of June 30, 2023 are as follows (in thousands).
Fiscal years ending June 30:
Amount
2024$14,612 
202512,582 
20266,004 
20275,241 
20285,491 
Thereafter29,373 
Total$73,303 
Purchase of Card Receivables That Have Not Cleared
The Company is contractually obligated to purchase all card receivables from the Issuing Banks including authorized transactions that have not cleared. The transactions that have been authorized but not cleared totaled $68.6 million as of June 30, 2023 and have not been recorded on the accompanying consolidated balance sheets. The Company has credit exposures with these authorized but not cleared transactions; however, the expected credit losses recorded were not material as of June 30, 2023. See Note 7 for additional discussion about acquired card receivables.
Litigation
From time to time, the Company is involved in lawsuits, claims, investigations, and proceedings that arise in the ordinary course of business. The Company records a provision for a liability when management believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of each of June 30, 2023 and 2022, the Company’s reserve for litigation is immaterial. The Company reviews these provisions periodically and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable.
v3.23.2
Net Loss Per Share Attributable To Common Stockholders
 12 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Net Loss Per Share Attributable To Common Stockholders NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented (in thousands, except per share amounts):
Year ended
June 30,
202320222021
Numerator:
Net loss attributable to common stockholders$(223,725)$(326,361)$(98,720)
Denominator:
Weighted-average shares used to compute net loss per share attributable to common stockholders
Basic and diluted105,976 101,753 82,813 
Net loss per share attributable to common stockholders:
Basic and diluted$(2.11)$(3.21)$(1.19)
Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been anti-dilutive, were as follows as of the dates presented (in thousands):
June 30,
202320222021
Stock options2,588 3,858 6,552 
Restricted stock units4,184 3,279 1,176 
Total6,772 7,137 7,728 
In addition, approximately 8.5 million shares underlying the conversion option of the Notes are not considered in the calculation of diluted net loss per share as they would be anti-dilutive. Such number of shares issuable under the Notes is subject to adjustment up to approximately 12.7 million shares if certain corporate events occur prior to the maturity date of the Notes or if the Company issues a notice of redemption. The Company’s current intent is to settle conversions of the Notes through a combination settlement, which involves a repayment of the principal portion in cash with any excess of the conversion value over the principal amount settled in shares of common stock. The Company uses the "as-if converted" method for calculating any potential dilutive effect of the conversion option on diluted earnings per share, if applicable. As of June 30, 2023, the Conversion Condition was not triggered for either the 2025 Notes or the 2027 Notes.
v3.23.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Pay vs Performance Disclosure      
Net loss $ (223,725) $ (326,361) $ (98,720)
v3.23.2
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Jun. 30, 2023
shares
Jun. 30, 2023
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Alison Wagonfeld [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
ActionDateTrading ArrangementTotal Shares to be SoldExpiration Date
Rule 10b5-1 (1)
Non-Rule 10b5-1 (2)
Alison WagonfeldAdopt6/9/2023X1,0398/23/2024
(1) Intended to satisfy the affirmative defense of Rule 10b5-1(c). The Rule 10b5-1 plan included a representation from the participant to the broker administering the plan that such person was not in possession of any material nonpublic information regarding us or our securities subject to the Rule 10b5-1 plan at the time the Rule 10b5-1 plan was entered into. This representation was made as of the date of adoption of the Rule 10b5-1 plan, and speaks only as of that date. In making this representation, there is no assurance with respect to any material nonpublic information of which the participant was unaware, or with respect to any material nonpublic information acquired by the participant or us after the date of the representation.
(2) Not intended to satisfy the affirmative defense of Rule 10b5-1(c).
Name Alison Wagonfeld  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date 6/9/2023  
Arrangement Duration 441 days  
Aggregate Available 1,039 1,039
v3.23.2
The Company and Its Significant Accounting Policies (Policies)
 12 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Follow-on Offering Follow-on OfferingOn September 24, 2021, the Company closed a public offering in which the Company issued and sold a total of 5,073,529 shares of common stock at a public offering price of $272.00 per share. The Company received $1.3 billion in net proceeds from this public offering, after deducting underwriting discounts, commissions, and other offering costs of $38.9 million.
Basis of Presentation and Principles of Consolidation Basis of Presentation and Principles of ConsolidationThe accompanying consolidated financial statements include the accounts of the Company and were prepared in conformity with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC). All intercompany accounts and transactions have been eliminated.
Segment Reporting Segment Reporting The Company operates as one operating segment because its chief operating decision maker, who is the Chief Executive Officer, reviews its financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. The Company's long-lived assets are mainly located in the United States (U.S.) and revenue is mainly generated in the U.S. Long-lived assets outside the U.S. are not material as of June 30, 2023 and 2022.
Business Combinations
Business Combinations
The Company accounts for acquisitions using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of the identifiable assets and liabilities is recorded as goodwill.
The determination of the fair value of assets acquired and liabilities assumed involves assessments of factors such as the expected future cash flows associated with individual assets and liabilities and appropriate discount rates at the date of the acquisition. Significant management inputs used in the estimation of fair value of assets acquired and liabilities assumed include, but are not limited to, expected future cash flows, future changes in technology, estimated replacement costs, discount rates, and assumptions about the period of time the brand will continue to be used in the Company’s product portfolio. Where appropriate, external advisers are consulted to assist in the determination of fair value. For non-observable market values, fair value has been determined using acceptable valuation methods (e.g., relief from royalty methods). The results of operations for businesses acquired are included in the financial statements from the acquisition date. Acquisition-related expenses and post-acquisition integration costs are recognized separately from the business combination and are expensed as incurred. During the measurement period, not to exceed one year from the date of acquisition,
the Company may record adjustments to the tangible and intangible assets acquired and liabilities assumed, including the fair value of acquired intangible assets, an indemnification asset related to certain assumed liabilities, net lease liabilities, uncertain tax positions, tax-related valuation allowances, and pre-acquisition contingencies with a corresponding offset to goodwill. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of operations.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make various estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Management regularly assesses these estimates, including, but not limited to useful lives of long-lived assets; capitalization of internal-use software costs; incremental borrowing rates for right-of-use (ROU) operating lease assets, and operating lease liabilities; the estimate of losses on accounts receivable, acquired card receivables and other financial assets; accrual for rewards; variable consideration used in revenue recognition for certain contracts; benefit periods used to amortize deferred costs; reserve for losses on funds held for customers; inputs used to value certain stock-based compensation awards; and valuation of income taxes. The Company evaluates these estimates and assumptions and adjusts them accordingly. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements.
Funds Held for Customers and Customer Fund Deposits Funds Held for Customers and Customer Fund DepositsFunds held for customers and the corresponding liability on customer fund deposits represent funds that are collected from customers for payments to their suppliers and funds that are collected on behalf of customers. Generally, these funds held for customers are initially deposited in separate bank accounts until remitted to the customers’ suppliers or to the customers. Funds held for customers also include amounts that are held by or deposited into the accounts of payment processing companies and receivables from customers. The funds held for customers are restricted for the purpose of satisfying the customers’ fund obligations and are not available for general business use by the Company. The Company partially invests funds held for customers in highly liquid investments with maturities of three months or less, consisting of money market funds and marketable debt securities, and in marketable debt securities with maturities of more than three months up to thirteen months at the time of purchase. Funds held for customers that are invested in marketable debt securities are classified as available-for-sale. These investments are carried at fair value, with unrealized gains or losses included in accumulated other comprehensive loss on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss. The Company contractually earns interest on funds held for customers with associated counterparties.
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Cash and cash equivalents consist of cash in banks, highly liquid investments with maturities of three months or less at the time of purchase, and securities purchased under overnight reverse repurchase agreements.
Restricted cash consists of (i) amounts restricted under deposit account control agreements, (ii) minimum cash balances that are required to be maintained by certain banks, (iii) cash collateral required by the Company’s lessors to satisfy letter of credit requirements under its lease agreements, (iv) cash collateral required by a bank in connection with the Company’s money transmission activities, and (v) cash in bank and cash deposits held by payment processing companies included in funds held for customers.
Restricted cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase that are included in funds held for customers.
Except for the restricted cash included in funds held for customers, the current and non-current portion of the restricted cash is included in prepaid expenses and other current assets and in other assets, respectively, in the accompanying consolidated balance sheets.
Short–term investments
Short–term Investments
The Company invests excess cash in a diversified portfolio of highly rated marketable debt securities with maturities of more than three months. These securities are classified as available-for-sale and recorded at fair value. The Company determines the appropriate classification of investments in marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. After consideration of risk versus reward attributes and liquidity requirements, the Company may sell these debt securities prior to their stated maturities. As the Company views these securities as available to support current operations, the Company classifies highly liquid securities with maturities beyond 12 months as current assets. Unrealized gains or losses are included in accumulated other comprehensive income (loss) on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss.
An impairment loss is recognized when the decline in fair value of the marketable debt securities is determined to be other than temporary. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which will be at maturity. The Company periodically evaluates its investments to determine if impairment charges are required. The Company determined that there was no other-than-temporary impairment on short-term investments during each of the years ended June 30, 2023, 2022, and 2021.
Concentrations of Credit Risk
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, restricted cash, restricted cash equivalents, short-term investments, accounts receivable, and acquired card receivables (collectively referred to as Financial Assets). The Company maintains its cash, cash equivalents, restricted cash, restricted cash equivalents and short-term investments with large multinational financial institutions that may at times exceed federally insured limits. In connection with recent instability in the U.S. banking system, the Company's management has taken incremental precautions to safeguard its assets and evaluate the nature and extent of its financial partnerships. Management believes that the financial institutions with which the Company does business are financially sound with minimal credit risk. Management further believes the associated risk of concentration for the Company’s investments is mitigated by holding a diversified portfolio of highly rated investments consisting of money market funds and short-term debt securities.
The Company performs credit evaluations to verify the credit quality of its financial assets and determine any at-risk receivables. An allowance for potential credit losses on Financial Assets is recognized, if material. As of June 30, 2023 and 2022, the allowance for potential credit losses related to accounts receivable and acquired card receivables totaled approximately $15.9 million and $5.8 million, respectively. These amounts do not include the immaterial allowance for potential credit losses on the purchase of card receivables that have been authorized but not cleared at the end of the periods (see Note 15).
There were no customers that exceeded 10% of the Company’s total revenue during each of the years ended June 30, 2023, 2022, and 2021.
Foreign Currency Foreign Currency The functional currency of the Company's foreign subsidiaries is the U.S. dollar, which is the Company's reporting currency. Gains and losses from the remeasurement of transactions denominated in foreign currencies other than the functional currency of the foreign subsidiaries are included in other (expense) income, net in the accompanying statements of operations
Accounts Receivable and Unbilled Revenue
Accounts Receivable and Unbilled Revenue
Accounts receivable, which consist primarily of fees from customers, including accounting firm and financial institution customers, are recorded at the invoiced amount, net of an allowance for credit losses. Unbilled revenue is recorded based on amounts that the Company expects to invoice to customers in the subsequent period. The allowance for credit losses related to accounts receivable and unbilled revenue is based on the Company’s assessment of the collectability of the receivables. The Company regularly reviews the adequacy of the allowance for credit losses by considering the age of each outstanding invoice and the
collection history of each customer to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectable are charged against the allowance for credit losses when identified. For all periods presented, the allowance for credit losses related to accounts receivable and unbilled revenue was not material.
Acquired Card Receivables
Acquired Card Receivables
The portfolios of acquired card receivables are U.S. based commercial accounts diversified across various geographies and industries. The Company manages credit risk based on common risk characteristics including financial condition of the users of the spend and expense management application.
Acquired card receivables are reported at their principal amounts outstanding net of allowance for credit losses. Acquired card receivables are deemed to be held for investment when such receivables are not acquired specifically for resale.
As part of the onboarding process, users of the Company’s free spend and expense management application are provided with a credit limit subject to a credit policy and underwriting process which is periodically re-performed based on risk indicators and the size of the credit limit.
Spending businesses may over fund their accounts through payments in excess of the outstanding balance. Such over funded amounts are recorded as prepaid card deposits, which are included in other accruals and current liabilities in the accompanying consolidated balance sheets.
Acquired card receivables represent amounts due on card transactions integrated with the spend and expense management application. The Company is contractually obligated to purchase all card receivables from U.S.-based card issuing banks (Issuing Banks) including authorized transactions that have not cleared at the Issuing Banks. Acquired card receivables are recorded at the time a transaction clears the Issuing Banks and generally payment for the card receivables is made on the day the transaction clears the Issuing Banks.
The acquired card receivables portfolio consists of a large group of smaller balances from spending businesses across a wide range of industries. The allowance for credit losses reflects the Company’s estimate of uncollectible balances resulting from credit and fraud losses and is based on the determination of the amount of expected losses inherent in the acquired card receivable as of the reporting date. An estimate of lifetime expected credit losses is performed by incorporating historical loss experience, as well as current and future economic conditions over a reasonable and supportable period beyond the balance sheet date. In estimating expected credit losses, the Company uses models that entail a significant amount of judgment. The primary areas of judgment used in measuring the quantitative components of the Company’s reserves relate to the attributes used to segment the portfolio, the determination of the historical loss experience look-back period, and the weighting of historical loss experience by monthly cohort. The Company uses these models and assumptions to determine the reserve rates applicable to the outstanding acquired card receivable balances to estimate reserves for expected credit losses. Based on historical loss experience, the probability of default decreases over time, therefore the attribute used to segment the portfolio is the length of time since an account’s credit limit origination. The Company’s models use past loss experience to estimate the probability of default and exposure at default by aged balances. The Company also estimates the likelihood and magnitude of recovery of previously written off loans based on historical recovery experience. Additionally, management evaluates whether to include qualitative reserves to cover losses that are expected but may not be adequately represented in the quantitative methods or the economic assumptions. The qualitative reserves address possible limitations within the models or factors not included within the models, such as external conditions, changes in underwriting strategies, the nature and volume of the portfolio, and the volume and severity of past due accounts. In general, acquired card receivables are written off after substantially the entire balance becomes 120 days delinquent. Assumptions regarding expected losses are reviewed periodically and may be impacted by actual performance of the acquired card receivables and changes in any of the factors discussed above. As of June 30, 2023 and 2022, the allowance for potential credit losses on acquired card receivables shown on the consolidated balance sheets totaled $15.5 million and $5.4 million, respectively. These amounts do not include the immaterial allowance for potential credit losses on purchase of card receivables that have been authorized but not cleared at the end of the periods (see Note 15).
Derivatives Instruments
Derivative Instruments
The Company retains a beneficial interest derivative in the form of a deferred purchase price on card receivables sold. This derivative is not designated as a hedging instrument, and is initially recorded at fair value, with subsequent changes in fair value recorded through other gains and losses. The Company does not use derivative instruments for speculative or trading purposes. The beneficial interest derivative is a residual interest in collections on card receivables sold, and serves to align the economic interests of the Company as servicer with those of the purchasing bank. Effective August 2022, the Company ceased selling acquired card receivables (see Note 7).
Property and Equipment
Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, generally one to four years. Leasehold improvements are amortized over the shorter of estimated useful lives of the assets or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition, the cost and related accumulated depreciation and amortization are removed from the accounts and the resulting gain or loss is reflected in the consolidated statements of operations.
The Company capitalizes internal and external direct costs incurred related to obtaining or developing internal-use software. Costs incurred during the application development stage are capitalized and are amortized using the straight-line method over the estimated useful lives of the software, generally three years commencing on the first day of the month following when the software is ready for its intended use. Costs related to planning and other preliminary project activities and post-implementation activities are expensed as incurred.
Goodwill
Goodwill
Goodwill represents the excess of the purchase price of the acquisition over the net fair value of identifiable assets acquired and liabilities assumed. Goodwill amounts are not amortized.
Intangible Assets
Intangible Assets
The Company generally recognizes assets for customer relationships, developed technology and finite-lived trade names from an acquisition. Finite-lived intangible assets are carried at acquisition cost less accumulated amortization. Such amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets, generally from three to ten years. Amortization for developed technology is recognized in cost of revenue. Amortization for customer relationships and trade names is recognized in sales and marketing expenses.
Impairment
Impairment
Goodwill is tested annually at the reporting unit level for impairment during the fourth fiscal quarter or more frequently if facts or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. The Company has one reporting unit; therefore, all of its goodwill is associated with the entire company. Management has the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the Company is less than the carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of the Company is less than the carrying amount, a quantitative assessment is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company also has the option to bypass the qualitative assessment and perform the quantitative assessment.
The Company reviews the valuation of long-lived assets, including property and equipment and finite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The recoverability of long-lived assets or asset groups is calculated based on the
estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset. Impairment testing is performed at the asset group level.
Based on management's assessment, the Company did not recognize any impairment losses on its goodwill, finite-lived intangible assets or other long-lived assets during the periods presented herein.
Leases
Leases
The Company determines if an arrangement is a lease, or contains a lease, by evaluating whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. The Company determines the classification of the lease, whether operating or financing, at the lease commencement date, which is the date the leased assets are made available for use.
The Company uses the non-cancelable lease term when recognizing the ROU assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. The Company accounts for lease components and non-lease components as a single lease component. Modifications are assessed to determine whether incremental differences result in new contract terms and accounted for as a new lease or whether the additional right of use should be included in the original lease and continue to be accounted with the remaining ROU asset.
Operating lease ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives. Variable costs, such as common area maintenance costs, are not included in the measurement of the ROU assets and lease liabilities, but are expensed as incurred. As the implicit rate of the leases is not determinable, the Company uses an incremental borrowing rate in determining the present value of the lease payments. Lease expenses are recognized on a straight-line basis over the lease term.
The Company does not recognize ROU assets on lease arrangements with a term of 12 months or less. Lease expense for such arrangements is recognized on a straight-line basis over the term of the lease.
Accrued Rewards
Accrued Rewards
Spending businesses participate in rewards programs based on card transactions. The Company records a rewards liability that represents the estimated cost for rewards owed to spending businesses. Rewards liabilities are impacted over time by redemption costs and by spending businesses meeting eligibility requirements. Changes in the rewards liabilities during the period are recognized as an increase or decrease to sales and marketing expense in the accompanying consolidated statements of operations. The accrued rewards liability, which was $55.4 million and $36.2 million as of June 30, 2023 and 2022, respectively, is included in other accruals and current liabilities in the accompanying consolidated balance sheets. The rewards expense, which was $173.9 million, $95.2 million, and $4.5 million, during the years ended June 30, 2023, 2022, and 2021, respectively, is included in sales and marketing expenses in the accompanying consolidated statements of operations.
Revenue Recognition
Revenue Recognition
The Company enters into contracts with small and midsize businesses (SMB) and accounting firm customers to provide access to the functionality of the Company’s cloud-based payments platform to process transactions. These contracts are either monthly contracts paid in arrears or upfront, or annual arrangements paid up front. The Company charges its SMB and accounting firm customers subscription fees for access to its platform either based on the number of users or per customer account and the level of service. The Company generally also charges these customers transaction fees based on transaction volume and the category of transaction. The contractual price for subscription and transaction services is based on either negotiated fees or the rates published on the Company’s website.
The Company accounts for its annual and monthly contracts as a series of distinct services that are satisfied over time. The Company determines the transaction price for such contracts by estimating the total consideration to be received over the contract term from subscription and transaction fees. The Company
recognizes the transaction price as a single performance obligation based on the proportion of transactions processed to the total estimated transactions to be processed over the contract period. Revenues recognized exclude amounts collected on behalf of third parties, such as sales taxes collected and remitted to governmental authorities.
The Company enables SMB and accounting firm customers to make virtual card payments to their suppliers. The Company also facilitate the extension of credit to spending businesses through the Divvy product in the form of Divvy cards. The spending businesses utilize the credit on Divvy cards as a means of payment for goods and services provided by their suppliers. Virtual card payments and Divvy cards are originated through agreements with Issuing Banks. The agreements with the Issuing Banks allow for card transactions on the MasterCard and Visa networks. For each virtual card and Divvy card transaction, suppliers are required to pay interchange fees to the issuer of the card. Based on the Company's agreements with its Issuing Banks, the Company recognizes the interchange fees as revenue gross or net of rebates received from the Issuing Bank based on the Company's determination of whether it is the principal or agent under the agreements.
The Company enters into multi-year contracts with financial institution customers to provide access to the Company’s cloud-based payments platform to process transactions. These contracts typically include fees for initial implementation services that are paid during the period the implementation services are provided as well as fees for subscription and transaction processing services, which are subject to guaranteed monthly minimum fees that are paid monthly over the contract term. These contracts enable the financial institutions to provide their customers with access to online bill pay services through the financial institutions’ online platforms. Implementation services are required up-front to establish an infrastructure that allows the financial institutions’ online platforms to communicate with the Company’s online platform. A financial institution’s customers cannot access online bill pay services until implementation is complete.
Initial implementation services and transaction processing services are not capable of being distinct from the subscription for online bill pay services and are combined into a single performance obligation. The total consideration in these contracts varies based on the number of users and transactions to be processed. The Company has determined it meets the variable consideration allocation exception and therefore recognizes guaranteed monthly payments and any overages as revenue in the month they are earned. Implementation fees are recognized based on the proportion of transactions processed to the total estimated transactions to be processed over the contract period. The ability of the financial institution customers to renew their contracts without having to pay up-front implementation fees again could provide them a material right. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price.
Interest on Funds Held for Customers
The Company also earns revenue from interest earned on funds held for customers that are initially deposited into the Company’s bank accounts that are separate from the Company’s operating cash accounts until remitted to the customers or their suppliers. The Company partially invests funds held for customers in highly liquid investments with maturities of three months or less and in marketable debt securities with maturities of three months to one year at the time of purchase. Interest and fees earned are recognized based on the effective interest method and also include the accretion of discounts and the amortization of premiums on marketable debt securities.
Deferred Revenue Deferred Revenue Subscription and transaction fees from customers for which the Company has annual or multi-year contracts are generally billed in advance. These fees are initially recorded as deferred revenue and subsequently recognized as revenue as the performance obligation is satisfied.
Deferred Costs
Deferred Costs
Deferred costs consist of (i) deferred sales commissions that are incremental costs of obtaining customer contracts and (ii) deferred service costs, primarily direct payroll costs, for implementation services provided to customers prior to the launching of the Company’s products for general availability (go-live) to customers. Sales commissions paid on renewals are not material and are not commensurate with sales commissions paid on the initial contract. Deferred sales commissions are amortized ratably over the estimated
life of the customer relationship aligned with the pattern of customer attrition, taking into consideration the initial contract term and expected renewal periods. Deferred service costs are amortized ratably over the estimated benefit period of the capitalized costs starting on the go-live date of the service.
Service Costs
Service Costs
Service costs consist primarily of personnel-related costs, including stock-based compensation expenses, for the Company’s customer success and payment operations teams, outsourced support services for the Company's customer success team, costs that are directly attributed to processing customers’, and spending businesses' transactions (such as the cost of printing checks, postage for mailing checks, fees associated with the issuance and processing of card transactions, fees for processing payments, such as ACH, check and cross-border wires), direct and amortized costs for implementing and integrating the Company’s platform into the customers’ systems, costs for maintaining, optimizing, and securing the Company’s cloud payments infrastructure, amortization of capitalized internal-use software (excluding capitalized stock-based compensation), fees on the investment of customer funds, and allocation of overhead costs.
Research and Development Research and DevelopmentCosts incurred in research and development, excluding development costs eligible for capitalization as internal-use software, are expensed as incurred.
Stock-Based Compensation
Stock-based Compensation
The Company measures stock-based compensation for stock options and purchase rights issued under the Employee Stock Purchase Plan (ESPP) at fair value on the date of grant using the Black-Scholes option-pricing model. The Company measures stock-based compensation for restricted stock units (RSUs) and market-based RSUs based on the closing price of the Company’s stock and using the Monte Carlo simulation model, respectively, on the date of grant. The Company measures stock-based compensation for performance-based awards at fair value on the date of grant by using the Black-Scholes valuation option-pricing model or other valuation technique depending on the nature of the award. Awards that are classified as liabilities are remeasured at fair value at the end of each reporting period.
The Company recognizes compensation costs on a straight-line basis over the requisite service period, which is generally the vesting term of four years for stock options and RSUs, the offering period of one year for purchase rights under the ESPP, and the requisite period of one to three years for market-based RSUs. Stock compensation costs are reduced by the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the forfeiture rate based on its historical experience for annual grant years where the majority of the vesting terms have been satisfied. The Company recognizes compensation costs for performance-based awards over the vesting period if it is probable that the performance condition will be achieved.
The Black-Scholes option-pricing model and Monte Carlo simulation model require the use of highly subjective assumptions which determine the fair value of stock-based awards.
The main assumptions used in the Black-Scholes option-pricing model include:
Expected term – The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the stock-based awards.
Expected volatility – The expected volatility was estimated based on the historical volatility of the Company’s common stock.
Risk-free interest rate – The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of option.
Expected dividend yield – The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero.
The main assumptions used in the Monte Carlo simulation model include (i) expected volatility, (ii) risk-free interest rate, and (iii) performance period of the market-based RSU award, which represents the period that the Company's stock price condition has to be achieved in order for the award to vest.
Advertising AdvertisingThe Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses during the years ended June 30, 2023, 2022, and 2021 were $39.0 million, $29.4 million, and $8.5 million, respectively.
Income Taxes
Income Taxes
The Company accounts for income taxes using the asset and liability method, which requires the recognition of taxes payable or refundable for the current year and deferred income tax assets and liabilities for the future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the Company's assets and liabilities, net operating loss (NOL), and tax credit carryforwards. A valuation allowance is established to reduce deferred tax assets to the amount expected to be realized.
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies any liabilities for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.
Net Loss Per Share Attributable to Common Stockholders Net Loss Per Share Attributable to Common StockholdersBasic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders for all periods presented since the effect of potentially dilutive securities is anti-dilutive given the net loss of the Company.
New Accounting Pronouncements
New Accounting Pronouncements:
Adopted
In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance for Troubled Debt Restructurings (TDRs) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires a company to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The Company early adopted this ASU on a prospective basis beginning July 1, 2022. The Company does not expect the adoption to have a material impact on the Company's financial statements.
Not Yet Adopted
The Company does not expect that any other recently issued accounting pronouncements will have a significant effect on its financial statements.
Fair Value Measurement
The Company measures and reports its cash equivalents, short-term investments, funds held for customers that are invested in money market funds and marketable debt securities, and contingent consideration at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.
The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:
Level 1 –     Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 –     Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can
be corroborated by observable market data for substantially the full term of the related assets or liabilities.
Level 3 –     Unobservable inputs that are supported by little or no market activity for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the assets or liabilities.
In determining fair value, the Company utilizes quoted market prices, or valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and also considers counterparty credit risk in its assessment of fair value.
v3.23.2
Revenue (Tables)
 12 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Subscription and Transaction Fees Disaggregated by Customer Category The table below shows the Company’s revenue from subscription and transaction fees, which are disaggregated by sales channel, and revenue from interest on funds held for customers (in thousands).
 
Year ended
June 30,
 202320222021
SMBs, accounting firms, spending businesses and other$901,602 $603,171 $218,227 
Financial institutions43,108 30,194 14,028 
Total subscription and transaction fees944,710 633,365 232,255 
Interest on funds held for customers113,758 8,594 6,010 
Total revenue$1,058,468 $641,959 $238,265 
Summary of Deferred Costs
Deferred costs consisted of the following as of the dates presented (in thousands):
 June 30,
 20232022
Deferred sales commissions:
Current$6,523 $5,460 
Non-current12,317 9,187 
Total deferred sales commissions$18,840 $14,647 
Deferred service costs:
Current$904 $720 
Non-current2,221 3,433 
Total deferred service costs$3,125 $4,153 
v3.23.2
Business Combination (Tables)
 12 Months Ended
Jun. 30, 2023
Business Combinations [Abstract]  
Summary of Acquisition Purchase Consideration
The acquisition purchase consideration totaled $674.3 million, which consisted of the following (in thousands):

Equity consideration (1)
$510,218 
Cash164,087 
Total$674,305 

(1) This includes 1,788,372 shares of the Company’s common stock issued with a fair value based upon the opening market price on the acquisition date. This also includes the stock options assumed to replace stock options that were outstanding on the acquisition date under Invoice2go's 2014 Equity Incentive Plan. The fair value of these stock options was $21.7 million, which was the amount attributable to the pre-combination requisite service period.
The acquisition purchase consideration totaled $2.3 billion, which consisted of the following (in thousands):
Equity consideration (1)
$1,658,818 
Cash664,779 
  Total$2,323,597 

(1) This includes 10,767,140 shares of the Company’s common stock issued with a fair value based upon the opening market price on the acquisition date. This also includes the stock options assumed to replace stock options that were granted after May 1, 2019 under Divvy’s 2016 Equity Incentive Plan and were outstanding on the acquisition date. The fair value of these stock options was $55.3 million, which was the amount attributable to the pre-combination requisite service period.
Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):

Cash and cash equivalents$19,738 
Accounts receivable and other assets4,518 
Intangible assets91,219 
Total identifiable assets acquired115,475 
Accounts payable and other liabilities(26,618)
Net identifiable assets acquired88,857 
Goodwill585,448 
Net assets acquired$674,305 
The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):

Cash $108,689 
Acquired card receivables159,784 
Accounts receivable7,435 
Card receivables held for sale12,730 
Property and equipment15,805 
Intangible assets423,000 
Prepaid expenses and other assets57,669 
   Total identifiable assets acquired785,112 
Accounts payable and other liabilities(153,855)
Outstanding borrowings from credit facilities(79,703)
   Total liabilities assumed(233,558)
 Net identifiable assets acquired551,554 
 Goodwill1,772,043 
   Net assets acquired$2,323,597 
Summary of Preliminary Fair Values Allocated to Identifiable Intangible Assets and Estimated Useful Lives
The preliminary fair values allocated to the identifiable intangible assets (in thousands) and their estimated useful lives are as follows:

Preliminary
fair value		Weighted average
useful life
(in years)
Customer relationships$61,269 10.0
Developed technology15,908 3.0
Trade name14,042 3.0
Total$91,219 
The fair values allocated to the identifiable intangible assets (in thousands) and their estimated useful lives are as follows:

Fair valueWeighted average useful life (in years)
Customer relationships$198,000 10.0
Developed technology191,000 6.0
Trade name34,000 3.0
   Total$423,000 
Summary of Unaudited Proforma Financial Information The pro forma net loss for the year ended June 30, 2021 was adjusted to exclude nonrecurring acquisition-related costs of $20.6 million.
Year ended June 30,
20222021
Revenue$648,476 $274,842 
Net loss$(327,136)$(149,003)
Below is the unaudited pro forma financial information of the combined results of operations of the Company and Divvy as if the acquisition occurred on July 1, 2019 (in thousands).
Year ended
June 30,
2021
Total revenue$307,618 
Net loss$(223,470)
v3.23.2
Fair Value Measurement (Tables)
 12 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis
The following tables set forth the fair value of assets and liabilities that were measured at fair value on a recurring basis based on the three-tier fair value hierarchy as of the dates presented (in thousands):
June 30, 2023
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$1,131,621 $— $— $1,131,621 
Certificates of deposit— 2,578 — 2,578 
Corporate bonds— 45,301 — 45,301 
U.S. treasury securities44,856 — — 44,856 
1,176,477 47,879 — 1,224,356 
Short-term investments:
Corporate bonds— 479,483 — 479,483 
U.S. treasury securities408,368 — — 408,368 
U.S. agency securities— 57,967 — 57,967 
Asset-backed securities— 51,193 — 51,193 
Certificates of deposit— 46,099 — 46,099 
408,368 634,742 — 1,043,110 
Funds held for customers:
Restricted cash equivalents
Money market funds713,469 — — 713,469 
713,469 — — 713,469 
Short-term investments
Corporate bonds— 433,920 — 433,920 
Certificates of deposit— 233,291 — 233,291 
U.S. agency securities— 27,458 — 27,458 
Asset-backed securities— 70,661 — 70,661 
U.S. treasury securities81,074 — — 81,074 
81,074 765,330 — 846,404 
Total assets measured at fair value$2,379,388 $1,447,951 $— $3,827,339 
Liabilities
Contingent consideration(1)
— — (12,035)— 
Total liabilities measured at fair value$— $— $(12,035)$— 
(1) The Company used the probability-weighted discounted cash flow method to estimate the contingent consideration. The significant inputs used in the fair value measurement of the contingent consideration are the probability of payout and discount rate. As these inputs are not based on observable market data, the liability represents a Level 3 measurement within the fair value hierarchy.
June 30, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$1,424,259 $— $— $1,424,259 
Corporate bonds— 11,430 — 11,430 
1,424,259 11,430 — 1,435,689 
Short-term investments:
Corporate bonds— 597,204 — 597,204 
U.S. treasury securities421,728 — — 421,728 
Asset-backed securities— 51,406 — 51,406 
Certificates of deposit— 38,155 — 38,155 
421,728 686,765 — 1,108,493 
Funds held for customers:
Restricted cash equivalents
Money market funds34,703 — — 34,703 
Corporate bonds— 133,557 — 133,557 
34,703 133,557 — 168,260 
Short-term investments
Corporate bonds— 807,685 — 807,685 
Certificates of deposit— 397,533 — 397,533 
Municipal bonds— 6,516 — 6,516 
Asset-backed securities— 69,912 — 69,912 
U.S. treasury securities3,072 — — 3,072 
3,072 1,281,646 — 1,284,718 
Beneficial interest derivative on card receivables sold— — 398 398 
Total assets measured at fair value$1,883,762 $2,113,398 $398 $3,997,558 
v3.23.2
Short-Term Investments (Tables)
 12 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Short-Term Investments
Short-term investments consisted of the following as of the dates presented (in thousands):
June 30, 2023
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Corporate bonds$481,658 $207 $(2,382)$479,483 
U.S. treasury securities409,586 42 (1,260)408,368 
Asset-backed securities51,321 8 (136)51,193 
Certificates of deposit46,099 — — 46,099 
U.S. agency securities58,166 — (199)57,967 
$1,046,830 $257 $(3,977)$1,043,110 
June 30, 2022
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair value
Corporate bonds$601,987 $3 $(4,786)$597,204 
U.S. treasury securities424,644 1 (2,917)421,728 
Asset-backed securities51,622 — (216)51,406 
Certificates of deposit38,155 — — 38,155 
$1,116,408 $4 $(7,919)$1,108,493 
Schedule of Gross Unrealized Loss and Fair Values The following table presents the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands):
June 30, 2023
Fair valueUnrealized
losses
Corporate bonds$296,562 $(2,382)
U.S. treasury securities213,726 (1,260)
Asset-backed securities38,426 (136)
U.S. agency securities57,967 (199)
Total$606,681 $(3,977)
June 30, 2022
Fair valueUnrealized
losses
Corporate bonds$392,699 $(4,786)
U.S. treasury securities411,787 (2,917)
Asset backed securities51,406 (216)
Total$855,892 $(7,919)
v3.23.2
Funds Held for Customers (Tables)
 12 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Summary of Funds Held For Customers
Funds held for customers consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Restricted cash$1,793,088 $1,685,937 
Restricted cash equivalents713,469 168,260 
Funds receivable
12,822 6,747 
Corporate bonds433,920 807,685 
Certificates of deposit233,291 397,533 
Municipal bonds— 6,516 
Asset-backed securities70,661 69,912 
U.S. agency securities27,458 — 
U.S. treasury securities81,074 3,072 
Total funds held for customers3,365,783 3,145,662 
Less - income earned by the Company included in other current assets
(9,874)(3,002)
Total funds held for customers, net of income earned by the Company
$3,355,909 $3,142,660 
Summary of Fair Value of Funds Held For Customers Invested In Short Term Marketable Debt Securities
Below is a summary of the fair value of funds held for customers that were invested in short-term marketable debt securities as of the dates presented (in thousands):
June 30, 2023
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Corporate bonds$433,936 $18 $(34)$433,920 
Certificates of deposit233,290 1 — 233,291 
Asset-backed securities70,993 — (332)70,661 
U.S. agency securities27,484 5 (31)27,458 
U.S. treasury securities81,309 1 (236)81,074 
Total$847,012 $25 $(633)$846,404 
June 30, 2022
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Corporate bonds$809,113 $1 $(1,429)$807,685 
Certificates of deposit397,533 — — 397,533 
Municipal bonds6,542 — (26)6,516 
Asset backed securities70,574 — (662)69,912 
U.S. treasury securities3,082 — (10)3,072 
Total$1,286,844 $1 $(2,127)$1,284,718 
Summary of Gross Unrealized Losses And Fair Values The following tables present the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands):
June 30, 2023
Fair valueUnrealized
losses
Corporate bonds$34,530 $(34)
Asset-backed securities70,661 (332)
U.S. agency securities22,494 (31)
U.S. treasury securities74,888 (236)
Total$202,573 $(633)
June 30, 2022
Fair valueUnrealized
losses
Corporate bonds$301,625 $(1,429)
Municipal bonds6,516 (26)
Asset backed securities64,361 (662)
U.S. treasury securities3,072 (10)
Total$375,574 $(2,127)
v3.23.2
Acquired Card Receivables (Tables)
 12 Months Ended
Jun. 30, 2023
Acquired Card Receivables [Abstract]  
Schedule of Acquired Card Receivables
Acquired card receivables consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Gross amount of acquired card receivables$474,148 $261,806 
Less: allowance for credit losses(15,498)(5,414)
Total$458,650 $256,392 
Summary of Acquired Card Receivables by Class Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands):
June 30,
20232022
Current and less than 30 days past due$463,704 $257,618 
30 ~ 59 days past due2,507 1,677 
60 ~ 89 days past due4,544 1,199 
90 ~ 119 days past due3,196 1,186 
Over 119 days past due197 126 
Total$474,148 $261,806 
Summary of Change in Allowance for Credit Losses
Below is a summary of the changes in allowance for credit losses (in thousands):
June 30,
20232022
Balance, beginning
$5,414 $1,740 
Initial allowance for credit losses on purchased card receivables with credit deterioration
10 313 
Provision for expected credit losses32,015 19,566 
Charge-off amounts(24,120)(18,005)
Recoveries collected2,179 1,800 
Balance, ending
$15,498 $5,414 
Summary Of Fair Value Of Consideration Received From Transfer Of Card Receivables
Below is a summary of the fair value of consideration received from the transfer of card receivables accounted for as a sale during the periods presented (in thousands):
Year ended June 30,
2023(1)
2022
Initial fair value of consideration received:
Cash$316,477 $1,483,481 
Beneficial interest derivative1,682 4,690 
Total$318,159 $1,488,171 
(1) Effective August 2022, the Company ceased selling acquired card receivables.
Summary of Transferred Card Receivables by Class Below is a summary of outstanding transferred card receivables by class (i.e., past due status) that have not been charged-off and have not been recorded on the Company's consolidated balance sheets, but with which the Company has a continuing involvement through its servicing agreements, as of the dates
presented (in thousands):
June 30,
2023(1)
2022
Current and less than 30 days past due$— $56,162 
30 ~ 59 days past due— 292 
60 ~ 89 days past due— 375 
90 ~ 119 days past due— 422 
Over 119 days past due— 30 
Total$— $57,281 
(1) Effective August 2022, the Company ceased selling acquired card receivables
v3.23.2
Property and Equipment (Tables)
 12 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property and equipment consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Software and equipment$20,971 $20,102 
Capitalized software53,950 21,457 
Furniture and fixtures12,598 10,608 
Leasehold improvements39,068 35,105 
Property and equipment, gross126,587 87,272 
Less: accumulated depreciation and amortization(45,023)(30,287)
Property and equipment, net$81,564 $56,985 
v3.23.2
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill Goodwill, which is primarily attributable to expected synergies from acquisitions and is not deductible for U.S. federal and state income tax purposes, consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Balance, beginning$2,362,893 $1,772,043 
Addition related to acquisition during the period33,441 585,448 
Measurement period adjustments175 (2,876)
Adoption of ASU 2021-08— 8,278 
Balance, ending$2,396,509 $2,362,893 
Schedule of Intangible Assets
Intangible assets consisted of the following as of the dates presented (amounts in thousands):
June 30, 2023
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted average remaining
useful life
(In years)
Customer relationships$259,269 $(52,483)$206,786 8.0
Developed technology215,958 (77,178)138,780 3.8
Trade name48,042 (32,181)15,861 1.0
Total$523,269 $(161,842)$361,427 
Jun 30, 2022
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted average remaining
useful life
(In years)
Customer relationships$259,269 $(26,556)$232,713 9.0
Developed technology206,908 (38,909)167,999 4.7
Trade name48,042 (16,171)31,871 2.0
Total$514,219 $(81,636)$432,583 
Schedule of Amortization of Finite-Lived Intangible Assets
Amortization of finite-lived intangible assets was as follows during the years ended June 30, 2023 and 2022 (in thousands):
June 30,
20232022
Cost of revenue$38,269 $36,256 
Sales and marketing41,936 39,721 
Total$80,205 $75,977 
Schedule of Future Amortization of Finite-Lived Intangible Assets
As of June 30, 2023, future amortization of finite-lived intangible assets that will be recorded in cost of revenue and operating expenses is estimated as follows (in thousands):
Fiscal years ending June 30:
Amount
2024$79,953 
202561,234 
202659,570 
202756,912 
202826,606 
Thereafter77,152 
Total$361,427 
v3.23.2
Debt and Bank Borrowings (Tables)
 12 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Debt
Debt and borrowings consisted of the following as of the dates presented (in thousands):
June 30,
20232022
Current liabilities:
Borrowings from credit facilities
   (including unamortized debt premium)(1)
$135,046 $75,097 
Non-current liabilities:
Convertible senior notes:
2027 Notes, principal$575,000 $575,000 
2025 Notes, principal1,150,000 1,150,000 
Less: unamortized issuance costs(20,218)(27,015)
Convertible senior notes, net$1,704,782 $1,697,985 
Total $1,839,828 $1,773,082 

(1) Unamortized debt issuance costs on the Revolving Credit Facility were $0.2 million and zero as of June 30, 2023 and June 30, 2022, respectively, and are included in Prepaid expense and other current assets on the consolidated balance sheet.
Convertible Debt
As of June 30, 2023 and 2022, the Notes consisted of the following (in thousands):
June 30, 2023June 30, 2022
2027 Notes2025 Notes2027 Notes2025 Notes
Liability component:
Principal$575,000 $1,150,000 $575,000 $1,150,000 
Less: unamortized debt issuance costs(10,188)(10,030)(12,873)(14,142)
Net carrying amount$564,812 $1,139,970 $562,127 $1,135,858 
v3.23.2
Stockholders' Equity (Tables)
 12 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Summary of Stock Option Activities
A summary of stock option activity as of June 30, 2023, and changes during the year ended June 30, 2023, is presented below:
Number of
shares
(in thousands) 		Weighted
average
exercise
price
per share		Weighted
average
remaining
contractual
term
(in years)		Aggregate
intrinsic
value
(in thousands)
Outstanding at June 30, 2022
3,858 $18.28 6.97$361,053 
Exercised(1,063)$13.06 
Forfeited(207)$29.06 
Outstanding at June 30, 2023
2,588 $19.56 5.90$258,093 
Vested and expected to vest at June 30, 2023 (1)
2,560 $19.32 5.89$255,787 
Vested and exercisable at June 30, 2023
2,367 $15.62 5.79$242,525 
(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options.
Summary of Fair Value of Options Granted Black-Scholes Option-Pricing Model Assumptions The fair value of options granted during the years ended June 30, 2022, and 2021 was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:
Year ended
June 30,
20222021
Expected term (in years)
2.00 to 7.05
6.25
Expected volatility
30.0% to 81.2%
35.0% to 85.1%
Risk-free interest rate
0.20% to 2.88%
0.38% to 1.03%
Expected dividend yield0 %0 %
Summary of RSU Activity
A summary of RSU activity as of June 30, 2023, and changes during the year ended June 30, 2023, is presented below.
Number of
shares (1)
(in thousands)
Weighted
average
grant date
fair value
Nonvested at June 30, 2022
3,279 $178.85 
Granted3,322 $120.25 
Vested(1,640)$164.38 
Forfeited(777)$165.37 
Nonvested at June 30, 2023
4,184 $140.50 
(1) Includes RSU, market-based RSUs and performance-based RSUs.
Schedule of Fair Value of ESPP Offerings
The fair value of ESPP offerings during the years ended June 30, 2023, 2022, and 2021 was estimated at the date of the offering using the Black-Scholes option-pricing model with the following assumptions:
Year ended
June 30,
202320222021
Expected term (in years)
0.4 to 1.0
0.4 to 1.0
0.5 to 1.00
Expected volatility
81.8% to 82.5%
76.0% to 77.3%
81.0% to 88.4%
Risk-free interest rate
3.39% to 4.89%
0.06% to 0.88%
0.05% to 0.13%
Expected dividend yield0 %0 %0 %
Summary of Stock Based Compensation Cost
Stock-based compensation cost by award type (in thousands):
Year ended
June 30,
202320222021
Stock options$37,882 $55,667 $45,035 
RSUs(1)
251,456 134,222 23,225 
Performance-based awards17,914 — — 
Market-based RSUs4,308 2,755 — 
Employee stock purchase plan11,280 8,918 4,191 
Total stock-based compensation cost
$322,840 $201,562 $72,451 
Stock-based compensation cost from stock options, RSUs and purchase rights issued under the ESPP was included in the following line items in the accompanying consolidated statements of operations and consolidated balance sheets (in thousands):
Year ended
June 30,
202320222021
Revenue - subscription and transaction fees$188 $— $— 
Cost of revenue - service costs9,111 5,144 2,938 
Research and development93,364 54,907 16,091 
Sales and marketing(1)
130,421 60,237 8,547 
General and administrative80,619 76,869 44,411 
Total amount charged to loss from operations313,703 197,157 71,987 
Property and equipment (capitalized internal-use software)9,137 4,405 464 
Total stock-based compensation cost$322,840 $201,562 $72,451 
(1) In October 2022, the Company entered into separation and advisory agreements with its former Chief Revenue Officer (the CRO, and such agreements, the CRO Agreements). Pursuant to the CRO Agreements, the former CRO will serve the Company
as an advisor through September 2024. Upon execution of the CRO Agreements, the Company recognized $52.2 million of stock-based compensation expense related to the former CRO's outstanding RSU awards.
v3.23.2
Other Income (Expense), Net (Tables)
 12 Months Ended
Jun. 30, 2023
Other Income, Nonoperating [Abstract]  
Schedule of Other (Expense) Income, Net
Other income (expense), net consisted of the following for the periods presented (in thousands):
Year ended
June 30,
202320222021
Interest expense$(15,203)$(9,419)$(28,158)
Lower of cost or market adjustment on card
     receivables sold and held for sale		(1,545)(11,460)(691)
Interest income91,279 6,691 2,992 
Other(1,675)327 487 
Total$72,856 $(13,861)$(25,370)
v3.23.2
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Components of Loss before (Benefit from) Provision for Income Taxes
The components of loss before provision for (benefit from) income taxes were as follows during the periods presented (in thousands):
Year ended
June 30,
202320222021
Domestic$(199,452)$(304,508)$(139,337)
Foreign(23,465)(26,171)— 
Total$(222,917)$(330,679)$(139,337)
Components of (Benefit from) Provision for Income Taxes
The components of provision for (benefit from) income taxes were as follows during the periods presented (in thousands):
Year ended
June 30,
202320222021
Current:
Federal$572 $(247)$— 
State1,583 — — 
Foreign14 — — 
Total current2,169 (247)— 
Deferred:
Federal(995)(1,115)(27,529)
State(366)(2,956)(13,088)
Foreign— — — 
Total deferred(1,361)(4,071)(40,617)
Provision for (benefit from) income taxes$808 $(4,318)$(40,617)
Difference between Income Taxes Computed At Federal Statutory Rate and (Benefit from) Provision for Income Taxes
The items accounting for the difference between the income taxes computed at the federal statutory rate and the provision for (benefit from) income taxes consisted of the following during the periods presented (in thousands):
Year ended
June 30,
202320222021
Expected benefit at U.S. federal statutory rate$(46,813)$(69,443)$(29,261)
State income taxes, net of federal benefit8,087 13,509 (54)
Stock-based compensation (1)
4,253 (93,705)(70,262)
Research and development tax credits(19,974)(22,061)(8,846)
Change in valuation allowance related to acquisition (2)
(126)(2,831)(34,749)
Change in valuation allowance (3)
48,321 174,477 94,244 
Unrecognized tax benefit(390)(10,975)6,766 
Acquisition-related costs— 553 1,484 
Foreign rate differential4,942 5,496 — 
Other2,508 662 61 
Provision for (benefit from) income taxes
$808 $(4,318)$(40,617)
(1)
The rate impact during the year ended June 30, 2023 relates to the impact of non-deductible stock compensation and shortfalls related to tax deductions being smaller than the associated stock compensation expense. The rate impact during the years ended June 30, 2022 and 2021 pertains windfalls from tax deductions being larger than the associated stock compensation expense.
(2)
The rate impact during the years ended June 30, 2022 and 2021 pertains to the income tax benefit recorded as a result of the acquisitions of Invoice2go and Divvy, respectively, which allowed the Company to release a portion of its valuation allowance due to the net deferred tax liabilities that were recorded as a result of such acquisitions.
(3)
The rate impact during the year ended June 30, 2023, 2022 and 2021 pertains to (i) an increase in valuation allowance due to the increase in deferred tax assets associated with losses, capitalized R&D expense and tax credits generated during the year, (ii) a change in deferred tax liability related to the 2025 Notes, and (iii) a change in deferred tax liability related to the acquisitions of Invoice2go and Divvy.
Components of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows as of the dates presented (in thousands):
June 30,
20232022
Deferred tax assets:
Accruals and reserves$12,537 $9,325 
Capitalized research and development75,694 — 
Deferred revenue1,084 1,794 
Stock-based compensation24,998 25,897 
Net operating loss carryforwards379,758 410,849 
Research and development credits62,299 46,013 
Accrued rewards1,855 2,867 
Operating lease liabilities21,616 24,203 
Other1,257 3,247 
Total deferred tax assets before valuation allowance
581,098 524,195 
Valuation allowance(479,449)(384,158)
Deferred tax assets$101,649 $140,037 
Deferred tax liabilities:
Deferred contract costs$(4,772)$(3,745)
Property and equipment(13,078)(19,316)
Intangible assets(67,455)(99,483)
Operating right of use assets(17,155)(19,490)
Total deferred tax liabilities$(102,460)$(142,034)
Net deferred tax liabilities$(811)$(1,997)
Reconciliation of Unrecognized Tax Benefits
Below is the reconciliation of the unrecognized tax benefits related to federal and California research and development credits during the periods presented (in thousands):
Year ended
June 30,
202320222021
Balance at the beginning of the year$16,724 $22,185 $5,787 
Add:
Tax positions related to the current year
6,642 7,354 8,267 
Increase from business combination— 160 668 
Tax positions related to the prior year
226 — 7,463 
Less:
Tax positions related to the prior year— (12,761)— 
Statute of limitations lapse(292)(214)— 
Balance at the end of the year$23,300 $16,724 $22,185 
v3.23.2
Leases (Tables)
 12 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Components of Lease Cost
The components of lease expense during the years ended June 30, 2023, 2022, and 2021 are shown in the table below (in thousands):
Year ended June 30
202320222021
Operating lease expense (1)
$14,081 $12,983 $7,826 
Variable lease expense, net of credit2,251 2,909 2,252 
Sublease income(586)(712)(55)
Total lease cost$15,746 $15,180 $10,023 
(1) Includes short-term lease, which is not material for the fiscal years ended June 30, 2023, 2022, and 2021.
v3.23.2
Commitments and Contingencies (Tables)
 12 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Summary of Future Minimum Lease Payments Future minimum lease payments as of June 30, 2023 are as follows (in thousands):
Fiscal years ending June 30:
Amount
2024$14,649 
202513,699 
202613,292 
202713,226 
202813,590 
Thereafter35,919 
Gross lease payments104,375 
Less - present value adjustments(17,737)
Total operating lease liabilities, net$86,638 
Schedule of Future Payments Under Other Agreements Future payments under these other agreements as of June 30, 2023 are as follows (in thousands).
Fiscal years ending June 30:
Amount
2024$14,612 
202512,582 
20266,004 
20275,241 
20285,491 
Thereafter29,373 
Total$73,303 
v3.23.2
Net Loss Per Share Attributable To Common Stockholders (Tables)
 12 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders
The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented (in thousands, except per share amounts):
Year ended
June 30,
202320222021
Numerator:
Net loss attributable to common stockholders$(223,725)$(326,361)$(98,720)
Denominator:
Weighted-average shares used to compute net loss per share attributable to common stockholders
Basic and diluted105,976 101,753 82,813 
Net loss per share attributable to common stockholders:
Basic and diluted$(2.11)$(3.21)$(1.19)
Summary of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share Calculation
Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been anti-dilutive, were as follows as of the dates presented (in thousands):
June 30,
202320222021
Stock options2,588 3,858 6,552 
Restricted stock units4,184 3,279 1,176 
Total6,772 7,137 7,728 
v3.23.2
The Company and Its Significant Accounting Policies - Follow-on Offering (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Sep. 24, 2021
Sep. 14, 2021
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]          
Proceeds from issuance of common stock upon public offering, net of underwriting discounts and other offering costs $ 1,300,000   $ 0 $ 1,341,122 $ 0
IPO          
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]          
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs, shares   5,073,529      
Shares issued price to public per share $ 272.00        
Payments for underwriting discounts commissions and other offering costs $ 38,900        
v3.23.2
The Company and Its Significant Accounting Policies - Segment Reporting (Details)
 12 Months Ended
Jun. 30, 2023
segment
Jun. 30, 2022
Jun. 30, 2021
Accounting Policies [Abstract]      
Number of operating segments 1    
Percentage of revenue from non US customers 0.03 0.03 0
v3.23.2
The Company and Its Significant Accounting Policies - Short-Term Investments (Details) - USD ($)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Accounting Policies [Abstract]      
Other-than-temporary impairment on short-term investments $ 0 $ 0 $ 0
v3.23.2
The Company and Its Significant Accounting Policies - Concentrations of Credit Risk (Details)
$ in Millions
 12 Months Ended
Jun. 30, 2023
USD ($)
Customer
Jun. 30, 2022
USD ($)
Customer
Jun. 30, 2021
Customer
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Allowance for potential credit losses related to accounts receivable and acquired card receivables | $ $ 15.9 $ 5.8  
Revenue Benchmark | Customer Concentration Risk      
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Number of customers exceed 10% of revenue | Customer 0 0 0
Revenue Benchmark | Customer Concentration Risk | No Customer      
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Concentration percentage 10.00% 10.00% 10.00%
v3.23.2
The Company and Its Significant Accounting Policies - Acquired Card Receivables (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Jun. 30, 2022
Accounting Policies [Abstract]    
Allowance for potential credit losses for acquired card receivables $ 15.5 $ 5.4
v3.23.2
The Company and Its Significant Accounting Policies - Property and Equipment (Details)
Jun. 30, 2023
Minimum  
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]  
Estimated useful lives 1 year
Maximum  
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]  
Estimated useful lives 4 years
v3.23.2
The Company and Its Significant Accounting Policies - Intangible Assets (Details)
Jun. 30, 2023
Minimum  
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]  
Estimated useful lives 3 years
Maximum  
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]  
Estimated useful lives 10 years
v3.23.2
The Company and Its Significant Accounting Policies - Impairment (Details)
 12 Months Ended
Jun. 30, 2023
reportingUnit
Accounting Policies [Abstract]  
Number of reporting unit 1
v3.23.2
The Company and Its Significant Accounting Policies - Leases (Details)
Jun. 30, 2023
Minimum  
Lessee Lease Description [Line Items]  
Lease arrangements term 12 months
v3.23.2
The Company and Its Significant Accounting Policies - Accrued Rewards (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Sales and Marketing Expenses      
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Rewards and promotions expense $ 173.9 $ 95.2 $ 4.5
Other Accruals and Current Liabilities      
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Accrued rewards and promotions liability $ 55.4 $ 36.2  
v3.23.2
The Company and Its Significant Accounting Policies - Stock-Based Compensation (Details)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Offering period of purchase rights under ESPP 1 year    
Risk-free interest rate 0.00%    
Expected dividend yield 0.00% 0.00% 0.00%
Stock Options and RSUs      
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Vesting term 4 years    
v3.23.2
The Company and Its Significant Accounting Policies - Advertising (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Accounting Policies [Abstract]      
Advertising expenses $ 39.0 $ 29.4 $ 8.5
v3.23.2
Revenue - Schedule of Subscription and Transaction Fees Disaggregated by Customer Category (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Disaggregation Of Revenue [Line Items]      
Total revenue $ 1,058,468 $ 641,959 $ 238,265
Subscription and transaction fees      
Disaggregation Of Revenue [Line Items]      
Total revenue 944,710 633,365 232,255
Subscription and transaction fees | Small-to-midsize Business and Accounting Firm Customers      
Disaggregation Of Revenue [Line Items]      
Total revenue 901,602 603,171 218,227
Subscription and transaction fees | Financial Institution Customers      
Disaggregation Of Revenue [Line Items]      
Total revenue 43,108 30,194 14,028
Interest on funds held for customers      
Disaggregation Of Revenue [Line Items]      
Total revenue $ 113,758 $ 8,594 $ 6,010
v3.23.2
Revenue - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Disaggregation Of Revenue [Line Items]    
Deferred revenue, recognized $ 32,000  
Aggregate amount of transaction price allocated to performance obligations 131,100  
Unbilled revenue $ 14,000 $ 11,400
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01    
Disaggregation Of Revenue [Line Items]    
Aggregate amount of transaction price allocated to performance obligations, percentage 77.00%  
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01    
Disaggregation Of Revenue [Line Items]    
Aggregate amount of transaction price allocated to performance obligations, percentage 23.00%  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01 | Minimum    
Disaggregation Of Revenue [Line Items]    
Revenue, remaining performance obligation, expected timing of satisfaction, period 3 years  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01 | Maximum    
Disaggregation Of Revenue [Line Items]    
Revenue, remaining performance obligation, expected timing of satisfaction, period 5 years  
v3.23.2
Revenue - Summary of Deferred Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Deferred Costs [Line Items]      
Amortization of deferred sales commissions $ 6,600 $ 5,200 $ 3,600
Amortization of deferred service costs 2,500 1,600 $ 600
Deferred Sales Commissions      
Deferred Costs [Line Items]      
Current 6,523 5,460  
Non-current 12,317 9,187  
Total 18,840 14,647  
Deferred Service Costs      
Deferred Costs [Line Items]      
Current 904 720  
Non-current 2,221 3,433  
Total $ 3,125 $ 4,153  
v3.23.2
Business Combination - Summary of Acquisition Purchase Consideration -Invoice2go (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 01, 2021
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Business Acquisition [Line Items]        
Equity consideration   $ 3,375 $ 488,494 $ 1,603,543
Invoice2go, Inc.        
Business Acquisition [Line Items]        
Acquisition date Sep. 01, 2021      
Percentage of outstanding equity interests acquired 100.00%      
Equity consideration $ 510,218      
Cash 164,087      
Total $ 674,305      
Business acquisition, common stock issued (shares) 1,788,372      
Invoice2go, Inc. | 2014 Equity Incentive Plan        
Business Acquisition [Line Items]        
Fair value of stock options $ 21,700      
v3.23.2
Business Combination - Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed - Invoice2go (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Sep. 01, 2021
Jun. 30, 2021
Business Acquisition [Line Items]        
Goodwill $ 2,396,509 $ 2,362,893   $ 1,772,043
Invoice2go, Inc.        
Business Acquisition [Line Items]        
Cash and cash equivalents     $ 19,738  
Accounts receivable and other assets     4,518  
Intangible assets     91,219  
Total identifiable assets acquired     115,475  
Accounts payable and other liabilities     (26,618)  
Net identifiable assets acquired     88,857  
Goodwill     585,448  
Net assets acquired     $ 674,305  
v3.23.2
Business Combination - Summary of Preliminary Fair Values Allocated to Identifiable Intangible Assets and Estimated Useful Lives - Invoice2go (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Sep. 01, 2021
Business Acquisition [Line Items]      
Preliminary fair value $ 523,269 $ 514,219  
Customer relationships      
Business Acquisition [Line Items]      
Preliminary fair value 259,269 259,269  
Developed technology      
Business Acquisition [Line Items]      
Preliminary fair value 215,958 206,908  
Trade name      
Business Acquisition [Line Items]      
Preliminary fair value $ 48,042 $ 48,042  
Invoice2go, Inc.      
Business Acquisition [Line Items]      
Preliminary fair value     $ 91,219
Invoice2go, Inc. | Customer relationships      
Business Acquisition [Line Items]      
Preliminary fair value     $ 61,269
Weighted average useful life (in years)     10 years
Invoice2go, Inc. | Developed technology      
Business Acquisition [Line Items]      
Preliminary fair value     $ 15,908
Weighted average useful life (in years)     3 years
Invoice2go, Inc. | Trade name      
Business Acquisition [Line Items]      
Preliminary fair value     $ 14,042
Weighted average useful life (in years)     3 years
v3.23.2
Business Combination - Narrative (Details)
 1 Months Ended 12 Months Ended
Sep. 01, 2021
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
May 31, 2022
USD ($)
Jun. 30, 2021
USD ($)
Jun. 01, 2021
USD ($)
Business Acquisition [Line Items]              
Goodwill   $ 1,772,043,000 $ 2,396,509,000 $ 2,362,893,000   $ 1,772,043,000  
Total revenue     1,058,468,000 641,959,000   238,265,000  
Net loss     $ (223,725,000) (326,361,000)   (98,720,000)  
Invoice2go, Inc.              
Business Acquisition [Line Items]              
Goodwill expected to be deductible for income tax purposes $ 0            
Adjustment to goodwill and deferred revenue 8,000,000            
Goodwill $ 585,448,000            
Total revenue       32,900,000      
Net loss       (32,000,000)      
Net loss       (327,136,000)   (149,003,000)  
Invoice2go, Inc. | Nonrecurring Acquisition-Related Costs              
Business Acquisition [Line Items]              
Net loss       19,000,000   20,600,000  
Invoice2go, Inc. | General and Administrative Expense              
Business Acquisition [Line Items]              
Acquisition-related costs       3,700,000      
DivvyPay, Inc.              
Business Acquisition [Line Items]              
Changes in recognized amount of goodwill         $ 2,700,000    
Goodwill             $ 1,772,043,000
Card receivables held for sale             $ 12,730,000
Indemnification asset   20,400,000   $ 13,400,000   20,400,000  
Total revenue   10,300,000          
Net loss   $ 11,400,000          
Net loss           (223,470,000)  
DivvyPay, Inc. | Nonrecurring Acquisition-Related Costs              
Business Acquisition [Line Items]              
Net loss           (2,300,000)  
DivvyPay, Inc. | General and Administrative Expense              
Business Acquisition [Line Items]              
Acquisition-related costs           $ 15,500,000  
Customer relationships | Invoice2go, Inc. | Discount Rate              
Business Acquisition [Line Items]              
Fair value measurement input 0.123            
Customer relationships | DivvyPay, Inc. | Discount Rate              
Business Acquisition [Line Items]              
Fair value measurement input             0.160
Developed technology | Invoice2go, Inc. | Discount Rate              
Business Acquisition [Line Items]              
Fair value measurement input 0.123            
Developed technology | Invoice2go, Inc. | Pre-tax Royalty Rate              
Business Acquisition [Line Items]              
Fair value measurement input 0.150            
Developed technology | DivvyPay, Inc. | Discount Rate              
Business Acquisition [Line Items]              
Fair value measurement input             0.160
Developed technology | DivvyPay, Inc. | Pre-tax Royalty Rate              
Business Acquisition [Line Items]              
Fair value measurement input             0.150
Trade name | Invoice2go, Inc. | Discount Rate              
Business Acquisition [Line Items]              
Fair value measurement input 0.123            
Trade name | Invoice2go, Inc. | Pre-tax Royalty Rate              
Business Acquisition [Line Items]              
Fair value measurement input 0.025            
Trade name | DivvyPay, Inc. | Discount Rate              
Business Acquisition [Line Items]              
Fair value measurement input             0.160
Trade name | DivvyPay, Inc. | Pre-tax Royalty Rate              
Business Acquisition [Line Items]              
Fair value measurement input             0.010
v3.23.2
Business Combination - Summary of Unaudited Pro Forma Financial Information (Details) - Invoice2go, Inc. - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Business Acquisition [Line Items]    
Revenue $ 648,476 $ 274,842
Net loss $ (327,136) $ (149,003)
v3.23.2
Business Combination - Summary of Acquisition of Divvy (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 01, 2021
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Business Acquisition [Line Items]        
Equity consideration   $ 3,375 $ 488,494 $ 1,603,543
DivvyPay, Inc.        
Business Acquisition [Line Items]        
Acquisition date Jun. 01, 2021      
Percentage of outstanding equity interests acquired 100.00%      
Acquisition purchase consideration $ 2,323,597      
Equity consideration 1,658,818      
Cash $ 664,779      
Business acquisition, common stock issued (shares) 10,767,140      
DivvyPay, Inc. | 2016 Equity Incentive Plan        
Business Acquisition [Line Items]        
Fair value of stock options $ 55,300      
v3.23.2
Business Combination - Summary of Fair Values of Assets Acquired and Liabilities Assumed - Divvy (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Jun. 01, 2021
Business Acquisition [Line Items]        
Goodwill $ 2,396,509 $ 2,362,893 $ 1,772,043  
DivvyPay, Inc.        
Business Acquisition [Line Items]        
Cash       $ 108,689
Acquired card receivables       159,784
Accounts receivable       7,435
Card receivables held for sale       12,730
Property and equipment       15,805
Intangible assets       423,000
Prepaid expenses and other assets       57,669
Total identifiable assets acquired       785,112
Accounts payable and other liabilities       (153,855)
Outstanding borrowings from credit facilities       (79,703)
Total liabilities assumed       233,558
Net identifiable assets acquired       551,554
Goodwill       1,772,043
Net assets acquired       $ 2,323,597
v3.23.2
Business Combination - Summary of Fair Values Allocated to Identifiable Intangible Assets and Estimated Useful Lives - Divvy (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Jun. 01, 2021
Business Acquisition [Line Items]      
Preliminary fair value $ 523,269 $ 514,219  
Customer relationships      
Business Acquisition [Line Items]      
Preliminary fair value 259,269 259,269  
Developed technology      
Business Acquisition [Line Items]      
Preliminary fair value 215,958 206,908  
Trade name      
Business Acquisition [Line Items]      
Preliminary fair value $ 48,042 $ 48,042  
DivvyPay, Inc.      
Business Acquisition [Line Items]      
Preliminary fair value     $ 423,000
DivvyPay, Inc. | Customer relationships      
Business Acquisition [Line Items]      
Preliminary fair value     $ 198,000
Estimated useful lives     10 years
DivvyPay, Inc. | Developed technology      
Business Acquisition [Line Items]      
Preliminary fair value     $ 191,000
Estimated useful lives     6 years
DivvyPay, Inc. | Trade name      
Business Acquisition [Line Items]      
Preliminary fair value     $ 34,000
Estimated useful lives     3 years
v3.23.2
Business Combination - Summary of Unaudited Proforma Financial Information - Divvy (Details) - DivvyPay, Inc.
$ in Thousands
 12 Months Ended
Jun. 30, 2021
USD ($)
Business Acquisition [Line Items]  
Total revenue $ 307,618
Net loss (223,470)
Nonrecurring Acquisition-Related Costs  
Business Acquisition [Line Items]  
Net loss $ (2,300)
v3.23.2
Fair Value Measurement - Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Assets    
Cash equivalents: $ 1,224,356 $ 1,435,689
Short-term investments: 1,043,110 1,108,493
Funds held for customers: 846,404 1,284,718
Beneficial interest derivative on card receivables sold   398
Total assets measured at fair value 3,827,339 3,997,558
Liabilities    
Contingent consideration 0  
Total liabilities measured at fair value 0  
U.S. agency securities    
Assets    
Funds held for customers:   6,516
Money market funds    
Assets    
Cash equivalents: 1,131,621 1,424,259
Certificates of deposit    
Assets    
Cash equivalents: 2,578  
Certificates of deposit    
Assets    
Short-term investments: 46,099 38,155
Funds held for customers: 233,291 397,533
Corporate bonds    
Assets    
Cash equivalents: 45,301 11,430
Short-term investments: 479,483 597,204
Funds held for customers: 433,920 807,685
Corporate bonds | Restricted cash equivalents    
Assets    
Funds held for customers:   133,557
U.S. treasury securities    
Assets    
Cash equivalents: 44,856  
Short-term investments: 408,368 421,728
Funds held for customers: 81,074 3,072
U.S. agency securities    
Assets    
Short-term investments: 57,967  
Funds held for customers: 27,458  
Asset-backed securities    
Assets    
Short-term investments: 51,193 51,406
Funds held for customers: 70,661 69,912
Restricted cash equivalents | Restricted cash equivalents    
Assets    
Funds held for customers: 713,469 168,260
Restricted cash equivalents | Money market funds | Restricted cash equivalents    
Assets    
Funds held for customers: 713,469 34,703
Level 1    
Assets    
Cash equivalents: 1,176,477 1,424,259
Short-term investments: 408,368 421,728
Funds held for customers: 81,074 3,072
Beneficial interest derivative on card receivables sold   0
Total assets measured at fair value 2,379,388 1,883,762
Liabilities    
Contingent consideration 0  
Total liabilities measured at fair value 0  
Level 1 | U.S. agency securities    
Assets    
Funds held for customers:   0
Level 1 | Money market funds    
Assets    
Cash equivalents: 1,131,621 1,424,259
Level 1 | Certificates of deposit    
Assets    
Cash equivalents: 0  
Level 1 | Certificates of deposit    
Assets    
Short-term investments: 0 0
Funds held for customers: 0 0
Level 1 | Corporate bonds    
Assets    
Cash equivalents: 0 0
Short-term investments: 0 0
Funds held for customers: 0 0
Level 1 | Corporate bonds | Restricted cash equivalents    
Assets    
Funds held for customers:   0
Level 1 | U.S. treasury securities    
Assets    
Cash equivalents: 44,856  
Short-term investments: 408,368 421,728
Funds held for customers: 81,074 3,072
Level 1 | U.S. agency securities    
Assets    
Short-term investments: 0  
Funds held for customers: 0  
Level 1 | Asset-backed securities    
Assets    
Short-term investments: 0 0
Funds held for customers: 0 0
Level 1 | Restricted cash equivalents | Restricted cash equivalents    
Assets    
Funds held for customers: 713,469 34,703
Level 1 | Restricted cash equivalents | Money market funds | Restricted cash equivalents    
Assets    
Funds held for customers: 713,469 34,703
Level 2    
Assets    
Cash equivalents: 47,879 11,430
Short-term investments: 634,742 686,765
Funds held for customers: 765,330 1,281,646
Beneficial interest derivative on card receivables sold   0
Total assets measured at fair value 1,447,951 2,113,398
Liabilities    
Contingent consideration 0  
Total liabilities measured at fair value 0  
Level 2 | U.S. agency securities    
Assets    
Funds held for customers:   6,516
Level 2 | Money market funds    
Assets    
Cash equivalents: 0 0
Level 2 | Certificates of deposit    
Assets    
Cash equivalents: 2,578  
Level 2 | Certificates of deposit    
Assets    
Short-term investments: 46,099 38,155
Funds held for customers: 233,291 397,533
Level 2 | Corporate bonds    
Assets    
Cash equivalents: 45,301 11,430
Short-term investments: 479,483 597,204
Funds held for customers: 433,920 807,685
Level 2 | Corporate bonds | Restricted cash equivalents    
Assets    
Funds held for customers:   133,557
Level 2 | U.S. treasury securities    
Assets    
Cash equivalents: 0  
Short-term investments: 0 0
Funds held for customers: 0 0
Level 2 | U.S. agency securities    
Assets    
Short-term investments: 57,967  
Funds held for customers: 27,458  
Level 2 | Asset-backed securities    
Assets    
Short-term investments: 51,193 51,406
Funds held for customers: 70,661 69,912
Level 2 | Restricted cash equivalents | Restricted cash equivalents    
Assets    
Funds held for customers: 0 133,557
Level 2 | Restricted cash equivalents | Money market funds | Restricted cash equivalents    
Assets    
Funds held for customers: 0 0
Level 3    
Assets    
Cash equivalents: 0 0
Short-term investments: 0 0
Funds held for customers: 0 0
Beneficial interest derivative on card receivables sold   398
Total assets measured at fair value 0 398
Liabilities    
Contingent consideration (12,035)  
Total liabilities measured at fair value (12,035)  
Level 3 | U.S. agency securities    
Assets    
Funds held for customers:   0
Level 3 | Money market funds    
Assets    
Cash equivalents: 0 0
Level 3 | Certificates of deposit    
Assets    
Cash equivalents: 0  
Level 3 | Certificates of deposit    
Assets    
Short-term investments: 0 0
Funds held for customers: 0 0
Level 3 | Corporate bonds    
Assets    
Cash equivalents: 0 0
Short-term investments: 0 0
Funds held for customers: 0 0
Level 3 | Corporate bonds | Restricted cash equivalents    
Assets    
Funds held for customers:   0
Level 3 | U.S. treasury securities    
Assets    
Cash equivalents: 0  
Short-term investments: 0 0
Funds held for customers: 0 0
Level 3 | U.S. agency securities    
Assets    
Short-term investments: 0  
Funds held for customers: 0  
Level 3 | Asset-backed securities    
Assets    
Short-term investments: 0 0
Funds held for customers: 0 0
Level 3 | Restricted cash equivalents | Restricted cash equivalents    
Assets    
Funds held for customers: 0 0
Level 3 | Restricted cash equivalents | Money market funds | Restricted cash equivalents    
Assets    
Funds held for customers: $ 0 $ 0
v3.23.2
Fair Value Measurement - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Sep. 24, 2021
Nov. 30, 2020
2027 Notes      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Debt instrument, aggregate principal amount $ 575.0 $ 575.0  
Debt Instrument, Fair Value Estimated 473.7    
2025 Notes      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Debt instrument, aggregate principal amount $ 1,150.0   $ 1,150.0
Debt instrument, interest rate 0.00%   0.00%
Debt Instrument, Fair Value Estimated $ 1,190.0    
v3.23.2
Short-Term Investments - Schedule of Short-Term Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost $ 1,046,830 $ 1,116,408
Gross unrealized gains 257 4
Gross unrealized losses (3,977) (7,919)
Fair value 1,043,110 1,108,493
Corporate bonds    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost 481,658 601,987
Gross unrealized gains 207 3
Gross unrealized losses (2,382) (4,786)
Fair value 479,483 597,204
U.S. treasury securities    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost 409,586 424,644
Gross unrealized gains 42 1
Gross unrealized losses (1,260) (2,917)
Fair value 408,368 421,728
Asset-backed securities    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost 51,321 51,622
Gross unrealized gains 8 0
Gross unrealized losses (136) (216)
Fair value 51,193 51,406
Certificates of deposit    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost 46,099 38,155
Gross unrealized gains 0 0
Gross unrealized losses 0 0
Fair value 46,099 $ 38,155
U.S. agency securities    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost 58,166  
Gross unrealized gains 0  
Gross unrealized losses (199)  
Fair value $ 57,967  
v3.23.2
Short-Term Investments - Additional Information (Details)
 12 Months Ended
Jun. 30, 2023
USD ($)
InvestmentPosition
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Schedule Of Available For Sale Securities [Line Items]      
Debt Securities Available For Sale Accrued Interest After Allowance For Credit Loss Statement Of Financial Position Extensible List Not Disclosed Flag accrued interest receivable    
Accrued interest receivable $ 4,300,000 $ 3,000,000  
Short-term investments mature within one year $ 758,100,000 $ 961,800,000  
Percentage of short-term investments maturing within one year 73.00% 87.00%  
Short-term investments mature thereafter $ 285,000,000 $ 146,700,000  
Percentage of short-term investments maturing thereafter 27.00% 13.00%  
Number of investments in unrealized loss positions | InvestmentPosition 190    
Unrealized losses, continuous realized loss position, less than 12 months $ 506,500,000 $ 851,800,000  
Unrealized losses, continuous realized loss position, 12 months or longer 100,200,000 0  
Short-term investments realized gains or losses 0 0 $ 0
Allowance for credit losses on investments that were in an unrealized loss position $ 0 $ 0  
Minimum      
Schedule Of Available For Sale Securities [Line Items]      
Number of investment positions | InvestmentPosition 330    
v3.23.2
Short-Term Investments - Schedule of Gross Unrealized Losses and Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Schedule Of Available For Sale Securities [Line Items]    
Fair value $ 606,681 $ 855,892
Unrealized losses (3,977) (7,919)
Corporate bonds    
Schedule Of Available For Sale Securities [Line Items]    
Fair value 296,562 392,699
Unrealized losses (2,382) (4,786)
U.S. treasury securities    
Schedule Of Available For Sale Securities [Line Items]    
Fair value 213,726 411,787
Unrealized losses (1,260) (2,917)
Asset-backed securities    
Schedule Of Available For Sale Securities [Line Items]    
Fair value 38,426 51,406
Unrealized losses (136) $ (216)
U.S. agency securities    
Schedule Of Available For Sale Securities [Line Items]    
Fair value 57,967  
Unrealized losses $ (199)  
v3.23.2
Funds Held for Customers - Summary of Funds Held for Customers (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Funds Held For Customers [Line Items]    
Total funds held for customers $ 3,365,783 $ 3,145,662
Total funds held for customers, net of income earned by the Company 3,355,909 3,142,660
Restricted cash    
Funds Held For Customers [Line Items]    
Total funds held for customers 1,793,088 1,685,937
Restricted cash equivalents    
Funds Held For Customers [Line Items]    
Total funds held for customers 713,469 168,260
Funds receivable    
Funds Held For Customers [Line Items]    
Total funds held for customers 12,822 6,747
Corporate bonds    
Funds Held For Customers [Line Items]    
Total funds held for customers 433,920 807,685
Asset-backed securities    
Funds Held For Customers [Line Items]    
Total funds held for customers 70,661 69,912
U.S. agency securities    
Funds Held For Customers [Line Items]    
Total funds held for customers 27,458 0
U.S. treasury securities    
Funds Held For Customers [Line Items]    
Total funds held for customers 81,074 3,072
Certificates of deposit    
Funds Held For Customers [Line Items]    
Total funds held for customers 233,291 397,533
U.S. agency securities    
Funds Held For Customers [Line Items]    
Total funds held for customers 0 6,516
Other Current Assets    
Funds Held For Customers [Line Items]    
Less - income earned by the Company included in other current assets $ (9,874) $ (3,002)
v3.23.2
Funds Held for Customers - Summary of Fair Value of Funds Held For Customers (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Funds Held For Customers [Line Items]    
Amortized cost $ 847,012 $ 1,286,844
Gross unrealized gains 25 1
Gross unrealized losses (633) (2,127)
Fair value 846,404 1,284,718
Corporate bonds    
Funds Held For Customers [Line Items]    
Amortized cost 433,936 809,113
Gross unrealized gains 18 1
Gross unrealized losses (34) (1,429)
Fair value 433,920 807,685
Asset-backed securities    
Funds Held For Customers [Line Items]    
Amortized cost 70,993 70,574
Gross unrealized gains 0 0
Gross unrealized losses (332) (662)
Fair value 70,661 69,912
U.S. agency securities    
Funds Held For Customers [Line Items]    
Amortized cost 27,484  
Gross unrealized gains 5  
Gross unrealized losses (31)  
Fair value 27,458  
U.S. treasury securities    
Funds Held For Customers [Line Items]    
Amortized cost 81,309 3,082
Gross unrealized gains 1 0
Gross unrealized losses (236) (10)
Fair value 81,074 3,072
Certificates of deposit    
Funds Held For Customers [Line Items]    
Amortized cost 233,290 397,533
Gross unrealized gains 1 0
Gross unrealized losses 0 0
Fair value $ 233,291 397,533
U.S. agency securities    
Funds Held For Customers [Line Items]    
Amortized cost   6,542
Gross unrealized gains   0
Gross unrealized losses   (26)
Fair value   $ 6,516
v3.23.2
Funds Held for Customers - Additional Information (Details)
Jun. 30, 2023
USD ($)
InvestmentPosition
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Funds Held For Customers [Line Items]      
Amortized Cost $ 847,012,000 $ 1,286,844,000  
Fair value $ 846,404,000 $ 1,284,718,000  
Debt securities percentage mature within one year 93.00% 95.00%  
Debt securities mature within one year $ 785,300,000 $ 1,200,000,000  
Debt securities percentage mature thereafter 7.00% 5.00%  
Debt securities mature thereafter $ 61,100,000 $ 69,900,000  
Number of unrealized loss investment positions | InvestmentPosition 50    
Unrealized losses, continuous unrealized loss position, less than 12 months $ 375,600,000 191,000,000  
Short-term investments realized gains or losses 0 0 $ 0
Allowance for credit losses on investments that were in an unrealized loss position $ 0 0  
Minimum      
Funds Held For Customers [Line Items]      
Number of investment positions | InvestmentPosition 230    
Accrued Interest Receivable      
Funds Held For Customers [Line Items]      
Amortized Cost $ 6,900,000 3,000,000  
Fair value $ 6,900,000 $ 3,000,000  
v3.23.2
Funds Held for Customers - Summary of Gross Unrealized Losses And Fair Values (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Funds Held For Customers [Line Items]    
Fair value $ 202,573 $ 375,574
Unrealized losses (633) (2,127)
U.S. agency securities    
Funds Held For Customers [Line Items]    
Fair value   6,516
Unrealized losses   (26)
Corporate bonds    
Funds Held For Customers [Line Items]    
Fair value 34,530 301,625
Unrealized losses (34) (1,429)
Asset-backed securities    
Funds Held For Customers [Line Items]    
Fair value 70,661 64,361
Unrealized losses (332) (662)
U.S. agency securities    
Funds Held For Customers [Line Items]    
Fair value 22,494  
Unrealized losses (31)  
U.S. treasury securities    
Funds Held For Customers [Line Items]    
Fair value 74,888 3,072
Unrealized losses $ (236) $ (10)
v3.23.2
Acquired Card Receivables - Schedule of Acquired Card Receivables (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Acquired Card Receivables [Abstract]      
Gross amount of acquired card receivables $ 474,148 $ 261,806  
Less: allowance for credit losses (15,498) (5,414) $ (1,740)
Total $ 458,650 $ 256,392  
v3.23.2
Acquired Card Receivables - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Acquired Card Receivables [Line Items]    
Acquired card receivable as collateral $ 188,000  
Authorized transactions but not cleared $ 68,600  
Grace period to payment on acquired card receivables 5 days  
Acquired card receivables, minimum number of past due days to accrue fees 90 days 90 days
Card receivables acquired during the period $ 13,200,000 $ 6,600,000
Gross charge-off amount, prior fiscal year 6,500  
Gross charge-off amount, current fiscal year 17,600  
Fair value, beneficial interest derivative 0 0
Prepaid Expenses and Other Current Assets    
Acquired Card Receivables [Line Items]    
Card receivables held for sale, amount $ 0 $ 8,700
v3.23.2
Acquired Card Receivables - Summary of Acquired Card Receivables by Class (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Acquired Card Receivables [Line Items]    
Total $ 474,148 $ 261,806
Current and less than 30 days past due    
Acquired Card Receivables [Line Items]    
Total 463,704 257,618
30 ~ 59 days past due    
Acquired Card Receivables [Line Items]    
Total 2,507 1,677
60 ~ 89 days past due    
Acquired Card Receivables [Line Items]    
Total 4,544 1,199
90 ~ 119 days past due    
Acquired Card Receivables [Line Items]    
Total 3,196 1,186
Over 119 days past due    
Acquired Card Receivables [Line Items]    
Total $ 197 $ 126
v3.23.2
Acquired Card Receivables - Summary of Change in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Allowance For Credit Losses [Roll Forward]    
Balance, beginning $ 5,414 $ 1,740
Initial allowance for credit losses on purchased card receivables with credit deterioration 10 313
Provision for expected credit losses 32,015 19,566
Charge-off amounts (24,120) (18,005)
Recoveries collected 2,179 1,800
Balance, ending $ 15,498 $ 5,414
v3.23.2
Acquired Card Receivables - Summary of Fair Value of Consideration Received From Transfer of Card Receivables (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Credit Loss [Abstract]    
Cash $ 316,477 $ 1,483,481
Beneficial interest derivative 1,682 4,690
Total $ 318,159 $ 1,488,171
v3.23.2
Acquired Card Receivables - Summary of Transferred Card Receivables by Class (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Acquired Card Receivables [Line Items]    
Total $ 0 $ 57,281
Current and less than 30 days past due    
Acquired Card Receivables [Line Items]    
Total 0 56,162
30 ~ 59 days past due    
Acquired Card Receivables [Line Items]    
Total 0 292
60 ~ 89 days past due    
Acquired Card Receivables [Line Items]    
Total 0 375
90 ~ 119 days past due    
Acquired Card Receivables [Line Items]    
Total 0 422
Over 119 days past due    
Acquired Card Receivables [Line Items]    
Total $ 0 $ 30
v3.23.2
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 126,587 $ 87,272
Less: accumulated depreciation and amortization (45,023) (30,287)
Property and equipment, net 81,564 56,985
Software and equipment    
Property Plant And Equipment [Line Items]    
Property and equipment, gross 20,971 20,102
Capitalized software    
Property Plant And Equipment [Line Items]    
Property and equipment, gross 53,950 21,457
Furniture and fixtures    
Property Plant And Equipment [Line Items]    
Property and equipment, gross 12,598 10,608
Leasehold improvements    
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 39,068 $ 35,105
v3.23.2
Property and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Property, Plant and Equipment [Abstract]      
Depreciation of property and equipment $ 15.5 $ 11.5 $ 5.4
Unamortized capitalized software cost $ 42.7 $ 15.7  
v3.23.2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Goodwill [Roll Forward]    
Balance, beginning $ 2,362,893 $ 1,772,043
Addition related to acquisition during the period 33,441 585,448
Measurement period adjustments 175 (2,876)
Balance, ending 2,396,509 2,362,893
Finite-Lived Intangible Assets [Line Items]    
Goodwill 2,396,509 2,362,893
Adoption of ASU 2021-08    
Goodwill [Roll Forward]    
Balance, beginning 8,278  
Balance, ending 0 8,278
Finite-Lived Intangible Assets [Line Items]    
Goodwill $ 0 $ 8,278
v3.23.2
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 523,269 $ 514,219
Accumulated Amortization (161,842) (81,636)
Net Carrying Amount 361,427 432,583
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 259,269 259,269
Accumulated Amortization (52,483) (26,556)
Net Carrying Amount $ 206,786 $ 232,713
Weighted average remaining useful life (In years) 8 years 9 years
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 215,958 $ 206,908
Accumulated Amortization (77,178) (38,909)
Net Carrying Amount $ 138,780 $ 167,999
Weighted average remaining useful life (In years) 3 years 9 months 18 days 4 years 8 months 12 days
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 48,042 $ 48,042
Accumulated Amortization (32,181) (16,171)
Net Carrying Amount $ 15,861 $ 31,871
Weighted average remaining useful life (In years) 1 year 2 years
v3.23.2
Goodwill and Intangible Assets - Schedule of Amortization of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets $ 80,205 $ 75,977 $ 5,659
Cost of revenue      
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets 38,269 36,256  
Sales and marketing      
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets $ 41,936 $ 39,721  
v3.23.2
Goodwill and Intangible Assets - Schedule of Future Amortization of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
2024 $ 79,953  
2025 61,234  
2026 59,570  
2027 56,912  
2028 26,606  
Thereafter 77,152  
Net Carrying Amount $ 361,427 $ 432,583
v3.23.2
Debt and Bank Borrowings - Schedule of Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Debt Instrument [Line Items]    
Less: unamortized issuance costs $ (20,218) $ (27,015)
Convertible senior notes, net 1,704,782 1,697,985
Net carrying amount 1,839,828 1,773,082
Line of Credit    
Debt Instrument [Line Items]    
Borrowing from revolving credit facility 135,046 75,097
Unamortized debt issuance costs 200 0
2027 Notes    
Debt Instrument [Line Items]    
Convertible senior notes: 575,000 575,000
Less: unamortized issuance costs (10,188) (12,873)
Net carrying amount 564,812 562,127
2025 Notes    
Debt Instrument [Line Items]    
Convertible senior notes: 1,150,000 1,150,000
Less: unamortized issuance costs (10,030) (14,142)
Net carrying amount $ 1,139,970 $ 1,135,858
v3.23.2
Debt and Bank Borrowings - Additional Information (Details)
$ / shares in Units, shares in Millions
 12 Months Ended
Sep. 24, 2021
USD ($)
Tradingday
d
$ / shares
shares
Nov. 30, 2020
USD ($)
TradingDay
d
$ / shares
shares
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2022
$ / shares
Debt Instrument [Line Items]            
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs     $ 0 $ 560,075,000 $ 1,129,379,000  
Sinking fund $ 0          
Number of business day period for conversion of Notes | d 5          
2027 Notes            
Debt Instrument [Line Items]            
Debt instrument, aggregate principal amount $ 575,000,000   575,000,000      
Debt instrument, maturity date Apr. 01, 2027          
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs $ 560,100,000          
Debt issuance costs $ 14,900,000          
Debt initial conversion rate 0.0024108          
Debt instrument denomination of principal amount for conversion into common stock $ 1,000          
Initial conversion price per share | $ / shares $ 414.80          
Notes issued upon conversion (shares) | shares 1.4          
Debt convertible date Jan. 01, 2027          
Threshold percentage of stock price trigger in measurement period 98.00%          
Debt conversion rate in make whole 1.2656          
Debt conversion price per share in make whole | $ / shares           $ 272.00
2027 Notes | Debt Instrument, Redemption, Period Two            
Debt Instrument [Line Items]            
Debt instrument threshold percentage of conversion price 130.00%          
Number of trading days for conversion of Notes | Tradingday 20          
Number of consecutive trading days for conversion of Notes | Tradingday 30          
Redemption price percentage of principal amount redeemed 100.00%          
2025 Notes            
Debt Instrument [Line Items]            
Debt instrument, aggregate principal amount   $ 1,150,000,000 $ 1,150,000,000      
Debt instrument, interest rate   0.00% 0.00%      
Debt instrument, maturity date   Dec. 01, 2025        
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs   $ 1,130,000,000        
Debt issuance costs   $ 20,600,000        
Debt initial conversion rate   0.0062159        
Debt instrument denomination of principal amount for conversion into common stock   $ 1,000        
Initial conversion price per share | $ / shares   $ 160.88        
Notes issued upon conversion (shares) | shares   7.1        
Debt instrument threshold percentage of conversion price   130.00%        
Number of trading days for conversion of Notes | TradingDay   20        
Number of consecutive trading days for conversion of Notes | TradingDay   30        
Debt convertible date   Sep. 01, 2025        
Number of business day period for conversion of Notes | d   5        
Number of consecutive trading day period in consideration for conversion of Notes | d   5        
Threshold percentage of stock price trigger in measurement period   98.00%        
Debt conversion rate in make whole   2.9525        
Debt conversion price per share in make whole | $ / shares   $ 109.07        
Debt default threshold principal amount percentage   100.00%        
2025 Notes | Redeem On or After December 5, 2023            
Debt Instrument [Line Items]            
Redemption period, start date   Dec. 05, 2023        
Debt instrument threshold percentage of conversion price   130.00%        
Number of trading days for conversion of Notes | TradingDay   20        
Number of consecutive trading days for conversion of Notes | TradingDay   30        
Redemption price percentage of principal amount redeemed   100.00%        
Sinking fund   $ 0        
v3.23.2
Debt and Bank Borrowings - Schedule of Notes (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Liability component:    
Less: unamortized debt issuance costs $ (20,218) $ (27,015)
Net carrying amount 1,839,828 1,773,082
2027 Notes    
Liability component:    
Principal 575,000 575,000
Less: unamortized debt issuance costs (10,188) (12,873)
Net carrying amount 564,812 562,127
2025 Notes    
Liability component:    
Principal 1,150,000 1,150,000
Less: unamortized debt issuance costs (10,030) (14,142)
Net carrying amount $ 1,139,970 $ 1,135,858
v3.23.2
Debt and Bank Borrowings - Credit Agreements - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Debt Instrument [Line Items]      
Amortization of debt discount and issuance costs, net of accretion of debt premium $ 6,964 $ 4,777 $ 27,531
Weighted-average remaining life 2 years 10 months 24 days    
2027 Notes      
Debt Instrument [Line Items]      
Effective interest rate 0.48%    
Capped call, initial strike price (dollars per share) $ 414.80    
Capped call, initial cap price (dollars per share) $ 544.00    
2025 Notes      
Debt Instrument [Line Items]      
Effective interest rate 0.36%    
Capped call, initial strike price (dollars per share) $ 160.88    
Capped call, initial cap price (dollars per share) $ 218.14    
2025 and 2027 Senior Notes Member      
Debt Instrument [Line Items]      
Amortization of debt discount and issuance costs, net of accretion of debt premium $ 6,800 $ 6,100  
Debt instrument, aggregate principal amount if converted 1,700,000    
Cost of capped call $ 125,800    
Cap calls cover subject to anti-dilution adjustments to common stock (shares) 8,500,000    
v3.23.2
Debt and Borrowings - Revolving Credit Facility- Additional Information (Details) - 2021 Revolving Credit Agreement - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2022
Jun. 30, 2023
Aug. 01, 2022
Debt Instrument [Line Items]      
Line of credit facility, maximum borrowing capacity     $ 225.0
Line of credit facility, amount borrowed   $ 135.0  
Line of credit facility, unused capacity, commitment fee percentage 0.50%    
Line of credit, outstanding amount threshold     $ 75.0
Benchmark adjustment rate     0.28%
Remaining weighted-average amortization period   10 months 24 days  
Effective interest rate   8.19%  
Utilization Period Two      
Debt Instrument [Line Items]      
Line of credit facility, minimum utilization     $ 135.0
Line of credit, minimum utilization percentage     60.00%
Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Debt instrument floor rate 0.25%    
Variable Rate Component One | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate 2.75%    
Variable Rate Component Two | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate 2.65%    
Variable Rate Component Three | Secured Overnight Financing Rate (SOFR)      
Debt Instrument [Line Items]      
Debt instrument basis spread on variable rate 2.65%    
v3.23.2
Stockholders' Equity - Equity Incentive Plans (Details) - shares
 12 Months Ended
Nov. 26, 2019
Jun. 30, 2023
2016 Equity Incentive Plan    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Equity-based awards granted (shares)   0
2019 Equity Incentive Plan    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Number of shares of common stock reserved for issuance 7,100,000  
Potential percentage of additional number of shares reserved for issuance each year 5.00%  
Equity Incentive Plans    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Number of common shares available for issuance   15,087,695
v3.23.2
Stockholders' Equity - Equity Awards Assumed in Acquisitions (Details)
 12 Months Ended
Jun. 30, 2023
shares
Divvy and Invoice2go Acquired Plans  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Equity-based awards granted (shares) 0
v3.23.2
Stockholders' Equity - Stock Options (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Equity [Abstract]      
Vest over requisite service period 4 years    
Option expiration period 10 years    
Weighted-average grant date fair value of options granted (dollars per share)   $ 207.07 $ 132.04
Total intrinsic value of options exercised $ 114.1 $ 640.0 $ 387.1
Fair value of stock options vested 163.8 $ 555.8 $ 485.7
Unamortized stock-based compensation expense $ 14.0    
Weighted-average period over which unrecognized compensation cost is expected to be recognized 1 year 6 months    
v3.23.2
Stockholders' Equity - Summary of Stock Option Activities (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Number of shares (in thousands)    
Beginning balance (in shares) 3,858  
Options exercised (in shares) (1,063)  
Options forfeited (in shares) (207)  
Ending balance (in shares) 2,588 3,858
Vested and expected to vest at June 30, 2023 (in shares) 2,560  
Vested and exercisable at June 30, 2023 (in shares) 2,367  
Weighted average exercise price per share    
Beginning balance (dollars per share) $ 18.28  
Options exercised (dollars per share) 13.06  
Options forfeited (dollars per share) 29.06  
Ending balance (dollars per share) 19.56 $ 18.28
Vested and expected to vest at June 30, 2023 (dollars per share) 19.32  
Vested and exercisable at June 30, 2023 (dollars per share) $ 15.62  
Weighted average remaining contractual term (in years)    
Remaining contractual term (in years) 5 years 10 months 24 days 6 years 11 months 19 days
Vested and expected to vest at June 30, 2023 (in years) 5 years 10 months 20 days  
Vested and exercisable at June 30, 2023 (in years) 5 years 9 months 14 days  
Aggregate intrinsic value $ 258,093 $ 361,053
Vested and expected to vest at June 30, 2023 255,787  
Vested and exercisable at June 30, 2023 $ 242,525  
v3.23.2
Stockholders' Equity - Summary of Fair Value of Options Granted Black-Scholes Option-Pricing Model Assumptions (Details)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (in years)     6 years 3 months
Expected volatility, minimum   30.00% 35.00%
Expected volatility, maximum   81.20% 85.10%
Risk-free interest rate, minimum   0.20% 0.38%
Risk-free interest rate, maximum   2.88% 1.03%
Expected dividend yield 0.00% 0.00% 0.00%
Minimum      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (in years)   2 years  
Maximum      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (in years)   7 years 18 days  
v3.23.2
Stockholders' Equity - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares
shares in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Number of Shares Outstanding      
Beginning balance (in shares) 3,279    
Granted (shares) 3,322    
Vested (shares) (1,640)    
Forfeited (shares) (777)    
Ending balance (in shares) 4,184 3,279  
Weighted average grant date fair value      
Beginning balance (dollars per share) $ 178.85    
Granted (dollars per share) 120.25 $ 202.79 $ 134.29
Vested (dollars per share) 164.38    
Forfeited (dollars per share) 165.37    
Ending balance (dollars per share) $ 140.50 $ 178.85  
v3.23.2
Stockholders' Equity - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Unamortized stock-based compensation expense $ 14.0    
Weighted-average period over which unrecognized compensation cost is expected to be recognized 1 year 6 months    
Restricted Stock Units (RSUs)      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Granted (dollars per share) $ 120.25 $ 202.79 $ 134.29
Fair value of shares vested $ 197.3 $ 118.9 $ 40.0
Unamortized stock-based compensation expense $ 412.1    
Weighted-average period over which unrecognized compensation cost is expected to be recognized 2 years 10 months 24 days    
Minimum | Restricted Stock Units (RSUs)      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting term 1 year    
Maximum | Restricted Stock Units (RSUs)      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting term 4 years    
v3.23.2
Stockholders' Equity - Market-based RSUs (Details)
$ / shares in Units, $ in Millions
 1 Months Ended 12 Months Ended
Dec. 31, 2021
Employee
$ / shares
shares
Jun. 30, 2023
USD ($)
Jun. 30, 2022
Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Risk-free interest rate, minimum     0.20% 0.38%
Risk-free interest rate, maximum     2.88% 1.03%
Expected term (in years)       6 years 3 months
Vest over requisite service period   4 years    
Weighted-average period over which unrecognized compensation cost is expected to be recognized   1 year 6 months    
Minimum        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Expected term (in years)     2 years  
Maximum        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Expected term (in years)     7 years 18 days  
Market-based RSUs        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Number of Employees Shares Granted | Employee 1      
Expected volatility 60.00%      
Risk-free interest rate, minimum 1.08%      
Risk-free interest rate, maximum 1.21%      
Granted (dollars per share) | $ / shares $ 182.15      
Expected to recognize stock based compensation expense | $   $ 2.2    
Weighted-average period over which unrecognized compensation cost is expected to be recognized   1 year 1 month 6 days    
Market-based RSUs | Minimum        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Expected term (in years) 1 year      
Vest over requisite service period 3 years      
Market-based RSUs | Maximum        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Expected term (in years) 3 years      
Vest over requisite service period 5 years      
Executive Employee | Market-based RSUs        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Granted (shares) | shares 50,000      
v3.23.2
Stockholder's Equity - Performance-based RSUs (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Jun. 30, 2023
USD ($)
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Vest over requisite service period 4 years
Weighted-average period over which unrecognized compensation cost is expected to be recognized 1 year 6 months
Performance-based awards  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Granted (shares) | shares 150,000
Vest over requisite service period 3 years
Granted (dollars per share) | $ / shares $ 133.48
Expected to recognize stock based compensation expense | $ $ 5.9
Weighted-average period over which unrecognized compensation cost is expected to be recognized 1 year 3 months 18 days
v3.23.2
Stockholders' Equity - Employee Stock Purchase Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Nov. 26, 2019
Jun. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Offering period   12 months
Unamortized stock-based compensation expense   $ 14.0
Weighted-average period over which unrecognized compensation cost is expected to be recognized   1 year 6 months
2019 Employee Stock Purchase Plan    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Number of shares of common stock reserved for issuance 1,400,000  
Potential percentage of additional number of shares reserved for issuance each year 1.00%  
Total number of shares issued 14,000,000  
Percentage of employee compensation, maximum 15.00%  
Fair value of option granted percentage 85.00%  
Unamortized stock-based compensation expense   $ 4.5
Weighted-average period over which unrecognized compensation cost is expected to be recognized   6 months
v3.23.2
Stockholders' Equity - Summary of Fair Value of ESPP Offerings (Details)
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (in years)     6 years 3 months
Expected volatility, minimum   30.00% 35.00%
Expected volatility, maximum   81.20% 85.10%
Risk-free interest rate, minimum   0.20% 0.38%
Risk-free interest rate, maximum   2.88% 1.03%
Expected dividend yield 0.00% 0.00% 0.00%
Minimum      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (in years)   2 years  
Maximum      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (in years)   7 years 18 days  
2019 Employee Stock Purchase Plan      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected volatility, minimum 81.80% 76.00% 81.00%
Expected volatility, maximum 82.50% 77.30% 88.40%
Risk-free interest rate, minimum 3.39% 0.06% 0.05%
Risk-free interest rate, maximum 4.89% 0.88% 0.13%
Expected dividend yield 0.00% 0.00% 0.00%
2019 Employee Stock Purchase Plan | Minimum      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (in years) 4 months 24 days 4 months 24 days 6 months
2019 Employee Stock Purchase Plan | Maximum      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (in years) 1 year 1 year 1 year
v3.23.2
Stockholders' Equity - Stock Based Compensation Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation cost $ 322,840 $ 201,562 $ 72,451
Stock options      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation cost 37,882 55,667 45,035
Restricted Stock Units (RSUs)      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation cost 251,456 134,222 23,225
Performance-based awards      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation cost 17,914 0 0
Market-based RSUs      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation cost 4,308 2,755 0
Employee stock purchase plan      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation cost $ 11,280 $ 8,918 $ 4,191
v3.23.2
Stockholders' Equity - Summary of Stock Based Compensation Cost from Stock Options, RSUs and ESPP (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Oct. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total amount charged to loss from operations   $ 313,703 $ 197,157 $ 71,987
Property and equipment (capitalized internal-use software)   9,137 4,405 464
Total stock-based compensation cost   322,840 201,562 72,451
Share-Based Payment Arrangement, Accelerated Cost $ 52,200      
Revenue - subscription and transaction fees | Subscription and transaction fees        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total amount charged to loss from operations   188 0 0
Cost of revenue - service costs        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total amount charged to loss from operations   9,111 5,144 2,938
Research and development        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total amount charged to loss from operations   93,364 54,907 16,091
Sales and marketing        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total amount charged to loss from operations   130,421 60,237 8,547
General and administrative        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total amount charged to loss from operations   $ 80,619 $ 76,869 $ 44,411
v3.23.2
Stockholder's Equity - Share Repurchase Program (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jan. 01, 2023
Equity [Abstract]    
Share repurchase program, authorized amount   $ 300,000
Stock repurchase program term 12 months  
Treasury stock, acquired (in shares) 1,077,445  
Treasury stock, retired (in shares) 1,077,445  
Treasury stock, value (in dollars) $ 87,600  
Remaining authorized repurchase amount $ 212,400  
v3.23.2
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Other Income, Nonoperating [Abstract]      
Interest expense $ (15,203) $ (9,419) $ (28,158)
Lower of cost or market adjustment on card receivables sold and held for sale (1,545) (11,460) (691)
Interest income 91,279 6,691 2,992
Other (1,675) 327 487
Total $ 72,856 $ (13,861) $ (25,370)
v3.23.2
Income Taxes - Components of Loss before (Benefit from) Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Income Tax Disclosure [Abstract]      
Domestic $ (199,452) $ (304,508) $ (139,337)
Foreign (23,465) (26,171) 0
Loss before provision for (benefit from) income taxes $ (222,917) $ (330,679) $ (139,337)
v3.23.2
Income Taxes - Components of (Benefit from) Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Current:      
Federal $ 572 $ (247) $ 0
State 1,583 0 0
Foreign 14 0 0
Total current 2,169 (247) 0
Deferred:      
Federal (995) (1,115) (27,529)
State (366) (2,956) (13,088)
Foreign 0 0 0
Total deferred (1,361) (4,071) (40,617)
Provision for (benefit from) income taxes $ 808 $ (4,318) $ (40,617)
v3.23.2
Income Taxes - Difference between Income Taxes Computed At Federal Statutory Rate and (Benefit from) Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Income Tax Disclosure [Abstract]      
Expected benefit at U.S. federal statutory rate $ (46,813) $ (69,443) $ (29,261)
State income taxes, net of federal benefit 8,087 13,509 (54)
Stock-based compensation (1) 4,253 (93,705) (70,262)
Research and development tax credits (19,974) (22,061) (8,846)
Change in valuation allowance related to acquisition (126) (2,831) (34,749)
Change in valuation allowance 48,321 174,477 94,244
Unrecognized tax benefit (390) (10,975) 6,766
Acquisition-related costs 0 553 1,484
Foreign rate differential 4,942 5,496 0
Other 2,508 662 61
Provision for (benefit from) income taxes $ 808 $ (4,318) $ (40,617)
v3.23.2
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Deferred tax assets:    
Accruals and reserves $ 12,537 $ 9,325
Capitalized research and development 75,694 0
Deferred revenue 1,084 1,794
Stock-based compensation 24,998 25,897
Net operating loss carryforwards 379,758 410,849
Research and development credits 62,299 46,013
Accrued rewards 1,855 2,867
Operating lease liabilities 21,616 24,203
Other 1,257 3,247
Total deferred tax assets before valuation allowance 581,098 524,195
Valuation allowance (479,449) (384,158)
Deferred tax assets 101,649 140,037
Deferred tax liabilities:    
Deferred contract costs (4,772) (3,745)
Property and equipment (13,078) (19,316)
Intangible assets (67,455) (99,483)
Operating right of use assets (17,155) (19,490)
Total deferred tax liabilities (102,460) (142,034)
Net deferred tax (liabilities) $ (811) $ (1,997)
v3.23.2
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2020
Income Taxes [Line Items]        
Change in valuation allowance $ 95,300 $ 276,300 $ 22,300  
Federal and state net operating loss carryforwards expiration year 2025      
Unrecognized tax benefits related to federal and California R&D credits $ 23,300 $ 16,724 $ 22,185 $ 5,787
Federal Tax        
Income Taxes [Line Items]        
Net operating loss carryforwards 1,400,000      
Research and development tax credit carryforwards 56,100      
State Tax        
Income Taxes [Line Items]        
Net operating loss carryforwards 1,100,000      
Research and development tax credit carryforwards 35,600      
Foreign Tax Authority        
Income Taxes [Line Items]        
Net operating loss carryforwards $ 83,400      
v3.23.2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at the beginning of the year $ 16,724 $ 22,185 $ 5,787
Add:      
Tax positions related to the current year 6,642 7,354 8,267
Increase from business combination 0 160 668
Tax positions related to the prior year 226 0 7,463
Less:      
Tax positions related to the prior year 0 (12,761) 0
Statute of limitations lapse (292) (214) 0
Balance at the end of the year $ 23,300 $ 16,724 $ 22,185
v3.23.2
Leases - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Leases [Abstract]      
Weighted average remaining term 7 years 3 months 18 days    
Weighted average discount rate 5.10%    
Lease expense paid during period $ 14,900 $ 13,800 $ 2,100
Right-of-use assets obtained in exchange for new operating lease liabilities 2,000 5,300 31,600
Lease expense $ 15,746 $ 15,180 $ 10,023
v3.23.2
Leases - Components of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Lease, Cost [Abstract]      
Operating lease expense $ 14,081 $ 12,983 $ 7,826
Variable lease expense, net of credit 2,251 2,909 2,252
Sublease income (586) (712) (55)
Total lease cost $ 15,746 $ 15,180 $ 10,023
v3.23.2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details)
$ in Thousands
Jun. 30, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2024 $ 14,649
2025 13,699
2026 13,292
2027 13,226
2028 13,590
Thereafter 35,919
Gross lease payments 104,375
Less - present value adjustments (17,737)
Total operating lease liabilities, net $ 86,638
v3.23.2
Commitments and Contingencies - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]    
Operating lease liability, current $ 14,100 $ 12,100
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other accruals and current liabilities Other accruals and current liabilities
Operating lease liability, noncurrent $ 72,477 $ 82,728
Multi-year agreements expiration year 2029  
Authorized transactions but not cleared $ 68,600  
v3.23.2
Commitments and Contingencies - Schedule of Future Payments Under Other Agreements (Details)
$ in Thousands
Jun. 30, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2024 $ 14,612
2025 12,582
2026 6,004
2027 5,241
2028 5,491
Thereafter 29,373
Total $ 73,303
v3.23.2
Net Loss Per Share Attributable To Common Stockholders - Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Numerator:      
Net loss attributable to common stockholders $ (223,725) $ (326,361) $ (98,720)
Denominator:      
Weighted average number of shares outstanding, basic (shares) 105,976 101,753 82,813
Weighted average number of shares outstanding, diluted (shares) 105,976 101,753 82,813
Net loss per share attributable to common stockholders:      
Earnings per share, basic (dollars per share) $ (2.11) $ (3.21) $ (1.19)
Earnings per share, diluted (dollars per share) $ (2.11) $ (3.21) $ (1.19)
v3.23.2
Net Loss Per Share Attributable To Common Stockholders - Summary of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share Calculation (Details) - shares
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Antidilutive securities, potentially dilutive securities excluded from calculation of diluted net loss per share 6,772,000 7,137,000 7,728,000
Stock options      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Antidilutive securities, potentially dilutive securities excluded from calculation of diluted net loss per share 2,588,000 3,858,000 6,552,000
Restricted Stock Units (RSUs)      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Antidilutive securities, potentially dilutive securities excluded from calculation of diluted net loss per share 4,184,000 3,279,000 1,176,000
v3.23.2
Net Loss Per Share Attributable To Common Stockholders - Additional Information (Details) - shares
 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Number of shares not considered in calculation of diluted net loss per share 6,772,000 7,137,000 7,728,000
2025 Notes | Maximum      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Number of shares subject to adjustment 12,700,000    
Shares Underlying Conversion Option in 2025 Notes      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Number of shares not considered in calculation of diluted net loss per share 8,500,000