BILL HOLDINGS, INC., 10-K filed on 8/23/2024
Annual Report
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Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
Jun. 30, 2024
Aug. 16, 2024
Dec. 31, 2023
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jun. 30, 2024    
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   106,685,275  
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant’s definitive proxy statement for its 2024 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 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Public Float     $ 8.3
Insider Trading Policies and Procedures Adopted true    
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Audit Information
 12 Months Ended
Jun. 30, 2024
Auditor Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location San Jose, California
Auditor Firm ID 238
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Current assets:    
Cash and cash equivalents $ 985,941 $ 1,617,151
Short-term investments 601,535 1,043,110
Accounts receivable, net 28,049 28,233
Acquired card receivables, net of allowances of $20,883 and $15,498 as of June 30, 2024 and 2023, respectively 697,216 458,650
Prepaid expenses and other current assets 297,169 170,111
Funds held for customers 3,704,907 3,355,909
Total current assets 6,314,817 6,673,164
Non-current assets:    
Operating lease right-of-use assets, net 59,414 68,988
Property and equipment, net 88,034 81,564
Intangible assets, net 281,471 361,427
Goodwill 2,396,509 2,396,509
Other assets 38,568 54,366
Total assets 9,178,813 9,636,018
Current liabilities:    
Accounts payable 7,447 8,519
Accrued compensation and benefits 34,158 32,901
Deferred revenue 17,006 26,328
Other accruals and current liabilities 299,506 194,733
Borrowings from credit facilities, net 0 135,046
Customer fund deposits 3,704,907 3,355,909
Total current liabilities 4,063,024 3,753,436
Non-current liabilities:    
Deferred revenue 4,167 410
Operating lease liabilities 62,847 72,477
Borrowings from credit facilities, net 180,009 0
Convertible senior notes, net 733,991 1,704,782
Other long-term liabilities 574 18,944
Total liabilities 5,044,612 5,550,049
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; 106,646 and 106,550 shares issued and outstanding at June 30, 2024 and 2023, respectively 2 2
Additional paid-in capital 5,233,037 4,946,623
Accumulated other comprehensive loss (1,890) (4,488)
Accumulated deficit (1,096,948) (856,168)
Total stockholders' equity 4,134,201 4,085,969
Total liabilities and stockholders' equity $ 9,178,813 $ 9,636,018
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Statement of Financial Position [Abstract]    
Acquired card receivables, net of allowances $ 20,883 $ 15,498
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) 106,646,000 106,550,000
Common stock shares outstanding (shares) 106,646,000 106,550,000
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Revenue      
Total revenue $ 1,290,172 $ 1,058,468 $ 641,959
Cost of revenue      
Service costs 189,894 151,010 105,496
Depreciation and amortization [1] 44,722 42,967 39,508
Total cost of revenue 234,616 193,977 145,004
Gross profit 1,055,556 864,491 496,955
Operating expenses      
Research and development 336,754 314,632 219,818
Sales and marketing 478,540 515,858 307,151
General and administrative 277,662 249,054 221,030
Provision for expected credit losses 60,105 32,224 20,144
Depreciation and amortization [1] 49,072 48,496 45,630
Restructuring 27,587 0 0
Total operating expenses 1,229,720 1,160,264 813,773
Operating loss (174,164) (295,773) (316,818)
Other income (expense), net 147,845 72,856 (13,861)
Loss before provision for (benefit from) income taxes (26,319) (222,917) (330,679)
Provision for (benefit from) income taxes 2,559 808 (4,318)
Net loss $ (28,878) $ (223,725) $ (326,361)
Net loss per share attributable to common stockholders:      
Basic (dollars per share) $ (0.27) $ (2.11) $ (3.21)
Diluted (dollars per share) $ (0.27) $ (2.11) $ (3.21)
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders:      
Basic (shares) 106,102 105,976 101,753
Diluted (shares) 106,102 105,976 101,753
Subscription and transaction fees      
Revenue      
Total revenue $ 1,122,733 $ 944,710 $ 633,365
Interest on funds held for customers      
Revenue      
Total revenue $ 167,439 $ 113,758 $ 8,594
[1] Depreciation and amortization do not include amortization of capitalized internal-use software costs paid in cash.
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]      
Net loss $ (28,878) $ (223,725) $ (326,361)
Other comprehensive income (loss):      
Net unrealized gain (loss) on investments in available-for-sale securities 2,598 5,729 (10,117)
Comprehensive loss $ (26,280) $ (217,996) $ (336,478)
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
Total
Cumulative effect of adjustments
Common stock
Additional paid-in capital
Additional paid-in capital
Cumulative effect of adjustments
Accumulated other comprehensive loss
Accumulated deficit
Accumulated deficit
Cumulative effect of adjustments
Beginning balance, shares at Jun. 30, 2021     94,504,000          
Beginning balance at Jun. 30, 2021 $ 2,529,590,000 $ (216,066,000) $ 2,000 $ 2,777,155,000 $ (245,066,000) $ (100,000) $ (247,467,000) $ 29,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs (in shares)     5,074,000          
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs 1,341,122,000     1,341,122,000        
Issuance of common stock as consideration for an acquisition, net of issuance costs (in shares)     1,788,000          
Issuance of common stock as consideration for the acquisition, net of issuance costs 488,263,000     488,263,000        
Fair value of replacement awards 26,710,000     26,710,000        
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)     3,283,000          
Issuance of common stock upon exercise of stock options and release of restricted stock units 34,024,000     34,024,000        
Issuance of common stock under the employee stock purchase plan (in shares)     82,000          
Issuance of common stock under the employee stock purchase plan 12,849,000     12,849,000        
Purchase of capped calls (37,893,000)     (37,893,000)        
Stock-based compensation 201,573,000     201,573,000        
Other comprehensive income (loss) (10,117,000)         (10,117,000)    
Net loss (326,361,000)           (326,361,000)  
Ending balance, shares at Jun. 30, 2022     104,731,000          
Ending balance at Jun. 30, 2022 4,043,694,000   $ 2,000 4,598,737,000   (10,217,000) (544,828,000)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock as consideration for an acquisition, net of issuance costs (in shares)     40,000          
Issuance of common stock as consideration for the acquisition, net of issuance costs 3,375,000     3,375,000        
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)     2,703,000          
Issuance of common stock upon exercise of stock options and release of restricted stock units 13,872,000     13,872,000        
Issuance of common stock under the employee stock purchase plan (in shares)     182,000          
Issuance of common stock under the employee stock purchase plan $ 17,879,000     17,879,000        
Repurchase and retirement of common stock (in shares) (1,077,445)   (1,106,000)          
Repurchase and retirement of common stock $ (87,615,000)           (87,615,000)  
Stock-based compensation 312,760,000     312,760,000        
Other comprehensive income (loss) 5,729,000         5,729,000    
Net loss $ (223,725,000)           (223,725,000)  
Ending balance, shares at Jun. 30, 2023 106,550,000   106,550,000          
Ending balance at Jun. 30, 2023 $ 4,085,969,000   $ 2,000 4,946,623,000   (4,488,000) (856,168,000)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)     2,754,000          
Issuance of common stock upon exercise of stock options and release of restricted stock units 13,002,000     13,002,000        
Issuance of common stock under the employee stock purchase plan (in shares)     225,000          
Issuance of common stock under the employee stock purchase plan $ 16,495,000     16,495,000        
Repurchase and retirement of common stock (in shares) (2,882,634)   (2,883,000)          
Repurchase and retirement of common stock $ (211,902,000)           (211,902,000)  
Unwind of capped calls 9,657,000     9,657,000        
Stock-based compensation 247,260,000     247,260,000        
Other comprehensive income (loss) 2,598,000         2,598,000    
Net loss $ (28,878,000)           (28,878,000)  
Ending balance, shares at Jun. 30, 2024 106,646,000   106,646,000          
Ending balance at Jun. 30, 2024 $ 4,134,201,000   $ 2,000 $ 5,233,037,000   $ (1,890,000) $ (1,096,948,000)  
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities:      
Net loss $ (28,878) $ (223,725) $ (326,361)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Stock-based compensation 248,375 313,567 197,157
Amortization of intangible assets 79,956 80,205 75,977
Depreciation of property and equipment 13,838 11,258 9,161
Amortization of capitalized internal-use software costs 9,369 4,215 2,366
Amortization of debt issuance costs 6,238 6,964 4,777
Amortization of premium (accretion of discount) on investments in marketable debt securities (55,062) (37,194) 11,386
Accretion of discount on loans held for investment (9,209) (127) 0
Provision for expected credit losses on acquired card receivables and other financial assets 60,105 32,189 19,879
Gain on debt extinguishment (46,654) 0 0
Non-cash operating lease expense 8,642 9,493 8,601
Deferred income taxes (361) (1,361) (4,075)
Other 1,756 1,254 (726)
Changes in assets and liabilities:      
Accounts receivable 69 (4,482) (3,032)
Prepaid expenses and other current assets (6,825) (16,844) (12,970)
Other assets 7,528 320 5,105
Accounts payable (1,125) (1,686) (3,771)
Other accruals and current liabilities 20,992 34,465 7,460
Operating lease liabilities (9,839) (10,303) (7,877)
Other long-term liabilities (14,580) (3,097) (6,749)
Deferred revenue (5,564) (7,343) 5,599
Net cash provided by (used in) operating activities 278,771 187,768 (18,093)
Cash flows from investing activities:      
Cash paid for acquisition, net of acquired cash and cash equivalents 0 (28,902) (144,349)
Purchases of corporate and customer fund short-term investments (2,682,659) (2,743,763) (2,801,697)
Proceeds from maturities of corporate and customer fund short-term investments 2,512,107 3,283,961 1,902,474
Proceeds from sale of corporate and customer fund short-term investments 1,539 11,607 55,744
Purchases of loans held for investment (359,654) (5,878) 0
Principal repayments of loans held for investment 326,172 4,472 0
Acquired card receivables, net (185,486) (234,256) (129,178)
Purchases of property and equipment (976) (7,589) (5,377)
Capitalization of internal-use software costs (19,917) (23,614) (10,259)
Proceeds from beneficial interest 0 2,080 6,699
Other (500) 1,167 (1,359)
Net cash provided by (used in) investing activities (409,374) 259,285 (1,127,302)
Cash flows from financing activities:      
Proceeds from issuance of common stock upon public offering, net of underwriting discounts and other offering costs 0 0 1,341,122
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs 0 0 560,075
Purchase of capped calls 0 0 (37,893)
Payments for repurchase of convertible senior notes (933,187) 0 0
Proceeds from unwind of capped calls 11,442 0 0
Customer fund deposits liability and other 353,964 204,390 941,003
Repurchase of common stock (211,902) (87,615) 0
Prepaid card deposits (17,901) 26,584 29,886
Proceeds from line of credit borrowings 45,000 60,000 37,500
Payments on line of credit and bank borrowings 0 0 (40,000)
Proceeds from exercise of stock options 8,114 13,872 34,024
Tax withholdings related to net share settlements of equity awards (3,862) 0 0
Proceeds from issuance of common stock under the employee stock purchase plan 16,495 17,879 12,849
Contingent consideration payout (10,762) 0 0
Net cash provided by (used in) financing activities (742,599) 235,110 2,878,566
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (240) (38) (149)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents (873,442) 682,125 1,733,022
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year 4,224,840 3,542,715 1,809,693
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year 3,351,398 4,224,840 3,542,715
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 985,941 1,617,151 1,596,542
Restricted cash included in other current assets 174,101 87,322 85,252
Restricted cash included in other assets 5,297 13,810 6,724
Restricted cash and restricted cash equivalents included in funds held for customers 2,186,059 2,506,557 1,854,197
Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year 3,351,398 4,224,840 3,542,715
Supplemental disclosure of cash flow information:      
Cash paid for interest during the period 12,611 7,440 4,867
Cash paid for income taxes during the period 5,628 1,266 0
Noncash investing and financing activities:      
Payable on purchases of acquired card receivables 105,406 0 0
Fair value of shares issued as consideration for acquisition 0 3,375 488,494
Fair value of stock-based awards assumed in acquisition 0 0 21,724
Fair value of earn-out consideration for acquisition $ 10,762 $ 0
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The Company and Its Significant Accounting Policies
 12 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
The Company and Its Significant Accounting Policies THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES
Bill.com, Inc. was incorporated in the State of Delaware in April 2006. Bill.com Holdings, Inc. was incorporated in the State of Delaware in August 2018 (and renamed BILL Holdings, Inc. in February 2023). In November 2018, Bill.com, Inc. consummated a reorganization with BILL Holdings, Inc., resulting in the latter becoming the parent entity of Bill.com, Inc. BILL Holdings, Inc. and its wholly-owned subsidiaries are collectively referred to as the “Company”.
The Company is a provider of software-as-a-service, cloud-based payments, and spend and expense management products, which allow users to automate accounts payable and accounts receivable transactions, enable businesses to easily connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency.
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.
Reclassification
Certain accounts in the prior period consolidated statements of operation and consolidated statements of cash flows were reclassified to conform with the current year presentation.
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. was zero and not material as of June 30, 2024 and 2023, respectively. Total revenue from external customers outside of the U.S. was less than 3% of consolidated total revenue during each of the years ended June 30, 2024, 2023, and 2022.
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; the estimate of expected credit losses on accounts receivable, acquired card receivables, and loans held for investment; accrual for rewards; benefit periods used to amortize deferred costs; reserve for losses on funds held for customers; and valuation of deferred tax assets. The Company evaluates these estimates and assumptions and adjusts them accordingly. Actual results could differ from those estimates, and such differences may be material to the 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, which include money market funds and marketable debt securities with maturities of three months or less, as well as marketable debt securities with maturities ranging from more than three months up to thirty-seven months at the time of purchase based on the effective maturity date. 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.
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, including those with maturities beyond 12 months, and therefore classifies these securities as current assets in the accompanying consolidated balance sheets. Unrealized gains or losses are included in accumulated other comprehensive loss on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss. If the estimated fair value of an available-for-sale debt security is below its amortized cost basis, then the Company evaluates for impairment. The Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the debt security’s amortized cost basis is written down to fair value through other income (expense), net in the consolidated statements of operations. If neither of these criteria are met, the Company evaluates whether unrealized losses have resulted from a credit loss or other factors. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. An impairment relating to credit losses is recorded through an allowance for credit losses reported in other income (expense), net in the consolidated statements of operations. The allowance is limited by the amount that the fair value of the debt security is below its amortized cost basis.
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, acquired card receivables and loans held for investment (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. 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. As of June 30, 2024 and 2023, the allowance for expected credit losses related to accounts receivable, acquired card receivables and loans held for investment totaled approximately $25.8 million and $15.9 million, respectively. These amounts do not include the immaterial allowance for expected credit losses on the 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, 2024, 2023, and 2022.
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 income (expense), 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 expected credit losses. Unbilled revenue is recorded based on amounts that the Company expects to invoice to customers in the subsequent period. The allowance for expected 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 expected 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 uncollectible are charged against the allowance for expected credit losses when identified. For all periods presented, the allowance for expected credit losses related to accounts receivable and unbilled revenue was not material.
Loans Held for Investment
Loans held for investment represent funds advanced under either a term loan or line of credit agreement, through a partnership with a third-party bank (the Originating Bank Partner) in connection with the Company's invoice financing product, with each invoice financed having a repayment term of 12 months. The Company purchases loans or lines of credit draws from the Originating Bank Partner pursuant to the terms outlined in the loan sale agreement between the Company and the Originating Bank Partner. The undrawn lines of credit are unconditionally cancellable. Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as held for investment and are initially recognized at their purchase price and subsequently reported at amortized cost. The loans held for investment are recorded net of the allowance for expected credit losses.
The Company accretes discount and interest income using the effective interest method over the life of the loan. Accretion of discount and interest income on these loans is included in subscription and transaction fees revenue in the accompanying consolidated statements of operations.
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.
Acquired Card Receivables
The portfolio of acquired card receivables consists of 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 expected credit losses and represent a revolving line of credit. The undrawn lines of credit are unconditionally cancellable. 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 a 100% participation interest in 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 at the Issuing Banks and generally payment for the card receivables is made on the day the transaction clears at 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 expected credit losses reflects the Company’s estimate of uncollectible balances resulting from credit losses and is based on the determination of the amount of expected credit losses inherent in the acquired card receivables 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 receivables 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 charged-off loans based on historical recovery experience. Additionally, management evaluates whether to include qualitative reserves to cover credit losses that are expected but may not be adequately represented by the quantitative methodology 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 charged-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, 2024 and 2023, the allowance for expected credit losses on acquired card receivables shown on the consolidated balance sheets totaled $20.9 million and $15.5 million, respectively. These amounts do not include the immaterial allowance for expected credit losses on card receivables that have been authorized but not cleared at the end of the periods (see Note 15).
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 $67.7 million and $55.4 million as of June 30, 2024 and 2023, respectively, is included in other accruals and current liabilities in the accompanying consolidated balance sheets. The rewards expense, which was $219.8 million, $173.9 million, and $95.2 million, during the years ended June 30, 2024, 2023, and 2022, 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. 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 facilitates the extension of credit to spending businesses through the BILL Spend and Expense product in the form of BILL Divvy Corporate Cards. The spending businesses utilize the credit on BILL Divvy Corporate Cards as a means of payment for goods and services provided by their suppliers. Virtual card payments and BILL Divvy Corporate 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 BILL Divvy Corporate 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 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, for the Company’s customer success and payment operations teams, 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), outsourced support services for the Company's customer success team, direct and amortized costs for implementing and integrating the Company’s cloud-based platform into the customers’ systems, and cloud payments infrastructure 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. Awards that are classified as liabilities are remeasured at fair value at the end of each reporting period.
The Company recognizes compensation 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. The Company recognizes compensation for performance-based awards over the vesting period if it is probable that the performance condition will be achieved. The Company accounts for forfeitures as they occur.
Advertising
The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses during the years ended June 30, 2024, 2023, and 2022 were $43.6 million, $39.0 million, and $29.4 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.
Restructuring
The Company records a liability for involuntary employee termination benefits when management has committed to a plan that establishes the terms of the arrangement and that plan has been communicated to employees. Costs to terminate a contract before the end of the term are recognized on the termination date, and costs that will continue to be incurred in a contract for the remaining term without economic benefit are recognized as of the cease-use date.
New Accounting Pronouncements and Disclosure Rules Not Yet Adopted
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Reportable Segments (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses, including public entities with a single operating or reportable segment. The updated standard is effective for the Company's annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026. Early adoption is permitted. This ASU will result in the required additional disclosures being included in the consolidated financial statements retrospectively, to all periods presented, once adopted.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The updated standard will be effective for annual periods beginning in fiscal 2026. This ASU will result in the required additional disclosures being included in the consolidated financial statements, once adopted.
In March 2024, the SEC adopted final rules related to climate-related disclosures in SEC Release No. 33-11275: The Enhancement and Standardization of Climate-Related Disclosures for Investors. In April 2024, the SEC issued an order to stay the effectiveness of the rules pending the completion of judicial review of multiple petitions challenging the rules. To the extent the rules become effective, they will require registrants to disclose certain climate-related information in registration statements and annual reports. The disclosure requirements, as initially adopted, would apply for annual periods beginning in fiscal 2026. The Company is currently evaluating the final rules to determine their impact on the Company's Annual Reports on Form 10-K.
v3.24.2.u1
Revenue
 12 Months Ended
Jun. 30, 2024
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,
 202420232022
SMBs, accounting firms, spending businesses and other$1,098,644 $901,602 $603,171 
Financial institutions24,089 43,108 30,194 
Total subscription and transaction fees1,122,733 944,710 633,365 
Interest on funds held for customers167,439 113,758 8,594 
Total revenue$1,290,172 $1,058,468 $641,959 
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, 2024, the Company recognized approximately $22.5 million of revenue that was included in the deferred revenue balance as of June 30, 2023.
Remaining performance obligations
The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized as revenue. As of June 30, 2024, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $86.8 million. Of the total remaining performance obligations, the Company expects to recognize approximately 35% over the next year, 19% between one to two years and 46% over the next three to five years thereafter. The Company determines remaining performance obligations at a point in time based on contracts with customers. The Company evaluates its customer relationships on an ongoing basis, and may selectively renegotiate certain terms of its agreements with financial institutions, accounting firms and SMBs. There were no subsequent events that would materially impact the amount of the remaining performance obligations as of June 30, 2024. However, 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 $16.7 million and $14.0 million as of June 30, 2024 and 2023, respectively.
Deferred costs
Deferred costs consisted of the following as of the dates presented (in thousands):
 June 30,
 20242023
Deferred sales commissions:
Current$8,142 $6,523 
Non-current15,113 12,317 
Total deferred sales commissions$23,255 $18,840 
Deferred service costs:
Current$430 $904 
Non-current1,930 2,221 
Total deferred service costs$2,360 $3,125 
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 $7.9 million, $6.6 million, and $5.2 million during the years ended June 30, 2024, 2023, and 2022, respectively. The amortization of deferred service costs, which is included in service costs in the accompanying consolidated statements of operations, was $2.0 million, $2.5 million, and $1.6 million during the years ended June 30, 2024, 2023, and 2022, respectively.
v3.24.2.u1
Business Combination
 12 Months Ended
Jun. 30, 2024
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.
v3.24.2.u1
Fair Value Measurement
 12 Months Ended
Jun. 30, 2024
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, 2024
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$522,618 $— $— $522,618 
522,618 — — 522,618 
Short-term investments:
Corporate bonds— 298,202 — 298,202 
U.S. treasury securities— 180,983 — 180,983 
Asset-backed securities— 59,363 — 59,363 
Certificates of deposit— 38,370 — 38,370 
U.S. agency securities
— 24,617 — 24,617 
— 601,535 — 601,535 
Funds held for customers:
Restricted cash equivalents
Money market funds1,319,609 — — 1,319,609 
Corporate bonds— 89,082 — 89,082 
1,319,609 89,082 — 1,408,691 
Short-term investments
Corporate bonds— 937,198 — 937,198 
U.S. treasury securities— 342,041 — 342,041 
Certificates of deposit— 119,616 — 119,616 
Asset-backed securities— 116,475 — 116,475 
— 1,515,330 — 1,515,330 
Total assets measured at fair value$1,842,227 $2,205,947 $— $4,048,174 
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 $— $3,827,339 
Liabilities
Contingent consideration(1)
— — (12,035)(12,035)
Total liabilities measured at fair value$— $— $(12,035)$(12,035)
(1) The Company used the probability-weighted discounted cash flow method to estimate the contingent consideration. The significant inputs used in the fair value measurement of the contingent consideration are the probability of payout and discount rate. As these inputs are not based on observable market data, the liability represents a Level 3 measurement within the fair value hierarchy.
There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented.
The fair values of the Company’s Level 1 instruments were derived from quoted market prices and active markets for these specific instruments.
The valuation techniques used to measure the fair values of Level 2 instruments were derived from non-binding market consensus prices that were corroborated with observable market data, quoted market prices for similar instruments, or pricing models.
The Company had $575.0 million and $167.3 million 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, 2024. 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 $489.1 million and $154.9 million, respectively, as of June 30, 2024. 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.
The Company's financial instruments that are not measured and recorded at fair value, including cash, restricted cash, acquired cards receivables, loans held for investment, interest receivable, incentive receivables and borrowings from revolving credit facility, are carried at amortized cost, which approximates their fair value. If these financial instruments were measured at fair value in the financial statements, cash would be classified as Level 1; restricted cash, interest receivables, incentive receivables and borrowings from revolving credit facility would be classified as Level 2 and the acquired cards receivables and loans held for investment would be classified as Level 3 in the fair value hierarchy.
v3.24.2.u1
Short-Term Investments And Funds Held For Customers
 12 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Short-Term Investments And Funds Held For Customers SHORT-TERM INVESTMENTS AND FUNDS HELD FOR CUSTOMERS
The following table summarizes the assets underlying short-term investments and funds held for customers as of the dates presented (in thousands):
June 30,
2024		June 30,
2023
Short-term investments:
Available-for-sale debt securities$601,535 $1,043,110 
Total short-term investments601,535 1,043,110 
Funds held for customers:
Restricted cash779,838 1,793,088 
Restricted cash equivalents1,408,691 713,469 
Funds receivable11,870 12,822 
Available-for-sale debt securities1,515,330 846,404 
Total funds held for customers3,715,729 3,365,783 
Less - income earned by the Company included in other current assets(10,822)(9,874)
Total funds held for customers, net of income earned by the Company$3,704,907 $3,355,909 
Income earned by the Company that is included in other current assets represents interest income, accretion of discount (offset by amortization of premium), and net unrealized gains on customer funds that were invested in money market funds and short-term marketable debt securities. The Company contractually earns income from these investments, which are expected to be transferred into the Company’s corporate deposit account upon sale or settlement of the associated investment, and are not considered funds held for customers.
The following table summarizes the estimated fair value of available-for-sale debt securities included within funds held for customers and short-term investments as of the dates presented (in thousands):
June 30, 2024
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Short-term investments:
Corporate bonds$298,628 $140 $(566)$298,202 
U.S. treasury securities181,225 — (242)180,983 
Asset-backed securities59,340 68 (45)59,363 
Certificates of deposit38,370 — — 38,370 
U.S. agency securities24,669 — (52)24,617 
Total short-term investments$602,232 $208 $(905)$601,535 
Funds held for customers:
Corporate bonds$937,989 $23 $(814)$937,198 
Certificates of deposit119,615 1 — 119,616 
Asset-backed securities116,542 11 (78)116,475 
U.S. treasury securities342,202 1 (162)342,041 
Total funds held for customers$1,516,348 $36 $(1,054)$1,515,330 
June 30, 2023
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair value
Short-term investments:
Corporate bonds$481,658 $207 $(2,382)$479,483 
U.S. treasury securities409,586 42 (1,260)408,368 
U.S. agency securities58,166 — (199)57,967 
Asset-backed securities51,321 8 (136)51,193 
Certificates of deposit46,099 — — 46,099 
Total short-term investments$1,046,830 $257 $(3,977)$1,043,110 
Funds held for customers:
Corporate bonds$433,936 $18 $(34)$433,920 
Certificates of 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 funds held for customers$847,012 $25 $(633)$846,404 
The amortized cost and fair value amounts for short-term investments include accrued interest receivables of $4.9 million and $4.3 million at June 30, 2024 and 2023, respectively. The amortized cost and fair value amounts for funds held for customers include accrued interest receivable of $6.8 million and $6.9 million as of June 30, 2024 and 2023, respectively.
The following table summarizes fair value of the Company's available-for-sale debt securities included within funds held for customers and short-term investments by remaining contractual maturity as of the dates presented (in thousands):
June 30,
2024		June 30,
2023
Due within 1 year
$1,699,009 $1,543,379 
Due in 1 year through 5 years
409,309 346,135 
Due in 5 year through 10 years
8,547 — 
Total
$2,116,865 $1,889,514 
As of June 30, 2024, approximately 340 out of approximately 580 investments in available-for-sale debt securities were in an unrealized loss position. The following table shows gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands):
June 30, 2024
Less than 12 months12 months or longerTotal
Fair valueUnrealized
losses		Fair valueUnrealized
losses		Fair valueUnrealized
losses
Short-term investments:
Corporate bonds$130,469 $(333)$60,576 $(232)$191,045 $(565)
U.S. treasury securities152,004 (156)28,979 (86)180,983 (242)
Asset-backed securities24,149 (39)2,155 (7)26,304 (46)
U.S. agency securities24,617 (52)— — 24,617 (52)
Total short-term investments$331,239 $(580)$91,710 $(325)$422,949 $(905)
Funds held for customers:
Corporate bonds$506,540 $(814)$— $— $506,540 $(814)
Asset-backed securities68,629 (76)5,546 (2)74,175 (78)
U.S. treasury securities327,340 (162)— — 327,340 (162)
Total funds held for customers$902,509 $(1,052)$5,546 $(2)$908,055 $(1,054)
June 30, 2023
Less than 12 months12 months or longerTotal
Fair valueUnrealized
losses		Fair valueUnrealized
losses		Fair valueUnrealized
losses
Short-term investments:
Corporate bonds$213,373 $(1,421)$83,189 $(961)$296,562 $(2,382)
U.S. treasury securities199,440 (976)14,286 (284)213,726 (1,260)
Asset-backed securities35,719 (103)2,707 (33)38,426 (136)
U.S. agency securities57,967 (199)— — 57,967 (199)
Total short-term investments$506,499 $(2,699)$100,182 $(1,278)$606,681 $(3,977)
Funds held for customers:
Corporate bonds$34,530 $(34)$— $— $34,530 $(34)
Asset-backed securities59,128 (258)11,533 (74)70,661 (332)
U.S. agency securities22,494 (31)— — 22,494 (31)
U.S. treasury securities74,888 (236)— — 74,888 (236)
Total funds held for customers$191,040 $(559)$11,533 $(74)$202,573 $(633)
Unrealized losses have not been recognized into income as the Company neither intends to sell, nor anticipates that it is more likely than not that the Company will be required to sell, the securities before recovery
of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. There have been no significant realized gains or losses on the short-term investments and funds held for customers during each of the years ended June 30, 2024, 2023, and 2022.
v3.24.2.u1
Acquired Card Receivables
 12 Months Ended
Jun. 30, 2024
Acquired Card Receivables [Abstract]  
Acquired Card Receivables ACQUIRED CARD RECEIVABLES
As of June 30, 2024, approximately $189.7 million of the acquired card receivables 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, 2024 and 2023.
The acquired card receivables balances do not include purchases of participation interest in card receivables from the Issuing Banks that have not cleared at the end of the reporting period. Purchases of participation interest in card receivables that have not cleared as of June 30, 2024 totaled $27.2 million. The Company recognized an immaterial amount of expected credit losses on the card receivables that have not cleared yet as of each of June 30, 2024 and 2023 (see Note 15).
Credit Quality Information
The Company regularly reviews collection experience, delinquencies, and net charge-offs in determining allowance for expected 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,
20242023
Current and less than 30 days past due$706,026 $463,704 
30 ~ 59 days past due4,277 2,507 
60 ~ 89 days past due3,393 4,544 
90 ~ 119 days past due4,093 3,196 
Over 120 days past due310 197 
Total$718,099 $474,148 
Allowance for Expected Credit Losses
Below is a summary of the changes in allowance for expected credit losses (in thousands):
June 30,
20242023
Balance, beginning
$15,498 $5,414 
Initial allowance for expected credit losses on purchased card receivables with credit deterioration
— 10 
Provision for expected credit losses52,327 32,015 
Charge-off amounts(51,805)(24,120)
Recoveries collected4,863 2,179 
Balance, ending
$20,883 $15,498 
Purchases of acquired card receivables from the Issuing Banks that were held for investment during the years ended June 30, 2024 and 2023 were $17.6 billion and $13.2 billion, respectively. The provision for expected credit losses related to acquired card receivables and charged-off amounts increased during the year
ended June 30, 2024 due to portfolio growth and an increase in delinquencies during fiscal 2024 on accounts, which were subsequently charged off prior to June 30, 2024.
v3.24.2.u1
Loans Held For Investment
 12 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Loans Held For Investment LOANS HELD FOR INVESTMENT
Loans held for investment are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets and consisted of the following as of the dates presented (in thousands):
June 30,
20242023
Unpaid principal balance$44,491 $1,579 
Less: Discount at loan purchase, net of amortization(1,120)(47)
Less: Allowance for expected credit losses(4,700)— 
Loans held for investment, net$38,671 $1,532 
Credit Quality Information
The Company conducts an eligibility assessment prior to loan origination by the Originating Bank Partner. This process is performed at the invoice level and involves evaluating the invoice repayment likelihood by the respective network members associated with each invoice. Subsequently, the credit quality of these loans is monitored based on the delinquency trends or past due status of the loans held for investment, which are considered the credit quality indicators. Loans held for investment are considered past due if payment is not received within the terms set by the loan or line of credit agreement. The outstanding balance of loans held for investment considered past due was not material as of each of June 30, 2024 and 2023.
All of the outstanding balance of loans held for investment as of June 30, 2024 was originated during the year ended June 30, 2024.
v3.24.2.u1
Property and Equipment
 12 Months Ended
Jun. 30, 2024
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,
20242023
Software and equipment$20,802 $20,971 
Capitalized software81,582 53,950 
Furniture and fixtures13,361 12,598 
Leasehold improvements39,103 39,068 
Property and equipment, gross154,848 126,587 
Less: accumulated depreciation and amortization(66,814)(45,023)
Property and equipment, net$88,034 $81,564 
Depreciation and amortization expense, which includes the amortization of capitalized software, during the years ended June 30, 2024, 2023, and 2022 was $23.2 million, $15.5 million, and $11.5 million, respectively.
As of June 30, 2024 and 2023, the unamortized capitalized software cost was $57.5 million and $42.7 million, respectively.
v3.24.2.u1
Goodwill and Intangible Assets
 12 Months Ended
Jun. 30, 2024
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,
20242023
Balance, beginning$2,396,509 $2,362,893 
Addition related to acquisition during the period— 33,441 
Measurement period adjustments— 175 
Balance, ending$2,396,509 $2,396,509 
Intangible Assets
Intangible assets consisted of the following as of the dates presented (amounts in thousands):
June 30, 2024
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted average remaining
useful life
(In years)
Customer relationships$259,269 $(78,410)$180,859 7.0
Developed technology215,958 (116,126)99,832 2.9
Trade name48,042 (47,262)780 0.2
Total$523,269 $(241,798)$281,471 
Jun 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 
Amortization of finite-lived intangible assets was as follows during the years ended June 30, 2024 and 2023 (in thousands):
June 30,
20242023
Cost of revenue$38,948 $38,269 
Sales and marketing41,008 41,936 
Total$79,956 $80,205 
As of June 30, 2024, 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
2025$61,234 
202659,570 
202756,909 
202826,606 
202925,927 
Thereafter51,225 
Total$281,471 
v3.24.2.u1
Debt and Borrowings
 12 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Debt and Borrowings DEBT AND BORROWINGS
Debt and borrowings consisted of the following (in thousands):
June 30,
20242023
Current liabilities:
Borrowings from revolving credit facility (including unamortized debt premium)(1)
$— $135,046 
Non-current liabilities:
Convertible senior notes:
2027 Notes, principal575,000 575,000 
2025 Notes, principal167,314 1,150,000 
Less: unamortized debt issuance costs(8,323)(20,218)
Convertible senior notes, net733,991 1,704,782 
Borrowings from revolving credit facility (including unamortized debt premium)(1)
180,009 — 
Total $914,000 $1,839,828 

(1) Unamortized debt issuance costs balance for the Revolving Credit Facility was $0.6 million and $0.2 million as of June 30, 2024 and June 30, 2023, respectively, and is included in other assets on the consolidated balance sheets.
2027 Notes
On September 24, 2021, the Company issued $575.0 million in aggregate principal amount of its 0% convertible senior notes due on April 1, 2027, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the 2027 Notes). The 2027 Notes are subject to the terms and conditions of the indenture governing the 2027 Notes between the Company and Wells Fargo Bank, N.A., as trustee (in its respective capacity as the trustee for each of the 2027 Notes and the 2025 Notes (as defined below), as applicable, the 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 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, and together with the 2027 Notes, the Notes). The 2025 Notes are subject to the terms and conditions of the indenture governing the
2025 Notes between the Company and the 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 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. 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 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.
On March 6, 2024, the Company entered into privately-negotiated transactions with certain holders of its 2025 Notes to repurchase $748.2 million aggregate principal amount of the 2025 Notes for an aggregate cash repurchase price of $711.0 million, inclusive of transaction costs. The carrying amount of the extinguished 2025 Notes was $743.6 million, net of unamortized issuance cost of $4.6 million, resulting in a $32.6 million gain recorded in other income, net in the accompanying consolidated statement of operations, comprised of $35.7 million gain on extinguishment of debt and $3.2 million loss on mark to market derivative related to forward contract to settle the repurchase.
On May 29, 2024, the Company entered into privately-negotiated transactions with certain holders of its 2025 Notes to repurchase $234.5 million aggregate principal amount of the 2025 Notes for an aggregate cash repurchase price of $221.6 million, inclusive of transaction costs. The carrying amount of the extinguished 2025 Notes was $233.2 million, net of unamortized issuance cost of $1.2 million, resulting in a $11.0 million gain on extinguishment of debt recorded in other income, net in the accompanying consolidated statement of operations.
The shares issuable upon conversion of the remaining outstanding 2025 Notes at the initial conversion price is approximately 1.0 million.
Additional Information About the Notes
As of June 30, 2024 and 2023, the Notes consisted of the following (in thousands):
June 30, 2024June 30, 2023
2027 Notes2025 Notes2027 Notes2025 Notes
Liability component:
Principal$575,000 $167,314 $575,000 $1,150,000 
Less: unamortized debt issuance costs(7,496)(827)(10,188)(10,030)
Net carrying amount$567,504 $166,487 $564,812 $1,139,970 
The debt issuance costs of the Notes are being amortized using the effective interest method. During the years ended June 30, 2024 and 2023, the Company recognized $6.0 million and $6.8 million, respectively, of the debt issuance costs of the Notes. During each of the years ended June 30, 2024, 2023, and 2022, the effective interest rates of the 2027 Notes and 2025 Notes was 0.48% and 0.36%, respectively. As of June 30, 2024, the weighted-average remaining life of the Notes was 2.5 years.
The "if-converted" value of the Notes did not exceed the principal amount of $0.7 billion as of June 30, 2024.
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.
On March 6, 2024, the Company entered into agreements to terminate a portion of the Capped Calls previously entered into in connection with the issuance of the 2025 Notes, in a notional amount corresponding to the amount of 2025 Notes that are repurchased. The Company received $10.3 million in cash, and also recorded a $1.7 million gain on mark to market derivative to settle the Capped Call unwinding. The gain was recorded in other income, net in the accompanying consolidated statement of operations.
On May 29, 2024, the Company entered into agreements to terminate the remaining portion of the Capped Calls previously entered into in connection with the issuance of the 2025 Notes. The Company received $1.2 million in cash, and recorded an immaterial gain in other income, net in the accompanying consolidated statement of operations.
The Capped Calls associated with the 2027 Notes have an initial strike price of $414.80 per share, subject to certain adjustments, which corresponds to the respective initial conversion price of the 2027 Notes, and have an initial cap price of $544.00 per share, subject to certain adjustments. The Capped Calls associated with the 2027 Notes cover, approximately 1.4 million shares of the Company’s common stock, subject to anti-dilution adjustments. The Capped Calls are expected to generally reduce the potential dilution of the Company’s common stock upon any conversion of the 2027 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 (as amended from time to time, the Revolving Credit Facility) was initially executed in March 2021, amended in August 2022 to finance the acquisition of card receivables and increase the borrowing capacity, and further amended in March 2024 to extend the maturity date and further increase the borrowing capacity. The Revolving Credit Facility matures in June 2026 or earlier pursuant to the agreement and has a total commitment of $300.0 million. The required minimum utilization was $180.0 million, or 60% of the total commitment, and the Company had borrowed an additional $45.0 million in March 2024. Total outstanding borrowings were $180.0 million as of June 30, 2024. The Revolving Credit Facility requires the Company to pay unused fees up to 0.50% per annum. Borrowings are secured by acquired card receivables. 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 8.28% per annum as of June 30, 2024. The Company is required to comply with certain restricted covenants, including liquidity requirements. As of June 30, 2024, 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 contract of approximately 1.9 years. The amortization of the debt issuance costs and debt premium is recorded in other income (expense), net in the accompanying consolidated statement of operations and during each of the years ended June 30, 2024 and 2023 was not material.
v3.24.2.u1
Stockholders' Equity
 12 Months Ended
Jun. 30, 2024
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 18,041,434 shares as of June 30, 2024.
Equity Awards Assumed in Acquisitions
The Company assumed and replaced the outstanding stock options of Invoice2go upon its acquisition. 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.
Restricted Stock Units
A summary of RSU activity as of June 30, 2024, and changes during the year ended June 30, 2024, is presented below.
Number of
shares (1)
(in thousands)
Weighted
average
grant date
fair value
Nonvested at June 30, 2023
4,184 $140.41 
Granted3,452 $90.90 
Vested(2,048)$136.74 
Forfeited(987)$124.82 
Nonvested at June 30, 2024
4,600 $108.24 
(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 RSUs granted during the years ended June 30, 2024, 2023, and 2022 was $90.90, $120.25, and $202.79 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, 2024, 2023, and 2022 was approximately $145.1 million, $197.3 million, and $118.9 million, respectively.
Performance-based RSUs
During the year ended June 30, 2024 the Company granted 102,411 RSUs to certain executive employees that vest based upon the achievement of designated financial metrics and continued employment with the Company over a 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 $102.04 per unit. The Company recognizes expense for performance-based RSUs over the requisite service period. 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.
Stock Based Compensation
Stock-based compensation by award type (in thousands):
Year ended
June 30,
Unrecognized compensation
(in thousands)
Weighted-average recognition period (in years)
202420232022
RSUs(1)
$217,696 $251,456 $134,222 $434,623 2.6
Stock options10,719 37,882 55,667 3,989 1.1
Performance-based awards13,351 17,914 — 13,411 3.3
Employee stock purchase plan9,129 11,280 8,918 4,143 0.6
Market-based RSUs5,912 4,308 2,755 7,106 1.4
Total stock-based compensation
$256,807 $322,840 $201,562 $463,272 
Stock-based compensation was included in the following line items in the accompanying consolidated statements of operations and consolidated balance sheets (in thousands):
Year ended
June 30,
202420232022
Revenue - subscription and transaction fees$1,831 $188 $— 
Cost of revenue - service costs9,309 9,111 5,144 
Research and development103,382 93,364 54,907 
Sales and marketing(1)
49,070 130,421 60,237 
General and administrative81,209 80,619 76,869 
Restructuring3,574 — — 
Total amount charged to operating loss248,375 313,703 197,157 
Property and equipment (capitalized internal-use software) and other8,432 9,137 4,405 
Total stock-based compensation$256,807 $322,840 $201,562 
(1) In fiscal 2023, the Company entered into separation and advisory agreements (the CRO Agreements) with its former Chief Revenue Officer (the CRO). Pursuant to the CRO Agreements, the former CRO will serve the Company as an advisor through September 2024. Upon execution of the CRO Agreements, the Company recognized $52.2 million of stock-based compensation expense related to the former CRO's RSUs.
Share Repurchase Program
In January 2023, the Company's board of directors authorized the repurchase of up to $300.0 million of the Company's outstanding shares of common stock (the January 2023 Share Repurchase Program). During the years ended June 30, 2024 and 2023, the Company repurchased and subsequently retired 2,882,634 shares for $211.9 million and 1,077,445 shares for $87.6 million under the January 2023 Share Repurchase Program, respectively. The Company completed the repurchase of shares with an aggregate value equal to the full authorized amount under the January 2023 Share Repurchase Program by December 31, 2023.
The total price of the shares repurchased and related transaction costs are reflected as a reduction of common stock and an increase to accumulated deficit on the accompanying consolidated balance sheets.
v3.24.2.u1
Other Income (Expense), Net
 12 Months Ended
Jun. 30, 2024
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,
202420232022
Interest income$122,298 $91,279 $6,691 
Gain on debt extinguishment and change on mark to market derivatives associated with 2025 Notes repurchase and capped calls45,272 — — 
Lower of cost or market adjustment on card
     receivables sold and held for sale		— (1,545)(11,460)
Interest expense(19,182)(15,203)(9,419)
Other(543)(1,675)327 
Total other income (expense), net
$147,845 $72,856 $(13,861)
v3.24.2.u1
Income Taxes
 12 Months Ended
Jun. 30, 2024
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,
202420232022
Domestic$5,312 $(199,452)$(304,508)
Foreign(31,631)(23,465)(26,171)
Total$(26,319)$(222,917)$(330,679)
The components of provision for (benefit from) income taxes were as follows during the periods presented (in thousands):
Year ended
June 30,
202420232022
Current:
Federal$1,650 $572 $(247)
State1,251 1,583 — 
Foreign19 14 — 
Total current2,920 2,169 (247)
Deferred:
Federal(262)(995)(1,115)
State(99)(366)(2,956)
Total deferred(361)(1,361)(4,071)
Provision for (benefit from) income taxes$2,559 $808 $(4,318)
The items accounting for the difference between the income taxes computed at the federal statutory rate and the provision for (benefit from) income taxes consisted of the following during the periods presented (in thousands):
Year ended
June 30,
202420232022
Expected benefit at U.S. federal statutory rate$(5,528)$(46,813)$(69,443)
State income taxes, net of federal benefit9,134 8,087 13,509 
Stock-based compensation (1)
24,300 4,253 (93,705)
Research and development tax credits(24,039)(19,974)(22,061)
Change in valuation allowance related to acquisition (2)
— (126)(2,831)
Change in valuation allowance (3)
4,943 48,321 174,477 
Restructuring(13,769)— — 
Unrecognized tax benefit(628)(390)(10,975)
Acquisition-related costs— — 553 
Foreign rate differential6,658 4,942 5,496 
Other1,488 2,508 662 
Provision for (benefit from) income taxes
$2,559 $808 $(4,318)
(1)
The rate impact during the year ended June 30, 2024 and 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 pertains to windfalls from tax deductions being larger than the associated stock compensation expense.
(2)
The rate impact during the year ended June 30, 2022 pertains to the income tax benefit recorded as a result of the acquisition of Invoice2go, 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 acquisition.
(3)
The rate impact during the year ended June 30, 2024, 2023 and 2022 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 and (ii) a change in deferred tax liability related to the acquisitions of Invoice2go.
The components of deferred tax assets and liabilities were as follows as of the dates presented (in thousands):
June 30,
20242023
Deferred tax assets:
Accruals and reserves$13,966 $12,537 
Capitalized research and development120,882 75,694 
Deferred revenue1,084 1,084 
Stock-based compensation17,093 24,998 
Net operating loss carryforwards360,592 379,758 
Research and development credits85,910 62,299 
Accrued rewards40 1,855 
Operating lease liabilities19,139 21,616 
Other598 1,257 
Total deferred tax assets before valuation allowance
619,304 581,098 
Valuation allowance(494,424)(479,449)
Deferred tax assets$124,880 $101,649 
Deferred tax liabilities:
Deferred contract costs$(5,868)$(4,772)
Property and equipment(15,853)(13,078)
Intangible assets(68,218)(67,455)
Operating right of use assets(14,992)(17,155)
Other reserve(20,399)— 
Total deferred tax liabilities(125,330)(102,460)
Net deferred tax liabilities$(450)$(811)
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 $15.0 million, $95.3 million, and $276.3 million during the years ended June 30, 2024, 2023, and 2022, respectively. The increase in the June 30, 2024 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 sheets.
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, 2024, the Company had NOL carryforwards of $1.2 billion, $1.0 billion, and $134.9 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 2024. As of June 30, 2024, the federal
and foreign NOL carryforwards do not expire and will carry forward indefinitely until utilized. As of June 30, 2024, the Company also had research and development tax credit carryforwards of approximately $76.5 million and $53.1 million for federal and state tax purposes, respectively. If not utilized, the federal tax credits will expire at various dates beginning in 2041. The majority of 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 e
ded June 30,
202420232022
Balance at the beginning of the year$23,300 $16,724 $22,185 
Add:
Tax positions related to the current year
9,134 6,642 7,354 
Increase from business combination— — 160 
Tax positions related to the prior year
2,714 226 — 
Less:
Tax positions related to the prior year— — (12,761)
Statute of limitations lapse(20)(292)(214)
Balance at the end of the year$35,128 $23,300 $16,724 
The Company had unrecognized tax benefits of approximately $35.1 million and $23.3 million as of June 30, 2024 and 2023, respectively, all of which are offset by a full valuation allowance. If the unrecognized tax benefits as of June 30, 2024 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, 2024 and 2023 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.
v3.24.2.u1
Leases
 12 Months Ended
Jun. 30, 2024
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, 2024, the weighted average remaining term of these operating leases is 6.5 years and the weighted-average discount rate used to estimate the net present value of the operating lease liabilities was 5.0%.
The total payment for amounts included in the measurement of operating lease liabilities was $13.9 million, $14.9 million, and $13.8 million during the years ended June 30, 2024, 2023, and 2022, respectively.
The total amount of ROU assets obtained in exchange for new operating lease liabilities was zero, $2.0 million, and $5.3 million during the years ended June 30, 2024, 2023, and 2022, respectively.
The components of lease expense during the years ended June 30, 2024, 2023, and 2022 are shown in the table below (in thousands):
Year ended June 30
202420232022
Operating lease expense (1)
$12,877 $14,081 $12,983 
Variable lease expense, net of credit2,461 2,251 2,909 
Sublease income(581)(586)(712)
Total lease cost$14,757 $15,746 $15,180 
(1) Includes short-term lease, which is not material for the fiscal years ended June 30, 2024, 2023, and 2022.
v3.24.2.u1
Commitments and Contingencies
 12 Months Ended
Jun. 30, 2024
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, which expire through 2031. Future minimum lease payments as of June 30, 2024 are as follows (in thousands):
Fiscal years ending June 30:
Amount
2025$13,425 
202613,292 
202713,226 
202813,590 
202913,974 
Thereafter21,945 
Gross lease payments89,452 
Less - present value adjustments(13,614)
Total operating lease liabilities, net$75,838 
The current portion of operating lease liabilities, which is included in other accruals and current liabilities in the accompanying consolidated balance sheets, was $13.0 million and $14.1 million as of June 30, 2024 and 2023, respectively. The non-current portion of operating lease liabilities was $62.8 million and $72.5 million as of June 30, 2024 and 2023, 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, 2024 are as follows (in thousands).
Fiscal years ending June 30:
Amount
2025$29,468 
202615,051 
20279,414 
20285,491 
20294,250 
Total$63,674 
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 $27.2 million as of June 30, 2024 and are not 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, 2024. See Note 6 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, 2024 and 2023, 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.
Unused Credit Arrangements
As of June 30, 2024, the Company, in partnership with the Issuing Banks and the Originating Bank Partner, had approximately $2.8 billion in unused credit available to spending businesses and borrowers using the invoice financing product. While this balance represents the total unused credit available, historical trends and current expectations indicate that the unused credit will likely not be fully utilized by spending businesses and borrowers using the invoice financing product at any one time.
The Company manages credit risk exposure by limiting total credit for each spending business and borrowers using the invoice financing product. The Company periodically reviews credit lines to assess different factors, including account usage and creditworthiness of spending businesses and borrowers using the invoice financing product. The credit lines can be terminated by the Company at any time, and they do not necessarily represent future cash requirements. The Company does not record a liability for expected credit losses for unused lines of credit as they are unconditionally cancellable.
v3.24.2.u1
Restructuring
 12 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring RESTRUCTURING
On December 5, 2023, the Company announced a restructuring plan (Restructuring Plan) intended to right-size the Company's organization, enhance profitability, and reallocate resources towards the most impactful initiatives. The Restructuring Plan included a reduction of the Company's global workforce and closure of its office in Sydney, Australia. The Company incurred the majority of the charges relating to the Restructuring Plan in the three months ended December 31, 2023. The Company has substantially completed the Restructuring Plan as of June 30, 2024.
During the year ended June 30, 2024, the Company recorded restructuring expenses of $27.6 million, which includes $3.6 million of stock-based compensation expense, as a separate line item in the accompanying consolidated statements of operations. The following table summarizes the restructuring liability that is included in other accruals and current liabilities and accounts payable on the accompanying consolidated balance sheets as of June 30, 2024:
Severance and termination benefitsContract terminationOtherTotal restructuring liability
Balance, at June 30, 2023$— $— $— $— 
Charges22,817 480 705 24,002 
Cash payments(22,492)(480)(703)(23,675)
Balance, at June 30, 2024
$325 $— $2 $327 
v3.24.2.u1
Net Loss Per Share Attributable To Common Stockholders
 12 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Net Loss Per Share Attributable To Common Stockholders NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been anti-dilutive, were as follows as of the dates presented (in thousands):
June 30,
202420232022
Equity awards6,641 6,772 7,137 
Convertible senior notes2,426 8,534 8,534 
Total9,067 15,306 15,671 
Shares issuable under the Notes is subject to adjustment up to approximately 3.6 million shares if certain corporate events occur prior to the maturity date of the Notes or if the Company issues a notice of redemption. As of June 30, 2024, the Conversion Condition was not triggered for either the 2025 Notes or the 2027 Notes.
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Pay vs Performance Disclosure      
Net loss $ (28,878) $ (223,725) $ (326,361)
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Jun. 30, 2024
shares
Jun. 30, 2024
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  
Name
ActionDateTrading ArrangementTotal Shares to be SoldExpiration Date
Title
Rule 10b5-1 (1)
Non-Rule 10b5-1 (2)
Alison Wagonfeld
Director
Adopt6/5/2024X3,921 8/22/2025
(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  
Title Director  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date 6/5/2024  
Expiration Date 8/22/2025  
Arrangement Duration 443 days  
Aggregate Available 3,921 3,921
v3.24.2.u1
Insider Trading Policies and Procedures
 12 Months Ended
Jun. 30, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.24.2.u1
The Company and Its Significant Accounting Policies (Policies)
 12 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Follow-on Offering
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
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
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. was zero and not material as of June 30, 2024 and 2023, respectively.
Reclassification
Certain accounts in the prior period consolidated statements of operation and consolidated statements of cash flows were reclassified to conform with the current year presentation.
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; the estimate of expected credit losses on accounts receivable, acquired card receivables, and loans held for investment; accrual for rewards; benefit periods used to amortize deferred costs; reserve for losses on funds held for customers; and valuation of deferred tax assets. The Company evaluates these estimates and assumptions and adjusts them accordingly. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements.
Funds Held for Customers and Customer Fund Deposits
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, which include money market funds and marketable debt securities with maturities of three months or less, as well as marketable debt securities with maturities ranging from more than three months up to thirty-seven months at the time of purchase based on the effective maturity date. 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.
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, including those with maturities beyond 12 months, and therefore classifies these securities as current assets in the accompanying consolidated balance sheets. Unrealized gains or losses are included in accumulated other comprehensive loss on the consolidated balance sheets and as a component of the consolidated statements of comprehensive loss. If the estimated fair value of an available-for-sale debt security is below its amortized cost basis, then the Company evaluates for impairment. The Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the debt security’s amortized cost basis is written down to fair value through other income (expense), net in the consolidated statements of operations. If neither of these criteria are met, the Company evaluates whether unrealized losses have resulted from a credit loss or other factors. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. An impairment relating to credit losses is recorded through an allowance for credit losses reported in other income (expense), net in the consolidated statements of operations. The allowance is limited by the amount that the fair value of the debt security is below its amortized cost basis.
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, acquired card receivables and loans held for investment (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. Management believes that the financial institutions with which the Company does business are financially sound with minimal credit risk. Management further believes the associated risk of concentration for the Company’s investments is mitigated by holding a diversified portfolio of highly rated investments consisting of money market funds and short-term debt securities
Foreign Currency
Foreign Currency
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 income (expense), 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 expected credit losses. Unbilled revenue is recorded based on amounts that the Company expects to invoice to customers in the subsequent period. The allowance for expected 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 expected 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 uncollectible are charged against the allowance for expected credit losses when identified. For all periods presented, the allowance for expected credit losses related to accounts receivable and unbilled revenue was not material.
Loans Held for Investment
Loans Held for Investment
Loans held for investment represent funds advanced under either a term loan or line of credit agreement, through a partnership with a third-party bank (the Originating Bank Partner) in connection with the Company's invoice financing product, with each invoice financed having a repayment term of 12 months. The Company purchases loans or lines of credit draws from the Originating Bank Partner pursuant to the terms outlined in the loan sale agreement between the Company and the Originating Bank Partner. The undrawn lines of credit are unconditionally cancellable. Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as held for investment and are initially recognized at their purchase price and subsequently reported at amortized cost. The loans held for investment are recorded net of the allowance for expected credit losses.
The Company accretes discount and interest income using the effective interest method over the life of the loan. Accretion of discount and interest income on these loans is included in subscription and transaction fees revenue in the accompanying consolidated statements of operations.
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.
Acquired Card Receivables
Acquired Card Receivables
The portfolio of acquired card receivables consists of 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 expected credit losses and represent a revolving line of credit. The undrawn lines of credit are unconditionally cancellable. 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 a 100% participation interest in 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 at the Issuing Banks and generally payment for the card receivables is made on the day the transaction clears at 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 expected credit losses reflects the Company’s estimate of uncollectible balances resulting from credit losses and is based on the determination of the amount of expected credit losses inherent in the acquired card receivables 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 receivables 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 charged-off loans based on historical recovery experience. Additionally, management evaluates whether to include qualitative reserves to cover credit losses that are expected but may not be adequately represented by the quantitative methodology 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 charged-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, 2024 and 2023, the allowance for expected credit losses on acquired card receivables shown on the consolidated balance sheets totaled $20.9 million and $15.5 million, respectively. These amounts do not include the immaterial allowance for expected credit losses on card receivables that have been authorized but not cleared at the end of the periods (see Note 15).
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 $67.7 million and $55.4 million as of June 30, 2024 and 2023, respectively, is included in other accruals and current liabilities in the accompanying consolidated balance sheets. The rewards expense, which was $219.8 million, $173.9 million, and $95.2 million, during the years ended June 30, 2024, 2023, and 2022, 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. 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 facilitates the extension of credit to spending businesses through the BILL Spend and Expense product in the form of BILL Divvy Corporate Cards. The spending businesses utilize the credit on BILL Divvy Corporate Cards as a means of payment for goods and services provided by their suppliers. Virtual card payments and BILL Divvy Corporate 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 BILL Divvy Corporate 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 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, for the Company’s customer success and payment operations teams, 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), outsourced support services for the Company's customer success team, direct and amortized costs for implementing and integrating the Company’s cloud-based platform into the customers’ systems, and cloud payments infrastructure costs.
Research and Development
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
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. Awards that are classified as liabilities are remeasured at fair value at the end of each reporting period.
The Company recognizes compensation 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. The Company recognizes compensation for performance-based awards over the vesting period if it is probable that the performance condition will be achieved. The Company accounts for forfeitures as they occur.
Advertising
Advertising
The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses during the years ended June 30, 2024, 2023, and 2022 were $43.6 million, $39.0 million, and $29.4 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 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.
Restructuring
Restructuring
The Company records a liability for involuntary employee termination benefits when management has committed to a plan that establishes the terms of the arrangement and that plan has been communicated to employees. Costs to terminate a contract before the end of the term are recognized on the termination date, and costs that will continue to be incurred in a contract for the remaining term without economic benefit are recognized as of the cease-use date.
New Accounting Pronouncements
New Accounting Pronouncements and Disclosure Rules Not Yet Adopted
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Reportable Segments (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses, including public entities with a single operating or reportable segment. The updated standard is effective for the Company's annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026. Early adoption is permitted. This ASU will result in the required additional disclosures being included in the consolidated financial statements retrospectively, to all periods presented, once adopted.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The updated standard will be effective for annual periods beginning in fiscal 2026. This ASU will result in the required additional disclosures being included in the consolidated financial statements, once adopted.
In March 2024, the SEC adopted final rules related to climate-related disclosures in SEC Release No. 33-11275: The Enhancement and Standardization of Climate-Related Disclosures for Investors. In April 2024, the SEC issued an order to stay the effectiveness of the rules pending the completion of judicial review of multiple petitions challenging the rules. To the extent the rules become effective, they will require registrants to disclose certain climate-related information in registration statements and annual reports. The disclosure requirements, as initially adopted, would apply for annual periods beginning in fiscal 2026. The Company is currently evaluating the final rules to determine their impact on the Company's Annual Reports on Form 10-K.
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.
v3.24.2.u1
Revenue (Tables)
 12 Months Ended
Jun. 30, 2024
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,
 202420232022
SMBs, accounting firms, spending businesses and other$1,098,644 $901,602 $603,171 
Financial institutions24,089 43,108 30,194 
Total subscription and transaction fees1,122,733 944,710 633,365 
Interest on funds held for customers167,439 113,758 8,594 
Total revenue$1,290,172 $1,058,468 $641,959 
Summary of Deferred Costs
Deferred costs consisted of the following as of the dates presented (in thousands):
 June 30,
 20242023
Deferred sales commissions:
Current$8,142 $6,523 
Non-current15,113 12,317 
Total deferred sales commissions$23,255 $18,840 
Deferred service costs:
Current$430 $904 
Non-current1,930 2,221 
Total deferred service costs$2,360 $3,125 
v3.24.2.u1
Business Combination (Tables)
 12 Months Ended
Jun. 30, 2024
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.
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 
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 
v3.24.2.u1
Fair Value Measurement (Tables)
 12 Months Ended
Jun. 30, 2024
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, 2024
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$522,618 $— $— $522,618 
522,618 — — 522,618 
Short-term investments:
Corporate bonds— 298,202 — 298,202 
U.S. treasury securities— 180,983 — 180,983 
Asset-backed securities— 59,363 — 59,363 
Certificates of deposit— 38,370 — 38,370 
U.S. agency securities
— 24,617 — 24,617 
— 601,535 — 601,535 
Funds held for customers:
Restricted cash equivalents
Money market funds1,319,609 — — 1,319,609 
Corporate bonds— 89,082 — 89,082 
1,319,609 89,082 — 1,408,691 
Short-term investments
Corporate bonds— 937,198 — 937,198 
U.S. treasury securities— 342,041 — 342,041 
Certificates of deposit— 119,616 — 119,616 
Asset-backed securities— 116,475 — 116,475 
— 1,515,330 — 1,515,330 
Total assets measured at fair value$1,842,227 $2,205,947 $— $4,048,174 
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 $— $3,827,339 
Liabilities
Contingent consideration(1)
— — (12,035)(12,035)
Total liabilities measured at fair value$— $— $(12,035)$(12,035)
(1) The Company used the probability-weighted discounted cash flow method to estimate the contingent consideration. The significant inputs used in the fair value measurement of the contingent consideration are the probability of payout and discount rate. As these inputs are not based on observable market data, the liability represents a Level 3 measurement within the fair value hierarchy.
v3.24.2.u1
Short-Term Investments And Funds Held For Customers (Tables)
 12 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Summary of Funds Held for Customers
The following table summarizes the assets underlying short-term investments and funds held for customers as of the dates presented (in thousands):
June 30,
2024		June 30,
2023
Short-term investments:
Available-for-sale debt securities$601,535 $1,043,110 
Total short-term investments601,535 1,043,110 
Funds held for customers:
Restricted cash779,838 1,793,088 
Restricted cash equivalents1,408,691 713,469 
Funds receivable11,870 12,822 
Available-for-sale debt securities1,515,330 846,404 
Total funds held for customers3,715,729 3,365,783 
Less - income earned by the Company included in other current assets(10,822)(9,874)
Total funds held for customers, net of income earned by the Company$3,704,907 $3,355,909 
Schedule of Short-Term Investments
The following table summarizes the estimated fair value of available-for-sale debt securities included within funds held for customers and short-term investments as of the dates presented (in thousands):
June 30, 2024
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses 		Fair value
Short-term investments:
Corporate bonds$298,628 $140 $(566)$298,202 
U.S. treasury securities181,225 — (242)180,983 
Asset-backed securities59,340 68 (45)59,363 
Certificates of deposit38,370 — — 38,370 
U.S. agency securities24,669 — (52)24,617 
Total short-term investments$602,232 $208 $(905)$601,535 
Funds held for customers:
Corporate bonds$937,989 $23 $(814)$937,198 
Certificates of deposit119,615 1 — 119,616 
Asset-backed securities116,542 11 (78)116,475 
U.S. treasury securities342,202 1 (162)342,041 
Total funds held for customers$1,516,348 $36 $(1,054)$1,515,330 
June 30, 2023
Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair value
Short-term investments:
Corporate bonds$481,658 $207 $(2,382)$479,483 
U.S. treasury securities409,586 42 (1,260)408,368 
U.S. agency securities58,166 — (199)57,967 
Asset-backed securities51,321 8 (136)51,193 
Certificates of deposit46,099 — — 46,099 
Total short-term investments$1,046,830 $257 $(3,977)$1,043,110 
Funds held for customers:
Corporate bonds$433,936 $18 $(34)$433,920 
Certificates of 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 funds held for customers$847,012 $25 $(633)$846,404 
Summary of Fair Value of Available-for-Sale Debt Securities
The following table summarizes fair value of the Company's available-for-sale debt securities included within funds held for customers and short-term investments by remaining contractual maturity as of the dates presented (in thousands):
June 30,
2024		June 30,
2023
Due within 1 year
$1,699,009 $1,543,379 
Due in 1 year through 5 years
409,309 346,135 
Due in 5 year through 10 years
8,547 — 
Total
$2,116,865 $1,889,514 
Schedule of Gross Unrealized Loss and Fair Values The following table shows gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands):
June 30, 2024
Less than 12 months12 months or longerTotal
Fair valueUnrealized
losses		Fair valueUnrealized
losses		Fair valueUnrealized
losses
Short-term investments:
Corporate bonds$130,469 $(333)$60,576 $(232)$191,045 $(565)
U.S. treasury securities152,004 (156)28,979 (86)180,983 (242)
Asset-backed securities24,149 (39)2,155 (7)26,304 (46)
U.S. agency securities24,617 (52)— — 24,617 (52)
Total short-term investments$331,239 $(580)$91,710 $(325)$422,949 $(905)
Funds held for customers:
Corporate bonds$506,540 $(814)$— $— $506,540 $(814)
Asset-backed securities68,629 (76)5,546 (2)74,175 (78)
U.S. treasury securities327,340 (162)— — 327,340 (162)
Total funds held for customers$902,509 $(1,052)$5,546 $(2)$908,055 $(1,054)
June 30, 2023
Less than 12 months12 months or longerTotal
Fair valueUnrealized
losses		Fair valueUnrealized
losses		Fair valueUnrealized
losses
Short-term investments:
Corporate bonds$213,373 $(1,421)$83,189 $(961)$296,562 $(2,382)
U.S. treasury securities199,440 (976)14,286 (284)213,726 (1,260)
Asset-backed securities35,719 (103)2,707 (33)38,426 (136)
U.S. agency securities57,967 (199)— — 57,967 (199)
Total short-term investments$506,499 $(2,699)$100,182 $(1,278)$606,681 $(3,977)
Funds held for customers:
Corporate bonds$34,530 $(34)$— $— $34,530 $(34)
Asset-backed securities59,128 (258)11,533 (74)70,661 (332)
U.S. agency securities22,494 (31)— — 22,494 (31)
U.S. treasury securities74,888 (236)— — 74,888 (236)
Total funds held for customers$191,040 $(559)$11,533 $(74)$202,573 $(633)
v3.24.2.u1
Acquired Card Receivables (Tables)
 12 Months Ended
Jun. 30, 2024
Acquired Card Receivables [Abstract]  
Summary of Acquired Card Receivables by Class Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands):
June 30,
20242023
Current and less than 30 days past due$706,026 $463,704 
30 ~ 59 days past due4,277 2,507 
60 ~ 89 days past due3,393 4,544 
90 ~ 119 days past due4,093 3,196 
Over 120 days past due310 197 
Total$718,099 $474,148 
Summary of Change in Allowance for Credit Losses
Below is a summary of the changes in allowance for expected credit losses (in thousands):
June 30,
20242023
Balance, beginning
$15,498 $5,414 
Initial allowance for expected credit losses on purchased card receivables with credit deterioration
— 10 
Provision for expected credit losses52,327 32,015 
Charge-off amounts(51,805)(24,120)
Recoveries collected4,863 2,179 
Balance, ending
$20,883 $15,498 
v3.24.2.u1
Loans Held For Investment (Tables)
 12 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Summary of Loans Held For Investment
Loans held for investment are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets and consisted of the following as of the dates presented (in thousands):
June 30,
20242023
Unpaid principal balance$44,491 $1,579 
Less: Discount at loan purchase, net of amortization(1,120)(47)
Less: Allowance for expected credit losses(4,700)— 
Loans held for investment, net$38,671 $1,532 
v3.24.2.u1
Property and Equipment (Tables)
 12 Months Ended
Jun. 30, 2024
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,
20242023
Software and equipment$20,802 $20,971 
Capitalized software81,582 53,950 
Furniture and fixtures13,361 12,598 
Leasehold improvements39,103 39,068 
Property and equipment, gross154,848 126,587 
Less: accumulated depreciation and amortization(66,814)(45,023)
Property and equipment, net$88,034 $81,564 
v3.24.2.u1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Jun. 30, 2024
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,
20242023
Balance, beginning$2,396,509 $2,362,893 
Addition related to acquisition during the period— 33,441 
Measurement period adjustments— 175 
Balance, ending$2,396,509 $2,396,509 
Schedule of Intangible Assets
Intangible assets consisted of the following as of the dates presented (amounts in thousands):
June 30, 2024
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted average remaining
useful life
(In years)
Customer relationships$259,269 $(78,410)$180,859 7.0
Developed technology215,958 (116,126)99,832 2.9
Trade name48,042 (47,262)780 0.2
Total$523,269 $(241,798)$281,471 
Jun 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 
Schedule of Amortization of Finite-Lived Intangible Assets
Amortization of finite-lived intangible assets was as follows during the years ended June 30, 2024 and 2023 (in thousands):
June 30,
20242023
Cost of revenue$38,948 $38,269 
Sales and marketing41,008 41,936 
Total$79,956 $80,205 
Schedule of Future Amortization of Finite-Lived Intangible Assets
As of June 30, 2024, 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
2025$61,234 
202659,570 
202756,909 
202826,606 
202925,927 
Thereafter51,225 
Total$281,471 
v3.24.2.u1
Debt and Borrowings (Tables)
 12 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
Debt and borrowings consisted of the following (in thousands):
June 30,
20242023
Current liabilities:
Borrowings from revolving credit facility (including unamortized debt premium)(1)
$— $135,046 
Non-current liabilities:
Convertible senior notes:
2027 Notes, principal575,000 575,000 
2025 Notes, principal167,314 1,150,000 
Less: unamortized debt issuance costs(8,323)(20,218)
Convertible senior notes, net733,991 1,704,782 
Borrowings from revolving credit facility (including unamortized debt premium)(1)
180,009 — 
Total $914,000 $1,839,828 

(1) Unamortized debt issuance costs balance for the Revolving Credit Facility was $0.6 million and $0.2 million as of June 30, 2024 and June 30, 2023, respectively, and is included in other assets on the consolidated balance sheets.
Convertible Debt
As of June 30, 2024 and 2023, the Notes consisted of the following (in thousands):
June 30, 2024June 30, 2023
2027 Notes2025 Notes2027 Notes2025 Notes
Liability component:
Principal$575,000 $167,314 $575,000 $1,150,000 
Less: unamortized debt issuance costs(7,496)(827)(10,188)(10,030)
Net carrying amount$567,504 $166,487 $564,812 $1,139,970 
v3.24.2.u1
Stockholders' Equity (Tables)
 12 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Summary of RSU Activity
A summary of RSU activity as of June 30, 2024, and changes during the year ended June 30, 2024, is presented below.
Number of
shares (1)
(in thousands)
Weighted
average
grant date
fair value
Nonvested at June 30, 2023
4,184 $140.41 
Granted3,452 $90.90 
Vested(2,048)$136.74 
Forfeited(987)$124.82 
Nonvested at June 30, 2024
4,600 $108.24 
(1) Includes RSU, market-based RSUs and performance-based RSUs.
Summary of Stock Based Compensation Cost
Stock-based compensation by award type (in thousands):
Year ended
June 30,
Unrecognized compensation
(in thousands)
Weighted-average recognition period (in years)
202420232022
RSUs(1)
$217,696 $251,456 $134,222 $434,623 2.6
Stock options10,719 37,882 55,667 3,989 1.1
Performance-based awards13,351 17,914 — 13,411 3.3
Employee stock purchase plan9,129 11,280 8,918 4,143 0.6
Market-based RSUs5,912 4,308 2,755 7,106 1.4
Total stock-based compensation
$256,807 $322,840 $201,562 $463,272 
Stock-based compensation was included in the following line items in the accompanying consolidated statements of operations and consolidated balance sheets (in thousands):
Year ended
June 30,
202420232022
Revenue - subscription and transaction fees$1,831 $188 $— 
Cost of revenue - service costs9,309 9,111 5,144 
Research and development103,382 93,364 54,907 
Sales and marketing(1)
49,070 130,421 60,237 
General and administrative81,209 80,619 76,869 
Restructuring3,574 — — 
Total amount charged to operating loss248,375 313,703 197,157 
Property and equipment (capitalized internal-use software) and other8,432 9,137 4,405 
Total stock-based compensation$256,807 $322,840 $201,562 
(1) In fiscal 2023, the Company entered into separation and advisory agreements (the CRO Agreements) with its former Chief Revenue Officer (the CRO). Pursuant to the CRO Agreements, the former CRO will serve the Company as an advisor through September 2024. Upon execution of the CRO Agreements, the Company recognized $52.2 million of stock-based compensation expense related to the former CRO's RSUs.
v3.24.2.u1
Other Income (Expense), Net (Tables)
 12 Months Ended
Jun. 30, 2024
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,
202420232022
Interest income$122,298 $91,279 $6,691 
Gain on debt extinguishment and change on mark to market derivatives associated with 2025 Notes repurchase and capped calls45,272 — — 
Lower of cost or market adjustment on card
     receivables sold and held for sale		— (1,545)(11,460)
Interest expense(19,182)(15,203)(9,419)
Other(543)(1,675)327 
Total other income (expense), net
$147,845 $72,856 $(13,861)
v3.24.2.u1
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2024
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,
202420232022
Domestic$5,312 $(199,452)$(304,508)
Foreign(31,631)(23,465)(26,171)
Total$(26,319)$(222,917)$(330,679)
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,
202420232022
Current:
Federal$1,650 $572 $(247)
State1,251 1,583 — 
Foreign19 14 — 
Total current2,920 2,169 (247)
Deferred:
Federal(262)(995)(1,115)
State(99)(366)(2,956)
Total deferred(361)(1,361)(4,071)
Provision for (benefit from) income taxes$2,559 $808 $(4,318)
Difference between Income Taxes Computed At Federal Statutory Rate and (Benefit from) Provision for Income Taxes
The items accounting for the difference between the income taxes computed at the federal statutory rate and the provision for (benefit from) income taxes consisted of the following during the periods presented (in thousands):
Year ended
June 30,
202420232022
Expected benefit at U.S. federal statutory rate$(5,528)$(46,813)$(69,443)
State income taxes, net of federal benefit9,134 8,087 13,509 
Stock-based compensation (1)
24,300 4,253 (93,705)
Research and development tax credits(24,039)(19,974)(22,061)
Change in valuation allowance related to acquisition (2)
— (126)(2,831)
Change in valuation allowance (3)
4,943 48,321 174,477 
Restructuring(13,769)— — 
Unrecognized tax benefit(628)(390)(10,975)
Acquisition-related costs— — 553 
Foreign rate differential6,658 4,942 5,496 
Other1,488 2,508 662 
Provision for (benefit from) income taxes
$2,559 $808 $(4,318)
(1)
The rate impact during the year ended June 30, 2024 and 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 pertains to windfalls from tax deductions being larger than the associated stock compensation expense.
(2)
The rate impact during the year ended June 30, 2022 pertains to the income tax benefit recorded as a result of the acquisition of Invoice2go, 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 acquisition.
(3)
The rate impact during the year ended June 30, 2024, 2023 and 2022 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 and (ii) a change in deferred tax liability related to the acquisitions of Invoice2go.
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,
20242023
Deferred tax assets:
Accruals and reserves$13,966 $12,537 
Capitalized research and development120,882 75,694 
Deferred revenue1,084 1,084 
Stock-based compensation17,093 24,998 
Net operating loss carryforwards360,592 379,758 
Research and development credits85,910 62,299 
Accrued rewards40 1,855 
Operating lease liabilities19,139 21,616 
Other598 1,257 
Total deferred tax assets before valuation allowance
619,304 581,098 
Valuation allowance(494,424)(479,449)
Deferred tax assets$124,880 $101,649 
Deferred tax liabilities:
Deferred contract costs$(5,868)$(4,772)
Property and equipment(15,853)(13,078)
Intangible assets(68,218)(67,455)
Operating right of use assets(14,992)(17,155)
Other reserve(20,399)— 
Total deferred tax liabilities(125,330)(102,460)
Net deferred tax liabilities$(450)$(811)
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 e
ded June 30,
202420232022
Balance at the beginning of the year$23,300 $16,724 $22,185 
Add:
Tax positions related to the current year
9,134 6,642 7,354 
Increase from business combination— — 160 
Tax positions related to the prior year
2,714 226 — 
Less:
Tax positions related to the prior year— — (12,761)
Statute of limitations lapse(20)(292)(214)
Balance at the end of the year$35,128 $23,300 $16,724 
v3.24.2.u1
Leases (Tables)
 12 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Components of Lease Cost
The components of lease expense during the years ended June 30, 2024, 2023, and 2022 are shown in the table below (in thousands):
Year ended June 30
202420232022
Operating lease expense (1)
$12,877 $14,081 $12,983 
Variable lease expense, net of credit2,461 2,251 2,909 
Sublease income(581)(586)(712)
Total lease cost$14,757 $15,746 $15,180 
(1) Includes short-term lease, which is not material for the fiscal years ended June 30, 2024, 2023, and 2022.
v3.24.2.u1
Commitments and Contingencies (Tables)
 12 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Summary of Future Minimum Lease Payments Future minimum lease payments as of June 30, 2024 are as follows (in thousands):
Fiscal years ending June 30:
Amount
2025$13,425 
202613,292 
202713,226 
202813,590 
202913,974 
Thereafter21,945 
Gross lease payments89,452 
Less - present value adjustments(13,614)
Total operating lease liabilities, net$75,838 
Schedule of Future Payments Under Other Agreements Future payments under these other agreements as of June 30, 2024 are as follows (in thousands).
Fiscal years ending June 30:
Amount
2025$29,468 
202615,051 
20279,414 
20285,491 
20294,250 
Total$63,674 
v3.24.2.u1
Restructuring (Tables)
 12 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
Summary of Restructuring Liabilities The following table summarizes the restructuring liability that is included in other accruals and current liabilities and accounts payable on the accompanying consolidated balance sheets as of June 30, 2024:
Severance and termination benefitsContract terminationOtherTotal restructuring liability
Balance, at June 30, 2023$— $— $— $— 
Charges22,817 480 705 24,002 
Cash payments(22,492)(480)(703)(23,675)
Balance, at June 30, 2024
$325 $— $2 $327 
v3.24.2.u1
Net Loss Per Share Attributable To Common Stockholders (Tables)
 12 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Summary of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share Calculation
Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been anti-dilutive, were as follows as of the dates presented (in thousands):
June 30,
202420232022
Equity awards6,641 6,772 7,137 
Convertible senior notes2,426 8,534 8,534 
Total9,067 15,306 15,671 
v3.24.2.u1
The Company and Its Significant Accounting Policies - Follow-on Offering (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Sep. 24, 2021
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
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 $ 0 $ 1,341,122
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 (in shares) 5,073,529      
Shares issued price to public per share $ 272.00      
Payments for underwriting discounts commissions and other offering costs $ 38,900      
v3.24.2.u1
The Company and Its Significant Accounting Policies - Segment Reporting (Details)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
USD ($)
segment
Jun. 30, 2023
USD ($)
Jun. 30, 2022
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Number of operating segments | segment 1    
Percentage of revenue from non US customers 0.03 0.03 0.03
Non-US      
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Long-lived assets outside of the US | $ $ 0 $ 0  
v3.24.2.u1
The Company and Its Significant Accounting Policies - Funds Held For Customers and Customer Fund Deposits (Details)
Jun. 30, 2024
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]  
Money market funds and marketable debt securities, maximum maturity period 3 months
Minimum  
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]  
Marketable debt securities, maturity period 3 months
Maximum  
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]  
Marketable debt securities, maturity period 37 months
v3.24.2.u1
The Company and Its Significant Accounting Policies - Concentrations of Credit Risk (Details)
$ in Millions
 12 Months Ended
Jun. 30, 2024
USD ($)
Customer
Jun. 30, 2023
USD ($)
Customer
Jun. 30, 2022
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 | $ $ 25.8 $ 15.9  
Revenue Benchmark | Customer Concentration Risk      
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Number of customers exceed 10% of revenue | Customer 0 0 0
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%
v3.24.2.u1
The Company and Its Significant Accounting Policies - Property and Equipment (Details)
Jun. 30, 2024
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
v3.24.2.u1
The Company and Its Significant Accounting Policies - Acquired Card Receivables (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Accounting Policies [Abstract]    
Participation interest required to be purchased 1  
Number of days delinquent to become charged-off 120 days  
Allowance for potential credit losses for acquired card receivables $ 20.9 $ 15.5
v3.24.2.u1
The Company and Its Significant Accounting Policies - Intangible Assets (Details)
Jun. 30, 2024
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
v3.24.2.u1
The Company and Its Significant Accounting Policies - Impairment (Details)
 12 Months Ended
Jun. 30, 2024
reportingUnit
Accounting Policies [Abstract]  
Number of reporting unit 1
v3.24.2.u1
The Company and Its Significant Accounting Policies - Leases (Details)
Jun. 30, 2024
Minimum  
Lessee Lease Description [Line Items]  
Lease arrangements term 12 months
v3.24.2.u1
The Company and Its Significant Accounting Policies - Accrued Rewards (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Sales and Marketing Expenses      
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Rewards and promotions expense $ 219.8 $ 173.9 $ 95.2
Other Accruals and Current Liabilities      
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]      
Accrued rewards and promotions liability $ 67.7 $ 55.4  
v3.24.2.u1
The Company and Its Significant Accounting Policies - Stock-Based Compensation (Details)
 12 Months Ended
Jun. 30, 2024
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]  
Offering period of purchase rights under ESPP 1 year
Stock Options and RSUs  
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items]  
Vesting term 4 years
v3.24.2.u1
The Company and Its Significant Accounting Policies - Advertising (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Accounting Policies [Abstract]      
Advertising expenses $ 43.6 $ 39.0 $ 29.4
v3.24.2.u1
Revenue - Schedule of Subscription and Transaction Fees Disaggregated by Customer Category (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Disaggregation Of Revenue [Line Items]      
Total revenue $ 1,290,172 $ 1,058,468 $ 641,959
Subscription and transaction fees      
Disaggregation Of Revenue [Line Items]      
Total revenue 1,122,733 944,710 633,365
Subscription and transaction fees | SMBs, accounting firms, spending businesses and other      
Disaggregation Of Revenue [Line Items]      
Total revenue 1,098,644 901,602 603,171
Subscription and transaction fees | Financial institutions      
Disaggregation Of Revenue [Line Items]      
Total revenue 24,089 43,108 30,194
Interest on funds held for customers      
Disaggregation Of Revenue [Line Items]      
Total revenue $ 167,439 $ 113,758 $ 8,594
v3.24.2.u1
Revenue - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Disaggregation Of Revenue [Line Items]      
Deferred revenue, recognized $ 22,500    
Aggregate amount of transaction price allocated to performance obligations 86,800    
Unbilled revenue 16,700 $ 14,000  
Amortization of deferred sales commissions 7,900 6,600 $ 5,200
Amortization of deferred service costs $ 2,000 $ 2,500 $ 1,600
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01      
Disaggregation Of Revenue [Line Items]      
Aggregate amount of transaction price allocated to performance obligations, percentage 35.00%    
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year    
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 19.00%    
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-07-01      
Disaggregation Of Revenue [Line Items]      
Aggregate amount of transaction price allocated to performance obligations, percentage 46.00%    
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years    
v3.24.2.u1
Revenue - Summary of Deferred Costs (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Deferred Sales Commissions    
Deferred Costs [Line Items]    
Current $ 8,142 $ 6,523
Non-current 15,113 12,317
Total 23,255 18,840
Deferred Service Costs    
Deferred Costs [Line Items]    
Current 430 904
Non-current 1,930 2,221
Total $ 2,360 $ 3,125
v3.24.2.u1
Business Combination - Summary of Acquisition Purchase Consideration -Invoice2go (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 01, 2021
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Business Acquisition [Line Items]        
Equity consideration   $ 0 $ 3,375 $ 488,494
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      
v3.24.2.u1
Business Combination - Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed - Invoice2go (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Sep. 01, 2021
Business Acquisition [Line Items]        
Goodwill $ 2,396,509 $ 2,396,509 $ 2,362,893  
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
v3.24.2.u1
Business Combination - Summary of Preliminary Fair Values Allocated to Identifiable Intangible Assets and Estimated Useful Lives - Invoice2go (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Sep. 01, 2021
Business Acquisition [Line Items]      
Preliminary fair value $ 523,269 $ 523,269  
Customer relationships      
Business Acquisition [Line Items]      
Preliminary fair value 259,269 259,269  
Developed technology      
Business Acquisition [Line Items]      
Preliminary fair value 215,958 215,958  
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
v3.24.2.u1
Business Combination - Narrative (Details)
 12 Months Ended
Sep. 01, 2021
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Business Acquisition [Line Items]        
Goodwill   $ 2,396,509,000 $ 2,396,509,000 $ 2,362,893,000
Total revenue   1,290,172,000 1,058,468,000 641,959,000
Net loss   $ (28,878,000) $ (223,725,000) (326,361,000)
Invoice2go, Inc.        
Business Acquisition [Line Items]        
Goodwill $ 585,448,000      
Goodwill expected to be deductible for income tax purposes 0      
Adjustment to goodwill and deferred revenue $ 8,000,000.0      
Total revenue       32,900,000
Net loss       (32,000,000.0)
Invoice2go, Inc. | General and Administrative Expense        
Business Acquisition [Line Items]        
Acquisition-related costs       $ 3,700,000
Customer relationships | Invoice2go, Inc. | Discount Rate        
Business Acquisition [Line Items]        
Fair value measurement input 0.123      
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      
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      
v3.24.2.u1
Fair Value Measurement - Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Assets    
Cash equivalents: $ 522,618 $ 1,224,356
Short-term investments: 601,535 1,043,110
Funds held for customers: 1,515,330 846,404
Total assets measured at fair value 4,048,174 3,827,339
Money market funds    
Assets    
Cash equivalents: 522,618 1,131,621
Corporate bonds    
Assets    
Short-term investments: 298,202  
Certificates of deposit    
Assets    
Cash equivalents:   2,578
U.S. treasury securities    
Assets    
Cash equivalents:   44,856
Short-term investments: 180,983 408,368
Funds held for customers: 342,041 81,074
Liabilities    
Contingent consideration   (12,035)
Total liabilities measured at fair value   (12,035)
Asset-backed securities    
Assets    
Short-term investments: 59,363 51,193
Funds held for customers: 116,475 70,661
Certificates of deposit    
Assets    
Short-term investments: 38,370 46,099
Funds held for customers: 119,616 233,291
U.S. agency securities    
Assets    
Short-term investments: 24,617 57,967
Funds held for customers:   27,458
Restricted cash equivalents    
Assets    
Funds held for customers: 1,408,691 713,469
Restricted cash equivalents | Money market funds    
Assets    
Funds held for customers: 1,319,609 713,469
Restricted cash equivalents | Corporate bonds    
Assets    
Funds held for customers: 89,082  
Corporate bonds    
Assets    
Cash equivalents:   45,301
Short-term investments:   479,483
Funds held for customers: 937,198 433,920
Level 1    
Assets    
Cash equivalents: 522,618 1,176,477
Short-term investments: 0 408,368
Funds held for customers: 0 81,074
Total assets measured at fair value 1,842,227 2,379,388
Level 1 | Money market funds    
Assets    
Cash equivalents: 522,618 1,131,621
Level 1 | Corporate bonds    
Assets    
Short-term investments: 0  
Level 1 | Certificates of deposit    
Assets    
Cash equivalents:   0
Level 1 | U.S. treasury securities    
Assets    
Cash equivalents:   44,856
Short-term investments: 0 408,368
Funds held for customers: 0 81,074
Liabilities    
Contingent consideration   0
Total liabilities measured at fair value   0
Level 1 | Asset-backed securities    
Assets    
Short-term investments: 0 0
Funds held for customers: 0 0
Level 1 | Certificates of deposit    
Assets    
Short-term investments: 0 0
Funds held for customers: 0 0
Level 1 | U.S. agency securities    
Assets    
Short-term investments: 0 0
Funds held for customers:   0
Level 1 | Restricted cash equivalents    
Assets    
Funds held for customers: 1,319,609 713,469
Level 1 | Restricted cash equivalents | Money market funds    
Assets    
Funds held for customers: 1,319,609 713,469
Level 1 | Restricted cash equivalents | Corporate bonds    
Assets    
Funds held for customers: 0  
Level 1 | Corporate bonds    
Assets    
Cash equivalents:   0
Short-term investments:   0
Funds held for customers: 0 0
Level 2    
Assets    
Cash equivalents: 0 47,879
Short-term investments: 601,535 634,742
Funds held for customers: 1,515,330 765,330
Total assets measured at fair value 2,205,947 1,447,951
Level 2 | Money market funds    
Assets    
Cash equivalents: 0 0
Level 2 | Corporate bonds    
Assets    
Short-term investments: 298,202  
Level 2 | Certificates of deposit    
Assets    
Cash equivalents:   2,578
Level 2 | U.S. treasury securities    
Assets    
Cash equivalents:   0
Short-term investments: 180,983 0
Funds held for customers: 342,041 0
Liabilities    
Contingent consideration   0
Total liabilities measured at fair value   0
Level 2 | Asset-backed securities    
Assets    
Short-term investments: 59,363 51,193
Funds held for customers: 116,475 70,661
Level 2 | Certificates of deposit    
Assets    
Short-term investments: 38,370 46,099
Funds held for customers: 119,616 233,291
Level 2 | U.S. agency securities    
Assets    
Short-term investments: 24,617 57,967
Funds held for customers:   27,458
Level 2 | Restricted cash equivalents    
Assets    
Funds held for customers: 89,082 0
Level 2 | Restricted cash equivalents | Money market funds    
Assets    
Funds held for customers: 0 0
Level 2 | Restricted cash equivalents | Corporate bonds    
Assets    
Funds held for customers: 89,082  
Level 2 | Corporate bonds    
Assets    
Cash equivalents:   45,301
Short-term investments:   479,483
Funds held for customers: 937,198 433,920
Level 3    
Assets    
Cash equivalents: 0 0
Short-term investments: 0 0
Funds held for customers: 0 0
Total assets measured at fair value 0 0
Level 3 | Money market funds    
Assets    
Cash equivalents: 0 0
Level 3 | Corporate bonds    
Assets    
Short-term investments: 0  
Level 3 | Certificates of deposit    
Assets    
Cash equivalents:   0
Level 3 | U.S. treasury securities    
Assets    
Cash equivalents:   0
Short-term investments: 0 0
Funds held for customers: 0 0
Liabilities    
Contingent consideration   (12,035)
Total liabilities measured at fair value   (12,035)
Level 3 | Asset-backed securities    
Assets    
Short-term investments: 0 0
Funds held for customers: 0 0
Level 3 | Certificates of deposit    
Assets    
Short-term investments: 0 0
Funds held for customers: 0 0
Level 3 | U.S. agency securities    
Assets    
Short-term investments: 0 0
Funds held for customers:   0
Level 3 | Restricted cash equivalents    
Assets    
Funds held for customers: 0 0
Level 3 | Restricted cash equivalents | Money market funds    
Assets    
Funds held for customers: 0 0
Level 3 | Restricted cash equivalents | Corporate bonds    
Assets    
Funds held for customers: 0  
Level 3 | Corporate bonds    
Assets    
Cash equivalents:   0
Short-term investments:   0
Funds held for customers: $ 0 $ 0
v3.24.2.u1
Fair Value Measurement - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2024
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, interest rate   0.00%  
Debt Instrument, Fair Value Estimated 489.1    
2025 Notes      
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]      
Debt instrument, aggregate principal amount $ 167.3   $ 1,150.0
Debt instrument, interest rate 0.00%   0.00%
Debt Instrument, Fair Value Estimated $ 154.9    
v3.24.2.u1
Short-Term Investments and Funds Held for Customers - Summary of Funds Held for Customers (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Short-term investments:    
Short-term investments $ 601,535 $ 1,043,110
Funds held for customers:    
Total funds held for customers 3,715,729 3,365,783
Less - income earned by the Company included in other current assets (10,822) (9,874)
Funds held for customers 3,704,907 3,355,909
Restricted cash    
Funds held for customers:    
Total funds held for customers 779,838 1,793,088
Restricted cash equivalents    
Funds held for customers:    
Total funds held for customers 1,408,691 713,469
Funds receivable    
Funds held for customers:    
Total funds held for customers 11,870 12,822
Available-for-sale debt securities    
Funds held for customers:    
Total funds held for customers $ 1,515,330 $ 846,404
v3.24.2.u1
Short-Term Investments And Funds Held For Customers - Schedule of Short-Term Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Short-term investments:    
Amortized cost $ 602,232 $ 1,046,830
Gross unrealized gains 208 257
Gross unrealized losses (905) (3,977)
Fair value 601,535 1,043,110
Funds held for customers:    
Amortized cost 1,516,348 847,012
Gross unrealized gains 36 25
Gross unrealized losses (1,054) (633)
Fair value 1,515,330 846,404
Certificates of deposit    
Funds held for customers:    
Amortized cost 119,615 233,290
Gross unrealized gains 1 1
Gross unrealized losses 0 0
Fair value 119,616 233,291
Corporate bonds    
Short-term investments:    
Amortized cost 298,628 481,658
Gross unrealized gains 140 207
Gross unrealized losses (566) (2,382)
Fair value 298,202 479,483
Funds held for customers:    
Amortized cost 937,989 433,936
Gross unrealized gains 23 18
Gross unrealized losses (814) (34)
Fair value 937,198 433,920
U.S. treasury securities    
Short-term investments:    
Amortized cost 181,225 409,586
Gross unrealized gains 0 42
Gross unrealized losses (242) (1,260)
Fair value 180,983 408,368
Funds held for customers:    
Amortized cost 342,202 81,309
Gross unrealized gains 1 1
Gross unrealized losses (162) (236)
Fair value 342,041 81,074
Asset-backed securities    
Short-term investments:    
Amortized cost 59,340 51,321
Gross unrealized gains 68 8
Gross unrealized losses (45) (136)
Fair value 59,363 51,193
Funds held for customers:    
Amortized cost 116,542 70,993
Gross unrealized gains 11 0
Gross unrealized losses (78) (332)
Fair value 116,475 70,661
Certificates of deposit    
Short-term investments:    
Amortized cost 38,370 46,099
Gross unrealized gains 0 0
Gross unrealized losses 0 0
Fair value 38,370 46,099
U.S. agency securities    
Short-term investments:    
Amortized cost 24,669 58,166
Gross unrealized gains 0 0
Gross unrealized losses (52) (199)
Fair value $ 24,617 57,967
Funds held for customers:    
Amortized cost   27,484
Gross unrealized gains   5
Gross unrealized losses   (31)
Fair value   $ 27,458
v3.24.2.u1
Short-Term Investments And Funds Held For Customers - Additional Information (Details)
 12 Months Ended
Jun. 30, 2024
USD ($)
position
Jun. 30, 2023
USD ($)
Jun. 30, 2022
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 Enumeration] Fair value Fair value  
Accrued interest receivable $ 4,900,000 $ 4,300,000  
Amortized cost 1,516,348,000 847,012,000  
Fair value $ 1,515,330,000 846,404,000  
Number of unrealized loss investment positions | position 340    
Number of investment positions | position 580    
Short-term investments realized gains or losses $ 0 0 $ 0
Accrued Interest Receivable      
Schedule Of Available For Sale Securities [Line Items]      
Amortized cost 6,800,000 6,900,000  
Fair value $ 6,800,000 $ 6,900,000  
v3.24.2.u1
Short-Term Investments and Funds Held for Customers - Summary of Fair Value of Available-for-Sale Debt Securities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]    
Due within 1 year $ 1,699,009 $ 1,543,379
Due in 1 year through 5 years 409,309 346,135
Due in 5 year through 10 years 8,547 0
Total $ 2,116,865 $ 1,889,514
v3.24.2.u1
Short-Term Investments and Funds Held for Customers - Summary of Gross Unrealized Losses And Fair Values (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Short-term investments:    
Fair value, less than 12 months $ 331,239 $ 506,499
Unrealized losses, less than 12 months (580) (2,699)
Fair value, 12 months or longer 91,710 100,182
Unrealized losses, 12 months or longer (325) (1,278)
Fair value 422,949 606,681
Unrealized losses (905) (3,977)
Funds held for customers:    
Unrealized losses, continuous unrealized loss position, less than 12 months 902,509 191,040
Unrealized losses, less than 12 months (1,052) (559)
Fair value, 12 months or longer 5,546 11,533
Unrealized losses, 12 months or longer (2) (74)
Fair value 908,055 202,573
Unrealized losses (1,054) (633)
Corporate bonds    
Short-term investments:    
Fair value, less than 12 months 130,469 213,373
Unrealized losses, less than 12 months (333) (1,421)
Fair value, 12 months or longer 60,576 83,189
Unrealized losses, 12 months or longer (232) (961)
Fair value 191,045 296,562
Unrealized losses (565) (2,382)
Funds held for customers:    
Unrealized losses, continuous unrealized loss position, less than 12 months 506,540 34,530
Unrealized losses, less than 12 months (814) (34)
Fair value, 12 months or longer 0 0
Unrealized losses, 12 months or longer 0 0
Fair value 506,540 34,530
Unrealized losses (814) (34)
U.S. treasury securities    
Short-term investments:    
Fair value, less than 12 months 152,004 199,440
Unrealized losses, less than 12 months (156) (976)
Fair value, 12 months or longer 28,979 14,286
Unrealized losses, 12 months or longer (86) (284)
Fair value 180,983 213,726
Unrealized losses (242) (1,260)
Funds held for customers:    
Unrealized losses, continuous unrealized loss position, less than 12 months 327,340 74,888
Unrealized losses, less than 12 months (162) (236)
Fair value, 12 months or longer 0 0
Unrealized losses, 12 months or longer 0 0
Fair value 327,340 74,888
Unrealized losses (162) (236)
Asset-backed securities    
Short-term investments:    
Fair value, less than 12 months 24,149 35,719
Unrealized losses, less than 12 months (39) (103)
Fair value, 12 months or longer 2,155 2,707
Unrealized losses, 12 months or longer (7) (33)
Fair value 26,304 38,426
Unrealized losses (46) (136)
Funds held for customers:    
Unrealized losses, continuous unrealized loss position, less than 12 months 68,629 59,128
Unrealized losses, less than 12 months (76) (258)
Fair value, 12 months or longer 5,546 11,533
Unrealized losses, 12 months or longer (2) (74)
Fair value 74,175 70,661
Unrealized losses (78) (332)
U.S. agency securities    
Short-term investments:    
Fair value, less than 12 months 24,617 57,967
Unrealized losses, less than 12 months (52) (199)
Fair value, 12 months or longer 0 0
Unrealized losses, 12 months or longer 0 0
Fair value 24,617 57,967
Unrealized losses $ (52) (199)
Funds held for customers:    
Unrealized losses, continuous unrealized loss position, less than 12 months   22,494
Unrealized losses, less than 12 months   (31)
Fair value, 12 months or longer   0
Unrealized losses, 12 months or longer   0
Fair value   22,494
Unrealized losses   $ (31)
v3.24.2.u1
Acquired Card Receivables - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Acquired Card Receivables [Abstract]    
Acquired card receivable as collateral $ 189.7  
Authorized transactions but not cleared $ 27.2  
Grace period to payment on acquired card receivables 5 days  
Card receivables acquired during the period $ 17,600.0 $ 13,200.0
v3.24.2.u1
Acquired Card Receivables - Summary of Acquired Card Receivables by Class (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Acquired Card Receivables [Line Items]    
Total $ 718,099 $ 474,148
Current and less than 30 days past due    
Acquired Card Receivables [Line Items]    
Total 706,026 463,704
30 ~ 59 days past due    
Acquired Card Receivables [Line Items]    
Total 4,277 2,507
60 ~ 89 days past due    
Acquired Card Receivables [Line Items]    
Total 3,393 4,544
90 ~ 119 days past due    
Acquired Card Receivables [Line Items]    
Total 4,093 3,196
Over 120 days past due    
Acquired Card Receivables [Line Items]    
Total $ 310 $ 197
v3.24.2.u1
Acquired Card Receivables - Summary of Change in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Allowance For Credit Losses [Roll Forward]    
Balance, beginning $ 15,498 $ 5,414
Initial allowance for expected credit losses on purchased card receivables with credit deterioration 0 10
Provision for expected credit losses 52,327 32,015
Charge-off amounts (51,805) (24,120)
Recoveries collected 4,863 2,179
Balance, ending $ 20,883 $ 15,498
v3.24.2.u1
Loans Held For Investment - Summary of Loans Held For Investment (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Receivables [Abstract]    
Unpaid principal balance $ 44,491 $ 1,579
Less: Discount at loan purchase, net of amortization (1,120) (47)
Less: Allowance for expected credit losses (4,700) 0
Loans held for investment, net $ 38,671 $ 1,532
v3.24.2.u1
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 154,848 $ 126,587
Less: accumulated depreciation and amortization (66,814) (45,023)
Property and equipment, net 88,034 81,564
Software and equipment    
Property Plant And Equipment [Line Items]    
Property and equipment, gross 20,802 20,971
Capitalized software    
Property Plant And Equipment [Line Items]    
Property and equipment, gross 81,582 53,950
Furniture and fixtures    
Property Plant And Equipment [Line Items]    
Property and equipment, gross 13,361 12,598
Leasehold improvements    
Property Plant And Equipment [Line Items]    
Property and equipment, gross $ 39,103 $ 39,068
v3.24.2.u1
Property and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Property, Plant and Equipment [Abstract]      
Depreciation and amortization $ 23.2 $ 15.5 $ 11.5
Unamortized capitalized software cost $ 57.5 $ 42.7  
v3.24.2.u1
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Goodwill [Roll Forward]    
Balance, beginning $ 2,396,509 $ 2,362,893
Addition related to acquisition during the period 0 33,441
Measurement period adjustments 0 175
Balance, ending $ 2,396,509 $ 2,396,509
v3.24.2.u1
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 523,269 $ 523,269
Accumulated Amortization (241,798) (161,842)
Net Carrying Amount 281,471 361,427
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 259,269 259,269
Accumulated Amortization (78,410) (52,483)
Net Carrying Amount $ 180,859 $ 206,786
Weighted average remaining useful life (In years) 7 years 8 years
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 215,958 $ 215,958
Accumulated Amortization (116,126) (77,178)
Net Carrying Amount $ 99,832 $ 138,780
Weighted average remaining useful life (In years) 2 years 10 months 24 days 3 years 9 months 18 days
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 48,042 $ 48,042
Accumulated Amortization (47,262) (32,181)
Net Carrying Amount $ 780 $ 15,861
Weighted average remaining useful life (In years) 2 months 12 days 1 year
v3.24.2.u1
Goodwill and Intangible Assets - Schedule of Amortization of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets $ 79,956 $ 80,205 $ 75,977
Cost of revenue      
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets 38,948 38,269  
Sales and marketing      
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets $ 41,008 $ 41,936  
v3.24.2.u1
Goodwill and Intangible Assets - Schedule of Future Amortization of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 $ 61,234  
2026 59,570  
2027 56,909  
2028 26,606  
2029 25,927  
Thereafter 51,225  
Net Carrying Amount $ 281,471 $ 361,427
v3.24.2.u1
Debt and Borrowings - Schedule of Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Debt Instrument [Line Items]    
Less: unamortized debt issuance costs $ (8,323) $ (20,218)
Convertible senior notes, net 733,991 1,704,782
Net carrying amount 914,000 1,839,828
Line of Credit    
Debt Instrument [Line Items]    
Borrowing from revolving credit facility 0 135,046
Convertible senior notes: 180,009 0
Unamortized debt issuance costs 600 200
2027 Notes    
Debt Instrument [Line Items]    
Convertible senior notes: 575,000 575,000
Net carrying amount 567,504 564,812
2025 Notes    
Debt Instrument [Line Items]    
Convertible senior notes: 167,314 1,150,000
Net carrying amount $ 166,487 $ 1,139,970
v3.24.2.u1
Debt and Borrowings - Additional Information (Details)
$ / shares in Units, shares in Millions
 12 Months Ended
May 29, 2024
USD ($)
shares
Mar. 06, 2024
USD ($)
Sep. 24, 2021
USD ($)
$ / shares
shares
Nov. 30, 2020
USD ($)
$ / shares
Jun. 30, 2024
USD ($)
d
TradingDay
Tradingday
$ / shares
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Debt Instrument [Line Items]              
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs         $ 0 $ 0 $ 560,075,000
Sinking fund         $ 0    
Number of business day period for conversion of Notes | d         5    
Payments for repurchase of convertible debt         $ 933,187,000 0 0
Gain on debt extinguishment and change on mark to market derivatives associated with 2025 Notes repurchase and capped calls         $ 45,272,000 0 0
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration]         Other income (expense), net    
Gain on debt extinguishment         $ 46,654,000 $ 0 $ 0
2027 Notes              
Debt Instrument [Line Items]              
Debt instrument, aggregate principal amount     $ 575,000,000.0   575,000,000.0    
Debt instrument, interest rate     0.00%        
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 $ 167,300,000    
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 $ 1,000    
Initial conversion price per share | $ / shares       $ 160.88      
Notes issued upon conversion (shares) | shares 1.0            
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%    
Repurchased face amount $ 234,500,000 $ 748,200,000          
Payments for repurchase of convertible debt 221,600,000 711,000,000.0          
Repurchased amount 233,200,000 743,600,000          
Unamortized debt issuance costs 1,200,000 4,600,000          
Gain on debt extinguishment and change on mark to market derivatives associated with 2025 Notes repurchase and capped calls   32,600,000          
Gain on debt extinguishment $ 11,000,000.0 35,700,000          
Loss on mark to market derivatives   $ 3,200,000          
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    
v3.24.2.u1
Debt and Borrowings - Schedule of Notes (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Liability component:    
Net carrying amount $ 914,000 $ 1,839,828
2027 Notes    
Liability component:    
Principal 575,000 575,000
Less: unamortized debt issuance costs (7,496) (10,188)
Net carrying amount 567,504 564,812
2025 Notes    
Liability component:    
Principal 167,314 1,150,000
Less: unamortized debt issuance costs (827) (10,030)
Net carrying amount $ 166,487 $ 1,139,970
v3.24.2.u1
Debt and Borrowings - Credit Agreements - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands, shares in Millions
 12 Months Ended
May 29, 2024
Mar. 06, 2024
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Debt Instrument [Line Items]          
Amortization of debt issuance costs     $ 6,238 $ 6,964 $ 4,777
Weighted-average remaining life     2 years 6 months    
Proceeds from unwind of capped calls $ 1,200 $ 10,300 $ 11,442 0 $ 0
Gain on mark to market derivatives   $ 1,700      
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]     Other income (expense), net    
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    
Cap calls cover subject to anti-dilution adjustments to common stock (shares)     1.4    
2025 Notes          
Debt Instrument [Line Items]          
Effective interest rate     0.36%    
2025 and 2027 Senior Notes Member          
Debt Instrument [Line Items]          
Amortization of debt issuance costs     $ 6,000 $ 6,800  
Debt instrument, aggregate principal amount if converted     700,000    
Cost of capped call     $ 125,800    
v3.24.2.u1
Debt and Borrowings - Revolving Credit Facility- Additional Information (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Mar. 03, 2023
Mar. 31, 2024
Mar. 31, 2021
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Debt Instrument [Line Items]            
Proceeds from line of credit borrowings       $ 45,000 $ 60,000 $ 37,500
2021 Revolving Credit Agreement            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity     $ 300,000      
Line of credit facility, minimum utilization     $ 180,000      
Line of credit, minimum utilization percentage     60.00%      
Proceeds from line of credit borrowings   $ 45,000        
Borrowings from credit facilities, net       $ 180,000    
Line of credit facility, unused capacity, commitment fee percentage     0.50%      
Debt instrument basis spread on variable rate 2.65%          
Benchmark adjustment rate 0.28%          
Debt instrument floor rate 0.25%          
Remaining weighted-average amortization period       1 year 10 months 24 days    
Effective interest rate       8.28%    
v3.24.2.u1
Stockholders' Equity - Equity Incentive Plans (Details) - shares
 12 Months Ended
Nov. 26, 2019
Jun. 30, 2024
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   18,041,434
v3.24.2.u1
Stockholders' Equity - Equity Awards Assumed in Acquisitions (Details)
 12 Months Ended
Jun. 30, 2024
shares
Invoice2go, Inc.  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Equity-based awards granted (shares) 0
v3.24.2.u1
Stockholders' Equity - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares
shares in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Number of Shares Outstanding      
Beginning balance (in shares) 4,184    
Granted (shares) 3,452    
Vested (shares) (2,048)    
Forfeited (shares) (987)    
Ending balance (in shares) 4,600 4,184  
Weighted average grant date fair value      
Beginning balance (dollars per share) $ 140.41    
Granted (dollars per share) 90.90 $ 120.25 $ 202.79
Vested (dollars per share) 136.74    
Forfeited (dollars per share) 124.82    
Ending balance (dollars per share) $ 108.24 $ 140.41  
v3.24.2.u1
Stockholders' Equity - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Granted (dollars per share) $ 90.90 $ 120.25 $ 202.79
Fair value of shares vested $ 145.1 $ 197.3 $ 118.9
Minimum      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting term 1 year    
Maximum      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting term 4 years    
v3.24.2.u1
Stockholder's Equity - Performance-based RSUs (Details) - Performance-based awards
 12 Months Ended
Jun. 30, 2024
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Granted (shares) | shares 102,411
Vest over requisite service period 3 years
Granted (dollars per share) | $ / shares $ 102.04
v3.24.2.u1
Stockholders' Equity - Stock Based Compensation Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation $ 256,807 $ 322,840 $ 201,562
Unamortized stock-based compensation expense 463,272    
Restricted Stock Units (RSUs)      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation 217,696 251,456 134,222
Unamortized stock-based compensation expense $ 434,623    
Weighted-average period over which unrecognized compensation cost is expected to be recognized 2 years 7 months 6 days    
Stock options      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation $ 10,719 37,882 55,667
Unamortized stock-based compensation expense $ 3,989    
Weighted-average period over which unrecognized compensation cost is expected to be recognized 1 year 1 month 6 days    
Performance-based awards      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation $ 13,351 17,914 0
Unamortized stock-based compensation expense $ 13,411    
Weighted-average period over which unrecognized compensation cost is expected to be recognized 3 years 3 months 18 days    
Employee stock purchase plan      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation $ 9,129 11,280 8,918
Unamortized stock-based compensation expense $ 4,143    
Weighted-average period over which unrecognized compensation cost is expected to be recognized 7 months 6 days    
Market-based RSUs      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total stock-based compensation $ 5,912 $ 4,308 $ 2,755
Unamortized stock-based compensation expense $ 7,106    
Weighted-average period over which unrecognized compensation cost is expected to be recognized 1 year 4 months 24 days    
v3.24.2.u1
Stockholders' Equity - Summary of Stock Based Compensation Cost from Stock Options, RSUs and ESPP (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total amount charged to operating loss $ 248,375 $ 313,703 $ 197,157
Property and equipment (capitalized internal-use software) and other 8,432 9,137 4,405
Total stock-based compensation 256,807 322,840 201,562
Stock-based compensation expense   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 operating loss 1,831 188 0
Cost of revenue - service costs      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total amount charged to operating loss 9,309 9,111 5,144
Research and development      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total amount charged to operating loss 103,382 93,364 54,907
Sales and marketing      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total amount charged to operating loss 49,070 130,421 60,237
General and administrative      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total amount charged to operating loss 81,209 80,619 76,869
Restructuring      
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]      
Total amount charged to operating loss $ 3,574 $ 0 $ 0
v3.24.2.u1
Stockholder's Equity - Share Repurchase Program (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jan. 31, 2023
Equity [Abstract]      
Share repurchase program, authorized amount     $ 300,000
Repurchased and retired shares (in shares) 2,882,634 1,077,445  
Repurchased and retired shares, value $ 211,902 $ 87,615  
v3.24.2.u1
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Other Income, Nonoperating [Abstract]      
Interest income $ 122,298 $ 91,279 $ 6,691
Gain on debt extinguishment and change on mark to market derivatives associated with 2025 Notes repurchase and capped calls 45,272 0 0
Lower of cost or market adjustment on card receivables sold and held for sale 0 (1,545) (11,460)
Interest expense (19,182) (15,203) (9,419)
Other (543) (1,675) 327
Total other income (expense), net $ 147,845 $ 72,856 $ (13,861)
v3.24.2.u1
Income Taxes - Components of Loss before (Benefit from) Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]      
Domestic $ 5,312 $ (199,452) $ (304,508)
Foreign (31,631) (23,465) (26,171)
Loss before provision for (benefit from) income taxes $ (26,319) $ (222,917) $ (330,679)
v3.24.2.u1
Income Taxes - Components of (Benefit from) Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Current:      
Federal $ 1,650 $ 572 $ (247)
State 1,251 1,583 0
Foreign 19 14 0
Total current 2,920 2,169 (247)
Deferred:      
Federal (262) (995) (1,115)
State (99) (366) (2,956)
Total deferred (361) (1,361) (4,071)
Provision for (benefit from) income taxes $ 2,559 $ 808 $ (4,318)
v3.24.2.u1
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, 2024
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]      
Expected benefit at U.S. federal statutory rate $ (5,528) $ (46,813) $ (69,443)
State income taxes, net of federal benefit 9,134 8,087 13,509
Stock-based compensation 24,300 4,253 (93,705)
Research and development tax credits (24,039) (19,974) (22,061)
Change in valuation allowance related to acquisition 0 (126) (2,831)
Change in valuation allowance 4,943 48,321 174,477
Restructuring (13,769) 0 0
Unrecognized tax benefit (628) (390) (10,975)
Acquisition-related costs 0 0 553
Foreign rate differential 6,658 4,942 5,496
Other 1,488 2,508 662
Provision for (benefit from) income taxes $ 2,559 $ 808 $ (4,318)
v3.24.2.u1
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Jun. 30, 2023
Deferred tax assets:    
Accruals and reserves $ 13,966 $ 12,537
Capitalized research and development 120,882 75,694
Deferred revenue 1,084 1,084
Stock-based compensation 17,093 24,998
Net operating loss carryforwards 360,592 379,758
Research and development credits 85,910 62,299
Accrued rewards 40 1,855
Operating lease liabilities 19,139 21,616
Other 598 1,257
Total deferred tax assets before valuation allowance 619,304 581,098
Valuation allowance (494,424) (479,449)
Deferred tax assets 124,880 101,649
Deferred tax liabilities:    
Deferred contract costs (5,868) (4,772)
Property and equipment (15,853) (13,078)
Intangible assets (68,218) (67,455)
Operating right of use assets (14,992) (17,155)
Other reserve (20,399) 0
Total deferred tax liabilities (125,330) (102,460)
Net deferred tax (liabilities) $ (450) $ (811)
v3.24.2.u1
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2021
Income Taxes [Line Items]        
Change in valuation allowance $ 15,000 $ 95,300 $ 276,300  
Federal and state net operating loss carryforwards expiration year 2024      
Unrecognized tax benefits related to federal and California R&D credits $ 35,128 $ 23,300 $ 16,724 $ 22,185
Federal Tax        
Income Taxes [Line Items]        
Net operating loss carryforwards 1,200,000      
Research and development tax credit carryforwards 76,500      
State Tax        
Income Taxes [Line Items]        
Net operating loss carryforwards 1,000,000      
Research and development tax credit carryforwards 53,100      
Foreign Tax Authority        
Income Taxes [Line Items]        
Net operating loss carryforwards $ 134,900      
v3.24.2.u1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at the beginning of the year $ 23,300 $ 16,724 $ 22,185
Add:      
Tax positions related to the current year 9,134 6,642 7,354
Increase from business combination 0 0 160
Tax positions related to the prior year 2,714 226 0
Less:      
Tax positions related to the prior year 0 0 (12,761)
Statute of limitations lapse (20) (292) (214)
Balance at the end of the year $ 35,128 $ 23,300 $ 16,724
v3.24.2.u1
Leases - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Leases [Abstract]      
Weighted average remaining term 6 years 6 months    
Weighted average discount rate 5.00%    
Lease expense paid during period $ 13.9 $ 14.9 $ 13.8
Right-of-use assets obtained in exchange for new operating lease liabilities $ 0.0 $ 2.0 $ 5.3
v3.24.2.u1
Leases - Components of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Lease, Cost [Abstract]      
Operating lease expense $ 12,877 $ 14,081 $ 12,983
Variable lease expense, net of credit 2,461 2,251 2,909
Sublease income (581) (586) (712)
Total lease cost $ 14,757 $ 15,746 $ 15,180
v3.24.2.u1
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 13,425
2026 13,292
2027 13,226
2028 13,590
2029 13,974
Thereafter 21,945
Gross lease payments 89,452
Less - present value adjustments (13,614)
Total operating lease liabilities, net $ 75,838
v3.24.2.u1
Commitments and Contingencies - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other accruals and current liabilities Other accruals and current liabilities
Operating lease liability, current $ 13,000 $ 14,100
Operating lease liability, noncurrent $ 62,847 $ 72,477
Multi-year agreements expiration year 2029  
Authorized transactions but not cleared $ 27,200  
Unused credit available $ 2,800,000  
v3.24.2.u1
Commitments and Contingencies - Schedule of Future Payments Under Other Agreements (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 29,468
2026 15,051
2027 9,414
2028 5,491
2029 4,250
Total $ 63,674
v3.24.2.u1
Restructuring (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Restructuring and Related Activities [Abstract]      
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Restructuring expense    
Restructuring expense $ 27,587 $ 0 $ 0
Restructuring expenses, stock-based compensation expense $ 3,600    
v3.24.2.u1
Restructuring - Summary of Restructuring Liabilities (Details)
$ in Thousands
 12 Months Ended
Jun. 30, 2024
USD ($)
Restructuring Reserve [Roll Forward]  
Beginning balance $ 0
Charges 24,002
Cash payments (23,675)
Ending balance 327
Severance and termination benefits  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 22,817
Cash payments (22,492)
Ending balance 325
Contract termination  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 480
Cash payments (480)
Ending balance 0
Other  
Restructuring Reserve [Roll Forward]  
Beginning balance 0
Charges 705
Cash payments (703)
Ending balance $ 2
v3.24.2.u1
Net Loss Per Share Attributable To Common Stockholders - Summary of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share Calculation (Details) - shares
shares in Thousands
 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Potentially dilutive securities excluded from calculation of diluted net loss per share (in shares) 9,067 15,306 15,671
Employee stock purchase plan      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Potentially dilutive securities excluded from calculation of diluted net loss per share (in shares) 6,641 6,772 7,137
Convertible senior notes      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Potentially dilutive securities excluded from calculation of diluted net loss per share (in shares) 2,426 8,534 8,534
v3.24.2.u1
Net Loss Per Share Attributable To Common Stockholders - Additional Information (Details)
shares in Millions
 12 Months Ended
Jun. 30, 2024
shares
2025 Notes | Maximum  
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]  
Number of shares subject to adjustment 3.6
v3.24.2.u1
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2020-06 [Member]