Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 11, 2023 | Dec. 31, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-37651 | ||
Entity Registrant Name | Atlassian Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 88-3940934 | ||
Entity Address, Address Line One | 350 Bush Street | ||
Entity Address, Address Line Two | 13th Floor | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94104 | ||
City Area Code | 415 | ||
Local Phone Number | 701-1110 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.00001 per share | ||
Trading Symbol | TEAM | ||
Security Exchange Name | NASDAQ | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 19,100,000 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement relating to its 2023 Annual Meeting of Stockholders (the “Proxy Statement”), to be filed within 120 days of the registrant’s fiscal year ended June 30, 2023, are incorporated by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Except with | ||
Entity Central Index Key | 0001650372 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | San Francisco, California | ||
Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 153,294,929 | ||
Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 104,085,737 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,102,550 | $ 1,385,265 |
Marketable securities | 10,000 | 73,294 |
Accounts receivable, net | 477,678 | 308,127 |
Assets held for sale | 0 | 60,265 |
Prepaid expenses and other current assets | 146,136 | 70,002 |
Total current assets | 2,736,364 | 1,896,953 |
Non-current assets: | ||
Property and equipment, net | 81,402 | 100,662 |
Operating lease right-of-use assets | 184,195 | 277,276 |
Strategic investments | 225,538 | 159,064 |
Intangible assets, net | 69,072 | 100,840 |
Goodwill | 727,211 | 722,838 |
Deferred tax assets | 9,945 | 10,335 |
Other non-current assets | 73,052 | 58,862 |
Total assets | 4,106,779 | 3,326,830 |
Current liabilities: | ||
Accounts payable | 159,293 | 81,220 |
Accrued expenses and other current liabilities | 423,131 | 406,139 |
Deferred revenue, current portion | 1,362,736 | 1,066,059 |
Operating lease liabilities, current portion | 44,930 | 40,638 |
Term loan facility, current portion | 37,500 | 0 |
Total current liabilities | 2,027,590 | 1,594,056 |
Non-current liabilities: | ||
Deferred revenue, net of current portion | 182,743 | 116,621 |
Operating lease liabilities, net of current portion | 237,835 | 274,434 |
Term loan facility, net of current portion | 962,093 | 999,419 |
Deferred tax liabilities | 10,669 | 312 |
Other non-current liabilities | 31,177 | 14,616 |
Total liabilities | 3,452,107 | 2,999,458 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Additional paid-in capital | 3,130,631 | 2,182,536 |
Accumulated other comprehensive income | 34,002 | 13,864 |
Accumulated deficit | (2,509,964) | (1,869,030) |
Total stockholders’ equity | 654,672 | 327,372 |
Total liabilities and stockholders’ equity | 4,106,779 | 3,326,830 |
Class A | ||
Stockholders’ equity | ||
Common stock, value issued | $ 2 | $ 1 |
Common stock, shares issued (in shares) | 152,442,673 | 144,891,749 |
Common stock, shares outstanding (in shares) | 152,442,673 | 144,891,749 |
Class B | ||
Stockholders’ equity | ||
Common stock, value issued | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 105,124,103 | 110,035,649 |
Common stock, shares outstanding (in shares) | 105,124,103 | 110,035,649 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 152,442,673 | 144,891,749 |
Common stock, shares outstanding (in shares) | 152,442,673 | 144,891,749 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 230,000,000 | 230,000,000 |
Common stock, shares issued (in shares) | 105,124,103 | 110,035,649 |
Common stock, shares outstanding (in shares) | 105,124,103 | 110,035,649 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Revenues: | ||||
Total revenues | $ 3,534,647 | $ 2,802,882 | $ 2,089,132 | |
Cost of revenues | [1],[2] | 633,765 | 452,914 | 331,850 |
Gross profit | 2,900,882 | 2,349,968 | 1,757,282 | |
Operating expenses: | ||||
Research and development | [1],[2] | 1,869,881 | 1,291,877 | 932,994 |
Marketing and sales | [1],[2] | 769,861 | 535,815 | 371,644 |
General and administrative | [1] | 606,362 | 452,193 | 311,238 |
Total operating expenses | 3,246,104 | 2,279,885 | 1,615,876 | |
Operating income (loss) | (345,222) | 70,083 | 141,406 | |
Other income (expense), net | 14,501 | (501,839) | (570,393) | |
Interest income | 49,732 | 2,284 | 7,158 | |
Interest expense | (30,147) | (41,466) | (92,586) | |
Loss before provision for income taxes | (311,136) | (470,938) | (514,415) | |
Provision for income taxes | (175,625) | (48,572) | (64,564) | |
Net loss | $ (486,761) | $ (519,510) | $ (578,979) | |
Net loss per share attributable to Class A and Class B common stockholders: | ||||
Basic (in dollars per share) | $ (1.90) | $ (2.05) | $ (2.32) | |
Diluted (in dollars per share) | $ (1.90) | $ (2.05) | $ (2.32) | |
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders: | ||||
Basic (in shares) | 256,307,000 | 253,312,000 | 249,679,000 | |
Diluted (in shares) | 256,307,000 | 253,312,000 | 249,679,000 | |
Subscription | ||||
Revenues: | ||||
Total revenues | $ 2,922,576 | $ 2,096,706 | $ 1,324,064 | |
Maintenance | ||||
Revenues: | ||||
Total revenues | 399,738 | 495,077 | 522,971 | |
Other | ||||
Revenues: | ||||
Total revenues | $ 212,333 | $ 211,099 | $ 242,097 | |
[1] (1) Amounts include share-based payment expense, as follows: Cost of revenues $ 63,913 $ 31,358 $ 19,879 Research and development 604,301 328,978 220,294 Marketing and sales 131,739 76,209 44,754 General and administrative 148,134 88,258 55,890 (2) Amounts include amortization of acquired intangible assets, as follows: Cost of revenues $ 22,853 $ 22,694 $ 22,394 Research and development 374 374 168 Marketing and sales 9,900 9,330 9,192 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amortization expense for intangible assets | $ 33,100 | $ 32,400 | $ 31,800 |
Cost of revenues | |||
Stock based compensation expense | 63,913 | 31,358 | 19,879 |
Amortization expense for intangible assets | 22,853 | 22,694 | 22,394 |
Research and development | |||
Stock based compensation expense | 604,301 | 328,978 | 220,294 |
Amortization expense for intangible assets | 374 | 374 | 168 |
Marketing and sales | |||
Stock based compensation expense | 131,739 | 76,209 | 44,754 |
Amortization expense for intangible assets | 9,900 | 9,330 | 9,192 |
General and administrative | |||
Stock based compensation expense | $ 148,134 | $ 88,258 | $ 55,890 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (486,761) | $ (519,510) | $ (578,979) |
Other comprehensive income (loss), net of reclassification adjustments: | |||
Foreign currency translation adjustment | (5,283) | (15,604) | 4,840 |
Net change in unrealized gains (losses) on marketable and privately held debt securities | 1,753 | (3,458) | (6,844) |
Net gain (loss) on cash flow hedging derivative instruments | 23,668 | 27,438 | (16,008) |
Other comprehensive income (loss), before tax | 20,138 | 8,376 | (18,012) |
Income tax effect | 0 | 134 | 921 |
Other comprehensive income (loss), net of tax | 20,138 | 8,510 | (17,091) |
Total comprehensive loss, net of tax | $ (466,623) | $ (511,000) | $ (596,070) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Class A | Class B | Common Stock Class A | Common Stock Class B | Additional paid in capital | Accumulated other comprehensive income | Accumulated Deficit |
Shares, beginning balance (in shares) at Jun. 30, 2020 | 127,686,000 | 119,762,000 | ||||||
Beginning balance at Jun. 30, 2020 | $ 566,643 | $ 1 | $ 1 | $ 1,314,737 | $ 22,445 | $ (770,541) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock issued under employee stock plans (in shares) | 4,200,000 | |||||||
Common stock issued | 1,163 | 1,163 | ||||||
Conversion from Class B shares to Class A Common Stock (in shares) | 5,152,000 | (5,152,000) | ||||||
Stock-based compensation | 341,003 | 341,003 | ||||||
Common stock issued related to business combination | 523 | 523 | ||||||
Other comprehensive loss, net of tax | (17,091) | (17,091) | ||||||
Net loss | (578,979) | $ (308,953) | $ (270,026) | (578,979) | ||||
Shares, ending balance (in shares) at Jun. 30, 2021 | 137,038,000 | 114,610,000 | ||||||
Ending balance at Jun. 30, 2021 | 313,262 | $ 1 | $ 1 | 1,657,426 | 5,354 | (1,349,520) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock issued under employee stock plans (in shares) | 3,208,000 | |||||||
Common stock issued | 32 | 32 | ||||||
Conversion from Class B shares to Class A Common Stock (in shares) | 4,574,000 | (4,574,000) | ||||||
Stock-based compensation | 525,078 | 525,078 | ||||||
Other comprehensive loss, net of tax | 8,510 | 8,510 | ||||||
Net loss | (519,510) | $ (290,290) | $ (229,220) | (519,510) | ||||
Shares, ending balance (in shares) at Jun. 30, 2022 | 144,891,749 | 110,035,649 | 144,820,000 | 110,036,000 | ||||
Ending balance at Jun. 30, 2022 | 327,372 | $ 1 | $ 1 | 2,182,536 | 13,864 | (1,869,030) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock issued under employee stock plans (in shares) | 3,684,000 | |||||||
Common stock issued | 9 | $ 1 | 8 | |||||
Conversion from Class B shares to Class A Common Stock (in shares) | 4,912,000 | (4,912,000) | ||||||
Stock-based compensation | 948,087 | 948,087 | ||||||
Repurchased of Class A Common Stock (in shares) | (979,000) | |||||||
Repurchases of Class A Common Stock | (154,173) | (154,173) | ||||||
Other comprehensive loss, net of tax | 20,138 | 20,138 | ||||||
Net loss | (486,761) | $ (283,907) | $ (202,854) | (486,761) | ||||
Shares, ending balance (in shares) at Jun. 30, 2023 | 152,442,673 | 105,124,103 | 152,437,000 | 105,124,000 | ||||
Ending balance at Jun. 30, 2023 | $ 654,672 | $ 2 | $ 1 | $ 3,130,631 | $ 34,002 | $ (2,509,964) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (486,761) | $ (519,510) | $ (578,979) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 60,923 | 51,739 | 55,950 |
Stock-based compensation | 948,087 | 524,803 | 340,817 |
Impairment charges for leases and leasehold improvements | 61,098 | 0 | 7,526 |
Deferred income taxes | 10,613 | (2,002) | (8,860) |
Gain on a non-cash sale of a controlling interest of a subsidiary | (45,158) | 0 | 0 |
Net loss on exchange derivative and capped call transactions | 0 | 424,482 | 616,446 |
Amortization of debt discount and issuance cost | 471 | 27,051 | 86,572 |
Net loss (gain) on strategic investments | 19,407 | 72,663 | (48,080) |
Net foreign currency loss (gain) | (10,613) | (12,065) | 7,595 |
Other | 1,488 | 646 | 1,381 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (169,526) | (134,764) | (61,256) |
Prepaid expenses and other assets | (38,230) | (21,927) | (10,054) |
Accounts payable | 78,902 | 31,741 | 10,441 |
Accrued expenses and other liabilities | 74,611 | 93,250 | 76,090 |
Deferred revenue | 362,799 | 284,937 | 294,371 |
Net cash provided by operating activities | 868,111 | 821,044 | 789,960 |
Cash flows from investing activities: | |||
Business combinations, net of cash acquired | (5,775) | (19,411) | (91,769) |
Purchases of intangible assets | (160) | (4,018) | (1,800) |
Purchases of property and equipment | (25,652) | (70,583) | (31,520) |
Purchases of strategic investments | (19,450) | (111,668) | (10,250) |
Purchases of marketable securities and other investments | (24,800) | (21,003) | (109,181) |
Proceeds from maturities of marketable securities | 73,950 | 76,937 | 454,996 |
Proceeds from sales of marketable securities and strategic investments | 629 | 186,262 | 48,786 |
Net cash provided by (used in) investing activities | (1,258) | 36,516 | 259,262 |
Cash flows from financing activities: | |||
Proceeds from term loan facility | 0 | 1,000,000 | 0 |
Payment of issuance costs for debt | 0 | 0 | (4,445) |
Repayment of exchangeable senior notes | 0 | (1,548,686) | (1,803,244) |
Proceeds from settlement of capped call transactions | 0 | 135,497 | 203,093 |
Repurchases of Class A Common Stock | (150,006) | 0 | 0 |
Proceeds from other financing arrangements | 1,585 | 13,909 | 1,163 |
Net cash used in financing activities | (148,421) | (399,280) | (1,603,433) |
Effect of foreign exchange rate changes on cash and cash equivalents | (1,805) | (9,233) | 5,408 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 716,627 | 449,047 | (548,803) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,386,686 | 931,023 | 1,489,143 |
Net decrease (increase) in cash and cash equivalents included in assets held for sale | 602 | 6,616 | (9,317) |
Cash, cash equivalents, and restricted cash at end of period | 2,103,915 | 1,386,686 | 931,023 |
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | |||
Cash and cash equivalents | 1,385,265 | 919,227 | |
Restricted cash included in other non-current assets | 1,365 | 1,421 | 11,796 |
Total cash, cash equivalents, and restricted cash | 2,103,915 | 1,386,686 | 931,023 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid, net of refunds | 102,156 | 66,648 | 50,272 |
Interest paid, net | 28,493 | 13,310 | 6,498 |
Non-cash investing and financing activities: | |||
Purchase of property and equipment included in accrued expenses and other current liabilities | 844 | 10,740 | 2,440 |
Repurchases of Class A Common Stock included in accrued expenses and other current liabilities | 4,167 | 0 | 0 |
Transfers from property and equipment to assets held for sale | $ 0 | $ 0 | $ 35,123 |
Description of Business
Description of Business | 12 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Atlassian Corporation, a Delaware corporation, designs, develops, licenses, and maintains software and provisions software hosting services to help teams organize, discuss, and complete their work. Our primary products include Jira Software and Jira Work Management for planning and project management, Confluence for content creation and sharing, Trello for capturing and adding structure to fluid, fast-forming work for teams, Jira Service Management for team service, management, and support applications, Jira Align for enterprise agile planning, and Bitbucket for code sharing and management. The Company is the successor parent entity to Atlassian Corporation Plc, which was a public company limited by shares, incorporated under the laws of England and Wales. The Company’s fiscal year ends on June 30 of each year. References to fiscal year 2023, for example, refer to the fiscal year ended June 30, 2023. On September 30, 2022, Atlassian Corporation Plc completed a redomestication, which was approved by the shareholders of Atlassian Corporation Plc, resulting in Atlassian Corporation becoming our publicly traded parent company (the “U.S. Domestication”). Atlassian Corporation Plc’s stockholders and the High Court of Justice of England and Wales approved the scheme of arrangement effecting the U.S. Domestication. Effective after the close of market trading on September 30, 2022, all issued and outstanding ordinary shares of Atlassian Corporation Plc were exchanged on a one-for-one basis for newly issued shares of corresponding common stock of Atlassian Corporation, and all issued and outstanding equity awards of Atlassian Corporation Plc were assumed by Atlassian Corporation and were converted into rights to acquire Atlassian Corporation shares of Class A Common Stock on the same terms. The Class A Common Stock of Atlassian Corporation began trading on October 3, 2022 (the first trading day following the U.S. Domestication), and the Company’s trading symbol on The Nasdaq Global Select Market remained unchanged as “TEAM.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Preparation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These principles are established primarily by the Financial Accounting Standards Board (“FASB”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions in the Company’s consolidated financial statements. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Such management estimates and assumptions include, but are not limited to, the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations; useful lives and impairment of long-lived assets, valuation of intangible assets, fair value measurement of financial instruments and income taxes. Actual results could differ materially from these estimates. Segment The Company operates as a single operating segment. An operating segment is defined as a component of an entity for which discrete financial information is available and whose results of operations are regularly reviewed by the chief operating decision maker (“CODM”). The Company’s CODMs are its Co-Chief Executive Officers, who review its results of operations to make decisions about allocating resources and assessing performance based on consolidated financial information. Accordingly, the Company has determined it operates as a single operating and reportable segment. Foreign Currency The Company’s consolidated financial statements are presented using the U.S. dollar, which is its reporting currency. The functional currency for certain of the Company’s foreign subsidiaries is the U.S. dollar, while others use local currencies. The Company translates the foreign functional currency financial statements to U.S. dollars for those entities that do not have the U.S. dollar as their functional currency using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenues and expenses, and the historical exchange rates for equity transactions. The effects of foreign currency translation adjustments are recorded in accumulated other comprehensive income in the consolidated statements of comprehensive loss. Foreign currency transaction gains and losses are included in other income (expense), net on the consolidated statements of operations. Revenue from Contracts with Customers Policies, Estimates and Judgments Revenues are generally recognized upon the transfer of control of promised products or services provided to customers, reflecting the amount of consideration the Company expects to receive for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales and other similar taxes collected from customers, which are subsequently remitted to governmental authorities. Revenues are recognized upon the application of the following steps: 1. Identification of the contract or contracts with a customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of revenue when, or as, the performance obligation is satisfied. The timing of revenue recognition may differ from the timing of billing our customers. The Company receives payments from customers based on a billing schedule as established in its contracts. Contract assets are recognized when performance is completed in advance of billings. Deferred revenue is recorded when billings are in advance of performance under the contract. The Company’s revenue arrangements include standard warranty provisions that the products and services will perform and operate in all material respects with the applicable published specifications, the financial impacts of which have historically been and are expected to continue to be insignificant. The Company’s contracts do not include a significant financing component. Customer contracts often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require judgment. The Company allocates the transaction price for each customer contract to each performance obligation based on the relative SSP for each distinct performance obligation. Judgment is required in determining the SSP for each distinct performance obligation. The Company typically determines an SSP range for its products and services, which is reassessed on a periodic basis or when facts and circumstances change. In most cases, the Company is able to determine SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. In instances where performance obligations do not have observable standalone sales, the Company utilizes available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs to estimate the price that it would charge if the products and services were sold separately. Products are generally sold with a right of return and may include other credits or incentives, and, in certain instances, the Company may estimate customer usage of its services, which are accounted for as variable consideration when determining the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Variable consideration was not material for the periods presented. Recognition of Revenue Revenue recognized from contracts with customers is disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company reports revenues in three categories: (i) subscription, (ii) maintenance, and (iii) other. In addition, revenue is presented by geographic region and deployment option in Note 14, “ Revenue. ” Subscription Revenues Subscription revenues consist primarily of fees earned from subscription-based arrangements for providing customers the right to use the Company’s software in a cloud-based-infrastructure that the Company provides. The Company also sells on-premises term license agreements for its data center products, which are software licensed for a specified period, and includes support and maintenance service that is bundled with the license for the term of the license period. Subscription revenues are driven primarily by the number and size of active licenses, the type of product and the price of the licenses. Subscription-based arrangements generally have a contractual term of one Maintenance Revenues Maintenance revenues represent fees earned from providing customers with unspecified future updates, upgrades and enhancements and technical product support for perpetual license products on an if-and-when-available basis. Maintenance revenue is recognized ratably over the term of the support period. Other Revenues Other revenues primarily include perpetual license revenue and fees received for sales of third-party apps in the Atlassian Marketplace. Technical account management, consulting and training services are also included in other revenues. Perpetual license revenues represent fees earned from the license of software to customers for use on the customer’s premises other than data center products. Software is licensed on a perpetual basis. Perpetual license revenues consist of the revenues recognized from sales of licenses to customers. The Company no longer sells perpetual licenses or upgrades for our Server offerings. The Company typically recognized revenue on the license portion of perpetual license arrangements once the customer obtained control of the license, which is generally upon delivery of the license. Revenue from the sale of third-party apps via Atlassian Marketplace is recognized on the date of product delivery given that all of our obligations have been met at that time and on a net basis the Company functions as the agent in the relationship. Revenue from technical account management is recognized over the time period that the customer has access to the service. Revenue from consulting and training is recognized over time as the services are performed. Deferred Contract Acquisition Costs Deferred contract acquisition costs are costs incurred to obtain a contract, if such costs are recoverable, and consist primarily of sales commissions and related payroll taxes. Incremental costs of obtaining a contract are earned on new and expansion contracts which are capitalized and amortized over the average period of benefit the Company estimates to be four years, which is typically greater than the term of the initial customer contract and reflects the average period of benefit, including anticipated renewals. The Company does not pay sales commissions upon contract renewal. The Company determines the period of benefit for commissions paid for the acquisition of the initial customer contract by taking into consideration the initial estimated customer life and the technological life of our unified communications platform and related significant features. The Company includes the deferred contract costs in prepaid expense and other current assets and other non-current assets on the consolidated balance sheets and amortization of deferred contract acquisition costs in marketing and sales expense in the consolidated statements of operations. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase. Cash equivalents also include amounts due from third-party credit card processors as they are both short-term and highly liquid in nature and are typically converted to cash within three days of the sales transaction. Cash and cash equivalents are stated at fair value. As of June 30, 2023 and 2022, the Company had restricted cash of $1.4 million, primarily used for the benefit of employees through a deferred compensation plan, and was not available for use in its operations. Restricted cash is included in other non-current assets in the consolidated balance sheets. Accounts Receivable, net The Company records trade accounts receivable at the invoice value, and such receivables are non-interest bearing. The Company considers receivables past due based on the contractual payment terms. The Company makes estimates of expected credit and collectability trends based on an assessment of various factors including historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment that may affect our ability to collect from customers. The allowance for credit losses and write offs were not material for each of the periods as of June 30, 2023, 2022 and 2021. Fair Value Measurements Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories of inputs: • Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities; • Level 2 - Observable inputs (other than Level 1 prices) such as quoted prices for similar assets or liabilities, 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 assets or liabilities; • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or examination. Marketable Securities The Company classifies all marketable debt securities that have original stated maturities of greater than three months as marketable securities on its consolidated balance sheets. The Company determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable debt securities as available-for-sale (“AFS”). After consideration of its risk versus reward objectives, as well as its liquidity requirements, the Company may sell these debt securities prior to their stated maturities. The Company considers all of our marketable securities as funds available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities as current assets on the consolidated balance sheets. The Company evaluates AFS securities with unrealized loss positions for credit loss by assessing whether the decline in fair value below the amortized cost basis has resulted from a credit loss or other factors, whether the Company expects to recover the entire amortized cost basis of the security, its intent to sell and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. The Company carries these securities at fair value, and reports the unrealized gains and losses, net of taxes, as a component of accumulated other comprehensive income except for the changes in allowance for expected credit losses, which are recorded in other income (expense), net. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net on the consolidated statements of operations. Strategic Investments The Company holds strategic investments in privately held debt and equity securities, as well as publicly held equity securities in which the Company does not have a controlling interest. Investments in privately held debt securities are classified as AFS securities. Investments in publicly held equity securities are recorded at fair value with changes in the fair value of the investments recorded in other income (expense), net in the consolidated statements of operations. Investments in privately held equity securities without readily determinable fair values in which the Company does not own a controlling interest or have significant influence over are measured in accordance with the measurement alternative. In applying the measurement alternative, the carrying value of the investment is measured at cost, less impairment, if any, plus or minus changes resulting from observable price changes from orderly transactions for the identical or a similar investment of the same issuer in the period of occurrence. Changes to the carrying value of these investments are recorded through other income (expense), net on the consolidated statements of operations. In determining adjustments to the carrying value of its strategic invest ments in privately held companies, the Company uses the most recent data available to the Company. Valuations of privately held securities are inherently complex and the determination of whether an orderly transaction is for an identical or similar investment requires judgment. In its evaluation, the Company considers factors such as differences in the rights and preferences of the investments and the extent to which those differences would affect the fair values of those investments. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors including the investee’s financial metrics, market acceptance of the investee’s product or technology, general market conditions and liquidity considerations. Equity Method Investments Privately held equity securities in which the Company does not have a controlling financial interest but does exercise significant influence over the investment are accounted for under the equity method. The Company records a proportionate share of the investment’s earnings or losses, and impairment, if any, as a component of other income (expense), net in the consolidated statements of operations. These investments are included in strategic investments in the consolidated balance sheets. For entities that meet the definition of a variable interest entity (“VIE”), the Company consolidates those entities when the Company is the primary beneficiary of the entity. The Company is determined to be the primary beneficiary when it possesses both the unilateral power to direct activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company continually evaluates whether it qualifies as the primary beneficiary and reconsiders its determination of whether an entity is a VIE upon reconsideration events. As of June 30, 2023, the Company has one investment in an unconsolidated VIE for which it exercises significant influence over their operations and accordingly accounts for it as an equity method investment. Exchangeable Senior Notes In 2018, the Company, through its subsidiary Atlassian US, Inc., issued exchangeable senior notes due May 1, 2023 (the “Notes”), which were classified as financial liabilities at amortized cost and measured using the effective interest rate (“EIR”) method. Amortized cost was calculated by taking into account any discount and issuance cost that were an integral part of the EIR. The EIR amortization was includ ed as interest expense in the consolidated statements of operations. In connection with the issuance of the Notes, the Company entered into privately negotiated capped call transactions (the “Capped Calls”) with certain financial institutions. The Capped Call transactions were scheduled to expire in May 2023 and were required to be settled in cash. As of June 30, 2022 the Notes and Capped Calls had been fully settled and are no longer outstanding. Refer to Note 12, “ Debt ” for further details of the transaction. Derivative Financial Instruments The Company enters into foreign exchange forward contracts with the objective to mitigate certain currency risks associated with cost of revenues and operating expenses denominated in foreign currencies. These foreign exchange forward contracts are designated as cash flow hedges. The Company also enters into foreign exchange forward contracts to hedge a portion of certain foreign currency denominated as monetary asse ts and liabilities to reduce the risk that such foreign currency will be adversely affected by changes in exchange rates . The Company uses interest rate swaps to hedge the variability of cash flows in the interest payments associated with its variable-rate debt due to changes in the Secured Overnight Financing Rate (“SOFR”) based floating interest rate. The interest rate swaps are designated as cash flow hedges and involve interest obligations for U.S. dollar-denominated amounts. T he Company does not enter into derivative instrument transactions for trading or speculative purposes. Hedging derivative instruments are recognized as either assets or liabilities and are measured at fair value. For derivative instruments designated as cash flow hedges, the gains (losses) on the derivatives are initially reported as a component of other comprehensive income and are subsequently recognized in earnings when the hedged exposure is recognized in earnings. For derivative instruments that are not designated as hedges, gains (losses) from changes in fair values are primarily recognized in other income (expense), net. The Company enters into master netting agreements with financial institutions to execute its hedging program. The master netting agreements are with select financial institutions to reduce the Company’s credit risk, as well as to reduce its concentration of risk with any single counterparty. The Company had other derivatives, such as the embedded exchange feature of the Notes and Capped Calls. Please see Note 12, “ Debt ” for details. The Notes and Capped Calls were measured at fair value at each reporting date, and gains (losses) from changes in fair values were recognized in other income (expense), net in the consolidated statements of operations. The Company used the Black-Scholes option pricing models to estimate the fair value of the exchange feature of the Notes. Certain inputs used in the model such as stock price volatility requires judgment. The fair value of the Capped Calls was obtained from counterparty banks. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method to allocate the cost over the estimated useful lives. The estimated useful lives for each asset class are as follows: Equipment 3 years Computer hardware and computer-related software 3 years Furniture and fittings 5 years Leasehold improvements Shorter of the remaining lease term or 7 years Leases The Company determines if an arrangement is a lease at inception. The Company’s lease agreements generally contain lease and non-lease components. Payments under the Company’s lease arrangements are primarily fixed. Non-lease components primarily include payments for maintenance and utilities. The Company combines fixed payments for non-lease components with lease payments and account for them together as a single lease component which increases the amount of its lease assets and liabilities. Certain lease agreements contain variable payments, which are expensed as incurred and not included in the lease assets and liabilities. These amounts include payments affected by the Consumer Price Index and payments for maintenance and utilities. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The Company’s lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company generally uses the base, non-cancelable, lease term when determining the lease assets and liabilities. The Company reassesses the lease term if and when a significant event or change in circumstances occurs. Lease assets also include any prepaid lease payments and lease incentives. Operating lease expense (excluding variable lease costs) is recognized on a straight-line basis over the lease term. The Company applies the short-term lease recognition exemption for short-term leases, which are leases with a lease term of 12 months or less. Payments associated with short-term leases are recognized on a straight-line basis over the lease term. The Company did not have any finance lease arrangements for fiscal years 2023, 2022, and 2021. Assets Held for Sale The Company classifies assets as held for sale when all of the following are met: (i) management has committed to a plan to sell the assets; (ii) the assets are available for immediate sale in their present condition; (iii) an active program to locate a buyer has been initiated; (iv) it is probable that a sale will occur within one year; (v) the assets are being actively marketed for sale at a price that is reasonable in relation to their current fair value; and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. If all held for sale criteria are met, the assets are reclassified and presented separately in the consolidated balance sheets as assets held for sale at the lower of the carrying value or the fair value, less cost to sell, and no longer depreciated or amortized. The Company completed a sale of assets that had previously been classified as held for sale in July 2022. Please refer to Note 7, “Assets Held for Sale” , for further details. Business Combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed, based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. Assumptions used to estimate the fair value of the intangible assets include, but are not limited to, revenue growth rates, technology migration curves, customer attrition rates and discount rates. These estimates are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which may not be later than one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. Intangible Assets The Company acquires intangible assets separately or in connection with business combinations. Intangible assets are measured at cost initially. Intangible assets with finite lives are amortized over their estimated useful life using the straight-line method. The amortization expense on intangible assets is recognized in the consolidated statements of operations in the expense category consistent with the function of the intangible asset. The estimated useful lives for each intangible asset class are as follows: Patents, trademarks and other rights 5 - 12 years Customer relationships 5 - 10 years Acquired developed technology 4 - 6 years Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. When the projected undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts, the assets are adjusted to their estimated fair value and an impairment loss is recorded as a component of operating income (expense). Goodwill Goodwill is the excess of the aggregate of the consideration transferred over the identifiable assets acquired and liabilities assumed. Goodwill is tested for impairment at least annually during the fourth quarter of the Company’s fiscal year and more often if and when circumstances indicate that the carrying value may be impaired. The Company’s reporting unit is at the operating segment level. The Company performs its goodwill impairment test at the level of its operating segment, as there are no levels below the operating segment level for which discrete financial information is prepared and regularly reviewed by the Company’s CODMs. A qualitative assessment is performed to determine whether it is more likely than not that the fair value of its operating segment is less than it’s carrying amount. If the operating segment does not pass the qualitative assessment, the carrying amount of the operating segment, including goodwill, is compared to fair value and goodwill is considered impaired if the carrying value exceeds its fair value. Any excess is recognized as an impairment loss in current period earnings. Stock-based Compensation The Company recognizes compensation expense related to all stock-based awards, including restricted stock units (“RSU”), and restricted stock awards issued to the Company’s employees in exchange for their service, based on the estimated fair value of the awards on the grant date. The fair value of each RSU or restricted stock award is based on the fair value of the Company’s Class A Common Stock on the date of grant. The Company recognizes costs related to stock-based awards, net of estimated forfeitures, over the awards’ requisite service period on a straight-line basis. The Company estimates forfeitures based on historical experience. The respective expenses are recognized as employee benefits and classified in the consolidated statements of operations according to the activities that the employees perform. In connection with certain business combinations, the Company also issues replacement awards in exchange for awards held by employees of the acquiree. The Company recognizes the portion of the acquiree award that is attributable to pre-combination service as purchase consideration. The portion of the replacement award attributable to post-combination service is recognized as compensation expense over the awards’ requisite service period and classified in the consolidated statements of operations according to the activities that the employees perform. Refer to Note 17, “Stockholders Equity” for more information. Defined Contribution Plan The Company offers various defined contribution plans for our U.S. and non-U.S. employees. The Company matches a portion of employee contributions each pay period, subject to maximum aggregate matching amounts, or contributes based on local legislative rates for eligible employees. Total defined contribution plan expense was $78.2 million, $58.7 million, and $41.5 million for fiscal years 2023, 2022, and 2021, respectively. Advertising Costs Advertising costs are expensed as incurred as a component of marketing and sales expense in the consolidated statements of operations. Advertising expense was $89.5 million, $90.3 million and $71.0 million for fiscal years 2023, 2022, and 2021, respectively. Research and Development Research and development costs are expensed as incurred and consists of the employee, software, and hardware costs incurred for the development of new products, enhancements and updates of existing products and quality assurance activities. The costs incurred for the development of the Company’s cloud-based platform and internal use software are evaluated for capitalization during the development phase. Capitalized software development costs on the Company’s consolidated balance sheet were not material for the periods presented. Concentration of Credit Risk and Significant Customers Financial instruments potentially exposing the Company to credit risk consist primarily of cash, cash equivalents, accounts receivable, derivative contracts and investments. The Company holds cash at financial institutions that management believes are high credit, quality financial institutions and invests in investment grade securities rated A- and above and debt securities. The Company’s derivative contracts expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. The Company enters into master netting agreements with select financial institutions to reduce its credit risk and trades wi |
Conversion from IFRS to GAAP
Conversion from IFRS to GAAP | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Conversion from IFRS to GAAP | Conversion from IFRS to GAAP As part of the U.S. Domestication, the Company has retrospectively converted its Consolidated Financial Statements from International Financial Reporting Standards (“IFRS”) to GAAP. Refer to Note 1, “Description of Business” for additional details. The significant differences between IFRS and GAAP as they relate to these financial statements are as follows: (a) Stock-based Compensation Under IFRS, prior to the adoption of GAAP, the Company adhered to the accelerated method of expense recognition for stock-based compensation subject to graded vesting. The application of this accounting method results in more of the grant’s stock-based compensation expense being recognized in the earlier years of the grant. Under GAAP, the Company accounts for stock-based awards using the straight-line expense method, recognizing the expense ratably over the service period which is generally four years. This change in the timing of the expense recognition is the primary driver for the GAAP transition differences. (b) Leases Under IFRS, prior to the adoption of GAAP, the Company, as lessee, applied the single lease model that is similar to the accounting for a finance lease under GAAP. The expense recognition presented a higher portion of the total expense earlier in the term as a combination of straight-line depreciation of the right-of-use asset and the effective interest rate method applied to the lease liability results in a decreasing rate of interest expense recognition throughout the lease term. Under GAAP, there is dual classification lease accounting model for lessees: finance leases and operating leases. The Company, as lessee, classified all its leases as operating leases and recognizes a single lease expense, including both a right-of-use asset depreciation component and an interest expense component, on a straight-line basis throughout the lease term. (c) Strategic Investments The Company invests in equity securities of public and private companies in which the Company does not have a controlling interest or significant influence. Under IFRS, the movement in the valuation of these investments had been recorded in other comprehensive income. Under GAAP, the Company records any impairment of these equity investments, as well as any changes in value resulting from observable price changes as a result of orderly transactions for identical or similar investments of the same issuer, in the consolidated statements of operations. This change in classification is the primary driver of the GAAP transition differences. (d) Exchangeable Senior Notes In 2018, Atlassian US, Inc. issued $1 billion in aggregate principal amount of the exchangeable senior notes (the “Notes”) due on May 1, 2023. The Notes were senior, unsecured obligations of the Company, and were scheduled to mature on May 1, 2023, unless earlier exchanged, redeemed or repurchased. The Notes were fully redeemed by the Company in fiscal year 2022. The exchange feature of the Notes required bifurcation from the Notes and was accounted for as a derivative liability. The fair value of the Notes’ embedded exchange derivative at the time of issuance was $177.9 million and was recorded as original debt discount for purposes of accounting for the debt component of the Notes. This discount was amortized as interest expense using the effective interest rate method over the term of the Notes. Under IFRS, the Company determined the effective interest rate using estimated cash flows, based on the anticipated timing on cash inflows and outflows. Under GAAP, the Company has calculated the effective interest rate using contractual cash flows, focusing on the flow of funds as determined by contractual arrangements. This change in calculation of the effective interest rate is the primary driver of the GAAP transition differences. (e) Income Taxes Prior to the adoption of GAAP, the Company accounted for income taxes pursuant to International Accounting Standard 12 Income Taxes (“IAS 12”), International Financial Reporting Interpretations Committee 23 Uncertainty over Income Tax Treatments (“IFRIC 23”) and International Accounting Standard 34 Interim Reporting . Upon the adoption of GAAP, the Company now accounts for income taxes pursuant to ASC 740 as noted below: i. Deferred Tax Deferred tax has been adjusted to remove any backwards tracing components that are permitted under IAS 12 and prohibited under ASC 740. Specifically, backwards tracing is prohibited with regard to adjustments to the beginning of the year balance of a valuation allowance because of a change in judgement about the realizability of related deferred tax assets in future years. Deferred tax liabilities and assets for investments in subsidiaries, partnerships, corporate ventures, and other entities have been assessed based on the criteria in ASC 740 rather than IAS 12. Where applicable, the Company has adopted the exception criteria in establishing whether a deferred tax asset or liability is required to be recognized. The Company acknowledges that a deferred tax asset or liability will be recognized for any investments that are not subject to the exception criteria. Under IFRS, when assessing the recognition of deferred taxes on outside basis differences between the carrying amount of an investment for financial reporting purposes and the underlying tax basis in that investment, the Company had adopted the exceptions in IAS 12 such that no deferred tax assets or liabilities had been recorded on outside basis differences that exist for any controlled subsidiaries. Under GAAP, the Company is required to recognize deferred taxes attributable to outside basis interests in equity accounted investments in addition to fiscally transparent entities such as partnerships and trusts. On that basis, the Company has recorded deferred taxes for the U.S. group’s interest in foreign and domestic fiscally transparent entities, and it is expected to recognize deferred taxes in respect of any equity accounted associate investments that it does not control. ii. Valuation Allowance The realizability of deferred tax assets was considered under GAAP and the determination to maintain a full valuation allowance in the United States and Australia was made. This is a substantially similar result under IFRS. For footnote presentation purposes, all deferred tax assets, liabilities, and valuation allowances are now reported on gross basis rather than a net basis. iii. Uncertain Tax Positions The Company recognizes and measures any uncertain tax positions in accordance with ASC 740 rather than IFRIC 23. Accordingly, the Company recognizes, and measures uncertain tax positions based on a two-step process outlined in the Income Tax section of Critical Accounting Policies. iv. Stock-Based Compensation Under IFRS, the measurement of the stock-based compensation deferred tax asset is based on an estimate of the future tax deduction based on the current stock price at each reporting period. When the expected tax benefits from equity awards exceed the recorded cumulative recognized expense multiplied by the tax rate, the tax benefit up to the amount of the tax effect of the cumulative book compensation expense is recorded in the consolidated statement of operations; the excess is recorded in equity. When the expected tax benefit is less than the tax effect of the cumulative amount of recognized expense, the entire tax benefit is recorded in the consolidated statement of operations. Under GAAP, the Company measures the stock-based compensation deferred tax asset based on the amount of compensation cost recognized for financial statement purposes. Changes in stock price do not result in a remeasurement of the related deferred tax asset. Upon settlement or expiration, excess tax benefits and tax deficiencies are recognized within the provisions for income taxes. v. Other Pre-tax Changes The tax effects resulting from other accounting changes to pre-tax income, including leases, strategic investments, and notes, are included in the tax provision under GAAP. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023, by level within the fair value hierarchy (in thousands): Level 1 Level 2 Total Assets measured at fair value Cash and cash equivalents: Money market funds $ 1,338,509 $ — $ 1,338,509 Marketable securities: Certificates of deposit and time deposits — 10,000 10,000 Derivative financial instruments — 64,210 64,210 Strategic investments: Publicly traded equity securities 19,365 — 19,365 Total assets measured at fair value $ 1,357,874 $ 74,210 $ 1,432,084 Liabilities measured at fair value Derivative financial instruments $ — $ 10,114 $ 10,114 Total liabilities measured at fair value $ — $ 10,114 $ 10,114 The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022, by level within the fair value hierarchy (in thousands): Level 1 Level 2 Total Assets measured at fair value Cash and cash equivalents: Money market funds $ 555,247 $ — $ 555,247 Marketable securities: U.S. treasury securities — 70,294 70,294 Certificates of deposit and time deposits — 3,000 3,000 Derivative financial instruments — 44,052 44,052 Strategic investments: Publicly traded equity securities 30,801 — 30,801 Total assets measured at fair value $ 586,048 $ 117,346 $ 703,394 Liabilities measured at fair value Derivative financial instruments $ — $ 24,100 $ 24,100 Total liabilities measured at fair value $ — $ 24,100 $ 24,100 Due to the short-term nature of accounts receivables, net, contract assets, accounts payable, accrued expenses, and other current liabilities, their carrying amount is assumed to approximate their fair value. Determination of Fair Value The Company uses quoted prices in active markets for identical assets to determine the fair value of the Company’s Level 1 investments. The fair value of the Company’s Level 2 investments is determined based on quoted market prices or alternative market observable inputs. Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis The Company’s investments in privately held companies are not included in the tables above and are discussed in Note 5, “Investments.” The carrying value of the Company’s privately held equity securities are |
Investments
Investments | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Marketable Securities The Company’s investments of marketable securities as of June 30, 2023, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Certificates of deposit and time deposits $ 10,000 $ — $ — $ 10,000 Total marketable securities $ 10,000 $ — $ — $ 10,000 As of June 30, 2023, the Company had $10.0 million of investments which were classified as marketable debt securities on the Company’s consolidated balance sheets. The Company’s investments of marketable securities as of June 30, 2022, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 70,947 $ — $ (653) $ 70,294 Certificates of deposit and time deposits 3,000 — — 3,000 Total marketable securities $ 73,947 $ — $ (653) $ 73,294 The table below summarizes the Company’s marketable securities by remaining contractual maturity based on their effective maturity dates (in thousands): June 30, 2023 June 30, 2022 Due in one year or less $ 10,000 $ 73,294 The Company regularly reviews the changes to the rating of its marketable securities by rating agencies and monitors the surrounding economic conditions to assess the risk of expected credit losses. As of June 30, 2023, no unrealized losses were recorded, and as of June 30, 2022, the unrealized losses and the related risk of expected credit losses were not material. Strategic Investments Carrying value of privately held debt securities The Company’s investments of privately held debt securities as of June 30, 2023, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Privately held debt securities $ 8,800 $ — $ (3,350) $ 5,450 The Company’s investments of privately held debt securities as of June 30, 2022, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Privately held debt securities $ 5,486 $ — $ (4,218) $ 1,268 Carrying value of publicly traded and privately held equity securities The carrying value is measured as the total initial cost plus the cumulative net gain (loss). Publicly traded equity securities are recorded at fair value and privately held equity securities are measured using the measurement alternative. The carrying values for publicly traded and privately held equity securities as of June 30, 2023 are summarized below (in thousands): Publicly traded equity securities Privately held Total Initial total cost $ 10,270 $ 135,050 $ 145,320 Cumulative net gain (loss) 9,095 (398) $ 8,697 Carrying value $ 19,365 $ 134,652 $ 154,017 Privately held equity securities cumulative net loss is comprised of downward adjustments and impairment of $5.9 million and upward adjustments of $5.5 million as of June 30, 2023 . As of June 30, 2023 publicly traded equity securities were classified as prepaid expenses and other current assets on the consolidated balance sheets. The carrying values for publicly traded and privately held equity securities as of June 30, 2022 are summarized below (in thousands): Publicly traded equity securities Privately held Total Initial total cost $ 10,270 $ 120,300 $ 130,570 Cumulative net gain 20,531 6,695 $ 27,226 Carrying value $ 30,801 $ 126,995 $ 157,796 Privately held equity securities cumulative net gain is comprised of upward adjustments of $6.7 million as of June 30, 2022. Gains and Losses on Strategic Investments The components of gains and losses on strategic investments were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Unrealized gains (losses) recognized on publicly traded equity securities $ (11,437) $ (79,608) $ 34,290 Unrealized gains recognized on privately held equity securities 307 6,945 — Unrealized losses recognized on privately held equity securities including impairment (7,642) — (250) Unrealized losses on privately held debt securities (350) — — Unrealized gains (losses), net $ (19,122) $ (72,663) $ 34,040 Realized gains recognized on publicly traded equity securities — — 14,040 Realized losses on debt securities (285) — — Gains (losses) on strategic investments, net $ (19,407) $ (72,663) $ 48,080 Unrealized gains (losses) recognized during the reporting period on privately held equity securities still held at the reporting date $ (6,986) $ 6,945 $ (250) Unrealized gains recognized on privately held equity securities includes upward adjustments from equity securities accounted for under the measurement alternative while unrealized losses recognized on privately held equity securities includes downward adjustments and impairment. Realized gains on sales of securities, net reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later. Equity Method Investment On July 20, 2022, the Company completed a non-cash sale of its controlling interest of Vertical First Trust (“VFT”) to a third-party buyer. Please refer to Note 7, “ Assets held for sale ,” for additional details. The Company retained a minority equity interest of 13% in the form of ordinary units and has significant influence in VFT. The Company’s interest in VFT is accounted for using the equity method in the consolidated financial statements. As of the date of sale, the Company used a discounted cash flow model to calculate the fair value of its retained equity interest. The fair value of the retained interest was $88.9 million, and is classified as a Level 3 investment in the fair value hierarchy. The inputs to the valuation included observable inputs, including capitalization rate, discount rate, and other management inputs, including the underlying building practical completion date. The maximum exposure to loss related to the Company’s investment in VFT equals the Company’s capital investment. The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal year 2023 (in thousands): Equity Method Investment Balance as of July 20, 2022 $ 88,853 Effect of change in exchange rates (3,417) Balance as of June 30, 2023 $ 85,436 The carrying amount of the Company’s investment in VFT was reported within strategic investments in the consolidated balance sheets. The Company’s share in the profits and losses of VFT was not material during fiscal year 2023. |
Derivative Contracts
Derivative Contracts | 12 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts The Company has derivative instruments that are used for hedging activities as discussed below. The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of June 30, 2023 (in thousands, except for average interest rate): Notional Amounts of Derivative Instruments Notional Amount by Term to Maturity Classification by Notional Amount Under 12 months Over 12 months Total Cash Flow Hedge Non Hedge Total Forward contracts $ 849,811 $ 35,181 $ 884,992 $ 532,059 $ 352,933 $ 884,992 Interest rate swaps: Notional amount $ — $ 650,000 $ 650,000 $ 650,000 $ — $ 650,000 Average interest rate 0.81 % 0.81 % 0.81 % 0.81 % The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of June 30, 2022 (in thousands, except for average interest rate): Notional Amounts of Derivative Instruments Notional Amount by Term to Maturity Classification by Notional Amount Under 12 months Over 12 months Total Cash Flow Hedge Non Hedge Total Forward contracts $ 612,523 $ 37,015 $ 649,538 $ 401,534 $ 248,004 $ 649,538 Interest rate swaps: Notional amount $ — $ 650,000 $ 650,000 $ 650,000 $ — $ 650,000 Average interest rate 0.81 % 0.81 % 0.81 % 0.81 % The fair value of the Company’s derivative instruments were as follows (in thousands): As of June 30, Balance Sheet Location 2023 2022 Derivative assets Derivatives designated as hedging instruments: Foreign exchange forward contracts Prepaid expenses and other current assets $ 3,177 $ — Interest rate swaps Prepaid expenses and other current assets 28,926 13,296 Interest rate swaps Other non-current assets 28,215 30,367 Derivatives not designated as hedging instruments: Foreign exchange forward contracts Prepaid expenses and other current assets 3,892 389 Total derivative assets $ 64,210 $ 44,052 Derivative liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts Accrued expenses and other current liabilities $ 9,657 $ 18,208 Foreign exchange forward contracts Other non-current liabilities 209 812 Derivatives not designated as hedging instruments: Foreign exchange forward contracts Accrued expenses and other current liabilities 248 5,080 Total derivative liabilities $ 10,114 $ 24,100 The pre-tax effects of derivatives designated as cash flow hedging instruments on the consolidated financial statements were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Beginning balance of accumulated gains (losses) in accumulated other comprehensive income $ 24,502 $ (2,936) $ 13,072 Gross unrealized gains recognized in other comprehensive income 17,952 11,421 19,069 Net (gains) losses reclassified from cash flow hedge in accumulated other comprehensive income into profit or loss: Recognized in cost of revenues 1,831 525 (1,326) Recognized in research and development 16,890 10,513 (28,490) Recognized in marketing and sales 1,337 220 (400) Recognized in general and administrative 5,563 1,606 (4,861) Recognized in interest (19,905) 3,153 — Ending balance of accumulated gains (losses) in accumulated other comprehensive income $ 48,170 $ 24,502 $ (2,936) |
Assets Held For Sale
Assets Held For Sale | 12 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held For Sale | Assets Held For Sale During the fourth quarter of fiscal year 2021, the Company committed to a plan to sell its controlling interest of its subsidiary, VFT, which was established for the construction project associated with the Company’s new global headquarters in Sydney, Australia (the “Australian HQ Property”). In July 2021, the Company entered into a term sheet with a third-party buyer to effect the sale. The term sheet provided a framework for the buyer to invest in and develop the Australian HQ Property. In March 2022, the Company entered into a series of agreements with the buyer, including an Agreement for Lease (the “AFL”). On July 20, 2022, the Company completed a non-cash sale of its controlling interest of VFT to the buyer and recognized a gain of $45.2 million from the sale in other income (expense), net Investments ” for additional details. The major assets classified as held for sale as of June 30, 2023 and 2022 were as follows (in thousands): As of June 30, 2023 2022 Cash and cash equivalents $ — $ 2,701 Property and equipment, net $ — $ 57,482 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following (in thousands): As of June 30, 2023 2022 Equipment $ 9,298 $ 9,140 Computer Hardware and Software 29,801 18,324 Furniture and Fittings 24,773 25,157 Leasehold Improvements and Other 123,125 124,758 Property and equipment, gross 186,997 177,379 Less: accumulated depreciation and impairment (105,595) (76,717) Property and equipment, net $ 81,402 $ 100,662 Depreciation expense was $27.8 million, $19.3 million and $24.2 million for fiscal years 2023, 2022, and 2021, respectively. During fiscal year 2023, the Company recorded an $8.4 million impairment charge for leasehold improvements as a result of our restructuring efforts. Refer to Note 15, “ Restructuring, ” for additional information. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather are tested for impairment at least annually during the fourth quarter, or when indicators of impairment exist. Goodwill consisted of the following (in thousands): Goodwill Balance as of June 30, 2021 $ 715,929 Additions 9,361 Effect of change in exchange rates (2,452) Balance as of June 30, 2022 722,838 Additions 3,300 Effect of change in exchange rates 1,073 Balance as of June 30, 2023 $ 727,211 During fiscal years 2023 and 2022 the Company completed acquisitions primarily to expand our product and service offerings. The transactions were accounted for as business combinations and were not significant to our consolidated financial statements. Intangible Assets Intangible assets consisted of the following (in thousands): As of June 30, Weighted-Average Remaining Useful Lives 2023 2022 Acquired Developed Technology $ 235,818 $ 234,618 2 Patents, Trademarks, and Other Rights 33,393 33,393 5 Customer Relationships 129,502 129,502 5 Intangible assets, gross 398,713 397,513 Less: accumulated amortization (329,641) (296,673) Intangible assets, net $ 69,072 $ 100,840 Amortization expense for intangible assets were approximately $33.1 million, $32.4 million and $31.8 million for fiscal years 2023, 2022, and 2021, respectively. The following table presents the estimated future amortization expense related to intangible assets held as of June 30, 2023 (in thousands): Fiscal Years: 2024 $ 26,229 2025 15,208 2026 12,670 2027 7,839 Thereafter 7,126 Total future amortization expense $ 69,072 |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business CombinationsWe completed an acquisition primarily to expand our product and service offerings during the fiscal year 2023. The transaction was accounted for as a business combination and is not significant to our consolidated financial statements. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): As of June 30, 2023 2022 Accrued expenses $ 107,479 $ 123,381 Employee benefits 191,801 197,701 Tax liabilities 88,748 26,367 Customer deposits 11,784 9,718 Derivative liabilities 9,905 23,288 Liabilities held for sale — 17,564 Other payables 13,414 8,120 Total accrued expenses and other liabilities $ 423,131 $ 406,139 |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company rents office space and equipment under non-cancelable operating leases with various expiration dates through fiscal year 2034. Certain lease agreements include varying terms, escalation clauses and renewal rights. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs and other information related to leases were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Operating lease costs $ 50,134 $ 49,647 $ 43,199 Variable lease costs 13,094 12,077 13,604 Total lease costs $ 63,228 $ 61,724 $ 56,803 Weighted average remaining lease term (in years) 7 8 7 Weighted average discount rate 2.5 % 2.4 % 2.5 % Supplemental cash flow information related to operating leases were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Cash payments for operating leases $ 41,493 $ 49,142 $ 44,874 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,580 $ 105,961 $ 27,042 Future lease payments under non-cancelable operating leases with initial lease terms in excess of one year included in the Company’s lease liabilities as of June 30, 2023 were as follows (in thousands): Fiscal years: Operating Lease Payments 2024 $ 51,479 2025 49,078 2026 42,306 2027 37,534 2028 38,601 Thereafter 90,870 Total future operating lease payments 309,868 Less: imputed interest (27,103) Total lease liability balance (1) $ 282,765 (1) Lease liabilities include those operating leases that we plan to sublease as a part of our facilities consolidation restructuring efforts. For additional information, see Note 15, “ Restructuring .” During fiscal year 2023 , in addition to operating lease costs disclosed above, we recorded an impairment charge of $52.7 million in aggregate for operating lease right-of-use assets as part of our lease consolidation efforts. Refer to Note 15, “ Restructuring, ” for additional information. During fiscal year 2021 , in addition to operating lease costs disclosed above, we recorded an impairment charge of $3.9 million related to the early termination of a real estate lease. The Company entered into the AFL for the Australian HQ Property in March 2022. Following completion of the development of the Australian HQ Property, the AFL requires the Company to enter into a lease agreement for the planned headquarters office space. The lease is expected to commence in fiscal year 2027 and will continue for fifteen years, with the Company’s option to extend the term for up to two additional ten-year periods. Future lease payments are approximately $919.3 million as of June 30, 2023, for the initial term of fifteen years. Please refer to Note 5, “ Investments, ” and Note 7, “A ssets held for sale ,” for details of the transaction. |
Debt
Debt | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Exchangeable Senior Notes In 2018, Atlassian US, Inc., issued $1 billion in aggregate principal amount of the Notes. The Notes were senior, unsecured obligations of the Company, and were scheduled to mature on May 1, 2023, unless earlier exchanged by investors, or redeemed or repurchased by the Company. In connection with the issuance of the Notes, the Company entered into privately negotiated Capped Calls with certain financial institutions. The aggregate cost of the Capped Calls was $87.7 million. The Capped Call were scheduled to expire in May 2023 and were required to be settled in cash. The exchange feature of the Notes required bifurcation from the Notes and was accounted for as a derivative liability. The Capped Calls were accounted for as derivative assets. The Notes embedded exchange derivative liability and Capped Call assets were carried on the consolidated balance sheets at their estimated fair values and were adjusted at the end of each reporting period, with unrealized gain or loss reflected in the consolidated statements of operations. The current or non-current classification of the embedded exchange derivative liability and the Capped Calls asset corresponded with the classification of the Notes on the consolidated balance sheets. The classification was evaluated at each balance sheet date. The Notes and Capped Calls were fully settled in fiscal year 2022. There was no balance outstanding related to the Notes as of June 30, 2023 and 2022. A total of $424.5 million and $616.4 million of net loss on exchange derivative and Capped Call were recognized during fiscal years 2022 and 2021, respectively. Credit Facility In October 2020, Atlassian US, Inc. entered into a credit agreement (the “Credit Agreement”) establishing a $1 billion senior unsecured delayed-draw term loan facility (the “Term Loan Facility”) and a $500 million senior unsecured revolving credit facility (the “Revolving Credit Facility,” and together with the Term Loan Facility, the “Credit Facility”). The Company used the net proceeds of the Credit Facility for general corporate purposes, including repayment of the then existing indebtedness. Prior to July 1, 2023, amounts outstanding under the Credit Facility bore interest, at the Company’s option, at a base rate plus a margin up to 0.50% or LIBOR rate plus a spread of 0.875% to 1.50%, in each case with such margin being determined by the Company’s consolidated leverage ratio. On June 2, 2023 the Company entered into the LIBOR Transition Amendment to the Credit Agreement (the “LIBOR Amendment”). The LIBOR Amendment replaced LIBOR with SOFR as the reference rate used to calculate interest payments for borrowing under the Credit Facility commencing on July 1, 2023. The interest due applies to borrowing, at the Company’s option, at a base rate plus a margin up to 0.50% or SOFR rate, plus a credit spread adjustment of 0.10% plus a spread of 0.875% to 1.50%, in each case with such margin being determined by the Company’s consolidated leverage ratio. The Revolving Credit Facility may be borrowed, repaid, and re-borrowed until its maturity, and the Company has the option to request an increase of $250 million in certain circumstances. The Credit Facility matures in October 2025 and the Company may prepay the Credit Facility at its discretion without penalty. Commencing on October 31, 2023, the Company is obligated to repay the outstanding principal amount of the Term Loan Facility in installments on a quarterly basis in an amount equal to 1.25% of the Term Loan Facility borrowing amount until the maturity of the Term Loan Facility. The Company incurred debt issuance costs of $4.4 million in connection with entering into the Credit Facility. The debt issuance costs were amortized over the terms of the Term Loan Facility and Revolving Credit Facility. As of June 30, 2023, $1.0 billion has been drawn under the Term Loan Facility. The Company is also obligated to pay a commitment fee on the undrawn amounts of the Revolving Credit Facility at an annual rate ranging from 0.075% to 0.20%, determined by the Company’s consolidated leverage ratio. The Credit Facility requires compliance with various financial and non-financial covenants, including affirmative and negative covenants. The financial covenants include a maximum consolidated leverage ratio of 3.5x, which ratio increases to 4.5x during the period of four fiscal quarters immediately following a material acquisition. As of June 30, 2023, the Company was in compliance with all related covenants. On September 30, 2022, prior to the consummation of the U.S. Domestication, Atlassian Corporation Plc entered into Amendment No. 1 to the Credit Agreement (the “First Amendment”). The First Amendment sets forth the requirements for the assumption of the obligations of Atlassian Corporation Plc by Atlassian Corporation under the Credit Agreement and provides that the financial statements required to be delivered under the Credit Agreement, as amended, will be prepared in accordance with GAAP and financial definitions under the Credit Agreement, as amended, will be interpreted in accordance with GAAP. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Noncancellable Purchase Obligations The Company has contractual commitments for services with third-parties related to its cloud services platform and other infrastructure services. These commitments are non-cancellable and expire within one The following table sets forth contractual commitments as of June 30, 2023 and 2022 (in thousands): Fiscal Year Ended June 30, 2023 2022 Contractual purchase obligations $ 1,788,740 $ 152,935 Obligations for leases that have not yet commenced 919,333 956,118 Total purchase obligation $ 2,708,073 $ 1,109,053 Maturities of purchase obligations as of June 30, 2023 were as follows (in thousands): Other contractual Leases not commenced Total Fiscal Year: 2024 $ 364,326 $ — $ 364,326 2025 406,108 — 406,108 2026 458,234 — 458,234 2027 419,572 34,434 454,006 2028 140,500 47,290 187,790 Thereafter — 837,609 837,609 Total commitments $ 1,788,740 $ 919,333 $ 2,708,073 Please refer to Note 11, “ Leases ,” for discussion of a lease commitment that the Company has entered but the lease has not yet commenced. Legal Proceedings On February 3, 2023, a putative securities class action (the “Putative Class Action”) was filed in the U.S. District Court for the Northern District of California, captioned City of Hollywood Firefighters’ Pension Fund vs. Atlassian Corporation , Case No. 3:23-cv-00519, naming the Company and certain of its officers as defendants. The lawsuit is purportedly brought on behalf of purchasers of the Company’s securities between August 5, 2022 and November 3, 2022 (the “Class Period”). The complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder, based on allegedly false and misleading statements about the Company’s business and prospects during the Class Period. The lawsuit seeks unspecified damages. On May 15, 2023, the Court appointed City of Hollywood Firefighters’ Pension Fund and Oklahoma Firefighters Pension and Retirement System as co-lead plaintiffs (the “Plaintiffs”) in the Putative Class Action and approved their selection of lead counsel. The Plaintiffs filed an amended complaint on July 14, 2023, which alleges the same claims against the same defendants for the same Class Period as the original complaint. The defendants’ motion to dismiss the amended complaint is due by September 8, 2023. The defendants intend to deny the allegations of wrongdoing and vigorously defend against the claims in this lawsuit. In March and April 2023, two stockholder derivative lawsuits were filed in the U.S. District Court for the District of Delaware against the members of the Company’s board of directors and certain of its officers, captioned Silva v. Cannon-Brookes , Case No. 1:23-cv-00283; and Keane v. Cannon-Brookes , Case No. 1:23-cv-00399. The Company is named as a nominal defendant. These stockholder derivative lawsuits are based largely on the same allegations as the Putative Class Action, including allegations relating to the Company’s disclosures during the Class Period as well as, in certain instances, alleged insider trading. The lawsuits purport to assert claims for, among other things, breach of fiduciary duty, corporate waste, unjust enrichment, and violations of 10(b) of the Exchange Act, and Rule 10b-5 promulgated thereunder. The complaint seeks unspecified damages and other relief on the Company’s behalf. The court has consolidated these cases and stayed them pending resolution of any motion to dismiss in the Putative Class Action. In August 2023, a third stockholder derivative lawsuit was filed in the U.S. District Court for the District of Delaware asserting substantially the same claims as the previously filed derivative lawsuits discussed above, captioned Azzawi v. Cannon-Brookes, et al., Case No. 1:23-cv-00884 . The defendants intend to seek to have this case consolidated and stayed with the previously filed stockholder derivative lawsuits. In addition to the matters discussed above, from time to time, the Company is party to litigation and other legal proceedings in the ordinary course of business. While the Company does not believe the ultimate resolution of pending legal matters is likely to have a material adverse effect on the Company’s financial position, the results of any litigation or other legal proceedings are uncertain and as such the resolution of such legal proceedings, either individually or in the aggregate, could have a material adverse effect on its business, results of operations, financial condition or cash flows. The Company accrues for loss contingencies when it is both probable that it will incur the loss and when it can reasonably estimate the amount of the loss or range of loss. For the periods presented, the Company has not recorded any liabilities as a result of the litigation or other legal proceedings in its consolidated financial statements. Indemnification Provisions |
Restructuring
Restructuring | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RestructuringOn March 6, 2023, the Company initiated a rebalancing of resources resulting in the elimination of certain roles impacting about 500 full-time employees, or approximately 5% of the Company’s then-current workforce. These actions are part of the Company’s initiatives to accelerate progress against its highest priorities. These actions include continuing to invest in strategic areas of the business, and aligning talent to best meet customer needs and business priorities. As a result, the Company recorded severance and other termination benefits, including severance, notice period payments, employee transition payments and other benefits of $25.3 million, and stock-based compensation of $10.3 million for the impacted employees during fiscal year 2023. The execution of these actions, including cash payment of the severance and other termination benefits related liabilities, was substantially completed as of June 30, 2023. In addition, the Company is consolidating its leases, including planned subleasing of several office spaces, to optimize its real estate footprint. As a result, the Company recorded impairment charges for the related operating lease right-of-use assets and leasehold improvements of $61.1 million during fiscal year 2023 . The fair values of the impaired assets were estimated using discounted cash flow models (income approach) based on market participant assumptions with Level 3 fair value inputs. The assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods, and discount rates that reflect the level of risk associated with receiving future cash flows. The Company continues to evaluate its real estate needs and may incur additional charges in the future. A summary of our restructuring charges for fiscal year 2023 by major activity type is as follows (in thousands): Severance and Other Termination Benefits Stock-based Compensation Lease Consolidation Total Cost of revenue $ 1,011 $ 288 $ 7,893 $ 9,192 Research and development 8,279 5,866 29,004 43,149 Marketing and sales 7,069 1,815 14,984 23,868 General and administrative 8,961 2,306 9,418 20,685 Total $ 25,320 $ 10,275 $ 61,299 $ 96,894 The following table is a summary of the changes in the liabilities, included within accrued expenses and other current liabilities on the consolidated balance sheets, related to the restructuring charges (in thousands): Severance and Other Termination Benefits Stock-based Compensation Lease Consolidation Total Charges $ 25,320 $ 10,275 $ 61,299 $ 96,894 Payments (22,481) — (201) (22,682) Non-cash items (633) (10,275) (61,098) (72,006) Liability as of June 30, 2023 $ 2,206 $ — $ — $ 2,206 |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Remaining Performance Obligations Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligations is influenced by several factors, including the timing of renewals, the timing of delivery of software licenses, average contract terms, and foreign currency exchange rates. Unbilled portions of the remaining performance obligations are subject to future economic risks including bankruptcies, regulatory changes and other market factors. As of June 30, 2023, approximately $1.8 billion of revenue is expected to be recognized from transaction price allocated to remaining performance obligations. The Company expects to recognize revenue on approximately 82% of these remaining performance obligations over the next 12 months with the balance recognized thereafter. Disaggregated Revenue The Company’s revenues by geographic region based on end-users who purchased the Company’s products or services are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Americas United States $ 1,537,328 $ 1,230,801 $ 901,389 Other Americas 227,838 178,067 127,092 Total Americas $ 1,765,166 $ 1,408,868 $ 1,028,481 EMEA 1,366,739 1,077,338 826,445 Asia Pacific 402,742 316,676 234,206 Total revenues $ 3,534,647 $ 2,802,882 $ 2,089,132 The Company provides different deployment options for its product offerings. Cloud offerings provide customers the right to use the Company’s software in a cloud-based infrastructure that the Company provides. Data Center offerings are on-premises term license agreements for the Company’s Data Center products, which are software licensed for a specified period, and includes support and maintenance service that is bundled with the license for the term of the license period. Server offerings include the license of software on a perpetual basis to customers for use on the customer’s premises and support and maintenance service of unspecified future updates, upgrades and enhancements and technical product support. Marketplace and services offerings mainly include fees received for sales of third-party apps in the Atlassian Marketplace and services like premier support, technical account management, consulting and training. Premier support consists of subscription-based arrangements for a higher level of support across different deployment options, and revenues from this offering are included in Subscription revenues within our Consolidated Statements of Operations. For fiscal years 2023, 2022 and 2021, premier support revenues were $17.8 million, $21.1 million and $20.0 million respectively. We no longer sell perpetual licenses for our Server offerings. Since February 2022, we no longer sell upgrades to Server offerings and plan to end maintenance and support for these Server offerings in February 2024. The revenues from Server offerings during fiscal year 2023 consists of revenue from maintenance service. The Company’s revenues by deployment options are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Cloud $ 2,085,498 $ 1,515,424 $ 967,832 Data Center 819,251 560,319 336,273 Server 400,519 525,028 607,778 Marketplace and services 229,379 202,111 177,249 Total revenues $ 3,534,647 $ 2,802,882 $ 2,089,132 Deferred Revenue The Company records deferred revenues when cash payments are received or due in advance of the Company satisfying its performance obligations, including amounts which are refundable. The changes in the balances of contract balances are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Balance, beginning of period $ 1,182,680 $ 897,595 Additions 3,897,446 3,087,967 Revenue (3,534,647) (2,802,882) Balance, end of period $ 1,545,479 $ 1,182,680 The additions in the deferred revenue balance are primarily cash payments received or due in advance of satisfying the Company’s performance obligations. For fiscal years 2023 and 2022, approximately 30% and 29% of revenue recognized was from the deferred revenue balances at the beginning of each fiscal year, respectively. Deferred Contract Acquisition Costs The changes in the balances of deferred contract acquisition costs are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Balance, beginning of period $ 27,141 $ 9,011 Additions 40,060 24,302 Amortization expense (13,597) (6,172) Balance, end of period $ 53,604 $ 27,141 Deferred contract acquisition costs included in: Prepaid expenses and other current assets $ 18,027 $ 8,806 Other non-current assets 35,577 18,335 Total $ 53,604 $ 27,141 The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. |
Geographic Information
Geographic Information | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The Company’s long-lived assets by geographic regions are as follows (in thousands): As of June 30, 2023 2022 United States $ 213,567 $ 295,577 Australia 37,891 67,241 All other countries 14,139 15,120 Total long-lived assets $ 265,597 $ 377,938 |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock As discussed in Note 1, “Description of Business,” the Company completed the U.S. Domestication after the close of market trading on September 30, 2022. At that time all issued and outstanding ordinary shares of Atlassian Corporation Plc were exchanged on a one-for-one basis for newly issued shares of corresponding common stock of Atlassian Corporation, and all issued and outstanding equity awards of Atlassian Corporation Plc were assumed by Atlassian Corporation and were converted into rights to acquire Atlassian Corporation shares of Class A Common Stock on the same terms. As of June 30, 2023, the Company’s common stock consists of Class A Common Stock and Class B Common Stock, each of which has a par value of $0.00001. Each share of Class B Common Stock will convert automatically into one share of Class A Common Stock in the following circumstances: (1) upon the written consent of the holders of at least 66.66% of the total number of outstanding shares of Class B Common Stock; (2) if the aggregate number of shares of Class B Common Stock then outstanding comprises less than ten percent (10%) of the total number of shares of Class A Common Stock and Class B Common Stock then outstanding; and (3) upon any transfer to a person that is not a permitted transferee described in the Company’s amended and restated certificate of incorporation. Any dividend declared by the Company shall be paid on the Class A Common Stock and the Class B Common Stock pari passu as if they were all stock of the same class. Additionally, upon the liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, holders of Class A Common Stock and Class B Common Stock will be entitled to receive ratably on a per share basis all assets of the Company available for distribution to its stockholders, unless disparate or different treatment of the shares of each such class is approved by the affirmative vote of the holders of a majority of the outstanding shares of Class A Common Stock and by the affirmative vote of the holders of a majority of the outstanding shares of Class B Common Stock, each voting separately as a class. Each share of Class A Common Stock is entitled to one vote. Each share of Class B Common Stock is entitled to 10 votes. Preferred Stock The Company’s board of directors has the authority to issue up to 10 million shares of preferred stock in one or more series. The Company’s board of directors may designate the rights, preferences, privileges and restrictions of the preferred stock, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, the right to elect directors to and increase or decrease the number of shares of any series. As of June 30, 2023 and 2022, no shares of preferred stock were outstanding. Stock-based Compensation Upon the completion of the U.S. Domestication, the Company assumed the following plans: the Atlassian Corporation Plc 2015 Share Incentive Plan (the “2015 Plan”); and the 2015 Employee Share Purchase Plan (the “ESPP” and, together with the 2015 Plan, the “Incentive Plans”). In connection with its assumption of the Incentive Plans, the Company amended and restated the 2015 Plan as the Atlassian Corporation Amended and Restated 2015 Share Incentive Plan, and the ESPP as the Atlassian Corporation Amended and Restated 2015 Employee Share Purchase Plan, in each case to reflect the assumption and changes in applicable law and to provide that the securities to be issuable in connection with equity awards will be shares of the Company’s Class A Common Stock instead of Atlassian Corporation Plc Class A ordinary shares. In addition, Atlassian Corporation assumed each restricted share unit award covering Atlassian Corporation Plc Class A ordinary shares that was outstanding under an equity incentive plan and amended such restricted share unit award to reflect the assumption by Atlassian Corporation and to provide for the securities issuable in connection with the exercise or settlement of the award to be shares of Atlassian Corporation’s Class A Common Stock. At June 30, 2023, the Company had 30,935,067 shares of its common stock available for future issuance under the 2015 Plan, which plan provides for the issuance of incentive and non-statutory share options, share appreciation rights, restricted stock awards, RSUs, unrestricted stock awards, cash-based awards, performance stock awards, performance-based awards to covered employees, and dividend equivalent rights to qualified employees, directors and consultants. The Company currently does not have common stock outstanding or open offering periods under the ESPP. RSU grants generally vest over four years with 25% vesting on the one year anniversary of the date of grant and 1/12 th of the remaining RSUs vest over the remaining three years, on a quarterly basis thereafter. Effective from April 2021, new RSU grants to existing employees vest evenly over four years on a quarterly basis. Performance-based RSUs have non-market performance vesting conditions. Individuals must continue to provide services to the Company in order to vest. Stock-based compensation is measured based on the grant date fair value of the awards and recognized in the consolidated statements of operations on a straight-line basis over the period during which the employee is required to perform services in exchange for the award. A summary of RSU activity for fiscal year 2023 is as follows (in thousands except share and per share data): Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Balance as of June 30, 2022 6,023,997 $ 257.62 $ 1,128,897 Granted 8,315,466 221.87 Vested (3,604,960) 236.90 $ 617,018 Forfeited or cancelled (1,171,585) 239.09 Balance as of June 30, 2023 9,562,918 $ 235.16 $ 1,604,753 The weighted-average grant date fair value of RSUs granted in fiscal years 2022 and 2021 was $332.43 and $192.62, respectively. The total intrinsic value of the RSUs vested in fiscal years 2022 and 2021 was $925.8 million and $734.6 million, respectively. The income tax benefit recognized related to awards vested in fiscal years 2023, 2022 and 2021 was $156.5 million, $242.8 million, and $194.3 million, respectively. As of June 30, 2023, total compensation cost not yet recognized in the consolidated financial statements related to employee and director RSU awards was $1.7 billion, which is expected to be recognized over a weighted-average period of 1.8 years. During fiscal year 2023, the Company did not grant shares of restricted stock. During fiscal year 2022, the Company granted 8,821 shares of restricted stock. As of June 30, 2023 and 2022, there were 6,131 and 72,484 shares of restricted stock outstanding, respectively. These outstanding shares of restricted stock are subject to forfeiture or repurchase at the original exercise price during the repurchase period following employee termination, as applicable. The total aggregate intrinsic value of outstanding shares of restricted stock were $1.0 million and $13.6 million as of June 30, 2023 and 2022, respectively. Of the total stock-based compensation expense, costs recognized for awards granted to non-employees were immaterial for all periods presented. Share Repurchase Program In January 2023, the Board of Directors authorized a program to repurchase up to $1.0 billion of the Company’s outstanding Class A Common Stock (the “Share Repurchase Program”). The Share Repurchase Program does not have a fixed expiration date, may be suspended or discontinued at any time, and does not obligate the Company to repurchase any specific dollar amount or to acquire any specific number of shares. The Company may repurchase shares of Class A Common Stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, in accordance with applicable securities laws and other restrictions. The timing, manner, price, and amount of any repurchases will be determined by the Company at its discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. During fiscal year 2023, the Company repurchased and subsequently retired approximately 1.0 million shares of its Class A Common Stock for approximately $154.2 million at an average price per share of $157.49. All repurchases were made in open market transactions. As of June 30, 2023, the Company was authorized to purchase a remaining $845.8 million of its Class A Common Stock under the Share Repurchase Program. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The Company computes net loss per share of Class A and Class B Common Stock using the two-class method. As the liquidation and dividend rights for both Class A and Class B Common Stock are identical, the net loss is allocated on a proportionate basis to the weighted-average number of shares of common stock outstanding for the period. Basic net loss per share attributable to Class A and Class B stockholders is computed by dividing the net loss by the weighted-average number of Class A and Class B Common Stock outstanding during the period. For the calculation of diluted net loss per share, net loss for basic EPS is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans. The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. Since the Company is in a loss position for all periods reported, basic and diluted net loss per share are the same for all periods as the inclusion of potential dilutive shares would have been anti-dilutive. The following tables present the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Fiscal Year Ended June 30, 2023 2022 2021 Class A Class B Class A Class B Class A Class B Numerator: Net Loss $ (283,907) $ (202,854) $ (290,290) $ (229,220) $ (308,953) $ (270,026) Denominator: Weighted-average shares outstanding, basic and diluted 149,493 106,814 141,545 111,767 133,233 116,446 Net loss per share, basic and diluted $ (1.90) $ (1.90) $ (2.05) $ (2.05) $ (2.32) $ (2.32) The potential weighted average dilutive securities that were not included in the dilutive earnings per share calculation because the effect would be anti-dilutive are as follows (shares in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Class A Common Stock options — 1 63 Class A Common Stock RSU awards 7,426 3,736 3,480 Class A Common Stock restricted stock awards 17 82 178 Total potentially dilutive securities 7,443 3,819 3,721 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before provision for income taxes by U.S. and foreign jurisdictions consist of the following (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Domestic $ (25,250) $ (480,982) $ (603,257) Foreign (285,886) 10,044 88,842 Total $ (311,136) $ (470,938) $ (514,415) The provision for income taxes consists of the following (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Current: Federal $ 4,327 $ 280 $ 155 State 1,045 570 367 Foreign 162,072 51,040 73,017 Total 167,444 51,890 73,539 Deferred: Federal 1,467 (44) (777) State (1,066) (1,641) (1,053) Foreign 7,780 (1,633) (7,145) Total 8,181 (3,318) (8,975) Total provision for income taxes $ 175,625 $ 48,572 $ 64,564 The effective income tax rate differs from the federal statutory income tax rate applied to the loss before income taxes due to the following (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Tax at federal statutory rate $ (65,339) $ (98,897) $ (108,027) State, net of the federal benefit 13,042 13,363 9,144 Effects of non-U.S. operations 15,163 (6,879) 5,436 Tax credits (99,398) (107,956) (73,280) Stock-based compensation 80,471 (41,692) (69,276) Non-deductible executive compensation 6,022 13,580 6,552 Non-deductible charges relating to the Notes — 89,188 131,769 Intellectual property transfer — — 5,460 Australian R&D deductions forgone in lieu of R&D credit 30,303 32,661 22,404 Foreign taxes 2,457 4,491 1,052 Basis difference in investments (43,564) (36,853) (13,789) Change in reserves 132,528 14,179 10,091 Change in valuation allowance 98,613 172,033 136,284 Other 5,327 1,354 744 Provision for income taxes $ 175,625 $ 48,572 $ 64,564 Effective Tax Rate (%) (56) % (10) % (13) % Significant components of the Company's deferred tax assets and deferred tax liabilities are shown below (in thousands). Where necessary, a valuation allowance has been recognized to offset our deferred tax assets by the amount of any tax benefits that are not expected to be realized. As of June 30, 2023 2022 Deferred tax assets: Property and equipment $ 5,528 $ 8,531 Net operating loss carryforwards 857,944 1,013,750 Credit carryforwards 183,520 154,487 Operating lease liabilities 64,774 74,269 Basis differences in investments 1,690,440 1,601,047 Stock-based compensation 7,246 (33,095) Provisions, accruals and prepayments 36,255 38,763 Deferred revenue 208,541 146,044 Capitalized research and development 28,330 — IRC 163(j) carryforward 84 27,032 Intangible assets 641 (3,210) Total deferred tax assets $ 3,083,303 $ 3,027,618 Less valuation allowance (3,019,080) (2,941,191) Total deferred tax assets, net of valuation allowance $ 64,223 $ 86,427 Deferred tax liabilities: Unrealized foreign currency exchange losses $ 3,087 $ 1,338 Unrealized investment gains 11,684 9,373 Operating right of use assets 48,119 69,166 Other, net 2,057 (3,473) Total deferred tax liabilities $ 64,947 $ 76,404 Net deferred tax assets (liabilities) $ (724) $ 10,023 The Company recorded a valuation allowance of $3.0 billion, $2.9 billion and $2.8 billion as of June 30, 2023, 2022, and 2021, respectively, primarily relating to the basis difference of the US investment in a wholly owned partnership, U.S. and Australian net operating loss and credit carryforwards, and the deferred revenue deferred tax assets. The change in valuation allowance as of June 30, 2023, 2022 and 2021, was primarily related to an increase in the basis difference of the US investment in a wholly owned partnership and an increase in the deferred revenue deferred tax assets and certain credit carryforwards, offset by the utilization of U.S. federal and state net operating losses. The Company regularly assesses the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all of its deferred tax assets will not be realized. The Company evaluates and weighs all positive and negative evidence such as historic results, future reversals of deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax planning strategies. The assessment requires significant judgement and is performed in each of the applicable jurisdictions. The Company intends to maintain a full valuation allowance on its federal deferred tax assets in the U.S. and Australia until there is sufficient positive evidence to support their reversal. As of June 30, 2023, the Company had U.S. federal, state, and foreign net operating loss carryforwards of $886.0 million tax effected. Of the $788.3 million tax effected U.S. federal net operating loss carryforwards, $788.0 million may be carried forward indefinitely, and the remaining $0.3 million will begin to expire in 2032. The state net operating loss carryforwards of $94.5 million tax effected begin to expire in 2024. As of June 30, 2023, the Company also had research and development federal and state tax credits of $191.4 million. The federal tax credit carryforwards will expire beginning in 2035 if not utilized. The state tax credit carryforwards do not expire except for the State research and development credits of Texas which begins to expire in June 2038. Utilization of the Company’s US net operating loss and tax credit carryforwards may be subject to annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization. As of June 30, 2023, the Company also had Indian AMT credits of $3.7 million that will begin to expire in 2036 and Polish R&D credits of $5.3 million, which will begin to expire in 2027, but which may also be used to satisfy payroll tax liabilities in the future. The Inflation Reduction Act of 2022 (the “IRA”) was enacted on August 16, 2022 and includes various corporate tax provisions, including a new Corporate Alternative Minimum Tax (“Corporate AMT”) on applicable corporations with adjusted financial statement income exceeding $1 billion, on average, over the last three years. The Corporate AMT is effective for tax years beginning after December 31, 2022. As of June 30, 2023, the newly enacted IRA tax provisions are not material to the Company. U.S. income tax has not been recognized on the excess of the amount for financial reporting over the tax basis of investment in foreign subsidiaries that is indefinitely reinvested outside the United States. Un-remitted earnings become taxable upon repatriation of assets from the subsidiary or a sale or liquidation of the subsidiary. The amount of such unremitted earnings is approximately $458.8 million as of June 30, 2023, and the corresponding unrecognized deferred tax liability is not material. The Company recognizes the tax benefit of an uncertain tax position only if it concludes it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Beginning of the period $ 53,483 $ 37,944 $ 26,841 Tax positions taken in prior period: Gross increases 112,781 1,031 147 Gross decreases (198) — (56) Tax positions taken in current period: Gross increases 15,171 14,542 11,044 Settlements (57,004) — — Lapse of statute of limitations (32) (34) (32) Currency translation effect (1,899) — — End of period $ 122,302 $ 53,483 $ 37,944 As of June 30, 2023, 2022 and 2021, the Company had gross unrecognized tax benefits of approximately $113.2 million, $2.5 million, and $1.9 million, respectively, that would impact the effective tax rate if recognized. The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, Australia, and in various other international jurisdictions. Tax years 2012 and forward generally remain open for examination for federal and state tax purposes. Tax years 2017 and forward generally remain open for examination for foreign tax purposes. To the extent utilized in future years’ tax returns, net operating loss carryforwards as of June 30, 2023 and 2022 will remain subject to examination until the respective tax year is closed. There are differing interpretations of tax laws and regulations, and as a result, disputes may arise with tax authorities involving issues of the timing and amount of deductions and allocations of income among various tax jurisdictions. The Company believes that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations. Although the timing of the resolution, settlement, and closure of any audit is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. Since fiscal year 2020, the Company has been in unilateral advanced pricing agreement (“APA”) negotiations with the Australian Taxation Office relating to the Company’s transfer pricing arrangements between Australia and the U.S. During fiscal year 2023, a framework was agreed upon to finalize the Company’s transfer pricing arrangements for the proposed APA period (tax years ended June 30, 2019 to June 30, 2025). It is reasonably possible that uncertain tax benefits could decrease by up to $53.7 million in the next twelve months due to anticipated resolutions with ATO of APA negotiations. While the Company’s recorded tax reserves are the best estimate of its liabilities, differences may occur in the future, depending on final resolution of the APA negotiations. In addition to the Australian APA, the Company believes it is reasonably possible the balance of unrecognized tax benefits could change in the next 12 months due to the completion of ongoing income tax audits. The estimated range of the change is a decrease of $1.5 million to an increase of $9.3 million. The Company has recognized interest and penalties related to unrecognized tax benefits in the income tax provision of approximately $5.8 million during fiscal year 2023, and the accrual balances were $5.8 million as of June 30, 2023 . The Company had not recognized any interest and penalties related to unrecognized tax benefits during fiscal years 2022 and 2021. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net loss | $ (486,761) | $ (519,510) | $ (578,979) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Cameron Deatsch [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 30, 2023, Cameron Deatsch, the Company’s Chief Revenue Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of (i) up to 28,087 shares of the Company’s Class A Common Stock, (ii) up to 100% of the shares of the Company’s Class A Common Stock issued upon the settlement of 51,371 outstanding RSUs, net of shares sold to cover tax withholding obligations in connection with the vesting and settlement of such RSUs and (iii) up to 80% of the shares of the Company’s Class A Common Stock issued upon the settlement of any future RSUs awarded during the plan period, net of shares sold to cover tax withholding obligations in connection with the vesting and settlement of such RSUs, in each case until August 31, 2024. | |
Name | Cameron Deatsch | |
Title | Chief Revenue Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 30, 2023 | |
Arrangement Duration | 459 days | |
Heather M. Fernandez [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 31, 2023, Heather M. Fernandez, a member of the Company’s board of directors, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 6,000 shares of the Company’s Class A Common Stock until August 31, 2024. | |
Name | Heather M. Fernandez | |
Title | member of the Company’s board of directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 31, 2023 | |
Arrangement Duration | 458 days | |
Cameron Deatsch Trading Arrangement, Common Stock [Member] | Cameron Deatsch [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 28,087 | 28,087 |
Cameron Deatsch Trading Arrangement, Restricted Stock Units (RSU) [Member] | Cameron Deatsch [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 51,371 | 51,371 |
Heather M. Fernandez Trading Arrangement, Class A Common Stock [Member] | Heather M. Fernandez [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 6,000 | 6,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Preparation | The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These principles are established primarily by the Financial Accounting Standards Board (“FASB”). |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions in the Company’s consolidated financial statements. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Such management estimates and assumptions include, but are not limited to, the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations; useful lives and impairment of long-lived assets, valuation of intangible assets, fair value measurement of financial instruments and income taxes. Actual results could differ materially from these estimates. |
Segment | The Company operates as a single operating segment. An operating segment is defined as a component of an entity for which discrete financial information is available and whose results of operations are regularly reviewed by the chief operating decision maker (“CODM”). The Company’s CODMs are its Co-Chief Executive Officers, who review its results of operations to make decisions about allocating resources and assessing performance based on consolidated financial information. Accordingly, the Company has determined it operates as a single operating and reportable segment. |
Foreign Currency | The Company’s consolidated financial statements are presented using the U.S. dollar, which is its reporting currency. The functional currency for certain of the Company’s foreign subsidiaries is the U.S. dollar, while others use local currencies. The Company translates the foreign functional currency financial statements to U.S. dollars for those entities that do not have the U.S. dollar as their functional currency using the exchange rates at the balance sheet date for assets and liabilities, the period average exchange rates for revenues and expenses, and the historical exchange rates for equity transactions. The effects of foreign currency translation adjustments are recorded in accumulated other comprehensive income in the consolidated statements of comprehensive loss. Foreign currency transaction gains and losses are included in other income (expense), net on the consolidated statements of operations. |
Revenue Recognition | Policies, Estimates and Judgments Revenues are generally recognized upon the transfer of control of promised products or services provided to customers, reflecting the amount of consideration the Company expects to receive for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales and other similar taxes collected from customers, which are subsequently remitted to governmental authorities. Revenues are recognized upon the application of the following steps: 1. Identification of the contract or contracts with a customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of revenue when, or as, the performance obligation is satisfied. The timing of revenue recognition may differ from the timing of billing our customers. The Company receives payments from customers based on a billing schedule as established in its contracts. Contract assets are recognized when performance is completed in advance of billings. Deferred revenue is recorded when billings are in advance of performance under the contract. The Company’s revenue arrangements include standard warranty provisions that the products and services will perform and operate in all material respects with the applicable published specifications, the financial impacts of which have historically been and are expected to continue to be insignificant. The Company’s contracts do not include a significant financing component. Customer contracts often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require judgment. The Company allocates the transaction price for each customer contract to each performance obligation based on the relative SSP for each distinct performance obligation. Judgment is required in determining the SSP for each distinct performance obligation. The Company typically determines an SSP range for its products and services, which is reassessed on a periodic basis or when facts and circumstances change. In most cases, the Company is able to determine SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. In instances where performance obligations do not have observable standalone sales, the Company utilizes available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs to estimate the price that it would charge if the products and services were sold separately. Products are generally sold with a right of return and may include other credits or incentives, and, in certain instances, the Company may estimate customer usage of its services, which are accounted for as variable consideration when determining the amount of revenue to recognize. Returns and credits are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Variable consideration was not material for the periods presented. Revenue recognized from contracts with customers is disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company reports revenues in three categories: (i) subscription, (ii) maintenance, and (iii) other. In addition, revenue is presented by geographic region and deployment option in Note 14, “ Revenue. ” Subscription Revenues Subscription revenues consist primarily of fees earned from subscription-based arrangements for providing customers the right to use the Company’s software in a cloud-based-infrastructure that the Company provides. The Company also sells on-premises term license agreements for its data center products, which are software licensed for a specified period, and includes support and maintenance service that is bundled with the license for the term of the license period. Subscription revenues are driven primarily by the number and size of active licenses, the type of product and the price of the licenses. Subscription-based arrangements generally have a contractual term of one Maintenance Revenues Maintenance revenues represent fees earned from providing customers with unspecified future updates, upgrades and enhancements and technical product support for perpetual license products on an if-and-when-available basis. Maintenance revenue is recognized ratably over the term of the support period. Other Revenues Other revenues primarily include perpetual license revenue and fees received for sales of third-party apps in the Atlassian Marketplace. Technical account management, consulting and training services are also included in other revenues. Perpetual license revenues represent fees earned from the license of software to customers for use on the customer’s premises other than data center products. Software is licensed on a perpetual basis. Perpetual license revenues consist of the revenues recognized from sales of licenses to customers. The Company no longer sells perpetual licenses or upgrades for our Server offerings. The Company typically recognized revenue on the license portion of perpetual license arrangements once the customer obtained control of the license, which is generally upon delivery of the license. Revenue from the sale of third-party apps via Atlassian Marketplace is recognized on the date of product delivery given that all of our obligations have been met at that time and on a net basis the Company functions as the agent in the relationship. Revenue from technical account management is recognized over the time period that the customer has access to the service. Revenue from consulting and training is recognized over time as the services are performed. |
Deferred Contract Acquisition Costs | Deferred contract acquisition costs are costs incurred to obtain a contract, if such costs are recoverable, and consist primarily of sales commissions and related payroll taxes. Incremental costs of obtaining a contract are earned on new and expansion contracts which are capitalized and amortized over the average period of benefit the Company estimates to be four years, which is typically greater than the term of the initial customer contract and reflects the average period of benefit, including anticipated renewals. The Company does not pay sales commissions upon contract renewal. The Company determines the period of benefit for commissions paid for the acquisition of the initial customer contract by taking into consideration the initial estimated customer life and the technological life of our unified communications platform and related significant features. The Company includes the deferred contract costs in prepaid expense and other current assets and other non-current assets on the consolidated balance sheets and amortization of deferred contract acquisition costs in marketing and sales expense in the consolidated statements of operations. |
Cash Cash Equivalents and Restricted Cash | Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase. Cash equivalents also include amounts due from third-party credit card processors as they are both short-term and highly liquid in nature and are typically converted to cash within three days of the sales transaction. Cash and cash equivalents are stated at fair value. |
Accounts Receivable, net | The Company records trade accounts receivable at the invoice value, and such receivables are non-interest bearing. The Company considers receivables past due based on the contractual payment terms. The Company makes estimates of expected credit and collectability trends based on an assessment of various factors including historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment that may affect our ability to collect from customers. |
Fair Value Measurements | Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories of inputs: • Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities; • Level 2 - Observable inputs (other than Level 1 prices) such as quoted prices for similar assets or liabilities, 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 assets or liabilities; • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or examination. |
Marketable Securities | The Company classifies all marketable debt securities that have original stated maturities of greater than three months as marketable securities on its consolidated balance sheets. The Company determines the appropriate classification of its investments in marketable debt securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its marketable debt securities as available-for-sale (“AFS”). After consideration of its risk versus reward objectives, as well as its liquidity requirements, the Company may sell these debt securities prior to their stated maturities. The Company considers all of our marketable securities as funds available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities as current assets on the consolidated balance sheets. The Company evaluates AFS securities with unrealized loss positions for credit loss by assessing whether the decline in fair value below the amortized cost basis has resulted from a credit loss or other factors, whether the Company expects to recover the entire amortized cost basis of the security, its intent to sell and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. The Company carries these securities at fair value, and reports the unrealized gains and losses, net of taxes, as a component of accumulated other comprehensive income except for the changes in allowance for expected credit losses, which are recorded in other income (expense), net. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net on the consolidated statements of operations. |
Strategic Investments | The Company holds strategic investments in privately held debt and equity securities, as well as publicly held equity securities in which the Company does not have a controlling interest. Investments in privately held debt securities are classified as AFS securities. Investments in publicly held equity securities are recorded at fair value with changes in the fair value of the investments recorded in other income (expense), net in the consolidated statements of operations. Investments in privately held equity securities without readily determinable fair values in which the Company does not own a controlling interest or have significant influence over are measured in accordance with the measurement alternative. In applying the measurement alternative, the carrying value of the investment is measured at cost, less impairment, if any, plus or minus changes resulting from observable price changes from orderly transactions for the identical or a similar investment of the same issuer in the period of occurrence. Changes to the carrying value of these investments are recorded through other income (expense), net on the consolidated statements of operations. In determining adjustments to the carrying value of its strategic invest ments in privately held companies, the Company uses the most recent data available to the Company. Valuations of privately held securities are inherently complex and the determination of whether an orderly transaction is for an identical or similar investment requires judgment. In its evaluation, the Company considers factors such as differences in the rights and preferences of the investments and the extent to which those differences would affect the fair values of those investments. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors including the investee’s financial metrics, market acceptance of the investee’s product or technology, general market conditions and liquidity considerations. |
Equity Method Investments | Privately held equity securities in which the Company does not have a controlling financial interest but does exercise significant influence over the investment are accounted for under the equity method. The Company records a proportionate share of the investment’s earnings or losses, and impairment, if any, as a component of other income (expense), net in the consolidated statements of operations. These investments are included in strategic investments in the consolidated balance sheets. |
Variable Interest Entities | For entities that meet the definition of a variable interest entity (“VIE”), the Company consolidates those entities when the Company is the primary beneficiary of the entity. The Company is determined to be the primary beneficiary when it possesses both the unilateral power to direct activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company continually evaluates whether it qualifies as the primary beneficiary and reconsiders its determination of whether an entity is a VIE upon reconsideration events. |
Exchangeable Senior Notes | In 2018, the Company, through its subsidiary Atlassian US, Inc., issued exchangeable senior notes due May 1, 2023 (the “Notes”), which were classified as financial liabilities at amortized cost and measured using the effective interest rate (“EIR”) method. Amortized cost was calculated by taking into account any discount and issuance cost that were an integral part of the EIR. The EIR amortization was includ ed as interest expense in the consolidated statements of operations. In connection with the issuance of the Notes, the Company entered into privately negotiated capped call transactions (the “Capped Calls”) with certain financial institutions. The Capped Call transactions were scheduled to expire in May 2023 and were required to be settled in cash. As of June 30, 2022 the Notes and Capped Calls had been fully settled and are no longer outstanding. Refer to Note 12, “ Debt |
Derivative Financial Instruments | The Company enters into foreign exchange forward contracts with the objective to mitigate certain currency risks associated with cost of revenues and operating expenses denominated in foreign currencies. These foreign exchange forward contracts are designated as cash flow hedges. The Company also enters into foreign exchange forward contracts to hedge a portion of certain foreign currency denominated as monetary asse ts and liabilities to reduce the risk that such foreign currency will be adversely affected by changes in exchange rates . The Company uses interest rate swaps to hedge the variability of cash flows in the interest payments associated with its variable-rate debt due to changes in the Secured Overnight Financing Rate (“SOFR”) based floating interest rate. The interest rate swaps are designated as cash flow hedges and involve interest obligations for U.S. dollar-denominated amounts. T he Company does not enter into derivative instrument transactions for trading or speculative purposes. Hedging derivative instruments are recognized as either assets or liabilities and are measured at fair value. For derivative instruments designated as cash flow hedges, the gains (losses) on the derivatives are initially reported as a component of other comprehensive income and are subsequently recognized in earnings when the hedged exposure is recognized in earnings. For derivative instruments that are not designated as hedges, gains (losses) from changes in fair values are primarily recognized in other income (expense), net. The Company enters into master netting agreements with financial institutions to execute its hedging program. The master netting agreements are with select financial institutions to reduce the Company’s credit risk, as well as to reduce its concentration of risk with any single counterparty. The Company had other derivatives, such as the embedded exchange feature of the Notes and Capped Calls. Please see Note 12, “ Debt ” for details. The Notes and Capped Calls were measured at fair value at each reporting date, and gains (losses) from changes in fair values were recognized in other income (expense), net in the consolidated statements of operations. The Company used the Black-Scholes option pricing models to estimate the fair value of the exchange feature of the Notes. Certain inputs used in the model such as stock price volatility requires judgment. The fair value of the Capped Calls was obtained from counterparty banks. |
Property and Equipment | Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method to allocate the cost over the estimated useful lives. The estimated useful lives for each asset class are as follows: Equipment 3 years Computer hardware and computer-related software 3 years Furniture and fittings 5 years Leasehold improvements Shorter of the remaining lease term or 7 years |
Leases | The Company determines if an arrangement is a lease at inception. The Company’s lease agreements generally contain lease and non-lease components. Payments under the Company’s lease arrangements are primarily fixed. Non-lease components primarily include payments for maintenance and utilities. The Company combines fixed payments for non-lease components with lease payments and account for them together as a single lease component which increases the amount of its lease assets and liabilities. Certain lease agreements contain variable payments, which are expensed as incurred and not included in the lease assets and liabilities. These amounts include payments affected by the Consumer Price Index and payments for maintenance and utilities. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The Company’s lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company generally uses the base, non-cancelable, lease term when determining the lease assets and liabilities. The Company reassesses the lease term if and when a significant event or change in circumstances occurs. Lease assets also include any prepaid lease payments and lease incentives. Operating lease expense (excluding variable lease costs) is recognized on a straight-line basis over the lease term. The Company applies the short-term lease recognition exemption for short-term leases, which are leases with a lease term of 12 months or less. Payments associated with short-term leases are recognized on a straight-line basis over the lease term. |
Assets Held for Sale | The Company classifies assets as held for sale when all of the following are met: (i) management has committed to a plan to sell the assets; (ii) the assets are available for immediate sale in their present condition; (iii) an active program to locate a buyer has been initiated; (iv) it is probable that a sale will occur within one year; (v) the assets are being actively marketed for sale at a price that is reasonable in relation to their current fair value; and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. If all held for sale criteria are met, the assets are reclassified and presented separately in the consolidated balance sheets as assets held for sale at the lower of the carrying value or the fair value, less cost to sell, and no longer depreciated or amortized. |
Business Combinations | The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed, based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. Assumptions used to estimate the fair value of the intangible assets include, but are not limited to, revenue growth rates, technology migration curves, customer attrition rates and discount rates. These estimates are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which may not be later than one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. |
Intangible Assets | The Company acquires intangible assets separately or in connection with business combinations. Intangible assets are measured at cost initially. Intangible assets with finite lives are amortized over their estimated useful life using the straight-line method. The amortization expense on intangible assets is recognized in the consolidated statements of operations in the expense category consistent with the function of the intangible asset. |
Impairment of Long-Lived Assets | Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. When the projected undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts, the assets are adjusted to their estimated fair value and an impairment loss is recorded as a component of operating income (expense). |
Goodwill | Goodwill is the excess of the aggregate of the consideration transferred over the identifiable assets acquired and liabilities assumed. Goodwill is tested for impairment at least annually during the fourth quarter of the Company’s fiscal year and more often if and when circumstances indicate that the carrying value may be impaired. The Company’s reporting unit is at the operating segment level. The Company performs its goodwill impairment test at the level of its operating segment, as there are no levels below the operating segment level for which discrete financial information |
Stock-based Compensation | The Company recognizes compensation expense related to all stock-based awards, including restricted stock units (“RSU”), and restricted stock awards issued to the Company’s employees in exchange for their service, based on the estimated fair value of the awards on the grant date. The fair value of each RSU or restricted stock award is based on the fair value of the Company’s Class A Common Stock on the date of grant. The Company recognizes costs related to stock-based awards, net of estimated forfeitures, over the awards’ requisite service period on a straight-line basis. The Company estimates forfeitures based on historical experience. The respective expenses are recognized as employee benefits and classified in the consolidated statements of operations according to the activities that the employees perform. |
Defined Contribution Plan | The Company offers various defined contribution plans for our U.S. and non-U.S. employees. The Company matches a portion of employee contributions each pay period, subject to maximum aggregate matching amounts, or contributes based on local legislative rates for eligible employees. |
Advertising Costs | Advertising costs are expensed as incurred as a component of marketing and sales expense in the consolidated statements of operations. Advertising expense was $89.5 million, $90.3 million and $71.0 million for fiscal years 2023, 2022, and 2021, respectively. |
Research and Development | Research and development costs are expensed as incurred and consists of the employee, software, and hardware costs incurred for the development of new products, enhancements and updates of existing products and quality assurance activities. The costs incurred for the development of the Company’s cloud-based platform and internal use software are evaluated for capitalization during the development phase. Capitalized software development costs on the Company’s consolidated balance sheet were not material for the periods presented. |
Concentration of Credit Risk and Significant Customers | Financial instruments potentially exposing the Company to credit risk consist primarily of cash, cash equivalents, accounts receivable, derivative contracts and investments. The Company holds cash at financial institutions that management believes are high credit, quality financial institutions and invests in investment grade securities rated A- and above and debt securities. The Company’s derivative contracts expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. The Company enters into master netting agreements with select financial institutions to reduce its credit risk and trades with several counterparties to reduce its concentration risk with any single counterparty. The Company does not have significant exposure to counterparty credit risk at this time. In addition, the Company does not require nor is required to post collateral of any kind related to any foreign currency derivatives.Credit risk arising from accounts receivable is mitigated to a certain extent due to our large number of customers and their dispersion across various industries and geographies. The Company’s customer base is highly diversified, thereby limiting credit risk. The Company manages credit risk with customers by closely monitoring its receivables and contract assets. The Company continuously monitors outstanding receivables locally to assess whether there is objective evidence that outstanding accounts receivables and contract assets are credit-impaired. |
Income Taxes | The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities represent temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax basis used in the computation of taxable income. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. The Company recognizes the effect on deferred tax assets and liabilities of a change in tax rates within the provision for income taxes as expense and income in the period that includes the enactment date. The Company accounts for the tax impact of including Global Intangible Low-Taxed Income (GILTI) in U.S. taxable income as a period cost. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. Changes in deferred tax assets or liabilities are recognized as a component of benefit from (p rovision for) income taxes in the consolidated statements of operations, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively. Where deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. Deferred tax assets are regularly evaluated for future realization and reduced by a valuation allowance to an amount for which realization is more likely than not. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income, tax planning strategies, carry back potential if permitted under the tax law, and results of recent operations. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the amount of future taxable income, together with future tax-planning strategies. Assumptions about the generation of future taxable income depend on management’s estimates of future cash flows, future business expectations, capital expenditures, dividends, and other capital management transactions. Management judgment is also required in relation to the application of income tax legislation, which involves complexity and an element of uncertainty. In the event there is a change in the Company’s assessment of its ability to recover deferred tax assets, the income tax provision would be adjusted accordingly, resulting in a corresponding adjustment to the consolidated statements of operations. Uncertain tax positions are recorded in accordance with Accounting Standards Codification Topic 740 Income Taxes |
New Accounting Standards Not Yet Adopted And Recently Adopted Accounting Pronouncements | New Accounting Standards Not Yet Adopted in Fiscal Year 2023 In June 2022, the FASB issued Accounting Standards Update (“ASU”) No. 2022-03, "Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions." The ASU amends ASC 820: Fair value measurement, to clarify that a contractual sales restriction is not considered in measuring an equity security at fair value and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The amendments in this ASU are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this pronouncement on the consolidated financial statements. Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805)” . The amendments in this ASU require that an acquirer recognizes and measures contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption is permitted. The Company adopted this standard during the fourth quarter of fiscal year 2023. The adoption of this new standard did not have a material impact on the Company’s consolidated financial statements . In August 2020, the FASB issued ASU 2020-06, “ Debt–Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging–Contracts in Entity’s Own Equity (Subtopic 815-40) ” to simplify the accounting for convertible instruments and contracts on an entity’s own equity. The Company adopted this standard effective July 1, 2022 using a modified retrospective method. The adoption of this new standard did not have a material impact on the Company’s consolidated financial statements . In March 2020, the FASB issued ASU No. 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” This ASU is elective and provides relief to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. Optional expedients are provided for contract modification accounting under topics such as debt, leases, and derivatives. The optional amendments were to be effective for all entities as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, “Deferral of the Sunset Date of Topic 848,” which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024 to align with the amended cessation date of LIBOR which was delayed to June 30, 2023. The Company adopted this ASU during the fourth quarter of fiscal year 2023 and elected to apply the practical expedient which allows us to account for the modification of the Credit Facility as if the modification was not substantial. The Company has also elected the practical expedient to assume that the forecasted transaction in a cash flow hedge is probable of occurring and the practical expedient to continue to apply hedge accounting without dedesignating the interest rate swap. The adoption of this accounting standard did not have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | The estimated useful lives for each asset class are as follows: Equipment 3 years Computer hardware and computer-related software 3 years Furniture and fittings 5 years Leasehold improvements Shorter of the remaining lease term or 7 years Property and equipment, net consisted of the following (in thousands): As of June 30, 2023 2022 Equipment $ 9,298 $ 9,140 Computer Hardware and Software 29,801 18,324 Furniture and Fittings 24,773 25,157 Leasehold Improvements and Other 123,125 124,758 Property and equipment, gross 186,997 177,379 Less: accumulated depreciation and impairment (105,595) (76,717) Property and equipment, net $ 81,402 $ 100,662 |
Schedule of Estimated Useful Lives for Intangible Assets | The estimated useful lives for each intangible asset class are as follows: Patents, trademarks and other rights 5 - 12 years Customer relationships 5 - 10 years Acquired developed technology 4 - 6 years Intangible assets consisted of the following (in thousands): As of June 30, Weighted-Average Remaining Useful Lives 2023 2022 Acquired Developed Technology $ 235,818 $ 234,618 2 Patents, Trademarks, and Other Rights 33,393 33,393 5 Customer Relationships 129,502 129,502 5 Intangible assets, gross 398,713 397,513 Less: accumulated amortization (329,641) (296,673) Intangible assets, net $ 69,072 $ 100,840 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023, by level within the fair value hierarchy (in thousands): Level 1 Level 2 Total Assets measured at fair value Cash and cash equivalents: Money market funds $ 1,338,509 $ — $ 1,338,509 Marketable securities: Certificates of deposit and time deposits — 10,000 10,000 Derivative financial instruments — 64,210 64,210 Strategic investments: Publicly traded equity securities 19,365 — 19,365 Total assets measured at fair value $ 1,357,874 $ 74,210 $ 1,432,084 Liabilities measured at fair value Derivative financial instruments $ — $ 10,114 $ 10,114 Total liabilities measured at fair value $ — $ 10,114 $ 10,114 The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022, by level within the fair value hierarchy (in thousands): Level 1 Level 2 Total Assets measured at fair value Cash and cash equivalents: Money market funds $ 555,247 $ — $ 555,247 Marketable securities: U.S. treasury securities — 70,294 70,294 Certificates of deposit and time deposits — 3,000 3,000 Derivative financial instruments — 44,052 44,052 Strategic investments: Publicly traded equity securities 30,801 — 30,801 Total assets measured at fair value $ 586,048 $ 117,346 $ 703,394 Liabilities measured at fair value Derivative financial instruments $ — $ 24,100 $ 24,100 Total liabilities measured at fair value $ — $ 24,100 $ 24,100 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Securities Reconciliation | The Company’s investments of marketable securities as of June 30, 2023, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Certificates of deposit and time deposits $ 10,000 $ — $ — $ 10,000 Total marketable securities $ 10,000 $ — $ — $ 10,000 The Company’s investments of marketable securities as of June 30, 2022, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 70,947 $ — $ (653) $ 70,294 Certificates of deposit and time deposits 3,000 — — 3,000 Total marketable securities $ 73,947 $ — $ (653) $ 73,294 |
Investments Classified by Contractual Maturity Date | The table below summarizes the Company’s marketable securities by remaining contractual maturity based on their effective maturity dates (in thousands): June 30, 2023 June 30, 2022 Due in one year or less $ 10,000 $ 73,294 |
Schedule of Strategic Investments | The Company’s investments of privately held debt securities as of June 30, 2023, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Privately held debt securities $ 8,800 $ — $ (3,350) $ 5,450 The Company’s investments of privately held debt securities as of June 30, 2022, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Privately held debt securities $ 5,486 $ — $ (4,218) $ 1,268 as of June 30, 2023 are summarized below (in thousands): Publicly traded equity securities Privately held Total Initial total cost $ 10,270 $ 135,050 $ 145,320 Cumulative net gain (loss) 9,095 (398) $ 8,697 Carrying value $ 19,365 $ 134,652 $ 154,017 The carrying values for publicly traded and privately held equity securities as of June 30, 2022 are summarized below (in thousands): Publicly traded equity securities Privately held Total Initial total cost $ 10,270 $ 120,300 $ 130,570 Cumulative net gain 20,531 6,695 $ 27,226 Carrying value $ 30,801 $ 126,995 $ 157,796 |
Unrealized Gain (Loss) on Investments | The components of gains and losses on strategic investments were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Unrealized gains (losses) recognized on publicly traded equity securities $ (11,437) $ (79,608) $ 34,290 Unrealized gains recognized on privately held equity securities 307 6,945 — Unrealized losses recognized on privately held equity securities including impairment (7,642) — (250) Unrealized losses on privately held debt securities (350) — — Unrealized gains (losses), net $ (19,122) $ (72,663) $ 34,040 Realized gains recognized on publicly traded equity securities — — 14,040 Realized losses on debt securities (285) — — Gains (losses) on strategic investments, net $ (19,407) $ (72,663) $ 48,080 Unrealized gains (losses) recognized during the reporting period on privately held equity securities still held at the reporting date $ (6,986) $ 6,945 $ (250) |
Equity Method Investments | The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal year 2023 (in thousands): Equity Method Investment Balance as of July 20, 2022 $ 88,853 Effect of change in exchange rates (3,417) Balance as of June 30, 2023 $ 85,436 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of June 30, 2023 (in thousands, except for average interest rate): Notional Amounts of Derivative Instruments Notional Amount by Term to Maturity Classification by Notional Amount Under 12 months Over 12 months Total Cash Flow Hedge Non Hedge Total Forward contracts $ 849,811 $ 35,181 $ 884,992 $ 532,059 $ 352,933 $ 884,992 Interest rate swaps: Notional amount $ — $ 650,000 $ 650,000 $ 650,000 $ — $ 650,000 Average interest rate 0.81 % 0.81 % 0.81 % 0.81 % The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of June 30, 2022 (in thousands, except for average interest rate): Notional Amounts of Derivative Instruments Notional Amount by Term to Maturity Classification by Notional Amount Under 12 months Over 12 months Total Cash Flow Hedge Non Hedge Total Forward contracts $ 612,523 $ 37,015 $ 649,538 $ 401,534 $ 248,004 $ 649,538 Interest rate swaps: Notional amount $ — $ 650,000 $ 650,000 $ 650,000 $ — $ 650,000 Average interest rate 0.81 % 0.81 % 0.81 % 0.81 % |
Schedule of Fair Value of Derivative Instruments | The fair value of the Company’s derivative instruments were as follows (in thousands): As of June 30, Balance Sheet Location 2023 2022 Derivative assets Derivatives designated as hedging instruments: Foreign exchange forward contracts Prepaid expenses and other current assets $ 3,177 $ — Interest rate swaps Prepaid expenses and other current assets 28,926 13,296 Interest rate swaps Other non-current assets 28,215 30,367 Derivatives not designated as hedging instruments: Foreign exchange forward contracts Prepaid expenses and other current assets 3,892 389 Total derivative assets $ 64,210 $ 44,052 Derivative liabilities Derivatives designated as hedging instruments: Foreign exchange forward contracts Accrued expenses and other current liabilities $ 9,657 $ 18,208 Foreign exchange forward contracts Other non-current liabilities 209 812 Derivatives not designated as hedging instruments: Foreign exchange forward contracts Accrued expenses and other current liabilities 248 5,080 Total derivative liabilities $ 10,114 $ 24,100 |
Schedule of Pre-Tax Effects of Derivatives Designated as Cash Flow Hedging Instruments | The pre-tax effects of derivatives designated as cash flow hedging instruments on the consolidated financial statements were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Beginning balance of accumulated gains (losses) in accumulated other comprehensive income $ 24,502 $ (2,936) $ 13,072 Gross unrealized gains recognized in other comprehensive income 17,952 11,421 19,069 Net (gains) losses reclassified from cash flow hedge in accumulated other comprehensive income into profit or loss: Recognized in cost of revenues 1,831 525 (1,326) Recognized in research and development 16,890 10,513 (28,490) Recognized in marketing and sales 1,337 220 (400) Recognized in general and administrative 5,563 1,606 (4,861) Recognized in interest (19,905) 3,153 — Ending balance of accumulated gains (losses) in accumulated other comprehensive income $ 48,170 $ 24,502 $ (2,936) |
Assets Held For Sale (Tables)
Assets Held For Sale (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Major Assets Classified as Held for Sale | The major assets classified as held for sale as of June 30, 2023 and 2022 were as follows (in thousands): As of June 30, 2023 2022 Cash and cash equivalents $ — $ 2,701 Property and equipment, net $ — $ 57,482 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | The estimated useful lives for each asset class are as follows: Equipment 3 years Computer hardware and computer-related software 3 years Furniture and fittings 5 years Leasehold improvements Shorter of the remaining lease term or 7 years Property and equipment, net consisted of the following (in thousands): As of June 30, 2023 2022 Equipment $ 9,298 $ 9,140 Computer Hardware and Software 29,801 18,324 Furniture and Fittings 24,773 25,157 Leasehold Improvements and Other 123,125 124,758 Property and equipment, gross 186,997 177,379 Less: accumulated depreciation and impairment (105,595) (76,717) Property and equipment, net $ 81,402 $ 100,662 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill consisted of the following (in thousands): Goodwill Balance as of June 30, 2021 $ 715,929 Additions 9,361 Effect of change in exchange rates (2,452) Balance as of June 30, 2022 722,838 Additions 3,300 Effect of change in exchange rates 1,073 Balance as of June 30, 2023 $ 727,211 During fiscal years 2023 and 2022 the Company completed acquisitions primarily to expand our product and service offerings. The transactions were accounted for as business combinations and were not significant to our consolidated financial statements. |
Schedule of Finite-Lived Intangible Assets | The estimated useful lives for each intangible asset class are as follows: Patents, trademarks and other rights 5 - 12 years Customer relationships 5 - 10 years Acquired developed technology 4 - 6 years Intangible assets consisted of the following (in thousands): As of June 30, Weighted-Average Remaining Useful Lives 2023 2022 Acquired Developed Technology $ 235,818 $ 234,618 2 Patents, Trademarks, and Other Rights 33,393 33,393 5 Customer Relationships 129,502 129,502 5 Intangible assets, gross 398,713 397,513 Less: accumulated amortization (329,641) (296,673) Intangible assets, net $ 69,072 $ 100,840 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents the estimated future amortization expense related to intangible assets held as of June 30, 2023 (in thousands): Fiscal Years: 2024 $ 26,229 2025 15,208 2026 12,670 2027 7,839 Thereafter 7,126 Total future amortization expense $ 69,072 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): As of June 30, 2023 2022 Accrued expenses $ 107,479 $ 123,381 Employee benefits 191,801 197,701 Tax liabilities 88,748 26,367 Customer deposits 11,784 9,718 Derivative liabilities 9,905 23,288 Liabilities held for sale — 17,564 Other payables 13,414 8,120 Total accrued expenses and other liabilities $ 423,131 $ 406,139 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost | The components of lease costs and other information related to leases were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Operating lease costs $ 50,134 $ 49,647 $ 43,199 Variable lease costs 13,094 12,077 13,604 Total lease costs $ 63,228 $ 61,724 $ 56,803 Weighted average remaining lease term (in years) 7 8 7 Weighted average discount rate 2.5 % 2.4 % 2.5 % Supplemental cash flow information related to operating leases were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Cash payments for operating leases $ 41,493 $ 49,142 $ 44,874 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,580 $ 105,961 $ 27,042 |
Lessee, Operating Lease, Liability, Maturity | Future lease payments under non-cancelable operating leases with initial lease terms in excess of one year included in the Company’s lease liabilities as of June 30, 2023 were as follows (in thousands): Fiscal years: Operating Lease Payments 2024 $ 51,479 2025 49,078 2026 42,306 2027 37,534 2028 38,601 Thereafter 90,870 Total future operating lease payments 309,868 Less: imputed interest (27,103) Total lease liability balance (1) $ 282,765 (1) Lease liabilities include those operating leases that we plan to sublease as a part of our facilities consolidation restructuring efforts. For additional information, see Note 15, “ Restructuring .” |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Commitments | The following table sets forth contractual commitments as of June 30, 2023 and 2022 (in thousands): Fiscal Year Ended June 30, 2023 2022 Contractual purchase obligations $ 1,788,740 $ 152,935 Obligations for leases that have not yet commenced 919,333 956,118 Total purchase obligation $ 2,708,073 $ 1,109,053 |
Contractual Obligation, Fiscal Year Maturity | Maturities of purchase obligations as of June 30, 2023 were as follows (in thousands): Other contractual Leases not commenced Total Fiscal Year: 2024 $ 364,326 $ — $ 364,326 2025 406,108 — 406,108 2026 458,234 — 458,234 2027 419,572 34,434 454,006 2028 140,500 47,290 187,790 Thereafter — 837,609 837,609 Total commitments $ 1,788,740 $ 919,333 $ 2,708,073 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Charges | A summary of our restructuring charges for fiscal year 2023 by major activity type is as follows (in thousands): Severance and Other Termination Benefits Stock-based Compensation Lease Consolidation Total Cost of revenue $ 1,011 $ 288 $ 7,893 $ 9,192 Research and development 8,279 5,866 29,004 43,149 Marketing and sales 7,069 1,815 14,984 23,868 General and administrative 8,961 2,306 9,418 20,685 Total $ 25,320 $ 10,275 $ 61,299 $ 96,894 |
Summary of Changes in Liabilities | The following table is a summary of the changes in the liabilities, included within accrued expenses and other current liabilities on the consolidated balance sheets, related to the restructuring charges (in thousands): Severance and Other Termination Benefits Stock-based Compensation Lease Consolidation Total Charges $ 25,320 $ 10,275 $ 61,299 $ 96,894 Payments (22,481) — (201) (22,682) Non-cash items (633) (10,275) (61,098) (72,006) Liability as of June 30, 2023 $ 2,206 $ — $ — $ 2,206 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | The Company’s revenues by geographic region based on end-users who purchased the Company’s products or services are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Americas United States $ 1,537,328 $ 1,230,801 $ 901,389 Other Americas 227,838 178,067 127,092 Total Americas $ 1,765,166 $ 1,408,868 $ 1,028,481 EMEA 1,366,739 1,077,338 826,445 Asia Pacific 402,742 316,676 234,206 Total revenues $ 3,534,647 $ 2,802,882 $ 2,089,132 |
Revenue from External Customers by Products and Services | The Company’s revenues by deployment options are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Cloud $ 2,085,498 $ 1,515,424 $ 967,832 Data Center 819,251 560,319 336,273 Server 400,519 525,028 607,778 Marketplace and services 229,379 202,111 177,249 Total revenues $ 3,534,647 $ 2,802,882 $ 2,089,132 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The changes in the balances of contract balances are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Balance, beginning of period $ 1,182,680 $ 897,595 Additions 3,897,446 3,087,967 Revenue (3,534,647) (2,802,882) Balance, end of period $ 1,545,479 $ 1,182,680 |
Capitalized Contract Cost | The changes in the balances of deferred contract acquisition costs are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Balance, beginning of period $ 27,141 $ 9,011 Additions 40,060 24,302 Amortization expense (13,597) (6,172) Balance, end of period $ 53,604 $ 27,141 Deferred contract acquisition costs included in: Prepaid expenses and other current assets $ 18,027 $ 8,806 Other non-current assets 35,577 18,335 Total $ 53,604 $ 27,141 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Long-Lived Assets by Geographic Areas | The Company’s long-lived assets by geographic regions are as follows (in thousands): As of June 30, 2023 2022 United States $ 213,567 $ 295,577 Australia 37,891 67,241 All other countries 14,139 15,120 Total long-lived assets $ 265,597 $ 377,938 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Unvested Restricted Stock Units Roll Forward | A summary of RSU activity for fiscal year 2023 is as follows (in thousands except share and per share data): Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Balance as of June 30, 2022 6,023,997 $ 257.62 $ 1,128,897 Granted 8,315,466 221.87 Vested (3,604,960) 236.90 $ 617,018 Forfeited or cancelled (1,171,585) 239.09 Balance as of June 30, 2023 9,562,918 $ 235.16 $ 1,604,753 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | The following tables present the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Fiscal Year Ended June 30, 2023 2022 2021 Class A Class B Class A Class B Class A Class B Numerator: Net Loss $ (283,907) $ (202,854) $ (290,290) $ (229,220) $ (308,953) $ (270,026) Denominator: Weighted-average shares outstanding, basic and diluted 149,493 106,814 141,545 111,767 133,233 116,446 Net loss per share, basic and diluted $ (1.90) $ (1.90) $ (2.05) $ (2.05) $ (2.32) $ (2.32) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Fiscal Year Ended June 30, 2023 2022 2021 Class A Common Stock options — 1 63 Class A Common Stock RSU awards 7,426 3,736 3,480 Class A Common Stock restricted stock awards 17 82 178 Total potentially dilutive securities 7,443 3,819 3,721 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of loss before provision for income taxes by U.S. and foreign jurisdictions consist of the following (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Domestic $ (25,250) $ (480,982) $ (603,257) Foreign (285,886) 10,044 88,842 Total $ (311,136) $ (470,938) $ (514,415) |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Current: Federal $ 4,327 $ 280 $ 155 State 1,045 570 367 Foreign 162,072 51,040 73,017 Total 167,444 51,890 73,539 Deferred: Federal 1,467 (44) (777) State (1,066) (1,641) (1,053) Foreign 7,780 (1,633) (7,145) Total 8,181 (3,318) (8,975) Total provision for income taxes $ 175,625 $ 48,572 $ 64,564 |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate differs from the federal statutory income tax rate applied to the loss before income taxes due to the following (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Tax at federal statutory rate $ (65,339) $ (98,897) $ (108,027) State, net of the federal benefit 13,042 13,363 9,144 Effects of non-U.S. operations 15,163 (6,879) 5,436 Tax credits (99,398) (107,956) (73,280) Stock-based compensation 80,471 (41,692) (69,276) Non-deductible executive compensation 6,022 13,580 6,552 Non-deductible charges relating to the Notes — 89,188 131,769 Intellectual property transfer — — 5,460 Australian R&D deductions forgone in lieu of R&D credit 30,303 32,661 22,404 Foreign taxes 2,457 4,491 1,052 Basis difference in investments (43,564) (36,853) (13,789) Change in reserves 132,528 14,179 10,091 Change in valuation allowance 98,613 172,033 136,284 Other 5,327 1,354 744 Provision for income taxes $ 175,625 $ 48,572 $ 64,564 Effective Tax Rate (%) (56) % (10) % (13) % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and deferred tax liabilities are shown below (in thousands). Where necessary, a valuation allowance has been recognized to offset our deferred tax assets by the amount of any tax benefits that are not expected to be realized. As of June 30, 2023 2022 Deferred tax assets: Property and equipment $ 5,528 $ 8,531 Net operating loss carryforwards 857,944 1,013,750 Credit carryforwards 183,520 154,487 Operating lease liabilities 64,774 74,269 Basis differences in investments 1,690,440 1,601,047 Stock-based compensation 7,246 (33,095) Provisions, accruals and prepayments 36,255 38,763 Deferred revenue 208,541 146,044 Capitalized research and development 28,330 — IRC 163(j) carryforward 84 27,032 Intangible assets 641 (3,210) Total deferred tax assets $ 3,083,303 $ 3,027,618 Less valuation allowance (3,019,080) (2,941,191) Total deferred tax assets, net of valuation allowance $ 64,223 $ 86,427 Deferred tax liabilities: Unrealized foreign currency exchange losses $ 3,087 $ 1,338 Unrealized investment gains 11,684 9,373 Operating right of use assets 48,119 69,166 Other, net 2,057 (3,473) Total deferred tax liabilities $ 64,947 $ 76,404 Net deferred tax assets (liabilities) $ (724) $ 10,023 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 2021 Beginning of the period $ 53,483 $ 37,944 $ 26,841 Tax positions taken in prior period: Gross increases 112,781 1,031 147 Gross decreases (198) — (56) Tax positions taken in current period: Gross increases 15,171 14,542 11,044 Settlements (57,004) — — Lapse of statute of limitations (32) (34) (32) Currency translation effect (1,899) — — End of period $ 122,302 $ 53,483 $ 37,944 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Details) | Sep. 30, 2020 shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Common stock, conversion basis | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 USD ($) revenue_category | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Product Information [Line Items] | |||
Number of revenue categories | revenue_category | 3 | ||
Average period of benefit | 4 years | ||
Restricted cash included in other non-current assets | $ 1,365 | $ 1,421 | $ 11,796 |
Defined contribution plan expense | 78,200 | 58,700 | 41,500 |
Advertising expense | $ 89,500 | $ 90,300 | $ 71,000 |
Minimum | |||
Product Information [Line Items] | |||
Subscription-based arrangements, contractual term | 1 month | ||
Maximum | |||
Product Information [Line Items] | |||
Subscription-based arrangements, contractual term | 12 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment, Estimated Useful Lives (Details) | Jun. 30, 2023 |
Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer hardware and computer-related software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Fittings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives for Intangible Asset Classes (Details) | Jun. 30, 2023 |
Minimum | Patents, trademarks and other rights | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Lives (Years) | 5 years |
Minimum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Lives (Years) | 5 years |
Minimum | Acquired developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Lives (Years) | 4 years |
Maximum | Patents, trademarks and other rights | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Lives (Years) | 12 years |
Maximum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Lives (Years) | 10 years |
Maximum | Acquired developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Remaining Useful Lives (Years) | 6 years |
Conversion from IFRS to U.S. GA
Conversion from IFRS to U.S. GAAP (Details) $ in Millions | Jun. 30, 2018 USD ($) |
Embedded Derivative Financial Instruments | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Derivative liability | $ 177.9 |
Exchangeable Senior Notes Maturing May 1 2023 | Senior Notes | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Aggregate principal amount | $ 1,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial assets and liabilities measured at fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets measured at fair value | ||
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | Prepaid expenses and other current assets |
Liabilities measured at fair value | ||
Derivative liabilities | $ 9,905 | $ 23,288 |
Certificates of deposit and time deposits | ||
Assets measured at fair value | ||
Fair Value | 10,000 | 3,000 |
U.S. treasury securities | ||
Assets measured at fair value | ||
Fair Value | 70,294 | |
Fair Value, Recurring | ||
Assets measured at fair value | ||
Current derivative assets | 64,210 | 44,052 |
Marketable equity securities | 19,365 | 30,801 |
Total assets measured at fair value | 1,432,084 | 703,394 |
Liabilities measured at fair value | ||
Derivative liabilities | 10,114 | 24,100 |
Total liabilities measured at fair value | 10,114 | 24,100 |
Fair Value, Recurring | Certificates of deposit and time deposits | ||
Assets measured at fair value | ||
Fair Value | 10,000 | 3,000 |
Fair Value, Recurring | U.S. treasury securities | ||
Assets measured at fair value | ||
Fair Value | 70,294 | |
Level 1 | Fair Value, Recurring | ||
Assets measured at fair value | ||
Current derivative assets | 0 | 0 |
Marketable equity securities | 19,365 | 30,801 |
Total assets measured at fair value | 1,357,874 | 586,048 |
Liabilities measured at fair value | ||
Derivative liabilities | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Fair Value, Recurring | Certificates of deposit and time deposits | ||
Assets measured at fair value | ||
Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | U.S. treasury securities | ||
Assets measured at fair value | ||
Fair Value | 0 | |
Level 2 | Fair Value, Recurring | ||
Assets measured at fair value | ||
Current derivative assets | 64,210 | 44,052 |
Marketable equity securities | 0 | 0 |
Total assets measured at fair value | 74,210 | 117,346 |
Liabilities measured at fair value | ||
Derivative liabilities | 10,114 | 24,100 |
Total liabilities measured at fair value | 10,114 | 24,100 |
Level 2 | Fair Value, Recurring | Certificates of deposit and time deposits | ||
Assets measured at fair value | ||
Fair Value | 10,000 | 3,000 |
Level 2 | Fair Value, Recurring | U.S. treasury securities | ||
Assets measured at fair value | ||
Fair Value | 70,294 | |
Money market funds | Fair Value, Recurring | ||
Assets measured at fair value | ||
Cash and cash equivalents | 1,338,509 | 555,247 |
Money market funds | Level 1 | Fair Value, Recurring | ||
Assets measured at fair value | ||
Cash and cash equivalents | 1,338,509 | 555,247 |
Money market funds | Level 2 | Fair Value, Recurring | ||
Assets measured at fair value | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Fair Value Disclosures [Abstract] | ||
Equity securities without readily determinable fair value and other investments | $ 140.1 | $ 128.3 |
Investments - Schedule of Marke
Investments - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Marketable Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 10,000 | $ 73,947 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (653) |
Fair Value | 10,000 | 73,294 |
U.S. treasury securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 70,947 | |
Unrealized Gains | 0 | |
Unrealized Losses | (653) | |
Fair Value | 70,294 | |
Certificates of deposit and time deposits | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 10,000 | 3,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 10,000 | 3,000 |
Privately Held Debt Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 8,800 | 5,486 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3,350) | (4,218) |
Fair Value | $ 5,450 | $ 1,268 |
Investments - Schedule of Mar_2
Investments - Schedule of Marketable Debt Securities by Remaining Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less | $ 10,000 | $ 73,294 |
Investments - Carrying Values f
Investments - Carrying Values for Publicly Traded and Privately Held Equity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Initial total cost | $ 145,320 | $ 130,570 |
Cumulative net gain (loss) | 8,697 | 27,226 |
Carrying value | 154,017 | 157,796 |
Publicly traded equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Initial total cost | 10,270 | 10,270 |
Cumulative net gain (loss) | 9,095 | 20,531 |
Carrying value | 19,365 | 30,801 |
Privately held equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Initial total cost | 135,050 | 120,300 |
Cumulative net gain (loss) | (398) | 6,695 |
Carrying value | $ 134,652 | $ 126,995 |
Investments - Gains and Losses
Investments - Gains and Losses on Strategic Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Unrealized gains (losses) recognized on publicly traded equity securities | $ (11,437) | $ (79,608) | $ 34,290 |
Unrealized gains recognized on privately held equity securities | 307 | 6,945 | 0 |
Unrealized losses recognized on privately held equity securities including impairment | (7,642) | 0 | (250) |
Unrealized losses on privately held debt securities | (350) | 0 | 0 |
Unrealized gains (losses), net | (19,122) | (72,663) | 34,040 |
Realized gains recognized on publicly traded equity securities | 0 | 0 | 14,040 |
Realized losses on debt securities | (285) | 0 | 0 |
Gains (losses) on strategic investments, net | (19,407) | (72,663) | 48,080 |
Unrealized gains (losses) recognized during the reporting period on privately held equity securities still held at the reporting date | $ (6,986) | $ 6,945 | $ (250) |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jul. 20, 2022 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Upward price adjustment | $ 5.5 | $ 6.7 | |
Downward price adjustment | $ 5.9 | ||
Vertical First Trust | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Retained minority equity interest (as a percentage) | 13% | ||
Fair value of retained interest | $ 88.9 |
Investments - Carrying Amounts
Investments - Carrying Amounts of Equity Method Investments (Details) $ in Thousands | 11 Months Ended |
Jun. 30, 2023 USD ($) | |
Equity Method Investments, Effect Of Foreign Currency Translation [Roll Forward] | |
Balance as of July 20, 2022 | $ 88,853 |
Effect of change in exchange rates | (3,417) |
Balance as of June 30, 2023 | $ 85,436 |
Derivative Contracts - Notional
Derivative Contracts - Notional Amounts of Hedging Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Foreign exchange forward contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 884,992 | $ 649,538 |
Foreign exchange forward contracts | Under 12 months | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 849,811 | 612,523 |
Foreign exchange forward contracts | Over 12 months | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 35,181 | 37,015 |
Foreign exchange forward contracts | Cash Flow Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 532,059 | 401,534 |
Foreign exchange forward contracts | Non Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 352,933 | 248,004 |
Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 650,000 | $ 650,000 |
Average interest rate | 0.81% | 0.81% |
Interest rate swaps | Under 12 months | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 0 | $ 0 |
Interest rate swaps | Over 12 months | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 650,000 | $ 650,000 |
Average interest rate | 0.81% | 0.81% |
Interest rate swaps | Cash Flow Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 650,000 | $ 650,000 |
Average interest rate | 0.81% | 0.81% |
Interest rate swaps | Non Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 0 | $ 0 |
Derivative Assets - Fair Value
Derivative Assets - Fair Value of Company's Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | $ 64,210 | $ 44,052 |
Total derivative liabilities | 10,114 | 24,100 |
Prepaid expenses and other current assets | Foreign exchange forward contracts | Cash Flow Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | 3,177 | 0 |
Prepaid expenses and other current assets | Foreign exchange forward contracts | Non Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | 3,892 | 389 |
Prepaid expenses and other current assets | Interest rate swaps | Cash Flow Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | 28,926 | 13,296 |
Other non-current assets | Interest rate swaps | Cash Flow Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | 28,215 | 30,367 |
Other non-current liabilities | Foreign exchange forward contracts | Cash Flow Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative liabilities | 209 | 812 |
Accrued expenses and other current liabilities | Foreign exchange forward contracts | Cash Flow Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative liabilities | 9,657 | 18,208 |
Accrued expenses and other current liabilities | Foreign exchange forward contracts | Non Hedge | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative liabilities | $ 248 | $ 5,080 |
Derivative Contracts - Pre-Tax
Derivative Contracts - Pre-Tax Effects of Derivatives Designated as Cash Flow Hedging Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Pre-Tax Effects Of Derivatives Designated As Cash Flow Hedging Instruments [Roll Forward] | |||
Beginning balance | $ 327,372 | $ 313,262 | $ 566,643 |
Ending balance | 654,672 | 327,372 | 313,262 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
Derivative Instruments, Pre-Tax Effects Of Derivatives Designated As Cash Flow Hedging Instruments [Roll Forward] | |||
Beginning balance | 24,502 | (2,936) | 13,072 |
Gross unrealized gains recognized in other comprehensive income | 17,952 | 11,421 | 19,069 |
Ending balance | 48,170 | 24,502 | (2,936) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Recognized in cost of revenues | |||
Derivative Instruments, Pre-Tax Effects Of Derivatives Designated As Cash Flow Hedging Instruments [Roll Forward] | |||
Net (gains) losses reclassified from cash flow hedge in accumulated other comprehensive income into profit or loss: | 1,831 | 525 | (1,326) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Recognized in research and development | |||
Derivative Instruments, Pre-Tax Effects Of Derivatives Designated As Cash Flow Hedging Instruments [Roll Forward] | |||
Net (gains) losses reclassified from cash flow hedge in accumulated other comprehensive income into profit or loss: | 16,890 | 10,513 | (28,490) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Recognized in marketing and sales | |||
Derivative Instruments, Pre-Tax Effects Of Derivatives Designated As Cash Flow Hedging Instruments [Roll Forward] | |||
Net (gains) losses reclassified from cash flow hedge in accumulated other comprehensive income into profit or loss: | 1,337 | 220 | (400) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Recognized in general and administrative | |||
Derivative Instruments, Pre-Tax Effects Of Derivatives Designated As Cash Flow Hedging Instruments [Roll Forward] | |||
Net (gains) losses reclassified from cash flow hedge in accumulated other comprehensive income into profit or loss: | 5,563 | 1,606 | (4,861) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Recognized in interest | |||
Derivative Instruments, Pre-Tax Effects Of Derivatives Designated As Cash Flow Hedging Instruments [Roll Forward] | |||
Net (gains) losses reclassified from cash flow hedge in accumulated other comprehensive income into profit or loss: | $ (19,905) | $ 3,153 | $ 0 |
Assets Held For Sale (Details)
Assets Held For Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain from sale | $ 45,200 | ||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | ||
Cash and cash equivalents | $ 2,102,550 | $ 1,385,265 | $ 919,227 |
Property and equipment, net | 81,402 | 100,662 | |
Assets classified as held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | 0 | 2,701 | |
Property and equipment, net | $ 0 | $ 57,482 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 186,997 | $ 177,379 |
Less: accumulated depreciation and impairment | (105,595) | (76,717) |
Property and equipment, net | 81,402 | 100,662 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,298 | 9,140 |
Computer Hardware and Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 29,801 | 18,324 |
Furniture and Fittings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,773 | 25,157 |
Leasehold Improvements and Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 123,125 | $ 124,758 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Depreciation expense | $ 27.8 | $ 19.3 | $ 24.2 |
Impairment charge | $ 4.1 | ||
Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of leasehold | 8.4 | ||
Impairment charge | $ 52.7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 722,838 | $ 715,929 |
Additions | 3,300 | 9,361 |
Effect of change in exchange rates | 1,073 | (2,452) |
Goodwill, ending balance | $ 727,211 | $ 722,838 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 398,713 | $ 397,513 |
Less: accumulated amortization | (329,641) | (296,673) |
Intangible assets, net | 69,072 | 100,840 |
Acquired developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 235,818 | 234,618 |
Weighted-Average Remaining Useful Lives (Years) | 2 years | |
Patents, trademarks and other rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 33,393 | 33,393 |
Weighted-Average Remaining Useful Lives (Years) | 5 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 129,502 | $ 129,502 |
Weighted-Average Remaining Useful Lives (Years) | 5 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for intangible assets | $ 33.1 | $ 32.4 | $ 31.8 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 26,229 |
2025 | 15,208 |
2026 | 12,670 |
2027 | 7,839 |
Thereafter | 7,126 |
Total future amortization expense | $ 69,072 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Accrued expenses | $ 107,479 | $ 123,381 |
Employee benefits | 191,801 | 197,701 |
Tax liabilities | 88,748 | 26,367 |
Customer deposits | 11,784 | 9,718 |
Derivative liabilities | 9,905 | 23,288 |
Liabilities held for sale | 0 | 17,564 |
Other payables | 13,414 | 8,120 |
Total accrued expenses and other liabilities | $ 423,131 | $ 406,139 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Operating lease costs | $ 50,134 | $ 49,647 | $ 43,199 |
Variable lease costs | 13,094 | 12,077 | 13,604 |
Total lease costs | $ 63,228 | $ 61,724 | $ 56,803 |
Weighted average remaining lease term (in years) | 7 years | 8 years | 7 years |
Weighted average discount rate | 2.50% | 2.40% | 2.50% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Cash payments for operating leases | $ 41,493 | $ 49,142 | $ 44,874 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 3,580 | $ 105,961 | $ 27,042 |
Leases - Future Lease Payments
Leases - Future Lease Payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 51,479 |
2025 | 49,078 |
2026 | 42,306 |
2027 | 37,534 |
2028 | 38,601 |
Thereafter | 90,870 |
Total future operating lease payments | 309,868 |
Less: imputed interest | (27,103) |
Total lease liability balance | $ 282,765 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 USD ($) extension_option | Jun. 30, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Impairment charge | $ 4.1 | |
Gain (Loss) on termination of Lease | $ 3.9 | |
Term of future lease payment | 15 years | |
Number of extension options | extension_option | 2 | |
Length of additional extension periods | 10 years | |
Future lease payments | $ 919.3 | |
Facility Closing | ||
Lessee, Lease, Description [Line Items] | ||
Impairment charge | $ 52.7 |
Debt - Exchangeable Senior Note
Debt - Exchangeable Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | 64 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | May 01, 2023 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | |||||
Senior Notes | $ 0 | $ 0 | |||
Net loss on exchange derivative and capped call transactions | $ 0 | $ 424,482 | $ 616,446 | ||
Senior Notes | Exchangeable Senior Notes Maturing May 1 2023 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 1,000,000 | ||||
Senior Notes | Exchangeable Senior Notes Maturing May 1 2023 | Capped call transactions | |||||
Debt Instrument [Line Items] | |||||
Aggregate cost of capped calls | $ 87,700 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - Line of Credit - The Credit Facility $ in Millions | 1 Months Ended | 12 Months Ended |
Oct. 31, 2020 USD ($) | Jun. 30, 2023 USD ($) | |
Line of Credit Facility [Line Items] | ||
Obligated repayment amount, as a percentage | 1.25% | |
Debt issuance costs | $ 4.4 | |
Consolidated leverage ratio | 3.5 | |
Consolidated leverage ration in event of a material acquisition | 4.5 | |
Base Rate | ||
Line of Credit Facility [Line Items] | ||
Variable rate | 0.50% | |
SOFR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread adjustment | 0.0010 | |
SOFR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Variable rate | 0.875% | |
SOFR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Variable rate | 1.50% | |
LIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Variable rate | 0.875% | |
LIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Variable rate | 1.50% | |
Unsecured Debt | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 1,000 | |
Amount drawn | $ 1,000 | |
Commitment fee, as a percentage | 0.075% | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 500 | |
Amount of increase available | $ 250 | |
Commitment fee, as a percentage | 0.20% |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) - lawsuit | 2 Months Ended | 12 Months Ended |
Apr. 30, 2023 | Jun. 30, 2023 | |
Long-Term Purchase Commitment [Line Items] | ||
New claims filed (in lawsuits) | 2 | |
Minimum | ||
Long-Term Purchase Commitment [Line Items] | ||
Purchase commitment period | 1 year | |
Maximum | ||
Long-Term Purchase Commitment [Line Items] | ||
Purchase commitment period | 5 years |
Commitment and Contingencies _2
Commitment and Contingencies - Schedule of Purchase Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Contractual purchase obligations | $ 1,788,740 | $ 152,935 |
Obligations for leases that have not yet commenced | 919,333 | 956,118 |
Total purchase obligation | $ 2,708,073 | $ 1,109,053 |
Commitment and Contingencies _3
Commitment and Contingencies - Schedule of Future Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Other contractual commitments | ||
2024 | $ 364,326 | |
2025 | 406,108 | |
2026 | 458,234 | |
2027 | 419,572 | |
2028 | 140,500 | |
Thereafter | 0 | |
Total commitments | 1,788,740 | $ 152,935 |
Leases not commenced | ||
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 34,434 | |
2028 | 47,290 | |
Thereafter | 837,609 | |
Total commitments | 919,333 | 956,118 |
Total | ||
2024 | 364,326 | |
2025 | 406,108 | |
2026 | 458,234 | |
2027 | 454,006 | |
2028 | 187,790 | |
Thereafter | 837,609 | |
Total purchase obligation | $ 2,708,073 | $ 1,109,053 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 06, 2023 employee | |
Restructuring Cost and Reserve [Line Items] | ||||
Elimination of full-time employees | employee | 500 | |||
Elimination of full-time employees, as a percentage | 5% | |||
Restructuring charges | $ 96,894 | |||
Impairment charges for leases and leasehold improvements | 61,098 | $ 0 | $ 7,526 | |
Severance and Other Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 25,320 | |||
Stock-based Compensation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 10,275 | |||
Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 61,299 | |||
Impairment charges for leases and leasehold improvements | $ 61,100 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 96,894 |
Severance and Other Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 25,320 |
Stock-based Compensation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 10,275 |
Lease Consolidation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 61,299 |
Recognized in cost of revenues | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 9,192 |
Recognized in cost of revenues | Severance and Other Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,011 |
Recognized in cost of revenues | Stock-based Compensation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 288 |
Recognized in cost of revenues | Lease Consolidation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 7,893 |
Recognized in research and development | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 43,149 |
Recognized in research and development | Severance and Other Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 8,279 |
Recognized in research and development | Stock-based Compensation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 5,866 |
Recognized in research and development | Lease Consolidation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 29,004 |
Recognized in marketing and sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 23,868 |
Recognized in marketing and sales | Severance and Other Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 7,069 |
Recognized in marketing and sales | Stock-based Compensation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,815 |
Recognized in marketing and sales | Lease Consolidation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 14,984 |
Recognized in general and administrative | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 20,685 |
Recognized in general and administrative | Severance and Other Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 8,961 |
Recognized in general and administrative | Stock-based Compensation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 2,306 |
Recognized in general and administrative | Lease Consolidation | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 9,418 |
Restructuring - Summary of Chan
Restructuring - Summary of Changes in Liabilities (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Charges | $ 96,894 |
Payments | (22,682) |
Non-cash items | (72,006) |
Restructuring reserve, current | 2,206 |
Severance and Other Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Charges | 25,320 |
Payments | (22,481) |
Non-cash items | (633) |
Restructuring reserve, current | 2,206 |
Stock-based Compensation | |
Restructuring Cost and Reserve [Line Items] | |
Charges | 10,275 |
Payments | 0 |
Non-cash items | (10,275) |
Restructuring reserve, current | 0 |
Lease Consolidation | |
Restructuring Cost and Reserve [Line Items] | |
Charges | 61,299 |
Payments | (201) |
Non-cash items | (61,098) |
Restructuring reserve, current | $ 0 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Billions | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 82% |
Revenue remaining performance obligation, expected timing of satisfaction period | 12 months |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue by Geographic Region and Deployment Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 3,534,647 | $ 2,802,882 | $ 2,089,132 |
Cloud | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,085,498 | 1,515,424 | 967,832 |
Data Center | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 819,251 | 560,319 | 336,273 |
Server | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 400,519 | 525,028 | 607,778 |
Marketplace and services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 229,379 | 202,111 | 177,249 |
Total Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,765,166 | 1,408,868 | 1,028,481 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,537,328 | 1,230,801 | 901,389 |
Other Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 227,838 | 178,067 | 127,092 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,366,739 | 1,077,338 | 826,445 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 402,742 | $ 316,676 | $ 234,206 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 3,534,647 | $ 2,802,882 | $ 2,089,132 |
Deferred revenue recognized, as a percentage | 30% | 29% | |
Premier support | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 17,800 | $ 21,100 | $ 20,000 |
Revenue - Change in Contract Ba
Revenue - Change in Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Contract With Customer, Liability [Roll Forward] | ||
Balance, beginning of period | $ 1,182,680 | $ 897,595 |
Additions | 3,897,446 | 3,087,967 |
Revenue | (3,534,647) | (2,802,882) |
Balance, end of period | $ 1,545,479 | $ 1,182,680 |
Revenue - Changes in Balance of
Revenue - Changes in Balance of Deferred Commission (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Capitalized Contract Cost [Roll Forward] | ||
Balance, beginning of period | $ 27,141 | $ 9,011 |
Additions | 40,060 | 24,302 |
Amortization expense | (13,597) | (6,172) |
Balance, end of period | 53,604 | 27,141 |
Deferred contract acquisition costs included in: | ||
Prepaid expenses and other current assets | 18,027 | 8,806 |
Other non-current assets | 35,577 | 18,335 |
Capitalized Contract Cost, Net, Total | $ 53,604 | $ 27,141 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 265,597 | $ 377,938 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 213,567 | 295,577 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 37,891 | 67,241 |
All other countries | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 14,139 | $ 15,120 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2021 | Jun. 30, 2023 USD ($) vote $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares | Dec. 31, 2015 | Jan. 31, 2023 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Consent required to convert, percentage | 66.66% | |||||
Conversion threshold percentage (less than) | 10% | |||||
Preferred stock, authorized (in shares) | shares | 10,000,000 | |||||
Preferred stock, outstanding (in shares) | shares | 0 | 0 | ||||
Number of shares available for grant (in shares) | shares | 30,935,067 | |||||
Stock repurchase program, authorized amount | $ | $ 1,000,000 | |||||
Treasury stock, shares, acquired (in shares) | shares | 1,000,000 | |||||
Treasury stock, value, acquired, cost method | $ | $ 154,200 | |||||
Shares acquired, average cost per share (in dollars per share) | $ / shares | $ 157.49 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ | $ 845,800 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting period | 4 years | 4 years | ||||
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 221.87 | $ 332.43 | $ 192.62 | |||
Aggregate intrinsic value, vested | $ | $ 617,018 | $ 925,800 | $ 734,600 | |||
Tax benefit | $ | 156,500 | $ 242,800 | $ 194,300 | |||
Cost not yet recognized | $ | $ 1,700,000 | |||||
Cost not yet recognized, period for recognition | 1 year 9 months 18 days | |||||
Granted (in shares) | shares | 8,315,466 | |||||
Shares outstanding (in shares) | shares | 9,562,918 | 6,023,997 | ||||
Aggregate intrinsic value, outstanding | $ | $ 1,604,753 | $ 1,128,897 | ||||
Restricted Stock Units (RSUs) | Share-Based Payment Arrangement, Tranche One | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Award vesting rights, percentage | 25% | |||||
Restricted Stock Units (RSUs) | Share-Based Payment Arrangement, Tranche Two | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Award vesting rights, percentage | 75% | |||||
Award vesting rights, quarterly vesting percentage | 8.30% | |||||
Restricted Stock | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Granted (in shares) | shares | 0 | 8,821 | ||||
Shares outstanding (in shares) | shares | 6,131 | 72,484 | ||||
Aggregate intrinsic value, outstanding | $ | $ 1,000 | $ 13,600 | ||||
Class A | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||||
Voting rights, number | vote | 1 | |||||
Class B | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Conversion ratio | 1 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||||
Voting rights, number | vote | 10 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of RSU Activity (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Number of Shares | |||
Beginning balance (in shares) | 6,023,997 | ||
Granted (in shares) | 8,315,466 | ||
Vested (in shares) | (3,604,960) | ||
Forfeited or cancelled (in shares) | (1,171,585) | ||
Ending balance (in shares) | 9,562,918 | 6,023,997 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 257.62 | ||
Granted, weighted average grant date fair value (in dollars per share) | 221.87 | $ 332.43 | $ 192.62 |
Vested, weighted average grant date fair value (in dollars per share) | 236.90 | ||
Forfeited or cancelled, weighted average grant date fair value (in dollars per share) | 239.09 | ||
Ending balance (in dollars per share) | $ 235.16 | $ 257.62 | |
Aggregate intrinsic value, outstanding beginning balance | $ 1,128,897 | ||
Aggregate intrinsic value, vested | 617,018 | $ 925,800 | $ 734,600 |
Aggregate intrinsic value, outstanding ending balance | $ 1,604,753 | $ 1,128,897 |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and Diluted Net Loss (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | |||
Net loss | $ (486,761) | $ (519,510) | $ (578,979) |
Denominator: | |||
Weighted-average shares outstanding, basic (in shares) | 256,307,000 | 253,312,000 | 249,679,000 |
Weighted-average shares outstanding, diluted (in shares) | 256,307,000 | 253,312,000 | 249,679,000 |
Net loss per share, basic (in USD per share) | $ (1.90) | $ (2.05) | $ (2.32) |
Net loss per share, diluted (in USD per share) | $ (1.90) | $ (2.05) | $ (2.32) |
Class A | |||
Numerator: | |||
Net loss | $ (283,907) | $ (290,290) | $ (308,953) |
Denominator: | |||
Weighted-average shares outstanding, basic (in shares) | 149,493,000 | 141,545,000 | 133,233,000 |
Weighted-average shares outstanding, diluted (in shares) | 149,493,000 | 141,545,000 | 133,233,000 |
Net loss per share, basic (in USD per share) | $ (1.90) | $ (2.05) | $ (2.32) |
Net loss per share, diluted (in USD per share) | $ (1.90) | $ (2.05) | $ (2.32) |
Class B | |||
Numerator: | |||
Net loss | $ (202,854) | $ (229,220) | $ (270,026) |
Denominator: | |||
Weighted-average shares outstanding, basic (in shares) | 106,814,000 | 111,767,000 | 116,446,000 |
Weighted-average shares outstanding, diluted (in shares) | 106,814,000 | 111,767,000 | 116,446,000 |
Net loss per share, basic (in USD per share) | $ (1.90) | $ (2.05) | $ (2.32) |
Net loss per share, diluted (in USD per share) | $ (1.90) | $ (2.05) | $ (2.32) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities (in shares) | 7,443 | 3,819 | 3,721 |
Class A Common Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities (in shares) | 0 | 1 | 63 |
Class A Common Stock RSU awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities (in shares) | 7,426 | 3,736 | 3,480 |
Class A Common Stock restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities (in shares) | 17 | 82 | 178 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance | $ 3,019,080 | $ 2,941,191 | $ 2,800,000 | |
Net operating loss carryforwards | 857,944 | 1,013,750 | ||
Deferred tax assets, operating loss carryforwards, domestic | 788,300 | |||
Deferred tax assets, operating loss carryforwards, not subject to expiration | 788,000 | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | 300 | |||
Deferred tax assets, operating loss carryforwards, state and local | 94,500 | |||
Deferred tax assets, tax credit carryforwards, research | 191,400 | |||
Unrecognized tax benefits | 122,302 | 53,483 | 37,944 | $ 26,841 |
Undistributed earnings of domestic subsidiaries | 458,800 | |||
Unrecognized tax benefits that would impact effective tax rate | 113,200 | $ 2,500 | $ 1,900 | |
Income tax examination, penalties and interest accrued | 5,800 | |||
Operating Loss Carryforwards | 886,000 | |||
Settlement with Taxing Authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | 1,500 | |||
Increase in unrecognized tax benefits is reasonably possible | 9,300 | |||
Australian Taxation Office | Settlement with Taxing Authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | 53,700 | |||
Indian ATM Credit | ||||
Tax Credit Carryforward [Line Items] | ||||
Unrecognized tax benefits | 3,700 | |||
Polish R&D Credits | ||||
Tax Credit Carryforward [Line Items] | ||||
Unrecognized tax benefits | $ 5,300 |
Income Taxes - Components of In
Income Taxes - Components of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (25,250) | $ (480,982) | $ (603,257) |
Foreign | (285,886) | 10,044 | 88,842 |
Loss before provision for income taxes | $ (311,136) | $ (470,938) | $ (514,415) |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current: | |||
Federal | $ 4,327 | $ 280 | $ 155 |
State | 1,045 | 570 | 367 |
Foreign | 162,072 | 51,040 | 73,017 |
Total | 167,444 | 51,890 | 73,539 |
Deferred: | |||
Federal | 1,467 | (44) | (777) |
State | (1,066) | (1,641) | (1,053) |
Foreign | 7,780 | (1,633) | (7,145) |
Total | 8,181 | (3,318) | (8,975) |
Total provision for income taxes | $ 175,625 | $ 48,572 | $ 64,564 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ (65,339) | $ (98,897) | $ (108,027) |
State, net of the federal benefit | 13,042 | 13,363 | 9,144 |
Effects of non-U.S. operations | 15,163 | (6,879) | 5,436 |
Tax credits | (99,398) | (107,956) | (73,280) |
Stock-based compensation | 80,471 | (41,692) | (69,276) |
Non-deductible executive compensation | 6,022 | 13,580 | 6,552 |
Non-deductible charges relating to the Notes | 0 | 89,188 | 131,769 |
Intellectual property transfer | 0 | 0 | 5,460 |
Australian R&D deductions forgone in lieu of R&D credit | 30,303 | 32,661 | 22,404 |
Foreign taxes | 2,457 | 4,491 | 1,052 |
Basis difference in investments | (43,564) | (36,853) | (13,789) |
Change in reserves | 132,528 | 14,179 | 10,091 |
Change in valuation allowance | 98,613 | 172,033 | 136,284 |
Other | 5,327 | 1,354 | 744 |
Total provision for income taxes | $ 175,625 | $ 48,572 | $ 64,564 |
Effective Tax Rate (%) | (56.00%) | (10.00%) | (13.00%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred tax assets: | |||
Property and equipment | $ 5,528 | $ 8,531 | |
Net operating loss carryforwards | 857,944 | 1,013,750 | |
Credit carryforwards | 183,520 | 154,487 | |
Operating lease liabilities | 64,774 | 74,269 | |
Basis differences in investments | 1,690,440 | 1,601,047 | |
Stock-based compensation | 7,246 | (33,095) | |
Provisions, accruals and prepayments | 36,255 | 38,763 | |
Deferred revenue | 208,541 | 146,044 | |
Capitalized research and development | 28,330 | 0 | |
IRC 163(j) carryforward | 84 | 27,032 | |
Intangible assets | 641 | (3,210) | |
Total deferred tax assets | 3,083,303 | 3,027,618 | |
Less valuation allowance | (3,019,080) | (2,941,191) | $ (2,800,000) |
Total deferred tax assets, net of valuation allowance | 64,223 | 86,427 | |
Deferred tax liabilities: | |||
Unrealized foreign currency exchange losses | 3,087 | 1,338 | |
Unrealized investment gains | 11,684 | 9,373 | |
Operating right of use assets | 48,119 | 69,166 | |
Other, net | 2,057 | (3,473) | |
Total deferred tax liabilities | 64,947 | 76,404 | |
Net deferred tax assets (liabilities) | $ 10,023 | ||
Net deferred tax assets (liabilities) | $ 724 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 53,483 | $ 37,944 | $ 26,841 |
Gross increases | 112,781 | 1,031 | 147 |
Gross decreases | (198) | 0 | (56) |
Gross increases | 15,171 | 14,542 | 11,044 |
Settlements | (57,004) | 0 | 0 |
Lapse of statute of limitations | (32) | (34) | (32) |
Currency translation effect | (1,899) | 0 | 0 |
Ending balance | $ 122,302 | $ 53,483 | $ 37,944 |