Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2022 | Jan. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39149 | |
Entity Registrant Name | BILL.COM HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-2661725 | |
Entity Address, Address Line One | 6220 America Center Drive, Suite 100 | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95002 | |
City Area Code | 650 | |
Local Phone Number | 621-7700 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | BILL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 106,385,536 | |
Entity Central Index Key | 0001786352 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,616,758 | $ 1,596,542 |
Short-term investments | 1,066,538 | 1,108,493 |
Accounts receivable, net | 31,261 | 24,045 |
Acquired card receivables, net | 380,895 | 256,392 |
Prepaid expenses and other current assets | 178,688 | 151,258 |
Funds held for customers | 3,474,048 | 3,142,660 |
Total current assets | 6,748,188 | 6,279,390 |
Non-current assets: | ||
Operating lease right-of-use assets, net | 72,725 | 76,445 |
Property and equipment, net | 69,383 | 56,985 |
Intangible assets, net | 401,869 | 432,583 |
Goodwill | 2,396,509 | 2,362,893 |
Other assets | 49,600 | 47,730 |
Total assets | 9,738,274 | 9,256,026 |
Current liabilities: | ||
Accounts payable | 14,262 | 9,948 |
Accrued compensation and benefits | 31,021 | 29,004 |
Deferred revenue | 30,358 | 31,868 |
Other accruals and current liabilities | 181,551 | 120,080 |
Borrowings from revolving credit facility, net | 0 | 75,097 |
Customer fund deposits | 3,474,048 | 3,142,660 |
Total current liabilities | 3,731,240 | 3,408,657 |
Non-current liabilities: | ||
Deferred revenue | 2,013 | 2,159 |
Operating lease liabilities | 78,207 | 82,728 |
Borrowings from revolving credit facility, net | 112,570 | 0 |
Convertible senior notes, net | 1,701,397 | 1,697,985 |
Other long-term liabilities | 28,970 | 20,803 |
Total liabilities | 5,654,397 | 5,212,332 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock | 2 | 2 |
Additional paid-in capital | 4,811,780 | 4,598,737 |
Accumulated other comprehensive loss | (6,361) | (10,217) |
Accumulated deficit | (721,544) | (544,828) |
Total stockholders' equity | 4,083,877 | 4,043,694 |
Total liabilities and stockholders' equity | $ 9,738,274 | $ 9,256,026 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Statement [Abstract] | |||||
Revenue | $ 260,006 | $ 156,478 | $ 489,930 | $ 274,827 | |
Cost of revenue | |||||
Service costs | 36,965 | 24,338 | 71,786 | 45,051 | |
Depreciation and amortization of intangible assets | [1] | 10,502 | 10,048 | 20,789 | 19,170 |
Total cost of revenue | 47,467 | 34,386 | 92,575 | 64,221 | |
Gross profit | 212,539 | 122,092 | 397,355 | 210,606 | |
Operating expenses | |||||
Research and development | 78,910 | 51,377 | 154,030 | 93,261 | |
Sales and marketing | 164,683 | 69,896 | 283,308 | 123,525 | |
General and administrative | 69,381 | 64,965 | 136,119 | 122,480 | |
Depreciation and amortization of intangible assets | [1] | 12,028 | 11,929 | 24,055 | 21,620 |
Total operating expenses | 325,002 | 198,167 | 597,512 | 360,886 | |
Loss from operations | (112,463) | (76,075) | (200,157) | (150,280) | |
Other income (expenses), net | 17,022 | (5,000) | 22,970 | (8,475) | |
Loss before benefit from income taxes | (95,441) | (81,075) | (177,187) | (158,755) | |
Benefit from income taxes | (365) | (635) | (471) | (4,056) | |
Net loss | $ (95,076) | $ (80,440) | $ (176,716) | $ (154,699) | |
Net loss per share attributable to common stockholders: | |||||
Net loss per share, basic (dollars per share) | $ (0.90) | $ (0.78) | $ (1.68) | $ (1.56) | |
Net loss per share, diluted (dollars per share) | $ (0.90) | $ (0.78) | $ (1.68) | $ (1.56) | |
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders: | |||||
Weighted-average number of shares outstanding, basic (in shares) | 105,906 | 102,910 | 105,494 | 99,401 | |
Weighted-average number of shares outstanding, diluted (in shares) | 105,906 | 102,910 | 105,494 | 99,401 | |
[1] (1) Depreciation expense does not include amortization of capitalized internal-use software costs. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (95,076) | $ (80,440) | $ (176,716) | $ (154,699) |
Other comprehensive income (loss): | ||||
Net unrealized gain (loss) on investments in available-for-sale securities | 4,126 | (1,711) | 3,856 | (1,750) |
Comprehensive loss | $ (90,950) | $ (82,151) | $ (172,860) | $ (156,449) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Additional paid-in capital | Additional paid-in capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive loss | Accumulated deficit | Accumulated deficit Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Jun. 30, 2021 | 94,504 | |||||||
Beginning balance at Jun. 30, 2021 | $ 2,529,590 | $ (216,066) | $ 2 | $ 2,777,155 | $ (245,066) | $ (100) | $ (247,467) | $ 29,000 |
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs (in shares) | 5,074 | |||||||
Issuance of common stock upon public offering, net of underwriting discounts and other offering costs | 1,341,122 | 1,341,122 | ||||||
Issuance of common stock as consideration for an acquisition (in shares) | 1,788 | |||||||
Issuance of common stock as consideration for an acquisition, net of issuance costs | 488,263 | 488,263 | ||||||
Fair value of replacement awards | 26,710 | 26,710 | ||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares) | 1,033 | |||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 8,644 | 8,644 | ||||||
Issuance of common stock under the employee stock purchase plan (in shares) | 40 | |||||||
Issuance of common stock under the employee stock purchase plan | 5,726 | 5,726 | ||||||
Purchase of capped calls | (37,893) | (37,893) | ||||||
Stock-based compensation | 38,839 | 38,839 | ||||||
Other comprehensive income (loss) | (39) | (39) | ||||||
Net loss | (74,259) | (74,259) | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 102,439 | |||||||
Ending balance at Sep. 30, 2021 | 4,110,637 | $ 2 | 4,403,500 | (139) | (292,726) | |||
Beginning balance (in shares) at Jun. 30, 2021 | 94,504 | |||||||
Beginning balance at Jun. 30, 2021 | 2,529,590 | $ (216,066) | $ 2 | 2,777,155 | $ (245,066) | (100) | (247,467) | $ 29,000 |
Net loss | (154,699) | |||||||
Ending balance (in shares) at Dec. 31, 2021 | 103,461 | |||||||
Ending balance at Dec. 31, 2021 | 4,093,327 | $ 2 | 4,468,341 | (1,850) | (373,166) | |||
Beginning balance (in shares) at Sep. 30, 2021 | 102,439 | |||||||
Beginning balance at Sep. 30, 2021 | 4,110,637 | $ 2 | 4,403,500 | (139) | (292,726) | |||
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares) | 1,022 | |||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 14,140 | 14,140 | ||||||
Stock-based compensation | 50,701 | 50,701 | ||||||
Other comprehensive income (loss) | (1,711) | (1,711) | ||||||
Net loss | (80,440) | (80,440) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 103,461 | |||||||
Ending balance at Dec. 31, 2021 | 4,093,327 | $ 2 | 4,468,341 | (1,850) | (373,166) | |||
Beginning balance (in shares) at Jun. 30, 2022 | 104,731 | |||||||
Beginning balance at Jun. 30, 2022 | 4,043,694 | $ 2 | 4,598,737 | (10,217) | (544,828) | |||
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares) | 835 | |||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 3,901 | 3,901 | ||||||
Issuance of common stock under the employee stock purchase plan (in shares) | 67 | |||||||
Issuance of common stock under the employee stock purchase plan | 8,494 | 8,494 | ||||||
Stock-based compensation | 73,352 | 73,352 | ||||||
Other comprehensive income (loss) | (270) | (270) | ||||||
Net loss | (81,640) | (81,640) | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 105,633 | |||||||
Ending balance at Sep. 30, 2022 | 4,047,531 | $ 2 | 4,684,484 | (10,487) | (626,468) | |||
Beginning balance (in shares) at Jun. 30, 2022 | 104,731 | |||||||
Beginning balance at Jun. 30, 2022 | 4,043,694 | $ 2 | 4,598,737 | (10,217) | (544,828) | |||
Net loss | (176,716) | |||||||
Ending balance (in shares) at Dec. 31, 2022 | 106,336 | |||||||
Ending balance at Dec. 31, 2022 | 4,083,877 | $ 2 | 4,811,780 | (6,361) | (721,544) | |||
Beginning balance (in shares) at Sep. 30, 2022 | 105,633 | |||||||
Beginning balance at Sep. 30, 2022 | 4,047,531 | $ 2 | 4,684,484 | (10,487) | (626,468) | |||
Issuance of common stock as consideration for an acquisition (in shares) | 40 | |||||||
Issuance of common stock as consideration for an acquisition, net of issuance costs | 3,376 | 3,376 | ||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares) | 663 | |||||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 4,316 | 4,316 | ||||||
Stock-based compensation | 119,604 | 119,604 | ||||||
Other comprehensive income (loss) | 4,126 | 4,126 | ||||||
Net loss | (95,076) | (95,076) | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 106,336 | |||||||
Ending balance at Dec. 31, 2022 | $ 4,083,877 | $ 2 | $ 4,811,780 | $ (6,361) | $ (721,544) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (176,716) | $ (154,699) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 191,925 | 87,571 |
Amortization of intangible assets | 39,763 | 36,440 |
Depreciation of property and equipment | 5,081 | 4,350 |
Amortization of capitalized internal-use software costs | 1,901 | 673 |
Amortization of debt premium and issuance costs | 3,483 | 1,955 |
Amortization of premium (accretion of discount) on investments in marketable debt securities | (10,401) | 6,638 |
Provision for losses on acquired card receivables | 15,042 | 9,535 |
Non-cash operating lease expense | 4,718 | 4,083 |
Deferred income taxes | (826) | (3,822) |
Other | 516 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (7,052) | (3,420) |
Prepaid expenses and other current assets | (4,623) | (8,547) |
Other assets | (1,880) | (1,099) |
Accounts payable | 3,511 | (2,023) |
Other accruals and current liabilities | 15,408 | (11,430) |
Operating lease liabilities | (4,794) | (2,952) |
Other long-term liabilities | 35 | (1,698) |
Deferred revenue | (1,709) | 4,381 |
Net cash provided by (used in) operating activities | 73,382 | (34,064) |
Cash flows from investing activities: | ||
Cash paid for acquisition, net of acquired cash and cash equivalents | (28,902) | (144,541) |
Purchases of corporate and customer fund short-term investments | (1,641,193) | (1,452,419) |
Proceeds from maturities of corporate and customer fund short-term investments | 1,683,413 | 667,854 |
Proceeds from sale of corporate and customer fund short-term investments | 5,088 | 44,744 |
Increase in acquired card receivables, net and other | (101,353) | (77,459) |
Purchases of property and equipment | (3,161) | (2,467) |
Capitalization of internal-use software costs | (10,510) | (5,023) |
Proceeds from beneficial interest | 2,080 | 0 |
Net cash used in investing activities | (94,538) | (969,311) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock upon public offering, net of underwriting discounts and other offering costs | 0 | 1,341,152 |
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | 0 | 560,075 |
Purchase of capped calls | 0 | (37,893) |
Increase (decrease) in customer fund deposits liability and other | 332,661 | 1,171,446 |
Proceeds from line of credit borrowings | 37,500 | 0 |
Proceeds from exercise of stock options | 8,217 | 22,784 |
Proceeds from issuance of common stock under the employee stock purchase plan | 8,494 | 5,726 |
Net cash provided by financing activities | 386,872 | 3,063,290 |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 182 | (75) |
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | 365,898 | 2,059,840 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 3,542,715 | 1,809,692 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | 3,908,613 | 3,869,532 |
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above: | ||
Cash and cash equivalents | 1,616,758 | 1,672,166 |
Restricted cash included in other current assets | 103,809 | 16,364 |
Restricted cash included in other assets | 6,724 | 6,724 |
Restricted cash and restricted cash equivalents included in funds held for customers | 2,181,322 | 2,174,278 |
Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ 3,908,613 | $ 3,869,532 |
The Company and Its Significant
The Company and Its Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
The Company and Its Significant Accounting Policies | THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES Bill.com, Inc. was incorporated in the State of Delaware in April 2006. In November 2018, Bill.com, Inc. consummated a reorganization with Bill.com Holdings, Inc., which resulted in the latter becoming the parent entity of Bill.com, Inc. Bill.com, Inc. was subsequently converted into a limited liability company and renamed Bill.com, LLC. Bill.com Holdings, Inc., which was incorporated in the State of Delaware in August 2018, and its subsidiaries are collectively referred to as the “Company”. The Company is a provider of software-as-a-service, cloud-based payments, spend, and expense management products, which allow users to automate accounts payable and accounts receivable transactions, enable businesses to easily connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back office efficiency. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and were prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) and applicable rules and regulations of the SEC regarding interim financial reporting. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly the Company’s financial position, results of operations, comprehensive loss, changes in stockholders’ equity, and cash flows for the periods presented. The results of operations for the three and six months ended December 31, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2023 or for any other future annual or interim period. The unaudited condensed consolidated balance sheet as of June 30, 2022 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. All intercompany accounts and transactions have been eliminated. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022. Segment Reporting The Company operates as one operating segment because its chief operating decision maker, who is the Chief Executive Officer, reviews its financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. The Company's long-lived assets are mainly located in the United States (U.S.) and revenue is mainly generated in the U.S. Long-lived assets and revenue generated outside the U.S. are not material. Reclassification Certain accounts in the prior period condensed consolidated statements of operation were reclassified to conform with the current year presentation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make various estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and the accompanying notes. Management regularly assesses these estimates, including, but not limited to useful lives of long-lived assets; capitalization of internal-use software costs; incremental borrowing rates for right-of-use operating lease assets and operating lease liabilities; the estimate of credit losses on accounts receivable, acquired card receivables, and other financial assets; accrual for rewards; variable consideration used in revenue recognition for certain contracts; benefit periods used to amortize deferred commissions; reserve for losses on funds held for customers; inputs used to value certain stock-based compensation awards; and valuation of income taxes. The Company evaluates these estimates and assumptions and adjusts them accordingly. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash and cash equivalents consist of cash in banks, highly liquid investments with maturities of three months or less at the time of purchase, and securities purchased under overnight reverse repurchase agreements. Restricted cash consists of (i) amounts restricted under deposit account control agreements, (ii) minimum cash balances that are required to be maintained by certain banks, (iii) cash collateral required by the Company’s lessors to satisfy letter of credit requirements under its lease agreements, (iv) cash collateral required by a bank in connection with the Company’s money transmission activities, and (v) cash in bank and cash deposits held by payment processing companies included in funds held for customers. Restricted cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase that are included in funds held for customers. Except for the restricted cash included in funds held for customers, the current and non-current portion of the restricted cash is included in prepaid expenses and other current assets and in other assets, respectively, in the accompanying condensed consolidated balance sheets. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, restricted cash, restricted cash equivalents, short-term investments, accounts receivable, and acquired card receivables (collectively referred to as Financial Assets). The Company maintains its cash, cash equivalents, restricted cash, restricted cash equivalents, and short-term investments with major financial institutions that may at times exceed federally insured limits. Management believes that these financial institutions are financially sound with minimal credit risk. The Company performs credit evaluations to verify the credit quality of its financial assets and determine any at-risk receivables. An allowance for potential credit losses on Financial Assets is recognized, if material. As of December 31, 2022 and June 30, 2022, the allowance for potential credit losses related to accounts receivable and acquired card receivables totaled approximately $12.3 million and $5.8 million, respectively. These amounts do not include the immaterial allowance for potential credit losses on purchase of card receivables that have been authorized but not cleared at the end of the periods (see Note 12). There were no customers that exceeded 10% of the Company’s total revenue during the three and six months ended December 31, 2022 and 2021. Significant Accounting Policies There have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K for the fiscal year ended June 30, 2022, other than those new accounting policies that were implemented as a result of the adoption of new accounting standards as described below. Recently Adopted Accounting Pronouncements In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance for Troubled Debt Restructurings (TDRs) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires a company to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The Company early adopted this ASU on a prospective basis beginning July 1, 2022. See Note 6 for additional disclosures resulting from the adoption of this ASU. |
Revenue
Revenue | 6 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The Company generates revenue primarily from subscription and transaction fees. The Company serves small and midsize businesses (SMB), accounting firms, and financial institutions. The table below shows the Company’s revenue from subscription and transaction fees, which are disaggregated by sales channel, and revenue from interest on funds held for customers (in thousands). Three Months Ended Six Months Ended 2022 2021 2022 2021 Small-to-midsize businesses, accounting firms and other $ 220,406 $ 147,530 $ 425,227 $ 261,132 Financial institutions 10,689 7,989 20,479 11,945 Total subscription and transaction fees 231,095 155,519 445,706 273,077 Interest on funds held for customers 28,911 959 44,224 1,750 Total revenue $ 260,006 $ 156,478 $ 489,930 $ 274,827 Deferred revenue Fees from customers with which the Company has annual or multi-year contracts are generally billed in advance. These fees are initially recorded as deferred revenue and subsequently recognized as revenue as the performance obligation is satisfied. During the three and six months ended December 31, 2022, the Company recognized $11.4 million and $25.7 million of revenue, respectively, that was included in the deferred revenue balance as of June 30, 2022. Remaining performance obligations The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized as revenue. As of December 31, 2022, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $133.5 million. Of the total remaining performance obligations, the Company expects to recognize approximately 75% within two years and 25% over the next three Unbilled revenue |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT The Company measures and reports its cash equivalents, short-term investments, funds held for customers that are invested in money market funds and marketable debt securities, and contingent consideration at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. In determining fair value, the Company utilizes quoted market prices, or valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and also considers counterparty credit risk in its assessment of fair value. The following tables set forth the fair value of assets and liabilities that were measured at fair value on a recurring basis based on the three-tier fair value hierarchy as of the dates presented (in thousands): December 31, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,227,764 $ — $ — $ 1,227,764 Corporate bonds — 19,121 — 19,121 U.S. treasury securities 19,950 — — 19,950 1,247,714 19,121 — 1,266,835 Short-term investments: Corporate bonds — 641,267 — 641,267 U.S. treasury securities 313,704 — — 313,704 U.S. agency securities — 26,119 — 26,119 Asset-backed securities — 31,270 — 31,270 Certificates of deposit — 54,178 — 54,178 313,704 752,834 — 1,066,538 Funds held for customers: Restricted cash equivalents: Money market funds 29,061 — — 29,061 Corporate bonds — 237,682 — 237,682 29,061 237,682 — 266,743 Short-term investments: Corporate bonds — 734,878 — 734,878 Certificates of deposit — 426,189 — 426,189 Municipal bonds — 635 — 635 Asset-backed securities — 81,680 — 81,680 U.S. treasury securities 53,221 — — 53,221 53,221 1,243,382 — 1,296,603 Total assets measured at fair value $ 1,643,700 $ 2,253,019 $ — $ 3,896,719 Liabilities Contingent consideration (1) $ — $ — $ 10,794 $ 10,794 Total liabilities measured at fair value $ — $ — $ 10,794 $ 10,794 (1) The Company used the probability-weighted discounted cash flow method to estimate the contingent consideration. The significant inputs used in the fair value measurement of the contingent consideration are the probability of payout and discount rate. As these inputs are not based on observable market data, the liability represents a Level 3 measurement within the fair value hierarchy. June 30, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,435,111 $ — $ — $ 1,435,111 Corporate bonds — 11,430 — 11,430 1,435,111 11,430 — 1,446,541 Short-term investments: Corporate bonds — 597,204 — 597,204 U.S. treasury securities 421,728 — — 421,728 Asset-backed securities — 51,406 — 51,406 Certificates of deposit — 38,155 — 38,155 421,728 686,765 — 1,108,493 Funds held for customers: Restricted cash equivalents: Money market funds 34,703 — — 34,703 Corporate bonds — 133,557 — 133,557 34,703 133,557 — 168,260 Short-term investments: Corporate bonds — 807,685 — 807,685 Certificates of deposit — 397,533 — 397,533 Municipal bonds — 6,516 — 6,516 Asset-backed securities — 69,912 — 69,912 U.S. treasury securities 3,072 — — 3,072 3,072 1,281,646 — 1,284,718 Beneficial interest derivative on card receivables sold — — 398 398 Total assets measured at fair value $ 1,894,614 $ 2,113,398 $ 398 $ 4,008,410 There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented. The fair values of the Company’s Level 1 instruments were derived from quoted market prices and active markets for these specific instruments. The valuation techniques used to measure the fair values of Level 2 instruments were derived from non-binding market consensus prices that were corroborated with observable market data, quoted market prices for similar instruments, or pricing models. The Company has $575.0 million and $1.15 billion in aggregate principal amount of its 0% convertible senior notes due in 2027 (2027 Notes) and in 2025 (2025 Notes, together with the 2027 Notes, the Notes), respectively, outstanding as of December 31, 2022. The Company carries the Notes at par value, less the unamortized debt discount and issuance costs in the accompanying condensed consolidated balance sheets. As of December 31, 2022, the estimated fair value of the 2027 Notes and 2025 Notes, which is presented for disclosure purposes only, was approximately $451.1 million and $1.18 billion, respectively. The fair value was based on a market approach, which represents a Level 2 valuation estimate. The market approach was determined based on the actual bids and offers of the Notes in an over-the-counter market as of the last day of trading prior to the end of the period. |
Short-Term Investments
Short-Term Investments | 6 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | SHORT-TERM INVESTMENTS Short-term investments consisted of the following as of the dates presented (in thousands): December 31, 2022 Amortized Gross Gross Fair value Corporate bonds $ 644,658 $ 70 $ (3,461) $ 641,267 U.S. treasury securities 315,325 21 (1,641) 313,705 Asset-backed securities 31,368 10 (108) 31,270 Certificates of deposit 54,178 — — 54,178 U.S. agency securities 26,079 51 (11) 26,119 Total $ 1,071,607 $ 152 $ (5,221) $ 1,066,538 June 30, 2022 Amortized Gross Gross Fair value Corporate bonds $ 601,987 $ 3 $ (4,786) $ 597,204 U.S. treasury securities 424,644 1 (2,917) 421,728 Asset-backed securities 51,622 — (216) 51,406 Certificates of deposit 38,155 — — 38,155 Total $ 1,116,408 $ 4 $ (7,919) $ 1,108,493 The amortized cost and fair value amounts include accrued interest receivable of $3.4 million and $3.0 million as of December 31, 2022 and June 30, 2022, respectively. As of December 31, 2022, the fair value of the Company’s short-term investments that mature within one year and thereafter was $915.9 million and $150.7 million, respectively, or 86% and 14%, respectively, of the Company’s total short-term investments. As of June 30, 2022, the fair value of the Company’s short-term investments that mature within one year and thereafter was $961.8 million and $146.7 million, respectively, or 87% and 13%, respectively, of the Company’s total short-term investments. As of December 31, 2022, approximately 210 out of approximately 350 investment positions were in an unrealized loss position. The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): December 31, 2022 Fair value Unrealized Corporate bonds $ 354,715 $ (3,461) U.S. treasury securities 223,429 (1,641) Asset backed securities 27,508 (108) U.S. agency securities 8,769 (11) Total $ 614,421 $ (5,221) June 30, 2022 Fair value Unrealized Corporate bonds $ 392,699 $ (4,786) U.S. treasury securities 411,787 (2,917) Asset backed securities 51,406 (216) Total $ 855,892 $ (7,919) Most of the Company investments with unrealized losses had been in a continuous unrealized loss position for less than 12 months. Investments with unrealized losses that had been in a continuous unrealized loss position for more than 12 months have not been material. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which will be at maturity. Therefore, the Company does not consider those unrealized investment losses as other-than-temporary impairment of the investments. There have been no significant realized gains or losses on the short-term investments during the three and six months ended December 31, 2022 and 2021. The Company has not recorded an allowance for credit losses on investments that were in an unrealized loss position as of December 31, 2022 and June 30, 2022 because they were not material. |
Funds Held for Customers
Funds Held for Customers | 6 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Funds Held for Customers | FUNDS HELD FOR CUSTOMERS Funds held for customers consisted of the following as of the dates presented (in thousands): December 31, June 30, Restricted cash $ 1,914,579 $ 1,685,937 Restricted cash equivalents 266,743 168,260 Funds receivable 9,470 6,747 Corporate bonds 734,878 807,685 Certificates of deposit 426,189 397,533 Municipal bonds 635 6,516 Asset backed securities 81,680 69,912 U.S. treasury securities 53,221 3,072 Total funds held for customers 3,487,395 3,145,662 Less - income earned by the Company included in other current assets (13,347) (3,002) Total funds held for customers, net of income earned by the Company $ 3,474,048 $ 3,142,660 Income earned by the Company that is included in other current assets represents interest income, accretion of discount (offset by amortization of premium), and net unrealized gains on customer funds that were invested in money market funds and short-term marketable debt securities. Earnings from these investments are contractually earned by the Company and are expected to be transferred into the Company’s corporate deposit account upon sale or settlement of the associated investment. Below is a summary of the fair value of funds held for customers that were invested in short-term marketable debt securities as of the dates presented (in thousands): December 31, 2022 Amortized Gross Gross Fair value Corporate bonds $ 735,248 $ 35 $ (405) $ 734,878 Certificates of deposit 426,230 — (41) 426,189 Municipal bonds 638 — (3) 635 Asset backed securities 82,258 32 (610) 81,680 U.S. treasury securities 53,351 2 (132) 53,221 Total $ 1,297,725 $ 69 $ (1,191) $ 1,296,603 June 30, 2022 Amortized Gross Gross Fair value Corporate bonds $ 809,113 $ 1 $ (1,429) $ 807,685 Certificates of deposit 397,533 — — 397,533 Municipal bonds 6,542 — (26) 6,516 Asset backed securities 70,574 — (662) 69,912 U.S. treasury securities 3,082 — (10) 3,072 Total $ 1,286,844 $ 1 $ (2,127) $ 1,284,718 The amortized cost and fair value amounts include accrued interest receivable of $5.6 million and $3.0 million and as of December 31, 2022 and June 30, 2022, respectively. As of December 31, 2022, approximately 94%, or $1.2 billion, of the total funds held for customers invested in marketable debt securities mature within one year and approximately 6% or $81.7 million mature thereafter. As of June 30, 2022, approximately 95%, or $1.2 billion, of the total funds held for customers invested in marketable debt securities mature within one year and approximately 5% or $69.9 million mature thereafter. As of December 31, 2022, approximately 120 out of approximately 390 investment positions were in an unrealized loss position. The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): December 31, 2022 Fair value Unrealized Corporate bonds $ 171,981 $ (405) Certificates of deposit 7,848 (41) Municipal bonds 635 (3) Asset backed securities 62,569 (610) U.S. treasury securities 43,601 (132) Total $ 286,634 $ (1,191) June 30, 2022 Fair value Unrealized Corporate bonds $ 301,625 $ (1,429) Municipal bonds 6,516 (26) Asset backed securities 64,361 (662) U.S. treasury securities 3,072 (10) Total $ 375,574 $ (2,127) Investments with unrealized losses have been in a continuous unrealized loss position for less than 12 months. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which will be at maturity. Therefore, the Company does not consider those unrealized investment losses as other-than-temporary impairment of the investments. There have been no significant realized gains or losses on funds held for customers that were invested in short-term marketable debt securities during the three and six months ended December 31, 2022 and 2021. |
Acquired Card Receivables
Acquired Card Receivables | 6 Months Ended |
Dec. 31, 2022 | |
Acquired Card Receivables [Abstract] | |
Acquired Card Receivables | ACQUIRED CARD RECEIVABLES Acquired Card Receivables Acquired card receivables consisted of the following as of the dates presented (in thousands): December 31, June 30, Gross amount of acquired card receivables $ 392,843 $ 261,806 Less: allowance for credit losses (11,948) (5,414) Total $ 380,895 $ 256,392 Certain lines of credit and acquired card receivable balances are collateralized by cash deposits held by the Issuing Banks. Before an account is charged off, the Company obtains any available cash collateral from the Issuing Banks. As of December 31, 2022, approximately $129.8 million of the acquired card receivable balance served as collateral for the Company’s borrowings from the Revolving Credit Facility (see Note 7). The Company also incurred losses related to card transactions disputed by spending businesses. The amounts were not material during the three and six months ended December 31, 2022 and 2021. The acquired card receivable balances above do not include purchases of card receivables from the Issuing Banks that have not cleared at the end of the reporting period. Purchases of card receivables that have not cleared as of December 31, 2022 totaled $21.2 million. The Company recognized an immaterial amount of expected credit losses on the purchased card receivables that have not cleared yet as of December 31, 2022 and 2021 (see Note 12). Credit Quality Information The Company regularly reviews collection experience, delinquencies, and net charge-offs in determining allowance for credit losses related to acquired card receivables. Historical collections rates have shown that days past due is the primary indicator of the likelihood of loss. The Company uses the delinquency trends or past due status of the acquired card receivables as the credit quality indicator. Acquired card receivables are considered past due if full payment is not received on the bill date or within a grace period, which is generally limited to five days. Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands): December 31, June 30, Current and less than 30 days past due $ 384,944 $ 257,618 30 ~ 59 days past due 2,882 1,677 60 ~ 89 days past due 2,449 1,199 90 ~ 119 days past due 2,463 1,186 Over 119 days past due 105 126 Total $ 392,843 $ 261,806 As part of its collection efforts, the Company may modify card receivables terms with spending businesses that defaulted on payments; such modifications may include principal forgiveness, late fee forgiveness, and/or an extension of payment terms. The following table provides additional information with respect to card receivables that were modified during the three and six months ended December 31, 2022 (in thousands): Three Months Ended Six Months Ended Principal subject to forgiveness (1) $ 81 $ 81 Principal subject to late fee forgiveness (1) — 696 Other-than-insignificant payment delay (2) 199 2,439 Payment term extension (3) 544 577 Total card receivables $ 824 $ 3,793 (1) Forgiveness of principal and late fee payments waived were not material during three and six months ended December 31, 2022. (2) Other-than-insignificant payment delay represents accounts that are allowed to utilize available credit despite being delinquent outside of standard policy. (3) Weighted-average payment term extensions were approximately 3 months during the three and six months ended December 31, 2022. Outstanding and modified card receivables as of December 31, 2022 subject to modification were not material. Defaulted payments on card receivables during three and six months ended December 31, 2022 that were previously modified within the last 12 months were not material. Upon the Company's determination that a modified card receivable (or a portion of the card receivable) has subsequently been deemed uncollectible, the card receivable balance and allowance for credit losses are adjusted for the uncollectible portion . Allowance for Credit Losses Below is a summary of the changes in allowance for credit losses presented (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Balance, beginning $ 7,541 $ 3,717 $ 5,414 $ 1,740 Initial allowance for credit losses on purchased card receivables with credit deterioration — 296 10 310 Provision for expected credit losses 8,520 5,190 15,103 9,225 Charge-off amounts (4,379) (5,020) (9,412) (7,296) Recoveries collected 266 424 833 628 Balance, end of period $ 11,948 $ 4,607 $ 11,948 $ 4,607 Card receivables acquired from the Issuing Banks and held for investment were $3.3 billion and $6.0 billion during the three and six months ended December 31, 2022, respectively and $2.7 billion and $1.5 billion during the three and six months ended December 31, 2021, respectively. The allowance for credit losses related to acquired card receivables increased during the three and six months ended December 31, 2022 due to portfolio growth. Gross charge-off amounts for the six months ended December 31, 2022 consisted of $3.1 million that originated in the year ended June 30, 2022 and $6.3 million originated in the six months ended December 31, 2022. Card Receivables Held for Sale The Company previously sold a portion of acquired card receivables to a Purchasing Bank at a discount. Effective August 2022, the Company ceased selling acquired card receivables. Card receivables held for sale, which are carried at the lower of cost or estimated market value at the individual user account level and included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets, were zero and $8.7 million as of December 31, 2022 and June 30, 2022, respectively. Card Receivables Sold and Related Servicing and Beneficial Interest Derivative Retained The Company accounts for the transfer of card receivables as a sale if all of the following conditions are met: • the financial asset is isolated from the transferor and its consolidated affiliates as well as its creditors, even in bankruptcy or other receivership; • the transferee or beneficial interest holders have the right to pledge or exchange the transferred financial asset; and • the transferor, its consolidated affiliates and its agents do not maintain effective control over the transferred financial asset. The card receivables that the Company transferred to the Purchasing Bank during the six months ended December 31, 2022 and the six months ended December 31, 2021 met all of the requirements described above; therefore, the Company accounted for the transfer as a sale of financial assets. Accordingly, the Company measures gain or loss on the sales of financial assets as the net proceeds less the carrying amount of the card receivables sold. The net proceeds represent the fair value of any assets obtained or liabilities incurred as part of the transfer, including, but not limited to, servicing assets, servicing liabilities, or beneficial interest derivatives. Under the agreement with the Purchasing Bank, the Company had a continuing involvement as servicer. Effective August 2022, the Company ceased selling acquired card receivables. The outstanding transferred card receivable balance as of December 31, 2022 and June 30, 2022 was $0.4 million and $57.3 million, respectively. The fair value of the beneficial interest derivative, which is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets, was zero and immaterial as of December 31, 2022 and June 30, 2022, respectively. The servicing fee income was not material during the three and six months ended December 31, 2022 and 2021. Below is a summary of the fair value of consideration received from the transfer of card receivables accounted for as a sale during the periods presented (in thousands): Three Months Ended Six Months Ended 2022 (1) 2021 2022 (1) 2021 Initial fair value of consideration received: Cash $ — $ 366,706 $ 316,477 $ 625,207 Beneficial interest derivative — 1,093 1,682 2,287 Total $ — $ 367,799 $ 318,159 $ 627,494 (1) Effective August 2022, the Company ceased selling acquired card receivables. |
Debt and Borrowings
Debt and Borrowings | 6 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Borrowings | DEBT AND BORROWINGS Debt and borrowings consisted of the following (in thousands): December 31, June 30, Current liabilities: Borrowings from revolving credit facility (including unamortized debt premium of $0.1 million) (1) $ — $ 75,097 Non-current liabilities: Convertible senior notes: 2027 Notes, principal 575,000 575,000 2025 Notes, principal 1,150,000 1,150,000 Less: unamortized debt issuance costs (23,603) (27,015) Convertible senior notes, net 1,701,397 1,697,985 Borrowings from revolving credit facility (including unamortized debt premium of $0.1 million) (1) 112,570 — Net carrying value of debt and borrowings $ 1,813,967 $ 1,773,082 (1) Unamortized debt issuance costs on the Revolving Credit Facility were $0.3 million and zero as of December 31, 2022 and June 30, 2022, respectively, and are included in "Other assets" on the condensed consolidated balance sheet. 2027 Notes On September 24, 2021, the Company issued $575.0 million in aggregate principal amount of its 0% convertible senior notes due on April 1, 2027, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2027 Notes are subject to the terms and conditions of the Indenture governing the 2027 Notes between the Company and Wells Fargo Bank, N.A., as trustee (Trustee). The net proceeds from the issuance of the 2027 Notes were $560.1 million, after deducting debt discount and debt issuance costs totaling $14.9 million. The 2027 Notes are senior, unsecured obligations of the Company, and will not accrue interest unless the Company determines to pay special interest as a remedy for failure to timely file any reports required to be filed with the SEC, certain trading restrictions, or failure to deliver reports to the Trustee. The 2027 Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the 2027 Notes and rank equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated, including the 2025 Notes. In addition, the 2027 Notes are subordinated to any of the Company’s secured indebtedness and to all indebtedness and other liabilities of the Company’s subsidiaries. The 2027 Notes have an initial conversion rate of 2.4108 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $414.80 per share of the Company’s common stock and approximately 1.4 million shares issuable upon conversion. The conversion rate is subject to customary adjustments for certain events as described below. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. The Company’s current intent is to settle conversions of the 2027 Notes through a combination settlement, which involves a repayment of the principal portion in cash with any excess of the conversion value over the principal amount settled in shares of common stock. The Company may redeem for cash, all or any portion of the 2027 Notes, at the Company’s option, on or after October 5, 2024 if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day (Conversion Condition) preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the 2027 Notes. The holders of the 2027 Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding January 1, 2027 in multiples of $1,000 principal amount, under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on December 31, 2021, and only during such calendar quarter, if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five five • if the Company calls such notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. The conversion rate is subject to adjustment upon the occurrence of certain events or if the Company’s Board of Directors determines it is in the best interest of the Company. Additionally, holders of the 2027 Notes that convert their notes in connection with a make-whole fundamental change or during the redemption period, may be eligible to receive a make-whole premium through an increase of the conversion rate based on the estimated fair value of the 2027 Notes for the given date and stock price. The make-whole premium is designed to compensate the holder for lost “time-value” of the conversion option. The maximum number of additional shares that may be issued under the make-whole premium is 1.2656 per $1,000 principal (the lowest price of $272.00 in the make whole). The Indenture governing the 2027 Notes contains customary events of default with respect to the 2027 Notes and provides that upon certain events of default occurring and continuing, the holders of the 2027 Notes will have the right, at their option, to require the Company to repurchase for cash all or a portion of their outstanding notes, at a price equal to 100% of the principal amount of the 2027 Notes to be repurchased, plus any accrued and unpaid interest. 2025 Notes On November 30, 2020, the Company issued $1.15 billion in aggregate principal amount of its 0% convertible senior notes due on December 1, 2025, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2025 Notes are subject to the terms and conditions of the Indenture governing the 2025 Notes between the Company and the Trustee. The net proceeds from the issuance of the 2025 Notes were $1.13 billion, after deducting debt discount and debt issuance costs totaling $20.6 million. The 2025 Notes are senior, unsecured obligations of the Company, and will not accrue interest unless the Company determines to pay special interest as a remedy for failure to timely file any reports required to be filed with the SEC, certain trading restrictions, or failure to deliver reports to the Trustee. The 2025 Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the 2025 Notes and rank equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated, including the 2027 Notes. In addition, the 2025 Notes are subordinated to any of the Company’s secured indebtedness and to all indebtedness and other liabilities of the Company’s subsidiaries. The 2025 Notes have an initial conversion rate of 6.2159 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $160.88 per share of the Company’s common stock and approximately 7.1 million shares issuable upon conversion. The conversion rate is subject to customary adjustments for certain events as described below. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. The Company’s current intent is to settle conversions of the 2025 Notes through a combination settlement, which involves a repayment of the principal portion in cash with any excess of the conversion value over the principal amount settled in shares of common stock. The Company may redeem for cash, all or any portion of the 2025 Notes, at the Company’s option, on or after December 5, 2023 if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day (Conversion Condition) preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the 2025 Notes. The holders of the 2025 Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding September 1, 2025 in multiples of $1,000 principal amount, under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on March 31, 2021, and only during such calendar quarter, if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five five • if the Company calls such notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. The conversion rate is subject to adjustment upon the occurrence of certain events or if the Company’s Board of Directors determines it is in the best interest of the Company. Additionally, holders of the 2025 Notes that convert their notes in connection with a make-whole fundamental change or during the redemption period, may be eligible to receive a make-whole premium through an increase of the conversion rate based on the estimated fair value of the 2025 Notes for the given date and stock price. The make-whole premium is designed to compensate the holder for lost “time-value” of the conversion option. The maximum number of additional shares that may be issued under the make-whole premium is 2.9525 per $1,000 principal (the lowest price of $109.07 in the make whole). The Indenture governing the 2025 Notes contains customary events of default with respect to the 2025 Notes and provides that upon certain events of default occurring and continuing, the holders of the 2025 Notes will have the right, at their option, to require the Company to repurchase for cash all or a portion of their outstanding notes, at a price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus any accrued and unpaid interest. Additional Information About the Notes Effective July 1, 2021, the Company early-adopted ASU 2020-06 using the modified retrospective method which resulted in the accounting for the 2027 Notes and 2025 Notes as a single liability and no longer required to be accounted for separately between liability and equity components. As of December 31, 2022 and June 30, 2022, the Notes consisted of the following: December 31, 2022 June 30, 2022 2027 Notes 2025 Notes 2027 Notes 2025 Notes Liability component: Principal $ 575,000 $ 1,150,000 $ 575,000 $ 1,150,000 Less: unamortized debt discount and issuance costs (11,532) (12,071) (12,873) (14,142) Net carrying amount $ 563,468 $ 1,137,929 $ 562,127 $ 1,135,858 The debt discount and issuance costs of the Notes are being amortized using the effective interest method. During the three and six months ended December 31, 2022, the Company recognized $1.7 million and $3.4 million, respectively, of the debt discount and issuance amortization costs related to the Notes. During the three and six months ended December 31, 2021, the Company recognized $1.7 million and $2.8 million, respectively, of the debt discount and issuance amortization costs related to the Notes. The effective interest rate of the 2027 Notes was 0.48%. The effective interest rate of the 2025 Notes was 0.36% after the adoption of ASU 2020-06 beginning July 1, 2021. As of December 31, 2022, the weighted-average remaining life of the Notes was 3.4 years. The "if-converted" value of the Notes did not exceed the principal amount of $1.7 billion as of December 31, 2022 and June 30, 2022. Capped Call Transactions In conjunction with the issuance of each of the 2025 Notes and the 2027 Notes, the Company entered into Capped Call transactions (collectively, the Capped Calls) with certain of the initial purchasers of the Notes and/or their respective affiliates or other financial institutions at a total cost of $125.8 million. The Capped Calls are separate transactions and are not part of the terms of the Notes. The total amount paid for the Capped Calls was recorded as a reduction of additional paid-in capital. The Company used the proceeds from the Notes to pay for the cost of the Capped Call premium. The cost of the Capped Calls is not expected to be tax-deductible as the Company did not elect to integrate the Capped Calls into the Notes for tax purposes. The Capped Calls associated with the 2027 Notes and 2025 Notes each have an initial strike price of approximately $414.80 per share and $160.88 per share, respectively, subject to certain adjustments, which corresponds to the respective initial conversion price of the 2027 Notes and 2025 Notes, and have an initial cap price of $544.00 per share and $218.14 per share, respectively, subject to certain adjustments; provided that such cap price shall not be reduced to an amount less than their respective strike price. The Capped Calls associated with the Notes cover, subject to anti-dilution adjustments, a total of approximately 8.5 million shares of the Company’s common stock. The Capped Calls are expected to generally reduce the potential dilution of the Company’s common stock upon any conversion of the Notes and/or offset any cash payments that the Company is required to make in excess of the principal amount of such converted notes, as the case may be, with such reduction and/or offset subject to a cap. Revolving Credit Facility The Revolving Credit Agreement was executed in March 2021, and was amended in August 2022 (Revolving Credit Facility), to finance the acquisition of card receivables. The Revolving Credit Facility matures in June 2024 or earlier pursuant to the agreement and has a total commitment of $225.0 million. The required minimum utilization was $112.5 million, or 50% of the total commitment, as of December 31, 2022, which increases to $135.0 million, or 60% of the total commitment on February 28, 2023. As of December 31, 2022, the Company had borrowed $112.5 million against the Revolving Credit Facility. The Revolving Credit Facility requires the Company to pay unused fees up to 0.50% per annum. Borrowings are secured by acquired card receivables. Prior to March 3, 2023, borrowings of up $75 million bear interest of 2.75% per annum and borrowings greater than $75 million bear interest of 2.65% per annum, plus SOFR (subject to a floor rate of 0.25% and benchmark adjustment rate of 0.28%). The effective interest rate was 7.58% per annum as of December 31, 2022. Beginning March 3, 2023, borrowings bear interest of 2.65% per annum, plus SOFR (subject to a floor rate of 0.25% and benchmark adjustment rate of 0.28%). The Company is required to comply with certain restricted covenants, including liquidity requirements. As of December 31, 2022, the Company was in compliance with those covenants. The debt issuance costs and debt premium associated with the Revolving Credit Facility is amortized using the effective interest method over the remaining term of the credit agreement, with a weighted-average remaining amortization period of approximately 1.4 years. The interest income (expense), net related to the amortization of the debt issuance costs and debt premium during the three and six months ended December 31, 2022 and 2021 was not material. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Performance-based RSUs During the six months ended December 31, 2022, the Company granted approximately 150,000 restricted stock units (RSUs) to certain executive employees that vest based upon the achievement of designated financial metrics and continued employment over a period of three years. The weighted-average grant date fair value of these performance-based RSUs was $133.48 per unit. The Company recognizes expense for performance-based RSUs over the requisite service period based on management's estimate of the number of performance-based RSUs expected to vest. For any change in the estimate of the number of performance-based RSUs that are probable of vesting, the Company will cumulatively adjust compensation expense in the period that the change in estimate is made. As of December 31, 2022, the total unrecognized compensation expense related to the performance-based RSUs was $9.2 million, which is expected to be recognized over a weighted-average period of 1.5 years. Stock Based Compensation Cost Stock-based compensation cost by award type (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Stock options $ 13,117 $ 14,666 $ 24,911 $ 27,902 RSUs (1) 101,266 33,699 156,935 57,232 Performance-based awards 3,157 — 6,448 — Market-based RSUs 1,254 230 2,507 230 Employee stock purchase plan 2,961 2,106 5,782 4,163 Total stock-based compensation cost $ 121,755 $ 50,701 $ 196,583 $ 89,528 Stock-based compensation cost was included in the following line items in the accompanying condensed consolidated statements of operations and condensed consolidated balance sheets (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Cost of revenue $ 2,298 $ 1,285 $ 4,299 $ 2,412 Research and development 26,981 14,280 47,831 24,840 Sales and marketing (1) 69,522 11,039 98,779 19,153 General and administrative 20,641 23,080 41,152 41,166 Total amount charged to expense 119,442 49,684 192,061 87,571 Property and equipment (capitalized internal-use software) 2,313 1,017 4,522 1,957 Total stock-based compensation cost $ 121,755 $ 50,701 $ 196,583 $ 89,528 (1) In October 2022, the Company entered into separation and advisory agreements with its former Chief Revenue Officer (the CRO Agreements). Pursuant to the CRO Agreements, the former CRO will serve the Company as an advisor through September 2024. Upon execution of the CRO Agreements, the Company recognized $52.2 million of stock-based compensation expense related to the former CRO's RSUs. |
Other Income (Expenses), Net
Other Income (Expenses), Net | 6 Months Ended |
Dec. 31, 2022 | |
Other Income, Nonoperating [Abstract] | |
Other Income (Expenses), Net | OTHER INCOME (EXPENSES), NET Other income (expenses), net consisted of the following for the periods presented (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Interest expense $ (3,562) $ (2,494) $ (6,411) $ (4,322) Lower of cost or market adjustment on card receivables sold and held for sale — (2,970) (1,545) (4,646) Interest income 20,910 770 32,375 1,271 Other (326) (306) (1,449) (778) Total $ 17,022 $ (5,000) $ 22,970 $ (8,475) |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXESThe Company’s provision for income taxes during the interim periods is determined using an estimate of the Company’s annual effective tax rate, which is adjusted for certain discrete tax items during the interim period. The Company’s effective tax rate differs from the federal statutory rate primarily due to its federal, state and foreign valuation allowance positions. The income tax benefit during the three and six months ended December 31, 2022 consisted primarily of a reduction to the net deferred tax liability as a result of the Company's current year losses, partially offset by an estimated cash tax liability associated with the capitalization of R&D costs for federal and certain state tax purposes for the year ending June 30, 2023. The Company is subject to income tax audits in the U.S., Australia, and Canada. The Company records liabilities related to uncertain tax positions, which provide adequate reserves for income tax uncertainties in all open tax years. Due to the Company’s history of tax losses, all years remain open to tax audit. The Company’s management evaluates the realizability of the Company’s deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company’s ability to generate sufficient future taxable income during the foreseeable future. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASES The Company has non-cancelable operating leases for office and other facilities in various locations, and certain equipment, which expire through 2031. Also, the Company subleases part of its office facility in Draper, Utah under a non-cancellable operating lease that expires in December 2025. The Company's leases do not contain any material residual value guarantees. As of December 31, 2022, the weighted-average remaining term of these operating leases is 7.8 years and the weighted-average discount rate used to estimate the net present value of the operating lease liabilities was 5.10%. The total amounts paid included in the measurement of operating lease liabilities were $3.7 million and $7.2 million during the three and six months ended December 31, 2022, respectively, and $3.4 million and $6.5 million during the three and six months ended December 31, 2021, respectively. The total amounts of right-of-use assets obtained in exchange for new operating lease liabilities were not material during the three and six months ended December 31, 2022 and 2021. The components of lease expense during the three and six months ended December 31, 2022 and 2021 is shown on the table below (in thousands). Three Months Ended Six Months Ended 2022 2021 2022 2021 Operating lease expense $ 3,279 $ 3,335 $ 6,396 $ 6,515 Short-term lease expense 279 5 483 87 Variable lease expense, net of credit 412 600 925 1,198 Sublease income (144) (149) (289) (331) Total $ 3,826 $ 3,791 $ 7,515 $ 7,469 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The Company has non-cancelable operating leases for office and other facilities in various locations, and certain equipment, which expire through 2031. Future minimum lease payments as of December 31, 2022 are as follows (in thousands): Fiscal years ending June 30: Amount Remainder of 2023 $ 7,558 2024 13,920 2025 13,424 2026 13,292 2027 13,226 2028 13,590 Thereafter 35,919 Gross lease payments 110,929 Less - present value adjustments (19,913) Total operating lease liabilities, net $ 91,016 In addition to the minimum lease payments above, the Company has multi-year agreements with certain third parties and financial institution partners, expiring through 2029, which require the Company to pay fees over the term of the respective agreements. Future payments under these agreements as of December 31, 2022 are as follows (in thousands): Fiscal years ending June 30: Amount Remainder of 2023 $ 16,991 2024 15,372 2025 10,755 2026 5,329 2027 5,241 2028 5,491 Thereafter 29,250 Total $ 88,429 Purchase of Card Receivables that have not Cleared The Company is contractually obligated to purchase all card receivables from the Issuing Banks including authorized transactions that have not cleared. The transactions that have been authorized but not cleared totaled $21.2 million as of December 31, 2022 and have not been recorded on the accompanying consolidated balance sheets. The Company has credit exposures with these authorized but not cleared transactions; however, the expected credit losses recorded were not material as of December 31, 2022. Litigation From time to time, the Company is involved in lawsuits, claims, investigations, and proceedings that arise in the ordinary course of business. The Company records a provision for a liability when management believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of December 31, 2022 and June 30, 2022, the Company’s reserve for litigation is immaterial. The Company reviews these provisions periodically and adjusts these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable To Common Stockholders | 6 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable To Common Stockholders | NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Net loss attributable to common stockholders $ (95,076) $ (80,440) $ (176,716) $ (154,699) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders Basic and diluted 105,906 102,910 105,494 99,401 Net loss per share attributable to common stockholders: Basic and diluted $ (0.90) $ (0.78) $ (1.68) $ (1.56) Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been antidilutive were as follows as of the dates presented (in thousands): December 31, 2022 2021 Stock options 3,156 4,862 Restricted stock units 4,644 2,866 Total 7,800 7,728 In addition, approximately 8.5 million shares underlying the conversion option of the Notes are not considered in the calculation of diluted net loss per share as they would be anti-dilutive. Such number of |
The Company and Its Significa_2
The Company and Its Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and were prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) and applicable rules and regulations of the SEC regarding interim financial reporting. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly the Company’s financial position, results of operations, comprehensive loss, changes in stockholders’ equity, and cash flows for the periods presented. The results of operations for the three and six months ended December 31, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2023 or for any other future annual or interim period. The unaudited condensed consolidated balance sheet as of June 30, 2022 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. All intercompany accounts and transactions have been eliminated. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022. |
Segment Reporting | Segment Reporting The Company operates as one operating segment because its chief operating decision maker, who is the Chief Executive Officer, reviews its financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. The Company's long-lived assets are mainly located in the United States (U.S.) and revenue is mainly generated in the U.S. Long-lived assets and revenue generated outside the U.S. are not material. |
Reclassification | Reclassification Certain accounts in the prior period condensed consolidated statements of operation were reclassified to conform with the current year presentation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make various estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and the accompanying notes. Management regularly assesses these estimates, including, but not limited to useful lives of long-lived assets; capitalization of internal-use software costs; incremental borrowing rates for right-of-use operating lease assets and operating lease liabilities; the estimate of credit losses on accounts receivable, acquired card receivables, and other financial assets; accrual for rewards; variable consideration used in revenue recognition for certain contracts; benefit periods used to amortize deferred commissions; reserve for losses on funds held for customers; inputs used to value certain stock-based compensation awards; and valuation of income taxes. The Company evaluates these estimates and assumptions and adjusts them accordingly. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash and cash equivalents consist of cash in banks, highly liquid investments with maturities of three months or less at the time of purchase, and securities purchased under overnight reverse repurchase agreements. Restricted cash consists of (i) amounts restricted under deposit account control agreements, (ii) minimum cash balances that are required to be maintained by certain banks, (iii) cash collateral required by the Company’s lessors to satisfy letter of credit requirements under its lease agreements, (iv) cash collateral required by a bank in connection with the Company’s money transmission activities, and (v) cash in bank and cash deposits held by payment processing companies included in funds held for customers. Restricted cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase that are included in funds held for customers. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, restricted cash, restricted cash equivalents, short-term investments, accounts receivable, and acquired card receivables (collectively referred to as Financial Assets). The Company maintains its cash, cash equivalents, restricted cash, restricted cash equivalents, and short-term investments with major financial institutions that may at times exceed federally insured limits. Management believes that these financial institutions are financially sound with minimal credit risk. |
Foreign Currency | Foreign CurrencyThe Company has two foreign subsidiaries whose functional currency is the U.S. dollar, which is the Company's reporting currency. Gains and losses from the remeasurement of transactions denominated in foreign currencies other than the functional currency of the foreign subsidiary are included in other income (expense), net in the accompanying condensed consolidated statements of operations |
Significant Accounting Policies | Significant Accounting Policies There have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K for the fiscal year ended June 30, 2022, other than those new accounting policies that were implemented as a result of the adoption of new accounting standards as described below. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance for Troubled Debt Restructurings (TDRs) by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires a company to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The Company early adopted this ASU on a prospective basis beginning July 1, 2022. See Note 6 for additional disclosures resulting from the adoption of this ASU. |
Fair Value Measurement | The Company measures and reports its cash equivalents, short-term investments, funds held for customers that are invested in money market funds and marketable debt securities, and contingent consideration at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. In determining fair value, the Company utilizes quoted market prices, or valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and also considers counterparty credit risk in its assessment of fair value. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Subscription and Transaction Fees Disaggregated by Customer Category | The table below shows the Company’s revenue from subscription and transaction fees, which are disaggregated by sales channel, and revenue from interest on funds held for customers (in thousands). Three Months Ended Six Months Ended 2022 2021 2022 2021 Small-to-midsize businesses, accounting firms and other $ 220,406 $ 147,530 $ 425,227 $ 261,132 Financial institutions 10,689 7,989 20,479 11,945 Total subscription and transaction fees 231,095 155,519 445,706 273,077 Interest on funds held for customers 28,911 959 44,224 1,750 Total revenue $ 260,006 $ 156,478 $ 489,930 $ 274,827 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis | The following tables set forth the fair value of assets and liabilities that were measured at fair value on a recurring basis based on the three-tier fair value hierarchy as of the dates presented (in thousands): December 31, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,227,764 $ — $ — $ 1,227,764 Corporate bonds — 19,121 — 19,121 U.S. treasury securities 19,950 — — 19,950 1,247,714 19,121 — 1,266,835 Short-term investments: Corporate bonds — 641,267 — 641,267 U.S. treasury securities 313,704 — — 313,704 U.S. agency securities — 26,119 — 26,119 Asset-backed securities — 31,270 — 31,270 Certificates of deposit — 54,178 — 54,178 313,704 752,834 — 1,066,538 Funds held for customers: Restricted cash equivalents: Money market funds 29,061 — — 29,061 Corporate bonds — 237,682 — 237,682 29,061 237,682 — 266,743 Short-term investments: Corporate bonds — 734,878 — 734,878 Certificates of deposit — 426,189 — 426,189 Municipal bonds — 635 — 635 Asset-backed securities — 81,680 — 81,680 U.S. treasury securities 53,221 — — 53,221 53,221 1,243,382 — 1,296,603 Total assets measured at fair value $ 1,643,700 $ 2,253,019 $ — $ 3,896,719 Liabilities Contingent consideration (1) $ — $ — $ 10,794 $ 10,794 Total liabilities measured at fair value $ — $ — $ 10,794 $ 10,794 (1) The Company used the probability-weighted discounted cash flow method to estimate the contingent consideration. The significant inputs used in the fair value measurement of the contingent consideration are the probability of payout and discount rate. As these inputs are not based on observable market data, the liability represents a Level 3 measurement within the fair value hierarchy. June 30, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,435,111 $ — $ — $ 1,435,111 Corporate bonds — 11,430 — 11,430 1,435,111 11,430 — 1,446,541 Short-term investments: Corporate bonds — 597,204 — 597,204 U.S. treasury securities 421,728 — — 421,728 Asset-backed securities — 51,406 — 51,406 Certificates of deposit — 38,155 — 38,155 421,728 686,765 — 1,108,493 Funds held for customers: Restricted cash equivalents: Money market funds 34,703 — — 34,703 Corporate bonds — 133,557 — 133,557 34,703 133,557 — 168,260 Short-term investments: Corporate bonds — 807,685 — 807,685 Certificates of deposit — 397,533 — 397,533 Municipal bonds — 6,516 — 6,516 Asset-backed securities — 69,912 — 69,912 U.S. treasury securities 3,072 — — 3,072 3,072 1,281,646 — 1,284,718 Beneficial interest derivative on card receivables sold — — 398 398 Total assets measured at fair value $ 1,894,614 $ 2,113,398 $ 398 $ 4,008,410 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-Term Investments | Short-term investments consisted of the following as of the dates presented (in thousands): December 31, 2022 Amortized Gross Gross Fair value Corporate bonds $ 644,658 $ 70 $ (3,461) $ 641,267 U.S. treasury securities 315,325 21 (1,641) 313,705 Asset-backed securities 31,368 10 (108) 31,270 Certificates of deposit 54,178 — — 54,178 U.S. agency securities 26,079 51 (11) 26,119 Total $ 1,071,607 $ 152 $ (5,221) $ 1,066,538 June 30, 2022 Amortized Gross Gross Fair value Corporate bonds $ 601,987 $ 3 $ (4,786) $ 597,204 U.S. treasury securities 424,644 1 (2,917) 421,728 Asset-backed securities 51,622 — (216) 51,406 Certificates of deposit 38,155 — — 38,155 Total $ 1,116,408 $ 4 $ (7,919) $ 1,108,493 |
Schedule of Gross Unrealized Loss and Fair Values | The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): December 31, 2022 Fair value Unrealized Corporate bonds $ 354,715 $ (3,461) U.S. treasury securities 223,429 (1,641) Asset backed securities 27,508 (108) U.S. agency securities 8,769 (11) Total $ 614,421 $ (5,221) June 30, 2022 Fair value Unrealized Corporate bonds $ 392,699 $ (4,786) U.S. treasury securities 411,787 (2,917) Asset backed securities 51,406 (216) Total $ 855,892 $ (7,919) |
Funds Held for Customers (Table
Funds Held for Customers (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Funds Held For Customers | Funds held for customers consisted of the following as of the dates presented (in thousands): December 31, June 30, Restricted cash $ 1,914,579 $ 1,685,937 Restricted cash equivalents 266,743 168,260 Funds receivable 9,470 6,747 Corporate bonds 734,878 807,685 Certificates of deposit 426,189 397,533 Municipal bonds 635 6,516 Asset backed securities 81,680 69,912 U.S. treasury securities 53,221 3,072 Total funds held for customers 3,487,395 3,145,662 Less - income earned by the Company included in other current assets (13,347) (3,002) Total funds held for customers, net of income earned by the Company $ 3,474,048 $ 3,142,660 |
Summary of Fair Value of Funds Held For Customers Invested In Short Term Marketable Debt Securities | Below is a summary of the fair value of funds held for customers that were invested in short-term marketable debt securities as of the dates presented (in thousands): December 31, 2022 Amortized Gross Gross Fair value Corporate bonds $ 735,248 $ 35 $ (405) $ 734,878 Certificates of deposit 426,230 — (41) 426,189 Municipal bonds 638 — (3) 635 Asset backed securities 82,258 32 (610) 81,680 U.S. treasury securities 53,351 2 (132) 53,221 Total $ 1,297,725 $ 69 $ (1,191) $ 1,296,603 June 30, 2022 Amortized Gross Gross Fair value Corporate bonds $ 809,113 $ 1 $ (1,429) $ 807,685 Certificates of deposit 397,533 — — 397,533 Municipal bonds 6,542 — (26) 6,516 Asset backed securities 70,574 — (662) 69,912 U.S. treasury securities 3,082 — (10) 3,072 Total $ 1,286,844 $ 1 $ (2,127) $ 1,284,718 |
Summary of Gross Unrealized Losses And Fair Values | The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): December 31, 2022 Fair value Unrealized Corporate bonds $ 171,981 $ (405) Certificates of deposit 7,848 (41) Municipal bonds 635 (3) Asset backed securities 62,569 (610) U.S. treasury securities 43,601 (132) Total $ 286,634 $ (1,191) June 30, 2022 Fair value Unrealized Corporate bonds $ 301,625 $ (1,429) Municipal bonds 6,516 (26) Asset backed securities 64,361 (662) U.S. treasury securities 3,072 (10) Total $ 375,574 $ (2,127) |
Acquired Card Receivables (Tabl
Acquired Card Receivables (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Acquired Card Receivables [Abstract] | |
Schedule of Acquired Card Receivables | Acquired card receivables consisted of the following as of the dates presented (in thousands): December 31, June 30, Gross amount of acquired card receivables $ 392,843 $ 261,806 Less: allowance for credit losses (11,948) (5,414) Total $ 380,895 $ 256,392 |
Summary of Acquired Card Receivables by Class | Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands): December 31, June 30, Current and less than 30 days past due $ 384,944 $ 257,618 30 ~ 59 days past due 2,882 1,677 60 ~ 89 days past due 2,449 1,199 90 ~ 119 days past due 2,463 1,186 Over 119 days past due 105 126 Total $ 392,843 $ 261,806 |
Summary of Modified Card Receivables | The following table provides additional information with respect to card receivables that were modified during the three and six months ended December 31, 2022 (in thousands): Three Months Ended Six Months Ended Principal subject to forgiveness (1) $ 81 $ 81 Principal subject to late fee forgiveness (1) — 696 Other-than-insignificant payment delay (2) 199 2,439 Payment term extension (3) 544 577 Total card receivables $ 824 $ 3,793 (1) Forgiveness of principal and late fee payments waived were not material during three and six months ended December 31, 2022. (2) Other-than-insignificant payment delay represents accounts that are allowed to utilize available credit despite being delinquent outside of standard policy. (3) Weighted-average payment term extensions were approximately 3 months during the three and six months ended December 31, 2022. |
Summary of Change in Allowance for Credit Losses | Below is a summary of the changes in allowance for credit losses presented (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Balance, beginning $ 7,541 $ 3,717 $ 5,414 $ 1,740 Initial allowance for credit losses on purchased card receivables with credit deterioration — 296 10 310 Provision for expected credit losses 8,520 5,190 15,103 9,225 Charge-off amounts (4,379) (5,020) (9,412) (7,296) Recoveries collected 266 424 833 628 Balance, end of period $ 11,948 $ 4,607 $ 11,948 $ 4,607 |
Summary of Fair Value of Consideration Received from Transfer of Card Receivables | Below is a summary of the fair value of consideration received from the transfer of card receivables accounted for as a sale during the periods presented (in thousands): Three Months Ended Six Months Ended 2022 (1) 2021 2022 (1) 2021 Initial fair value of consideration received: Cash $ — $ 366,706 $ 316,477 $ 625,207 Beneficial interest derivative — 1,093 1,682 2,287 Total $ — $ 367,799 $ 318,159 $ 627,494 (1) Effective August 2022, the Company ceased selling acquired card receivables. |
Debt and Borrowings (Tables)
Debt and Borrowings (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt and borrowings consisted of the following (in thousands): December 31, June 30, Current liabilities: Borrowings from revolving credit facility (including unamortized debt premium of $0.1 million) (1) $ — $ 75,097 Non-current liabilities: Convertible senior notes: 2027 Notes, principal 575,000 575,000 2025 Notes, principal 1,150,000 1,150,000 Less: unamortized debt issuance costs (23,603) (27,015) Convertible senior notes, net 1,701,397 1,697,985 Borrowings from revolving credit facility (including unamortized debt premium of $0.1 million) (1) 112,570 — Net carrying value of debt and borrowings $ 1,813,967 $ 1,773,082 (1) Unamortized debt issuance costs on the Revolving Credit Facility were $0.3 million and zero as of December 31, 2022 and June 30, 2022, respectively, and are included in "Other assets" on the condensed consolidated balance sheet. |
Convertible Debt | As of December 31, 2022 and June 30, 2022, the Notes consisted of the following: December 31, 2022 June 30, 2022 2027 Notes 2025 Notes 2027 Notes 2025 Notes Liability component: Principal $ 575,000 $ 1,150,000 $ 575,000 $ 1,150,000 Less: unamortized debt discount and issuance costs (11,532) (12,071) (12,873) (14,142) Net carrying amount $ 563,468 $ 1,137,929 $ 562,127 $ 1,135,858 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Stock Based Compensation Cost from Stock Options, RSUs and ESPP | Stock-based compensation cost by award type (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Stock options $ 13,117 $ 14,666 $ 24,911 $ 27,902 RSUs (1) 101,266 33,699 156,935 57,232 Performance-based awards 3,157 — 6,448 — Market-based RSUs 1,254 230 2,507 230 Employee stock purchase plan 2,961 2,106 5,782 4,163 Total stock-based compensation cost $ 121,755 $ 50,701 $ 196,583 $ 89,528 Stock-based compensation cost was included in the following line items in the accompanying condensed consolidated statements of operations and condensed consolidated balance sheets (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Cost of revenue $ 2,298 $ 1,285 $ 4,299 $ 2,412 Research and development 26,981 14,280 47,831 24,840 Sales and marketing (1) 69,522 11,039 98,779 19,153 General and administrative 20,641 23,080 41,152 41,166 Total amount charged to expense 119,442 49,684 192,061 87,571 Property and equipment (capitalized internal-use software) 2,313 1,017 4,522 1,957 Total stock-based compensation cost $ 121,755 $ 50,701 $ 196,583 $ 89,528 (1) In October 2022, the Company entered into separation and advisory agreements with its former Chief Revenue Officer (the CRO Agreements). Pursuant to the CRO Agreements, the former CRO will serve the Company as an advisor through September 2024. Upon execution of the CRO Agreements, the Company recognized $52.2 million of stock-based compensation expense related to the former CRO's RSUs. |
Other Income (Expenses), Net (T
Other Income (Expenses), Net (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Other Income, Nonoperating [Abstract] | |
Schedule of Other Expenses, Net | Other income (expenses), net consisted of the following for the periods presented (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Interest expense $ (3,562) $ (2,494) $ (6,411) $ (4,322) Lower of cost or market adjustment on card receivables sold and held for sale — (2,970) (1,545) (4,646) Interest income 20,910 770 32,375 1,271 Other (326) (306) (1,449) (778) Total $ 17,022 $ (5,000) $ 22,970 $ (8,475) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components Of Lease Expense | The components of lease expense during the three and six months ended December 31, 2022 and 2021 is shown on the table below (in thousands). Three Months Ended Six Months Ended 2022 2021 2022 2021 Operating lease expense $ 3,279 $ 3,335 $ 6,396 $ 6,515 Short-term lease expense 279 5 483 87 Variable lease expense, net of credit 412 600 925 1,198 Sublease income (144) (149) (289) (331) Total $ 3,826 $ 3,791 $ 7,515 $ 7,469 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2022 are as follows (in thousands): Fiscal years ending June 30: Amount Remainder of 2023 $ 7,558 2024 13,920 2025 13,424 2026 13,292 2027 13,226 2028 13,590 Thereafter 35,919 Gross lease payments 110,929 Less - present value adjustments (19,913) Total operating lease liabilities, net $ 91,016 |
Schedule of Future Payments Under Other Agreements | Future payments under these agreements as of December 31, 2022 are as follows (in thousands): Fiscal years ending June 30: Amount Remainder of 2023 $ 16,991 2024 15,372 2025 10,755 2026 5,329 2027 5,241 2028 5,491 Thereafter 29,250 Total $ 88,429 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable To Common Stockholders (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Net loss attributable to common stockholders $ (95,076) $ (80,440) $ (176,716) $ (154,699) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders Basic and diluted 105,906 102,910 105,494 99,401 Net loss per share attributable to common stockholders: Basic and diluted $ (0.90) $ (0.78) $ (1.68) $ (1.56) |
Summary of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share Calculation | Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been antidilutive were as follows as of the dates presented (in thousands): December 31, 2022 2021 Stock options 3,156 4,862 Restricted stock units 4,644 2,866 Total 7,800 7,728 |
The Company and Its Significa_3
The Company and Its Significant Accounting Policies - Segment Reporting (Details) | 6 Months Ended |
Dec. 31, 2022 Segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
The Company and Its Significa_4
The Company and Its Significant Accounting Policies - Concentrations of Credit Risk (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 Customer | Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 Customer | Jun. 30, 2022 USD ($) | |
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||||
Allowance for potential credit losses related to accounts receivable and acquired card receivables | $ | $ 12.3 | $ 12.3 | $ 5.8 | ||
Revenue Benchmark | Customer Concentration Risk | |||||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||||
Number of customers exceed 10% of revenue | Customer | 0 | 0 | 0 | 0 | |
Revenue Benchmark | Customer Concentration Risk | No Customer | |||||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||||
Concentration percentage | 10% |
Revenue - Schedule of Revenue f
Revenue - Schedule of Revenue from Subscription and Transaction Fees Disaggregated by Customer Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 260,006 | $ 156,478 | $ 489,930 | $ 274,827 |
Subscription and Transaction Fees | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 231,095 | 155,519 | 445,706 | 273,077 |
Subscription and Transaction Fees | Small-to-midsize businesses, accounting firms and other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 220,406 | 147,530 | 425,227 | 261,132 |
Subscription and Transaction Fees | Financial institutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 10,689 | 7,989 | 20,479 | 11,945 |
Interest on Funds Held for Customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 28,911 | $ 959 | $ 44,224 | $ 1,750 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | |||
Deferred revenue, recognized | $ 11.4 | $ 25.7 | |
Aggregate amount of transaction price allocated to performance obligations | 133.5 | 133.5 | |
Unbilled revenue | $ 12.4 | $ 12.4 | $ 11.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |||
Disaggregation Of Revenue [Line Items] | |||
Aggregate amount of transaction price allocated to performance obligations, percentage | 75% | 75% | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 2 years | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |||
Disaggregation Of Revenue [Line Items] | |||
Aggregate amount of transaction price allocated to performance obligations, percentage | 25% | 25% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | Minimum | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 years | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | Maximum | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 5 years | 5 years |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Assets | ||
Cash equivalents: | $ 1,266,835 | $ 1,446,541 |
Short-term investments: | 1,066,538 | 1,108,493 |
Funds held for customers: | 1,296,603 | 1,284,718 |
Beneficial interest derivative on card receivables sold | 398 | |
Total assets measured at fair value | 3,896,719 | 4,008,410 |
Liabilities | ||
Contingent consideration | 10,794 | |
Total liabilities measured at fair value | 10,794 | |
Money market funds | ||
Assets | ||
Cash equivalents: | 1,227,764 | 1,435,111 |
Corporate bonds | ||
Assets | ||
Cash equivalents: | 19,121 | 11,430 |
Short-term investments: | 641,267 | 597,204 |
Funds held for customers: | 734,878 | 807,685 |
U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 19,950 | |
Short-term investments: | 313,704 | 421,728 |
Funds held for customers: | 53,221 | 3,072 |
U.S. agency securities | ||
Assets | ||
Short-term investments: | 26,119 | |
Asset-backed securities | ||
Assets | ||
Short-term investments: | 31,270 | 51,406 |
Funds held for customers: | 81,680 | 69,912 |
Certificates of deposit | ||
Assets | ||
Short-term investments: | 54,178 | 38,155 |
Funds held for customers: | 426,189 | 397,533 |
Municipal bonds | ||
Assets | ||
Funds held for customers: | 635 | 6,516 |
Restricted cash equivalents: | Corporate bonds | ||
Assets | ||
Funds held for customers: | 237,682 | 133,557 |
Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 266,743 | 168,260 |
Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 29,061 | 34,703 |
Level 1 | ||
Assets | ||
Cash equivalents: | 1,247,714 | 1,435,111 |
Short-term investments: | 313,704 | 421,728 |
Funds held for customers: | 53,221 | 3,072 |
Beneficial interest derivative on card receivables sold | 0 | |
Total assets measured at fair value | 1,643,700 | 1,894,614 |
Liabilities | ||
Contingent consideration | 0 | |
Total liabilities measured at fair value | 0 | |
Level 1 | Money market funds | ||
Assets | ||
Cash equivalents: | 1,227,764 | 1,435,111 |
Level 1 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 19,950 | |
Short-term investments: | 313,704 | 421,728 |
Funds held for customers: | 53,221 | 3,072 |
Level 1 | U.S. agency securities | ||
Assets | ||
Short-term investments: | 0 | |
Level 1 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 1 | Certificates of deposit | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 1 | Municipal bonds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 1 | Restricted cash equivalents: | Corporate bonds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 1 | Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 29,061 | 34,703 |
Level 1 | Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 29,061 | 34,703 |
Level 2 | ||
Assets | ||
Cash equivalents: | 19,121 | 11,430 |
Short-term investments: | 752,834 | 686,765 |
Funds held for customers: | 1,243,382 | 1,281,646 |
Beneficial interest derivative on card receivables sold | 0 | |
Total assets measured at fair value | 2,253,019 | 2,113,398 |
Liabilities | ||
Contingent consideration | 0 | |
Total liabilities measured at fair value | 0 | |
Level 2 | Money market funds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Level 2 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 19,121 | 11,430 |
Short-term investments: | 641,267 | 597,204 |
Funds held for customers: | 734,878 | 807,685 |
Level 2 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 2 | U.S. agency securities | ||
Assets | ||
Short-term investments: | 26,119 | |
Level 2 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 31,270 | 51,406 |
Funds held for customers: | 81,680 | 69,912 |
Level 2 | Certificates of deposit | ||
Assets | ||
Short-term investments: | 54,178 | 38,155 |
Funds held for customers: | 426,189 | 397,533 |
Level 2 | Municipal bonds | ||
Assets | ||
Funds held for customers: | 635 | 6,516 |
Level 2 | Restricted cash equivalents: | Corporate bonds | ||
Assets | ||
Funds held for customers: | 237,682 | 133,557 |
Level 2 | Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 237,682 | 133,557 |
Level 2 | Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Beneficial interest derivative on card receivables sold | 398 | |
Total assets measured at fair value | 0 | 398 |
Liabilities | ||
Contingent consideration | 10,794 | |
Total liabilities measured at fair value | 10,794 | |
Level 3 | Money market funds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Level 3 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 0 | |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | U.S. agency securities | ||
Assets | ||
Short-term investments: | 0 | |
Level 3 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | Certificates of deposit | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | Municipal bonds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Restricted cash equivalents: | Corporate bonds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 3 | Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | $ 0 | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 24, 2021 | Nov. 30, 2020 |
2025 Senior Notes | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Debt instrument, aggregate principal amount | $ 1,150 | $ 1,150 | |
Debt stated percentage | 0% | 0% | |
Debt instrument, fair value estimated | $ 1,180 | ||
2027 Senior Notes | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Debt instrument, aggregate principal amount | $ 575 | $ 575 | |
Debt stated percentage | 0% | 0% | |
Debt instrument, fair value estimated | $ 451.1 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 1,071,607 | $ 1,116,408 |
Gross unrealized gains | 152 | 4 |
Gross unrealized losses | (5,221) | (7,919) |
Fair value | 1,066,538 | 1,108,493 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 644,658 | 601,987 |
Gross unrealized gains | 70 | 3 |
Gross unrealized losses | (3,461) | (4,786) |
Fair value | 641,267 | 597,204 |
U.S. treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 315,325 | 424,644 |
Gross unrealized gains | 21 | 1 |
Gross unrealized losses | (1,641) | (2,917) |
Fair value | 313,705 | 421,728 |
Asset-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 31,368 | 51,622 |
Gross unrealized gains | 10 | 0 |
Gross unrealized losses | (108) | (216) |
Fair value | 31,270 | 51,406 |
Certificates of deposit | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 54,178 | 38,155 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 54,178 | $ 38,155 |
U.S. agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 26,079 | |
Gross unrealized gains | 51 | |
Gross unrealized losses | (11) | |
Fair value | $ 26,119 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Details) | 6 Months Ended | |
Dec. 31, 2022 USD ($) InvestmentPosition | Jun. 30, 2022 USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | ||
Accrued interest receivable | $ 3,400,000 | $ 3,000,000 |
Short-term investments mature within one year | 915,900,000 | 961,800,000 |
Short-term investments mature thereafter | $ 150,700,000 | $ 146,700,000 |
Percentage of short-term investments maturing within one year | 86% | 87% |
Percentage of short-term investments maturing thereafter | 14% | 13% |
Number of investments in unrealized loss positions | InvestmentPosition | 210 | |
Number of investment positions | InvestmentPosition | 350 | |
Allowance for credit losses on investments that were in an unrealized loss position | $ 0 | $ 0 |
Short-Term Investments - Sche_2
Short-Term Investments - Schedule of Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | $ 614,421 | $ 855,892 |
Unrealized losses | (5,221) | (7,919) |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 354,715 | 392,699 |
Unrealized losses | (3,461) | (4,786) |
U.S. treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 223,429 | 411,787 |
Unrealized losses | (1,641) | (2,917) |
Asset-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 27,508 | 51,406 |
Unrealized losses | (108) | $ (216) |
U.S. agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 8,769 | |
Unrealized losses | $ (11) |
Funds Held for Customers - Summ
Funds Held for Customers - Summary of Funds Held for Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Funds Held For Customers [Line Items] | ||
Total funds held for customers | $ 3,487,395 | $ 3,145,662 |
Less - income earned by the Company included in other current assets | (13,347) | (3,002) |
Total funds held for customers, net of income earned by the Company | 3,474,048 | 3,142,660 |
Municipal bonds | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 635 | 6,516 |
Certificates of deposit | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 426,189 | 397,533 |
Restricted cash | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 1,914,579 | 1,685,937 |
Restricted cash equivalents: | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 266,743 | 168,260 |
Funds receivable | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 9,470 | 6,747 |
Corporate bonds | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 734,878 | 807,685 |
Asset-backed securities | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 81,680 | 69,912 |
U.S. treasury securities | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | $ 53,221 | $ 3,072 |
Funds Held for Customers - Su_2
Funds Held for Customers - Summary of Fair Value of Funds Held For Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Funds Held For Customers [Line Items] | ||
Amortized cost | $ 1,297,725 | $ 1,286,844 |
Gross unrealized gains | 69 | 1 |
Gross unrealized losses | (1,191) | (2,127) |
Fair value | 1,296,603 | 1,284,718 |
Certificates of deposit | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 426,230 | 397,533 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (41) | 0 |
Fair value | 426,189 | 397,533 |
Municipal bonds | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 638 | 6,542 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3) | (26) |
Fair value | 635 | 6,516 |
Corporate bonds | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 735,248 | 809,113 |
Gross unrealized gains | 35 | 1 |
Gross unrealized losses | (405) | (1,429) |
Fair value | 734,878 | 807,685 |
Asset backed securities | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 82,258 | 70,574 |
Gross unrealized gains | 32 | 0 |
Gross unrealized losses | (610) | (662) |
Fair value | 81,680 | 69,912 |
U.S. treasury securities | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 53,351 | 3,082 |
Gross unrealized gains | 2 | 0 |
Gross unrealized losses | (132) | (10) |
Fair value | $ 53,221 | $ 3,072 |
Funds Held for Customers - Addi
Funds Held for Customers - Additional Information (Details) $ in Thousands | Dec. 31, 2022 USD ($) InvestmentPosition | Jun. 30, 2022 USD ($) |
Funds Held For Customers [Line Items] | ||
Amortized Cost | $ 1,297,725 | $ 1,286,844 |
Fair value | $ 1,296,603 | $ 1,284,718 |
Debt securities percentage mature within one year | 94% | 95% |
Debt securities mature within one year | $ 1,200,000 | $ 1,200,000 |
Debt securities percentage mature thereafter | 6% | 5% |
Debt securities mature thereafter | $ 81,700 | $ 69,900 |
Number of unrealized loss investment positions | InvestmentPosition | 120 | |
Number of investment positions | InvestmentPosition | 390 | |
Accrued Interest Receivable | ||
Funds Held For Customers [Line Items] | ||
Amortized Cost | $ 5,600 | 3,000 |
Fair value | $ 5,600 | $ 3,000 |
Funds Held for Customers - Su_3
Funds Held for Customers - Summary of Gross Unrealized Losses And Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Funds Held For Customers [Line Items] | ||
Fair value | $ 286,634 | $ 375,574 |
Unrealized losses | (1,191) | (2,127) |
Municipal bonds | ||
Funds Held For Customers [Line Items] | ||
Fair value | 635 | 6,516 |
Unrealized losses | (3) | (26) |
Corporate bonds | ||
Funds Held For Customers [Line Items] | ||
Fair value | 171,981 | 301,625 |
Unrealized losses | (405) | (1,429) |
Asset-backed securities | ||
Funds Held For Customers [Line Items] | ||
Fair value | 62,569 | 64,361 |
Unrealized losses | (610) | (662) |
U.S. treasury securities | ||
Funds Held For Customers [Line Items] | ||
Fair value | 43,601 | 3,072 |
Unrealized losses | (132) | $ (10) |
Certificates of deposit | ||
Funds Held For Customers [Line Items] | ||
Fair value | 7,848 | |
Unrealized losses | $ (41) |
Acquired Card Receivables - Sch
Acquired Card Receivables - Schedule of Acquired Card Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
Acquired Card Receivables [Abstract] | ||||||
Gross amount of acquired card receivables | $ 392,843 | $ 261,806 | ||||
Less: allowance for credit losses | (11,948) | $ (7,541) | (5,414) | $ (4,607) | $ (3,717) | $ (1,740) |
Total | $ 380,895 | $ 256,392 |
Acquired Card Receivables - Add
Acquired Card Receivables - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Financing Receivable, Past Due [Line Items] | |||||
Acquired card receivable as collateral | $ 129,800 | $ 129,800 | |||
Authorized transactions but not cleared | 21,200 | $ 21,200 | |||
Grace period to payment on acquired card receivables | 5 days | ||||
Card receivables acquired during the period | 3,300,000 | $ 2,700,000 | $ 6,000,000 | $ 1,500,000 | |
Gross charge-off amount, prior fiscal year | 3,100 | ||||
Gross charge-off amount, current fiscal year | 6,300 | ||||
Transferred card receivables | 400 | 400 | $ 57,300 | ||
Fair value, beneficial interest derivative | 0 | 0 | 0 | ||
Prepaid Expenses and Other Current Assets | |||||
Financing Receivable, Past Due [Line Items] | |||||
Card receivables held for sale, amount | $ 0 | $ 0 | $ 8,700 |
Acquired Card Receivables - Sum
Acquired Card Receivables - Summary of Acquired Card Receivables by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 392,843 | $ 261,806 |
Current and less than 30 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 384,944 | 257,618 |
30 ~ 59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,882 | 1,677 |
60 ~ 89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,449 | 1,199 |
90 ~ 119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,463 | 1,186 |
Over 119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 105 | $ 126 |
Acquired Card Receivables - S_2
Acquired Card Receivables - Summary of Modified Card Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | ||
Total card receivables | $ 824 | $ 3,793 |
Weighted-average payment term extension | 3 months | 3 months |
Principal subject to forgiveness | ||
Financing Receivable, Past Due [Line Items] | ||
Total card receivables | $ 81 | $ 81 |
Principal subject to late fee forgiveness | ||
Financing Receivable, Past Due [Line Items] | ||
Total card receivables | 0 | 696 |
Other-than-insignificant payment delay | ||
Financing Receivable, Past Due [Line Items] | ||
Total card receivables | 199 | 2,439 |
Payment term extension | ||
Financing Receivable, Past Due [Line Items] | ||
Total card receivables | $ 544 | $ 577 |
Acquired Card Receivables - S_3
Acquired Card Receivables - Summary of Change in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning | $ 7,541 | $ 3,717 | $ 5,414 | $ 1,740 |
Initial allowance for credit losses on purchased card receivables with credit deterioration | 0 | 296 | 10 | 310 |
Provision for expected credit losses | 8,520 | 5,190 | 15,103 | 9,225 |
Charge-off amounts | (4,379) | (5,020) | (9,412) | (7,296) |
Recoveries collected | 266 | 424 | 833 | 628 |
Balance, end of period | $ 11,948 | $ 4,607 | $ 11,948 | $ 4,607 |
Acquired Card Receivables - S_4
Acquired Card Receivables - Summary of Fair Value of Consideration Received from Transfer of Card Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Acquired Card Receivables [Abstract] | ||||
Cash | $ 0 | $ 366,706 | $ 316,477 | $ 625,207 |
Beneficial interest derivative | 0 | 1,093 | 1,682 | 2,287 |
Total | $ 0 | $ 367,799 | $ 318,159 | $ 627,494 |
Debt and Borrowings - Schedule
Debt and Borrowings - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Less: unamortized debt issuance costs | $ (23,603) | $ (27,015) |
Convertible senior notes, net | 1,701,397 | 1,697,985 |
Net carrying amount | 1,813,967 | 1,773,082 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Borrowings from revolving credit facility | 0 | 75,097 |
Non-current liabilites | 112,570 | 0 |
Unamortized premium, current | 100 | |
Unamortized premium, noncurrent | 100 | |
Unamortized debt issuance costs | 300 | 0 |
2027 Senior Notes | ||
Debt Instrument [Line Items] | ||
Non-current liabilites | 575,000 | 575,000 |
Net carrying amount | 563,468 | 562,127 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Non-current liabilites | 1,150,000 | 1,150,000 |
Net carrying amount | $ 1,137,929 | $ 1,135,858 |
Debt and Borrowings - Additiona
Debt and Borrowings - Additional Information (Details) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | |||||
Sep. 24, 2021 USD ($) $ / shares shares | Nov. 30, 2020 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Tradingday $ / shares shares | Dec. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 0 | $ 560,075,000 | |||||
Amortization of debt discount and issuance costs | $ 3,483,000 | 1,955,000 | |||||
Debt instrument, weighted average remaining term | 3 years 4 months 24 days | ||||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 112,500,000 | $ 112,500,000 | |||||
2027 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 575,000,000 | $ 575,000,000 | $ 575,000,000 | ||||
Debt stated percentage | 0% | 0% | 0% | ||||
Debt instrument, maturity date | Apr. 01, 2027 | ||||||
Debt issuance costs | $ 14,900,000 | ||||||
Debt initial conversion rate | 0.0024108 | ||||||
Debt instrument denomination of principal amount for conversion into common stock | $ 1,000 | ||||||
Initial conversion price per share | $ / shares | $ 414.80 | ||||||
Notes issued upon conversion (in shares) | shares | 1.4 | ||||||
Debt instrument threshold percentage of conversion price | 130% | ||||||
Number of trading days for conversion of notes | Tradingday | 20 | ||||||
Number of consecutive trading days for conversion of notes | Tradingday | 30 | ||||||
Debt convertible date | Jan. 01, 2027 | ||||||
Number of business day period for conversion of notes | 5 days | ||||||
Number of consecutive trading day period in consideration for conversion of notes | 5 days | ||||||
Threshold percentage of stock price trigger in measurement period | 98% | ||||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 560,100,000 | ||||||
Debt default threshold principal amount percentage | 100% | ||||||
Debt conversion rate in make whole | 1.2656 | ||||||
Debt conversion price per share in make whole | $ / shares | $ 272 | $ 272 | |||||
Debt instrument, effective interest rate percentage | 0.48% | 0.48% | |||||
Cost of capped call | $ 125,800,000 | ||||||
Capped call, initial strike price (dollars per share) | $ / shares | $ 414.80 | $ 414.80 | |||||
Capped call, initial cap price (dollars per share) | $ / shares | $ 544 | $ 544 | |||||
Cap calls cover subject to anti-dilution adjustments to common stock (in shares) | shares | 8.5 | ||||||
Principal | $ 575,000,000 | $ 575,000,000 | $ 575,000,000 | ||||
2027 Senior Notes | Redeem On or After October 5, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption period, start date | Oct. 05, 2024 | ||||||
Debt instrument threshold percentage of conversion price | 130% | ||||||
Number of trading days for conversion of notes | Tradingday | 20 | ||||||
Number of consecutive trading days for conversion of notes | Tradingday | 30 | ||||||
Redemption price percentage of principal amount redeemed | 100% | ||||||
Sinking fund | $ 0 | ||||||
2025 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | ||||
Debt stated percentage | 0% | 0% | 0% | ||||
Debt instrument, maturity date | Dec. 01, 2025 | ||||||
Debt issuance costs | $ 20,600,000 | ||||||
Debt initial conversion rate | 0.0062159 | ||||||
Debt instrument denomination of principal amount for conversion into common stock | $ 1,000 | $ 1,000 | |||||
Initial conversion price per share | $ / shares | $ 160.88 | ||||||
Notes issued upon conversion (in shares) | shares | 7.1 | ||||||
Debt instrument threshold percentage of conversion price | 130% | ||||||
Number of trading days for conversion of notes | Tradingday | 20 | ||||||
Number of consecutive trading days for conversion of notes | Tradingday | 30 | ||||||
Debt convertible date | Sep. 01, 2025 | ||||||
Number of business day period for conversion of notes | 5 days | ||||||
Number of consecutive trading day period in consideration for conversion of notes | 5 days | ||||||
Threshold percentage of stock price trigger in measurement period | 98% | ||||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 1,130,000,000 | ||||||
Debt default threshold principal amount percentage | 100% | ||||||
Debt conversion rate in make whole | 2.9525 | ||||||
Debt conversion price per share in make whole | $ / shares | $ 109.07 | $ 109.07 | |||||
Debt instrument, effective interest rate percentage | 0.36% | 0.36% | |||||
Cost of capped call | $ 125,800,000 | ||||||
Capped call, initial strike price (dollars per share) | $ / shares | $ 160.88 | $ 160.88 | |||||
Capped call, initial cap price (dollars per share) | $ / shares | $ 218.14 | $ 218.14 | |||||
Cap calls cover subject to anti-dilution adjustments to common stock (in shares) | shares | 8.5 | ||||||
Principal | $ 1,150,000,000 | $ 1,150,000,000 | 1,150,000,000 | ||||
2025 Senior Notes | Redeem On or After December 5, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption period, start date | Dec. 05, 2023 | ||||||
Debt instrument threshold percentage of conversion price | 130% | ||||||
Number of trading days for conversion of notes | Tradingday | 20 | ||||||
Number of consecutive trading days for conversion of notes | Tradingday | 30 | ||||||
Redemption price percentage of principal amount redeemed | 100% | ||||||
Sinking fund | $ 0 | ||||||
2027 and 2025 Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Amortization of debt discount and issuance costs | 1,700,000 | $ 1,700,000 | 3,400,000 | $ 2,800,000 | |||
Debt instrument, aggregate principal amount if converted | $ 1,700,000,000 | $ 1,700,000,000 | $ 1,700,000,000 |
Debt and Borrowings - Schedul_2
Debt and Borrowings - Schedule of Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 1,813,967 | $ 1,773,082 |
2027 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 575,000 | 575,000 |
Less: unamortized debt discount and issuance costs | (11,532) | (12,873) |
Net carrying amount | 563,468 | 562,127 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 1,150,000 | 1,150,000 |
Less: unamortized debt discount and issuance costs | (12,071) | (14,142) |
Net carrying amount | $ 1,137,929 | $ 1,135,858 |
Debt and Borrowings - Revolving
Debt and Borrowings - Revolving Credit Facility- Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2022 | Dec. 31, 2022 | Aug. 01, 2022 | |
Debt Instrument [Line Items] | |||
Line of credit facility, interest rate | 7.58% | ||
2021 Revolving Credit Agreement | |||
Debt Instrument [Line Items] | |||
Line of credit facility maturity month and year | 2024-06 | ||
Line of credit facility, maximum borrowing capacity | $ 225,000 | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||
Line of credit, outstanding amount threshold | $ 75,000 | ||
Benchmark adjustment rate | 0.28% | ||
Remaining weighted-average amortization period | 1 year 4 months 24 days | ||
2021 Revolving Credit Agreement | Utilization Period One | |||
Debt Instrument [Line Items] | |||
Line of credit facility, minimum utilization | $ 112,500 | ||
Line of credit, minimum utilization percentage | 50% | ||
2021 Revolving Credit Agreement | Utilization Period Two | |||
Debt Instrument [Line Items] | |||
Line of credit facility, minimum utilization | $ 135,000 | ||
Line of credit, minimum utilization percentage | 60% | ||
2021 Revolving Credit Agreement | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument floor rate | 0.25% | ||
2021 Revolving Credit Agreement | Variable Rate Component One | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 2.75% | ||
2021 Revolving Credit Agreement | Variable Rate Component Two | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 2.65% | ||
2021 Revolving Credit Agreement | Variable Rate Component Three | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 2.65% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - RSUs(1) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Number of other than options granted (in shares) | shares | 150 |
Requisite period for expenses recognized | 3 years |
Weighted grant-date fair value (dollars per share) | $ / shares | $ 133.48 |
Unamortized stock-based compensation expense | $ | $ 9.2 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 6 months |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock-Based Compensation Cost By Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 121,755 | $ 50,701 | $ 196,583 | $ 89,528 |
Stock options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 13,117 | 14,666 | 24,911 | 27,902 |
RSUs(1) | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 101,266 | 33,699 | 156,935 | 57,232 |
Performance-based awards | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 3,157 | 0 | 6,448 | 0 |
Market-based RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 1,254 | 230 | 2,507 | 230 |
Employee stock purchase plan | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 2,961 | $ 2,106 | $ 5,782 | $ 4,163 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Based Compensation Cost from Stock Options, RSUs and ESPP (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Total amount charged to expense | $ 119,442 | $ 49,684 | $ 192,061 | $ 87,571 | |
Property and equipment (capitalized internal-use software) | 2,313 | 1,017 | 4,522 | 1,957 | |
Total stock-based compensation cost | 121,755 | 50,701 | 196,583 | 89,528 | |
Stock-based compensation, CRO agreement | $ 52,200 | ||||
Cost of revenue | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Total amount charged to expense | 2,298 | 1,285 | 4,299 | 2,412 | |
Research and development | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Total amount charged to expense | 26,981 | 14,280 | 47,831 | 24,840 | |
Sales and marketing | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Total amount charged to expense | 69,522 | 11,039 | 98,779 | 19,153 | |
General and administrative | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Total amount charged to expense | $ 20,641 | $ 23,080 | $ 41,152 | $ 41,166 |
Other Income (Expenses), Net -
Other Income (Expenses), Net - Schedule of Other Income (Expenses), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income, Nonoperating [Abstract] | ||||
Interest expense | $ (3,562) | $ (2,494) | $ (6,411) | $ (4,322) |
Lower of cost or market adjustment on card receivables sold and held for sale | 0 | (2,970) | (1,545) | (4,646) |
Interest income | 20,910 | 770 | 32,375 | 1,271 |
Other | (326) | (306) | (1,449) | (778) |
Total | $ 17,022 | $ (5,000) | $ 22,970 | $ (8,475) |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining term | 7 years 9 months 18 days | 7 years 9 months 18 days | ||
Weighted average discount rate | 5.10% | 5.10% | ||
Lease expense paid during period | $ 3.7 | $ 3.4 | $ 7.2 | $ 6.5 |
Various Locations | ||||
Lessee, Lease, Description [Line Items] | ||||
Non-cancellable operating lease expiration year | 2031 | |||
Draper, Utah | ||||
Lessee, Lease, Description [Line Items] | ||||
Non-cancellable operating lease expiration | 2025-12 |
Leases - Components Of Lease Ex
Leases - Components Of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease, Cost [Abstract] | ||||
Operating lease expense | $ 3,279 | $ 3,335 | $ 6,396 | $ 6,515 |
Short-term lease expense | 279 | 5 | 483 | 87 |
Variable lease expense, net of credit | 412 | 600 | 925 | 1,198 |
Sublease income | (144) | (149) | (289) | (331) |
Total | $ 3,826 | $ 3,791 | $ 7,515 | $ 7,469 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 6 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Other facility and equipment expiration year | 2031 |
Multiyear third party and financial institutions Agreements expiration year | 2029 |
Authorized transactions but not cleared | $ 21.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2023 | $ 7,558 |
2024 | 13,920 |
2025 | 13,424 |
2026 | 13,292 |
2027 | 13,226 |
2028 | 13,590 |
Thereafter | 35,919 |
Gross lease payments | 110,929 |
Less - present value adjustments | (19,913) |
Total operating lease liabilities, net | $ 91,016 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Payments Under Other Agreements (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2023 | $ 16,991 |
2024 | 15,372 |
2025 | 10,755 |
2026 | 5,329 |
2027 | 5,241 |
2028 | 5,491 |
Thereafter | 29,250 |
Total | $ 88,429 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable To Common Stockholders - Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | ||||
Net loss attributable to common stockholders | $ (95,076) | $ (80,440) | $ (176,716) | $ (154,699) |
Denominator: | ||||
Weighted-average number of shares outstanding, diluted (in shares) | 105,906 | 102,910 | 105,494 | 99,401 |
Weighted-average number of shares outstanding, basic (in shares) | 105,906 | 102,910 | 105,494 | 99,401 |
Net loss per share attributable to common stockholders: | ||||
Net loss per share, basic (dollars per share) | $ (0.90) | $ (0.78) | $ (1.68) | $ (1.56) |
Net loss per share, diluted (dollars per share) | $ (0.90) | $ (0.78) | $ (1.68) | $ (1.56) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable To Common Stockholders - Summary of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share Calculation (Details) - shares shares in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 7,800 | 7,728 |
Stock options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 3,156 | 4,862 |
Restricted stock units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 4,644 | 2,866 |
Net Loss Per Share Attributab_5
Net Loss Per Share Attributable To Common Stockholders - Additional Information (Details) - shares shares in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 7,800 | 7,728 |
Notes | Maximum | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares subject to adjustment | 12,700 | |
Shares Underlying Conversion Option in Notes | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 8,500 |
Uncategorized Items - bill-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |