Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39149 | |
Entity Registrant Name | BILL HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-2661725 | |
Entity Address, Address Line One | 6220 America Center Drive, Suite 100 | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95002 | |
City Area Code | 650 | |
Local Phone Number | 621-7700 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | BILL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 106,755,694 | |
Entity Central Index Key | 0001786352 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,527,182 | $ 1,617,151 |
Short-term investments | 1,119,456 | 1,043,110 |
Accounts receivable, net | 24,100 | 28,233 |
Acquired card receivables, net | 552,827 | 458,650 |
Prepaid expenses and other current assets | 195,027 | 170,111 |
Funds held for customers | 3,263,528 | 3,355,909 |
Total current assets | 6,682,120 | 6,673,164 |
Non-current assets: | ||
Operating lease right-of-use assets, net | 66,600 | 68,988 |
Property and equipment, net | 85,294 | 81,564 |
Intangible assets, net | 341,206 | 361,427 |
Goodwill | 2,396,509 | 2,396,509 |
Other assets | 48,654 | 54,366 |
Total assets | 9,620,383 | 9,636,018 |
Current liabilities: | ||
Accounts payable | 6,491 | 8,519 |
Accrued compensation and benefits | 23,030 | 32,901 |
Deferred revenue | 19,489 | 26,328 |
Other accruals and current liabilities | 252,932 | 194,733 |
Borrowings from credit facilities, net | 135,033 | 135,046 |
Customer fund deposits | 3,263,528 | 3,355,909 |
Total current liabilities | 3,700,503 | 3,753,436 |
Non-current liabilities: | ||
Deferred revenue | 4,800 | 410 |
Operating lease liabilities | 69,969 | 72,477 |
Convertible senior notes, net | 1,706,494 | 1,704,782 |
Other long-term liabilities | 20,504 | 18,944 |
Total liabilities | 5,502,270 | 5,550,049 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock | 2 | 2 |
Additional paid-in capital | 5,022,021 | 4,946,623 |
Accumulated other comprehensive loss | (3,813) | (4,488) |
Accumulated deficit | (900,097) | (856,168) |
Total stockholders' equity | 4,118,113 | 4,085,969 |
Total liabilities and stockholders' equity | $ 9,620,383 | $ 9,636,018 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenue | $ 304,985 | $ 229,924 | |
Cost of revenue | |||
Service costs | 44,904 | 34,820 | |
Depreciation and amortization of intangible assets | [1] | 11,122 | 10,287 |
Total cost of revenue | 56,026 | 45,107 | |
Gross profit | 248,959 | 184,817 | |
Operating expenses | |||
Research and development | 89,065 | 75,121 | |
Sales and marketing | 118,398 | 118,633 | |
General and administrative | 85,326 | 66,738 | |
Depreciation and amortization of intangible assets | [1] | 12,817 | 12,019 |
Total operating expenses | 305,606 | 272,511 | |
Loss from operations | (56,647) | (87,694) | |
Other income, net | 29,308 | 5,947 | |
Loss before provision for (benefit from) income taxes | (27,339) | (81,747) | |
Provision for (benefit from) income taxes | 522 | (107) | |
Net loss | $ (27,861) | $ (81,640) | |
Net loss per share attributable to common stockholders: | |||
Net loss per share, basic (dollars per share) | $ (0.26) | $ (0.78) | |
Net loss per share, diluted (dollars per share) | $ (0.26) | $ (0.78) | |
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) | 106,817 | 105,086 | |
Weighted-average number of shares outstanding, diluted (in shares) | 106,817 | 105,086 | |
Subscription and transaction fees | |||
Revenue | $ 265,142 | $ 214,611 | |
Interest on funds held for customers | |||
Revenue | $ 39,843 | $ 15,313 | |
[1] (1) Depreciation expense does not include amortization of capitalized internal-use software costs paid in cash. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (27,861) | $ (81,640) |
Other comprehensive income (loss): | ||
Net unrealized gain (loss) on investments in available-for-sale securities | 675 | (270) |
Comprehensive loss | $ (27,186) | $ (81,910) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit |
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, 2023 | 106,550 | ||||
Beginning balance at Jun. 30, 2023 | 4,085,969 | $ 2 | 4,946,623 | (4,488) | (856,168) |
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares) | 634 | ||||
Issuance of common stock upon exercise of stock options and release of restricted stock units | 2,946 | 2,946 | |||
Issuance of common stock under the employee stock purchase plan (in shares) | 91 | ||||
Issuance of common stock under the employee stock purchase plan | 7,846 | 7,846 | |||
Repurchase and retirement of common stock (in shares) | (160) | ||||
Repurchase and retirement of common stock | (16,068) | (16,068) | |||
Stock-based compensation | 64,606 | 64,606 | |||
Other comprehensive income (loss) | 675 | 675 | |||
Net loss | (27,861) | (27,861) | |||
Ending balance (in shares) at Sep. 30, 2023 | 107,115 | ||||
Ending balance at Sep. 30, 2023 | $ 4,118,113 | $ 2 | $ 5,022,021 | $ (3,813) | $ (900,097) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (27,861) | $ (81,640) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation | 65,147 | 72,620 |
Amortization of intangible assets | 20,221 | 19,769 |
Depreciation of property and equipment | 3,718 | 2,546 |
Amortization of capitalized internal-use software costs | 1,352 | 924 |
Amortization of debt issuance costs, net of accretion of debt premium | 1,761 | 1,712 |
Amortization of premium (accretion of discount) on investments in marketable debt securities | (13,093) | (2,215) |
Provision for losses on acquired card receivables and other financial assets | 12,401 | 6,611 |
Non-cash operating lease expense | 2,388 | 2,342 |
Deferred income taxes | (42) | (299) |
Other | (562) | 930 |
Changes in assets and liabilities: | ||
Accounts receivable | 3,707 | (4,774) |
Prepaid expenses and other current assets | (4,704) | (1,339) |
Other assets | (1,074) | (1,138) |
Accounts payable | (2,508) | 1,511 |
Other accruals and current liabilities | (2,286) | 4,247 |
Operating lease liabilities | (2,423) | (2,386) |
Other long-term liabilities | (32) | 34 |
Deferred revenue | (2,449) | (1,303) |
Net cash provided by operating activities | 53,661 | 18,152 |
Cash flows from investing activities: | ||
Purchases of corporate and customer fund short-term investments | (399,588) | (859,911) |
Proceeds from maturities of corporate and customer fund short-term investments | 757,169 | 838,099 |
Purchases of loans held for investment | (32,756) | 0 |
Principal repayments of loans held for investment | 25,330 | 0 |
Acquired card receivables, net | (42,333) | (107,943) |
Purchases of property and equipment | (403) | (1,376) |
Capitalization of internal-use software costs | (5,645) | (4,764) |
Proceeds from beneficial interest | 0 | 2,080 |
Other | 0 | 500 |
Net cash provided by (used in) investing activities | 301,774 | (133,315) |
Cash flows from financing activities: | ||
Customer fund deposits liability and other | (91,190) | (25,472) |
Prepaid card deposits | (13,979) | 10,923 |
Repurchase of common stock | (12,061) | 0 |
Proceeds from exercise of stock options | 2,946 | 3,901 |
Proceeds from issuance of common stock under the employee stock purchase plan | 7,846 | 8,494 |
Contingent consideration payout | (5,471) | 0 |
Net cash used in financing activities | (111,909) | (2,154) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (180) | (277) |
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | 243,346 | (117,594) |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 4,224,840 | 3,542,715 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | 4,468,186 | 3,425,121 |
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 | 1,527,182 | 1,608,966 |
Restricted cash included in other current assets | 98,313 | 71,629 |
Restricted cash included in other assets | 7,088 | 6,724 |
Restricted cash and restricted cash equivalents included in funds held for customers | 2,835,603 | 1,737,802 |
Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ 4,468,186 | $ 3,425,121 |
The Company and Its Significant
The Company and Its Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
The Company and Its Significant Accounting Policies | THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES Bill.com, Inc. was incorporated in the State of Delaware in April 2006. BILL.com Holdings, Inc., was incorporated in the State of Delaware in August 2018. In November 2018, Bill.com, Inc. consummated a reorganization with Bill.com Holdings, Inc. (renamed BILL Holdings, Inc. in February 2023), resulting in the latter becoming the parent entity of Bill.com, Inc. Bill.com, Inc. was subsequently converted into a limited liability company and renamed Bill.com, LLC. BILL Holdings, Inc. and its wholly-owned subsidiaries are collectively referred to as the “Company”. The Company is a provider of software-as-a-service, cloud-based payments, and spend and expense management products, which allow users to automate accounts payable and accounts receivable transactions, enable businesses to easily connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency. 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 (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (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 state 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 months ended September 30, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2024 or for any other future annual or interim period. The unaudited condensed consolidated balance sheet as of June 30, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by 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, 2023. Segment Reporting The Company operates as one operating segment because its chief operating decision maker, who is the Chief Executive Officer, reviews its financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. The Company's long-lived assets are mainly located in the United States (U.S.) and revenue is mainly generated in the U.S. Long-lived assets outside the U.S. are not material as of September 30, 2023 and June 30, 2023. Total revenue from external customers outside of the U.S. was approximately 3% of consolidated total revenue during each of the three months ended September 30, 2023 and 2022. Use of Estimates The preparation of condensed consolidated financial statements in conformity with 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 losses on accounts receivable, acquired card receivables and other financial assets; accrual for rewards; variable consideration used in revenue recognition for certain contracts; benefit periods used to amortize deferred costs; reserve for losses on funds held for customers; inputs used to value certain stock-based compensation awards; and valuation of deferred tax assets. The Company evaluates these Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash and cash equivalents consist of cash in banks, highly liquid investments with maturities of three months or less at the time of purchase. Restricted cash consists of (i) amounts restricted under deposit account control agreements, (ii) minimum cash balances that are required to be maintained by certain banks, (iii) cash collateral required by the Company’s lessors to satisfy letter of credit requirements under its lease agreements, (iv) cash collateral required by a bank in connection with the Company’s money transmission activities, and (v) cash in bank and cash deposits held by payment processing companies included in funds held for customers. Restricted cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase that are included in funds held for customers. Except for the restricted cash included in funds held for customers, the current and non-current portion of the restricted cash is included in prepaid expenses and other current assets and in other assets, respectively, in the accompanying 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 large multinational financial institutions that may at times exceed federally insured limits. In connection with recent instability in the U.S. banking system, the Company's management has taken incremental precautions to safeguard its assets and evaluate the nature and extent of its financial partnerships. Management believes that the financial institutions with which the Company does business are financially sound with minimal credit risk. Management further believes the associated risk of concentration for the Company’s investments is mitigated by holding a diversified portfolio of highly rated investments consisting of money market funds and short-term debt securities. The Company performs credit evaluations to verify the credit quality of its financial assets and determine any at-risk receivables. An allowance for potential credit losses on Financial Assets is recognized. As of September 30, 2023 and June 30, 2023, the allowance for potential credit losses related to accounts receivable and acquired card receivables totaled approximately $18.8 million and $15.9 million, respectively. These amounts do not include the immaterial allowance for potential credit losses on the purchase of card receivables that have been authorized but not cleared at the end of the periods. There were no customers that exceeded 10% of the Company’s total revenue during the three months ended September 30, 2023 and 2022. 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, 2023. Recently Adopted Accounting Pronouncements There have been no recently adopted accounting pronouncements since the filing of the Company's Annual Report on Form 10-K for the year ended June 30, 2023 that may have a material impact on the Company's condensed consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The Company generates revenue primarily from subscription and transaction fees. The table below shows the Company’s revenue from subscription and transaction fees, which are disaggregated by sales channel, and revenue from interest on funds held for customers (in thousands). Three Months Ended 2023 2022 Small-to-midsize businesses, accounting firms, spending businesses and other $ 260,203 $ 204,821 Financial institutions 4,939 9,790 Total subscription and transaction fees 265,142 214,611 Interest on funds held for customers 39,843 15,313 Total revenue $ 304,985 $ 229,924 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 months ended September 30, 2023, the Company recognized $10.2 million of revenue that was included in the deferred revenue balance as of June 30, 2023. Remaining performance obligations The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized as revenue. As of September 30, 2023, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $125.1 million, which the company expects to recognize as revenue in future periods without a significant reduction. Of the total remaining performance obligations, the Company expects to recognize approximately 81% within two years and 19% over the next three Unbilled revenue Unbilled revenue consists of revenue recognized that has not been billed to the customers yet. The unbilled revenue amounted to $15.5 million and $14.0 million as of September 30, 2023 and June 30, 2023, respectively and is included in accounts receivable, net in the accompanying condensed consolidated balance sheets. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENTThe 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): September 30, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,056,800 $ — $ — $ 1,056,800 Corporate bonds — 50,655 — 50,655 U.S. treasury securities — 14,858 — 14,858 1,056,800 65,513 — 1,122,313 Short-term investments: Corporate bonds — 452,417 — 452,417 U.S. treasury securities — 483,829 — 483,829 U.S. agency securities — 54,086 — 54,086 Asset-backed securities — 63,220 — 63,220 Certificates of deposit — 65,904 — 65,904 — 1,119,456 — 1,119,456 Funds held for customers: Restricted cash equivalents: Money market funds 1,133,687 — — 1,133,687 1,133,687 — — 1,133,687 Short-term investments: Corporate bonds — 199,128 — 199,128 Certificates of deposit — 93,317 — 93,317 U.S. agency securities — 27,484 — 27,484 Asset-backed securities — 49,087 — 49,087 U.S. treasury securities — 54,560 — 54,560 — 423,576 — 423,576 Total assets measured at fair value $ 2,190,487 $ 1,608,545 $ — $ 3,799,032 Liabilities Contingent consideration (1) $ — $ — $ (5,630) $ (5,630) Total liabilities measured at fair value $ — $ — $ (5,630) $ (5,630) (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, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,131,621 $ — $ — $ 1,131,621 Certificates of deposit — 2,578 — 2,578 Corporate bonds — 45,301 — 45,301 U.S. treasury securities 44,856 — — 44,856 1,176,477 47,879 — 1,224,356 Short-term investments: Corporate bonds — 479,483 — 479,483 U.S. treasury securities 408,368 — — 408,368 U.S. agency securities — 57,967 — 57,967 Asset-backed securities — 51,193 — 51,193 Certificates of deposit — 46,099 — 46,099 408,368 634,742 — 1,043,110 Funds held for customers: Restricted cash equivalents: Money market funds 713,469 — — 713,469 713,469 — — 713,469 Short-term investments Corporate bonds — 433,920 — 433,920 Certificates of deposit — 233,291 — 233,291 U.S. agency securities — 27,458 — 27,458 Asset-backed securities — 70,661 — 70,661 U.S. treasury securities 81,074 — — 81,074 81,074 765,330 — 846,404 Total assets measured at fair value $ 2,379,388 $ 1,447,951 $ — $ 3,827,339 Liabilities Contingent consideration (1) — — (12,035) (12,035) Total liabilities measured at fair value $ — $ — $ (12,035) $ (12,035) (1) The Company used the probability-weighted discounted cash flow method to estimate the contingent consideration. The significant inputs used in the fair value measurement of the contingent consideration are the probability of payout and discount rate. As these inputs are not based on observable market data, the liability represents a Level 3 measurement within the fair value hierarchy. There were no transfers of financial instruments between Level 1, Level 2, and Level 3 during the periods presented. The fair values of the Company’s Level 1 instruments were derived from quoted market prices and active markets for these specific instruments. The valuation techniques used to measure the fair values of Level 2 instruments were derived from non-binding market consensus prices that were corroborated with observable market data, quoted market prices for similar instruments, or pricing models. The Company 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 September 30, 2023. The Company carries the Notes at par value, less the unamortized issuance costs in the accompanying condensed consolidated balance sheets. The estimated fair value of the 2027 Notes and 2025 Notes, which is presented for disclosure purposes only, was approximately $467.0 million and $1.16 billion, respectively, as of September 30, 2023. The fair value was based on a market approach, which represents a Level 2 valuation estimate. The market approach was determined based on the actual bids and offers of the Notes in an over-the-counter market as of the last day of trading prior to the end of the period. Our financial instruments not measured and recorded at fair value, includes cash, restricted cash, acquired cards receivables, interest receivable, incentive receivables and borrowings from revolving credit facility, are carried at amortized cost, which approximates their fair value. If these financial instruments were measured at fair value in the financial statements, cash would be classified as Level 1; restricted cash, interest receivables, incentive receivables and borrowings from revolving credit facility would be classified as Level 2 and the acquired cards receivables would be classified as Level 3 in the fair value hierarchy. |
Short-Term Investments
Short-Term Investments | 3 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term Investments | SHORT-TERM INVESTMENTS Short-term investments consisted of the following as of the dates presented (in thousands): September 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 454,350 $ 75 $ (2,008) $ 452,417 U.S. treasury securities 484,895 17 (1,083) 483,829 Asset-backed securities 63,323 17 (120) 63,220 Certificates of deposit 65,904 — — 65,904 U.S. agency securities 54,283 6 (203) 54,086 Total $ 1,122,755 $ 115 $ (3,414) $ 1,119,456 June 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 481,658 $ 207 $ (2,382) $ 479,483 U.S. treasury securities 409,586 42 (1,260) 408,368 U.S. agency securities 58,166 — (199) 57,967 Asset-backed securities 51,321 8 (136) 51,193 Certificates of deposit 46,099 — — 46,099 Total $ 1,046,830 $ 257 $ (3,977) $ 1,043,110 The amortized cost and fair value amounts included accrued interest receivables of $4.6 million and $4.3 million as of September 30, 2023 and June 30, 2023, respectively. As of September 30, 2023, the fair value of the Company’s short-term investments that mature within one year and thereafter was $867.2 million and $252.3 million, respectively, or 77% and 23%, respectively, of the Company’s total short-term investments. As of June 30, 2023, the fair value of the Company’s short-term investments that mature within one year and thereafter was $758.1 million and $285.0 million, respectively, or 73% and 27%, respectively, of the Company’s total short-term investments. As of September 30, 2023, approximately 200 out of approximately 354 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): September 30, 2023 Fair value Unrealized Corporate bonds $ 292,968 $ (2,008) U.S. treasury securities 298,908 (1,083) Asset-backed securities 47,466 (120) U.S. agency securities 49,275 (203) Total $ 688,617 $ (3,414) June 30, 2023 Fair value Unrealized Corporate bonds $ 296,562 $ (2,382) U.S. treasury securities 213,726 (1,260) Asset-backed securities 38,426 (136) U.S. agency securities 57,967 (199) Total $ 606,681 $ (3,977) The Company's investments balance with unrealized losses that had been in a continuous unrealized loss position for less than 12 months was $585.1 million and $506.5 million as of September 30, 2023 and June 30, 2023, respectively. Investments balance with unrealized losses that had been in a continuous unrealized loss position for more than 12 months was $103.5 million and $100.2 million as of September 30, 2023 and June 30, 2023, respectively. Unrealized losses have not been recognized into income as we neither intend to sell, nor anticipate that it is more likely than not that we will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. There have been no significant realized gains or losses on the short-term investments during the three months ended September 30, 2023 and 2022. |
Funds Held for Customers
Funds Held for Customers | 3 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Funds Held for Customers | FUNDS HELD FOR CUSTOMERS Funds held for customers consisted of the following as of the dates presented (in thousands): September 30, June 30, Restricted cash $ 1,701,916 $ 1,793,088 Restricted cash equivalents 1,133,687 713,469 Funds receivable 11,611 12,822 Corporate bonds 199,128 433,920 Certificates of deposit 93,317 233,291 Asset-backed securities 49,087 70,661 U.S. agency securities 27,484 27,458 U.S. treasury securities 54,560 81,074 Total funds held for customers 3,270,790 3,365,783 Less - income earned by the Company included in other current assets (7,262) (9,874) Total funds held for customers, net of income earned by the Company $ 3,263,528 $ 3,355,909 Income earned by the Company that is included in other current assets represents interest income, accretion of discount (offset by amortization of premium), and net unrealized gains on customer funds that were invested in money market funds and short-term marketable debt securities. Earnings from these investments are contractually earned by the Company and are expected to be transferred into the Company’s corporate deposit account upon sale or settlement of the associated investment, and are not considered funds held for customers. Below is a summary of the fair value of funds held for customers that were invested in short-term marketable debt securities as of the dates presented (in thousands): September 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 199,138 $ 5 $ (15) $ 199,128 Certificates of deposit 93,316 1 — 93,317 U.S. agency securities 27,502 1 (19) 27,484 Asset-backed securities 49,259 — (172) 49,087 U.S. treasury securities 54,699 — (139) 54,560 Total $ 423,914 $ 7 $ (345) $ 423,576 June 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 433,936 $ 18 $ (34) $ 433,920 Certificates of deposit 233,290 1 — 233,291 Asset-backed securities 70,993 — (332) 70,661 U.S. agency securities 27,484 5 (31) 27,458 U.S. treasury securities 81,309 1 (236) 81,074 Total $ 847,012 $ 25 $ (633) $ 846,404 The amortized cost and fair value amounts include accrued interest receivable of $3.7 million and $6.9 million and as of September 30, 2023 and June 30, 2023, respectively. As of September 30, 2023, approximately 90%, or $382.4 million, of the total funds held for customers invested in marketable debt securities mature within one year and approximately 10% or $41.1 million mature thereafter. As of June 30, 2023, 93%, or $785.3 million, of the funds held for customers invested in short-term marketable debt securities mature within one year and approximately 7%, or $61.1 million, mature thereafter. As of September 30, 2023, approximately 30 out of approximately 120 investment positions were in an unrealized loss position. The following tables present the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): September 30, 2023 Fair value Unrealized Corporate bonds $ 9,522 $ (15) U.S. agency securities 22,458 (19) Asset-backed securities 49,087 (172) U.S. treasury securities 54,560 (139) Total $ 135,627 $ (345) June 30, 2023 Fair value Unrealized Corporate bonds $ 34,530 $ (34) Asset-backed securities 70,661 (332) U.S. agency securities 22,494 (31) U.S. treasury securities 74,888 (236) Total $ 202,573 $ (633) Investments with unrealized losses that have been in a continuous unrealized loss position for less than 12 months was $122.1 million and $191.0 million as of September 30, 2023 and June 30, 2023, respectively. Investments balance with unrealized losses that had been in a continuous unrealized loss position for more than 12 months was $13.5 million and $11.5 million as of September 30, 2023 and June 30, 2023, respectively. Unrealized losses have not been recognized into income as we neither intend to sell, nor anticipate that it is more likely than not that we will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. There have been no significant realized gains or losses on funds held for customers that were invested in short-term marketable debt securities during the three months ended September 30, 2023 and 2022. |
Acquired Card Receivables
Acquired Card Receivables | 3 Months Ended |
Sep. 30, 2023 | |
Acquired Card Receivables [Abstract] | |
Acquired Card Receivables | ACQUIRED CARD RECEIVABLES Acquired Card Receivables Acquired card receivables consisted of the following as of the dates presented (in thousands): September 30, June 30, Gross amount of acquired card receivables $ 571,340 $ 474,148 Less: allowance for credit losses (18,513) (15,498) Total $ 552,827 $ 458,650 As of September 30, 2023, approximately $218.1 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 incurred losses related to card transactions disputed by spending businesses. The amounts were not material during the three months ended September 30, 2023 and 2022. The acquired card receivable balances above do not include purchases of card receivables from the Company's card issuing partner banks (Issuing Banks) that have not cleared at the end of the reporting period. Purchases of card receivables that have not cleared as of September 30, 2023 totaled $36.4 million. The Company recognized an immaterial amount of expected credit losses on the purchased card receivables that have not cleared yet as of each of September 30, 2023 and 2022. 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): September 30, June 30, Current and less than 30 days past due $ 559,169 $ 463,704 30 ~ 59 days past due 5,196 2,507 60 ~ 89 days past due 3,277 4,544 90 ~ 119 days past due 2,883 3,196 Over 119 days past due 815 197 Total $ 571,340 $ 474,148 The outstanding balance of acquired card receivables that were (i) 90 days or more past due that continued to accrue fees and had an allowance for outstanding balance and fees and (ii) classified as nonperforming was not material as of each of September 30, 2023 and June 30, 2023. As part of its collection efforts, the Company may modify card receivables terms with spending businesses that defaulted on payments; such modifications may include principal forgiveness, late fee forgiveness, and/or an extension of payment terms. Total card receivables subject to such modifications were not material during the three months ended September 30, 2023 and 2022. Outstanding and modified card receivables as of September 30, 2023 subject to modification were not material. Upon the Company's determination that a modified card receivable (or a portion of the card receivable) has subsequently been deemed uncollectible, the card receivable balance and allowance for credit losses are adjusted for the uncollectible portion . Allowance for Credit Losses Below is a summary of the changes in allowance for credit losses presented (in thousands): Three Months Ended 2023 2022 Balance, beginning $ 15,498 $ 5,414 Initial allowance for credit losses on purchased card receivables with credit deterioration — 10 Provision for expected credit losses 11,975 6,583 Charge-off amounts (9,791) (5,033) Recoveries collected 831 567 Balance, end of period $ 18,513 $ 7,541 Card receivables acquired from the Issuing Banks and held for investment during the three months ended September 30, 2023 and 2022 were $4.1 billion and $2.7 billion, respectively. The allowance for credit losses related to acquired card receivables increased during the three months ended September 30, 2023 due to portfolio growth. Gross charge-off amounts for the three months ended September 30, 2023 consisted of $8.9 million that originated in the year ended June 30, 2023 and $0.9 million originated in the three months ended September 30, 2023. |
Debt and Borrowings
Debt and Borrowings | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Borrowings | DEBT AND BORROWINGS Debt and borrowings consisted of the following (in thousands): September 30, June 30, Current liabilities: Borrowings from revolving credit facility (including unamortized debt premium of $0.1 million) (1) $ 135,033 $ 135,046 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 (18,506) (20,218) Convertible senior notes, net 1,706,494 1,704,782 Total $ 1,841,527 $ 1,839,828 (1) Unamortized debt issuance costs balance for the Revolving Credit Facility was $0.2 million as of each September 30, 2023 and June 30, 2023, and is included in "Other assets" on the condensed consolidated balance shee t. 2027 Notes On September 24, 2021, the Company issued $575.0 million in aggregate principal amount of its 0% convertible senior notes due on April 1, 2027, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the 2027 Notes). The 2027 Notes are subject to the terms and conditions of the indenture governing the 2027 Notes between the Company and Wells Fargo Bank, N.A., as trustee (2027 Notes Trustee). The net proceeds from the issuance of the 2027 Notes were $560.1 million, after deducting debt discount and debt issuance costs totaling $14.9 million. The 2027 Notes are senior, unsecured obligations of the Company, and will not accrue interest unless the Company determines to pay special interest as a remedy for failure to timely file any reports required to be filed with the SEC, certain trading restrictions, or failure to deliver reports to the 2027 Notes Trustee. The 2027 Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the 2027 Notes and rank equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated, including the 2025 Notes. In addition, the 2027 Notes are subordinated to any of the Company’s secured indebtedness and to all indebtedness and other liabilities of the Company’s subsidiaries. The 2027 Notes have an initial conversion rate of 2.4108 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $414.80 per share of the Company’s common stock and approximately 1.4 million shares issuable upon conversion. The conversion rate is subject to customary adjustments for certain events as described below. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. The Company’s current intent is to settle conversions of the 2027 Notes through a combination settlement, which involves a repayment of the principal portion in cash with any excess of the conversion value over the principal amount settled in shares of common stock. The Company may redeem for cash, all or any portion of the 2027 Notes, at the Company’s option, on or after October 5, 2024 if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day (Conversion Condition) preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the 2027 Notes. The holders of the 2027 Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding January 1, 2027 in multiples of $1,000 principal amount, under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on December 31, 2021, and only during such calendar quarter, if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five 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, and together with the 2027 Notes, the Notes). The 2025 Notes are subject to the terms and conditions of the indenture governing the 2025 Notes between the Company and Wells Fargo Bank, N.A., as trustee (2025 Notes Trustee). The net proceeds from the issuance of the 2025 Notes were $1.13 billion, after deducting debt discount and debt issuance costs totaling $20.6 million. The 2025 Notes are senior, unsecured obligations of the Company, and will not accrue interest unless the Company determines to pay special interest as a remedy for failure to timely file any reports required to be filed with the SEC, certain trading restrictions, or failure to deliver reports to the 2025 Notes Trustee. The 2025 Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the 2025 Notes and rank equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated, including the 2027 Notes. In addition, the 2025 Notes are subordinated to any of the Company’s secured indebtedness and to all indebtedness and other liabilities of the Company’s subsidiaries. The 2025 Notes have an initial conversion rate of 6.2159 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $160.88 per share of the Company’s common stock and approximately 7.1 million shares issuable upon conversion. The conversion rate is subject to customary adjustments for certain events as described below. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. The Company’s current intent is to settle conversions of the 2025 Notes through a combination settlement, which involves a repayment of the principal portion in cash with any excess of the conversion value over the principal amount settled in shares of common stock. The Company may redeem for cash, all or any portion of the 2025 Notes, at the Company’s option, on or after December 5, 2023 if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day (Conversion Condition) preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the 2025 Notes. The holders of the 2025 Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding September 1, 2025 in multiples of $1,000 principal amount, under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on March 31, 2021, and only during such calendar quarter, if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on and including the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five 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 As of September 30, 2023 and June 30, 2023, the Notes consisted of the following (in thousands): September 30, 2023 June 30, 2023 2027 Notes 2025 Notes 2027 Notes 2025 Notes Principal $ 575,000 $ 1,150,000 $ 575,000 $ 1,150,000 Less: unamortized issuance costs (9,514) (8,992) (10,188) (10,030) Net carrying amount $ 565,486 $ 1,141,008 $ 564,812 $ 1,139,970 The debt issuance costs of the Notes are being amortized using the effective interest method. During the three months ended September 30, 2023 and 2022, the Company recognized $1.7 million and $1.7 million, respectively, of the debt issuance costs of the Notes. During the three months ended September 30, 2023 and 2022 the effective interest rates of the 2027 Notes and 2025 Notes was 0.48% and 0.36%, respectively. As of September 30, 2023, the weighted-average remaining life of the Notes was 2.6 years. The "if-converted" value of the Notes did not exceed the principal amount of $1.7 billion as of each of September 30, 2023 and June 30, 2023. Capped Call Transactions In conjunction with the issuance of each of the 2025 Notes and the 2027 Notes, the Company entered into capped call transactions (collectively, the Capped Calls) with certain of the initial purchasers of the Notes and/or their respective affiliates or other financial institutions at a total cost of $125.8 million. The Capped Calls are separate transactions and are not part of the terms of the Notes. The total amount paid for the Capped Calls was recorded as a reduction of additional paid-in capital. The Company used the proceeds from the Notes to pay for the cost of the Capped Call premium. The cost of the Capped Calls is not expected to be tax-deductible as the Company did not elect to integrate the Capped Calls into the Notes for tax purposes. The Capped Calls associated with the 2027 Notes and 2025 Notes have an initial strike price of approximately $414.80 per share and $160.88 per share, respectively, subject to certain adjustments, which corresponds to the respective initial conversion price of the 2027 Notes and 2025 Notes, and have an initial cap price of $544.00 per share and $218.14 per share, respectively, subject to certain adjustments; provided that such cap price shall not be reduced to an amount less than their respective strike price. The Capped Calls associated with the Notes cover, subject to anti-dilution adjustments, a total of approximately 8.5 million shares of the Company’s common stock. The Capped Calls are expected to generally reduce the potential dilution of the Company’s common stock upon any conversion of the Notes and/or offset any cash payments that the Company is required to make in excess of the principal amount of such converted notes, as the case may be, with such reduction and/or offset subject to a cap. Revolving Credit Facility The Company's Revolving Credit and Security Agreement was executed in March 2021 (the 2021 Revolving Credit Agreement), and was amended in August 2022 (as amended, the Revolving Credit Facility) to finance the acquisition of card receivables. The Revolving Credit Facility matures in June 2024 or earlier pursuant to the 2021 Revolving Credit Agreement, and has a total commitment of $225.0 million. The required minimum utilization was $135.0 million, or 60% of the total commitment, and the Company had borrowed $135.0 million against the Revolving Credit Facility as of September 30, 2023. The Revolving Credit Facility requires the Company to pay unused fees up to 0.50% per annum. Borrowings are secured by acquired card receivables. Prior to March 3, 2023, borrowings of up to $75.0 million bore interest of 2.75% per annum and borrowings greater than $75.0 million bore interest of 2.65% per annum, plus SOFR (subject to a floor rate of 0.25% and benchmark adjustment rate of 0.28%). Beginning March 3, 2023, borrowings bear interest of 2.65% per annum, plus SOFR (subject to a floor rate of 0.25% and benchmark adjustment rate of 0.28%). The effective interest rate was 8.34% per annum as of September 30, 2023. The Company is required to comply with certain restricted covenants, including liquidity requirements. As of September 30, 2023, the Company was in compliance with those covenants. The debt issuance costs and debt premium associated with the Revolving Credit Facility is amortized using the effective interest method over the remaining term of the 2021 Revolving Credit Agreement, with a weighted-average remaining amortization period of approximately 0.6 years. The amortization of the debt issuance costs and debt premium is recorded in other income, net in the accompanying condensed consolidated statement of operations and during each of the three months ended September 30, 2023 and 2022 was not material. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Stock Based Compensation Stock-based compensation by award type (in thousands): Three Months Ended 2023 2022 RSUs $ 54,864 $ 55,670 Stock options 3,707 11,793 Performance-based awards 5,063 3,291 Employee stock purchase plan 2,766 2,821 Market-based RSUs 1,070 1,254 Total stock-based compensation $ 67,470 $ 74,828 Stock-based compensation 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 2023 2022 Revenue - subscription and transaction fees $ 370 $ — Cost of revenue 2,547 2,001 Research and development 27,365 20,851 Sales and marketing 13,885 29,258 General and administrative 20,980 20,510 Total amount charged to loss from operations 65,147 72,620 Property and equipment (capitalized internal-use software) 2,323 2,209 Total stock-based compensation $ 67,470 $ 74,828 Unamortized stock-based compensation by award type: Unrecognized compensation (in thousands) Weighted-average recognition period (in years) RSUs $ 622,831 3.2 Performance-based awards 24,240 3.3 Market-based RSUs 11,114 1.4 Stock options 11,069 1.2 Employee stock purchase plan 3,446 0.6 Total unamortized stock-based compensation $ 672,700 Share Repurchase Program In January 2023, the Board of Directors authorized the repurchase of up to $300 million of the Company's outstanding shares of common stock (the Share Repurchase Program). The Company may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans, intended to qualify under Rule 10b5-1 under Securities Exchange Act of 1934, as amended. The timing and total amount of share repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The Share Repurchase Program has a term of 12 months, may be suspended or discontinued at any time, and does not obligate the Company to acquire any amount of common stock. During the three months ended September 30, 2023, the Company repurchased and subsequently retired 159,979 shares for $16.1 million under the Share Repurchase Program. The total price of the shares repurchased and related transaction costs are reflected as a reduction of common stock and and increase to accumulated deficit on the Company's condensed consolidated balance sheets. As of September 30, 2023, $196.3 million remained available for future share repurchases under the Share Repurchase Program. |
Other Income, Net
Other Income, Net | 3 Months Ended |
Sep. 30, 2023 | |
Other Income, Nonoperating [Abstract] | |
Other Income, Net | OTHER INCOME, NET Other income, net consisted of the following for the periods presented (in thousands): Three Months Ended 2023 2022 Interest expense $ (4,738) $ (2,849) Lower of cost or market adjustment on card receivables sold and held for sale — (1,545) Interest income 34,353 11,464 Other (307) (1,123) Total other income, net $ 29,308 $ 5,947 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The 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. For the three months ended September 30, 2023, the Company's income tax provision was approximately $0.5 million. 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 provision during the three months ended September 30, 2023 consisted primarily of 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, 2024, partially offset by a reduction to the net deferred tax liability as a result of the Company's current year losses. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIESDuring the three months ended September 30, 2023 there have been no material changes to the Company's contractual obligations, commitments or litigation from those disclosed in Note 15 to the financial statements in the Company's Annual Report on Form 10-K for the year ended June 30, 2023. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable To Common Stockholders | 3 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable To Common Stockholders | NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended 2023 2022 Numerator: Net loss attributable to common stockholders $ (27,861) $ (81,640) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders Basic and diluted 106,817 105,086 Net loss per share attributable to common stockholders: Basic and diluted $ (0.26) $ (0.78) Potentially dilutive securities, which were excluded from the diluted net loss per share calculations because they would have been September 30, 2023 2022 RSUs 5,619 4,904 Stock options 2,363 3,498 Performance-based awards 228 — Employee stock purchase plan 182 — Market-based RSUs 115 — Total 8,507 8,402 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 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net loss | $ (27,861) | $ (81,640) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
The Company and Its Significa_2
The Company and Its Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
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 (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (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 state 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 months ended September 30, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2024 or for any other future annual or interim period. The unaudited condensed consolidated balance sheet as of June 30, 2023 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by 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, 2023. |
Segment Reporting | Segment Reporting The Company operates as one operating segment because its chief operating decision maker, who is the Chief Executive Officer, reviews its financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. The Company's long-lived assets are mainly located in the United States (U.S.) and revenue is mainly generated in the U.S. Long-lived assets outside the U.S. are not material as of September 30, 2023 and June 30, 2023. Total revenue from external customers outside of the U.S. was approximately 3% of consolidated total revenue during each of the three months ended September 30, 2023 and 2022. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with 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 losses on accounts receivable, acquired card receivables and other financial assets; accrual for rewards; variable consideration used in revenue recognition for certain contracts; benefit periods used to amortize deferred costs; reserve for losses on funds held for customers; inputs used to value certain stock-based compensation awards; and valuation of deferred tax assets. The Company evaluates these |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash and cash equivalents consist of cash in banks, highly liquid investments with maturities of three months or less at the time of purchase. Restricted cash consists of (i) amounts restricted under deposit account control agreements, (ii) minimum cash balances that are required to be maintained by certain banks, (iii) cash collateral required by the Company’s lessors to satisfy letter of credit requirements under its lease agreements, (iv) cash collateral required by a bank in connection with the Company’s money transmission activities, and (v) cash in bank and cash deposits held by payment processing companies included in funds held for customers. Restricted cash equivalents consist of highly liquid investments with maturities of three months or less at the time of purchase that are included in funds held for customers. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, restricted cash, restricted cash equivalents, short-term investments, accounts receivable, and acquired card receivables (collectively referred to as Financial Assets). The Company maintains its cash, cash equivalents, restricted cash, restricted cash equivalents and short-term investments with large multinational financial institutions that may at times exceed federally insured limits. In connection with recent instability in the U.S. banking system, the Company's management has taken incremental precautions to safeguard its assets and evaluate the nature and extent of its financial partnerships. Management believes that the financial institutions with which the Company does business are financially sound with minimal credit risk. Management further believes the associated risk of concentration for the Company’s investments is mitigated by holding a diversified portfolio of highly rated investments consisting of money market funds and short-term debt securities. |
Foreign Currency | Foreign CurrencyThe functional currency of the Company's foreign subsidiaries is the U.S. dollar, which is the Company's reporting currency. Gains and losses from the remeasurement of transactions denominated in foreign currencies other than the functional currency of the foreign subsidiaries are included in other income, 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, 2023. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements There have been no recently adopted accounting pronouncements since the filing of the Company's Annual Report on Form 10-K for the year ended June 30, 2023 that may have a material impact on the Company's condensed consolidated financial statements. |
Fair Value Measurement | The Company measures and reports its cash equivalents, short-term investments, funds held for customers that are invested in money market funds and marketable debt securities, and contingent consideration at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. In determining fair value, the Company utilizes quoted market prices, or valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and also considers counterparty credit risk in its assessment of fair value. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
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) | 3 Months Ended |
Sep. 30, 2023 | |
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 2023 2022 Small-to-midsize businesses, accounting firms, spending businesses and other $ 260,203 $ 204,821 Financial institutions 4,939 9,790 Total subscription and transaction fees 265,142 214,611 Interest on funds held for customers 39,843 15,313 Total revenue $ 304,985 $ 229,924 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis | The following tables set forth the fair value of assets and liabilities that were measured at fair value on a recurring basis based on the three-tier fair value hierarchy as of the dates presented (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,056,800 $ — $ — $ 1,056,800 Corporate bonds — 50,655 — 50,655 U.S. treasury securities — 14,858 — 14,858 1,056,800 65,513 — 1,122,313 Short-term investments: Corporate bonds — 452,417 — 452,417 U.S. treasury securities — 483,829 — 483,829 U.S. agency securities — 54,086 — 54,086 Asset-backed securities — 63,220 — 63,220 Certificates of deposit — 65,904 — 65,904 — 1,119,456 — 1,119,456 Funds held for customers: Restricted cash equivalents: Money market funds 1,133,687 — — 1,133,687 1,133,687 — — 1,133,687 Short-term investments: Corporate bonds — 199,128 — 199,128 Certificates of deposit — 93,317 — 93,317 U.S. agency securities — 27,484 — 27,484 Asset-backed securities — 49,087 — 49,087 U.S. treasury securities — 54,560 — 54,560 — 423,576 — 423,576 Total assets measured at fair value $ 2,190,487 $ 1,608,545 $ — $ 3,799,032 Liabilities Contingent consideration (1) $ — $ — $ (5,630) $ (5,630) Total liabilities measured at fair value $ — $ — $ (5,630) $ (5,630) (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, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 1,131,621 $ — $ — $ 1,131,621 Certificates of deposit — 2,578 — 2,578 Corporate bonds — 45,301 — 45,301 U.S. treasury securities 44,856 — — 44,856 1,176,477 47,879 — 1,224,356 Short-term investments: Corporate bonds — 479,483 — 479,483 U.S. treasury securities 408,368 — — 408,368 U.S. agency securities — 57,967 — 57,967 Asset-backed securities — 51,193 — 51,193 Certificates of deposit — 46,099 — 46,099 408,368 634,742 — 1,043,110 Funds held for customers: Restricted cash equivalents: Money market funds 713,469 — — 713,469 713,469 — — 713,469 Short-term investments Corporate bonds — 433,920 — 433,920 Certificates of deposit — 233,291 — 233,291 U.S. agency securities — 27,458 — 27,458 Asset-backed securities — 70,661 — 70,661 U.S. treasury securities 81,074 — — 81,074 81,074 765,330 — 846,404 Total assets measured at fair value $ 2,379,388 $ 1,447,951 $ — $ 3,827,339 Liabilities Contingent consideration (1) — — (12,035) (12,035) Total liabilities measured at fair value $ — $ — $ (12,035) $ (12,035) |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-Term Investments | Short-term investments consisted of the following as of the dates presented (in thousands): September 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 454,350 $ 75 $ (2,008) $ 452,417 U.S. treasury securities 484,895 17 (1,083) 483,829 Asset-backed securities 63,323 17 (120) 63,220 Certificates of deposit 65,904 — — 65,904 U.S. agency securities 54,283 6 (203) 54,086 Total $ 1,122,755 $ 115 $ (3,414) $ 1,119,456 June 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 481,658 $ 207 $ (2,382) $ 479,483 U.S. treasury securities 409,586 42 (1,260) 408,368 U.S. agency securities 58,166 — (199) 57,967 Asset-backed securities 51,321 8 (136) 51,193 Certificates of deposit 46,099 — — 46,099 Total $ 1,046,830 $ 257 $ (3,977) $ 1,043,110 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | 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): September 30, 2023 Fair value Unrealized Corporate bonds $ 292,968 $ (2,008) U.S. treasury securities 298,908 (1,083) Asset-backed securities 47,466 (120) U.S. agency securities 49,275 (203) Total $ 688,617 $ (3,414) June 30, 2023 Fair value Unrealized Corporate bonds $ 296,562 $ (2,382) U.S. treasury securities 213,726 (1,260) Asset-backed securities 38,426 (136) U.S. agency securities 57,967 (199) Total $ 606,681 $ (3,977) |
Funds Held for Customers (Table
Funds Held for Customers (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Funds Held For Customers | Funds held for customers consisted of the following as of the dates presented (in thousands): September 30, June 30, Restricted cash $ 1,701,916 $ 1,793,088 Restricted cash equivalents 1,133,687 713,469 Funds receivable 11,611 12,822 Corporate bonds 199,128 433,920 Certificates of deposit 93,317 233,291 Asset-backed securities 49,087 70,661 U.S. agency securities 27,484 27,458 U.S. treasury securities 54,560 81,074 Total funds held for customers 3,270,790 3,365,783 Less - income earned by the Company included in other current assets (7,262) (9,874) Total funds held for customers, net of income earned by the Company $ 3,263,528 $ 3,355,909 |
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): September 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 199,138 $ 5 $ (15) $ 199,128 Certificates of deposit 93,316 1 — 93,317 U.S. agency securities 27,502 1 (19) 27,484 Asset-backed securities 49,259 — (172) 49,087 U.S. treasury securities 54,699 — (139) 54,560 Total $ 423,914 $ 7 $ (345) $ 423,576 June 30, 2023 Amortized Gross Gross Fair value Corporate bonds $ 433,936 $ 18 $ (34) $ 433,920 Certificates of deposit 233,290 1 — 233,291 Asset-backed securities 70,993 — (332) 70,661 U.S. agency securities 27,484 5 (31) 27,458 U.S. treasury securities 81,309 1 (236) 81,074 Total $ 847,012 $ 25 $ (633) $ 846,404 |
Summary of Gross Unrealized Losses And Fair Values | The following tables present the gross unrealized losses and fair values for those investments that were in an unrealized loss position as of the dates presented (in thousands): September 30, 2023 Fair value Unrealized Corporate bonds $ 9,522 $ (15) U.S. agency securities 22,458 (19) Asset-backed securities 49,087 (172) U.S. treasury securities 54,560 (139) Total $ 135,627 $ (345) June 30, 2023 Fair value Unrealized Corporate bonds $ 34,530 $ (34) Asset-backed securities 70,661 (332) U.S. agency securities 22,494 (31) U.S. treasury securities 74,888 (236) Total $ 202,573 $ (633) |
Acquired Card Receivables (Tabl
Acquired Card Receivables (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Acquired Card Receivables [Abstract] | |
Schedule of Acquired Card Receivables | Acquired card receivables consisted of the following as of the dates presented (in thousands): September 30, June 30, Gross amount of acquired card receivables $ 571,340 $ 474,148 Less: allowance for credit losses (18,513) (15,498) Total $ 552,827 $ 458,650 |
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): September 30, June 30, Current and less than 30 days past due $ 559,169 $ 463,704 30 ~ 59 days past due 5,196 2,507 60 ~ 89 days past due 3,277 4,544 90 ~ 119 days past due 2,883 3,196 Over 119 days past due 815 197 Total $ 571,340 $ 474,148 |
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 2023 2022 Balance, beginning $ 15,498 $ 5,414 Initial allowance for credit losses on purchased card receivables with credit deterioration — 10 Provision for expected credit losses 11,975 6,583 Charge-off amounts (9,791) (5,033) Recoveries collected 831 567 Balance, end of period $ 18,513 $ 7,541 |
Debt and Borrowings (Tables)
Debt and Borrowings (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt and borrowings consisted of the following (in thousands): September 30, June 30, Current liabilities: Borrowings from revolving credit facility (including unamortized debt premium of $0.1 million) (1) $ 135,033 $ 135,046 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 (18,506) (20,218) Convertible senior notes, net 1,706,494 1,704,782 Total $ 1,841,527 $ 1,839,828 (1) Unamortized debt issuance costs balance for the Revolving Credit Facility was $0.2 million as of each September 30, 2023 and June 30, 2023, and is included in "Other assets" on the condensed consolidated balance shee t. |
Convertible Debt | As of September 30, 2023 and June 30, 2023, the Notes consisted of the following (in thousands): September 30, 2023 June 30, 2023 2027 Notes 2025 Notes 2027 Notes 2025 Notes Principal $ 575,000 $ 1,150,000 $ 575,000 $ 1,150,000 Less: unamortized issuance costs (9,514) (8,992) (10,188) (10,030) Net carrying amount $ 565,486 $ 1,141,008 $ 564,812 $ 1,139,970 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Summary of Stock Based Compensation Cost from Stock Options, RSUs and ESPP | Stock-based compensation by award type (in thousands): Three Months Ended 2023 2022 RSUs $ 54,864 $ 55,670 Stock options 3,707 11,793 Performance-based awards 5,063 3,291 Employee stock purchase plan 2,766 2,821 Market-based RSUs 1,070 1,254 Total stock-based compensation $ 67,470 $ 74,828 Stock-based compensation 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 2023 2022 Revenue - subscription and transaction fees $ 370 $ — Cost of revenue 2,547 2,001 Research and development 27,365 20,851 Sales and marketing 13,885 29,258 General and administrative 20,980 20,510 Total amount charged to loss from operations 65,147 72,620 Property and equipment (capitalized internal-use software) 2,323 2,209 Total stock-based compensation $ 67,470 $ 74,828 Unamortized stock-based compensation by award type: Unrecognized compensation (in thousands) Weighted-average recognition period (in years) RSUs $ 622,831 3.2 Performance-based awards 24,240 3.3 Market-based RSUs 11,114 1.4 Stock options 11,069 1.2 Employee stock purchase plan 3,446 0.6 Total unamortized stock-based compensation $ 672,700 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Other Income, Nonoperating [Abstract] | |
Schedule of Other Income, Net | Other income, net consisted of the following for the periods presented (in thousands): Three Months Ended 2023 2022 Interest expense $ (4,738) $ (2,849) Lower of cost or market adjustment on card receivables sold and held for sale — (1,545) Interest income 34,353 11,464 Other (307) (1,123) Total other income, net $ 29,308 $ 5,947 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable To Common Stockholders (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share amounts): Three Months Ended 2023 2022 Numerator: Net loss attributable to common stockholders $ (27,861) $ (81,640) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders Basic and diluted 106,817 105,086 Net loss per share attributable to common stockholders: Basic and diluted $ (0.26) $ (0.78) |
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 September 30, 2023 2022 RSUs 5,619 4,904 Stock options 2,363 3,498 Performance-based awards 228 — Employee stock purchase plan 182 — Market-based RSUs 115 — Total 8,507 8,402 |
The Company and Its Significa_3
The Company and Its Significant Accounting Policies - Segment Reporting (Details) | 3 Months Ended | |
Sep. 30, 2023 Segment | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||
Number of operating segments | 1 | |
External customer revenue, percentage | 0.03 | 0.03 |
The Company and Its Significa_4
The Company and Its Significant Accounting Policies - Concentrations of Credit Risk (Details) $ in Millions | 3 Months Ended | ||
Sep. 30, 2023 USD ($) Customer | Sep. 30, 2022 Customer | Jun. 30, 2023 USD ($) | |
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 | $ | $ 18.8 | $ 15.9 | |
Revenue Benchmark | Customer Concentration Risk | |||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||
Number of customers exceed 10% of revenue | Customer | 0 | 0 | |
Revenue Benchmark | Customer Concentration Risk | No Customer | |||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | |||
Concentration percentage | 10% | 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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 304,985 | $ 229,924 |
Subscription and transaction fees | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 265,142 | 214,611 |
Subscription and transaction fees | Small-to-midsize businesses, accounting firms, spending businesses and other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 260,203 | 204,821 |
Subscription and transaction fees | Financial institutions | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 4,939 | 9,790 |
Interest on funds held for customers | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 39,843 | $ 15,313 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||
Deferred revenue, recognized | $ 10.2 | |
Aggregate amount of transaction price allocated to performance obligations | 125.1 | |
Unbilled revenue | $ 15.5 | $ 14 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01 | ||
Disaggregation Of Revenue [Line Items] | ||
Aggregate amount of transaction price allocated to performance obligations, percentage | 81% | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-10-01 | ||
Disaggregation Of Revenue [Line Items] | ||
Aggregate amount of transaction price allocated to performance obligations, percentage | 19% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-10-01 | Minimum | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-10-01 | Maximum | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 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 | Sep. 30, 2023 | Jun. 30, 2023 |
Assets | ||
Cash equivalents: | $ 1,122,313 | $ 1,224,356 |
Short-term investments: | 1,119,456 | 1,043,110 |
Funds held for customers: | 423,576 | 846,404 |
Total assets measured at fair value | 3,799,032 | 3,827,339 |
Liabilities | ||
Contingent consideration | (5,630) | (12,035) |
Total liabilities measured at fair value | (5,630) | (12,035) |
Money market funds | ||
Assets | ||
Cash equivalents: | 1,056,800 | 1,131,621 |
Corporate bonds | ||
Assets | ||
Cash equivalents: | 50,655 | 45,301 |
Short-term investments: | 452,417 | 479,483 |
Funds held for customers: | 199,128 | 433,920 |
U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 14,858 | 44,856 |
Short-term investments: | 483,829 | 408,368 |
Funds held for customers: | 54,560 | 81,074 |
U.S. agency securities | ||
Assets | ||
Short-term investments: | 54,086 | 57,967 |
Asset-backed securities | ||
Assets | ||
Short-term investments: | 63,220 | 51,193 |
Funds held for customers: | 49,087 | 70,661 |
Certificates of deposit | ||
Assets | ||
Cash equivalents: | 2,578 | |
Certificates of deposit | ||
Assets | ||
Short-term investments: | 65,904 | 46,099 |
Funds held for customers: | 93,317 | 233,291 |
Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 1,133,687 | 713,469 |
Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 1,133,687 | 713,469 |
U.S. agency securities | ||
Assets | ||
Funds held for customers: | 27,484 | 27,458 |
Level 1 | ||
Assets | ||
Cash equivalents: | 1,056,800 | 1,176,477 |
Short-term investments: | 0 | 408,368 |
Funds held for customers: | 0 | 81,074 |
Total assets measured at fair value | 2,190,487 | 2,379,388 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Money market funds | ||
Assets | ||
Cash equivalents: | 1,056,800 | 1,131,621 |
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: | 0 | 44,856 |
Short-term investments: | 0 | 408,368 |
Funds held for customers: | 0 | 81,074 |
Level 1 | U.S. agency securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Level 1 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 1 | Certificates of deposit | ||
Assets | ||
Cash equivalents: | 0 | |
Level 1 | Certificates of deposit | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 1 | Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 1,133,687 | 713,469 |
Level 1 | Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 1,133,687 | 713,469 |
Level 1 | U.S. agency securities | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 2 | ||
Assets | ||
Cash equivalents: | 65,513 | 47,879 |
Short-term investments: | 1,119,456 | 634,742 |
Funds held for customers: | 423,576 | 765,330 |
Total assets measured at fair value | 1,608,545 | 1,447,951 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | Money market funds | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Level 2 | Corporate bonds | ||
Assets | ||
Cash equivalents: | 50,655 | 45,301 |
Short-term investments: | 452,417 | 479,483 |
Funds held for customers: | 199,128 | 433,920 |
Level 2 | U.S. treasury securities | ||
Assets | ||
Cash equivalents: | 14,858 | 0 |
Short-term investments: | 483,829 | 0 |
Funds held for customers: | 54,560 | 0 |
Level 2 | U.S. agency securities | ||
Assets | ||
Short-term investments: | 54,086 | 57,967 |
Level 2 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 63,220 | 51,193 |
Funds held for customers: | 49,087 | 70,661 |
Level 2 | Certificates of deposit | ||
Assets | ||
Cash equivalents: | 2,578 | |
Level 2 | Certificates of deposit | ||
Assets | ||
Short-term investments: | 65,904 | 46,099 |
Funds held for customers: | 93,317 | 233,291 |
Level 2 | Restricted cash equivalents: | Restricted cash equivalents: | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 2 | Restricted cash equivalents: | Restricted cash equivalents: | Money market funds | ||
Assets | ||
Funds held for customers: | 0 | 0 |
Level 2 | U.S. agency securities | ||
Assets | ||
Funds held for customers: | 27,484 | 27,458 |
Level 3 | ||
Assets | ||
Cash equivalents: | 0 | 0 |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Contingent consideration | (5,630) | (12,035) |
Total liabilities measured at fair value | (5,630) | (12,035) |
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 | 0 |
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | U.S. agency securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Level 3 | Asset-backed securities | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | Certificates of deposit | ||
Assets | ||
Cash equivalents: | 0 | |
Level 3 | Certificates of deposit | ||
Assets | ||
Short-term investments: | 0 | 0 |
Funds held for customers: | 0 | 0 |
Level 3 | 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 |
Level 3 | U.S. agency securities | ||
Assets | ||
Funds held for customers: | $ 0 | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 24, 2021 | Nov. 30, 2020 |
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 | $ 467 | ||
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 | $ 1,160 |
Short-Term Investments - Schedu
Short-Term Investments - Schedule of Short-Term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 1,122,755 | $ 1,046,830 |
Gross unrealized gains | 115 | 257 |
Gross unrealized losses | (3,414) | (3,977) |
Fair value | 1,119,456 | 1,043,110 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 454,350 | 481,658 |
Gross unrealized gains | 75 | 207 |
Gross unrealized losses | (2,008) | (2,382) |
Fair value | 452,417 | 479,483 |
U.S. treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 484,895 | 409,586 |
Gross unrealized gains | 17 | 42 |
Gross unrealized losses | (1,083) | (1,260) |
Fair value | 483,829 | 408,368 |
Asset-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 63,323 | 51,321 |
Gross unrealized gains | 17 | 8 |
Gross unrealized losses | (120) | (136) |
Fair value | 63,220 | 51,193 |
Certificates of deposit | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 65,904 | 46,099 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 65,904 | 46,099 |
U.S. agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 54,283 | 58,166 |
Gross unrealized gains | 6 | 0 |
Gross unrealized losses | (203) | (199) |
Fair value | $ 54,086 | $ 57,967 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Details) | 3 Months Ended | ||
Sep. 30, 2023 USD ($) InvestmentPosition | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | |||
Accrued interest receivable | $ 4,600,000 | $ 4,300,000 | |
Short-term investments mature within one year | 867,200,000 | 758,100,000 | |
Short-term investments mature thereafter | $ 252,300,000 | $ 285,000,000 | |
Percentage of short-term investments maturing within one year | 77% | 73% | |
Percentage of short-term investments maturing thereafter | 23% | 27% | |
Number of investments in unrealized loss positions | InvestmentPosition | 200 | ||
Number of investment positions | InvestmentPosition | 354 | ||
Debt securities, continuous unrealized loss position, less than 12 months | $ 585,100,000 | $ 506,500,000 | |
Debt securities, continuous unrealized loss position, 12 months or longer | 103,500,000 | $ 100,200,000 | |
Short-term investments realized gains or losses | $ 0 | $ 0 |
Short-Term Investments - Sche_2
Short-Term Investments - Schedule of Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | $ 688,617 | $ 606,681 |
Unrealized losses | (3,414) | (3,977) |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 292,968 | 296,562 |
Unrealized losses | (2,008) | (2,382) |
U.S. treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 298,908 | 213,726 |
Unrealized losses | (1,083) | (1,260) |
Asset-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 47,466 | 38,426 |
Unrealized losses | (120) | (136) |
U.S. agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 49,275 | 57,967 |
Unrealized losses | $ (203) | $ (199) |
Funds Held for Customers - Summ
Funds Held for Customers - Summary of Funds Held for Customers (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Funds Held For Customers [Line Items] | ||
Total funds held for customers | $ 3,270,790 | $ 3,365,783 |
Less - income earned by the Company included in other current assets | (7,262) | (9,874) |
Total funds held for customers, net of income earned by the Company | 3,263,528 | 3,355,909 |
Certificates of deposit | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 93,317 | 233,291 |
Restricted cash | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 1,701,916 | 1,793,088 |
Restricted cash equivalents: | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 1,133,687 | 713,469 |
Funds receivable | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 11,611 | 12,822 |
Corporate bonds | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 199,128 | 433,920 |
Asset-backed securities | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 49,087 | 70,661 |
U.S. agency securities | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | 27,484 | 27,458 |
U.S. treasury securities | ||
Funds Held For Customers [Line Items] | ||
Total funds held for customers | $ 54,560 | $ 81,074 |
Funds Held for Customers - Su_2
Funds Held for Customers - Summary of Fair Value of Funds Held For Customers (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Funds Held For Customers [Line Items] | ||
Amortized cost | $ 423,914 | $ 847,012 |
Gross unrealized gains | 7 | 25 |
Gross unrealized losses | (345) | (633) |
Fair value | 423,576 | 846,404 |
Certificates of deposit | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 93,316 | 233,290 |
Gross unrealized gains | 1 | 1 |
Gross unrealized losses | 0 | 0 |
Fair value | 93,317 | 233,291 |
Corporate bonds | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 199,138 | 433,936 |
Gross unrealized gains | 5 | 18 |
Gross unrealized losses | (15) | (34) |
Fair value | 199,128 | 433,920 |
Asset-backed securities | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 49,259 | 70,993 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (172) | (332) |
Fair value | 49,087 | 70,661 |
U.S. agency securities | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 27,502 | 27,484 |
Gross unrealized gains | 1 | 5 |
Gross unrealized losses | (19) | (31) |
Fair value | 27,484 | 27,458 |
U.S. treasury securities | ||
Funds Held For Customers [Line Items] | ||
Amortized cost | 54,699 | 81,309 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | (139) | (236) |
Fair value | $ 54,560 | $ 81,074 |
Funds Held for Customers - Addi
Funds Held for Customers - Additional Information (Details) | 3 Months Ended | ||
Sep. 30, 2023 USD ($) InvestmentPosition | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | |
Funds Held For Customers [Line Items] | |||
Amortized Cost | $ 423,914,000 | $ 847,012,000 | |
Fair value | $ 423,576,000 | $ 846,404,000 | |
Debt securities percentage mature within one year | 90% | 93% | |
Debt securities mature within one year | $ 382,400,000 | $ 785,300,000 | |
Debt securities percentage mature thereafter | 10% | 7% | |
Debt securities mature thereafter | $ 41,100,000 | $ 61,100,000 | |
Number of unrealized loss investment positions | InvestmentPosition | 30 | ||
Number of investment positions | InvestmentPosition | 120 | ||
Funds held for customers, continuous unrealized loss position, less than 12 months | $ 122,100,000 | 191,000,000 | |
Funds held for customers, continuous unrealized loss position, 12 months or longer | 13,500,000 | 11,500,000 | |
Significant realized gains (loss) on funds held for customers | 0 | $ 0 | |
Accrued Interest Receivable | |||
Funds Held For Customers [Line Items] | |||
Amortized Cost | 3,700,000 | 6,900,000 | |
Fair value | $ 3,700,000 | $ 6,900,000 |
Funds Held for Customers - Su_3
Funds Held for Customers - Summary of Gross Unrealized Losses And Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Funds Held For Customers [Line Items] | ||
Fair value | $ 135,627 | $ 202,573 |
Unrealized losses | (345) | (633) |
Corporate bonds | ||
Funds Held For Customers [Line Items] | ||
Fair value | 9,522 | 34,530 |
Unrealized losses | (15) | (34) |
U.S. agency securities | ||
Funds Held For Customers [Line Items] | ||
Fair value | 22,458 | 22,494 |
Unrealized losses | (19) | (31) |
Asset-backed securities | ||
Funds Held For Customers [Line Items] | ||
Fair value | 49,087 | 70,661 |
Unrealized losses | (172) | (332) |
U.S. treasury securities | ||
Funds Held For Customers [Line Items] | ||
Fair value | 54,560 | 74,888 |
Unrealized losses | $ (139) | $ (236) |
Acquired Card Receivables - Sch
Acquired Card Receivables - Schedule of Acquired Card Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Acquired Card Receivables [Abstract] | ||||
Gross amount of acquired card receivables | $ 571,340 | $ 474,148 | ||
Less: allowance for credit losses | (18,513) | (15,498) | $ (7,541) | $ (5,414) |
Total | $ 552,827 | $ 458,650 |
Acquired Card Receivables - Add
Acquired Card Receivables - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Acquired Card Receivables [Abstract] | ||
Acquired card receivable as collateral | $ 218.1 | |
Authorized transactions but not cleared | $ 36.4 | |
Grace period to payment on acquired card receivables | 5 days | |
Acquired card receivables, minimum number of past due days to accrue fees | 90 days | |
Card receivables acquired during the period | $ 4,100 | $ 2,700 |
Gross charge-off amount, prior fiscal year | 0.9 | |
Gross charge-off amount, current fiscal year | $ 8.9 |
Acquired Card Receivables - Sum
Acquired Card Receivables - Summary of Acquired Card Receivables by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 571,340 | $ 474,148 |
Current and less than 30 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 559,169 | 463,704 |
30 ~ 59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,196 | 2,507 |
60 ~ 89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,277 | 4,544 |
90 ~ 119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,883 | 3,196 |
Over 119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 815 | $ 197 |
Acquired Card Receivables - S_2
Acquired Card Receivables - Summary of Change in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance For Credit Losses [Roll Forward] | ||
Balance, beginning | $ 15,498 | $ 5,414 |
Initial allowance for credit losses on purchased card receivables with credit deterioration | 0 | 10 |
Provision for expected credit losses | 11,975 | 6,583 |
Charge-off amounts | (9,791) | (5,033) |
Recoveries collected | 831 | 567 |
Balance, end of period | $ 18,513 | $ 7,541 |
Debt and Borrowings - Schedule
Debt and Borrowings - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||||
Less: unamortized debt issuance costs | $ (18,506) | $ (20,218) | ||
Convertible senior notes, net | 1,706,494 | 1,704,782 | ||
Total | 1,841,527 | 1,839,828 | ||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowings from revolving credit facility | 135,033 | 135,046 | ||
Unamortized premium, current | 100 | |||
Unamortized debt issuance costs | 200 | 200 | ||
2027 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Non-current liabilities | 575,000 | 575,000 | ||
Total | $ 565,486 | $ 564,812 | ||
2025 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Non-current liabilities | $ 1,150,000 | $ 1,150,000 | ||
Total | $ 1,141,008 | $ 1,139,970 |
Debt and Borrowings - Additiona
Debt and Borrowings - Additional Information (Details) $ / shares in Units, shares in Millions | 3 Months Ended | ||||
Sep. 24, 2021 USD ($) $ / shares shares | Nov. 30, 2020 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) Tradingday $ / shares shares | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Amortization of debt discount and issuance costs | $ 1,761,000 | $ 1,712,000 | |||
2021 Revolving Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, effective interest rate percentage | 8.34% | ||||
2027 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, aggregate principal amount | $ 575,000,000 | $ 575,000,000 | |||
Debt stated percentage | 0% | 0% | |||
Debt instrument, maturity date | Apr. 01, 2027 | ||||
Debt issuance costs | $ 14,900,000 | ||||
Debt initial conversion rate | 0.0024108 | ||||
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 | ||||
Debt instrument denomination of principal amount for conversion into common stock | $ 1,000 | ||||
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% | ||||
Debt conversion rate in make whole | 1.2656 | ||||
Debt conversion price per share in make whole | $ / shares | $ 272 | ||||
Debt default threshold principal amount percentage | 100% | ||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 560,100,000 | ||||
Debt instrument, effective interest rate percentage | 0.48% | ||||
Cost of capped call | $ 125,800,000 | ||||
Capped call, initial strike price (dollars per share) | $ / shares | $ 414.80 | ||||
Capped call, initial cap price (dollars per share) | $ / shares | $ 544 | ||||
Cap calls cover subject to anti-dilution adjustments to common stock (in shares) | shares | 8.5 | ||||
Principal | $ 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 | |||
Debt stated percentage | 0% | 0% | |||
Debt instrument, maturity date | Dec. 01, 2025 | ||||
Debt issuance costs | $ 20,600,000 | ||||
Debt initial conversion rate | 0.0062159 | ||||
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 | ||||
Debt instrument denomination of principal amount for conversion into common stock | $ 1,000 | $ 1,000 | |||
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% | ||||
Debt conversion rate in make whole | 2.9525 | ||||
Debt conversion price per share in make whole | $ / shares | $ 109.07 | ||||
Debt default threshold principal amount percentage | 100% | ||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | $ 1,130,000,000 | ||||
Debt instrument, effective interest rate percentage | 0.36% | ||||
Cost of capped call | $ 125,800,000 | ||||
Capped call, initial strike price (dollars per share) | $ / shares | $ 160.88 | ||||
Capped call, initial cap price (dollars per share) | $ / shares | $ 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 | |||
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 | |||
Debt instrument, weighted average remaining term | 2 years 7 months 6 days | ||||
Principal | $ 1,700,000,000 |
Debt and Borrowings - Schedul_2
Debt and Borrowings - Schedule of Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||||
Total | $ 1,841,527 | $ 1,839,828 | ||
2027 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 575,000 | $ 575,000 | ||
Less: unamortized issuance costs | (9,514) | (10,188) | ||
Total | 565,486 | 564,812 | ||
2025 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | 1,150,000 | 1,150,000 | ||
Less: unamortized issuance costs | (8,992) | (10,030) | ||
Total | $ 1,141,008 | $ 1,139,970 |
Debt and Borrowings - Revolving
Debt and Borrowings - Revolving Credit Facility- Additional Information (Details) - 2021 Revolving Credit Agreement - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2022 | Sep. 30, 2023 | Aug. 01, 2022 | |
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 | 7 months 6 days | ||
Utilization Period Two | |||
Debt Instrument [Line Items] | |||
Line of credit facility, minimum utilization | $ 135,000 | ||
Line of credit, minimum utilization percentage | 60% | ||
Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument floor rate | 0.25% | ||
Variable Rate Component One | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 2.75% | ||
Variable Rate Component Two | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 2.65% | ||
Variable Rate Component Three | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis spread on variable rate | 2.65% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock-Based Compensation By Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 67,470 | $ 74,828 |
RSUs | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 54,864 | 55,670 |
Stock options | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 3,707 | 11,793 |
Performance-based awards | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 5,063 | 3,291 |
Employee stock purchase plan | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 2,766 | 2,821 |
Market-based RSUs | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 1,070 | $ 1,254 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Based Compensation from Stock Options, RSUs and ESPP (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total amount charged to loss from operations | $ 65,147 | $ 72,620 |
Property and equipment (capitalized internal-use software) | 2,323 | 2,209 |
Total stock-based compensation | 67,470 | 74,828 |
Revenue - subscription and transaction fees | Subscription and transaction fees | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total amount charged to loss from operations | 370 | 0 |
Cost of revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total amount charged to loss from operations | 2,547 | 2,001 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total amount charged to loss from operations | 27,365 | 20,851 |
Sales and marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total amount charged to loss from operations | 13,885 | 29,258 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total amount charged to loss from operations | $ 20,980 | $ 20,510 |
Stockholder's Equity - Unamorti
Stockholder's Equity - Unamortized Stock-based Compensation Expense (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 672,700 |
RSUs | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 622,831 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 2 months 12 days |
Performance-based awards | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 24,240 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 3 months 18 days |
Market-based RSUs | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 11,114 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 4 months 24 days |
Stock options | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 11,069 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 2 months 12 days |
Employee stock purchase plan | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 3,446 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 7 months 6 days |
Stockholder's Equity - Restrict
Stockholder's Equity - Restricted Stock Units (RSUs) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 672,700 |
RSUs | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 622,831 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 2 months 12 days |
Performance-based awards | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 24,240 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 3 months 18 days |
Market-based RSUs | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 11,114 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 4 months 24 days |
Stock options | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 11,069 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 2 months 12 days |
Employee stock purchase plan | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |
Unamortized stock-based compensation expense | $ 3,446 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 7 months 6 days |
Stockholder's Equity - Share Re
Stockholder's Equity - Share Repurchase Program (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2023 | Jan. 31, 2023 | |
Equity [Abstract] | |||
Share repurchase program, authorized amount | $ 300,000 | ||
Stock repurchase program term | 12 months | ||
Treasury stock, acquired (in shares) | 159,979 | ||
Treasury stock, retired (in shares) | 159,979 | ||
Treasury stock, value (in dollars) | $ 16,100 | ||
Remaining authorized repurchase amount | $ 196,300 |
Other Income, Net - Schedule of
Other Income, Net - Schedule of Other Income (Expenses), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income, Nonoperating [Abstract] | ||
Interest expense | $ (4,738) | $ (2,849) |
Lower of cost or market adjustment on card receivables sold and held for sale | 0 | (1,545) |
Interest income | 34,353 | 11,464 |
Other | (307) | (1,123) |
Total other income, net | $ 29,308 | $ 5,947 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Provision for (benefit from) income taxes | $ 522 | $ (107) |
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 | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||
Net loss attributable to common stockholders | $ (27,861) | $ (81,640) |
Denominator: | ||
Weighted-average number of shares outstanding, diluted (in shares) | 106,817 | 105,086 |
Weighted-average number of shares outstanding, basic (in shares) | 106,817 | 105,086 |
Net loss per share attributable to common stockholders: | ||
Net loss per share, basic (dollars per share) | $ (0.26) | $ (0.78) |
Net loss per share, diluted (dollars per share) | $ (0.26) | $ (0.78) |
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 | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 8,507 | 8,402 |
RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 5,619 | 4,904 |
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 | 2,363 | 3,498 |
Performance-based awards | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 228 | 0 |
Employee stock purchase plan | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 182 | 0 |
Market-based RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 115 | 0 |
Net Loss Per Share Attributab_5
Net Loss Per Share Attributable To Common Stockholders - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Number of shares not considered in calculation of diluted net loss per share | 8,507 | 8,402 |
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 |