Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Taxes

Schedule of income tax expense

	Year ended June 30,
	2018		2019		2020
Current taxes
U.S. federal	$	294	$	—	$	—
State and local		364		90		(92)
Deferred taxes:
U.S. federal		(15,167)		5,449		403
State and local		(7,338)		(1,316)		2,352
Total income tax expense (benefit)	$	(21,847)	$	4,223	$	2,663

Schedule of tax rate reconciliation by applying the U.S. federal income tax rate to pretax income (loss)

	Year ended June 30,
	2018			2019			2020
Income tax expense (benefit) at statutory federal rate		27.6	%		21.0	%		21.0	%
Increase (reduction) in income taxes resulting from:
Research and development and other credits		(6.6)			(3.0)			(3.2)
Non-deductible expenses		4.6			1.3			1.6
Change in valuation allowance		(136.0)			0.3			5.2
Effect of Tax Cuts and Jobs Act		51.5			—			—
Stock-based compensation expense		(58.3)			(10.4)			(18.3)
State and local income taxes, net of federal income tax benefit		(13.5)			(2.0)			(1.8)
Other		0.3			0.1			(0.5)
		(130.4)	%		7.3	%		4.0	%

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities

	Year ended June 30,
	2019		2020
Deferred tax assets:
Deferred rent	$	1,963	$	—
Operating lease liability		—		21,041
Accrued expenses		4,344		9,915
Stock-based compensation		10,373		13,351
Net operating loss carryforwards		9,980		13,596
Federal and state tax credits		11,977		16,714
Intangible assets		385		—
Total deferred tax assets		39,022		74,617
Valuation allowance		(502)		(3,967)
Net deferred tax assets		38,520		70,650
Deferred tax liabilities:
Deferred contract costs		(27,116)		(41,229)
Operating lease right-of-use assets		—		(12,607)
Research and development costs		(6,294)		(8,563)
Intangible assets		—		(781)
Depreciation		(5,581)		(11,269)
Total deferred tax liabilities		(38,991)		(74,449)
Net deferred tax asset (liability)	$	(471)	$	(3,799)