Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Components of Loss before (Benefit from) Provision for Income Taxes

The components of loss before (benefit from) provision for income taxes were as follows during the periods presented (in thousands):

	Year ended June 30,
	2022		2021		2020
Domestic	$	(304,508)	$	(139,337)	$	(31,038)
Foreign	(26,171)		—		—
Total	$	(330,679)	$	(139,337)	$	(31,038)

Components of (Benefit from) Provision for Income Taxes

The components of (benefit from) provision for income taxes were as follows during the periods presented (in thousands):

	Year ended June 30,
	2022		2021		2020
Current:
Federal	$	(247)	$	—	$	—
State	—		—		53
Foreign	—		—		—
Total current	(247)		—		53
Deferred:	—		—		—
Federal	(1,115)		(27,529)		—
State	(2,956)		(13,088)		—
Foreign	—		—		—
Total deferred	(4,071)		(40,617)		—
(Benefit from) provision for income taxes	$	(4,318)	$	(40,617)	$	53

Difference between Income Taxes Computed At Federal Statutory Rate and (Benefit from) Provision for Income Taxes

The items accounting for the difference between the income taxes computed at the federal statutory rate and the (benefit from) provision for income taxes consisted of the following during the periods presented (in thousands):

	Year ended June 30,
	2022		2021		2020
Expected benefit at U.S. federal statutory rate	$	(69,443)	$	(29,261)	$	(6,518)
State income taxes, net of federal benefit	13,509		(54)		—
Stock-based compensation	(93,705)		(70,262)		(31,047)
Research and development tax credits	(22,061)		(8,846)		(6,411)
Change in valuation allowance related to acquisition (1)	(2,831)		(34,749)		—
Change in valuation allowance (2)	174,477		94,244		43,716
Unrecognized tax benefit	(10,975)		6,766		—
Acquisition-related costs	553		1,484		—
Foreign rate differential	5,496		—		—
Other	662		61		313
(Benefit from) provision for income taxes	$	(4,318)	$	(40,617)	$	53

(1) The rate impact during the years ended June 30, 2022 and 2021 pertains to the income tax benefit recorded as a result of the acquisitions of Invoice2go of Divvy, which allowed the Company to release a portion of its valuation allowance due to the net deferred tax liabilities that were recorded as a result of such acquisitions.

(2) The rate impact during the year ended June 30, 2022 and 2021 pertains to (i) an increase in valuation allowance due to the increase in deferred tax assets associated with losses and tax credits generated during the year, (ii) a change in deferred tax liability related to the 2025 Notes, and (iii) a change in deferred tax liability related to the acquisitions of Invoice2go and Divvy.

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows as of the dates presented (in thousands):

	June 30,
	2022		2021
Deferred tax assets:
Accruals and reserves	$	9,325	$	8,677
Deferred revenue	1,794		1,109
Stock-based compensation	25,897		16,626
Net operating loss carryforwards	410,849		218,783
Research and development credits	46,013		15,864
Accrued rewards	2,867		1,342
Operating lease liabilities	24,203		25,122
Other	3,247		514
Total deferred tax assets before valuation allowance	524,195		288,037
Valuation allowance	(384,158)		(107,836)
Deferred tax assets	$	140,037	$	180,201
Deferred tax liabilities:
Deferred contract costs	$	(3,745)	$	(2,763)
Property and equipment	(19,316)		(3,133)
Intangible assets	(99,483)		(107,631)
Operating right of use assets	(19,490)		(18,551)
Convertible notes	—		(57,213)
Total deferred tax liabilities	$	(142,034)	$	(189,291)
Net deferred tax liabilities	$	(1,997)	$	(9,090)

Reconciliation of Unrecognized Tax Benefits

Below is the reconciliation of the unrecognized tax benefits related to federal and California R&D credits during the periods presented (in thousands):

	Year e ded June 30,
	2022		2021		2020
Balance at the beginning of the year	$	22,185	$	5,787	$	2,692
Add:
Tax positions related to the current year	7,354		8,267		3,078
Increase from business combination	160		668		—
Tax positions related to the prior year	—		7,463		17
Less:
Tax positions related to the prior year	(12,761)		—		—
Statute of limitations lapse	(214)		—		—
Balance at the end of the year	$	16,724	$	22,185	$	5,787