Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

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

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

	Year ended June 30,
	2024		2023		2022
Domestic	$	5,312	$	(199,452)	$	(304,508)
Foreign	(31,631)		(23,465)		(26,171)
Total	$	(26,319)	$	(222,917)	$	(330,679)

Components of (Benefit from) Provision for Income Taxes

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

	Year ended June 30,
	2024		2023		2022
Current:
Federal	$	1,650	$	572	$	(247)
State	1,251		1,583		—
Foreign	19		14		—
Total current	2,920		2,169		(247)
Deferred:
Federal	(262)		(995)		(1,115)
State	(99)		(366)		(2,956)
Total deferred	(361)		(1,361)		(4,071)
Provision for (benefit from) income taxes	$	2,559	$	808	$	(4,318)

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 provision for (benefit from) income taxes consisted of the following during the periods presented (in thousands):

	Year ended June 30,
	2024		2023		2022
Expected benefit at U.S. federal statutory rate	$	(5,528)	$	(46,813)	$	(69,443)
State income taxes, net of federal benefit	9,134		8,087		13,509
Stock-based compensation (1)	24,300		4,253		(93,705)
Research and development tax credits	(24,039)		(19,974)		(22,061)
Change in valuation allowance related to acquisition (2)	—		(126)		(2,831)
Change in valuation allowance (3)	4,943		48,321		174,477
Restructuring	(13,769)		—		—
Unrecognized tax benefit	(628)		(390)		(10,975)
Acquisition-related costs	—		—		553
Foreign rate differential	6,658		4,942		5,496
Other	1,488		2,508		662
Provision for (benefit from) income taxes	$	2,559	$	808	$	(4,318)

(1) The rate impact during the year ended June 30, 2024 and 2023 relates to the impact of non-deductible stock compensation and shortfalls related to tax deductions being smaller than the associated stock compensation expense. The rate impact during the years ended June 30, 2022 pertains to windfalls from tax deductions being larger than the associated stock compensation expense.

(2) The rate impact during the year ended June 30, 2022 pertains to the income tax benefit recorded as a result of the acquisition of Invoice2go, 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 acquisition.

(3) The rate impact during the year ended June 30, 2024, 2023 and 2022 pertains to (i) an increase in valuation allowance due to the increase in deferred tax assets associated with losses, capitalized R&D expense and tax credits generated during the year and (ii) a change in deferred tax liability related to the acquisitions of Invoice2go.

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,
	2024		2023
Deferred tax assets:
Accruals and reserves	$	13,966	$	12,537
Capitalized research and development	120,882		75,694
Deferred revenue	1,084		1,084
Stock-based compensation	17,093		24,998
Net operating loss carryforwards	360,592		379,758
Research and development credits	85,910		62,299
Accrued rewards	40		1,855
Operating lease liabilities	19,139		21,616
Other	598		1,257
Total deferred tax assets before valuation allowance	619,304		581,098
Valuation allowance	(494,424)		(479,449)
Deferred tax assets	$	124,880	$	101,649
Deferred tax liabilities:
Deferred contract costs	$	(5,868)	$	(4,772)
Property and equipment	(15,853)		(13,078)
Intangible assets	(68,218)		(67,455)
Operating right of use assets	(14,992)		(17,155)
Other reserve	(20,399)		—
Total deferred tax liabilities	(125,330)		(102,460)
Net deferred tax liabilities	$	(450)	$	(811)

Reconciliation of Unrecognized Tax Benefits

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

	Year e ded June 30,
	2024		2023		2022
Balance at the beginning of the year	$	23,300	$	16,724	$	22,185
Add:
Tax positions related to the current year	9,134		6,642		7,354
Increase from business combination	—		—		160
Tax positions related to the prior year	2,714		226		—
Less:
Tax positions related to the prior year	—		—		(12,761)
Statute of limitations lapse	(20)		(292)		(214)
Balance at the end of the year	$	35,128	$	23,300	$	16,724