Investments

3 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

We have equity investments in privately and publicly held companies that are unconsolidated entities. The following discusses our investments in marketable equity securities, non-marketable equity securities, and investments accounted for under the equity method.

Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets. Marketable equity securities are recorded in prepaid expenses and other current assets on the condensed consolidated balance sheets.

Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values and are recorded in prepaid taxes and other non-current assets on the condensed consolidated balance sheets. Non-marketable equity securities are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. We assess non-marketable equity securities at least quarterly for impairment and consider qualitative and quantitative factors including the investee's financial metrics, product and commercial outlook and cash usage. All gains and losses on marketable and non-marketable equity securities, realized and unrealized, are recognized in gain (loss) on equity investments as a component of other income (loss), net on the condensed consolidated statements of operations.

Equity investments whereby we have significant influence, but not control over the investee and are not the primary beneficiary of the investee’s activities, are accounted for under the equity method. Under this method, we record our share of gains or losses attributable to equity method investments as a component of other income (loss), net on the condensed consolidated statements of operations.

Equity investments by measurement category were as follows (in thousands):


Measurement category	September 30, 2022		June 30, 2022
Fair value	$	5,887	$	9,167
Measurement alternative	43,581		39,290
Equity method	7,890		9,918
Total	$	57,358	$	58,375

The following tables show a reconciliation of the changes in our equity investments (in thousands):


	Three Months Ended September 30, 2022
	Non-marketable securities		Marketable securities		Equity method investments		Total
Balance at the beginning of the period	$	39,290	$	9,167	$	9,918	$	58,375
Additions to investments	4,291		—		—		4,291

Unrealized losses on marketable equity securities	—		(3,280)		—		(3,280)


Loss attributable to equity method investments	—		—		(2,028)		(2,028)
Carrying value at the end of the period	$	43,581	$	5,887	$	7,890	$	57,358


	Three Months Ended September 30, 2021
	Non-marketable securities		Marketable securities		Equity method investments		Total
Balance at the beginning of the period	$	23,002	$	29,084	$	17,154	$	69,240
Additions to investments	3,000		3,600		—		6,600
Observable price adjustments on non-marketable equity securities	5,367		—		—		5,367
Unrealized gains on marketable equity securities	—		454		—		454
Impairment of investments	(209)		—		—		(209)
Loss attributable to equity method investments	—		—		(1,386)		(1,386)
Carrying value at the end of the period	$	31,160	$	33,138	$	15,768	$	80,066

Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of September 30, 2022 for the three months ended September 30, 2022 were $3.3 million. Net unrealized gains recognized for equity investments in non-marketable and marketable securities held as of September 30, 2021 for the three months ended September 30, 2021 were $5.6 million.