Investments

9 Months Ended

Mar. 31, 2023

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	March 31, 2023		June 30, 2022
Fair value	$	12,115	$	9,167
Measurement alternative	70,640		39,290
Equity method	67,697		9,918
Total	$	150,452	$	58,375

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


	Nine Months Ended March 31, 2023
	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 (1)	21,738		4,991		60,233		86,962
Observable price adjustments on non-marketable equity securities	12,612		—		—		12,612
Unrealized losses on marketable equity securities	—		(2,043)		—		(2,043)
Realized gains on marketable and non-marketable equity securities	3,937		—		—		3,937
Proceeds from exits of investments	(3,937)		—		—		(3,937)
Impairment of investments	(3,000)		—		—		(3,000)
Loss attributable to equity method investments	—		—		(5,037)		(5,037)
Foreign currency translation adjustments	—		—		2,583		2,583
Carrying value at the end of the period	$	70,640	$	12,115	$	67,697	$	150,452

(1)Includes additions from purchases and an equity method investment acquired and measured at fair value via our acquisition of MEDIFOX DAN. Refer to Note 12 herein.


	Nine Months Ended March 31, 2022
	Non-marketable securities		Marketable securities		Equity method investments		Total
Balance at the beginning of the period	$	23,002	$	29,084	$	17,154	$	69,240
Net additions (reductions) to investments (2)	7,665		(3,202)		1,250		5,713
Observable price adjustments on non-marketable equity securities	5,367		—		—		5,367
Unrealized losses on marketable equity securities	—		(9,666)		—		(9,666)
Realized gains on marketable and non-marketable equity securities	2,355		1,626		—		3,981
Impairment of investments	(209)		—		—		(209)
Loss attributable to equity method investments	—		—		(5,927)		(5,927)
Carrying value at the end of the period	$	38,180	$	17,842	$	12,477	$	68,499

(2)Includes additions from purchases, reductions due to exits of securities, or reclassifications due to our acquisition of an investee in which we held a prior equity interest.

Net unrealized gains recognized for equity investments in non-marketable and marketable securities held as of March 31, 2023 for the three and nine months ended March 31, 2023 were $2.5 million and $7.6 million. Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of March 31, 2022 for the three and nine months ended March 31, 2022 were $1.7 million and $4.5 million.