Investments

3 Months Ended

Sep. 30, 2024

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, 2024		June 30, 2024
Fair value	$	16,216	$	12,026
Measurement alternative	65,784		73,739
Equity method	69,287		65,462
Total	$	151,287	$	151,227

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


	Three Months Ended September 30, 2024
	Non-marketable securities		Marketable securities		Equity method investments		Total
Balance at the beginning of the period	$	73,739	$	12,026	$	65,462	$	151,227
Additions to investments	1,000		—		350		1,350

Proceeds from exits of investments	(4,128)		—		—		(4,128)
Realized gains on marketable and non-marketable equity securities	389		—		—		389
Impairment of investments	(5,259)		—		—		(5,259)
Unrealized gains on marketable equity securities	—		4,190		—		4,190
Gain attributable to equity method investments	—		—		963		963
Foreign currency translation adjustments	43		—		2,512		2,555
Carrying value at the end of the period	$	65,784	$	16,216	$	69,287	$	151,287


	Three Months Ended September 30, 2023
	Non-marketable securities		Marketable securities		Equity method investments		Total
Balance at the beginning of the period	$	68,748	$	12,423	$	65,366	$	146,537
Additions to investments	1,180		—		2,500		3,680


Proceeds from exits of investments	(250)		—		—		(250)

Unrealized losses on marketable equity securities	—		(602)		—		(602)
Loss attributable to equity method investments	—		—		(3,895)		(3,895)
Foreign currency translation adjustments	—		—		(1,810)		(1,810)
Carrying value at the end of the period	$	69,678	$	11,821	$	62,161	$	143,660

Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of September 30, 2024 for the three months ended September 30, 2024 were $1.1 million. Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of September 30, 2023 for the three months ended September 30, 2023 were $0.6 million.