Balance Sheet Components

12 Months Ended

Jun. 30, 2022

Balance Sheet Related Disclosures [Abstract]

Property, Equipment and Software, net

Property, equipment and software, net consisted of the following (in thousands):


	June 30, 2022		June 30, 2021
Internally developed software	$	200,621	$	68,197
Leasehold improvements	16,169		15,212
Computer equipment	10,751		6,707
Furniture and equipment	4,279		5,284
Total Property, equipment and software, at cost	$	231,820	$	95,400
Less: Accumulated depreciation and amortization	(60,338)		(32,901)
Total Property, equipment and software, net	$	171,482	$	62,499

Depreciation and amortization expense on property, equipment and software was $29.2 million, $15.4 million and $9.4 million for the years ended June 30, 2022, 2021, and 2020, respectively. Depreciation expense on leasehold improvements, furniture and equipment, and computer equipment is allocated between general and administrative, technology and data analytics, sales and marketing, and processing and servicing based on employee headcount in the consolidated statements of operations and comprehensive loss. Amortization expense on internally developed software is included as a component of technology and data analytics in the consolidated statements of operations and comprehensive loss.

For the year ended June 30, 2021, we recorded impairment expense of $1.5 million related to leasehold improvements. No impairment losses related to leasehold improvements were noted during both the years ended June 30, 2022 and 2020. No impairment losses related to property, equipment and software were recorded during the years ended June 30, 2022, 2021, and 2020.

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill during the years ended June 30, 2022 and 2021 were as follows (in thousands):


Balance as of June 30, 2020	$	1,255
Additions	508,581
Effect of foreign currency translation	6,679
Balance as of June 30, 2021	$	516,515
Additions	33,318
Effect of foreign currency translation	(10,299)
Balance as of June 30, 2022	$	539,534

Refer to Note 5. Acquisitions for a description of additions to goodwill during the years ended June 30, 2022 and 2021. No impairment losses related to goodwill were recorded during the years ended June 30, 2022, 2021, and 2020.

Intangible assets consisted of the following (in thousands):


	June 30, 2022
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)
Merchant relationships	$	38,371	$	(10,281)	$	28,090	3.6
Developed technology	39,782		(15,882)		23,900		1.9
Assembled workforce	12,490		(1,664)		10,826		1.3
Trademarks and domains, definite	1,507		(802)		705		2.4
Trademarks and domains, indefinite	2,146		—		2,146		Indefinite
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	94,646	$	(28,629)	$	66,017

In connection with the Fast asset acquisition, we also recorded a $12.9 million intangible asset representing the option to purchase developed technology as of June 30, 2022. The asset will not be amortized until the purchase is complete and the asset is placed into service. Refer to Note 5. Acquisitions for a description of the acquisition and assets acquired.


	June 30, 2021
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)
Merchant relationships	$	38,951	$	(2,192)	$	36,759	4.5
Developed technology	30,176		(2,930)		27,246		2.8
Trademarks and domains (1)	3,769		(194)		3,575		3.3
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	73,246	$	(5,316)	$	67,930

(1)As of June 30, 2021, trademarks and domains included both definite and indefinite intangible assets.

Amortization expense for intangible assets was $23.5 million, $4.6 million and nil for the years ended June 30, 2022, 2021 and 2020, respectively. No impairment losses related to intangible assets were recorded during the years ended June 30, 2022, 2021, and 2020.

The expected future amortization expense of these intangible assets as of June 30, 2022 is as follows (in thousands):


2023	$	29,595
2024	21,686
2025	7,232
2026	4,993
2027 and thereafter	15
Total amortization expense	$	63,521

Commercial Agreement Assets

During the year ended June 30, 2022, we entered into a commercial agreement with Amazon.com Services LLC and Amazon Payments, Inc. ("Amazon") and granted warrants in exchange for certain exclusivity and performance provisions and the benefit of acquiring new users. In connection with the agreements, we recognized an asset of $133.5 million associated with the portion of the warrants that were fully vested upon execution of the agreement. The asset was valued based on the fair value of the warrants on the grant date and represents the probable future economic benefit to be realized over the approximately 3.2 year remaining initial term of the commercial agreement. For the year ended June 30, 2022, we recognized amortization expense of $26.3 million in our consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. Refer to Note 15. Redeemable Convertible Preferred Stock and Stockholders’ Equity for further discussion of the warrants.

During the year ended June 30, 2021, we recognized an asset in connection with a commercial agreement with Shopify Inc. (“Shopify”), in which we granted warrants in exchange for the opportunity to acquire new merchant partners. This asset represents the probable future economic benefit to be realized over the expected benefit period and is valued based on the fair value of the warrants on the grant date. We recognized an asset of $270.6 million associated with the fair value of the warrants, which were fully vested as of June 30, 2021. The expected benefit period of the asset was initially estimated to be four years, and the remaining useful life of the asset is reevaluated each reporting period. During the year ended June 30, 2022, the remaining expected benefit period was extended by two years upon the execution of an amendment to the commercial agreement with Shopify which extended the term of the agreement. We recorded amortization expense related to the commercial agreement asset of

$62.2 million and $64.9 million for the years ended June 30, 2022, and 2021, respectively, in our consolidated statements of operations and comprehensive loss as a component of sales and marketing expense.

During the year ended June 30, 2021, we recognized an asset in connection with a commercial agreement with an enterprise partner, in which we granted stock appreciation rights in exchange for the benefit of acquiring access to the partner's consumers. This asset represents the probable future economic benefit to be realized over the three-year expected benefit period and is valued based on the fair value of the stock appreciation rights on the grant date. We initially recognized an asset of $25.9 million associated with the fair value of the stock appreciation rights. We recorded amortization expense related to the asset of $8.1 million, and $4.3 million for the years ended June 30, 2022, and 2021, respectively, in our consolidated statements of operations and comprehensive loss as a component of sales and marketing expense.

Other Assets

Other assets consisted of the following (in thousands):


	June 30, 2022		June 30, 2021
Operating lease right-of-use assets	$	50,671	$	57,828
Derivative instruments	49,983		2,880
Equity securities, at cost	43,172		11,278
Prepaid expenses	37,497		21,069
Prepaid payroll taxes for stock-based compensation	35,172		111,278
Processing reserves	26,483		14,042
Other receivables	17,221		26,423
Other assets	21,368		29,881
Total other assets	$	281,567	$	274,679

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands)


	June 30, 2022		June 30, 2021
Accrued expenses	$	67,343	$	47,674
Operating lease liability	65,713		74,952
Collateral held for derivative instruments	55,779		—
Contingent consideration liability	23,348		153,447
Commercial agreement liability	—		25,357
Other liabilities	25,415		22,147
Total accrued expenses and other liabilities	$	237,598	$	323,577

Our acquisition of PayBright included consideration transferred and shares held in escrow, contingent upon the achievement of future milestones. We classified the contingent consideration as a liability and we will continue to remeasure the liability to its fair value at each reporting date until the contingency is resolved. As of June 30, 2022, the fair value of the contingent consideration liability was $23.3 million. For further details on our fair value methodology with respect to the contingent consideration, see Note 14. Fair Value of Financial Assets and Liabilities.

During the year ended June 30, 2021, we recognized a liability in connection with a commercial agreement with an enterprise partner of $25.9 million. As of June 30, 2022, we have fully settled this liability.