Balance Sheet Components

12 Months Ended

Jun. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Property, Equipment and Software, net

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


	June 30, 2023		June 30, 2022
Internally developed software	$	377,301	$	200,621
Leasehold improvements	20,214		16,169
Computer equipment	10,187		10,751
Furniture and equipment	6,503		4,279
Total property, equipment and software, at cost	$	414,205	$	231,820
Less: Accumulated depreciation and amortization	(124,070)		(60,338)
Total property, equipment and software, net	$	290,135	$	171,482

Depreciation and amortization expense on property, equipment and software was $82.1 million, $29.2 million and $15.4 million for the years ended June 30, 2023, 2022, and 2021, respectively.

No impairment losses related to property, equipment and software were recorded during the years ended June 30, 2023 and 2022. For the year ended June 30, 2021, we recorded impairment expense of $1.5 million related to property, equipment and software.

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill during the years ended June 30, 2023 and 2022 were as follows (in thousands):


Balance as of June 30, 2021	$	516,515
Additions (1)	33,318
Adjustments (2)	(10,299)
Balance as of June 30, 2022	$	539,534
Additions (1)	9,443
Adjustments (2)	(6,406)
Balance as of June 30, 2023	$	542,571

(1)Refer to Note 5. Acquisitions for a description of additions to goodwill during the years ended June 30, 2023 and 2022.

(2)Adjustments to goodwill during the years ended June 30, 2023 and 2022 primarily pertained to foreign currency translation adjustments.

No impairment losses related to goodwill were recorded during the years ended June 30, 2023, 2022, and 2021.

Intangible assets consisted of the following (in thousands):


	June 30, 2023
	Gross		Accumulated Amortization		Net		Weighted Average Remaining Useful Life (in years)
Merchant relationships	$	38,129	$	(27,637)	$	10,492	0.6
Developed technology	39,626		(30,653)		8,973		0.6
Assembled workforce	12,490		(9,983)		2,507		0.3
Trademarks and domains, definite	1,481		(990)		491		1.7
Trademarks, licenses and domains, indefinite	11,621		—		11,621		Indefinite
Other intangibles	350		—		350		Indefinite
Total intangible assets	$	103,697	$	(69,263)	$	34,434


	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

Amortization expense for intangible assets was $52.5 million, $23.5 million and $4.6 million for the years ended June 30, 2023, 2022 and 2021, respectively. No impairment losses related to intangible assets were recorded during the years ended June 30, 2023, 2022, and 2021.

The expected future amortization expense of these intangible assets as of June 30, 2023 is as follows (in thousands):


2024	$	20,895
2025	1,396
2026	157
2027	15
2028 and thereafter	—
Total amortization expense	$	22,463

Commercial Agreement Assets

During the year ended June 30, 2022, we granted warrants in connection with our commercial agreements with certain subsidiaries of Amazon.com, Inc. (“Amazon”). The warrants were granted in exchange for certain performance provisions and the benefit of acquiring new users. We recognized an asset of $133.5 million associated with the portion of the warrants that were fully vested upon grant. The asset was valued based on the fair value of the warrants and represents the probable future economic benefit to be realized over the approximate 3.2 year term of the commercial agreement at the grant date. For the years ended June 30, 2023 and 2022, we recognized amortization expense of $41.4 million and $26.3 million, respectively, in our consolidated statements of operations and comprehensive loss as a component of sales and marketing expense. Refer to Note 14. 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, 2023. 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 fiscal year 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 $35.8 million, $62.2 million, and $64.9 million for the years ended June 30, 2023, 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 $8.3 million, $8.1 million, and $4.3 million for the years ended June 30, 2023, 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, 2023		June 30, 2022
Processing reserves	$	60,039	$	26,483
Derivative instruments	50,545		49,983
Equity securities, at cost	43,172		43,172
Prepaid expenses	35,626		37,497
Operating lease right-of-use assets	30,171		50,671
Other assets	59,061		73,761
Total other assets	$	278,614	$	281,567

Accrued Expenses and Other Liabilities

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


	June 30, 2023		June 30, 2022
Collateral held for derivative instruments	$	53,267	$	55,779
Operating lease liability	52,557		65,713
Accrued expenses	50,704		67,343

Other liabilities	24,355		48,763
Total accrued expenses and other liabilities	$	180,883	$	237,598