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Equity-Based Compensation (Tables) | 9 Months Ended
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Mar. 31, 2022
Share-based Payment Arrangement [Abstract] |
Schedule of Stock Option Activity | The following summary sets forth the stock option activity under the 2019 Plan:
| Options Outstanding
| Number of Stock Options |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value (in millions)
Outstanding — June 30, 2021 | 57,946,608 |  |  | $ | 18.47 |  |  | 7.3 |  | $ | 6,119.2 |
Granted | 18,290,794 |  |  | $ | 45.86 |  |  |  |  |
Exercised | (8,068,769) |  |  | $ | 6.11 |  |  |  |  | $ | 369.5 |
Forfeited | (4,286,726) |  |  | $ | 45.74 |  |  |  |  |
Outstanding — March 31, 2022 | 63,881,907 |  |  | $ | 26.04 |  |  | 7.0 |  | $ | 643.3 |
Vested and Exercisable— March 31, 2022 | 34,799,942 |  |  | $ | 14.31 |  |  | 5.3 |  | $ | 557.6 |
Unvested option activity is as follows:
| Options |  | Weighted-Average Grant Date Fair Value
Unvested - June 30, 2021 | 28,160,034 |  |  | $ | 13.52 |
Granted | 18,290,794 |  |  | $ | 23.07 |
Early exercised unvested | (13,501) |  |  | $ | 2.02 |
Vested | (13,122,980) |  |  | $ | 11.06 |
Forfeited or expired | (4,232,382) |  |  | $ | 20.61 |
Unvested - March 31, 2022 | 29,081,965 |  |  | $ | 19.61 |
Schedule of Fair Value Assumptions | The fair value of each option was estimated at the grant date using the Black-Scholes method with the following assumptions:
| Nine Months Ended March 31, 2022
Weighted average risk-free interest rate(1) | 1.6%
Weighted average expected term (in years) | 6.0
Weighted average expected volatility(2) | 54.8%
Expected dividend yield | —
____________________________ (1) Based on U.S. Treasury yield curve in effect at the time of grant. (2) Expected volatility is based on a blended average of average historical stock volatilities of several peer companies over the expected term of the stock options, historical volatility of the Company's stock price, and implied stock price volatility derived from the price of exchange traded options on the Company's stock.
Schedule of Restricted Stock and Restricted Stock Units | The following table summarizes the activity related to the Company's restricted stock and restricted stock units:
| Restricted Stock Units Outstanding
| Number of Awards |  | Weighted-Average Grant Date Fair Value
Outstanding — June 30, 2021 | 1,785,946 |  |  | $ | 99.43 |
Granted | 10,095,959 |  |  | $ | 46.07 |
Vested and converted to shares | (995,317) |  |  | $ | 98.62 |
Cancelled | (1,083,529) |  |  | $ | 85.40 |
Outstanding — March 31, 2022 | 9,803,059 |  |  | $ | 46.10 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The Black-Scholes option pricing model assumptions used to calculate the fair value of shares estimated to be purchased at the commencement of the ESPP offering periods were as follows:
| Nine Months Ended March 31, 2022
Weighted average risk-free interest rate | 0.2%
Weighted average expected term (in years) | 1.2
Weighted average expected volatility | 71.6%
Expected dividend yield | —
Schedule of Stock-Based Compensation Expense | The Company's total stock-based compensation expense was as follows:
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (in millions)
Cost of revenue |  |  |  |  |  |  |
Connected Fitness Products | $ | 5.7 |  |  | $ | 3.3 |  |  | $ | 16.7 |  |  | $ | 6.8 |
Subscription | 6.3 |  |  | 4.3 |  |  | 15.0 |  |  | 13.9 |
Total cost of revenue | 12.0 |  |  | 7.6 |  |  | 31.8 |  |  | 20.6 |
Sales and marketing | 7.5 |  |  | 5.7 |  |  | 23.0 |  |  | 13.7 |
General and administrative | 41.1 |  |  | 22.5 |  |  | 108.9 |  |  | 60.4 |
Research and development | 11.7 |  |  | 5.9 |  |  | 33.4 |  |  | 14.1 |
Restructuring expense | 44.9 |  |  | — |  |  | 44.9 |  |  | — |
Total stock-based compensation expense | $ | 117.1 |  |  | $ | 41.7 |  |  | $ | 241.9 |  |  | $ | 108.8 |

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