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Internal-Use Software Costs
6 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Internal-Use Software Costs

Note 7. Internal-Use Software Costs

Capitalized Internal-Use Software

Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development, or costs related to development of our hosted SaaS products are capitalized during the application development stage. The Company capitalized $3.5 million and $3.1 million of costs related to software developed for internal use during the six months ended December 31, 2024 and 2023, respectively. Capitalized stock-based compensation expense was not material for the periods presented. Amortization expense related to capitalized internal-use software was $0.9 million for the three months ended December 31, 2024 and 2023, and was $1.9 million and $1.7 million for the six months ended December 31, 2024 and 2023, respectively, and was recognized in cost of revenues related to SaaS in the unaudited condensed consolidated statements of operations. The net book value of capitalized internal-use software was $15.1 million and $13.5 million as of December 31, 2024 and June 30, 2024, respectively. Capitalized internal-use software costs are recorded in property and equipment on the Company’s unaudited condensed consolidated balance sheets. The Company has not recorded any impairment charges during the periods presented.

Capitalized Cloud Computing Implementation Costs

Qualifying implementation costs incurred in cloud computing arrangements incurred during the application development stage are capitalized based on the existing guidance for internal-use software, which is presented as part of our prepaid expenses and other assets based on the term of the associated cloud computing arrangement. The capitalized implementation costs are amortized on a straight-line basis over the term of the associated cloud computing arrangement when the module or component of the cloud computing arrangement is ready for its intended use in the same line item as fees for the associated cloud computing arrangement in the unaudited condensed consolidated statements of operations. The Company capitalized $1.9 million and $2.1 million of costs related to cloud computing implementation during the six months ended December 31, 2024 and 2023, respectively. Capitalized stock-based compensation expense was not material for the periods presented. Amortization expense related to capitalized cloud computing implementation costs was $0.2 million and none for the three months ended December 31, 2024 and 2023, respectively. The net book value of capitalized cloud computing implementation costs was $5.7 million as of December 31, 2024, out of which $1.3 million is recorded as part of prepaid expenses and $4.4 million is recorded as part of other assets based on the term of the associated cloud computing arrangement. The net book value of capitalized cloud computing implementation costs was $4.1 million as of June 30, 2024, out of which $0.6 million is recorded as part of prepaid expenses and $3.5 million is recorded as part of other assets based on the term of the associated cloud computing arrangement. The Company has not recorded any impairment charges during the periods presented.