Income Taxes (Tables)

12 Months Ended

Jun. 30, 2021

Components of Loss before (Benefit from) Provision for Income Taxes

The components of loss before (benefit from) provision for income taxes were as follows (in thousands):

	Year ended June 30,
	2021			2020			2019
Domestic	$	(139,337	)	$	(31,038	)	$	(7,470	)
Foreign		—			—			—
Total	$	(139,337	)	$	(31,038	)	$	(7,470	)

Components of (Benefit from) Provision for Income Taxes

The components of (benefit from) provision for income taxes were as follows (in thousands):

	Year ended June 30,
	2021			2020		2019
Current:
Federal	$	—		$	—	$	—
State		—			53		20
Foreign		—			—		—
Total current		—			53		20
Deferred:		—			—		—
Federal		(27,529	)		—		(142	)
State		(13,088	)		—		(34	)
Foreign		—			—		—
Total deferred		(40,617	)		—		(176	)
(Benefit from) provision for income taxes	$	(40,617	)	$	53	$	(156	)

Difference between Income Taxes Computed At Federal Statutory Rate and (Benefit from) Provision for Income Taxes

The items accounting for the difference between the income taxes computed at the federal statutory rate and the (benefit from) provision for income taxes consisted of the following (in thousands):

	Year ended June 30,
	2021			2020			2019
Expected benefit at U.S. federal statutory rate	$	(29,261	)	$	(6,518	)	$	(1,569	)
State income taxes, net of federal benefit		(54	)		—			—
Stock-based compensation		(70,262	)		(31,047	)		390
Research and development tax credits		(8,846	)		(6,411	)		(2,111	)
Change in valuation allowance related to acquisition ⁽¹⁾		(34,749	)		—			—
Change in valuation allowance⁽²⁾		94,244			43,716			3,029
Unrecognized tax benefit		6,766			—			—
Acquisition-related costs		1,484			—			—
Other		61			313			105
(Benefit from) provision for income taxes	$	(40,617	)	$	53		$	(156	)

⁽¹⁾

^{The rate impact during the year ended June 30, 2021 pertains to the income tax benefit recorded as a result of the acquisition of Divvy, which allowed the Company to release a portion of its valuation allowance due to the net deferred tax liability position of Divvy at the acquisition date.}

⁽²⁾

^{The rate impact during the year ended June 30, 2021 pertains to (i) an increase in valuation allowance due to the increase in deferred tax assets associated with losses and tax credits generated during the year, (ii) a change in deferred tax liability related to the 2025 Notes, and (iii) a change in deferred tax liability related to the acquisition of Divvy.}

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows as of the periods presented (in thousands):

	June 30,
	2021			2020
Deferred tax assets:
Accruals and reserves	$	8,677		$	3,933
Deferred revenue		1,109			904
Property and equipment		—			128
Stock-based compensation		16,626			2,542
Net operating loss carryforwards		218,783			68,694
Research and development credits		15,864			12,226
Accrued rewards		1,342			—
Operating lease liabilities		25,122			—
Other		514			—
Total deferred tax assets before valuation allowance		288,037			88,427
Valuation allowance		(107,836	)		(85,569	)
Deferred tax assets	$	180,201		$	2,858
Deferred tax liabilities:
Deferred contract costs	$	(2,763	)	$	(2,182	)
Property and equipment		(3,133	)		—
Intangible assets		(107,631	)		—
Operating right of use assets		(18,551	)		—
Convertible notes		(57,213	)		—
Other		—			(676	)
Total deferred tax liabilities	$	(189,291	)	$	(2,858	)
Net deferred tax (liabilities) assets	$	(9,090	)	$	—

Reconciliation of Unrecognized Tax Benefits

Below is the reconciliation of the unrecognized tax benefits as of the periods presented (in thousands):

	June 30,
	2021		2020
Balance at the beginning of the year	$	5,787	$	2,692
Additions based upon tax positions related to the current year		8,267		3,078
Increase from business combination		668		—
Additions based upon tax positions related to the prior year		7,463		17
Balance at the end of the year	$	22,185	$	5,787