Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Sep. 30, 2014 | |
Document and Entity Information | ' |
Entity Registrant Name | 'Paylocity Holding Corp |
Entity Central Index Key | '0001591698 |
Document Type | 'S-1 |
Document Period End Date | 30-Sep-14 |
Amendment Flag | 'false |
Entity Filer Category | 'Non-accelerated Filer |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 |
In Thousands, unless otherwise specified | ||||||
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $72,843 | $78,848 | $5,299 | $7,594 | $9,031 | $7,990 |
Accounts receivable, net | 799 | 756 | ' | 740 | ' | ' |
Prepaid expenses and other | 3,072 | 2,694 | ' | 1,875 | ' | ' |
Deferred income tax assets, net | 706 | 706 | ' | 602 | ' | ' |
Total current assets before funds held for clients | 77,420 | 83,004 | ' | 10,811 | ' | ' |
Funds held for clients | 432,225 | 417,261 | ' | 355,905 | ' | ' |
Total current assets | 509,645 | 500,265 | ' | 366,716 | ' | ' |
Long-term prepaid expenses | 303 | 313 | ' | ' | ' | ' |
Capitalized software, net | 5,574 | 5,093 | ' | 2,614 | ' | ' |
Property and equipment, net | 14,038 | 13,125 | ' | 8,586 | ' | ' |
Intangible assets, net | 6,130 | 6,320 | ' | ' | ' | ' |
Goodwill | 3,035 | 3,035 | ' | ' | ' | ' |
Total assets | 538,725 | 528,151 | ' | 377,916 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Current portion of long-term debt | ' | ' | ' | 625 | ' | ' |
Accounts payable | 1,520 | 2,133 | ' | 880 | ' | ' |
Taxes payable | 10 | 5 | ' | 207 | ' | ' |
Consideration related to acquisition | 600 | 2,985 | ' | ' | ' | ' |
Accrued expenses | 10,777 | 10,744 | ' | 6,794 | ' | ' |
Total current liabilities before client fund obligations | 12,907 | 15,867 | ' | 8,506 | ' | ' |
Client fund obligations | 432,225 | 417,261 | ' | 355,905 | ' | ' |
Total current liabilities | 445,132 | 433,128 | ' | 364,411 | ' | ' |
Long-term debt, net of current portion | ' | ' | ' | 938 | ' | ' |
Deferred rent | 3,089 | 3,175 | ' | 2,317 | ' | ' |
Deferred income tax liabilities, net | 734 | 714 | ' | 269 | ' | ' |
Total liabilities | 448,955 | 437,017 | ' | 367,935 | ' | ' |
Stockholders' equity (deficit) | ' | ' | ' | ' | ' | ' |
Common stock, $0.001 par value, 66,667 shares authorized, 31,988 shares issued and outstanding at June 30, 2013; and 155,000 shares authorized, 49,564 shares issued and outstanding at June 30, 2014 | 50 | 50 | ' | 32 | ' | ' |
Preferred stock, $0.001 par value, no shares authorized, issued and outstanding at June 30, 2013 and 5,000 authorized, no shares issued and outstanding at June 30, 2014 | ' | ' | ' | ' | ' | ' |
Additional paid-in capital | 128,766 | 125,255 | ' | 437 | ' | ' |
Accumulated deficit | -39,046 | -34,171 | ' | -27,061 | ' | ' |
Total stockholders' equity (deficit) | 89,770 | 91,134 | ' | -26,592 | -27,646 | -2,254 |
Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit) | 538,725 | 528,151 | ' | 377,916 | ' | ' |
Series A redeemable convertible preferred stock | ' | ' | ' | ' | ' | ' |
Redeemable convertible preferred stock, $0.001 par value, 18,000 authorized as of June 30, 2013 and no shares authorized as of June 30, 2014 | ' | ' | ' | ' | ' | ' |
Redeemable convertible preferred stock | ' | ' | ' | 9,339 | 9,339 | 9,339 |
Series B redeemable convertible preferred stock | ' | ' | ' | ' | ' | ' |
Redeemable convertible preferred stock, $0.001 par value, 18,000 authorized as of June 30, 2013 and no shares authorized as of June 30, 2014 | ' | ' | ' | ' | ' | ' |
Redeemable convertible preferred stock | ' | ' | ' | $27,234 | $27,234 | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, except Per Share data, unless otherwise specified | Redeemable convertible preferred stock | Redeemable convertible preferred stock | Series A redeemable convertible preferred stock | Series A redeemable convertible preferred stock | Series B redeemable convertible preferred stock | Series B redeemable convertible preferred stock |
Preferred Stock, par value (in dollars per share) | $0.00 | $0.00 | ' | ' | ' | ' |
Preferred Stock, shares authorized | 0 | 18,000 | ' | ' | ' | ' |
Preferred Stock, cumulative dividend (as a percent) | ' | ' | 6.00% | 6.00% | 8.00% | 8.00% |
Preferred Stock, shares issued | ' | ' | 0 | 9,500 | 0 | 8,400 |
Preferred Stock, shares outstanding | ' | ' | 0 | 9,500 | 0 | 8,400 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recurring fees | $29,142 | ' | ' | ' | $20,738 | ' | ' | ' | ' | $100,362 | $71,309 | $51,211 |
Interest income on funds held for clients | 363 | ' | ' | ' | 353 | ' | ' | ' | ' | 1,582 | 1,459 | 1,263 |
Total recurring revenues | 29,505 | ' | ' | ' | 21,091 | ' | ' | ' | ' | 101,944 | 72,768 | 52,474 |
Implementation services and other | 1,604 | ' | ' | ' | 1,278 | ' | ' | ' | ' | 6,743 | 4,526 | 2,622 |
Total revenues | 31,109 | 28,647 | 33,766 | 23,905 | 22,369 | 20,262 | 24,006 | 17,200 | 15,826 | 108,687 | 77,294 | 55,096 |
Cost of revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recurring revenues | 10,057 | ' | ' | ' | 7,993 | ' | ' | ' | ' | 37,319 | 28,863 | 22,054 |
Implementation services and other | 5,395 | ' | ' | ' | 3,754 | ' | ' | ' | ' | 17,775 | 10,803 | 7,040 |
Total cost of revenues | 15,452 | ' | ' | ' | 11,747 | ' | ' | ' | ' | 55,094 | 39,666 | 29,094 |
Gross profit | 15,657 | 13,543 | 18,841 | 10,587 | 10,622 | 9,386 | 13,272 | 7,663 | 7,307 | 53,593 | 37,628 | 26,002 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales and marketing | 9,078 | ' | ' | ' | 5,189 | ' | ' | ' | ' | 28,276 | 18,693 | 12,828 |
Research and development | 4,027 | ' | ' | ' | 1,956 | ' | ' | ' | ' | 10,355 | 6,825 | 1,788 |
General and administrative | 7,448 | ' | ' | ' | 3,911 | ' | ' | ' | ' | 21,980 | 12,079 | 8,618 |
Total operating expenses | 20,553 | ' | ' | ' | 11,056 | ' | ' | ' | ' | 60,611 | 37,597 | 23,234 |
Operating income (loss) | -4,896 | -6,306 | 2,133 | -2,411 | -434 | -869 | 2,604 | -1,088 | -616 | -7,018 | 31 | 2,768 |
Other income (expense) | 49 | ' | ' | ' | 28 | ' | ' | ' | ' | 163 | -16 | -196 |
Income (loss) before income taxes | -4,847 | ' | ' | ' | -406 | ' | ' | ' | ' | -6,855 | 15 | 2,572 |
Income tax (benefit) expense | 28 | ' | ' | ' | -362 | ' | ' | ' | ' | 255 | -602 | 884 |
Net income (loss) | -4,875 | -6,704 | 1,150 | -1,512 | -44 | -372 | 2,021 | -627 | -405 | -7,110 | 617 | 1,688 |
Net income (loss) attributable to common stockholders | ($4,875) | ' | ' | ' | ($825) | ' | ' | ' | ' | ($9,392) | ($2,291) | $998 |
Net income (loss) per share attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.26) | ($0.07) | $0.02 |
Diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.26) | ($0.07) | $0.02 |
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 49,566 | 49,564 | 44,360 | 31,988 | 31,988 | 31,988 | 43,921 | 31,988 | 31,988 | 36,707 | 31,988 | 43,873 |
Diluted (in shares) | 49,566 | 49,564 | 44,870 | 31,988 | 31,988 | 31,988 | 44,407 | 31,988 | 31,988 | 36,707 | 31,988 | 44,317 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
In Thousands, unless otherwise specified | ||||
Balance at Jun. 30, 2011 | ($2,254) | $38 | $4,304 | ($6,596) |
Balance (in shares) at Jun. 30, 2011 | ' | 37,539 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Stock-based compensation expense | 203 | ' | 203 | ' |
Stock options exercised | 88 | ' | 88 | ' |
Stock options exercised (in shares) | ' | 67 | ' | ' |
Redemption of Common Stock | -27,371 | -6 | -4,595 | -22,770 |
Redemption of Common Stock (in shares) | ' | -5,618 | ' | ' |
Net income (loss) | 1,688 | ' | ' | 1,688 |
Balance at Jun. 30, 2012 | -27,646 | 32 | ' | -27,678 |
Balance (in shares) at Jun. 30, 2012 | ' | 31,988 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Stock-based compensation expense | 523 | ' | 523 | ' |
Stock options exercised | 76 | ' | 76 | ' |
Stock options exercised (in shares) | ' | 33 | ' | ' |
Redemption of Common Stock | -162 | ' | -162 | ' |
Redemption of Common Stock (in shares) | ' | -33 | ' | ' |
Net income (loss) | 617 | ' | ' | 617 |
Balance at Jun. 30, 2013 | -26,592 | 32 | 437 | -27,061 |
Balance (in shares) at Jun. 30, 2013 | 31,988 | 31,988 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Initial public offering, net of issuance costs | 81,927 | 6 | 81,921 | ' |
Initial public offering, net of issuance costs (in shares) | ' | 5,367 | ' | ' |
Conversion of redeemable convertible preferred stock | 36,573 | 12 | 36,561 | ' |
Number of shares of common stock issued on automatic conversion of outstanding preferred stock | ' | 11,933 | ' | ' |
Capital contribution | 1,052 | ' | 1,052 | ' |
Vesting of restricted shares (in shares) | ' | 276 | ' | ' |
Stock-based compensation expense | 5,284 | ' | 5,284 | ' |
Net income (loss) | -7,110 | ' | ' | -7,110 |
Balance at Jun. 30, 2014 | 91,134 | 50 | 125,255 | -34,171 |
Balance (in shares) at Jun. 30, 2014 | 49,564 | 49,564 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Stock-based compensation expense | 3,445 | ' | 3,445 | ' |
Stock options exercised | 66 | ' | 66 | ' |
Stock options exercised (in shares) | ' | 13 | ' | ' |
Net income (loss) | -4,875 | ' | ' | -4,875 |
Balance at Sep. 30, 2014 | $89,770 | $50 | $128,766 | ($39,046) |
Balance (in shares) at Sep. 30, 2014 | 49,577 | 49,577 | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Temporary Equity) (USD $) | Total | Series A redeemable convertible preferred stock | Series B redeemable convertible preferred stock |
In Thousands, unless otherwise specified | |||
Balance at Jun. 30, 2011 | ' | $9,339 | ' |
Balance (in shares) at Jun. 30, 2011 | ' | 9,500 | ' |
Statement | ' | ' | ' |
Issuance of Preferred Series B Shares | ' | ' | 27,234 |
Issuance of Preferred Series B Shares (in shares) | ' | ' | 8,400 |
Balance at Jun. 30, 2012 | ' | 9,339 | 27,234 |
Balance (in shares) at Jun. 30, 2012 | ' | 9,500 | 8,400 |
Balance at Jun. 30, 2013 | ' | 9,339 | 27,234 |
Balance (in shares) at Jun. 30, 2013 | ' | 9,500 | 8,400 |
Statement | ' | ' | ' |
Conversion of redeemable convertible preferred stock | $36,573 | ($9,339) | ($27,234) |
Conversion of redeemable convertible preferred stock (in shares) | ' | -9,500 | -8,400 |
Balance (in shares) at Jun. 30, 2014 | ' | 0 | 0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Cash flows provided by operating activities: | ' | ' | ' |
Net income (loss) | ($7,110) | $617 | $1,688 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Stock-based compensation | 4,929 | 523 | 203 |
Depreciation and amortization | 6,336 | 5,571 | 4,624 |
Deferred income tax (benefit) expense | 341 | -822 | 838 |
Provision for doubtful accounts | 62 | 60 | 60 |
Loss on disposal of equipment | 98 | ' | ' |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -78 | -295 | 287 |
Prepaid expenses | -1,132 | -1,061 | -247 |
Trade accounts payable | 465 | 138 | 102 |
Accrued expenses | 3,288 | 1,497 | 1,009 |
Net cash provided by operating activities | 7,199 | 6,228 | 8,564 |
Cash flows from investing activities: | ' | ' | ' |
Capitalized internally developed software costs | -4,349 | -1,967 | -3,716 |
Purchases of property and equipment | -6,667 | -3,987 | -3,446 |
Payments for acquisition | -6,450 | ' | ' |
Net change in funds held for clients | -61,356 | -92,650 | 35,724 |
Net cash provided by (used in) investing activities | -78,822 | -98,604 | 28,562 |
Cash flows from financing activities: | ' | ' | ' |
Net change in client funds obligation | 61,356 | 92,650 | -35,724 |
Principal payments on long-term debt | -1,563 | -1,625 | -312 |
Proceeds from initial public offering, net of issuance costs | 82,032 | ' | ' |
Capital contribution | 1,052 | ' | ' |
Proceeds from issuance of Redeemable Convertible Preferred Series B Shares | ' | ' | 27,234 |
Proceeds from exercise of stock options | ' | 76 | 88 |
Payments for redemption of Common Shares | ' | -162 | -27,371 |
Net cash (used in) provided by financing activities | 142,877 | 90,939 | -36,085 |
Net Change in Cash and Cash Equivalents | 71,254 | -1,437 | 1,041 |
Cash and Cash Equivalents-Beginning of Year | 7,594 | 9,031 | 7,990 |
Cash and Cash Equivalents-End of Year | 78,848 | 7,594 | 9,031 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ' | ' | ' |
Build-out allowance received from landlord | 1,162 | 325 | 333 |
Purchase of property and equipment, accrued but not paid | 896 | 27 | 392 |
Unpaid initial offering costs | 75 | ' | ' |
Supplemental disclosure of cash flow information | ' | ' | ' |
Cash paid for income taxes | 106 | 69 | 7 |
Cash paid for interest | $70 | $385 | $161 |
Organization_and_Description_o
Organization and Description of Business | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Organization and Description of Business | ' | ' |
Organization and Description of Business | ' | ' |
(1) Organization and Description of Business | (1) Organization and Description of Business | |
Paylocity Holding Corporation (the “Company”), through its wholly owned subsidiary, Paylocity Corporation, is a cloud-based provider of payroll and human capital management software solutions for medium-sized organizations. Services are provided in a Software-as-a-Service (“SaaS”) delivery model utilizing the Company’s cloud-based platform. Payroll services include collection, remittance and reporting of payroll liabilities to the appropriate federal, state and local authorities. | Paylocity Holding Corporation (the “Company”) is a cloud-based provider of payroll and human capital management software solutions for medium-sized organizations. Services are provided in a Software-as-a-Service (“SaaS”) delivery model utilizing the Company’s cloud-based platform. Payroll services include collection, remittance and reporting of payroll liabilities to the appropriate federal, state and local authorities. | |
The Company was formed on November 6, 2013 at which time Paylocity Corporation became a wholly-owned subsidiary resulting in the inclusion of Paylocity Corporation in the consolidated financial statements of Paylocity Holding Corporation. All holders of Paylocity Corporation equity instruments at the time were issued Paylocity Holding Corporation equity instruments with identical rights and obligations in exchange for their Paylocity Corporation equity instruments. Upon the completion of these transactions, Paylocity Holding Corporation became the sole stockholder of Paylocity Corporation. | ||
In March 2014, the Company amended its Certificate of Incorporation to execute a reverse three for two stock split on its common stock. All share and per share amounts in the Company’s audited consolidated financial statements and notes to the financial statement reflect the impact of this change on the number of shares authorized, issued, and outstanding and earnings per share. | ||
Initial Public Offering | ||
In March 2014, the Company completed its initial public offering (“IPO”) in which it issued and sold 5,367 shares of common stock and existing shareholders sold 2,735 shares of common stock at a public offering price of $17 per share. The Company did not receive any proceeds from the sale of common stock by the existing shareholders. The Company received net proceeds of $81,927 after deducting underwriting discounts and commissions of $6,387 and other offering expenses of $2,925. Upon the closing of the IPO, all shares of the Company’s then-outstanding redeemable convertible preferred stock automatically converted into 11,933 shares of its $0.001 par value common stock. | ||
In connection with the IPO, in March 2014, the Company amended its Certificate of Incorporation to increase the number of authorized common stock to 155,000 and reduce the number of authorized preferred stock to 5,000. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||
Summary of Significant Accounting Policies | ' | ' | ||||||
Summary of Significant Accounting Policies | ' | ' | ||||||
(2) Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies | |||||||
(a) Consolidation and Use of Estimates | (a) Basis of Presentation, Consolidation, and Use of Estimates | |||||||
These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. | The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). | |||||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, software developed for internal use, valuation and useful lives of long-lived assets, definite-lived intangibles, goodwill, stock-based compensation, valuation of net deferred income tax assets and the best estimate of selling price for revenue recognition purposes. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. | The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, software developed for internal use, valuation and useful lives of long-lived assets, definite-lived intangibles, goodwill, stock-based compensation, valuation of net deferred income tax assets and the best estimate of selling price for revenue recognition purposes. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. | |||||||
(b) Interim Unaudited Consolidated Financial Information | The consolidated financial statements reflect the financial position and operating results of Paylocity Holding Corporation and include its wholly-owned subsidiary Paylocity Corporation. Intercompany accounts and transactions have been eliminated in consolidation. | |||||||
The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows. The results of operations for the three-month period ended September 30, 2014 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2014. | (b) Concentrations of Risk | |||||||
(c) Income Taxes | The Company regularly maintains cash balances that exceed Federal Depository Insurance Corporation limits. No individual client represents 10% or more of total revenues. For all periods presented, 100% of total revenues were generated by clients in the United States. | |||||||
Differences in the normal relationship between the income tax expense (benefit) and pre-tax income (loss) materially result from the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. | (c) Cash and Cash Equivalents | |||||||
(d) Stock-Based Compensation | The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||||||
The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards, including those under the 2014 Employee Stock Purchase Plan (“ESPP”), are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model and periodically updates the assumed forfeiture rates for actual experience over the option vesting term or the term of the ESPP purchase period. | (d) Accounts Receivable | |||||||
(e) Recently Issued Accounting Standards | Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the statements of cash flows. The Company maintains an allowance for doubtful accounts reflecting estimated potential losses in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our clients’ financial conditions, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Company reviews its allowance for doubtful accounts quarterly. Past due balances over 60 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all commercially reasonable means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. | |||||||
In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a “full retrospective” adoption or a “modified retrospective” adoption. The Company is currently evaluating which adoption method it will use. Early application is not permitted. The Company plans on adopting ASU 2014-09 beginning July 1, 2017 and is currently assessing the potential effects of these changes to its consolidated financial statements. | Activity in the allowance for doubtful accounts was as follows: | |||||||
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. | For the Years Ended June 30, | |||||||
2012 | 2013 | 2014 | ||||||
Balance at the beginning of the year | $80 | $114 | $118 | |||||
Charged to expense | 60 | 60 | 62 | |||||
Write-offs | -26 | -56 | -54 | |||||
Balance at the end of the year | $114 | $118 | $126 | |||||
(e) Prepaid expenses and other assets | ||||||||
Prepaid expenses and other current assets consist of office space security deposits, deposits with vendors, prepaid licensing fees, supplies, and time clocks available for sale or lease. | ||||||||
(f) Property and Equipment and Long-Lived Assets | ||||||||
Property and equipment are stated at cost. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets, generally three to seven years for most classes of assets, or over the term of the related lease for leasehold improvements. | ||||||||
Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. | ||||||||
(g) Internal-Use Software | ||||||||
The Company applies ASC 350-40, Intangibles—Goodwill and Other—Internal-Use Software, to the accounting for costs of internal-use software. Software development costs are capitalized when application development begins, it is probable that the project will be completed, and the software will be used as intended. Costs associated with preliminary project stage activities, training, maintenance and all other post implementation stage activities are expensed as incurred. The Company also capitalizes certain costs related to specific upgrades and enhancements when it is probable the expenditures will result in significant additional functionality. The capitalization policy provides for the capitalization of certain payroll costs for employees who are directly associated with developing internal-use software as well as certain external direct costs. Capitalized employee costs are limited to the time directly spent on such projects. | ||||||||
Capitalized internal-use software costs are amortized on a straight-line basis over the estimated useful lives, generally 18 to 24 months, depending on the expected life of the application enhancement. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. | ||||||||
(h) Goodwill and other intangible assets, net of accumulated amortization | ||||||||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. As described in Note 5, the Company has recorded goodwill in connection with the acquisition of BFKMS, Inc. Goodwill is not amortized, but instead is tested for impairment at least annually. ASU 2011-08, Testing Goodwill for Impairment provides an entity the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step impairment test. If it is the case that the estimated fair value of a reporting unit is less than its carrying amount, including goodwill, the two-step goodwill impairment test is required. Otherwise no further analysis is required. | ||||||||
If the two-step goodwill impairment test is required, first the fair value of the reporting unit is compared with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the Company must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. | ||||||||
The Company will perform its annual impairment review of goodwill in its fiscal fourth quarter and when a triggering event occurs between annual impairment tests. However, given that the Company did not have recorded goodwill until its fiscal fourth quarter of 2014, no impairment tests were required to be completed. | ||||||||
Intangible assets are comprised primarily of client list acquisitions and are reported net of accumulated amortization on the Consolidated Balance Sheets. Client relationships use the straight-line method of amortization over an accelerated nine year time frame, while the non-solicitation agreement uses the straight-line method of amortization over the three year life of the agreement. The Company tests intangible assets for potential impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. | ||||||||
(i) Deferred Rent | ||||||||
The Company has operating lease agreements for its office space, which contain provisions for future rent increases, periods of rent abatement and build-out allowances. The Company records monthly rent expense for each lease equal to the total payments due over the lease term, divided by the number of months of the lease term. Build-out allowances are recorded as part of leasehold improvements and the incentive is amortized over the lease term against depreciation. The difference between recorded rent expense and the amount paid is reflected as “Deferred Rent” in the accompanying balance sheets. | ||||||||
(j) Income Taxes | ||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | ||||||||
The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Accordingly, the impact of the American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013, on deferred tax assets and liabilities and current taxes for the last six months of the fiscal year ended June 30, 2012 was recognized in the year ended June 30, 2013. Research and development tax credits are recognized using the flow-through method in the year the credit arises. | ||||||||
Valuation allowances are provided when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Significant management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company is required to consider all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income among other items, in determining whether a full or partial release of its valuation allowance is required. The Company is also required to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. | ||||||||
The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties as an element of income tax expense. | ||||||||
(k) Revenue Recognition | ||||||||
The Company recognizes revenue in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 605-25, Revenue Recognition—Multiple Element Arrangements, Accounting Standards Update No. 2009-13, Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”), and Staff Accounting Bulletin 104, Revenue Recognition. Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the fee is fixed or determinable and collection of the revenue is probable. | ||||||||
The Company derives its revenue predominantly from recurring fees and non-recurring service fees. Recurring fees are collected under agreements for payroll, timekeeping, HR-related cloud-based computing services and monthly time clock rentals, all of which are generally cancellable by the client on 60 days’ notice or less. Non-recurring service fees consist mainly of implementation and custom reporting services. Such fees are billed to clients and revenue is recorded upon completion of the service. The Company’s agreements do not include general rights of return and do not provide clients with the right to take possession of the software supporting the services being provided. As such, the agreements are accounted for as service contracts. | ||||||||
Interest income collected on funds held for clients is recognized in recurring revenues when earned as the collection, holding and remittance of these funds are critical components of providing these services. | ||||||||
Most multiple-element arrangements include a short implementation services phase which involves establishing the client within and loading data into the Company’s cloud-based applications. Such activities are performed by either the Company or a third party vendor. Major recurring fees included in multiple-element arrangements include: | ||||||||
· Payroll processing and related services, including payroll reporting and tax filing services delivered on a weekly, biweekly, semi-monthly, or monthly basis depending upon the payroll frequency of the client and on an annual basis if a client selects W-2 preparation and processing services, | ||||||||
· Time and attendance reporting services, including time clock rentals, delivered on a monthly basis, and | ||||||||
· Cloud-based HR software solutions, including employee administration and benefits enrollment and administration, delivered on a monthly basis. | ||||||||
For each agreement, the Company evaluates whether the individual deliverables qualify as separate units of accounting. If one or more of the deliverables does not have standalone value upon delivery, which is typical of the payroll and human capital management (“HCM”) services our customers contract for, the deliverables that do not have standalone value are generally combined and treated as a single unit of accounting by frequency of occurrence for the product category involved such as biweekly payroll or monthly timekeeping services. Revenues for arrangements treated as a single unit of accounting are generally recognized within the same month that the services are rendered given that the agreements are cancellable with 60 days’ or less notice. | ||||||||
In determining whether implementation services can be accounted for separately from recurring revenues, the Company considers the nature of the implementation services and the availability of the implementation services from other vendors. The Company was able to establish standalone value for implementation activities based on the activity of third-party vendors that perform these services and accounts for such implementation services separate from the recurring revenues. | ||||||||
If the recurring services have standalone value upon delivery, the Company accounts for each separately and revenues are recognized as services are delivered with allocation of consideration based on the relative selling price method as established in ASU 2009-13. That method requires the selling price of each element in a multiple-deliverable arrangement to be based on, in descending order: (i) vendor specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of fair value (“TPE”) or (iii) management’s best estimate of the selling price (“BESP”). | ||||||||
The Company is not able to establish VSOE because the deliverables are sold across an insufficiently narrow range of prices on a stand-alone basis and is also not able to establish TPE because no third-party offerings are reasonably comparable to the Company’s offerings. The Company thus established its BESP by service offering, requiring the use of significant estimates and judgment. The Company considers numerous factors, including the nature of the deliverables themselves; the geography of the sale; and pricing and discounting practices utilized by the Company’s sales force. Arrangement consideration is allocated to each deliverable based on the established BESP and subject to the limitation that because the arrangements are cancellable with 60 days’ or less notice, recurring revenue is not allocated to any deliverable until the consideration has been earned, typically with each payroll cycle or monthly, depending on the service. | ||||||||
Revenues generated from sales through partners or utilizing partner services are recognized in accordance with the appropriate accounting guidance of Accounting Standards Codification 605-45, Principal Agent Considerations. The Company reports revenue generated through partners or utilizing partner services at the gross amount billed to clients when (i) the Company is the primary obligor, (ii) the Company has latitude to establish the price charged and (iii) the Company bears the credit risk in the transaction. | ||||||||
Sales taxes collected from clients and remitted to governmental authorities where applicable are accounted for on a net basis and therefore are excluded from revenues in the statements of operations. | ||||||||
(l) Cost of Revenues | ||||||||
Cost of revenues consists primarily of the cost of recurring revenues and implementation services which are expensed when incurred. Cost of revenues for recurring revenues consists primarily of costs to provide recurring services and support to our clients, and includes amortization of capitalized software. Cost of revenues for implementation services and other consists primarily of costs to provide implementation services and costs related to sales of payroll-related forms and time clocks. | ||||||||
(m) Advertising | ||||||||
Advertising costs are expensed as incurred. Advertising costs amounted to $32, $27 and $24 for the years ended June 30, 2012, 2013 and 2014, respectively. | ||||||||
(n) Equity Incentive Plan | ||||||||
The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model and periodically updates the assumed forfeiture rates for actual experience over their vesting terms. | ||||||||
Excess tax benefits of awards that are recognized in equity related to stock option exercises are reflected as financing cash inflows. The total excess income tax benefits recognized for stock-based compensation arrangements was $206 and $63 for the years ended June 30, 2012 and 2013, respectively. There were no excess income tax benefits recognized for stock-based compensation arrangements for the year ended June 30, 2014. | ||||||||
(o) Commitments and Contingencies | ||||||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. | ||||||||
(p) Segment Information | ||||||||
The Company’s chief operating decision maker reviews the financial results of the Company in total when evaluating financial performance and for purposes of allocating resources. The Company has thus determined that it operates in a single cloud-based software solution reporting segment. | ||||||||
(q) Recently Issued Accounting Standards | ||||||||
In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a “full retrospective” adoption or a “modified retrospective” adoption. The Company is currently evaluating which adoption method it will use. Early application is not permitted. The Company plans on adopting ASU 2014-09 beginning July 1, 2017 and is currently assessing the potential effects of these changes to its consolidated financial statements. | ||||||||
From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. |
Funds_Held_for_Clients_and_Cli
Funds Held for Clients and Client Fund Obligations | 12 Months Ended |
Jun. 30, 2014 | |
Funds Held for Clients and Client Fund Obligations | ' |
Funds Held for Clients and Client Fund Obligations | ' |
(3) Funds Held for Clients and Client Fund Obligations | |
The Company obtains funds from clients in advance of performing payroll and payroll tax filing services on behalf of those clients. Funds held for clients represent assets that are used solely for the purposes of satisfying the obligations to remit funds relating to payroll and payroll tax filling services. Funds held for clients are held in demand deposit and money market accounts at major financial institutions. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client fund obligations. | |
Client fund obligations represent the Company’s contractual obligations to remit funds to satisfy clients’ payroll and tax payment obligations and are recorded in the accompanying balance sheets at the time that the Company obtains funds from clients. The client fund obligations represent liabilities that will be repaid within one year of the balance sheet date. |
Fair_Value_Measures
Fair Value Measures | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Fair Value Measures | ' | ' |
Fair Value Measures | ' | ' |
(4) Fair Value Measurement | (4) Fair Value Measures | |
The Company applies the fair value measurement and disclosure provisions of ASC 820, Fair Value Measurements and Disclosures, and ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | The Company applies the fair value measurement and disclosure provisions of ASC 820, Fair Value Measurements and Disclosures, and ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |
Level 1—Quoted prices in active markets for identical assets and liabilities. | · Level 1—Quoted prices in active markets for identical assets and liabilities. | |
Level 2—Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | · Level 2—Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | |
Substantially all of the Company’s assets that are measured at fair value on a recurring basis are measured using Level 1 inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at June 30, 2014 and September 30, 2014 based upon the short-term nature of the assets and liabilities. | Substantially all of the Company’s assets that are measured at fair value on a recurring basis are measured using Level 1 inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at June 30, 2013 and 2014 based upon the short-term nature of the assets and liabilities. | |
Business_Combinations
Business Combinations | 12 Months Ended | ||
Jun. 30, 2014 | |||
Business Combinations | ' | ||
Business Combinations | ' | ||
(5) Business Combinations | |||
On May 23, 2014, the Company closed on the acquisition of certain assets sufficient to sell the Company’s products in the Southern California marketplace of one of its resellers described in Note 16, BFKMS Inc., as part of the Company’s long term strategy of simplifying its sales channels. The total consideration, all to be paid in cash, was $9,435 of which $6,450 has been paid as of June 30, 2014. Of the remaining amount, $2,385 was paid in July 2014 with two further payments due in November 2014 and February 2015 or upon settlement of any indemnification related issues, totaling $600. The following table summarizes the provisional fair value of the assets acquired at the date of acquisition: | |||
At May 23, 2014 | |||
Intangible assets | $6,400 | ||
Goodwill | 3,035 | ||
Total purchase price | $9,435 | ||
The Company recorded the acquisition using the acquisition method of accounting and recognized assets at their fair value as of the date of acquisition. The $6,400 of amortizable intangible assets consists of $6,180 in client relationships and $220 in a non-solicitation agreement. The fair value of the client relationships has been estimated using the excess earnings method, a form of the income approach, and cash flow projections. The non-solicitation agreement has been estimated using an avoided loss of income method, which is a form of the income approach. Goodwill will be amortized over a period of 15 years for income tax purposes. The total purchase price and allocation of the purchase price to assets acquired are provisional pending conclusion of the indemnification period and receipt of the final valuation report from a third party valuation expert. | |||
The balance of the acquired intangibles, net of amortization, is stated separately on the consolidated balance sheet. Direct costs related to the acquisition were recorded as general and administrative expense as incurred. |
Software_Developed_for_Interna
Software Developed for Internal Use | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Software Developed for Internal Use | ' | ||||
Software Developed for Internal Use | ' | ||||
(6) Software Developed for Internal Use | |||||
Capitalized software and accumulated amortization were as follows: | |||||
Year ended June 30, | |||||
2013 | 2014 | ||||
Internally developed software | $15,189 | $19,863 | |||
Accumulated amortization | -12,575 | -14,770 | |||
Capitalized software, net | $2,614 | $5,093 | |||
There were no impairments to software developed for internal use in any of the periods covered in these financial statements. Amortization of capitalized internal-use software costs amounted to $2,727, $3,067 and $2,195 for the years ended June 30, 2012, 2013 and 2014, respectively and is included in Cost of Revenues—Recurring Revenues. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Property and Equipment | ' | ||||
Property and Equipment | ' | ||||
(7) Property and Equipment | |||||
The major classes of property and equipment are as follows as of June 30: | |||||
Year ended June 30, | |||||
2013 | 2014 | ||||
Office equipment | $1,350 | $1,449 | |||
Computer equipment | 4,665 | 7,726 | |||
Furniture and fixtures | 1,433 | 2,317 | |||
Automobiles | 36 | — | |||
Software | 3,791 | 4,963 | |||
Leasehold improvements | 3,917 | 6,059 | |||
Time clocks rented by clients | 1,649 | 2,360 | |||
16,841 | 24,874 | ||||
Accumulated depreciation and amortization | -8,255 | -11,749 | |||
Property and equipment, net | $8,586 | $13,125 | |||
There were no impairments to property and equipment in any of the periods covered in these financial statements. Depreciation expense amounted to $1,897, $2,504 and $4,061, for the years ended June 30, 2012, 2013 and 2014, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Goodwill and Intangible Assets | ' | ||||
Goodwill and Intangible Assets | ' | ||||
(8) Goodwill and Intangible Assets | |||||
Goodwill represents the excess of cost over the net tangible and identifiable intangible assets of acquired businesses. Goodwill amounts are not amortized, but rather tested for impairment at least annually. Identifiable intangible assets acquired in business combinations are recorded based on fair value at the date of acquisition and amortized over their estimated useful lives. See Note 5 for further information regarding the acquisition completed in 2014. | |||||
The Company had $0 and $3,035 of goodwill recorded as of June 30, 2013 and 2014 respectively. | |||||
The Company’s amortizable intangible assets, before amortization expense, have estimated useful lives as follows: | |||||
As of June | Weighted | ||||
30, 2014 | Average | ||||
Useful | |||||
Life | |||||
Client relationships | $6,180 | 9 years | |||
Non-solicitation agreement | 220 | 3 years | |||
Total | 6,400 | ||||
Accumulated amortization | -80 | ||||
Intangible assets, net | $6,320 | ||||
There was no amortization expense for acquired intangible assets for the years ended June 30, 2012 and 2013. Amortization expense for acquired intangible assets was $80 for the year ended June 30, 2014. Future amortization expense for acquired intangible is as follows, as of June 30, 2014: | |||||
Year ending June 30: | |||||
2015 | $760 | ||||
2016 | 760 | ||||
2017 | 752 | ||||
2018 | 687 | ||||
2019 | 687 | ||||
Thereafter | 2,674 | ||||
Total | $6,320 |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Accrued Expenses | ' | ||||
Accrued Expenses | ' | ||||
(9) Accrued Expenses | |||||
The components of accrued expenses are as follows: | |||||
Year ended June 30, | |||||
2013 | 2014 | ||||
Accrued payroll and personnel costs | $5,549 | $8,781 | |||
Reseller fees | 259 | 6 | |||
Current portion of deferred rent | 230 | 577 | |||
Other | 756 | 1,380 | |||
Total Accrued Expenses | $6,794 | $10,744 |
Leases
Leases | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Leases | ' | |||
Leases | ' | |||
(10) Leases | ||||
The Company leases office space in Illinois, California, Florida and New York under non-cancelable operating leases expiring on various dates from August 2014 through July 2022. The leases provide for increasing annual base rents and oblige the Company to fund proportionate share of operating expenses and, in certain cases, real estate taxes. | ||||
In July 2013, the Company leased sales office space in New York, New York, commencing in the first fiscal quarter of 2014. The Company extended this lease in the fourth fiscal quarter of 2014 through June 2015. | ||||
In June 2014, the Company leased approximately 6,000 square feet of additional office space at its headquarters in Arlington Heights, Illinois commencing in the third fiscal quarter of 2015 through July 2022. The lease calls for a phase of construction build-out with leasehold improvements to be amortized over the life of the lease. Upon the completion of the project, the Company receives a seven month rent holiday. | ||||
The Company leases various types of office and production related equipment under non-cancellable operating leases expiring on various dates from June 2015 through May 2019. | ||||
Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rental expense for operating leases, including amortization of leasehold improvements, was $1,519, $2,347 and $3,035 for the years ended June 30, 2012, 2013 and 2014, respectively. | ||||
Future minimum lease payments under non-cancellable operating leases (with initial or remaining lease terms in excess of one year) as of June 30, 2014 are: | ||||
Year ending June 30: | ||||
2015 | $3,353 | |||
2016 | 3.549 | |||
2017 | 3,200 | |||
2018 | 3,117 | |||
2019 | 2,494 | |||
Later years, through 2023 | 1,637 | |||
Total minimum lease payments | $17,350 |
Line_of_Credit_and_LongTerm_De
Line of Credit and Long-Term Debt | 12 Months Ended | |||||
Jun. 30, 2014 | ||||||
Line of Credit and Long-Term Debt | ' | |||||
Line of Credit and Long-Term Debt | ' | |||||
(11) Line of Credit and Long-Term Debt | ||||||
The Company maintained a line of credit agreement with a bank. Under this agreement, the Company had access of up to $2,500 of which $166 was earmarked for a letter of credit. Interest was payable monthly at the bank’s base rate (3.25% at June 30, 2013) plus 1.50%, with a floor of 5.50%. A commitment fee on the average daily undisbursed amount was assessed quarterly at a rate of 0.375% per anum. The line of credit was collateralized by all of the Company’s assets and a personal guarantee of a Company stockholder and was cross-collateralized to the Company’s note payable—bank (see below). The line of credit was due to expire on December 31, 2013, but it was increased to $3,500 and extended until December 31, 2015. The Company terminated the line of credit on March 31, 2014. There were no outstanding borrowings under this line of credit as of June 30, 2013. | ||||||
Long-term debt at June 30, 2013 and 2014 consisted of the following: | ||||||
Year ended June 30, | ||||||
2013 | 2014 | |||||
Note payable—bank | $1,563 | — | ||||
Note payable—related parties | — | — | ||||
Total long-term debt | 1,563 | — | ||||
Less current installments | 625 | — | ||||
Long-term debt, excluding current installments | $938 | — | ||||
The note payable—bank agreement called for payments of interest payable monthly at 6.50% with monthly principal payments in the amount of $52 commencing January 31, 2012 through maturity. The note was collateralized by substantially all of the Company assets and a personal guarantee of a Company stockholder. The note was cross-collateralized to the line of credit. The note was subject to certain prepayment penalties, as defined in the agreement. The Company repaid this note on March 31, 2014 as part of its intended use of IPO proceeds, and no prepayment penalties were assessed in accordance with the terms of the agreement. Interest expense related to this agreement was $175, $123 and $67 for the three years ended June 30, 2012, 2013 and 2014, respectfully. | ||||||
In accordance with the terms of the line of credit and note payable—bank agreements, the Company was required to comply with certain financial and non-financial covenants. The Company was in compliance with all covenants for the year ended June 30, 2013. | ||||||
The notes payable—related parties bore interest at 8.00%. Principal and interest were paid in full in March of 2013. The notes were unsecured and were subordinated to the line of credit and note payable—bank. Interest expense on these notes was $87 and $69 for the years ended June 30, 2012 and 2013, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2014 | Jun. 30, 2014 | ||||||||
Income Taxes | ' | ' | |||||||
Income Taxes | ' | ' | |||||||
(8) Income Taxes | |||||||||
(12) Income Taxes | |||||||||
The Company’s quarterly provision for income taxes is based on an estimated annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. | |||||||||
(a) Income Taxes | |||||||||
The Company recorded income tax (benefit) expense of $(362) and $28 for the three month periods ended September 30, 2013 and 2014, respectively. The Company’s effective rate for the three months ended September 30, 2013 differed from statutory rates primarily due to federal and state research and development credits and expenses not deductible for income tax reporting purposes. The Company’s effective tax rate for the three months ended September 30, 2014 differ from statutory rates primarily due to the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. | |||||||||
Income tax (benefit) expense for the years ended June 30, 2012, 2013 and 2014 consists of the following: | |||||||||
The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for a valuation allowance on a quarterly basis. It established a valuation allowance on all of its net deferred tax assets except for deferred tax liabilities associated with indefinite-lived intangible assets during fiscal 2014, given that the company determined that it was more likely than not that the Company would not recognize the benefits of its net operating loss carryforwards prior to their expiration. As of September 30, 2014, the Company had no unrecognized tax benefits. | |||||||||
Year ended June 30, | |||||||||
On September 13, 2013, the IRS issued final regulations and re-proposed regulations that provide guidance with respect to (i) the treatment of materials and supplies, (ii) capitalization of amounts paid to acquire or produce tangible property, (iii) the determination of whether an expenditure with respect to tangible property is a deductible repair or a capital expenditure, and (iv) dispositions of MACRS property. The final regulations will be effective for the fiscal year ending June 30, 2015. Management is reviewing the regulations, but does not believe there will be a material impact on the Company’s results of operations, financial position, or cash flows. | 2012 | 2013 | 2014 | ||||||
Current taxes | |||||||||
U.S. federal | $12 | $126 | ($125) | ||||||
State and local | 34 | 94 | 39 | ||||||
Deferred taxes: | |||||||||
U.S. federal | 738 | -516 | 160 | ||||||
State and local | 100 | -306 | 181 | ||||||
Total income tax (benefit) expense | $884 | ($602) | $255 | ||||||
(b) Tax Rate Reconciliation | |||||||||
Income tax (benefit) expense differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax income from continuing operations as a result of the following: | |||||||||
Year ended June 30, | |||||||||
2012 | 2013 | 2014 | |||||||
Income tax provision at statutory federal rate | $875 | $6 | ($2,331) | ||||||
Increase (reduction) in income taxes resulting from: | |||||||||
Research and development credit, net of federal income tax benefit | -173 | -650 | -189 | ||||||
Non-deductible expenses | 25 | 53 | 284 | ||||||
Change in valuation allowance | — | — | 2,878 | ||||||
State and local income taxes, net of federal income tax benefit | 157 | -11 | -387 | ||||||
$884 | ($602) | $255 | |||||||
(c) Components of Deferred Tax Assets and Liabilities | |||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2013 and 2014 are presented below. | |||||||||
Year ended June 30, | |||||||||
2013 | 2014 | ||||||||
Deferred tax assets: | |||||||||
Deferred rent | $438 | $569 | |||||||
Allowance for doubtful accounts | 46 | 48 | |||||||
Accrued expenses | 583 | 761 | |||||||
Stock-based compensation | 333 | 2,149 | |||||||
Net operating loss carryforwards | 359 | 1,641 | |||||||
Research and development credit | 832 | 1,116 | |||||||
AMT Credits | 138 | 11 | |||||||
Intangible assets | — | 5 | |||||||
Total deferred tax assets | 2,729 | 6,300 | |||||||
Valuation allowance | — | -2,878 | |||||||
Net deferred tax assets | 2,729 | 3,422 | |||||||
Deferred tax liabilities: | |||||||||
Research and development costs | -1,024 | -1,950 | |||||||
Prepaid expenses | -66 | -74 | |||||||
Depreciation | -1,306 | -1,406 | |||||||
Total deferred liabilities | -2,396 | -3,430 | |||||||
Net deferred tax asset (liability) | $333 | ($8) | |||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized through the generation of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. Taxable income (loss) for the years ended June 30, 2012, 2013 and 2014 was approximately $842, $1,941 and $(3,817), respectively, prior to utilization or establishment of net operating loss carryforwards. Based upon the same three year period pre-tax book income, the Company is in a three-year cumulative loss position. As a result of this and other assessments in the year ended June 30, 2014, management concluded that a full valuation allowance is required for all deferred tax assets and liabilities except for deferred tax liabilities associated with indefinite-lived intangible assets. | |||||||||
At June 30, 2014, the Company has net operating loss carryforwards for Federal income tax purposes of approximately $3,967 which are available to offset future Federal taxable income, if any, through 2034, excluding excess tax benefits from stock option exercises of approximately $331 which will be credited to additional paid-in capital when realized. The Company also has gross federal and state research and development tax credit carryforwards of approximately $1,116 which expire between 2017 and 2034. In addition, the Company has alternative minimum tax credit carryforwards of approximately $11, which are available to reduce future Federal regular income taxes, if any, over an indefinite period. | |||||||||
The Company had no unrecognized tax benefits as of June 30, 2012, 2013 and 2014, respectively. | |||||||||
The Company files income tax returns with the United States federal government and various state jurisdictions. Certain tax years remain open for federal and state tax reporting jurisdictions in which the Company does business due to net operating loss carryforwards and tax credits unutilized from such years or utilized in a period remaining open for audit under normal statute of limitations relating to income tax liabilities. The Company’s tax years ended June 30, 2008 to June 30, 2014 remain open for federal purposes. The Company’s tax returns filed in states in which it is required to do so remain open for a range of tax years including those ended June 30, 2008 to June 30, 2014 depending upon the jurisdiction and the applicable statute of limitations. | |||||||||
Stockholders_Equity_Deficit
Stockholders' Equity (Deficit) | 12 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity (Deficit) | ' |
Stockholders' Equity (Deficit) | ' |
(13) Stockholders’ Equity (Deficit) | |
Common Stock | |
Holders of common stock are entitled to one vote per share and to receive dividends. The holders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. Common stock was subordinate to the redeemable convertible preferred stock with respect to dividend rights and rights upon liquidation, winding up and dissolution of the Company. |
Redeemable_Convertible_Preferr
Redeemable Convertible Preferred Stock | 12 Months Ended |
Jun. 30, 2014 | |
Redeemable Convertible Preferred Stock | ' |
Redeemable Convertible Preferred Stock | ' |
(14) Redeemable Convertible Preferred Stock | |
Prior to its IPO, the Company had two series of Redeemable Convertible Preferred Stock, Series A and Series B. | |
Upon the closing of the IPO, the Series A and Series B Redeemable Convertible Preferred Stock automatically converted into 11,933 shares of the Company’s $0.001 par value common stock. |
Benefit_Plans
Benefit Plans | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||||||||||||||||||
Benefit Plans | ' | ' | ||||||||||||||||||||||
Benefit Plans | ' | ' | ||||||||||||||||||||||
(5) Benefit Plans | (15) Benefit Plans | |||||||||||||||||||||||
(a) Equity Incentive Plan | (a) Equity Incentive Plan | |||||||||||||||||||||||
The Company maintains a 2008 Equity Incentive Plan (the “2008 Plan”) and a 2014 Equity Incentive Plan (the “2014 Plan”) pursuant to which the Company has reserved 7,032 shares of its common stock for issuance to its employees, directors and non-employee third parties. The 2014 Plan serves as the successor to the 2008 plan and permits the granting of options to purchase common stock and other equity incentives at the discretion the compensation committee of the Company’s board of directors. No new awards will be issued under the 2008 Plan as of the effective date of the 2014 Plan. Outstanding awards under the 2008 Plan continue to be subject to the terms and conditions of the 2008 Plan. | The Company maintains a 2008 Equity Incentive Plan (the “2008 Plan”) and a 2014 Equity Incentive Plan (the ‘2014 Plan”) pursuant to which the Company has reserved 7,071 shares of its common stock for issuance to its employees, directors and non-employee third parties. The 2014 Plan serves as the successor to the 2008 plan and permits the granting of options to purchase common stock and other equity incentives at the discretion the compensation committee of the Company’s board of directors. No new awards will be issued under the 2008 Plan as of the effective date of the 2014 Plan. Outstanding awards under the 2008 Plan continue to be subject to the terms and conditions of the 2008 Plan. | |||||||||||||||||||||||
Under the 2008 and 2014 Plans, the exercise price of each option is not less than the fair value of a share of common stock on the grant date. As of September 30, 2014, the Company had 1,952 shares allocated to the 2014 Plan, but not yet issued or subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options; however, previously acquired shares may be reissued to satisfy future issuances. The options typically vest ratably over a three or four year period and expire 10 years from the grant date. Compensation expense for the fair value of the options at their grant date is recognized ratably over the vesting schedule. | Under the 2008 and 2014 Plans, the exercise price of each option is not less than the fair value of a share of common stock on the grant date. As of June 30, 2014, the Company had 2,581 shares allocated to the 2014 Plan, but not yet issued or subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options; however, previously acquired shares may be reissued to satisfy future issuances. The options typically vest ratably over a three or four year period and expire 10 years from the grant date. Compensation expense for the fair value of the options at their grant date is recognized ratably over the vesting schedule. | |||||||||||||||||||||||
Stock-based compensation expense related to stock options and the vesting of Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”) is included in the following line items in the accompanying unaudited consolidated statements of operations: | Stock-based compensation expense related to stock options and the vesting of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) is included in the following line items in the accompanying audited consolidated statements of operations: | |||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
September 30, | Year ended June 30, | |||||||||||||||||||||||
2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||||||||||
Cost of revenue — recurring | $ | — | $ | 348 | Cost of revenue - recurring | $— | $— | $496 | ||||||||||||||||
Cost of revenue — non-recurring | — | 291 | Cost of revenue – non-recurring | — | — | 424 | ||||||||||||||||||
Sales and marketing | — | 884 | Sales and marketing | — | — | 765 | ||||||||||||||||||
Research and development | — | 535 | Research and development | — | — | 615 | ||||||||||||||||||
General and administrative | 181 | 1,225 | General and administrative | 203 | 523 | 2,629 | ||||||||||||||||||
Total stock-based compensation | $ | 181 | $ | 3,283 | Total stock-based compensation | $203 | $523 | $4,929 | ||||||||||||||||
In addition, the Company capitalized $162 of stock compensation costs in its internal use software in the three month period ended September 30, 2014. No such amounts were capitalized in internal use software in the three month period ended September 30, 2013. | ||||||||||||||||||||||||
In addition, the Company capitalized $325 of stock compensation costs in its internal use software in the year ended June 30, 2014. No such amounts were capitalized in internal use software in years ended June 30, 2012 and 2013. | ||||||||||||||||||||||||
The Company values stock options using the Black-Scholes option-pricing model, which requires the input of subjective assumptions, including the risk-free rate, expected life, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for U.S. Treasury securities consistent with the expected term of the Company’s employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. The Company utilizes the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. The Company has a limited history of trading as a public company. Therefore, the expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options. The Company assumed no dividend yield because it does not expect to pay dividends in the near future, which is consistent with the Company’s history of not paying dividends. | ||||||||||||||||||||||||
The Company values stock options using the Black-Scholes option-pricing model, which requires the input of subjective assumptions, including the risk-free rate, expected life, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for U.S. Treasury securities consistent with the expected term of the Company’s employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. The Company utilizes the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. The Company has a limited history of trading as a public company. Therefore, the expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options. The Company assumed no dividend yield because it does not expect to pay dividends in the near future, which is consistent with the Company’s history of not paying dividends. | ||||||||||||||||||||||||
The following table summarizes the assumptions used for estimating the fair value of stock options granted for the three months ended September 30: | ||||||||||||||||||||||||
The following table summarizes the assumptions used for estimating the fair value of stock options granted for the years ended June 30: | ||||||||||||||||||||||||
Period ended | ||||||||||||||||||||||||
September 30, | Year ended June 30, | |||||||||||||||||||||||
2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||||||||||
Valuation assumptions: | Valuation assumptions: | |||||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | Expected dividend yield | N/A—no grants | 0% | 0% | ||||||||||||||||
Expected volatility | 29.5 | % | 43.9 | % | Expected volatility | N/A—no grants | 30.70% | 29.5% - 44.5% | ||||||||||||||||
Expected term (years) | 4.0 | 6.25 | Expected term (years) | N/A—no grants | 4 | 4.0 - 6.0 | ||||||||||||||||||
Risk-free interest rate | 0.5 | % | 1.91 | % | Risk-free interest rate | N/A—no grants | 0.61% | 0.52% - 1.94% | ||||||||||||||||
The following table summarizes changes during the quarter in the number of shares available for grant under our equity incentive plans: | Stock option activity during the periods indicated is as follows: | |||||||||||||||||||||||
Number of | Outstanding Options | |||||||||||||||||||||||
Shares | Shares | Number of | Weighted | Weighted | Aggregate | |||||||||||||||||||
Available for grant at July 1, 2014 | 2,581 | Available for | shares | average | average | intrinsic | ||||||||||||||||||
RSU’s granted | (379 | ) | Grant | exercise | remaining | value | ||||||||||||||||||
Options granted | (322 | ) | price | contractual | ||||||||||||||||||||
Forfeitures | 97 | term | ||||||||||||||||||||||
Shares removed | (25 | ) | Balance at June 30, 2013 | 812 | 1,859 | $3.25 | 8.22 | $7,028 | ||||||||||||||||
Available for grant at September 30, 2014 | 1,952 | Additional shares authorized, net | 4,406 | — | ||||||||||||||||||||
RSU’s granted | -108 | — | ||||||||||||||||||||||
Shares removed represents forfeitures of grants made under the 2008 Plan. As noted above, no new awards will be issued under this plan. | Options granted | -2,582 | 2,582 | 15.01 | 9.58 | |||||||||||||||||||
Options forfeited | 53 | -53 | 17 | — | ||||||||||||||||||||
The table below presents stock option activity during the three months ended September 30, 2014: | Exercised | — | — | — | — | |||||||||||||||||||
Balance at June 30, 2014 | 2,581 | 4,388 | $10.00 | 8.58 | $51,017 | |||||||||||||||||||
Outstanding Options | Options exercisable at June 30, 2014 | 1,083 | $2.29 | 6.65 | $20,947 | |||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | Options vested and expected to vest at June 30, 2014 | 3,853 | $10.17 | 8.53 | $44,162 | ||||||||||||||||
shares | average | average | intrinsic | |||||||||||||||||||||
exercise | remaining | value | The weighted average grant date fair value of options granted during the years ended June 30, 2013 and 2014 was $1.22 and $6.39, respectively. There were no options granted in fiscal 2012. The total intrinsic value of options exercised during the years ended June 30, 2012 and 2013 was $241 and $87, respectively. There were no options exercised in the year ended June 30, 2014. | |||||||||||||||||||||
price | contractual | |||||||||||||||||||||||
term | The Company may also grant RSAs and RSUs under the Plan with terms determined at the discretion of the Compensation Committee of the Company’s Board of Directors. Prior to the IPO, the Company had 269 RSAs outstanding to certain employees. The RSAs vested and were issued as common shares as a result of the satisfaction of the vesting criteria upon the completion of the IPO in March 2014 at which time the Company recorded compensation expense in the amount of $351 which is included in the compensation expense recognition table above. Concurrent with the IPO in March 2014, the Company granted 108 RSUs primarily to certain employees and members of its Board of Directors of which 93 vest over a period of six months commencing on the date of the IPO, 6 vested immediately, 4 vest one year from the date of the IPO, and 5 vest two years from the date of the IPO. Compensation expense related to these newly issued RSUs is reflected in general and administrative expense, included in the compensation expense table above, is based on the fair value of the instruments on the date of grant and is recognized in the period between the date of grant and the date of vesting as the vesting is based on the passage of time. In addition, approximately 2 of the 6 RSUs that vested immediately were issued to consultants that provided professional services directly related to the IPO and, thus, the Company recognized the $30 cost associated with those RSUs as an offering cost offsetting the net proceeds from the IPO. | |||||||||||||||||||||||
Balance at July 1, 2014 | 4,388 | $ | 10 | 8.58 | $ | 51,017 | ||||||||||||||||||
Options granted | 322 | 24.8 | At June 30, 2014, there was $11,231 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option and restricted stock awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.62 years. | |||||||||||||||||||||
Options forfeited | (97 | ) | 14.29 | |||||||||||||||||||||
Options exercised | (13 | ) | 4.87 | (b) 401(k) Plan | ||||||||||||||||||||
Balance at September 30, 2014 | 4,600 | $ | 10.96 | 8.4 | $ | 41,628 | ||||||||||||||||||
Options exercisable at September 30, 2014 | 1,430 | $ | 3.11 | 6.79 | $ | 23,656 | The Company maintains a 401(k) plan with a safe harbor matching provision that covers all eligible employees. The Company matches 50% of the employees’ contributions up to 6% of their gross pay. Contributions were approximately $514, $720 and $1,122 for the years ended June 30, 2012, 2013 and 2014, respectively. | |||||||||||||||||
Options vested and expected to vest at September 30, 2014 | 4,358 | $ | 10.63 | 8.34 | $ | 40,770 | ||||||||||||||||||
The weighted average grant date fair value of options granted during the three-month periods ended September 30, 2013 and 2014 was $1.71, and $11.15, respectively. The total intrinsic value of options exercised during the three month period ended September 30, 2014 was $224. There were no options exercised in the three month period ended September 30, 2013. At September 30, 2014, there was $12,337 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.55 years. | ||||||||||||||||||||||||
The Company may also grant RSAs and RSUs under the 2014 Plan with terms determined at the discretion of the Compensation Committee of the Company’s Board of Directors. The following table represents restricted stock unit activity during the three months ended September 30, 2014: | ||||||||||||||||||||||||
Units | Weighted | |||||||||||||||||||||||
average | ||||||||||||||||||||||||
grant date | ||||||||||||||||||||||||
fair value | ||||||||||||||||||||||||
RSU balance at July 1, 2014 | 102 | $ | 17 | |||||||||||||||||||||
RSUs granted | 379 | 24.75 | ||||||||||||||||||||||
RSUs vested | — | — | ||||||||||||||||||||||
RSUs cancelled/forfeited | (1 | ) | 17 | |||||||||||||||||||||
RSU balance at September 30, 2014 | 480 | $ | 23.11 | |||||||||||||||||||||
RSUs expected to vest at September 30, 2014 | 440 | $ | 22.96 | |||||||||||||||||||||
At September 30, 2014, there was $7,818 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.20 years. | ||||||||||||||||||||||||
(b) Employee Stock Purchase Plan | ||||||||||||||||||||||||
The Company’s 2014 Employee Stock Purchase Plan (“ESPP”) was adopted by the Board of Directors and approved by the stockholders on February 6, 2014 and was effective upon completion of the Company’s initial public offering. | ||||||||||||||||||||||||
Under the Company’s ESPP, the Company can grant stock purchase rights to all eligible employees during specific offering periods not to exceed twenty-seven months. Each offering period will begin on the first trading day on or after May 16 and November 16 of each year, effective after the first offering period after the Company’s initial public offering (“IPO”). Shares are purchased through employees’ payroll deductions, up to a maximum of 10% of employees’ compensation for each purchase period, at a purchase price equal to 85% of the lesser of the fair market value of the Company’s common stock at the first trading day of the applicable offering period or the purchase date. Participants may purchase up to $25 worth of common stock or 2 shares of common stock in any one year. The ESPP is considered compensatory and results in compensation expense. | ||||||||||||||||||||||||
A total of one-million shares of common stock have been reserved for future issuance under the ESPP, none of which have been issued as of September, 2014 as the initial offering period has not been completed. The number of shares of common stock reserved for issuance under the ESPP will increase automatically each year, beginning on January 1, 2015 and continuing through and including January 1, 2024. The number of shares added each year will be equal to the lesser of (a) 400, (b) seventy-five one hundredths percent (0.75%) of the number of shares of common stock of the Company issued and outstanding on the immediately preceding December 31, or (c) an amount determined by the Company’s board of directors. | ||||||||||||||||||||||||
The Company commenced its initial post-IPO ESPP four month offering period on July 16, 2014. The Company recorded compensation expense attributable to the ESPP of $130 for the three-month period ended September 30, 2014 which is included in the summary of stock-based compensation expense above. The grant date fair value of the ESPP offering period was estimated using the following weighted average assumptions: | ||||||||||||||||||||||||
Period ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
Valuation assumptions: | ||||||||||||||||||||||||
Expected dividend yield | N/A | 0 | % | |||||||||||||||||||||
Expected volatility | N/A | 41.7 | % | |||||||||||||||||||||
Expected term (years) | N/A | 0.3 | ||||||||||||||||||||||
Risk-free interest rate | N/A | 0.04 | % | |||||||||||||||||||||
(c) 401(k) Plan | ||||||||||||||||||||||||
The Company maintains a 401(k) plan with a safe harbor matching provision that covers all eligible employees. The Company matches 50% of the employees’ contributions up to 6% of their gross pay. Contributions were approximately $248 and $382 for the three months ended September 30, 2013 and 2014. | ||||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Commitments and Contingencies | ' | ' |
Commitments and Contingencies | ' | ' |
(6) Commitments and Contingencies | (16) Commitments and Contingencies | |
Reseller Agreements | (a) Employment Agreements | |
The Company had agreements with two organizations that sell the Company’s offerings and services in defined areas of the country. The Company exercised its right to terminate the first reseller agreement and acquired certain assets of the reseller in May 2014 as described in Note 5 of the audited consolidated financial statements and related notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2014. The Company paid the first reseller $614 during the three months ended September 30, 2013, under the reseller agreement and paid the first reseller $2,385 during the three months ended September 30, 2014 under the terms of the asset purchase agreement signed at closing in May 2014. | The Company has employment agreements with certain of its key officers. The agreements allow for minimum annual compensation increases, participation in equity incentive plans and bonuses for annual performance as well as certain change of control events as defined in the agreements. | |
The initial term of the second reseller agreement commenced in June 2009 and is set to expire in June 2016 unless renewed or terminated. The second reseller agreement provided that the reseller may terminate the agreement by providing nine months’ prior notice or upon an initial public offering by the Company. The Company amended this agreement in December of 2013 to provide that the reseller may not give a nine-month termination notice until after the earlier of (i) six months following the closing of an initial public offering by the Company or (ii) December 31, 2014. In addition, the Company, but not the reseller, has the right to terminate the agreement at any time. If a termination were to occur, the purchase price of the assets would be equal to 3.3 times the net revenues of the reseller for the 12 months preceding the termination effective date. The Company paid the second reseller $492 and $635 during the three-month periods ended September 30, 2013 and 2014, respectively. | (b) Litigation | |
From time to time, the Company is subject to litigation arising in the ordinary course of business. Many of these proceedings are covered in whole or in part by insurance. In the opinion of the Company’s management, the ultimate disposition of any matters currently outstanding or threatened will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity. | ||
(c) Reseller Agreements | ||
The Company had agreements with two resellers, one of which was terminated in March 2014. The initial term of the first reseller agreement commenced in February 2007 and was set to expire in February 2016 unless renewed. The initial term of the second reseller agreement commenced in June 2009 and is set to expire in June 2016 unless renewed. Each of the Company’s reseller agreements provides that the Company is required upon a termination of the agreement to acquire the assets of the reseller. | ||
The first reseller agreement provided that either party may terminate the agreement by electing not to renew the agreement beyond its original term. The Company, but not the reseller, also had the right to terminate the agreement at any time following the completion of an initial public offering by the Company. The Company exercised its right to terminate the agreement in April 2014 and closed on the purchase of the reseller’s client base in May 2014. See Note 5 for further information. The Company paid the first reseller $1,693, $2,377 and $2,495 during fiscal years 2012, 2013 and 2014, respectively. | ||
The second reseller agreement provided that the reseller may terminate the agreement by providing nine months’ prior notice or upon an initial public offering by the Company. The Company amended this agreement in December of 2013 to provide that the reseller may not give a nine-month termination notice until after the earlier of (i) six months following the closing of an initial public offering by the Company or (ii) December 31, 2014. In addition, the Company, but not the reseller, now has the right to terminate the agreement at any time after the date that is six months following the completion of an initial public offering by the Company. If a termination were to occur, the purchase price of the resellers assets to be acquired would be equal to 3.3 times the net revenues of the reseller for the 12 months preceding the termination effective date. The Company paid the second reseller $1,324, $1,783 and $2,081 during fiscal years 2012, 2013 and 2014, respectively. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Earnings Per Share | ' | ' | ||||||||||||||
Earnings Per Share | ' | ' | ||||||||||||||
(7) Earnings Per Share | (17) Earnings Per Share | |||||||||||||||
For the periods presented prior to the Company’s IPO, basic and diluted net loss per common share is presented in conformity with the two-class method required for participating securities. Concurrently with the closing of the Company’s IPO on March 24, 2014, all shares of outstanding Preferred Stock automatically converted into 11,933 shares of the Company’s common stock. Following the date of the IPO, the two-class method was no longer required as the Company has one class of securities issued and outstanding. | For the periods presented prior to the Company’s IPO, basic and diluted net income (loss) per common share is presented in conformity with the two-class method required for participating securities. Concurrently with the closing of the Company’s IPO on March 24, 2014, all shares of outstanding Preferred Stock automatically converted into 11,933 shares of the Company’s common stock. Following the date of the IPO, the two-class method was no longer required as the Company has one class of securities issued and outstanding. | |||||||||||||||
Prior to the conversion of the Redeemable Convertible Preferred Stock, holders of Series A and Series B Preferred Stock each were entitled to liquidation preferences payable prior and in preference to any dividends on any shares of the Company’s common stock. In the event a dividend was paid on common stock, the holders of Preferred Stock were entitled to a proportionate share of any such dividend as if they were holders of common stock (on an as-if converted basis). The holders of the Company’s Preferred Stock did not have a contractual obligation to share in the losses of the Company. The Company considered its Preferred Stock to be participating securities and, in accordance with the two-class method, earnings allocated to Preferred Stock and the related number of outstanding shares of Preferred Stock have been excluded from the computation of basic and diluted net income (loss) per common share. | Prior to the conversion of the Redeemable Convertible Preferred Stock, holders of Series A and Series B Preferred Stock each were entitled to liquidation preferences payable prior and in preference to any dividends on any shares of the Company’s common stock. In the event a dividend was paid on common stock, the holders of Preferred Stock were entitled to a proportionate share of any such dividend as if they were holders of common stock (on an as-if converted basis). The holders of the Company’s Preferred Stock did not have a contractual obligation to share in the losses of the Company. The Company considered its Preferred Stock to be participating securities and, in accordance with the two-class method, earnings allocated to Preferred Stock and the related number of outstanding shares of Preferred Stock have been excluded from the computation of basic and diluted net income (loss) per common share. | |||||||||||||||
Under the two-class method, net loss attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income less current period Redeemable Convertible Preferred Stock cumulative dividends, between common stock and Redeemable Convertible Preferred Stock. In computing diluted net loss attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. | Under the two-class method, net income (loss) attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income less current period Redeemable Convertible Preferred Stock cumulative dividends, between common stock and Redeemable Convertible Preferred Stock. In computing diluted net income (loss) attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. | |||||||||||||||
Basic net loss per common share is computed using the weighted-average number of common shares outstanding during the period. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends have been declared but were not obligated to participate in any losses generated by the Company, basic net income per share is computed using the weighted-average number of common shares outstanding during the period plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis. | Basic net loss per common share is computed using the weighted-average number of common shares outstanding during the period. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends have been declared but were not obligated to participate in any losses generated by the Company, basic net income per share is computed using the weighted-average number of common shares outstanding during the period plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis. | |||||||||||||||
Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period and, if dilutive, potential common shares outstanding during the period. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends be declared but were not obligated to participate in any losses generated by the Company, diluted net income per share is computed using the weighted-average number of common shares plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method. | Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period and, if dilutive, potential common shares outstanding during the period. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends be declared but were not obligated to participate in any losses generated by the Company, diluted net income per share is computed using the weighted-average number of common shares plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method. | |||||||||||||||
The following table presents the calculation of basic and diluted net loss per share: | The following table presents the calculation of basic and diluted net income (loss) per share: | |||||||||||||||
Three months ended | Year ended June 30, | |||||||||||||||
September 30, | 2012 | 2013 | 2014 | |||||||||||||
2013 | 2014 | Basic net income (loss) per share: | ||||||||||||||
Basic net loss per share: | Numerator: | |||||||||||||||
Numerator: | Net Income (Loss) | $1,688 | $617 | ($7,110) | ||||||||||||
Net Loss | $ | (44 | ) | $ | (4,875 | ) | Less: Preferred dividend rights attributable to participating securities | -690 | -2,908 | -2,282 | ||||||
Less: Preferred dividend rights attributable to participating securities | (781 | ) | — | Net income (loss) attributable to common stockholders | $998 | ($2,291) | ($9,392) | |||||||||
Net loss attributable to common stockholders | $ | (825 | ) | $ | (4,875 | ) | ||||||||||
Denominator: | ||||||||||||||||
Denominator: | Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | |||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders: | Basic (in thousands) | 43,873 | 31,988 | 36,707 | ||||||||||||
Basic (in thousands) | 31,988 | 49,566 | Weighted-average effect of potentially dilutive shares: | |||||||||||||
Weighted-average effect of potentially dilutive shares: | Employee stock options (in thousands) | 444 | — | — | ||||||||||||
Employee stock options and restricted stock units (in thousands) | — | — | Diluted (in thousands) | 44,317 | 31,988 | 36,707 | ||||||||||
Diluted (in thousands) | 31,988 | 49,566 | Net income (loss) per share attributable to common stockholders: | |||||||||||||
Basic | $0.02 | ($0.07) | ($0.26) | |||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.03 | ) | $ | (0.10 | ) | Diluted | $0.02 | ($0.07) | ($0.26) | ||||||
The following table summarizes the outstanding employee stock options, restricted stock units, shares purchasable via the employee stock purchase plan as of the balance sheet date, and redeemable convertible preferred stock that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: | The following table summarizes the outstanding employee stock options, restricted stock units, and redeemable convertible preferred stock that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: | |||||||||||||||
Three months ended | Year ended June 30, 2014 | |||||||||||||||
September 30, | 2012 | 2013 | 2014 | |||||||||||||
2013 | 2014 | |||||||||||||||
Redeemable convertible preferred stock | — | 11,933 | — | |||||||||||||
Redeemable convertible preferred stock | 11,933 | — | Restricted stock units | — | — | 102 | ||||||||||
Restricted stock units | — | 480 | Employee stock options | — | 1,859 | 4,388 | ||||||||||
Employee stock purchase plan shares | — | 27 | Total | — | 13,792 | 4,490 | ||||||||||
Employee stock options | 2,376 | 4,600 | ||||||||||||||
Total | 14,309 | 5,107 | ||||||||||||||
Restricted Stock Awards were excluded from both basic and diluted earnings per share calculations for the years ended June 30, 2012 and 2013 as the vesting conditions had not been met. | ||||||||||||||||
RSAs were excluded from both basic and diluted earnings per share calculations for the three month period ended September 30, 2013 as the vesting conditions had not been met as of that date. | ||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Related Party Transactions | ' | ' |
Related Party Transactions | ' | ' |
(9) Related Party Transactions | (18) Related Party Transactions | |
The Company entered into a Memorandum of Understanding (“Memorandum”) and a Non-Competition and Non-Solicitation Agreement (“Non-Compete”) with its Chairman Steve Sarowitz and Blue Marble, a separate legal entity owned by Mr. Sarowitz in June 2014. | Blue Marble | |
The Memorandum established the ongoing market based terms between the Company and Blue Marble for services provided to or on behalf of each other. In addition, Paylocity obtained a right of first refusal on the sale of Blue Marble, an option exercisable starting three years from the date of the Memorandum to purchase Blue Marble, and the right of first refusal to purchase any acquisition target of Blue Marble outside the United States of America, all at fair market value. The Memorandum requires Blue Marble to obtain written consent from Paylocity should Blue Marble intend to acquire an entity that provides or partners with other service providers to provide products and services to clients located in the United States of America. The Company provides no management guidance to the entity, has no equity interest in the entity, no obligation or intention to fund any of the entity’s operational shortfalls, and no right to any operational surpluses generated by the entity. | The Company entered into a Memorandum of Understanding (“Memorandum”) and a Non-Competition and Non-Solicitation Agreement (“Non-Compete”) with its Chairman Steve Sarowitz and Blue Marble, a separate legal entity owned by Mr. Sarowitz, in June 2014. | |
The Non-Compete agreement outlines the permissible activities and ongoing responsibilities of Mr. Sarowitz and Blue Marble including an obligation not to compete with services offered by Paylocity and an obligation not to solicit employees of Paylocity. | As stipulated in the Memorandum, Mr. Sarowitz resigned as an employee of Paylocity but continues to serve the Company as the non-executive Chairman of the board of directors. The Memorandum establishes the ongoing market based terms between the Company and Blue Marble for services provided to or on behalf of each other. In addition, Paylocity obtained a right of first refusal on the sale of Blue Marble, an option exercisable starting three years from the date of the Memorandum to purchase Blue Marble, and the right of first refusal to purchase any acquisition target of Blue Marble outside the United States of America, all at fair market value. The Memorandum requires Blue Marble to obtain written consent from Paylocity should Blue Marble intend to acquire an entity that provides or partners with other service providers to provide products and services to clients located in the United States of America. The Company provides no management guidance to the entity, has no equity interest in the entity, no obligation or intention to fund any of the entity’s operational shortfalls, and no right to any operational surpluses generated by the entity. | |
The Non-Compete agreement outlines the permissible activities and ongoing responsibilities of Mr. Sarowitz and Blue Marble including an obligation not to compete with services offered by Paylocity and an obligation not to solicit employees of Paylocity. | ||
Elite Sales | ||
The Company purchased sales leads from an entity owned by one of the stockholders in the amount of approximately $404, $893 and $231 for the years ended June 30, 2012, 2013 and 2014, respectively. The Company provided no management guidance to the entity and had no equity interest in the entity, had no obligation or intention to fund any of the entity’s operational shortfalls, and had no right to any operational surpluses generated by the entity. Accounts payable to this entity were approximately $65 and $0 as of June 30, 2013 and 2014, respectively. On October 14, 2013, the Company hired substantially all of the employees of the sales lead generation entity described above. | ||
Principal Stockholder Contribution for Cash Bonuses | ||
In May 2014, the Company’s Chairman paid approximately $1,052 to the Company for the express purpose of paying a cash bonus to long-term employees in recognition of their past service. The Company recorded a capital contribution to additional paid-in capital for the amount received from the Chairman and compensation expense for the amount paid to employees, accordingly. The Company paid the employer portion of employment taxes and will receive any income tax related benefits from the payments to employees and resulting taxes. |
Subsequent_Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Subsequent Events | ' | ' |
Subsequent Events | ' | ' |
(19) Subsequent Events | ||
(10) Subsequent Events | ||
The Company has evaluated subsequent events from the balance sheet date through August 22, 2014, the date at which the financial statements were available to be issued. | ||
The Company has evaluated subsequent events from the balance sheet date through November 7, 2014, the date at which the financial statements were available to be issued and has determined that there are no such events that would have a material impact on the financial statements. | ||
In August 2014, the Board of Directors granted restricted stock units for 340,875 shares of common stock which vest annually over four years and stock options to purchase 321,700 shares of commons stock at a weighted-average exercise price of $24.80 per share which vest over four years. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Selected Quarterly Financial Data (unaudited) | ' | ||||||||
Selected Quarterly Financial Data (unaudited) | ' | ||||||||
(20) Selected Quarterly Financial Data (unaudited) | |||||||||
The following tables set forth selected unaudited quarterly statements of operations data for each of the eight quarters in the years ended June 30, 2013 and 2014. | |||||||||
Quarter Ended | |||||||||
September 30, | December 31, | March 31, 2013 | June 30, 2013 | ||||||
2012 | 2012 | ||||||||
Consolidated States of Operations Data | |||||||||
Revenues | $15,826 | $17,200 | $24,006 | $20,262 | |||||
Gross profit | $7,307 | $7,663 | $13,272 | $9,386 | |||||
Operating income (loss) | ($616) | ($1,088) | $2,604 | ($869) | |||||
Net income (loss) | ($405) | ($627) | $2,021 | ($372) | |||||
Net income (loss) per share attributable to common stockholders, basic and diluted: | ($0.04) | ($0.04) | $0.03 | ($0.03) | |||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | |||||||||
Basic | 31,988 | 31,988 | 43,921 | 31,988 | |||||
Diluted | 31,988 | 31,988 | 44,407 | 31,988 | |||||
Quarter Ended | |||||||||
September 30, | December 31, | March 31, 2014 | June 30, 2014 | ||||||
2013 | 2013 | ||||||||
Consolidated States of Operations Data | |||||||||
Revenues | $22,369 | $23,905 | $33,766 | $28,647 | |||||
Gross profit | $10,622 | $10,587 | $18,841 | $13,543 | |||||
Operating income (loss) | ($434) | ($2,411) | $2,133 | ($6,306) | |||||
Net income (loss) | ($44) | ($1,512) | $1,150 | ($6,704) | |||||
Net income (loss) per share attributable to common stockholders, basic and diluted: | ($0.03) | ($0.07) | $0.01 | -0.14 | |||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | |||||||||
Basic | 31,988 | 31,988 | 44,360 | 49,564 | |||||
Diluted | 31,988 | 31,988 | 44,870 | 49,564 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||
Summary of Significant Accounting Policies | ' | ' | ||||||
Basis of Presentation, Consolidation, and Use of Estimates | ' | ' | ||||||
(a) Basis of Presentation, Consolidation, and Use of Estimates | ||||||||
The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). | ||||||||
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, software developed for internal use, valuation and useful lives of long-lived assets, definite-lived intangibles, goodwill, stock-based compensation, valuation of net deferred income tax assets and the best estimate of selling price for revenue recognition purposes. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. | ||||||||
The consolidated financial statements reflect the financial position and operating results of Paylocity Holding Corporation and include its wholly-owned subsidiary Paylocity Corporation. Intercompany accounts and transactions have been eliminated in consolidation. | ||||||||
Concentrations of Risk | ' | ' | ||||||
(b) Concentrations of Risk | ||||||||
The Company regularly maintains cash balances that exceed Federal Depository Insurance Corporation limits. No individual client represents 10% or more of total revenues. For all periods presented, 100% of total revenues were generated by clients in the United States. | ||||||||
Cash and Cash Equivalents | ' | ' | ||||||
(c) Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | ||||||||
Accounts Receivable | ' | ' | ||||||
(d) Accounts Receivable | ||||||||
Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the statements of cash flows. The Company maintains an allowance for doubtful accounts reflecting estimated potential losses in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our clients’ financial conditions, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Company reviews its allowance for doubtful accounts quarterly. Past due balances over 60 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all commercially reasonable means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. | ||||||||
Activity in the allowance for doubtful accounts was as follows: | ||||||||
For the Years Ended June 30, | ||||||||
2012 | 2013 | 2014 | ||||||
Balance at the beginning of the year | $80 | $114 | $118 | |||||
Charged to expense | 60 | 60 | 62 | |||||
Write-offs | -26 | -56 | -54 | |||||
Balance at the end of the year | $114 | $118 | $126 | |||||
Prepaid expenses and other assets | ' | ' | ||||||
(e) Prepaid expenses and other assets | ||||||||
Prepaid expenses and other current assets consist of office space security deposits, deposits with vendors, prepaid licensing fees, supplies, and time clocks available for sale or lease. | ||||||||
Property and Equipment and Long-Lived Assets | ' | ' | ||||||
(f) Property and Equipment and Long-Lived Assets | ||||||||
Property and equipment are stated at cost. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets, generally three to seven years for most classes of assets, or over the term of the related lease for leasehold improvements. | ||||||||
Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. | ||||||||
Internal-Use Software | ' | ' | ||||||
(g) Internal-Use Software | ||||||||
The Company applies ASC 350-40, Intangibles—Goodwill and Other—Internal-Use Software, to the accounting for costs of internal-use software. Software development costs are capitalized when application development begins, it is probable that the project will be completed, and the software will be used as intended. Costs associated with preliminary project stage activities, training, maintenance and all other post implementation stage activities are expensed as incurred. The Company also capitalizes certain costs related to specific upgrades and enhancements when it is probable the expenditures will result in significant additional functionality. The capitalization policy provides for the capitalization of certain payroll costs for employees who are directly associated with developing internal-use software as well as certain external direct costs. Capitalized employee costs are limited to the time directly spent on such projects. | ||||||||
Capitalized internal-use software costs are amortized on a straight-line basis over the estimated useful lives, generally 18 to 24 months, depending on the expected life of the application enhancement. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. | ||||||||
Goodwill and other intangible assets, net of accumulated amortization | ' | ' | ||||||
(h) Goodwill and other intangible assets, net of accumulated amortization | ||||||||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. As described in Note 5, the Company has recorded goodwill in connection with the acquisition of BFKMS, Inc. Goodwill is not amortized, but instead is tested for impairment at least annually. ASU 2011-08, Testing Goodwill for Impairment provides an entity the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step impairment test. If it is the case that the estimated fair value of a reporting unit is less than its carrying amount, including goodwill, the two-step goodwill impairment test is required. Otherwise no further analysis is required. | ||||||||
If the two-step goodwill impairment test is required, first the fair value of the reporting unit is compared with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the Company must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. | ||||||||
The Company will perform its annual impairment review of goodwill in its fiscal fourth quarter and when a triggering event occurs between annual impairment tests. However, given that the Company did not have recorded goodwill until its fiscal fourth quarter of 2014, no impairment tests were required to be completed. | ||||||||
Intangible assets are comprised primarily of client list acquisitions and are reported net of accumulated amortization on the Consolidated Balance Sheets. Client relationships use the straight-line method of amortization over an accelerated nine year time frame, while the non-solicitation agreement uses the straight-line method of amortization over the three year life of the agreement. The Company tests intangible assets for potential impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. | ||||||||
Deferred Rent | ' | ' | ||||||
(i) Deferred Rent | ||||||||
The Company has operating lease agreements for its office space, which contain provisions for future rent increases, periods of rent abatement and build-out allowances. The Company records monthly rent expense for each lease equal to the total payments due over the lease term, divided by the number of months of the lease term. Build-out allowances are recorded as part of leasehold improvements and the incentive is amortized over the lease term against depreciation. The difference between recorded rent expense and the amount paid is reflected as “Deferred Rent” in the accompanying balance sheets. | ||||||||
Income Taxes | ' | ' | ||||||
(c) Income Taxes | (j) Income Taxes | |||||||
Differences in the normal relationship between the income tax expense (benefit) and pre-tax income (loss) materially result from the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. | Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |||||||
The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Accordingly, the impact of the American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013, on deferred tax assets and liabilities and current taxes for the last six months of the fiscal year ended June 30, 2012 was recognized in the year ended June 30, 2013. Research and development tax credits are recognized using the flow-through method in the year the credit arises. | ||||||||
Valuation allowances are provided when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Significant management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company is required to consider all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income among other items, in determining whether a full or partial release of its valuation allowance is required. The Company is also required to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. | ||||||||
The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties as an element of income tax expense. | ||||||||
Revenue Recognition | ' | ' | ||||||
(k) Revenue Recognition | ||||||||
The Company recognizes revenue in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 605-25, Revenue Recognition—Multiple Element Arrangements, Accounting Standards Update No. 2009-13, Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”), and Staff Accounting Bulletin 104, Revenue Recognition. Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the fee is fixed or determinable and collection of the revenue is probable. | ||||||||
The Company derives its revenue predominantly from recurring fees and non-recurring service fees. Recurring fees are collected under agreements for payroll, timekeeping, HR-related cloud-based computing services and monthly time clock rentals, all of which are generally cancellable by the client on 60 days’ notice or less. Non-recurring service fees consist mainly of implementation and custom reporting services. Such fees are billed to clients and revenue is recorded upon completion of the service. The Company’s agreements do not include general rights of return and do not provide clients with the right to take possession of the software supporting the services being provided. As such, the agreements are accounted for as service contracts. | ||||||||
Interest income collected on funds held for clients is recognized in recurring revenues when earned as the collection, holding and remittance of these funds are critical components of providing these services. | ||||||||
Most multiple-element arrangements include a short implementation services phase which involves establishing the client within and loading data into the Company’s cloud-based applications. Such activities are performed by either the Company or a third party vendor. Major recurring fees included in multiple-element arrangements include: | ||||||||
· Payroll processing and related services, including payroll reporting and tax filing services delivered on a weekly, biweekly, semi-monthly, or monthly basis depending upon the payroll frequency of the client and on an annual basis if a client selects W-2 preparation and processing services, | ||||||||
· Time and attendance reporting services, including time clock rentals, delivered on a monthly basis, and | ||||||||
· Cloud-based HR software solutions, including employee administration and benefits enrollment and administration, delivered on a monthly basis. | ||||||||
For each agreement, the Company evaluates whether the individual deliverables qualify as separate units of accounting. If one or more of the deliverables does not have standalone value upon delivery, which is typical of the payroll and human capital management (“HCM”) services our customers contract for, the deliverables that do not have standalone value are generally combined and treated as a single unit of accounting by frequency of occurrence for the product category involved such as biweekly payroll or monthly timekeeping services. Revenues for arrangements treated as a single unit of accounting are generally recognized within the same month that the services are rendered given that the agreements are cancellable with 60 days’ or less notice. | ||||||||
In determining whether implementation services can be accounted for separately from recurring revenues, the Company considers the nature of the implementation services and the availability of the implementation services from other vendors. The Company was able to establish standalone value for implementation activities based on the activity of third-party vendors that perform these services and accounts for such implementation services separate from the recurring revenues. | ||||||||
If the recurring services have standalone value upon delivery, the Company accounts for each separately and revenues are recognized as services are delivered with allocation of consideration based on the relative selling price method as established in ASU 2009-13. That method requires the selling price of each element in a multiple-deliverable arrangement to be based on, in descending order: (i) vendor specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of fair value (“TPE”) or (iii) management’s best estimate of the selling price (“BESP”). | ||||||||
The Company is not able to establish VSOE because the deliverables are sold across an insufficiently narrow range of prices on a stand-alone basis and is also not able to establish TPE because no third-party offerings are reasonably comparable to the Company’s offerings. The Company thus established its BESP by service offering, requiring the use of significant estimates and judgment. The Company considers numerous factors, including the nature of the deliverables themselves; the geography of the sale; and pricing and discounting practices utilized by the Company’s sales force. Arrangement consideration is allocated to each deliverable based on the established BESP and subject to the limitation that because the arrangements are cancellable with 60 days’ or less notice, recurring revenue is not allocated to any deliverable until the consideration has been earned, typically with each payroll cycle or monthly, depending on the service. | ||||||||
Revenues generated from sales through partners or utilizing partner services are recognized in accordance with the appropriate accounting guidance of Accounting Standards Codification 605-45, Principal Agent Considerations. The Company reports revenue generated through partners or utilizing partner services at the gross amount billed to clients when (i) the Company is the primary obligor, (ii) the Company has latitude to establish the price charged and (iii) the Company bears the credit risk in the transaction. | ||||||||
Sales taxes collected from clients and remitted to governmental authorities where applicable are accounted for on a net basis and therefore are excluded from revenues in the statements of operations. | ||||||||
Cost of Revenues | ' | ' | ||||||
(l) Cost of Revenues | ||||||||
Cost of revenues consists primarily of the cost of recurring revenues and implementation services which are expensed when incurred. Cost of revenues for recurring revenues consists primarily of costs to provide recurring services and support to our clients, and includes amortization of capitalized software. Cost of revenues for implementation services and other consists primarily of costs to provide implementation services and costs related to sales of payroll-related forms and time clocks. | ||||||||
Advertising | ' | ' | ||||||
(m) Advertising | ||||||||
Advertising costs are expensed as incurred. Advertising costs amounted to $32, $27 and $24 for the years ended June 30, 2012, 2013 and 2014, respectively. | ||||||||
Equity Incentive Plan | ' | ' | ||||||
(d) Stock-Based Compensation | (n) Equity Incentive Plan | |||||||
The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards, including those under the 2014 Employee Stock Purchase Plan (“ESPP”), are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model and periodically updates the assumed forfeiture rates for actual experience over the option vesting term or the term of the ESPP purchase period. | The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model and periodically updates the assumed forfeiture rates for actual experience over their vesting terms. | |||||||
Excess tax benefits of awards that are recognized in equity related to stock option exercises are reflected as financing cash inflows. The total excess income tax benefits recognized for stock-based compensation arrangements was $206 and $63 for the years ended June 30, 2012 and 2013, respectively. There were no excess income tax benefits recognized for stock-based compensation arrangements for the year ended June 30, 2014. | ||||||||
Commitments and Contingencies | ' | ' | ||||||
(o) Commitments and Contingencies | ||||||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. | ||||||||
Segment Information | ' | ' | ||||||
(p) Segment Information | ||||||||
The Company’s chief operating decision maker reviews the financial results of the Company in total when evaluating financial performance and for purposes of allocating resources. The Company has thus determined that it operates in a single cloud-based software solution reporting segment. | ||||||||
Recently Issued Accounting Standards | ' | ' | ||||||
(q) Recently Issued Accounting Standards | ||||||||
(e) Recently Issued Accounting Standards | ||||||||
In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a “full retrospective” adoption or a “modified retrospective” adoption. The Company is currently evaluating which adoption method it will use. Early application is not permitted. The Company plans on adopting ASU 2014-09 beginning July 1, 2017 and is currently assessing the potential effects of these changes to its consolidated financial statements. | ||||||||
In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a “full retrospective” adoption or a “modified retrospective” adoption. The Company is currently evaluating which adoption method it will use. Early application is not permitted. The Company plans on adopting ASU 2014-09 beginning July 1, 2017 and is currently assessing the potential effects of these changes to its consolidated financial statements. | ||||||||
From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. | ||||||||
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. | ||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Summary of Significant Accounting Policies | ' | ||||||
Schedule of activity in allowance for doubtful accounts | ' | ||||||
For the Years Ended June 30, | |||||||
2012 | 2013 | 2014 | |||||
Balance at the beginning of the year | $80 | $114 | $118 | ||||
Charged to expense | 60 | 60 | 62 | ||||
Write-offs | -26 | -56 | -54 | ||||
Balance at the end of the year | $114 | $118 | $126 |
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | ||
Jun. 30, 2014 | |||
Business Combinations | ' | ||
Summary of provisional fair value of the assets acquired at the date of acquisition | ' | ||
At May 23, 2014 | |||
Intangible assets | $6,400 | ||
Goodwill | 3,035 | ||
Total purchase price | $9,435 |
Software_Developed_for_Interna1
Software Developed for Internal Use (Tables) | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | ||||||||||||
Software Developed for Internal Use | ' | ' | |||||||||||
Schedule of capitalized software and accumulated amortization | ' | ' | |||||||||||
June 30, | September 30, | ||||||||||||
2014 | 2014 | Year ended June 30, | |||||||||||
Internally developed software | $ | 19,863 | $ | 20,937 | 2013 | 2014 | |||||||
Accumulated amortization | (14,770 | ) | (15,363 | ) | Internally developed software | $15,189 | $19,863 | ||||||
Capitalized software, net | $ | 5,093 | $ | 5,574 | Accumulated amortization | -12,575 | -14,770 | ||||||
Capitalized software, net | $2,614 | $5,093 | |||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | ||||||||||||
Property and Equipment | ' | ' | |||||||||||
Schedule of major classes of property and equipment | ' | ' | |||||||||||
June 30, | September 30, | ||||||||||||
2014 | 2014 | Year ended June 30, | |||||||||||
Office equipment | $ | 1,449 | $ | 1,631 | 2013 | 2014 | |||||||
Computer equipment | 7,726 | 9,310 | Office equipment | $1,350 | $1,449 | ||||||||
Furniture and fixtures | 2,317 | 2,357 | Computer equipment | 4,665 | 7,726 | ||||||||
Software | 4,963 | 4,978 | Furniture and fixtures | 1,433 | 2,317 | ||||||||
Leasehold improvements | 6,059 | 6,106 | Automobiles | 36 | — | ||||||||
Time clocks rented by clients | 2,360 | 2,460 | Software | 3,791 | 4,963 | ||||||||
24,874 | 26,842 | Leasehold improvements | 3,917 | 6,059 | |||||||||
Accumulated depreciation | (11,749 | ) | (12,804 | ) | Time clocks rented by clients | 1,649 | 2,360 | ||||||
Property and equipment, net | $ | 13,125 | $ | 14,038 | 16,841 | 24,874 | |||||||
Accumulated depreciation and amortization | -8,255 | -11,749 | |||||||||||
Property and equipment, net | $8,586 | $13,125 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Table) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Goodwill and Intangible Assets | ' | ||||
Schedule of amortizable intangible assets before amortization expense | ' | ||||
As of June | Weighted | ||||
30, 2014 | Average | ||||
Useful | |||||
Life | |||||
Client relationships | $6,180 | 9 years | |||
Non-solicitation agreement | 220 | 3 years | |||
Total | 6,400 | ||||
Accumulated amortization | -80 | ||||
Intangible assets, net | $6,320 | ||||
Schedule of future amortization expense for acquired intangible | ' | ||||
Year ending June 30: | |||||
2015 | $760 | ||||
2016 | 760 | ||||
2017 | 752 | ||||
2018 | 687 | ||||
2019 | 687 | ||||
Thereafter | 2,674 | ||||
Total | $6,320 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | ||||||||||||
Accrued Expenses | ' | ' | |||||||||||
Schedule of components of accrued expenses | ' | ' | |||||||||||
June 30, | September 30, | ||||||||||||
2014 | 2014 | Year ended June 30, | |||||||||||
Accrued payroll and personnel costs | $ | 8,781 | $ | 8,756 | 2013 | 2014 | |||||||
Current portion of deferred rent | 577 | 624 | Accrued payroll and personnel costs | $5,549 | $8,781 | ||||||||
Other | 1,386 | 1,397 | Reseller fees | 259 | 6 | ||||||||
Total accrued expenses | $ | 10,744 | $ | 10,777 | Current portion of deferred rent | 230 | 577 | ||||||
Other | 756 | 1,380 | |||||||||||
Total Accrued Expenses | $6,794 | $10,744 |
Leases_Tables
Leases (Tables) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Leases | ' | |||
Schedule of future minimum lease payments under non-cancellable operating leases | ' | |||
Year ending June 30: | ||||
2015 | $3,353 | |||
2016 | 3.549 | |||
2017 | 3,200 | |||
2018 | 3,117 | |||
2019 | 2,494 | |||
Later years, through 2023 | 1,637 | |||
Total minimum lease payments | $17,350 |
Line_of_Credit_and_LongTerm_De1
Line of Credit and Long-Term Debt (Tables) | 12 Months Ended | |||||
Jun. 30, 2014 | ||||||
Line of Credit and Long-Term Debt | ' | |||||
Schedule of long-term debt | ' | |||||
Year ended June 30, | ||||||
2013 | 2014 | |||||
Note payable—bank | $1,563 | — | ||||
Note payable—related parties | — | — | ||||
Total long-term debt | 1,563 | — | ||||
Less current installments | 625 | — | ||||
Long-term debt, excluding current installments | $938 | — |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Income Taxes | ' | |||||||
Schedule of income tax (benefit) expense | ' | |||||||
Year ended June 30, | ||||||||
2012 | 2013 | 2014 | ||||||
Current taxes | ||||||||
U.S. federal | $12 | $126 | ($125) | |||||
State and local | 34 | 94 | 39 | |||||
Deferred taxes: | ||||||||
U.S. federal | 738 | -516 | 160 | |||||
State and local | 100 | -306 | 181 | |||||
Total income tax (benefit) expense | $884 | ($602) | $255 | |||||
Schedule of tax rate reconciliation by applying the U.S. federal income tax rate to pretax income from continuing operations | ' | |||||||
Year ended June 30, | ||||||||
2012 | 2013 | 2014 | ||||||
Income tax provision at statutory federal rate | $875 | $6 | ($2,331) | |||||
Increase (reduction) in income taxes resulting from: | ||||||||
Research and development credit, net of federal income tax benefit | -173 | -650 | -189 | |||||
Non-deductible expenses | 25 | 53 | 284 | |||||
Change in valuation allowance | — | — | 2,878 | |||||
State and local income taxes, net of federal income tax benefit | 157 | -11 | -387 | |||||
$884 | ($602) | $255 | ||||||
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities | ' | |||||||
Year ended June 30, | ||||||||
2013 | 2014 | |||||||
Deferred tax assets: | ||||||||
Deferred rent | $438 | $569 | ||||||
Allowance for doubtful accounts | 46 | 48 | ||||||
Accrued expenses | 583 | 761 | ||||||
Stock-based compensation | 333 | 2,149 | ||||||
Net operating loss carryforwards | 359 | 1,641 | ||||||
Research and development credit | 832 | 1,116 | ||||||
AMT Credits | 138 | 11 | ||||||
Intangible assets | — | 5 | ||||||
Total deferred tax assets | 2,729 | 6,300 | ||||||
Valuation allowance | — | -2,878 | ||||||
Net deferred tax assets | 2,729 | 3,422 | ||||||
Deferred tax liabilities: | ||||||||
Research and development costs | -1,024 | -1,950 | ||||||
Prepaid expenses | -66 | -74 | ||||||
Depreciation | -1,306 | -1,406 | ||||||
Total deferred liabilities | -2,396 | -3,430 | ||||||
Net deferred tax asset (liability) | $333 | ($8) |
Benefit_Plans_Tables
Benefit Plans (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||||||||||||||||||
Benefit Plans | ' | ' | ||||||||||||||||||||||
Schedule of stock-based compensation expense related to stock options and the vesting of restricted stock awards ("RSAs") and restricted stock units ("RSUs") | ' | ' | ||||||||||||||||||||||
Three months ended | Year ended June 30, | |||||||||||||||||||||||
September 30, | 2012 | 2013 | 2014 | |||||||||||||||||||||
2013 | 2014 | Cost of revenue - recurring | $— | $— | $496 | |||||||||||||||||||
Cost of revenue — recurring | $ | — | $ | 348 | Cost of revenue – non-recurring | — | — | 424 | ||||||||||||||||
Cost of revenue — non-recurring | — | 291 | Sales and marketing | — | — | 765 | ||||||||||||||||||
Sales and marketing | — | 884 | Research and development | — | — | 615 | ||||||||||||||||||
Research and development | — | 535 | General and administrative | 203 | 523 | 2,629 | ||||||||||||||||||
General and administrative | 181 | 1,225 | Total stock-based compensation | $203 | $523 | $4,929 | ||||||||||||||||||
Total stock-based compensation | $ | 181 | $ | 3,283 | ||||||||||||||||||||
Summary of the assumptions used for estimating the fair value of stock options granted | ' | ' | ||||||||||||||||||||||
Period ended | Year ended June 30, | |||||||||||||||||||||||
September 30, | 2012 | 2013 | 2014 | |||||||||||||||||||||
2013 | 2014 | Valuation assumptions: | ||||||||||||||||||||||
Valuation assumptions: | Expected dividend yield | N/A—no grants | 0% | 0% | ||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | Expected volatility | N/A—no grants | 30.70% | 29.5% - 44.5% | ||||||||||||||||
Expected volatility | 29.5 | % | 43.9 | % | Expected term (years) | N/A—no grants | 4 | 4.0 - 6.0 | ||||||||||||||||
Expected term (years) | 4.0 | 6.25 | Risk-free interest rate | N/A—no grants | 0.61% | 0.52% - 1.94% | ||||||||||||||||||
Risk-free interest rate | 0.5 | % | 1.91 | % | ||||||||||||||||||||
Schedule of stock option activity | ' | ' | ||||||||||||||||||||||
Outstanding Options | ||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | Outstanding Options | ||||||||||||||||||||
shares | average | average | intrinsic | Shares | Number of | Weighted | Weighted | Aggregate | ||||||||||||||||
exercise | remaining | value | Available for | shares | average | average | intrinsic | |||||||||||||||||
price | contractual | Grant | exercise | remaining | value | |||||||||||||||||||
term | price | contractual | ||||||||||||||||||||||
Balance at July 1, 2014 | 4,388 | $ | 10 | 8.58 | $ | 51,017 | term | |||||||||||||||||
Options granted | 322 | 24.8 | Balance at June 30, 2013 | 812 | 1,859 | $3.25 | 8.22 | $7,028 | ||||||||||||||||
Options forfeited | (97 | ) | 14.29 | Additional shares authorized, net | 4,406 | — | ||||||||||||||||||
Options exercised | (13 | ) | 4.87 | RSU’s granted | -108 | — | ||||||||||||||||||
Balance at September 30, 2014 | 4,600 | $ | 10.96 | 8.4 | $ | 41,628 | Options granted | -2,582 | 2,582 | 15.01 | 9.58 | |||||||||||||
Options exercisable at September 30, 2014 | 1,430 | $ | 3.11 | 6.79 | $ | 23,656 | Options forfeited | 53 | -53 | 17 | — | |||||||||||||
Options vested and expected to vest at September 30, 2014 | 4,358 | $ | 10.63 | 8.34 | $ | 40,770 | Exercised | — | — | — | — | |||||||||||||
Balance at June 30, 2014 | 2,581 | 4,388 | $10.00 | 8.58 | $51,017 | |||||||||||||||||||
Options exercisable at June 30, 2014 | 1,083 | $2.29 | 6.65 | $20,947 | ||||||||||||||||||||
Options vested and expected to vest at June 30, 2014 | 3,853 | $10.17 | 8.53 | $44,162 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Earnings Per Share | ' | ' | ||||||||||||||
Schedule of calculation of basic and diluted net income (loss) per share | ' | ' | ||||||||||||||
Three months ended | ||||||||||||||||
September 30, | Year ended June 30, | |||||||||||||||
2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||
Basic net loss per share: | Basic net income (loss) per share: | |||||||||||||||
Numerator: | Numerator: | |||||||||||||||
Net Loss | $ | (44 | ) | $ | (4,875 | ) | Net Income (Loss) | $1,688 | $617 | ($7,110) | ||||||
Less: Preferred dividend rights attributable to participating securities | (781 | ) | — | Less: Preferred dividend rights attributable to participating securities | -690 | -2,908 | -2,282 | |||||||||
Net loss attributable to common stockholders | $ | (825 | ) | $ | (4,875 | ) | Net income (loss) attributable to common stockholders | $998 | ($2,291) | ($9,392) | ||||||
Denominator: | Denominator: | |||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders: | Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | |||||||||||||||
Basic (in thousands) | 31,988 | 49,566 | Basic (in thousands) | 43,873 | 31,988 | 36,707 | ||||||||||
Weighted-average effect of potentially dilutive shares: | Weighted-average effect of potentially dilutive shares: | |||||||||||||||
Employee stock options and restricted stock units (in thousands) | — | — | Employee stock options (in thousands) | 444 | — | — | ||||||||||
Diluted (in thousands) | 31,988 | 49,566 | Diluted (in thousands) | 44,317 | 31,988 | 36,707 | ||||||||||
Net income (loss) per share attributable to common stockholders: | ||||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.03 | ) | $ | (0.10 | ) | Basic | $0.02 | ($0.07) | ($0.26) | ||||||
Diluted | $0.02 | ($0.07) | ($0.26) | |||||||||||||
Summary of outstanding employee stock options and restricted stock units, and redeemable convertible preferred stock excluded from the diluted per share calculation because to include them would have been anti-dilutive | ' | ' | ||||||||||||||
Three months ended | ||||||||||||||||
September 30, | Year ended June 30, 2014 | |||||||||||||||
2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||
Redeemable convertible preferred stock | 11,933 | — | Redeemable convertible preferred stock | — | 11,933 | — | ||||||||||
Restricted stock units | — | 480 | Restricted stock units | — | — | 102 | ||||||||||
Employee stock purchase plan shares | — | 27 | Employee stock options | — | 1,859 | 4,388 | ||||||||||
Employee stock options | 2,376 | 4,600 | Total | — | 13,792 | 4,490 | ||||||||||
Total | 14,309 | 5,107 | ||||||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Selected Quarterly Financial Data (unaudited) | ' | ||||||||
Schedule of selected unaudited quarterly statements of operations data | ' | ||||||||
Quarter Ended | |||||||||
September 30, | December 31, | March 31, 2013 | June 30, 2013 | ||||||
2012 | 2012 | ||||||||
Consolidated States of Operations Data | |||||||||
Revenues | $15,826 | $17,200 | $24,006 | $20,262 | |||||
Gross profit | $7,307 | $7,663 | $13,272 | $9,386 | |||||
Operating income (loss) | ($616) | ($1,088) | $2,604 | ($869) | |||||
Net income (loss) | ($405) | ($627) | $2,021 | ($372) | |||||
Net income (loss) per share attributable to common stockholders, basic and diluted: | ($0.04) | ($0.04) | $0.03 | ($0.03) | |||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | |||||||||
Basic | 31,988 | 31,988 | 43,921 | 31,988 | |||||
Diluted | 31,988 | 31,988 | 44,407 | 31,988 | |||||
Quarter Ended | |||||||||
September 30, | December 31, | March 31, 2014 | June 30, 2014 | ||||||
2013 | 2013 | ||||||||
Consolidated States of Operations Data | |||||||||
Revenues | $22,369 | $23,905 | $33,766 | $28,647 | |||||
Gross profit | $10,622 | $10,587 | $18,841 | $13,543 | |||||
Operating income (loss) | ($434) | ($2,411) | $2,133 | ($6,306) | |||||
Net income (loss) | ($44) | ($1,512) | $1,150 | ($6,704) | |||||
Net income (loss) per share attributable to common stockholders, basic and diluted: | ($0.03) | ($0.07) | $0.01 | -0.14 | |||||
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | |||||||||
Basic | 31,988 | 31,988 | 44,360 | 49,564 | |||||
Diluted | 31,988 | 31,988 | 44,870 | 49,564 |
Organization_and_Description_o1
Organization and Description of Business (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 24, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Common stock | Common stock | Preferred stock | Initial Public Offering | Initial Public Offering | Existing shareholders | ||||||
Organization and Description of Business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse stock split ratio on common stock | ' | 0.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock issued and sold | ' | ' | ' | ' | ' | ' | 5,367 | ' | 5,367 | ' | 2,735 |
Public offering price (in dollars per share) | ' | $17 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds after deducting underwriting discounts and commissions and other offering expenses | ' | ' | $81,927 | ' | ' | ' | $6 | ' | $81,927 | ' | ' |
Underwriting discounts and commissions | ' | ' | ' | ' | ' | ' | ' | ' | 6,387 | ' | ' |
Other offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | $2,925 | ' | ' |
Number of shares issued on conversion of outstanding redeemable convertible preferred stock | 11,933 | ' | ' | ' | ' | ' | 11,933 | ' | ' | 11,933 | ' |
Common stock, par value (in dollars per share) | ' | ' | $0.00 | $0.00 | $0.00 | ' | ' | ' | $0.00 | $0.00 | ' |
Authorized common shares upon filing of revised certificate of incorporation | ' | ' | ' | ' | ' | 155,000 | ' | ' | ' | ' | ' |
Authorized preferred shares upon filing of revised certificate of incorporation | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Accounts Receivable | ' | ' | ' | ' | ' |
Minimum number of days past due before a balance will be reviewed for collectability | ' | ' | '60 days | ' | ' |
Activity in the allowance for doubtful accounts | ' | ' | ' | ' | ' |
Balance at the beginning of the year | $126 | $118 | $118 | $114 | $80 |
Charged to expense | 42 | 15 | 62 | 60 | 60 |
Write-offs | -5 | ' | -54 | -56 | -26 |
Balance at the end of the year | $163 | ' | $126 | $118 | $114 |
Total Revenue | Clients | ' | ' | ' | ' | ' |
Concentrations of Risk | ' | ' | ' | ' | ' |
Concentration of risk (as a percent) | ' | ' | 100.00% | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Jun. 30, 2014 | |
Minimum | ' |
Property and Equipment and Long-Lived Assets | ' |
Estimated useful lives of the assets | '3 years |
Maximum | ' |
Property and Equipment and Long-Lived Assets | ' |
Estimated useful lives of the assets | '7 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Revenue Recognition | ' | ' | ' |
Period of notice days given for cancellation of agreement | '60 days | ' | ' |
Advertising | ' | ' | ' |
Advertising costs | $24 | $27 | $32 |
Equity Incentive Plan | ' | ' | ' |
Total excess income tax benefits recognized for stock based compensation arrangements | $0 | $63 | $206 |
Client relationships | ' | ' | ' |
Goodwill and other intangible assets, net of accumulated amortization | ' | ' | ' |
Estimated useful lives | '9 years | ' | ' |
Non-solicitation agreement | ' | ' | ' |
Goodwill and other intangible assets, net of accumulated amortization | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Minimum | Internal-Use Software | ' | ' | ' |
Goodwill and other intangible assets, net of accumulated amortization | ' | ' | ' |
Estimated useful lives | '18 months | ' | ' |
Maximum | Internal-Use Software | ' | ' | ' |
Goodwill and other intangible assets, net of accumulated amortization | ' | ' | ' |
Estimated useful lives | '24 months | ' | ' |
Funds_Held_for_Clients_and_Cli1
Funds Held for Clients and Client Fund Obligations (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Funds Held for Clients and Client Fund Obligations | ' |
Period of repayment of client fund obligation liabilities | '1 year |
Business_Combinations_Details
Business Combinations (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | 23-May-14 | Jun. 30, 2014 | 23-May-14 | 23-May-14 |
BFKMS Inc. | BFKMS Inc. | BFKMS Inc. | BFKMS Inc. | |||
item | Client relationships | Non-solicitation agreement | ||||
Business Combinations | ' | ' | ' | ' | ' | ' |
Total consideration | ' | ' | $9,435 | ' | ' | ' |
Purchase price paid | 2,385 | 6,450 | ' | 6,450 | ' | ' |
Number of payments | ' | ' | 4 | ' | ' | ' |
Purchase price to be paid in July 2014 | ' | ' | 2,385 | ' | ' | ' |
Purchase price to be paid in November 2014 and February 2014 | ' | ' | 600 | ' | ' | ' |
Intangible assets | ' | ' | 6,400 | ' | 6,180 | 220 |
Goodwill | 3,035 | 3,035 | 3,035 | ' | ' | ' |
Total purchase price | ' | ' | $9,435 | ' | ' | ' |
Goodwill amortization period | ' | '15 years | ' | ' | ' | ' |
Software_Developed_for_Interna2
Software Developed for Internal Use (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Capitalized software and accumulated amortization | ' | ' | ' | ' | ' |
Internally developed software | $20,937 | ' | $19,863 | $15,189 | ' |
Accumulated amortization | -15,363 | ' | -14,770 | -12,575 | ' |
Capitalized software, net | 5,574 | ' | 5,093 | 2,614 | ' |
Impairments to software developed for internal use | ' | ' | 0 | ' | ' |
Amortization of capitalized internal-use software costs | $593 | $605 | $2,195 | $3,067 | $2,727 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | $26,842 | ' | $24,874 | $16,841 | ' |
Accumulated depreciation and amortization | -12,804 | ' | -11,749 | -8,255 | ' |
Property and equipment, net | 14,038 | ' | 13,125 | 8,586 | ' |
Depreciation expense | 1,148 | 786 | 4,061 | 2,504 | 1,897 |
Office equipment | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 1,631 | ' | 1,449 | 1,350 | ' |
Computer equipment | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 9,310 | ' | 7,726 | 4,665 | ' |
Furniture and fixtures | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 2,357 | ' | 2,317 | 1,433 | ' |
Automobiles | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | ' | ' | 36 | ' |
Software | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 4,978 | ' | 4,963 | 3,791 | ' |
Leasehold improvements | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 6,106 | ' | 6,059 | 3,917 | ' |
Time clocks rented by clients | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 2,460 | ' | 2,360 | 1,649 | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Impairments to property and equipment | ' | ' | $0 | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Goodwill and Intangible Assets | ' | ' | ' | ' | ' |
Goodwill | $3,035 | ' | $3,035 | ' | ' |
Total intangible assets | 6,400 | ' | 6,400 | ' | ' |
Accumulated amortization | -270 | ' | -80 | ' | ' |
Intangible assets, net | 6,130 | ' | 6,320 | ' | ' |
Amortization expense for acquired intangible assets | 190 | 0 | 80 | 0 | 0 |
Future amortization expense for acquired intangible | ' | ' | ' | ' | ' |
2015 | ' | ' | 760 | ' | ' |
2016 | ' | ' | 760 | ' | ' |
2017 | ' | ' | 752 | ' | ' |
2018 | ' | ' | 687 | ' | ' |
2019 | ' | ' | 687 | ' | ' |
Thereafter | ' | ' | 2,674 | ' | ' |
Intangible assets, net | 6,130 | ' | 6,320 | ' | ' |
Client relationships | ' | ' | ' | ' | ' |
Goodwill and Intangible Assets | ' | ' | ' | ' | ' |
Total intangible assets | 6,180 | ' | 6,180 | ' | ' |
Weighted Average Useful Life | '9 years | ' | '9 years | ' | ' |
Non-solicitation agreement | ' | ' | ' | ' | ' |
Goodwill and Intangible Assets | ' | ' | ' | ' | ' |
Total intangible assets | $220 | ' | $220 | ' | ' |
Weighted Average Useful Life | '3 years | ' | '3 years | ' | ' |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Components of accrued expenses | ' | ' | ' |
Accrued payroll and personnel costs | $8,756 | $8,781 | $5,549 |
Reseller fees | ' | 6 | 259 |
Current portion of deferred rent | 624 | 577 | 230 |
Other | 1,397 | 1,380 | 756 |
Total Accrued Expenses | $10,777 | $10,744 | $6,794 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
sqft | |||
Leases | ' | ' | ' |
Area of office space leased (in square feet) | 6,000 | ' | ' |
Rent holiday period | '7 months | ' | ' |
Rental expense for operating leases | $3,035 | $2,347 | $1,519 |
Future minimum lease payments under non-cancellable operating leases | ' | ' | ' |
2015 | 3,353 | ' | ' |
2016 | 3,549 | ' | ' |
2017 | 3,200 | ' | ' |
2018 | 3,117 | ' | ' |
2019 | 2,494 | ' | ' |
Later years, through 2023 | 1,637 | ' | ' |
Total minimum lease payments | $17,350 | ' | ' |
Line_of_Credit_and_LongTerm_De2
Line of Credit and Long-Term Debt (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Line of Credit and Long-Term Debt | ' | ' | ' |
Total long-term debt | ' | $1,563 | ' |
Less current installments | ' | 625 | ' |
Long-term debt, excluding current installments | ' | 938 | ' |
Note payable-bank | ' | ' | ' |
Line of Credit and Long-Term Debt | ' | ' | ' |
Total long-term debt | ' | 1,563 | ' |
Interest rate on notes payable (as a percent) | 6.50% | ' | ' |
Principal payment | 52 | ' | ' |
Interest expense on notes | 67 | 123 | 175 |
Note payable-related parties | ' | ' | ' |
Line of Credit and Long-Term Debt | ' | ' | ' |
Interest rate on notes payable (as a percent) | 8.00% | ' | ' |
Interest expense on notes | ' | 69 | 87 |
Line of credit | ' | ' | ' |
Line of Credit and Long-Term Debt | ' | ' | ' |
Maximum borrowing capacity | 2,500 | ' | ' |
Commitment fee (as a percent) | 0.38% | ' | ' |
Increased maximum borrowing capacity | 3,500 | ' | ' |
Amount of outstanding line of credit | ' | 0 | ' |
Prepayment penalties on repayment of debt | 0 | ' | ' |
Line of credit | Base rate | ' | ' | ' |
Line of Credit and Long-Term Debt | ' | ' | ' |
Variable rate basis | 'base rate | ' | ' |
Interest rate at period end (as a percent) | ' | 3.25% | ' |
Basis spread on variable rate (as a percent) | 1.50% | ' | ' |
Floor interest rate (as a percent) | 5.50% | ' | ' |
Letter of credit | ' | ' | ' |
Line of Credit and Long-Term Debt | ' | ' | ' |
Maximum borrowing capacity | $166 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Current taxes | ' | ' | ' | ' | ' |
U.S. federal | ' | ' | ($125) | $126 | $12 |
State and local | ' | ' | 39 | 94 | 34 |
Deferred taxes: | ' | ' | ' | ' | ' |
U.S. federal | ' | ' | 160 | -516 | 738 |
State and local | ' | ' | 181 | -306 | 100 |
Total income tax (benefit) expense | 28 | -362 | 255 | -602 | 884 |
Tax Rate Reconciliation | ' | ' | ' | ' | ' |
U.S. federal income tax rate (as a percent) | ' | ' | 34.00% | ' | ' |
Income tax provision at statutory federal rate | ' | ' | -2,331 | 6 | 875 |
Increase (reduction) in income taxes resulting from: | ' | ' | ' | ' | ' |
Research and development credit, net of federal income tax benefit | ' | ' | -189 | -650 | -173 |
Non-deductible expenses | ' | ' | 284 | 53 | 25 |
Change in valuation allowance | ' | ' | 2,878 | ' | ' |
State and local income taxes, net of federal income tax benefit | ' | ' | -387 | -11 | 157 |
Total income tax (benefit) expense | 28 | -362 | 255 | -602 | 884 |
Deferred tax assets: | ' | ' | ' | ' | ' |
Deferred rent | ' | ' | 569 | 438 | ' |
Allowance for doubtful accounts | ' | ' | 48 | 46 | ' |
Accrued expenses | ' | ' | 761 | 583 | ' |
Stock-based compensation | ' | ' | 2,149 | 333 | ' |
Net operating loss carryforwards | ' | ' | 1,641 | 359 | ' |
Research and development credit | ' | ' | 1,116 | 832 | ' |
AMT Credits | ' | ' | 11 | 138 | ' |
Intangible assets | ' | ' | 5 | ' | ' |
Total deferred tax assets | ' | ' | 6,300 | 2,729 | ' |
Valuation allowance | ' | ' | -2,878 | ' | ' |
Net deferred tax assets | ' | ' | 3,422 | 2,729 | ' |
Deferred tax liabilities: | ' | ' | ' | ' | ' |
Research and development costs | ' | ' | -1,950 | -1,024 | ' |
Prepaid expenses | ' | ' | -74 | -66 | ' |
Depreciation | ' | ' | -1,406 | -1,306 | ' |
Total deferred liabilities | ' | ' | -3,430 | -2,396 | ' |
Net deferred tax asset (liability) | ' | ' | -8 | 333 | ' |
Taxable income(loss) | ' | ' | -3,817 | 1,941 | 842 |
Net operating loss carryforwards for Federal income tax | ' | ' | 3,967 | ' | ' |
Period of cumulative loss position | ' | ' | '3 years | ' | ' |
Excess tax benefits from exercise of stock options | ' | ' | 331 | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | ' | ' |
Unrecognized tax benefits | 0 | ' | 0 | 0 | 0 |
Research and development tax | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | ' | ' |
Tax credit carryforwards | ' | ' | 1,116 | ' | ' |
Alternative minimum tax | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | ' | ' |
Tax credit carryforwards | ' | ' | $11 | ' | ' |
Stockholders_Equity_Deficit_De
Stockholders' Equity (Deficit) Details) (Common stock) | 1 Months Ended |
Mar. 31, 2014 | |
item | |
Common stock | ' |
Stockholders' Equity (Deficit) | ' |
Number of common stock vote per share | 1 |
Redeemable_Convertible_Preferr1
Redeemable Convertible Preferred Stock (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 24, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 |
item | IPO | |||||
Redeemable Convertible Preferred Stock | ' | ' | ' | ' | ' | ' |
Number of series of redeemable convertible preferred stock | ' | 2 | ' | ' | ' | ' |
Number of shares issued on conversion of series A and series B redeemable convertible preferred stock | 11,933 | ' | ' | ' | ' | 11,933 |
Common stock, par value (in dollars per share) | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 |
Benefit_Plans_Details
Benefit Plans (Details) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | 2014 Plan | 2014 Plan | 2008 Plan | 2008 Plan | ||
Minimum | Minimum | Maximum | Maximum | |||||||||
Benefit Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock reserved for issuance | 7,032 | 7,071 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Number of shares allocated but not yet issued or subject to outstanding options or awards | ' | ' | ' | ' | ' | ' | ' | ' | 1,952 | 2,581 | ' | ' |
Vesting period | ' | ' | ' | ' | '3 years | '3 years | '4 years | '4 years | ' | ' | ' | ' |
Expiration period | ' | ' | '10 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit_Plans_Details_2
Benefit Plans (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | $3,283 | $181 | $4,929 | $523 | $203 |
Stock compensation costs capitalized | 162 | 0 | 325 | 0 | 0 |
Cost of revenue - recurring | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 348 | ' | 496 | ' | ' |
Cost of revenue - non-recurring | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 291 | ' | 424 | ' | ' |
Sales and marketing | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 884 | ' | 765 | ' | ' |
Research and development | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 535 | ' | 615 | ' | ' |
General and administrative | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | $1,225 | $181 | $2,629 | $523 | $203 |
Benefit_Plans_Details_3
Benefit Plans (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | RSAs | RSAs | RSAs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | RSUs | ||||||
Minimum | Minimum | Maximum | Maximum | Certain employees | Certain employees and members Board of Directors | Consultants | Vesting over period of six months from date of the IPO | Vested immediately | Vested immediately | Vesting over period of one year from date of the IPO | Vesting over period of two years from date of the IPO | |||||||||||||||
Certain employees and members Board of Directors | Certain employees and members Board of Directors | Consultants | Certain employees and members Board of Directors | Certain employees and members Board of Directors | ||||||||||||||||||||||
Valuation assumptions: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | ' | 43.90% | 29.50% | ' | 30.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility, minimum (as a percent) | ' | ' | ' | ' | ' | ' | ' | 29.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility, maximum (as a percent) | ' | ' | ' | ' | ' | ' | ' | 44.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | ' | ' | '6 years 3 months | '4 years | ' | '4 years | ' | ' | '4 years | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | ' | ' | ' | 1.91% | 0.50% | ' | 0.61% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, minimum (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.52% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, maximum (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.94% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | ' | ' | ' | 2,581 | 812 | 812 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares authorized, net (in shares) | ' | ' | ' | ' | ' | ' | ' | 4,406 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RSU's granted (in shares) | ' | ' | ' | ' | ' | -379 | ' | -108 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -379 | ' | -108 | ' | ' | ' | ' | ' | ' |
Options granted (in shares) | ' | ' | ' | ' | ' | -322 | ' | -2,582 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options forfeited (in shares) | ' | ' | ' | ' | ' | 97 | ' | 53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in shares) | ' | ' | ' | ' | ' | 1,952 | ' | 2,581 | 812 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | ' | ' | ' | 4,388 | 1,859 | 1,859 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted (in shares) | ' | ' | ' | ' | ' | 322 | ' | 2,582 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options forfeited (in shares) | ' | ' | ' | ' | ' | -97 | ' | -53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in shares) | ' | ' | ' | ' | ' | 4,600 | ' | 4,388 | 1,859 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at the end of the period (in shares) | ' | ' | ' | ' | ' | 1,430 | ' | 1,083 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest at the end of the period (in shares) | ' | ' | ' | ' | ' | 4,358 | ' | 3,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | $10 | $3.25 | $3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted (in dollars per share) | ' | ' | ' | ' | ' | $24.80 | ' | $15.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options forfeited (in dollars per share) | ' | ' | ' | ' | ' | $14.29 | ' | $17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | $10.96 | ' | $10 | $3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | $3.11 | ' | $2.29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | $10.63 | ' | $10.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted | ' | ' | ' | ' | ' | ' | ' | '9 years 6 months 29 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | ' | ' | ' | ' | '8 years 4 months 24 days | ' | '8 years 6 months 29 days | '8 years 2 months 19 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at the end of the period | ' | ' | ' | ' | ' | '6 years 9 months 15 days | ' | '6 years 7 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest at the end of the period | ' | ' | ' | ' | ' | '8 years 4 months 2 days | ' | '8 years 6 months 11 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in dollars) | ' | ' | ' | ' | ' | $41,628 | ' | $51,017 | $7,028 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at the end of the period (in dollars) | ' | ' | ' | ' | ' | 23,656 | ' | 20,947 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest at the end of the period | ' | ' | ' | ' | ' | 40,770 | ' | 44,162 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value of options granted (in dollars per share) | ' | ' | ' | ' | ' | $11.15 | $1.71 | $6.39 | $1.22 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | ' | ' | 224 | ' | 0 | 87 | 241 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option and restricted stock awards | ' | ' | 11,231 | ' | ' | 12,337 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,818 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period to recognize unrecognized compensation cost | ' | ' | '1 year 7 months 13 days | ' | ' | '1 year 6 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards non-vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 269 | 480 | 102 | ' | ' | ' | ' | ' | ' | ' |
Compensation expense (in dollars) | $3,283 | $181 | $4,929 | $523 | $203 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $351 | ' | ' | ' | ' | ' | $30 | ' | ' | ' | ' | ' |
Awards granted (in shares) | ' | ' | ' | ' | ' | 379 | ' | 108 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 379 | ' | 108 | ' | ' | ' | ' | ' | ' |
Awards vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93 | 6 | 2 | 4 | 5 |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | '4 years | '4 years | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | '1 year | '2 years |
Benefit_Plans_Details_4
Benefit Plans (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Benefit Plans | ' | ' | ' | ' | ' |
Matching contributions by the Company as percentage of employees' contributions | 50.00% | ' | 50.00% | ' | ' |
Maximum contributions as percentage of employees' gross pay | 6.00% | ' | 6.00% | ' | ' |
Contributions | $382 | $248 | $1,122 | $720 | $514 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Commitments and Contingencies | ' | ' | ' | ' | ' |
Number of reseller | 2 | ' | 2 | ' | ' |
Number of agreements terminated | ' | ' | 1 | ' | ' |
First reseller agreement | ' | ' | ' | ' | ' |
Reseller agreements | ' | ' | ' | ' | ' |
Amount paid to reseller | ' | $614 | $2,495 | $2,377 | $1,693 |
Second reseller agreement | ' | ' | ' | ' | ' |
Reseller agreements | ' | ' | ' | ' | ' |
Amount paid to reseller | $635 | $492 | $2,081 | $1,783 | $1,324 |
Prior notice period to terminate the agreement by resellers | '9 months | ' | '9 months | ' | ' |
Minimum period after closing of initial public offering to provide prior notice by the reseller for termination of agreement | '6 months | ' | '6 months | ' | ' |
Minimum period after closing of initial public offering for termination of agreement by the entity | ' | ' | '6 months | ' | ' |
Purchase price of resellers assets as multiplier of net revenues of reseller for 12 months preceding termination effective date | 3.3 | ' | 3.3 | ' | ' |
Period considered for multiplier of annual revenues to calculate purchase price of assets | '12 months | ' | '12 months | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 24, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock issued on automatic conversion of outstanding preferred stock | 11,933 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ($4,875) | ($6,704) | $1,150 | ($1,512) | ($44) | ($372) | $2,021 | ($627) | ($405) | ($7,110) | $617 | $1,688 |
Less: Preferred dividend rights attributable to participating securities | ' | ' | ' | ' | ' | -781 | ' | ' | ' | ' | -2,282 | -2,908 | -690 |
Net income (loss) attributable to common stockholders | ' | ($4,875) | ' | ' | ' | ($825) | ' | ' | ' | ' | ($9,392) | ($2,291) | $998 |
Weighted average shares used in computing net income (loss) per share attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | ' | 49,566 | 49,564 | 44,360 | 31,988 | 31,988 | 31,988 | 43,921 | 31,988 | 31,988 | 36,707 | 31,988 | 43,873 |
Weighted-average effect of potentially dilutive shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 444 |
Diluted (in shares) | ' | 49,566 | 49,564 | 44,870 | 31,988 | 31,988 | 31,988 | 44,407 | 31,988 | 31,988 | 36,707 | 31,988 | 44,317 |
Net income (loss) per share attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.26) | ($0.07) | $0.02 |
Diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.26) | ($0.07) | $0.02 |
Anti-dilutive securities excluded from diluted per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (in shares) | ' | 5,107 | ' | ' | ' | 14,309 | ' | ' | ' | ' | 4,490 | 13,792 | ' |
Redeemable convertible preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from diluted per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (in shares) | ' | ' | ' | ' | ' | 11,933 | ' | ' | ' | ' | ' | 11,933 | ' |
Restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from diluted per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (in shares) | ' | 480 | ' | ' | ' | ' | ' | ' | ' | ' | 102 | ' | ' |
Employee stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from diluted per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (in shares) | ' | 4,600 | ' | ' | ' | 2,376 | ' | ' | ' | ' | 4,388 | 1,859 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | 31-May-14 |
Blue Marble | Blue Marble | Elite Sales | Elite Sales | Elite Sales | Chairman | ||
item | item | item | |||||
Related party transactions | ' | ' | ' | ' | ' | ' | ' |
Duration for right of first refusal option exercisable from the date of the Memorandum | ' | '3 years | ' | ' | ' | ' | ' |
Equity interest (as a percent) | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' |
Obligation to fund operational shortfalls | ' | $0 | ' | $0 | ' | ' | ' |
Number of stockholders owned sales leads supply entities | ' | ' | ' | 1 | 1 | 1 | ' |
Amount of sales leads purchased | ' | ' | ' | 231 | 893 | 404 | ' |
Accounts payable due | ' | ' | ' | 0 | 65 | ' | ' |
Amount received from related party for cash bonus to long-term employees | $1,052 | ' | ' | ' | ' | ' | $1,052 |
Subsequent_events_Details
Subsequent events (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2012 | Aug. 31, 2014 |
RSUs | RSUs | Stock options | Stock options | Stock options | Stock options | |
Subsequent event | Subsequent event | |||||
Subsequent events | ' | ' | ' | ' | ' | ' |
RSU's granted (in shares) | 379 | 340,875 | 379 | 108 | ' | ' |
Vesting period | ' | '4 years | ' | ' | ' | '4 years |
Options granted (in shares) | ' | ' | 322 | 2,582 | 0 | 321,700 |
Options granted (in dollars per share) | ' | ' | $24.80 | $15.01 | ' | $24.80 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Consolidated States of Operations Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $31,109 | $28,647 | $33,766 | $23,905 | $22,369 | $20,262 | $24,006 | $17,200 | $15,826 | $108,687 | $77,294 | $55,096 |
Gross profit | 15,657 | 13,543 | 18,841 | 10,587 | 10,622 | 9,386 | 13,272 | 7,663 | 7,307 | 53,593 | 37,628 | 26,002 |
Operating income (loss) | -4,896 | -6,306 | 2,133 | -2,411 | -434 | -869 | 2,604 | -1,088 | -616 | -7,018 | 31 | 2,768 |
Net income (loss) | ($4,875) | ($6,704) | $1,150 | ($1,512) | ($44) | ($372) | $2,021 | ($627) | ($405) | ($7,110) | $617 | $1,688 |
Net income (loss) per share attributable to common stockholders, basic and diluted (in dollars per share) | ($0.10) | ($0.14) | $0.01 | ($0.07) | ($0.03) | ($0.03) | $0.03 | ($0.04) | ($0.04) | ' | ' | ' |
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 49,566 | 49,564 | 44,360 | 31,988 | 31,988 | 31,988 | 43,921 | 31,988 | 31,988 | 36,707 | 31,988 | 43,873 |
Diluted (in shares) | 49,566 | 49,564 | 44,870 | 31,988 | 31,988 | 31,988 | 44,407 | 31,988 | 31,988 | 36,707 | 31,988 | 44,317 |
Consolidated_Balance_Sheets1
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 |
In Thousands, unless otherwise specified | ||||||
Current assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $72,843 | $78,848 | $5,299 | $7,594 | $9,031 | $7,990 |
Accounts receivable, net | 799 | 756 | ' | 740 | ' | ' |
Prepaid expenses and other | 3,072 | 2,694 | ' | 1,875 | ' | ' |
Deferred income tax assets, net | 706 | 706 | ' | 602 | ' | ' |
Total current assets before funds held for clients | 77,420 | 83,004 | ' | 10,811 | ' | ' |
Funds held for clients | 432,225 | 417,261 | ' | 355,905 | ' | ' |
Total current assets | 509,645 | 500,265 | ' | 366,716 | ' | ' |
Long-term prepaid expenses | 303 | 313 | ' | ' | ' | ' |
Capitalized software, net | 5,574 | 5,093 | ' | 2,614 | ' | ' |
Property and equipment, net | 14,038 | 13,125 | ' | 8,586 | ' | ' |
Intangible assets, net | 6,130 | 6,320 | ' | ' | ' | ' |
Goodwill | 3,035 | 3,035 | ' | ' | ' | ' |
Total assets | 538,725 | 528,151 | ' | 377,916 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' |
Accounts payable | 1,520 | 2,133 | ' | 880 | ' | ' |
Taxes payable | 10 | 5 | ' | 207 | ' | ' |
Consideration related to acquisition | 600 | 2,985 | ' | ' | ' | ' |
Accrued expenses | 10,777 | 10,744 | ' | 6,794 | ' | ' |
Total current liabilities before client fund obligations | 12,907 | 15,867 | ' | 8,506 | ' | ' |
Client fund obligations | 432,225 | 417,261 | ' | 355,905 | ' | ' |
Total current liabilities | 445,132 | 433,128 | ' | 364,411 | ' | ' |
Deferred rent | 3,089 | 3,175 | ' | 2,317 | ' | ' |
Deferred income tax liabilities, net | 734 | 714 | ' | 269 | ' | ' |
Total liabilities | 448,955 | 437,017 | ' | 367,935 | ' | ' |
Stockholders' equity: | ' | ' | ' | ' | ' | ' |
Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued and outstanding at June 30, 2014 and September 30, 2014 | ' | ' | ' | ' | ' | ' |
Common stock, $0.001 par value, 155,000 shares authorized at June 30, and September 30, 2014, 49,564 shares issued and outstanding at June 30, 2014; and 49,577 shares issued and outstanding at September 30, 2014 | 50 | 50 | ' | 32 | ' | ' |
Additional paid-in capital | 128,766 | 125,255 | ' | 437 | ' | ' |
Accumulated deficit | -39,046 | -34,171 | ' | -27,061 | ' | ' |
Total stockholders' equity (deficit) | 89,770 | 91,134 | ' | -26,592 | -27,646 | -2,254 |
Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit) | $538,725 | $528,151 | ' | $377,916 | ' | ' |
Consolidated_Balance_Sheets_Pa1
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, except Per Share data, unless otherwise specified | |||
Consolidated Balance Sheets | ' | ' | ' |
Common Stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Common Stock, shares authorized | 155,000 | 155,000 | 66,667 |
Common Stock, shares issued | 49,577 | 49,564 | 31,988 |
Common Stock, shares outstanding | 49,577 | 49,564 | 31,988 |
Preferred Stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Preferred Stock, shares authorized | 5,000 | 5,000 | 0 |
Preferred Stock, shares issued | 0 | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 | 0 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' |
Recurring fees | $29,142 | $20,738 |
Interest income on funds held for clients | 363 | 353 |
Total recurring revenues | 29,505 | 21,091 |
Implementation services and other | 1,604 | 1,278 |
Total revenues | 31,109 | 22,369 |
Cost of revenues: | ' | ' |
Recurring revenues | 10,057 | 7,993 |
Implementation services and other | 5,395 | 3,754 |
Total cost of revenues | 15,452 | 11,747 |
Gross profit | 15,657 | 10,622 |
Operating expenses: | ' | ' |
Sales and marketing | 9,078 | 5,189 |
Research and development | 4,027 | 1,956 |
General and administrative | 7,448 | 3,911 |
Total operating expenses | 20,553 | 11,056 |
Operating income (loss) | -4,896 | -434 |
Other income (expense) | 49 | 28 |
Income (loss) before income taxes | -4,847 | -406 |
Income tax (expense) benefit | -28 | 362 |
Net income (loss) | -4,875 | -44 |
Net income (loss) attributable to common stockholders | ($4,875) | ($825) |
Net loss per share attributable to common stockholders, basic and diluted | ($0.10) | ($0.03) |
Weighted average number of shares of common stock used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 49,566 | 31,988 |
Consolidated_Statements_of_Cha2
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
In Thousands, unless otherwise specified | ||||
Balance at Jun. 30, 2011 | ($2,254) | $38 | $4,304 | ($6,596) |
Balance (in shares) at Jun. 30, 2011 | ' | 37,539 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Stock compensation expense | 203 | ' | 203 | ' |
Stock options exercised | 88 | ' | 88 | ' |
Exercised (in shares) | ' | 67 | ' | ' |
Net income | 1,688 | ' | ' | 1,688 |
Balance at Jun. 30, 2012 | -27,646 | 32 | ' | -27,678 |
Balance (in shares) at Jun. 30, 2012 | ' | 31,988 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Stock compensation expense | 523 | ' | 523 | ' |
Stock options exercised | 76 | ' | 76 | ' |
Exercised (in shares) | ' | 33 | ' | ' |
Net income | 617 | ' | ' | 617 |
Balance at Jun. 30, 2013 | -26,592 | 32 | 437 | -27,061 |
Balance (in shares) at Jun. 30, 2013 | 31,988 | 31,988 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Stock compensation expense | 5,284 | ' | 5,284 | ' |
Net income | -7,110 | ' | ' | -7,110 |
Balance at Jun. 30, 2014 | 91,134 | 50 | 125,255 | -34,171 |
Balance (in shares) at Jun. 30, 2014 | 49,564 | 49,564 | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Stock compensation expense | 3,445 | ' | 3,445 | ' |
Stock options exercised | 66 | ' | 66 | ' |
Exercised (in shares) | ' | 13 | ' | ' |
Net income | -4,875 | ' | ' | -4,875 |
Balance at Sep. 30, 2014 | $89,770 | $50 | $128,766 | ($39,046) |
Balance (in shares) at Sep. 30, 2014 | 49,577 | 49,577 | ' | ' |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Cash flows from operating activities: | ' |
Net income | ($4,875) |
Adjustments to reconcile to net cash provided by operating activities: | ' |
Stock-based compensation | 3,283 |
Depreciation and amortization | 1,931 |
Deferred income tax (benefit) expense | 20 |
Provision for doubtful accounts | 42 |
Loss on disposal of equipment | 30 |
Changes in operating assets and liabilities: | ' |
Accounts receivable | -85 |
Prepaid expenses | -368 |
Trade accounts payable | -245 |
Accrued expenses | 67 |
Net cash provided by operating activities | -200 |
Cash flows from investing activities: | ' |
Capitalized internally developed software costs | -912 |
Purchases of property and equipment | -2,499 |
Payments for acquisition | -2,385 |
Net change in funds held for clients | -14,964 |
Net cash provided by (used in) investing activities | -20,760 |
Cash flows from financing activities: | ' |
Net change in client funds obligation | 14,964 |
Payments on initial public offering costs | -75 |
Proceeds from exercise of stock options | 66 |
Net cash (used in) provided by financing activities | 14,955 |
Net Change in Cash and Cash Equivalents | -6,005 |
Cash and Cash Equivalents-Beginning of Year | 78,848 |
Cash and Cash Equivalents-End of Year | 72,843 |
Supplemental disclosure of non-cash investing and financing activities | ' |
Purchases of property and equipment, accrued but not paid | 488 |
Supplemental disclosure of cash flow information | ' |
Cash paid for income taxes | $2 |
Organization_and_Description_o2
Organization and Description of Business | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Organization and Description of Business | ' | ' |
Organization and Description of Business | ' | ' |
(1) Organization and Description of Business | (1) Organization and Description of Business | |
Paylocity Holding Corporation (the “Company”), through its wholly owned subsidiary, Paylocity Corporation, is a cloud-based provider of payroll and human capital management software solutions for medium-sized organizations. Services are provided in a Software-as-a-Service (“SaaS”) delivery model utilizing the Company’s cloud-based platform. Payroll services include collection, remittance and reporting of payroll liabilities to the appropriate federal, state and local authorities. | Paylocity Holding Corporation (the “Company”) is a cloud-based provider of payroll and human capital management software solutions for medium-sized organizations. Services are provided in a Software-as-a-Service (“SaaS”) delivery model utilizing the Company’s cloud-based platform. Payroll services include collection, remittance and reporting of payroll liabilities to the appropriate federal, state and local authorities. | |
The Company was formed on November 6, 2013 at which time Paylocity Corporation became a wholly-owned subsidiary resulting in the inclusion of Paylocity Corporation in the consolidated financial statements of Paylocity Holding Corporation. All holders of Paylocity Corporation equity instruments at the time were issued Paylocity Holding Corporation equity instruments with identical rights and obligations in exchange for their Paylocity Corporation equity instruments. Upon the completion of these transactions, Paylocity Holding Corporation became the sole stockholder of Paylocity Corporation. | ||
In March 2014, the Company amended its Certificate of Incorporation to execute a reverse three for two stock split on its common stock. All share and per share amounts in the Company’s audited consolidated financial statements and notes to the financial statement reflect the impact of this change on the number of shares authorized, issued, and outstanding and earnings per share. | ||
Initial Public Offering | ||
In March 2014, the Company completed its initial public offering (“IPO”) in which it issued and sold 5,367 shares of common stock and existing shareholders sold 2,735 shares of common stock at a public offering price of $17 per share. The Company did not receive any proceeds from the sale of common stock by the existing shareholders. The Company received net proceeds of $81,927 after deducting underwriting discounts and commissions of $6,387 and other offering expenses of $2,925. Upon the closing of the IPO, all shares of the Company’s then-outstanding redeemable convertible preferred stock automatically converted into 11,933 shares of its $0.001 par value common stock. | ||
In connection with the IPO, in March 2014, the Company amended its Certificate of Incorporation to increase the number of authorized common stock to 155,000 and reduce the number of authorized preferred stock to 5,000. |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||
Summary of Significant Accounting Policies | ' | ' | ||||||
Summary of Significant Accounting Policies | ' | ' | ||||||
(2) Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies | |||||||
(a) Consolidation and Use of Estimates | (a) Basis of Presentation, Consolidation, and Use of Estimates | |||||||
These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. | The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). | |||||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, software developed for internal use, valuation and useful lives of long-lived assets, definite-lived intangibles, goodwill, stock-based compensation, valuation of net deferred income tax assets and the best estimate of selling price for revenue recognition purposes. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. | The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, software developed for internal use, valuation and useful lives of long-lived assets, definite-lived intangibles, goodwill, stock-based compensation, valuation of net deferred income tax assets and the best estimate of selling price for revenue recognition purposes. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. | |||||||
(b) Interim Unaudited Consolidated Financial Information | The consolidated financial statements reflect the financial position and operating results of Paylocity Holding Corporation and include its wholly-owned subsidiary Paylocity Corporation. Intercompany accounts and transactions have been eliminated in consolidation. | |||||||
The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows. The results of operations for the three-month period ended September 30, 2014 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2014. | (b) Concentrations of Risk | |||||||
(c) Income Taxes | The Company regularly maintains cash balances that exceed Federal Depository Insurance Corporation limits. No individual client represents 10% or more of total revenues. For all periods presented, 100% of total revenues were generated by clients in the United States. | |||||||
Differences in the normal relationship between the income tax expense (benefit) and pre-tax income (loss) materially result from the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. | (c) Cash and Cash Equivalents | |||||||
(d) Stock-Based Compensation | The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||||||
The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards, including those under the 2014 Employee Stock Purchase Plan (“ESPP”), are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model and periodically updates the assumed forfeiture rates for actual experience over the option vesting term or the term of the ESPP purchase period. | (d) Accounts Receivable | |||||||
(e) Recently Issued Accounting Standards | Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the statements of cash flows. The Company maintains an allowance for doubtful accounts reflecting estimated potential losses in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our clients’ financial conditions, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Company reviews its allowance for doubtful accounts quarterly. Past due balances over 60 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all commercially reasonable means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. | |||||||
In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a “full retrospective” adoption or a “modified retrospective” adoption. The Company is currently evaluating which adoption method it will use. Early application is not permitted. The Company plans on adopting ASU 2014-09 beginning July 1, 2017 and is currently assessing the potential effects of these changes to its consolidated financial statements. | Activity in the allowance for doubtful accounts was as follows: | |||||||
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. | For the Years Ended June 30, | |||||||
2012 | 2013 | 2014 | ||||||
Balance at the beginning of the year | $80 | $114 | $118 | |||||
Charged to expense | 60 | 60 | 62 | |||||
Write-offs | -26 | -56 | -54 | |||||
Balance at the end of the year | $114 | $118 | $126 | |||||
(e) Prepaid expenses and other assets | ||||||||
Prepaid expenses and other current assets consist of office space security deposits, deposits with vendors, prepaid licensing fees, supplies, and time clocks available for sale or lease. | ||||||||
(f) Property and Equipment and Long-Lived Assets | ||||||||
Property and equipment are stated at cost. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets, generally three to seven years for most classes of assets, or over the term of the related lease for leasehold improvements. | ||||||||
Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. | ||||||||
(g) Internal-Use Software | ||||||||
The Company applies ASC 350-40, Intangibles—Goodwill and Other—Internal-Use Software, to the accounting for costs of internal-use software. Software development costs are capitalized when application development begins, it is probable that the project will be completed, and the software will be used as intended. Costs associated with preliminary project stage activities, training, maintenance and all other post implementation stage activities are expensed as incurred. The Company also capitalizes certain costs related to specific upgrades and enhancements when it is probable the expenditures will result in significant additional functionality. The capitalization policy provides for the capitalization of certain payroll costs for employees who are directly associated with developing internal-use software as well as certain external direct costs. Capitalized employee costs are limited to the time directly spent on such projects. | ||||||||
Capitalized internal-use software costs are amortized on a straight-line basis over the estimated useful lives, generally 18 to 24 months, depending on the expected life of the application enhancement. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. | ||||||||
(h) Goodwill and other intangible assets, net of accumulated amortization | ||||||||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. As described in Note 5, the Company has recorded goodwill in connection with the acquisition of BFKMS, Inc. Goodwill is not amortized, but instead is tested for impairment at least annually. ASU 2011-08, Testing Goodwill for Impairment provides an entity the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step impairment test. If it is the case that the estimated fair value of a reporting unit is less than its carrying amount, including goodwill, the two-step goodwill impairment test is required. Otherwise no further analysis is required. | ||||||||
If the two-step goodwill impairment test is required, first the fair value of the reporting unit is compared with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the Company must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. | ||||||||
The Company will perform its annual impairment review of goodwill in its fiscal fourth quarter and when a triggering event occurs between annual impairment tests. However, given that the Company did not have recorded goodwill until its fiscal fourth quarter of 2014, no impairment tests were required to be completed. | ||||||||
Intangible assets are comprised primarily of client list acquisitions and are reported net of accumulated amortization on the Consolidated Balance Sheets. Client relationships use the straight-line method of amortization over an accelerated nine year time frame, while the non-solicitation agreement uses the straight-line method of amortization over the three year life of the agreement. The Company tests intangible assets for potential impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. | ||||||||
(i) Deferred Rent | ||||||||
The Company has operating lease agreements for its office space, which contain provisions for future rent increases, periods of rent abatement and build-out allowances. The Company records monthly rent expense for each lease equal to the total payments due over the lease term, divided by the number of months of the lease term. Build-out allowances are recorded as part of leasehold improvements and the incentive is amortized over the lease term against depreciation. The difference between recorded rent expense and the amount paid is reflected as “Deferred Rent” in the accompanying balance sheets. | ||||||||
(j) Income Taxes | ||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | ||||||||
The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Accordingly, the impact of the American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013, on deferred tax assets and liabilities and current taxes for the last six months of the fiscal year ended June 30, 2012 was recognized in the year ended June 30, 2013. Research and development tax credits are recognized using the flow-through method in the year the credit arises. | ||||||||
Valuation allowances are provided when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Significant management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company is required to consider all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income among other items, in determining whether a full or partial release of its valuation allowance is required. The Company is also required to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. | ||||||||
The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties as an element of income tax expense. | ||||||||
(k) Revenue Recognition | ||||||||
The Company recognizes revenue in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 605-25, Revenue Recognition—Multiple Element Arrangements, Accounting Standards Update No. 2009-13, Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”), and Staff Accounting Bulletin 104, Revenue Recognition. Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the fee is fixed or determinable and collection of the revenue is probable. | ||||||||
The Company derives its revenue predominantly from recurring fees and non-recurring service fees. Recurring fees are collected under agreements for payroll, timekeeping, HR-related cloud-based computing services and monthly time clock rentals, all of which are generally cancellable by the client on 60 days’ notice or less. Non-recurring service fees consist mainly of implementation and custom reporting services. Such fees are billed to clients and revenue is recorded upon completion of the service. The Company’s agreements do not include general rights of return and do not provide clients with the right to take possession of the software supporting the services being provided. As such, the agreements are accounted for as service contracts. | ||||||||
Interest income collected on funds held for clients is recognized in recurring revenues when earned as the collection, holding and remittance of these funds are critical components of providing these services. | ||||||||
Most multiple-element arrangements include a short implementation services phase which involves establishing the client within and loading data into the Company’s cloud-based applications. Such activities are performed by either the Company or a third party vendor. Major recurring fees included in multiple-element arrangements include: | ||||||||
· Payroll processing and related services, including payroll reporting and tax filing services delivered on a weekly, biweekly, semi-monthly, or monthly basis depending upon the payroll frequency of the client and on an annual basis if a client selects W-2 preparation and processing services, | ||||||||
· Time and attendance reporting services, including time clock rentals, delivered on a monthly basis, and | ||||||||
· Cloud-based HR software solutions, including employee administration and benefits enrollment and administration, delivered on a monthly basis. | ||||||||
For each agreement, the Company evaluates whether the individual deliverables qualify as separate units of accounting. If one or more of the deliverables does not have standalone value upon delivery, which is typical of the payroll and human capital management (“HCM”) services our customers contract for, the deliverables that do not have standalone value are generally combined and treated as a single unit of accounting by frequency of occurrence for the product category involved such as biweekly payroll or monthly timekeeping services. Revenues for arrangements treated as a single unit of accounting are generally recognized within the same month that the services are rendered given that the agreements are cancellable with 60 days’ or less notice. | ||||||||
In determining whether implementation services can be accounted for separately from recurring revenues, the Company considers the nature of the implementation services and the availability of the implementation services from other vendors. The Company was able to establish standalone value for implementation activities based on the activity of third-party vendors that perform these services and accounts for such implementation services separate from the recurring revenues. | ||||||||
If the recurring services have standalone value upon delivery, the Company accounts for each separately and revenues are recognized as services are delivered with allocation of consideration based on the relative selling price method as established in ASU 2009-13. That method requires the selling price of each element in a multiple-deliverable arrangement to be based on, in descending order: (i) vendor specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of fair value (“TPE”) or (iii) management’s best estimate of the selling price (“BESP”). | ||||||||
The Company is not able to establish VSOE because the deliverables are sold across an insufficiently narrow range of prices on a stand-alone basis and is also not able to establish TPE because no third-party offerings are reasonably comparable to the Company’s offerings. The Company thus established its BESP by service offering, requiring the use of significant estimates and judgment. The Company considers numerous factors, including the nature of the deliverables themselves; the geography of the sale; and pricing and discounting practices utilized by the Company’s sales force. Arrangement consideration is allocated to each deliverable based on the established BESP and subject to the limitation that because the arrangements are cancellable with 60 days’ or less notice, recurring revenue is not allocated to any deliverable until the consideration has been earned, typically with each payroll cycle or monthly, depending on the service. | ||||||||
Revenues generated from sales through partners or utilizing partner services are recognized in accordance with the appropriate accounting guidance of Accounting Standards Codification 605-45, Principal Agent Considerations. The Company reports revenue generated through partners or utilizing partner services at the gross amount billed to clients when (i) the Company is the primary obligor, (ii) the Company has latitude to establish the price charged and (iii) the Company bears the credit risk in the transaction. | ||||||||
Sales taxes collected from clients and remitted to governmental authorities where applicable are accounted for on a net basis and therefore are excluded from revenues in the statements of operations. | ||||||||
(l) Cost of Revenues | ||||||||
Cost of revenues consists primarily of the cost of recurring revenues and implementation services which are expensed when incurred. Cost of revenues for recurring revenues consists primarily of costs to provide recurring services and support to our clients, and includes amortization of capitalized software. Cost of revenues for implementation services and other consists primarily of costs to provide implementation services and costs related to sales of payroll-related forms and time clocks. | ||||||||
(m) Advertising | ||||||||
Advertising costs are expensed as incurred. Advertising costs amounted to $32, $27 and $24 for the years ended June 30, 2012, 2013 and 2014, respectively. | ||||||||
(n) Equity Incentive Plan | ||||||||
The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model and periodically updates the assumed forfeiture rates for actual experience over their vesting terms. | ||||||||
Excess tax benefits of awards that are recognized in equity related to stock option exercises are reflected as financing cash inflows. The total excess income tax benefits recognized for stock-based compensation arrangements was $206 and $63 for the years ended June 30, 2012 and 2013, respectively. There were no excess income tax benefits recognized for stock-based compensation arrangements for the year ended June 30, 2014. | ||||||||
(o) Commitments and Contingencies | ||||||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. | ||||||||
(p) Segment Information | ||||||||
The Company’s chief operating decision maker reviews the financial results of the Company in total when evaluating financial performance and for purposes of allocating resources. The Company has thus determined that it operates in a single cloud-based software solution reporting segment. | ||||||||
(q) Recently Issued Accounting Standards | ||||||||
In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a “full retrospective” adoption or a “modified retrospective” adoption. The Company is currently evaluating which adoption method it will use. Early application is not permitted. The Company plans on adopting ASU 2014-09 beginning July 1, 2017 and is currently assessing the potential effects of these changes to its consolidated financial statements. | ||||||||
From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. |
Balance_Sheet_Information
Balance Sheet Information | 3 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Balance Sheet Information | ' | |||||||||
Balance Sheet Information | ' | |||||||||
(3) Balance Sheet Information | ||||||||||
The following tables provide details of selected consolidated balance sheet items: | ||||||||||
Activity in the allowance for doubtful accounts was as follows: | ||||||||||
Balance at June 30, 2014 | $ | 126 | ||||||||
Charged to expense | 42 | |||||||||
Write-offs | (5 | ) | ||||||||
Balance at September 30, 2014 | $ | 163 | ||||||||
Capitalized software and accumulated amortization were as follows: | ||||||||||
June 30, | September 30, | |||||||||
2014 | 2014 | |||||||||
Internally developed software | $ | 19,863 | $ | 20,937 | ||||||
Accumulated amortization | (14,770 | ) | (15,363 | ) | ||||||
Capitalized software, net | $ | 5,093 | $ | 5,574 | ||||||
Amortization of capitalized internal-use software costs is included in Cost of Revenues-Recurring Revenues and amounted to $605 and $593 for the three months ended September 30, 2013 and 2014, respectively. | ||||||||||
Property and equipment consist of the following: | ||||||||||
June 30, | September 30, | |||||||||
2014 | 2014 | |||||||||
Office equipment | $ | 1,449 | $ | 1,631 | ||||||
Computer equipment | 7,726 | 9,310 | ||||||||
Furniture and fixtures | 2,317 | 2,357 | ||||||||
Software | 4,963 | 4,978 | ||||||||
Leasehold improvements | 6,059 | 6,106 | ||||||||
Time clocks rented by clients | 2,360 | 2,460 | ||||||||
24,874 | 26,842 | |||||||||
Accumulated depreciation | (11,749 | ) | (12,804 | ) | ||||||
Property and equipment, net | $ | 13,125 | $ | 14,038 | ||||||
Depreciation expense amounted to $786 and $1,148 for the three months ended September 30, 2013 and 2014, respectively. | ||||||||||
The components of accrued expenses were as follows: | ||||||||||
June 30, | September 30, | |||||||||
2014 | 2014 | |||||||||
Accrued payroll and personnel costs | $ | 8,781 | $ | 8,756 | ||||||
Current portion of deferred rent | 577 | 624 | ||||||||
Other | 1,386 | 1,397 | ||||||||
Total accrued expenses | $ | 10,744 | $ | 10,777 | ||||||
Intangible assets consist of the following: | ||||||||||
June | September | Weighted | ||||||||
30, 2014 | 30, 2014 | Average | ||||||||
Useful | ||||||||||
Life | ||||||||||
Client relationships | $ | 6,180 | $ | 6,180 | 9 years | |||||
Non-solicitation agreement | 220 | 220 | 3 years | |||||||
Total | 6,400 | 6,400 | ||||||||
Accumulated amortization | (80 | ) | (270 | ) | ||||||
Intangible assets, net | $ | 6,320 | $ | 6,130 | ||||||
There was no amortization expense for acquired intangible assets for the three months ended September 30, 2013. Amortization expense for acquired intangible assets was $190 for the three months ended September 30, 2014. | ||||||||||
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Fair Value Measures | ' | ' |
Fair Value Measurement | ' | ' |
(4) Fair Value Measurement | (4) Fair Value Measures | |
The Company applies the fair value measurement and disclosure provisions of ASC 820, Fair Value Measurements and Disclosures, and ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | The Company applies the fair value measurement and disclosure provisions of ASC 820, Fair Value Measurements and Disclosures, and ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |
Level 1—Quoted prices in active markets for identical assets and liabilities. | · Level 1—Quoted prices in active markets for identical assets and liabilities. | |
Level 2—Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | · Level 2—Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | |
Substantially all of the Company’s assets that are measured at fair value on a recurring basis are measured using Level 1 inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at June 30, 2014 and September 30, 2014 based upon the short-term nature of the assets and liabilities. | Substantially all of the Company’s assets that are measured at fair value on a recurring basis are measured using Level 1 inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at June 30, 2013 and 2014 based upon the short-term nature of the assets and liabilities. | |
Benefit_Plans1
Benefit Plans | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||||||||||||||||||
Benefit Plans | ' | ' | ||||||||||||||||||||||
Benefit Plans | ' | ' | ||||||||||||||||||||||
(5) Benefit Plans | (15) Benefit Plans | |||||||||||||||||||||||
(a) Equity Incentive Plan | (a) Equity Incentive Plan | |||||||||||||||||||||||
The Company maintains a 2008 Equity Incentive Plan (the “2008 Plan”) and a 2014 Equity Incentive Plan (the “2014 Plan”) pursuant to which the Company has reserved 7,032 shares of its common stock for issuance to its employees, directors and non-employee third parties. The 2014 Plan serves as the successor to the 2008 plan and permits the granting of options to purchase common stock and other equity incentives at the discretion the compensation committee of the Company’s board of directors. No new awards will be issued under the 2008 Plan as of the effective date of the 2014 Plan. Outstanding awards under the 2008 Plan continue to be subject to the terms and conditions of the 2008 Plan. | The Company maintains a 2008 Equity Incentive Plan (the “2008 Plan”) and a 2014 Equity Incentive Plan (the ‘2014 Plan”) pursuant to which the Company has reserved 7,071 shares of its common stock for issuance to its employees, directors and non-employee third parties. The 2014 Plan serves as the successor to the 2008 plan and permits the granting of options to purchase common stock and other equity incentives at the discretion the compensation committee of the Company’s board of directors. No new awards will be issued under the 2008 Plan as of the effective date of the 2014 Plan. Outstanding awards under the 2008 Plan continue to be subject to the terms and conditions of the 2008 Plan. | |||||||||||||||||||||||
Under the 2008 and 2014 Plans, the exercise price of each option is not less than the fair value of a share of common stock on the grant date. As of September 30, 2014, the Company had 1,952 shares allocated to the 2014 Plan, but not yet issued or subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options; however, previously acquired shares may be reissued to satisfy future issuances. The options typically vest ratably over a three or four year period and expire 10 years from the grant date. Compensation expense for the fair value of the options at their grant date is recognized ratably over the vesting schedule. | Under the 2008 and 2014 Plans, the exercise price of each option is not less than the fair value of a share of common stock on the grant date. As of June 30, 2014, the Company had 2,581 shares allocated to the 2014 Plan, but not yet issued or subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options; however, previously acquired shares may be reissued to satisfy future issuances. The options typically vest ratably over a three or four year period and expire 10 years from the grant date. Compensation expense for the fair value of the options at their grant date is recognized ratably over the vesting schedule. | |||||||||||||||||||||||
Stock-based compensation expense related to stock options and the vesting of Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”) is included in the following line items in the accompanying unaudited consolidated statements of operations: | Stock-based compensation expense related to stock options and the vesting of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) is included in the following line items in the accompanying audited consolidated statements of operations: | |||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
September 30, | Year ended June 30, | |||||||||||||||||||||||
2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||||||||||
Cost of revenue — recurring | $ | — | $ | 348 | Cost of revenue - recurring | $— | $— | $496 | ||||||||||||||||
Cost of revenue — non-recurring | — | 291 | Cost of revenue – non-recurring | — | — | 424 | ||||||||||||||||||
Sales and marketing | — | 884 | Sales and marketing | — | — | 765 | ||||||||||||||||||
Research and development | — | 535 | Research and development | — | — | 615 | ||||||||||||||||||
General and administrative | 181 | 1,225 | General and administrative | 203 | 523 | 2,629 | ||||||||||||||||||
Total stock-based compensation | $ | 181 | $ | 3,283 | Total stock-based compensation | $203 | $523 | $4,929 | ||||||||||||||||
In addition, the Company capitalized $162 of stock compensation costs in its internal use software in the three month period ended September 30, 2014. No such amounts were capitalized in internal use software in the three month period ended September 30, 2013. | ||||||||||||||||||||||||
In addition, the Company capitalized $325 of stock compensation costs in its internal use software in the year ended June 30, 2014. No such amounts were capitalized in internal use software in years ended June 30, 2012 and 2013. | ||||||||||||||||||||||||
The Company values stock options using the Black-Scholes option-pricing model, which requires the input of subjective assumptions, including the risk-free rate, expected life, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for U.S. Treasury securities consistent with the expected term of the Company’s employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. The Company utilizes the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. The Company has a limited history of trading as a public company. Therefore, the expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options. The Company assumed no dividend yield because it does not expect to pay dividends in the near future, which is consistent with the Company’s history of not paying dividends. | ||||||||||||||||||||||||
The Company values stock options using the Black-Scholes option-pricing model, which requires the input of subjective assumptions, including the risk-free rate, expected life, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for U.S. Treasury securities consistent with the expected term of the Company’s employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. The Company utilizes the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. The Company has a limited history of trading as a public company. Therefore, the expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options. The Company assumed no dividend yield because it does not expect to pay dividends in the near future, which is consistent with the Company’s history of not paying dividends. | ||||||||||||||||||||||||
The following table summarizes the assumptions used for estimating the fair value of stock options granted for the three months ended September 30: | ||||||||||||||||||||||||
The following table summarizes the assumptions used for estimating the fair value of stock options granted for the years ended June 30: | ||||||||||||||||||||||||
Period ended | ||||||||||||||||||||||||
September 30, | Year ended June 30, | |||||||||||||||||||||||
2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||||||||||
Valuation assumptions: | Valuation assumptions: | |||||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | Expected dividend yield | N/A—no grants | 0% | 0% | ||||||||||||||||
Expected volatility | 29.5 | % | 43.9 | % | Expected volatility | N/A—no grants | 30.70% | 29.5% - 44.5% | ||||||||||||||||
Expected term (years) | 4.0 | 6.25 | Expected term (years) | N/A—no grants | 4 | 4.0 - 6.0 | ||||||||||||||||||
Risk-free interest rate | 0.5 | % | 1.91 | % | Risk-free interest rate | N/A—no grants | 0.61% | 0.52% - 1.94% | ||||||||||||||||
The following table summarizes changes during the quarter in the number of shares available for grant under our equity incentive plans: | Stock option activity during the periods indicated is as follows: | |||||||||||||||||||||||
Number of | Outstanding Options | |||||||||||||||||||||||
Shares | Shares | Number of | Weighted | Weighted | Aggregate | |||||||||||||||||||
Available for grant at July 1, 2014 | 2,581 | Available for | shares | average | average | intrinsic | ||||||||||||||||||
RSU’s granted | (379 | ) | Grant | exercise | remaining | value | ||||||||||||||||||
Options granted | (322 | ) | price | contractual | ||||||||||||||||||||
Forfeitures | 97 | term | ||||||||||||||||||||||
Shares removed | (25 | ) | Balance at June 30, 2013 | 812 | 1,859 | $3.25 | 8.22 | $7,028 | ||||||||||||||||
Available for grant at September 30, 2014 | 1,952 | Additional shares authorized, net | 4,406 | — | ||||||||||||||||||||
RSU’s granted | -108 | — | ||||||||||||||||||||||
Shares removed represents forfeitures of grants made under the 2008 Plan. As noted above, no new awards will be issued under this plan. | Options granted | -2,582 | 2,582 | 15.01 | 9.58 | |||||||||||||||||||
Options forfeited | 53 | -53 | 17 | — | ||||||||||||||||||||
The table below presents stock option activity during the three months ended September 30, 2014: | Exercised | — | — | — | — | |||||||||||||||||||
Balance at June 30, 2014 | 2,581 | 4,388 | $10.00 | 8.58 | $51,017 | |||||||||||||||||||
Outstanding Options | Options exercisable at June 30, 2014 | 1,083 | $2.29 | 6.65 | $20,947 | |||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | Options vested and expected to vest at June 30, 2014 | 3,853 | $10.17 | 8.53 | $44,162 | ||||||||||||||||
shares | average | average | intrinsic | |||||||||||||||||||||
exercise | remaining | value | The weighted average grant date fair value of options granted during the years ended June 30, 2013 and 2014 was $1.22 and $6.39, respectively. There were no options granted in fiscal 2012. The total intrinsic value of options exercised during the years ended June 30, 2012 and 2013 was $241 and $87, respectively. There were no options exercised in the year ended June 30, 2014. | |||||||||||||||||||||
price | contractual | |||||||||||||||||||||||
term | The Company may also grant RSAs and RSUs under the Plan with terms determined at the discretion of the Compensation Committee of the Company’s Board of Directors. Prior to the IPO, the Company had 269 RSAs outstanding to certain employees. The RSAs vested and were issued as common shares as a result of the satisfaction of the vesting criteria upon the completion of the IPO in March 2014 at which time the Company recorded compensation expense in the amount of $351 which is included in the compensation expense recognition table above. Concurrent with the IPO in March 2014, the Company granted 108 RSUs primarily to certain employees and members of its Board of Directors of which 93 vest over a period of six months commencing on the date of the IPO, 6 vested immediately, 4 vest one year from the date of the IPO, and 5 vest two years from the date of the IPO. Compensation expense related to these newly issued RSUs is reflected in general and administrative expense, included in the compensation expense table above, is based on the fair value of the instruments on the date of grant and is recognized in the period between the date of grant and the date of vesting as the vesting is based on the passage of time. In addition, approximately 2 of the 6 RSUs that vested immediately were issued to consultants that provided professional services directly related to the IPO and, thus, the Company recognized the $30 cost associated with those RSUs as an offering cost offsetting the net proceeds from the IPO. | |||||||||||||||||||||||
Balance at July 1, 2014 | 4,388 | $ | 10 | 8.58 | $ | 51,017 | ||||||||||||||||||
Options granted | 322 | 24.8 | At June 30, 2014, there was $11,231 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option and restricted stock awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.62 years. | |||||||||||||||||||||
Options forfeited | (97 | ) | 14.29 | |||||||||||||||||||||
Options exercised | (13 | ) | 4.87 | (b) 401(k) Plan | ||||||||||||||||||||
Balance at September 30, 2014 | 4,600 | $ | 10.96 | 8.4 | $ | 41,628 | ||||||||||||||||||
Options exercisable at September 30, 2014 | 1,430 | $ | 3.11 | 6.79 | $ | 23,656 | The Company maintains a 401(k) plan with a safe harbor matching provision that covers all eligible employees. The Company matches 50% of the employees’ contributions up to 6% of their gross pay. Contributions were approximately $514, $720 and $1,122 for the years ended June 30, 2012, 2013 and 2014, respectively. | |||||||||||||||||
Options vested and expected to vest at September 30, 2014 | 4,358 | $ | 10.63 | 8.34 | $ | 40,770 | ||||||||||||||||||
The weighted average grant date fair value of options granted during the three-month periods ended September 30, 2013 and 2014 was $1.71, and $11.15, respectively. The total intrinsic value of options exercised during the three month period ended September 30, 2014 was $224. There were no options exercised in the three month period ended September 30, 2013. At September 30, 2014, there was $12,337 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.55 years. | ||||||||||||||||||||||||
The Company may also grant RSAs and RSUs under the 2014 Plan with terms determined at the discretion of the Compensation Committee of the Company’s Board of Directors. The following table represents restricted stock unit activity during the three months ended September 30, 2014: | ||||||||||||||||||||||||
Units | Weighted | |||||||||||||||||||||||
average | ||||||||||||||||||||||||
grant date | ||||||||||||||||||||||||
fair value | ||||||||||||||||||||||||
RSU balance at July 1, 2014 | 102 | $ | 17 | |||||||||||||||||||||
RSUs granted | 379 | 24.75 | ||||||||||||||||||||||
RSUs vested | — | — | ||||||||||||||||||||||
RSUs cancelled/forfeited | (1 | ) | 17 | |||||||||||||||||||||
RSU balance at September 30, 2014 | 480 | $ | 23.11 | |||||||||||||||||||||
RSUs expected to vest at September 30, 2014 | 440 | $ | 22.96 | |||||||||||||||||||||
At September 30, 2014, there was $7,818 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.20 years. | ||||||||||||||||||||||||
(b) Employee Stock Purchase Plan | ||||||||||||||||||||||||
The Company’s 2014 Employee Stock Purchase Plan (“ESPP”) was adopted by the Board of Directors and approved by the stockholders on February 6, 2014 and was effective upon completion of the Company’s initial public offering. | ||||||||||||||||||||||||
Under the Company’s ESPP, the Company can grant stock purchase rights to all eligible employees during specific offering periods not to exceed twenty-seven months. Each offering period will begin on the first trading day on or after May 16 and November 16 of each year, effective after the first offering period after the Company’s initial public offering (“IPO”). Shares are purchased through employees’ payroll deductions, up to a maximum of 10% of employees’ compensation for each purchase period, at a purchase price equal to 85% of the lesser of the fair market value of the Company’s common stock at the first trading day of the applicable offering period or the purchase date. Participants may purchase up to $25 worth of common stock or 2 shares of common stock in any one year. The ESPP is considered compensatory and results in compensation expense. | ||||||||||||||||||||||||
A total of one-million shares of common stock have been reserved for future issuance under the ESPP, none of which have been issued as of September, 2014 as the initial offering period has not been completed. The number of shares of common stock reserved for issuance under the ESPP will increase automatically each year, beginning on January 1, 2015 and continuing through and including January 1, 2024. The number of shares added each year will be equal to the lesser of (a) 400, (b) seventy-five one hundredths percent (0.75%) of the number of shares of common stock of the Company issued and outstanding on the immediately preceding December 31, or (c) an amount determined by the Company’s board of directors. | ||||||||||||||||||||||||
The Company commenced its initial post-IPO ESPP four month offering period on July 16, 2014. The Company recorded compensation expense attributable to the ESPP of $130 for the three-month period ended September 30, 2014 which is included in the summary of stock-based compensation expense above. The grant date fair value of the ESPP offering period was estimated using the following weighted average assumptions: | ||||||||||||||||||||||||
Period ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
Valuation assumptions: | ||||||||||||||||||||||||
Expected dividend yield | N/A | 0 | % | |||||||||||||||||||||
Expected volatility | N/A | 41.7 | % | |||||||||||||||||||||
Expected term (years) | N/A | 0.3 | ||||||||||||||||||||||
Risk-free interest rate | N/A | 0.04 | % | |||||||||||||||||||||
(c) 401(k) Plan | ||||||||||||||||||||||||
The Company maintains a 401(k) plan with a safe harbor matching provision that covers all eligible employees. The Company matches 50% of the employees’ contributions up to 6% of their gross pay. Contributions were approximately $248 and $382 for the three months ended September 30, 2013 and 2014. | ||||||||||||||||||||||||
Commitments_and_Contingencies1
Commitments and Contingencies | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Commitments and Contingencies | ' | ' |
Commitments and Contingencies | ' | ' |
(6) Commitments and Contingencies | (16) Commitments and Contingencies | |
Reseller Agreements | (a) Employment Agreements | |
The Company had agreements with two organizations that sell the Company’s offerings and services in defined areas of the country. The Company exercised its right to terminate the first reseller agreement and acquired certain assets of the reseller in May 2014 as described in Note 5 of the audited consolidated financial statements and related notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2014. The Company paid the first reseller $614 during the three months ended September 30, 2013, under the reseller agreement and paid the first reseller $2,385 during the three months ended September 30, 2014 under the terms of the asset purchase agreement signed at closing in May 2014. | The Company has employment agreements with certain of its key officers. The agreements allow for minimum annual compensation increases, participation in equity incentive plans and bonuses for annual performance as well as certain change of control events as defined in the agreements. | |
The initial term of the second reseller agreement commenced in June 2009 and is set to expire in June 2016 unless renewed or terminated. The second reseller agreement provided that the reseller may terminate the agreement by providing nine months’ prior notice or upon an initial public offering by the Company. The Company amended this agreement in December of 2013 to provide that the reseller may not give a nine-month termination notice until after the earlier of (i) six months following the closing of an initial public offering by the Company or (ii) December 31, 2014. In addition, the Company, but not the reseller, has the right to terminate the agreement at any time. If a termination were to occur, the purchase price of the assets would be equal to 3.3 times the net revenues of the reseller for the 12 months preceding the termination effective date. The Company paid the second reseller $492 and $635 during the three-month periods ended September 30, 2013 and 2014, respectively. | (b) Litigation | |
From time to time, the Company is subject to litigation arising in the ordinary course of business. Many of these proceedings are covered in whole or in part by insurance. In the opinion of the Company’s management, the ultimate disposition of any matters currently outstanding or threatened will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity. | ||
(c) Reseller Agreements | ||
The Company had agreements with two resellers, one of which was terminated in March 2014. The initial term of the first reseller agreement commenced in February 2007 and was set to expire in February 2016 unless renewed. The initial term of the second reseller agreement commenced in June 2009 and is set to expire in June 2016 unless renewed. Each of the Company’s reseller agreements provides that the Company is required upon a termination of the agreement to acquire the assets of the reseller. | ||
The first reseller agreement provided that either party may terminate the agreement by electing not to renew the agreement beyond its original term. The Company, but not the reseller, also had the right to terminate the agreement at any time following the completion of an initial public offering by the Company. The Company exercised its right to terminate the agreement in April 2014 and closed on the purchase of the reseller’s client base in May 2014. See Note 5 for further information. The Company paid the first reseller $1,693, $2,377 and $2,495 during fiscal years 2012, 2013 and 2014, respectively. | ||
The second reseller agreement provided that the reseller may terminate the agreement by providing nine months’ prior notice or upon an initial public offering by the Company. The Company amended this agreement in December of 2013 to provide that the reseller may not give a nine-month termination notice until after the earlier of (i) six months following the closing of an initial public offering by the Company or (ii) December 31, 2014. In addition, the Company, but not the reseller, now has the right to terminate the agreement at any time after the date that is six months following the completion of an initial public offering by the Company. If a termination were to occur, the purchase price of the resellers assets to be acquired would be equal to 3.3 times the net revenues of the reseller for the 12 months preceding the termination effective date. The Company paid the second reseller $1,324, $1,783 and $2,081 during fiscal years 2012, 2013 and 2014, respectively. |
Earnings_Per_Share1
Earnings Per Share | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Earnings Per Share | ' | ' | ||||||||||||||
Earnings Per Share | ' | ' | ||||||||||||||
(7) Earnings Per Share | (17) Earnings Per Share | |||||||||||||||
For the periods presented prior to the Company’s IPO, basic and diluted net loss per common share is presented in conformity with the two-class method required for participating securities. Concurrently with the closing of the Company’s IPO on March 24, 2014, all shares of outstanding Preferred Stock automatically converted into 11,933 shares of the Company’s common stock. Following the date of the IPO, the two-class method was no longer required as the Company has one class of securities issued and outstanding. | For the periods presented prior to the Company’s IPO, basic and diluted net income (loss) per common share is presented in conformity with the two-class method required for participating securities. Concurrently with the closing of the Company’s IPO on March 24, 2014, all shares of outstanding Preferred Stock automatically converted into 11,933 shares of the Company’s common stock. Following the date of the IPO, the two-class method was no longer required as the Company has one class of securities issued and outstanding. | |||||||||||||||
Prior to the conversion of the Redeemable Convertible Preferred Stock, holders of Series A and Series B Preferred Stock each were entitled to liquidation preferences payable prior and in preference to any dividends on any shares of the Company’s common stock. In the event a dividend was paid on common stock, the holders of Preferred Stock were entitled to a proportionate share of any such dividend as if they were holders of common stock (on an as-if converted basis). The holders of the Company’s Preferred Stock did not have a contractual obligation to share in the losses of the Company. The Company considered its Preferred Stock to be participating securities and, in accordance with the two-class method, earnings allocated to Preferred Stock and the related number of outstanding shares of Preferred Stock have been excluded from the computation of basic and diluted net income (loss) per common share. | Prior to the conversion of the Redeemable Convertible Preferred Stock, holders of Series A and Series B Preferred Stock each were entitled to liquidation preferences payable prior and in preference to any dividends on any shares of the Company’s common stock. In the event a dividend was paid on common stock, the holders of Preferred Stock were entitled to a proportionate share of any such dividend as if they were holders of common stock (on an as-if converted basis). The holders of the Company’s Preferred Stock did not have a contractual obligation to share in the losses of the Company. The Company considered its Preferred Stock to be participating securities and, in accordance with the two-class method, earnings allocated to Preferred Stock and the related number of outstanding shares of Preferred Stock have been excluded from the computation of basic and diluted net income (loss) per common share. | |||||||||||||||
Under the two-class method, net loss attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income less current period Redeemable Convertible Preferred Stock cumulative dividends, between common stock and Redeemable Convertible Preferred Stock. In computing diluted net loss attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. | Under the two-class method, net income (loss) attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income less current period Redeemable Convertible Preferred Stock cumulative dividends, between common stock and Redeemable Convertible Preferred Stock. In computing diluted net income (loss) attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. | |||||||||||||||
Basic net loss per common share is computed using the weighted-average number of common shares outstanding during the period. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends have been declared but were not obligated to participate in any losses generated by the Company, basic net income per share is computed using the weighted-average number of common shares outstanding during the period plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis. | Basic net loss per common share is computed using the weighted-average number of common shares outstanding during the period. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends have been declared but were not obligated to participate in any losses generated by the Company, basic net income per share is computed using the weighted-average number of common shares outstanding during the period plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis. | |||||||||||||||
Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period and, if dilutive, potential common shares outstanding during the period. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends be declared but were not obligated to participate in any losses generated by the Company, diluted net income per share is computed using the weighted-average number of common shares plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method. | Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period and, if dilutive, potential common shares outstanding during the period. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends be declared but were not obligated to participate in any losses generated by the Company, diluted net income per share is computed using the weighted-average number of common shares plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method. | |||||||||||||||
The following table presents the calculation of basic and diluted net loss per share: | The following table presents the calculation of basic and diluted net income (loss) per share: | |||||||||||||||
Three months ended | Year ended June 30, | |||||||||||||||
September 30, | 2012 | 2013 | 2014 | |||||||||||||
2013 | 2014 | Basic net income (loss) per share: | ||||||||||||||
Basic net loss per share: | Numerator: | |||||||||||||||
Numerator: | Net Income (Loss) | $1,688 | $617 | ($7,110) | ||||||||||||
Net Loss | $ | (44 | ) | $ | (4,875 | ) | Less: Preferred dividend rights attributable to participating securities | -690 | -2,908 | -2,282 | ||||||
Less: Preferred dividend rights attributable to participating securities | (781 | ) | — | Net income (loss) attributable to common stockholders | $998 | ($2,291) | ($9,392) | |||||||||
Net loss attributable to common stockholders | $ | (825 | ) | $ | (4,875 | ) | ||||||||||
Denominator: | ||||||||||||||||
Denominator: | Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | |||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders: | Basic (in thousands) | 43,873 | 31,988 | 36,707 | ||||||||||||
Basic (in thousands) | 31,988 | 49,566 | Weighted-average effect of potentially dilutive shares: | |||||||||||||
Weighted-average effect of potentially dilutive shares: | Employee stock options (in thousands) | 444 | — | — | ||||||||||||
Employee stock options and restricted stock units (in thousands) | — | — | Diluted (in thousands) | 44,317 | 31,988 | 36,707 | ||||||||||
Diluted (in thousands) | 31,988 | 49,566 | Net income (loss) per share attributable to common stockholders: | |||||||||||||
Basic | $0.02 | ($0.07) | ($0.26) | |||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.03 | ) | $ | (0.10 | ) | Diluted | $0.02 | ($0.07) | ($0.26) | ||||||
The following table summarizes the outstanding employee stock options, restricted stock units, shares purchasable via the employee stock purchase plan as of the balance sheet date, and redeemable convertible preferred stock that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: | The following table summarizes the outstanding employee stock options, restricted stock units, and redeemable convertible preferred stock that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: | |||||||||||||||
Three months ended | Year ended June 30, 2014 | |||||||||||||||
September 30, | 2012 | 2013 | 2014 | |||||||||||||
2013 | 2014 | |||||||||||||||
Redeemable convertible preferred stock | — | 11,933 | — | |||||||||||||
Redeemable convertible preferred stock | 11,933 | — | Restricted stock units | — | — | 102 | ||||||||||
Restricted stock units | — | 480 | Employee stock options | — | 1,859 | 4,388 | ||||||||||
Employee stock purchase plan shares | — | 27 | Total | — | 13,792 | 4,490 | ||||||||||
Employee stock options | 2,376 | 4,600 | ||||||||||||||
Total | 14,309 | 5,107 | ||||||||||||||
Restricted Stock Awards were excluded from both basic and diluted earnings per share calculations for the years ended June 30, 2012 and 2013 as the vesting conditions had not been met. | ||||||||||||||||
RSAs were excluded from both basic and diluted earnings per share calculations for the three month period ended September 30, 2013 as the vesting conditions had not been met as of that date. | ||||||||||||||||
Income_Taxes1
Income Taxes | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2014 | Jun. 30, 2014 | ||||||||
Income Taxes | ' | ' | |||||||
Income Taxes | ' | ' | |||||||
(8) Income Taxes | |||||||||
(12) Income Taxes | |||||||||
The Company’s quarterly provision for income taxes is based on an estimated annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. | |||||||||
(a) Income Taxes | |||||||||
The Company recorded income tax (benefit) expense of $(362) and $28 for the three month periods ended September 30, 2013 and 2014, respectively. The Company’s effective rate for the three months ended September 30, 2013 differed from statutory rates primarily due to federal and state research and development credits and expenses not deductible for income tax reporting purposes. The Company’s effective tax rate for the three months ended September 30, 2014 differ from statutory rates primarily due to the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. | |||||||||
Income tax (benefit) expense for the years ended June 30, 2012, 2013 and 2014 consists of the following: | |||||||||
The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for a valuation allowance on a quarterly basis. It established a valuation allowance on all of its net deferred tax assets except for deferred tax liabilities associated with indefinite-lived intangible assets during fiscal 2014, given that the company determined that it was more likely than not that the Company would not recognize the benefits of its net operating loss carryforwards prior to their expiration. As of September 30, 2014, the Company had no unrecognized tax benefits. | |||||||||
Year ended June 30, | |||||||||
On September 13, 2013, the IRS issued final regulations and re-proposed regulations that provide guidance with respect to (i) the treatment of materials and supplies, (ii) capitalization of amounts paid to acquire or produce tangible property, (iii) the determination of whether an expenditure with respect to tangible property is a deductible repair or a capital expenditure, and (iv) dispositions of MACRS property. The final regulations will be effective for the fiscal year ending June 30, 2015. Management is reviewing the regulations, but does not believe there will be a material impact on the Company’s results of operations, financial position, or cash flows. | 2012 | 2013 | 2014 | ||||||
Current taxes | |||||||||
U.S. federal | $12 | $126 | ($125) | ||||||
State and local | 34 | 94 | 39 | ||||||
Deferred taxes: | |||||||||
U.S. federal | 738 | -516 | 160 | ||||||
State and local | 100 | -306 | 181 | ||||||
Total income tax (benefit) expense | $884 | ($602) | $255 | ||||||
(b) Tax Rate Reconciliation | |||||||||
Income tax (benefit) expense differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax income from continuing operations as a result of the following: | |||||||||
Year ended June 30, | |||||||||
2012 | 2013 | 2014 | |||||||
Income tax provision at statutory federal rate | $875 | $6 | ($2,331) | ||||||
Increase (reduction) in income taxes resulting from: | |||||||||
Research and development credit, net of federal income tax benefit | -173 | -650 | -189 | ||||||
Non-deductible expenses | 25 | 53 | 284 | ||||||
Change in valuation allowance | — | — | 2,878 | ||||||
State and local income taxes, net of federal income tax benefit | 157 | -11 | -387 | ||||||
$884 | ($602) | $255 | |||||||
(c) Components of Deferred Tax Assets and Liabilities | |||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2013 and 2014 are presented below. | |||||||||
Year ended June 30, | |||||||||
2013 | 2014 | ||||||||
Deferred tax assets: | |||||||||
Deferred rent | $438 | $569 | |||||||
Allowance for doubtful accounts | 46 | 48 | |||||||
Accrued expenses | 583 | 761 | |||||||
Stock-based compensation | 333 | 2,149 | |||||||
Net operating loss carryforwards | 359 | 1,641 | |||||||
Research and development credit | 832 | 1,116 | |||||||
AMT Credits | 138 | 11 | |||||||
Intangible assets | — | 5 | |||||||
Total deferred tax assets | 2,729 | 6,300 | |||||||
Valuation allowance | — | -2,878 | |||||||
Net deferred tax assets | 2,729 | 3,422 | |||||||
Deferred tax liabilities: | |||||||||
Research and development costs | -1,024 | -1,950 | |||||||
Prepaid expenses | -66 | -74 | |||||||
Depreciation | -1,306 | -1,406 | |||||||
Total deferred liabilities | -2,396 | -3,430 | |||||||
Net deferred tax asset (liability) | $333 | ($8) | |||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized through the generation of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. Taxable income (loss) for the years ended June 30, 2012, 2013 and 2014 was approximately $842, $1,941 and $(3,817), respectively, prior to utilization or establishment of net operating loss carryforwards. Based upon the same three year period pre-tax book income, the Company is in a three-year cumulative loss position. As a result of this and other assessments in the year ended June 30, 2014, management concluded that a full valuation allowance is required for all deferred tax assets and liabilities except for deferred tax liabilities associated with indefinite-lived intangible assets. | |||||||||
At June 30, 2014, the Company has net operating loss carryforwards for Federal income tax purposes of approximately $3,967 which are available to offset future Federal taxable income, if any, through 2034, excluding excess tax benefits from stock option exercises of approximately $331 which will be credited to additional paid-in capital when realized. The Company also has gross federal and state research and development tax credit carryforwards of approximately $1,116 which expire between 2017 and 2034. In addition, the Company has alternative minimum tax credit carryforwards of approximately $11, which are available to reduce future Federal regular income taxes, if any, over an indefinite period. | |||||||||
The Company had no unrecognized tax benefits as of June 30, 2012, 2013 and 2014, respectively. | |||||||||
The Company files income tax returns with the United States federal government and various state jurisdictions. Certain tax years remain open for federal and state tax reporting jurisdictions in which the Company does business due to net operating loss carryforwards and tax credits unutilized from such years or utilized in a period remaining open for audit under normal statute of limitations relating to income tax liabilities. The Company’s tax years ended June 30, 2008 to June 30, 2014 remain open for federal purposes. The Company’s tax returns filed in states in which it is required to do so remain open for a range of tax years including those ended June 30, 2008 to June 30, 2014 depending upon the jurisdiction and the applicable statute of limitations. | |||||||||
Related_Party_Transactions1
Related Party Transactions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Related Party Transactions | ' | ' |
Related Party Transactions | ' | ' |
(9) Related Party Transactions | (18) Related Party Transactions | |
The Company entered into a Memorandum of Understanding (“Memorandum”) and a Non-Competition and Non-Solicitation Agreement (“Non-Compete”) with its Chairman Steve Sarowitz and Blue Marble, a separate legal entity owned by Mr. Sarowitz in June 2014. | Blue Marble | |
The Memorandum established the ongoing market based terms between the Company and Blue Marble for services provided to or on behalf of each other. In addition, Paylocity obtained a right of first refusal on the sale of Blue Marble, an option exercisable starting three years from the date of the Memorandum to purchase Blue Marble, and the right of first refusal to purchase any acquisition target of Blue Marble outside the United States of America, all at fair market value. The Memorandum requires Blue Marble to obtain written consent from Paylocity should Blue Marble intend to acquire an entity that provides or partners with other service providers to provide products and services to clients located in the United States of America. The Company provides no management guidance to the entity, has no equity interest in the entity, no obligation or intention to fund any of the entity’s operational shortfalls, and no right to any operational surpluses generated by the entity. | The Company entered into a Memorandum of Understanding (“Memorandum”) and a Non-Competition and Non-Solicitation Agreement (“Non-Compete”) with its Chairman Steve Sarowitz and Blue Marble, a separate legal entity owned by Mr. Sarowitz, in June 2014. | |
The Non-Compete agreement outlines the permissible activities and ongoing responsibilities of Mr. Sarowitz and Blue Marble including an obligation not to compete with services offered by Paylocity and an obligation not to solicit employees of Paylocity. | As stipulated in the Memorandum, Mr. Sarowitz resigned as an employee of Paylocity but continues to serve the Company as the non-executive Chairman of the board of directors. The Memorandum establishes the ongoing market based terms between the Company and Blue Marble for services provided to or on behalf of each other. In addition, Paylocity obtained a right of first refusal on the sale of Blue Marble, an option exercisable starting three years from the date of the Memorandum to purchase Blue Marble, and the right of first refusal to purchase any acquisition target of Blue Marble outside the United States of America, all at fair market value. The Memorandum requires Blue Marble to obtain written consent from Paylocity should Blue Marble intend to acquire an entity that provides or partners with other service providers to provide products and services to clients located in the United States of America. The Company provides no management guidance to the entity, has no equity interest in the entity, no obligation or intention to fund any of the entity’s operational shortfalls, and no right to any operational surpluses generated by the entity. | |
The Non-Compete agreement outlines the permissible activities and ongoing responsibilities of Mr. Sarowitz and Blue Marble including an obligation not to compete with services offered by Paylocity and an obligation not to solicit employees of Paylocity. | ||
Elite Sales | ||
The Company purchased sales leads from an entity owned by one of the stockholders in the amount of approximately $404, $893 and $231 for the years ended June 30, 2012, 2013 and 2014, respectively. The Company provided no management guidance to the entity and had no equity interest in the entity, had no obligation or intention to fund any of the entity’s operational shortfalls, and had no right to any operational surpluses generated by the entity. Accounts payable to this entity were approximately $65 and $0 as of June 30, 2013 and 2014, respectively. On October 14, 2013, the Company hired substantially all of the employees of the sales lead generation entity described above. | ||
Principal Stockholder Contribution for Cash Bonuses | ||
In May 2014, the Company’s Chairman paid approximately $1,052 to the Company for the express purpose of paying a cash bonus to long-term employees in recognition of their past service. The Company recorded a capital contribution to additional paid-in capital for the amount received from the Chairman and compensation expense for the amount paid to employees, accordingly. The Company paid the employer portion of employment taxes and will receive any income tax related benefits from the payments to employees and resulting taxes. |
Recovered_Sheet1
Subsequent events | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Subsequent Events | ' | ' |
Subsequent events | ' | ' |
(19) Subsequent Events | ||
(10) Subsequent Events | ||
The Company has evaluated subsequent events from the balance sheet date through August 22, 2014, the date at which the financial statements were available to be issued. | ||
The Company has evaluated subsequent events from the balance sheet date through November 7, 2014, the date at which the financial statements were available to be issued and has determined that there are no such events that would have a material impact on the financial statements. | ||
In August 2014, the Board of Directors granted restricted stock units for 340,875 shares of common stock which vest annually over four years and stock options to purchase 321,700 shares of commons stock at a weighted-average exercise price of $24.80 per share which vest over four years. |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Jun. 30, 2014 | |
Summary of Significant Accounting Policies | ' | ' |
Consolidation and Use of Estimates | ' | ' |
(a) Consolidation and Use of Estimates | ||
These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. | ||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, software developed for internal use, valuation and useful lives of long-lived assets, definite-lived intangibles, goodwill, stock-based compensation, valuation of net deferred income tax assets and the best estimate of selling price for revenue recognition purposes. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. | ||
Interim Unaudited Consolidated Financial Information | ' | ' |
(b) Interim Unaudited Consolidated Financial Information | ||
The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows. The results of operations for the three-month period ended September 30, 2014 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2014. | ||
Income Taxes | ' | ' |
(c) Income Taxes | (j) Income Taxes | |
Differences in the normal relationship between the income tax expense (benefit) and pre-tax income (loss) materially result from the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. | Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Accordingly, the impact of the American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013, on deferred tax assets and liabilities and current taxes for the last six months of the fiscal year ended June 30, 2012 was recognized in the year ended June 30, 2013. Research and development tax credits are recognized using the flow-through method in the year the credit arises. | ||
Valuation allowances are provided when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Significant management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company is required to consider all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income among other items, in determining whether a full or partial release of its valuation allowance is required. The Company is also required to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. | ||
The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties as an element of income tax expense. | ||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ' |
(d) Stock-Based Compensation | (n) Equity Incentive Plan | |
The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards, including those under the 2014 Employee Stock Purchase Plan (“ESPP”), are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model and periodically updates the assumed forfeiture rates for actual experience over the option vesting term or the term of the ESPP purchase period. | The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model and periodically updates the assumed forfeiture rates for actual experience over their vesting terms. | |
Excess tax benefits of awards that are recognized in equity related to stock option exercises are reflected as financing cash inflows. The total excess income tax benefits recognized for stock-based compensation arrangements was $206 and $63 for the years ended June 30, 2012 and 2013, respectively. There were no excess income tax benefits recognized for stock-based compensation arrangements for the year ended June 30, 2014. | ||
Recently Issued Accounting Standards | ' | ' |
(q) Recently Issued Accounting Standards | ||
(e) Recently Issued Accounting Standards | ||
In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a “full retrospective” adoption or a “modified retrospective” adoption. The Company is currently evaluating which adoption method it will use. Early application is not permitted. The Company plans on adopting ASU 2014-09 beginning July 1, 2017 and is currently assessing the potential effects of these changes to its consolidated financial statements. | ||
In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a “full retrospective” adoption or a “modified retrospective” adoption. The Company is currently evaluating which adoption method it will use. Early application is not permitted. The Company plans on adopting ASU 2014-09 beginning July 1, 2017 and is currently assessing the potential effects of these changes to its consolidated financial statements. | ||
From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. | ||
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. | ||
Balance_Sheet_Information_Tabl
Balance Sheet Information (Tables) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | ||||||||||||||
Balance Sheet Information | ' | ' | |||||||||||||
Schedule of activity in allowance for doubtful accounts | ' | ' | |||||||||||||
Balance at June 30, 2014 | $ | 126 | |||||||||||||
Charged to expense | 42 | ||||||||||||||
Write-offs | (5 | ) | |||||||||||||
Balance at September 30, 2014 | $ | 163 | |||||||||||||
Schedule of capitalized software and accumulated amortization | ' | ' | |||||||||||||
June 30, | September 30, | ||||||||||||||
2014 | 2014 | Year ended June 30, | |||||||||||||
Internally developed software | $ | 19,863 | $ | 20,937 | 2013 | 2014 | |||||||||
Accumulated amortization | (14,770 | ) | (15,363 | ) | Internally developed software | $15,189 | $19,863 | ||||||||
Capitalized software, net | $ | 5,093 | $ | 5,574 | Accumulated amortization | -12,575 | -14,770 | ||||||||
Capitalized software, net | $2,614 | $5,093 | |||||||||||||
Schedule of property and equipment | ' | ' | |||||||||||||
June 30, | September 30, | ||||||||||||||
2014 | 2014 | Year ended June 30, | |||||||||||||
Office equipment | $ | 1,449 | $ | 1,631 | 2013 | 2014 | |||||||||
Computer equipment | 7,726 | 9,310 | Office equipment | $1,350 | $1,449 | ||||||||||
Furniture and fixtures | 2,317 | 2,357 | Computer equipment | 4,665 | 7,726 | ||||||||||
Software | 4,963 | 4,978 | Furniture and fixtures | 1,433 | 2,317 | ||||||||||
Leasehold improvements | 6,059 | 6,106 | Automobiles | 36 | — | ||||||||||
Time clocks rented by clients | 2,360 | 2,460 | Software | 3,791 | 4,963 | ||||||||||
24,874 | 26,842 | Leasehold improvements | 3,917 | 6,059 | |||||||||||
Accumulated depreciation | (11,749 | ) | (12,804 | ) | Time clocks rented by clients | 1,649 | 2,360 | ||||||||
Property and equipment, net | $ | 13,125 | $ | 14,038 | 16,841 | 24,874 | |||||||||
Accumulated depreciation and amortization | -8,255 | -11,749 | |||||||||||||
Property and equipment, net | $8,586 | $13,125 | |||||||||||||
Schedule of components of accrued expenses | ' | ' | |||||||||||||
June 30, | September 30, | ||||||||||||||
2014 | 2014 | Year ended June 30, | |||||||||||||
Accrued payroll and personnel costs | $ | 8,781 | $ | 8,756 | 2013 | 2014 | |||||||||
Current portion of deferred rent | 577 | 624 | Accrued payroll and personnel costs | $5,549 | $8,781 | ||||||||||
Other | 1,386 | 1,397 | Reseller fees | 259 | 6 | ||||||||||
Total accrued expenses | $ | 10,744 | $ | 10,777 | Current portion of deferred rent | 230 | 577 | ||||||||
Other | 756 | 1,380 | |||||||||||||
Total Accrued Expenses | $6,794 | $10,744 | |||||||||||||
Schedule of intangible assets | ' | ' | |||||||||||||
June | September | Weighted | |||||||||||||
30, 2014 | 30, 2014 | Average | |||||||||||||
Useful | |||||||||||||||
Life | |||||||||||||||
Client relationships | $ | 6,180 | $ | 6,180 | 9 years | ||||||||||
Non-solicitation agreement | 220 | 220 | 3 years | ||||||||||||
Total | 6,400 | 6,400 | |||||||||||||
Accumulated amortization | (80 | ) | (270 | ) | |||||||||||
Intangible assets, net | $ | 6,320 | $ | 6,130 | |||||||||||
Benefit_Plans_Tables1
Benefit Plans (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||||||||||||||||||
Benefit Plans | ' | ' | ||||||||||||||||||||||
Schedule of stock-based compensation expense related to stock options and the vesting of Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") | ' | ' | ||||||||||||||||||||||
Three months ended | Year ended June 30, | |||||||||||||||||||||||
September 30, | 2012 | 2013 | 2014 | |||||||||||||||||||||
2013 | 2014 | Cost of revenue - recurring | $— | $— | $496 | |||||||||||||||||||
Cost of revenue — recurring | $ | — | $ | 348 | Cost of revenue – non-recurring | — | — | 424 | ||||||||||||||||
Cost of revenue — non-recurring | — | 291 | Sales and marketing | — | — | 765 | ||||||||||||||||||
Sales and marketing | — | 884 | Research and development | — | — | 615 | ||||||||||||||||||
Research and development | — | 535 | General and administrative | 203 | 523 | 2,629 | ||||||||||||||||||
General and administrative | 181 | 1,225 | Total stock-based compensation | $203 | $523 | $4,929 | ||||||||||||||||||
Total stock-based compensation | $ | 181 | $ | 3,283 | ||||||||||||||||||||
Summary of the assumptions used for estimating the fair value of stock options granted | ' | ' | ||||||||||||||||||||||
Period ended | Year ended June 30, | |||||||||||||||||||||||
September 30, | 2012 | 2013 | 2014 | |||||||||||||||||||||
2013 | 2014 | Valuation assumptions: | ||||||||||||||||||||||
Valuation assumptions: | Expected dividend yield | N/A—no grants | 0% | 0% | ||||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | Expected volatility | N/A—no grants | 30.70% | 29.5% - 44.5% | ||||||||||||||||
Expected volatility | 29.5 | % | 43.9 | % | Expected term (years) | N/A—no grants | 4 | 4.0 - 6.0 | ||||||||||||||||
Expected term (years) | 4.0 | 6.25 | Risk-free interest rate | N/A—no grants | 0.61% | 0.52% - 1.94% | ||||||||||||||||||
Risk-free interest rate | 0.5 | % | 1.91 | % | ||||||||||||||||||||
Summary of shares available for grant under our equity incentive plans | ' | ' | ||||||||||||||||||||||
Number of | ||||||||||||||||||||||||
Shares | ||||||||||||||||||||||||
Available for grant at July 1, 2014 | 2,581 | |||||||||||||||||||||||
RSU’s granted | (379 | ) | ||||||||||||||||||||||
Options granted | (322 | ) | ||||||||||||||||||||||
Forfeitures | 97 | |||||||||||||||||||||||
Shares removed | (25 | ) | ||||||||||||||||||||||
Available for grant at September 30, 2014 | 1,952 | |||||||||||||||||||||||
Schedule of stock option activity | ' | ' | ||||||||||||||||||||||
Outstanding Options | ||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | Outstanding Options | ||||||||||||||||||||
shares | average | average | intrinsic | Shares | Number of | Weighted | Weighted | Aggregate | ||||||||||||||||
exercise | remaining | value | Available for | shares | average | average | intrinsic | |||||||||||||||||
price | contractual | Grant | exercise | remaining | value | |||||||||||||||||||
term | price | contractual | ||||||||||||||||||||||
Balance at July 1, 2014 | 4,388 | $ | 10 | 8.58 | $ | 51,017 | term | |||||||||||||||||
Options granted | 322 | 24.8 | Balance at June 30, 2013 | 812 | 1,859 | $3.25 | 8.22 | $7,028 | ||||||||||||||||
Options forfeited | (97 | ) | 14.29 | Additional shares authorized, net | 4,406 | — | ||||||||||||||||||
Options exercised | (13 | ) | 4.87 | RSU’s granted | -108 | — | ||||||||||||||||||
Balance at September 30, 2014 | 4,600 | $ | 10.96 | 8.4 | $ | 41,628 | Options granted | -2,582 | 2,582 | 15.01 | 9.58 | |||||||||||||
Options exercisable at September 30, 2014 | 1,430 | $ | 3.11 | 6.79 | $ | 23,656 | Options forfeited | 53 | -53 | 17 | — | |||||||||||||
Options vested and expected to vest at September 30, 2014 | 4,358 | $ | 10.63 | 8.34 | $ | 40,770 | Exercised | — | — | — | — | |||||||||||||
Balance at June 30, 2014 | 2,581 | 4,388 | $10.00 | 8.58 | $51,017 | |||||||||||||||||||
Options exercisable at June 30, 2014 | 1,083 | $2.29 | 6.65 | $20,947 | ||||||||||||||||||||
Options vested and expected to vest at June 30, 2014 | 3,853 | $10.17 | 8.53 | $44,162 | ||||||||||||||||||||
Schedule of Restricted stock unit activity | ' | ' | ||||||||||||||||||||||
Units | Weighted | |||||||||||||||||||||||
average | ||||||||||||||||||||||||
grant date | ||||||||||||||||||||||||
fair value | ||||||||||||||||||||||||
RSU balance at July 1, 2014 | 102 | $ | 17 | |||||||||||||||||||||
RSUs granted | 379 | 24.75 | ||||||||||||||||||||||
RSUs vested | — | — | ||||||||||||||||||||||
RSUs cancelled/forfeited | (1 | ) | 17 | |||||||||||||||||||||
RSU balance at September 30, 2014 | 480 | $ | 23.11 | |||||||||||||||||||||
RSUs expected to vest at September 30, 2014 | 440 | $ | 22.96 | |||||||||||||||||||||
Schedule of estimated grant date fair value of ESPP offering period using weighted average assumptions | ' | ' | ||||||||||||||||||||||
Period ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
Valuation assumptions: | ||||||||||||||||||||||||
Expected dividend yield | N/A | 0 | % | |||||||||||||||||||||
Expected volatility | N/A | 41.7 | % | |||||||||||||||||||||
Expected term (years) | N/A | 0.3 | ||||||||||||||||||||||
Risk-free interest rate | N/A | 0.04 | % | |||||||||||||||||||||
Earnings_Per_Share_Tables1
Earnings Per Share (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Earnings Per Share | ' | ' | ||||||||||||||
Schedule of calculation of basic and diluted net loss per share | ' | ' | ||||||||||||||
Three months ended | ||||||||||||||||
September 30, | Year ended June 30, | |||||||||||||||
2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||
Basic net loss per share: | Basic net income (loss) per share: | |||||||||||||||
Numerator: | Numerator: | |||||||||||||||
Net Loss | $ | (44 | ) | $ | (4,875 | ) | Net Income (Loss) | $1,688 | $617 | ($7,110) | ||||||
Less: Preferred dividend rights attributable to participating securities | (781 | ) | — | Less: Preferred dividend rights attributable to participating securities | -690 | -2,908 | -2,282 | |||||||||
Net loss attributable to common stockholders | $ | (825 | ) | $ | (4,875 | ) | Net income (loss) attributable to common stockholders | $998 | ($2,291) | ($9,392) | ||||||
Denominator: | Denominator: | |||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders: | Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | |||||||||||||||
Basic (in thousands) | 31,988 | 49,566 | Basic (in thousands) | 43,873 | 31,988 | 36,707 | ||||||||||
Weighted-average effect of potentially dilutive shares: | Weighted-average effect of potentially dilutive shares: | |||||||||||||||
Employee stock options and restricted stock units (in thousands) | — | — | Employee stock options (in thousands) | 444 | — | — | ||||||||||
Diluted (in thousands) | 31,988 | 49,566 | Diluted (in thousands) | 44,317 | 31,988 | 36,707 | ||||||||||
Net income (loss) per share attributable to common stockholders: | ||||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.03 | ) | $ | (0.10 | ) | Basic | $0.02 | ($0.07) | ($0.26) | ||||||
Diluted | $0.02 | ($0.07) | ($0.26) | |||||||||||||
Summary of outstanding employee stock options and redeemable convertible preferred stock excluded from the diluted per share calculation because to include them would have been anti-dilutive | ' | ' | ||||||||||||||
Three months ended | ||||||||||||||||
September 30, | Year ended June 30, 2014 | |||||||||||||||
2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||
Redeemable convertible preferred stock | 11,933 | — | Redeemable convertible preferred stock | — | 11,933 | — | ||||||||||
Restricted stock units | — | 480 | Restricted stock units | — | — | 102 | ||||||||||
Employee stock purchase plan shares | — | 27 | Employee stock options | — | 1,859 | 4,388 | ||||||||||
Employee stock options | 2,376 | 4,600 | Total | — | 13,792 | 4,490 | ||||||||||
Total | 14,309 | 5,107 | ||||||||||||||
Balance_Sheet_Information_Deta
Balance Sheet Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Activity in allowance for doubtful accounts | ' | ' | ' | ' | ' |
Balance at the beginning of the year | $126 | $118 | $118 | $114 | $80 |
Charged to Expense | 42 | 15 | 62 | 60 | 60 |
Write-offs | -5 | ' | -54 | -56 | -26 |
Balance at the end of the year | 163 | ' | 126 | 118 | 114 |
Capitalized software and accumulated amortization | ' | ' | ' | ' | ' |
Internally developed software | 20,937 | ' | 19,863 | 15,189 | ' |
Accumulated amortization | -15,363 | ' | -14,770 | -12,575 | ' |
Capitalized software, net | 5,574 | ' | 5,093 | 2,614 | ' |
Amortization of capitalized internal-use software costs | 593 | 605 | 2,195 | 3,067 | 2,727 |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 26,842 | ' | 24,874 | 16,841 | ' |
Accumulated depreciation | -12,804 | ' | -11,749 | -8,255 | ' |
Property and equipment, net | 14,038 | ' | 13,125 | 8,586 | ' |
Depreciation expense | 1,148 | 786 | 4,061 | 2,504 | 1,897 |
Components of accrued expenses | ' | ' | ' | ' | ' |
Accrued payroll and personnel costs | 8,756 | ' | 8,781 | 5,549 | ' |
Current portion of deferred rent | 624 | ' | 577 | 230 | ' |
Other | 1,397 | ' | 1,380 | 756 | ' |
Total Accrued Expenses | 10,777 | ' | 10,744 | 6,794 | ' |
Office equipment | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 1,631 | ' | 1,449 | 1,350 | ' |
Computer equipment | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 9,310 | ' | 7,726 | 4,665 | ' |
Furniture and fixtures | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 2,357 | ' | 2,317 | 1,433 | ' |
Software | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 4,978 | ' | 4,963 | 3,791 | ' |
Leasehold improvements | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | 6,106 | ' | 6,059 | 3,917 | ' |
Time clocks rented by clients | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' |
Property and equipment, gross | $2,460 | ' | $2,360 | $1,649 | ' |
Balance_Sheet_Information_Deta1
Balance Sheet Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Intangible Assets | ' | ' | ' | ' | ' |
Total intangible assets | $6,400 | ' | $6,400 | ' | ' |
Accumulated amortization | -270 | ' | -80 | ' | ' |
Intangible assets, net | 6,130 | ' | 6,320 | ' | ' |
Amortization expense for acquired intangible assets | 190 | 0 | 80 | 0 | 0 |
Client relationships | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' |
Total intangible assets | 6,180 | ' | 6,180 | ' | ' |
Weighted Average Useful Life | '9 years | ' | '9 years | ' | ' |
Non-solicitation agreement | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' |
Total intangible assets | $220 | ' | $220 | ' | ' |
Weighted Average Useful Life | '3 years | ' | '3 years | ' | ' |
Benefit_Plans_Details1
Benefit Plans (Details) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | 2014 Plan | 2014 Plan | 2008 Plan | 2008 Plan | ||
Minimum | Minimum | Maximum | Maximum | |||||||||
Benefit Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock reserved for issuance | 7,032 | 7,071 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Number of shares allocated but not yet issued or subject to outstanding options or awards | ' | ' | ' | ' | ' | ' | ' | ' | 1,952 | 2,581 | ' | ' |
Vesting period | ' | ' | ' | ' | '3 years | '3 years | '4 years | '4 years | ' | ' | ' | ' |
Expiration period | ' | ' | '10 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit_Plans_Details_21
Benefit Plans (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | $3,283 | $181 | $4,929 | $523 | $203 |
Stock compensation costs capitalized | 162 | 0 | 325 | 0 | 0 |
Cost of revenue - recurring | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 348 | ' | 496 | ' | ' |
Cost of revenue - non-recurring | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 291 | ' | 424 | ' | ' |
Sales and marketing | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 884 | ' | 765 | ' | ' |
Research and development | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 535 | ' | 615 | ' | ' |
General and administrative | ' | ' | ' | ' | ' |
Benefit Plans | ' | ' | ' | ' | ' |
Total stock-based compensation expense | $1,225 | $181 | $2,629 | $523 | $203 |
Benefit_Plans_Details_31
Benefit Plans (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Weighted average grant date fair value | ' | ' | ' | ' | ' |
Total unrecognized compensation cost, net of estimated forfeitures | ' | ' | $11,231 | ' | ' |
Weighted average period to recognize unrecognized compensation cost | ' | ' | '1 year 7 months 13 days | ' | ' |
Stock options | ' | ' | ' | ' | ' |
Valuation assumptions: | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% | ' |
Expected volatility (as a percent) | 43.90% | 29.50% | ' | 30.70% | ' |
Expected term | '6 years 3 months | '4 years | ' | '4 years | ' |
Risk-free interest rate (as a percent) | 1.91% | 0.50% | ' | 0.61% | ' |
Shares Available for Grant | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | 2,581 | 812 | 812 | ' | ' |
RSU's granted (in shares) | -379 | ' | -108 | ' | ' |
Options granted (in shares) | -322 | ' | -2,582 | ' | 0 |
Forfeitures | 97 | ' | 53 | ' | ' |
Shares removed | -25 | ' | ' | ' | ' |
Balance at the end of the period (in shares) | 1,952 | ' | 2,581 | 812 | ' |
Additional shares authorized, net (in shares) | ' | ' | 4,406 | ' | ' |
Number of shares | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | 4,388 | 1,859 | 1,859 | ' | ' |
Options granted (in shares) | 322 | ' | 2,582 | ' | 0 |
Options forfeited | -97 | ' | -53 | ' | ' |
Options exercised | -13 | 0 | ' | ' | ' |
Balance at the end of the period (in shares) | 4,600 | ' | 4,388 | 1,859 | ' |
Options exercisable at September 30, 2014 | 1,430 | ' | 1,083 | ' | ' |
Options vested and expected to vest at the end of the period (in shares) | 4,358 | ' | 3,853 | ' | ' |
Weighted average exercise price | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | $10 | $3.25 | $3.25 | ' | ' |
Options granted | $24.80 | ' | $15.01 | ' | ' |
Options forfeited | $14.29 | ' | $17 | ' | ' |
Options exercised | $4.87 | ' | ' | ' | ' |
Balance at the end of the period (in dollars per share) | $10.96 | ' | $10 | $3.25 | ' |
Options exercisable | $3.11 | ' | $2.29 | ' | ' |
Options vested and expected to vest at the end of the period (in dollars per share) | $10.63 | ' | $10.17 | ' | ' |
Weighted average remaining contractual term | ' | ' | ' | ' | ' |
Balance at July 1, 2014 | '8 years 4 months 24 days | ' | '8 years 6 months 29 days | '8 years 2 months 19 days | ' |
Balance at September 30, 2014 | '8 years 4 months 24 days | ' | '8 years 6 months 29 days | '8 years 2 months 19 days | ' |
Options exercisable at September 30, 2014 | '6 years 9 months 15 days | ' | '6 years 7 months 24 days | ' | ' |
Options vested and expected to vest at the end of the period | '8 years 4 months 2 days | ' | '8 years 6 months 11 days | ' | ' |
Aggregate intrinsic value | ' | ' | ' | ' | ' |
Balance at July 1, 2014 | 51,017 | 7,028 | 7,028 | ' | ' |
Balance at the end of the period (in dollars) | 41,628 | ' | 51,017 | 7,028 | ' |
Options exercisable at September 30, 2014 | 23,656 | ' | 20,947 | ' | ' |
Options vested and expected to vest at the end of the period | 40,770 | ' | 44,162 | ' | ' |
Weighted average grant date fair value of options granted (in dollars per share) | $11.15 | $1.71 | $6.39 | $1.22 | $0 |
Total intrinsic value of options exercised | 224 | ' | 0 | 87 | 241 |
Units | ' | ' | ' | ' | ' |
Awards granted (in shares) | 379 | ' | 108 | ' | ' |
Weighted average grant date fair value | ' | ' | ' | ' | ' |
Total unrecognized compensation cost, net of estimated forfeitures | 12,337 | ' | ' | ' | ' |
Weighted average period to recognize unrecognized compensation cost | '1 year 6 months 18 days | ' | ' | ' | ' |
RSAs | ' | ' | ' | ' | ' |
Weighted average grant date fair value | ' | ' | ' | ' | ' |
Total unrecognized compensation cost, net of estimated forfeitures | $7,818 | ' | ' | ' | ' |
Weighted average period to recognize unrecognized compensation cost | '2 years 2 months 12 days | ' | ' | ' | ' |
RSUs | ' | ' | ' | ' | ' |
Shares Available for Grant | ' | ' | ' | ' | ' |
RSU's granted (in shares) | -379 | ' | ' | ' | ' |
Units | ' | ' | ' | ' | ' |
RSU balance at July 1, 2014 | 102 | ' | ' | ' | ' |
Awards granted (in shares) | 379 | ' | ' | ' | ' |
RSUs cancelled/forfeited | -1 | ' | ' | ' | ' |
RSU balance at September 30, 2014 | 480 | ' | ' | ' | ' |
RSUs expected to vest at September 30, 2014 (in shares) | 440 | ' | ' | ' | ' |
Weighted average grant date fair value | ' | ' | ' | ' | ' |
RSU balance at July 1, 2014 | $17 | ' | ' | ' | ' |
RSU granted | $24.75 | ' | ' | ' | ' |
RSU cancelled/forfeited | $17 | ' | ' | ' | ' |
RSU balance at September 30, 2014 | $23.11 | ' | ' | ' | ' |
RSUs expected to vest at September 30, 2014 (in dollars per share) | $22.96 | ' | ' | ' | ' |
Benefit_Plans_Details_41
Benefit Plans (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jul. 16, 2014 | Feb. 06, 2014 | Sep. 30, 2014 | Feb. 06, 2014 |
Employee Stock Purchase Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | ||||||
Maximum | |||||||||
Benefit Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering period | ' | ' | ' | ' | ' | '4 months | ' | ' | '27 months |
Percentage of employee compensation, maximum | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
Percentage of fair market value as a purchase price | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' |
Value of shares per employee, maximum | ' | ' | ' | ' | ' | ' | $25 | ' | ' |
Number of shares per employee, maximum | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' |
Number of periods during which shares can be purchased | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Number of shares authorized | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Number of shares issued | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Additional number of shares reserved for issuance each year | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' |
Percentage of additional number of shares reserved for issuance each year | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' |
Compensation expense (in dollars) | $3,283 | $181 | $4,929 | $523 | $203 | ' | ' | $130 | ' |
Valuation assumptions: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' |
Expected volatility | ' | ' | ' | ' | ' | ' | ' | 41.70% | ' |
Expected term | ' | ' | ' | ' | ' | ' | ' | '3 months 18 days | ' |
Risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | 0.04% | ' |
Benefit_Plans_Details_5
Benefit Plans (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Benefit Plans | ' | ' | ' | ' | ' |
Matching contributions by the Company as percentage of employees' contributions | 50.00% | ' | 50.00% | ' | ' |
Maximum contributions as percentage of employees' gross pay | 6.00% | ' | 6.00% | ' | ' |
Contributions | $382 | $248 | $1,122 | $720 | $514 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Commitments and Contingencies | ' | ' | ' | ' | ' |
Number of reseller organizations | 2 | ' | 2 | ' | ' |
First reseller agreement | ' | ' | ' | ' | ' |
Reseller agreements | ' | ' | ' | ' | ' |
Amount paid to reseller per terms of our resale agreement | ' | $614 | $2,495 | $2,377 | $1,693 |
Amount paid under the terms of an asset purchase agreement | 2,385 | ' | ' | ' | ' |
Second reseller agreement | ' | ' | ' | ' | ' |
Reseller agreements | ' | ' | ' | ' | ' |
Amount paid to reseller per terms of our resale agreement | $635 | $492 | $2,081 | $1,783 | $1,324 |
Prior notice period to terminate the agreement by resellers | '9 months | ' | '9 months | ' | ' |
Minimum period after closing of initial public offering to provide prior notice by the reseller for termination of agreement | '6 months | ' | '6 months | ' | ' |
Purchase price of assets as multiplier of net revenues of reseller for 12 months preceding termination effective date | 3.3 | ' | 3.3 | ' | ' |
Period considered for multiplier of annual revenues to calculate purchase price of assets | '12 months | ' | '12 months | ' | ' |
Earnings_Per_Share_Details1
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Mar. 24, 2014 |
Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock issued on automatic conversion of outstanding preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,933 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ($4,875) | ($6,704) | $1,150 | ($1,512) | ($44) | ($372) | $2,021 | ($627) | ($405) | ($7,110) | $617 | $1,688 | ' |
Less: Preferred dividend rights attributable to participating securities | ' | ' | ' | ' | -781 | ' | ' | ' | ' | -2,282 | -2,908 | -690 | ' |
Net income (loss) attributable to common stockholders | ($4,875) | ' | ' | ' | ($825) | ' | ' | ' | ' | ($9,392) | ($2,291) | $998 | ' |
Weighted-average shares used in computing net loss per share attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 49,566 | 49,564 | 44,360 | 31,988 | 31,988 | 31,988 | 43,921 | 31,988 | 31,988 | 36,707 | 31,988 | 43,873 | ' |
Weighted-average effect of potentially dilutive shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted (in shares) | 49,566 | 49,564 | 44,870 | 31,988 | 31,988 | 31,988 | 44,407 | 31,988 | 31,988 | 36,707 | 31,988 | 44,317 | ' |
Net loss per share attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss per share attributable to common stockholders, basic and diluted | ($0.10) | ($0.14) | $0.01 | ($0.07) | ($0.03) | ($0.03) | $0.03 | ($0.04) | ($0.04) | ' | ' | ' | ' |
Anti-dilutive securities excluded from diluted per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (in shares) | 5,107 | ' | ' | ' | 14,309 | ' | ' | ' | ' | 4,490 | 13,792 | ' | ' |
Redeemable convertible preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from diluted per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (in shares) | ' | ' | ' | ' | 11,933 | ' | ' | ' | ' | ' | 11,933 | ' | ' |
RSUs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from diluted per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (in shares) | 480 | ' | ' | ' | ' | ' | ' | ' | ' | 102 | ' | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from diluted per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (in shares) | 27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from diluted per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total (in shares) | 4,600 | ' | ' | ' | 2,376 | ' | ' | ' | ' | 4,388 | 1,859 | ' | ' |
Income_Taxes_Details1
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Taxes | ' | ' | ' | ' | ' |
Amount of tax provision (benefit) recorded | $28 | ($362) | $255 | ($602) | $884 |
Unrecognized tax benefits | $0 | ' | $0 | $0 | $0 |
Related_Party_Transactions_Det1
Related Party Transactions (Details) | 3 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | |
Blue Marble | Blue Marble | ||
Related party transactions | ' | ' | ' |
Exercise period for right of first refusal option on sale of Blue Marble | '3 years | ' | ' |
Equity interest (as a percent) | ' | 0.00% | 0.00% |