Paylocity Holding (PCTY) 10-K 14 Aug 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2015	Aug. 07, 2015	Dec. 31, 2014
Document and Entity Information
Entity Registrant Name	Paylocity Holding Corp
Entity Central Index Key	1,591,698
Document Type	10-K
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 415,799,087
Entity Common Stock, Shares Outstanding		50,712,929
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 81,258	$ 78,848
Accounts receivable, net	1,115	756
Prepaid expenses and other	4,416	2,694
Deferred income tax assets, net	775	706
Total current assets before funds held for clients	87,564	83,004
Funds held for clients	591,219	417,261
Total current assets	678,783	500,265
Long-term prepaid expenses	403	313
Capitalized internal-use software, net	7,357	5,093
Property and equipment, net	16,061	13,125
Intangible assets, net	11,941	6,320
Goodwill	6,003	3,035
Total assets	720,548	528,151
Current liabilities:
Accounts payable	1,327	2,133
Taxes payable		5
Consideration related to acquisitions	511	2,985
Accrued expenses	16,430	10,744
Total current liabilities before client fund obligations	18,268	15,867
Client fund obligations	591,219	417,261
Total current liabilities	609,487	433,128
Deferred rent	2,607	3,175
Deferred income tax liabilities, net	874	714
Total liabilities	$ 612,968	$ 437,017
Stockholders' equity (deficit)
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2014 and 2015
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2014 and 2015, 49,564 and 50,703 shares issued and outstanding at June 30, 2014 and 2015, respectively	$ 51	$ 50
Additional paid-in capital	155,672	125,255
Accumulated deficit	(48,143)	(34,171)
Total stockholders' equity (deficit)	107,580	91,134
Total liabilities and stockholders' equity (deficit)	$ 720,548	$ 528,151

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2015	Jun. 30, 2014
Consolidated Balance Sheets
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	5,000	5,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	155,000	155,000
Common Stock, shares issued	50,703	49,564
Common Stock, shares outstanding	50,703	49,564

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Revenues
Recurring fees	$ 142,168	$ 100,362	$ 71,309
Interest income on funds held for clients	1,901	1,582	1,459
Total recurring revenues	144,069	101,944	72,768
Implementation services and other	8,629	6,743	4,526
Total revenues	152,698	108,687	77,294
Cost of revenues
Recurring revenues	46,366	37,319	28,863
Implementation services and other	24,530	17,775	10,803
Total cost of revenues	70,896	55,094	39,666
Gross profit	81,802	53,593	37,628
Operating expenses
Sales and marketing	43,035	28,276	18,693
Research and development	19,864	10,355	6,825
General and administrative	32,824	21,980	12,079
Total operating expenses	95,723	60,611	37,597
Operating income (loss)	(13,921)	(7,018)	31
Other income (expense)	54	163	(16)
Income (loss) before income taxes	(13,867)	(6,855)	15
Income tax (benefit) expense	105	255	(602)
Net income (loss)	(13,972)	(7,110)	617
Net income (loss) attributable to common stockholders	$ (13,972)	$ (9,392)	$ (2,291)
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.28)	$ (0.26)	$ (0.07)
Diluted (in dollars per share)	$ (0.28)	$ (0.26)	$ (0.07)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)	50,127	36,707	31,988
Diluted (in shares)	50,127	36,707	31,988

Consolidated Statements of Chan

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Jun. 30, 2012	$ 32		$ (27,678)	$ (27,646)
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	$ 32	437	(27,061)	(26,592)
Balance (in shares) at Jun. 30, 2013	31,988
Increase (Decrease) in Stockholders' Equity
Initial public offering, net of issuance costs	$ 6	81,921		81,927
Initial public offering, net of issuance costs (in shares)	5,367
Stock-based compensation expense		5,284		5,284
Conversion of redeemable convertible preferred stock	$ 12	36,561		36,573
Conversion of redeemable convertible preferred stock (in shares)	11,933
Capital contribution		1,052		1,052
Vesting of restricted stock awards (in shares)	276
Net income (loss)			(7,110)	(7,110)
Balance at Jun. 30, 2014	$ 50	125,255	(34,171)	$ 91,134
Balance (in shares) at Jun. 30, 2014	49,564			49,564
Increase (Decrease) in Stockholders' Equity
Follow-on offering, net of issuance costs	$ 1	18,366		$ 18,367
Follow-on offering, net of issuance costs (in shares)	750
Stock-based compensation expense		13,824		13,824
Stock options exercised		4,335		4,335
Stock options exercised (in shares)	452
Issuance of common stock upon vesting of restricted stock units (in shares)	120
Issuance of common stock under employee stock purchase plan		1,773		1,773
Issuance of common stock under employee stock purchase plan (in shares)	83
Net settlement for taxes and/or exercise price related to equity awards		(7,881)		(7,881)
Net settlement for taxes and/or exercise price related to equity awards	(266)
Net income (loss)			(13,972)	(13,972)
Balance at Jun. 30, 2015	$ 51	$ 155,672	$ (48,143)	$ 107,580
Balance (in shares) at Jun. 30, 2015	50,703			50,703

Consolidated Statements of Cha6

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Temporary Equity) - 12 months ended Jun. 30, 2013 - USD ($) shares in Thousands, $ in Thousands	Series A redeemable convertible preferred stock	Series B redeemable convertible preferred stock	Total
Balance at Jun. 30, 2012	$ 9,339	$ 27,234
Balance (in shares) at Jun. 30, 2012	9,500	8,400
Statement
Stock options exercised			$ 76
Stock options exercised (in shares)	0	0
Balance at Jun. 30, 2013	$ 9,339	$ 27,234
Balance (in shares) at Jun. 30, 2013	9,500	8,400

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net income (loss)	$ (13,972)	$ (7,110)	$ 617
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	13,169	4,929	523
Depreciation and amortization	8,609	6,336	5,571
Deferred income tax (benefit) expense	91	341	(822)
Provision for doubtful accounts	90	62	60
Loss on disposal of equipment	256	98
Changes in operating assets and liabilities:
Accounts receivable	(449)	(78)	(295)
Prepaid expenses	(1,754)	(1,132)	(1,061)
Trade accounts payable	(186)	465	138
Accrued expenses	5,251	3,288	1,497
Net cash provided by operating activities	11,105	7,199	6,228
Cash flows from investing activities:
Capitalized internal-use software costs	(4,215)	(4,349)	(1,967)
Purchases of property and equipment	(9,020)	(6,667)	(3,987)
Payments for acquisitions	(11,979)	(6,450)
Net change in funds held for clients	(173,958)	(61,356)	(92,650)
Net cash used in investing activities	(199,172)	(78,822)	(98,604)
Cash flows from financing activities:
Net change in client funds obligation	173,958	61,356	92,650
Principal payments on long-term debt		(1,563)	(1,625)
Proceeds from initial public offering, net of issuance costs		82,032
Proceeds from follow-on offering, net of issuance costs	18,367
Payments on initial public offering costs	(75)
Capital contribution		1,052
Proceeds from exercise of stock options	247		76
Payments for redemption of common shares			(162)
Proceeds from employee stock purchase plan	1,773
Taxes paid related to net share settlement of equity awards	(3,793)
Net cash provided by financing activities	190,477	142,877	90,939
Net Change in Cash and Cash Equivalents	2,410	71,254	(1,437)
Cash and Cash Equivalents-Beginning of Year	78,848	7,594	9,031
Cash and Cash Equivalents-End of Year	81,258	78,848	7,594
Supplemental disclosure of non-cash investing and financing activities
Build-out allowance received from landlord		1,162	325
Purchases of property and equipment, accrued but not paid	210	896	27
Unpaid initial offering costs		75
Supplemental disclosure of cash flow information
Cash paid for income taxes	$ 162	106	69
Cash paid for interest		$ 70	$ 385

Organization and Description of

Organization and Description of Business	12 Months Ended
	Jun. 30, 2015
Organization and Description of Business
Organization and Description of Business	(1) Organization and Description of Business 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. Follow-On Offering In December 2014, the Company completed a follow-on offering in which it issued and sold 750 shares of common stock and existing shareholders sold 3,850 shares of common stock at a public offering price of $26.25 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 $18,367 after deducting underwriting discounts and commissions of $935 and other offering expenses of $385. In January 2015, the underwriters for the Company’s follow-on offering exercised their option to purchase 360 additional shares from certain shareholders of the Company of the 690 available as described in the final prospectus filed with the SEC on December 12, 2014. The Company did not receive any proceeds from the sale of common stock by the existing shareholders.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (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, internal-use software, 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. (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. (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. (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, 2013 2014 2015 Balance at the beginning of the year $ $ $ Charged to expense Write-offs Balance at the end of the year $ $ $ (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) Internal-Use Software The Company applies Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 350-40, Intangibles—Goodwill and Other—Internal-Use Software , to the accounting for costs of internal-use software. Internal-use software 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, such as consulting fees. 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. 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. (g) 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. (h) O ther intangible assets, net of accumulated amortization 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 a nine-year time frame from the date of acquisition, while non-solicitation agreements use the straight-line method of amortization over the lives of the related agreements. 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) Goodwill 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 acquisitions of certain assets of BFKMS, Inc. and Synergy Payroll, LLC. 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 the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount, the two-step goodwill impairment test is required. Otherwise no further analysis is required. If the two-step goodwill impairment test is required, 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. In the second step, 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. In the event the fair value of the reporting unit exceeds its carrying amount, step two is not performed. The Company performs its annual impairment review of goodwill in its fiscal fourth quarter or when a triggering event occurs between annual impairment tests. No impairment was recorded in fiscal 2015 as a result of the Company’s impairment test. Given that the Company did not have recorded goodwill until its fiscal fourth quarter of 2014, no impairment tests were required to be completed for fiscal 2014. (j) 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. (k) 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 and expired on December 31, 2014, 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. Refer to Note 11 for additional information on income taxes. (l) Revenue Recognition The Company recognizes revenue in accordance with 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 ASC 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. (m) 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 internal-use 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. (n) Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $27, $24 and $187 for the years ended June 30, 2013, 2014 and 2015, respectively. (o) Stock-Based Compensation 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 their vesting term or the term of the ESPP purchase period. (p) 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. (q) 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. (r) Recently Issued Accounting Standards In May 2014, the 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 “retrospective” or “cumulative effect” transition method. The original standard was effective for fiscal years beginning after December 15, 2016. In July 2015, the FASB approved a one-year deferral of this standard, with a new effective date for fiscal years beginning after December 15, 2017 with early adoption permitted as of the original effective date. The Company is currently assessing the potential effects of these changes to its consolidated financial statements and is evaluating the adoption method and timing. 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 Clie

Funds Held for Clients and Client Fund Obligations	12 Months Ended
	Jun. 30, 2015
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 Measurements

Fair Value Measurements	12 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Fair Value Measurements	(4) Fair Value Measurements 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 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. 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 2015 based upon the short-term nature of the assets and liabilities.

Business Combinations

Business Combinations	12 Months Ended
	Jun. 30, 2015
Business Combinations
Business Combinations	(5) Business Combinations The Company had agreements with two resellers. The Company, under the revenue sharing provisions of the terminated reseller agreements, paid $2,377 and $2,495 to BFKMS Inc. during fiscal years 2013 and 2014, respectively and $1,783, $2,081 and $2,361 to Synergy Payroll, LLC during fiscal years 2013, 2014 and 2015, respectively. The reseller agreements provided that the Company was required upon a termination of an agreement to acquire the assets of the reseller. T he following acquisitions were accounted for as a business combination in accordance with ASC 805, Business Combinations . The Company recorded the acquisition using the acquisition method of accounting and recognized assets at their fair value as of the date of acquisition. In May 2014, the Company acquired certain assets sufficient to sell the Company’s products in the Southern California marketplace upon the termination of its reseller agreement with BFKMS Inc. The total consideration paid for the acquisition was $9,435 of which $6,450 and $2,985 was paid during the years ended June 30, 2014 and 2015, respectively. The following table summarizes the fair value of the assets acquired at the date of acquisition: At May 23, 2014 Intangible assets $ Goodwill Total purchase price $ The $6,400 of amortizable intangible assets consists of $6,180 in client relationships and $220 in a non-solicitation agreement. Goodwill will be amortized over a period of 15 years for income tax purposes. In April 2015, the Company acquired certain assets sufficient to sell the Company’s products in the State of New Jersey marketplace upon the termination of its reseller agreement with Synergy Payroll, LLC, as part of the Company’s strategy of simplifying its sales channels. The total consideration for the acquisition, all to be paid in cash, was $9,508 of which $8,994 was paid at closing. The Company will pay $211 subject to adjustment based on client retention in August 2015 and $300 in January 2016 subject to any qualifying indemnification claims in accordance with the asset purchase agreement. The following table summarizes the provisional fair value of the assets acquired at the date of acquisition: At April 16, 2015 Intangible assets $ Goodwill Total purchase price $ The $6,540 of amortizable intangible assets consists of $6,400 in client relationships and $140 in non-solicitation agreements. Goodwill will be amortized over a period of 15 years for income tax purposes. 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.

Capitalized Internal-Use Softwa

Capitalized Internal-Use Software	12 Months Ended
	Jun. 30, 2015
Capitalized Internal-Use Software
Capitalized Internal-Use Software	(6) Capitalized Internal-Use Software Capitalized internal-use software and accumulated amortization were as follows: Year ended June 30, 2014 2015 Capitalized internal-use software $ $ Accumulated amortization Capitalized internal-use software, net $ $ Amortization of capitalized internal-use software amounted to $3,067, $2,195 and $2,606 for the years ended June 30, 2013, 2014 and 2015, respectively and is included in Cost of Revenues—Recurring Revenues.

Property and Equipment

Property and Equipment	12 Months Ended
	Jun. 30, 2015
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, 2014 2015 Office equipment $ $ Computer equipment Furniture and fixtures Software Leasehold improvements Time clocks rented by clients Accumulated depreciation and amortization Property and equipment, net $ $ Depreciation expense amounted to $2,504, $4,061 and $5,084 for the years ended June 30, 2013, 2014 and 2015, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Jun. 30, 2015
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 acquisitions completed in 2014 and 2015. The following table summarizes changes in goodwill during the period ended June 30, 2015: Balance at June 30, 2014 $ Additions attributable to current year acquisition Balance at June 30, 2015 $ The Company’s amortizable intangible assets, before amortization expense, have estimated useful lives as follows: As of June 30, 2014 As of June 30, 2015 Weighted Average Useful Life Client relationships $ $ 9 years Non-solicitation agreements 2-3 years Total Accumulated amortization Intangible assets, net $ $ There was no amortization expense for acquired intangible assets for the year ended June 30, 2013. Amortization expense for acquired intangible assets was $80 and $919 for the years ended June 30, 2014 and 2015, respectively. Future amortization expense for acquired intangible is as follows, as of June 30, 2015: Year ending June 30: 2016 $ 2017 2018 2019 2020 Thereafter Total $

Accrued Expenses

Accrued Expenses	12 Months Ended
	Jun. 30, 2015
Accrued Expenses
Accrued Expenses	(9) Accrued Expenses The components of accrued expenses are as follows: Year ended June 30, 2014 2015 Accrued payroll and personnel costs $ $ Current portion of deferred rent Other Total Accrued Expenses $ $

Leases

Leases	12 Months Ended
	Jun. 30, 2015
Leases
Leases	(10) Leases The Company primarily leases office space in Illinois, California, Florida, New Jersey, New Hampshire and New York under non-cancelable operating leases expiring on various dates from August 2015 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. See Note 18 for information regarding leases amendments signed after June 30, 2015. The Company leases various types of office and production related equipment under non-cancellable operating leases expiring on various dates from August 2015 through July 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 $2,347, $3,035 and $4,238 for the years ended June 30, 2013, 2014 and 2015, 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, 2015 are: Year ending June 30: 2016 $ 2017 2018 2019 2020 Later years, through 2023 Total minimum lease payments $

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	(11) Income Taxes (a) Income Taxes Income tax (benefit) expense for the years ended June 30, 2013, 2014 and 2015 consists of the following: Year ended June 30, 2013 2014 2015 Current taxes U.S. federal $ $ $— State and local Deferred taxes: U.S. federal State and local Total income tax (benefit) expense $ $ $ (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, 2013 2014 2015 Income tax provision at statutory federal rate $ $ $ Increase (reduction) in income taxes resulting from: Research and development credit, net of federal income tax benefit Non-deductible expenses Change in valuation allowance — State and local income taxes, net of federal income tax benefit Other — $ $ $ (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, 2014 and 2015 are presented below. Year ended June 30, 2014 2015 Deferred tax assets: Deferred rent $ $ Allowance for doubtful accounts Accrued expenses Stock-based compensation Net operating loss carryforwards Research and development credit AMT Credits Intangible assets Total deferred tax assets Valuation allowance Net deferred tax assets Deferred tax liabilities: Research and development costs Prepaid expenses Depreciation Total deferred liabilities Net deferred tax asset (liability) $ $ 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, 2013, 2014 and 2015 was approximately $1,941, $(3,817) and $(12,424), 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, 2015, the Company has gross excess tax benefits from stock option exercises of approximately $6,610 for Federal and state income tax purposes. At June 30, 2015, the Company has net operating loss carryforwards for Federal income tax purposes of approximately $11,482 and state income tax purposes of approximately $8,254, both excluding the excess tax benefits from stock option exercises noted above. The net tax impact of $2,248 and $232 for Federal and state income tax purposes, respectively, related to the excess tax benefits from stock option exercises will be credited to additional paid-in capital when realized. The federal NOL carryforwards expire from 2029 to 2035. The state NOL carryforwards expire from 2019 to 2035. The Company also has gross federal and state research and development tax credit carryforwards of approximately $1,357 which expire between 2017 and 2035. 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, 2013, 2014 and 2015, 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, 2009 to June 30, 2015 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, 2015 depending upon the jurisdiction and the applicable statute of limitations. 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 are effective for the fiscal year ending June 30, 2015 and have not had a material impact on the Company’s results of operations, financial position, or cash flows.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	12 Months Ended
	Jun. 30, 2015
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit)	(12) Stockholders’ Equity (Deficit) Common Stock Holders of common stock are entitled to one vote per share and to receive dividends, when declared. 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 Preferre

Redeemable Convertible Preferred Stock	12 Months Ended
	Jun. 30, 2015
Redeemable Convertible Preferred Stock
Redeemable Convertible Preferred Stock	(13) 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 common stock.

Benefit Plans

Benefit Plans	12 Months Ended
	Jun. 30, 2015
Benefit Plans
Benefit Plans	(14) Benefit Plans (a) Equity Incentive Plans 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 8,832 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 of the compensation committee of the Company’s board of directors. No new awards have been or will be issued under the 2008 Plan since 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 number of shares of common stock reserved for issuance under the 2014 Plan will increase automatically each calendar year, continuing through and including January 1, 2024 (“Evergreen provision”). The number of shares added each year will be equal to the lesser of (a) four and five tenths percent (4.5%) of the number of shares of common stock of the Company issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Company’s board of directors. On January 1, 2015, the number of common shares in reserve increased by 2,272 shares as determined by the board of directors. Under the 2008 and 2014 Plans, the exercise price of each option cannot be less than the fair value of a share of common stock on the grant date. As of June 30, 2015, the Company had 8,832 shares allocated to the plans, of which 4,342 shares were subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options or vesting of awards; however, shares previously subject to 2014 Plan grants or awards that are forfeited or net settled at exercise or release 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. Stock-based compensation expense for the fair value of the options at their grant date is recognized ratably over the vesting schedule for each separately vesting portion of the award. 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: Year ended June 30, 2013 2014 2015 Cost of revenue – recurring $— $ $ Cost of revenue – non-recurring — Sales and marketing — Research and development — General and administrative Total stock-based compensation $ $ $ In addition, the Company capitalized $325 and $655 of stock-based compensation costs in its internal-use software in the years ended June 30, 2014 and 2015, respectively. No such amounts were capitalized in internal-use software in the year ended June 30, 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. As the Company has a limited history of trading as a public company, 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. 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 years ended June 30: Year ended June 30, 2013 2014 2015 Valuation assumptions: Expected dividend yield Expected volatility 29.5% - 44.5% Expected term (years) 4.0 - 6.0 Risk-free interest rate 0.52% - 1.94% The following table summarizes changes during the year ended June 30, 2015 in the number of shares available for grant under our equity incentive plans: Number of Shares Available for grant at July 1, 2014 January 1, 2015 Evergreen provision increase RSU’s granted Options granted Shares withheld in settlement of taxes and exercise price Forfeitures Shares removed Available for grant at June 30, 2015 Shares removed represents forfeitures of shares and shares withheld in settlement of taxes and payment of exercise price related to grants made under the 2008 Plan. As noted above, no new awards will be issued under the 2008 Plan. Stock option activity during the periods indicated is as follows: Outstanding Options Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Balance at July 1, 2014 $ $ Options granted Options forfeited Options exercised Balance at June 30, 2015 $ $ Options exercisable at June 30, 2015 $ $ Options vested and expected to vest at June 30, 2015 $ $ The weighted average grant date fair value of options granted during the years ended June 30, 2013, 2014 and 2015 was $1.22, $6.39 and $11.14, respectively. The total intrinsic value of options exercised during the years ended June 30, 2013 and 2015 was $87 and $8,802, respectively. There were no options exercised during the year ended June 30, 2014. At June 30, 2015, there was $5,859 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options granted. That cost is expected to be recognized over a weighted average period of 1.58 years. The following table summarizes information about stock options outstanding and stock options exercisable at June 30, 2015: Options Outstanding Options Exercisable Price Range Number of shares Weighted average remaining contractual term Weighted average exercise price Number of shares Weighted average exercise price $1.31 to $3.58 $ $ $3.59 to $5.96 $5.97 to $12.02 $12.03 to $20.90 $20.91 to $24.80 — — Options outstanding $ $ 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 year ended June 30, 2015: Units Weighted average grant date fair value RSU balance at July 1, 2014 $ RSUs granted RSUs vested RSUs cancelled/forfeited RSU balance at June 30, 2015 $ RSUs expected to vest at June 30, 2015 $ At June 30, 2015, there was $5,048 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock units granted. That cost is expected to be recognized over a weighted average period of 2.10 years. The total excess income tax benefits for stock-based compensation arrangements was $63, $703 and $5,562 for the years ended June 30, 2013, 2014 and 2015, respectively. The tax impact of these amounts will be recognized as a credit to additional paid-in capital when realized. (b) Employee Stock Purchase Plan The Company’s 2014 Employee Stock Purchase Plan (“ESPP”) was adopted by the Company’s 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 trading day closest to 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. As of June 30, 2015, a total of 1,053 common stock were reserved for future issuances under the ESPP. The number of shares of common stock reserved for issuance under the ESPP will increase automatically each calendar year, 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. On January 1, 2015, the number of common shares in reserve increased by 136 shares as determined by the Company’s board of directors. The Company commenced its initial ESPP four-month offering period on July 16, 2014 and commenced six-month offering periods on November 16, 2014 and May 16, 2015. The Company issued 36 and 47 shares at the completion of its first four-month and six-month offering periods, respectively. The Company recorded compensation expense attributable to the ESPP of $656 for the year ended June 30, 2015, which is included in the summary of stock-based compensation expense above. No such compensation expense was recorded during either of the years ended June 30, 2013 or 2014. The grant date fair value of the ESPP offering periods was estimated using the following weighted average assumptions: Year ended June 30, 2013 2014 2015 Valuation assumptions: Expected dividend yield N/A N/A Expected volatility N/A N/A 35.5 – 48.4% Expected term (years) N/A N/A 0.3 – 0.5 Risk-free interest rate N/A N/A 0.04 – 0.11% (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 $720, $1,122 and $1,656 for the years ended June 30, 2013, 2014 and 2015, respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	(15) Commitments and Contingencies (a) Employment Agreements 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. (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.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Jun. 30, 2015
Earnings Per Share
Earnings Per Share	(16) Earnings Per Share For the periods presented prior to the Company’s initial public offering (“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. 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. 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 income (loss) per share: Year ended June 30, 2013 2014 2015 Basic net income (loss) per share: Numerator: Net Income (Loss) $ $ $ Less: Preferred dividend rights attributable to participating securities — Net income (loss) attributable to common stockholders $ $ $ Denominator: Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: Basic (in thousands) Diluted (in thousands) Net income (loss) per share attributable to common stockholders: Basic $ $ $ Diluted $ $ $ The following table summarizes the outstanding redeemable convertible preferred stock, employee stock options, restricted stock units and employee stock purchase plan shares that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: Year ended June 30 2013 2014 2015 Redeemable convertible preferred stock — — Employee stock options Restricted stock units — Employee stock purchase plan shares — — Total Restricted Stock Awards were excluded from both basic and diluted earnings per share calculations for the year ended June 30, 2013 as the vesting conditions had not been met.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jun. 30, 2015
Related Party Transactions
Related Party Transactions	(17) Related Party Transactions Elite Sales The Company purchased sales leads from an entity owned by one of its stockholders in the amount of approximately $893 and $231 for the years ended June 30, 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. There were no amounts payable to this entity as of June 30, 2014 and 2015, as 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	12 Months Ended
	Jun. 30, 2015
Subsequent Events
Subsequent Events	(18) Subsequent Events In July 2015, the Company signed an amendment to its Florida office lease to extend the term through April 2026 and expand the square footage of the space subject to the lease by 40 square feet. In July 2015, the Company signed an amendment to its headquarters office lease to expand the square footage of the space subject to the lease by 11 square feet. Under the terms of these lease amendments, incremental minimum lease obligations (including rent holidays) above and beyond the minimum lease obligations described in Note 10 are as follows: Year ending June 30: 2016 $ 2017 2018 2019 2020 Later years, through 2026 Total minimum lease payments $

Selected Quarterly Financial Da

Selected Quarterly Financial Data (unaudited)	12 Months Ended
	Jun. 30, 2015
Selected Quarterly Financial Data (unaudited)
Selected Quarterly Financial Data (unaudited)	(19) 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, 2014 and 2015. Quarter Ended September 30, 2013 December 31, 2013 March 31, 2014 June 30, 2014 Consolidated Statements of Operations Data Revenues $ $ $ $ Gross profit $ $ $ $ Operating income (loss) $ $ $ $ Net income (loss) $ $ $ $ Net income (loss) per share attributable to common stockholders: Basic $ $ $ Diluted $ $ $ Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: Basic Diluted Quarter Ended September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 Consolidated Statements of Operations Data Revenues $ $ $ $ Gross profit $ $ $ $ Operating income (loss) $ $ $ $ Net income (loss) $ $ $ $ Net income (loss) per share attributable to common stockholders: Basic $ $ $ $ Diluted $ $ $ $ Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: Basic Diluted

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2015
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, internal-use software, 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, 2013 2014 2015 Balance at the beginning of the year $ $ $ Charged to expense Write-offs Balance at the end of the year $ $ $
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.
Internal-Use Software	(f) Internal-Use Software The Company applies Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 350-40, Intangibles—Goodwill and Other—Internal-Use Software , to the accounting for costs of internal-use software. Internal-use software 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, such as consulting fees. 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. 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.
Property and Equipment and Long-Lived Assets	(g) 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.
Other intangible assets, net of accumulated amortization	(h) O ther intangible assets, net of accumulated amortization 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 a nine-year time frame from the date of acquisition, while non-solicitation agreements use the straight-line method of amortization over the lives of the related agreements. 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.
Goodwill	(i) Goodwill 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 acquisitions of certain assets of BFKMS, Inc. and Synergy Payroll, LLC. 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 the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount, the two-step goodwill impairment test is required. Otherwise no further analysis is required. If the two-step goodwill impairment test is required, 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. In the second step, 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. In the event the fair value of the reporting unit exceeds its carrying amount, step two is not performed. The Company performs its annual impairment review of goodwill in its fiscal fourth quarter or when a triggering event occurs between annual impairment tests. No impairment was recorded in fiscal 2015 as a result of the Company’s impairment test. Given that the Company did not have recorded goodwill until its fiscal fourth quarter of 2014, no impairment tests were required to be completed for fiscal 2014.
Deferred Rent	(j) 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	(k) 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 and expired on December 31, 2014, 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. Refer to Note 11 for additional information on income taxes.
Revenue Recognition	(l) Revenue Recognition The Company recognizes revenue in accordance with 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 ASC 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	(m) 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 internal-use 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	(n) Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $27, $24 and $187 for the years ended June 30, 2013, 2014 and 2015, respectively.
Stock-Based Compensation	(o) Stock-Based Compensation 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 their vesting term or the term of the ESPP purchase period.
Commitments and Contingencies	(p) 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	(q) 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	(r) Recently Issued Accounting Standards In May 2014, the 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 “retrospective” or “cumulative effect” transition method. The original standard was effective for fiscal years beginning after December 15, 2016. In July 2015, the FASB approved a one-year deferral of this standard, with a new effective date for fiscal years beginning after December 15, 2017 with early adoption permitted as of the original effective date. The Company is currently assessing the potential effects of these changes to its consolidated financial statements and is evaluating the adoption method and timing. 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.

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Schedule of activity in allowance for doubtful accounts	For the Years Ended June 30, 2013 2014 2015 Balance at the beginning of the year $ $ $ Charged to expense Write-offs Balance at the end of the year $ $ $

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Jun. 30, 2015
BFKMS Inc
Summary of provisional fair value of the assets acquired at the date of acquisition	At May 23, 2014 Intangible assets $ Goodwill Total purchase price $
Synergy Payroll LLC
Summary of provisional fair value of the assets acquired at the date of acquisition	At April 16, 2015 Intangible assets $ Goodwill Total purchase price $

Capitalized Internal-Use Soft30

Capitalized Internal-Use Software (Tables)	12 Months Ended
	Jun. 30, 2015
Capitalized Internal-Use Software
Schedule of capitalized internal-use software and accumulated amortization	Year ended June 30, 2014 2015 Capitalized internal-use software $ $ Accumulated amortization Capitalized internal-use software, net $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Jun. 30, 2015
Property and Equipment
Schedule of property and equipment	Year ended June 30, 2014 2015 Office equipment $ $ Computer equipment Furniture and fixtures Software Leasehold improvements Time clocks rented by clients Accumulated depreciation and amortization Property and equipment, net $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets
Schedule of changes in goodwill	Balance at June 30, 2014 $ Additions attributable to current year acquisition Balance at June 30, 2015 $
Schedule of amortizable intangible assets before amortization expense	As of June 30, 2014 As of June 30, 2015 Weighted Average Useful Life Client relationships $ $ 9 years Non-solicitation agreements 2-3 years Total Accumulated amortization Intangible assets, net $ $
Schedule of future amortization expense for acquired intangible	Year ending June 30: 2016 $ 2017 2018 2019 2020 Thereafter Total $

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Jun. 30, 2015
Accrued Expenses
Schedule of components of accrued expenses	Year ended June 30, 2014 2015 Accrued payroll and personnel costs $ $ Current portion of deferred rent Other Total Accrued Expenses $ $

Leases (Tables)

Leases (Tables)	12 Months Ended
	Jun. 30, 2015
Leases
Schedule of future minimum lease payments under non-cancellable operating leases	Year ending June 30: 2016 $ 2017 2018 2019 2020 Later years, through 2023 Total minimum lease payments $

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2015
Income Taxes
Schedule of income tax (benefit) expense	Year ended June 30, 2013 2014 2015 Current taxes U.S. federal $ $ $— State and local Deferred taxes: U.S. federal State and local Total income tax (benefit) expense $ $ $
Schedule of tax rate reconciliation by applying the U.S. federal income tax rate to pretax income from continuing operations	Year ended June 30, 2013 2014 2015 Income tax provision at statutory federal rate $ $ $ Increase (reduction) in income taxes resulting from: Research and development credit, net of federal income tax benefit Non-deductible expenses Change in valuation allowance — State and local income taxes, net of federal income tax benefit Other — $ $ $
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, 2014 2015 Deferred tax assets: Deferred rent $ $ Allowance for doubtful accounts Accrued expenses Stock-based compensation Net operating loss carryforwards Research and development credit AMT Credits Intangible assets Total deferred tax assets Valuation allowance Net deferred tax assets Deferred tax liabilities: Research and development costs Prepaid expenses Depreciation Total deferred liabilities Net deferred tax asset (liability) $ $

Benefit Plans (Tables)

Benefit Plans (Tables)	12 Months Ended
	Jun. 30, 2015
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")	Year ended June 30, 2013 2014 2015 Cost of revenue – recurring $— $ $ Cost of revenue – non-recurring — Sales and marketing — Research and development — General and administrative Total stock-based compensation $ $ $
Summary of the assumptions used for estimating the fair value of stock options granted	Year ended June 30, 2013 2014 2015 Valuation assumptions: Expected dividend yield Expected volatility 29.5% - 44.5% Expected term (years) 4.0 - 6.0 Risk-free interest rate 0.52% - 1.94%
Summary of shares available for grant under our equity incentive plans	Number of Shares Available for grant at July 1, 2014 January 1, 2015 Evergreen provision increase RSU’s granted Options granted Shares withheld in settlement of taxes and exercise price Forfeitures Shares removed Available for grant at June 30, 2015
Schedule of stock option activity	Outstanding Options Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Balance at July 1, 2014 $ $ Options granted Options forfeited Options exercised Balance at June 30, 2015 $ $ Options exercisable at June 30, 2015 $ $ Options vested and expected to vest at June 30, 2015 $ $
Schedule of stock options outstanding and stock options exercisable	The following table summarizes information about stock options outstanding and stock options exercisable at June 30, 2015: Options Outstanding Options Exercisable Price Range Number of shares Weighted average remaining contractual term Weighted average exercise price Number of shares Weighted average exercise price $1.31 to $3.58 $ $ $3.59 to $5.96 $5.97 to $12.02 $12.03 to $20.90 $20.91 to $24.80 — — Options outstanding $ $
Schedule of Restricted stock unit activity	Units Weighted average grant date fair value RSU balance at July 1, 2014 $ RSUs granted RSUs vested RSUs cancelled/forfeited RSU balance at June 30, 2015 $ RSUs expected to vest at June 30, 2015 $
Schedule of estimated grant date fair value of ESPP offering period using weighted average assumptions	Year ended June 30, 2013 2014 2015 Valuation assumptions: Expected dividend yield N/A N/A Expected volatility N/A N/A 35.5 – 48.4% Expected term (years) N/A N/A 0.3 – 0.5 Risk-free interest rate N/A N/A 0.04 – 0.11%

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Jun. 30, 2015
Earnings Per Share
Schedule of calculation of basic and diluted net income (loss) per share	Year ended June 30, 2013 2014 2015 Basic net income (loss) per share: Numerator: Net Income (Loss) $ $ $ Less: Preferred dividend rights attributable to participating securities — Net income (loss) attributable to common stockholders $ $ $ Denominator: Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: Basic (in thousands) Diluted (in thousands) Net income (loss) per share attributable to common stockholders: Basic $ $ $ Diluted $ $ $
Summary of outstanding redeemable convertible preferred stock, employee stock options, restricted stock units and employee stock purchase plan shares excluded from the diluted per share calculation because to include them would have been anti-dilutive	Year ended June 30 2013 2014 2015 Redeemable convertible preferred stock — — Employee stock options Restricted stock units — Employee stock purchase plan shares — — Total

Subsequent Events (Tables)

Subsequent Events (Tables)	12 Months Ended
	Jun. 30, 2015
Subsequent Events
Schedule of Incremental minimum lease obligations to the minimum lease obligations after a subsequent event	Year ending June 30: 2016 $ 2017 2018 2019 2020 Later years, through 2026 Total minimum lease payments $

Selected Quarterly Financial 39

Selected Quarterly Financial Data (unaudited) (Tables)	12 Months Ended
	Jun. 30, 2015
Selected Quarterly Financial Data (unaudited)
Schedule of selected unaudited quarterly statements of operations data	Quarter Ended September 30, 2013 December 31, 2013 March 31, 2014 June 30, 2014 Consolidated Statements of Operations Data Revenues $ $ $ $ Gross profit $ $ $ $ Operating income (loss) $ $ $ $ Net income (loss) $ $ $ $ Net income (loss) per share attributable to common stockholders: Basic $ $ $ Diluted $ $ $ Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: Basic Diluted Quarter Ended September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 Consolidated Statements of Operations Data Revenues $ $ $ $ Gross profit $ $ $ $ Operating income (loss) $ $ $ $ Net income (loss) $ $ $ $ Net income (loss) per share attributable to common stockholders: Basic $ $ $ $ Diluted $ $ $ $ Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: Basic Diluted

Organization and Description 40

Organization and Description of Business (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended		12 Months Ended
	Jan. 31, 2015	Dec. 31, 2014	Jun. 30, 2014
Follow-on offering
Net proceeds after deducting underwriting discounts and commissions and other offering expenses			$ 81,927
Follow-On Offering
Follow-on offering
Number of shares of common stock issued and sold		750
Net proceeds after deducting underwriting discounts and commissions and other offering expenses		$ 18,367
Public offering price (in dollar per share)		$ 26.25
Underwriting discounts and commissions		$ 935
Other offering expenses		$ 385
Follow on offering exercised by underwriters (in shares)	360
Shares available for grant	690
Existing shareholders
Follow-on offering
Number of shares of common stock issued and sold		3,850

Summary of Significant Accoun41

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Accounts Receivable
Number of days past due before a balance will be reviewed for collectability	60 days
Activity in allowance for doubtful accounts
Balance at beginning of period	$ 126	$ 118	$ 114
Charged to expense	90	62	60
Write-offs	(67)	(54)	(56)
Balance at end of period	$ 149	$ 126	$ 118
Total Revenue | Clients
Concentrations of Risk
Concentration Risk, Customer	No individual client represents 10% or more of total revenues.
Revenues generated by clients in the U.S. (as a percent)	100.00%	100.00%	100.00%

Summary of Significant Accoun42

Summary of Significant Accounting Policies (Details 2)	12 Months Ended
	Jun. 30, 2015
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 Accoun43

Summary of Significant Accounting Policies (Details 3) $ in Thousands	12 Months Ended
	Jun. 30, 2015USD ($)segment	Jun. 30, 2014USD ($)	Jun. 30, 2013USD ($)
Goodwill and other intangible assets, net of accumulated amortization
Goodwill, Impairment Loss	$ 0
Revenue Recognition
Period of notice days given for cancellation of agreement	60 days
Advertising
Advertising costs	$ 187	$ 24	$ 27
Segment Information
Number of reporting segments | segment	1
Client relationships
Goodwill and other intangible assets, net of accumulated amortization
Estimated useful lives	9 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 Cl44

Funds Held for Clients and Client Fund Obligations (Details)	12 Months Ended
	Jun. 30, 2015
Funds Held for Clients and Client Fund Obligations
Period of repayment of client fund obligation liabilities	1 year

Business Combinations (Details)

Business Combinations (Details) $ in Thousands	Apr. 16, 2015USD ($)	Apr. 16, 2015USD ($)	May. 23, 2014USD ($)	Jan. 31, 2016USD ($)	Aug. 31, 2015USD ($)	Apr. 30, 2015USD ($)	May. 31, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2013USD ($)
Business Combinations
Number of reseller agreements prior to the termination of said agreements							2
Payments for acquisition								$ 11,979	$ 6,450
Goodwill								6,003	3,035
BFKMS Inc
Business Combinations
Amount paid to reseller per terms of a reseller agreement									2,495	$ 2,377
Total consideration							$ 9,435
Payments for acquisition								2,985	6,450
Intangible assets			$ 6,400
Goodwill			3,035
Total purchase price			$ 9,435
Goodwill amortization period for income tax purposes			15 years
BFKMS Inc | Client relationships
Business Combinations
Intangible assets			$ 6,180
BFKMS Inc | Non Solicitation Agreement
Business Combinations
Intangible assets			$ 220
Synergy Payroll LLC
Business Combinations
Amount paid to reseller per terms of a reseller agreement								$ 2,361	$ 2,081	$ 1,783
Total consideration						$ 9,508
Payments for acquisition	$ 8,994
Intangible assets	6,540	$ 6,540
Goodwill	2,968	2,968
Total purchase price	9,508	$ 9,508
Goodwill amortization period for income tax purposes		15 years
Synergy Payroll LLC | Client relationships
Business Combinations
Intangible assets	6,400	$ 6,400
Synergy Payroll LLC | Non Solicitation Agreement
Business Combinations
Intangible assets	$ 140	$ 140
Estimated | Synergy Payroll LLC
Business Combinations
Payments for acquisition				$ 300	$ 211

Capitalized Internal-Use Soft46

Capitalized Internal-Use Software (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	$ 24,733	$ 19,863
Accumulated amortization	(17,376)	(14,770)
Capitalized internal-use software, net	7,357	5,093
Amortization of capitalized internal-use software costs	$ 2,606	$ 2,195	$ 3,067

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Property and equipment
Property and equipment, gross	$ 31,155	$ 24,874
Accumulated depreciation and amortization	(15,094)	(11,749)
Property and equipment, net	16,061	13,125
Depreciation expense	5,084	4,061	$ 2,504
Office equipment
Property and equipment
Property and equipment, gross	1,875	1,449
Computer equipment
Property and equipment
Property and equipment, gross	11,783	7,726
Furniture and fixtures
Property and equipment
Property and equipment, gross	2,423	2,317
Software
Property and equipment
Property and equipment, gross	5,218	4,963
Leasehold improvements
Property and equipment
Property and equipment, gross	6,639	6,059
Time clocks rented by clients
Property and equipment
Property and equipment, gross	$ 3,217	$ 2,360

Goodwill and Intangible Asset48

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Changes in goodwill
Balance at beginning of the period	$ 3,035
Additions attributable to current year acquisition	2,968
Balance at end of the period	6,003	$ 3,035
Intangible Assets
Intangible assets	12,940	6,400
Accumulated amortization	(999)	(80)
Amortization expense for acquired intangible assets	919	80	$ 0
Intangible assets, net	11,941	6,320
Future amortization expense for acquired intangible
2,016	1,523
2,017	1,512
2,018	1,427
2,019	1,398
2,020	1,398
Thereafter	4,683
Intangible assets, net	11,941	6,320
Client relationships
Intangible Assets
Intangible assets	$ 12,580	6,180
Useful life	9 years
Non-solicitation agreement
Intangible Assets
Intangible assets	$ 360	$ 220
Non-solicitation agreement | Minimum
Intangible Assets
Useful life	2 years
Non-solicitation agreement | Maximum
Intangible Assets
Useful life	3 years

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Jun. 30, 2014
Components of accrued expenses
Accrued payroll and personnel costs	$ 14,275	$ 8,781
Current portion of deferred rent	727	577
Other	1,428	1,386
Total accrued expenses	$ 16,430	$ 10,744

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Leases
Rental expense for operating leases	$ 4,238	$ 3,035	$ 2,347
Future minimum lease payments under non-cancellable operating leases
2,016	4,163
2,017	3,800
2,018	3,713
2,019	3,087
2,020	1,381
Later years, through 2023	482
Total minimum lease payments	$ 16,626

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Current taxes
U.S. federal		$ (125)	$ 126
State and local	$ 14	39	94
Deferred taxes:
U.S. federal	83	160	(516)
State and local	8	181	(306)
Total income tax (benefit) expense	$ 105	255	(602)
Tax Rate Reconciliation
U.S. federal income tax rate (as a percent)	34.00%
Income tax provision at statutory federal rate	$ (4,716)	(2,331)	6
Increase (reduction) in income taxes resulting from:
Research and development credit, net of federal income tax benefit	(276)	(189)	(650)
Non-deductible expenses	418	145	53
Change in valuation allowance	4,570	2,878
State and local income taxes, net of federal income tax benefit	(562)	(387)	(11)
Other	671	139
Total income tax (benefit) expense	105	255	(602)
Deferred tax assets:
Deferred rent	558	569
Allowance for doubtful accounts	56	48
Accrued expenses	1,313	761
Stock-based compensation	4,671	2,149
Net operating loss carryforwards	4,332	1,641
Research and development credit	1,357	1,116
AMT Credits	11	11
Intangible assets	163	5
Total deferred tax assets	12,461	6,300
Valuation allowance	(7,448)	(2,878)
Net deferred tax assets	5,013	3,422
Deferred tax liabilities:
Research and development costs	(2,837)	(1,950)
Prepaid expenses	(208)	(74)
Depreciation	(2,067)	(1,406)
Total deferred liabilities	(5,112)	(3,430)
Net deferred tax asset (liability)	(99)	(8)
Taxable income (loss)	$ (12,424)	(3,817)	1,941
Period of cumulative loss position	3 years
Operating Loss Carryforwards
Excess tax benefits from exercise of stock options	$ 6,610
Unrecognized tax benefits	0	$ 0	$ 0
Federal
Operating Loss Carryforwards
Net operating loss carryforwards	11,482
Excess tax benefits from exercise of stock options	$ 2,248
Years open to tax examination	June 30, 2009 to June 30, 2015
Federal | Minimum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Jan. 1, 2029
Federal | Maximum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Dec. 31, 2035
State
Operating Loss Carryforwards
Net operating loss carryforwards	$ 8,254
Excess tax benefits from exercise of stock options	$ 232
Years open to tax examination	June 30, 2008 to June 30, 2015
State | Minimum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Jan. 1, 2019
State | Maximum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Dec. 31, 2035
Research Tax Credit Carryforward [Member]
Operating Loss Carryforwards
Tax credit carryforwards	$ 1,357
Research Tax Credit Carryforward [Member] | Minimum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Jan. 1, 2017
Research Tax Credit Carryforward [Member] | Maximum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Dec. 31, 2035
Alternative Minimum Tax [Member]
Operating Loss Carryforwards
Tax credit carryforwards	$ 11

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) (Details)	12 Months Ended
	Jun. 30, 2015item
Common Stock
Stockholders' Equity (Deficit)
Number of common stock vote per share	1

Redeemable Convertible Prefer53

Redeemable Convertible Preferred Stock (Details) shares in Thousands	1 Months Ended
	Mar. 31, 2014shares	Feb. 28, 2014item
Redeemable Convertible Preferred Stock
Number of series of redeemable convertible preferred stock		2
Initial Public Offering
Redeemable Convertible Preferred Stock
Number of shares issued on conversion of series A and series B redeemable convertible preferred stock | shares	11,933

Benefit Plans (Details)

Benefit Plans (Details) - shares shares in Thousands	12 Months Ended
	Jun. 30, 2015	Jan. 01, 2015
Equity Incentive Plans
Number of shares of common stock reserved for issuance	8,832
Number of shares allocated but not yet issued that are subject to outstanding options or awards	4,342
Stock options
Equity Incentive Plans
Expiration period	10 years
Stock options | Minimum
Equity Incentive Plans
Vesting period	3 years
Stock options | Maximum
Equity Incentive Plans
Vesting period	4 years
2008 Plan
Equity Incentive Plans
Awards issued (in shares)	0
2014 Plan
Equity Incentive Plans
Additional shares available for grant		2,272
Potential additional shares available for grant (as a percent)	4.50%

Benefit Plans (Details 2)

Benefit Plans (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Benefit Plans
Total stock-based compensation expense	$ 13,169	$ 4,929	$ 523
Stock-based compensation costs capitalized	655	325	0
Cost of revenue - recurring
Benefit Plans
Total stock-based compensation expense	1,532	496
Cost of revenue - non-recurring
Benefit Plans
Total stock-based compensation expense	1,222	424
Sales and marketing
Benefit Plans
Total stock-based compensation expense	3,247	765
Research and development
Benefit Plans
Total stock-based compensation expense	2,533	615
General and administrative
Benefit Plans
Total stock-based compensation expense	$ 4,635	$ 2,629	$ 523

Benefit Plans (Details 3)

Benefit Plans (Details 3) - Jun. 30, 2015 - Equity Incentive Plan - shares shares in Thousands	Total
Shares Available for Grant
Balance at the beginning of the period (in shares)	2,581
Evergreen provision increase	2,272
RSU's granted (in shares)	(429)
Options granted (in shares)	(322)
Shares withheld in settlement of taxes and exercise price (in shares)	266
Forfeitures (in shares)	327
Shares removed	(205)
Balance at the end of the period (in shares)	4,490

Benefit Plans (Details 4)

Benefit Plans (Details 4) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Aggregate intrinsic value
Total excess income tax benefits for stock based compensation arrangements	$ 5,562	$ 703	$ 63
Stock options
Valuation assumptions:
Expected dividend yield (as a percent)	0.00%		0.00%
Expected volatility (as a percent)	43.90%		30.70%
Expected term (years)	6 years 3 months		4 years
Risk-free interest rate (as a percent)	1.91%		0.61%
Shares Available for Grant
Options granted (in shares)	(322)
Forfeitures (in shares)	302
Number of shares
Balance at the beginning of the period (in shares)	4,388
Options granted (in shares)	322
Options forfeited (in shares)	(302)
Options exercised (in shares)	(452)	0
Balance at the end of the period (in shares)	3,956	4,388
Options exercisable at the end of the period (in shares)	1,691
Options vested and expected to vest at the end of the period (in shares)	3,825
Weighted average exercise price
Balance at the beginning of the period (in dollars per share)	$ 10
Options granted (in dollars per share)	24.80
Options forfeited (in dollars per share)	13.83
Options exercised (in dollars per share)	9.57
Balance at the end of the period (in dollars per share)	10.96	$ 10
Options exercisable at the end of the period (in dollars per share)	6.44
Options vested and expected to vest at the end of the period (in dollars per share)	$ 10.75
Weighted average remaining contractual term
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	7 years 7 months 17 days	8 years 6 months 29 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	7 years 7 months 17 days	8 years 6 months 29 days
Options exercisable at the end of the period	6 years 7 months 21 days
Options vested and expected to vest at the end of the period	7 years 7 months 2 days
Aggregate intrinsic value
Balance at the beginning of the period	$ 51,017
Options exercisable at the end of the period	49,736
Options vested and expected to vest at the end of the period	96,029
Balance at the end of the period (in dollars)	$ 98,434	$ 51,017
Weighted average grant date fair value of options granted (in dollars per share)	$ 11.14	$ 6.39	$ 1.22
Total intrinsic value of options exercised	$ 8,802		$ 87
Total unrecognized compensation cost, net of estimated forfeitures	$ 5,859
Weighted average period to recognize unrecognized compensation cost	1 year 6 months 29 days
Stock options | Minimum
Valuation assumptions:
Expected dividend yield (as a percent)		0.00%
Expected volatility (as a percent)		29.50%
Expected term (years)		4 years
Risk-free interest rate (as a percent)		0.52%
Stock options | Maximum
Valuation assumptions:
Expected dividend yield (as a percent)		0.00%
Expected volatility (as a percent)		44.50%
Expected term (years)		6 years
Risk-free interest rate (as a percent)		1.94%
RSUs
Shares Available for Grant
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	429
Aggregate intrinsic value
Total unrecognized compensation cost, net of estimated forfeitures	$ 5,048
Weighted average period to recognize unrecognized compensation cost	2 years 1 month 6 days
Units
RSU Balance at the beginning of the period (in shares)	102
RSU's granted (in shares)	429
RSUs vested (in shares)	(120)
RSUs cancelled/forfeited (in shares)	(25)
RSU Balance at the end of the period (in shares)	386	102
RSUs expected to vest at the end of the period (in shares)	356
Weighted average grant date fair value
RSU Balance at the beginning of the period (in dollars per share)	$ 17
RSU's granted (in dollars per share)	25.03
RSUs vested (in dollars per share)	18.42
RSUs cancelled/forfeited (in dollars per share)	24.80
RSU Balance at the end of the period (in dollars per share)	24.98	$ 17
RSUs expected to vest at the end of the period (in dollars per share)	$ 24.96

Benefit Plans (Details 5)

Benefit Plans (Details 5) - Jun. 30, 2015 - Stock options - $ / shares shares in Thousands	Total
Schedule of stock options outstanding and stock options exercisable
Number Outstanding at end of the period (in shares)	3,956
Weighted-Average Remaining Contractual Life	7 years 7 months 17 days
Weighted-Average Exercise Price (in dollars per share)	$ 10.96
Number Exercisable at the end of the period (in shares)	1,691
Weighted Average Exercise Price (in dollars per share)	$ 6.44
$1.31 to $3.58
Schedule of stock options outstanding and stock options exercisable
Exercise price range, lower limit (in dollars per share)	1.31
Exercise price range, upper limit (in dollars per share)	$ 3.58
Number Outstanding at end of the period (in shares)	808
Weighted-Average Remaining Contractual Life	5 years 2 months 16 days
Weighted-Average Exercise Price (in dollars per share)	$ 1.55
Number Exercisable at the end of the period (in shares)	808
Weighted Average Exercise Price (in dollars per share)	$ 1.55
$3.59 to $5.96
Schedule of stock options outstanding and stock options exercisable
Exercise price range, lower limit (in dollars per share)	3.59
Exercise price range, upper limit (in dollars per share)	$ 5.96
Number Outstanding at end of the period (in shares)	892
Weighted-Average Remaining Contractual Life	7 years 1 month 21 days
Weighted-Average Exercise Price (in dollars per share)	$ 4.88
Number Exercisable at the end of the period (in shares)	428
Weighted Average Exercise Price (in dollars per share)	$ 4.88
$5.97 to $12.02
Schedule of stock options outstanding and stock options exercisable
Exercise price range, lower limit (in dollars per share)	5.97
Exercise price range, upper limit (in dollars per share)	$ 12.02
Number Outstanding at end of the period (in shares)	305
Weighted-Average Remaining Contractual Life	8 years 15 days
Weighted-Average Exercise Price (in dollars per share)	$ 7.04
Number Exercisable at the end of the period (in shares)	18
Weighted Average Exercise Price (in dollars per share)	$ 7.04
$12.03 to $20.90
Schedule of stock options outstanding and stock options exercisable
Exercise price range, lower limit (in dollars per share)	12.03
Exercise price range, upper limit (in dollars per share)	$ 20.90
Number Outstanding at end of the period (in shares)	1,634
Weighted-Average Remaining Contractual Life	8 years 8 months 19 days
Weighted-Average Exercise Price (in dollars per share)	$ 17
Number Exercisable at the end of the period (in shares)	437
Weighted Average Exercise Price (in dollars per share)	$ 17
$20.91 to $24.80
Schedule of stock options outstanding and stock options exercisable
Exercise price range, lower limit (in dollars per share)	20.91
Exercise price range, upper limit (in dollars per share)	$ 24.80
Number Outstanding at end of the period (in shares)	317
Weighted-Average Remaining Contractual Life	9 years 1 month 21 days
Weighted-Average Exercise Price (in dollars per share)	$ 24.80

Benefit Plans (Details 6)

Benefit Plans (Details 6) - USD ($) shares in Thousands, $ in Thousands	May. 16, 2015	May. 16, 2015	Jan. 01, 2015	Nov. 16, 2014	Nov. 16, 2014	Jul. 16, 2014	Feb. 06, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Equity Incentive Plans
Number of shares of common stock reserved for issuance								8,832
Compensation expense (in dollars)								$ 13,169	$ 4,929	$ 523
Employee stock purchase plan shares
Equity Incentive Plans
Offering period	6 months				6 months	4 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
Number of periods during which shares can be purchased							1 year
Number of shares of common stock reserved for issuance								1,053
Number of shares issued		47		36
Actual additional number of shares reserved for issuance each year			136
Potential number of shares reserved for issuance each year								400
Potential percentage of additional number of shares reserved for issuance each year								0.75%
Compensation expense (in dollars)								$ 656	$ 0	$ 0
Employee stock purchase plan shares | Minimum
Valuation assumptions:
Expected volatility								35.50%
Expected term (years)								3 months 18 days
Risk-free interest rate								0.04%
Employee stock purchase plan shares | Maximum
Equity Incentive Plans
Offering period							27 months
Valuation assumptions:
Expected dividend yield								0.00%
Expected volatility								48.40%
Expected term (years)								6 months
Risk-free interest rate								0.11%

Benefit Plans (Details 7)

Benefit Plans (Details 7) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Benefit Plans
Matching contributions by the Company as percentage of employees' contributions	50.00%
Maximum contributions as percentage of employees' gross pay	6.00%
Contributions	$ 1,656	$ 1,122	$ 720

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013	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)	$ (4,429)	$ 1,752	$ (6,420)	$ (4,875)	$ (6,704)	$ 1,150	$ (1,512)	$ (44)	$ (13,972)	$ (7,110)	$ 617
Less: Preferred dividend rights attributable to participating securities										(2,282)	(2,908)
Net income (loss) attributable to common stockholders									$ (13,972)	$ (9,392)	$ (2,291)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)	50,650	50,533	49,775	49,566	49,564	44,360	31,988	31,988	50,127	36,707	31,988
Diluted (in shares)	50,650	52,203	49,775	49,566	49,564	44,870	31,988	31,988	50,127	36,707	31,988
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.09)	$ 0.03	$ (0.13)	$ (0.10)	$ (0.14)	$ 0.01	$ (0.07)	$ (0.03)	$ (0.28)	$ (0.26)	$ (0.07)
Diluted (in dollars per share)	$ (0.09)	$ 0.03	$ (0.13)	$ (0.10)	$ (0.14)	$ 0.01	$ (0.07)	$ (0.03)	$ (0.28)	$ (0.26)	$ (0.07)
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)									4,355	4,490	13,792
Redeemable convertible preferred stock.
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)											11,933
Employee stock options
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)									3,956	4,388	1,859
RSUs
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)									386	102
Employee stock purchase plan shares
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)									13

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	1 Months Ended	12 Months Ended
	May. 31, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2013USD ($)
Related party transactions
Amount received from related party for cash bonus to long-term employees			$ 1,052
Elite Sales
Related party transactions
Equity interest (as a percent)		0.00%
Obligation to fund operational shortfalls		$ 0
Number of stockholders owned sales leads supply entities | item		1
Amount of sales leads purchased			231	$ 893
Accounts payable due		$ 0	$ 0
Board of Directors Chairman
Related party transactions
Amount received from related party for cash bonus to long-term employees	$ 1,052

Subsequent Events (Details)

Subsequent Events (Details) ft² in Thousands, $ in Thousands	1 Months Ended
	Jul. 31, 2015USD ($)ft²	Jun. 30, 2015USD ($)
Incremental minimum lease obligations to the minimum lease obligations
2,016		$ 4,163
2,017		3,800
2,018		3,713
2,019		3,087
2,020		1,381
Later years, through 2026		482
Total minimum lease payments		$ 16,626
Subsequent event | Florida Office Lease Amendment
Subsequent events
Area of office space leased (in square feet) | ft²	40
Subsequent event | Headquarters Office Lease Amendment
Subsequent events
Area of office space leased (in square feet) | ft²	11
Subsequent event | Florida and Headquarters Office Lease Amendment
Incremental minimum lease obligations to the minimum lease obligations
2,016	$ (156)
2,017	954
2,018	1,393
2,019	1,806
2,020	1,859
Later years, through 2026	11,020
Total minimum lease payments	$ 16,876

Selected Quarterly Financial 64

Selected Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Consolidated States of Operations Data
Revenues	$ 40,004	$ 47,272	$ 34,313	$ 31,109	$ 28,647	$ 33,766	$ 23,905	$ 22,369	$ 152,698	$ 108,687	$ 77,294
Gross profit	21,888	27,990	16,267	15,657	13,543	18,841	10,587	10,622	81,802	53,593	37,628
Operating income (loss)	(4,264)	1,705	(6,466)	(4,896)	(6,306)	2,133	(2,411)	(434)	(13,921)	(7,018)	31
Net income (loss)	$ (4,429)	$ 1,752	$ (6,420)	$ (4,875)	$ (6,704)	$ 1,150	$ (1,512)	$ (44)	$ (13,972)	$ (7,110)	$ 617
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.09)	$ 0.03	$ (0.13)	$ (0.10)	$ (0.14)	$ 0.01	$ (0.07)	$ (0.03)	$ (0.28)	$ (0.26)	$ (0.07)
Diluted (in dollars per share)	$ (0.09)	$ 0.03	$ (0.13)	$ (0.10)	$ (0.14)	$ 0.01	$ (0.07)	$ (0.03)	$ (0.28)	$ (0.26)	$ (0.07)
Weighted average number of shares of common stock used in computing net loss per share attributable to common stockholders:
Basic (in shares)	50,650	50,533	49,775	49,566	49,564	44,360	31,988	31,988	50,127	36,707	31,988
Diluted (in shares)	50,650	52,203	49,775	49,566	49,564	44,870	31,988	31,988	50,127	36,707	31,988

Uncategorized Items - pcty-2015

Label	Element	Value
Series A Preferred Stock [Member]
Stock Issued During Period, Value, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodValueConversionOfConvertibleSecurities	$ (9,339)
Stock Issued During Period, Shares, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities	(9,500)
Series B Preferred Stock [Member]
Stock Issued During Period, Value, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodValueConversionOfConvertibleSecurities	$ (27,234)
Stock Issued During Period, Shares, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities	(8,400)