Paylocity Holding (PCTY) 10-Q 6 May 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document and Entity Information
Entity Registrant Name	Paylocity Holding Corp
Entity Central Index Key	1,591,698
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		51,010,873
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 89,707	$ 81,258
Accounts receivable, net	1,725	1,115
Prepaid expenses and other	7,059	4,416
Deferred income tax assets, net	387	775
Total current assets before funds held for clients	98,878	87,564
Funds held for clients	1,422,976	591,219
Total current assets	1,521,854	678,783
Long-term prepaid expenses	856	403
Capitalized internal-use software, net	10,181	7,357
Property and equipment, net	24,934	16,061
Intangible assets, net	10,799	11,941
Goodwill	6,003	6,003
Total assets	1,574,627	720,548
Current liabilities:
Accounts payable	851	1,327
Consideration related to acquisitions		511
Accrued expenses	24,964	16,430
Total current liabilities before client fund obligations	25,815	18,268
Client fund obligations	1,422,976	591,219
Total current liabilities	1,448,791	609,487
Deferred rent	4,643	2,607
Deferred income tax liabilities, net	599	874
Total liabilities	$ 1,454,033	$ 612,968
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2015 and March 31, 2016
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2015 and March 31, 2016; 50,703 shares issued and outstanding at June 30, 2015 and 50,984 shares issued and outstanding at March 31, 2016	$ 51	$ 51
Additional paid-in capital	167,125	155,672
Accumulated deficit	(46,582)	(48,143)
Total stockholders' equity	120,594	107,580
Total liabilities and stockholders' equity	$ 1,574,627	$ 720,548

Unaudited Consolidated Balance3

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2016	Jun. 30, 2015
Unaudited 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	50,984	50,703
Common Stock, shares outstanding	50,984	50,703

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Recurring fees	$ 66,279	$ 43,335	$ 160,374	$ 104,532
Interest income on funds held for clients	803	601	1,946	1,354
Total recurring revenues	67,082	43,936	162,320	105,886
Implementation services and other	3,488	3,336	8,542	6,808
Total revenues	70,570	47,272	170,862	112,694
Cost of revenues:
Recurring revenues	18,576	12,606	47,858	34,616
Implementation services and other	8,633	6,676	23,646	18,164
Total cost of revenues	27,209	19,282	71,504	52,780
Gross profit	43,361	27,990	99,358	59,914
Operating expenses:
Sales and marketing	17,681	12,673	44,471	31,152
Research and development	6,759	5,053	18,987	14,351
General and administrative	12,720	8,559	34,410	24,068
Total operating expenses	37,160	26,285	97,868	69,571
Operating income (loss)	6,201	1,705	1,490	(9,657)
Other income (expense)	(83)	51	214	180
Income (loss) before income taxes	6,118	1,756	1,704	(9,477)
Income tax benefit (expense)	43	(4)	(143)	(66)
Net income (loss)	$ 6,161	$ 1,752	$ 1,561	$ (9,543)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.12	$ 0.03	$ 0.03	$ (0.19)
Diluted (in dollars per share)	$ 0.12	$ 0.03	$ 0.03	$ (0.19)
Weighted-average shares used in computing net income (loss) per share:
Basic (in shares)	50,962	50,533	50,865	49,954
Diluted (in shares)	53,424	52,203	53,431	49,954

Unaudited Consolidated Stateme5

Unaudited Consolidated Statement of Changes in Stockholders' Equity - 9 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Jun. 30, 2015	$ 51	$ 155,672	$ (48,143)	$ 107,580
Balance (in shares) at Jun. 30, 2015	50,703			50,703
Increase (Decrease) in Stockholders' Equity
Stock-based compensation expense		14,035		$ 14,035
Stock options exercised		2,773		2,773
Stock options exercised (in shares)	311
Issuance of common stock upon vesting of restricted stock units (in shares)	108
Issuance of common stock under employee stock purchase plan		1,403		1,403
Issuance of common stock under employee stock purchase plan (in shares)	50
Net settlement for taxes and/or exercise price related to equity awards		(6,758)		(6,758)
Net settlement for taxes and/or exercise price related to equity awards (in shares)	(188)
Net income			1,561	1,561
Balance at Mar. 31, 2016	$ 51	$ 167,125	$ (46,582)	$ 120,594
Balance (in shares) at Mar. 31, 2016	50,984			50,984

Unaudited Consolidated Stateme6

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ 1,561	$ (9,543)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	13,212	10,672
Depreciation and amortization	9,875	6,245
Deferred income tax expense	113	59
Provision for doubtful accounts	90	89
Loss on disposal of equipment	301	45
Changes in operating assets and liabilities:
Accounts receivable	(700)	(403)
Prepaid expenses	(3,069)	(2,042)
Trade accounts payable	(606)	359
Accrued expenses	8,290	4,720
Net cash provided by (used in) operating activities	29,067	10,201
Cash flows from investing activities:
Capitalized internal-use software costs	(5,807)	(2,544)
Purchases of property and equipment	(11,746)	(6,331)
Payments for acquisitions	(483)	(2,985)
Net change in funds held for clients	(831,757)	(314,355)
Net cash provided by (used in) investing activities	(849,793)	(326,215)
Cash flows from financing activities:
Net change in client funds obligation	831,757	314,355
Proceeds from follow-on offering, net of cash paid for issuance costs		18,367
Payments on initial public offering costs		(75)
Proceeds from exercise of stock options	137	247
Proceeds from employee stock purchase plan	1,403	670
Taxes paid related to net share settlement of equity awards	(4,122)	(3,171)
Net cash provided by (used in) financing activities	829,175	330,393
Net Change in Cash and Cash Equivalents	8,449	14,379
Cash and Cash Equivalents-Beginning of Period	81,258	78,848
Cash and Cash Equivalents-End of Period	89,707	93,227
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Build-out allowance received from landlords	1,888	253
Purchase of property and equipment and internal-use software, accrued but not paid	683	701
Supplemental disclosure of cash flow information
Cash paid for income taxes, net of refunds	$ 20	$ 28

Organization and Description of

Organization and Description of Business	9 Months Ended
	Mar. 31, 2016
Organization and Description of Business
Organization and Description of Business	(1) Organization and Description of Business Paylocity Holding Corporation (the “Company”), through its wholly owned subsidiary, Paylocity Corporation, is a cloud-based provider of payroll and human capital management software solutions for medium-sized organizations. Services are provided in a Software-as-a-Service (“SaaS”) delivery model utilizing the Company’s cloud-based platform. Payroll services include collection, remittance and reporting of payroll liabilities to the appropriate federal, state and local authorities. Secondary Offering In September 2015, the Company completed a secondary offering in which its existing shareholders sold 3,740 shares of common stock at a public offering price of $29.75 per share. The Company did not receive any proceeds from the sale of common stock by the existing shareholders. In October 2015, the underwriters for the Company’s secondary offering exercised their option to purchase 561 additional shares from certain shareholders of the Company as described in the final prospectus filed with the Securities and Exchange Commission (“SEC”) on September 25, 2015. 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	9 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) Consolidation and Use of Estimates These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, 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. (b) Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the SEC regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows. The results of operations for the three and nine months ended March 31, 2016 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 14, 2015. (c) Income Taxes Differences in the normal relationship between the income tax benefit (expense) and pre-tax income (loss) materially result from the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. (d) 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 the option vesting term or the term of the ESPP purchase period. (e) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. In addition, in March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”) to amend certain guidance in ASU 2014-09. These amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. Topic 606 allows for either a retrospective or cumulative effect transition method. ASU 2014-09 was originally effective for fiscal years beginning after December 15, 2016. In July 2015, the FASB approved a one-year deferral of ASU 2014-09 and all amendments to it, 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. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740) (“ASU 2015-17”) . ASU 2015-17 requires all deferred income tax assets and liabilities to be classified as non-current in a classified balance sheet. This ASU would first apply prospectively or retrospectively for fiscal years beginning after December 15, 2016. Earlier adoption is permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the potential effects of these changes to its consolidated financial statements and is evaluating the adoption method and timing. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) which amends various aspects of existing guidance for leases. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease with terms greater than twelve months, along with additional qualitative and quantitative disclosures. ASU 2016-02 also requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the potential effects of these changes to its consolidated financial statements and is evaluating the timing of adoption. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718) (“ASU 2016-09”) which modifies accounting for excess tax benefits and tax deficiencies, forfeitures, and employer tax withholding requirements. ASU 2016-09 also clarifies certain classifications on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the potential effects of these changes to its consolidated financial statements and is evaluating the timing of adoption. From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.

Balance Sheet Information

Balance Sheet Information	9 Months Ended
	Mar. 31, 2016
Balance Sheet Information
Balance Sheet Information	(3) Balance Sheet Information The following tables provide details of selected consolidated balance sheet items: Activity in the allowance for doubtful accounts was as follows: Balance at June 30, 2015 $ Charged to expense Write-offs ) Balance at March 31, 2016 $ Capitalized internal-use software and accumulated amortization were as follows: June 30, March 31, 2015 2016 Capitalized internal-use software $ $ Accumulated amortization ) ) Capitalized internal-use software, net $ $ Amortization of capitalized internal-use software costs is included in Cost of Revenues-Recurring Revenues and amounted to $643 and $1,504 for the three months ended March 31, 2015 and 2016, respectively and $1,921 and $3,869 for the nine months ended March 31, 2015 and 2016, respectively. Property and equipment consist of the following: June 30, March 31, 2015 2016 Office equipment $ $ Computer equipment Furniture and fixtures Software Leasehold improvements Time clocks rented by clients Accumulated depreciation ) ) Property and equipment, net $ $ Depreciation expense amounted to $1,252 and $1,835 for the three months ended March 31, 2015 and 2016, respectively and $3,754 and $4,864 for the nine months ended March 31, 2015 and 2016, respectively. Intangible assets consist of the following: June 30, 2015 March 31, 2016 Weighted Average Useful Life Client relationships $ $ 9 years Non-solicitation agreements 2-3 years Total Accumulated amortization ) ) Intangible assets, net $ $ Amortization expense for acquired intangible assets was $190 and $381 for the three months ended March 31, 2015 and 2016, respectively and $570 and $1,142 for the nine months ended March 31, 2015 and 2016, respectively. Future amortization expense for acquired intangible assets is as follows, as of March 31, 2016: Remainder of fiscal 2016 $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Thereafter Total $ The components of accrued expenses were as follows: June 30, March 31, 2015 2016 Accrued payroll and personnel costs $ $ Current portion of deferred rent Other Total accrued expenses $ $

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Mar. 31, 2016
Fair Value Measurement
Fair Value Measurement	(4) Fair Value Measurement 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, 2015 and March 31, 2016 based upon the short-term nature of the assets and liabilities.

Benefit Plans

Benefit Plans	9 Months Ended
	Mar. 31, 2016
Benefit Plans
Benefit Plans	(5) Benefit Plans (a) Equity Incentive Plan The Company maintains a 2008 Equity Incentive Plan (the “2008 Plan”) and a 2014 Equity Incentive Plan (the “2014 Plan”) pursuant to which the Company has reserved 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. 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. The Company’s board of directors determined that, effective January 1, 2016, it would increase the number of common shares in reserve for issuance under the 2014 Plan by 2,293 shares. As of March 31, 2016, the Company had 10,810 shares allocated to the plans, of which 4,676 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 following table summarizes changes in the number of shares available for grant under our equity incentive plans during the nine months ended March 31, 2016: Number of Shares Available for grant at July 1, 2015 January 1, 2016 Evergreen provision RSUs granted ) Options granted ) Shares withheld in settlement of taxes and exercise price Forfeitures Shares removed ) Available for grant at March 31, 2016 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-based compensation expense related to stock options, restricted stock units (“RSUs”), and the Employee Stock Purchase Plan (as described below) is included in the following line items in the accompanying unaudited consolidated statements of operations: Three months ended March 31, Nine months ended March 31, 2015 2016 2015 2016 Cost of revenue — recurring $ $ $ $ Cost of revenue — non-recurring Sales and marketing Research and development General and administrative Total stock-based compensation expense $ $ $ $ In addition, the Company capitalized $180 and $281 of stock-based compensation expense in its internal-use software in the three months ended March 31, 2015 and 2016, respectively and $490 and $823 in the nine months ended March 31, 2015 and 2016, respectively. 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. 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. 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 nine months ended March 31: Period ended March 31, 2015 2016 Valuation assumptions: Expected dividend yield % % Expected volatility % % Expected term (years) Risk-free interest rate % % The table below presents stock option activity during the nine months ended March 31, 2016: Outstanding Options Number of shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value Balance at July 1, 2015 $ $ Options granted Options forfeited ) Options exercised ) Balance at March 31, 2016 $ $ Options exercisable at March 31, 2016 $ $ Options vested and expected to vest at March 31, 2016 $ $ There were no options granted during either of the three months ended March 31, 2015 and 2016. The weighted average grant date fair value of options granted during the nine months ended March 31, 2015 and 2016 was $11.15 and $12.92, respectively. The total intrinsic value of options exercised was $5,054 and $908 during the three-month periods ended March 31, 2015 and 2016, respectively and $7,117 and $8,496 during the nine-month periods ended March 31, 2015 and 2016, respectively. At March 31, 2016, there was $3,589 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.58 years. The Company may also grant RSUs under the 2014 Plan with terms determined at the discretion of the Compensation Committee of the Company’s Board of Directors. RSUs generally vest over three or four years following the grant date. Certain RSU awards have time-based vesting conditions while other RSU awards are based on attainment of certain performance benchmarks. The following table represents restricted stock unit activity during the nine months ended March 31, 2016: Units Weighted average grant date fair value RSU balance at July 1, 2015 $ RSUs granted RSUs vested ) RSUs cancelled/forfeited ) RSU balance at March 31, 2016 $ RSUs expected to vest at March 31, 2016 $ At March 31, 2016, there was $17,416 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.19 years. (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. 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 March 31, 2016, a total of 1,003 shares of 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. For fiscal year 2016, the Company’s board of directors determined that it would not increase the number of common shares reserved for issuance under the ESPP. The Company issued 50 shares upon the completion of its six-month offering period ending November 15, 2015. The Company recorded compensation expense attributable to the ESPP of $176 and $283 for the three months ended March 31, 2015 and 2016, respectively and $460 and $791 for the nine months ended March 31, 2015 and 2016, respectively, which is included in the summary of stock-based compensation expense above. The grant date fair value of the ESPP offering periods during the nine months ended March 31 was estimated using the following weighted average assumptions: Period ended March 31, 2015 2016 Valuation assumptions: Expected dividend yield Expected volatility 35.5 — 41.7% 44.1 - 48.4% Expected term (years) 0.3 — 0.5 Risk-free interest rate 0.04 — 0.06% 0.11 - 0.31% (c) 401(k) Plan The Company maintains a 401(k) plan with a safe harbor matching provision that covers all eligible employees. Up to December 31, 2015, the Company matched 50% of the employees’ contributions up to 6% of their gross pay. Effective January 1, 2016, the Company increased its match to 50% of employees’ contributions up to 8% of their gross pay. Contributions were $474 and $821 for the three-month periods ended March 31, 2015 and 2016, respectively and were $1,183 and $1,937 for the nine-month periods ended March 31, 2015 and 2016, respectively.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Mar. 31, 2016
Net Income (Loss) Per Share
Net Income (Loss) Per Share	(6) Net Income (Loss) Per Share Basic net income (loss) per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (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. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options, the release of restricted stock units, and the shares purchasable via the employee stock purchase plan as of the balance sheet date and are 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: Three months ended March 31, Nine months ended March 31, 2015 2016 2015 2016 Numerator: Net income (loss) $ $ $ ) $ Denominator: Weighted-average shares used in computing net income (loss) per share: Basic Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and employee stock purchase plan shares — Diluted Net income (loss) per share: Basic $ $ $ ) $ Diluted $ $ $ ) $ The following table summarizes the outstanding employee stock options, restricted stock units, and shares purchasable via the employee stock purchase plan as of the balance sheet date that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: Three months ended March 31, Nine months ended March 31, 2015 2016 2015 2016 Employee stock options Restricted stock units Employee stock purchase plan shares — — — Total

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2016
Income Taxes
Income Taxes	(7) Income Taxes The Company’s quarterly provision for income taxes is based on an estimated annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. The Company recorded income tax benefit (expense) of $(4) and $43 for the three-month periods ended March 31, 2015 and 2016, respectively and $(66) and $(143) for the nine-month periods ended March 31, 2015 and 2016, respectively. The Company’s effective tax rate for the three and nine months ended March 31, 2015 and 2016 differs from statutory rates primarily due to the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for a valuation allowance on a quarterly basis. It established a valuation allowance on all of its net deferred tax assets except for deferred tax liabilities associated with indefinite-lived intangible assets during fiscal 2014, given that the Company determined that it was more likely than not that the Company would not recognize the benefits of its net operating loss carryforwards prior to their expiration. The Company has continued to carry the valuation allowance during fiscal 2015 and for the nine months ending March 31, 2016. As of March 31, 2016, the Company had no unrecognized tax benefits.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies
Consolidation and Use of Estimates	(a) Consolidation and Use of Estimates These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, 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.
Interim Unaudited Consolidated Financial Information	(b) Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the SEC regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows. The results of operations for the three and nine months ended March 31, 2016 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 14, 2015.
Income Taxes	(c) Income Taxes Differences in the normal relationship between the income tax benefit (expense) and pre-tax income (loss) materially result from the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets.
Stock-Based Compensation	(d) 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 the option vesting term or the term of the ESPP purchase period.
Recently Issued Accounting Standards	(e) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. In addition, in March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”) to amend certain guidance in ASU 2014-09. These amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. Topic 606 allows for either a retrospective or cumulative effect transition method. ASU 2014-09 was originally effective for fiscal years beginning after December 15, 2016. In July 2015, the FASB approved a one-year deferral of ASU 2014-09 and all amendments to it, 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. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740) (“ASU 2015-17”) . ASU 2015-17 requires all deferred income tax assets and liabilities to be classified as non-current in a classified balance sheet. This ASU would first apply prospectively or retrospectively for fiscal years beginning after December 15, 2016. Earlier adoption is permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the potential effects of these changes to its consolidated financial statements and is evaluating the adoption method and timing. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) which amends various aspects of existing guidance for leases. ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease with terms greater than twelve months, along with additional qualitative and quantitative disclosures. ASU 2016-02 also requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the potential effects of these changes to its consolidated financial statements and is evaluating the timing of adoption. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718) (“ASU 2016-09”) which modifies accounting for excess tax benefits and tax deficiencies, forfeitures, and employer tax withholding requirements. ASU 2016-09 also clarifies certain classifications on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the potential effects of these changes to its consolidated financial statements and is evaluating the timing of adoption. From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	9 Months Ended
	Mar. 31, 2016
Balance Sheet Information
Schedule of activity in allowance for doubtful accounts	Balance at June 30, 2015 $ Charged to expense Write-offs ) Balance at March 31, 2016 $
Schedule of capitalized internal-use software and accumulated amortization	June 30, March 31, 2015 2016 Capitalized internal-use software $ $ Accumulated amortization ) ) Capitalized internal-use software, net $ $
Schedule of property and equipment	June 30, March 31, 2015 2016 Office equipment $ $ Computer equipment Furniture and fixtures Software Leasehold improvements Time clocks rented by clients Accumulated depreciation ) ) Property and equipment, net $ $
Schedule of intangible assets	June 30, 2015 March 31, 2016 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 assets	Future amortization expense for acquired intangible assets is as follows, as of March 31, 2016: Remainder of fiscal 2016 $ Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Thereafter Total $
Schedule of components of accrued expenses	June 30, March 31, 2015 2016 Accrued payroll and personnel costs $ $ Current portion of deferred rent Other Total accrued expenses $ $

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
	Mar. 31, 2016
Benefit Plans
Summary of shares available for grant under our equity incentive plans	Number of Shares Available for grant at July 1, 2015 January 1, 2016 Evergreen provision RSUs granted ) Options granted ) Shares withheld in settlement of taxes and exercise price Forfeitures Shares removed ) Available for grant at March 31, 2016
Schedule of stock-based compensation expense related to stock options, Restricted Stock Units and the Employee Stock Purchase Plan	Three months ended March 31, Nine months ended March 31, 2015 2016 2015 2016 Cost of revenue — recurring $ $ $ $ Cost of revenue — non-recurring Sales and marketing Research and development General and administrative Total stock-based compensation expense $ $ $ $
Summary of the assumptions used for estimating the fair value of stock options granted	Period ended March 31, 2015 2016 Valuation assumptions: Expected dividend yield % % Expected volatility % % Expected term (years) Risk-free interest rate % %
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, 2015 $ $ Options granted Options forfeited ) Options exercised ) Balance at March 31, 2016 $ $ Options exercisable at March 31, 2016 $ $ Options vested and expected to vest at March 31, 2016 $ $
Schedule of Restricted stock unit activity	Units Weighted average grant date fair value RSU balance at July 1, 2015 $ RSUs granted RSUs vested ) RSUs cancelled/forfeited ) RSU balance at March 31, 2016 $ RSUs expected to vest at March 31, 2016 $
Summary of weighted average assumptions used for estimating grant date fair value of ESPP	Period ended March 31, 2015 2016 Valuation assumptions: Expected dividend yield Expected volatility 35.5 — 41.7% 44.1 - 48.4% Expected term (years) 0.3 — 0.5 Risk-free interest rate 0.04 — 0.06% 0.11 - 0.31%

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Mar. 31, 2016
Net Income (Loss) Per Share
Schedule of calculation of basic and diluted net income (loss) per share	Three months ended March 31, Nine months ended March 31, 2015 2016 2015 2016 Numerator: Net income (loss) $ $ $ ) $ Denominator: Weighted-average shares used in computing net income (loss) per share: Basic Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and employee stock purchase plan shares — Diluted Net income (loss) per share: Basic $ $ $ ) $ Diluted $ $ $ ) $
Summary of outstanding 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	Three months ended March 31, Nine months ended March 31, 2015 2016 2015 2016 Employee stock options Restricted stock units Employee stock purchase plan shares — — — Total

Organization and Description 18

Organization and Description of Business (Detail) - Secondary Offering - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended
	Oct. 31, 2015	Sep. 30, 2015
Secondary offering
Public offering price (in dollar per share)		$ 29.75
Secondary offering over-allotment options exercised by underwriters (in shares)	561
Proceeds received from public offering	$ 0
Existing shareholders
Secondary offering
Number of shares of common stock sold		3,740
Proceeds received from public offering		$ 0

Balance Sheet Information - Pro

Balance Sheet Information - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Activity in allowance for doubtful accounts
Balance at beginning of period			$ 149
Charged to expense			90	$ 89
Write-offs			(46)
Balance at end of period	$ 193		193
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	31,426		31,426		$ 24,733
Accumulated amortization	(21,245)		(21,245)		(17,376)
Capitalized internal-use software, net	10,181		10,181		7,357
Amortization of capitalized internal-use software costs	1,504	$ 643	3,869	1,921
Property and equipment
Property and equipment, gross	42,406		42,406		31,155
Accumulated depreciation	(17,472)		(17,472)		(15,094)
Property and equipment, net	24,934		24,934		16,061
Depreciation expense	1,835	$ 1,252	4,864	$ 3,754
Office equipment
Property and equipment
Property and equipment, gross	2,475		2,475		1,875
Computer equipment
Property and equipment
Property and equipment, gross	16,486		16,486		11,783
Furniture and fixtures
Property and equipment
Property and equipment, gross	3,954		3,954		2,423
Software
Property and equipment
Property and equipment, gross	5,112		5,112		5,218
Leasehold improvements
Property and equipment
Property and equipment, gross	10,465		10,465		6,639
Time clocks rented by clients
Property and equipment
Property and equipment, gross	$ 3,914		$ 3,914		$ 3,217

Balance Sheet Information - Int

Balance Sheet Information - Intangible Assets and Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Intangible Assets
Intangible assets	$ 12,940		$ 12,940		$ 12,940
Accumulated amortization	(2,141)		(2,141)		(999)
Intangible assets, net	10,799		10,799		11,941
Amortization expense for acquired intangible assets	381	$ 190	1,142	$ 570
Future amortization expense for acquired intangible assets
Remainder of fiscal 2016	381		381
Fiscal 2,017	1,512		1,512
Fiscal 2,018	1,427		1,427
Fiscal 2,019	1,398		1,398
Fiscal 2,020	1,398		1,398
Thereafter	4,683		4,683
Intangible assets, net	10,799		10,799		11,941
Components of accrued expenses
Accrued payroll and personnel costs	21,020		21,020		14,275
Current portion of deferred rent	367		367		727
Other	3,577		3,577		1,428
Total accrued expenses	24,964		24,964		16,430
Client relationships
Intangible Assets
Intangible assets	12,580		$ 12,580		12,580
Useful life			9 years
Non-solicitation agreements
Intangible Assets
Intangible assets	$ 360		$ 360		$ 360
Minimum | Non-solicitation agreements
Intangible Assets
Useful life			2 years
Maximum | Non-solicitation agreements
Intangible Assets
Useful life			3 years

Benefit Plans - General Informa

Benefit Plans - General Information (Details) - shares shares in Thousands	9 Months Ended
	Mar. 31, 2016	Jan. 01, 2016
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
Potential additional shares available for grant (as a percent)	4.50%
Additional shares available for grant through the Evergreen provision		2,293
Equity Incentive Plans
Equity Incentive Plans
Additional shares available for grant through the Evergreen provision	2,293
Number of shares of common stock reserved for issuance	10,810
Outstanding options or awards	4,676

Benefit Plans - Incentive Plans

Benefit Plans - Incentive Plans Activity (Details) - Equity Incentive Plans - shares shares in Thousands	9 Months Ended
	Mar. 31, 2016
Shares Available for Grant
Balance at the beginning of the period (in shares)	4,490
January 1, 2016 Evergreen Provision (in shares)	2,293
RSUs granted (in shares)	(732)
Options granted (in shares)	(149)
Shares withheld in settlement of taxes and exercise price (in shares)	188
Forfeitures (in shares)	128
Shares removed (in shares)	(84)
Balance at the end of the period (in shares)	6,134

Benefit Plans - Compensation Ex

Benefit Plans - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Benefit Plans
Total stock-based compensation expense	$ 4,720	$ 3,535	$ 13,212	$ 10,672
Stock-based compensation expense capitalized	281	180	823	490
Cost of revenue - recurring
Benefit Plans
Total stock-based compensation expense	451	431	1,256	1,245
Cost of revenue - non-recurring
Benefit Plans
Total stock-based compensation expense	301	354	875	1,031
Sales and marketing
Benefit Plans
Total stock-based compensation expense	1,195	861	3,313	2,639
Research and development
Benefit Plans
Total stock-based compensation expense	756	717	2,140	2,101
General and administrative
Benefit Plans
Total stock-based compensation expense	$ 2,017	$ 1,172	$ 5,628	$ 3,656

Benefit Plans - Valuation Assum

Benefit Plans - Valuation Assumptions and RSU/Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Stock options
Valuation assumptions:
Expected dividend yield (as a percent)			0.00%	0.00%
Expected volatility (as a percent)			34.00%	43.90%
Expected term (years)			6 years 3 months	6 years 3 months
Risk-free interest rate (as a percent)			1.83%	1.91%
Number of shares
Balance at the beginning of the period (in shares)			3,956
Options granted (in shares)	0	0	149
Options forfeited (in shares)			(96)
Options exercised (in shares)			(311)
Balance at the end of the period (in shares)	3,698		3,698		3,956
Options exercisable at the end of the period (in shares)	2,342		2,342
Options vested and expected to vest at the end of the period (in shares)	3,627		3,627
Weighted average exercise price
Balance at the beginning of the period (in dollars per share)			$ 10.96
Options granted (in dollars per share)			35.28
Options forfeited (in dollars per share)			16.39
Options exercised (in dollars per share)			8.93
Balance at the end of the period (in dollars per share)	$ 11.97		11.97		$ 10.96
Options exercisable at the end of the period (in dollars per share)	9.10		9.10
Options vested and expected to vest at the end of the period (in dollars per share)	$ 11.80		$ 11.80
Weighted average remaining contractual term
Balance at the beginning of the period			7 years		7 years 7 months 17 days
Balance at the end of the period			7 years		7 years 7 months 17 days
Options exercisable at the end of the period			6 years 6 months 4 days
Options vested and expected to vest at the end of the period			6 years 11 months 19 days
Aggregate intrinsic value
Balance at the beginning of the period			$ 98,434
Balance at the end of the period	$ 77,154		77,154		$ 98,434
Options exercisable at the end of the period	55,365		55,365
Options vested and expected to vest at the end of the period	76,297		$ 76,297
Weighted average grant date fair value of options granted (in dollars per share)			$ 12.92	$ 11.15
Total intrinsic value of options exercised	908	$ 5,054	$ 8,496	$ 7,117
Unrecognized Compensation Costs Not yet Recognized
Total unrecognized compensation cost, net of estimated forfeitures	3,589		$ 3,589
Weighted average period to recognize unrecognized compensation cost			1 year 6 months 29 days
Stock options | Minimum
Vesting Period
Vesting period			3 years
Stock options | Maximum
Vesting Period
Vesting period			4 years
Restricted Stock Units
Unrecognized Compensation Costs Not yet Recognized
Total unrecognized compensation cost, net of estimated forfeitures	$ 17,416		$ 17,416
Weighted average period to recognize unrecognized compensation cost			2 years 2 months 9 days
Units
RSU Balance at the beginning of the period (in shares)			386
RSUs granted (in shares)			732
RSUs vested (in shares)			(108)
RSUs cancelled/forfeited (in shares)			(32)
RSU Balance at the end of the period (in shares)	978		978		386
RSUs expected to vest at the end of the period (in shares)	862		862
Weighted average grant date fair value
RSU Balance at the beginning of the period (in dollars per share)			$ 24.98
RSUs granted (in dollars per share)			35.23
RSUs vested (in dollars per share)			25.51
RSUs cancelled/forfeited (in dollars per share)			30.46
RSU Balance at the end of the period (in dollars per share)	$ 32.45		32.45		$ 24.98
RSUs expected to vest at the end of the period (in dollars per share)	$ 32.28		$ 32.28
Restricted Stock Units | Minimum
Vesting Period
Vesting period			3 years
Restricted Stock Units | Maximum
Vesting Period
Vesting period			4 years

Benefit Plans - ESPP Informatio

Benefit Plans - ESPP Information (Details) - USD ($) $ in Thousands	Feb. 06, 2014	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Equity Incentive Plans
Compensation expense (in dollars)		$ 4,720	$ 3,535	$ 13,212	$ 10,672
Employee stock purchase plan shares
Equity Incentive Plans
Percentage of employee compensation, maximum	10.00%
Percentage of fair market value as a purchase price	85.00%
Value of purchase per employee, maximum (in dollars)	$ 25
Number of shares per employee, maximum	2,000
Number of periods during which shares can be purchased	1 year
Number of shares of common stock reserved for issuance		1,003,000		1,003,000
Actual increase in number of shares reserved for issuance				0
Potential number of additional shares reserved for issuance each year				400,000
Potential percentage of additional number of shares reserved for issuance each year				0.75%
Number of shares issued				50,000
Compensation expense (in dollars)		$ 283	$ 176	$ 791	$ 460
Valuation assumptions:
Expected dividend yield				0.00%	0.00%
Expected term (years)				6 months
Employee stock purchase plan shares | Minimum
Valuation assumptions:
Expected volatility				44.10%	35.50%
Expected term (years)					3 months 18 days
Risk-free interest rate				0.11%	0.04%
Employee stock purchase plan shares | Maximum
Equity Incentive Plans
Offering period	27 months
Valuation assumptions:
Expected volatility				48.40%	41.70%
Expected term (years)					6 months
Risk-free interest rate				0.31%	0.06%

Benefit Plans - Contributions (

Benefit Plans - Contributions (Details) - USD ($) $ in Thousands	Jan. 01, 2016	Dec. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Benefit Plans
401(k) Plan Matching contributions by the Company as percentage of employees' contributions	50.00%	50.00%
401(k) Plan Maximum contributions as percentage of employees' gross pay	8.00%	6.00%
401(k) Plan contributions			$ 821	$ 474	$ 1,937	$ 1,183

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Numerator:
Net income (loss)	$ 6,161	$ 1,752	$ 1,561	$ (9,543)
Weighted-average shares used in computing net income (loss) per share:
Basic (in shares)	50,962	50,533	50,865	49,954
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units and employee stock purchase plan shares	2,462	1,670	2,566
Diluted (in shares)	53,424	52,203	53,431	49,954
Net income (loss) per share:
Basic (in dollars per share)	$ 0.12	$ 0.03	$ 0.03	$ (0.19)
Diluted (in dollars per share)	$ 0.12	$ 0.03	$ 0.03	$ (0.19)
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)	158	334	802	4,517
Employee stock options
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)	147	328	147	4,111
Restricted Stock Units
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)	11	6	655	370
Employee stock purchase plan shares
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)				36

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income Taxes
Income tax benefit (expense)	$ 43	$ (4)	$ (143)	$ (66)
Unrecognized tax benefits	$ 0		$ 0