Paylocity Holding (PCTY) 10-K 12 Aug 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2016	Aug. 05, 2016	Dec. 31, 2015
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, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 988,936,928
Entity Common Stock, Shares Outstanding		51,157,430
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 86,496	$ 81,258
Accounts receivable, net	1,681	1,115
Prepaid expenses and other	7,409	4,416
Deferred income tax assets, net		775
Total current assets before funds held for clients	95,586	87,564
Funds held for clients	1,239,622	591,219
Total current assets	1,335,208	678,783
Long-term prepaid expenses	845	403
Capitalized internal-use software, net	11,427	7,357
Property and equipment, net	26,787	16,061
Intangible assets, net	10,419	11,941
Goodwill	6,003	6,003
Total assets	1,390,689	720,548
Current liabilities:
Accounts payable	1,621	1,327
Consideration related to acquisitions		511
Accrued expenses	24,979	16,430
Total current liabilities before client fund obligations	26,600	18,268
Client fund obligations	1,239,622	591,219
Total current liabilities	1,266,222	609,487
Deferred rent	4,646	2,607
Deferred income tax liabilities, net	249	874
Total liabilities	1,271,117	612,968
Stockholders' equity
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2015 and 2016
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2015 and 2016, 50,703 and 51,132 shares issued and outstanding at June 30, 2015 and 2016, respectively	51	51
Additional paid-in capital	171,515	155,672
Accumulated deficit	(51,994)	(48,143)
Total stockholders' equity	119,572	107,580
Total liabilities and stockholders' equity	$ 1,390,689	$ 720,548

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2016	Jun. 30, 2015
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	51,132	50,703
Common Stock, shares outstanding	51,132	50,703

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Recurring fees	$ 217,416	$ 142,168	$ 100,362
Interest income on funds held for clients	2,688	1,901	1,582
Total recurring revenues	220,104	144,069	101,944
Implementation services and other	10,597	8,629	6,743
Total revenues	230,701	152,698	108,687
Cost of revenues:
Recurring revenues	66,131	46,366	37,319
Implementation services and other	31,954	24,530	17,775
Total cost of revenues	98,085	70,896	55,094
Gross profit	132,616	81,802	53,593
Operating expenses:
Sales and marketing	61,832	43,035	28,276
Research and development	26,736	19,864	10,355
General and administrative	47,598	32,824	21,980
Total operating expenses	136,166	95,723	60,611
Operating loss	(3,550)	(13,921)	(7,018)
Other income (expense)	(124)	54	163
Loss before income taxes	(3,674)	(13,867)	(6,855)
Income tax expense	177	105	255
Net loss	(3,851)	(13,972)	(7,110)
Net loss attributable to common stockholders	$ (3,851)	$ (13,972)	$ (9,392)
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.08)	$ (0.28)	$ (0.26)
Diluted (in dollars per share)	$ (0.08)	$ (0.28)	$ (0.26)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)	50,913	50,127	36,707
Diluted (in shares)	50,913	50,127	36,707

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, 2013	$ 32	$ 437	$ (27,061)	$ (26,592)
Balance (in shares) at Jun. 30, 2013	31,988
Increase (Decrease) in Stockholders' Equity (Deficit)
Initial public offering, net of issuance costs	$ 6	81,921		81,927
Initial public offering, net of issuance costs (in shares)	5,367
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 shares (in shares)	276
Stock-based compensation expense		5,284		5,284
Net 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
Increase (Decrease) in Stockholders' Equity (Deficit)
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 (in shares)	(266)
Net 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
Increase (Decrease) in Stockholders' Equity (Deficit)
Stock-based compensation expense		18,641		$ 18,641
Stock options exercised		6,197		6,197
Stock options exercised (in shares)	536
Issuance of common stock upon vesting of restricted stock units (in shares)	120
Issuance of common stock under employee stock purchase plan		2,991		2,991
Issuance of common stock under employee stock purchase plan (in shares)	102
Net settlement for taxes and/or exercise price related to equity awards		(11,986)		(11,986)
Net settlement for taxes and/or exercise price related to equity awards (in shares)	(329)
Net loss			(3,851)	(3,851)
Balance at Jun. 30, 2016	$ 51	$ 171,515	$ (51,994)	$ 119,572
Balance (in shares) at Jun. 30, 2016	51,132			51,132

Consolidated Statements of Cha6

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Temporary Equity) - 12 months ended Jun. 30, 2014 - USD ($) shares in Thousands, $ in Thousands	Series A redeemable convertible preferred stock	Series B redeemable convertible preferred stock	Total
Balance at Jun. 30, 2013	$ 9,339	$ 27,234
Balance (in shares) at Jun. 30, 2013	9,500	8,400
Statement
Conversion of redeemable convertible preferred stock	$ (9,339)	$ (27,234)	$ 36,573
Conversion of redeemable convertible preferred stock (in shares)	(9,500)	(8,400)
Balance at Jun. 30, 2014	$ 0	$ 0
Balance (in shares) at Jun. 30, 2014	0	0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (3,851)	$ (13,972)	$ (7,110)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation	17,563	13,169	4,929
Depreciation and amortization	13,873	8,609	6,336
Deferred income tax expense	150	91	341
Provision for doubtful accounts	159	90	62
Loss on disposal of equipment	712	256	98
Changes in operating assets and liabilities:
Accounts receivable	(725)	(449)	(78)
Prepaid expenses	(3,270)	(1,754)	(1,132)
Trade accounts payable	72	(186)	465
Accrued expenses	8,310	5,251	3,288
Net cash provided by operating activities	32,993	11,105	7,199
Cash flows from investing activities:
Capitalized internal-use software costs	(8,391)	(4,215)	(4,349)
Purchases of property and equipment	(16,083)	(9,020)	(6,667)
Payments for acquisitions	(483)	(11,979)	(6,450)
Net change in funds held for clients	(648,403)	(173,958)	(61,356)
Net cash used in investing activities	(673,360)	(199,172)	(78,822)
Cash flows from financing activities:
Net change in client funds obligation	648,403	173,958	61,356
Principal payments on long-term debt			(1,563)
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	137	247
Proceeds from employee stock purchase plan	2,991	1,773
Taxes paid related to net share settlement of equity awards	(5,926)	(3,793)
Net cash provided by financing activities	645,605	190,477	142,877
Net Change in Cash and Cash Equivalents	5,238	2,410	71,254
Cash and Cash Equivalents-Beginning of Year	81,258	78,848	7,594
Cash and Cash Equivalents-End of Year	86,496	81,258	78,848
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Build-out allowances received from landlords	1,888		1,162
Purchase of property and equipment and internal-use software, accrued but not paid	607	210	896
Unpaid initial offering costs			75
Supplemental disclosure of cash flow information
Cash paid for income taxes, net of refunds	$ 3	$ 162	106
Cash paid for interest			$ 70

Organization and Description of

Organization and Description of Business	12 Months Ended
	Jun. 30, 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	12 Months Ended
	Jun. 30, 2016
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, 2014 2015 2016 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 primarily of prepaid licensing fees, prepaid insurance premiums, deposits with vendors and time clocks available for sale or lease. (f) Capitalized 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) 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 in the fourth quarter. 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 or fiscal 2016 as a result of the Company’s impairment tests. 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 included in “Accrued expenses” and as “Deferred rent” in the accompanying consolidated 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. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740) (“ASU 2015-17”), which requires all deferred income tax assets and liabilities to be classified as non-current in a classified balance sheet. As allowed by ASU 2015-17, the Company adopted the new requirements as of June 30, 2016, on a prospective basis. The adoption of this standard resulted in a reclassification of deferred tax assets and liabilities to the non-current deferred tax liability in the Company’s consolidated balance sheet as of June 30, 2016. ASU 2015-17 did not have a material impact on the Company’s consolidated balance sheet and had no impact on the Company’s consolidated results of operations or cash flows. No prior periods were retrospectively adjusted. 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 and other services. (n) Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $24, $187 and $219 for the years ended June 30, 2014, 2015 and 2016, 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 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, April 2016 and May 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”), ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), respectively, to amend certain guidance in ASU 2014-09. 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 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. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted as of fiscal years beginning after December 15, 2018. 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.

Funds Held for Clients and Clie

Funds Held for Clients and Client Fund Obligations	12 Months Ended
	Jun. 30, 2016
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 filing 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, 2016
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, funds held for clients, accounts payable and client fund obligations to approximate the fair value of the respective assets and liabilities at June 30, 2015 and 2016 based upon the short-term nature of the assets and liabilities.

Business Combinations

Business Combinations	12 Months Ended
	Jun. 30, 2016
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 $2,495 to BFKMS Inc. during fiscal year 2014, and $2,081 and $2,361 to Synergy Payroll, LLC during fiscal years 2014 and 2015, respectively. The reseller agreements provided that the Company was required to acquire the assets of the resellers upon termination of the agreements. The following acquisitions were accounted for as a business combination in accordance with ASC 805, Business Combinations . The Company recorded the acquisitions 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 was $9,508, of which $8,994 was paid at closing. The Company paid $483 during fiscal year 2016, which was net of adjustments in accordance with the asset purchase agreement. The following table summarizes the 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, 2016
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, 2015 2016 Capitalized internal-use software $ $ Accumulated amortization Capitalized internal-use software, net $ $ Amortization of capitalized internal-use software amounted to $2,195, $2,606 and $5,446 for the years ended June 30, 2014, 2015 and 2016, respectively and is included in Cost of Revenues—Recurring Revenues.

Property and Equipment

Property and Equipment	12 Months Ended
	Jun. 30, 2016
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, 2015 2016 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 $4,061, $5,084 and $6,905 for the years ended June 30, 2014, 2015 and 2016, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Jun. 30, 2016
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 in the fourth quarter. 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 Company’s amortizable intangible assets, before amortization expense, have estimated useful lives as follows: As of June 30, 2015 As of June 30, 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 $80, $919 and $1,522 for the years ended June 30, 2014, 2015 and 2016, respectively. Future amortization expense for acquired intangible is as follows, as of June 30, 2016: Year ending June 30: 2017 $ 2018 2019 2020 2021 Thereafter Total $

Accrued Expenses

Accrued Expenses	12 Months Ended
	Jun. 30, 2016
Accrued Expenses
Accrued Expenses	(9) Accrued Expenses The components of accrued expenses are as follows: Year ended June 30, 2015 2016 Accrued payroll and personnel costs $ $ Current portion of deferred rent Other Total Accrued Expenses $ $

Leases

Leases	12 Months Ended
	Jun. 30, 2016
Leases
Leases	(10) Leases The Company primarily leases office space in Illinois, California, Florida, Idaho, New Jersey, New Hampshire and New York under non-cancellable operating leases expiring on various dates from August 2016 through March 2026. 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. The Company also leases various types of office and production related equipment under non-cancellable operating leases expiring on various dates from December 2016 through July 2024. In June 2016, the Company entered into a lease for approximately 310 rentable square feet of office space located in Schaumburg, Illinois. The Company intends to use the leased premises as its headquarters upon the expiration of the lease of its current headquarters. The lease provides for phased delivery and commencement dates, with commencement expected to occur on the following approximate dates: Phase I (June 1, 2017), Phase II (Nov 1, 2017), Phase III (July 1, 2018), and Phase IV (July 1, 2019). The actual commencement dates are subject to timely delivery of the premises by the landlord. The lease provides for a term beginning on the Phase I commencement date and ending 180 full calendar months after the landlord delivers the Phase II premises to the Company, which is expected to be on or about November 1, 2017, with two subsequent five year renewal options. 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 and future rent increases. Rental expense for operating leases, including amortization of leasehold improvements, was $3,035, $4,238 and $5,596 for the years ended June 30, 2014, 2015 and 2016, respectively. Future minimum lease payments under non-cancellable operating leases (with initial or remaining lease terms in excess of one year), including payments for the lease of the new headquarters, as of June 30, 2016 are: Year ending June 30: 2017 $ 2018 2019 2020 2021 Later years, through 2033 Total minimum lease payments $

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2016
Income Taxes
Income Taxes	(11) Income Taxes (a) Income Taxes Income tax expense for the years ended June 30, 2014, 2015 and 2016 consists of the following: Year ended June 30, 2014 2015 2016 Current taxes U.S. federal $ $— $— State and local Deferred taxes: U.S. federal State and local Total income tax expense $ $ $ (b) Tax Rate Reconciliation Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax loss from continuing operations as a result of the following: Year ended June 30, 2014 2015 2016 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, 2015 and 2016 are presented below. Year ended June 30, 2015 2016 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 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 loss for the years ended June 30, 2014, 2015 and 2016 was approximately $(3,817) and $(12,424), and $(8,330) 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, 2016, 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. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740) (“ASU 2015-17”), which requires all deferred income tax assets and liabilities to be classified as non-current in a classified balance sheet. As allowed by ASU 2015-17, the Company adopted the new requirements as of June 30, 2016, on a prospective basis. The adoption of this standard resulted in a reclassification of deferred tax assets and liabilities to the non-current deferred tax liability in the Company’s consolidated balance sheet as of June 30, 2016. ASU 2015-17 did not have a material impact on the Company’s consolidated balance sheet and had no impact on the Company’s consolidated results of operations or cash flows. No prior periods were retrospectively adjusted. At June 30, 2016, the Company has gross excess tax benefits from stock option exercises of approximately $14,969 for federal and state income tax purposes. At June 30, 2016, the Company has net operating loss carryforwards for federal income tax purposes of approximately $12,453 and state income tax purposes of approximately $4,703, both excluding the excess tax benefits from stock option exercises noted above. The net tax impact of $5,089 and $535 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 2036. The state NOL carryforwards expire from 2019 to 2036. The Company also has gross federal and state research and development tax credit and other state credit carryforwards of approximately $3,236 which expire between 2017 and 2036. 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, 2014, 2015 and 2016, 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, including its domestic subsidiary, files a consolidated federal income tax return. For years before 2012 (fiscal year ended June 30, 2013), the Company is no longer subject to U.S. federal examination; however, the Internal Revenue Service (IRS) has the ability to review years prior to 2012 to the extent the Company utilized tax attributes carried forward from those prior years. The statute of limitations on state filings is generally three to four years.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Jun. 30, 2016
Stockholders' Equity
Stockholders' Equity	(12) Stockholders’ Equity 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, 2016
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, 2016
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 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. 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 June 30, 2016, the Company had 10,711 shares allocated to the plans, of which 4,467 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 during the year ended June 30, 2016 in the number 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 increase RSU’s granted Options granted Shares withheld in settlement of taxes and/or exercise price Forfeitures Shares removed Available for grant at June 30, 2016 Shares removed represents forfeitures of shares and shares withheld in settlement of taxes and/or 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 and the vesting of restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and the Employee Stock Purchase Plan (as described below) is included in the following line items in the accompanying audited consolidated statements of operations: Year ended June 30, 2014 2015 2016 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, $655 and $1,078 of stock-based compensation costs in its internal-use software in the years ended June 30, 2014, 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 years ended June 30: Year ended June 30, 2014 2015 2016 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% 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, 2015 $ $ Options granted Options forfeited Options exercised Balance at June 30, 2016 $ $ Options exercisable at June 30, 2016 $ $ Options vested and expected to vest at June 30, 2016 $ $ The weighted average grant date fair value of options granted during the years ended June 30, 2014, 2015 and 2016 was $6.39, $11.14 and $12.92, respectively. The total intrinsic value of options exercised during the years ended June 30, 2015 and 2016 was $8,802 and $13,362, respectively. There were no options exercised during the year ended June 30, 2014. At June 30, 2016, there was $2,802 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 1.48 years. The following table summarizes information about stock options outstanding and stock options exercisable at June 30, 2016: 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 $35.28 Total $ $ 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 year ended June 30, 2016: Units Weighted average grant date fair value RSU balance at July 1, 2015 $ RSUs granted RSUs vested RSUs cancelled/forfeited RSU balance at June 30, 2016 $ RSUs expected to vest at June 30, 2016 $ At June 30, 2016, there was $15,818 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 2.14 years. The total excess income tax benefits for stock-based compensation arrangements was $703, $5,562 and $8,228 for the years ended June 30, 2014, 2015 and 2016, 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. 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, 2016, a total of 951 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 and 52 shares upon the completion of its six-month offering periods ending November 15, 2015 and May 16, 2016, respectively. The Company recorded compensation expense attributable to the ESPP of $656 and $1,069 for the years ended June 30, 2015 and 2016, respectively, which is included in the summary of stock-based compensation expense above. No such compensation expense was recorded during the year ended June 30, 2014. The grant date fair value of the ESPP offering periods was estimated using the following weighted average assumptions: Year ended June 30, 2014 2015 2016 Valuation assumptions: Expected dividend yield N/A Expected volatility N/A 35.5 – 48.4% 44.1 – 53.4% Expected term (years) N/A 0.3 – 0.5 Risk-free interest rate N/A 0.04 – 0.11% 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 $1,122, $1,656 and $2,717 for the years ended June 30, 2014, 2015 and 2016, respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2016
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, 2016
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 loss per share: Year ended June 30, 2014 2015 2016 Basic net loss per share: Numerator: Net loss $ $ $ Less: Preferred dividend rights attributable to participating securities — — Net loss attributable to common stockholders $ $ $ Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders: Basic (in thousands) Diluted (in thousands) Net loss per share attributable to common stockholders: Basic $ $ $ Diluted $ $ $ The following table summarizes the outstanding 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 2014 2015 2016 Employee stock options Restricted stock units Employee stock purchase plan shares — Total

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jun. 30, 2016
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 $231 for the years ended June 30, 2014. 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, 2015 and 2016, 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.

Selected Quarterly Financial Da

Selected Quarterly Financial Data (unaudited)	12 Months Ended
	Jun. 30, 2016
Selected Quarterly Financial Data (unaudited)
Selected Quarterly Financial Data (unaudited)	(18) 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, 2015 and 2016. 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 Quarter Ended September 30, 2015 December 31, 2015 March 31, 2016 June 30, 2016 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 Accoun26

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2016
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, 2014 2015 2016 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 primarily of prepaid licensing fees, prepaid insurance premiums, deposits with vendors and time clocks available for sale or lease.
Capitalized Internal-Use Software	(f) Capitalized 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.
Intangible Assets, Net of Accumulated Amortization	(h) 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 in the fourth quarter. 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 or fiscal 2016 as a result of the Company’s impairment tests. 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 included in “Accrued expenses” and as “Deferred rent” in the accompanying consolidated 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. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740) (“ASU 2015-17”), which requires all deferred income tax assets and liabilities to be classified as non-current in a classified balance sheet. As allowed by ASU 2015-17, the Company adopted the new requirements as of June 30, 2016, on a prospective basis. The adoption of this standard resulted in a reclassification of deferred tax assets and liabilities to the non-current deferred tax liability in the Company’s consolidated balance sheet as of June 30, 2016. ASU 2015-17 did not have a material impact on the Company’s consolidated balance sheet and had no impact on the Company’s consolidated results of operations or cash flows. No prior periods were retrospectively adjusted. 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 and other services.
Advertising	(n) Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $24, $187 and $219 for the years ended June 30, 2014, 2015 and 2016, 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 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, April 2016 and May 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”), ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”), respectively, to amend certain guidance in ASU 2014-09. 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 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. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted as of fiscal years beginning after December 15, 2018. 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.

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies
Schedule of activity in allowance for doubtful accounts	For the Years Ended June 30, 2014 2015 2016 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, 2016
BFKMS Inc
Summary of 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 fair value of the assets acquired at the date of acquisition	At April 16, 2015 Intangible assets $ Goodwill Total purchase price $

Capitalized Internal-Use Soft29

Capitalized Internal-Use Software (Tables)	12 Months Ended
	Jun. 30, 2016
Capitalized Internal-Use Software
Schedule of capitalized internal-use software and accumulated amortization	Year ended June 30, 2015 2016 Capitalized internal-use software $ $ Accumulated amortization Capitalized internal-use software, net $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Jun. 30, 2016
Property and Equipment
Schedule of property and equipment	Year ended June 30, 2015 2016 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, 2016
Goodwill and Intangible Assets
Schedule of amortizable intangible assets before amortization expense	As of June 30, 2015 As of June 30, 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	Year ending June 30: 2017 $ 2018 2019 2020 2021 Thereafter Total $

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Jun. 30, 2016
Accrued Expenses
Schedule of components of accrued expenses	Year ended June 30, 2015 2016 Accrued payroll and personnel costs $ $ Current portion of deferred rent Other Total Accrued Expenses $ $

Leases (Tables)

Leases (Tables)	12 Months Ended
	Jun. 30, 2016
Leases
Schedule of future minimum lease payments under non-cancellable operating leases	Year ending June 30: 2017 $ 2018 2019 2020 2021 Later years, through 2033 Total minimum lease payments $

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2016
Income Taxes
Schedule of income tax expense	Year ended June 30, 2014 2015 2016 Current taxes U.S. federal $ $— $— State and local Deferred taxes: U.S. federal State and local Total income tax expense $ $ $
Schedule of tax rate reconciliation by applying the U.S. federal income tax rate to pretax loss from continuing operations	Year ended June 30, 2014 2015 2016 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, 2015 2016 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 liability $

Benefit Plans (Tables)

Benefit Plans (Tables)	12 Months Ended
	Jun. 30, 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 increase RSU’s granted Options granted Shares withheld in settlement of taxes and/or exercise price Forfeitures Shares removed Available for grant at June 30, 2016
Schedule of stock-based compensation expense related to stock options, Restricted Stock Units, Restricted Stock Awards and the Employee Stock Purchase Plan	Year ended June 30, 2014 2015 2016 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, 2014 2015 2016 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%
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 June 30, 2016 $ $ Options exercisable at June 30, 2016 $ $ Options vested and expected to vest at June 30, 2016 $ $
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, 2016: 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 $35.28 Total $ $
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 June 30, 2016 $ RSUs expected to vest at June 30, 2016 $
Summary of weighted average assumptions used for estimating grant date fair value of ESPP	Year ended June 30, 2014 2015 2016 Valuation assumptions: Expected dividend yield N/A Expected volatility N/A 35.5 – 48.4% 44.1 – 53.4% Expected term (years) N/A 0.3 – 0.5 Risk-free interest rate N/A 0.04 – 0.11% 0.11 – 0.31%

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Jun. 30, 2016
Earnings Per Share
Schedule of calculation of basic and diluted net loss per share	Year ended June 30, 2014 2015 2016 Basic net loss per share: Numerator: Net loss $ $ $ Less: Preferred dividend rights attributable to participating securities — — Net loss attributable to common stockholders $ $ $ Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders: Basic (in thousands) Diluted (in thousands) Net loss per share attributable to common stockholders: 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	Year ended June 30 2014 2015 2016 Employee stock options Restricted stock units Employee stock purchase plan shares — Total

Selected Quarterly Financial 37

Selected Quarterly Financial Data (unaudited) (Tables)	12 Months Ended
	Jun. 30, 2016
Selected Quarterly Financial Data (unaudited)
Schedule of selected unaudited quarterly statements of operations data	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) Sper share attributable to common stockholders: Basic Diluted Quarter Ended September 30, 2015 December 31, 2015 March 31, 2016 June 30, 2016 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 38

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

Summary of Significant Accoun39

Summary of Significant Accounting Policies - Concentration of Risk, Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
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	$ 149	$ 126	$ 118
Charged to expense	159	90	62
Write-offs	(115)	(67)	(54)
Balance at end of period	$ 193	$ 149	$ 126
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 Accoun40

Summary of Significant Accounting Policies - PP&E (Details)	12 Months Ended
	Jun. 30, 2016
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 Accoun41

Summary of Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2016USD ($)segment	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Goodwill and other intangible assets, net of accumulated amortization
Goodwill, Impairment Loss	$ 0	$ 0
Revenue Recognition
Period of notice days given for cancellation of agreement	60 days
Advertising
Advertising costs	$ 219	$ 187	$ 24
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 | Capitalized Internal-Use Software
Goodwill and other intangible assets, net of accumulated amortization
Estimated useful lives	18 months
Maximum | Capitalized Internal-Use Software
Goodwill and other intangible assets, net of accumulated amortization
Estimated useful lives	24 months

Funds Held for Clients and Cl42

Funds Held for Clients and Client Fund Obligations (Details)	12 Months Ended
	Jun. 30, 2016
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, 2016	Apr. 16, 2015USD ($)	May 23, 2014USD ($)	Apr. 30, 2015USD ($)	May 31, 2014USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Business Combinations
Number of reseller agreements prior to the termination of said agreements					2
Payments for acquisition						$ 483	$ 11,979	$ 6,450
Goodwill						6,003	6,003
BFKMS Inc
Business Combinations
Amount paid to reseller per terms of a reseller agreement								2,495
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
Total consideration				$ 9,508
Payments for acquisition		$ 8,994				$ 483
Intangible assets		6,540
Goodwill		2,968
Total purchase price		9,508
Goodwill amortization period for income tax purposes	15 years
Synergy Payroll LLC | Client relationships
Business Combinations
Intangible assets		6,400
Synergy Payroll LLC | Non Solicitation Agreement
Business Combinations
Intangible assets		$ 140

Capitalized Internal-Use Soft44

Capitalized Internal-Use Software (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	$ 34,249	$ 24,733
Accumulated amortization	(22,822)	(17,376)
Capitalized internal-use software, net	11,427	7,357
Amortization of capitalized internal-use software	$ 5,446	$ 2,606	$ 2,195

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Property and equipment
Property and equipment, gross	$ 45,244	$ 31,155
Accumulated depreciation and amortization	(18,457)	(15,094)
Property and equipment, net	26,787	16,061
Depreciation expense	6,905	5,084	$ 4,061
Office equipment
Property and equipment
Property and equipment, gross	2,528	1,875
Computer equipment
Property and equipment
Property and equipment, gross	18,139	11,783
Furniture and fixtures
Property and equipment
Property and equipment, gross	4,308	2,423
Software
Property and equipment
Property and equipment, gross	5,059	5,218
Leasehold improvements
Property and equipment
Property and equipment, gross	11,164	6,639
Time clocks rented by clients
Property and equipment
Property and equipment, gross	$ 4,046	$ 3,217

Goodwill and Intangible Asset46

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Intangible Assets
Intangible assets	$ 12,940	$ 12,940
Accumulated amortization	(2,521)	(999)
Intangible assets, net	10,419	11,941
Amortization expense for acquired intangible assets	1,522	919	$ 80
Future amortization expense for acquired intangible assets
2,017	1,512
2,018	1,427
2,019	1,398
2,020	1,398
2,021	1,398
Thereafter	3,286
Intangible assets, net	10,419	11,941
Client relationships
Intangible Assets
Intangible assets	$ 12,580	12,580
Useful life	9 years
Non-solicitation agreements
Intangible Assets
Intangible assets	$ 360	$ 360
Non-solicitation agreements | Minimum
Intangible Assets
Useful life	2 years
Non-solicitation agreements | Maximum
Intangible Assets
Useful life	3 years

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Components of accrued expenses
Accrued payroll and personnel costs	$ 21,658	$ 14,275
Current portion of deferred rent	504	727
Other	2,817	1,428
Total accrued expenses	$ 24,979	$ 16,430

Leases (Details)

Leases (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2016USD ($)ft²item	Jun. 30, 2016USD ($)ft²item	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Rental expense for operating leases		$ 5,596	$ 4,238	$ 3,035
Future minimum lease payments under non-cancellable operating leases
2,017	$ 5,650	5,650
2,018	6,590	6,590
2,019	7,445	7,445
2,020	7,584	7,584
2,021	8,365	8,365
Later years, through 2033	75,727	75,727
Total minimum lease payments	$ 111,361	$ 111,361
Schaumburg Lease
Area of lease | ft²	310	310
Lease term	180 months
Number of renewal options | item	2	2
Renewal period	5 years
Phase 1 | Schaumburg Lease
Lease commencement date	Jun. 1, 2017
Phase 2 | Schaumburg Lease
Lease commencement date	Nov. 1, 2017
Phase 3 | Schaumburg Lease
Lease commencement date	Jul. 1, 2018
Phase 4 | Schaumburg Lease
Lease commencement date	Jul. 1, 2019
Minimum | Leased office space
Lease expiration on various dates		Aug. 31, 2016
Minimum | Leased office and production equipment
Lease expiration on various dates		Dec. 31, 2016
Maximum | Leased office space
Lease expiration on various dates		Mar. 31, 2026
Maximum | Leased office and production equipment
Lease expiration on various dates		Jul. 31, 2024

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Current taxes
U.S. federal			$ (125)
State and local	$ 27	$ 14	39
Deferred taxes:
U.S. federal	136	83	160
State and local	14	8	181
Total income tax expense	$ 177	105	255
Tax Rate Reconciliation
U.S. federal income tax rate (as a percent)	34.00%
Income tax provision at statutory federal rate	$ (1,249)	(4,716)	(2,331)
Increase (reduction) in income taxes resulting from:
Research and development credit, net of federal income tax benefit	(504)	(276)	(189)
Non-deductible expenses	557	418	145
Change in valuation allowance	2,590	4,570	2,878
State and local income taxes, net of federal income tax benefit	(432)	(562)	(387)
Other	(785)	671	139
Total income tax expense	177	105	255
Deferred tax assets:
Deferred rent	694	558
Allowance for doubtful accounts	73	56
Accrued expenses	1,812	1,313
Stock-based compensation	7,367	4,671
Net operating loss carryforwards	4,498	4,332
Research and development credit	3,236	1,357
AMT Credits	11	11
Intangible assets	413	163
Total deferred tax assets	18,104	12,461
Valuation allowance	(10,038)	(7,448)
Net deferred tax assets	8,066	5,013
Deferred tax liabilities:
Research and development costs	(3,681)	(2,837)
Prepaid expenses	(91)	(208)
Depreciation	(4,543)	(2,067)
Total deferred liabilities	(8,315)	(5,112)
Net deferred tax liability	(249)	(99)
Taxable loss	$ (8,330)	$ (12,424)	$ (3,817)
Period of cumulative loss position	3 years

Income Taxes - Carryforwards (D

Income Taxes - Carryforwards (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Operating Loss Carryforwards
Excess tax benefits from exercise of stock options	$ 14,969
Unrecognized Tax Benefits
Unrecognized tax benefits	0	$ 0	$ 0
Federal
Operating Loss Carryforwards
Excess tax benefits from exercise of stock options	5,089
Net operating loss carryforwards	$ 12,453
Years open to tax examination	June 30, 2013
Federal | Minimum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2029
Federal | Maximum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2036
State
Operating Loss Carryforwards
Excess tax benefits from exercise of stock options	$ 535
Net operating loss carryforwards	$ 4,703
State | Minimum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2019
Statute of limitations on filings	3 years
State | Maximum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2036
Statute of limitations on filings	4 years
Research and development tax credit carryforwards
Operating Loss Carryforwards
Tax credit carryforwards	$ 3,236
Research and development tax credit carryforwards | Minimum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2017
Research and development tax credit carryforwards | Maximum
Operating Loss Carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2036
Alternative minimum tax credit carryforwards
Operating Loss Carryforwards
Tax credit carryforwards	$ 11

Stockholders' Equity (Details)

Stockholders' Equity (Details)	12 Months Ended
	Jun. 30, 2016item
Common Stock
Stockholders' Equity
Number of common stock vote per share	1

Redeemable Convertible Prefer52

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 | item		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 - General Informa

Benefit Plans - General Information (Details) - shares shares in Thousands	12 Months Ended
	Jun. 30, 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 and issuable (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	10,711
Number of shares allocated but not yet issued that are subject to outstanding options or awards	4,467

Benefit Plans - Incentive Plans

Benefit Plans - Incentive Plans Activity (Details) - Equity Incentive Plans shares in Thousands	12 Months Ended
	Jun. 30, 2016shares
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)	(774)
Options granted (in shares)	(149)
Shares withheld in settlement of taxes and exercise price (in shares)	329
Forfeitures (in shares)	142
Shares removed (in shares)	(87)
Balance at the end of the period (in shares)	6,244

Benefit Plans - Compensation Ex

Benefit Plans - Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Benefit Plans
Total stock-based compensation expense	$ 17,563	$ 13,169	$ 4,929
Stock-based compensation expense capitalized	1,078	655	325
Cost of revenue - recurring
Benefit Plans
Total stock-based compensation expense	1,648	1,532	496
Cost of revenue - non-recurring
Benefit Plans
Total stock-based compensation expense	1,127	1,222	424
Sales and marketing
Benefit Plans
Total stock-based compensation expense	4,441	3,247	765
Research and development
Benefit Plans
Total stock-based compensation expense	2,789	2,533	615
General and administrative
Benefit Plans
Total stock-based compensation expense	$ 7,558	$ 4,635	$ 2,629

Benefit Plans - Valuation Assum

Benefit Plans - Valuation Assumptions, Stock Option Activity and RSU Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Aggregate intrinsic value
Excess income tax benefits for stock based compensation arrangements	$ 8,228	$ 5,562	$ 703
Stock options
Valuation assumptions:
Expected dividend yield (as a percent)	0.00%	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)	149
Options forfeited (in shares)	(105)
Options exercised (in shares)	(536)		0
Balance at the end of the period (in shares)	3,464	3,956
Options exercisable at the end of the period (in shares)	2,115
Options vested and expected to vest at the end of the period (in shares)	3,409
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)	16.47
Options exercised (in dollars per share)	11.57
Balance at the end of the period (in dollars per share)	11.75	$ 10.96
Options exercisable at the end of the period (in dollars per share)	8.44
Options vested and expected to vest at the end of the period (in dollars per share)	$ 11.59
Weighted average remaining contractual term
Balance	6 years 8 months 12 days	7 years 7 months 17 days
Options exercisable at the end of the period	6 years 1 month 21 days
Options vested and expected to vest at the end of the period	6 years 8 months 5 days
Aggregate intrinsic value
Balance at the beginning of the period	$ 98,434
Balance at the end of the period	108,944	$ 98,434
Options exercisable at the end of the period	73,530
Options vested and expected to vest at the end of the period	$ 107,764
Weighted average grant date fair value of options granted (in dollars per share)	$ 12.92	$ 11.14	$ 6.39
Total intrinsic value of options exercised	$ 13,362	$ 8,802
Unrecognized Compensation Costs Not yet Recognized
Total unrecognized compensation cost, net of estimated forfeitures	$ 2,802
Weighted average period to recognize unrecognized compensation cost	1 year 5 months 23 days
Stock options | Minimum
Valuation assumptions:
Expected volatility (as a percent)			29.50%
Expected term (years)			4 years
Risk-free interest rate (as a percent)			0.52%
Vesting Period
Vesting period	3 years
Stock options | Maximum
Valuation assumptions:
Expected volatility (as a percent)			44.50%
Expected term (years)			6 years
Risk-free interest rate (as a percent)			1.94%
Vesting Period
Vesting period	4 years
Restricted Stock Units
Units
RSU Balance at the beginning of the period (in shares)	386
RSUs granted (in shares)	774
RSUs vested (in shares)	(120)
RSUs cancelled/forfeited (in shares)	(37)
RSU Balance at the end of the period (in shares)	1,003	386
RSUs expected to vest at the end of the period (in shares)	899
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)	35.41
RSUs vested (in dollars per share)	26.07
RSUs cancelled/forfeited (in dollars per share)	30.37
RSU Balance at the end of the period (in dollars per share)	32.74	$ 24.98
RSUs expected to vest at the end of the period (in dollars per share)	$ 32.59
Unrecognized Compensation Costs Not yet Recognized
Total unrecognized compensation cost, net of estimated forfeitures	$ 15,818
Weighted average period to recognize unrecognized compensation cost	2 years 1 month 21 days
Restricted Stock Units | Minimum
Vesting Period
Vesting period	3 years
Restricted Stock Units | Maximum
Vesting Period
Vesting period	4 years

Benefit Plans - Stock Options O

Benefit Plans - Stock Options Outstanding and Stock Options Exercisable (Details) - Stock options shares in Thousands	12 Months Ended
	Jun. 30, 2016$ / sharesshares
Schedule of stock options outstanding and stock options exercisable
Number Outstanding at end of the period | shares	3,464
Weighted-Average Remaining Contractual Term	6 years 8 months 12 days
Weighted-Average Exercise Price (in dollars per share)	$ 11.75
Number Exercisable at the end of the period | shares	2,115
Weighted Average Exercise Price (in dollars per share)	$ 8.44
$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 | shares	662
Weighted-Average Remaining Contractual Term	4 years 2 months 16 days
Weighted-Average Exercise Price (in dollars per share)	$ 1.55
Number Exercisable at the end of the period | shares	662
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 | shares	862
Weighted-Average Remaining Contractual Term	6 years 1 month 21 days
Weighted-Average Exercise Price (in dollars per share)	$ 4.88
Number Exercisable at the end of the period | shares	641
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 | shares	254
Weighted-Average Remaining Contractual Term	7 years 15 days
Weighted-Average Exercise Price (in dollars per share)	$ 7.04
Number Exercisable at the end of the period | shares	62
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 | shares	1,240
Weighted-Average Remaining Contractual Term	7 years 8 months 19 days
Weighted-Average Exercise Price (in dollars per share)	$ 17
Number Exercisable at the end of the period | shares	683
Weighted Average Exercise Price (in dollars per share)	$ 17
$20.91 to $35.28
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)	$ 35.28
Number Outstanding at end of the period | shares	446
Weighted-Average Remaining Contractual Term	8 years 5 months 16 days
Weighted-Average Exercise Price (in dollars per share)	$ 28.24
Number Exercisable at the end of the period | shares	67
Weighted Average Exercise Price (in dollars per share)	$ 24.80

Benefit Plans - ESPP Informatio

Benefit Plans - ESPP Information (Details) - USD ($) shares in Thousands, $ in Thousands	May 16, 2016	Nov. 15, 2015	Feb. 06, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Equity Incentive Plans
Compensation expense (in dollars)				$ 17,563	$ 13,169	$ 4,929
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
Number of periods during which shares can be purchased			1 year
Number of shares of common stock reserved for issuance				951
Actual increase in number of shares reserved for issuance				0
Potential number of additional shares reserved for issuance each year				400
Potential percentage of additional number of shares reserved for issuance each year				0.75%
Number of shares issued	52	50
Compensation expense (in dollars)				$ 1,069	$ 656	$ 0
Valuation assumptions:
Expected dividend yield				0.00%	0.00%
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				53.40%	48.40%
Expected term (years)				6 months	6 months
Risk-free interest rate				0.31%	0.11%

Benefit Plans - 401(k) Plan (De

Benefit Plans - 401(k) Plan (Details) - USD ($) $ in Thousands	Jan. 01, 2016	Dec. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
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			$ 2,717	$ 1,656	$ 1,122

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, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Mar. 24, 2014
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)									4,482	4,355	4,490
Numerator:
Net income (loss)	$ (5,412)	$ 6,161	$ (1,165)	$ (3,435)	$ (4,429)	$ 1,752	$ (6,420)	$ (4,875)	$ (3,851)	$ (13,972)	$ (7,110)
Less: Preferred dividend rights attributable to participating securities											(2,282)
Net loss attributable to common stockholders									$ (3,851)	$ (13,972)	$ (9,392)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)	51,058	50,962	50,890	50,744	50,650	50,533	49,775	49,566	50,913	50,127	36,707
Diluted (in shares)	51,058	53,424	50,890	50,744	50,650	52,203	49,775	49,566	50,913	50,127	36,707
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.11)	$ 0.12	$ (0.02)	$ (0.07)	$ (0.09)	$ 0.03	$ (0.13)	$ (0.10)	$ (0.08)	$ (0.28)	$ (0.26)
Diluted (in dollars per share)	$ (0.11)	$ 0.12	$ (0.02)	$ (0.07)	$ (0.09)	$ 0.03	$ (0.13)	$ (0.10)	$ (0.08)	$ (0.28)	$ (0.26)
Number of shares of common stock issued on automatic conversion of outstanding preferred stock												11,933
Employee stock options
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)									3,464	3,956	4,388
Restricted Stock Units
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)									1,003	386	102
Employee stock purchase plan shares
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)									15	13

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2014USD ($)	Jun. 30, 2016USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)
Related party transactions
Amount received from related party for cash bonus to long-term employees			$ 1,052
Elite Sales
Related party transactions
Number of stockholders owned sales leads supply entities | item		1
Amount of sales leads purchased			$ 231
Equity interest (as a percent)		0.00%
Obligation to fund operational shortfalls		$ 0
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

Selected Quarterly Financial 62

Selected Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Operations Data
Revenues	$ 59,839	$ 70,570	$ 55,184	$ 45,108	$ 40,004	$ 47,272	$ 34,313	$ 31,109	$ 230,701	$ 152,698	$ 108,687
Gross profit	33,258	43,361	31,084	24,913	21,888	27,990	16,267	15,657	132,616	81,802	53,593
Operating income (loss)	(5,040)	6,201	(1,294)	(3,417)	(4,264)	1,705	(6,466)	(4,896)	(3,550)	(13,921)	(7,018)
Net income (loss)	$ (5,412)	$ 6,161	$ (1,165)	$ (3,435)	$ (4,429)	$ 1,752	$ (6,420)	$ (4,875)	$ (3,851)	$ (13,972)	$ (7,110)
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.11)	$ 0.12	$ (0.02)	$ (0.07)	$ (0.09)	$ 0.03	$ (0.13)	$ (0.10)	$ (0.08)	$ (0.28)	$ (0.26)
Diluted (in dollars per share)	$ (0.11)	$ 0.12	$ (0.02)	$ (0.07)	$ (0.09)	$ 0.03	$ (0.13)	$ (0.10)	$ (0.08)	$ (0.28)	$ (0.26)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)	51,058	50,962	50,890	50,744	50,650	50,533	49,775	49,566	50,913	50,127	36,707
Diluted (in shares)	51,058	53,424	50,890	50,744	50,650	52,203	49,775	49,566	50,913	50,127	36,707