Paylocity Holding (PCTY) 10-Q 4 May 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2018	Apr. 27, 2018
Document and Entity Information
Entity Registrant Name	Paylocity Holding Corp
Entity Central Index Key	1,591,698
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		52,653,118
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 129,530	$ 103,468
Accounts receivable, net	3,384	2,040
Prepaid expenses and other	16,921	14,879
Total current assets before funds held for clients	149,835	120,387
Funds held for clients	1,347,522	942,459
Total current assets	1,497,357	1,062,846
Long-term prepaid expenses	1,022	1,535
Capitalized internal-use software, net	20,002	17,394
Property and equipment, net	50,380	40,756
Intangible assets, net	13,457	8,907
Goodwill	9,754	6,003
Deferred income tax assets, net	18,906
Total assets	1,610,878	1,137,441
Current liabilities:
Accounts payable	2,371	2,046
Accrued expenses	35,474	30,301
Total current liabilities before client fund obligations	37,845	32,347
Client fund obligations	1,347,522	942,459
Total current liabilities	1,385,367	974,806
Deferred rent	20,963	14,621
Deferred income tax liabilities, net		401
Total liabilities	1,406,330	989,828
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2017 and March 31, 2018
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2017 and March 31, 2018; 51,738 shares issued and outstanding at June 30, 2017 and 52,649 shares issued and outstanding at March 31, 2018	53	52
Additional paid-in capital	209,791	192,837
Accumulated deficit	(5,125)	(45,276)
Accumulated other comprehensive loss	(171)
Total stockholders' equity	204,548	147,613
Total liabilities and stockholders' equity	$ 1,610,878	$ 1,137,441

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2018	Jun. 30, 2017
Unaudited Consolidated Balance Sheets
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	5,000	5,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	155,000	155,000
Common Stock, shares issued	52,649	51,738
Common Stock, shares outstanding	52,649	51,738

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Recurring fees	$ 105,857	$ 85,314	$ 264,443	$ 212,581
Interest income on funds held for clients	2,719	1,041	6,119	2,489
Total recurring revenues	108,576	86,355	270,562	215,070
Implementation services and other	4,831	3,918	10,349	8,879
Total revenues	113,407	90,273	280,911	223,949
Cost of revenues:
Recurring revenues	26,982	22,436	76,711	62,255
Implementation services and other	11,670	9,646	33,740	28,569
Total cost of revenues	38,652	32,082	110,451	90,824
Gross profit	74,755	58,191	170,460	133,125
Operating expenses:
Sales and marketing	26,004	21,242	68,782	56,988
Research and development	9,058	6,969	27,227	21,492
General and administrative	19,228	15,100	53,338	43,915
Total operating expenses	54,290	43,311	149,347	122,395
Operating income	20,465	14,880	21,113	10,730
Other income (expense)	215	(47)	465	(4)
Income before income taxes	20,680	14,833	21,578	10,726
Income tax expense (benefit)	(18,497)	32	(18,573)	164
Net income	39,177	14,801	40,151	10,562
Other comprehensive loss, net of tax
Unrealized losses on securities, net of tax	(61)		(171)
Total other comprehensive loss, net of tax	(61)		(171)
Comprehensive income	$ 39,116	$ 14,801	$ 39,980	$ 10,562
Net income per share:
Basic (in dollars per share)	$ 0.74	$ 0.29	$ 0.77	$ 0.21
Diluted (in dollars per share)	$ 0.71	$ 0.27	$ 0.73	$ 0.20
Weighted-average shares used in computing net income per share:
Basic (in shares)	52,615	51,447	52,334	51,353
Diluted (in shares)	55,030	54,002	54,717	53,987

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - 9 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Total
Balance at Jun. 30, 2017	$ 52	$ 192,837	$ (45,276)		$ 147,613
Balance (in shares) at Jun. 30, 2017	51,738				51,738
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		23,345			$ 23,345
Stock options exercised	$ 1	7,161			7,162
Stock options exercised (in shares)	772
Issuance of common stock upon vesting of restricted stock units (in shares)	425
Issuance of common stock under employee stock purchase plan		2,045			2,045
Issuance of common stock under employee stock purchase plan (in shares)	53
Net settlement for taxes and/or exercise price related to equity awards		(15,597)			(15,597)
Net settlement for taxes and/or exercise price related to equity awards (in shares)	(339)
Unrealized losses on securities, net of tax				$ (171)	(171)
Net income			40,151		40,151
Balance at Mar. 31, 2018	$ 53	$ 209,791	$ (5,125)	$ (171)	$ 204,548
Balance (in shares) at Mar. 31, 2018	52,649				52,649

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 40,151	$ 10,562
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	21,891	18,695
Depreciation and amortization expense	20,640	14,685
Deferred income tax expense (benefit)	(18,603)	127
Provision for doubtful accounts	149	47
Net accretion of discounts and amortization of premiums on available-for-sale securities	(234)
Net realized losses on sales of available-for-sale securities	2
Loss on disposal of equipment	160	225
Changes in operating assets and liabilities:
Accounts receivable	(1,278)	(543)
Prepaid expenses and other	(1,678)	(1,802)
Accounts payable	429	(145)
Accrued expenses	1,762	1,484
Tenant improvement allowance	5,952
Net cash provided by operating activities	69,343	43,335
Cash flows from investing activities:
Purchases of available-for-sale securities from funds held for clients	(126,223)
Proceeds from sales and maturities of available-for-sale securities from funds held for clients	51,292
Net change in funds held for clients' cash and cash equivalents	(328,462)	69,281
Capitalized internal-use software costs	(11,442)	(10,073)
Purchases of property and equipment	(9,374)	(13,916)
Lease allowances used for tenant improvements	(7,086)
Acquisition of business, net of cash acquired	(8,346)
Net cash provided by (used in) investing activities	(439,641)	45,292
Cash flows from financing activities:
Net change in client fund obligations	403,375	(69,281)
Proceeds from employee stock purchase plan	2,045	1,823
Taxes paid related to net share settlement of equity awards	(9,060)	(6,215)
Net cash provided by (used in) financing activities	396,360	(73,673)
Net Change in Cash and Cash Equivalents	26,062	14,954
Cash and Cash Equivalents-Beginning of Period	103,468	86,496
Cash and Cash Equivalents-End of Period	129,530	101,450
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchase of property and equipment and internal-use software, accrued but not paid	2,832	1,714
Supplemental Disclosure of Cash Flow Information
Cash paid for income taxes, net of refunds	$ 17	$ 41

Organization and Description of

Organization and Description of Business	9 Months Ended
	Mar. 31, 2018
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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Mar. 31, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) Consolidation and Use of Estimates These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, internal-use software, valuation and useful lives of long-lived assets, definite-lived intangibles, goodwill, incurred but not reported medical and dental claims, stock-based compensation, valuation of deferred income tax assets and liabilities and the best estimate of selling price for revenue recognition purposes. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. (b) Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s financial position, results of operations, changes in stockholders’ equity and cash flows. The results of operations for the three and nine months ended March 31, 2018 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2017 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 11, 2017. (c) Funds Held For Clients and Corporate Investments Funds held for clients is primarily comprised of cash and cash equivalents invested in demand deposit accounts. Starting in July 2017, the Company also invested a portion of its funds held for clients in marketable securities. Marketable securities classified as available-for-sale are recorded at fair value on the consolidated balance sheets. Unrealized gains and losses, net of applicable income taxes, are reported as other comprehensive income (loss) in the consolidated statements of operations and comprehensive income. Interest on marketable securities included in funds held for clients is reported as interest income on funds held for clients on the consolidated statements of operations and comprehensive income. The Company reviews the composition of its portfolio for any available-for-sale security that has a fair value that falls below its amortized cost. If any security fits this criterion, the Company further evaluates whether other-than-temporary impairment exists by considering whether the Company has the intent and ability to retain the security for a period of time sufficient enough to allow for anticipated fair value recovery. The Company did not record any other-than-temporary impairment charges during the three or nine months ended March 31, 2018. (d) Income Taxes Income taxes are accounted for in accordance with ASC 740, Income Taxes , using the asset and liability method. The Company’s provision for income taxes through December 31, 2017 and fiscal 2017 was based on the discrete effective tax rate method. In the third quarter of fiscal 2018 upon the release of the valuation allowance, the Company utilized the annual effective tax rate method to estimate and record tax expense for pre-tax income. 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 tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net-recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. (e) Recently Adopted Accounting Standards 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 adopted this standard effective July 1, 2017, and it resulted in an increase to the Company’s gross net operating loss of $30,783. As of December 31, 2017, the adoption of this standard did not have a material impact on its consolidated financial statements and disclosures due to the Company’s valuation allowance on deferred tax assets. However, during the third quarter of fiscal 2018, the Company released its valuation allowance and as a result, the Company recorded a significant increase in deferred tax assets due to excess tax benefits from employee stock exercises. Refer to Note 9 for additional information on the release of the valuation allowance and the impact of excess tax benefits from employee stock exercises. The Company will continue to estimate forfeitures at each reporting period, rather than electing an accounting policy change to record the impact of such forfeitures as they occur. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) (“ASU 2017-01”) which clarifies the definition of a business. ASU 2017-01 provides guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. It is effective, on a prospective basis, for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company adopted this standard effective January 1, 2018. The adoption of ASU 2017-01 did not have a material impact on the Company’s consolidated financial statements. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740) (“ASU 2018-05”) which incorporates the SEC’s Staff Accounting Bulletin 118 (“SAB 118”) issued on December 22, 2017. SAB 118 provides for a provisional measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Cuts and Jobs Act (the “Act”), not to exceed one year from enactment of the new tax law. Entities are permitted to utilize reasonable estimates until they have finished analyzing the effects of the Act. The Company recognized the income tax effects of the Act in the second and third quarter of fiscal 2018 in accordance with SAB 118. Refer to Note 9 for additional information. (f) 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, May 2016 and December 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”), ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”) and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”), 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 currently expects to adopt the new standard in its fiscal year beginning July 1, 2018 using the full retrospective method. While the impact the new revenue recognition standard will have on its consolidated financial statements and disclosures has not yet been fully assessed, the Company currently expects that there will be a material impact in the manner in which it treats certain costs of obtaining new contracts (i.e., selling and commission costs). The new standard will require the Company to defer these costs and amortize them versus its current treatment of expensing these costs as incurred. The Company is continuing to evaluate all potential impacts as well as the changes required for systems, processes and internal controls to meet the new standard’s reporting and disclosure requirements. 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. In March 2018, the FASB affirmed its proposed ASU, Leases (Topic 842): Targeted Improvements, which provides an additional transition method allowing an entity to apply the new lease accounting and disclosure requirements only for the year of adoption with the comparative periods continuing to be in accordance with current GAAP. 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 as well as evaluating the transition methods and expects to adopt this new standard in its fiscal year beginning July 1, 2019. 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 other recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.

Business Combinations

Business Combinations	9 Months Ended
	Mar. 31, 2018
Business Combinations
Business Combinations	(3) Business Combinations In March 2018, the Company acquired substantially all the assets of BeneFLEX HR Resources, Inc. (“BeneFLEX”), a third party employee benefits administrator, for $9,346, net of cash acquired. BeneFLEX administers employee benefit plans, including flexible spending accounts, health savings accounts, health reimbursement accounts, COBRA, and others. The Company paid $8,346 upon closing and may be required to pay an additional $1,000 subject to BeneFLEX attaining certain revenue targets and in the absence of indemnity claims. This acquisition expands the portfolio of services available to the Company’s clients by allowing it to provide additional benefit administration solutions to its clients, prospects, and broker partners. The Company accounts for business combinations in accordance with ASC 805, Business Combinations. The Company recorded the acquisition using the acquisition method of accounting and recognized assets at their fair value as of the date of acquisition. The Company based the preliminary allocation of the purchase price on estimates and assumptions that are subject to change within the purchase price allocation period, which is generally one year from the acquisition date. The primary areas of the purchase price allocation that are not yet finalized relate to the measurement of identifiable intangible assets and the finalization of net working capital adjustments. The Company determined the estimated fair value of identifiable intangible assets acquired primarily by using an income approach. The following table summarizes the preliminary allocation of the purchase price for BeneFLEX: Goodwill $ 3,751 Client relationships 5,386 Non-solicitation agreements 240 Net liabilities assumed (31) Total Purchase Price $ 9,346 The results from this acquisition have been included in the Company’s consolidated financial statements since the closing of the acquisition. Pro forma information has not been presented because the effect of the acquisition is not material to the Company’s consolidated financial statements. Goodwill will be amortized over a period of 15 years for income tax purposes.

Balance Sheet Information

Balance Sheet Information	9 Months Ended
	Mar. 31, 2018
Balance Sheet Information
Balance Sheet Information	(4) Balance Sheet Information The following tables provide details of selected consolidated balance sheet items: Activity in the allowance for doubtful accounts was as follows: Balance at June 30, 2017 $ 266 Charged to expense 149 Write-offs (134) Balance at March 31, 2018 $ 281 Capitalized internal-use software and accumulated amortization were as follows: June 30, March 31, 2017 2018 Capitalized internal-use software $ 49,663 $ 62,629 Accumulated amortization (32,269) (42,627) Capitalized internal-use software, net $ 17,394 $ 20,002 Amortization of capitalized internal-use software costs is included in Cost of Revenues-Recurring Revenues and amounted to $2,573 and $3,655 for the three months ended March 31, 2017 and 2018, respectively, and $6,207 and $10,358 for the nine months ended March 31, 2017 and 2018, respectively. Property and equipment, net consist of the following: June 30, March 31, 2017 2018 Office equipment $ 3,591 $ 3,880 Computer equipment 24,411 28,526 Furniture and fixtures 7,547 8,837 Software 4,954 5,221 Leasehold improvements 21,426 32,621 Time clocks rented by clients 4,240 4,551 Total 66,169 83,636 Accumulated depreciation (25,413) (33,256) Property and equipment, net $ 40,756 $ 50,380 Depreciation expense amounted to $2,629 and $3,189 for the three months ended March 31, 2017 and 2018, respectively, and $7,336 and $9,206 for the nine months ended March 31, 2017 and 2018, respectively. Goodwill represents the excess of cost over the net tangible and identifiable intangible assets of acquired businesses. Goodwill amounts are not amortized, but rather tested for impairment at least annually. Identifiable intangible assets acquired in business combinations are recorded based on fair value at the date of acquisition and amortized over their estimated useful lives. See Note 3 for further information regarding the acquisition completed during the nine months ended March 31, 2018. The following table summarizes changes in goodwill during the nine months ended March 31, 2018: Balance at June 30, 2017 $ 6,003 Additions attributable to current period acquisition 3,751 Balance at March 31, 2018 $ 9,754 Intangible assets, net consist of the following: June 30, March 31, Useful 2017 2018 Life Client relationships $ 12,580 $ 17,966 9 years Non-solicitation agreements 360 600 2 - 4 years Total 12,940 18,566 Accumulated amortization (4,033) (5,109) Intangible assets, net $ 8,907 $ 13,457 The increase in client relationships and non-solicitation agreements is related to the acquisition of BeneFLEX as discussed in Note 3. Amortization expense for acquired intangible assets was $380 and $358 for the three months ended March 31, 2017 and 2018 respectively, and $1,142 and $1,076 for the nine months ended March 31, 2017 and 2018, respectively. Future amortization expense for acquired intangible assets is as follows, as of March 31, 2018: Remainder of fiscal 2018 $ 516 Fiscal 2019 2,056 Fiscal 2020 2,056 Fiscal 2021 2,056 Fiscal 2022 2,041 Thereafter 4,732 Total $ 13,457 The components of accrued expenses were as follows: June 30, March 31, 2017 2018 Accrued payroll and personnel costs $ 25,131 $ 25,361 Other 5,170 10,113 Total accrued expenses $ 30,301 $ 35,474

Funds Held for Clients and Corp

Funds Held for Clients and Corporate Investments	9 Months Ended
	Mar. 31, 2018
Funds Held For Clients And Corporate Investments [Abstract]
Funds Held For Clients And Corporate Investments [Text Block]	(5) Funds Held for Clients and Corporate Investments Investments consist of the following as of March 31, 2018: Gross Gross Amortized unrealized unrealized Type of Issue cost gains losses Fair value Funds held for clients' cash and cash equivalents $ 1,272,771 $ — $ (4) $ 1,272,767 Available-for-sale securities: Corporate bonds 33,958 3 (168) 33,793 Commercial paper 29,165 — (16) 29,149 Asset-backed securities 12,041 — (65) 11,976 Total available-for-sale securities 75,164 3 (249) 74,918 Investments $ 1,347,935 $ 3 $ (253) $ 1,347,685 Funds held for clients’ cash and cash equivalents included demand deposit accounts, commercial paper and money market funds as of March 31, 2018. Classification of investments on the consolidated balance sheets is as follows: March 31, 2018 Funds held for clients $ 1,347,522 Prepaid expenses and other 163 Total investments $ 1,347,685 Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of March 31, 2018 had fair market values as follows: Gross unrealized losses Fair value Corporate bonds $ (168) $ 31,231 Commercial paper (16) 27,291 Asset-backed securities (65) 11,976 Total $ (249) $ 70,498 As the Company started investing funds held for clients in available-for-sale securities during the nine months ended March 31, 2018, no securities have been in an unrealized loss position for more than 12 months. The Company did not make any material reclassification adjustments out of accumulated other comprehensive loss for realized gains and losses on the sale of available-for-sale securities during the three or nine months ended March 31, 2018. Gross realized gains and losses on the sale of available-for-sale securities were immaterial for both the three and nine months ended March 31, 2018. The Company regularly reviews the composition of its portfolio to determine the existence of other-than-temporary-impairment (“OTTI”). The Company did not recognize any OTTI charges in accumulated other comprehensive loss during the three or nine months ended March 31, 2018, nor does it believe that OTTI exists in its portfolio as of March 31, 2018. The Company plans to retain the securities in an unrealized loss position for a period of time sufficient enough to recover their amortized cost basis or until their maturity date. The Company believes that the unrealized losses on these securities were not due to deterioration in credit risk. The securities in an unrealized loss position held an A-1 rating or better as of March 31, 2018. Expected maturities of available-for-sale securities at March 31, 2018 are as follows: Amortized cost Fair value One year or less $ 53,150 $ 53,036 One year to two years 20,410 20,275 Two years to three years 1,604 1,607 Total available-for-sale securities $ 75,164 $ 74,918

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Mar. 31, 2018
Fair Value Measurement
Fair Value Measurement	(6) Fair Value Measurement The Company applies the fair value measurement and disclosure provisions of ASC 820, Fair Value Measurements and Disclosures, and ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS . Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: · Level 1—Quoted prices in active markets for identical assets and liabilities. · Level 2—Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company measures any cash and cash equivalents, accounts receivable, accounts payable and client fund obligations at fair value on a recurring basis using Level 1 inputs. The Company considers the recorded value of these financial assets and liabilities to approximate the fair value of the respective assets and liabilities at June 30, 2017 and March 31, 2018 based upon the short-term nature of these assets and liabilities. Marketable securities, consisting of securities classified as available-for-sale as well as certain cash equivalents, are recorded at fair value on a recurring basis using Level 2 inputs obtained from an independent pricing service. Available-for-sale securities include asset-backed securities, corporate bonds and commercial paper. The independent pricing service utilizes a variety of inputs including benchmark yields, broker/dealer quoted prices, reported trades, issuer spreads as well as other available market data. The Company, on a sample basis, validates the pricing from the independent pricing service against another third-party pricing source for reasonableness. The Company has not adjusted any prices obtained by the independent pricing service, as it believes they are appropriately valued. There were no available-for-sale securities classified in Level 3 of the fair value hierarchy at March 31, 2018, and the Company did not transfer assets between Levels during the nine months ended March 31, 2018. The Company did not hold any marketable securities at June 30, 2017. The fair value level for the funds held for clients’ cash and cash equivalents and available-for-sale securities as of March 31, 2018 is as follows: Total Level 1 Level 2 Level 3 Funds held for clients' cash and cash equivalents $ 1,272,767 $ 1,247,604 $ 25,163 $ — Available-for-sale securities: Corporate bonds 33,793 33,793 Commercial paper 29,149 29,149 Asset-backed securities 11,976 11,976 Total available-for-sale securities 74,918 — 74,918 — Investments $ 1,347,685 $ 1,247,604 $ 100,081 $ —

Benefit Plans

Benefit Plans	9 Months Ended
	Mar. 31, 2018
Benefit Plans
Benefit Plans	(7) Benefit Plans (a) Equity Incentive Plan The Company maintains a 2008 Equity Incentive Plan (the “2008 Plan”) and a 2014 Equity Incentive Plan (the “2014 Plan”) pursuant to which the Company has reserved shares of its common stock for issuance to its employees, directors and non-employee third parties. The 2014 Plan serves as the successor to the 2008 Plan and permits the granting of options to purchase common stock and other equity incentives at the discretion of the compensation committee of the Company’s board of directors. No new awards have been or will be issued under the 2008 Plan since the effective date of the 2014 Plan. Outstanding awards under the 2008 Plan continue to be subject to the terms and conditions of the 2008 Plan. The number of shares of common stock reserved for issuance under the 2014 Plan will increase automatically each calendar year, continuing through and including January 1, 2024 (the “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, 2018, it would increase the number of common shares in reserve for issuance under the 2014 Plan by 2,367 shares. As of March 31, 2018, the Company had 13,883 shares allocated to the plans, of which 3,848 shares were subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options or vesting of awards; however, shares previously subject to 2014 Plan grants or awards that are forfeited or net settled at exercise or release may be reissued to satisfy future issuances. The following table summarizes changes in the number of shares available for grant under the Company’s equity incentive plans during the nine months ended March 31, 2018: Number of Available for grant at July 1, 2017 8,227 January 1, 2018 Evergreen provision increase 2,367 RSUs granted (884) Shares withheld in settlement of taxes and/or exercise price 339 Forfeitures 45 Shares removed (59) Available for grant at March 31, 2018 10,035 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, restricted stock units (“RSUs”), and the Employee Stock Purchase Plan (as described below) is included in the following line items in the accompanying unaudited consolidated statements of operations and comprehensive income: Three Months Ended March 31, Nine Months Ended March 31, 2017 2018 2017 2018 Cost of revenue – recurring $ 485 $ 728 $ 1,621 $ 2,084 Cost of revenue – non-recurring 363 358 1,031 1,107 Sales and marketing 1,672 1,537 4,880 5,680 Research and development 797 926 2,461 2,742 General and administrative 2,930 3,918 8,702 10,278 Total stock-based compensation expense $ 6,247 $ 7,467 $ 18,695 $ 21,891 In addition, the Company capitalized $540 and $550 of stock-based compensation expense in its capitalized internal-use software costs in the three months ended March 31, 2017 and 2018, respectively, and $1,412 and $1,454 in the nine months ended March 31, 2017 and 2018, 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. There were no stock options granted during the nine months ended March 31, 2017 or 2018. The table below presents stock option activity during the nine months ended March 31, 2018: Outstanding Options Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic shares price term (years) value Balance at July 1, 2017 2,751 $ 11.54 5.69 $ 92,556 Options forfeited (5) $ 18.41 Options exercised (772) $ 9.28 Balance at March 31, 2018 1,974 $ 12.40 5.26 $ 76,638 Options exercisable at March 31, 2018 1,848 $ 11.23 5.15 $ 73,936 Options vested and expected to vest at March 31, 2018 1,970 $ 12.36 5.25 $ 76,563 The total intrinsic value of options exercised was $2,813 and $3,758 during the three months ended March 31, 2017 and 2018, respectively, and $8,352 and $31,013 during the nine months ended March 31, 2017 and 2018, respectively. At March 31, 2018, there was $262 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options granted under the Plan. That cost is expected to be recognized over a weighted average period of 0.90 years. The Company may also grant RSUs under the 2014 Plan with terms determined at the discretion of the compensation committee of the Company’s board of directors. RSUs generally vest over four years following the grant date. Certain RSU awards have time-based vesting conditions while other RSU awards are based on the achievement of certain revenue and Adjusted EBITDA targets in future fiscal years. The following table represents restricted stock unit activity during the nine months ended March 31, 2018: Units Weighted RSU balance at July 1, 2017 1,455 $ 39.96 RSUs granted 884 $ 45.95 RSUs vested (425) $ 39.31 RSUs forfeited (40) $ 41.73 RSU balance at March 31, 2018 1,874 $ 42.89 RSUs expected to vest at March 31, 2018 1,635 $ 42.69 At March 31, 2018, there was $34,872 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 1.86 years. (b) Employee Stock Purchase Plan Under the Company’s Employee Stock Purchase Plan (“ESPP”), the Company can grant stock purchase rights to all eligible employees during specific offering periods not to exceed twenty-seven months. Each offering period will begin on the trading day closest to May 16 and November 16 of each year. Shares are purchased through employees’ payroll deductions, up to a maximum of 10% of employees’ compensation for each purchase period, at a purchase price equal to 85% of the lesser of the fair market value of the Company’s common stock at the first trading day of the applicable offering period or the purchase date. Participants may purchase up to $25 worth of common stock or 2 shares of common stock in any one year. The ESPP is considered compensatory and results in compensation expense. As of March 31, 2018, a total of 1,166 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. The Company’s board of directors determined that, effective January 1, 2018, it would increase the number of common shares in reserve for issuance under the ESPP by 395 shares. The Company issued 53 shares upon the completion of its six-month offering period ending November 15, 2017. The Company recorded compensation expense attributable to the ESPP of $304 and $323 for the three months ended March 31, 2017 and 2018, respectively, and $967 and $971 for the nine months ended March 31, 2017 and 2018, respectively, which is included in the summary of stock-based compensation expense above. The grant date fair value of the ESPP offering periods was estimated using the following weighted average assumptions: Nine Months Ended March 31, 2017 2018 Valuation assumptions: Expected dividend yield % % Expected volatility 38.9 - 53.4 % 28.3 - 39.1 % Expected term (years) 0.5 0.5 Risk ‑ free interest rate 0.28 - 0.61 % 1.02 - 1.35 % (c) 401(k) Plan The Company maintains a 401(k) plan with a matching provision that covers all eligible employees. The Company matches 50% of employees’ contributions up to 8% of their gross pay. Contributions were $1,055 and $1,276 for the three months ended March 31, 2017 and 2018, respectively, and $2,732 and $3,382 for the nine months ended March 31, 2017 and 2018, respectively.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Mar. 31, 2018
Net Income Per Share
Net Income Per Share	(8) Net Income Per Share Basic net income per common share is computed using the weighted‑average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted‑average number of common shares outstanding during the period and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options, the release of restricted stock units, and the shares purchasable via the employee stock purchase plan as of the balance sheet date. The following table presents the calculation of basic and diluted net income per share: Three Months Ended Nine Months Ended March 31, March 31, 2017 2018 2017 2018 Numerator: Net income $ 14,801 $ 39,177 $ 10,562 $ 40,151 Denominator: Weighted-average shares used in computing net income per share: Basic 51,447 52,615 51,353 52,334 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and employee stock purchase plan shares 2,555 2,415 2,634 2,383 Diluted 54,002 55,030 53,987 54,717 Net income per share: Basic $ 0.29 $ 0.74 $ 0.21 $ 0.77 Diluted $ 0.27 $ $ 0.20 $ 0.73 The following table summarizes the outstanding employee stock options and restricted stock units as of the balance sheet date that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: Three Months Ended Nine Months Ended March 31, March 31, 2017 2018 2017 2018 Employee stock options 145 — 145 — Restricted stock units 10 28 690 121 Total 155 28 835 121

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2018
Income Taxes
Income Taxes	(9) Income Taxes The Company’s quarterly provision for income taxes through December 31, 2017 and fiscal 2017 was based on the discrete effective tax rate method. In the third quarter of fiscal 2018 upon the release of the valuation allowance, the Company utilized the annual effective tax rate method to record the tax expense for pre-tax income through March 31, 2018. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, and other discrete items in the interim period in which they occur. The Company recorded income tax expense (benefit) of $32 and $(18,497) for the three months ended March 31, 2017 and 2018 respectively, and $164 and $(18,573) for the nine months ended March 31, 2017 and 2018, respectively. The tax benefit of $18,497 recorded during the three months ended March 31, 2018 primarily includes the release of substantially all of the Company’s valuation allowance of $22,585 and the excess tax benefits recorded from employee stock exercises of $10,973 during fiscal 2018 partially offset by the estimated impacts of the Tax Cuts and Jobs Act of 2017 (the “Act”) of $9,817 and the Company’s tax provision on income before income taxes of $5,260. The Company’s effective tax rates for the three and nine months ended March 31, 2017 differed from statutory rates primarily due to the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. The Company’s effective tax rates for the three and nine months ended March 31, 2018 differed from statutory rates primarily due to the release of substantially all of the Company’s valuation allowance and excess tax benefits from employee stock exercises partially offset by the estimated impacts of the Act . The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for a valuation allowance on a quarterly basis. The Company established a valuation allowance in fiscal 2014 on all of its net deferred tax assets except for deferred tax liabilities associated with indefinite-lived intangible assets, given that the Company determined that it was more likely than not that the Company would not recognize the benefits of its net operating loss carryforwards prior to their expiration. The Company has continued to record a valuation allowance through the first six months of fiscal 2018. In the third quarter of fiscal 2018, management concluded that all of the valuation allowance for the Company’s U.S. federal deferred tax assets and substantially all state deferred tax assets was no longer needed. This is primarily due to three years’ cumulative income through the third quarter of fiscal 2018 and the forecast of future taxable income. As of March 31, 2018, based on the evaluation of positive and negative evidence, management believes it is more likely than not that the net deferred tax assets will be realized for all federal and substantially all state purposes. Accordingly, management has recognized a non-recurring tax benefit of $22,585 related to the valuation allowance reversal. As of March 31, 2018, the Company continued to maintain a valuation allowance of $541 for state tax benefits. Such assessment may change in the future as further evidence becomes available. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law. Over the long term, the Company generally expects to benefit from the lower statutory rates provided by the Act and is currently assessing all other aspects relevant to the Company. The Company operates solely in the United States; therefore, the international provisions of the Act do not apply. In accordance with ASC 740, during the second quarter the Company modified its current federal statutory rate for the year to account for the rate change. At that time, the Company recorded a $156 income tax benefit attributable to the rate change effect on the deferred tax liability for indefinite-lived intangible assets. In response to the Act, the SEC subsequently issued SAB 118 (later codified into ASU 2018-05) allowing registrants to record provisional amounts to the extent a company’s accounting for the Act is incomplete. Pursuant to disclosure under SAB 118, revaluation of deferred taxes as of December 22, 2017 is incomplete. The Company has recorded provisional estimated tax expense of $9,817 related to the rate change and additional limitations on executive compensation. As the Company released substantially all of its valuation allowance against its deferred taxes, this expense is included in the third quarter income tax (benefit). As of March 31, 2018, the Company is still analyzing the impact of the Act with respect to the appropriate period of reversal of deferred tax assets and liabilities, as well as additional limitations on the deductibility of executive compensation and on certain meals and entertainment expenses. The Company needs additional time to finalize its estimates and expects additional guidance to be issued by the Internal Revenue Service before the assessment of the impact of the Act can be completed. The Company currently expects to complete its accounting for the effects of the Act by the end of December 2018.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2018
Summary of Significant Accounting Policies
Consolidation and Use of Estimates	(a) Consolidation and Use of Estimates These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, internal-use software, valuation and useful lives of long-lived assets, definite-lived intangibles, goodwill, incurred but not reported medical and dental claims, stock-based compensation, valuation of deferred income tax assets and liabilities and the best estimate of selling price for revenue recognition purposes. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes.
Interim Unaudited Consolidated Financial Information	(b) Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s financial position, results of operations, changes in stockholders’ equity and cash flows. The results of operations for the three and nine months ended March 31, 2018 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2017 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 11, 2017.
Funds Held For Clients and Corporate Investments	c) Funds Held For Clients and Corporate Investments Funds held for clients is primarily comprised of cash and cash equivalents invested in demand deposit accounts. Starting in July 2017, the Company also invested a portion of its funds held for clients in marketable securities. Marketable securities classified as available-for-sale are recorded at fair value on the consolidated balance sheets. Unrealized gains and losses, net of applicable income taxes, are reported as other comprehensive income (loss) in the consolidated statements of operations and comprehensive income. Interest on marketable securities included in funds held for clients is reported as interest income on funds held for clients on the consolidated statements of operations and comprehensive income. The Company reviews the composition of its portfolio for any available-for-sale security that has a fair value that falls below its amortized cost. If any security fits this criterion, the Company further evaluates whether other-than-temporary impairment exists by considering whether the Company has the intent and ability to retain the security for a period of time sufficient enough to allow for anticipated fair value recovery. The Company did not record any other-than-temporary impairment charges during the three or nine months ended March 31, 2018.
Income Taxes	(d) Income Taxes Income taxes are accounted for in accordance with ASC 740, Income Taxes , using the asset and liability method. The Company’s provision for income taxes through December 31, 2017 and fiscal 2017 was based on the discrete effective tax rate method. In the third quarter of fiscal 2018 upon the release of the valuation allowance, the Company utilized the annual effective tax rate method to estimate and record tax expense for pre-tax income. 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 tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net-recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
Recently Adopted and Recently Issued Accounting Standards	(e) Recently Adopted Accounting Standards 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 adopted this standard effective July 1, 2017, and it resulted in an increase to the Company’s gross net operating loss of $30,783. As of December 31, 2017, the adoption of this standard did not have a material impact on its consolidated financial statements and disclosures due to the Company’s valuation allowance on deferred tax assets. However, during the third quarter of fiscal 2018, the Company released its valuation allowance and as a result, the Company recorded a significant increase in deferred tax assets due to excess tax benefits from employee stock exercises. Refer to Note 9 for additional information on the release of the valuation allowance and the impact of excess tax benefits from employee stock exercises. The Company will continue to estimate forfeitures at each reporting period, rather than electing an accounting policy change to record the impact of such forfeitures as they occur. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) (“ASU 2017-01”) which clarifies the definition of a business. ASU 2017-01 provides guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. It is effective, on a prospective basis, for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company adopted this standard effective January 1, 2018. The adoption of ASU 2017-01 did not have a material impact on the Company’s consolidated financial statements. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740) (“ASU 2018-05”) which incorporates the SEC’s Staff Accounting Bulletin 118 (“SAB 118”) issued on December 22, 2017. SAB 118 provides for a provisional measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Cuts and Jobs Act (the “Act”), not to exceed one year from enactment of the new tax law. Entities are permitted to utilize reasonable estimates until they have finished analyzing the effects of the Act. The Company recognized the income tax effects of the Act in the second and third quarter of fiscal 2018 in accordance with SAB 118. Refer to Note 9 for additional information. (f) 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, May 2016 and December 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”), ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”) and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”), 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 currently expects to adopt the new standard in its fiscal year beginning July 1, 2018 using the full retrospective method. While the impact the new revenue recognition standard will have on its consolidated financial statements and disclosures has not yet been fully assessed, the Company currently expects that there will be a material impact in the manner in which it treats certain costs of obtaining new contracts (i.e., selling and commission costs). The new standard will require the Company to defer these costs and amortize them versus its current treatment of expensing these costs as incurred. The Company is continuing to evaluate all potential impacts as well as the changes required for systems, processes and internal controls to meet the new standard’s reporting and disclosure requirements. 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. In March 2018, the FASB affirmed its proposed ASU, Leases (Topic 842): Targeted Improvements, which provides an additional transition method allowing an entity to apply the new lease accounting and disclosure requirements only for the year of adoption with the comparative periods continuing to be in accordance with current GAAP. 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 as well as evaluating the transition methods and expects to adopt this new standard in its fiscal year beginning July 1, 2019. 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 other recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Mar. 31, 2018
Business Combinations
Summary of preliminary allocation of the purchase price of business combination	The following table summarizes the preliminary allocation of the purchase price for BeneFLEX: Goodwill $ 3,751 Client relationships 5,386 Non-solicitation agreements 240 Net liabilities assumed (31) Total Purchase Price $ 9,346

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	9 Months Ended
	Mar. 31, 2018
Balance Sheet Information
Schedule of activity in allowance for doubtful accounts	Balance at June 30, 2017 $ 266 Charged to expense 149 Write-offs (134) Balance at March 31, 2018 $ 281
Schedule of capitalized internal-use software and accumulated amortization	June 30, March 31, 2017 2018 Capitalized internal-use software $ 49,663 $ 62,629 Accumulated amortization (32,269) (42,627) Capitalized internal-use software, net $ 17,394 $ 20,002
Schedule of property and equipment	June 30, March 31, 2017 2018 Office equipment $ 3,591 $ 3,880 Computer equipment 24,411 28,526 Furniture and fixtures 7,547 8,837 Software 4,954 5,221 Leasehold improvements 21,426 32,621 Time clocks rented by clients 4,240 4,551 Total 66,169 83,636 Accumulated depreciation (25,413) (33,256) Property and equipment, net $ 40,756 $ 50,380
Schedule of changes in goodwill	Balance at June 30, 2017 $ 6,003 Additions attributable to current period acquisition 3,751 Balance at March 31, 2018 $ 9,754
Schedule of intangible assets	June 30, March 31, Useful 2017 2018 Life Client relationships $ 12,580 $ 17,966 9 years Non-solicitation agreements 360 600 2 - 4 years Total 12,940 18,566 Accumulated amortization (4,033) (5,109) Intangible assets, net $ 8,907 $ 13,457
Schedule of future amortization expense for acquired intangible assets	Future amortization expense for acquired intangible assets is as follows, as of March 31, 2018: Remainder of fiscal 2018 $ 516 Fiscal 2019 2,056 Fiscal 2020 2,056 Fiscal 2021 2,056 Fiscal 2022 2,041 Thereafter 4,732 Total $ 13,457
Schedule of components of accrued expenses	June 30, March 31, 2017 2018 Accrued payroll and personnel costs $ 25,131 $ 25,361 Other 5,170 10,113 Total accrued expenses $ 30,301 $ 35,474

Funds Held For Clients And Co19

Funds Held For Clients And Corporate Investments (Tables)	9 Months Ended
	Mar. 31, 2018
Funds Held For Clients And Corporate Investments [Abstract]
Schedule of investments	Investments consist of the following as of March 31, 2018: Gross Gross Amortized unrealized unrealized Type of Issue cost gains losses Fair value Funds held for clients' cash and cash equivalents $ 1,272,771 $ — $ (4) $ 1,272,767 Available-for-sale securities: Corporate bonds 33,958 3 (168) 33,793 Commercial paper 29,165 — (16) 29,149 Asset-backed securities 12,041 — (65) 11,976 Total available-for-sale securities 75,164 3 (249) 74,918 Investments $ 1,347,935 $ 3 $ (253) $ 1,347,685
Classification of investments on the consolidated balance sheets	March 31, 2018 Funds held for clients $ 1,347,522 Prepaid expenses and other 163 Total investments $ 1,347,685
Schedule of available-for-sale securities that have been in an unrealized loss position for less than 12 months	Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of March 31, 2018 had fair market values as follows: Gross unrealized losses Fair value Corporate bonds $ (168) $ 31,231 Commercial paper (16) 27,291 Asset-backed securities (65) 11,976 Total $ (249) $ 70,498
Schedule of expected maturities of available-for-sale securities	Expected maturities of available-for-sale securities at March 31, 2018 are as follows: Amortized cost Fair value One year or less $ 53,150 $ 53,036 One year to two years 20,410 20,275 Two years to three years 1,604 1,607 Total available-for-sale securities $ 75,164 $ 74,918

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Mar. 31, 2018
Fair Value Measurement
Schedule of fair value level for funds held for clients cash and cash equivalents and available-for-sale securities measured on a recurring basis	The fair value level for the funds held for clients’ cash and cash equivalents and available-for-sale securities as of March 31, 2018 is as follows: Total Level 1 Level 2 Level 3 Funds held for clients' cash and cash equivalents $ 1,272,767 $ 1,247,604 $ 25,163 $ — Available-for-sale securities: Corporate bonds 33,793 33,793 Commercial paper 29,149 29,149 Asset-backed securities 11,976 11,976 Total available-for-sale securities 74,918 — 74,918 — Investments $ 1,347,685 $ 1,247,604 $ 100,081 $ —

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
	Mar. 31, 2018
Benefit Plans
Summary of shares available for grant under equity incentive plans	Number of Available for grant at July 1, 2017 8,227 January 1, 2018 Evergreen provision increase 2,367 RSUs granted (884) Shares withheld in settlement of taxes and/or exercise price 339 Forfeitures 45 Shares removed (59) Available for grant at March 31, 2018 10,035
Schedule of stock-based compensation expense related to stock options, restricted stock units and the Employee Stock Purchase Plan	Three Months Ended March 31, Nine Months Ended March 31, 2017 2018 2017 2018 Cost of revenue – recurring $ 485 $ 728 $ 1,621 $ 2,084 Cost of revenue – non-recurring 363 358 1,031 1,107 Sales and marketing 1,672 1,537 4,880 5,680 Research and development 797 926 2,461 2,742 General and administrative 2,930 3,918 8,702 10,278 Total stock-based compensation expense $ 6,247 $ 7,467 $ 18,695 $ 21,891
Schedule of stock option activity	Outstanding Options Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic shares price term (years) value Balance at July 1, 2017 2,751 $ 11.54 5.69 $ 92,556 Options forfeited (5) $ 18.41 Options exercised (772) $ 9.28 Balance at March 31, 2018 1,974 $ 12.40 5.26 $ 76,638 Options exercisable at March 31, 2018 1,848 $ 11.23 5.15 $ 73,936 Options vested and expected to vest at March 31, 2018 1,970 $ 12.36 5.25 $ 76,563
Schedule of restricted stock unit activity	Units Weighted RSU balance at July 1, 2017 1,455 $ 39.96 RSUs granted 884 $ 45.95 RSUs vested (425) $ 39.31 RSUs forfeited (40) $ 41.73 RSU balance at March 31, 2018 1,874 $ 42.89 RSUs expected to vest at March 31, 2018 1,635 $ 42.69
Summary of weighted average assumptions used for estimating grant date fair value of ESPP	Nine Months Ended March 31, 2017 2018 Valuation assumptions: Expected dividend yield % % Expected volatility 38.9 - 53.4 % 28.3 - 39.1 % Expected term (years) 0.5 0.5 Risk ‑ free interest rate 0.28 - 0.61 % 1.02 - 1.35 %

Net income Per Share (Tables)

Net income Per Share (Tables)	9 Months Ended
	Mar. 31, 2018
Net Income Per Share
Schedule of calculation of basic net income per share	Three Months Ended Nine Months Ended March 31, March 31, 2017 2018 2017 2018 Numerator: Net income $ 14,801 $ 39,177 $ 10,562 $ 40,151 Denominator: Weighted-average shares used in computing net income per share: Basic 51,447 52,615 51,353 52,334 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and employee stock purchase plan shares 2,555 2,415 2,634 2,383 Diluted 54,002 55,030 53,987 54,717 Net income per share: Basic $ 0.29 $ 0.74 $ 0.21 $ 0.77 Diluted $ 0.27 $ $ 0.20 $ 0.73
Summary of anti-dilutive securities	Three Months Ended Nine Months Ended March 31, March 31, 2017 2018 2017 2018 Employee stock options 145 — 145 — Restricted stock units 10 28 690 121 Total 155 28 835 121

Summary of Significant Accoun23

Summary of Significant Accounting Policies - Recently Adopted ASUs (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2018USD ($)
ASU 2016-09
Recently adopted accounting standards
Increase in gross net operating loss	$ 30,783

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Jun. 30, 2017
Business Combinations
Purchase price paid		$ 8,346
Goodwill	$ 9,754	9,754	$ 6,003
Finite-lived intangible assets	18,566	18,566	12,940
Client relationships
Business Combinations
Finite-lived intangible assets	17,966	17,966	12,580
Non-solicitation agreements
Business Combinations
Finite-lived intangible assets	600	600	$ 360
BeneFLEX
Business Combinations
Purchase price paid	8,346
Purchase price payable	1,000
Goodwill	3,751	3,751
Net liabilities assumed	(31)	(31)
Total purchase price	$ 9,346	9,346
Goodwill amortization period for income tax purposes	15 years
BeneFLEX | Client relationships
Business Combinations
Finite-lived intangible assets	$ 5,386	5,386
BeneFLEX | Non-solicitation agreements
Business Combinations
Finite-lived intangible assets	$ 240	$ 240

Balance Sheet Information - All

Balance Sheet Information - Allowance for Doubtful Accounts, Capitalized Internal-Use Software and Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Activity in allowance for doubtful accounts
Balance at beginning of period			$ 266
Charged to expense			149	$ 47
Write-offs			(134)
Balance at end of period	$ 281		281
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	62,629		62,629		$ 49,663
Accumulated amortization	(42,627)		(42,627)		(32,269)
Capitalized internal-use software, net	20,002		20,002		17,394
Property and equipment, net
Property and equipment, gross	83,636		83,636		66,169
Accumulated depreciation	(33,256)		(33,256)		(25,413)
Property and equipment, net	50,380		50,380		40,756
Depreciation expense	3,189	$ 2,629	9,206	7,336
Cost of revenue - recurring
Capitalized internal-use software and accumulated amortization
Amortization of capitalized internal-use software	3,655	$ 2,573	10,358	$ 6,207
Office equipment
Property and equipment, net
Property and equipment, gross	3,880		3,880		3,591
Computer equipment
Property and equipment, net
Property and equipment, gross	28,526		28,526		24,411
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	8,837		8,837		7,547
Software
Property and equipment, net
Property and equipment, gross	5,221		5,221		4,954
Leasehold improvements
Property and equipment, net
Property and equipment, gross	32,621		32,621		21,426
Time clocks rented by clients
Property and equipment, net
Property and equipment, gross	$ 4,551		$ 4,551		$ 4,240

Balance Sheet Information - Int

Balance Sheet Information - Intangible Assets and Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Changes in goodwill
Balance at beginning of the period			$ 6,003
Additions attributable to current period acquisition			3,751
Balance at end of the period	$ 9,754		9,754
Intangible assets
Intangible assets	18,566		18,566		$ 12,940
Accumulated amortization	(5,109)		(5,109)		(4,033)
Intangible assets, net	13,457		13,457		8,907
Amortization expense for acquired intangible assets	358	$ 380	1,076	$ 1,142
Future amortization expense for acquired intangible assets
Remainder of fiscal 2018	516		516
2,019	2,056		2,056
2,020	2,056		2,056
2,021	2,056		2,056
2,022	2,041		2,041
Thereafter	4,732		4,732
Intangible assets, net	13,457		13,457		8,907
Components of accrued expenses
Accrued payroll and personnel costs	25,361		25,361		25,131
Other	10,113		10,113		5,170
Total accrued expenses	35,474		35,474		30,301
Client relationships
Intangible assets
Intangible assets	17,966		$ 17,966		12,580
Useful life			9 years
Non-solicitation agreements
Intangible assets
Intangible assets	$ 600		$ 600		$ 360
Minimum | Non-solicitation agreements
Intangible assets
Useful life			2 years
Maximum | Non-solicitation agreements
Intangible assets
Useful life			4 years

Funds Held For Clients And Co27

Funds Held For Clients And Corporate Investments - Reconciliation (Details) $ in Thousands	Mar. 31, 2018USD ($)
Funds Held For Clients And Corporate Investments [Line Items]
Amortized cost of funds held for clients' cash and cash equivalents	$ 1,272,771
Funds held for clients' cash and cash equivalents, gross unrealized losses	4
Fair value of funds held for clients' cash and cash equivalents	1,272,767
Available-for-sale Debt Securities
Amortized cost	75,164
Gross unrealized gains	3
Gross unrealized losses	(249)
Fair value	74,918
Total investments at amortized cost	1,347,935
Total investments gross unrealized gain	3
Total investments gross unrealized loss	(253)
Total investments at fair value	1,347,685
Corporate bonds
Available-for-sale Debt Securities
Amortized cost	33,958
Gross unrealized gains	3
Gross unrealized losses	(168)
Fair value	33,793
Commercial paper
Available-for-sale Debt Securities
Amortized cost	29,165
Gross unrealized losses	(16)
Fair value	29,149
Asset-backed securities
Available-for-sale Debt Securities
Amortized cost	12,041
Gross unrealized losses	(65)
Fair value	$ 11,976

Funds Held For Clients And Co28

Funds Held For Clients And Corporate Investments - Classification (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Jun. 30, 2017
Funds Held For Clients And Corporate Investments [Line Items]
Funds held for clients	$ 1,347,522	$ 1,347,522	$ 942,459
Prepaid expenses and other	163	163
Total investments at fair value	1,347,685	1,347,685
Available-for-sale securities in a continuous unrealized loss position
Fair market value of available-for-sale securities in an unrealized loss position less than 12 months	70,498	70,498
Unrealized loss on available-for-sale securities in a continuous loss position for less than 12 months		249
Available-for-sale securities in a continuous loss position for more than 12 months	0	0
Gross realized gains and losses on the sale of available-for-sale securities	0	0
OTTI recognized in AOCI	0	0
Reclassification out of Accumulated Other Comprehensive Loss
Available-for-sale securities in a continuous unrealized loss position
Gross realized gains and losses on the sale of available-for-sale securities	0	0
Corporate bonds
Available-for-sale securities in a continuous unrealized loss position
Fair market value of available-for-sale securities in an unrealized loss position less than 12 months	31,231	31,231
Unrealized loss on available-for-sale securities in a continuous loss position for less than 12 months		168
Commercial paper
Available-for-sale securities in a continuous unrealized loss position
Fair market value of available-for-sale securities in an unrealized loss position less than 12 months	27,291	27,291
Unrealized loss on available-for-sale securities in a continuous loss position for less than 12 months		16
Asset-backed securities
Available-for-sale securities in a continuous unrealized loss position
Fair market value of available-for-sale securities in an unrealized loss position less than 12 months	$ 11,976	11,976
Unrealized loss on available-for-sale securities in a continuous loss position for less than 12 months		$ 65

Funds Held For Clients And Co29

Funds Held For Clients And Corporate Investments - Maturities (Details) $ in Thousands	Mar. 31, 2018USD ($)
Available-for-sale maturities, amortized cost
One year or less	$ 53,150
One year to two years	20,410
Two years to three years	1,604
Total available-for-sale securities	75,164
Available-for-sale maturities, fair value
One year or less	53,036
One year to two years	20,275
Two years to three years	1,607
Total available-for-sale securities	$ 74,918

Fair Value Measurement (Details

Fair Value Measurement (Details) $ in Thousands	Mar. 31, 2018USD ($)
Fair value measurements
Funds held for clients' cash and cash equivalents	$ 1,272,767
Available-for-sale securities:
Available for sale debt securities	74,918
Total investments at fair value	1,347,685
Fair value asset transfers
Transfers from level 1 to level 2	0
Transfers from level 2 to level 1	0
Fair Value, Inputs, Level 1
Fair value measurements
Funds held for clients' cash and cash equivalents	1,247,604
Available-for-sale securities:
Total investments at fair value	1,247,604
Fair Value, Inputs, Level 2
Fair value measurements
Funds held for clients' cash and cash equivalents	25,163
Available-for-sale securities:
Available for sale debt securities	74,918
Total investments at fair value	100,081
Fair Value, Inputs, Level 3
Available-for-sale securities:
Available for sale debt securities	0
Corporate bonds
Available-for-sale securities:
Available for sale debt securities	33,793
Corporate bonds | Fair Value, Inputs, Level 2
Available-for-sale securities:
Available for sale debt securities	33,793
Commercial paper
Available-for-sale securities:
Available for sale debt securities	29,149
Commercial paper | Fair Value, Inputs, Level 2
Available-for-sale securities:
Available for sale debt securities	29,149
Asset-backed securities
Available-for-sale securities:
Available for sale debt securities	11,976
Asset-backed securities | Fair Value, Inputs, Level 2
Available-for-sale securities:
Available for sale debt securities	$ 11,976

Benefit Plans - General Informa

Benefit Plans - General Information (Details) - shares shares in Thousands	Jan. 01, 2018	Mar. 31, 2018
Equity Incentive Plans
Equity Incentive Plans
Increase in number of common shares available for grant		2,367
Number of shares of common stock reserved for issuance		13,883
Number of shares subject to outstanding options or awards		3,848
2008 Plan
Equity Incentive Plans
Awards issued (in shares)		0
Awards issuable (in shares)		0
2014 Plan
Equity Incentive Plans
Potential additional shares available for grant (as a percent)		4.50%
Increase in number of common shares available for grant	2,367

Benefit Plans - Incentive Plans

Benefit Plans - Incentive Plans Activity (Details) - shares shares in Thousands	Jan. 01, 2018	Mar. 31, 2018
Equity Incentive Plans
Shares Available for Grant
Balance at the beginning of the period		8,227
January 1, 2018 Evergreen provision increase		2,367
RSUs granted		(884)
Shares withheld in settlement of taxes and/or exercise price		339
Forfeitures		45
Balance at the end of the period		10,035
2008 Plan
Shares Available for Grant
Shares removed		(59)
2014 Plan
Shares Available for Grant
January 1, 2018 Evergreen provision increase	2,367

Benefit Plans - Compensation Ex

Benefit Plans - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Benefit Plans
Total stock-based compensation expense	$ 7,467	$ 6,247	$ 21,891	$ 18,695
Stock-based compensation expense capitalized	550	540	1,454	1,412
Cost of revenue - recurring
Benefit Plans
Total stock-based compensation expense	728	485	2,084	1,621
Cost of revenue - non-recurring
Benefit Plans
Total stock-based compensation expense	358	363	1,107	1,031
Sales and marketing
Benefit Plans
Total stock-based compensation expense	1,537	1,672	5,680	4,880
Research and development
Benefit Plans
Total stock-based compensation expense	926	797	2,742	2,461
General and administrative
Benefit Plans
Total stock-based compensation expense	$ 3,918	$ 2,930	$ 10,278	$ 8,702

Benefit Plans - Stock Option Ac

Benefit Plans - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Vesting period
Expiration period			10 years
Options Outstanding, Number of Shares
Balance at the beginning of the period			2,751
Options granted			0	0
Options forfeited			(5)
Options exercised			(772)
Balance at the end of the period	1,974		1,974		2,751
Options Outstanding, Weighted average exercise price
Balance at the beginning of the period (in dollars per share)			$ 11.54
Options forfeited (in dollars per share)			18.41
Options exercised (in dollars per share)			9.28
Balance at the end of the period (in dollars per share)	$ 12.40		$ 12.40		$ 11.54
Options Additional Disclosures
Weighted average remaining contractual term			5 years 3 months 4 days		5 years 8 months 9 days
Aggregate intrinsic value, at the beginning of the period			$ 92,556
Weighted average remaining contractual term of options exercisable at the end of the period (years)			5 years 1 month 24 days
Aggregate intrinsic value, at the end of the period	$ 76,638		$ 76,638		$ 92,556
Options exercisable at the end of the period (in shares)	1,848		1,848
Options exercisable at the end of the period, weighted average exercise price (in dollars per share)	$ 11.23		$ 11.23
Options exercisable intrinsic value	$ 73,936		$ 73,936
Total intrinsic value of options exercised	$ 3,758	$ 2,813	$ 31,013	$ 8,352
Options vested and expected to vest
Number of shares	1,970		1,970
Weighted average exercise price	$ 12.36		$ 12.36
Weighted average remaining contractual term			5 years 3 months
Aggregate intrinsic value	$ 76,563		$ 76,563
Unrecognized Compensation Costs Not yet Recognized
Total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options	$ 262		$ 262
Weighted average period to recognize unrecognized compensation cost			10 months 24 days
Minimum
Vesting period
Vesting period			3 years
Maximum
Vesting period
Vesting period			4 years

Benefit Plans - RSU activity (D

Benefit Plans - RSU activity (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Mar. 31, 2018USD ($)$ / sharesshares
Unrecognized Compensation Costs Not yet Recognized
Total unrecognized compensation cost, net of estimated forfeitures | $	$ 34,872
Weighted average period to recognize unrecognized compensation cost	1 year 10 months 10 days
RSUs Outstanding Rollforward, Units
RSU Balance at the beginning of the period | shares	1,455
RSUs granted | shares	884
RSUs vested | shares	(425)
RSUs forfeited | shares	(40)
RSU Balance at the end of the period | shares	1,874
RSUs expected to vest at the end of the period | shares	1,635
RSUs Outstanding, Weighted average grant date fair value
RSU Balance at the beginning of the period | $ / shares	$ 39.96
RSUs granted | $ / shares	45.95
RSUs vested | $ / shares	39.31
RSUs cancelled/forfeited | $ / shares	41.73
RSU Balance at the end of the period | $ / shares	42.89
RSUs expected to vest at the end of the period | $ / shares	$ 42.69
Maximum
Vesting period
Vesting period	4 years

Benefit Plans - ESPP Informatio

Benefit Plans - ESPP Information (Details) - USD ($) shares in Thousands, $ in Thousands	Jan. 01, 2018	Nov. 15, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Equity Incentive Plans
Compensation expense			$ 7,467	$ 6,247	$ 21,891	$ 18,695
Employee stock purchase plan shares
Equity Incentive Plans
Percentage of employee compensation, maximum			10.00%		10.00%
Percentage of fair market value as a purchase price					85.00%
Maximum value of purchase per employee					$ 25
Number of shares per employee, maximum					2
Period during which shares can be purchased					1 year
Number of shares of common stock reserved for issuance			1,166		1,166
Actual increase in number of shares reserved for issuance	395
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		53
Compensation expense			$ 323	$ 304	$ 971	$ 967
Valuation assumptions:
Expected dividend yield					0.00%	0.00%
Expected term (years)					6 months	6 months
Employee stock purchase plan shares | Minimum
Valuation assumptions:
Expected volatility					28.30%	38.90%
Risk-free interest rate					1.02%	0.28%
Employee stock purchase plan shares | Maximum
Equity Incentive Plans
Offering period					27 months
Valuation assumptions:
Expected volatility					39.10%	53.40%
Risk-free interest rate					1.35%	0.61%

Benefit Plans - 401(k) Plan (De

Benefit Plans - 401(k) Plan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Benefit Plans
401(k) Plan Matching contributions by the Company as percentage of employees' contributions			50.00%
401(k) Plan Maximum contributions by the Company as percentage of employees' gross pay			8.00%
401(k) Plan contributions	$ 1,276	$ 1,055	$ 3,382	$ 2,732

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Anti-dilutive securities excluded from diluted per share calculation
Anti-dilutive securities excluded	28	155	121	835
Numerator:
Net income	$ 39,177	$ 14,801	$ 40,151	$ 10,562
Weighted-average shares used in computing net income per share:
Basic (in shares)	52,615	51,447	52,334	51,353
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units and employee stock purchase plan shares	2,415	2,555	2,383	2,634
Diluted (in shares)	55,030	54,002	54,717	53,987
Net income per share:
Basic (in dollars per share)	$ 0.74	$ 0.29	$ 0.77	$ 0.21
Diluted (in dollars per share)	$ 0.71	$ 0.27	$ 0.73	$ 0.20
Employee stock options
Anti-dilutive securities excluded from diluted per share calculation
Anti-dilutive securities excluded		145		145
Restricted stock units
Anti-dilutive securities excluded from diluted per share calculation
Anti-dilutive securities excluded	28	10	121	690

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Taxes
Income tax expense (benefit)	$ (18,497)		$ 32	$ (18,573)	$ 164
Release of valuation allowance	22,585
Excess tax benefits from employee stock exercises	10,973
Income tax provision before valuation allowance adjustment and other adjustments	5,260
Valuation allowance	541			$ 541
Effect of Tax Cuts and Jobs Act of 2017, Accounting Incomplete, Provisional
Tax benefit attributable to the rate change effect on the deferred tax liability for indefinite-lived intangible assets		$ 156
Provisional amount of income tax expense attributable to a revaluation of deferred tax assets from change in tax rate	$ 9,817