Paylocity Holding (PCTY) 10-Q 31 Oct 19 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Oct. 24, 2019
Document and Entity Information
Entity Central Index Key	0001591698
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-36348
Entity Registrant Name	PAYLOCITY HOLDING CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4066644
Entity Address, Address Line One	1400 American Lane
Entity Address, City or Town	Schaumburg
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60173
City Area Code	847
Local Phone Number	463-3200
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PCTY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		53,512,911
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 100,529	$ 132,476
Corporate investments	29,130	29,314
Accounts receivable, net	3,906	4,358
Deferred contract costs	23,703	21,677
Prepaid expenses and other	13,941	13,895
Total current assets before funds held for clients	171,209	201,720
Funds held for clients	1,154,527	1,394,469
Total current assets	1,325,736	1,596,189
Capitalized internal-use software, net	29,634	27,486
Property and equipment, net	72,584	70,056
Operating lease right-of-use assets	50,865
Intangible assets, net	10,188	10,751
Goodwill	9,590	9,590
Long-term deferred contract costs	89,383	81,422
Long-term prepaid expenses and other	3,380	1,975
Deferred income tax assets	7,114	6,472
Total assets	1,598,474	1,803,941
Current liabilities:
Accounts payable	5,061	3,954
Accrued expenses	51,496	57,625
Total current liabilities before client fund obligations	56,557	61,579
Client fund obligations	1,154,527	1,394,469
Total current liabilities	1,211,084	1,456,048
Deferred rent		31,263
Long-term operating lease liabilities	76,347
Other long-term liabilities	1,430	1,723
Deferred income tax liabilities, net	154	6,943
Total liabilities	1,289,015	1,495,977
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2019 and September 30, 2019
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2019 and September 30, 2019; 53,075 shares issued and outstanding at June 30, 2019 and 53,511 shares issued and outstanding at September 30, 2019	54	53
Additional paid-in capital	195,566	207,982
Retained earnings	113,723	99,817
Accumulated other comprehensive income	116	112
Total stockholders' equity	309,459	307,964
Total liabilities and stockholders' equity	$ 1,598,474	$ 1,803,941

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2019	Jun. 30, 2019
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	53,511	53,075
Common Stock, shares outstanding	53,511	53,075

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Recurring and other revenue	$ 121,873	$ 97,002
Interest income on funds held for clients	4,847	3,502
Total revenues	126,720	100,504
Cost of revenues:
Cost of revenues	42,630	35,942
Gross profit	84,090	64,562
Operating expenses:
Sales and marketing	36,957	26,418
Research and development	14,394	11,400
General and administrative	26,739	22,968
Total operating expenses	78,090	60,786
Operating income	6,000	3,776
Other income	474	269
Income before income taxes	6,474	4,045
Income tax benefit	(7,432)	(5,807)
Net income	13,906	9,852
Other comprehensive income, net of tax
Unrealized gains on securities, net of tax	4	15
Total other comprehensive income, net of tax	4	15
Comprehensive income	$ 13,910	$ 9,867
Net income per share:
Basic (in dollars per share)	$ 0.26	$ 0.19
Diluted (in dollars per share)	$ 0.25	$ 0.18
Weighted-average shares used in computing net income per share:
Basic (in shares)	53,287	52,865
Diluted (in shares)	55,713	55,487

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings. (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Jun. 30, 2018	$ 53	$ 219,588	$ (6,678)	$ (139)	$ 212,824
Balance (in shares) at Jun. 30, 2018	52,758
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		10,050			10,050
Stock options exercised		2,241			2,241
Stock options exercised (in shares)	182
Issuance of common stock upon vesting of restricted stock units (in shares)	579
Net settlement for taxes and/or exercise price related to equity awards		(20,037)			(20,037)
Net settlement for taxes and/or exercise price related to equity awards (in shares)	(281)
Repurchases of common shares		(34,991)			(34,991)
Repurchases of common shares (in shares)	(442)
Unrealized gains on securities, net of tax				15	15
Net income			9,852		9,852
Balance at Sep. 30, 2018	$ 53	176,851	55,846	(124)	232,626
Balance (in shares) at Sep. 30, 2018	52,796
Increase (Decrease) in Stockholders' Equity
Cumulative effect of change in accounting policy (adoption of Topic 606)			52,672		52,672
Balance at Jun. 30, 2019	$ 53	207,982	99,817	112	$ 307,964
Balance (in shares) at Jun. 30, 2019	53,075				53,075
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		12,718			$ 12,718
Stock options exercised		120			120
Stock options exercised (in shares)	8
Issuance of common stock upon vesting of restricted stock units	$ 1	(1)
Issuance of common stock upon vesting of restricted stock units (in shares)	677
Net settlement for taxes and/or exercise price related to equity awards		(25,253)			(25,253)
Net settlement for taxes and/or exercise price related to equity awards (in shares)	(249)
Unrealized gains on securities, net of tax				4	4
Net income			13,906		13,906
Balance at Sep. 30, 2019	$ 54	$ 195,566	$ 113,723	$ 116	$ 309,459
Balance (in shares) at Sep. 30, 2019	53,511				53,511

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income		$ 13,906	$ 9,852	[1]
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense		12,062	9,425	[1]
Depreciation and amortization expense		8,933	8,232	[1]
Deferred income tax benefit		(7,431)	(5,809)	[1]
Provision for doubtful accounts			30	[1]
Net accretion of discounts and amortization of premiums on available-for-sale securities		(485)	(407)	[1]
Amortization of debt issuance costs		33
Loss on disposal of equipment		85	241	[1]
Changes in operating assets and liabilities:
Accounts receivable		452	431	[1]
Deferred contract costs		(9,987)	(7,169)	[1]
Prepaid expenses and other		(89)	(853)	[1]
Accounts payable		39	(415)	[1]
Accrued expenses and other		(9,253)	(6,214)	[1]
Net cash provided by operating activities		8,265	7,344	[1]
Cash flows from investing activities:
Purchases of available-for-sale securities and other		(63,621)	(75,807)	[1]
Proceeds from sales and maturities of available-for-sale securities		45,154	56,446	[1]
Capitalized internal-use software costs		(6,714)	(5,001)
Purchases of property and equipment		(8,033)	(2,428)	[1]
Net cash used in investing activities		(33,214)	(26,790)	[1]
Cash flows from financing activities:
Net change in client fund obligations		(239,942)	(57,458)	[1]
Repurchases of common shares	[1]		(34,679)
Proceeds from exercise of stock options	[1]		85
Taxes paid related to net share settlement of equity awards		(24,749)	(17,880)	[1]
Payment of debt issuance costs		(669)
Net cash used in financing activities		(265,360)	(109,932)	[1]
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents		(290,309)	(129,378)	[1]
Cash, cash equivalents and funds held for clients' cash and cash equivalents-beginning of period		1,426,143	1,239,731	[1]
Cash, cash equivalents and funds held for clients' cash and cash equivalents-end of period		1,135,834	1,110,353	[1]
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment, accrued but not paid		1,249	1,064	[1]
Repurchases of common shares, accrued but not paid	[1]		313
Supplemental Disclosure of Cash Flow Information
Cash paid for income taxes, net of refunds		11	351	[1]
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents		100,529	63,662	[1]
Funds held for clients' cash and cash equivalents		1,035,305	1,046,691	[1]
Total cash, cash equivalents and funds held for clients' cash and cash equivalents		$ 1,135,834	$ 1,110,353	[1]
[1]	Certain amounts have been reclassified to reflect the adoption of Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” Refer to Note 2 of the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

Organization and Description of

Organization and Description of Business	3 Months Ended
	Sep. 30, 2019
Organization and Description of Business
Organization and Description of Business	(1) Organization and Description of Business ​ Paylocity Holding Corporation (the “Company”) is a cloud-based provider of payroll and human capital management software solutions for medium-sized organizations. Services are provided in a Software-as-a-Service (“SaaS”) delivery model utilizing the Company’s cloud-based platform. The Company’s comprehensive product suite delivers a unified platform that allows clients to make strategic decisions in the areas of payroll, core HR, workforce management, talent and benefits. ​

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2019
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 ​ 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. 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. ​ Beginning in fiscal 2020, the Company simplified the presentation of revenue and cost of revenues on its Unaudited Consolidated Statements of Operations and Comprehensive Income. The line items “Recurring fees” and “Implementation services and other” have been consolidated into one revenue line: “Recurring and other revenue”. Likewise, the line items “Cost of revenues – recurring revenues” and “Cost of revenues – implementation services and other” have been consolidated into one line: “Cost of revenues”. The Company changed the presentation of revenue and cost of revenues as Implementation services and other has become a smaller component of its overall revenue mix due to the human capital management (“HCM”) suite becoming a larger part of the portfolio. Previously reported results for the three-month period ended September 30, 2018 have been reclassified to conform to the current presentation. ​ (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 months ended September 30, 2019 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, 2019 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 9, 2019. ​ (c) 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 is based on the annual effective rate method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax 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. ​ (d) Recently Adopted Accounting Standards ​ In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , The Company adopted the new standard on July 1, 2019 using the modified retrospective method and the transition relief guidance provided by the FASB in ASU 2018-11, Leases (Topic 842): Targeted Improvements. Consequently, the Company did not update financial information or provide disclosures required under the new standard for dates and periods prior to July 1, 2019. The Company elected the package of practical expedients and did not reassess prior conclusions on whether contracts are or contain a lease, lease classification, and initial direct costs. In addition, the Company adopted the lessee practical expedient to combine lease and non-lease components for all asset classes and elected to not recognize ROU assets and lease liabilities for leases with a term of 12 months or less. ​ Adoption of the new standard resulted in the Company recording of operating lease ROU assets and operating lease liabilities of $52,083 and $83,852, respectively, as of July 1, 2019. The ROU assets were recorded net of $31,769 in deferred rent adjustments that were previously recorded in Accrued expenses and Deferred rent on the Consolidated Balance Sheets as of June 30, 2019. The adoption of this standard did not result in any cumulative-effect adjustments to Retained earnings. Additionally, there was no impact on the Company’s unaudited consolidated statements of operations and comprehensive income or the unaudited statement of cash flows as a result of the adoption of Topic 842 for the three months ended September 30, 2019. ​ Refer to Note 8 for additional disclosures over the Company’s leases. ​ (e) Recently Issued Accounting Standards ​ ​ 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. ​

Revenue

Revenue	3 Months Ended
	Sep. 30, 2019
Revenue
Revenue	(3) Revenue ​ The Company derives its revenue from contracts predominantly from recurring and non-recurring service fees. While the majority of its agreements are generally cancellable by the client on 60 days’ notice or less, the Company also has term arrangements, which are generally two years in length. Recurring fees are derived from payroll, timekeeping, and HR-related cloud-based computing services. The majority of the Company’s recurring fees are satisfied over time as services are provided. The performance obligations related to payroll services are satisfied upon the processing of the client’s payroll with the fee charged and collected based on a per employee per payroll frequency fee. The performance obligations related to time and attendance services and HR related services are satisfied over time each month with the fee charged and collected based on a per employee per month fee. For subscription based fees which can include payroll, time and attendance, and HR related services, the Company recognizes the applicable recurring fees over time each month with the fee charged and collected based on a per employee per month fee. Non-recurring service fees consist mainly of nonrefundable implementation fees, which involve setting the client up in, and loading data into, the Company’s cloud-based modules. These implementation activities are considered set-up activities. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract. Implementation fees are deferred and amortized generally over a period up to 24 months. ​ Disaggregation of revenue ​ The following table disaggregates revenue by Recurring fees and Implementation services and other, which it believes depicts the nature, amount and timing of its revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ ​ 2018 ​ 2019 Recurring fees ​ $ 95,761 ​ $ 117,777 Implementation services and other ​ 1,241 ​ 4,096 Total revenues from contracts ​ $ 97,002 ​ $ 121,873 ​ Deferred revenue ​ The timing of revenue recognition for recurring revenue is consistent with the timing of invoicing as they occur simultaneously upon the client payroll-processing period or by month. As such, the Company does not recognize contract assets or liabilities related to recurring revenue. ​ The nonrefundable upfront fees related to implementation services are invoiced with the client’s first payroll period. The Company defers and recognizes these nonrefundable upfront fees generally over a period up to 24 months based on the type of contract. The following table summarizes the changes in deferred revenue (i.e. contract liability) related to these nonrefundable upfront fees as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ ​ 2018 ​ 2019 Balance at beginning of the period ​ $ — ​ $ 6,289 Deferral of revenue ​ ​ 2,518 ​ ​ 3,071 Revenue recognized ​ ​ (499) ​ ​ (2,780) Balance at end of the period ​ $ 2,019 ​ $ 6,580 ​ Deferred revenue related to these nonrefundable upfront fees are recorded within Accrued expenses and Other long-term liabilities on the Unaudited Consolidated Balance Sheets. The Company expects to recognize these deferred revenue balances of $4,402 in fiscal 2020, $1,962 in fiscal 2021, $216 in fiscal 2022 and thereafter. ​ Deferred contract costs ​ The Company defers certain selling and commission costs that meet the capitalization criteria under ASC 340-40. The Company also capitalizes certain costs to fulfill a contract related to its proprietary products if they are identifiable, generate or enhance resources used to satisfy future performance obligations and are expected to be recovered under ASC 340-40. Implementation fees are treated as nonrefundable upfront fees and the related implementation costs are required to be capitalized and amortized over the expected period of benefit, which is the period in which the Company expects to recover the costs and enhance its ability to satisfy future performance obligations. ​ The Company utilizes the portfolio approach to account for both the cost of obtaining a contract and the cost of fulfilling a contract. These capitalized costs are amortized over the expected period of benefit, which has been determined to be over 7 years based on the Company’s average client life and other qualitative factors, including rate of technological changes. The Company does not incur any additional costs to obtain or fulfill contracts upon renewal. The Company recognizes additional selling and commission costs and fulfillment costs when an existing client purchases additional services. These additional costs only relate to the additional services purchased and do not relate to the renewal of previous services. ​ The following tables present the deferred contract costs and the related amortization expense for these deferred contract costs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ Ending ​ ​ Balance ​ Capitalized ​ ​ ​ ​ Balance ​ ​ July 1, 2018 ​ Costs ​ Amortization ​ September 30, 2018 Costs to obtain a new contract ​ $ 68,107 ​ $ 5,711 ​ $ (3,885) ​ $ 69,933 Costs to fulfill a contract ​ ​ — ​ ​ 5,474 ​ ​ (131) ​ ​ 5,343 Total ​ $ 68,107 ​ $ 11,185 ​ $ (4,016) ​ $ 75,276 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ Ending ​ ​ Balance ​ Capitalized ​ ​ ​ ​ Balance ​ ​ July 1, 2019 ​ Costs ​ Amortization ​ September 30, 2019 Costs to obtain a new contract ​ $ 82,103 ​ $ 9,486 ​ $ (4,901) ​ $ 86,688 Costs to fulfill a contract ​ ​ 20,996 ​ ​ 6,366 ​ ​ (964) ​ ​ 26,398 Total ​ $ 103,099 ​ $ 15,852 ​ $ (5,865) ​ $ 113,086 ​ Deferred contract costs are recorded within Deferred contract costs and Long-term deferred contract costs on the Unaudited Consolidated Balance Sheets. Amortization of deferred contract costs is recorded in Cost of revenues, Sales and marketing, and General and administrative in the Unaudited Consolidated Statements of Operations and Comprehensive Income. ​ Remaining Performance Obligations ​ The Company’s remaining performance obligations related to minimum monthly fees on its term based contracts was approximately $43,142 as of September 30, 2019, which will be generally recognized over the next 24 months . This balance excludes the value of unsatisfied performance obligations for contracts that have an original expected duration of one year or less and contracts for which the variable consideration is allocated entirely to wholly unsatisfied performance obligations.

Balance Sheet Information

Balance Sheet Information	3 Months Ended
	Sep. 30, 2019
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, 2019 $ 473 Charged to expense ​ — ​ Write-offs ​ ​ (51) ​ Balance at September 30, 2019 ​ $ 422 ​ ​ Capitalized internal-use software and accumulated amortization were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2019 2019 Capitalized internal-use software ​ $ 90,991 ​ $ 97,507 ​ Accumulated amortization ​ (63,505) ​ (67,873) ​ Capitalized internal-use software, net ​ $ 27,486 ​ $ 29,634 ​ ​ Amortization of capitalized internal-use software costs is included in Cost of revenues and amounted to $4,212 and $4,457 for the three months ended September 30, 2018 and 2019, respectively. ​ Property and equipment, net consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2019 2019 Office equipment ​ $ 4,406 ​ $ 4,497 ​ Computer equipment ​ 36,798 ​ 41,204 ​ Furniture and fixtures ​ 11,857 ​ 12,748 ​ Software ​ 6,332 ​ 6,399 ​ Leasehold improvements ​ 44,350 ​ 44,656 ​ Time clocks rented by clients ​ 4,679 ​ 4,755 ​ Total ​ 108,422 ​ 114,259 ​ Accumulated depreciation ​ (38,366) ​ (41,675) ​ Property and equipment, net ​ $ 70,056 ​ $ 72,584 ​ ​ Depreciation expense amounted to $3,457 and $3,913 for the three months ended September 30, 2018 and 2019, respectively. ​ The Company’s amortizable intangible assets and estimated useful lives are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ Useful ​ ​ 2019 2019 Life Client relationships ​ $ 18,130 ​ $ 18,130 ​ 7 - 9 years ​ Non-solicitation agreements ​ 600 ​ ​ 600 ​ 2 - 4 years ​ Total ​ 18,730 ​ ​ 18,730 ​ ​ ​ Accumulated amortization ​ (7,979) ​ ​ (8,542) ​ ​ ​ Intangible assets, net ​ $ 10,751 ​ $ 10,188 ​ ​ ​ ​ Amortization expense for acquired intangible assets was $563 for both the three months ended September 30, 2018 and 2019. ​ Future amortization expense for acquired intangible assets as of September 30, 2019 is as follows: ​ ​ ​ ​ ​ ​ Remainder of fiscal 2020 $ 1,688 Fiscal 2021 ​ 2,251 ​ Fiscal 2022 ​ 2,232 ​ Fiscal 2023 ​ 2,118 ​ Fiscal 2024 ​ 1,356 ​ Thereafter ​ 543 ​ Total ​ $ 10,188 ​ ​ The components of accrued expenses were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2019 2019 Accrued payroll and personnel costs ​ $ 39,095 ​ $ 26,979 ​ Operating lease liabilities ​ ​ — ​ ​ 7,731 ​ Deferred revenue ​ ​ 5,572 ​ ​ 6,239 ​ Other ​ 12,958 ​ 10,547 ​ Total accrued expenses ​ $ 57,625 ​ $ 51,496 ​ ​

Corporate Investments and Funds

Corporate Investments and Funds Held for Clients	3 Months Ended
	Sep. 30, 2019
Corporate Investments and Funds Held for Clients
Corporate Investments and Funds Held for Clients	​ (5) Corporate Investments and Funds Held for Clients ​ Corporate investments and funds held for clients consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ ​ Type of Issue ​ cost ​ gains losses Fair value Cash and cash equivalents ​ $ 132,478 ​ $ — ​ $ (2) ​ $ 132,476 Funds held for clients' cash and cash equivalents ​ ​ 1,293,673 ​ ​ — ​ ​ (6) ​ ​ 1,293,667 Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 63,397 ​ ​ 33 ​ ​ (2) ​ ​ 63,428 Corporate bonds ​ ​ 27,044 ​ ​ 59 ​ ​ (4) ​ ​ 27,099 Asset-backed securities ​ ​ 26,488 ​ ​ 55 ​ ​ (3) ​ ​ 26,540 U.S. treasury securities ​ ​ 13,736 ​ ​ 21 ​ ​ — ​ ​ 13,757 Total available-for-sale securities (1) ​ ​ 130,665 ​ ​ 168 ​ ​ (9) ​ ​ 130,824 Total investments ​ $ 1,556,816 ​ $ 168 ​ $ (17) ​ $ 1,556,967 ​ (1) Included within the fair value of total available-for-sale securities above is $30,022 of corporate investments and $100,802 of funds held for clients. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ ​ Type of Issue ​ cost ​ gains losses Fair value Cash and cash equivalents ​ $ 100,530 ​ $ — ​ $ (1) ​ $ 100,529 Funds held for clients' cash and cash equivalents ​ ​ 1,035,307 ​ ​ — ​ ​ (2) ​ ​ 1,035,305 Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 81,505 ​ ​ 8 ​ ​ (3) ​ ​ 81,510 Corporate bonds ​ ​ 17,594 ​ ​ 54 ​ ​ (1) ​ ​ 17,647 Asset-backed securities ​ ​ 29,513 ​ ​ 88 ​ ​ (4) ​ ​ 29,597 U.S. treasury securities ​ ​ 21,004 ​ ​ 17 ​ ​ — ​ ​ 21,021 Total available-for-sale securities (2) ​ ​ 149,616 ​ ​ 167 ​ ​ (8) ​ ​ 149,775 Total investments ​ $ 1,285,453 ​ $ 167 ​ $ (11) ​ $ 1,285,609 ​ (2) Included within the fair value of total available-for-sale securities above is $30,553 of corporate investments and $119,222 of funds held for clients. ​ Cash and cash equivalents and funds held for clients’ cash and cash equivalents include demand deposit accounts, money market funds, commercial paper and short-term U.S. treasury securities as of June 30, 2019 and September 30, 2019. ​ Classification of investments on the unaudited consolidated balance sheets is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2019 2019 Cash and cash equivalents ​ $ 132,476 ​ $ 100,529 Corporate investments ​ ​ 29,314 ​ ​ 29,130 Funds held for clients ​ ​ 1,394,469 ​ ​ 1,154,527 Long-term prepaid expenses and other ​ ​ 708 ​ ​ 1,423 Total investments ​ $ 1,556,967 ​ $ 1,285,609 ​ Available-for-sale securities that have been in an unrealized loss position for a period of less and greater than 12 months are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ Securities in an ​ Securities in an ​ ​ ​ ​ ​ ​ ​ ​ unrealized loss ​ unrealized loss ​ ​ ​ ​ ​ ​ ​ ​ position for less ​ position for greater ​ ​ ​ ​ ​ ​ ​ ​ than 12 months ​ than 12 months ​ Total ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ ​ unrealized ​ ​ ​ ​ unrealized ​ ​ ​ ​ unrealized ​ ​ ​ ​ ​ losses ​ Fair value ​ losses ​ Fair value ​ losses ​ Fair value Commercial paper ​ $ (2) ​ $ 19,055 ​ $ — ​ $ — ​ $ (2) ​ $ 19,055 Corporate bonds ​ ​ (1) ​ ​ 1,500 ​ ​ (3) ​ ​ 3,701 ​ ​ (4) ​ ​ 5,201 Asset-backed securities ​ ​ (1) ​ ​ 386 ​ ​ (2) ​ ​ 2,958 ​ ​ (3) ​ ​ 3,344 Total available-for-sale securities ​ $ (4) ​ $ 20,941 ​ $ (5) ​ $ 6,659 ​ $ (9) ​ $ 27,600 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ Securities in an ​ Securities in an ​ ​ ​ ​ ​ ​ ​ ​ unrealized loss ​ unrealized loss ​ ​ ​ ​ ​ ​ ​ ​ position for less ​ position for greater ​ ​ ​ ​ ​ ​ ​ ​ than 12 months ​ than 12 months ​ Total ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ ​ unrealized ​ ​ ​ ​ unrealized ​ ​ ​ ​ unrealized ​ ​ ​ ​ ​ losses ​ Fair value ​ losses ​ Fair value ​ losses ​ Fair value Commercial paper ​ $ (3) ​ $ 33,468 ​ $ — ​ $ — ​ $ (3) ​ $ 33,468 Corporate bonds ​ ​ — ​ ​ — ​ ​ (1) ​ ​ 1,100 ​ ​ (1) ​ ​ 1,100 Asset-backed securities ​ ​ (3) ​ ​ 6,289 ​ ​ (1) ​ ​ 417 ​ ​ (4) ​ ​ 6,706 Total available-for-sale securities ​ $ (6) ​ $ 39,757 ​ $ (2) ​ $ 1,517 ​ $ (8) ​ $ 41,274 ​ 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 income during the three months ended September 30, 2018 or 2019, nor does it believe that OTTI exists in its portfolio as of September 30, 2019. 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 September 30, 2019. ​ The Company did not make any material reclassification adjustments out of accumulated other comprehensive income for realized gains and losses on the sale of available-for-sale securities during the three months ended September 30, 2018 or 2019. Gross realized gains and losses on the sale of available-for-sale securities were immaterial for both the three months ended September 30, 2018 and 2019. ​ Expected maturities of available-for-sale securities at September 30, 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost ​ Fair value One year or less ​ $ 132,958 ​ $ 133,041 One year to two years ​ ​ 16,658 ​ ​ 16,734 Total available-for-sale securities ​ $ 149,616 ​ $ 149,775 ​

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Sep. 30, 2019
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 certain 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, 2019 and September 30, 2019 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 commercial paper, corporate bonds, asset-backed securities and U.S. treasury securities. 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 June 30, 2019 or September 30, 2019, and the Company did not transfer assets between Levels during the three months ended September 30, 2018 or 2019. ​ The fair value level for the Company’s cash and cash equivalents and available-for-sale securities is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ Total ​ Level 1 Level 2 Level 3 Cash and cash equivalents ​ $ 132,476 ​ $ 116,387 ​ $ 16,089 ​ $ — Funds held for clients' cash and cash equivalents ​ ​ 1,293,667 ​ ​ 1,244,856 ​ ​ 48,811 ​ ​ — Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 63,428 ​ ​ — ​ ​ 63,428 ​ ​ — Corporate bonds ​ ​ 27,099 ​ ​ — ​ ​ 27,099 ​ ​ — Asset-backed securities ​ ​ 26,540 ​ ​ — ​ ​ 26,540 ​ ​ — U.S. treasury securities ​ ​ 13,757 ​ ​ — ​ ​ 13,757 ​ ​ — Total available-for-sale securities ​ ​ 130,824 ​ ​ — ​ ​ 130,824 ​ ​ — Total investments ​ $ 1,556,967 ​ $ 1,361,243 ​ $ 195,724 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ Total ​ Level 1 Level 2 Level 3 Cash and cash equivalents ​ $ 100,529 ​ $ 80,410 ​ $ 20,119 ​ $ — Funds held for clients' cash and cash equivalents ​ ​ 1,035,305 ​ ​ 1,004,692 ​ ​ 30,613 ​ ​ — Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 81,510 ​ ​ — ​ ​ 81,510 ​ ​ — Corporate bonds ​ ​ 17,647 ​ ​ — ​ ​ 17,647 ​ ​ — Asset-backed securities ​ ​ 29,597 ​ ​ — ​ ​ 29,597 ​ ​ — U.S. treasury securities ​ ​ 21,021 ​ ​ — ​ ​ 21,021 ​ ​ — Total available-for-sale securities ​ ​ 149,775 ​ ​ — ​ ​ 149,775 ​ ​ — Total investments ​ $ 1,285,609 ​ $ 1,085,102 ​ $ 200,507 ​ $ — ​

Debt

Debt	3 Months Ended
	Sep. 30, 2019
Debt
Debt	(7) Debt In July 2019, the Company entered into a five-year revolving credit agreement with PNC Bank, National Association, and other lenders, which is secured by substantially all of the Company’s assets, subject to certain restrictions. The revolving credit agreement provides for a senior secured revolving credit facility (the “credit facility”) under which the Company may borrow up to $250,000, which may be increased to up to $375,000, subject to obtaining additional lender commitments and certain approvals and satisfying other requirements. The credit facility is scheduled to mature in July 2024. As of September 30, 2019, no amounts have been drawn on the credit facility. The proceeds of any borrowings are to be used to fund working capital, capital expenditures and general corporate purposes, including permitted acquisitions, permitted investments, permitted distributions and share repurchases. The Company may generally borrow, prepay and reborrow under the credit facility and terminate or reduce the lenders’ commitments at any time prior to revolving credit facility expiration without a premium or a penalty, other than customary “breakage” costs with respect to London Interbank Offered Rate (“LIBOR”) revolving loans. Any borrowings under the credit facility will generally bear interest, at the Company’s option, at a rate per annum determined by reference to either the LIBOR (or a replacement index for the LIBOR rate) or an adjusted base rate, in each case plus an applicable margin ranging from 0.875% to 1.375% and 0.0% to 0.375%, respectively, based on the then-applicable net senior secured leverage ratio. Additionally, the Company is required to pay certain commitment, letter of credit fronting and letter of credit participation fees on available and/or undrawn portions of the credit facility. Under the credit facility, the Company is required to comply with certain customary affirmative and negative covenants, including a requirement to maintain a maximum net total leverage ratio of not greater than 4.00 to 1.00, a maximum net senior secured leverage ratio of not greater than 3.50 to 1.00 and a minimum interest coverage ratio of not less than 3.00 to 1.00. As of September 30, 2019, the Company was in compliance with all of the aforementioned covenants. ​

Leases

Leases	3 Months Ended
	Sep. 30, 2019
Leases
Leases	(8) Leases ​ The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets, Accrued expenses, and Long-term operating lease liabilities in the Unaudited Consolidated Balance Sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating lease right-of-use assets also include any lease payments made at or before the commencement date and are reduced by any lease incentives received. The Company’s lease terms may include options to extend or not terminate the lease when it is reasonably certain that it will exercise any such options. For the majority of its leases, the Company concluded that it is not reasonably certain that any renewal options would be exercised, and, therefore, the amounts are not recognized as part of Operating lease right-of-use assets nor Operating lease liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the expected lease term. The Company’s most significant leases are real estate leases of office space. The remaining operating leases are primarily comprised of leases of printers and other equipment. For all leases, the Company has elected the practical expedient permitted under Topic 842 to combine lease and non-lease components. As a result, non-lease components, such as common area or equipment maintenance charges, are accounted for as a single lease element. The Company does not have any finance leases. Fixed lease expense payments are recognized on a straight-line basis over the lease term. Variable lease payments vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time, and are often due to changes in an external market rate or the value of an index (e.g. Consumer Price Index). Certain of the Company’s operating lease agreements include variable payments that are passed through by the landlord, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Variable payments are expensed as incurred and included within variable rent expense. The Company’s lease agreements do not contain material residual value guarantees, restrictions, or covenants. ​ The components of operating lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ September 30, 2019 ​ Operating lease cost ​ $ 2,263 ​ Short-term lease cost ​ ​ 13 ​ Variable lease cost ​ ​ 735 ​ Total lease costs ​ $ 3,011 ​ ​ The classification of the Company’s operating lease right-of-use assets and operating lease liabilities and other supplemental information related to the Company’s operating leases are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ Operating lease right-of-use assets ​ $ 50,865 ​ ​ Accrued expenses ​ $ 7,731 ​ ​ Long-term operating lease liabilities ​ $ 76,347 ​ ​ Weighted-average remaining lease term (years) ​ ​ 10.82 ​ ​ Weighted-average discount rate ​ ​ 3.85 % ​ ​ The following table summarizes supplemental cash flow information related to the Company’s operating leases as of September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ September 30, 2019 ​ Cash paid for amounts included in the measurement of operating lease liabilities ​ $ 2,484 ​ Operating lease assets obtained in exchange for new liabilities ​ $ 268 ​ ​ The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows as of September 30, 2019: ​ ​ ​ ​ ​ ​ Remainder of fiscal 2020 ​ $ 7,922 ​ Fiscal 2021 ​ ​ 10,705 ​ Fiscal 2022 ​ ​ 8,997 ​ Fiscal 2023 ​ ​ 8,684 ​ Fiscal 2024 ​ ​ 8,754 ​ Thereafter ​ ​ 59,152 ​ Total undiscounted cash flows ​ ​ 104,214 ​ Less: Present value discount ​ ​ (20,136) ​ Total operating lease liabilities ​ $ 84,078 ​ ​ The table above excludes $2,594 in the undiscounted future minimum lease payments for operating lease liabilities that had not yet commenced for terms up to 6.25 years. Rent expense was $2,133 for the three months ended September 30, 2018. ​ ​ Future minimum lease payments under non-cancellable operating leases (with initial or remaining terms in excess of one year) as of June 30, 2019 under ASC 840 were as follows: ​ ​ ​ ​ ​ ​ Fiscal 2020 ​ $ 10,449 ​ Fiscal 2021 ​ 11,150 ​ Fiscal 2022 ​ 9,500 ​ Fiscal 2023 ​ 8,840 ​ Fiscal 2024 ​ 8,838 ​ Thereafter ​ 59,401 ​ Total minimum lease payments ​ $ 108,178 ​ ​

Benefit Plans

Benefit Plans	3 Months Ended
	Sep. 30, 2019
Benefit Plans
Benefit Plans	​ (9) 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 may increase each calendar year, continuing through and including January 1, 2024. The number of shares added each year may 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. ​ As of September 30, 2019, the Company had 12,660 shares allocated to the plans, of which 3,221 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 three months ended September 30, 2019: ​ ​ ​ ​ ​ ​ Number of Available for grant at July 1, 2019 ​ 9,759 ​ RSUs granted ​ (629) ​ Shares withheld in settlement of taxes and/or exercise price ​ 249 ​ Forfeitures ​ 61 ​ Shares removed ​ (1) ​ Available for grant at September 30, 2019 ​ 9,439 ​ ​ 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 September 30, ​ ​ 2018 2019 Cost of revenues ​ $ 1,238 ​ $ 1,249 ​ Sales and marketing ​ 1,697 ​ 3,968 ​ Research and development ​ 1,278 ​ 1,278 ​ General and administrative ​ 5,212 ​ 5,567 ​ Total stock-based compensation expense ​ $ 9,425 ​ $ 12,062 ​ ​ In addition, the Company capitalized $625 and $656 in the three months ended September 30, 2018 and 2019, 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 vested 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 three months ended September 30, 2018 or 2019. The table below presents stock option activity during the three months ended September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding Options ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Weighted ​ average ​ ​ ​ ​ ​ ​ ​ average ​ remaining ​ Aggregate ​ ​ Number of ​ exercise ​ contractual ​ intrinsic ​ ​ shares ​ price ​ term (years) ​ value Balance at July 1, 2019 1,525 ​ $ 12.24 3.95 ​ $ 124,373 ​ Options exercised ​ (8) ​ $ 15.93 ​ ​ ​ ​ ​ ​ Balance at September 30, 2019 1,517 ​ $ 12.23 ​ 3.69 ​ $ 129,492 ​ Options vested and exercisable at September 30, 2019 1,517 ​ $ 12.23 ​ 3.69 ​ $ 129,492 ​ ​ The total intrinsic value of options exercised was $12,203 and $671 during the three months ended September 30, 2018 and 2019, respectively. At September 30, 2019, the Company had recognized all stock-based compensation cost related to outstanding stock options and all outstanding options had vested. ​ 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 RSUs vest based on the achievement of certain revenue growth and Adjusted EBITDA margin targets in future fiscal years. ​ ​ The following table represents restricted stock unit activity during the three months ended September 30, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ Units Weighted RSU balance at July 1, 2019 ​ 1,813 ​ $ 53.78 ​ RSUs granted ​ 629 ​ $ 99.48 ​ RSUs vested ​ (677) ​ $ 49.13 ​ RSUs forfeited ​ (61) ​ $ 51.92 ​ RSU balance at September 30, 2019 ​ 1,704 ​ $ 73.06 ​ RSUs expected to vest at September 30, 2019 ​ 1,553 ​ $ 72.52 ​ ​ At September 30, 2019, there was $79,298 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 2.17 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 September 30, 2019, a total of 995 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 may increase each calendar year, continuing through and including January 1, 2024. The number of shares added each year may 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 recorded compensation expense attributable to the ESPP of $439 and $662 for the three months ended September 30, 2018 and 2019, 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ September 30, ​ ​ ​ 2018 ​ ​ 2019 ​ Valuation assumptions: ​ ​ ​ ​ ​ ​ ​ Expected dividend yield ​ 0 % ​ 0 % ​ Expected volatility ​ 33.5 % ​ 38.6 % ​ Expected term (years) ​ 0.5 ​ ​ 0.5 ​ ​ Risk‑free interest rate ​ 2.10 % ​ 2.44 % ​ ​ (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 $1,394 and $2,003 for the three months ended September 30, 2018 and 2019, respectively. ​

Litigation

Litigation	3 Months Ended
	Sep. 30, 2019
Litigation
Litigation	(10) Litigation ​ On July 12, 2019, a former employee filed a class and collective action complaint under federal and state law alleging that certain employees of the Company were misclassified as salaried exempt employees. The complaint seeks unpaid overtime and other damages. The Company’s management does not believe that the final outcome of this claim will have a material impact to its financial position, results of operations, or liquidity. ​ From time to time, the Company is subject to litigation arising in the ordinary course of business. Many of these matters 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. However, these matters are subject to inherent uncertainties and could materially impact the Company’s financial position, results of operations, or liquidity based on the final disposition of these matters. ​

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2019
Income Taxes
Income Taxes	(11) Income Taxes ​ The Company’s quarterly provision for income taxes is based on the annual effective rate method. 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’s effective tax rate was (143.6)% and (114.8)% for the three months ended September 30, 2018 and 2019, respectively. The Company’s effective tax rates for the three months ended September 30, 2018 and 2019 were lower than the federal statutory rate of 21% primarily due to excess tax benefits from employee stock-based compensation.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Sep. 30, 2019
Net Income Per Share
Net Income Per Share	(12) 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 ​ ​ ​ September 30, ​ ​ 2018 2019 Numerator: ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 9,852 ​ $ 13,906 ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ Weighted-average shares used in computing net income per share: ​ ​ ​ ​ ​ ​ ​ Basic ​ 52,865 ​ 53,287 ​ Weighted-average effect of potentially dilutive shares: ​ ​ ​ ​ ​ ​ ​ Employee stock options, restricted stock units and employee stock purchase plan shares ​ ​ 2,622 ​ ​ 2,426 ​ Diluted ​ 55,487 ​ 55,713 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share: ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.19 ​ $ 0.26 ​ Diluted ​ $ 0.18 ​ $ 0.25 ​ ​ The Company excluded 687 and 624 outstanding restricted stock units from the diluted per share calculation during the three months ended September 30, 2018 and 2019, respectively, because to include them would have been anti-dilutive. ​ In August 2018, the Company announced that its board of directors approved a program to repurchase up to $35,000 of the Company’s common stock, with authorization through August 14, 2019. The Company completed the repurchase program during the first quarter of fiscal 2019 and repurchased 442 shares for $34,991. All shares of common stock repurchased were retired.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Basis of Presentation, Consolidation, and Use of Estimates	(a) Basis of Presentation, Consolidation and Use of Estimates ​ These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned 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. 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. ​ Beginning in fiscal 2020, the Company simplified the presentation of revenue and cost of revenues on its Unaudited Consolidated Statements of Operations and Comprehensive Income. The line items “Recurring fees” and “Implementation services and other” have been consolidated into one revenue line: “Recurring and other revenue”. Likewise, the line items “Cost of revenues – recurring revenues” and “Cost of revenues – implementation services and other” have been consolidated into one line: “Cost of revenues”. The Company changed the presentation of revenue and cost of revenues as Implementation services and other has become a smaller component of its overall revenue mix due to the human capital management (“HCM”) suite becoming a larger part of the portfolio. Previously reported results for the three-month period ended September 30, 2018 have been reclassified to conform to the current presentation.
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 months ended September 30, 2019 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, 2019 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 9, 2019.
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 is based on the annual effective rate method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax 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 Accounting Standards	(d) Recently Adopted Accounting Standards ​ In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , The Company adopted the new standard on July 1, 2019 using the modified retrospective method and the transition relief guidance provided by the FASB in ASU 2018-11, Leases (Topic 842): Targeted Improvements. Consequently, the Company did not update financial information or provide disclosures required under the new standard for dates and periods prior to July 1, 2019. The Company elected the package of practical expedients and did not reassess prior conclusions on whether contracts are or contain a lease, lease classification, and initial direct costs. In addition, the Company adopted the lessee practical expedient to combine lease and non-lease components for all asset classes and elected to not recognize ROU assets and lease liabilities for leases with a term of 12 months or less. ​ Adoption of the new standard resulted in the Company recording of operating lease ROU assets and operating lease liabilities of $52,083 and $83,852, respectively, as of July 1, 2019. The ROU assets were recorded net of $31,769 in deferred rent adjustments that were previously recorded in Accrued expenses and Deferred rent on the Consolidated Balance Sheets as of June 30, 2019. The adoption of this standard did not result in any cumulative-effect adjustments to Retained earnings. Additionally, there was no impact on the Company’s unaudited consolidated statements of operations and comprehensive income or the unaudited statement of cash flows as a result of the adoption of Topic 842 for the three months ended September 30, 2019. ​ Refer to Note 8 for additional disclosures over the Company’s leases.
Recently Issued Accounting Standards	(e) Recently Issued Accounting Standards ​ ​ 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.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Sep. 30, 2019
Revenue
Schedule of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ ​ 2018 ​ 2019 Recurring fees ​ $ 95,761 ​ $ 117,777 Implementation services and other ​ 1,241 ​ 4,096 Total revenues from contracts ​ $ 97,002 ​ $ 121,873
Schedule of changes in deferred revenue related to nonrefundable upfront fees	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ ​ 2018 ​ 2019 Balance at beginning of the period ​ $ — ​ $ 6,289 Deferral of revenue ​ ​ 2,518 ​ ​ 3,071 Revenue recognized ​ ​ (499) ​ ​ (2,780) Balance at end of the period ​ $ 2,019 ​ $ 6,580
Schedule of deferred contract costs and the related amortization expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ Ending ​ ​ Balance ​ Capitalized ​ ​ ​ ​ Balance ​ ​ July 1, 2018 ​ Costs ​ Amortization ​ September 30, 2018 Costs to obtain a new contract ​ $ 68,107 ​ $ 5,711 ​ $ (3,885) ​ $ 69,933 Costs to fulfill a contract ​ ​ — ​ ​ 5,474 ​ ​ (131) ​ ​ 5,343 Total ​ $ 68,107 ​ $ 11,185 ​ $ (4,016) ​ $ 75,276 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning ​ ​ ​ ​ ​ ​ ​ Ending ​ ​ Balance ​ Capitalized ​ ​ ​ ​ Balance ​ ​ July 1, 2019 ​ Costs ​ Amortization ​ September 30, 2019 Costs to obtain a new contract ​ $ 82,103 ​ $ 9,486 ​ $ (4,901) ​ $ 86,688 Costs to fulfill a contract ​ ​ 20,996 ​ ​ 6,366 ​ ​ (964) ​ ​ 26,398 Total ​ $ 103,099 ​ $ 15,852 ​ $ (5,865) ​ $ 113,086

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	3 Months Ended
	Sep. 30, 2019
Balance Sheet Information
Schedule of activity in the allowance for doubtful accounts	​ ​ ​ ​ ​ ​ Balance at June 30, 2019 $ 473 Charged to expense ​ — ​ Write-offs ​ ​ (51) ​ Balance at September 30, 2019 ​ $ 422 ​
Schedule of capitalized internal-use software and accumulated amortization	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2019 2019 Capitalized internal-use software ​ $ 90,991 ​ $ 97,507 ​ Accumulated amortization ​ (63,505) ​ (67,873) ​ Capitalized internal-use software, net ​ $ 27,486 ​ $ 29,634 ​
Schedule of property and equipment, net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2019 2019 Office equipment ​ $ 4,406 ​ $ 4,497 ​ Computer equipment ​ 36,798 ​ 41,204 ​ Furniture and fixtures ​ 11,857 ​ 12,748 ​ Software ​ 6,332 ​ 6,399 ​ Leasehold improvements ​ 44,350 ​ 44,656 ​ Time clocks rented by clients ​ 4,679 ​ 4,755 ​ Total ​ 108,422 ​ 114,259 ​ Accumulated depreciation ​ (38,366) ​ (41,675) ​ Property and equipment, net ​ $ 70,056 ​ $ 72,584 ​
Schedule of amortizable intangible assets before amortization expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ Useful ​ ​ 2019 2019 Life Client relationships ​ $ 18,130 ​ $ 18,130 ​ 7 - 9 years ​ Non-solicitation agreements ​ 600 ​ ​ 600 ​ 2 - 4 years ​ Total ​ 18,730 ​ ​ 18,730 ​ ​ ​ Accumulated amortization ​ (7,979) ​ ​ (8,542) ​ ​ ​ Intangible assets, net ​ $ 10,751 ​ $ 10,188 ​ ​ ​
Schedule of future amortization expense for acquired intangible assets	​ ​ ​ ​ ​ ​ Remainder of fiscal 2020 $ 1,688 Fiscal 2021 ​ 2,251 ​ Fiscal 2022 ​ 2,232 ​ Fiscal 2023 ​ 2,118 ​ Fiscal 2024 ​ 1,356 ​ Thereafter ​ 543 ​ Total ​ $ 10,188 ​
Schedule of components of accrued expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2019 2019 Accrued payroll and personnel costs ​ $ 39,095 ​ $ 26,979 ​ Operating lease liabilities ​ ​ — ​ ​ 7,731 ​ Deferred revenue ​ ​ 5,572 ​ ​ 6,239 ​ Other ​ 12,958 ​ 10,547 ​ Total accrued expenses ​ $ 57,625 ​ $ 51,496 ​

Corporate Investments and Fun_2

Corporate Investments and Funds Held For Clients (Tables)	3 Months Ended
	Sep. 30, 2019
Corporate Investments and Funds Held for Clients
Schedule of corporate investments and funds held for clients	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ ​ Type of Issue ​ cost ​ gains losses Fair value Cash and cash equivalents ​ $ 132,478 ​ $ — ​ $ (2) ​ $ 132,476 Funds held for clients' cash and cash equivalents ​ ​ 1,293,673 ​ ​ — ​ ​ (6) ​ ​ 1,293,667 Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 63,397 ​ ​ 33 ​ ​ (2) ​ ​ 63,428 Corporate bonds ​ ​ 27,044 ​ ​ 59 ​ ​ (4) ​ ​ 27,099 Asset-backed securities ​ ​ 26,488 ​ ​ 55 ​ ​ (3) ​ ​ 26,540 U.S. treasury securities ​ ​ 13,736 ​ ​ 21 ​ ​ — ​ ​ 13,757 Total available-for-sale securities (1) ​ ​ 130,665 ​ ​ 168 ​ ​ (9) ​ ​ 130,824 Total investments ​ $ 1,556,816 ​ $ 168 ​ $ (17) ​ $ 1,556,967 ​ (1) Included within the fair value of total available-for-sale securities above is $30,022 of corporate investments and $100,802 of funds held for clients. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ ​ Type of Issue ​ cost ​ gains losses Fair value Cash and cash equivalents ​ $ 100,530 ​ $ — ​ $ (1) ​ $ 100,529 Funds held for clients' cash and cash equivalents ​ ​ 1,035,307 ​ ​ — ​ ​ (2) ​ ​ 1,035,305 Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 81,505 ​ ​ 8 ​ ​ (3) ​ ​ 81,510 Corporate bonds ​ ​ 17,594 ​ ​ 54 ​ ​ (1) ​ ​ 17,647 Asset-backed securities ​ ​ 29,513 ​ ​ 88 ​ ​ (4) ​ ​ 29,597 U.S. treasury securities ​ ​ 21,004 ​ ​ 17 ​ ​ — ​ ​ 21,021 Total available-for-sale securities (2) ​ ​ 149,616 ​ ​ 167 ​ ​ (8) ​ ​ 149,775 Total investments ​ $ 1,285,453 ​ $ 167 ​ $ (11) ​ $ 1,285,609 ​ (2) Included within the fair value of total available-for-sale securities above is $30,553 of corporate investments and $119,222 of funds held for clients.
Schedule of the classification of investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2019 2019 Cash and cash equivalents ​ $ 132,476 ​ $ 100,529 Corporate investments ​ ​ 29,314 ​ ​ 29,130 Funds held for clients ​ ​ 1,394,469 ​ ​ 1,154,527 Long-term prepaid expenses and other ​ ​ 708 ​ ​ 1,423 Total investments ​ $ 1,556,967 ​ $ 1,285,609
Schedule of available-for-sale securities that have been in an unrealized loss position for less than and greater than 12 months	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ Securities in an ​ Securities in an ​ ​ ​ ​ ​ ​ ​ ​ unrealized loss ​ unrealized loss ​ ​ ​ ​ ​ ​ ​ ​ position for less ​ position for greater ​ ​ ​ ​ ​ ​ ​ ​ than 12 months ​ than 12 months ​ Total ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ ​ unrealized ​ ​ ​ ​ unrealized ​ ​ ​ ​ unrealized ​ ​ ​ ​ ​ losses ​ Fair value ​ losses ​ Fair value ​ losses ​ Fair value Commercial paper ​ $ (2) ​ $ 19,055 ​ $ — ​ $ — ​ $ (2) ​ $ 19,055 Corporate bonds ​ ​ (1) ​ ​ 1,500 ​ ​ (3) ​ ​ 3,701 ​ ​ (4) ​ ​ 5,201 Asset-backed securities ​ ​ (1) ​ ​ 386 ​ ​ (2) ​ ​ 2,958 ​ ​ (3) ​ ​ 3,344 Total available-for-sale securities ​ $ (4) ​ $ 20,941 ​ $ (5) ​ $ 6,659 ​ $ (9) ​ $ 27,600 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ Securities in an ​ Securities in an ​ ​ ​ ​ ​ ​ ​ ​ unrealized loss ​ unrealized loss ​ ​ ​ ​ ​ ​ ​ ​ position for less ​ position for greater ​ ​ ​ ​ ​ ​ ​ ​ than 12 months ​ than 12 months ​ Total ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ Gross ​ ​ ​ ​ unrealized ​ ​ ​ ​ unrealized ​ ​ ​ ​ unrealized ​ ​ ​ ​ ​ losses ​ Fair value ​ losses ​ Fair value ​ losses ​ Fair value Commercial paper ​ $ (3) ​ $ 33,468 ​ $ — ​ $ — ​ $ (3) ​ $ 33,468 Corporate bonds ​ ​ — ​ ​ — ​ ​ (1) ​ ​ 1,100 ​ ​ (1) ​ ​ 1,100 Asset-backed securities ​ ​ (3) ​ ​ 6,289 ​ ​ (1) ​ ​ 417 ​ ​ (4) ​ ​ 6,706 Total available-for-sale securities ​ $ (6) ​ $ 39,757 ​ $ (2) ​ $ 1,517 ​ $ (8) ​ $ 41,274
Schedule of expected maturities of available-for-sale securities	Expected maturities of available-for-sale securities at September 30, 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost ​ Fair value One year or less ​ $ 132,958 ​ $ 133,041 One year to two years ​ ​ 16,658 ​ ​ 16,734 Total available-for-sale securities ​ $ 149,616 ​ $ 149,775

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Sep. 30, 2019
Fair Value Measurement
Schedule of fair value level for cash and cash equivalents and available-for-sale securities measured on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2019 ​ ​ Total ​ Level 1 Level 2 Level 3 Cash and cash equivalents ​ $ 132,476 ​ $ 116,387 ​ $ 16,089 ​ $ — Funds held for clients' cash and cash equivalents ​ ​ 1,293,667 ​ ​ 1,244,856 ​ ​ 48,811 ​ ​ — Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 63,428 ​ ​ — ​ ​ 63,428 ​ ​ — Corporate bonds ​ ​ 27,099 ​ ​ — ​ ​ 27,099 ​ ​ — Asset-backed securities ​ ​ 26,540 ​ ​ — ​ ​ 26,540 ​ ​ — U.S. treasury securities ​ ​ 13,757 ​ ​ — ​ ​ 13,757 ​ ​ — Total available-for-sale securities ​ ​ 130,824 ​ ​ — ​ ​ 130,824 ​ ​ — Total investments ​ $ 1,556,967 ​ $ 1,361,243 ​ $ 195,724 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ Total ​ Level 1 Level 2 Level 3 Cash and cash equivalents ​ $ 100,529 ​ $ 80,410 ​ $ 20,119 ​ $ — Funds held for clients' cash and cash equivalents ​ ​ 1,035,305 ​ ​ 1,004,692 ​ ​ 30,613 ​ ​ — Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 81,510 ​ ​ — ​ ​ 81,510 ​ ​ — Corporate bonds ​ ​ 17,647 ​ ​ — ​ ​ 17,647 ​ ​ — Asset-backed securities ​ ​ 29,597 ​ ​ — ​ ​ 29,597 ​ ​ — U.S. treasury securities ​ ​ 21,021 ​ ​ — ​ ​ 21,021 ​ ​ — Total available-for-sale securities ​ ​ 149,775 ​ ​ — ​ ​ 149,775 ​ ​ — Total investments ​ $ 1,285,609 ​ $ 1,085,102 ​ $ 200,507 ​ $ —

Leases (Tables)

Leases (Tables)	3 Months Ended
	Sep. 30, 2019
Leases
Schedule of components of operating lease expense	​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ September 30, 2019 ​ Operating lease cost ​ $ 2,263 ​ Short-term lease cost ​ ​ 13 ​ Variable lease cost ​ ​ 735 ​ Total lease costs ​ $ 3,011 ​
Schedule of the classification of operating lease right-of-use assets and operating lease liabilities and other supplemental information related to operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2019 ​ ​ Operating lease right-of-use assets ​ $ 50,865 ​ ​ Accrued expenses ​ $ 7,731 ​ ​ Long-term operating lease liabilities ​ $ 76,347 ​ ​ Weighted-average remaining lease term (years) ​ ​ 10.82 ​ ​ Weighted-average discount rate ​ ​ 3.85 % ​
Schedule of supplemental cash flow information related to operating leases	​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ ​ September 30, 2019 ​ Cash paid for amounts included in the measurement of operating lease liabilities ​ $ 2,484 ​ Operating lease assets obtained in exchange for new liabilities ​ $ 268 ​
Schedule of future maturities of operating lease liabilities and the reconciliation to the balance of operating lease liabilities	​ ​ ​ ​ ​ ​ Remainder of fiscal 2020 ​ $ 7,922 ​ Fiscal 2021 ​ ​ 10,705 ​ Fiscal 2022 ​ ​ 8,997 ​ Fiscal 2023 ​ ​ 8,684 ​ Fiscal 2024 ​ ​ 8,754 ​ Thereafter ​ ​ 59,152 ​ Total undiscounted cash flows ​ ​ 104,214 ​ Less: Present value discount ​ ​ (20,136) ​ Total operating lease liabilities ​ $ 84,078 ​
Schedule of future minimum lease payments under non-cancellable operating leases under Topic 840	​ ​ ​ ​ ​ ​ Fiscal 2020 ​ $ 10,449 ​ Fiscal 2021 ​ 11,150 ​ Fiscal 2022 ​ 9,500 ​ Fiscal 2023 ​ 8,840 ​ Fiscal 2024 ​ 8,838 ​ Thereafter ​ 59,401 ​ Total minimum lease payments ​ $ 108,178 ​

Benefit Plans (Tables)

Benefit Plans (Tables)	3 Months Ended
	Sep. 30, 2019
Benefit Plans
Schedule of changes in the number of shares available for grant under equity incentive plans	​ ​ ​ ​ ​ Number of Available for grant at July 1, 2019 ​ 9,759 ​ RSUs granted ​ (629) ​ Shares withheld in settlement of taxes and/or exercise price ​ 249 ​ Forfeitures ​ 61 ​ Shares removed ​ (1) ​ Available for grant at September 30, 2019 ​ 9,439 ​
Schedule of stock-based compensation expense related to stock options, restricted stock units and the Employee Stock Purchase Plan	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2018 2019 Cost of revenues ​ $ 1,238 ​ $ 1,249 ​ Sales and marketing ​ 1,697 ​ 3,968 ​ Research and development ​ 1,278 ​ 1,278 ​ General and administrative ​ 5,212 ​ 5,567 ​ Total stock-based compensation expense ​ $ 9,425 ​ $ 12,062 ​
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, 2019 1,525 ​ $ 12.24 3.95 ​ $ 124,373 ​ Options exercised ​ (8) ​ $ 15.93 ​ ​ ​ ​ ​ ​ Balance at September 30, 2019 1,517 ​ $ 12.23 ​ 3.69 ​ $ 129,492 ​ Options vested and exercisable at September 30, 2019 1,517 ​ $ 12.23 ​ 3.69 ​ $ 129,492 ​
Schedule of restricted stock unit activity	​ ​ ​ ​ ​ ​ ​ ​ Units Weighted RSU balance at July 1, 2019 ​ 1,813 ​ $ 53.78 ​ RSUs granted ​ 629 ​ $ 99.48 ​ RSUs vested ​ (677) ​ $ 49.13 ​ RSUs forfeited ​ (61) ​ $ 51.92 ​ RSU balance at September 30, 2019 ​ 1,704 ​ $ 73.06 ​ RSUs expected to vest at September 30, 2019 ​ 1,553 ​ $ 72.52 ​
Schedule of weighted average assumptions used for estimating grant date fair value of the ESPP	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ ​ September 30, ​ ​ ​ 2018 ​ ​ 2019 ​ Valuation assumptions: ​ ​ ​ ​ ​ ​ ​ Expected dividend yield ​ 0 % ​ 0 % ​ Expected volatility ​ 33.5 % ​ 38.6 % ​ Expected term (years) ​ 0.5 ​ ​ 0.5 ​ ​ Risk‑free interest rate ​ 2.10 % ​ 2.44 % ​

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Sep. 30, 2019
Net Income Per Share
Schedule of calculation of basic and diluted net income per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ September 30, ​ ​ 2018 2019 Numerator: ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 9,852 ​ $ 13,906 ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ Weighted-average shares used in computing net income per share: ​ ​ ​ ​ ​ ​ ​ Basic ​ 52,865 ​ 53,287 ​ Weighted-average effect of potentially dilutive shares: ​ ​ ​ ​ ​ ​ ​ Employee stock options, restricted stock units and employee stock purchase plan shares ​ ​ 2,622 ​ ​ 2,426 ​ Diluted ​ 55,487 ​ 55,713 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share: ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.19 ​ $ 0.26 ​ Diluted ​ $ 0.18 ​ $ 0.25 ​

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Adjustments for Adoption (Details) - USD ($) $ in Thousands	Jul. 01, 2019	Sep. 30, 2019
Recently adopted accounting standards
Operating lease right-of-use assets		$ 50,865
Operating lease liabilities		84,078
Topic 842
Recently adopted accounting standards
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Fixed List]	Modified Retrospective
Practical expedients package adopted	true
Practical expedient single lease component adopted	true
Operating lease right-of-use assets	$ 52,083
Operating lease liabilities	83,852
Deferred rent adjustments included in net ROU assets	$ 31,769
Impact of adoption on unaudited consolidated statements of operations and comprehensive income or the unaudited statement of cash flows		$ 0

Revenue - Disaggregation (Detai

Revenue - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenue
Period of term arrangements not cancellable by client	2 years
Disaggregation of revenue
Recurring and other revenue	$ 121,873	$ 97,002
Maximum
Revenue
Period of notice to cancel by client	60 days
Recognition period of nonrefundable upfront implementation fees	24 months
Recurring fees
Disaggregation of revenue
Recurring and other revenue	$ 117,777	95,761
Implementation services and other
Disaggregation of revenue
Recurring and other revenue	$ 4,096	$ 1,241

Revenue - Deferred Revenue (Det

Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Changes in deferred revenue related to nonrefundable upfront fees
Balance at beginning of period	$ 6,289	$ 0
Deferral of revenue	3,071	2,518
Revenue recognized	(2,780)	(499)
Balance at end of period	$ 6,580	$ 2,019
Maximum
Revenue
Recognition period of nonrefundable upfront implementation fees	24 months
Implementation services and other
Changes in deferred revenue related to nonrefundable upfront fees
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2020	$ 4,402
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2021	1,962
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2022 and thereafter	$ 216

Revenue - Deferred contract cos

Revenue - Deferred contract costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Deferred contract costs
Amortization period of capitalized contract costs	7 years
Beginning Balance	$ 103,099	$ 68,107
Capitalized Costs	15,852	11,185
Amortization	(5,865)	(4,016)
Ending Balance	113,086	75,276
Costs To Obtain A New Contract
Deferred contract costs
Beginning Balance	82,103	68,107
Capitalized Costs	9,486	5,711
Amortization	(4,901)	(3,885)
Ending Balance	86,688	69,933
Costs to Fulfill A Contract
Deferred contract costs
Beginning Balance	20,996
Capitalized Costs	6,366	5,474
Amortization	(964)	(131)
Ending Balance	$ 26,398	$ 5,343

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details) $ in Thousands	Sep. 30, 2019USD ($)
Remaining Performance Obligations
Minimum value of unsatisfied performance obligations on term-based contracts	$ 43,142
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Remaining Performance Obligations
Remaining performance obligation period	24 months

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
	Sep. 30, 2019	Sep. 30, 2018		Jun. 30, 2019
Activity in the allowance for doubtful accounts
Balance at beginning of period	$ 473
Charged to expense		$ 30	[1]
Write-offs	(51)
Balance at end of period	422
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	97,507			$ 90,991
Accumulated amortization	(67,873)			(63,505)
Capitalized internal-use software, net	29,634			27,486
Property and equipment, net
Property and equipment, gross	114,259			108,422
Accumulated depreciation	(41,675)			(38,366)
Property and equipment, net	72,584			70,056
Depreciation expense	3,913	3,457
Cost of revenues
Capitalized internal-use software and accumulated amortization
Amortization of capitalized internal-use software	4,457	$ 4,212
Office equipment
Property and equipment, net
Property and equipment, gross	4,497			4,406
Computer equipment
Property and equipment, net
Property and equipment, gross	41,204			36,798
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	12,748			11,857
Software
Property and equipment, net
Property and equipment, gross	6,399			6,332
Leasehold improvements
Property and equipment, net
Property and equipment, gross	44,656			44,350
Time clocks rented by clients
Property and equipment, net
Property and equipment, gross	$ 4,755			$ 4,679
[1]	Certain amounts have been reclassified to reflect the adoption of Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” Refer to Note 2 of the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

Balance Sheet Information - Int

Balance Sheet Information - Intangible Assets And Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Amortizable intangible assets
Intangible assets, gross	$ 18,730		$ 18,730
Accumulated amortization	(8,542)		(7,979)
Intangible assets, net	10,188		10,751
Amortization expense for acquired intangible assets	563	$ 563
Future amortization expense for acquired intangible assets
Remainder of fiscal 2020	1,688
2021	2,251
2022	2,232
2023	2,118
2024	1,356
Thereafter	543
Intangible assets, net	10,188		10,751
Components of accrued expenses
Accrued payroll and personnel costs	26,979		39,095
Operating lease liabilities	7,731
Deferred revenue	6,239		5,572
Other	10,547		12,958
Total accrued expenses	51,496		57,625
Client relationships
Amortizable intangible assets
Intangible assets, gross	$ 18,130		18,130
Client relationships | Minimum
Amortizable intangible assets
Useful life	7 years
Client relationships | Maximum
Amortizable intangible assets
Useful life	9 years
Non-solicitation agreements
Amortizable intangible assets
Intangible assets, gross	$ 600		$ 600
Non-solicitation agreements | Minimum
Amortizable intangible assets
Useful life	2 years
Non-solicitation agreements | Maximum
Amortizable intangible assets
Useful life	4 years

Corporate Investments and Fun_3

Corporate Investments and Funds Held For Clients - Reconciliation (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	[1]
Corporate Investments and Funds Held for Clients [Line Items]
Amortized cost of cash and cash equivalents	$ 100,530	$ 132,478
Cash and cash equivalents, gross unrealized losses	(1)	(2)
Fair value of cash and cash equivalents	100,529	132,476	$ 63,662
Amortized cost of funds held for clients' cash and cash equivalents	1,035,307	1,293,673
Funds held for clients' cash and cash equivalents, gross unrealized losses	(2)	(6)
Fair value of funds held for clients' cash and cash equivalents	1,035,305	1,293,667	$ 1,046,691
Available-for-sale securities
Amortized cost	149,616	130,665
Gross unrealized gains	167	168
Gross unrealized losses	(8)	(9)
Fair value	149,775	130,824
Total investments at amortized cost	1,285,453	1,556,816
Total investments gross unrealized gain	167	168
Total investments gross unrealized loss	(11)	(17)
Total investments at fair value	1,285,609	1,556,967
Commercial paper
Available-for-sale securities
Amortized cost	81,505	63,397
Gross unrealized gains	8	33
Gross unrealized losses	(3)	(2)
Fair value	81,510	63,428
Corporate bonds
Available-for-sale securities
Amortized cost	17,594	27,044
Gross unrealized gains	54	59
Gross unrealized losses	(1)	(4)
Fair value	17,647	27,099
Asset-backed securities
Available-for-sale securities
Amortized cost	29,513	26,488
Gross unrealized gains	88	55
Gross unrealized losses	(4)	(3)
Fair value	29,597	26,540
U.S. treasury securities
Available-for-sale securities
Amortized cost	21,004	13,736
Gross unrealized gains	17	21
Fair value	21,021	13,757
Corporate investments
Available-for-sale securities
Fair value	30,553	30,022
Funds held for clients
Available-for-sale securities
Fair value	$ 119,222	$ 100,802
[1]	Certain amounts have been reclassified to reflect the adoption of Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” Refer to Note 2 of the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

Corporate Investments and Fun_4

Corporate Investments and Funds Held For Clients - Classification (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018		Jun. 30, 2019
Corporate Investments and Funds Held for Clients [Line Items]
Cash and cash equivalents	$ 100,529	$ 63,662	[1]	$ 132,476
Corporate investments	29,130			29,314
Funds held for clients	1,154,527			1,394,469
Long-term prepaid expenses and other	1,423			708
Total investments at fair value	1,285,609			1,556,967
Available-for-sale securities
Unrealized loss on available-for-sale securities in a loss position for less than 12 months	(6)			(4)
Fair market value of available-for-sale securities in an unrealized loss position less than 12 months	39,757			20,941
Unrealized loss on available-for-sale securities in a loss position for greater than 12 months	(2)			(5)
Fair market value of available-for-sale securities in an unrealized loss position greater than 12 months	1,517			6,659
Total gross unrealized losses	(8)			(9)
Total fair value	41,274			27,600
Gross realized gains and losses on the sale of available-for-sale securities	0	0
Reclassification out of Accumulated Other Comprehensive Income (Loss)
Available-for-sale securities
Gross realized gains and losses on the sale of available-for-sale securities	0	$ 0
Commercial paper
Available-for-sale securities
Unrealized loss on available-for-sale securities in a loss position for less than 12 months	(3)			(2)
Fair market value of available-for-sale securities in an unrealized loss position less than 12 months	33,468			19,055
Total gross unrealized losses	(3)			(2)
Total fair value	33,468			19,055
Corporate bonds
Available-for-sale securities
Unrealized loss on available-for-sale securities in a loss position for less than 12 months				(1)
Fair market value of available-for-sale securities in an unrealized loss position less than 12 months				1,500
Unrealized loss on available-for-sale securities in a loss position for greater than 12 months	(1)			(3)
Fair market value of available-for-sale securities in an unrealized loss position greater than 12 months	1,100			3,701
Total gross unrealized losses	(1)			(4)
Total fair value	1,100			5,201
Asset-backed securities
Available-for-sale securities
Unrealized loss on available-for-sale securities in a loss position for less than 12 months	(3)			(1)
Fair market value of available-for-sale securities in an unrealized loss position less than 12 months	6,289			386
Unrealized loss on available-for-sale securities in a loss position for greater than 12 months	(1)			(2)
Fair market value of available-for-sale securities in an unrealized loss position greater than 12 months	417			2,958
Total gross unrealized losses	(4)			(3)
Total fair value	$ 6,706			$ 3,344
[1]	Certain amounts have been reclassified to reflect the adoption of Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” Refer to Note 2 of the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

Corporate Investments and Fun_5

Corporate Investments and Funds Held For Clients - Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Expected maturities of available-for-sale securities, amortized cost
One year or less	$ 132,958
One year to two years	16,658
Total available-for-sale securities	149,616	$ 130,665
Expected maturities of available-for-sale securities, fair value
One year or less	133,041
One year to two years	16,734
Total available-for-sale securities	$ 149,775	$ 130,824

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018
Fair value measurement
Cash and cash equivalents	$ 100,529	$ 132,476	$ 63,662	[1]
Funds held for clients' cash and cash equivalents	1,035,305	1,293,667	1,046,691	[1]
Total investments at fair value	1,285,609	1,556,967
Available-for-sale securities:
Total available-for-sale securities	149,775	130,824
Fair value asset transfers
Transfers from level 1 to level 2	0		0
Transfers from level 2 to level 1	0		$ 0
Level 1
Fair value measurement
Cash and cash equivalents	80,410	116,387
Funds held for clients' cash and cash equivalents	1,004,692	1,244,856
Total investments at fair value	1,085,102	1,361,243
Level 2
Fair value measurement
Cash and cash equivalents	20,119	16,089
Funds held for clients' cash and cash equivalents	30,613	48,811
Total investments at fair value	200,507	195,724
Available-for-sale securities:
Total available-for-sale securities	149,775	130,824
Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Commercial paper
Available-for-sale securities:
Total available-for-sale securities	81,510	63,428
Commercial paper | Level 2
Available-for-sale securities:
Total available-for-sale securities	81,510	63,428
Corporate bonds
Available-for-sale securities:
Total available-for-sale securities	17,647	27,099
Corporate bonds | Level 2
Available-for-sale securities:
Total available-for-sale securities	17,647	27,099
Asset-backed securities
Available-for-sale securities:
Total available-for-sale securities	29,597	26,540
Asset-backed securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	29,597	26,540
U.S. treasury securities
Available-for-sale securities:
Total available-for-sale securities	21,021	13,757
U.S. treasury securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	$ 21,021	$ 13,757
[1]	Certain amounts have been reclassified to reflect the adoption of Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” Refer to Note 2 of the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

Debt (Details)

Debt (Details) - Five-year revolving credit agreement - Senior secured debt - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jul. 31, 2019	Sep. 30, 2019
Line of Credit Facility [Line Items]
Term of credit agreement	5 years
Maximum borrowing capacity	$ 250,000
Maximum borrowing capacity, subject to additional lender commitments and satisfaction of other requirements	$ 375,000
Amount drawn on revolving line of credit		$ 0
Minimum
Line of Credit Facility [Line Items]
Interest coverage ratio	3
Maximum
Line of Credit Facility [Line Items]
Net total leverage ratio	4
Senior secured leverage ratio	3.50
LIBOR | Minimum
Line of Credit Facility [Line Items]
Margin on base rate	0.875%
LIBOR | Maximum
Line of Credit Facility [Line Items]
Margin on base rate	1.375%
Adjusted base rate | Minimum
Line of Credit Facility [Line Items]
Margin on base rate	0.00%
Adjusted base rate | Maximum
Line of Credit Facility [Line Items]
Margin on base rate	0.375%

Leases - Operating lease compon

Leases - Operating lease components (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Lease, Cost [Abstract]
Operating lease cost	$ 2,263
Short-term lease cost	13
Variable lease cost	735
Total lease costs	$ 3,011
Rental expense for operating leases including amortization of leasehold improvements under Topic 840		$ 2,133

Leases - Operating lease ROU as

Leases - Operating lease ROU assets and operating lease liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Lessee Disclosure [Abstract]
Operating lease right-of-use assets	$ 50,865
Accrued expenses	7,731
Long-term operating lease liabilities	$ 76,347
Weighted-average remaining lease term (years)	10 years 9 months 25 days
Weighted-average discount rate	3.85%

Leases - Supplemental cash flow

Leases - Supplemental cash flow information (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Lessee Disclosure [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 2,484
Operating lease assets obtained in exchange for new liabilities	$ 268

Leases - Future maturities (Det

Leases - Future maturities (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Undiscounted cash flows for future maturities of operating lease liabilities and the reconciliation to the balance of operating lease liabilities
Remainder of fiscal 2020	$ 7,922
Fiscal 2021	10,705
Fiscal 2022	8,997
Fiscal 2023	8,684
Fiscal 2024	8,754
Thereafter	59,152
Total undiscounted cash flows	104,214
Less: Present value discount	(20,136)
Total operating lease liabilities	84,078
Amount of undiscounted future minimum lease payments excluded from total for operating lease liabilities that had not yet commenced	$ 2,594
Maximum
Undiscounted cash flows for future maturities of operating lease liabilities and the reconciliation to the balance of operating lease liabilities
Operating lease term for leases not yet commenced	6 years 3 months

Leases - Future minimum lease p

Leases - Future minimum lease payments under Topic 840 (Details) $ in Thousands	Jun. 30, 2019USD ($)
Future minimum lease payments under Topic 840
2020	$ 10,449
2021	11,150
2022	9,500
2023	8,840
2024	8,838
Thereafter	59,401
Total minimum lease payments	$ 108,178

Benefit Plans - General Informa

Benefit Plans - General Information (Details) shares in Thousands	3 Months Ended
	Sep. 30, 2019shares
Equity Incentive Plans
Equity Incentive Plans
Number of shares of common stock reserved for issuance	12,660
Number of shares allocated but not yet issued that are subject to outstanding options or awards	3,221
2008 Plan
Equity Incentive Plans
Awards issued (in shares)	0
Awards issuable (in shares)	0
2014 Plan
Equity Incentive Plans
Potential number of additional shares available for grant each year (as a percent)	4.50%

Benefit Plans - Incentive Plans

Benefit Plans - Incentive Plans Activity (Details) - Equity Incentive Plans shares in Thousands	3 Months Ended
	Sep. 30, 2019shares
Shares Available for Grant
Balance at the beginning of the period	9,759
RSUs granted	(629)
Shares withheld in settlement of taxes and/or exercise price	249
Forfeitures	61
Shares removed	(1)
Balance at the end of the period	9,439

Benefit Plans - Compensation Ex

Benefit Plans - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Benefit Plans
Total stock-based compensation expense	$ 12,062	$ 9,425
Stock-based compensation expense capitalized for internal use software costs	656	625
Cost of revenues
Benefit Plans
Total stock-based compensation expense	1,249	1,238
Sales and marketing
Benefit Plans
Total stock-based compensation expense	3,968	1,697
Research and development
Benefit Plans
Total stock-based compensation expense	1,278	1,278
General and administrative
Benefit Plans
Total stock-based compensation expense	$ 5,567	$ 5,212

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		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Vesting period
Expiration period	10 years
Options Outstanding, Number of Shares
Balance at the beginning of the period	1,525
Options granted	0	0
Options exercised	(8)
Balance at the end of the period	1,517		1,525
Options Outstanding, Weighted average exercise price
Balance at the beginning of the period (in dollars per share)	$ 12.24
Options exercised (in dollars per share)	15.93
Balance at the end of the period (in dollars per share)	$ 12.23		$ 12.24
Options Additional Disclosures
Weighted average remaining contractual term	3 years 8 months 8 days		3 years 11 months 12 days
Aggregate intrinsic value, at the beginning of the period	$ 124,373
Weighted average remaining contractual term of options vested and exercisable at the end of the period (years)	3 years 8 months 8 days
Aggregate intrinsic value, at the end of the period	$ 129,492		$ 124,373
Options vested and exercisable at the end of the period (in shares)	1,517
Options vested and exercisable at the end of the period, weighted average exercise price (in dollars per share)	$ 12.23
Options vested and exercisable intrinsic value	$ 129,492
Total intrinsic value of options exercised	$ 671	$ 12,203
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	3 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Unrecognized Compensation Costs Not yet Recognized, Net of Estimated Forfeitures
Total unrecognized compensation cost, net of estimated forfeitures related to unvested RSUs | $	$ 79,298
Weighted average period to recognize unrecognized compensation cost	2 years 2 months 1 day
RSUs Outstanding Rollforward, Units
RSU Balance at the beginning of the period | shares	1,813
RSUs granted | shares	629
RSUs vested | shares	(677)
RSUs forfeited | shares	(61)
RSU Balance at the end of the period | shares	1,704
RSUs expected to vest at the end of the period | shares	1,553
RSUs Outstanding, Weighted average grant date fair value
RSU Balance at the beginning of the period | $ / shares	$ 53.78
RSUs granted | $ / shares	99.48
RSUs vested | $ / shares	49.13
RSUs forfeited | $ / shares	51.92
RSU Balance at the end of the period | $ / shares	73.06
RSUs expected to vest at the end of the period | $ / shares	$ 72.52
Maximum
Vesting period
Vesting period	4 years

Benefit Plans - ESPP Informatio

Benefit Plans - ESPP Information (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Equity Incentive Plans
Compensation expense	$ 12,062	$ 9,425
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%
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	995
Potential number of additional shares reserved for issuance each year	400
Potential number of additional shares reserved for issuance each year (as percent)	0.75%
Compensation expense	$ 662	$ 439
Valuation assumptions:
Expected dividend yield	0.00%	0.00%
Expected volatility	38.60%	33.50%
Expected term (years)	6 months	6 months
Risk-free interest rate	2.44%	2.10%
Employee stock purchase plan shares | Maximum
Equity Incentive Plans
Offering period	27 months

Benefit Plans - 401(k) Plan (De

Benefit Plans - 401(k) Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
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	$ 2,003	$ 1,394

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Alternative Excess Net Capital Abstract
Effective tax rate for the period (as a percent)	(114.80%)	(143.60%)
U.S. federal income tax rate (as a percent)	21.00%	21.00%

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Aug. 31, 2018
Numerator:
Net income	$ 13,906	$ 9,852
Weighted-average shares used in computing net income per share:
Basic (in shares)	53,287	52,865
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units and employee stock purchase plan shares	2,426	2,622
Diluted (in shares)	55,713	55,487
Net income per share:
Basic (in dollars per share)	$ 0.26	$ 0.19
Diluted (in dollars per share)	$ 0.25	$ 0.18
Stock Repurchase Program
Repurchases of common shares		$ 34,991
Maximum
Stock Repurchase Program
Maximum value of issued and outstanding common stock eligible for repurchase under the stock repurchase program			$ 35,000
Restricted stock units
Anti-dilutive securities excluded from diluted per share calculation
Anti-dilutive securities excluded	624	687
Common Stock
Stock Repurchase Program
Repurchases of common shares (in shares)		442