Paylocity Holding (PCTY) 10-Q 6 Nov 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2020	Oct. 30, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
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		54,245,719
Entity Central Index Key	0001591698
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 221,514	$ 250,851
Corporate investments	18,554	34,556
Accounts receivable, net	4,672	4,923
Deferred contract costs	34,124	32,332
Prepaid expenses and other	15,202	13,188
Total current assets before funds held for clients	294,066	335,850
Funds held for clients	1,378,975	1,327,304
Total current assets	1,673,041	1,663,154
Capitalized internal-use software, net	39,231	36,501
Property and equipment, net	66,068	66,737
Operating lease right-of-use assets	47,080	48,658
Intangible assets, net	12,516	13,360
Goodwill	21,655	21,655
Long-term deferred contract costs	134,328	125,711
Long-term prepaid expenses and other	5,016	4,917
Deferred income tax assets	5,916	4,955
Total assets	2,004,851	1,985,648
Current liabilities:
Accounts payable	3,209	1,755
Accrued expenses	62,343	79,881
Total current liabilities before client fund obligations	65,552	81,636
Client fund obligations	1,378,975	1,327,304
Total current liabilities	1,444,527	1,408,940
Long-term debt	100,000	100,000
Long-term operating lease liabilities	71,460	73,299
Other long-term liabilities	1,676	1,747
Deferred income tax liabilities	368	8,754
Total liabilities	1,618,031	1,592,740
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2020 and September 30, 2020
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2020 and September 30, 2020; 53,792 shares issued and outstanding at June 30, 2020 and 54,223 shares issued and outstanding at September 30, 2020	54	54
Additional paid-in capital	209,582	227,907
Retained earnings	176,732	164,272
Accumulated other comprehensive income	452	675
Total stockholders' equity	386,820	392,908
Total liabilities and stockholders' equity	$ 2,004,851	$ 1,985,648

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2020	Jun. 30, 2020
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	54,223	53,792
Common Stock, shares outstanding	54,223	53,792

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Recurring and other revenue	$ 134,875	$ 121,873
Interest income on funds held for clients	919	4,847
Total revenues	135,794	126,720
Cost of revenues	49,380	42,630
Gross profit	86,414	84,090
Operating expenses:
Sales and marketing	37,674	36,957
Research and development	18,647	14,394
General and administrative	26,644	26,739
Total operating expenses	82,965	78,090
Operating income	3,449	6,000
Other income (expense)	(257)	474
Income before income taxes	3,192	6,474
Income tax benefit	(9,268)	(7,432)
Net income	12,460	13,906
Other comprehensive income (loss), net of tax
Unrealized gains (losses) on securities, net of tax	(223)	4
Total other comprehensive income (loss), net of tax	(223)	4
Comprehensive income	$ 12,237	$ 13,910
Net income per share:
Basic (in dollars per share)	$ 0.23	$ 0.26
Diluted (in dollars per share)	$ 0.22	$ 0.25
Weighted-average shares used in computing net income per share:
Basic (in shares)	54,015	53,287
Diluted (in shares)	56,050	55,713

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 Other Comprehensive Income	Total
Balance at Jun. 30, 2019	$ 53	$ 207,982	$ 99,817	$ 112	$ 307,964
Balance (in shares) at Jun. 30, 2019	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 (losses) 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
Balance at Jun. 30, 2020	$ 54	227,907	164,272	675	$ 392,908
Balance (in shares) at Jun. 30, 2020	53,792				53,792
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		15,046			$ 15,046
Stock options exercised		529			529
Stock options exercised (in shares)	88
Issuance of common stock upon vesting of restricted stock units (in shares)	599
Net settlement for taxes and/or exercise price related to equity awards		(33,900)			(33,900)
Net settlement for taxes and/or exercise price related to equity awards (in shares)	(256)
Unrealized gains (losses) on securities, net of tax				(223)	(223)
Net income			12,460		12,460
Balance at Sep. 30, 2020	$ 54	$ 209,582	$ 176,732	$ 452	$ 386,820
Balance (in shares) at Sep. 30, 2020	54,223				54,223

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 12,460	$ 13,906
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense	14,277	12,062
Depreciation and amortization expense	10,235	8,933
Deferred income tax benefit	(9,268)	(7,431)
Provision for credit losses	56
Net accretion of discounts and amortization of premiums on available-for-sale securities	133	(485)
Amortization of debt issuance costs	37	33
Loss on disposal of equipment	31	85
Changes in operating assets and liabilities:
Accounts receivable	195	452
Deferred contract costs	(10,409)	(9,987)
Prepaid expenses and other	(2,144)	(89)
Accounts payable	1,611	39
Accrued expenses and other	(18,781)	(9,253)
Net cash provided by (used in) operating activities	(1,567)	8,265
Cash flows from investing activities:
Purchases of available-for-sale securities and other		(63,621)
Proceeds from sales and maturities of available-for-sale securities	37,493	45,154
Capitalized internal-use software costs	(7,884)	(6,714)
Purchases of property and equipment	(2,045)	(8,033)
Net cash provided by (used in) investing activities	27,564	(33,214)
Cash flows from financing activities:
Net change in client fund obligations	51,671	(239,942)
Taxes paid related to net share settlement of equity awards	(33,402)	(24,749)
Payment of debt issuance costs	(9)	(669)
Net cash provided by (used in) financing activities	18,260	(265,360)
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents	44,257	(290,309)
Cash, cash equivalents and funds held for clients' cash and cash equivalents-beginning of period	1,492,133	1,426,143
Cash, cash equivalents and funds held for clients' cash and cash equivalents-end of period	1,536,390	1,135,834
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment, accrued but not paid	1,479	1,249
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	311
Cash paid (refunds received) for income taxes	(119)	11
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	221,514	100,529
Funds held for clients' cash and cash equivalents	1,314,876	1,035,305
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$ 1,536,390	$ 1,135,834

Organization and Description of

Organization and Description of Business	3 Months Ended
	Sep. 30, 2020
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, 2020
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, including the impact from the outbreak of the novel coronavirus disease (“COVID-19”), 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 may change as new events occur, more experience and additional information is acquired, and the operating environment evolves, including the ongoing impact of COVID-19. ​ (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, 2020 are not necessarily indicative of the results for the full year or the results for any future periods. The impact of the COVID - - ​ (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 June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial instruments held at amortized cost, including trade receivables. Under ASU 2016-13, the Company assesses its allowance for credit losses on accounts receivable by taking into consideration current economic conditions, reasonable and supportable forecasts, as well as past experience including historical write-off trends and client-specific circumstances. The new standard also eliminated the concept of other-than-temporary impairment and requires expected credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The Company adopted this standard effective July 1, 2020, using a modified retrospective approach, and the adoption did not have a material impact on the Company’s financial statements. ​ In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends the requirements for fair value measurement disclosures. ASU 2018-13 removes, modifies or adds certain disclosure requirements under GAAP. The Company adopted this standard on July 1, 2020, and removed or modified disclosure requirements retrospectively to all periods presented, whereas any new requirements are being applied prospectively from the adoption date. The adoption of this standard did not have a material impact on the Company’s financial statements. ​ In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) which provides guidance to reduce complexity in certain areas of accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and simplifies various aspects of the current guidance to promote consistent application of the standard among reporting entities. The Company adopted ASU 2019-12 on July 1, 2020, and the adoption of this standard did not have a material impact on the Company’s financial statements. ​ (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, 2020
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 the Company believes depicts the nature, amount and timing of its revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ 2019 2020 Recurring fees $ 117,777 ​ $ 129,692 Implementation services and other 4,096 ​ 5,183 Total revenues from contracts $ 121,873 ​ $ 134,875 ​ Deferred revenue ​ The timing of revenue recognition for recurring revenue is consistent with the timing of invoicing as they occur simultaneously based on the client’s payroll frequency or by month for subscription-based fees. 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 amortizes 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, ​ 2019 2020 Balance at beginning of the period ​ $ 6,289 ​ $ 8,434 Deferral of revenue ​ 3,071 ​ 3,130 Revenue recognized ​ ​ (2,780) ​ ​ (3,894) Balance at end of the period ​ $ 6,580 ​ $ 7,670 ​ 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 $5,320 in fiscal 2021, $2,116 in fiscal 2022 and $234 in fiscal 2023 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2019 ​ ​ Beginning ​ Capitalized ​ ​ ​ ​ Ending ​ Balance Costs Amortization Balance 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2020 ​ ​ Beginning ​ Capitalized ​ ​ ​ ​ Ending ​ Balance Costs Amortization Balance Costs to obtain a new contract ​ $ 113,575 ​ $ 11,641 ​ $ (6,572) ​ $ 118,644 Costs to fulfill a contract ​ 44,468 ​ 7,361 ​ (2,021) ​ 49,808 Total ​ $ 158,043 ​ $ 19,002 ​ $ (8,593) ​ $ 168,452 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 balance of the Company’s remaining performance obligations related to minimum monthly fees on its term-based contracts was approximately $45,647 as of September 30, 2020, 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, 2020
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 credit losses related to accounts receivable was as follows: ​ ​ ​ ​ ​ ​ Balance at June 30, 2020 ​ 617 Charged to expense ​ 56 ​ Write-offs ​ ​ (22) ​ Balance at September 30, 2020 ​ $ 651 ​ ​ Capitalized internal-use software and accumulated amortization were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2020 2020 Capitalized internal-use software ​ $ 119,178 ​ $ 127,294 ​ Accumulated amortization ​ (82,677) ​ (88,063) ​ Capitalized internal-use software, net ​ $ 36,501 ​ $ 39,231 ​ ​ Amortization of capitalized internal-use software costs is included in Cost of revenues and amounted to $4,457 and $5,386 for the three months ended September 30, 2019 and 2020, respectively. ​ Property and equipment, net consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2020 2020 Office equipment ​ $ 4,619 ​ $ 4,843 ​ Computer equipment ​ 42,936 ​ 44,885 ​ Furniture and fixtures ​ 12,723 ​ 13,151 ​ Software ​ 6,609 ​ 6,585 ​ Leasehold improvements ​ 46,192 ​ 46,615 ​ Time clocks rented by clients ​ 4,967 ​ 4,927 ​ Total ​ 118,046 ​ 121,006 ​ Accumulated depreciation ​ (51,309) ​ (54,938) ​ Property and equipment, net ​ $ 66,737 ​ $ 66,068 ​ ​ Depreciation expense amounted to $3,913 and $4,005 for the three months ended September 30, 2019 and 2020, respectively. ​ In April 2020, the Company acquired all of the shares outstanding of VidGrid, Inc. (“VidGrid”). During the three months ended September 30, 2020, the Company completed its purchase accounting for this acquisition and did not record any changes to the preliminary purchase price allocation. Accordingly, goodwill did not change during the three months ended September 30, 2020. Refer to Note 6 of the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2020 for additional details on the acquisition of VidGrid. The Company’s amortizable intangible assets and estimated useful lives are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ Useful ​ ​ 2020 2020 Life Client relationships ​ $ 19,200 ​ $ 19,200 ​ 5 - 9 years ​ Proprietary technology ​ ​ 2,962 ​ ​ 2,962 ​ 5 years ​ Non-solicitation agreements ​ 1,350 ​ ​ 1,350 ​ 2 - 4 years ​ Trade name ​ ​ 350 ​ ​ 350 ​ 5 years ​ Total ​ 23,862 ​ ​ 23,862 ​ ​ ​ Accumulated amortization ​ (10,502) ​ ​ (11,346) ​ ​ ​ Intangible assets, net ​ $ 13,360 ​ $ 12,516 ​ ​ ​ ​ Amortization expense for acquired intangible assets was $563 and $844 for the three months ended September 30, 2019 and 2020, respectively. ​ Future amortization expense for acquired intangible assets as of September 30, 2020 is as follows: ​ ​ ​ ​ ​ ​ Remainder of fiscal 2021 ​ $ 2,533 ​ Fiscal 2022 ​ 3,358 ​ Fiscal 2023 ​ 3,185 ​ Fiscal 2024 ​ 2,232 ​ Fiscal 2025 ​ 1,208 ​ Total ​ $ 12,516 ​ ​ The components of accrued expenses were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2020 2020 Accrued payroll and personnel costs ​ $ 53,284 ​ $ 35,444 ​ Operating lease liabilities ​ 8,083 ​ 7,977 ​ Deferred revenue ​ ​ 8,777 ​ ​ 8,784 ​ Other ​ 9,737 ​ 10,138 ​ Total accrued expenses ​ $ 79,881 ​ $ 62,343 ​ ​

Corporate Investments and Funds

Corporate Investments and Funds Held for Clients	3 Months Ended
	Sep. 30, 2020
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, 2020 ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ ​ Type of Issue ​ cost ​ gains losses Fair value Cash and cash equivalents ​ $ 250,851 ​ $ — ​ $ — ​ $ 250,851 Funds held for clients' cash and cash equivalents ​ ​ 1,241,282 ​ ​ — ​ ​ — ​ ​ 1,241,282 Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 6,643 ​ ​ 6 ​ ​ — ​ ​ 6,649 Corporate bonds ​ ​ 44,343 ​ ​ 414 ​ ​ — ​ ​ 44,757 Asset-backed securities ​ ​ 49,978 ​ ​ 424 ​ ​ — ​ ​ 50,402 U.S. treasury securities ​ ​ 21,302 ​ ​ 67 ​ ​ — ​ ​ 21,369 Total available-for-sale securities (1) ​ ​ 122,266 ​ ​ 911 ​ ​ — ​ ​ 123,177 Total investments ​ $ 1,614,399 ​ $ 911 ​ $ — ​ $ 1,615,310 ​ (1) Included within the fair value of total available-for-sale securities above is $37,155 of corporate investments and $86,022 of funds held for clients. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ ​ Type of Issue ​ cost ​ gains losses Fair value Cash and cash equivalents ​ $ 221,514 ​ $ — ​ $ — ​ $ 221,514 Funds held for clients' cash and cash equivalents ​ ​ 1,314,876 ​ ​ — ​ ​ — ​ ​ 1,314,876 Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds ​ ​ 42,270 ​ ​ 311 ​ ​ — ​ ​ 42,581 Asset-backed securities ​ ​ 38,220 ​ ​ 292 ​ ​ — ​ ​ 38,512 U.S. treasury securities ​ ​ 4,150 ​ ​ 5 ​ ​ — ​ ​ 4,155 Total available-for-sale securities (2) ​ ​ 84,640 ​ ​ 608 ​ ​ — ​ ​ 85,248 Total investments ​ $ 1,621,030 ​ $ 608 ​ $ — ​ $ 1,621,638 ​ (2) Included within the fair value of total available-for-sale securities above is $21,149 of corporate investments and $64,099 of funds held for clients. ​ Cash and cash equivalents and funds held for clients’ cash and cash equivalents include demand deposit accounts and money market funds at June 30, 2020 and September 30, 2020. ​ Classification of investments on the unaudited consolidated balance sheets is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2020 2020 Cash and cash equivalents ​ $ 250,851 ​ $ 221,514 Corporate investments ​ ​ 34,556 ​ ​ 18,554 Funds held for clients ​ ​ 1,327,304 ​ ​ 1,378,975 Long-term prepaid expenses and other ​ ​ 2,599 ​ ​ 2,595 Total investments ​ $ 1,615,310 ​ $ 1,621,638 ​ There were no available-for-sale securities in an unrealized loss position at June 30, 2020 or September 30, 2020. The Company regularly reviews the composition of its portfolio to determine the existence of credit impairment. The Company did not recognize any credit impairment losses during the three months ended September 30, 2020. All securities in the Company’s portfolio held an A-1 rating or better as of September 30, 2020. ​ 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, 2019 or 2020. Gross realized gains and losses on the sale of available-for-sale securities were immaterial for both the three months ended September 30, 2019 and 2020. ​ Expected maturities of available-for-sale securities at September 30, 2020 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost ​ Fair value One year or less ​ $ 75,701 ​ $ 76,152 One year to two years ​ ​ 8,939 ​ ​ 9,096 Total available-for-sale securities ​ $ 84,640 ​ $ 85,248 ​

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Sep. 30, 2020
Fair Value Measurement
Fair Value Measurement	(6) Fair Value Measurement ​ 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, 2020 and September 30, 2020 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, 2020 or September 30, 2020. ​ The fair value level for the Company’s cash and cash equivalents and available-for-sale securities is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ ​ Total ​ Level 1 Level 2 Level 3 Cash and cash equivalents ​ $ 250,851 ​ $ 250,851 ​ $ — ​ $ — Funds held for clients' cash and cash equivalents ​ ​ 1,241,282 ​ ​ 1,241,282 ​ ​ — ​ ​ — Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 6,649 ​ ​ — ​ ​ 6,649 ​ ​ — Corporate bonds ​ ​ 44,757 ​ ​ — ​ ​ 44,757 ​ ​ — Asset-backed securities ​ ​ 50,402 ​ ​ — ​ ​ 50,402 ​ ​ — U.S. treasury securities ​ ​ 21,369 ​ ​ — ​ ​ 21,369 ​ ​ — Total available-for-sale securities ​ ​ 123,177 ​ ​ — ​ ​ 123,177 ​ ​ — Total investments ​ $ 1,615,310 ​ $ 1,492,133 ​ $ 123,177 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ ​ Total ​ Level 1 Level 2 Level 3 Cash and cash equivalents ​ $ 221,514 ​ $ 221,514 ​ $ — ​ $ — Funds held for clients' cash and cash equivalents ​ ​ 1,314,876 ​ ​ 1,314,876 ​ ​ — ​ ​ — Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds ​ ​ 42,581 ​ ​ — ​ ​ 42,581 ​ ​ — Asset-backed securities ​ ​ 38,512 ​ ​ — ​ ​ 38,512 ​ ​ — U.S. treasury securities ​ ​ 4,155 ​ ​ — ​ ​ 4,155 ​ ​ — Total available-for-sale securities ​ ​ 85,248 ​ ​ — ​ ​ 85,248 ​ ​ — Total investments ​ $ 1,621,638 ​ $ 1,536,390 ​ $ 85,248 ​ $ — ​

Debt

Debt	3 Months Ended
	Sep. 30, 2020
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, 2020, the Company had $100,000 in borrowings outstanding under 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, 2020, the Company was in compliance with all of the aforementioned covenants.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Sep. 30, 2020
Stock-Based Compensation
Stock-Based Compensation	(8) Stock-Based Compensation ​ 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 restricted stock units 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, 2020, the Company had 11,931 shares allocated to the plans, of which 2,673 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, 2020: ​ ​ ​ ​ ​ ​ Number of Available for grant at July 1, 2020 ​ 9,519 ​ RSUs granted ​ (465) ​ MSUs granted ​ (58) ​ Shares withheld in settlement of taxes and/or exercise price ​ 256 ​ Forfeitures ​ 44 ​ Shares removed ​ (38) ​ Available for grant at September 30, 2020 ​ 9,258 ​ ​ 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”), market share units (“MSUs”) and the Employee Stock Purchase Plan is included in the following line items in the accompanying unaudited consolidated statements of operations and comprehensive income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2019 2020 Cost of revenues ​ $ 1,249 ​ $ 1,832 ​ Sales and marketing ​ 3,968 ​ 3,880 ​ Research and development ​ 1,278 ​ 2,230 ​ General and administrative ​ 5,567 ​ 6,335 ​ Total stock-based compensation expense ​ $ 12,062 ​ $ 14,277 ​ ​ In addition, the Company capitalized $656 and $769 of stock-based compensation expense in its capitalized internal-use software costs in the three months ended September 30, 2019 and 2020, respectively. ​ In August 2020, the Company’s board of directors approved the Company’s fiscal 2021 annual operating plan to reflect the operating and financial impacts of the COVID-19 pandemic. In connection and alignment with the board’s approval of the updated operating plan, the compensation committee of the Company’s board of directors approved the modification of the performance targets for vesting of the performance-based restricted stock units granted in fiscal 2020. As a result of the modification, the Company recorded $860 in stock-based compensation expense during the three months ended September 30, 2020. ​ There were no stock options granted during the three months ended September 30, 2019 or 2020. The table below presents stock option activity during the three months ended September 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding Options ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Weighted ​ average ​ ​ ​ ​ ​ ​ ​ average ​ remaining ​ Aggregate ​ ​ Number of ​ exercise ​ contractual ​ intrinsic ​ ​ shares ​ price ​ term (years) ​ value Balance at July 1, 2020 1,255 ​ $ 12.43 2.96 ​ $ 167,406 ​ Options exercised ​ (88) ​ $ 6.01 ​ ​ ​ ​ ​ ​ Balance at September 30, 2020 1,167 ​ $ 12.91 ​ 2.76 ​ $ 173,184 ​ Options vested and exercisable at September 30, 2020 1,167 ​ $ 12.91 ​ 2.76 ​ $ 173,184 ​ ​ The total intrinsic value of options exercised was $671 and $11,408 during the three months ended September 30, 2019 and 2020, respectively. ​ The Company grants RSUs under the 2014 Plan with terms determined at the discretion of the compensation committee of the Company’s board of directors. RSUs generally vest over three ​ The following table represents restricted stock unit activity during the three months ended September 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ Units Weighted RSU balance at July 1, 2020 ​ 1,626 ​ $ 73.96 ​ RSUs granted ​ 465 ​ $ 131.81 ​ RSUs vested ​ (599) ​ $ 64.40 ​ RSUs forfeited ​ (44) ​ $ 75.94 ​ RSU balance at September 30, 2020 ​ 1,448 ​ $ 98.81 ​ RSUs expected to vest at September 30, 2020 ​ 1,345 ​ $ 98.85 ​ ​ At September 30, 2020, there was $92,872 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock units granted. That cost is expected to be recognized over a weighted average period of 2.11 years. ​ The Company also grants MSUs under the 2014 Plan with terms determined at the discretion of the Committee. In August 2020, the Company granted approximately 58 MSUs with a grant date fair value of $178.04. The actual number of MSUs that will be eligible to vest is based on the achievement of a relative total shareholder return (“TSR”) target as compared to the TSR realized by each of the companies comprising the Russell 3000 Index over an approximately three-year period. The MSUs cliff-vest at the end of the TSR measurement period, and up to 200% of the target number of shares subject to each MSU are eligible to be earned. ​ The Company estimated the grant date fair value of the MSUs using a Monte Carlo simulation model that included the following assumptions for the three months ended September 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ Expected dividend yield ​ ​ ​ ​ 0 % Expected volatility ​ ​ ​ ​ 52.0 % Expected term (years) ​ ​ ​ ​ 3.04 ​ Risk‑free interest rate ​ ​ ​ ​ 0.18 % ​ At September 30, 2020, there was $8,541 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested MSUs. That cost is expected to be recognized over a period of 2.92 years. ​

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2020
Income Taxes
Income Taxes	(9) Income Taxes ​ On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) into law. While the Company continues to analyze the relevant provisions of the CARES Act, it does not expect the provisions of the legislation to have a significant impact on the Company’s 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 (114.8)% and (290.3)% for the three months ended September 30, 2019 and 2020, respectively. The Company’s effective tax rate for the three months ended September 30, 2019 and September 30, 2020 was 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, 2020
Net Income Per Share
Net Income Per Share	(10) 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 market share 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, ​ ​ 2019 2020 Numerator: ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 13,906 ​ $ 12,460 ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ Weighted-average shares used in computing net income per share: ​ ​ ​ ​ ​ ​ ​ Basic ​ 53,287 ​ 54,015 ​ Weighted-average effect of potentially dilutive shares: ​ ​ ​ ​ ​ ​ ​ Employee stock options, restricted stock units and employee stock purchase plan shares ​ ​ 2,426 ​ ​ 2,035 ​ Diluted ​ 55,713 ​ 56,050 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share: ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.26 ​ $ 0.23 ​ Diluted ​ $ 0.25 ​ $ 0.22 ​ ​ ​ The following table summarizes the outstanding restricted stock units and market share units as of September 30, 2020 that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ September 30, ​ ​ 2019 2020 Restricted stock units ​ 624 ​ 462 ​ Market share units ​ — ​ 58 ​ Total ​ 624 520 ​ ​

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2020
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, including the impact from the outbreak of the novel coronavirus disease (“COVID-19”), 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 may change as new events occur, more experience and additional information is acquired, and the operating environment evolves, including the ongoing impact of COVID-19.
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, 2020 are not necessarily indicative of the results for the full year or the results for any future periods. The impact of the COVID - -
Income Taxes	(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.
Recently Adopted Accounting Standards	(d) Recently Adopted Accounting Standards ​ In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial instruments held at amortized cost, including trade receivables. Under ASU 2016-13, the Company assesses its allowance for credit losses on accounts receivable by taking into consideration current economic conditions, reasonable and supportable forecasts, as well as past experience including historical write-off trends and client-specific circumstances. The new standard also eliminated the concept of other-than-temporary impairment and requires expected credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The Company adopted this standard effective July 1, 2020, using a modified retrospective approach, and the adoption did not have a material impact on the Company’s financial statements. ​ In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends the requirements for fair value measurement disclosures. ASU 2018-13 removes, modifies or adds certain disclosure requirements under GAAP. The Company adopted this standard on July 1, 2020, and removed or modified disclosure requirements retrospectively to all periods presented, whereas any new requirements are being applied prospectively from the adoption date. The adoption of this standard did not have a material impact on the Company’s financial statements. ​ In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) which provides guidance to reduce complexity in certain areas of accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and simplifies various aspects of the current guidance to promote consistent application of the standard among reporting entities. The Company adopted ASU 2019-12 on July 1, 2020, and the adoption of this standard did not have a material impact on the Company’s financial statements.
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, 2020
Revenue
Schedule of disaggregation of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ 2019 2020 Recurring fees $ 117,777 ​ $ 129,692 Implementation services and other 4,096 ​ 5,183 Total revenues from contracts $ 121,873 ​ $ 134,875
Schedule of changes in deferred revenue related to nonrefundable upfront fees	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ September 30, ​ 2019 2020 Balance at beginning of the period ​ $ 6,289 ​ $ 8,434 Deferral of revenue ​ 3,071 ​ 3,130 Revenue recognized ​ ​ (2,780) ​ ​ (3,894) Balance at end of the period ​ $ 6,580 ​ $ 7,670
Schedule of deferred contract costs and the related amortization expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2019 ​ ​ Beginning ​ Capitalized ​ ​ ​ ​ Ending ​ Balance Costs Amortization Balance 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2020 ​ ​ Beginning ​ Capitalized ​ ​ ​ ​ Ending ​ Balance Costs Amortization Balance Costs to obtain a new contract ​ $ 113,575 ​ $ 11,641 ​ $ (6,572) ​ $ 118,644 Costs to fulfill a contract ​ 44,468 ​ 7,361 ​ (2,021) ​ 49,808 Total ​ $ 158,043 ​ $ 19,002 ​ $ (8,593) ​ $ 168,452 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	3 Months Ended
	Sep. 30, 2020
Balance Sheet Information
Schedule of activity in the allowance for credit losses related to accounts receivable	​ ​ ​ ​ ​ ​ Balance at June 30, 2020 ​ 617 Charged to expense ​ 56 ​ Write-offs ​ ​ (22) ​ Balance at September 30, 2020 ​ $ 651 ​
Schedule of capitalized internal-use software and accumulated amortization	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2020 2020 Capitalized internal-use software ​ $ 119,178 ​ $ 127,294 ​ Accumulated amortization ​ (82,677) ​ (88,063) ​ Capitalized internal-use software, net ​ $ 36,501 ​ $ 39,231 ​
Schedule of property and equipment, net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2020 2020 Office equipment ​ $ 4,619 ​ $ 4,843 ​ Computer equipment ​ 42,936 ​ 44,885 ​ Furniture and fixtures ​ 12,723 ​ 13,151 ​ Software ​ 6,609 ​ 6,585 ​ Leasehold improvements ​ 46,192 ​ 46,615 ​ Time clocks rented by clients ​ 4,967 ​ 4,927 ​ Total ​ 118,046 ​ 121,006 ​ Accumulated depreciation ​ (51,309) ​ (54,938) ​ Property and equipment, net ​ $ 66,737 ​ $ 66,068 ​
Schedule of amortizable intangible assets and estimated useful lives	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ Useful ​ ​ 2020 2020 Life Client relationships ​ $ 19,200 ​ $ 19,200 ​ 5 - 9 years ​ Proprietary technology ​ ​ 2,962 ​ ​ 2,962 ​ 5 years ​ Non-solicitation agreements ​ 1,350 ​ ​ 1,350 ​ 2 - 4 years ​ Trade name ​ ​ 350 ​ ​ 350 ​ 5 years ​ Total ​ 23,862 ​ ​ 23,862 ​ ​ ​ Accumulated amortization ​ (10,502) ​ ​ (11,346) ​ ​ ​ Intangible assets, net ​ $ 13,360 ​ $ 12,516 ​ ​ ​
Schedule of future amortization expense for acquired intangible assets	​ ​ ​ ​ ​ ​ Remainder of fiscal 2021 ​ $ 2,533 ​ Fiscal 2022 ​ 3,358 ​ Fiscal 2023 ​ 3,185 ​ Fiscal 2024 ​ 2,232 ​ Fiscal 2025 ​ 1,208 ​ Total ​ $ 12,516 ​
Schedule of components of accrued expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2020 2020 Accrued payroll and personnel costs ​ $ 53,284 ​ $ 35,444 ​ Operating lease liabilities ​ 8,083 ​ 7,977 ​ Deferred revenue ​ ​ 8,777 ​ ​ 8,784 ​ Other ​ 9,737 ​ 10,138 ​ Total accrued expenses ​ $ 79,881 ​ $ 62,343 ​

Corporate Investments and Fun_2

Corporate Investments and Funds Held For Clients (Tables)	3 Months Ended
	Sep. 30, 2020
Corporate Investments and Funds Held for Clients
Schedule of corporate investments and funds held for clients	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2020 ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ ​ Type of Issue ​ cost ​ gains losses Fair value Cash and cash equivalents ​ $ 250,851 ​ $ — ​ $ — ​ $ 250,851 Funds held for clients' cash and cash equivalents ​ ​ 1,241,282 ​ ​ — ​ ​ — ​ ​ 1,241,282 Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 6,643 ​ ​ 6 ​ ​ — ​ ​ 6,649 Corporate bonds ​ ​ 44,343 ​ ​ 414 ​ ​ — ​ ​ 44,757 Asset-backed securities ​ ​ 49,978 ​ ​ 424 ​ ​ — ​ ​ 50,402 U.S. treasury securities ​ ​ 21,302 ​ ​ 67 ​ ​ — ​ ​ 21,369 Total available-for-sale securities (1) ​ ​ 122,266 ​ ​ 911 ​ ​ — ​ ​ 123,177 Total investments ​ $ 1,614,399 ​ $ 911 ​ $ — ​ $ 1,615,310 ​ (1) Included within the fair value of total available-for-sale securities above is $37,155 of corporate investments and $86,022 of funds held for clients. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ ​ Type of Issue ​ cost ​ gains losses Fair value Cash and cash equivalents ​ $ 221,514 ​ $ — ​ $ — ​ $ 221,514 Funds held for clients' cash and cash equivalents ​ ​ 1,314,876 ​ ​ — ​ ​ — ​ ​ 1,314,876 Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds ​ ​ 42,270 ​ ​ 311 ​ ​ — ​ ​ 42,581 Asset-backed securities ​ ​ 38,220 ​ ​ 292 ​ ​ — ​ ​ 38,512 U.S. treasury securities ​ ​ 4,150 ​ ​ 5 ​ ​ — ​ ​ 4,155 Total available-for-sale securities (2) ​ ​ 84,640 ​ ​ 608 ​ ​ — ​ ​ 85,248 Total investments ​ $ 1,621,030 ​ $ 608 ​ $ — ​ $ 1,621,638 ​ (2) Included within the fair value of total available-for-sale securities above is $21,149 of corporate investments and $64,099 of funds held for clients.
Schedule of the classification of investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ September 30, ​ ​ 2020 2020 Cash and cash equivalents ​ $ 250,851 ​ $ 221,514 Corporate investments ​ ​ 34,556 ​ ​ 18,554 Funds held for clients ​ ​ 1,327,304 ​ ​ 1,378,975 Long-term prepaid expenses and other ​ ​ 2,599 ​ ​ 2,595 Total investments ​ $ 1,615,310 ​ $ 1,621,638
Schedule of expected maturities of available-for-sale securities	Expected maturities of available-for-sale securities at September 30, 2020 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ ​ ​ ​ cost ​ Fair value One year or less ​ $ 75,701 ​ $ 76,152 One year to two years ​ ​ 8,939 ​ ​ 9,096 Total available-for-sale securities ​ $ 84,640 ​ $ 85,248

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Sep. 30, 2020
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, 2020 ​ ​ Total ​ Level 1 Level 2 Level 3 Cash and cash equivalents ​ $ 250,851 ​ $ 250,851 ​ $ — ​ $ — Funds held for clients' cash and cash equivalents ​ ​ 1,241,282 ​ ​ 1,241,282 ​ ​ — ​ ​ — Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ ​ 6,649 ​ ​ — ​ ​ 6,649 ​ ​ — Corporate bonds ​ ​ 44,757 ​ ​ — ​ ​ 44,757 ​ ​ — Asset-backed securities ​ ​ 50,402 ​ ​ — ​ ​ 50,402 ​ ​ — U.S. treasury securities ​ ​ 21,369 ​ ​ — ​ ​ 21,369 ​ ​ — Total available-for-sale securities ​ ​ 123,177 ​ ​ — ​ ​ 123,177 ​ ​ — Total investments ​ $ 1,615,310 ​ $ 1,492,133 ​ $ 123,177 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2020 ​ ​ Total ​ Level 1 Level 2 Level 3 Cash and cash equivalents ​ $ 221,514 ​ $ 221,514 ​ $ — ​ $ — Funds held for clients' cash and cash equivalents ​ ​ 1,314,876 ​ ​ 1,314,876 ​ ​ — ​ ​ — Available-for-sale securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate bonds ​ ​ 42,581 ​ ​ — ​ ​ 42,581 ​ ​ — Asset-backed securities ​ ​ 38,512 ​ ​ — ​ ​ 38,512 ​ ​ — U.S. treasury securities ​ ​ 4,155 ​ ​ — ​ ​ 4,155 ​ ​ — Total available-for-sale securities ​ ​ 85,248 ​ ​ — ​ ​ 85,248 ​ ​ — Total investments ​ $ 1,621,638 ​ $ 1,536,390 ​ $ 85,248 ​ $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2020
Stock-Based Compensation
Schedule of changes in the number of shares available for grant under equity incentive plans	​ ​ ​ ​ ​ ​ Number of Available for grant at July 1, 2020 ​ 9,519 ​ RSUs granted ​ (465) ​ MSUs granted ​ (58) ​ Shares withheld in settlement of taxes and/or exercise price ​ 256 ​ Forfeitures ​ 44 ​ Shares removed ​ (38) ​ Available for grant at September 30, 2020 ​ 9,258 ​
Schedule of stock-based compensation expense related to stock options, restricted stock units, market share units and the Employee Stock Purchase Plan	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2019 2020 Cost of revenues ​ $ 1,249 ​ $ 1,832 ​ Sales and marketing ​ 3,968 ​ 3,880 ​ Research and development ​ 1,278 ​ 2,230 ​ General and administrative ​ 5,567 ​ 6,335 ​ Total stock-based compensation expense ​ $ 12,062 ​ $ 14,277 ​
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, 2020 1,255 ​ $ 12.43 2.96 ​ $ 167,406 ​ Options exercised ​ (88) ​ $ 6.01 ​ ​ ​ ​ ​ ​ Balance at September 30, 2020 1,167 ​ $ 12.91 ​ 2.76 ​ $ 173,184 ​ Options vested and exercisable at September 30, 2020 1,167 ​ $ 12.91 ​ 2.76 ​ $ 173,184 ​
Schedule of restricted stock unit activity	​ ​ ​ ​ ​ ​ ​ ​ ​ Units Weighted RSU balance at July 1, 2020 ​ 1,626 ​ $ 73.96 ​ RSUs granted ​ 465 ​ $ 131.81 ​ RSUs vested ​ (599) ​ $ 64.40 ​ RSUs forfeited ​ (44) ​ $ 75.94 ​ RSU balance at September 30, 2020 ​ 1,448 ​ $ 98.81 ​ RSUs expected to vest at September 30, 2020 ​ 1,345 ​ $ 98.85 ​
Summary of the assumptions used for estimating the grant date fair value of MSUs	​ ​ ​ ​ ​ ​ ​ ​ Expected dividend yield ​ ​ ​ ​ 0 % Expected volatility ​ ​ ​ ​ 52.0 % Expected term (years) ​ ​ ​ ​ 3.04 ​ Risk‑free interest rate ​ ​ ​ ​ 0.18 %

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Sep. 30, 2020
Net Income Per Share
Schedule of calculation of basic and diluted net income per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ September 30, ​ ​ 2019 2020 Numerator: ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 13,906 ​ $ 12,460 ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ Weighted-average shares used in computing net income per share: ​ ​ ​ ​ ​ ​ ​ Basic ​ 53,287 ​ 54,015 ​ Weighted-average effect of potentially dilutive shares: ​ ​ ​ ​ ​ ​ ​ Employee stock options, restricted stock units and employee stock purchase plan shares ​ ​ 2,426 ​ ​ 2,035 ​ Diluted ​ 55,713 ​ 56,050 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share: ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 0.26 ​ $ 0.23 ​ Diluted ​ $ 0.25 ​ $ 0.22 ​
Summary of anti-dilutive securities	​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ September 30, ​ ​ 2019 2020 Restricted stock units ​ 624 ​ 462 ​ Market share units ​ — ​ 58 ​ Total ​ 624 520 ​

Revenue - Disaggregation (Detai

Revenue - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Revenue
Period of term arrangements not cancellable by client	2 years
Disaggregation of revenue
Recurring and other revenue	$ 134,875	$ 121,873
Maximum
Revenue
Period of notice to cancel by client	60 days
Amortization period of nonrefundable upfront implementation fees	24 months
Recurring fees
Disaggregation of revenue
Recurring and other revenue	$ 129,692	117,777
Implementation services and other
Disaggregation of revenue
Recurring and other revenue	$ 5,183	$ 4,096

Revenue - Deferred Revenue (Det

Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Changes in deferred revenue related to nonrefundable upfront fees
Balance at beginning of the period	$ 8,434	$ 6,289
Deferral of revenue	3,130	3,071
Revenue recognized	(3,894)	(2,780)
Balance at end of the period	$ 7,670	$ 6,580
Maximum
Revenue
Amortization 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 2021	$ 5,320
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2022	2,116
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2023 and thereafter	$ 234

Revenue - Deferred contract cos

Revenue - Deferred contract costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Deferred contract costs
Amortization period of capitalized contract costs	7 years
Beginning Balance	$ 158,043	$ 103,099
Capitalized Costs	19,002	15,852
Amortization	(8,593)	(5,865)
Ending Balance	168,452	113,086
Costs To Obtain A New Contract
Deferred contract costs
Beginning Balance	113,575	82,103
Capitalized Costs	11,641	9,486
Amortization	(6,572)	(4,901)
Ending Balance	118,644	86,688
Costs to Fulfill A Contract
Deferred contract costs
Beginning Balance	44,468	20,996
Capitalized Costs	7,361	6,366
Amortization	(2,021)	(964)
Ending Balance	$ 49,808	$ 26,398

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details) $ in Thousands	Sep. 30, 2020USD ($)
Remaining Performance Obligations
Minimum value of unsatisfied performance obligations on term-based contracts	$ 45,647
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Remaining Performance Obligations
Remaining performance obligation period	24 months

Balance Sheet Information - All

Balance Sheet Information - Allowance for Credit Losses for Accounts Receivable, Capitalized Internal-Use Software and Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Activity in the allowance for credit losses
Balance at the beginning of the year	$ 617
Charged to expense	56
Write-offs	(22)
Balance at the end of the year	651
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	127,294		$ 119,178
Accumulated amortization	(88,063)		(82,677)
Capitalized internal-use software, net	39,231		36,501
Property and equipment, net
Property and equipment, gross	121,006		118,046
Accumulated depreciation	(54,938)		(51,309)
Property and equipment, net	66,068		66,737
Depreciation expense	4,005	$ 3,913
Cost of revenues
Capitalized internal-use software and accumulated amortization
Amortization of capitalized internal-use software	5,386	$ 4,457
Office equipment
Property and equipment, net
Property and equipment, gross	4,843		4,619
Computer equipment
Property and equipment, net
Property and equipment, gross	44,885		42,936
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	13,151		12,723
Software
Property and equipment, net
Property and equipment, gross	6,585		6,609
Leasehold improvements
Property and equipment, net
Property and equipment, gross	46,615		46,192
Time clocks rented by clients
Property and equipment, net
Property and equipment, gross	$ 4,927		$ 4,967

Balance Sheet Information - Int

Balance Sheet Information - Intangible Assets And Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Amortizable intangible assets
Intangible assets, gross	$ 23,862		$ 23,862
Accumulated amortization	(11,346)		(10,502)
Intangible assets, net	12,516		13,360
Amortization expense for acquired intangible assets	844	$ 563
Future amortization expense for acquired intangible assets
Remainder of fiscal 2021	2,533
Fiscal 2022	3,358
Fiscal 2023	3,185
Fiscal 2024	2,232
Fiscal 2025	1,208
Intangible assets, net	12,516		13,360
Components of accrued expenses
Accrued payroll and personnel costs	35,444		53,284
Operating lease liabilities	7,977		8,083
Deferred revenue	8,784		8,777
Other	10,138		9,737
Total accrued expenses	62,343		79,881
Client relationships
Amortizable intangible assets
Intangible assets, gross	$ 19,200		19,200
Client relationships | Minimum
Amortizable intangible assets
Useful life	5 years
Client relationships | Maximum
Amortizable intangible assets
Useful life	9 years
Proprietary technology
Amortizable intangible assets
Intangible assets, gross	$ 2,962		2,962
Useful life	5 years
Non-solicitation agreements
Amortizable intangible assets
Intangible assets, gross	$ 1,350		1,350
Non-solicitation agreements | Minimum
Amortizable intangible assets
Useful life	2 years
Non-solicitation agreements | Maximum
Amortizable intangible assets
Useful life	4 years
Trade name
Amortizable intangible assets
Intangible assets, gross	$ 350		$ 350
Useful life	5 years

Corporate Investments and Fun_3

Corporate Investments and Funds Held For Clients - Reconciliation (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019
Corporate Investments and Funds Held for Clients
Amortized cost of cash and cash equivalents	$ 221,514	$ 250,851
Fair value of cash and cash equivalents	221,514	250,851	$ 100,529
Amortized cost of funds held for clients' cash and cash equivalents	1,314,876	1,241,282
Fair value of funds held for clients' cash and cash equivalents	1,314,876	1,241,282	$ 1,035,305
Available-for-sale securities
Amortized cost	84,640	122,266
Gross unrealized gains	608	911
Fair value	85,248	123,177
Total investments at amortized cost	1,621,030	1,614,399
Total investments gross unrealized gain	608	911
Total investments at fair value	1,621,638	1,615,310
Commercial paper
Available-for-sale securities
Amortized cost		6,643
Gross unrealized gains		6
Fair value		6,649
Corporate bonds
Available-for-sale securities
Amortized cost	42,270	44,343
Gross unrealized gains	311	414
Fair value	42,581	44,757
Asset-backed securities
Available-for-sale securities
Amortized cost	38,220	49,978
Gross unrealized gains	292	424
Fair value	38,512	50,402
U.S. treasury securities
Available-for-sale securities
Amortized cost	4,150	21,302
Gross unrealized gains	5	67
Fair value	4,155	21,369
Corporate investments
Available-for-sale securities
Fair value	21,149	37,155
Funds held for clients
Available-for-sale securities
Fair value	$ 64,099	$ 86,022

Corporate Investments and Fun_4

Corporate Investments and Funds Held For Clients - Classification (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Corporate Investments and Funds Held for Clients
Cash and cash equivalents	$ 221,514	$ 100,529	$ 250,851
Corporate investments	18,554		34,556
Funds held for clients	1,378,975		1,327,304
Long-term prepaid expenses and other	2,595		2,599
Total investments at fair value	1,621,638		1,615,310
Available-for-sale securities
Available-for-sale securities in an unrealized loss position	0		$ 0
Gross realized gains and losses on the sale of available-for-sale securities	0	0
Credit impairment losses	0
Reclassification out of Accumulated Other Comprehensive Income
Available-for-sale securities
Gross realized gains and losses on the sale of available-for-sale securities	$ 0	$ 0

Corporate Investments and Fun_5

Corporate Investments and Funds Held For Clients - Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Expected maturities of available-for-sale securities, amortized cost
One year or less	$ 75,701
One year to two years	8,939
Total available-for-sale securities	84,640	$ 122,266
Expected maturities of available-for-sale securities, fair value
One year or less	76,152
One year to two years	9,096
Total available-for-sale securities	$ 85,248	$ 123,177

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019
Fair value measurement
Cash and cash equivalents	$ 221,514	$ 250,851	$ 100,529
Funds held for clients' cash and cash equivalents	1,314,876	1,241,282	$ 1,035,305
Total investments at fair value	1,621,638	1,615,310
Available-for-sale securities:
Total available-for-sale securities	85,248	123,177
Level 1
Fair value measurement
Cash and cash equivalents	221,514	250,851
Funds held for clients' cash and cash equivalents	1,314,876	1,241,282
Total investments at fair value	1,536,390	1,492,133
Level 2
Fair value measurement
Total investments at fair value	85,248	123,177
Available-for-sale securities:
Total available-for-sale securities	85,248	123,177
Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Commercial paper
Available-for-sale securities:
Total available-for-sale securities		6,649
Commercial paper | Level 2
Available-for-sale securities:
Total available-for-sale securities		6,649
Corporate bonds
Available-for-sale securities:
Total available-for-sale securities	42,581	44,757
Corporate bonds | Level 2
Available-for-sale securities:
Total available-for-sale securities	42,581	44,757
Asset-backed securities
Available-for-sale securities:
Total available-for-sale securities	38,512	50,402
Asset-backed securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	38,512	50,402
U.S. treasury securities
Available-for-sale securities:
Total available-for-sale securities	4,155	21,369
U.S. treasury securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	$ 4,155	$ 21,369

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, 2020
Debt
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
Outstanding borrowings		$ 100,000
Minimum
Debt
Interest coverage ratio	3
Maximum
Debt
Net total leverage ratio	4
Senior secured leverage ratio	3.50
LIBOR | Minimum
Debt
Margin on base rate	0.875%
LIBOR | Maximum
Debt
Margin on base rate	1.375%
Adjusted base rate | Minimum
Debt
Margin on base rate	0.00%
Adjusted base rate | Maximum
Debt
Margin on base rate	0.375%

Stock-Based Compensation - Gene

Stock-Based Compensation - General Information (Details) shares in Thousands	3 Months Ended
	Sep. 30, 2020shares
Equity Incentive Plans
Equity Incentive Plans
Number of shares of common stock reserved for issuance	11,931
Number of shares allocated but not yet issued that are subject to outstanding options or awards	2,673
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%

Stock-Based Compensation - Ince

Stock-Based Compensation - Incentive Plans Activity (Details) - Equity Incentive Plans shares in Thousands	3 Months Ended
	Sep. 30, 2020shares
Shares Available for Grant
Balance at the beginning of the year	9,519
RSUs granted	(465)
MSUs granted	(58)
Shares withheld in settlement of taxes and/or exercise price	256
Forfeitures	44
Shares removed	(38)
Balance at the end of the year	9,258

Stock-Based Compensation Expens

Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Benefit Plans
Total stock-based compensation expense	$ 14,277	$ 12,062
Stock-based compensation expense capitalized in internal-use software costs	769	656
Cost of revenues
Benefit Plans
Total stock-based compensation expense	1,832	1,249
Sales and marketing
Benefit Plans
Total stock-based compensation expense	3,880	3,968
Research and development
Benefit Plans
Total stock-based compensation expense	2,230	1,278
General and administrative
Benefit Plans
Total stock-based compensation expense	6,335	$ 5,567
Modified performance-based restricted stock unit awards
Benefit Plans
Total stock-based compensation expense	$ 860

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Options Outstanding, Number of Shares
Balance at the beginning of the year	1,255
Options granted	0	0
Options exercised	(88)
Balance at the end of the year	1,167		1,255
Options Outstanding, Weighted average exercise price
Balance at the beginning of the period (in dollars per share)	$ 12.43
Options exercised (in dollars per share)	6.01
Balance at the end of the period (in dollars per share)	$ 12.91		$ 12.43
Options Additional Disclosures
Weighted average remaining contractual term	2 years 9 months 3 days		2 years 11 months 15 days
Aggregate intrinsic value at the beginning of the year	$ 167,406
Weighted average remaining contractual term of options vested and exercisable at the end of the year (years)	2 years 9 months 3 days
Aggregate intrinsic value at the end of the year	$ 173,184		$ 167,406
Options vested and exercisable at the end of the year (in shares)	1,167
Options vested and exercisable at the end of the year, weighted average exercise price (in dollars per share)	$ 12.91
Options vested and exercisable intrinsic value	$ 173,184
Total intrinsic value of options exercised	$ 11,408	$ 671

Stock-Based Compensation - RSU

Stock-Based Compensation - RSU activity (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Unrecognized Compensation Costs Not yet Recognized, Net of Estimated Forfeitures
Total unrecognized compensation cost, net of estimated forfeitures related to unvested RSUs | $	$ 92,872
Weighted average period to recognize unrecognized compensation cost	2 years 1 month 9 days
RSUs Outstanding Rollforward, Units
RSU Balance at the beginning of the year | shares	1,626
RSUs granted | shares	465
RSUs vested | shares	(599)
RSUs forfeited | shares	(44)
RSU Balance at the end of the year | shares	1,448
RSUs expected to vest at the end of the year | shares	1,345
RSUs Outstanding, Weighted average grant date fair value
RSU Balance at the beginning of the year | $ / shares	$ 73.96
RSUs granted | $ / shares	131.81
RSUs vested | $ / shares	64.40
RSUs forfeited | $ / shares	75.94
RSU Balance at the end of the year | $ / shares	98.81
RSUs expected to vest at the end of the year | $ / shares	$ 98.85
Minimum
Equity Incentive Plans
Vesting period	3 years
Maximum
Equity Incentive Plans
Vesting period	4 years

Stock-Based Compensation - MSUs

Stock-Based Compensation - MSUs Information (Details) - Market share units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Aug. 31, 2020	Sep. 30, 2020
Equity Incentive Plans
Number of shares grants	58
Grant date fair value	$ 178.04
Vesting period	3 years
Percentage of award shares eligible to vest	200.00%
Valuation assumptions:
Expected dividend yield		0.00%
Expected volatility		52.00%
Expected term (years)		3 years 14 days
Risk-free interest rate		0.18%
Unrecognized Compensation Costs Not yet Recognized, Net of Estimated Forfeitures
Total unrecognized compensation cost, net of estimated forfeitures related to unvested MSUs		$ 8,541
Weighted average period to recognize unrecognized compensation cost		2 years 11 months 1 day

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Taxes
Effective tax rate for the period (as a percent)	(290.30%)	(114.80%)
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, 2020	Sep. 30, 2019
Anti-dilutive securities excluded from diluted per share calculation
Anti-dilutive securities excluded	520	624
Numerator:
Net income	$ 12,460	$ 13,906
Weighted-average shares used in computing net income per share:
Basic (in shares)	54,015	53,287
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units and employee stock purchase plan shares	2,035	2,426
Diluted (in shares)	56,050	55,713
Net income per share:
Basic (in dollars per share)	$ 0.23	$ 0.26
Diluted (in dollars per share)	$ 0.22	$ 0.25
Restricted stock units
Anti-dilutive securities excluded from diluted per share calculation
Anti-dilutive securities excluded	462	624
Market share units
Anti-dilutive securities excluded from diluted per share calculation
Anti-dilutive securities excluded	58