Paylocity Holding (PCTY) 10-Q 4 Feb 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Dec. 31, 2021	Jan. 28, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2021
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		55,110,343
Entity Central Index Key	0001591698
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 84,104	$ 202,287
Corporate investments	0	4,456
Accounts receivable, net	9,830	6,267
Deferred contract costs	50,294	44,230
Prepaid expenses and other	22,795	15,966
Total current assets before funds held for clients	167,023	273,206
Funds held for clients	1,920,063	1,759,677
Total current assets	2,087,086	2,032,883
Capitalized internal-use software, net	53,107	45,018
Property and equipment, net	62,425	59,835
Operating lease right-of-use assets	49,611	43,984
Intangible assets, net	35,175	13,027
Goodwill	68,326	33,650
Long-term deferred contract costs	191,385	170,663
Long-term prepaid expenses and other	6,778	4,223
Deferred income tax assets	34,697	11,602
Total assets	2,588,590	2,414,885
Current liabilities:
Accounts payable	6,600	4,230
Accrued expenses	79,507	103,109
Total current liabilities before client fund obligations	86,107	107,339
Client fund obligations	1,920,063	1,759,677
Total current liabilities	2,006,170	1,867,016
Long-term operating lease liabilities	71,877	67,201
Other long-term liabilities	2,069	1,958
Deferred income tax liabilities	1,781	1,780
Total liabilities	2,081,897	1,937,955
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2021 and December 31, 2021	0	0
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2021 and December 31, 2021; 54,594 shares issued and outstanding at June 30, 2021 and 55,105 shares issued and outstanding at December 31, 2021	55	55
Additional paid-in capital	231,106	241,718
Retained earnings	275,876	235,091
Accumulated other comprehensive income (loss)	(344)	66
Total stockholders' equity	506,693	476,930
Total liabilities and stockholders’ equity	$ 2,588,590	$ 2,414,885

Unaudited Consolidated Balanc_2

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2021	Jun. 30, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000	5,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	155,000	155,000
Common stock, shares issued (in shares)	55,105	54,594
Common stock, shares outstanding (in shares)	55,105	54,594

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Revenues:
Recurring and other revenue	$ 195,041	$ 145,393	$ 375,865	$ 280,268
Interest income on funds held for clients	996	936	1,869	1,855
Total revenues	196,037	146,329	377,734	282,123
Cost of revenues	70,821	53,542	134,070	102,922
Gross profit	125,216	92,787	243,664	179,201
Operating expenses:
Sales and marketing	52,219	37,775	102,104	75,449
Research and development	25,278	19,338	48,354	37,985
General and administrative	39,581	29,323	74,816	55,967
Total operating expenses	117,078	86,436	225,274	169,401
Operating income	8,138	6,351	18,390	9,800
Other expense	(372)	(379)	(489)	(636)
Income before income taxes	7,766	5,972	17,901	9,164
Income tax benefit	(2,087)	(3,670)	(22,884)	(12,938)
Net income	9,853	9,642	40,785	22,102
Other comprehensive loss, net of tax	(335)	(187)	(410)	(410)
Comprehensive income	$ 9,518	$ 9,455	$ 40,375	$ 21,692
Net income per share:
Basic (in dollars per share)	$ 0.18	$ 0.18	$ 0.74	$ 0.41
Diluted (in dollars per share)	$ 0.17	$ 0.17	$ 0.72	$ 0.39
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,067	54,305	54,938	54,160
Diluted (in shares)	56,468	56,343	56,486	56,122

Unaudited Consolidated Statem_2

Unaudited Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Jun. 30, 2020		53,792
Beginning balance at Jun. 30, 2020	$ 392,908	$ 54	$ 227,907	$ 164,272	$ 675
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	32,233		32,233
Stock options exercised (in shares)		234
Stock options exercised	1,932		1,932
Issuance of common stock upon vesting of restricted stock units (in shares)		608
Issuance of common stock under employee stock purchase plan (in shares)		60
Issuance of common stock under employee stock purchase plan	6,100		6,100
Shares withheld in settlement of taxes and/or exercise price (in shares)		(324)
Net settlement for taxes and/or exercise price related to equity awards	(46,647)		(46,647)
Unrealized losses on securities, net of tax	(411)				(411)
Currency translation adjustments	1				1
Net income	22,102			22,102
Ending balance (in shares) at Dec. 31, 2020		54,370
Ending balance at Dec. 31, 2020	408,218	$ 54	221,525	186,374	265
Beginning balance (in shares) at Sep. 30, 2020		54,223
Beginning balance at Sep. 30, 2020	386,820	$ 54	209,582	176,732	452
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	17,187		17,187
Stock options exercised (in shares)		146
Stock options exercised	1,403		1,403
Issuance of common stock upon vesting of restricted stock units (in shares)		9
Issuance of common stock under employee stock purchase plan (in shares)		60
Issuance of common stock under employee stock purchase plan	6,100		6,100
Shares withheld in settlement of taxes and/or exercise price (in shares)		(68)
Net settlement for taxes and/or exercise price related to equity awards	(12,747)		(12,747)
Unrealized losses on securities, net of tax	(188)				(188)
Currency translation adjustments	1				1
Net income	9,642			9,642
Ending balance (in shares) at Dec. 31, 2020		54,370
Ending balance at Dec. 31, 2020	$ 408,218	$ 54	221,525	186,374	265
Beginning balance (in shares) at Jun. 30, 2021	54,594	54,594
Beginning balance at Jun. 30, 2021	$ 476,930	$ 55	241,718	235,091	66
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	49,228		49,228
Stock options exercised (in shares)		195
Stock options exercised	1,812		1,812
Issuance of common stock upon vesting of restricted stock units (in shares)		536
Issuance of common stock under employee stock purchase plan (in shares)		53
Issuance of common stock under employee stock purchase plan	7,216		7,216
Shares withheld in settlement of taxes and/or exercise price (in shares)		(273)
Net settlement for taxes and/or exercise price related to equity awards	(68,868)		(68,868)
Unrealized losses on securities, net of tax	(410)				(410)
Net income	$ 40,785			40,785
Ending balance (in shares) at Dec. 31, 2021	55,105	55,105
Ending balance at Dec. 31, 2021	$ 506,693	$ 55	231,106	275,876	(344)
Beginning balance (in shares) at Sep. 30, 2021		55,019
Beginning balance at Sep. 30, 2021	467,573	$ 55	201,504	266,023	(9)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	28,122		28,122
Stock options exercised (in shares)		44
Stock options exercised	383		383
Issuance of common stock upon vesting of restricted stock units (in shares)		12
Issuance of common stock under employee stock purchase plan (in shares)		53
Issuance of common stock under employee stock purchase plan	7,216		7,216
Shares withheld in settlement of taxes and/or exercise price (in shares)		(23)
Net settlement for taxes and/or exercise price related to equity awards	(6,119)		(6,119)
Unrealized losses on securities, net of tax	(335)				(335)
Net income	$ 9,853			9,853
Ending balance (in shares) at Dec. 31, 2021	55,105	55,105
Ending balance at Dec. 31, 2021	$ 506,693	$ 55	$ 231,106	$ 275,876	$ (344)

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 40,785	$ 22,102
Adjustments to reconcile net income to net cash provided by operating activities
Stock-based compensation expense	45,802	30,936
Depreciation and amortization expense	23,383	21,071
Deferred income tax benefit	(22,952)	(12,940)
Provision for credit losses	103	98
Net accretion of discounts and amortization of premiums on available-for-sale securities	221	255
Amortization of debt issuance costs	90	83
Other	247	515
Changes in operating assets and liabilities:
Accounts receivable	(916)	(1,287)
Deferred contract costs	(26,786)	(23,431)
Prepaid expenses and other	(10,008)	(3,388)
Accounts payable	1,403	1,070
Accrued expenses and other	(24,514)	(15,412)
Net cash provided by operating activities	26,858	19,672
Cash flows from investing activities:
Purchases of available-for-sale securities	(190,000)	0
Proceeds from sales and maturities of available-for-sale securities	60,391	58,996
Capitalized internal-use software costs	(17,966)	(14,832)
Purchases of property and equipment	(10,528)	(6,045)
Acquisition of business, net of cash acquired	(60,234)	(14,992)
Net cash provided by (used in) investing activities	(218,337)	23,127
Cash flows from financing activities:
Net change in client fund obligations	160,325	876,982
Proceeds from employee stock purchase plan	7,216	6,100
Taxes paid related to net share settlement of equity awards	(67,109)	(44,749)
Payment of debt issuance costs	(41)	(17)
Net cash provided by financing activities	100,391	838,316
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents	(91,088)	881,115
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of period	1,945,881	1,492,133
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of period	1,854,793	2,373,248
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment, accrued but not paid	125	0
Liabilities assumed for acquisition	1,874	281
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	126	584
Refunds received for income taxes	(115)	(110)
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	84,104	218,696
Funds held for clients' cash and cash equivalents	1,770,689	2,154,552
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$ 1,854,793	$ 2,373,248

Organization and Description of

Organization and Description of Business	6 Months Ended
	Dec. 31, 2021
Organization and Description of Business [Abstract]
Organization and Description of Business	(1) Organization and Description of Business

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
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 may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. (b) Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s financial position, results of operations, changes in stockholders’ equity and cash flows. The results of operations for three and six months ended December 31, 2021 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, 2021 included in the Company’s Annual Report on Form 10-K. (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 Issued Accounting Standards

Revenue

Revenue	6 Months Ended
	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
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 offers term agreements to its clients, 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. 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 Six Months Ended 2020 2021 2020 2021 Recurring fees $ 140,461 $ 188,159 $ 270,153 $ 362,856 Implementation services and other 4,932 6,882 10,115 13,009 Total revenues from contracts $ 145,393 $ 195,041 $ 280,268 $ 375,865 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 Six Months Ended 2020 2021 2020 2021 Balance at beginning of the period $ 7,670 $ 8,717 $ 8,434 $ 8,734 Deferral of revenue 2,860 5,407 5,990 9,760 Revenue recognized (3,465) (4,783) (7,359) (9,153) Balance at end of the period $ 7,065 $ 9,341 $ 7,065 $ 9,341 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 $5,502 in fiscal 2022, $3,351 in fiscal 2023 and $488 in fiscal 2024 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 December 31, 2020 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 118,644 $ 14,071 $ (6,898) $ 125,817 Costs to fulfill a contract 49,808 8,143 (2,294) 55,657 Total $ 168,452 $ 22,214 $ (9,192) $ 181,474 Three Months Ended December 31, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 149,222 $ 14,929 $ (8,587) $ 155,564 Costs to fulfill a contract 76,785 13,100 (3,770) 86,115 Total $ 226,007 $ 28,029 $ (12,357) $ 241,679 Six Months Ended December 31, 2020 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 113,575 $ 25,711 $ (13,469) $ 125,817 Costs to fulfill a contract 44,468 15,504 (4,315) 55,657 Total $ 158,043 $ 41,215 $ (17,784) $ 181,474 Six Months Ended December 31, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 145,718 $ 26,666 $ (16,820) $ 155,564 Costs to fulfill a contract 69,175 24,040 (7,100) 86,115 Total $ 214,893 $ 50,706 $ (23,920) $ 241,679 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 $43,248 as of December 31, 2021, 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.

Business Combinations

Business Combinations	6 Months Ended
	Dec. 31, 2021
Business Combinations [Abstract]
Business Combinations	4) Business Combinations On August 31, 2021, the Company entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Blue Marble Payroll, LLC (“Blue Marble”) and its equity holders and acquired all of the issued and outstanding equity interests of Blue Marble for cash consideration of $60,961, subject to customary purchase price adjustments. Blue Marble’s payroll platform enables U.S.-based companies to manage payroll for employees outside the U.S. in line with complex local and country-specific requirements across many countries. This acquisition enables the Company to better serve its clients in managing their international workforces through a unified solution to pay employees, automate processes and stay compliant with regulations in other countries. An entity affiliated with Steven I. Sarowitz, the Chairman of the Board of Directors and the largest shareholder of the Company, was the largest equity holder of Blue Marble. The Board of Directors of the Company appointed the Audit Committee, which is comprised solely of directors who are independent of the management of Blue Marble, the Blue Marble equity holders and the Company, to evaluate, assess and negotiate on its behalf the terms and conditions in the Purchase Agreement. The Audit Committee and the disinterested directors of the Company’s Board of Directors unanimously approved the Purchase Agreement and transactions specified within it. The Company accounts for business combinations in accordance with ASC 805, Business Combinations. The Company applied the acquisition method of accounting and recorded the assets acquired and liabilities assumed at their respective estimated fair values as of the date of acquisition with the excess consideration paid recorded as goodwill. The fair values of assets acquired and liabilities assumed are currently provisional and may change as the estimates and assumptions are subject to change over the measurement period as the Company continues to evaluate and analyze the transaction. The measurement period will end no later than one year from the acquisition date. The preliminary allocation of the purchase price for Blue Marble is as follows: August 31, 2021 Proprietary technology $ 21,200 Client relationships 3,100 Trade names 1,200 Goodwill 34,676 Other assets acquired 2,659 Liabilities assumed (1,874) Total purchase price $ 60,961 The results from this acquisition have been included in the Company’s consolidated financial statements since the closing of the acquisition and are not material to the Company. Pro forma information was not presented because the effect of the acquisition was not material to the Company’s consolidated financial statements. The goodwill related to this transaction is primarily related to the assembled workforce and growth opportunities from the expansion of the Company’s product offerings. The goodwill associated with this acquisition is deductible for income tax purposes. Direct costs related to the acquisition were immaterial and recorded as General and administrative expenses as incurred.

Balance Sheet Information

Balance Sheet Information	6 Months Ended
	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Information	(5) 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, 2021 $ 800 Charged to expense 103 Write-offs (97) Balance at December 31, 2021 $ 806 Capitalized internal-use software and accumulated amortization were as follows: June 30, December 31, Capitalized internal-use software $ 150,922 $ 171,226 Accumulated amortization (105,904) (118,119) Capitalized internal-use software, net $ 45,018 $ 53,107 Amortization of capitalized internal-use software costs is included in Cost of revenues and amounted to $5,882 and $6,087 for the three months ended December 31, 2020 and 2021, respectively, and $11,268 and $12,215 for the six months ended December 31, 2020 and 2021. Property and equipment, net consist of the following: June 30, December 31, Office equipment $ 5,211 $ 5,709 Computer equipment 45,420 50,883 Furniture and fixtures 13,104 12,791 Software 6,641 7,494 Leasehold improvements 46,814 47,192 Time clocks rented by clients 5,399 6,039 Total 122,589 130,108 Accumulated depreciation (62,754) (67,683) Property and equipment, net $ 59,835 $ 62,425 Depreciation expense amounted to $4,014 and $3,974 for the three months ended December 31, 2020 and 2021, respectively, and $8,019 and $7,816 for the six months ended December 31, 2020 and 2021, respectively. The following table summarizes changes in goodwill during the six months ended December 31, 2021: December 31, Balance at June 30, 2021 $ 33,650 Additions attributable to acquisition 34,676 Balance at December 31, 2021 $ 68,326 Refer to Note 4 for further details on the current year acquisition. The Company’s amortizable intangible assets and estimated useful lives are as follows: June 30, December 31, Weighted Proprietary technology $ 6,129 $ 27,329 6.6 Client relationships 19,200 22,300 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 440 1,640 5.0 Total 27,369 52,869 Accumulated amortization (14,342) (17,694) Intangible assets, net $ 13,027 $ 35,175 Amortization expense for acquired intangible assets was $940 and $2,000 for the three months ended December 31, 2020 and 2021, respectively, and $1,784 and $3,352 for the six months ended December 31, 2020 and 2021 respectively. Future amortization expense for acquired intangible assets as of December 31, 2021 is as follows: Remainder of fiscal 2022 $ 3,981 Fiscal 2023 7,808 Fiscal 2024 6,803 Fiscal 2025 5,748 Fiscal 2026 4,129 Thereafter 6,706 Total $ 35,175 The components of accrued expenses were as follows: June 30, December 31, Accrued payroll and personnel costs $ 73,969 $ 46,764 Operating lease liabilities 7,549 6,450 Deferred revenue 9,442 11,792 Other 12,149 14,501 Total accrued expenses $ 103,109 $ 79,507

Corporate Investments and Funds

Corporate Investments and Funds Held for Clients	6 Months Ended
	Dec. 31, 2021
Corporate Investments and Funds Held for Clients [Abstract]
Corporate Investments and Funds Held for Clients	(6) Corporate Investments and Funds Held for Clients Corporate investments and funds held for clients consist of the following: June 30, 2021 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 202,287 $ — $ — $ 202,287 Funds held for clients' cash and cash equivalents 1,743,594 — — 1,743,594 Available-for-sale securities: Corporate bonds 13,390 70 — 13,460 Asset-backed securities 7,062 17 — 7,079 Total available-for-sale securities (1) 20,452 87 — 20,539 Total investments $ 1,966,333 $ 87 $ — $ 1,966,420 (1) Included within the fair value of total available-for-sale securities above is $4,456 of corporate investments and $16,083 of funds held for clients. December 31, 2021 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 84,104 $ — $ — $ 84,104 Funds held for clients' cash and cash equivalents 1,770,689 — — 1,770,689 Available-for-sale securities: Commercial paper 62,240 3 (16) 62,227 Corporate bonds 42,873 — (286) 42,587 Asset-backed securities 10,361 1 (26) 10,336 Certificates of deposit 20,500 — (7) 20,493 U.S treasury securities 4,042 — (19) 4,023 U.S government agency securities 7,000 — (101) 6,899 Other 2,824 — (15) 2,809 Total available-for-sale securities (2) 149,840 4 (470) 149,374 Total investments $ 2,004,633 $ 4 $ (470) $ 2,004,167 (2) All available-for-sale securities are included in funds held for clients. Cash and cash equivalents and funds held for clients’ cash and cash equivalents include demand deposit accounts, money market funds and commercial paper at June 30, 2021 and December 31, 2021. Classification of investments on the unaudited consolidated balance sheets is as follows: June 30, 2021 December 31, 2021 Cash and cash equivalents $ 202,287 $ 84,104 Corporate investments 4,456 — Funds held for clients 1,759,677 1,920,063 Total investments $ 1,966,420 $ 2,004,167 Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of December 31, 2021 had fair market value as follows: December 31, 2021 Securities in an unrealized loss Gross Fair Commercial paper $ (16) $ 35,463 Corporate bonds (286) 42,587 Asset-backed securities (26) 9,664 Certificates of deposit (7) 15,243 U.S. treasury securities (19) 4,023 U.S. government agency securities (101) 6,899 Other (15) 2,809 Total available-for-sale securities $ (470) $ 116,688 There were no available-for-sale securities in an unrealized loss position at June 30, 2021. As a result, no securities have been in an unrealized loss position for more than 12 months as of December 31, 2021. 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 or six months ended December 31, 2020 or 2021. All securities in the Company’s portfolio held an A-1 rating or better as of December 31, 2021. 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 or six months ended December 31, 2020 or 2021. There were no realized gains or losses on the sale of available-for-sale securities for the three or six months ended December 31, 2020 or 2021. Expected maturities of available-for-sale securities at December 31, 2021 are as follows: Amortized Fair One year or less $ 94,906 $ 94,867 One year to two years 33,284 33,124 Two years to three years 16,637 16,437 Three years to five years 5,013 4,946 Total available-for-sale securities $ 149,840 $ 149,374

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurement	(7) 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, 2021 and December 31, 2021 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, certificate of deposit, U.S. treasury securities, U.S. government agency and other 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, 2021 or December 31, 2021. The fair value level for the Company’s cash and cash equivalents and available-for-sale securities is as follows: June 30, 2021 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 202,287 $ 202,287 $ — $ — Funds held for clients' cash and cash equivalents 1,743,594 1,743,594 — — Available-for-sale securities: Corporate bonds 13,460 — 13,460 — Asset-backed securities 7,079 — 7,079 — Total available-for-sale securities 20,539 — 20,539 — Total investments $ 1,966,420 $ 1,945,881 $ 20,539 $ — December 31, 2021 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 84,104 $ 84,104 $ — $ — Funds held for clients' cash and cash equivalents 1,770,689 1,770,289 400 — Available-for-sale securities: Commercial paper 62,227 — 62,227 — Corporate bonds 42,587 — 42,587 — Asset-backed securities 10,336 — 10,336 — Certificates of deposit 20,493 — 20,493 — U.S. treasury securities 4,023 — 4,023 — U.S government agency securities 6,899 — 6,899 — Other 2,809 — 2,809 — Total available-for-sale securities 149,374 — 149,374 — Total investments $ 2,004,167 $ 1,854,393 $ 149,774 $ —

Debt

Debt	6 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Debt	(8) Debt In July 2019, the Company entered into a five 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 December 31, 2021, the Company was in compliance with all of the aforementioned covenants.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	(9) 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 December 31, 2021, the Company had 12,006 shares allocated to the plans, of which 2,023 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 six months ended December 31, 2021: Number of Available for grant at July 1, 2021 10,312 RSUs granted (577) MSUs granted (48) Shares withheld in settlement of taxes and/or exercise price 273 Forfeitures 82 Shares removed (59) Available for grant at December 31, 2021 9,983 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 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 December 31, Six Months Ended December 31, 2020 2021 2020 2021 Cost of revenues $ 1,969 $ 3,317 $ 3,801 $ 5,924 Sales and marketing 3,965 5,716 7,845 10,875 Research and development 2,738 5,406 4,968 9,108 General and administrative 7,987 11,804 14,322 19,895 Total stock-based compensation expense $ 16,659 $ 26,243 $ 30,936 $ 45,802 In addition, the Company capitalized $528 and $1,879 of stock-based compensation expense in its capitalized internal-use software costs in the three months ended December 31, 2020 and 2021, respectively, and $1,297 and $3,426 during the six months ended December 31, 2020 and 2021, respectively. In August 2020, 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. The Company recorded $1,924 and $1,815 in stock-based compensation expense during the three months ended December 31, 2020 and 2021, respectively, and $2,784 and $3,058 during the six months ended December 31, 2020 and 2021, respectively, related to these modified performance-based restricted stock units. There were no stock options granted during the six months ended December 31, 2021. The table below presents stock option activity during the six months ended December 31, 2021: Outstanding Options Number of Weighted Weighted Aggregate Balance at July 1, 2021 765 $ 16.06 2.4 $ 133,550 Options exercised (195) $ 9.34 Balance at December 31, 2021 570 $ 18.35 2.1 $ 124,198 Options vested and exercisable at December 31, 2021 570 $ 18.35 2.1 $ 124,198 The total intrinsic value of options exercised was $25,869 and $11,759 during the three months ended December 31, 2020 and 2021, respectively, and $37,277 and $47,627 during the six months ended December 31, 2020 and 2021, 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 six months ended December 31, 2021: Units Weighted RSU balance at July 1, 2021 1,388 $ 100.33 RSUs granted 577 $ 253.08 RSUs vested (536) $ 84.52 RSUs forfeited (77) $ 151.56 RSU balance at December 31, 2021 1,352 $ 169.28 At December 31, 2021, there was $134,813 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 2.0 years. The Company also grants MSUs under the 2014 Plan with terms determined at the discretion of the Committee. 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 The following table represents market share unit activity during the six months ended December 31, 2021: Units Weighted MSU balance at July 1, 2021 58 $ 178.04 MSUs granted 48 $ 361.02 MSUs forfeited (5) $ 178.04 MSU balance at December 31, 2021 101 $ 263.83 The Company estimated the grant date fair value of the MSUs using a Monte Carlo simulation model that included the following assumptions: Six Months Ended 2020 2021 Valuation assumptions: Expected dividend yield —% —% Expected volatility 52.0 % 47.4 - 47.5% Expected term (years) 3.04 2.92 - 3.04 Risk‑free interest rate 0.18% 0.43 - 0.47% At December 31, 2021, there was $17,832 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested MSUs. That cost is expected to be recognized over a period of 2.4 years.

Litigation

Litigation	6 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Litigation	(10) Litigation On November 16, 2020, a potential class action complaint was filed against the Company with the Circuit Court of Cook County alleging that the Company violated the Illinois Biometric Information Privacy Act. The complaint seeks statutory damages, attorney’s fees and other costs. The Company is unable to estimate any reasonably possible loss, or range of loss, with respect to this matter at this time. The Company intends to vigorously defend against this lawsuit. 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	6 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
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 (61.5)% and (26.9)% for the three months ended December 31, 2020 and 2021, respectively. The Company’s effective tax rate for the three months ended December 31, 2020 was lower than the federal statutory rate of 21% primarily due to excess tax benefits from employee stock-based compensation and state and local income taxes, partially offset by an increase to the valuation allowance. The Company's effective tax rate for the three months ended December 31, 2021 was lower than the federal statutory rate of 21% primarily due to excess tax benefits from employee stock-based compensation. The Company's effective tax rate was (141.2)% and (127.8)% for the six months ended December 31, 2020 and 2021, respectively. The Company's effective tax rate for the six months ended December 31, 2020, and December 31, 2021 was lower than the federal statutory rate of 21% primarily due to excess tax benefits from employee stock-based compensation and state and local income taxes, partially offset by an increase to the valuation allowance.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Dec. 31, 2021
Earnings Per Share [Abstract]
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 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 Six Months Ended 2020 2021 2020 2021 Numerator: Net income $ 9,642 $ 9,853 $ 22,102 $ 40,785 Denominator: Weighted-average shares used in computing net income per share: Basic 54,305 55,067 54,160 54,938 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units, market share units and employee stock purchase plan shares 2,038 1,401 1,962 1,548 Diluted 56,343 56,468 56,122 56,486 Net income per share: Basic $ 0.18 $ 0.18 $ 0.41 $ 0.74 Diluted $ 0.17 $ 0.17 $ 0.39 $ 0.72 The following table summarizes the outstanding restricted stock units and market share units as of December 31, 2020 and 2021 that were excluded from the diluted per share calculation for the periods presented because to include them would have been antidilutive: Three Months Ended Six Months Ended 2020 2021 2020 2021 Market share units 14 31 19 31 Restricted stock units — 45 — 46 Total 14 76 19 77

Subsequent Events

Subsequent Events	6 Months Ended
	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	(13) Subsequent Events On January 18, 2022, the Company acquired all of the shares outstanding of Cloudsnap, Inc., ("Cloudsnap") through a merger for cash consideration of $50,000, subject to customary purchase price adjustments. Cloudsnap is a provider of a flexible, low-code solution for integrating disparate business applications. This transaction enables the Company to deliver modern integrations and seamless data sharing between critical systems more efficiently and effectively, while helping to unify and automate business processes across clients' HR, finance, benefits, and other systems. The Company will account for the acquisition as a business combination in accordance with ASC 805: Business Combinations using the acquisition method of accounting and recognize assets and liabilities at fair value as of the date of acquisition. The results from this acquisition will not have a material impact to the Company's consolidated financial statements. In January 2022, the Company borrowed $50,000 under its revolving credit facility in connection with its acquisition of Cloudsnap.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
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.
Interim Unaudited Consolidated Financial Information	(b) Interim Unaudited Consolidated Financial Information
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.
Recently Issued Accounting Standards	(d) Recently Issued Accounting Standards

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Schedule of 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 Six Months Ended 2020 2021 2020 2021 Recurring fees $ 140,461 $ 188,159 $ 270,153 $ 362,856 Implementation services and other 4,932 6,882 10,115 13,009 Total revenues from contracts $ 145,393 $ 195,041 $ 280,268 $ 375,865
Schedule of changes in deferred revenue related to nonrefundable upfront fees	The following table summarizes the changes in deferred revenue (i.e. contract liability) related to these nonrefundable upfront fees as follows: Three Months Ended Six Months Ended 2020 2021 2020 2021 Balance at beginning of the period $ 7,670 $ 8,717 $ 8,434 $ 8,734 Deferral of revenue 2,860 5,407 5,990 9,760 Revenue recognized (3,465) (4,783) (7,359) (9,153) Balance at end of the period $ 7,065 $ 9,341 $ 7,065 $ 9,341
Schedule of deferred contract costs and the related amortization expense	The following tables present the deferred contract costs and the related amortization expense for these deferred contract costs: Three Months Ended December 31, 2020 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 118,644 $ 14,071 $ (6,898) $ 125,817 Costs to fulfill a contract 49,808 8,143 (2,294) 55,657 Total $ 168,452 $ 22,214 $ (9,192) $ 181,474 Three Months Ended December 31, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 149,222 $ 14,929 $ (8,587) $ 155,564 Costs to fulfill a contract 76,785 13,100 (3,770) 86,115 Total $ 226,007 $ 28,029 $ (12,357) $ 241,679 Six Months Ended December 31, 2020 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 113,575 $ 25,711 $ (13,469) $ 125,817 Costs to fulfill a contract 44,468 15,504 (4,315) 55,657 Total $ 158,043 $ 41,215 $ (17,784) $ 181,474 Six Months Ended December 31, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 145,718 $ 26,666 $ (16,820) $ 155,564 Costs to fulfill a contract 69,175 24,040 (7,100) 86,115 Total $ 214,893 $ 50,706 $ (23,920) $ 241,679

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Dec. 31, 2021
Business Combinations [Abstract]
Summary of the preliminary allocation of the purchase price for Blue Marble	The preliminary allocation of the purchase price for Blue Marble is as follows: August 31, 2021 Proprietary technology $ 21,200 Client relationships 3,100 Trade names 1,200 Goodwill 34,676 Other assets acquired 2,659 Liabilities assumed (1,874) Total purchase price $ 60,961

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	6 Months Ended
	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Schedule of activity in the allowance for credit losses related to accounts receivable	Activity in the allowance for credit losses related to accounts receivable was as follows: Balance at June 30, 2021 $ 800 Charged to expense 103 Write-offs (97) Balance at December 31, 2021 $ 806
Schedule of capitalized internal-use software and accumulated amortization	Capitalized internal-use software and accumulated amortization were as follows: June 30, December 31, Capitalized internal-use software $ 150,922 $ 171,226 Accumulated amortization (105,904) (118,119) Capitalized internal-use software, net $ 45,018 $ 53,107
Schedule of property and equipment, net	Property and equipment, net consist of the following: June 30, December 31, Office equipment $ 5,211 $ 5,709 Computer equipment 45,420 50,883 Furniture and fixtures 13,104 12,791 Software 6,641 7,494 Leasehold improvements 46,814 47,192 Time clocks rented by clients 5,399 6,039 Total 122,589 130,108 Accumulated depreciation (62,754) (67,683) Property and equipment, net $ 59,835 $ 62,425
Schedule of changes in goodwill	The following table summarizes changes in goodwill during the six months ended December 31, 2021: December 31, Balance at June 30, 2021 $ 33,650 Additions attributable to acquisition 34,676 Balance at December 31, 2021 $ 68,326
Schedule of amortizable intangible assets and estimated useful lives	The Company’s amortizable intangible assets and estimated useful lives are as follows: June 30, December 31, Weighted Proprietary technology $ 6,129 $ 27,329 6.6 Client relationships 19,200 22,300 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 440 1,640 5.0 Total 27,369 52,869 Accumulated amortization (14,342) (17,694) Intangible assets, net $ 13,027 $ 35,175
Schedule of future amortization expense for acquired intangible assets	Future amortization expense for acquired intangible assets as of December 31, 2021 is as follows: Remainder of fiscal 2022 $ 3,981 Fiscal 2023 7,808 Fiscal 2024 6,803 Fiscal 2025 5,748 Fiscal 2026 4,129 Thereafter 6,706 Total $ 35,175
Schedule of components of accrued expenses	The components of accrued expenses were as follows: June 30, December 31, Accrued payroll and personnel costs $ 73,969 $ 46,764 Operating lease liabilities 7,549 6,450 Deferred revenue 9,442 11,792 Other 12,149 14,501 Total accrued expenses $ 103,109 $ 79,507

Corporate Investments and Fun_2

Corporate Investments and Funds Held For Clients (Tables)	6 Months Ended
	Dec. 31, 2021
Corporate Investments and Funds Held for Clients [Abstract]
Schedule of corporate investments and funds held for clients	Corporate investments and funds held for clients consist of the following: June 30, 2021 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 202,287 $ — $ — $ 202,287 Funds held for clients' cash and cash equivalents 1,743,594 — — 1,743,594 Available-for-sale securities: Corporate bonds 13,390 70 — 13,460 Asset-backed securities 7,062 17 — 7,079 Total available-for-sale securities (1) 20,452 87 — 20,539 Total investments $ 1,966,333 $ 87 $ — $ 1,966,420 (1) Included within the fair value of total available-for-sale securities above is $4,456 of corporate investments and $16,083 of funds held for clients. December 31, 2021 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 84,104 $ — $ — $ 84,104 Funds held for clients' cash and cash equivalents 1,770,689 — — 1,770,689 Available-for-sale securities: Commercial paper 62,240 3 (16) 62,227 Corporate bonds 42,873 — (286) 42,587 Asset-backed securities 10,361 1 (26) 10,336 Certificates of deposit 20,500 — (7) 20,493 U.S treasury securities 4,042 — (19) 4,023 U.S government agency securities 7,000 — (101) 6,899 Other 2,824 — (15) 2,809 Total available-for-sale securities (2) 149,840 4 (470) 149,374 Total investments $ 2,004,633 $ 4 $ (470) $ 2,004,167 (2) All available-for-sale securities are included in funds held for clients.
Schedule of the classification of investments	Classification of investments on the unaudited consolidated balance sheets is as follows: June 30, 2021 December 31, 2021 Cash and cash equivalents $ 202,287 $ 84,104 Corporate investments 4,456 — Funds held for clients 1,759,677 1,920,063 Total investments $ 1,966,420 $ 2,004,167
Schedule of available-for-sale securities that have been in an unrealized loss position for less than 12 months	Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of December 31, 2021 had fair market value as follows: December 31, 2021 Securities in an unrealized loss Gross Fair Commercial paper $ (16) $ 35,463 Corporate bonds (286) 42,587 Asset-backed securities (26) 9,664 Certificates of deposit (7) 15,243 U.S. treasury securities (19) 4,023 U.S. government agency securities (101) 6,899 Other (15) 2,809 Total available-for-sale securities $ (470) $ 116,688
Schedule of expected maturities of available-for-sale securities	Expected maturities of available-for-sale securities at December 31, 2021 are as follows: Amortized Fair One year or less $ 94,906 $ 94,867 One year to two years 33,284 33,124 Two years to three years 16,637 16,437 Three years to five years 5,013 4,946 Total available-for-sale securities $ 149,840 $ 149,374

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of fair value level for cash and cash equivalents and available-for-sale securities measured on a recurring basis	The fair value level for the Company’s cash and cash equivalents and available-for-sale securities is as follows: June 30, 2021 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 202,287 $ 202,287 $ — $ — Funds held for clients' cash and cash equivalents 1,743,594 1,743,594 — — Available-for-sale securities: Corporate bonds 13,460 — 13,460 — Asset-backed securities 7,079 — 7,079 — Total available-for-sale securities 20,539 — 20,539 — Total investments $ 1,966,420 $ 1,945,881 $ 20,539 $ — December 31, 2021 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 84,104 $ 84,104 $ — $ — Funds held for clients' cash and cash equivalents 1,770,689 1,770,289 400 — Available-for-sale securities: Commercial paper 62,227 — 62,227 — Corporate bonds 42,587 — 42,587 — Asset-backed securities 10,336 — 10,336 — Certificates of deposit 20,493 — 20,493 — U.S. treasury securities 4,023 — 4,023 — U.S government agency securities 6,899 — 6,899 — Other 2,809 — 2,809 — Total available-for-sale securities 149,374 — 149,374 — Total investments $ 2,004,167 $ 1,854,393 $ 149,774 $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Schedule of changes in the number of shares available for grant under equity incentive plans	The following table summarizes changes in the number of shares available for grant under the Company’s equity incentive plans during the six months ended December 31, 2021: Number of Available for grant at July 1, 2021 10,312 RSUs granted (577) MSUs granted (48) Shares withheld in settlement of taxes and/or exercise price 273 Forfeitures 82 Shares removed (59) Available for grant at December 31, 2021 9,983
Schedule of stock-based compensation expense related to restricted stock units, market share units and the Employee Stock Purchase Plan	Stock-based compensation expense related to 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 December 31, Six Months Ended December 31, 2020 2021 2020 2021 Cost of revenues $ 1,969 $ 3,317 $ 3,801 $ 5,924 Sales and marketing 3,965 5,716 7,845 10,875 Research and development 2,738 5,406 4,968 9,108 General and administrative 7,987 11,804 14,322 19,895 Total stock-based compensation expense $ 16,659 $ 26,243 $ 30,936 $ 45,802
Schedule of stock option activity	The table below presents stock option activity during the six months ended December 31, 2021: Outstanding Options Number of Weighted Weighted Aggregate Balance at July 1, 2021 765 $ 16.06 2.4 $ 133,550 Options exercised (195) $ 9.34 Balance at December 31, 2021 570 $ 18.35 2.1 $ 124,198 Options vested and exercisable at December 31, 2021 570 $ 18.35 2.1 $ 124,198
Schedule of restricted stock unit activity	The following table represents restricted stock unit activity during the six months ended December 31, 2021: Units Weighted RSU balance at July 1, 2021 1,388 $ 100.33 RSUs granted 577 $ 253.08 RSUs vested (536) $ 84.52 RSUs forfeited (77) $ 151.56 RSU balance at December 31, 2021 1,352 $ 169.28
Schedule of market share unit activity	The following table represents market share unit activity during the six months ended December 31, 2021: Units Weighted MSU balance at July 1, 2021 58 $ 178.04 MSUs granted 48 $ 361.02 MSUs forfeited (5) $ 178.04 MSU balance at December 31, 2021 101 $ 263.83
Summary of the assumptions used for estimating the grant date fair value of MSUs	The Company estimated the grant date fair value of the MSUs using a Monte Carlo simulation model that included the following assumptions: Six Months Ended 2020 2021 Valuation assumptions: Expected dividend yield —% —% Expected volatility 52.0 % 47.4 - 47.5% Expected term (years) 3.04 2.92 - 3.04 Risk‑free interest rate 0.18% 0.43 - 0.47%

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Dec. 31, 2021
Earnings Per Share [Abstract]
Schedule of calculation of basic and diluted net income per share	The following table presents the calculation of basic and diluted net income per share: Three Months Ended Six Months Ended 2020 2021 2020 2021 Numerator: Net income $ 9,642 $ 9,853 $ 22,102 $ 40,785 Denominator: Weighted-average shares used in computing net income per share: Basic 54,305 55,067 54,160 54,938 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units, market share units and employee stock purchase plan shares 2,038 1,401 1,962 1,548 Diluted 56,343 56,468 56,122 56,486 Net income per share: Basic $ 0.18 $ 0.18 $ 0.41 $ 0.74 Diluted $ 0.17 $ 0.17 $ 0.39 $ 0.72
Summary of anti-dilutive securities	The following table summarizes the outstanding restricted stock units and market share units as of December 31, 2020 and 2021 that were excluded from the diluted per share calculation for the periods presented because to include them would have been antidilutive: Three Months Ended Six Months Ended 2020 2021 2020 2021 Market share units 14 31 19 31 Restricted stock units — 45 — 46 Total 14 76 19 77

Revenue - Disaggregation (Detai

Revenue - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Revenue
Period of term arrangements not cancellable by client			2 years
Disaggregation of revenue
Total revenues from contracts	$ 195,041	$ 145,393	$ 375,865	$ 280,268
Maximum
Revenue
Period of notice to cancel by client			60 days
Recurring fees
Disaggregation of revenue
Total revenues from contracts	188,159	140,461	$ 362,856	270,153
Implementation services and other
Disaggregation of revenue
Total revenues from contracts	$ 6,882	$ 4,932	$ 13,009	$ 10,115

Revenue - Deferred Revenue (Det

Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Changes in deferred revenue related to nonrefundable upfront fees
Beginning balance	$ 8,717	$ 7,670	$ 8,734	$ 8,434
Deferral of revenue	5,407	2,860	9,760	5,990
Revenue recognized	(4,783)	(3,465)	(9,153)	(7,359)
Ending balance	9,341	$ 7,065	9,341	$ 7,065
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 2022	5,502		5,502
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2023	3,351		3,351
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2024 and thereafter	$ 488		$ 488
Maximum
Revenue
Amortization period of nonrefundable upfront implementation fees	24 months

Revenue - Deferred Contract Cos

Revenue - Deferred Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Deferred contract costs
Amortization period of capitalized contract costs	7 years		7 years
Beginning Balance	$ 226,007	$ 168,452	$ 214,893	$ 158,043
Capitalized Costs	28,029	22,214	50,706	41,215
Amortization	(12,357)	(9,192)	(23,920)	(17,784)
Ending Balance	241,679	181,474	241,679	181,474
Costs to obtain a new contract
Deferred contract costs
Beginning Balance	149,222	118,644	145,718	113,575
Capitalized Costs	14,929	14,071	26,666	25,711
Amortization	(8,587)	(6,898)	(16,820)	(13,469)
Ending Balance	155,564	125,817	155,564	125,817
Costs to fulfill a contract
Deferred contract costs
Beginning Balance	76,785	49,808	69,175	44,468
Capitalized Costs	13,100	8,143	24,040	15,504
Amortization	(3,770)	(2,294)	(7,100)	(4,315)
Ending Balance	$ 86,115	$ 55,657	$ 86,115	$ 55,657

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Details) $ in Thousands	Dec. 31, 2021USD ($)
Remaining Performance Obligations
Minimum value of unsatisfied performance obligations on term-based contracts	$ 43,248
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Remaining Performance Obligations
Remaining performance obligation period	24 months

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Dec. 31, 2021	Jun. 30, 2021
Business Combinations
Goodwill		$ 68,326	$ 33,650
Blue Marble
Business Combinations
Cash consideration	$ 60,961
Goodwill	34,676
Other assets acquired	2,659
Liabilities assumed	(1,874)
Total purchase price	60,961
Blue Marble | Proprietary technology
Business Combinations
Intangible assets	21,200
Blue Marble | Client relationships
Business Combinations
Intangible assets	3,100
Blue Marble | Trade names
Business Combinations
Intangible assets	$ 1,200

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		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Activity in the allowance for credit losses
Beginning balance			$ 800
Charged to expense			103	$ 98
Write-offs			(97)
Ending balance	$ 806		806
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	171,226		171,226		$ 150,922
Accumulated amortization	(118,119)		(118,119)		(105,904)
Capitalized internal-use software, net	53,107		53,107		45,018
Property and equipment, net
Property and equipment, gross	130,108		130,108		122,589
Accumulated depreciation	(67,683)		(67,683)		(62,754)
Property and equipment, net	62,425		62,425		59,835
Depreciation expense	3,974	$ 4,014	7,816	8,019
Goodwill [Roll Forward]
Beginning balance			33,650
Additions attributable to acquisition			34,676
Ending balance	68,326		68,326
Cost of revenues
Capitalized internal-use software and accumulated amortization
Amortization of capitalized internal-use software	6,087	$ 5,882	12,215	$ 11,268
Office equipment
Property and equipment, net
Property and equipment, gross	5,709		5,709		5,211
Computer equipment
Property and equipment, net
Property and equipment, gross	50,883		50,883		45,420
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	12,791		12,791		13,104
Software
Property and equipment, net
Property and equipment, gross	7,494		7,494		6,641
Leasehold improvements
Property and equipment, net
Property and equipment, gross	47,192		47,192		46,814
Time clocks rented by clients
Property and equipment, net
Property and equipment, gross	$ 6,039		$ 6,039		$ 5,399

Balance Sheet Information - Int

Balance Sheet Information - Intangible Assets and Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Amortizable intangible assets
Amortizable intangible assets, gross	$ 52,869		$ 52,869		$ 27,369
Accumulated amortization	(17,694)		(17,694)		(14,342)
Intangible assets, net	35,175		35,175		13,027
Amortization expense for acquired intangible assets	2,000	$ 940	3,352	$ 1,784
Future amortization expense for acquired intangible assets
Remainder of fiscal 2022	3,981		3,981
Fiscal 2023	7,808		7,808
Fiscal 2024	6,803		6,803
Fiscal 2025	5,748		5,748
Fiscal 2026	4,129		4,129
Thereafter	6,706		6,706
Intangible assets, net	35,175		35,175		13,027
Components of accrued expenses
Accrued payroll and personnel costs	46,764		46,764		73,969
Operating lease liabilities	6,450		6,450		7,549
Deferred revenue	11,792		11,792		9,442
Other	14,501		14,501		12,149
Total accrued expenses	79,507		79,507		103,109
Proprietary technology
Amortizable intangible assets
Amortizable intangible assets, gross	$ 27,329		27,329		6,129
Weighted average useful life (years)	6 years 7 months 6 days
Client relationships
Amortizable intangible assets
Amortizable intangible assets, gross	$ 22,300		22,300		19,200
Weighted average useful life (years)	7 years 9 months 18 days
Non-solicitation agreements
Amortizable intangible assets
Amortizable intangible assets, gross	$ 1,600		1,600		1,600
Weighted average useful life (years)	3 years 1 month 6 days
Trade names
Amortizable intangible assets
Amortizable intangible assets, gross	$ 1,640		$ 1,640		$ 440
Weighted average useful life (years)	5 years

Corporate Investments and Fun_3

Corporate Investments and Funds Held For Clients - Reconciliation (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Corporate Investments and Funds Held for Clients
Amortized cost of cash and cash equivalents	$ 84,104	$ 202,287
Fair value of cash and cash equivalents	84,104	202,287	$ 218,696
Amortized cost of funds held for clients' cash and cash equivalents	1,770,689	1,743,594
Fair value of funds held for clients' cash and cash equivalents	1,770,689	1,743,594	$ 2,154,552
Available-for-sale securities:
Amortized cost	149,840	20,452
Gross unrealized gains	4	87
Gross unrealized losses	(470)	0
Fair value	149,374	20,539
Total investments at amortized cost	2,004,633	1,966,333
Total investments gross unrealized gains	4	87
Total investments gross unrealized losses	(470)	0
Total investments at fair value	2,004,167	1,966,420
Commercial paper
Available-for-sale securities:
Amortized cost	62,240
Gross unrealized gains	3
Gross unrealized losses	(16)
Fair value	62,227
Corporate bonds
Available-for-sale securities:
Amortized cost	42,873	13,390
Gross unrealized gains	0	70
Gross unrealized losses	(286)	0
Fair value	42,587	13,460
Asset-backed securities
Available-for-sale securities:
Amortized cost	10,361	7,062
Gross unrealized gains	1	17
Gross unrealized losses	(26)	0
Fair value	10,336	7,079
Certificates of deposit
Available-for-sale securities:
Amortized cost	20,500
Gross unrealized gains	0
Gross unrealized losses	(7)
Fair value	20,493
U.S. treasury securities
Available-for-sale securities:
Amortized cost	4,042
Gross unrealized gains	0
Gross unrealized losses	(19)
Fair value	4,023
U.S government agency securities
Available-for-sale securities:
Amortized cost	7,000
Gross unrealized gains	0
Gross unrealized losses	(101)
Fair value	6,899
Other
Available-for-sale securities:
Amortized cost	2,824
Gross unrealized gains	0
Gross unrealized losses	(15)
Fair value	$ 2,809
Corporate investments
Available-for-sale securities:
Fair value		4,456
Funds held for clients
Available-for-sale securities:
Fair value		$ 16,083

Corporate Investments and Fun_4

Corporate Investments and Funds Held For Clients - Classification (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Corporate Investments and Funds Held for Clients
Cash and cash equivalents	$ 84,104	$ 218,696	$ 84,104	$ 218,696	$ 202,287
Corporate investments	0		0		4,456
Funds held for clients	1,920,063		1,920,063		1,759,677
Total investments at fair value	2,004,167		2,004,167		1,966,420
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(470)		(470)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	116,688		116,688
Available-for-sale securities in unrealized loss positions					$ 0
Unrealized losses on available-for-sale securities in continuous unrealized loss positions for greater than 12 months	0		0
Credit impairment losses	0	0	0	0
Realized gains or losses	0	$ 0	0	$ 0
Commercial paper
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(16)		(16)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	35,463		35,463
Corporate bonds
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(286)		(286)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	42,587		42,587
Asset-backed securities
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(26)		(26)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	9,664		9,664
Certificates of deposit
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(7)		(7)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	15,243		15,243
U.S. treasury securities
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(19)		(19)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	4,023		4,023
U.S government agency securities
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(101)		(101)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	6,899		6,899
Other
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(15)		(15)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	$ 2,809		$ 2,809

Corporate Investments and Fun_5

Corporate Investments and Funds Held For Clients - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021
Expected maturities of available-for-sale securities, amortized cost
One year or less	$ 94,906
One year to two years	33,284
Two years to three years	16,637
Three years to five years	5,013
Total available-for-sale securities	149,840	$ 20,452
Expected maturities of available-for-sale securities, fair value
One year or less	94,867
One year to two years	33,124
Two years to three years	16,437
Three years to five years	4,946
Total available-for-sale securities	$ 149,374	$ 20,539

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Fair value measurement
Cash and cash equivalents	$ 84,104	$ 202,287	$ 218,696
Funds held for clients' cash and cash equivalents	1,770,689	1,743,594	$ 2,154,552
Available-for-sale securities:
Total available-for-sale securities	149,374	20,539
Total investments at fair value	2,004,167	1,966,420
Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Level 1
Fair value measurement
Cash and cash equivalents	84,104	202,287
Funds held for clients' cash and cash equivalents	1,770,289	1,743,594
Available-for-sale securities:
Total investments at fair value	1,854,393	1,945,881
Level 2
Fair value measurement
Funds held for clients' cash and cash equivalents	400
Available-for-sale securities:
Total available-for-sale securities	149,374	20,539
Total investments at fair value	149,774	20,539
Commercial paper
Available-for-sale securities:
Total available-for-sale securities	62,227
Commercial paper | Level 2
Available-for-sale securities:
Total available-for-sale securities	62,227
Corporate bonds
Available-for-sale securities:
Total available-for-sale securities	42,587	13,460
Corporate bonds | Level 2
Available-for-sale securities:
Total available-for-sale securities	42,587	13,460
Asset-backed securities
Available-for-sale securities:
Total available-for-sale securities	10,336	7,079
Asset-backed securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	10,336	$ 7,079
Certificates of deposit
Available-for-sale securities:
Total available-for-sale securities	20,493
Certificates of deposit | Level 2
Available-for-sale securities:
Total available-for-sale securities	20,493
U.S. treasury securities
Available-for-sale securities:
Total available-for-sale securities	4,023
U.S. treasury securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	4,023
U.S government agency securities
Available-for-sale securities:
Total available-for-sale securities	6,899
U.S government agency securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	6,899
Other
Available-for-sale securities:
Total available-for-sale securities	2,809
Other | Level 2
Available-for-sale securities:
Total available-for-sale securities	$ 2,809

Debt (Details)

Debt (Details) - Five-year revolving credit agreement - Senior secured debt - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021	Jul. 31, 2019
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	$ 0	$ 0
Minimum
Debt
Interest coverage ratio			3
Maximum
Debt
Net total leverage ratio			4
Net senior secured leverage ratio			3.50
London Interbank Offered Rate (LIBOR) | Minimum
Debt
Margin on base rate			0.875%
London Interbank Offered Rate (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	6 Months Ended
	Dec. 31, 2021shares
Equity Incentive Plans
Equity Incentive Plans
Number of shares of common stock reserved for issuance (in shares)	12,006
Number of shares allocated but not yet issued that are subject to outstanding options or awards (in shares)	2,023
2008 Plan
Equity Incentive Plans
Awards issued (in shares)	0
Awards issuable (in shares)	0
2014 Incentive 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	6 Months Ended
	Dec. 31, 2021shares
Shares Available for Grant
Beginning balance (in shares)	10,312
RSUs granted (in shares)	(577)
MSUs granted (in shares)	(48)
Shares withheld in settlement of taxes and/or exercise price (in shares)	273
Forfeitures (in shares)	82
Shares removed (in shares)	(59)
Ending balance (in shares)	9,983

Stock-Based Compensation - Comp

Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Benefit Plans
Total stock-based compensation expense	$ 26,243	$ 16,659	$ 45,802	$ 30,936
Stock-based compensation expense capitalized in internal-use software costs	1,879	528	3,426	1,297
Cost of revenues
Benefit Plans
Total stock-based compensation expense	3,317	1,969	5,924	3,801
Sales and marketing
Benefit Plans
Total stock-based compensation expense	5,716	3,965	10,875	7,845
Research and development
Benefit Plans
Total stock-based compensation expense	5,406	2,738	9,108	4,968
General and administrative
Benefit Plans
Total stock-based compensation expense	11,804	7,987	19,895	14,322
Modified performance-based restricted stock unit awards
Benefit Plans
Total stock-based compensation expense	$ 1,815	$ 1,924	$ 3,058	$ 2,784

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Options Outstanding, Number of Shares
Beginning balance (in shares)					765
Options granted (in shares)					0
Options exercised (in shares)					(195)
Ending balance (in shares)	570	765	570		570
Options Outstanding, Weighted average exercise price
Beginning balance (in dollars per share)					$ 16.06
Options exercised (in dollars per share)					9.34
Ending balance (in dollars per share)	$ 18.35	$ 16.06	$ 18.35		$ 18.35
Options Additional Disclosures
Weighted average remaining contractual term (years)	2 years 1 month 6 days	2 years 4 months 24 days
Weighted average remaining contractual term of options vested and exercisable at the end of the period (years)	2 years 1 month 6 days
Aggregate intrinsic value at the beginning of the period					$ 133,550
Aggregate intrinsic value at the end of the period	$ 124,198	$ 133,550	$ 124,198		$ 124,198
Options vested and exercisable at the end of the period (in shares)	570		570		570
Options vested and exercisable at the end of the period, weighted average exercise price (in dollars per share)	$ 18.35		$ 18.35		$ 18.35
Options vested and exercisable intrinsic value	$ 124,198		$ 124,198		$ 124,198
Total intrinsic value of options exercised			$ 11,759	$ 25,869	$ 47,627	$ 37,277

Stock-Based Compensation - RSU

Stock-Based Compensation - RSU activity (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Dec. 31, 2021USD ($)$ / sharesshares
RSUs Outstanding, Units
Beginning balance (in shares) | shares	1,388
RSUs granted (in shares) | shares	577
RSUs vested (in shares) | shares	(536)
RSUs forfeited (in shares) | shares	(77)
Ending balance (in shares) | shares	1,352
RSUs Outstanding, Weighted average grant date fair value
Beginning balance (in dollars per share) | $ / shares	$ 100.33
RSUs granted (in dollars per share) | $ / shares	253.08
RSUs vested (in dollars per share) | $ / shares	84.52
RSUs forfeited (in dollars per share) | $ / shares	151.56
Ending balance (in dollars per share) | $ / shares	$ 169.28
Unrecognized Compensation Costs Not Yet Recognized, Net of Estimated Forfeitures [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested RSUs | $	$ 134,813
Weighted average period to recognize unrecognized compensation cost (in years)	2 years
Minimum
Equity Incentive Plans
Vesting period	3 years
Maximum
Equity Incentive Plans
Vesting period	4 years

Stock-Based Compensation - MSU

Stock-Based Compensation - MSU activity (Details) - Market share units shares in Thousands	6 Months Ended
	Dec. 31, 2021$ / sharesshares
Equity Incentive Plans
Vesting period	3 years
Percentage of target number of shares subject to each MSU	200.00%
MSUs Outstanding, Units
Beginning balance (in shares) | shares	58
MSUs granted (in shares) | shares	48
MSUs forfeited (in shares) | shares	(5)
Ending balance (in shares) | shares	101
MSUs Outstanding, Weighted average grant date fair value
Beginning balance (in dollars per share) | $ / shares	$ 178.04
MSUs granted (in dollars per share) | $ / shares	361.02
MSUs forfeited (in dollars per share) | $ / shares	178.04
Ending balance (in dollars per share) | $ / shares	$ 263.83

Stock-Based Compensation - MS_2

Stock-Based Compensation - MSU Information (Details) - Market share units - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Valuation assumptions:
Expected dividend yield	0.00%	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 [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested MSUs	$ 17,832
Weighted average period to recognize unrecognized compensation cost (in years)	2 years 4 months 24 days
Minimum
Valuation assumptions:
Expected volatility	47.40%
Expected term (years)	2 years 11 months 1 day
Risk‑free interest rate	0.43%
Maximum
Valuation assumptions:
Expected volatility	47.50%
Expected term (years)	3 years 14 days
Risk‑free interest rate	0.47%

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Effective tax rate for the period (as a percent)	(26.90%)	(61.50%)	(127.80%)	(141.20%)
U.S. federal income tax rate (as a percent)	21.00%	21.00%	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		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net income	$ 9,853	$ 9,642	$ 40,785	$ 22,102
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,067	54,305	54,938	54,160
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units, market share units and employee stock purchase plan shares (in shares)	1,401	2,038	1,548	1,962
Diluted (in shares)	56,468	56,343	56,486	56,122
Net income per share:
Basic (in dollars per share)	$ 0.18	$ 0.18	$ 0.74	$ 0.41
Diluted (in dollars per share)	$ 0.17	$ 0.17	$ 0.72	$ 0.39
Anti-dilutive securities excluded (in shares)	76	14	77	19
Market share units
Net income per share:
Anti-dilutive securities excluded (in shares)	31	14	31	19
Restricted stock units
Net income per share:
Anti-dilutive securities excluded (in shares)	45	0	46	0

Subsequent Events (Details)

Subsequent Events (Details) - Cloudsnap, Inc - Subsequent Event - USD ($) $ in Thousands	Jan. 18, 2022	Jan. 31, 2022
Five-year revolving credit agreement | Senior secured debt [Line Items]
Cash consideration	$ 50,000
Revolving Credit Facility
Five-year revolving credit agreement | Senior secured debt [Line Items]
Amount borrowed		$ 50,000