Paylocity Holding (PCTY) 10-Q 6 May 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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		55,124,761
Entity Central Index Key	0001591698
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 96,465	$ 202,287
Corporate investments	0	4,456
Accounts receivable, net	17,794	6,267
Deferred contract costs	54,735	44,230
Prepaid expenses and other	23,430	15,966
Total current assets before funds held for clients	192,424	273,206
Funds held for clients	4,324,567	1,759,677
Total current assets	4,516,991	2,032,883
Capitalized internal-use software, net	57,713	45,018
Property and equipment, net	64,004	59,835
Operating lease right-of-use assets	50,808	43,984
Intangible assets, net	48,245	13,027
Goodwill	102,183	33,650
Long-term deferred contract costs	209,580	170,663
Long-term prepaid expenses and other	7,910	4,223
Deferred income tax assets	21,804	11,602
Total assets	5,079,238	2,414,885
Current liabilities:
Accounts payable	5,051	4,230
Accrued expenses	108,820	103,109
Total current liabilities before client fund obligations	113,871	107,339
Client fund obligations	4,324,567	1,759,677
Total current liabilities	4,438,438	1,867,016
Long-term operating lease liabilities	71,178	67,201
Other long-term liabilities	2,422	1,958
Deferred income tax liabilities	1,781	1,780
Total liabilities	4,513,819	1,937,955
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2021 and March 31, 2022	0	0
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2021 and March 31, 2022; 54,594 shares issued and outstanding at June 30, 2021 and 55,120 shares issued and outstanding at March 31, 2022	55	55
Additional paid-in capital	256,204	241,718
Retained earnings	310,722	235,091
Accumulated other comprehensive income (loss)	(1,562)	66
Total stockholders' equity	565,419	476,930
Total liabilities and stockholders’ equity	$ 5,079,238	$ 2,414,885

Unaudited Consolidated Balanc_2

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2022	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)	55,120	54,594
Common stock, shares outstanding (in shares)	55,120	54,594

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Recurring and other revenue	$ 244,962	$ 184,927	$ 620,827	$ 465,195
Interest income on funds held for clients	1,008	1,126	2,877	2,981
Total revenues	245,970	186,053	623,704	468,176
Cost of revenues	75,538	57,326	209,608	160,248
Gross profit	170,432	128,727	414,096	307,928
Operating expenses:
Sales and marketing	52,752	40,055	154,856	115,504
Research and development	25,670	18,458	74,024	56,443
General and administrative	44,632	31,071	119,448	87,038
Total operating expenses	123,054	89,584	348,328	258,985
Operating income	47,378	39,143	65,768	48,943
Other expense	(311)	(207)	(800)	(843)
Income before income taxes	47,067	38,936	64,968	48,100
Income tax expense (benefit)	12,221	2,102	(10,663)	(10,836)
Net income	34,846	36,834	75,631	58,936
Other comprehensive loss, net of tax	(1,218)	(126)	(1,628)	(536)
Comprehensive income	$ 33,628	$ 36,708	$ 74,003	$ 58,400
Net income per share:
Basic (in dollars per share)	$ 0.63	$ 0.68	$ 1.38	$ 1.09
Diluted (in dollars per share)	$ 0.62	$ 0.65	$ 1.34	$ 1.05
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,114	54,415	54,996	54,244
Diluted (in shares)	56,367	56,414	56,437	56,338

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	48,896		48,896
Stock options exercised (in shares)		338
Stock options exercised	2,477		2,477
Issuance of common stock upon vesting of restricted stock units (in shares)		622
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 net settlement for taxes and/or exercise price (in shares)		(361)
Net settlement for taxes and/or exercise price related to equity awards	(54,172)		(54,172)
Unrealized losses on securities, net of tax	(536)				(536)
Net income	58,936			58,936
Ending balance (in shares) at Mar. 31, 2021		54,451
Ending balance at Mar. 31, 2021	454,609	$ 54	231,208	223,208	139
Beginning balance (in shares) at Dec. 31, 2020		54,370
Beginning balance at Dec. 31, 2020	408,218	$ 54	221,525	186,374	265
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	16,663		16,663
Stock options exercised (in shares)		104
Stock options exercised	545		545
Issuance of common stock upon vesting of restricted stock units (in shares)		14
Shares withheld in net settlement for taxes and/or exercise price (in shares)		(37)
Net settlement for taxes and/or exercise price related to equity awards	(7,525)		(7,525)
Unrealized losses on securities, net of tax	(126)				(126)
Net income	36,834			36,834
Ending balance (in shares) at Mar. 31, 2021		54,451
Ending balance at Mar. 31, 2021	$ 454,609	$ 54	231,208	223,208	139
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	75,726		75,726
Stock options exercised (in shares)		204
Stock options exercised	1,972		1,972
Issuance of common stock upon vesting of restricted stock units (in shares)		549
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 net settlement for taxes and/or exercise price (in shares)		(280)
Net settlement for taxes and/or exercise price related to equity awards	(70,428)		(70,428)
Unrealized losses on securities, net of tax	(1,628)				(1,628)
Net income	$ 75,631			75,631
Ending balance (in shares) at Mar. 31, 2022	55,120	55,120
Ending balance at Mar. 31, 2022	$ 565,419	$ 55	256,204	310,722	(1,562)
Beginning balance (in shares) at Dec. 31, 2021		55,105
Beginning balance at Dec. 31, 2021	506,693	$ 55	231,106	275,876	(344)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	26,498		26,498
Stock options exercised (in shares)		9
Stock options exercised	160		160
Issuance of common stock upon vesting of restricted stock units (in shares)		13
Shares withheld in net settlement for taxes and/or exercise price (in shares)		(7)
Net settlement for taxes and/or exercise price related to equity awards	(1,560)		(1,560)
Unrealized losses on securities, net of tax	(1,218)				(1,218)
Net income	$ 34,846			34,846
Ending balance (in shares) at Mar. 31, 2022	55,120	55,120
Ending balance at Mar. 31, 2022	$ 565,419	$ 55	$ 256,204	$ 310,722	$ (1,562)

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Cash Flows $ in Thousands	9 Months Ended
	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)
Cash flows from operating activities:
Net income	$ 75,631	$ 58,936
Adjustments to reconcile net income to net cash provided by operating activities
Stock-based compensation expense	70,197	46,947
Depreciation and amortization expense	36,419	32,070
Deferred income tax benefit	(10,882)	(10,656)
Provision for credit losses	238	213
Net accretion of discounts and amortization of premiums on available-for-sale securities	342	315
Amortization of debt issuance costs	136	127
Other	286	545
Changes in operating assets and liabilities:
Accounts receivable	(9,654)	(4,495)
Deferred contract costs	(49,205)	(39,621)
Prepaid expenses and other	(9,418)	(2,531)
Accounts payable	141	1,592
Accrued expenses and other	1,163	2,318
Net cash provided by operating activities	105,394	85,760
Cash flows from investing activities:
Purchases of available-for-sale securities	(215,538)	0
Proceeds from sales and maturities of available-for-sale securities	85,875	82,488
Capitalized internal-use software costs	(26,285)	(21,664)
Purchases of property and equipment	(15,355)	(8,155)
Acquisitions of businesses, net of cash acquired	(107,576)	(14,992)
Other investing activities	(2,500)	0
Net cash provided by (used in) investing activities	(281,379)	37,677
Cash flows from financing activities:
Net change in client fund obligations	2,564,829	724,610
Borrowings under credit facility	50,000	0
Repayment of credit facility	(50,000)	(100,000)
Proceeds from exercise of stock options	0	146
Proceeds from employee stock purchase plan	7,216	6,100
Taxes paid related to net share settlement of equity awards	(68,509)	(51,828)
Payment of debt issuance costs	(64)	(56)
Net cash provided by financing activities	2,503,472	578,972
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents	2,327,487	702,409
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	4,273,368	2,194,542
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment, accrued but not paid	1,251	0
Liabilities assumed for acquisitions	4,470	281
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	257	820
Refunds received for income taxes	(115)	(222)
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	96,465	175,453
Funds held for clients' cash and cash equivalents	4,176,903	2,019,089
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$ 4,273,368	$ 2,194,542

Organization and Description of

Organization and Description of Business	9 Months Ended
	Mar. 31, 2022
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	9 Months Ended
	Mar. 31, 2022
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 nine months ended March 31, 2022 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	9 Months Ended
	Mar. 31, 2022
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 Nine Months Ended 2021 2022 2021 2022 Recurring fees $ 178,711 $ 236,657 $ 448,864 $ 599,513 Implementation services and other 6,216 8,305 16,331 21,314 Total revenues from contracts $ 184,927 $ 244,962 $ 465,195 $ 620,827 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 Nine Months Ended 2021 2022 2021 2022 Balance at beginning of the period $ 7,065 $ 9,341 $ 8,434 $ 8,734 Deferral of revenue 5,821 9,105 11,811 18,865 Revenue recognized (4,097) (6,044) (11,456) (15,197) Balance at end of the period $ 8,789 $ 12,402 $ 8,789 $ 12,402 Deferred revenue related to these nonrefundable upfront fees are recorded within Accrued expenses and Other long-term liabilities on the Unaudited Consolidated Balance Sheets. The Company expects to recognize these deferred revenue balances of $4,982 in fiscal 2022, $6,127 in fiscal 2023 and $1,293 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 March 31, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 125,817 $ 17,315 $ (7,390) $ 135,742 Costs to fulfill a contract 55,657 8,872 (2,607) 61,922 Total $ 181,474 $ 26,187 $ (9,997) $ 197,664 Three Months Ended March 31, 2022 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 155,564 $ 22,256 $ (9,182) $ 168,638 Costs to fulfill a contract 86,115 13,825 (4,263) 95,677 Total $ 241,679 $ 36,081 $ (13,445) $ 264,315 Nine Months Ended March 31, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 113,575 $ 43,026 $ (20,859) $ 135,742 Costs to fulfill a contract 44,468 24,376 (6,922) 61,922 Total $ 158,043 $ 67,402 $ (27,781) $ 197,664 Nine Months Ended March 31, 2022 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 145,718 $ 48,922 $ (26,002) $ 168,638 Costs to fulfill a contract 69,175 37,865 (11,363) 95,677 Total $ 214,893 $ 86,787 $ (37,365) $ 264,315 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 $49,698 as of March 31, 2022, 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	9 Months Ended
	Mar. 31, 2022
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 preliminary allocation of the purchase price for Blue Marble is as follows: August 31, 2021 Proprietary technology $ 21,200 Client relationships 3,000 Trade names 1,200 Goodwill 34,776 Other assets acquired 2,659 Liabilities assumed (1,874) Total purchase price $ 60,961 On January 18, 2022, the Company acquired all of the shares outstanding of Cloudsnap, Inc., ("Cloudsnap") through a merger for cash consideration of $50,002, which was paid upon closing. 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 preliminary allocation of the purchase price for Cloudsnap is as follows: January 18, 2022 Proprietary technology $ 15,800 Goodwill 33,757 Other assets acquired 3,041 Liabilities assumed (2,596) Total purchase price $ 50,002 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 dates of the acquisitions with the excess consideration paid recorded as goodwill. The fair values of assets acquired and liabilities assumed are currently provisional and are subject to change over the measurement periods as the Company continues to evaluate and analyze the estimates and assumptions used in the valuation. The measurement periods will end no later than one year from the respective acquisition dates. The results from these acquisitions have been included in the Company’s consolidated financial statements since the closing of the acquisitions and are not material to the Company. Pro forma information is not presented because the effects of the acquisitions are not material to the Company’s consolidated financial statements. The goodwill related to these transactions is primarily attributable to the assembled workforce and growth opportunities from the expansion and enhancement of the Company’s product offerings. The goodwill associated with the Blue Marble acquisition is deductible for income tax purposes. The goodwill associated with the Cloudsnap acquisition is not deductible for income tax purposes. Direct costs related to the acquisitions were immaterial and were expensed as incurred as General and administrative in the Unaudited Consolidated Statements of Operations and Comprehensive Income.

Balance Sheet Information

Balance Sheet Information	9 Months Ended
	Mar. 31, 2022
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 238 Write-offs (183) Balance at March 31, 2022 $ 855 Capitalized internal-use software and accumulated amortization were as follows: June 30, March 31, Capitalized internal-use software $ 150,922 $ 182,140 Accumulated amortization (105,904) (124,427) Capitalized internal-use software, net $ 45,018 $ 57,713 Amortization of capitalized internal-use software costs is included in Cost of revenues and amounted to $6,005 and $6,308 for the three months ended March 31, 2021 and 2022, respectively, and $17,273 and $18,523 for the nine months ended March 31, 2021 and 2022, respectively. Property and equipment, net consist of the following: June 30, March 31, Office equipment $ 5,211 $ 4,365 Computer equipment 45,420 54,172 Furniture and fixtures 13,104 12,791 Software 6,641 8,278 Leasehold improvements 46,814 47,255 Time clocks rented by clients 5,399 6,423 Total 122,589 133,284 Accumulated depreciation (62,754) (69,280) Property and equipment, net $ 59,835 $ 64,004 Depreciation expense amounted to $3,966 and $4,098 for the three months ended March 31, 2021 and 2022, respectively, and $11,985 and $11,914 for the nine months ended March 31, 2021 and 2022, respectively. The following table summarizes changes in goodwill during the nine months ended March 31, 2022: March 31, Balance at June 30, 2021 $ 33,650 Additions attributable to acquisitions 68,533 Balance at March 31, 2022 $ 102,183 Refer to Note 4 for further details on current year acquisitions. The Company’s amortizable intangible assets and estimated useful lives are as follows: June 30, March 31, Weighted Proprietary technology $ 6,129 $ 43,129 6.0 Client relationships 19,200 22,200 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 440 1,640 5.0 Total 27,369 68,569 Accumulated amortization (14,342) (20,324) Intangible assets, net $ 13,027 $ 48,245 Amortization expense for acquired intangible assets was $1,028 and $2,630 for the three months ended March 31, 2021 and 2022, respectively, and $2,812 and $5,982 for the nine months ended March 31, 2021 and 2022, respectively. Future amortization expense for acquired intangible assets as of March 31, 2022 is as follows: Remainder of fiscal 2022 $ 2,770 Fiscal 2023 10,948 Fiscal 2024 9,943 Fiscal 2025 8,888 Fiscal 2026 7,269 Thereafter 8,427 Total $ 48,245 The components of accrued expenses were as follows: June 30, March 31, Accrued payroll and personnel costs $ 73,969 $ 67,965 Operating lease liabilities 7,549 8,270 Deferred revenue 9,442 14,326 Other 12,149 18,259 Total accrued expenses $ 103,109 $ 108,820

Corporate Investments and Funds

Corporate Investments and Funds Held for Clients	9 Months Ended
	Mar. 31, 2022
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. March 31, 2022 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 96,465 $ — $ — $ 96,465 Funds held for clients' cash and cash equivalents 4,176,903 — — 4,176,903 Available-for-sale securities: Commercial paper 49,440 — (113) 49,327 Corporate bonds 54,607 1 (1,289) 53,319 Asset-backed securities 8,082 — (135) 7,947 Certificates of deposit 23,785 — (50) 23,735 U.S treasury securities 4,036 — (90) 3,946 U.S government agency securities 7,000 — (372) 6,628 Other 2,823 — (61) 2,762 Total available-for-sale securities (2) 149,773 1 (2,110) 147,664 Total investments $ 4,423,141 $ 1 $ (2,110) $ 4,421,032 (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 and money market funds at June 30, 2021 and March 31, 2022. Classification of investments on the unaudited consolidated balance sheets is as follows: June 30, 2021 March 31, 2022 Cash and cash equivalents $ 202,287 $ 96,465 Corporate investments 4,456 — Funds held for clients 1,759,677 4,324,567 Total investments $ 1,966,420 $ 4,421,032 Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of March 31, 2022 had fair market value as follows: March 31, 2022 Securities in an unrealized loss Gross Fair Commercial paper $ (113) $ 49,327 Corporate bonds (1,289) 51,909 Asset-backed securities (135) 7,826 Certificates of deposit (50) 22,734 U.S. treasury securities (90) 3,946 U.S. government agency securities (372) 6,628 Other (61) 2,762 Total available-for-sale securities $ (2,110) $ 145,132 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 March 31, 2022. 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 nine months ended March 31, 2021 or 2022. All securities in the Company’s portfolio held an A-1 rating or better as of March 31, 2022. 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 nine months ended March 31, 2021 or 2022. There were no realized gains or losses on the sale of available-for-sale securities for the three or nine months ended March 31, 2021 or 2022. Expected maturities of available-for-sale securities at March 31, 2022 are as follows: Amortized Fair One year or less $ 98,775 $ 98,392 One year to two years 26,988 26,369 Two years to three years 20,000 19,138 Three years to five years 4,010 3,765 Total available-for-sale securities $ 149,773 $ 147,664

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Mar. 31, 2022
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 March 31, 2022 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 March 31, 2022. 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 $ — March 31, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 96,465 $ 96,465 $ — $ — Funds held for clients' cash and cash equivalents 4,176,903 4,176,903 — — Available-for-sale securities: Commercial paper 49,327 — 49,327 — Corporate bonds 53,319 — 53,319 — Asset-backed securities 7,947 — 7,947 — Certificates of deposit 23,735 — 23,735 — U.S. treasury securities 3,946 — 3,946 — U.S government agency securities 6,628 — 6,628 — Other 2,762 — 2,762 — Total available-for-sale securities 147,664 — 147,664 — Total investments $ 4,421,032 $ 4,273,368 $ 147,664 $ —

Debt

Debt	9 Months Ended
	Mar. 31, 2022
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 March 31, 2022, the Company was in compliance with all of the aforementioned covenants.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Mar. 31, 2022
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. The Company's board of directors approved the increase in the number of common shares in reserve for issuance under the 2014 Plan by 2,400 shares, effective January 1, 2022. As of March 31, 2022, the Company had 14,391 shares allocated to the plans, of which 1,999 shares were subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options or vesting of awards; however, shares previously subject to 2014 Plan grants or awards that are forfeited or net settled at exercise or release may be reissued to satisfy future issuances. The following table summarizes changes in the number of shares available for grant under the Company’s equity incentive plans during the nine months ended March 31, 2022: Number of Available for grant at July 1, 2021 10,312 January 1, 2022 Evergreen provision increase 2,400 RSUs granted (614) MSUs granted (47) Shares withheld in settlement of taxes and/or exercise price 280 Forfeitures 120 Shares removed (59) Available for grant at March 31, 2022 12,392 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 March 31, Nine Months Ended March 31, 2021 2022 2021 2022 Cost of revenues $ 1,972 $ 2,936 $ 5,773 $ 8,860 Sales and marketing 3,938 5,119 11,783 15,994 Research and development 2,602 4,855 7,570 13,963 General and administrative 7,499 11,485 21,821 31,380 Total stock-based compensation expense $ 16,011 $ 24,395 $ 46,947 $ 70,197 In addition, the Company capitalized $652 and $1,886 of stock-based compensation expense in its capitalized internal-use software costs in the three months ended March 31, 2021 and 2022, respectively, and $1,949 and $5,312 during the nine months ended March 31, 2021 and 2022, 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 $1,776 and $1,819 in stock-based compensation expense during the three months ended March 31, 2021 and 2022, respectively, and $4,560 and $4,877 during the nine months ended March 31, 2021 and 2022, respectively, related to these modified performance-based restricted stock units. In March 2022, Michael Haske announced his intent to resign from his position effective September 1, 2022. In connection with his resignation, the Company’s board of directors approved a Transition and Separation Agreement and a Consulting Services Agreement whereby Mr. Haske will provide consulting services to the Company for a period of one year after the end of his employment on September 1, 2022. Pursuant to these agreements, the compensation committee of the Company's board of directors approved the modifications of certain of Mr. Haske's outstanding RSUs and MSUs to allow the awards to continue to vest after the end of his service period. As a result, the Company will record the cumulative effect of the modifications and accelerate the recognition of the remaining expense associated with certain of Mr. Haske's unmodified outstanding awards over his remaining substantive service period. The modifications of these awards did not have a material impact on the Company's financial statements. There were no stock options granted during the nine months ended March 31, 2022. The table below presents stock option activity during the nine months ended March 31, 2022: Outstanding Options Number of Weighted Weighted Aggregate Balance at July 1, 2021 765 $ 16.06 2.4 $ 133,550 Options exercised (204) $ 9.69 Balance at March 31, 2022 561 $ 18.37 1.8 $ 105,094 Options vested and exercisable at March 31, 2022 561 $ 18.37 1.8 $ 105,094 The total intrinsic value of options exercised was $20,975 and $1,819 during the three months ended March 31, 2021 and 2022, respectively, and $58,252 and $49,446 during the nine months ended March 31, 2021 and 2022, 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 nine months ended March 31, 2022: Units Weighted RSU balance at July 1, 2021 1,388 $ 100.33 RSUs granted 614 $ 247.98 RSUs vested (549) $ 84.83 RSUs forfeited (115) $ 160.61 RSU balance at March 31, 2022 1,338 $ 169.40 At March 31, 2022, there was $113,191 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock units granted. That cost is expected to be recognized over a weighted average period of 1.9 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 nine months ended March 31, 2022: Units Weighted MSU balance at July 1, 2021 58 $ 178.04 MSUs granted 48 $ 361.02 MSUs forfeited (5) $ 178.04 MSU balance at March 31, 2022 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: Nine Months Ended 2021 2022 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 March 31, 2022, there was $16,131 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested MSUs. That cost is expected to be recognized over a period of 2.2 years.

Litigation

Litigation	9 Months Ended
	Mar. 31, 2022
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

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2022
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 5.4% and 26.0% for the three months ended March 31, 2021 and 2022, respectively. The Company’s effective tax rate for the three months ended March 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. The Company's effective tax rate for the three months ended March 31, 2022 was higher than the federal statutory rate of 21% primarily due to an increase in non-deductible stock-based compensation under Internal Revenue Code Section 162(m), partially offset by research and development tax credits. The Company's effective tax rate was (22.5)% and (16.4)% for the nine months ended March 31, 2021 and 2022, respectively. The Company's effective tax rate for the nine months ended March 31, 2021, and March 31, 2022 was lower than the federal statutory rate of 21% primarily due to excess tax benefits from employee stock-based compensation, research and development tax credits and state and local income taxes.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Mar. 31, 2022
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 Nine Months Ended 2021 2022 2021 2022 Numerator: Net income $ 36,834 $ 34,846 $ 58,936 $ 75,631 Denominator: Weighted-average shares used in computing net income per share: Basic 54,415 55,114 54,244 54,996 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units, market share units and employee stock purchase plan shares 1,999 1,253 2,094 1,441 Diluted 56,414 56,367 56,338 56,437 Net income per share: Basic $ 0.68 $ 0.63 $ 1.09 $ 1.38 Diluted $ 0.65 $ 0.62 $ 1.05 $ 1.34 The following table summarizes the outstanding restricted stock units and market share units that were excluded from the diluted per share calculation for the periods presented because to include them would have been antidilutive: Three Months Ended Nine Months Ended 2021 2022 2021 2022 Market share units — 19 — 19 Restricted stock units 1 62 13 59 Total 1 81 13 78

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2022
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)	9 Months Ended
	Mar. 31, 2022
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 Nine Months Ended 2021 2022 2021 2022 Recurring fees $ 178,711 $ 236,657 $ 448,864 $ 599,513 Implementation services and other 6,216 8,305 16,331 21,314 Total revenues from contracts $ 184,927 $ 244,962 $ 465,195 $ 620,827
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 Nine Months Ended 2021 2022 2021 2022 Balance at beginning of the period $ 7,065 $ 9,341 $ 8,434 $ 8,734 Deferral of revenue 5,821 9,105 11,811 18,865 Revenue recognized (4,097) (6,044) (11,456) (15,197) Balance at end of the period $ 8,789 $ 12,402 $ 8,789 $ 12,402
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 March 31, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 125,817 $ 17,315 $ (7,390) $ 135,742 Costs to fulfill a contract 55,657 8,872 (2,607) 61,922 Total $ 181,474 $ 26,187 $ (9,997) $ 197,664 Three Months Ended March 31, 2022 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 155,564 $ 22,256 $ (9,182) $ 168,638 Costs to fulfill a contract 86,115 13,825 (4,263) 95,677 Total $ 241,679 $ 36,081 $ (13,445) $ 264,315 Nine Months Ended March 31, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 113,575 $ 43,026 $ (20,859) $ 135,742 Costs to fulfill a contract 44,468 24,376 (6,922) 61,922 Total $ 158,043 $ 67,402 $ (27,781) $ 197,664 Nine Months Ended March 31, 2022 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 145,718 $ 48,922 $ (26,002) $ 168,638 Costs to fulfill a contract 69,175 37,865 (11,363) 95,677 Total $ 214,893 $ 86,787 $ (37,365) $ 264,315

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Mar. 31, 2022
Business Combinations [Abstract]
Summaries of the preliminary allocations of purchase prices	The preliminary allocation of the purchase price for Blue Marble is as follows: August 31, 2021 Proprietary technology $ 21,200 Client relationships 3,000 Trade names 1,200 Goodwill 34,776 Other assets acquired 2,659 Liabilities assumed (1,874) Total purchase price $ 60,961 The preliminary allocation of the purchase price for Cloudsnap is as follows: January 18, 2022 Proprietary technology $ 15,800 Goodwill 33,757 Other assets acquired 3,041 Liabilities assumed (2,596) Total purchase price $ 50,002

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	9 Months Ended
	Mar. 31, 2022
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 238 Write-offs (183) Balance at March 31, 2022 $ 855
Schedule of capitalized internal-use software and accumulated amortization	Capitalized internal-use software and accumulated amortization were as follows: June 30, March 31, Capitalized internal-use software $ 150,922 $ 182,140 Accumulated amortization (105,904) (124,427) Capitalized internal-use software, net $ 45,018 $ 57,713
Schedule of property and equipment, net	Property and equipment, net consist of the following: June 30, March 31, Office equipment $ 5,211 $ 4,365 Computer equipment 45,420 54,172 Furniture and fixtures 13,104 12,791 Software 6,641 8,278 Leasehold improvements 46,814 47,255 Time clocks rented by clients 5,399 6,423 Total 122,589 133,284 Accumulated depreciation (62,754) (69,280) Property and equipment, net $ 59,835 $ 64,004
Schedule of changes in goodwill	The following table summarizes changes in goodwill during the nine months ended March 31, 2022: March 31, Balance at June 30, 2021 $ 33,650 Additions attributable to acquisitions 68,533 Balance at March 31, 2022 $ 102,183
Schedule of amortizable intangible assets and estimated useful lives	The Company’s amortizable intangible assets and estimated useful lives are as follows: June 30, March 31, Weighted Proprietary technology $ 6,129 $ 43,129 6.0 Client relationships 19,200 22,200 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 440 1,640 5.0 Total 27,369 68,569 Accumulated amortization (14,342) (20,324) Intangible assets, net $ 13,027 $ 48,245
Schedule of future amortization expense for acquired intangible assets	Future amortization expense for acquired intangible assets as of March 31, 2022 is as follows: Remainder of fiscal 2022 $ 2,770 Fiscal 2023 10,948 Fiscal 2024 9,943 Fiscal 2025 8,888 Fiscal 2026 7,269 Thereafter 8,427 Total $ 48,245
Schedule of components of accrued expenses	The components of accrued expenses were as follows: June 30, March 31, Accrued payroll and personnel costs $ 73,969 $ 67,965 Operating lease liabilities 7,549 8,270 Deferred revenue 9,442 14,326 Other 12,149 18,259 Total accrued expenses $ 103,109 $ 108,820

Corporate Investments and Fun_2

Corporate Investments and Funds Held For Clients (Tables)	9 Months Ended
	Mar. 31, 2022
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. March 31, 2022 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 96,465 $ — $ — $ 96,465 Funds held for clients' cash and cash equivalents 4,176,903 — — 4,176,903 Available-for-sale securities: Commercial paper 49,440 — (113) 49,327 Corporate bonds 54,607 1 (1,289) 53,319 Asset-backed securities 8,082 — (135) 7,947 Certificates of deposit 23,785 — (50) 23,735 U.S treasury securities 4,036 — (90) 3,946 U.S government agency securities 7,000 — (372) 6,628 Other 2,823 — (61) 2,762 Total available-for-sale securities (2) 149,773 1 (2,110) 147,664 Total investments $ 4,423,141 $ 1 $ (2,110) $ 4,421,032 (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 March 31, 2022 Cash and cash equivalents $ 202,287 $ 96,465 Corporate investments 4,456 — Funds held for clients 1,759,677 4,324,567 Total investments $ 1,966,420 $ 4,421,032
Schedule of available-for-sale securities that have been in an unrealized loss position for less than 12 months	Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of March 31, 2022 had fair market value as follows: March 31, 2022 Securities in an unrealized loss Gross Fair Commercial paper $ (113) $ 49,327 Corporate bonds (1,289) 51,909 Asset-backed securities (135) 7,826 Certificates of deposit (50) 22,734 U.S. treasury securities (90) 3,946 U.S. government agency securities (372) 6,628 Other (61) 2,762 Total available-for-sale securities $ (2,110) $ 145,132
Schedule of expected maturities of available-for-sale securities	Expected maturities of available-for-sale securities at March 31, 2022 are as follows: Amortized Fair One year or less $ 98,775 $ 98,392 One year to two years 26,988 26,369 Two years to three years 20,000 19,138 Three years to five years 4,010 3,765 Total available-for-sale securities $ 149,773 $ 147,664

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Mar. 31, 2022
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 $ — March 31, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 96,465 $ 96,465 $ — $ — Funds held for clients' cash and cash equivalents 4,176,903 4,176,903 — — Available-for-sale securities: Commercial paper 49,327 — 49,327 — Corporate bonds 53,319 — 53,319 — Asset-backed securities 7,947 — 7,947 — Certificates of deposit 23,735 — 23,735 — U.S. treasury securities 3,946 — 3,946 — U.S government agency securities 6,628 — 6,628 — Other 2,762 — 2,762 — Total available-for-sale securities 147,664 — 147,664 — Total investments $ 4,421,032 $ 4,273,368 $ 147,664 $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Mar. 31, 2022
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 nine months ended March 31, 2022: Number of Available for grant at July 1, 2021 10,312 January 1, 2022 Evergreen provision increase 2,400 RSUs granted (614) MSUs granted (47) Shares withheld in settlement of taxes and/or exercise price 280 Forfeitures 120 Shares removed (59) Available for grant at March 31, 2022 12,392
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 March 31, Nine Months Ended March 31, 2021 2022 2021 2022 Cost of revenues $ 1,972 $ 2,936 $ 5,773 $ 8,860 Sales and marketing 3,938 5,119 11,783 15,994 Research and development 2,602 4,855 7,570 13,963 General and administrative 7,499 11,485 21,821 31,380 Total stock-based compensation expense $ 16,011 $ 24,395 $ 46,947 $ 70,197
Schedule of stock option activity	The table below presents stock option activity during the nine months ended March 31, 2022: Outstanding Options Number of Weighted Weighted Aggregate Balance at July 1, 2021 765 $ 16.06 2.4 $ 133,550 Options exercised (204) $ 9.69 Balance at March 31, 2022 561 $ 18.37 1.8 $ 105,094 Options vested and exercisable at March 31, 2022 561 $ 18.37 1.8 $ 105,094
Schedule of restricted stock unit activity	The following table represents restricted stock unit activity during the nine months ended March 31, 2022: Units Weighted RSU balance at July 1, 2021 1,388 $ 100.33 RSUs granted 614 $ 247.98 RSUs vested (549) $ 84.83 RSUs forfeited (115) $ 160.61 RSU balance at March 31, 2022 1,338 $ 169.40
Schedule of market share unit activity	The following table represents market share unit activity during the nine months ended March 31, 2022: Units Weighted MSU balance at July 1, 2021 58 $ 178.04 MSUs granted 48 $ 361.02 MSUs forfeited (5) $ 178.04 MSU balance at March 31, 2022 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: Nine Months Ended 2021 2022 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)	9 Months Ended
	Mar. 31, 2022
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 Nine Months Ended 2021 2022 2021 2022 Numerator: Net income $ 36,834 $ 34,846 $ 58,936 $ 75,631 Denominator: Weighted-average shares used in computing net income per share: Basic 54,415 55,114 54,244 54,996 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units, market share units and employee stock purchase plan shares 1,999 1,253 2,094 1,441 Diluted 56,414 56,367 56,338 56,437 Net income per share: Basic $ 0.68 $ 0.63 $ 1.09 $ 1.38 Diluted $ 0.65 $ 0.62 $ 1.05 $ 1.34
Summary of anti-dilutive securities	The following table summarizes the outstanding restricted stock units and market share units that were excluded from the diluted per share calculation for the periods presented because to include them would have been antidilutive: Three Months Ended Nine Months Ended 2021 2022 2021 2022 Market share units — 19 — 19 Restricted stock units 1 62 13 59 Total 1 81 13 78

Revenue - Disaggregation (Detai

Revenue - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Revenue
Period of term arrangements not cancellable by client			2 years
Disaggregation of revenue
Total revenues from contracts	$ 244,962	$ 184,927	$ 620,827	$ 465,195
Maximum
Revenue
Period of notice to cancel by client			60 days
Recurring fees
Disaggregation of revenue
Total revenues from contracts	236,657	178,711	$ 599,513	448,864
Implementation services and other
Disaggregation of revenue
Total revenues from contracts	$ 8,305	$ 6,216	$ 21,314	$ 16,331

Revenue - Deferred Revenue (Det

Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Changes in deferred revenue related to nonrefundable upfront fees
Beginning balance	$ 9,341	$ 7,065	$ 8,734	$ 8,434
Deferral of revenue	9,105	5,821	18,865	11,811
Revenue recognized	(6,044)	(4,097)	(15,197)	(11,456)
Ending balance	12,402	$ 8,789	12,402	$ 8,789
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	4,982		4,982
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2023	6,127		6,127
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2024 and thereafter	$ 1,293		$ 1,293
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		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Deferred contract costs
Amortization period of capitalized contract costs	7 years		7 years
Beginning Balance	$ 241,679	$ 181,474	$ 214,893	$ 158,043
Capitalized Costs	36,081	26,187	86,787	67,402
Amortization	(13,445)	(9,997)	(37,365)	(27,781)
Ending Balance	264,315	197,664	264,315	197,664
Costs to obtain a new contract
Deferred contract costs
Beginning Balance	155,564	125,817	145,718	113,575
Capitalized Costs	22,256	17,315	48,922	43,026
Amortization	(9,182)	(7,390)	(26,002)	(20,859)
Ending Balance	168,638	135,742	168,638	135,742
Costs to fulfill a contract
Deferred contract costs
Beginning Balance	86,115	55,657	69,175	44,468
Capitalized Costs	13,825	8,872	37,865	24,376
Amortization	(4,263)	(2,607)	(11,363)	(6,922)
Ending Balance	$ 95,677	$ 61,922	$ 95,677	$ 61,922

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Details) $ in Thousands	Mar. 31, 2022USD ($)
Remaining Performance Obligations
Minimum value of unsatisfied performance obligations on term-based contracts	$ 49,698
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Remaining Performance Obligations
Remaining performance obligation period	24 months

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Jan. 18, 2022	Aug. 31, 2021	Mar. 31, 2022	Jun. 30, 2021
Business Combinations
Goodwill			$ 102,183	$ 33,650
Blue Marble
Business Combinations
Cash consideration		$ 60,961
Goodwill		34,776
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		3,000
Blue Marble | Trade names
Business Combinations
Intangible assets		$ 1,200
Cloudsnap, Inc
Business Combinations
Cash consideration	$ 50,002
Goodwill	33,757
Other assets acquired	3,041
Liabilities assumed	(2,596)
Total purchase price	50,002
Cloudsnap, Inc | Proprietary technology
Business Combinations
Intangible assets	$ 15,800

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		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2021
Activity in the allowance for credit losses
Beginning balance			$ 800
Charged to expense			238	$ 213
Write-offs			(183)
Ending balance	$ 855		855
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	182,140		182,140		$ 150,922
Accumulated amortization	(124,427)		(124,427)		(105,904)
Capitalized internal-use software, net	57,713		57,713		45,018
Property and equipment, net
Property and equipment, gross	133,284		133,284		122,589
Accumulated depreciation	(69,280)		(69,280)		(62,754)
Property and equipment, net	64,004		64,004		59,835
Depreciation expense	4,098	$ 3,966	11,914	11,985
Changes in Goodwill
Beginning balance			33,650
Additions attributable to acquisitions			68,533
Ending balance	102,183		102,183
Cost of revenues
Capitalized internal-use software and accumulated amortization
Amortization of capitalized internal-use software	6,308	$ 6,005	18,523	$ 17,273
Office equipment
Property and equipment, net
Property and equipment, gross	4,365		4,365		5,211
Computer equipment
Property and equipment, net
Property and equipment, gross	54,172		54,172		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	8,278		8,278		6,641
Leasehold improvements
Property and equipment, net
Property and equipment, gross	47,255		47,255		46,814
Time clocks rented by clients
Property and equipment, net
Property and equipment, gross	$ 6,423		$ 6,423		$ 5,399

Balance Sheet Information - Int

Balance Sheet Information - Intangible Assets and Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2021
Amortizable intangible assets
Amortizable intangible assets, gross	$ 68,569		$ 68,569		$ 27,369
Accumulated amortization	(20,324)		(20,324)		(14,342)
Intangible assets, net	48,245		48,245		13,027
Amortization expense for acquired intangible assets	2,630	$ 1,028	5,982	$ 2,812
Future amortization expense for acquired intangible assets
Remainder of fiscal 2022	2,770		2,770
Fiscal 2023	10,948		10,948
Fiscal 2024	9,943		9,943
Fiscal 2025	8,888		8,888
Fiscal 2026	7,269		7,269
Thereafter	8,427		8,427
Intangible assets, net	48,245		48,245		13,027
Components of accrued expenses
Accrued payroll and personnel costs	67,965		67,965		73,969
Operating lease liabilities	8,270		8,270		7,549
Deferred revenue	14,326		14,326		9,442
Other	18,259		18,259		12,149
Total accrued expenses	108,820		108,820		103,109
Proprietary technology
Amortizable intangible assets
Amortizable intangible assets, gross	43,129		$ 43,129		6,129
Weighted average useful life (years)			6 years
Client relationships
Amortizable intangible assets
Amortizable intangible assets, gross	22,200		$ 22,200		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	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021
Corporate Investments and Funds Held for Clients
Amortized cost of cash and cash equivalents	$ 96,465	$ 202,287
Fair value of cash and cash equivalents	96,465	202,287	$ 175,453
Amortized cost of funds held for clients' cash and cash equivalents	4,176,903	1,743,594
Fair value of funds held for clients' cash and cash equivalents	4,176,903	1,743,594	$ 2,019,089
Available-for-sale securities:
Amortized cost	149,773	20,452
Gross unrealized gains	1	87
Gross unrealized losses	(2,110)	0
Fair value	147,664	20,539
Total investments at amortized cost	4,423,141	1,966,333
Total investments gross unrealized gains	1	87
Total investments gross unrealized losses	(2,110)	0
Total investments	4,421,032	1,966,420
Commercial paper
Available-for-sale securities:
Amortized cost	49,440
Gross unrealized gains	0
Gross unrealized losses	(113)
Fair value	49,327
Corporate bonds
Available-for-sale securities:
Amortized cost	54,607	13,390
Gross unrealized gains	1	70
Gross unrealized losses	(1,289)	0
Fair value	53,319	13,460
Asset-backed securities
Available-for-sale securities:
Amortized cost	8,082	7,062
Gross unrealized gains	0	17
Gross unrealized losses	(135)	0
Fair value	7,947	7,079
Certificates of deposit
Available-for-sale securities:
Amortized cost	23,785
Gross unrealized gains	0
Gross unrealized losses	(50)
Fair value	23,735
U.S. treasury securities
Available-for-sale securities:
Amortized cost	4,036
Gross unrealized gains	0
Gross unrealized losses	(90)
Fair value	3,946
U.S government agency securities
Available-for-sale securities:
Amortized cost	7,000
Gross unrealized gains	0
Gross unrealized losses	(372)
Fair value	6,628
Other
Available-for-sale securities:
Amortized cost	2,823
Gross unrealized gains	0
Gross unrealized losses	(61)
Fair value	$ 2,762
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		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2021
Corporate Investments and Funds Held for Clients
Cash and cash equivalents	$ 96,465	$ 175,453	$ 96,465	$ 175,453	$ 202,287
Corporate investments	0		0		4,456
Funds held for clients	4,324,567		4,324,567		1,759,677
Total investments	4,421,032		4,421,032		1,966,420
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(2,110)		(2,110)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	145,132		145,132
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	(113)		(113)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	49,327		49,327
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	(1,289)		(1,289)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	51,909		51,909
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	(135)		(135)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	7,826		7,826
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	(50)		(50)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	22,734		22,734
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	(90)		(90)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	3,946		3,946
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	(372)		(372)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	6,628		6,628
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	(61)		(61)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	$ 2,762		$ 2,762

Corporate Investments and Fun_5

Corporate Investments and Funds Held For Clients - Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Expected maturities of available-for-sale securities, amortized cost
One year or less	$ 98,775
One year to two years	26,988
Two years to three years	20,000
Three years to five years	4,010
Total available-for-sale securities	149,773	$ 20,452
Expected maturities of available-for-sale securities, fair value
One year or less	98,392
One year to two years	26,369
Two years to three years	19,138
Three years to five years	3,765
Total available-for-sale securities	$ 147,664	$ 20,539

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021
Fair value measurement
Cash and cash equivalents	$ 96,465	$ 202,287	$ 175,453
Funds held for clients' cash and cash equivalents	4,176,903	1,743,594	$ 2,019,089
Available-for-sale securities:
Total available-for-sale securities	147,664	20,539
Total investments	4,421,032	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	96,465	202,287
Funds held for clients' cash and cash equivalents	4,176,903	1,743,594
Available-for-sale securities:
Total investments	4,273,368	1,945,881
Level 2
Fair value measurement
Cash and cash equivalents	0	0
Funds held for clients' cash and cash equivalents	0	0
Available-for-sale securities:
Total available-for-sale securities	147,664	20,539
Total investments	147,664	20,539
Commercial paper
Available-for-sale securities:
Total available-for-sale securities	49,327
Commercial paper | Level 2
Available-for-sale securities:
Total available-for-sale securities	49,327
Corporate bonds
Available-for-sale securities:
Total available-for-sale securities	53,319	13,460
Corporate bonds | Level 2
Available-for-sale securities:
Total available-for-sale securities	53,319	13,460
Asset-backed securities
Available-for-sale securities:
Total available-for-sale securities	7,947	7,079
Asset-backed securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	7,947	$ 7,079
Certificates of deposit
Available-for-sale securities:
Total available-for-sale securities	23,735
Certificates of deposit | Level 2
Available-for-sale securities:
Total available-for-sale securities	23,735
U.S. treasury securities
Available-for-sale securities:
Total available-for-sale securities	3,946
U.S. treasury securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	3,946
U.S government agency securities
Available-for-sale securities:
Total available-for-sale securities	6,628
U.S government agency securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	6,628
Other
Available-for-sale securities:
Total available-for-sale securities	2,762
Other | Level 2
Available-for-sale securities:
Total available-for-sale securities	$ 2,762

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021	Jul. 31, 2019	Mar. 31, 2022	Mar. 31, 2021
Debt
Borrowed and repaid under credit facility				$ 50,000	$ 0
Five-year revolving credit agreement | Senior secured debt
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
Borrowed and repaid under credit facility	$ 0	$ 0
Five-year revolving credit agreement | Senior secured debt | Minimum
Debt
Interest coverage ratio			3
Five-year revolving credit agreement | Senior secured debt | Maximum
Debt
Net total leverage ratio			4
Net senior secured leverage ratio			3.50
Five-year revolving credit agreement | Senior secured debt | London Interbank Offered Rate (LIBOR) | Minimum
Debt
Margin on base rate			0.875%
Five-year revolving credit agreement | Senior secured debt | London Interbank Offered Rate (LIBOR) | Maximum
Debt
Margin on base rate			1.375%
Five-year revolving credit agreement | Senior secured debt | Adjusted base rate | Minimum
Debt
Margin on base rate			0.00%
Five-year revolving credit agreement | Senior secured debt | Adjusted base rate | Maximum
Debt
Margin on base rate			0.375%

Stock-Based Compensation - Gene

Stock-Based Compensation - General Information (Details) - shares shares in Thousands	Jan. 01, 2022	Mar. 31, 2022
Equity Incentive Plans
Equity Incentive Plans
Actual increase in number of shares of common stock reserved for issuance (in shares)		2,400
Number of shares of common stock reserved for issuance (in shares)		14,391
Number of shares allocated but not yet issued that are subject to outstanding options or awards (in shares)		1,999
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%
Actual increase in number of shares of common stock reserved for issuance (in shares)	2,400

Stock-Based Compensation - Ince

Stock-Based Compensation - Incentive Plans Activity (Details) - Equity Incentive Plans shares in Thousands	9 Months Ended
	Mar. 31, 2022shares
Shares Available for Grant
Beginning balance (in shares)	10,312
January 1, 2022 Evergreen provision increase (in shares)	2,400
RSUs granted (in shares)	(614)
MSUs granted (in shares)	(47)
Shares withheld in net settlement for taxes and/or exercise price (in shares)	280
Forfeitures (in shares)	120
Shares removed (in shares)	(59)
Ending balance (in shares)	12,392

Stock-Based Compensation - Comp

Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Benefit Plans
Stock-based compensation expense capitalized in internal-use software costs	$ 1,886	$ 652	$ 5,312	$ 1,949
Total stock-based compensation expense	24,395	16,011	70,197	46,947
Cost of revenues
Benefit Plans
Total stock-based compensation expense	2,936	1,972	8,860	5,773
Sales and marketing
Benefit Plans
Total stock-based compensation expense	5,119	3,938	15,994	11,783
Research and development
Benefit Plans
Total stock-based compensation expense	4,855	2,602	13,963	7,570
General and administrative
Benefit Plans
Total stock-based compensation expense	11,485	7,499	31,380	21,821
Modified performance-based restricted stock unit awards
Benefit Plans
Total stock-based compensation expense	$ 1,819	$ 1,776	$ 4,877	$ 4,560

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Jun. 30, 2021	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Options Outstanding, Number of Shares
Beginning balance (in shares)				765
Options granted (in shares)				0
Options exercised (in shares)				(204)
Ending balance (in shares)	765	561		561
Options Outstanding, Weighted average exercise price
Beginning balance (in dollars per share)				$ 16.06
Options exercised (in dollars per share)				9.69
Ending balance (in dollars per share)	$ 16.06	$ 18.37		$ 18.37
Options Additional Disclosures
Weighted average remaining contractual term (years)	2 years 4 months 24 days			1 year 9 months 18 days
Weighted average remaining contractual term of options vested and exercisable at the end of the period (years)				1 year 9 months 18 days
Aggregate intrinsic value at the beginning of the period				$ 133,550
Aggregate intrinsic value at the end of the period	$ 133,550	$ 105,094		$ 105,094
Options vested and exercisable at the end of the period (in shares)		561		561
Options vested and exercisable at the end of the period, weighted average exercise price (in dollars per share)		$ 18.37		$ 18.37
Options vested and exercisable, aggregate intrinsic value		$ 105,094		$ 105,094
Total intrinsic value of options exercised		$ 1,819	$ 20,975	$ 49,446	$ 58,252

Stock-Based Compensation - RSU

Stock-Based Compensation - RSU activity (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Mar. 31, 2022USD ($)$ / sharesshares
RSUs Outstanding, Units
Beginning balance (in shares) | shares	1,388
RSUs granted (in shares) | shares	614
RSUs vested (in shares) | shares	(549)
RSUs forfeited (in shares) | shares	(115)
Ending balance (in shares) | shares	1,338
RSUs Outstanding, Weighted average grant date fair value
Beginning balance (in dollars per share) | $ / shares	$ 100.33
RSUs granted (in dollars per share) | $ / shares	247.98
RSUs vested (in dollars per share) | $ / shares	84.83
RSUs forfeited (in dollars per share) | $ / shares	160.61
Ending balance (in dollars per share) | $ / shares	$ 169.40
Unrecognized Compensation Costs Not Yet Recognized, Net of Estimated Forfeitures [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested RSUs | $	$ 113,191
Weighted average period to recognize unrecognized compensation cost (in years)	1 year 10 months 24 days
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	9 Months Ended
	Mar. 31, 2022$ / 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	9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
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	$ 16,131
Weighted average period to recognize unrecognized compensation cost (in years)	2 years 2 months 12 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		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective tax rate for the period (as a percent)	26.00%	5.40%	(16.40%)	(22.50%)
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		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income	$ 34,846	$ 36,834	$ 75,631	$ 58,936
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,114	54,415	54,996	54,244
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units, market share units and employee stock purchase plan shares (in shares)	1,253	1,999	1,441	2,094
Diluted (in shares)	56,367	56,414	56,437	56,338
Net income per share:
Basic (in dollars per share)	$ 0.63	$ 0.68	$ 1.38	$ 1.09
Diluted (in dollars per share)	$ 0.62	$ 0.65	$ 1.34	$ 1.05
Anti-dilutive securities excluded (in shares)	81	1	78	13
Market share units
Net income per share:
Anti-dilutive securities excluded (in shares)	19	0	19	0
Restricted stock units
Net income per share:
Anti-dilutive securities excluded (in shares)	62	1	59	13