Paylocity Holding (PCTY) 10-Q 3 Feb 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Dec. 31, 2022	Jan. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 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		55,769,718
Entity Central Index Key	0001591698
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Current assets:
Cash and cash equivalents	$ 120,053	$ 139,756
Accounts receivable, net	24,540	15,754
Deferred contract costs	68,557	59,501
Prepaid expenses and other	30,175	28,896
Total current assets before funds held for clients	243,325	243,907
Funds held for clients	3,065,697	3,987,776
Total current assets	3,309,022	4,231,683
Capitalized internal-use software, net	71,083	61,985
Property and equipment, net	59,506	62,839
Operating lease right-of-use assets	46,604	49,210
Intangible assets, net	39,934	45,475
Goodwill	102,054	101,949
Long-term deferred contract costs	262,313	229,067
Long‑term prepaid expenses and other	6,727	7,746
Deferred income tax assets	40,530	19,060
Total assets	3,937,773	4,809,014
Current liabilities:
Accounts payable	7,611	8,374
Accrued expenses	115,795	124,384
Total current liabilities before client fund obligations	123,406	132,758
Client fund obligations	3,065,697	3,987,776
Total current liabilities	3,189,103	4,120,534
Long-term operating lease liabilities	65,353	69,119
Other long-term liabilities	3,333	3,681
Deferred income tax liabilities	2,217	2,217
Total liabilities	3,260,006	4,195,551
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2022 and December 31, 2022	0	0
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2022 and December 31, 2022; 55,190 shares issued and outstanding at June 30, 2022 and 55,768 shares issued and outstanding at December 31, 2022	56	55
Additional paid-in capital	310,050	289,843
Retained earnings	371,820	325,868
Accumulated other comprehensive loss	(4,159)	(2,303)
Total stockholders' equity	677,767	613,463
Total liabilities and stockholders’ equity	$ 3,937,773	$ 4,809,014

Unaudited Consolidated Balanc_2

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2022	Jun. 30, 2022
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)	55,768	55,190
Common stock, shares outstanding (in shares)	55,768	55,190

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, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Revenues:
Recurring and other revenue	$ 256,434	$ 195,041	$ 501,840	$ 375,865
Interest income on funds held for clients	16,574	996	24,448	1,869
Total revenues	273,008	196,037	526,288	377,734
Cost of revenues	90,076	70,821	174,619	134,070
Gross profit	182,932	125,216	351,669	243,664
Operating expenses:
Sales and marketing	75,694	52,219	146,757	102,104
Research and development	41,029	25,278	81,122	48,354
General and administrative	48,001	39,581	98,493	74,816
Total operating expenses	164,724	117,078	326,372	225,274
Operating income	18,208	8,138	25,297	18,390
Other expense	(5)	(372)	(168)	(489)
Income before income taxes	18,203	7,766	25,129	17,901
Income tax expense (benefit)	2,603	(2,087)	(20,823)	(22,884)
Net income	15,600	9,853	45,952	40,785
Other comprehensive income (loss), net of tax	516	(335)	(1,856)	(410)
Comprehensive income	$ 16,116	$ 9,518	$ 44,096	$ 40,375
Net income per share:
Basic (in dollars per share)	$ 0.28	$ 0.18	$ 0.83	$ 0.74
Diluted (in dollars per share)	$ 0.28	$ 0.17	$ 0.81	$ 0.72
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,721	55,067	55,587	54,938
Diluted (in shares)	56,474	56,468	56,559	56,486

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, 2021		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
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(273)
Net settlement for taxes and/or exercise price related to equity awards	(68,868)		(68,868)
Unrealized gains (losses) on securities, net of tax	(410)				(410)
Net income	40,785			40,785
Ending balance (in shares) at Dec. 31, 2021		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
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(23)
Net settlement for taxes and/or exercise price related to equity awards	(6,119)		(6,119)
Unrealized gains (losses) on securities, net of tax	(335)				(335)
Net income	9,853			9,853
Ending balance (in shares) at Dec. 31, 2021		55,105
Ending balance at Dec. 31, 2021	$ 506,693	$ 55	231,106	275,876	(344)
Beginning balance (in shares) at Jun. 30, 2022	55,190	55,190
Beginning balance at Jun. 30, 2022	$ 613,463	$ 55	289,843	325,868	(2,303)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	91,124		91,124
Stock options exercised (in shares)		242
Stock options exercised	2,941		2,941
Issuance of common stock upon vesting of restricted stock units (in shares)		609
Issuance of common stock upon vesting of restricted stock units	0	$ 1	(1)
Issuance of common stock under employee stock purchase plan (in shares)		61
Issuance of common stock under employee stock purchase plan	8,450		8,450
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(334)
Net settlement for taxes and/or exercise price related to equity awards	(82,307)		(82,307)
Unrealized gains (losses) on securities, net of tax	(1,856)				(1,856)
Net income	$ 45,952			45,952
Ending balance (in shares) at Dec. 31, 2022	55,768	55,768
Ending balance at Dec. 31, 2022	$ 677,767	$ 56	310,050	371,820	(4,159)
Beginning balance (in shares) at Sep. 30, 2022		55,664
Beginning balance at Sep. 30, 2022	610,846	$ 56	259,245	356,220	(4,675)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	47,653		47,653
Stock options exercised (in shares)		7
Stock options exercised	109		109
Issuance of common stock upon vesting of restricted stock units (in shares)		60
Issuance of common stock under employee stock purchase plan (in shares)		61
Issuance of common stock under employee stock purchase plan	8,450		8,450
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(24)
Net settlement for taxes and/or exercise price related to equity awards	(5,407)		(5,407)
Unrealized gains (losses) on securities, net of tax	516				516
Net income	$ 15,600			15,600
Ending balance (in shares) at Dec. 31, 2022	55,768	55,768
Ending balance at Dec. 31, 2022	$ 677,767	$ 56	$ 310,050	$ 371,820	$ (4,159)

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 45,952	$ 40,785
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	83,364	45,802
Depreciation and amortization expense	29,094	23,383
Deferred income tax benefit	(20,856)	(22,952)
Provision for credit losses	602	103
Net accretion of discounts and amortization of premiums on available-for-sale securities	(2,039)	221
Amortization of debt issuance costs	157	90
Other	1,253	247
Changes in operating assets and liabilities:
Accounts receivable	(9,377)	(916)
Deferred contract costs	(40,638)	(26,786)
Prepaid expenses and other	616	(10,008)
Accounts payable	(392)	1,403
Accrued expenses and other	(8,979)	(24,514)
Net cash provided by operating activities	78,757	26,858
Cash flows from investing activities:
Purchases of available-for-sale securities	(296,060)	(190,000)
Proceeds from sales and maturities of available-for-sale securities	190,253	60,391
Capitalized internal-use software costs	(19,740)	(17,966)
Purchases of property and equipment	(6,663)	(10,528)
Acquisitions of businesses, net of cash acquired	0	(60,234)
Other investing activities	29	0
Net cash used in investing activities	(132,181)	(218,337)
Cash flows from financing activities:
Net change in client fund obligations	(922,079)	160,325
Proceeds from employee stock purchase plan	8,450	7,216
Taxes paid related to net share settlement of equity awards	(79,369)	(67,109)
Payment of debt issuance costs	(864)	(41)
Net cash provided by (used in) financing activities	(993,862)	100,391
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents	(1,047,286)	(91,088)
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of period	3,793,453	1,945,881
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of period	2,746,167	1,854,793
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment, accrued but not paid	0	125
Liabilities assumed for acquisitions	117	1,874
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	157	126
Refunds received for income taxes	(158)	(115)
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	120,053	84,104
Funds held for clients' cash and cash equivalents	2,626,114	1,770,689
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$ 2,746,167	$ 1,854,793

Organization and Description of

Organization and Description of Business	6 Months Ended
	Dec. 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	6 Months Ended
	Dec. 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 the three and six months ended December 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, 2022 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, 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 other HCM 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 total revenues from contracts 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 2021 2022 2021 2022 Recurring fees $ 188,159 $ 247,522 $ 362,856 $ 484,341 Implementation services and other 6,882 8,912 13,009 17,499 Total revenues from contracts $ 195,041 $ 256,434 $ 375,865 $ 501,840 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 payroll processing period or by month. As such, the Company does not recognize contract assets or liabilities related to recurring revenue. The Company defers and amortizes nonrefundable upfront fees related to implementation services 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 2021 2022 2021 2022 Balance at beginning of the period $ 8,717 $ 14,195 $ 8,734 $ 12,233 Deferral of revenue 5,407 12,002 9,760 20,234 Revenue recognized (4,783) (6,460) (9,153) (12,730) Balance at end of the period $ 9,341 $ 19,737 $ 9,341 $ 19,737 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 $12,680 in fiscal 2023, $6,102 in fiscal 2024 and $955 in fiscal 2025 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, 2021 Beginning Balance Capitalized Costs Amortization Ending Balance 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 Three Months Ended December 31, 2022 Beginning Balance Capitalized Costs Amortization Ending Balance Costs to obtain a new contract $ 191,088 $ 20,310 $ (10,845) $ 200,553 Costs to fulfill a contract 117,524 18,803 (6,010) 130,317 Total $ 308,612 $ 39,113 $ (16,855) $ 330,870 Six Months Ended December 31, 2021 Beginning Balance Capitalized Costs Amortization Ending Balance 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 Six Months Ended December 31, 2022 Beginning Balance Capitalized Costs Amortization Ending Balance Costs to obtain a new contract $ 182,543 $ 39,222 $ (21,212) $ 200,553 Costs to fulfill a contract 106,025 35,665 (11,373) 130,317 Total $ 288,568 $ 74,887 $ (32,585) $ 330,870 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 primarily recorded in Cost of revenues and Sales and marketing 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 $53,940 as of December 31, 2022, which will be generally recognized over the next 24

Business Combinations

Business Combinations	6 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Business Combinations	4) Business Combinations 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 allocation of the purchase price for Cloudsnap is as follows: January 18, 2022 Proprietary technology $ 15,800 Goodwill 33,628 Other assets acquired 3,398 Liabilities assumed (2,824) Total purchase price $ 50,002 The Company did not record any material purchase accounting adjustments for Cloudsnap during the six months ended December 31, 2022. 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 the acquisition with the excess consideration paid recorded as goodwill. 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 is not presented because the effects of the acquisition are not material to the Company’s consolidated financial statements. The goodwill related to this acquisition 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 this acquisition is not deductible for income tax purposes. Direct costs related to the acquisition were immaterial and were expensed as incurred as General and administrative.

Balance Sheet Information

Balance Sheet Information	6 Months Ended
	Dec. 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, 2022 $ 841 Charged to expense 602 Write-offs (130) Balance at December 31, 2022 $ 1,313 Capitalized internal-use software and accumulated amortization were as follows: June 30, December 31, Capitalized internal-use software $ 193,156 $ 216,774 Accumulated amortization (131,171) (145,691) Capitalized internal-use software, net $ 61,985 $ 71,083 Amortization of capitalized internal-use software costs is primarily included in Cost of revenues and amounted to $6,087 and $7,478 for the three months ended December 31, 2021 and 2022, respectively, and $12,215 and $14,520 for the six months ended December 31, 2021 and 2022, respectively. The major classes of property and equipment, net were as follows: June 30, December 31, Office equipment $ 4,365 $ 4,367 Computer equipment 55,495 54,065 Furniture and fixtures 12,791 12,790 Software 8,785 9,808 Leasehold improvements 47,521 47,723 Time clocks rented by clients 6,711 7,463 Total 135,668 136,216 Accumulated depreciation (72,829) (76,710) Property and equipment, net $ 62,839 $ 59,506 Depreciation expense amounted to $3,974 and $4,579 for the three months ended December 31, 2021 and 2022, respectively, and $7,816 and $9,033 for the six months ended December 31, 2021 and 2022, respectively. The following table summarizes changes in goodwill during the six months ended December 31, 2022: December 31, Balance at June 30, 2022 $ 101,949 Measurement period adjustments 105 Balance at December 31, 2022 $ 102,054 Refer to Note 4 for further details on current year acquisition activity. The Company’s amortizable intangible assets and estimated useful lives were as follows: June 30, December 31, Weighted average useful life (years) Proprietary technology $ 43,129 $ 43,129 6.0 Client relationships 22,200 22,200 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 1,640 1,640 5.0 Total 68,569 68,569 Accumulated amortization (23,094) (28,635) Intangible assets, net $ 45,475 $ 39,934 Amortization expense for acquired intangible assets was $2,000 and $2,770 for the three months ended December 31, 2021 and 2022, respectively, and $3,352 and $5,541 for the six months ended December 31, 2021 and 2022, respectively, and is included in Cost of revenues and General and administrative. Future amortization expense for acquired intangible assets as of December 31, 2022 is as follows: Remainder of fiscal 2023 $ 5,407 Fiscal 2024 9,943 Fiscal 2025 8,888 Fiscal 2026 7,269 Fiscal 2027 4,893 Thereafter 3,534 Total $ 39,934 The components of accrued expenses were as follows: June 30, December 31, Accrued payroll and personnel costs $ 84,897 $ 62,092 Operating lease liabilities 8,399 8,507 Deferred revenue 13,548 23,538 Other 17,540 21,658 Total accrued expenses $ 124,384 $ 115,795

Corporate Investments and Funds

Corporate Investments and Funds Held for Clients	6 Months Ended
	Dec. 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 consisted of the following: June 30, 2022 Type of Issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 139,756 $ — $ — $ 139,756 Funds held for clients' cash and cash equivalents 3,653,699 — (2) 3,653,697 Available-for-sale securities: Commercial paper 58,166 — (126) 58,040 Corporate bonds 59,568 — (1,715) 57,853 Asset-backed securities 9,843 2 (141) 9,704 Certificates of deposit 31,879 — (43) 31,836 U.S. treasury securities 167,566 12 (591) 166,987 U.S government agency securities 8,000 — (451) 7,549 Other 2,181 — (71) 2,110 Total available-for-sale securities 337,203 14 (3,138) 334,079 Total investments $ 4,130,658 $ 14 $ (3,140) $ 4,127,532 December 31, 2022 Type of Issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 120,053 $ — $ — $ 120,053 Funds held for clients' cash and cash equivalents 2,626,112 3 (1) 2,626,114 Available-for-sale securities: Commercial paper 97,440 48 (65) 97,423 Corporate bonds 78,757 25 (2,005) 76,777 Asset-backed securities 27,984 17 (333) 27,668 Certificates of deposit 40,449 27 (14) 40,462 U.S. treasury securities 187,671 59 (2,480) 185,250 U.S government agency securities 8,000 — (601) 7,399 Other 4,730 — (126) 4,604 Total available-for-sale securities 445,031 176 (5,624) 439,583 Total investments $ 3,191,196 $ 179 $ (5,625) $ 3,185,750 All available-for-sale securities were included in Funds held for clients at June 30, 2022 and December 31, 2022 Cash and cash equivalents and funds held for clients’ cash and cash equivalents included demand deposit accounts, money market funds, commercial paper and certificates of deposit at June 30, 2022 and December 31, 2022. Classification of investments on the Unaudited Consolidated Balance Sheets was as follows: June 30, December 31, 2022 Cash and cash equivalents $ 139,756 $ 120,053 Funds held for clients 3,987,776 3,065,697 Total investments $ 4,127,532 $ 3,185,750 Available-for-sale securities that had been in an unrealized loss position for a period of less and greater than 12 months as of June 30, 2022 and December 31, 2022 had fair market value as follows: June 30, 2022 Securities in an unrealized loss Securities in an unrealized loss Total Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (126) $ 53,756 $ — $ — $ (126) $ 53,756 Corporate bonds (1,715) 57,853 — — (1,715) 57,853 Asset-backed securities (141) 7,354 — — (141) 7,354 Certificates of deposit (43) 27,086 — — (43) 27,086 U.S. treasury securities (591) 129,943 — — (591) 129,943 U.S. government agency securities (451) 7,549 — — (451) 7,549 Other (71) 2,110 — — (71) 2,110 Total available-for-sale securities $ (3,138) $ 285,651 $ — $ — $ (3,138) $ 285,651 December 31, 2022 Securities in an unrealized loss Securities in an unrealized loss Total Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (65) $ 29,451 $ — $ — $ (65) $ 29,451 Corporate bonds (758) 29,428 (1,247) 35,274 (2,005) 64,702 Asset-backed securities (193) 15,405 (140) 3,379 (333) 18,784 Certificates of deposit (14) 3,886 — — (14) 3,886 U.S. treasury securities (2,382) 146,060 (98) 3,920 (2,480) 149,980 U.S. government agency securities (36) 965 (565) 6,434 (601) 7,399 Other (49) 2,871 (77) 1,732 (126) 4,603 Total available-for-sale securities $ (3,497) $ 228,066 $ (2,127) $ 50,739 $ (5,624) $ 278,805 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, 2021 or 2022. All securities in the Company’s portfolio held an A-1 rating or better as of December 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 six months ended December 31, 2021 or 2022. There were no realized gains or losses on the sale of available-for-sale securities for the three or six months ended December 31, 2021 or 2022. Expected maturities of available-for-sale securities at December 31, 2022 were as follows: Amortized cost Fair value One year or less $ 259,823 $ 258,853 One year to two years 90,033 87,491 Two years to three years 93,175 91,459 Three years to five years 2,000 1,780 Total available-for-sale securities $ 445,031 $ 439,583

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Dec. 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, 2022 and December 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, certificates 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, 2022 or December 31, 2022. The fair value level for the Company’s cash and cash equivalents and available-for-sale securities was as follows: June 30, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 139,756 $ 139,756 $ — $ — Funds held for clients' cash and cash equivalents 3,653,697 3,640,427 13,270 — Available-for-sale securities: Commercial paper 58,040 — 58,040 — Corporate bonds 57,853 — 57,853 — Asset-backed securities 9,704 — 9,704 — Certificates of deposit 31,836 — 31,836 — U.S. treasury securities 166,987 — 166,987 — U.S government agency securities 7,549 — 7,549 — Other 2,110 — 2,110 — Total available-for-sale securities 334,079 — 334,079 — Total investments $ 4,127,532 $ 3,780,183 $ 347,349 $ — December 31, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 120,053 $ 120,053 $ — $ — Funds held for clients' cash and cash equivalents 2,626,114 2,607,468 18,646 — Available-for-sale securities: Commercial paper 97,423 — 97,423 — Corporate bonds 76,777 — 76,777 — Asset-backed securities 27,668 — 27,668 — Certificates of deposit 40,462 — 40,462 — U.S. treasury securities 185,250 — 185,250 — U.S government agency securities 7,399 — 7,399 — Other 4,604 — 4,604 — Total available-for-sale securities 439,583 — 439,583 — Total investments $ 3,185,750 $ 2,727,521 $ 458,229 $ — Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis

Debt

Debt	6 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Debt	(8) Debt In July 2019, the Company entered into a revolving credit agreement with PNC Bank, National Association, and other lenders, which is secured by substantially all of the Company’s assets, subject to certain restrictions. In August 2022, the Company entered into a first amendment to the aforementioned credit agreement to increase the borrowing capacity of our revolving credit facility ("credit facility") to $550,000, which may be increased up to $825,000, subject to obtaining additional lender commitments and certain approvals and satisfying other requirements. The amended credit agreement extends the maturity date of the credit facility to August 2027 and replaces the interest rate based on London Interbank Offered Rate with an interest rate based on secured overnight financing rate ("SOFR"). The Company had no borrowings at June 30, 2022 or December 31, 2022. 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. 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 Term SOFR rate plus the SOFR Adjustment or an adjusted base rate, in each case plus an applicable margin ranging from 0.875% to 1.500% and 0.0% to 0.500%, respectively, based on the then-applicable net total 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. 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, (with a step up to 4.50 to 1.00 for the 4 consecutive fiscal quarters following a fiscal quarter in which certain permitted acquisitions are consummated), and a minimum interest coverage ratio of not less than 2.00 to 1.00. As of December 31, 2022, the Company was in compliance with all of the aforementioned covenants.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Dec. 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. As of December 31, 2022, the Company had 13,784 shares allocated to the plans, of which 1,841 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, 2022: Number of Available for grant at July 1, 2022 12,393 RSUs granted (730) MSUs granted (81) Shares withheld in settlement of taxes and/or exercise price 334 Forfeitures 95 Shares removed (68) Available for grant at December 31, 2022 11,943 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, 2021 2022 2021 2022 Cost of revenues $ 3,317 $ 5,232 $ 5,924 $ 9,273 Sales and marketing 5,716 10,795 10,875 20,354 Research and development 5,406 11,292 9,108 20,094 General and administrative 11,804 16,232 19,895 33,643 Total stock-based compensation expense $ 26,243 $ 43,551 $ 45,802 $ 83,364 In addition, the Company capitalized $1,879 and $3,154 of stock-based compensation expense in its capitalized internal-use software costs in the three months ended December 31, 2021 and 2022, respectively, and $3,426 and $6,096 during the six months ended December 31, 2021 and 2022, respectively. There were no stock options granted during the six months ended December 31, 2022. The table below presents stock option activity during the six months ended December 31, 2022: Outstanding Options Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Option balance at July 1, 2022 548 $ 18.34 1.6 $ 85,515 Options exercised (242) $ 12.18 Option balance at December 31, 2022 306 $ 23.21 1.6 $ 52,348 Options vested and exercisable at December 31, 2022 306 $ 23.21 1.6 $ 52,348 The total intrinsic value of options exercised was $11,759 and $1,484 during the three months ended December 31, 2021 and 2022, respectively, and $47,627 and $49,627 during the six months ended December 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 four years following the grant date and have time-based vesting conditions. The following table represents restricted stock unit activity during the six months ended December 31, 2022: Units Weighted average grant date fair value RSU balance at July 1, 2022 1,327 $ 168.44 RSUs granted 730 $ 261.90 RSUs vested (609) $ 148.90 RSUs forfeited (92) $ 138.11 RSU balance at December 31, 2022 1,356 $ 228.70 At December 31, 2022, there was $173,117 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 compensation committee of the Company's board of directors. The actual number of MSUs that will be eligible to vest is based on the achievement of a relative total shareholder return (“TSR”) target as compared to the TSR realized by each of the companies comprising the Russell 3000 Index over an approximately three-year period. The MSUs cliff-vest at the end of the TSR measurement period, and up to 200% of the target number of shares subject to each MSU are eligible to be earned. The following table represents market share unit activity during the six months ended December 31, 2022: Units Weighted average grant date fair value MSU balance at July 1, 2022 101 $ 263.83 MSUs granted 81 $ 388.25 MSUs forfeited (3) $ 355.60 MSU balance at December 31, 2022 179 $ 318.97 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 2021 2022 Valuation assumptions: Expected dividend yield —% —% Expected volatility 47.4 - 47.5% 51.0 - 52.7% Expected term (years) 2.92 - 3.04 2.75 - 3.04 Risk‑free interest rate 0.43 - 0.47% 3.11 - 4.01% At December 31, 2022, there was $32,898 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, 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 disposition of any matters currently outstanding or threatened will not have a material adverse effect on the Company’s

Income Taxes

Income Taxes	6 Months Ended
	Dec. 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. On August 16, 2022, the Inflation Reduction Act (the "IRA") was signed into law and contains a number of tax related provisions. The Company is in the process of evaluating the IRA but does not expect it to have a material impact on the Company's consolidated financial statements. The Company’s effective tax rate was (26.9)% and 14.3% for the three months ended December 31, 2021 and 2022, respectively. 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 for the three months ended December 31, 2022 was lower than the federal statutory rate of 21% primarily due to a decrease to the valuation allowance, partially offset by non-deductible stock-based compensation under Internal Revenue Code Section 162(m). The Company's effective tax rate was (127.8)% and (82.9)% for the six months ended December 31, 2021 and 2022, respectively. The Company's effective tax rate for the six 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 and state and local income taxes, partially offset by an increase to the valuation allowance. The Company's effective tax rate for the six months ended December 31, 2022 was lower than the federal statutory rate of 21% primarily due to excess tax benefits from employee stock-based compensation, state and local income taxes, and a decrease in the valuation allowance.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Dec. 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 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 2021 2022 2021 2022 Numerator: Net income $ 9,853 $ 15,600 $ 40,785 $ 45,952 Denominator: Weighted-average shares used in computing net income per share: Basic 55,067 55,721 54,938 55,587 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and market share units 1,401 753 1,548 972 Diluted 56,468 56,474 56,486 56,559 Net income per share: Basic $ 0.18 $ 0.28 $ 0.74 $ 0.83 Diluted $ 0.17 $ 0.28 $ 0.72 $ 0.81 The following table summarizes the outstanding restricted stock units and market share units as of December 31, 2021 and 2022 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 2021 2022 2021 2022 Market share units 31 57 31 60 Restricted stock units 45 616 46 601 Total 76 673 77 661

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 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. 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.
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. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net-recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
Recently Issued Accounting Standards	(d) Recently Issued Accounting Standards

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	The following table disaggregates total revenues from contracts 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 2021 2022 2021 2022 Recurring fees $ 188,159 $ 247,522 $ 362,856 $ 484,341 Implementation services and other 6,882 8,912 13,009 17,499 Total revenues from contracts $ 195,041 $ 256,434 $ 375,865 $ 501,840
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 2021 2022 2021 2022 Balance at beginning of the period $ 8,717 $ 14,195 $ 8,734 $ 12,233 Deferral of revenue 5,407 12,002 9,760 20,234 Revenue recognized (4,783) (6,460) (9,153) (12,730) Balance at end of the period $ 9,341 $ 19,737 $ 9,341 $ 19,737
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, 2021 Beginning Balance Capitalized Costs Amortization Ending Balance 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 Three Months Ended December 31, 2022 Beginning Balance Capitalized Costs Amortization Ending Balance Costs to obtain a new contract $ 191,088 $ 20,310 $ (10,845) $ 200,553 Costs to fulfill a contract 117,524 18,803 (6,010) 130,317 Total $ 308,612 $ 39,113 $ (16,855) $ 330,870 Six Months Ended December 31, 2021 Beginning Balance Capitalized Costs Amortization Ending Balance 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 Six Months Ended December 31, 2022 Beginning Balance Capitalized Costs Amortization Ending Balance Costs to obtain a new contract $ 182,543 $ 39,222 $ (21,212) $ 200,553 Costs to fulfill a contract 106,025 35,665 (11,373) 130,317 Total $ 288,568 $ 74,887 $ (32,585) $ 330,870

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Summary of the allocation of purchase price	The allocation of the purchase price for Cloudsnap is as follows: January 18, 2022 Proprietary technology $ 15,800 Goodwill 33,628 Other assets acquired 3,398 Liabilities assumed (2,824) Total purchase price $ 50,002

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	6 Months Ended
	Dec. 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, 2022 $ 841 Charged to expense 602 Write-offs (130) Balance at December 31, 2022 $ 1,313
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 $ 193,156 $ 216,774 Accumulated amortization (131,171) (145,691) Capitalized internal-use software, net $ 61,985 $ 71,083
Schedule of property and equipment, net	The major classes of property and equipment, net were as follows: June 30, December 31, Office equipment $ 4,365 $ 4,367 Computer equipment 55,495 54,065 Furniture and fixtures 12,791 12,790 Software 8,785 9,808 Leasehold improvements 47,521 47,723 Time clocks rented by clients 6,711 7,463 Total 135,668 136,216 Accumulated depreciation (72,829) (76,710) Property and equipment, net $ 62,839 $ 59,506
Schedule of changes in goodwill	The following table summarizes changes in goodwill during the six months ended December 31, 2022: December 31, Balance at June 30, 2022 $ 101,949 Measurement period adjustments 105 Balance at December 31, 2022 $ 102,054
Schedule of amortizable intangible assets and estimated useful lives	The Company’s amortizable intangible assets and estimated useful lives were as follows: June 30, December 31, Weighted average useful life (years) Proprietary technology $ 43,129 $ 43,129 6.0 Client relationships 22,200 22,200 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 1,640 1,640 5.0 Total 68,569 68,569 Accumulated amortization (23,094) (28,635) Intangible assets, net $ 45,475 $ 39,934
Schedule of future amortization expense for acquired intangible assets	Future amortization expense for acquired intangible assets as of December 31, 2022 is as follows: Remainder of fiscal 2023 $ 5,407 Fiscal 2024 9,943 Fiscal 2025 8,888 Fiscal 2026 7,269 Fiscal 2027 4,893 Thereafter 3,534 Total $ 39,934
Schedule of components of accrued expenses	The components of accrued expenses were as follows: June 30, December 31, Accrued payroll and personnel costs $ 84,897 $ 62,092 Operating lease liabilities 8,399 8,507 Deferred revenue 13,548 23,538 Other 17,540 21,658 Total accrued expenses $ 124,384 $ 115,795

Corporate Investments and Fun_2

Corporate Investments and Funds Held For Clients (Tables)	6 Months Ended
	Dec. 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 consisted of the following: June 30, 2022 Type of Issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 139,756 $ — $ — $ 139,756 Funds held for clients' cash and cash equivalents 3,653,699 — (2) 3,653,697 Available-for-sale securities: Commercial paper 58,166 — (126) 58,040 Corporate bonds 59,568 — (1,715) 57,853 Asset-backed securities 9,843 2 (141) 9,704 Certificates of deposit 31,879 — (43) 31,836 U.S. treasury securities 167,566 12 (591) 166,987 U.S government agency securities 8,000 — (451) 7,549 Other 2,181 — (71) 2,110 Total available-for-sale securities 337,203 14 (3,138) 334,079 Total investments $ 4,130,658 $ 14 $ (3,140) $ 4,127,532 December 31, 2022 Type of Issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 120,053 $ — $ — $ 120,053 Funds held for clients' cash and cash equivalents 2,626,112 3 (1) 2,626,114 Available-for-sale securities: Commercial paper 97,440 48 (65) 97,423 Corporate bonds 78,757 25 (2,005) 76,777 Asset-backed securities 27,984 17 (333) 27,668 Certificates of deposit 40,449 27 (14) 40,462 U.S. treasury securities 187,671 59 (2,480) 185,250 U.S government agency securities 8,000 — (601) 7,399 Other 4,730 — (126) 4,604 Total available-for-sale securities 445,031 176 (5,624) 439,583 Total investments $ 3,191,196 $ 179 $ (5,625) $ 3,185,750
Schedule of the classification of investments	Classification of investments on the Unaudited Consolidated Balance Sheets was as follows: June 30, December 31, 2022 Cash and cash equivalents $ 139,756 $ 120,053 Funds held for clients 3,987,776 3,065,697 Total investments $ 4,127,532 $ 3,185,750
Schedule of available-for-sale securities that have been in an unrealized loss position for less than and greater than 12 months	Available-for-sale securities that had been in an unrealized loss position for a period of less and greater than 12 months as of June 30, 2022 and December 31, 2022 had fair market value as follows: June 30, 2022 Securities in an unrealized loss Securities in an unrealized loss Total Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (126) $ 53,756 $ — $ — $ (126) $ 53,756 Corporate bonds (1,715) 57,853 — — (1,715) 57,853 Asset-backed securities (141) 7,354 — — (141) 7,354 Certificates of deposit (43) 27,086 — — (43) 27,086 U.S. treasury securities (591) 129,943 — — (591) 129,943 U.S. government agency securities (451) 7,549 — — (451) 7,549 Other (71) 2,110 — — (71) 2,110 Total available-for-sale securities $ (3,138) $ 285,651 $ — $ — $ (3,138) $ 285,651 December 31, 2022 Securities in an unrealized loss Securities in an unrealized loss Total Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (65) $ 29,451 $ — $ — $ (65) $ 29,451 Corporate bonds (758) 29,428 (1,247) 35,274 (2,005) 64,702 Asset-backed securities (193) 15,405 (140) 3,379 (333) 18,784 Certificates of deposit (14) 3,886 — — (14) 3,886 U.S. treasury securities (2,382) 146,060 (98) 3,920 (2,480) 149,980 U.S. government agency securities (36) 965 (565) 6,434 (601) 7,399 Other (49) 2,871 (77) 1,732 (126) 4,603 Total available-for-sale securities $ (3,497) $ 228,066 $ (2,127) $ 50,739 $ (5,624) $ 278,805
Schedule of expected maturities of available-for-sale securities	Expected maturities of available-for-sale securities at December 31, 2022 were as follows: Amortized cost Fair value One year or less $ 259,823 $ 258,853 One year to two years 90,033 87,491 Two years to three years 93,175 91,459 Three years to five years 2,000 1,780 Total available-for-sale securities $ 445,031 $ 439,583

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Dec. 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 was as follows: June 30, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 139,756 $ 139,756 $ — $ — Funds held for clients' cash and cash equivalents 3,653,697 3,640,427 13,270 — Available-for-sale securities: Commercial paper 58,040 — 58,040 — Corporate bonds 57,853 — 57,853 — Asset-backed securities 9,704 — 9,704 — Certificates of deposit 31,836 — 31,836 — U.S. treasury securities 166,987 — 166,987 — U.S government agency securities 7,549 — 7,549 — Other 2,110 — 2,110 — Total available-for-sale securities 334,079 — 334,079 — Total investments $ 4,127,532 $ 3,780,183 $ 347,349 $ — December 31, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 120,053 $ 120,053 $ — $ — Funds held for clients' cash and cash equivalents 2,626,114 2,607,468 18,646 — Available-for-sale securities: Commercial paper 97,423 — 97,423 — Corporate bonds 76,777 — 76,777 — Asset-backed securities 27,668 — 27,668 — Certificates of deposit 40,462 — 40,462 — U.S. treasury securities 185,250 — 185,250 — U.S government agency securities 7,399 — 7,399 — Other 4,604 — 4,604 — Total available-for-sale securities 439,583 — 439,583 — Total investments $ 3,185,750 $ 2,727,521 $ 458,229 $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Dec. 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 six months ended December 31, 2022: Number of Available for grant at July 1, 2022 12,393 RSUs granted (730) MSUs granted (81) Shares withheld in settlement of taxes and/or exercise price 334 Forfeitures 95 Shares removed (68) Available for grant at December 31, 2022 11,943
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, 2021 2022 2021 2022 Cost of revenues $ 3,317 $ 5,232 $ 5,924 $ 9,273 Sales and marketing 5,716 10,795 10,875 20,354 Research and development 5,406 11,292 9,108 20,094 General and administrative 11,804 16,232 19,895 33,643 Total stock-based compensation expense $ 26,243 $ 43,551 $ 45,802 $ 83,364
Schedule of stock option activity	The table below presents stock option activity during the six months ended December 31, 2022: Outstanding Options Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Option balance at July 1, 2022 548 $ 18.34 1.6 $ 85,515 Options exercised (242) $ 12.18 Option balance at December 31, 2022 306 $ 23.21 1.6 $ 52,348 Options vested and exercisable at December 31, 2022 306 $ 23.21 1.6 $ 52,348
Schedule of restricted stock unit activity	The following table represents restricted stock unit activity during the six months ended December 31, 2022: Units Weighted average grant date fair value RSU balance at July 1, 2022 1,327 $ 168.44 RSUs granted 730 $ 261.90 RSUs vested (609) $ 148.90 RSUs forfeited (92) $ 138.11 RSU balance at December 31, 2022 1,356 $ 228.70
Schedule of market share unit activity	The following table represents market share unit activity during the six months ended December 31, 2022: Units Weighted average grant date fair value MSU balance at July 1, 2022 101 $ 263.83 MSUs granted 81 $ 388.25 MSUs forfeited (3) $ 355.60 MSU balance at December 31, 2022 179 $ 318.97
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 2021 2022 Valuation assumptions: Expected dividend yield —% —% Expected volatility 47.4 - 47.5% 51.0 - 52.7% Expected term (years) 2.92 - 3.04 2.75 - 3.04 Risk‑free interest rate 0.43 - 0.47% 3.11 - 4.01%

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Dec. 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 Six Months Ended 2021 2022 2021 2022 Numerator: Net income $ 9,853 $ 15,600 $ 40,785 $ 45,952 Denominator: Weighted-average shares used in computing net income per share: Basic 55,067 55,721 54,938 55,587 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and market share units 1,401 753 1,548 972 Diluted 56,468 56,474 56,486 56,559 Net income per share: Basic $ 0.18 $ 0.28 $ 0.74 $ 0.83 Diluted $ 0.17 $ 0.28 $ 0.72 $ 0.81
Summary of anti-dilutive securities	The following table summarizes the outstanding restricted stock units and market share units as of December 31, 2021 and 2022 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 2021 2022 2021 2022 Market share units 31 57 31 60 Restricted stock units 45 616 46 601 Total 76 673 77 661

Revenue - Disaggregation (Detai

Revenue - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Revenue
Period of term arrangements not cancellable by client			2 years
Disaggregation of revenue
Total revenues from contracts	$ 256,434	$ 195,041	$ 501,840	$ 375,865
Maximum
Revenue
Period of notice to cancel by client			60 days
Recurring fees
Disaggregation of revenue
Total revenues from contracts	247,522	188,159	$ 484,341	362,856
Implementation services and other
Disaggregation of revenue
Total revenues from contracts	$ 8,912	$ 6,882	$ 17,499	$ 13,009

Revenue - Deferred Revenue (Det

Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Changes in deferred revenue related to nonrefundable upfront fees
Beginning balance	$ 14,195	$ 8,717	$ 12,233	$ 8,734
Deferral of revenue	12,002	5,407	20,234	9,760
Revenue recognized	(6,460)	(4,783)	(12,730)	(9,153)
Ending balance	19,737	$ 9,341	19,737	$ 9,341
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 2023	12,680		12,680
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2024	6,102		6,102
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2025 and thereafter	$ 955		$ 955
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, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Deferred contract costs
Amortization period of capitalized contract costs	7 years		7 years
Beginning Balance	$ 308,612	$ 226,007	$ 288,568	$ 214,893
Capitalized Costs	39,113	28,029	74,887	50,706
Amortization	(16,855)	(12,357)	(32,585)	(23,920)
Ending Balance	330,870	241,679	330,870	241,679
Costs to obtain a new contract
Deferred contract costs
Beginning Balance	191,088	149,222	182,543	145,718
Capitalized Costs	20,310	14,929	39,222	26,666
Amortization	(10,845)	(8,587)	(21,212)	(16,820)
Ending Balance	200,553	155,564	200,553	155,564
Costs to fulfill a contract
Deferred contract costs
Beginning Balance	117,524	76,785	106,025	69,175
Capitalized Costs	18,803	13,100	35,665	24,040
Amortization	(6,010)	(3,770)	(11,373)	(7,100)
Ending Balance	$ 130,317	$ 86,115	$ 130,317	$ 86,115

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Remaining Performance Obligations
Minimum value of unsatisfied performance obligations on term-based contracts	$ 53,940
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Remaining Performance Obligations
Remaining performance obligation period	24 months

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Jan. 18, 2022	Dec. 31, 2022	Jun. 30, 2022
Business Combinations
Goodwill		$ 102,054	$ 101,949
Cloudsnap, Inc
Business Combinations
Cash consideration	$ 50,002
Goodwill	33,628
Other assets acquired	3,398
Liabilities assumed	(2,824)
Total purchase price	50,002
Cloudsnap, Inc | Proprietary technology
Business Combinations
Proprietary technology	$ 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		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Activity in the allowance for credit losses
Beginning balance			$ 841
Charged to expense			602	$ 103
Write-offs			(130)
Ending balance	$ 1,313		1,313
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	216,774		216,774		$ 193,156
Accumulated amortization	(145,691)		(145,691)		(131,171)
Capitalized internal-use software, net	71,083		71,083		61,985
Property and equipment, net
Property and equipment, gross	136,216		136,216		135,668
Accumulated depreciation	(76,710)		(76,710)		(72,829)
Property and equipment, net	59,506		59,506		62,839
Depreciation expense	4,579	$ 3,974	9,033	7,816
Changes in Goodwill
Beginning balance			101,949
Measurement period adjustments			105
Ending balance	102,054		102,054
Cost of revenues
Capitalized internal-use software and accumulated amortization
Amortization of capitalized internal-use software	7,478	$ 6,087	14,520	$ 12,215
Office equipment
Property and equipment, net
Property and equipment, gross	4,367		4,367		4,365
Computer equipment
Property and equipment, net
Property and equipment, gross	54,065		54,065		55,495
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	12,790		12,790		12,791
Software
Property and equipment, net
Property and equipment, gross	9,808		9,808		8,785
Leasehold improvements
Property and equipment, net
Property and equipment, gross	47,723		47,723		47,521
Time clocks rented by clients
Property and equipment, net
Property and equipment, gross	$ 7,463		$ 7,463		$ 6,711

Balance Sheet Information - Int

Balance Sheet Information - Intangible Assets and Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Amortizable intangible assets
Amortizable intangible assets, gross	$ 68,569		$ 68,569		$ 68,569
Accumulated amortization	(28,635)		(28,635)		(23,094)
Intangible assets, net	39,934		39,934		45,475
Amortization expense for acquired intangible assets	2,770	$ 2,000	5,541	$ 3,352
Future amortization expense for acquired intangible assets
Remainder of fiscal 2023	5,407		5,407
Fiscal 2024	9,943		9,943
Fiscal 2025	8,888		8,888
Fiscal 2026	7,269		7,269
Fiscal 2027	4,893		4,893
Thereafter	3,534		3,534
Intangible assets, net	39,934		39,934		45,475
Components of accrued expenses
Accrued payroll and personnel costs	62,092		62,092		84,897
Operating lease liabilities	8,507		8,507		8,399
Deferred revenue	23,538		23,538		13,548
Other	21,658		21,658		17,540
Total accrued expenses	115,795		115,795		124,384
Proprietary technology
Amortizable intangible assets
Amortizable intangible assets, gross	43,129		$ 43,129		43,129
Weighted average useful life (years)			6 years
Client relationships
Amortizable intangible assets
Amortizable intangible assets, gross	22,200		$ 22,200		22,200
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		$ 1,640
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, 2022	Jun. 30, 2022	Dec. 31, 2021
Corporate Investments and Funds Held for Clients
Amortized cost of cash and cash equivalents	$ 120,053	$ 139,756
Fair value of cash and cash equivalents	120,053	139,756	$ 84,104
Amortized cost of funds held for clients' cash and cash equivalents	2,626,112	3,653,699
Gross unrealized gains on funds held for clients' cash and cash equivalents	3
Gross unrealized losses on funds held for clients' cash and cash equivalents	(1)	(2)
Fair value of funds held for clients' cash and cash equivalents	2,626,114	3,653,697	$ 1,770,689
Available-for-sale securities:
Amortized cost	445,031	337,203
Gross unrealized gains	176	14
Gross unrealized losses	(5,624)	(3,138)
Fair value	439,583	334,079
Total investments at amortized cost	3,191,196	4,130,658
Total investments gross unrealized gains	179	14
Total investments gross unrealized losses	(5,625)	(3,140)
Total investments	3,185,750	4,127,532
Commercial paper
Available-for-sale securities:
Amortized cost	97,440	58,166
Gross unrealized gains	48	0
Gross unrealized losses	(65)	(126)
Fair value	97,423	58,040
Corporate bonds
Available-for-sale securities:
Amortized cost	78,757	59,568
Gross unrealized gains	25	0
Gross unrealized losses	(2,005)	(1,715)
Fair value	76,777	57,853
Asset-backed securities
Available-for-sale securities:
Amortized cost	27,984	9,843
Gross unrealized gains	17	2
Gross unrealized losses	(333)	(141)
Fair value	27,668	9,704
Certificates of deposit
Available-for-sale securities:
Amortized cost	40,449	31,879
Gross unrealized gains	27	0
Gross unrealized losses	(14)	(43)
Fair value	40,462	31,836
U.S. treasury securities
Available-for-sale securities:
Amortized cost	187,671	167,566
Gross unrealized gains	59	12
Gross unrealized losses	(2,480)	(591)
Fair value	185,250	166,987
U.S government agency securities
Available-for-sale securities:
Amortized cost	8,000	8,000
Gross unrealized gains	0	0
Gross unrealized losses	(601)	(451)
Fair value	7,399	7,549
Other
Available-for-sale securities:
Amortized cost	4,730	2,181
Gross unrealized gains	0	0
Gross unrealized losses	(126)	(71)
Fair value	$ 4,604	$ 2,110

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, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Corporate Investments and Funds Held for Clients
Cash and cash equivalents	$ 120,053	$ 84,104	$ 120,053	$ 84,104	$ 139,756
Funds held for clients	3,065,697		3,065,697		3,987,776
Total investments	3,185,750		3,185,750		4,127,532
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(3,497)		(3,497)		(3,138)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	228,066		228,066		285,651
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(2,127)		(2,127)		0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	50,739		50,739		0
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(5,624)		(5,624)		(3,138)
Fair value of available-for-sale securities in unrealized loss positions	278,805		278,805		285,651
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	(65)		(65)		(126)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	29,451		29,451		53,756
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	0		0		0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	0		0		0
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(65)		(65)		(126)
Fair value of available-for-sale securities in unrealized loss positions	29,451		29,451		53,756
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	(758)		(758)		(1,715)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	29,428		29,428		57,853
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(1,247)		(1,247)		0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	35,274		35,274		0
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(2,005)		(2,005)		(1,715)
Fair value of available-for-sale securities in unrealized loss positions	64,702		64,702		57,853
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	(193)		(193)		(141)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	15,405		15,405		7,354
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(140)		(140)		0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	3,379		3,379		0
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(333)		(333)		(141)
Fair value of available-for-sale securities in unrealized loss positions	18,784		18,784		7,354
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	(14)		(14)		(43)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	3,886		3,886		27,086
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	0		0		0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	0		0		0
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(14)		(14)		(43)
Fair value of available-for-sale securities in unrealized loss positions	3,886		3,886		27,086
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	(2,382)		(2,382)		(591)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	146,060		146,060		129,943
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(98)		(98)		0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	3,920		3,920		0
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(2,480)		(2,480)		(591)
Fair value of available-for-sale securities in unrealized loss positions	149,980		149,980		129,943
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	(36)		(36)		(451)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	965		965		7,549
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(565)		(565)		0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	6,434		6,434		0
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(601)		(601)		(451)
Fair value of available-for-sale securities in unrealized loss positions	7,399		7,399		7,549
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	(49)		(49)		(71)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	2,871		2,871		2,110
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(77)		(77)		0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	1,732		1,732		0
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(126)		(126)		(71)
Fair value of available-for-sale securities in unrealized loss positions	$ 4,603		$ 4,603		$ 2,110

Corporate Investments and Fun_5

Corporate Investments and Funds Held For Clients - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Expected maturities of available-for-sale securities, amortized cost
One year or less	$ 259,823
One year to two years	90,033
Two years to three years	93,175
Three years to five years	2,000
Total available-for-sale securities	445,031	$ 337,203
Expected maturities of available-for-sale securities, fair value
One year or less	258,853
One year to two years	87,491
Two years to three years	91,459
Three years to five years	1,780
Total available-for-sale securities	$ 439,583	$ 334,079

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Fair value measurement
Cash and cash equivalents	$ 120,053	$ 139,756	$ 84,104
Funds held for clients' cash and cash equivalents	2,626,114	3,653,697	$ 1,770,689
Available-for-sale securities:
Total available-for-sale securities	439,583	334,079
Total investments	3,185,750	4,127,532
Level 1
Fair value measurement
Cash and cash equivalents	120,053	139,756
Funds held for clients' cash and cash equivalents	2,607,468	3,640,427
Available-for-sale securities:
Total available-for-sale securities	0	0
Total investments	2,727,521	3,780,183
Level 2
Fair value measurement
Cash and cash equivalents	0	0
Funds held for clients' cash and cash equivalents	18,646	13,270
Available-for-sale securities:
Total available-for-sale securities	439,583	334,079
Total investments	458,229	347,349
Level 3
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	0	0
Total investments	0	0
Commercial paper
Available-for-sale securities:
Total available-for-sale securities	97,423	58,040
Commercial paper | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Commercial paper | Level 2
Available-for-sale securities:
Total available-for-sale securities	97,423	58,040
Commercial paper | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Corporate bonds
Available-for-sale securities:
Total available-for-sale securities	76,777	57,853
Corporate bonds | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Corporate bonds | Level 2
Available-for-sale securities:
Total available-for-sale securities	76,777	57,853
Corporate bonds | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Asset-backed securities
Available-for-sale securities:
Total available-for-sale securities	27,668	9,704
Asset-backed securities | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Asset-backed securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	27,668	9,704
Asset-backed securities | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Certificates of deposit
Available-for-sale securities:
Total available-for-sale securities	40,462	31,836
Certificates of deposit | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Certificates of deposit | Level 2
Available-for-sale securities:
Total available-for-sale securities	40,462	31,836
Certificates of deposit | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
U.S. treasury securities
Available-for-sale securities:
Total available-for-sale securities	185,250	166,987
U.S. treasury securities | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
U.S. treasury securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	185,250	166,987
U.S. treasury securities | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
U.S government agency securities
Available-for-sale securities:
Total available-for-sale securities	7,399	7,549
U.S government agency securities | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
U.S government agency securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	7,399	7,549
U.S government agency securities | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Other
Available-for-sale securities:
Total available-for-sale securities	4,604	2,110
Other | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Other | Level 2
Available-for-sale securities:
Total available-for-sale securities	4,604	2,110
Other | Level 3
Available-for-sale securities:
Total available-for-sale securities	$ 0	$ 0

Debt (Details)

Debt (Details) - Five-year revolving credit agreement - Senior secured debt - USD ($) $ in Thousands	Dec. 31, 2022	Aug. 31, 2022	Jun. 30, 2022
Debt
Maximum borrowing capacity		$ 550,000
Maximum borrowing capacity, subject to additional lender commitments and satisfaction of other requirements		$ 825,000
Borrowings under credit facility	$ 0		$ 0
Minimum
Debt
Interest coverage ratio		2
Maximum
Debt
Net total leverage ratio		4
Net total leverage ratio with step-up		4.50
SOFR | Minimum
Debt
Margin on base rate		0.875%
SOFR | Maximum
Debt
Margin on base rate		1.50%
Adjusted base rate | Minimum
Debt
Margin on base rate		0%
Adjusted base rate | Maximum
Debt
Margin on base rate		0.50%

Stock-Based Compensation - Gene

Stock-Based Compensation - General Information (Details) shares in Thousands	6 Months Ended
	Dec. 31, 2022 shares
Equity Incentive Plans
Equity Incentive Plans
Number of shares of common stock reserved for issuance (in shares)	13,784
Number of shares allocated but not yet issued that are subject to outstanding options or awards (in shares)	1,841
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, 2022 shares
Shares Available for Grant
Beginning balance (in shares)	12,393
RSUs granted (in shares)	(730)
MSUs granted (in shares)	(81)
Shares withheld in net settlement for taxes and/or exercise price (in shares)	334
Forfeitures (in shares)	95
Shares removed (in shares)	(68)
Ending balance (in shares)	11,943

Stock-Based Compensation - Comp

Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Stock-Based Compensation
Total stock-based compensation expense	$ 43,551	$ 26,243	$ 83,364	$ 45,802
Stock-based compensation expense capitalized in internal-use software costs	3,154	1,879	6,096	3,426
Cost of revenues
Stock-Based Compensation
Total stock-based compensation expense	5,232	3,317	9,273	5,924
Sales and marketing
Stock-Based Compensation
Total stock-based compensation expense	10,795	5,716	20,354	10,875
Research and development
Stock-Based Compensation
Total stock-based compensation expense	11,292	5,406	20,094	9,108
General and administrative
Stock-Based Compensation
Total stock-based compensation expense	$ 16,232	$ 11,804	$ 33,643	$ 19,895

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Options Outstanding, Number of Shares
Beginning balance (in shares)				548
Options granted (in shares)				0
Options exercised (in shares)				(242)
Ending balance (in shares)	548	306		306
Options Outstanding, Weighted average exercise price
Beginning balance (in dollars per share)				$ 18.34
Options exercised (in dollars per share)				12.18
Ending balance (in dollars per share)	$ 18.34	$ 23.21		$ 23.21
Options Additional Disclosures
Weighted average remaining contractual term (years)	1 year 7 months 6 days			1 year 7 months 6 days
Weighted average remaining contractual term of options vested and exercisable at the end of the period (years)				1 year 7 months 6 days
Aggregate intrinsic value at the beginning of the period				$ 85,515
Aggregate intrinsic value at the end of the period	$ 85,515	$ 52,348		$ 52,348
Options vested and exercisable at the end of the period (in shares)		306		306
Options vested and exercisable at the end of the period, weighted average exercise price (in dollars per share)		$ 23.21		$ 23.21
Options vested and exercisable, aggregate intrinsic value		$ 52,348		$ 52,348
Total intrinsic value of options exercised		$ 1,484	$ 11,759	$ 49,627	$ 47,627

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, 2022 USD ($) $ / shares shares
RSUs Outstanding, Units
Beginning balance (in shares) | shares	1,327
RSUs granted (in shares) | shares	730
RSUs vested (in shares) | shares	(609)
RSUs forfeited (in shares) | shares	(92)
Ending balance (in shares) | shares	1,356
RSUs Outstanding, Weighted average grant date fair value
Beginning balance (in dollars per share) | $ / shares	$ 168.44
RSUs granted (in dollars per share) | $ / shares	261.90
RSUs vested (in dollars per share) | $ / shares	148.90
RSUs forfeited (in dollars per share) | $ / shares	138.11
Ending balance (in dollars per share) | $ / shares	$ 228.70
Unrecognized Compensation Costs Not Yet Recognized, Net of Estimated Forfeitures [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested RSUs | $	$ 173,117
Weighted average period to recognize unrecognized compensation cost (in years)	1 year 10 months 24 days
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, 2022 $ / shares shares
Equity Incentive Plans
Vesting period	3 years
Percentage of target number of shares subject to each MSU	200%
MSUs Outstanding, Units
Beginning balance (in shares) | shares	101
MSUs granted (in shares) | shares	81
MSUs forfeited (in shares) | shares	(3)
Ending balance (in shares) | shares	179
MSUs Outstanding, Weighted average grant date fair value
Beginning balance (in dollars per share) | $ / shares	$ 263.83
MSUs granted (in dollars per share) | $ / shares	388.25
MSUs forfeited (in dollars per share) | $ / shares	355.60
Ending balance (in dollars per share) | $ / shares	$ 318.97

Stock-Based Compensation - MS_2

Stock-Based Compensation - MSU Information (Details) - Market share units - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Valuation assumptions:
Expected dividend yield	0%	0%
Unrecognized Compensation Costs Not Yet Recognized, Net of Estimated Forfeitures [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested MSUs	$ 32,898
Weighted average period to recognize unrecognized compensation cost (in years)	2 years 4 months 24 days
Minimum
Valuation assumptions:
Expected volatility	51%	47.40%
Expected term (years)	2 years 9 months	2 years 11 months 1 day
Risk‑free interest rate	3.11%	0.43%
Maximum
Valuation assumptions:
Expected volatility	52.70%	47.50%
Expected term (years)	3 years 14 days	3 years 14 days
Risk‑free interest rate	4.01%	0.47%

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022 Rate	Dec. 31, 2021 Rate
Income Tax Disclosure [Abstract]
Effective tax rate for the period (as a percent)	14.30%	(26.90%)	(82.90%)	(127.80%)
U.S. federal income tax rate (as a percent)	21%	21%	21%	21%

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, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net income	$ 15,600	$ 9,853	$ 45,952	$ 40,785
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,721	55,067	55,587	54,938
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units and market share units (in shares)	753	1,401	972	1,548
Diluted (in shares)	56,474	56,468	56,559	56,486
Net income per share:
Basic (in dollars per share)	$ 0.28	$ 0.18	$ 0.83	$ 0.74
Diluted (in dollars per share)	$ 0.28	$ 0.17	$ 0.81	$ 0.72
Anti-dilutive securities excluded (in shares)	673	76	661	77
Market share units
Net income per share:
Anti-dilutive securities excluded (in shares)	57	31	60	31
Restricted stock units
Net income per share:
Anti-dilutive securities excluded (in shares)	616	45	601	46