Paylocity Holding (PCTY) 10-K 4 Aug 23 2023 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Billions	12 Months Ended
	Jun. 30, 2023	Jul. 28, 2023	Dec. 31, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jun. 30, 2023
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 8.2
Entity Common Stock, Shares Outstanding		55,921,143
Entity Central Index Key	0001591698
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information

Audit Information	12 Months Ended
	Jun. 30, 2023
Audit Information [Abstract]
Auditor name	KPMG LLP
Auditor location	Chicago, IL
Auditor firm ID	185

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022
Current assets:
Cash and cash equivalents	$ 288,767	$ 139,756
Accounts receivable, net	25,085	15,754
Deferred contract costs	78,109	59,501
Prepaid expenses and other	35,061	28,896
Total current assets before funds held for clients	427,022	243,907
Funds held for clients	2,621,415	3,987,776
Total current assets	3,048,437	4,231,683
Capitalized internal-use software, net	86,127	61,985
Property and equipment, net	64,069	62,839
Operating lease right-of-use assets	44,067	49,210
Intangible assets, net	34,527	45,475
Goodwill	102,054	101,949
Long-term deferred contract costs	294,222	229,067
Long‑term prepaid expenses and other	6,331	7,746
Deferred income tax assets	15,846	19,060
Total assets	3,695,680	4,809,014
Current liabilities:
Accounts payable	6,153	8,374
Accrued expenses	143,287	124,384
Total current liabilities before client fund obligations	149,440	132,758
Client fund obligations	2,625,355	3,987,776
Total current liabilities	2,774,795	4,120,534
Long-term operating lease liabilities	62,471	69,119
Other long-term liabilities	3,731	3,681
Deferred income tax liabilities	11,820	2,217
Total liabilities	2,852,817	4,195,551
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2022 and June 30, 2023	0	0
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2022 and June 30, 2023; 55,190 shares issued and outstanding at June 30, 2022 and 55,912 shares issued and outstanding at June 30, 2023	56	55
Additional paid-in capital	380,632	289,843
Retained earnings	466,690	325,868
Accumulated other comprehensive loss	(4,515)	(2,303)
Total stockholders' equity	842,863	613,463
Total liabilities and stockholders’ equity	$ 3,695,680	$ 4,809,014

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2023	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)	55,912	55,190
Common stock, shares outstanding (in shares)	55,912	55,190

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Recurring and other revenue	$ 1,098,036	$ 847,694	$ 631,725
Interest income on funds held for clients	76,562	4,957	3,902
Total revenues	1,174,598	852,651	635,627
Cost of revenues	367,039	287,002	219,298
Gross profit	807,559	565,649	416,329
Operating expenses:
Sales and marketing	296,716	214,455	161,808
Research and development	163,994	102,908	76,707
General and administrative	191,823	163,692	119,771
Total operating expenses	652,533	481,055	358,286
Operating income	155,026	84,594	58,043
Other income (expense)	3,588	(997)	(939)
Income before income taxes	158,614	83,597	57,104
Income tax expense (benefit)	17,792	(7,180)	(13,715)
Net income	140,822	90,777	70,819
Other comprehensive loss, net of tax	(2,212)	(2,369)	(609)
Comprehensive income	$ 138,610	$ 88,408	$ 70,210
Net income per share:
Basic (in dollars per share)	$ 2.53	$ 1.65	$ 1.30
Diluted (in dollars per share)	$ 2.49	$ 1.61	$ 1.26
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,706	55,036	54,318
Diluted (in shares)	56,596	56,445	56,305

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Jun. 30, 2020		53,792
Beginning balance at Jun. 30, 2020	$ 392,908	$ 54	$ 227,907	$ 164,272	$ 675
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	65,662		65,662
Stock options exercised (in shares)		490
Stock options exercised	3,313		3,313
Issuance of common stock upon vesting of restricted stock units (in shares)		644
Issuance of common stock upon vesting of restricted stock units	0	$ 1	(1)
Issuance of common stock under employee stock purchase plan (in shares)		104
Issuance of common stock under employee stock purchase plan	12,214		12,214
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(436)
Net settlement for taxes and/or exercise price related to equity awards	(67,377)		(67,377)
Unrealized losses on securities, net of tax	(609)				(609)
Net income	70,819			70,819
Ending balance (in shares) at Jun. 30, 2021		54,594
Ending balance at Jun. 30, 2021	476,930	$ 55	241,718	235,091	66
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	103,733		103,733
Stock options exercised (in shares)		217
Stock options exercised	2,226		2,226
Issuance of common stock upon vesting of restricted stock units (in shares)		567
Issuance of common stock under employee stock purchase plan (in shares)		101
Issuance of common stock under employee stock purchase plan	14,103		14,103
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(289)
Net settlement for taxes and/or exercise price related to equity awards	(71,937)		(71,937)
Unrealized losses on securities, net of tax	(2,369)				(2,369)
Net income	$ 90,777			90,777
Ending balance (in shares) at Jun. 30, 2022	55,190	55,190
Ending balance at Jun. 30, 2022	$ 613,463	$ 55	289,843	325,868	(2,303)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	162,183		162,183
Stock options exercised (in shares)		260
Stock options exercised	3,265		3,265
Issuance of common stock upon vesting of restricted stock units (in shares)		724
Issuance of common stock upon vesting of restricted stock units	1	$ 1	0
Issuance of common stock under employee stock purchase plan (in shares)		120
Issuance of common stock under employee stock purchase plan	16,916		16,916
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(382)
Net settlement for taxes and/or exercise price related to equity awards	(91,575)		(91,575)
Unrealized losses on securities, net of tax	(2,212)				(2,212)
Net income	$ 140,822			140,822
Ending balance (in shares) at Jun. 30, 2023	55,912	55,912
Ending balance at Jun. 30, 2023	$ 842,863	$ 56	$ 380,632	$ 466,690	$ (4,515)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income	$ 140,822	$ 90,777	$ 70,819
Adjustments to reconcile net income to net cash provided by operating activities
Stock-based compensation expense	147,300	96,202	63,052
Depreciation and amortization expense	60,866	50,218	42,972
Deferred income tax expense (benefit)	13,540	(7,180)	(13,642)
Provision for credit losses	1,245	311	316
Net amortization of premiums (accretion of discounts) on available-for-sale securities	(5,412)	381	347
Amortization of debt issuance costs	286	185	171
Other	1,396	318	632
Changes in operating assets and liabilities:
Accounts receivable	(9,407)	(7,605)	(1,654)
Deferred contract costs	(80,781)	(73,263)	(56,850)
Prepaid expenses and other	(3,994)	(14,767)	(4,004)
Accounts payable	(1,554)	2,553	2,394
Accrued expenses and other	18,416	16,923	20,297
Net cash provided by operating activities	282,723	155,053	124,850
Cash flows from investing activities:
Purchases of available-for-sale securities and other	(598,895)	(433,962)	0
Proceeds from sales and maturities of available-for-sale securities	446,751	116,848	101,467
Capitalized internal-use software costs	(45,004)	(34,515)	(28,594)
Purchases of property and equipment	(21,910)	(18,069)	(9,461)
Acquisitions of businesses, net of cash acquired	0	(107,576)	(14,992)
Other investing activities	(1,104)	(2,500)	0
Net cash provided by (used in) investing activities	(220,162)	(479,774)	48,420
Cash flows from financing activities:
Net change in client fund obligations	(1,362,421)	2,228,038	432,373
Borrowings under credit facility	0		0
Repayment of credit facility	0	(50,000)	(100,000)
Proceeds from exercise of stock options	0	0	146
Proceeds from employee stock purchase plan	16,916	14,103	12,214
Taxes paid related to net share settlement of equity awards	(88,312)	(69,761)	(64,191)
Payment of debt issuance costs	(885)	(87)	(64)
Net cash provided by (used in) financing activities	(1,434,702)	2,172,293	280,478
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents	(1,372,141)	1,847,572	453,748
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of year	3,793,453	1,945,881	1,492,133
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of year	2,421,312	3,793,453	1,945,881
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment and internal-use software, accrued but not paid	0	2,052	581
Liabilities assumed for acquisitions	117	4,581	281
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	404	311	870
Cash paid (refunds received) for income taxes	1,359	11	(136)
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	288,767	139,756	202,287
Funds held for clients' cash and cash equivalents	2,132,545	3,653,697	1,743,594
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$ 2,421,312	$ 3,793,453	$ 1,945,881

Organization and Description of

Organization and Description of Business	12 Months Ended
	Jun. 30, 2023
Organization and Description of Business [Abstract]
Organization and Description of Business	(1) Organization and Description of BusinessPaylocity Holding Corporation (the “Company”) is a cloud-based provider of human capital management and payroll software solutions that deliver a comprehensive platform for the modern workforce. Services are provided in a Software-as-a-Service (“SaaS”) delivery model. The Company’s comprehensive product suite delivers a unified platform that helps businesses attract and retain talent, build culture and connection with their employees, and streamline and automate HR and payroll processes.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) Basis of Presentation, Consolidation, and Use of Estimates The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. (b) Concentrations of Risk The Company regularly maintains cash balances that exceed Federal Depository Insurance Corporation limits. No individual client represents 10% or more of total revenues. For all periods presented, substantially all of total revenues were generated by clients in the United States. (c) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. (d) Funds Held For Clients, Corporate Investments and Client Fund Obligations The Company obtains funds from clients in advance of performing payroll and payroll tax filing services on behalf of those clients. Funds held for clients represent assets that are used solely for the purposes of satisfying the obligations to remit funds relating to payroll and payroll tax filing services. The Company has classified Funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client fund obligations. Funds held for clients is primarily comprised of cash and cash equivalents invested in demand deposit accounts. The Company also invests a portion of its funds held for clients and corporate funds in marketable securities. Marketable securities classified as available-for-sale are recorded at fair value on the Consolidated Balance Sheets. Unrealized gains and losses, net of applicable income taxes, are reported as Other comprehensive income (loss) in the Consolidated Statements of Operations and Comprehensive Income. Interest on marketable securities included in Funds held for clients is reported as Interest income on funds held for clients and interest on Corporate investments is reported as Other income (expense) on the Consolidated Statements of Operations and Comprehensive Income, respectively. The Company evaluates whether a decline in an individual security’s fair value as compared to its amortized cost basis resulted from credit loss or other factors. If the Company determines that an individual security’s unrealized loss results from credit impairment, it compares the present value of cash flows expected to be collected from the impaired security with its amortized cost basis. If the security’s amortized cost basis exceeds the present value of expected cash flows, the Company records credit impairment loss through an allowance for credit loss. The Company did not recognize any credit impairment losses during the years ended June 30, 2021, 2022 or 2023. Client fund obligations represent the Company’s contractual obligations to remit funds to satisfy clients’ payroll and tax payment obligations and are recorded in the accompanying balance sheets at the time that the Company obtains funds from clients. The client fund obligations represent liabilities that will be repaid within one year of the balance sheet date. (e) Accounts Receivable, Net Accounts receivable is comprised of trade receivables, accrued interest receivable on funds held for clients and other receivables. Trade receivables are recorded at the invoiced amount and do not bear interest. Amounts collected on accounts receivable are included in Net cash provided by operating activities in the Consolidated Statements of Cash Flows. The Company maintains an allowance for credit losses reflecting expected credit losses in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the Company’s clients’ financial conditions, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Company reviews its allowance for credit losses quarterly. Past due balances over 60 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all commercially reasonable means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. (f) 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. Management evaluates deferred contract costs for impairment if changes in circumstances occur that could impact the recoverability of the costs to obtain or fulfill contracts with the Company’s customers. (g) Capitalized Internal-Use Software The Company capitalizes internal-use software costs when module development begins, it is probable that the project will be completed, and the software will be used as intended. Costs associated with preliminary project stage activities, training, maintenance and all other post implementation stage activities are expensed as incurred. The Company also capitalizes certain costs related to specific upgrades and enhancements when it is probable the expenditures will result in significant additional functionality. The capitalization policy provides for the capitalization of certain payroll costs for employees who are directly associated with developing internal-use software as well as certain external direct costs, such as consulting fees. Capitalized employee costs are limited to the time directly spent on such projects. Capitalized internal-use software costs are amortized on a straight-line basis over their estimated useful lives, which are generally two (h) Property and Equipment and Long-Lived Assets Property and equipment are stated at cost. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets, generally three Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. (i) Business Combination The Company accounts for business combinations in accordance with ASC 805, Business Combinations using the acquisition method of accounting. It allocates the purchase price consideration associated with its acquisitions to the fair values of assets acquired and liabilities assumed at their respective acquisition dates, with the excess recorded to goodwill. Estimating the fair values of assets acquired and liabilities assumed requires the use of significant judgments and estimates, which are inherently uncertain and subject to refinement as additional information becomes available. Adjustments to the fair values of assets acquired and liabilities assumed may be recorded during the measurement period, which may be up to one year from the acquisition date, with the corresponding offset to goodwill. The Company engages a valuation specialist to assist in the fair value measurement of assets acquired and liabilities assumed for each acquisition. (j) Intangible Assets, Net of Accumulated Amortization Intangible assets are comprised primarily of acquired client relationships, proprietary technology, trade names and non-solicitation agreements and are reported net of accumulated amortization on the Consolidated Balance Sheets. The Company uses the straight-line method of amortization to amortize client relationships over a five five (k) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized, but instead is tested for impairment at the reporting unit level. If the fair value of the reporting unit is less than its carrying amount, the Company would record an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss recognized should not exceed the amount of goodwill allocated to the reporting unit. The Company performs its annual impairment review of goodwill in its fiscal fourth quarter or when a triggering event occurs between annual impairment tests. No impairment was recorded in fiscal 2021, 2022 or 2023 as a result of the Company’s qualitative assessments over its single reporting segment. (l) Leases The Company determines if an arrangement is a lease at agreement inception. Operating leases are included in Operating lease right-of-use assets, Accrued expenses, and Long-term operating lease liabilities in the Consolidated Balance Sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating lease right-of-use assets also include any lease payments made at or before the commencement date and are reduced by any lease incentives received. The Company’s lease terms may include options to renew or extend a lease. The Company recognizes amounts in Operating lease right-of- use assets and Operating lease liabilities when it is reasonably certain it will exercise such options. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the expected lease term. The Company’s most significant leases are real estate leases of office space. The remaining operating leases are primarily comprised of leases of printers and other equipment. For all leases, the Company has elected the practical expedient permitted under Topic 842 to combine lease and non-lease components. As a result, non-lease components, such as common area or equipment maintenance charges, are accounted for as a single lease element. The Company does not have any material finance leases. Fixed lease expense payments are recognized on a straight-line basis over the lease term. Variable lease payments vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time, and are often due to changes in an external market rate or the value of an index (e.g., Consumer Price Index). Certain of the Company’s operating lease agreements include variable payments that are passed through by the lessor, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Variable payments are expensed as incurred and included within variable rent expense. The Company’s lease agreements do not contain material residual value guarantees, restrictions, or covenants. (m) Income Taxes Income taxes are accounted for under the asset and liability 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. Deferred tax assets may be reduced by a valuation allowance to the extent we determine it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company is required to consider all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income among other items, in determining whether a full or partial release of its valuation allowance is required. The Company is also required to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. The Company’s accounting for deferred tax consequences represents the best estimate of those future events. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. When applicable, the Company records interest and penalties as an element of income tax expense. Refer to Note 14 for additional information on income taxes. (n) Revenue Recognition The Company applies Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“Topic 606”). Topic 606 requires revenue to be recognized when an entity transfers control of goods or services to a customer in an amount that reflects the consideration to which a company also expects to be entitled to for those goods or services. To achieve this core principle, the Company recognizes revenue from contracts with customers based on the following five steps: 1) Identify the contract with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to performance obligations in the contract; and 5) Recognize revenue when or as the Company satisfies a performance obligation. 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 offers term agreements to its clients, which are generally two years in length. Recurring fees are derived from cloud-based payroll and HCM software solutions as follows: • Payroll processing and related services, including payroll reporting and tax filing services, are delivered on a weekly, biweekly, semi-monthly, or monthly basis depending upon the payroll frequency of the client and on an annual basis if a client selects W-2 preparation and processing services, • Time and attendance reporting services, including time clock rentals, are delivered on a monthly basis, and • HR-related software solutions, including employee management and benefits enrollment and administration, are delivered on a monthly basis. 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 HCM 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. The Company has certain optional performance obligations that are satisfied at a point in time including the sales of time clocks and W-2 services. Non-recurring service fees consist mainly of nonrefundable implementation fees, which involve setting the client up in, and loading data into, the Company’s cloud-based modules. These implementation activities are considered set-up activities. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract. Implementation fees are deferred and amortized generally over a period up to 24 months. Sales taxes collected from clients and remitted to governmental authorities where applicable are accounted for on a net basis and therefore are excluded from revenues in the Statements of Operations and Comprehensive Income. Interest income earned on funds held for clients is recognized in Interest income on funds held for clients when earned as the collection, holding and remittance of these funds are components of providing services to clients. (o) Cost of Revenues Cost of revenues consists primarily of costs to provide HCM and payroll solutions relating to the provision of ongoing client support and implementation activities and also includes amortization of capitalized internal-use software and certain acquired intangibles. The Company generally expenses these costs when incurred except for costs related to the implementation of the Company’s proprietary products. These costs are capitalized and amortized over a period of 7 years. (p) Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $3,189, $8,335 and $15,700 for the years ended June 30, 2021, 2022 and 2023, respectively. (q) Stock-Based Compensation The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards, comprised of restricted stock units and market share units, are measured at the grant date fair value of each award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of each award. For market share units, the Company estimates grant date fair value using a discrete model based on multiple stock price-paths developed through the use of Monte Carlo simulation. For estimated shares purchasable under the 2014 Employee Stock Purchase Plan (“ESPP”), the Company estimates grant date fair value using the Black-Scholes option-pricing model and recognizes applicable expense on a straight-line basis over each purchase period. The Company may update the assumed forfeiture rates based on historical experience as appropriate. (r) Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. (s) Segment Information The Company’s chief operating decision maker reviews the financial results of the Company in total when evaluating financial performance and for purposes of allocating resources. The Company has thus determined that it operates in a single reporting segment. For fiscal 2023, the Company’s chief operation decision maker was the Company’s Co-Chief Executive Officers. (t) Recently Issued Accounting Standards

Revenue

Revenue	12 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	(3) Revenue The following table disaggregates revenue by Recurring fees and Implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Year Ended June 30, 2021 2022 2023 Recurring fees $ 609,658 $ 818,137 $ 1,056,808 Implementation services and other 22,067 29,557 41,228 Total revenues from contracts $ 631,725 $ 847,694 $ 1,098,036 Deferred revenue The timing of revenue recognition for recurring revenue is consistent with the timing of invoicing as they occur simultaneously upon the client payroll-processing period or by month. As such, the Company does not recognize contract assets or liabilities related to recurring revenue. The 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: Year Ended June 30, 2022 2023 Balance at beginning of the year $ 8,734 $ 12,233 Deferral of revenue 25,109 40,991 Revenue recognized (21,610) (30,607) Balance at end of the year $ 12,233 $ 22,617 Deferred revenue related to these nonrefundable upfront fees are recorded within Accrued expenses and Other long-term liabilities on the Consolidated Balance Sheets. The Company expects to recognize these deferred revenue balances of $19,108 in fiscal 2024, $3,417 in fiscal 2025, and $92 thereafter. Deferred contract costs The following tables present the deferred contract costs balances and the related amortization expense for these deferred contract costs: Year Ended June 30, 2022 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 145,718 $ 72,572 $ (35,747) $ 182,543 Costs to fulfill a contract 69,175 53,004 (16,154) 106,025 Total $ 214,893 $ 125,576 $ (51,901) $ 288,568 Year Ended June 30, 2023 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 182,543 $ 80,999 $ (44,577) $ 218,965 Costs to fulfill a contract 106,025 72,762 (25,421) 153,366 Total $ 288,568 $ 153,761 $ (69,998) $ 372,331 Deferred contract costs are recorded within Deferred contract costs and Long-term deferred contract costs on the Consolidated Balance Sheets. Amortization of deferred contract costs is primarily recorded in Cost of revenues and Sales and marketing in the Consolidated Statements of Operations and Comprehensive Income. The Company did not record any impairment losses associated with its deferred contract costs during the years ended June 30, 2021, 2022 or 2023. Remaining Performance Obligations

Corporate Investments and Funds

Corporate Investments and Funds Held for Clients	12 Months Ended
	Jun. 30, 2023
Corporate Investments and Funds Held for Clients [Abstract]
Corporate Investments and Funds Held for Clients	(4) 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 Gross Gross 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 June 30, 2023 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 288,767 $ — $ — $ 288,767 Funds held for clients' cash and cash equivalents 2,132,545 — — 2,132,545 Available-for-sale securities: Commercial paper 110,003 12 (138) 109,877 Corporate bonds 112,262 18 (1,867) 110,413 Asset-backed securities 30,061 10 (337) 29,734 Certificates of deposit 68,247 5 (93) 68,159 U.S treasury securities 158,839 — (2,839) 156,000 U.S government agency securities 8,000 — (513) 7,487 Other 7,329 — (129) 7,200 Total available-for-sale securities 494,741 45 (5,916) 488,870 Total investments $ 2,916,053 $ 45 $ (5,916) $ 2,910,182 All available-for-sale securities were included in Funds held for clients at June 30, 2022 and 2023. 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 as of June 30, 2022 and 2023. Classification of investments on the consolidated balance sheets was as follows: June 30, 2022 2023 Cash and cash equivalents $ 139,756 $ 288,767 Funds held for clients 3,987,776 2,621,415 Total investments $ 4,127,532 $ 2,910,182 Available-for-sale securities that have been in an unrealized loss position for a period of less and greater than 12 months as of June 30, 2022 and June 30, 2023 had fair market value as follows: June 30, 2022 Securities in an unrealized loss Securities in an unrealized loss Total Gross Fair 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 June 30, 2023 Securities in an unrealized loss Securities in an unrealized loss Total Gross Fair Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (138) $ 96,665 $ — $ — $ (138) $ 96,665 Corporate bonds (695) 71,089 (1,172) 32,807 (1,867) 103,896 Asset-backed securities (233) 23,313 (104) 2,038 (337) 25,351 Certificates of deposit (93) 52,254 — — (93) 52,254 U.S. treasury securities (1,075) 95,388 (1,764) 60,612 (2,839) 156,000 U.S. government agency securities — — (513) 7,487 (513) 7,487 Other (71) 5,326 (58) 1,874 (129) 7,200 Total available-for-sale securities $ (2,305) $ 344,035 $ (3,611) $ 104,818 $ (5,916) $ 448,853 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 years ended June 30, 2021, 2022 or 2023. All securities in the Company's portfolio held an A-1 rating or better as of June 30, 2023. 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 years ended June 30, 2021, 2022 or 2023. Gross realized gains and losses on the sale of available-for-sale securities were immaterial for the years ended June 30, 2021, 2022 and 2023. Expected maturities of available-for-sale securities at June 30, 2023 were as follows: Amortized Fair One year or less $ 257,957 $ 256,166 One year to two years 147,340 144,468 Two years to three years 87,451 86,445 Three years to five years 1,993 1,791 Total available-for-sale securities $ 494,741 $ 488,870

Fair Value Measurement

Fair Value Measurement	12 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	(5) 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 any cash and cash equivalents, funds held for clients' 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 2023 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 securities and other. 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 2023. 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 $ — June 30, 2023 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 288,767 $ 288,767 $ — $ — Funds held for clients' cash and cash equivalents 2,132,545 2,132,545 — — Available-for-sale securities: Commercial paper 109,877 — 109,877 — Corporate bonds 110,413 — 110,413 — Asset-backed securities 29,734 — 29,734 — Certificates of deposit 68,159 — 68,159 — U.S. treasury securities 156,000 — 156,000 — U.S. government agency securities 7,487 — 7,487 — Other 7,200 — 7,200 — Total available-for-sale securities 488,870 — 488,870 — Total investments $ 2,910,182 $ 2,421,312 $ 488,870 $ — Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis

Accounts Receivable, Net

Accounts Receivable, Net	12 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Accounts Receivable, Net	(6) Accounts Receivable, Net The components of accounts receivable were as follows: Year Ended June 30, 2022 2023 Trade receivables $ 14,797 $ 15,471 Accrued interest on funds held for clients 296 6,886 Other 1,502 4,348 Gross accounts receivable 16,595 26,705 Allowance for credit losses (841) (1,620) Accounts receivable, net $ 15,754 $ 25,085 Activity in the allowance for credit losses related to accounts receivable was as follows: Year Ended June 30, 2021 2022 2023 Balance at the beginning of the year $ 617 $ 800 $ 841 Charged to expense 316 311 1,245 Write-offs (133) (270) (466) Balance at the end of the year $ 800 $ 841 $ 1,620

Business Combinations

Business Combinations	12 Months Ended
	Jun. 30, 2023
Business Combinations [Abstract]
Business Combinations	(7) Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations. The Company recorded the acquisitions disclosed below using the acquisition method of accounting and recognized assets and liabilities at their fair values as of the date of acquisitions, with the excess recorded to goodwill. On November 13, 2020, the Company acquired all of the shares outstanding of Samepage Labs Inc. (“Samepage”) through a merger for purchase price consideration of $15,018, which was paid in cash upon closing. Samepage offers digital collaboration tools including task management, file sharing, real-time collaboration and more. This transaction expands the Company’s product functionality in these areas and demonstrates its commitment to building a modern workforce suite of solutions that meet the needs of HR teams and employees. The allocation of the purchase price for Samepage was approximately $11,995 of goodwill, $3,167 of proprietary technology and other immaterial assets and liabilities. On August 31, 2021, the Company entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Blue Marble Payroll, LLC (“Blue Marble”) and its equity holders and acquired all of the issued and outstanding equity interests of Blue Marble for cash consideration of $60,961, subject to customary purchase price adjustments. Blue Marble’s payroll platform enables U.S.-based companies to manage payroll for employees outside the U.S. in line with complex local and country-specific requirements across many countries. This acquisition enables the Company to better serve its clients in managing their international workforces through a unified solution to pay employees, automate processes and stay compliant with regulations in other countries. An entity affiliated with Steven I. Sarowitz, the Chairman of the Board of Directors and the largest shareholder of the Company, was the largest equity holder of Blue Marble. The Board of Directors of the Company appointed the Audit Committee, which is comprised solely of directors who are independent of the management of Blue Marble, the Blue Marble equity holders and the Company, to evaluate, assess and negotiate on its behalf the terms and conditions in the Purchase Agreement. The Audit Committee and the disinterested directors of the Company’s Board of Directors unanimously approved the Purchase Agreement and transactions specified within it. The allocation of the purchase price for Blue Marble was as follows: August 31, 2021 Proprietary technology $ 21,200 Client relationships 3,000 Trade names 1,200 Goodwill 34,776 Other assets acquired 2,659 Liabilities assumed (1,874) Total purchase price $ 60,961 On January 18, 2022, the Company acquired all of the shares outstanding of Cloudsnap, Inc., ("Cloudsnap") through a merger for cash consideration of $50,002, which was paid upon closing. Cloudsnap is a provider of a flexible, low-code solution for integrating disparate business applications. This transaction enables the Company to deliver modern integrations and seamless data sharing between critical systems more efficiently and effectively, while helping to unify and automate business processes across clients' HR, finance, benefits, and other systems. The allocation of the purchase price for Cloudsnap was 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 results from these acquisitions have been included in the Company’s consolidated financial statements since the closing of the acquisitions and are not material to the Company. Pro forma information was not presented because the effects of the acquisitions are not material to the Company’s consolidated financial statements. The goodwill related to these transactions is primarily attributable to the assembled workforce and growth opportunities from the expansion and enhancement of the Company’s product offerings. The goodwill associated with the Blue Marble acquisition is deductible for income tax purposes. The goodwill associated with the Samepage and Cloudsnap acquisitions is not deductible for income tax purposes. Direct costs related to these acquisitions were immaterial and expensed as incurred as Cost of revenues and General and administrative in the Consolidated Statements of Operations and Comprehensive Income.

Capitalized Internal-Use Softwa

Capitalized Internal-Use Software	12 Months Ended
	Jun. 30, 2023
Research and Development [Abstract]
Capitalized Internal-Use Software	(8) Capitalized Internal-Use Software Capitalized internal-use software and accumulated amortization were as follows: June 30, 2022 2023 Capitalized internal-use software $ 193,156 $ 248,738 Accumulated amortization (131,171) (162,611) Capitalized internal-use software, net $ 61,985 $ 86,127 Amortization of capitalized internal-use software amounted to $23,227, $25,267 and $31,440 for the years ended June 30, 2021, 2022 and 2023, respectively and is included in Cost of revenues.

Property and Equipment

Property and Equipment	12 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	(9) Property and Equipment The major classes of property and equipment were as follows: June 30, 2022 2023 Office equipment $ 4,365 $ 2,508 Computer equipment 55,495 58,670 Furniture and fixtures 12,791 12,958 Software 8,785 11,127 Leasehold improvements 47,521 48,159 Time clocks rented by clients 6,711 8,533 Total 135,668 141,955 Accumulated depreciation (72,829) (77,886) Property and equipment, net $ 62,839 $ 64,069 Depreciation expense amounted to $15,905, $16,199 and $18,478 for the years ended June 30, 2021, 2022 and 2023, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	(10) Goodwill and Intangible Assets The following table summarizes changes in goodwill during the years presented below: Year Ended June 30, 2022 2023 Balance at beginning of year $ 33,650 $ 101,949 Additions attributable to acquisitions 68,299 — Measurement period adjustments — 105 Balance at end of year $ 101,949 $ 102,054 Refer to Note 7 for further details on acquisition activity during the years ended June 30, 2022 and 2023. The Company’s amortizable intangible assets and estimated useful lives were as follows: June 30, Weighted 2022 2023 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) (34,042) Intangible assets, net $ 45,475 $ 34,527 Amortization expense for acquired intangible assets was $3,840, $8,752 and $10,948 for the years ended June 30, 2021, 2022 and 2023, respectively, and is included in Cost of revenues and General and administrative. Future amortization expense for acquired intangible assets was as follows, as of June 30, 2023: Fiscal 2024 $ 9,943 Fiscal 2025 8,888 Fiscal 2026 7,269 Fiscal 2027 4,893 Fiscal 2028 3,029 Thereafter 505 Total $ 34,527

Accrued Expenses

Accrued Expenses	12 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses	(11) Accrued Expenses The components of accrued expenses are as follows: June 30, 2022 2023 Accrued payroll and personnel costs $ 84,897 $ 85,019 Operating lease liabilities 8,399 7,800 Deferred revenue 13,548 24,539 Other 17,540 25,929 Total accrued expenses $ 124,384 $ 143,287

Debt

Debt	12 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Debt	(12) 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"). In the fourth quarter of fiscal 2020, the Company borrowed $100,000 under the credit facility, which it repaid in the third quarter of fiscal 2021. In January 2022, the Company borrowed $50,000 under the credit facility in connection with its acquisition of Cloudsnap, which it repaid during the third quarter of fiscal 2022. The Company had no borrowings at June 30, 2022 or June 30, 2023 and did not borrow any amounts during fiscal 2023 . The Company incurred interest expense related to any borrowings at average interest rates of 1.04% and 1.01% during the years ended June 30, 2021 and June 30, 2022, respectively . 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 0.00% 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.

Leases

Leases	12 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	(13) Leases The Company primarily leases office space under non-cancellable operating leases expiring on various dates from March 2024 through October 2032. The leases provide for increasing annual base rents and oblige the Company to fund its proportionate share of operating expenses and, in certain cases, real estate taxes. The Company also leases various types of office and production related equipment under non-cancellable operating leases expiring on various dates from February 2024 through December 2027. The components of operating lease expense were as follows: Year Ended June 30, 2021 2022 2023 Operating lease cost $ 9,139 $ 7,509 $ 8,868 Short-term lease cost $ 75 345 301 Variable lease cost $ 4,796 4,579 5,358 Total lease costs $ 14,010 $ 12,433 $ 14,527 The classification of the Company’s operating lease right-of-use assets, operating lease liabilities and other supplemental information related to the Company’s operating leases are as follows: June 30, 2022 2023 Operating lease right-of-use assets $ 49,210 $ 44,067 Accrued expenses $ 8,399 $ 7,800 Long-term operating lease liabilities $ 69,119 $ 62,471 Weighted-average remaining lease term (years) 8.9 8.0 Weighted-average discount rate 3.46 % 3.52 % The following table summarizes supplemental cash flow information related to the Company’s operating leases: Year Ended June 30, 2021 2022 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 11,093 $ 9,955 $ 10,958 Operating lease assets obtained in exchange for new liabilities $ 1,682 $ 10,084 $ 1,264 The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows as of June 30, 2023: Fiscal 2024 $ 10,050 Fiscal 2025 10,321 Fiscal 2026 9,909 Fiscal 2027 9,470 Fiscal 2028 9,490 Thereafter 32,053 Total undiscounted cash flows 81,293 Less: Present value discount (11,022) Total operating lease liabilities $ 70,271 As of June 30, 2023, the Company had not entered into any leases that had not yet commenced.

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	(14) Income Taxes (a) Income Taxes Income tax expense (benefit) for the years ended June 30, 2021, 2022 and 2023 consists of the following: Year Ended June 30, 2021 2022 2023 Current taxes Federal $ — $ — $ 1,702 State and local (75) (16) 2,625 Deferred taxes: Federal (10,476) (4,214) 17,973 State and local (3,164) (2,950) (4,508) Total income tax expense (benefit) $ (13,715) $ (7,180) $ 17,792 (b) Tax Rate Reconciliation Income tax expense (benefit) differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended June 30, 2021, 2022 and 2023 to pretax income as a result of the following: Year Ended June 30, 2021 2022 2023 Income tax expense (benefit) at statutory federal rate 21.0 % 21.0 % 21.0 % Increase (reduction) in income taxes resulting from: Research and development credit and other credits (7.1) (5.3) (3.1) Non-deductible expenses 1.4 1.5 1.0 Change in valuation allowance 2.8 0.4 (2.8) Stock-based compensation expense (35.0) (21.9) (6.1) State and local income taxes, net of federal income tax benefit (6.7) (4.0) 1.3 Other (0.4) (0.3) (0.1) (24.0) % (8.6) % 11.2 % The effective tax rate for the years ended June 30, 2021, 2022 and 2023 was (24.0)%, (8.6)% and 11.2%, respectively, on pre-tax income of $57,104, $83,597 and $158,614, respectively. The increase in the effective tax rate is primarily due to decreased deductions related to stock-based compensation. (c) Components of Deferred Tax Assets and Liabilities The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2022 and 2023 are presented below. June 30, 2022 2023 Deferred tax assets: Operating lease liabilities $ 19,979 $ 18,238 Accrued expenses 16,143 19,610 Stock-based compensation 22,857 27,402 Net operating loss carryforwards 45,574 13,010 Federal and state tax credits 30,498 35,016 Research and development costs — 12,523 Other 1,064 1,204 Total deferred tax assets 136,115 127,003 Valuation allowance (5,850) (1,350) Net deferred tax assets 130,265 125,653 Deferred tax liabilities: Deferred contract costs (75,028) (96,598) Operating lease right-of-use assets (12,708) (11,456) Research and development costs (13,661) — Intangible assets (3,725) (2,626) Depreciation (8,300) (10,947) Total deferred tax liabilities (113,422) (121,627) Net deferred tax asset (liability) $ 16,843 $ 4,026 As of June 30, 2023, the Company maintains a valuation allowance of $1,350 for certain state tax benefits which may not be realized. Such assessment may change in the future as further evidence becomes available. At June 30, 2023, the Company has gross net operating loss carryforwards for federal income tax purposes of approximately $49,087, all of which can be carried forward indefinitely. The Company has gross net operating loss carryforwards for state income tax purposes of approximately $45,349, of which $35,850 expire from 2023 to 2042, while the remaining $9,499 can be carried forward indefinitely. The Company also has gross federal and state research and development tax credits and other state credit carryforwards of approximately $41,085, which expire between 2023 and 2042. As of June 30, 2022 and 2023, the Company’s liabilities for unrecognized tax benefits, which would impact the Company’s effective tax rate if recognized, are presented below. The Company will include applicable penalties and interest when the benefit is recognized: Year Ended June 30, 2022 2023 Unrecognized tax benefits at beginning of the year $ 534 $ 1,015 Additions for current year tax positions 380 570 Additions for tax positions of prior periods 101 — Subtractions for tax positions of prior periods — (33) Unrecognized tax benefit at end of year $ 1,015 $ 1,552 three

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Stockholders' Equity	(15) Stockholders’ Equity Common Stock Holders of common stock are entitled to one vote per share and to receive dividends, when declared. The holders have no preemptive or other subscription rights, and there are no redemption or sinking fund provisions with respect to such shares.

Benefit Plans

Benefit Plans	12 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Benefit Plans	(16) Benefit Plans (a) Equity Incentive Plans The Company previously maintained a 2008 Equity Incentive Plan (the “2008 Plan”) and currently maintains 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 (“the Committee”). No new awards have been or will be issued under the 2008 Plan since the effective date of the 2014 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 June 30, 2023, the Company had 13,699 shares allocated to the plans, of which 1,701 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 the changes in the number of shares available for grant under the Company’s equity incentive plans during the year ended June 30, 2023: Number of Available for grant at July 1 ,2022 12,393 RSUs granted (795) MSUs granted (82) Shares withheld in settlement of taxes and/or exercise price 382 Forfeitures 168 Shares removed (68) Available for grant at June 30, 2023 11,998 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, and there were no awards outstanding under the 2008 Plan as of June 30, 2023. Stock-based compensation expense related to stock options, restricted stock units (“RSUs”), market share units (“MSUs”) and the Employee Stock Purchase Plan (as described below) was included in the following line items in the accompanying Consolidated Statements of Operations and Comprehensive Income: Year Ended June 30, 2021 2022 2023 Cost of revenues $ 7,687 $ 11,622 $ 17,101 Sales and marketing 15,658 21,854 36,930 Research and development 10,192 18,696 36,475 General and administrative 29,515 44,030 56,794 Total stock-based compensation expense $ 63,052 $ 96,202 $ 147,300 In addition, the Company capitalized $2,610, $7,119 and $11,901 of stock-based compensation expense in its capitalized internal-use software costs in the years ended June 30, 2021, 2022 and 2023, respectively. In August 2020, the Committee approved the modification of the performance targets for vesting of the performance-based restricted stock units granted in fiscal 2020. The Company recorded $6,423 and $6,765 in stock-based compensation expense during the years ended June 30, 2021 and 2022, respectively, related to these modified performance-based restricted stock units. In March 2022, Michael Haske announced his intent to resign from his position effective September 1, 2022. In connection with his resignation, the Company’s board of directors approved a Transition and Separation Agreement and a Consulting Services Agreement. Pursuant to these agreements, the Committee approved the modifications of certain of Mr. Haske's outstanding RSUs and MSUs to allow the awards to continue to vest after the end of his service period. As a result, the Company recorded the cumulative effect of the modifications and accelerated the recognition of the remaining expense associated with certain of Mr. Haske's unmodified outstanding awards over his remaining substantive service period. The modifications of these awards did not have a material impact on the Company’s financial statements during the years ended June 30, 2022 or 2023. The following table represents stock option activity during the year ended June 30, 2023: Number of Weighted Weighted Aggregate Balance at July 1, 2022 548 $ 18.34 1.6 $ 85,515 Options exercised (260) $ 12.53 Balance at June 30, 2023 288 $ 23.63 1.2 $ 46,129 Options vested and exercisable at June 30, 2023 288 $ 23.63 1.2 $ 46,129 There were no stock options granted during the years ended June 30, 2021, 2022 or 2023. The total intrinsic value of options exercised during the years ended June 30, 2021, 2022 and 2023 was $84,072, $51,457 and $52,985, respectively. The Company grants RSUs under the 2014 Plan with terms determined at the discretion of the Committee. 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 year ended June 30, 2023: Units Weighted RSU balance at July 1, 2022 1,327 $ 168.44 RSUs granted 795 $ 254.59 RSUs vested (724) $ 163.79 RSUs forfeited (156) $ 162.57 RSU balance at June 30, 2023 1,242 $ 225.30 At June 30, 2023, there was $116,517 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 1.8 years. The Company also grants MSUs under the 2014 Plan with terms determined at the discretion of the Committee. The actual number of MSUs that will be eligible to vest is based on the achievement of a relative total shareholder return (“TSR”) target as compared to the TSR realized by each of the companies comprising the Russell 3000 Index over an approximately three -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 year ended June 30, 2023: Units Weighted MSU balance at July 1, 2022 101 $ 263.83 MSUs granted 82 $ 387.67 MSUs forfeited (12) $ 278.08 MSU balance at June 30, 2023 171 $ 320.38 The Company estimated the grant date fair value of the MSUs using a Monte Carlo simulation model that included the following assumptions: Year Ended June 30, 2021 2022 2023 Valuation assumptions: Expected dividend yield 0 % 0 % 0 % Expected volatility 52.0 % 47.4 - 47.5% 51.0 - 52.7% Expected term (years) 3.04 2.92 - 3.04 2.75 - 3.04 Risk‑free interest rate 0.18 % 0.43 - 0.47% 3.11 - 4.01% At June 30, 2023, there was $25,009 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested MSUs. That cost is expected to be recognized over a period of 2.0 years. (b) Employee Stock Purchase Plan Under the Company’s Employee Stock Purchase Plan (“ESPP”), the Company can grant stock purchase rights to all eligible employees during specific offering periods not to exceed twenty-seven months. Each offering period will begin on the trading day closest to May 16 and November 16 of each year. Shares are purchased through employees’ payroll deductions, up to a maximum of 10% of employees’ compensation for each purchase period, at a purchase price equal to 85% of the lesser of the fair market value of the Company’s common stock at the first trading day of the applicable offering period or the purchase date. Participants may purchase up to $25 worth of common stock or 2 shares of common stock in any one year. The ESPP is considered compensatory and results in compensation expense. As of June 30, 2023, a total of 1,773 shares of common stock were reserved for future issuances under the ESPP. The number of shares of common stock reserved for issuance under the ESPP may increase each calendar year, continuing through and including January 1, 2024. The number of shares added each year may be equal to the lesser of (a) 400, (b) seventy-five one hundredths percent (0.75%) of the number of shares of common stock of the Company issued and outstanding on the immediately preceding December 31, or (c) an amount determined by the Company’s board of directors. The Company’s board of directors approved the increase in the number of common shares in reserve for issuance under the ESPP by 400 shares, effective January 1, 2023. The Company issued a total of 120 shares upon the completion of its six-month offering periods ending November 15, 2022 and May 15, 2023. The Company recorded compensation expense attributable to the ESPP of $4,570, $4,676 and $6,393 for the years ended June 30, 2021, 2022 and 2023, respectively, which is included in the summary of stock-based compensation expense above. The grant date fair value of the ESPP offering periods was estimated using the following assumptions: Year Ended June 30, 2021 2022 2023 Valuation assumptions: Expected dividend yield 0 % 0 % 0 % Expected volatility 42.2 - 72.2% 31.0 - 57.5% 41.1 - 57.5% Expected term (years) 0.5 0.5 0.5 Risk‑free interest rate 0.04 - 0.15% 0.04 - 1.54% 1.54 - 5.26% (c) 401(k) Plan The Company maintains a 401(k) plan with a matching provision that covers all eligible employees. The Company matches 50% of employees’ contributions up to 8% of their gross pay. Contributions were $2,658, $12,305 and $15,083 for the years ended June 30, 2021, 2022 and 2023, respectively. In response to the uncertainties presented by the COVID-19 pandemic, the Company temporarily suspended 401(k) plan matching contributions during the first three quarters of fiscal 2021. The Company reinstated contributions during the fourth quarter of fiscal 2021.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(17) Commitments and Contingencies (a) Employment Agreements The Company has employment agreements with certain of its key officers. The agreements allow for annual compensation increases, participation in equity incentive plans and bonuses for annual performance as well as certain change of control events as defined in the agreements. (b) 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.

Net Income Per Share

Net Income Per Share	12 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Income Per Share	(18) Net Income Per Share Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares outstanding during the period and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options, the release of restricted stock units and market share units and the shares purchasable via the employee stock purchase plan as of the balance sheet date. The following table presents the calculation of basic and diluted net income per share: Year Ended June 30, 2021 2022 2023 Numerator: Net income $ 70,819 $ 90,777 $ 140,822 Denominator: Weighted-average shares used in computing net income per share: Basic 54,318 55,036 55,706 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and market share units 1,987 1,409 890 Diluted 56,305 56,445 56,596 Net income per share: Basic $ 1.30 $ 1.65 $ 2.53 Diluted $ 1.26 $ 1.61 $ 2.49 The following table summarizes the outstanding restricted stock units and market share units as of the balance sheet date that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: Year Ended June 30, 2021 2022 2023 Market share units 38 24 48 Restricted stock units 6 70 39 Total 44 94 87

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation, Consolidation, and Use of Estimates	(a) Basis of Presentation, Consolidation, and Use of Estimates The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Concentrations of Risk	(b) Concentrations of Risk
Cash and Cash Equivalents	(c) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Funds Held For Clients, Corporate Investments and Client Fund Obligations	(d) Funds Held For Clients, Corporate Investments and Client Fund Obligations The Company obtains funds from clients in advance of performing payroll and payroll tax filing services on behalf of those clients. Funds held for clients represent assets that are used solely for the purposes of satisfying the obligations to remit funds relating to payroll and payroll tax filing services. The Company has classified Funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client fund obligations. Funds held for clients is primarily comprised of cash and cash equivalents invested in demand deposit accounts. The Company also invests a portion of its funds held for clients and corporate funds in marketable securities. Marketable securities classified as available-for-sale are recorded at fair value on the Consolidated Balance Sheets. Unrealized gains and losses, net of applicable income taxes, are reported as Other comprehensive income (loss) in the Consolidated Statements of Operations and Comprehensive Income. Interest on marketable securities included in Funds held for clients is reported as Interest income on funds held for clients and interest on Corporate investments is reported as Other income (expense) on the Consolidated Statements of Operations and Comprehensive Income, respectively. The Company evaluates whether a decline in an individual security’s fair value as compared to its amortized cost basis resulted from credit loss or other factors. If the Company determines that an individual security’s unrealized loss results from credit impairment, it compares the present value of cash flows expected to be collected from the impaired security with its amortized cost basis. If the security’s amortized cost basis exceeds the present value of expected cash flows, the Company records credit impairment loss through an allowance for credit loss. The Company did not recognize any credit impairment losses during the years ended June 30, 2021, 2022 or 2023. Client fund obligations represent the Company’s contractual obligations to remit funds to satisfy clients’ payroll and tax payment obligations and are recorded in the accompanying balance sheets at the time that the Company obtains funds from clients. The client fund obligations represent liabilities that will be repaid within one year of the balance sheet date.
Accounts Receivable, Net	(e) Accounts Receivable, Net Accounts receivable is comprised of trade receivables, accrued interest receivable on funds held for clients and other receivables. Trade receivables are recorded at the invoiced amount and do not bear interest. Amounts collected on accounts receivable are included in Net cash provided by operating activities in the Consolidated Statements of Cash Flows. The Company maintains an allowance for credit losses reflecting expected credit losses in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the Company’s clients’ financial conditions, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Company reviews its allowance for credit losses quarterly. Past due balances over 60 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all commercially reasonable means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients.
Deferred Contract Costs	(f) 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. Management evaluates deferred contract costs for impairment if changes in circumstances occur that could impact the recoverability of the costs to obtain or fulfill contracts with the Company’s customers.
Capitalized Internal-Use Software	(g) Capitalized Internal-Use Software The Company capitalizes internal-use software costs when module development begins, it is probable that the project will be completed, and the software will be used as intended. Costs associated with preliminary project stage activities, training, maintenance and all other post implementation stage activities are expensed as incurred. The Company also capitalizes certain costs related to specific upgrades and enhancements when it is probable the expenditures will result in significant additional functionality. The capitalization policy provides for the capitalization of certain payroll costs for employees who are directly associated with developing internal-use software as well as certain external direct costs, such as consulting fees. Capitalized employee costs are limited to the time directly spent on such projects. Capitalized internal-use software costs are amortized on a straight-line basis over their estimated useful lives, which are generally two
Property and Equipment and Long-Lived Assets	(h) Property and Equipment and Long-Lived Assets Property and equipment are stated at cost. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets, generally three Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.
Business Combinations	(i) Business Combination
Intangible Assets, Net of Accumulated Amortization	(j) Intangible Assets, Net of Accumulated Amortization Intangible assets are comprised primarily of acquired client relationships, proprietary technology, trade names and non-solicitation agreements and are reported net of accumulated amortization on the Consolidated Balance Sheets. The Company uses the straight-line method of amortization to amortize client relationships over a five five
Goodwill	(k) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is not amortized, but instead is tested for impairment at the reporting unit level. If the fair value of the reporting unit is less than its carrying amount, the Company would record an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss recognized should not exceed the amount of goodwill allocated to the reporting unit.
Leases	(l) Leases The Company determines if an arrangement is a lease at agreement inception. Operating leases are included in Operating lease right-of-use assets, Accrued expenses, and Long-term operating lease liabilities in the Consolidated Balance Sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating lease right-of-use assets also include any lease payments made at or before the commencement date and are reduced by any lease incentives received. The Company’s lease terms may include options to renew or extend a lease. The Company recognizes amounts in Operating lease right-of- use assets and Operating lease liabilities when it is reasonably certain it will exercise such options. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the expected lease term. The Company’s most significant leases are real estate leases of office space. The remaining operating leases are primarily comprised of leases of printers and other equipment. For all leases, the Company has elected the practical expedient permitted under Topic 842 to combine lease and non-lease components. As a result, non-lease components, such as common area or equipment maintenance charges, are accounted for as a single lease element. The Company does not have any material finance leases. Fixed lease expense payments are recognized on a straight-line basis over the lease term. Variable lease payments vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time, and are often due to changes in an external market rate or the value of an index (e.g., Consumer Price Index). Certain of the Company’s operating lease agreements include variable payments that are passed through by the lessor, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Variable payments are expensed as incurred and included within variable rent expense. The Company’s lease agreements do not contain material residual value guarantees, restrictions, or covenants.
Income Taxes	(m) Income Taxes Income taxes are accounted for under the asset and liability 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. Deferred tax assets may be reduced by a valuation allowance to the extent we determine it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company is required to consider all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income among other items, in determining whether a full or partial release of its valuation allowance is required. The Company is also required to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. The Company’s accounting for deferred tax consequences represents the best estimate of those future events. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. When applicable, the Company records interest and penalties as an element of income tax expense. Refer to Note 14 for additional information on income taxes.
Revenue Recognition	(n) Revenue Recognition The Company applies Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“Topic 606”). Topic 606 requires revenue to be recognized when an entity transfers control of goods or services to a customer in an amount that reflects the consideration to which a company also expects to be entitled to for those goods or services. To achieve this core principle, the Company recognizes revenue from contracts with customers based on the following five steps: 1) Identify the contract with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to performance obligations in the contract; and 5) Recognize revenue when or as the Company satisfies a performance obligation. 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 offers term agreements to its clients, which are generally two years in length. Recurring fees are derived from cloud-based payroll and HCM software solutions as follows: • Payroll processing and related services, including payroll reporting and tax filing services, are delivered on a weekly, biweekly, semi-monthly, or monthly basis depending upon the payroll frequency of the client and on an annual basis if a client selects W-2 preparation and processing services, • Time and attendance reporting services, including time clock rentals, are delivered on a monthly basis, and • HR-related software solutions, including employee management and benefits enrollment and administration, are delivered on a monthly basis. 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 HCM 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. The Company has certain optional performance obligations that are satisfied at a point in time including the sales of time clocks and W-2 services. Non-recurring service fees consist mainly of nonrefundable implementation fees, which involve setting the client up in, and loading data into, the Company’s cloud-based modules. These implementation activities are considered set-up activities. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract. Implementation fees are deferred and amortized generally over a period up to 24 months. Sales taxes collected from clients and remitted to governmental authorities where applicable are accounted for on a net basis and therefore are excluded from revenues in the Statements of Operations and Comprehensive Income. Interest income earned on funds held for clients is recognized in Interest income on funds held for clients when earned as the collection, holding and remittance of these funds are components of providing services to clients.
Cost of Revenues	(o) Cost of Revenues
Advertising	(p) Advertising
Stock-Based Compensation	(q) Stock-Based Compensation The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards, comprised of restricted stock units and market share units, are measured at the grant date fair value of each award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of each award. For market share units, the Company estimates grant date fair value
Commitments and Contingencies	(r) Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.
Segment Information	(s) Segment Information
Recently Issued Accounting Standards	(t) Recently Issued Accounting Standards

Revenue (Tables)

Revenue (Tables)	12 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	The following table disaggregates revenue by Recurring fees and Implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Year Ended June 30, 2021 2022 2023 Recurring fees $ 609,658 $ 818,137 $ 1,056,808 Implementation services and other 22,067 29,557 41,228 Total revenues from contracts $ 631,725 $ 847,694 $ 1,098,036
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: Year Ended June 30, 2022 2023 Balance at beginning of the year $ 8,734 $ 12,233 Deferral of revenue 25,109 40,991 Revenue recognized (21,610) (30,607) Balance at end of the year $ 12,233 $ 22,617
Schedule of deferred contract costs and the related amortization expense	The following tables present the deferred contract costs balances and the related amortization expense for these deferred contract costs: Year Ended June 30, 2022 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 145,718 $ 72,572 $ (35,747) $ 182,543 Costs to fulfill a contract 69,175 53,004 (16,154) 106,025 Total $ 214,893 $ 125,576 $ (51,901) $ 288,568 Year Ended June 30, 2023 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 182,543 $ 80,999 $ (44,577) $ 218,965 Costs to fulfill a contract 106,025 72,762 (25,421) 153,366 Total $ 288,568 $ 153,761 $ (69,998) $ 372,331

Corporate Investments and Fun_2

Corporate Investments and Funds Held For Clients (Tables)	12 Months Ended
	Jun. 30, 2023
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 Gross Gross 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 June 30, 2023 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 288,767 $ — $ — $ 288,767 Funds held for clients' cash and cash equivalents 2,132,545 — — 2,132,545 Available-for-sale securities: Commercial paper 110,003 12 (138) 109,877 Corporate bonds 112,262 18 (1,867) 110,413 Asset-backed securities 30,061 10 (337) 29,734 Certificates of deposit 68,247 5 (93) 68,159 U.S treasury securities 158,839 — (2,839) 156,000 U.S government agency securities 8,000 — (513) 7,487 Other 7,329 — (129) 7,200 Total available-for-sale securities 494,741 45 (5,916) 488,870 Total investments $ 2,916,053 $ 45 $ (5,916) $ 2,910,182
Schedule of the classification of investments	Classification of investments on the consolidated balance sheets was as follows: June 30, 2022 2023 Cash and cash equivalents $ 139,756 $ 288,767 Funds held for clients 3,987,776 2,621,415 Total investments $ 4,127,532 $ 2,910,182
Schedule of available-for-sale securities that have been in an unrealized loss position for less and greater than 12 months	Available-for-sale securities that have been in an unrealized loss position for a period of less and greater than 12 months as of June 30, 2022 and June 30, 2023 had fair market value as follows: June 30, 2022 Securities in an unrealized loss Securities in an unrealized loss Total Gross Fair 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 June 30, 2023 Securities in an unrealized loss Securities in an unrealized loss Total Gross Fair Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (138) $ 96,665 $ — $ — $ (138) $ 96,665 Corporate bonds (695) 71,089 (1,172) 32,807 (1,867) 103,896 Asset-backed securities (233) 23,313 (104) 2,038 (337) 25,351 Certificates of deposit (93) 52,254 — — (93) 52,254 U.S. treasury securities (1,075) 95,388 (1,764) 60,612 (2,839) 156,000 U.S. government agency securities — — (513) 7,487 (513) 7,487 Other (71) 5,326 (58) 1,874 (129) 7,200 Total available-for-sale securities $ (2,305) $ 344,035 $ (3,611) $ 104,818 $ (5,916) $ 448,853
Schedule of expected maturities of available-for-sale securities	Expected maturities of available-for-sale securities at June 30, 2023 were as follows: Amortized Fair One year or less $ 257,957 $ 256,166 One year to two years 147,340 144,468 Two years to three years 87,451 86,445 Three years to five years 1,993 1,791 Total available-for-sale securities $ 494,741 $ 488,870

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	12 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of fair value level for cash and cash equivalents and available-for-sale securities measured on a recurring basis	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 $ — June 30, 2023 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 288,767 $ 288,767 $ — $ — Funds held for clients' cash and cash equivalents 2,132,545 2,132,545 — — Available-for-sale securities: Commercial paper 109,877 — 109,877 — Corporate bonds 110,413 — 110,413 — Asset-backed securities 29,734 — 29,734 — Certificates of deposit 68,159 — 68,159 — U.S. treasury securities 156,000 — 156,000 — U.S. government agency securities 7,487 — 7,487 — Other 7,200 — 7,200 — Total available-for-sale securities 488,870 — 488,870 — Total investments $ 2,910,182 $ 2,421,312 $ 488,870 $ —

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	12 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Schedule of components of accounts receivable, net	The components of accounts receivable were as follows: Year Ended June 30, 2022 2023 Trade receivables $ 14,797 $ 15,471 Accrued interest on funds held for clients 296 6,886 Other 1,502 4,348 Gross accounts receivable 16,595 26,705 Allowance for credit losses (841) (1,620) Accounts receivable, net $ 15,754 $ 25,085
Schedule of activity in the allowance for credit loss related to accounts receivable	Activity in the allowance for credit losses related to accounts receivable was as follows: Year Ended June 30, 2021 2022 2023 Balance at the beginning of the year $ 617 $ 800 $ 841 Charged to expense 316 311 1,245 Write-offs (133) (270) (466) Balance at the end of the year $ 800 $ 841 $ 1,620

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Jun. 30, 2023
Business Combinations [Abstract]
Summaries of the allocations of purchase prices	The allocation of the purchase price for Blue Marble was as follows: August 31, 2021 Proprietary technology $ 21,200 Client relationships 3,000 Trade names 1,200 Goodwill 34,776 Other assets acquired 2,659 Liabilities assumed (1,874) Total purchase price $ 60,961 The allocation of the purchase price for Cloudsnap was 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

Capitalized Internal-Use Soft_2

Capitalized Internal-Use Software (Tables)	12 Months Ended
	Jun. 30, 2023
Research and Development [Abstract]
Schedule of capitalized internal-use software and accumulated amortization	Capitalized internal-use software and accumulated amortization were as follows: June 30, 2022 2023 Capitalized internal-use software $ 193,156 $ 248,738 Accumulated amortization (131,171) (162,611) Capitalized internal-use software, net $ 61,985 $ 86,127

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment, net	The major classes of property and equipment were as follows: June 30, 2022 2023 Office equipment $ 4,365 $ 2,508 Computer equipment 55,495 58,670 Furniture and fixtures 12,791 12,958 Software 8,785 11,127 Leasehold improvements 47,521 48,159 Time clocks rented by clients 6,711 8,533 Total 135,668 141,955 Accumulated depreciation (72,829) (77,886) Property and equipment, net $ 62,839 $ 64,069

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The following table summarizes changes in goodwill during the years presented below: Year Ended June 30, 2022 2023 Balance at beginning of year $ 33,650 $ 101,949 Additions attributable to acquisitions 68,299 — Measurement period adjustments — 105 Balance at end of year $ 101,949 $ 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, Weighted 2022 2023 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) (34,042) Intangible assets, net $ 45,475 $ 34,527
Schedule of future amortization expense for acquired intangible assets	Future amortization expense for acquired intangible assets was as follows, as of June 30, 2023: Fiscal 2024 $ 9,943 Fiscal 2025 8,888 Fiscal 2026 7,269 Fiscal 2027 4,893 Fiscal 2028 3,029 Thereafter 505 Total $ 34,527

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Schedule of components of accrued expenses	The components of accrued expenses are as follows: June 30, 2022 2023 Accrued payroll and personnel costs $ 84,897 $ 85,019 Operating lease liabilities 8,399 7,800 Deferred revenue 13,548 24,539 Other 17,540 25,929 Total accrued expenses $ 124,384 $ 143,287

Leases (Tables)

Leases (Tables)	12 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of components of operating lease expense	The components of operating lease expense were as follows: Year Ended June 30, 2021 2022 2023 Operating lease cost $ 9,139 $ 7,509 $ 8,868 Short-term lease cost $ 75 345 301 Variable lease cost $ 4,796 4,579 5,358 Total lease costs $ 14,010 $ 12,433 $ 14,527
Schedule of the classification of operating lease right-of-use assets, operating lease liabilities and other supplemental information related to operating leases	The classification of the Company’s operating lease right-of-use assets, operating lease liabilities and other supplemental information related to the Company’s operating leases are as follows: June 30, 2022 2023 Operating lease right-of-use assets $ 49,210 $ 44,067 Accrued expenses $ 8,399 $ 7,800 Long-term operating lease liabilities $ 69,119 $ 62,471 Weighted-average remaining lease term (years) 8.9 8.0 Weighted-average discount rate 3.46 % 3.52 %
Schedule of supplemental cash flow information related to operating leases	The following table summarizes supplemental cash flow information related to the Company’s operating leases: Year Ended June 30, 2021 2022 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 11,093 $ 9,955 $ 10,958 Operating lease assets obtained in exchange for new liabilities $ 1,682 $ 10,084 $ 1,264
Schedule of undiscounted cash flows for future maturities of operating lease liabilities and the reconciliation to the balance of operating lease liabilities	The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows as of June 30, 2023: Fiscal 2024 $ 10,050 Fiscal 2025 10,321 Fiscal 2026 9,909 Fiscal 2027 9,470 Fiscal 2028 9,490 Thereafter 32,053 Total undiscounted cash flows 81,293 Less: Present value discount (11,022) Total operating lease liabilities $ 70,271

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	Income tax expense (benefit) for the years ended June 30, 2021, 2022 and 2023 consists of the following: Year Ended June 30, 2021 2022 2023 Current taxes Federal $ — $ — $ 1,702 State and local (75) (16) 2,625 Deferred taxes: Federal (10,476) (4,214) 17,973 State and local (3,164) (2,950) (4,508) Total income tax expense (benefit) $ (13,715) $ (7,180) $ 17,792
Schedule of tax rate reconciliation by applying the U.S. federal income tax rate to pretax income	Income tax expense (benefit) differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended June 30, 2021, 2022 and 2023 to pretax income as a result of the following: Year Ended June 30, 2021 2022 2023 Income tax expense (benefit) at statutory federal rate 21.0 % 21.0 % 21.0 % Increase (reduction) in income taxes resulting from: Research and development credit and other credits (7.1) (5.3) (3.1) Non-deductible expenses 1.4 1.5 1.0 Change in valuation allowance 2.8 0.4 (2.8) Stock-based compensation expense (35.0) (21.9) (6.1) State and local income taxes, net of federal income tax benefit (6.7) (4.0) 1.3 Other (0.4) (0.3) (0.1) (24.0) % (8.6) % 11.2 %
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2022 and 2023 are presented below. June 30, 2022 2023 Deferred tax assets: Operating lease liabilities $ 19,979 $ 18,238 Accrued expenses 16,143 19,610 Stock-based compensation 22,857 27,402 Net operating loss carryforwards 45,574 13,010 Federal and state tax credits 30,498 35,016 Research and development costs — 12,523 Other 1,064 1,204 Total deferred tax assets 136,115 127,003 Valuation allowance (5,850) (1,350) Net deferred tax assets 130,265 125,653 Deferred tax liabilities: Deferred contract costs (75,028) (96,598) Operating lease right-of-use assets (12,708) (11,456) Research and development costs (13,661) — Intangible assets (3,725) (2,626) Depreciation (8,300) (10,947) Total deferred tax liabilities (113,422) (121,627) Net deferred tax asset (liability) $ 16,843 $ 4,026
Schedule of unrecognized tax benefits	The Company will include applicable penalties and interest when the benefit is recognized: Year Ended June 30, 2022 2023 Unrecognized tax benefits at beginning of the year $ 534 $ 1,015 Additions for current year tax positions 380 570 Additions for tax positions of prior periods 101 — Subtractions for tax positions of prior periods — (33) Unrecognized tax benefit at end of year $ 1,015 $ 1,552

Benefit Plans (Tables)

Benefit Plans (Tables)	12 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Schedule of changes in the number of shares available for grant under equity incentive plans	The following table summarizes the changes in the number of shares available for grant under the Company’s equity incentive plans during the year ended June 30, 2023: Number of Available for grant at July 1 ,2022 12,393 RSUs granted (795) MSUs granted (82) Shares withheld in settlement of taxes and/or exercise price 382 Forfeitures 168 Shares removed (68) Available for grant at June 30, 2023 11,998
Schedule of stock-based compensation expense related to stock options, restricted stock units, market share units and the Employee Stock Purchase Plan	Stock-based compensation expense related to stock options, restricted stock units (“RSUs”), market share units (“MSUs”) and the Employee Stock Purchase Plan (as described below) was included in the following line items in the accompanying Consolidated Statements of Operations and Comprehensive Income: Year Ended June 30, 2021 2022 2023 Cost of revenues $ 7,687 $ 11,622 $ 17,101 Sales and marketing 15,658 21,854 36,930 Research and development 10,192 18,696 36,475 General and administrative 29,515 44,030 56,794 Total stock-based compensation expense $ 63,052 $ 96,202 $ 147,300
Schedule of stock option activity	The following table represents stock option activity during the year ended June 30, 2023: Number of Weighted Weighted Aggregate Balance at July 1, 2022 548 $ 18.34 1.6 $ 85,515 Options exercised (260) $ 12.53 Balance at June 30, 2023 288 $ 23.63 1.2 $ 46,129 Options vested and exercisable at June 30, 2023 288 $ 23.63 1.2 $ 46,129
Schedule of restricted stock unit activity	The following table represents restricted stock unit activity during the year ended June 30, 2023: Units Weighted RSU balance at July 1, 2022 1,327 $ 168.44 RSUs granted 795 $ 254.59 RSUs vested (724) $ 163.79 RSUs forfeited (156) $ 162.57 RSU balance at June 30, 2023 1,242 $ 225.30
Schedule of market share unit activity	The following table represents market share unit activity during the year ended June 30, 2023: Units Weighted MSU balance at July 1, 2022 101 $ 263.83 MSUs granted 82 $ 387.67 MSUs forfeited (12) $ 278.08 MSU balance at June 30, 2023 171 $ 320.38
Schedule 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: Year Ended June 30, 2021 2022 2023 Valuation assumptions: Expected dividend yield 0 % 0 % 0 % Expected volatility 52.0 % 47.4 - 47.5% 51.0 - 52.7% Expected term (years) 3.04 2.92 - 3.04 2.75 - 3.04 Risk‑free interest rate 0.18 % 0.43 - 0.47% 3.11 - 4.01%
Schedule of assumptions used for estimating the grant date fair value of the ESPP	The grant date fair value of the ESPP offering periods was estimated using the following assumptions: Year Ended June 30, 2021 2022 2023 Valuation assumptions: Expected dividend yield 0 % 0 % 0 % Expected volatility 42.2 - 72.2% 31.0 - 57.5% 41.1 - 57.5% Expected term (years) 0.5 0.5 0.5 Risk‑free interest rate 0.04 - 0.15% 0.04 - 1.54% 1.54 - 5.26%

Net Income Per Share (Tables)

Net Income Per Share (Tables)	12 Months Ended
	Jun. 30, 2023
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: Year Ended June 30, 2021 2022 2023 Numerator: Net income $ 70,819 $ 90,777 $ 140,822 Denominator: Weighted-average shares used in computing net income per share: Basic 54,318 55,036 55,706 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and market share units 1,987 1,409 890 Diluted 56,305 56,445 56,596 Net income per share: Basic $ 1.30 $ 1.65 $ 2.53 Diluted $ 1.26 $ 1.61 $ 2.49
Schedule of anti-dilutive securities	The following table summarizes the outstanding restricted stock units and market share units as of the balance sheet date that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: Year Ended June 30, 2021 2022 2023 Market share units 38 24 48 Restricted stock units 6 70 39 Total 44 94 87

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Current Presentation, Concentration of Risk, Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Funds Held For Clients, Corporate Investments and Client Fund Obligations
Credit impairment losses	$ 0	$ 0	$ 0
Period of repayment of client fund obligations	1 year
Accounts Receivable
Number of days past due before a balance will be reviewed for collectability		60 days

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Deferred Contract Costs (Details)	Jun. 30, 2023
Deferred contract costs
Amortization period of capitalized contract costs	7 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Capitalized Internal-Use Software (Details) - Internal-Use Software	Jun. 30, 2023
Minimum
Capitalized internal-use software
Estimated useful lives	2 years
Maximum
Capitalized internal-use software
Estimated useful lives	10 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - PP&E (Details)	Jun. 30, 2023
Minimum
Property and Equipment and Long-Lived Assets
Estimated useful lives of the assets	3 years
Maximum
Property and Equipment and Long-Lived Assets
Estimated useful lives of the assets	7 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Goodwill
Impairment loss	$ 0	$ 0	$ 0
Trade names
Intangible assets, net of accumulated amortization
Estimated useful lives	5 years
Minimum | Client relationships
Intangible assets, net of accumulated amortization
Estimated useful lives	5 years
Minimum | Proprietary technology
Intangible assets, net of accumulated amortization
Estimated useful lives	5 years
Maximum | Client relationships
Intangible assets, net of accumulated amortization
Estimated useful lives	9 years
Maximum | Proprietary technology
Intangible assets, net of accumulated amortization
Estimated useful lives	7 years

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Revenue (Details)	12 Months Ended
	Jun. 30, 2023
Revenue from contracts terms
Period of term arrangements	2 years
Cost of revenues
Amortization period of cost of revenues for proprietary products	7 years
Maximum
Revenue from contracts terms
Notice period to cancel agreement	60 days
Deferred and amortized period of implementation fees	24 months

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Advertising
Advertising costs	$ 15,700	$ 8,335	$ 3,189

Revenue - Disaggregation (Detai

Revenue - Disaggregation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of revenue
Total revenues from contracts	$ 1,098,036	$ 847,694	$ 631,725
Recurring fees
Disaggregation of revenue
Total revenues from contracts	1,056,808	818,137	609,658
Implementation services and other
Disaggregation of revenue
Total revenues from contracts	$ 41,228	$ 29,557	$ 22,067

Revenue - Deferred Revenue (Det

Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Changes in deferred revenue related to nonrefundable upfront fees
Balance at beginning of the year	$ 12,233	$ 8,734
Deferral of revenue	40,991	25,109
Revenue recognized	(30,607)	(21,610)
Balance at end of the year	$ 22,617	$ 12,233
Maximum
Revenue
Amortization period of nonrefundable upfront implementation fees	24 months
Implementation services and other
Changes in deferred revenue related to nonrefundable upfront fees
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2024	$ 19,108
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2025	3,417
Deferred revenue from nonrefundable upfront fees expected to be recognized thereafter	$ 92

Revenue - Deferred Contract Cos

Revenue - Deferred Contract Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Deferred contract costs
Beginning Balance	$ 288,568	$ 214,893
Capitalized Costs	153,761	125,576
Amortization	(69,998)	(51,901)
Ending Balance	372,331	288,568	$ 214,893
Impairment losses	0	0	0
Costs to obtain a new contract
Deferred contract costs
Beginning Balance	182,543	145,718
Capitalized Costs	80,999	72,572
Amortization	(44,577)	(35,747)
Ending Balance	218,965	182,543	145,718
Costs to fulfill a contract
Deferred contract costs
Beginning Balance	106,025	69,175
Capitalized Costs	72,762	53,004
Amortization	(25,421)	(16,154)
Ending Balance	$ 153,366	$ 106,025	$ 69,175

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Remaining Performance Obligations
Minimum value of unsatisfied performance obligations on term-based contracts	$ 62,938
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Remaining Performance Obligations
Remaining performance obligation period	24 months

Corporate Investments and Fun_3

Corporate Investments and Funds Held For Clients - Reconciliation (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Corporate Investments and Funds Held for Clients
Amortized cost of cash and cash equivalents	$ 288,767	$ 139,756
Fair value of cash and cash equivalents	288,767	139,756	$ 202,287
Amortized cost of funds held for clients' cash and cash equivalents	2,132,545	3,653,699
Gross unrealized losses of funds held for clients' cash and cash equivalents	0	(2)
Fair value of funds held for clients' cash and cash equivalents	2,132,545	3,653,697	$ 1,743,594
Available-for-sale securities
Amortized cost	494,741	337,203
Gross unrealized gains	45	14
Gross unrealized losses	(5,916)	(3,138)
Fair value	488,870	334,079
Total investments at amortized cost	2,916,053	4,130,658
Total investments gross unrealized gains	45	14
Total investments gross unrealized losses	(5,916)	(3,140)
Total investments	2,910,182	4,127,532
Commercial paper
Available-for-sale securities
Amortized cost	110,003	58,166
Gross unrealized gains	12	0
Gross unrealized losses	(138)	(126)
Fair value	109,877	58,040
Corporate bonds
Available-for-sale securities
Amortized cost	112,262	59,568
Gross unrealized gains	18	0
Gross unrealized losses	(1,867)	(1,715)
Fair value	110,413	57,853
Asset-backed securities
Available-for-sale securities
Amortized cost	30,061	9,843
Gross unrealized gains	10	2
Gross unrealized losses	(337)	(141)
Fair value	29,734	9,704
Certificates of deposit
Available-for-sale securities
Amortized cost	68,247	31,879
Gross unrealized gains	5	0
Gross unrealized losses	(93)	(43)
Fair value	68,159	31,836
U.S treasury securities
Available-for-sale securities
Amortized cost	158,839	167,566
Gross unrealized gains	0	12
Gross unrealized losses	(2,839)	(591)
Fair value	156,000	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	(513)	(451)
Fair value	7,487	7,549
Other
Available-for-sale securities
Amortized cost	7,329	2,181
Gross unrealized gains	0	0
Gross unrealized losses	(129)	(71)
Fair value	$ 7,200	$ 2,110

Corporate Investments and Fun_4

Corporate Investments and Funds Held For Clients - Classification (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Corporate Investments and Funds Held for Clients
Cash and cash equivalents	$ 288,767	$ 139,756	$ 202,287
Funds held for clients	2,621,415	3,987,776
Total investments	2,910,182	4,127,532
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(2,305)	(3,138)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	344,035	285,651
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(3,611)	0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	104,818	0
Total gross unrealized losses on available-for-sale securities	(5,916)	(3,138)
Total available-for-sale securities in unrealized loss positions	448,853	285,651
Credit impairment losses	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	(138)	(126)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	96,665	53,756
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	0	0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	0	0
Total gross unrealized losses on available-for-sale securities	(138)	(126)
Total available-for-sale securities in unrealized loss positions	96,665	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	(695)	(1,715)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	71,089	57,853
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(1,172)	0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	32,807	0
Total gross unrealized losses on available-for-sale securities	(1,867)	(1,715)
Total available-for-sale securities in unrealized loss positions	103,896	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	(233)	(141)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	23,313	7,354
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(104)	0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	2,038	0
Total gross unrealized losses on available-for-sale securities	(337)	(141)
Total available-for-sale securities in unrealized loss positions	25,351	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	(93)	(43)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	52,254	27,086
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	0	0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	0	0
Total gross unrealized losses on available-for-sale securities	(93)	(43)
Total available-for-sale securities in unrealized loss positions	52,254	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	(1,075)	(591)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	95,388	129,943
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(1,764)	0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	60,612	0
Total gross unrealized losses on available-for-sale securities	(2,839)	(591)
Total available-for-sale securities in unrealized loss positions	156,000	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	0	(451)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	0	7,549
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(513)	0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	7,487	0
Total gross unrealized losses on available-for-sale securities	(513)	(451)
Total available-for-sale securities in unrealized loss positions	7,487	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	(71)	(71)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	5,326	2,110
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(58)	0
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	1,874	0
Total gross unrealized losses on available-for-sale securities	(129)	(71)
Total available-for-sale securities in unrealized loss positions	7,200	2,110
Reclassification out of Accumulated Other Comprehensive Income
Corporate Investments and Funds Held for Clients
Realized gains or losses	$ 0	$ 0	$ 0

Corporate Investments and Fun_5

Corporate Investments and Funds Held For Clients - Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract]
One year or less	$ 257,957
One year to two years	147,340
Two years to three years	87,451
Three years to five years	1,993
Total available-for-sale securities	494,741	$ 337,203
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
One year or less	256,166
One year to two years	144,468
Two years to three years	86,445
Three years to five years	1,791
Total available-for-sale securities	$ 488,870	$ 334,079

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Fair value measurement
Cash and cash equivalents	$ 288,767	$ 139,756	$ 202,287
Funds held for clients' cash and cash equivalents	2,132,545	3,653,697	$ 1,743,594
Available-for-sale securities:
Total available-for-sale securities	488,870	334,079
Total investments	2,910,182	4,127,532
Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Level 1
Fair value measurement
Cash and cash equivalents	288,767	139,756
Funds held for clients' cash and cash equivalents	2,132,545	3,640,427
Available-for-sale securities:
Total investments	2,421,312	3,780,183
Level 2
Fair value measurement
Cash and cash equivalents	0	0
Funds held for clients' cash and cash equivalents	0	13,270
Available-for-sale securities:
Total available-for-sale securities	488,870	334,079
Total investments	488,870	347,349
Commercial paper
Available-for-sale securities:
Total available-for-sale securities	109,877	58,040
Commercial paper | Level 2
Available-for-sale securities:
Total available-for-sale securities	109,877	58,040
Corporate bonds
Available-for-sale securities:
Total available-for-sale securities	110,413	57,853
Corporate bonds | Level 2
Available-for-sale securities:
Total available-for-sale securities	110,413	57,853
Asset-backed securities
Available-for-sale securities:
Total available-for-sale securities	29,734	9,704
Asset-backed securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	29,734	9,704
Certificates of deposit
Available-for-sale securities:
Total available-for-sale securities	68,159	31,836
Certificates of deposit | Level 2
Available-for-sale securities:
Total available-for-sale securities	68,159	31,836
U.S treasury securities
Available-for-sale securities:
Total available-for-sale securities	156,000	166,987
U.S treasury securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	156,000	166,987
U.S government agency securities
Available-for-sale securities:
Total available-for-sale securities	7,487	7,549
U.S government agency securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	7,487	7,549
Other
Available-for-sale securities:
Total available-for-sale securities	7,200	2,110
Other | Level 2
Available-for-sale securities:
Total available-for-sale securities	$ 7,200	$ 2,110

Accounts Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Components of Accounts Receivable, Net
Trade receivables	$ 15,471	$ 14,797
Accrued interest on funds held for clients	6,886	296
Other	4,348	1,502
Gross accounts receivable	26,705	16,595
Allowance for credit loss	(1,620)	(841)
Accounts receivable, net	25,085	15,754
Activity in the allowance for credit losses
Balance at the beginning of the year	841	800	$ 617
Provision for credit losses	1,245	311	316
Write-offs	(466)	(270)	(133)
Balance at the end of the year	$ 1,620	$ 841	$ 800

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Jan. 18, 2022	Aug. 31, 2021	Nov. 13, 2020	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Business Combinations
Goodwill				$ 102,054	$ 101,949	$ 33,650
Finite-lived intangible assets, gross				68,569	68,569
Proprietary technology
Business Combinations
Finite-lived intangible assets, gross				43,129	43,129
Client relationships
Business Combinations
Finite-lived intangible assets, gross				22,200	22,200
Trade names
Business Combinations
Finite-lived intangible assets, gross				$ 1,640	$ 1,640
Samepage Labs Inc
Business Combinations
Cash consideration			$ 15,018
Goodwill			11,995
Samepage Labs Inc | Proprietary technology
Business Combinations
Finite-lived intangible assets, gross			$ 3,167
Blue Marble Payroll, LLC
Business Combinations
Cash consideration		$ 60,961
Goodwill		34,776
Other assets acquired		2,659
Liabilities assumed		(1,874)
Total purchase price		60,961
Blue Marble Payroll, LLC | Proprietary technology
Business Combinations
Intangible assets		21,200
Blue Marble Payroll, LLC | Client relationships
Business Combinations
Intangible assets		3,000
Blue Marble Payroll, LLC | Trade names
Business Combinations
Intangible assets		$ 1,200
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
Intangible assets	$ 15,800

Capitalized Internal-Use Soft_3

Capitalized Internal-Use Software (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	$ 248,738	$ 193,156
Accumulated amortization	(162,611)	(131,171)
Capitalized internal-use software, net	86,127	61,985
Cost of revenue
Capitalized internal-use software and accumulated amortization
Amortization of capitalized internal-use software	$ 31,440	$ 25,267	$ 23,227

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Property and equipment
Property and equipment, gross	$ 141,955	$ 135,668
Accumulated depreciation	(77,886)	(72,829)
Property and equipment, net	64,069	62,839
Depreciation expense	18,478	16,199	$ 15,905
Office equipment
Property and equipment
Property and equipment, gross	2,508	4,365
Computer equipment
Property and equipment
Property and equipment, gross	58,670	55,495
Furniture and fixtures
Property and equipment
Property and equipment, gross	12,958	12,791
Software
Property and equipment
Property and equipment, gross	11,127	8,785
Leasehold improvements
Property and equipment
Property and equipment, gross	48,159	47,521
Time clocks rented by clients
Property and equipment
Property and equipment, gross	$ 8,533	$ 6,711

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Changes in Goodwill
Balance at beginning of year	$ 101,949	$ 33,650
Additions attributable to acquisitions	0	68,299
Measurement period adjustments	105	0
Balance at end of year	102,054	101,949	$ 33,650
Amortizable intangible assets
Intangible assets, gross	68,569	68,569
Accumulated amortization	(34,042)	(23,094)
Intangible assets, net	34,527	45,475
Amortization expense for acquired intangible assets	10,948	8,752	$ 3,840
Future amortization expense for acquired intangible assets
Fiscal 2024	9,943
Fiscal 2025	8,888
Fiscal 2026	7,269
Fiscal 2027	4,893
Fiscal 2028	3,029
Thereafter	505
Intangible assets, net	34,527	45,475
Proprietary technology
Amortizable intangible assets
Intangible assets, gross	$ 43,129	43,129
Weighted average useful life (years)	6 years
Client relationships
Amortizable intangible assets
Intangible assets, gross	$ 22,200	22,200
Weighted average useful life (years)	7 years 9 months 18 days
Non-solicitation agreements
Amortizable intangible assets
Intangible assets, gross	$ 1,600	1,600
Weighted average useful life (years)	3 years 1 month 6 days
Trade names
Amortizable intangible assets
Intangible assets, gross	$ 1,640	$ 1,640
Weighted average useful life (years)	5 years

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022
Components of accrued expenses
Accrued payroll and personnel costs	$ 85,019	$ 84,897
Operating lease liabilities	7,800	8,399
Deferred revenue	24,539	13,548
Other	25,929	17,540
Total accrued expenses	$ 143,287	$ 124,384
Operating lease, liability, current, statement of financial position [Extensible List]	Total accrued expenses	Total accrued expenses

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	1 Months Ended			12 Months Ended
	Aug. 31, 2022	Jan. 31, 2022	Apr. 30, 2020	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Debt
Borrowed and repaid under credit facility		$ 50,000		$ 0		$ 0
Five-year revolving credit agreement | Senior secured debt
Debt
Maximum borrowing capacity	$ 550,000
Maximum borrowing capacity, subject to additional lender commitments and satisfaction of other requirements	$ 825,000
Borrowed and repaid under credit facility			$ 100,000	$ 0	$ 0
Average interest rate					1.01%	1.04%
Five-year revolving credit agreement | Senior secured debt | Minimum
Debt
Interest coverage ratio	2
Five-year revolving credit agreement | Senior secured debt | Maximum
Debt
Net total leverage ratio	4
Net total leverage ratio with step-up	4.50
Five-year revolving credit agreement | Senior secured debt | SOFR | Minimum
Debt
Margin on base rate	0.875%
Five-year revolving credit agreement | Senior secured debt | SOFR | Maximum
Debt
Margin on base rate	0.50%
Five-year revolving credit agreement | Senior secured debt | Adjusted base rate | Minimum
Debt
Margin on base rate	0%
Five-year revolving credit agreement | Senior secured debt | Adjusted base rate | Maximum
Debt
Margin on base rate	1.50%

Leases - Operating Lease Compon

Leases - Operating Lease Components (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Components of operating lease expense:
Operating lease cost	$ 8,868	$ 7,509	$ 9,139
Short-term lease cost	301	345	75
Variable lease cost	5,358	4,579	4,796
Total lease costs	$ 14,527	$ 12,433	$ 14,010

Leases - Operating Lease ROU As

Leases - Operating Lease ROU Assets, Operating Lease Liabilities and Other Supplemental Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022
Operating leases:
Operating lease right-of-use assets	$ 44,067	$ 49,210
Accrued expenses	7,800	8,399
Long-term operating lease liabilities	$ 62,471	$ 69,119
Weighted-average remaining lease term (years)	8 years	8 years 10 months 24 days
Weighted-average discount rate	3.52%	3.46%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Operating leases:
Cash paid for amounts included in the measurement of operating lease liabilities	$ 10,958	$ 9,955	$ 11,093
Operating lease assets obtained in exchange for new liabilities	$ 1,264	$ 10,084	$ 1,682

Leases - Future Maturities and

Leases - Future Maturities and Leases That Had Not Yet Commenced (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Undiscounted cash flows for future maturities of operating lease liabilities and the reconciliation to the balance of operating lease liabilities
Fiscal 2024	$ 10,050
Fiscal 2025	10,321
Fiscal 2026	9,909
Fiscal 2027	9,470
Fiscal 2028	9,490
Thereafter	32,053
Total undiscounted cash flows	81,293
Less: Present value discount	(11,022)
Operating lease liabilities	$ 70,271

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Current taxes
Federal	$ 1,702	$ 0	$ 0
State and local	2,625	(16)	(75)
Deferred taxes:
Federal	17,973	(4,214)	(10,476)
State and local	(4,508)	(2,950)	(3,164)
Total income tax expense (benefit)	$ 17,792	$ (7,180)	$ (13,715)
Tax Rate Reconciliation
Income tax expense (benefit) at statutory federal rate	21%	21%	21%
Increase (reduction) in income taxes resulting from:
Research and development credit and other credits	(3.10%)	(5.30%)	(7.10%)
Non-deductible expenses	1%	1.50%	1.40%
Change in valuation allowance	(2.80%)	0.40%	2.80%
Stock-based compensation expense	(6.10%)	(21.90%)	(35.00%)
State and local income taxes, net of federal income tax benefit	1.30%	(4.00%)	(6.70%)
Other	(0.10%)	(0.30%)	(0.40%)
Total effective income tax rate	11.20%	(8.60%)	(24.00%)
Pre-tax income	$ 158,614	$ 83,597	$ 57,104
Deferred tax assets:
Operating lease liabilities	18,238	19,979
Accrued expenses	19,610	16,143
Stock-based compensation	27,402	22,857
Net operating loss carryforwards	13,010	45,574
Federal and state tax credits	35,016	30,498
Research and development costs	12,523	0
Other	1,204	1,064
Total deferred tax assets	127,003	136,115
Valuation allowance	(1,350)	(5,850)
Net deferred tax assets	125,653	130,265
Deferred tax liabilities:
Deferred contract costs	(96,598)	(75,028)
Operating lease right-of-use assets	(11,456)	(12,708)
Research and development costs	0	(13,661)
Intangible assets	(2,626)	(3,725)
Depreciation	(10,947)	(8,300)
Total deferred tax liabilities	(121,627)	(113,422)
Net deferred tax asset (liability)	4,026	$ 16,843
State
Deferred tax assets:
Valuation allowance	$ (1,350)

Income Taxes - Carryforwards (D

Income Taxes - Carryforwards (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Unrecognized Tax Benefits
Unrecognized tax benefits at beginning of the year	$ 1,015	$ 534
Additions for current year tax positions	570	380
Additions for tax positions of prior periods	0	101
Subtractions for tax positions of prior periods	(33)	0
Unrecognized tax benefit at end of year	1,552	$ 1,015
Federal
Operating loss carryforwards
Net operating loss carryforwards	49,087
State
Operating loss carryforwards
Net operating loss carryforwards	45,349
Net operating loss carryforwards that will expire	35,850
Net operating loss carryforwards not subject to expiration	$ 9,499
State | Maximum
Operating loss carryforwards
Expiration date for net operating losses	Jun. 30, 2042
Unrecognized Tax Benefits
Statute of limitations on filings	4 years
State | Minimum
Operating loss carryforwards
Expiration date for net operating losses	Jun. 30, 2023
Unrecognized Tax Benefits
Statute of limitations on filings	3 years
Research and development and other | Federal And State
Tax credit carryforwards
Tax credit carryforwards	$ 41,085
Research and development and other | Federal And State | Maximum
Tax credit carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2042
Research and development and other | Federal And State | Minimum
Tax credit carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2023

Stockholders' Equity (Details)

Stockholders' Equity (Details)	12 Months Ended
	Jun. 30, 2023 vote
Common Stock
Stockholders' Equity
Number of common stock vote per share	1

Benefit Plans - General Informa

Benefit Plans - General Information (Details) shares in Thousands	12 Months Ended
	Jun. 30, 2023 shares
Equity Incentive Plans
Equity Incentive Plans
Number of shares of common stock reserved for issuance (in shares)	13,699
Number of shares allocated but not yet issued that are subject to outstanding options or awards	1,701
2008 Plan
Equity Incentive Plans
Awards issued (in shares)	0
Awards issuable (in shares)	0
2014 Plan
Equity Incentive Plans
Potential number of additional shares available for grant each year (as a percent)	4.50%

Benefit Plans - Incentive Plans

Benefit Plans - Incentive Plans Activity (Details) - Equity Incentive Plans shares in Thousands	12 Months Ended
	Jun. 30, 2023 shares
Shares Available for Grant
Balance at the beginning of the year (in shares)	12,393
RSUs granted (in shares)	(795)
MSUs granted (in shares)	(82)
Net settlement for taxes and/or exercise price (in shares)	382
Forfeitures (in shares)	168
Shares removed (in shares)	(68)
Balance at the end of the year (in shares)	11,998

Benefit Plans - Compensation Ex

Benefit Plans - Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Benefit Plans
Total stock-based compensation expense	$ 147,300	$ 96,202	$ 63,052
Stock-based compensation expense capitalized in internal-use software costs	11,901	7,119	2,610
Cost of revenues
Benefit Plans
Total stock-based compensation expense	17,101	11,622	7,687
Sales and marketing
Benefit Plans
Total stock-based compensation expense	36,930	21,854	15,658
Research and development
Benefit Plans
Total stock-based compensation expense	36,475	18,696	10,192
General and administrative
Benefit Plans
Total stock-based compensation expense	$ 56,794	44,030	29,515
Modified performance-based restricted stock unit awards
Benefit Plans
Total stock-based compensation expense		$ 6,765	$ 6,423

Benefit Plans - Stock Option Ac

Benefit Plans - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Options Outstanding, Number of Shares
Balance at the beginning of the year (in shares)	548
Options exercised (in shares)	(260)
Balance at the end of the year (in shares)	288	548
Options vested and exercisable at the end of the year (in shares)	288
Options Outstanding, Weighted average exercise price
Balance at the beginning of the year (in dollars per share)	$ 18.34
Options exercised (in dollars per share)	12.53
Balance at the end of the year (in dollars per share)	23.63	$ 18.34
Options vested and exercisable at the end of the year, weighted average exercise price (in dollars per share)	$ 23.63
Options Additional Disclosures
Weighted average remaining contractual term (in years)	1 year 2 months 12 days	1 year 7 months 6 days
Weighted average remaining contractual term of options vested and exercisable at the end of the year (years)	1 year 2 months 12 days
Aggregate intrinsic value at the beginning of the year (years)	$ 85,515
Aggregate intrinsic value at the end of the year (years)	46,129	$ 85,515
Options vested and exercisable at the end of the year (years)	$ 46,129
Options granted (in shares)	0	0	0
Total intrinsic value of options exercised	$ 52,985	$ 51,457	$ 84,072

Benefit Plans - RSU Activity (D

Benefit Plans - RSU Activity (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Equity Incentive Plans
Vesting period	4 years
RSUs Outstanding, Units
Balance at the beginning of the year (in shares) | shares	1,327
RSUs granted (in shares) | shares	795
RSUs vested (in shares) | shares	(724)
RSUs forfeited (in shares) | shares	(156)
Balance at the end of the year (in shares) | shares	1,242
RSUs Outstanding, Weighted average grant date fair value
Balance at the beginning of the year (in dollar per shares) | $ / shares	$ 168.44
RSUs granted (in dollar per shares) | $ / shares	254.59
RSUs vested (in dollar per shares) | $ / shares	163.79
RSUs forfeited (in dollar per shares) | $ / shares	162.57
Balance at the end of the year (in dollar per shares) | $ / shares	$ 225.30
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested RSUs | $	$ 116,517
Weighted average period to recognize unrecognized compensation cost	1 year 9 months 18 days

Benefit Plans - MSU Activity (D

Benefit Plans - MSU Activity (Details) - Market share units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
MSUs Outstanding, Units
Balance at the beginning of the year (in shares)	101
MSUs granted (in shares)	82
MSUs forfeited (in shares)	(12)
Balance at the end of the year (in shares)	171	101
MSUs Outstanding, Weighted average grant date fair value
Balance at the beginning of the year (in dollar per shares)	$ 263.83
MSUs granted (in dollar per shares)	387.67
MSUs forfeited (in dollar per shares)	278.08
Balance at the end of the year (in dollar per shares)	$ 320.38	$ 263.83
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected dividend yield	0%	0%	0%
Expected volatility			52%
Expected term (years)			3 years 14 days
Risk‑free interest rate			0.18%
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested MSUs	$ 25,009
Weighted average period to recognize unrecognized compensation cost	2 years
Excess income tax benefits
Excess income tax benefits for stock-based compensation arrangements recognized through income tax expense (benefit)	$ 113,903	$ 143,046	$ 128,229
Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
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
Equity Incentive Plans
Percentage of award shares eligible to vest, maximum	200%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
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%

Benefit Plans- ESPP Information

Benefit Plans- ESPP Information (Details) - USD ($) shares in Thousands, $ in Thousands		12 Months Ended
	Jan. 01, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Equity Incentive Plans
Stock-based compensation expense		$ 147,300	$ 96,202	$ 63,052
Employee stock purchase plan shares
Equity Incentive Plans
Percentage of employee compensation, maximum		10%
Percentage of fair market value as a purchase price		85%
Maximum value of purchase per employee		$ 25
Number of shares per employee, maximum (in shares)		2
Period during which shares can be purchased		1 year
Number of shares of common stock reserved for issuance (in shares)		1,773
Potential number of additional shares reserved for issuance each year (in shares)		400
Potential number of additional shares reserved for issuance each year (as percent)		0.75%
Increase in the number of shares of common stock reserved for issuance (in shares)	400
Number of shares issued (in shares)		120
Stock-based compensation expense		$ 6,393	$ 4,676	$ 4,570
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected dividend yield		0%	0%	0%
Expected term (years)		6 months	6 months	6 months
Employee stock purchase plan shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility		41.10%	31%	42.20%
Risk‑free interest rate		1.54%	0.04%	0.04%
Employee stock purchase plan shares | Maximum
Equity Incentive Plans
Offering period		27 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility		57.50%	57.50%	72.20%
Risk‑free interest rate		5.26%	1.54%	0.15%

Benefit Plans - 401(k) Plan (De

Benefit Plans - 401(k) Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Retirement Benefits [Abstract]
401(k) Plan Matching contributions by the Company as percentage of employees' contributions	50%
401(k) Plan Maximum contributions by the Company as percentage of employees' gross pay	8%
401(k) Plan contributions	$ 15,083	$ 12,305	$ 2,658

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income	$ 140,822	$ 90,777	$ 70,819
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,706	55,036	54,318
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units and market share units	890	1,409	1,987
Diluted (in shares)	56,596	56,445	56,305
Net Income Per Share
Basic (in dollars per share)	$ 2.53	$ 1.65	$ 1.30
Diluted (in dollars per share)	$ 2.49	$ 1.61	$ 1.26

Net Income Per Share - Summary

Net Income Per Share - Summary of Anti-dilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Anti-dilutive securities excluded from diluted per share calculations
Anti-dilutive securities excluded	87	94	44
Market share units
Anti-dilutive securities excluded from diluted per share calculations
Anti-dilutive securities excluded	48	24	38
Restricted stock units
Anti-dilutive securities excluded from diluted per share calculations
Anti-dilutive securities excluded	39	70	6