Paylocity Holding (PCTY) 10-Q 3 Nov 23 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Sep. 30, 2023	Oct. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		56,176,891
Entity Central Index Key	0001591698
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Current assets:
Cash and cash equivalents	$ 305,031	$ 288,767
Accounts receivable, net	30,111	25,085
Deferred contract costs	82,438	78,109
Prepaid expenses and other	36,971	35,061
Total current assets before funds held for clients	454,551	427,022
Funds held for clients	2,528,353	2,621,415
Total current assets	2,982,904	3,048,437
Capitalized internal-use software, net	95,522	86,127
Property and equipment, net	63,341	64,069
Operating lease right-of-use assets	42,890	44,067
Intangible assets, net	31,991	34,527
Goodwill	102,054	102,054
Long-term deferred contract costs	305,788	294,222
Long‑term prepaid expenses and other	5,925	6,331
Deferred income tax assets	16,362	15,846
Total assets	3,646,777	3,695,680
Current liabilities:
Accounts payable	8,749	6,153
Accrued expenses	131,693	143,287
Total current liabilities before client fund obligations	140,442	149,440
Client fund obligations	2,531,789	2,625,355
Total current liabilities	2,672,231	2,774,795
Long-term operating lease liabilities	60,584	62,471
Other long-term liabilities	3,584	3,731
Deferred income tax liabilities	17,739	11,820
Total liabilities	2,754,138	2,852,817
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2023 and September 30, 2023	0	0
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2023 and September 30, 2023; 55,912 shares issued and outstanding at June 30, 2023 and 56,167 shares issued and outstanding at September 30, 2023	56	56
Additional paid-in capital	395,771	380,632
Retained earnings	501,207	466,690
Accumulated other comprehensive loss	(4,395)	(4,515)
Total stockholders' equity	892,639	842,863
Total liabilities and stockholders’ equity	$ 3,646,777	$ 3,695,680

Unaudited Consolidated Balanc_2

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2023	Jun. 30, 2023
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)	56,167	55,912
Common stock, shares outstanding (in shares)	56,167	55,912

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Recurring and other revenue	$ 291,685	$ 245,406
Interest income on funds held for clients	25,901	7,874
Total revenues	317,586	253,280
Cost of revenues	101,467	84,543
Gross profit	216,119	168,737
Operating expenses:
Sales and marketing	80,403	71,063
Research and development	44,605	40,093
General and administrative	49,922	50,492
Total operating expenses	174,930	161,648
Operating income	41,189	7,089
Other income (expense)	3,225	(163)
Income before income taxes	44,414	6,926
Income tax expense (benefit)	9,897	(23,426)
Net income	34,517	30,352
Other comprehensive income (loss), net of tax	120	(2,372)
Comprehensive income	$ 34,637	$ 27,980
Net income per share:
Basic (in dollars per share)	$ 0.62	$ 0.55
Diluted (in dollars per share)	$ 0.61	$ 0.54
Weighted-average shares used in computing net income per share:
Basic (in shares)	56,037	55,453
Diluted (in shares)	56,881	56,664

Unaudited Consolidated Statem_2

Unaudited Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Jun. 30, 2022		55,190
Beginning balance at Jun. 30, 2022	$ 613,463	$ 55	$ 289,843	$ 325,868	$ (2,303)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	43,471		43,471
Stock options exercised (in shares)		235
Stock options exercised	2,832		2,832
Issuance of common stock upon vesting of equity awards (in shares)		549
Issuance of common stock upon vesting of equity awards	0	$ 1	(1)
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(310)
Net settlement for taxes and/or exercise price related to equity awards	(76,900)		(76,900)
Unrealized gains (losses) on securities, net of tax	(2,372)				(2,372)
Net income	30,352			30,352
Ending balance (in shares) at Sep. 30, 2022		55,664
Ending balance at Sep. 30, 2022	$ 610,846	$ 56	259,245	356,220	(4,675)
Beginning balance (in shares) at Jun. 30, 2023	55,912	55,912
Beginning balance at Jun. 30, 2023	$ 842,863	$ 56	380,632	466,690	(4,515)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	43,964		43,964
Stock options exercised (in shares)		14
Stock options exercised	223		223
Issuance of common stock upon vesting of equity awards (in shares)		387
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(146)
Net settlement for taxes and/or exercise price related to equity awards	(29,048)		(29,048)
Unrealized gains (losses) on securities, net of tax	120				120
Net income	$ 34,517			34,517
Ending balance (in shares) at Sep. 30, 2023	56,167	56,167
Ending balance at Sep. 30, 2023	$ 892,639	$ 56	$ 395,771	$ 501,207	$ (4,395)

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 34,517	$ 30,352
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	39,005	39,813
Depreciation and amortization expense	17,121	14,267
Deferred income tax expense (benefit)	5,391	(23,415)
Provision for credit losses	181	266
Net accretion of discounts on available-for-sale securities	(1,392)	(842)
Amortization of debt issuance costs	65	94
Other	124	125
Changes in operating assets and liabilities:
Accounts receivable	(4,801)	(6,020)
Deferred contract costs	(14,985)	(19,328)
Prepaid expenses and other	(1,669)	614
Accounts payable	1,569	(1,805)
Accrued expenses and other	(12,984)	(17,734)
Net cash provided by operating activities	62,142	16,387
Cash flows from investing activities:
Purchases of available-for-sale securities	(92,567)	(118,926)
Proceeds from sales and maturities of available-for-sale securities	101,216	42,850
Capitalized internal-use software costs	(14,193)	(9,953)
Purchases of property and equipment	(3,454)	(3,447)
Other investing activities	(406)	0
Net cash used in investing activities	(9,404)	(89,476)
Cash flows from financing activities:
Net change in client fund obligations	(93,566)	(1,688,339)
Taxes paid related to net share settlement of equity awards	(28,825)	(74,071)
Payment of debt issuance costs	(11)	(855)
Net cash used in financing activities	(122,402)	(1,763,265)
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents	(69,664)	(1,836,354)
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of period	2,421,312	3,793,453
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of period	2,351,648	1,957,099
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment and internal-use software, accrued but not paid	1,803	0
Liabilities assumed for acquisitions	0	117
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	124	62
Cash paid for income taxes	6,207	19
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	305,031	65,484
Funds held for clients' cash and cash equivalents	2,046,617	1,891,615
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$ 2,351,648	$ 1,957,099

Organization and Description of

Organization and Description of Business	3 Months Ended
	Sep. 30, 2023
Organization and Description of Business [Abstract]
Organization and Description of Business	(1) Organization and Description of Business

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 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 These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. (b) Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s financial position, results of operations, changes in stockholders’ equity and cash flows. The results of operations for the three months ended September 30, 2023 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2023 included in the Company’s Annual Report on Form 10-K. (c) Income Taxes Income taxes are accounted for in accordance with ASC 740, Income Taxes, using the asset and liability method. The Company’s provision for income taxes is based on the annual effective rate method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net-recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. (d) Recently Issued Accounting Standards

Revenue

Revenue	3 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	(3) Revenue The Company derives its revenue from contracts predominantly from recurring and non-recurring service fees. While the majority of its agreements are generally cancellable by the client on 60 days’ notice or less, the Company also offers term agreements to its clients, which are generally two years in length. Recurring fees are derived from payroll, timekeeping, and HR-related cloud-based computing services. The majority of the Company’s recurring fees are satisfied over time as services are provided. The performance obligations related to payroll services are satisfied upon the processing of the client’s payroll with the fee charged and collected based on a per employee per payroll frequency fee. The performance obligations related to time and attendance services and HR related services are satisfied over time each month with the fee charged and collected based on a per employee per month fee. For subscription-based fees which can include payroll, time and attendance, and other HCM related services, the Company recognizes the applicable recurring fees over time each month with the fee charged and collected based on a per employee per month fee. Non-recurring service fees consist mainly of nonrefundable implementation fees, which involve setting the client up in, and loading data into, the Company’s cloud-based modules. These implementation activities are considered set-up activities. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract. Disaggregation of revenue The following table disaggregates total revenues from contracts by Recurring fees and Implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Three Months Ended 2022 2023 Recurring fees $ 236,819 $ 279,899 Implementation services and other 8,587 11,786 Total revenues from contracts $ 245,406 $ 291,685 Deferred revenue The timing of revenue recognition for recurring revenue is consistent with the timing of invoicing as they occur simultaneously based on the client payroll processing period or by month. As such, the Company does not recognize contract assets or liabilities related to recurring revenue. The Company defers and amortizes nonrefundable upfront fees related to implementation services generally over a period up to 24 months based on the type of contract. The following table summarizes the changes in deferred revenue (i.e., contract liability) related to these nonrefundable upfront fees as follows: Three Months Ended 2022 2023 Balance at beginning of the period $ 12,233 $ 22,617 Deferral of revenue 8,232 10,644 Revenue recognized (6,270) (9,121) Balance at end of the period $ 14,195 $ 24,140 Deferred revenue related to these nonrefundable upfront fees are recorded within Accrued expenses and Other long-term liabilities on the Unaudited Consolidated Balance Sheets. The Company expects to recognize these deferred revenue balances of $18,695 in fiscal 2024, $5,035 in fiscal 2025 and $410 in fiscal 2026 and thereafter. Deferred contract costs The Company defers certain selling and commission costs that meet the capitalization criteria under ASC 340-40. The Company also capitalizes certain costs to fulfill a contract related to its proprietary products if they are identifiable, generate or enhance resources used to satisfy future performance obligations and are expected to be recovered under ASC 340-40. Implementation fees are treated as nonrefundable upfront fees and the related implementation costs are required to be capitalized and amortized over the expected period of benefit, which is the period in which the Company expects to recover the costs and enhance its ability to satisfy future performance obligations. The Company utilizes the portfolio approach to account for both the cost of obtaining a contract and the cost of fulfilling a contract. These capitalized costs are amortized over the expected period of benefit, which has been determined to be over 7 years based on the Company’s average client life and other qualitative factors, including rate of technological changes. The Company does not incur any additional costs to obtain or fulfill contracts upon renewal. The Company recognizes additional selling and commission costs and fulfillment costs when an existing client purchases additional services. These additional costs only relate to the additional services purchased and do not relate to the renewal of previous services. The following tables present the deferred contract costs and the related amortization expense for these deferred contract costs: Three Months Ended September 30, 2022 Beginning Balance Capitalized Costs Amortization Ending Balance Costs to obtain a new contract $ 182,543 $ 18,912 $ (10,367) $ 191,088 Costs to fulfill a contract 106,025 16,862 (5,363) 117,524 Total $ 288,568 $ 35,774 $ (15,730) $ 308,612 Three Months Ended September 30, 2023 Beginning Balance Capitalized Costs Amortization Ending Balance Costs to obtain a new contract $ 218,965 $ 17,760 $ (12,316) $ 224,409 Costs to fulfill a contract 153,366 18,455 (8,004) 163,817 Total $ 372,331 $ 36,215 $ (20,320) $ 388,226 Deferred contract costs are recorded within Deferred contract costs and Long-term deferred contract costs on the Unaudited Consolidated Balance Sheets. Amortization of deferred contract costs is primarily recorded in Cost of revenues and Sales and marketing in the Unaudited Consolidated Statements of Operations and Comprehensive Income. Remaining Performance Obligations The balance of the Company’s remaining performance obligations related to minimum monthly fees on its term-based contracts was approximately $72,578 as of September 30, 2023, which will be generally recognized over the next 24 months. This balance excludes the value of unsatisfied performance obligations for contracts that have an original expected duration of one year or less and contracts for which the variable consideration is allocated entirely to wholly unsatisfied performance obligations.

Balance Sheet Information

Balance Sheet Information	3 Months Ended
	Sep. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Information	(4) Balance Sheet Information The following tables provide details of selected consolidated balance sheet items: Activity in the allowance for credit losses related to accounts receivable was as follows: Balance at June 30, 2023 $ 1,620 Charged to expense 181 Write-offs (49) Balance at September 30, 2023 $ 1,752 Capitalized internal-use software and accumulated amortization were as follows: June 30, September 30, Capitalized internal-use software $ 248,738 $ 267,668 Accumulated amortization (162,611) (172,146) Capitalized internal-use software, net $ 86,127 $ 95,522 Amortization of capitalized internal-use software costs is primarily included in Cost of revenues and amounted to $7,042 and $9,535 for the three months ended September 30, 2022 and 2023, respectively. The major classes of property and equipment, net were as follows: June 30, September 30, Office equipment $ 2,508 $ 2,743 Computer equipment 58,670 59,339 Furniture and fixtures 12,958 13,024 Software 11,127 11,336 Leasehold improvements 48,159 48,643 Time clocks rented by clients 8,533 8,921 Total 141,955 144,006 Accumulated depreciation (77,886) (80,665) Property and equipment, net $ 64,069 $ 63,341 Depreciation expense amounted to $4,454 and $5,050 for the three months ended September 30, 2022 and 2023, respectively. There were no changes to goodwill between the year ended June 30, 2023 and September 30, 2023. The Company’s amortizable intangible assets and estimated useful lives are as follows: June 30, September 30, Weighted average useful life (years) Proprietary technology $ 43,129 $ 43,129 6.0 Client relationships 22,200 22,200 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 1,640 1,640 5.0 Total 68,569 68,569 Accumulated amortization (34,042) (36,578) Intangible assets, net $ 34,527 $ 31,991 Amortization expense for acquired intangible assets was $2,771 and $2,536 for the three months ended September 30, 2022 and 2023, respectively, and is included in Cost of revenues and General and administrative. Future amortization expense for acquired intangible assets as of September 30, 2023 is as follows: Remainder of fiscal 2024 $ 7,407 Fiscal 2025 8,888 Fiscal 2026 7,269 Fiscal 2027 4,893 Fiscal 2028 3,029 Thereafter 505 Total $ 31,991 The components of accrued expenses were as follows: June 30, September 30, Accrued payroll and personnel costs $ 85,019 $ 71,528 Operating lease liabilities 7,800 8,423 Deferred revenue 24,539 26,141 Other 25,929 25,601 Total accrued expenses $ 143,287 $ 131,693

Corporate Investments and Funds

Corporate Investments and Funds Held for Clients	3 Months Ended
	Sep. 30, 2023
Corporate Investments and Funds Held for Clients [Abstract]
Corporate Investments and Funds Held for Clients	(5) Corporate Investments and Funds Held for Clients Corporate investments and funds held for clients consisted of the following: June 30, 2023 Type of Issue Amortized cost Gross unrealized gains Gross unrealized losses 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 September 30, 2023 Type of Issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 305,031 $ — $ — $ 305,031 Funds held for clients' cash and cash equivalents 2,046,617 — — 2,046,617 Available-for-sale securities: Commercial paper 70,578 3 (59) 70,522 Corporate bonds 149,159 2 (2,123) 147,038 Asset-backed securities 36,051 7 (314) 35,744 Certificates of deposit 54,168 10 (35) 54,143 U.S. treasury securities 159,239 — (2,685) 156,554 U.S government agency securities 8,000 — (447) 7,553 Other 10,289 — (107) 10,182 Total available-for-sale securities 487,484 22 (5,770) 481,736 Total investments $ 2,839,132 $ 22 $ (5,770) $ 2,833,384 All available-for-sale securities were included in Funds held for clients at June 30, 2023 and September 30, 2023. Cash and cash equivalents and funds held for clients’ cash and cash equivalents included demand deposit accounts and money market funds at June 30, 2023 and September 30, 2023. Classification of investments on the Unaudited Consolidated Balance Sheets was as follows: June 30, September 30, 2023 Cash and cash equivalents $ 288,767 $ 305,031 Funds held for clients 2,621,415 2,528,353 Total investments $ 2,910,182 $ 2,833,384 Available-for-sale securities that had been in an unrealized loss position for a period of less and greater than 12 months as of June 30, 2023 and September 30, 2023 had fair market value as follows: June 30, 2023 Securities in an unrealized loss Securities in an unrealized loss Total Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (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 September 30, 2023 Securities in an unrealized loss Securities in an unrealized loss Total Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (59) $ 63,818 $ — $ — $ (59) $ 63,818 Corporate bonds (957) 107,622 (1,166) 32,451 (2,123) 140,073 Asset-backed securities (41) 20,986 (273) 10,459 (314) 31,445 Certificates of deposit (35) 37,913 — — (35) 37,913 U.S. treasury securities (1,023) 86,842 (1,662) 67,213 (2,685) 154,055 U.S. government agency securities — — (447) 7,553 (447) 7,553 Other (26) 2,768 (81) 3,564 (107) 6,332 Total available-for-sale securities $ (2,141) $ 319,949 $ (3,629) $ 121,240 $ (5,770) $ 441,189 The Company regularly reviews the composition of its portfolio to determine the existence of credit impairment. The Company did not recognize any credit impairment losses during the three months ended September 30, 2022 or 2023. All securities in the Company’s portfolio held an A-1 rating or better as of September 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 three months ended September 30, 2022 or 2023. There were no realized gains or losses on the sale of available-for-sale securities for the three months ended September 30, 2022 or 2023. Expected maturities of available-for-sale securities at September 30, 2023 were as follows: Amortized cost Fair value One year or less $ 207,177 $ 205,662 One year to two years 171,288 168,364 Two years to three years 88,935 87,761 Three years to five years 20,084 19,949 Total available-for-sale securities $ 487,484 $ 481,736

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	(6) Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets and liabilities. • Level 2—Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company measures certain cash and cash equivalents, 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, 2023 and September 30, 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 and other securities. The independent pricing service utilizes a variety of inputs including benchmark yields, broker/dealer quoted prices, reported trades, issuer spreads as well as other available market data. The Company, on a sample basis, validates the pricing from the independent pricing service against another third-party pricing source for reasonableness. The Company has not adjusted any prices obtained by the independent pricing service, as it believes they are appropriately valued. There were no available-for-sale securities classified in Level 3 of the fair value hierarchy at June 30, 2023 or September 30, 2023. The fair value level for the Company’s cash and cash equivalents and available-for-sale securities was as follows: 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 $ — September 30, 2023 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 305,031 $ 305,031 $ — $ — Funds held for clients' cash and cash equivalents 2,046,617 2,046,617 — — Available-for-sale securities: Commercial paper 70,522 — 70,522 — Corporate bonds 147,038 — 147,038 — Asset-backed securities 35,744 — 35,744 — Certificates of deposit 54,143 — 54,143 — U.S. treasury securities 156,554 — 156,554 — U.S government agency securities 7,553 — 7,553 — Other 10,182 — 10,182 — Total available-for-sale securities 481,736 — 481,736 — Total investments $ 2,833,384 $ 2,351,648 $ 481,736 $ —

Debt

Debt	3 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Debt	(7) Debt In July 2019, the Company entered into a revolving credit agreement with PNC Bank, National Association, and other lenders, which is secured by substantially all of the Company’s assets, subject to certain restrictions. In August 2022, the Company entered into a first amendment to the aforementioned credit agreement to increase the borrowing capacity of our revolving credit facility ("credit facility") to $550,000, which may be increased up to $825,000, subject to obtaining additional lender commitments and certain approvals and satisfying other requirements. The amended credit agreement extends the maturity date of the credit facility to August 2027 and replaces the interest rate based on London Interbank Offered Rate with an interest rate based on secured overnight financing rate ("SOFR"). The Company had no borrowings at June 30, 2023 or September 30, 2023. The proceeds of any borrowings are to be used to fund working capital, capital expenditures and general corporate purposes, including permitted acquisitions, permitted investments, permitted distributions and share repurchases. The Company may generally borrow, prepay and reborrow under the credit facility and terminate or reduce the lenders’ commitments at any time prior to revolving credit facility expiration without a premium or a penalty, other than customary “breakage” costs. Any borrowings under the credit facility will generally bear interest, at the Company’s option, at a rate per annum determined by reference to either the Term SOFR rate plus the SOFR Adjustment or an adjusted base rate, in each case plus an applicable margin ranging from 0.875% to 1.500% and 0.0% to 0.500%, respectively, based on the then-applicable net total leverage ratio. Additionally, the Company is required to pay certain commitment, letter of credit fronting and letter of credit participation fees on available and/or undrawn portions of the credit facility. The Company is required to comply with certain customary affirmative and negative covenants, including a requirement to maintain a maximum net total leverage ratio of not greater than 4.00 to 1.00, (with a step up to 4.50 to 1.00 for the 4 consecutive fiscal quarters following a fiscal quarter in which certain permitted acquisitions are consummated), and a minimum interest coverage ratio of not less than 2.00 to 1.00. As of September 30, 2023, the Company was in compliance with all of the aforementioned covenants.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	(8) Stock-Based Compensation The Company 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 number of shares of common stock reserved for issuance under the 2014 Plan may increase each calendar year, continuing through and including January 1, 2024. The number of shares added each year may be equal to the lesser of (a) four and five tenths percent (4.5%) of the number of shares of common stock of the Company issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Company’s board of directors. As of September 30, 2023, the Company had 13,444 shares allocated to the 2014 Plan, of which 2,076 shares were subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options or vesting of awards; however, shares previously subject to 2014 Plan grants or awards that are forfeited or net settled at exercise or release may be reissued to satisfy future issuances. The following table summarizes changes in the number of shares available for grant under the Company’s equity incentive plan during the three months ended September 30, 2023: Number of Available for grant at July 1, 2023 11,998 RSUs granted (721) MSUs granted (86) Shares withheld in settlement of taxes and/or exercise price 146 Forfeitures 31 Available for grant at September 30, 2023 11,368 Stock-based compensation expense related to restricted stock units (“RSUs”), market share units (“MSUs”) and the Employee Stock Purchase Plan is included in the following line items in the accompanying unaudited consolidated statements of operations and comprehensive income: Three Months Ended September 30, 2022 2023 Cost of revenues $ 4,041 $ 4,943 Sales and marketing 9,559 9,225 Research and development 8,802 9,758 General and administrative 17,411 15,079 Total stock-based compensation expense $ 39,813 $ 39,005 In addition, the Company capitalized $2,942 and $4,049 of stock-based compensation expense in its capitalized internal-use software costs in the three months ended September 30, 2022 and 2023, respectively. There were no stock options granted during the three months ended September 30, 2023. The table below presents stock option activity during the three months ended September 30, 2023: Outstanding Options Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Option balance at July 1, 2023 288 $ 23.63 1.2 $ 46,129 Options exercised (14) $ 17.02 Option balance at September 30, 2023 274 $ 23.95 0.9 $ 43,157 Options vested and exercisable at September 30, 2023 274 $ 23.95 0.9 $ 43,157 The total intrinsic value of options exercised was $48,143 and $2,494 during the three months ended September 30, 2022 and 2023, respectively. The Company grants RSUs under the 2014 Plan with terms determined at the discretion of the compensation committee of the Company’s board of directors. RSUs generally vest over four years following the grant date and have time-based vesting conditions. The following table represents restricted stock unit activity during the three months ended September 30, 2023: Units Weighted average grant date fair value RSU balance at July 1, 2023 1,242 $ 225.30 RSUs granted 721 $ 195.06 RSUs vested (327) $ 179.23 RSUs forfeited (31) $ 201.67 RSU balance at September 30, 2023 1,605 $ 221.56 At September 30, 2023, there was $219,879 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock units granted. That cost is expected to be recognized over a weighted average period of 2.0 years. The Company also grants MSUs under the 2014 Plan with terms determined at the discretion of the compensation committee of the Company's board of directors. The actual number of MSUs that will be eligible to vest is based on the achievement of a relative total shareholder return (“TSR”) target as compared to the TSR realized by each of the companies comprising the Russell 3000 Index over an approximately three-year period. The MSUs cliff-vest at the end of the TSR measurement period, and up to 200% of the target number of shares subject to each MSU are eligible to be earned. The following table represents market share unit activity during the three months ended September 30, 2023: Units Weighted average grant date fair value MSU balance at July 1, 2023 171 $ 320.38 MSUs granted 86 $ 256.66 MSUs vested (60) $ 178.04 MSU balance at September 30, 2023 197 $ 335.84 The Company estimated the grant date fair value of the MSUs using a Monte Carlo simulation model that included the following assumptions: Three Months Ended 2022 2023 Valuation assumptions: Expected dividend yield —% —% Expected volatility 51.0% 44.5% Expected term (years) 3.04 3.04 Risk‑free interest rate 3.11% 4.58% At September 30, 2023, there was $21,666 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested MSUs. That cost is expected to be recognized over a period of 1.8 years.

Litigation

Litigation	3 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Litigation	(9) 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. On September 11, 2023, a second potential class action complaint was filed against the Company with the Circuit Court of Cook County that alleges violations of the Illinois Biometric Information Privacy Act that overlap with claims in the first action. The Company is unable to estimate any reasonably possible loss, or range of loss, with respect to these matters at this time. The Company intends to vigorously defend against these lawsuits. From time to time, the Company is subject to litigation arising in the ordinary course of business. Many of these matters are covered in whole or in part by insurance. In the opinion of the Company’s management, the ultimate disposition of any matters currently outstanding or threatened will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity. However, these matters are subject to inherent uncertainties and could materially impact the Company’s financial position, results of operations, or liquidity based on the final disposition of these matters.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	(10) Income Taxes The Company’s quarterly provision for income taxes is based on the annual effective rate method. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, and other discrete items in the interim period in which they occur. The Company's effective tax rate was (338.2)% and 22.3% for the three months ended September 30, 2022 and 2023, respectively. The Company's effective tax rate for the three months ended September 30, 2022 was lower than the federal statutory rate of 21% primarily due to excess tax benefits from employee stock-based compensation, state and local income taxes, and a decrease to the valuation allowance. The Company's effective tax rate for the three months ended September 30, 2023 was higher than the federal statutory rate of 21% primarily due to state and local income taxes, partially offset by federal research and development tax credits.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Income Per Share	(11) Net Income Per Share Basic net income per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares outstanding during the period and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options, the release of restricted stock units and market share units as of the balance sheet date. The following table presents the calculation of basic and diluted net income per share: Three Months Ended 2022 2023 Numerator: Net income $ 30,352 $ 34,517 Denominator: Weighted-average shares used in computing net income per share: Basic 55,453 56,037 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and market share units 1,211 844 Diluted 56,664 56,881 Net income per share: Basic $ 0.55 $ 0.62 Diluted $ 0.54 $ 0.61 The following table summarizes the outstanding restricted stock units and market share units as of September 30, 2022 and 2023 that were excluded from the diluted per share calculation for the periods presented because to include them would have been antidilutive: Three Months Ended 2022 2023 Market share units — 10 Restricted stock units 647 72 Total 647 82

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 34,517	$ 30,352

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	During the three months ended September 30, 2023, the following directors and/or officers adopted a “Rule 10b5-1 trading arrangement,” as defined in Item 408(a) of Regulation S-K intending to satisfy the affirmative defense of Rule 10b5-1(c): Name and Title Total Shares of Common Stock to be Sold (1) Duration (2) Adoption Date Expiration Date Steven R. Beauchamp Co-Chief Executive Officer and Director Up to 222,116 (3) November 6, 2023 - August 30, 2024 August 7, 2023 August 30, 2024 Rachit Lohani Chief Technology Officer Up to 8,344 (4) December 5, 2023 - September 30, 2025 September 5, 2023 September 30, 2025 Ryan Glenn Chief Financial Officer and Treasurer Up to 7,900 (4) January 10, 2024 - December 31, 2024 September 14, 2023 December 31, 2024 Katherine Ross Senior Vice President of Operations Up to 7,220 (4) December 15, 2023 - December 31, 2024 September 15, 2023 December 31, 2024 Steven I. Sarowitz Chairman of the Board 1,100,000 January 2, 2024 - December 31, 2024 September 15, 2023 December 31, 2024 (1) The volume of sales is determined, in part, based on pricing triggers outlined in each adopting person's trading arrangement. (2) Each trading arrangement permits transactions through and including the earlier to occur of (a) the completion of all sales or (b) the expiration date listed in the table. (3) Includes the sale of up to 100,000 shares based on pricing triggers and the exercise of 122,116 stock options that expire in March 2024 and the related sale of the net shares acquired upon exercise after withholding by the Company of shares in payment of exercise price and applicable taxes. (4) Includes shares subject to certain outstanding equity awards with time- and/or market-based vesting conditions. For shares subject to market-based vesting conditions, the number of shares included in the table above assumes the maximum achievement of the market-based market conditions. Additionally, for both time- and market-based vesting awards, the actual number of shares that may be sold will be net of the number of shares withheld by the Company to satisfy tax withholding obligations arising from the vesting of such awards, which is not determinable at this time. No directors or officers terminated a Rule 10b5-1 trading arrangement or entered into or terminated a “non-Rule 10b5-1 trading arrangement” as defined in Item 408(a) of Regulation S-K during the three months ended September 30, 2023.
Rule 10b5-1 Arrangement Adopted	true
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Steven R. Beauchamp [Member]
Trading Arrangements, by Individual
Name	Steven R. Beauchamp
Title	Co-Chief Executive Officer and Director
Adoption Date	August 7, 2023
Termination Date	August 30, 2024
Arrangement Duration	299 days
Aggregate Available	222,116
Rachit Lohani [Member]
Trading Arrangements, by Individual
Name	Rachit Lohani
Title	Chief Technology Officer
Adoption Date	September 5, 2023
Termination Date	September 30, 2025
Arrangement Duration	666 days
Aggregate Available	8,344
Ryan Glenn [Member]
Trading Arrangements, by Individual
Name	Ryan Glenn
Title	Chief Financial Officer and Treasurer
Adoption Date	September 14, 2023
Termination Date	December 31, 2024
Arrangement Duration	357 days
Aggregate Available	7,900
Katherin Ross [Member]
Trading Arrangements, by Individual
Name	Katherine Ross
Title	Senior Vice President of Operations
Adoption Date	September 15, 2023
Termination Date	December 31, 2024
Arrangement Duration	383 days
Aggregate Available	7,220
Steven I. Sarowitz [Member]
Trading Arrangements, by Individual
Name	Steven I. Sarowitz
Title	Chairman of the Board
Adoption Date	September 15, 2023
Termination Date	December 31, 2024
Arrangement Duration	365 days
Aggregate Available	1,100,000
Trading Arrangement, Shares Based On Pricing Triggers [Member] | Steven R. Beauchamp [Member]
Trading Arrangements, by Individual
Aggregate Available	100,000
Trading Arrangement, Net Shares Acquired Upon Stock Option Exercise [Member] | Steven R. Beauchamp [Member]
Trading Arrangements, by Individual
Aggregate Available	122,116

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation, Consolidation and Use of Estimates	(a) Basis of Presentation, Consolidation and Use of Estimates These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes.
Interim Unaudited Consolidated Financial Information	(b) Interim Unaudited Consolidated Financial Information
Income Taxes	(c) Income Taxes Income taxes are accounted for in accordance with ASC 740, Income Taxes, using the asset and liability method. The Company’s provision for income taxes is based on the annual effective rate method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net-recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
Recently Issued Accounting Standards	(d) Recently Issued Accounting Standards

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	The following table disaggregates total revenues from contracts by Recurring fees and Implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Three Months Ended 2022 2023 Recurring fees $ 236,819 $ 279,899 Implementation services and other 8,587 11,786 Total revenues from contracts $ 245,406 $ 291,685
Schedule of changes in deferred revenue related to nonrefundable upfront fees	The following table summarizes the changes in deferred revenue (i.e., contract liability) related to these nonrefundable upfront fees as follows: Three Months Ended 2022 2023 Balance at beginning of the period $ 12,233 $ 22,617 Deferral of revenue 8,232 10,644 Revenue recognized (6,270) (9,121) Balance at end of the period $ 14,195 $ 24,140
Schedule of deferred contract costs and the related amortization expense	The following tables present the deferred contract costs and the related amortization expense for these deferred contract costs: Three Months Ended September 30, 2022 Beginning Balance Capitalized Costs Amortization Ending Balance Costs to obtain a new contract $ 182,543 $ 18,912 $ (10,367) $ 191,088 Costs to fulfill a contract 106,025 16,862 (5,363) 117,524 Total $ 288,568 $ 35,774 $ (15,730) $ 308,612 Three Months Ended September 30, 2023 Beginning Balance Capitalized Costs Amortization Ending Balance Costs to obtain a new contract $ 218,965 $ 17,760 $ (12,316) $ 224,409 Costs to fulfill a contract 153,366 18,455 (8,004) 163,817 Total $ 372,331 $ 36,215 $ (20,320) $ 388,226

Balance Sheet Information (Tabl

Balance Sheet Information (Tables)	3 Months Ended
	Sep. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Schedule of activity in the allowance for credit losses related to accounts receivable	Activity in the allowance for credit losses related to accounts receivable was as follows: Balance at June 30, 2023 $ 1,620 Charged to expense 181 Write-offs (49) Balance at September 30, 2023 $ 1,752
Schedule of capitalized internal-use software and accumulated amortization	Capitalized internal-use software and accumulated amortization were as follows: June 30, September 30, Capitalized internal-use software $ 248,738 $ 267,668 Accumulated amortization (162,611) (172,146) Capitalized internal-use software, net $ 86,127 $ 95,522
Schedule of property and equipment, net	The major classes of property and equipment, net were as follows: June 30, September 30, Office equipment $ 2,508 $ 2,743 Computer equipment 58,670 59,339 Furniture and fixtures 12,958 13,024 Software 11,127 11,336 Leasehold improvements 48,159 48,643 Time clocks rented by clients 8,533 8,921 Total 141,955 144,006 Accumulated depreciation (77,886) (80,665) Property and equipment, net $ 64,069 $ 63,341
Schedule of amortizable intangible assets and estimated useful lives	June 30, September 30, Weighted average useful life (years) Proprietary technology $ 43,129 $ 43,129 6.0 Client relationships 22,200 22,200 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 1,640 1,640 5.0 Total 68,569 68,569 Accumulated amortization (34,042) (36,578) Intangible assets, net $ 34,527 $ 31,991
Schedule of future amortization expense for acquired intangible assets	Future amortization expense for acquired intangible assets as of September 30, 2023 is as follows: Remainder of fiscal 2024 $ 7,407 Fiscal 2025 8,888 Fiscal 2026 7,269 Fiscal 2027 4,893 Fiscal 2028 3,029 Thereafter 505 Total $ 31,991
Schedule of components of accrued expenses	The components of accrued expenses were as follows: June 30, September 30, Accrued payroll and personnel costs $ 85,019 $ 71,528 Operating lease liabilities 7,800 8,423 Deferred revenue 24,539 26,141 Other 25,929 25,601 Total accrued expenses $ 143,287 $ 131,693

Corporate Investments and Fun_2

Corporate Investments and Funds Held For Clients (Tables)	3 Months Ended
	Sep. 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, 2023 Type of Issue Amortized cost Gross unrealized gains Gross unrealized losses 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 September 30, 2023 Type of Issue Amortized cost Gross unrealized gains Gross unrealized losses Fair value Cash and cash equivalents $ 305,031 $ — $ — $ 305,031 Funds held for clients' cash and cash equivalents 2,046,617 — — 2,046,617 Available-for-sale securities: Commercial paper 70,578 3 (59) 70,522 Corporate bonds 149,159 2 (2,123) 147,038 Asset-backed securities 36,051 7 (314) 35,744 Certificates of deposit 54,168 10 (35) 54,143 U.S. treasury securities 159,239 — (2,685) 156,554 U.S government agency securities 8,000 — (447) 7,553 Other 10,289 — (107) 10,182 Total available-for-sale securities 487,484 22 (5,770) 481,736 Total investments $ 2,839,132 $ 22 $ (5,770) $ 2,833,384
Schedule of the classification of investments	Classification of investments on the Unaudited Consolidated Balance Sheets was as follows: June 30, September 30, 2023 Cash and cash equivalents $ 288,767 $ 305,031 Funds held for clients 2,621,415 2,528,353 Total investments $ 2,910,182 $ 2,833,384
Schedule of available-for-sale securities that have been in an unrealized loss position for less than and greater than 12 months	Available-for-sale securities that had been in an unrealized loss position for a period of less and greater than 12 months as of June 30, 2023 and September 30, 2023 had fair market value as follows: June 30, 2023 Securities in an unrealized loss Securities in an unrealized loss Total Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (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 September 30, 2023 Securities in an unrealized loss Securities in an unrealized loss Total Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Commercial paper $ (59) $ 63,818 $ — $ — $ (59) $ 63,818 Corporate bonds (957) 107,622 (1,166) 32,451 (2,123) 140,073 Asset-backed securities (41) 20,986 (273) 10,459 (314) 31,445 Certificates of deposit (35) 37,913 — — (35) 37,913 U.S. treasury securities (1,023) 86,842 (1,662) 67,213 (2,685) 154,055 U.S. government agency securities — — (447) 7,553 (447) 7,553 Other (26) 2,768 (81) 3,564 (107) 6,332 Total available-for-sale securities $ (2,141) $ 319,949 $ (3,629) $ 121,240 $ (5,770) $ 441,189
Schedule of expected maturities of available-for-sale securities	Expected maturities of available-for-sale securities at September 30, 2023 were as follows: Amortized cost Fair value One year or less $ 207,177 $ 205,662 One year to two years 171,288 168,364 Two years to three years 88,935 87,761 Three years to five years 20,084 19,949 Total available-for-sale securities $ 487,484 $ 481,736

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Sep. 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	The fair value level for the Company’s cash and cash equivalents and available-for-sale securities was as follows: 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 $ — September 30, 2023 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 305,031 $ 305,031 $ — $ — Funds held for clients' cash and cash equivalents 2,046,617 2,046,617 — — Available-for-sale securities: Commercial paper 70,522 — 70,522 — Corporate bonds 147,038 — 147,038 — Asset-backed securities 35,744 — 35,744 — Certificates of deposit 54,143 — 54,143 — U.S. treasury securities 156,554 — 156,554 — U.S government agency securities 7,553 — 7,553 — Other 10,182 — 10,182 — Total available-for-sale securities 481,736 — 481,736 — Total investments $ 2,833,384 $ 2,351,648 $ 481,736 $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of changes in the number of shares available for grant under equity incentive plans	The following table summarizes changes in the number of shares available for grant under the Company’s equity incentive plan during the three months ended September 30, 2023: Number of Available for grant at July 1, 2023 11,998 RSUs granted (721) MSUs granted (86) Shares withheld in settlement of taxes and/or exercise price 146 Forfeitures 31 Available for grant at September 30, 2023 11,368
Schedule of stock-based compensation expense related to restricted stock units, market share units and the Employee Stock Purchase Plan	Stock-based compensation expense related to restricted stock units (“RSUs”), market share units (“MSUs”) and the Employee Stock Purchase Plan is included in the following line items in the accompanying unaudited consolidated statements of operations and comprehensive income: Three Months Ended September 30, 2022 2023 Cost of revenues $ 4,041 $ 4,943 Sales and marketing 9,559 9,225 Research and development 8,802 9,758 General and administrative 17,411 15,079 Total stock-based compensation expense $ 39,813 $ 39,005
Schedule of stock option activity	The table below presents stock option activity during the three months ended September 30, 2023: Outstanding Options Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Option balance at July 1, 2023 288 $ 23.63 1.2 $ 46,129 Options exercised (14) $ 17.02 Option balance at September 30, 2023 274 $ 23.95 0.9 $ 43,157 Options vested and exercisable at September 30, 2023 274 $ 23.95 0.9 $ 43,157
Schedule of restricted stock unit activity	The following table represents restricted stock unit activity during the three months ended September 30, 2023: Units Weighted average grant date fair value RSU balance at July 1, 2023 1,242 $ 225.30 RSUs granted 721 $ 195.06 RSUs vested (327) $ 179.23 RSUs forfeited (31) $ 201.67 RSU balance at September 30, 2023 1,605 $ 221.56
Schedule of market share unit activity	The following table represents market share unit activity during the three months ended September 30, 2023: Units Weighted average grant date fair value MSU balance at July 1, 2023 171 $ 320.38 MSUs granted 86 $ 256.66 MSUs vested (60) $ 178.04 MSU balance at September 30, 2023 197 $ 335.84
Summary of the assumptions used for estimating the grant date fair value of MSUs	The Company estimated the grant date fair value of the MSUs using a Monte Carlo simulation model that included the following assumptions: Three Months Ended 2022 2023 Valuation assumptions: Expected dividend yield —% —% Expected volatility 51.0% 44.5% Expected term (years) 3.04 3.04 Risk‑free interest rate 3.11% 4.58%

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Sep. 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: Three Months Ended 2022 2023 Numerator: Net income $ 30,352 $ 34,517 Denominator: Weighted-average shares used in computing net income per share: Basic 55,453 56,037 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units and market share units 1,211 844 Diluted 56,664 56,881 Net income per share: Basic $ 0.55 $ 0.62 Diluted $ 0.54 $ 0.61
Summary of anti-dilutive securities	The following table summarizes the outstanding restricted stock units and market share units as of September 30, 2022 and 2023 that were excluded from the diluted per share calculation for the periods presented because to include them would have been antidilutive: Three Months Ended 2022 2023 Market share units — 10 Restricted stock units 647 72 Total 647 82

Revenue - Disaggregation (Detai

Revenue - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Revenue
Period of term arrangements not cancellable by client	2 years
Disaggregation of revenue
Total revenues from contracts	$ 291,685	$ 245,406
Maximum
Revenue
Period of notice to cancel by client	60 days
Recurring fees
Disaggregation of revenue
Total revenues from contracts	$ 279,899	236,819
Implementation services and other
Disaggregation of revenue
Total revenues from contracts	$ 11,786	$ 8,587

Revenue - Deferred Revenue (Det

Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Changes in deferred revenue related to nonrefundable upfront fees
Beginning balance	$ 22,617	$ 12,233
Deferral of revenue	10,644	8,232
Revenue recognized	(9,121)	(6,270)
Ending balance	24,140	$ 14,195
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	18,695
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2025	5,035
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2026 and thereafter	$ 410
Maximum
Revenue
Amortization period of nonrefundable upfront implementation fees	24 months

Revenue - Deferred Contract Cos

Revenue - Deferred Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Deferred contract costs
Amortization period of capitalized contract costs	7 years
Beginning Balance	$ 372,331	$ 288,568
Capitalized Costs	36,215	35,774
Amortization	(20,320)	(15,730)
Ending Balance	388,226	308,612
Costs to obtain a new contract
Deferred contract costs
Beginning Balance	218,965	182,543
Capitalized Costs	17,760	18,912
Amortization	(12,316)	(10,367)
Ending Balance	224,409	191,088
Costs to fulfill a contract
Deferred contract costs
Beginning Balance	153,366	106,025
Capitalized Costs	18,455	16,862
Amortization	(8,004)	(5,363)
Ending Balance	$ 163,817	$ 117,524

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Remaining Performance Obligations
Minimum value of unsatisfied performance obligations on term-based contracts	$ 72,578
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Remaining Performance Obligations
Remaining performance obligation period	24 months

Balance Sheet Information - All

Balance Sheet Information - Allowance for Credit Losses for Accounts Receivable, Capitalized Internal-Use Software and Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Activity in the allowance for credit losses
Beginning balance	$ 1,620
Charged to expense	181	$ 266
Write-offs	(49)
Ending balance	1,752
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	267,668		$ 248,738
Accumulated amortization	(172,146)		(162,611)
Capitalized internal-use software, net	95,522		86,127
Property and equipment, net
Property and equipment, gross	144,006		141,955
Accumulated depreciation	(80,665)		(77,886)
Property and equipment, net	63,341		64,069
Depreciation expense	5,050	4,454
Cost of revenues
Capitalized internal-use software and accumulated amortization
Amortization of capitalized internal-use software	9,535	$ 7,042
Office equipment
Property and equipment, net
Property and equipment, gross	2,743		2,508
Computer equipment
Property and equipment, net
Property and equipment, gross	59,339		58,670
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	13,024		12,958
Software
Property and equipment, net
Property and equipment, gross	11,336		11,127
Leasehold improvements
Property and equipment, net
Property and equipment, gross	48,643		48,159
Time clocks rented by clients
Property and equipment, net
Property and equipment, gross	$ 8,921		$ 8,533

Balance Sheet Information - Goo

Balance Sheet Information - Goodwill, Intangible Assets and Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Changes in Goodwill
Changes in goodwill	$ 0
Amortizable intangible assets
Amortizable intangible assets, gross	68,569		$ 68,569
Accumulated amortization	(36,578)		(34,042)
Intangible assets, net	31,991		34,527
Amortization expense for acquired intangible assets	2,536	$ 2,771
Future amortization expense for acquired intangible assets
Remainder of fiscal 2024	7,407
Fiscal 2025	8,888
Fiscal 2026	7,269
Fiscal 2027	4,893
Fiscal 2028	3,029
Thereafter	505
Intangible assets, net	31,991		34,527
Components of accrued expenses
Accrued payroll and personnel costs	71,528		85,019
Operating lease liabilities	8,423		7,800
Deferred revenue	26,141		24,539
Other	25,601		25,929
Total accrued expenses	131,693		143,287
Proprietary technology
Amortizable intangible assets
Amortizable intangible assets, gross	$ 43,129		43,129
Weighted average useful life (years)	6 years
Client relationships
Amortizable intangible assets
Amortizable intangible assets, gross	$ 22,200		22,200
Weighted average useful life (years)	7 years 9 months 18 days
Non-solicitation agreements
Amortizable intangible assets
Amortizable intangible assets, gross	$ 1,600		1,600
Weighted average useful life (years)	3 years 1 month 6 days
Trade names
Amortizable intangible assets
Amortizable intangible assets, gross	$ 1,640		$ 1,640
Weighted average useful life (years)	5 years

Corporate Investments and Fun_3

Corporate Investments and Funds Held For Clients - Reconciliation (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022
Corporate Investments and Funds Held for Clients
Amortized cost of cash and cash equivalents	$ 305,031	$ 288,767
Fair value of cash and cash equivalents	305,031	288,767	$ 65,484
Amortized cost of funds held for clients' cash and cash equivalents	2,046,617	2,132,545
Gross unrealized gains on funds held for clients' cash and cash equivalents	0	0
Gross unrealized losses on funds held for clients' cash and cash equivalents	0	0
Fair value of funds held for clients' cash and cash equivalents	2,046,617	2,132,545	$ 1,891,615
Available-for-sale securities:
Amortized cost	487,484	494,741
Gross unrealized gains	22	45
Gross unrealized losses	(5,770)	(5,916)
Fair value	481,736	488,870
Total investments at amortized cost	2,839,132	2,916,053
Total investments gross unrealized gains	22	45
Total investments gross unrealized losses	(5,770)	(5,916)
Total investments	2,833,384	2,910,182
Commercial paper
Available-for-sale securities:
Amortized cost	70,578	110,003
Gross unrealized gains	3	12
Gross unrealized losses	(59)	(138)
Fair value	70,522	109,877
Corporate bonds
Available-for-sale securities:
Amortized cost	149,159	112,262
Gross unrealized gains	2	18
Gross unrealized losses	(2,123)	(1,867)
Fair value	147,038	110,413
Asset-backed securities
Available-for-sale securities:
Amortized cost	36,051	30,061
Gross unrealized gains	7	10
Gross unrealized losses	(314)	(337)
Fair value	35,744	29,734
Certificates of deposit
Available-for-sale securities:
Amortized cost	54,168	68,247
Gross unrealized gains	10	5
Gross unrealized losses	(35)	(93)
Fair value	54,143	68,159
U.S. treasury securities
Available-for-sale securities:
Amortized cost	159,239	158,839
Gross unrealized gains	0	0
Gross unrealized losses	(2,685)	(2,839)
Fair value	156,554	156,000
U.S government agency securities
Available-for-sale securities:
Amortized cost	8,000	8,000
Gross unrealized gains	0	0
Gross unrealized losses	(447)	(513)
Fair value	7,553	7,487
Other
Available-for-sale securities:
Amortized cost	10,289	7,329
Gross unrealized gains	0	0
Gross unrealized losses	(107)	(129)
Fair value	$ 10,182	$ 7,200

Corporate Investments and Fun_4

Corporate Investments and Funds Held For Clients - Classification (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Corporate Investments and Funds Held for Clients
Cash and cash equivalents	$ 305,031	$ 65,484	$ 288,767
Funds held for clients	2,528,353		2,621,415
Total investments	2,833,384		2,910,182
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(2,141)		(2,305)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	319,949		344,035
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(3,629)		(3,611)
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	121,240		104,818
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(5,770)		(5,916)
Fair value of available-for-sale securities in unrealized loss positions	441,189		448,853
Credit impairment losses	0	0
Realized gains or losses	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	(59)		(138)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	63,818		96,665
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
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(59)		(138)
Fair value of available-for-sale securities in unrealized loss positions	63,818		96,665
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	(957)		(695)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	107,622		71,089
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(1,166)		(1,172)
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	32,451		32,807
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(2,123)		(1,867)
Fair value of available-for-sale securities in unrealized loss positions	140,073		103,896
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	(41)		(233)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	20,986		23,313
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(273)		(104)
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	10,459		2,038
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(314)		(337)
Fair value of available-for-sale securities in unrealized loss positions	31,445		25,351
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	(35)		(93)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	37,913		52,254
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
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(35)		(93)
Fair value of available-for-sale securities in unrealized loss positions	37,913		52,254
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	(1,023)		(1,075)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	86,842		95,388
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(1,662)		(1,764)
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	67,213		60,612
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(2,685)		(2,839)
Fair value of available-for-sale securities in unrealized loss positions	154,055		156,000
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		0
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	0		0
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(447)		(513)
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	7,553		7,487
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(447)		(513)
Fair value of available-for-sale securities in unrealized loss positions	7,553		7,487
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	(26)		(71)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	2,768		5,326
Gross unrealized losses on available-for-sale securities in unrealized loss positions for greater than 12 months	(81)		(58)
Fair value of available-for-sale securities in unrealized loss positions for greater than 12 months	3,564		1,874
Gross unrealized losses on available-for-sale securities in unrealized loss positions	(107)		(129)
Fair value of available-for-sale securities in unrealized loss positions	$ 6,332		$ 7,200

Corporate Investments and Fun_5

Corporate Investments and Funds Held For Clients - Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Expected maturities of available-for-sale securities, amortized cost
One year or less	$ 207,177
One year to two years	171,288
Two years to three years	88,935
Three years to five years	20,084
Total available-for-sale securities	487,484	$ 494,741
Expected maturities of available-for-sale securities, fair value
One year or less	205,662
One year to two years	168,364
Two years to three years	87,761
Three years to five years	19,949
Total available-for-sale securities	$ 481,736	$ 488,870

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022
Fair value measurement
Cash and cash equivalents	$ 305,031	$ 288,767	$ 65,484
Funds held for clients' cash and cash equivalents	2,046,617	2,132,545	$ 1,891,615
Available-for-sale securities:
Total available-for-sale securities	481,736	488,870
Total investments	2,833,384	2,910,182
Level 1
Fair value measurement
Cash and cash equivalents	305,031	288,767
Funds held for clients' cash and cash equivalents	2,046,617	2,132,545
Available-for-sale securities:
Total available-for-sale securities	0	0
Total investments	2,351,648	2,421,312
Level 2
Fair value measurement
Cash and cash equivalents	0	0
Funds held for clients' cash and cash equivalents	0	0
Available-for-sale securities:
Total available-for-sale securities	481,736	488,870
Total investments	481,736	488,870
Level 3
Fair value measurement
Cash and cash equivalents	0	0
Funds held for clients' cash and cash equivalents	0	0
Available-for-sale securities:
Total available-for-sale securities	0	0
Total investments	0	0
Commercial paper
Available-for-sale securities:
Total available-for-sale securities	70,522	109,877
Commercial paper | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Commercial paper | Level 2
Available-for-sale securities:
Total available-for-sale securities	70,522	109,877
Commercial paper | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Corporate bonds
Available-for-sale securities:
Total available-for-sale securities	147,038	110,413
Corporate bonds | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Corporate bonds | Level 2
Available-for-sale securities:
Total available-for-sale securities	147,038	110,413
Corporate bonds | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Asset-backed securities
Available-for-sale securities:
Total available-for-sale securities	35,744	29,734
Asset-backed securities | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Asset-backed securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	35,744	29,734
Asset-backed securities | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Certificates of deposit
Available-for-sale securities:
Total available-for-sale securities	54,143	68,159
Certificates of deposit | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Certificates of deposit | Level 2
Available-for-sale securities:
Total available-for-sale securities	54,143	68,159
Certificates of deposit | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
U.S. treasury securities
Available-for-sale securities:
Total available-for-sale securities	156,554	156,000
U.S. treasury securities | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
U.S. treasury securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	156,554	156,000
U.S. treasury securities | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
U.S government agency securities
Available-for-sale securities:
Total available-for-sale securities	7,553	7,487
U.S government agency securities | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
U.S government agency securities | Level 2
Available-for-sale securities:
Total available-for-sale securities	7,553	7,487
U.S government agency securities | Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Other
Available-for-sale securities:
Total available-for-sale securities	10,182	7,200
Other | Level 1
Available-for-sale securities:
Total available-for-sale securities	0	0
Other | Level 2
Available-for-sale securities:
Total available-for-sale securities	10,182	7,200
Other | Level 3
Available-for-sale securities:
Total available-for-sale securities	$ 0	$ 0

Debt (Details)

Debt (Details) - Five-year revolving credit agreement - Senior secured debt - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Aug. 31, 2022
Debt
Maximum borrowing capacity			$ 550,000
Maximum borrowing capacity, subject to additional lender commitments and satisfaction of other requirements			$ 825,000
Borrowings under credit facility	$ 0	$ 0
Minimum
Debt
Interest coverage ratio			2
Maximum
Debt
Net total leverage ratio			4
Net total leverage ratio with step-up			4.50
SOFR | Minimum
Debt
Margin on base rate			0.875%
SOFR | Maximum
Debt
Margin on base rate			1.50%
Adjusted base rate | Minimum
Debt
Margin on base rate			0%
Adjusted base rate | Maximum
Debt
Margin on base rate			0.50%

Stock-Based Compensation - Gene

Stock-Based Compensation - General Information (Details) shares in Thousands	Sep. 30, 2023 shares
Equity Incentive Plans
Equity Incentive Plans
Number of shares of common stock reserved for issuance (in shares)	13,444
Number of shares allocated but not yet issued that are subject to outstanding options or awards (in shares)	2,076
2014 Incentive Plan
Equity Incentive Plans
Potential number of additional shares available for grant each year (as a percent)	4.50%

Stock-Based Compensation - Ince

Stock-Based Compensation - Incentive Plans Activity (Details) - Equity Incentive Plans shares in Thousands	3 Months Ended
	Sep. 30, 2023 shares
Shares Available for Grant
Beginning balance (in shares)	11,998
RSUs granted (in shares)	(721)
MSUs granted (in shares)	(86)
Shares withheld in net settlement for taxes and/or exercise price (in shares)	146
Forfeitures (in shares)	31
Ending balance (in shares)	11,368

Stock-Based Compensation - Comp

Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Stock-Based Compensation
Total stock-based compensation expense	$ 39,005	$ 39,813
Stock-based compensation expense capitalized in internal-use software costs	4,049	2,942
Cost of revenues
Stock-Based Compensation
Total stock-based compensation expense	4,943	4,041
Sales and marketing
Stock-Based Compensation
Total stock-based compensation expense	9,225	9,559
Research and development
Stock-Based Compensation
Total stock-based compensation expense	9,758	8,802
General and administrative
Stock-Based Compensation
Total stock-based compensation expense	$ 15,079	$ 17,411

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
	Jun. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Options Outstanding, Number of Shares
Beginning balance (in shares)		288
Options granted (in shares)		0
Options exercised (in shares)		(14)
Ending balance (in shares)	288	274
Options Outstanding, Weighted average exercise price
Beginning balance (in dollars per share)		$ 23.63
Options exercised (in dollars per share)		17.02
Ending balance (in dollars per share)	$ 23.63	$ 23.95
Options Additional Disclosures
Weighted average remaining contractual term (years)	1 year 2 months 12 days	10 months 24 days
Weighted average remaining contractual term of options vested and exercisable at the end of the period (years)		10 months 24 days
Aggregate intrinsic value at the beginning of the period		$ 46,129
Aggregate intrinsic value at the end of the period	$ 46,129	$ 43,157
Options vested and exercisable at the end of the period (in shares)		274
Options vested and exercisable at the end of the period, weighted average exercise price (in dollars per share)		$ 23.95
Options vested and exercisable, aggregate intrinsic value		$ 43,157
Total intrinsic value of options exercised		$ 2,494	$ 48,143

Stock-Based Compensation - RSU

Stock-Based Compensation - RSU activity (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
RSUs Outstanding, Units
Beginning balance (in shares) | shares	1,242
RSUs granted (in shares) | shares	721
MSUs vested (in shares) | shares	(327)
RSUs forfeited (in shares) | shares	(31)
Ending balance (in shares) | shares	1,605
RSUs Outstanding, Weighted average grant date fair value
Beginning balance (in dollars per share) | $ / shares	$ 225.30
RSUs granted (in dollars per share) | $ / shares	195.06
MSUs vested (in dollars per share) | $ / shares	179.23
RSUs forfeited (in dollars per share) | $ / shares	201.67
Ending balance (in dollars per share) | $ / shares	$ 221.56
Unrecognized Compensation Costs Not Yet Recognized, Net of Estimated Forfeitures [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested RSUs | $	$ 219,879
Weighted average period to recognize unrecognized compensation cost (in years)	2 years
Maximum
Equity Incentive Plans
Vesting period	4 years

Stock-Based Compensation - MSU

Stock-Based Compensation - MSU activity (Details) - Market share units shares in Thousands	3 Months Ended
	Sep. 30, 2023 $ / shares shares
Equity Incentive Plans
Vesting period	3 years
Percentage of target number of shares subject to each MSU	200%
MSUs Outstanding, Units
Beginning balance (in shares) | shares	171
MSUs granted (in shares) | shares	86
MSUs vested (in shares) | shares	(60)
Ending balance (in shares) | shares	197
MSUs Outstanding, Weighted average grant date fair value
Beginning balance (in dollars per share) | $ / shares	$ 320.38
MSUs granted (in dollars per share) | $ / shares	256.66
MSUs vested (in dollars per share) | $ / shares	178.04
Ending balance (in dollars per share) | $ / shares	$ 335.84

Stock-Based Compensation - MS_2

Stock-Based Compensation - MSU Information (Details) - Market share units - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Valuation assumptions:
Expected dividend yield	0%	0%
Expected volatility	44.50%	51%
Expected term (years)	3 years 14 days	3 years 14 days
Risk‑free interest rate	4.58%	3.11%
Unrecognized Compensation Costs Not Yet Recognized, Net of Estimated Forfeitures [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested MSUs	$ 21,666
Weighted average period to recognize unrecognized compensation cost (in years)	1 year 9 months 18 days

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective tax rate for the period (as a percent)	22.30%	(338.20%)
U.S. federal income tax rate (as a percent)	21%	21%

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 34,517	$ 30,352
Weighted-average shares used in computing net income per share:
Basic (in shares)	56,037	55,453
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units and market share units (in shares)	844	1,211
Diluted (in shares)	56,881	56,664
Net income per share:
Basic (in dollars per share)	$ 0.62	$ 0.55
Diluted (in dollars per share)	$ 0.61	$ 0.54
Anti-dilutive securities excluded (in shares)	82	647
Market share units
Net income per share:
Anti-dilutive securities excluded (in shares)	10	0
Restricted stock units
Net income per share:
Anti-dilutive securities excluded (in shares)	72	647