Cover
Cover - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Aug. 31, 2021 | Dec. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-40640 | ||
Entity Registrant Name | PAYCOR HCM, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-1813909 | ||
Entity Address, Address Line One | 4811 Montgomery Road | ||
Entity Address, City or Town | Cincinnati | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45212 | ||
City Area Code | 800 | ||
Local Phone Number | 381-0053 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | PYCR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 174,429,903 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE None. | ||
Entity Central Index Key | 0001839439 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2,634 | $ 828 |
Restricted cash and short-term investments | 0 | 12,017 |
Accounts receivable, net | 16,472 | 10,019 |
Deferred contract costs | 24,503 | 14,015 |
Prepaid expenses | 6,586 | 4,928 |
Other current assets | 1,516 | 3,819 |
Current assets before funds held for clients | 51,711 | 45,626 |
Funds held for clients | 670,315 | 614,115 |
Total current assets | 722,026 | 659,741 |
Property and equipment, net | 41,080 | 44,011 |
Goodwill | 750,802 | 733,801 |
Intangible assets, net | 355,323 | 462,527 |
Capitalized software, net | 31,310 | 23,106 |
Long-term deferred contract costs | 90,880 | 57,907 |
Other long-term assets | 19,532 | 26,690 |
Total assets | 2,010,953 | 2,007,783 |
Current liabilities: | ||
Accounts payable | 11,978 | 12,029 |
Accrued expenses and other current liabilities | 15,782 | 10,296 |
Accrued payroll and payroll related expenses | 32,305 | 16,215 |
Liability incentive awards | 0 | 11,842 |
Deferred revenue | 11,948 | 10,223 |
Revolving line-of-credit | 0 | 5,001 |
Current portion of long-term debt | 0 | 849 |
Current liabilities before client fund obligations | 72,013 | 66,455 |
Client fund obligations | 669,960 | 613,151 |
Total current liabilities | 741,973 | 679,606 |
Deferred income taxes | 76,138 | 104,770 |
Other long-term liabilities | 16,680 | 18,162 |
Long-term debt, net | 49,100 | 18,585 |
Total liabilities | 883,891 | 821,123 |
Commitments and contingencies (Note 18) | ||
Redeemable noncontrolling interest | 248,423 | 233,335 |
Stockholder’s equity: | ||
Common stock $0.001 par value per share, 500,000,000 shares authorized, 141,097,740 shares outstanding at June 30, 2021 and 151,718,000 outstanding at June 30, 2020, respectively | 141 | 152 |
Treasury stock, at cost, 10,620,260 and 0 shares at June 30, 2021 and June 30, 2020, respectively | (245,074) | 0 |
Preferred stock, $0.001 par value, 10,000 shares authorized, 7,715 and 0 shares outstanding at June 30, 2021 and June 30, 2020, respectively | 262,772 | 0 |
Additional paid in capital | 1,133,399 | 1,129,216 |
Accumulated deficit | (275,751) | (178,813) |
Accumulated other comprehensive income | 3,152 | 2,770 |
Total stockholder’s equity | 878,639 | 953,325 |
Total liabilities, redeemable noncontrolling interest and stockholder’s equity | $ 2,010,953 | $ 2,007,783 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 141,097,740 | 151,718,000 |
Treasury stock (in shares) | 10,620,260 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares outstanding (in shares) | 7,715 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Recurring and other revenue | $ 86,262 | $ 191,881 | $ 350,956 | $ 317,620 |
Interest income on funds held for clients | 3,343 | 9,977 | 1,821 | 10,289 |
Total revenues | 89,605 | 201,858 | 352,777 | 327,909 |
Cost of revenues | 31,939 | 77,566 | 154,487 | 139,683 |
Gross profit | 57,666 | 124,292 | 198,290 | 188,226 |
Operating expenses: | ||||
Sales and marketing | 30,479 | 56,660 | 106,123 | 99,998 |
General and administrative | 31,069 | 127,862 | 145,480 | 137,071 |
Research and development | 12,695 | 28,428 | 36,020 | 45,866 |
Total operating expenses | 74,243 | 212,950 | 287,623 | 282,935 |
Loss from operations | (16,577) | (88,658) | (89,333) | (94,709) |
Other (expense) income: | ||||
Interest expense | (1,036) | (1,119) | (2,541) | (1,780) |
Other | 175 | 423 | (1,420) | 9,004 |
Loss before benefit for income taxes | (17,438) | (89,354) | (93,294) | (87,485) |
Income tax benefit | (2,517) | (16,531) | (20,812) | (20,182) |
Net loss | (14,921) | (72,823) | (72,482) | (67,303) |
Less: Net loss attributable to noncontrolling interests | 0 | (5) | 0 | 0 |
Less: Accretion of redeemable noncontrolling interests | 0 | 15,700 | 24,438 | 22,890 |
Net loss attributable to Paycor HCM, Inc. | $ (14,921) | $ (88,518) | $ (96,920) | $ (90,193) |
Basic net loss attributable to Paycor HCM, Inc. per share (in dollars per share) | $ (0.58) | $ (0.66) | $ (0.59) | |
Diluted net loss attributable to Paycor HCM, Inc. per share (in dollars per share) | $ (0.58) | $ (0.66) | $ (0.59) | |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 151,718,000 | 146,364,225 | 151,718,000 | |
Diluted (in shares) | 151,718,000 | 146,364,225 | 151,718,000 | |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (14,921) | $ (72,823) | $ (72,482) | $ (67,303) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain on foreign currency translation | 0 | 0 | 425 | 0 |
Unrealized (losses) gains on available-for-sale securities, net of tax | (186) | 2,666 | (43) | 104 |
Other comprehensive income (loss), net of tax | (186) | 2,666 | 382 | 104 |
Comprehensive loss | (15,107) | (70,157) | (72,100) | (67,199) |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | (5) | 0 | 0 |
Less: Comprehensive income attributable to redeemable noncontrolling interests | 0 | 15,700 | 24,438 | 22,890 |
Comprehensive loss attributable to Paycor HCM, Inc. | $ (15,107) | $ (85,852) | $ (96,538) | $ (90,089) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Total Stockholder’s Equity before Noncontrolling Interest | Preferred Stock | Common Stock | Treasury Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest |
Common stock, shares outstanding, beginning balance (in shares) at Jun. 30, 2018 | 0 | 25,622,613 | |||||||
Stockholders' equity, beginning balance at Jun. 30, 2018 | $ 120,037 | $ 120,064 | $ 160,605 | $ 222 | $ (7) | $ 11,741 | $ (50,128) | $ (2,369) | $ (27) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to Paycor HCM, Inc. | (14,921) | (14,921) | (14,921) | ||||||
Other comprehensive income | (186) | (186) | (186) | ||||||
Stock-based compensation expense | 6,548 | 6,548 | 6,548 | ||||||
Other | 121 | 121 | 121 | ||||||
Stockholders' equity, ending balance at Nov. 01, 2018 | 111,599 | 111,626 | $ 160,605 | $ 222 | (7) | 18,289 | (64,928) | (2,555) | (27) |
Common stock, shares outstanding, ending balance (in shares) at Nov. 01, 2018 | 0 | 25,622,613 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to Paycor HCM, Inc. | (88,518) | ||||||||
Other comprehensive income | 2,666 | ||||||||
Stockholders' equity, ending balance at Jun. 30, 2019 | 1,038,570 | 1,038,610 | $ 152 | 1,124,310 | (88,518) | 2,666 | (40) | ||
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2019 | 151,718,000 | ||||||||
Common stock, shares outstanding, beginning balance (in shares) at Nov. 02, 2018 | 151,718,000 | ||||||||
Stockholders' equity, beginning balance at Nov. 02, 2018 | 1,120,651 | 1,120,678 | $ 152 | 1,120,526 | 0 | 0 | (27) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to Paycor HCM, Inc. | (88,523) | (88,518) | (88,518) | (5) | |||||
Other comprehensive income | 2,666 | 2,666 | 2,666 | ||||||
Issuance of stock for Nimble Acquisition, net | 3,784 | 3,784 | 3,784 | ||||||
Distribution to noncontrolling interest | (8) | (8) | |||||||
Stockholders' equity, ending balance at Jun. 30, 2019 | 1,038,570 | 1,038,610 | $ 152 | 1,124,310 | (88,518) | 2,666 | (40) | ||
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2019 | 151,718,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to Paycor HCM, Inc. | (90,193) | (90,193) | (90,193) | ||||||
Other comprehensive income | 104 | 104 | 104 | ||||||
Stock-based compensation expense | 4,906 | 4,906 | 4,906 | ||||||
Other | (62) | (102) | (102) | 40 | |||||
Stockholders' equity, ending balance at Jun. 30, 2020 | $ 953,325 | 953,325 | $ 0 | $ 152 | 0 | 1,129,216 | (178,813) | 2,770 | 0 |
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2020 | 151,718,000 | 0 | 151,718,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to Paycor HCM, Inc. | $ (96,920) | (96,920) | (96,920) | ||||||
Other comprehensive income | 382 | 382 | 382 | ||||||
Stock-based compensation expense | 4,172 | 4,172 | 4,172 | ||||||
Other | (18) | (18) | (18) | ||||||
Issuance of preferred stock, net | 262,772 | 262,772 | $ 262,772 | ||||||
Repurchase of common stock, at cost (in shares) | (10,620,260) | ||||||||
Repurchase of common stock | (245,074) | (245,074) | $ (11) | (245,074) | 11 | ||||
Stockholders' equity, ending balance at Jun. 30, 2021 | $ 878,639 | $ 878,639 | $ 262,772 | $ 141 | $ (245,074) | $ 1,133,399 | $ (275,751) | $ 3,152 | $ 0 |
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2021 | 141,097,740 | 7,715 | 141,097,740 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||||
Net loss | $ (14,921) | $ (72,823) | $ (72,482) | $ (67,303) |
Adjustments to reconcile net loss to net cash provided / (used) by operating activities: | ||||
Depreciation | 1,827 | 3,347 | 6,947 | 5,462 |
Amortization of intangible assets and software | 5,048 | 80,523 | 139,354 | 127,755 |
Amortization of deferred contract costs | 8,673 | 1,963 | 19,501 | 10,206 |
Stock-based compensation expense | 6,548 | 0 | 4,172 | 4,906 |
Amortization of debt acquisition costs | 604 | 854 | 637 | 620 |
Deferred tax benefit | (2,544) | (16,557) | (21,022) | (20,181) |
Bad debt expense | 71 | 525 | 1,791 | 1,812 |
Gain on sale of investments | 0 | 0 | (127) | (2,513) |
Gain on foreign currency exchange | 0 | 0 | (755) | 0 |
Loss (gain) on extinguishment of debt | 0 | 0 | 1,806 | (6,240) |
Changes in assets and liabilities, net of effects from acquisitions: | ||||
Accounts receivable | (81) | (2,227) | (7,731) | (2,584) |
Prepaid expenses and other current assets | (1,027) | (1,180) | 962 | 1,238 |
Other long-term assets | (767) | (46) | (1,726) | (240) |
Accounts payable | (916) | 4,015 | (244) | (1,407) |
Accrued liabilities | 10,167 | 9,785 | 5,430 | (13,973) |
Deferred revenue | 820 | 10,158 | (1,350) | 5,500 |
Other long-term liabilities | 0 | 2,392 | (1,428) | 8,808 |
Deferred contract costs | (14,505) | (32,313) | (62,962) | (51,778) |
Net cash provided / (used) by operating activities | (1,003) | (11,584) | 10,773 | 88 |
Cash flows from investing activities: | ||||
Purchases of client funds available-for-sale securities | (12,120) | (341,396) | (237,054) | (571,385) |
Proceeds from sale and maturities of client funds available-for-sale securities | 109,492 | 494,775 | 235,768 | 722,588 |
Purchase of property and equipment | (571) | (1,378) | (3,335) | (7,833) |
Acquisition of intangible assets | 0 | 0 | (9,252) | (2,995) |
Acquisition of Paycor, Inc. | 0 | (901,407) | 0 | 0 |
Acquisition of Nimble Software Systems, Inc., net of cash acquired | 0 | (10,550) | 0 | 0 |
Acquisition of Paltech Solutions, Inc., net of cash acquired | 0 | 0 | 16,740 | 0 |
Internally developed software costs | (6,701) | (12,083) | (21,968) | (18,846) |
Net cash (used) / provided by investing activities | 90,100 | (772,039) | (52,581) | 121,529 |
Cash flows from financing activities: | ||||
Net change in cash and cash equivalents held to satisfy client funds obligations | (291,320) | 190,206 | 25,983 | (29,803) |
Capital contribution (to)/ from Apax Transaction | 0 | 770,659 | 0 | |
Capital contribution (to)/ from Apax Transaction | (63) | |||
Payment of contingent consideration | 0 | 0 | (3,000) | 0 |
Proceeds from promissory note with related party | 0 | 0 | 64,989 | 0 |
Repayment of promissory note with related party | 0 | 0 | (64,989) | 0 |
Proceeds from line-of-credit | 39,000 | 204 | 107,020 | 114,127 |
Repayments of line-of-credit | (31,000) | (204) | (62,921) | (109,126) |
Proceeds from debt | 0 | 0 | 25,000 | 20,000 |
Repayments of debt | (186) | (376) | (44,517) | (15,886) |
Proceeds from issuance of preferred stock, net | 0 | 0 | 262,772 | 0 |
Purchase of treasury stock at cost | 0 | 0 | (245,074) | 0 |
Proceeds from issuance of noncontrolling interest | 0 | 194,745 | 0 | 0 |
Dividends paid to noncontrolling interests | 0 | 0 | (9,350) | 0 |
Other financing activities | 0 | (2,900) | (597) | (129) |
Net cash provided / (used) by financing activities | (283,506) | 1,152,334 | 55,316 | (20,880) |
Impact of foreign exchange on cash and cash equivalents | 0 | 0 | 44 | 0 |
Net change in cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | (194,409) | 368,711 | 13,552 | 100,737 |
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, beginning of year | 271,409 | 77,000 | 546,448 | 445,711 |
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, end of year | 77,000 | 445,711 | 560,000 | 546,448 |
Supplemental disclosure of non-cash investing, financing and other cash flow information: | ||||
Capital expenditures in accounts payable | 192 | 2,025 | 129 | 1,032 |
Cash paid during the year for interest | 331 | 728 | 1,347 | 823 |
Reconciliation of cash, cash equivalents, restricted cash and short-term investments, and funds held for clients to the Consolidated Balance Sheets | ||||
Cash and cash equivalents | 6,157 | 9,989 | 2,634 | 828 |
Restricted cash and short-term investments | 0 | 20,592 | 0 | 12,017 |
Funds held for clients | 70,843 | 415,130 | 557,366 | 533,603 |
Total cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | $ 77,000 | $ 445,711 | $ 560,000 | $ 546,448 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ORGANIZATION AND DESCRIPTION OF BUSINESS: Paycor HCM, Inc. (“Paycor HCM”) and its subsidiaries is a cloud-based provider of human capital management (“HCM”) software solutions for small and medium-sized employers located primarily in the United States (“U.S.”). Solutions provided include payroll, workforce management and human resources (“HR”) related services such as talent management, reporting and analytics and other payroll-related services. Services are generally provided in a Software-as-a-Service (“SaaS”) delivery model utilizing a cloud-based platform. Paycor HCM is a holding company with no operating assets or operations and was formed on August 24, 2018 to effect the acquisition of Paycor, Inc. and its subsidiaries (“Paycor”). On September 7, 2018, Paycor HCM, through its subsidiary companies, entered into the Agreement and Plan of Merger to acquire Paycor (the “Apax Acquisition”). The Apax Acquisition closed on November 2, 2018, the acquisition date. Paycor HCM is owned and controlled by Pride Aggregator, L.P. which is controlled by a syndication led by Apax Partners L.P. (“Apax”), a private equity firm, with a noncontrolling interest of a subsidiary company held by accredited individuals (as defined by SEC rules and regulations). As a result of the Apax Acquisition, Paycor is an indirect controlled subsidiary of Paycor HCM. As a result of the Apax Acquisition, Paycor HCM was determined to be the accounting acquirer and Paycor’s historical assets and liabilities are reflected at fair value as of November 2, 2018. The financial information for the period after November 2, 2018, represents the consolidated financial information of the “Successor” company. Prior to November 2, 2018, the consolidated financial statements include the accounts of the “Predecessor” company. References to the “Successor 2019 Period” refer to the period from November 2, 2018 through June 30, 2019. References to the “Predecessor 2019 Period” refer to the period from July 1, 2018 through November 1, 2018. Due to the change in the basis of accounting resulting from the application of the acquisition method of accounting, the Predecessor’s consolidated financial statements and the Successor’s consolidated financial statements are not comparable. Unless the context otherwise indicates, the term “Company” and other similar terms mean (a) prior to the Apax Acquisition, Paycor and its subsidiaries and (b) after the Apax Acquisition, Paycor HCM and its subsidiaries, including Paycor. In connection with the Company’s July 2021 initial public offering (“IPO”), discussed in Note 20 - Subsequent Events, the Company executed a 1,517.18 for 1 share stock split (“IPO Stock Split”) relating to its common stock. In connection with the IPO Stock Split, the Company increased its common stock authorization from 200,000 to 500,000,000 shares. As a result of the IPO Stock Split, the Company had 141,097,740 common shares outstanding, with a par value of $0.001 per share. All share and per share amounts have been retroactively adjusted in the Successor periods to reflect the IPO Stock Split. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of presentation and consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying financial statements are presented on a consolidated basis for all periods presented. All intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The Company utilizes estimates and assumptions in determining the fair value of its common stock, which is a significant input in determining the fair value of stock-based compensation. Prior to the July 2021 IPO, the Board of Directors determined the estimated fair value of the Company’s common stock contemporaneous with grants of stock-based compensation based on a number of objective and subjective factors, including external market conditions, the enterprise value of the business at the time of acquisition by Apax, and the likelihood of achieving a liquidity event, such as an initial public offering or sale of the Company. Fair value was estimated using the guideline public company method. Valuation methodologies include estimates and assumptions that require the Company’s judgment. These estimates include assumptions regarding future performance. Significant changes to the key assumptions used in the valuations could result in different fair values of common stock at each valuation date. The Company’s results can also be affected by economic, political, legislative, regulatory and legal actions, including but not limited to health epidemics and pandemics and the resulting economic impact, including the impact from the COVID-19 pandemic. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, and government fiscal policies can have a significant effect on operations. While the Company maintains reserves for anticipated liabilities and carries various levels of insurance, the Company could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings. Concentrations of risk The Company regularly maintains deposits in banks which may, at times, exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company mitigates exposure to credit risk by placing cash and cash equivalents with highly rated financial institutions. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents. No individual client represents more than 1% of total revenues. The majority of all revenues are generated by clients in the United States. Cash and cash equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original issue maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value given the short-term maturity of those instruments. Restricted cash and short-term investments The Company designated a portion of cash received from the Apax Acquisition as restricted within the consolidated balance sheets since the cash and short-term investments are being held for the settlement of the cash-based compensation awards by the employees upon vesting. The short-term investments consist of U.S. Treasury Notes, direct obligations of U.S. government agencies and high-grade corporate bonds. As of June 30, 2021, all restricted cash received in the Apax Acquisition has been liquidated through the settlement of cash-based liability compensation awards. Funds held for clients 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 consist of cash and cash equivalents and debt-security investments. Debt-security investments are classified as available-for-sale and are recorded at fair value, and consist of U.S. Treasury Notes, direct obligations of U.S. government agencies such as the Federal Home Loan Bank, the Federal National Mortgage Association and the Federal Farm Credit Bank, high grade corporate bonds, FDIC insured certificates of deposit, and other short-term and long-term investments. At June 30, 2021 and 2020, all the Company’s corporate bond investments are rated investment grade or better. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying client obligations to remit funds relating to payroll and payroll tax filing services. Unrealized gains and losses, net of applicable income taxes, are reported as other comprehensive income (loss) in the consolidated statements of comprehensive loss. Realized gains and losses on the sale of securities are determined by specific identification of the security’s cost basis. Client fund obligations 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 consolidated balance sheets at the time the Company obtains the funds from clients. The client fund obligations represent the liabilities that will be remitted to the appropriate client employees, taxing authorities and other parties within one year of the balance sheet date. Accounts receivable, net Accounts receivable balances are shown on the consolidated balance sheets net of the allowance for doubtful accounts of $2,402 and $1,217 as of June 30, 2021 and 2020, respectively. The allowance for doubtful accounts considers factors such as historical experience, credit quality, age of the accounts receivable balance and current and forecasted economic conditions that may affect a customer’s ability to pay. The Company performs ongoing credit evaluations and generally requires no collateral from clients. Management reviews individual accounts as they become past due to determine collectability. The allowance for doubtful accounts is adjusted periodically based on management’s consideration of past due accounts. Individual accounts are charged against the allowance when all reasonable collection efforts have been exhausted. Property and equipment, net Property and equipment are recorded at cost. Depreciation on the property and equipment is computed using the straight-line method over the following estimated useful lives: Computers, equipment and software 3 to 5 years Office equipment 5 to 7 years Furniture and fixtures 7 years Leasehold improvements Over lease term Land improvements 15 years Building 30 years Long-lived assets, including 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 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. No impairment was recorded for any periods presented. Goodwill and intangible assets, net 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. The Company performs an annual impairment review of goodwill in its fiscal fourth quarter and additional impairment reviews when events and circumstances indicate it is more likely than not that an impairment may have occurred. The Company assesses goodwill for impairment at the consolidated level, which represents its single reporting unit. In evaluating goodwill for impairment, the Company has the option to first perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of its single reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance, among others. Under a quantitative assessment, fair value of the Company’s single reporting unit is estimated using a weighted methodology considering the output from both the income and market approaches. The income approach incorporates the use of a discounted cash flow (“DCF”) analysis. A number of judgments are involved in the application of the DCF model, including projections of business performance, weighted average cost of capital, and terminal values. The market approach is performed using the Guideline Public Companies method which is based on earnings multiple data derived from publicly traded peer group companies. The Company elected to perform a qualitative assessment during fiscal 2021 and a quantitative assessment during fiscal 2020, and determined for both periods that the fair value of the Company significantly exceeded its carrying amount. Other intangible assets principally consist of acquired software, customer relationships and trade names and are carried at cost, less accumulated amortization. These intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company tests intangible assets for potential impairment in a manner consistent with other long-lived assets when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. No impairment was recorded for any periods presented. Capitalized software, net The Company has developed payroll and human resources software to provide its clients with the Company’s services. Capitalized costs include external direct costs of materials and services associated with developing or obtaining internal-use computer software and certain payroll and payroll-related costs for employees who are directly associated with internal-use computer software projects. Expenditures for software purchases and software developed or obtained for internal-use are capitalized and amortized on a straight-line basis over the estimated product life, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. Revenue recognition Revenues are recognized when control of the promised goods or services is transferred to clients in an amount that reflects the consideration the Company is entitled to for those goods or services. The Company derives its revenue from contracts predominantly from recurring and non-recurring service fees. The majority of its agreements are generally cancellable by the client on 30 days’ notice. Recurring fees are derived from payroll, workforce management, and HR-related cloud-based computing services. The majority of the Company’s recurring fees are satisfied over time as the services are provided during each client’s payroll period, and the timing of revenue recognition for these fees is consistent with the timing of invoicing as they occur simultaneously upon the client payroll processing period or by month. The performance obligations related to payroll services are delivered based upon the payroll frequency of the client with the fee charged and collected based on a per-employee-per-month or per-employee-per-payroll basis. The performance obligations related to workforce management and HR-related services are generally satisfied each month with the fee charged and collected based on a per-employee-per-month basis. For subscription-based fees, which can include payroll, workforce management, and HR-related services, the Company recognizes the applicable recurring fees each month with the fee charged and collected based on a per-employee-per-month basis. Non-recurring service fees consist mainly of nonrefundable implementation fees. The implementation activities involve setting the client up and loading data into the Company’s cloud-based modules. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract beyond the normal 30-day contractual period without payment of an additional upfront implementation fee. Implementation fees are deferred and recognized as revenue over the period to which the material right exists, which is the period the client is expected to benefit from not having to pay an additional nonrefundable implementation fee upon renewal of the service. 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 consolidated statements of operations. Interest on funds held for clients is earned primarily on funds that are collected from clients before due dates for payroll tax administration services and for employee payment services and invested until remittance to the applicable tax or regulatory agencies or client employees. The interest earned on these funds is included in total revenue within the consolidated statements of operations because the collecting, holding, and remitting of these funds are components of providing these services. Cost of revenues Cost of revenues includes costs relating to the provision of ongoing customer support and implementation activities, payroll tax filing, distribution of printed checks and other materials providing the Company’s payroll and other HCM solutions. These costs primarily consist of expenses relating to associates who service customers, including employee-related costs, as well as third-party processing fees, delivery costs, hosting costs, and bank fees associated with client fund transfers. The Company capitalizes costs to fulfill a contract related to its products if they are identifiable, generate or enhance resources used to satisfy future performance obligations and are expected to be recovered. The Company utilizes the portfolio approach based on the period in which the costs are incurred to account for the cost of fulfilling a contract. Capitalized costs to fulfill a contract are amortized over the expected period of benefit, which is generally six years based on the Company’s average client life, derived from analyzing client attrition rates using historical data as well as other qualitative factors, including rate of technological changes. The expected period of benefit has been determined to be the average client life primarily because the Company does not incur any additional costs to fulfill contracts upon renewal. The Company recognizes fulfillment costs when an existing client purchases additional services. The additional costs only relate to the additional services purchased and do not relate to the renewal of previous services. The Company continues to expense certain costs to fulfill a contract if those costs do not meet the capitalization criteria. Sales and marketing Sales and marketing expenses consist primarily of employee-related expenses for the Company’s direct sales and marketing staff, including employee-related costs, marketing, advertising and promotion expenses, and other related costs. Advertising and promotion costs are expensed as incurred. Advertising and promotion expense totaled approximately $17,964, $14,874, $10,964 and $3,777 for the year ended June 30, 2021, the year ended June 30, 2020, Successor 2019 Period and Predecessor 2019 Period, respectively. The Company defers certain commission costs that meet the capitalization criteria. The Company utilizes the portfolio approach based on the period in which the commissions are incurred to account for the cost of obtaining a contract. Capitalized costs to obtain a contract are amortized over the expected period of benefit, which is generally six years based on the Company’s average client life, derived from analyzing client attrition rates using historical data as well as other qualitative factors, including rate of technological changes. The expected period of benefit approximates the average client life primarily because the Company does not incur any additional costs to obtain contracts upon renewal. General and administrative General and administrative expenses consist primarily of employee-related costs, including employee-related costs for the Company’s administrative, finance, accounting, legal and human resources departments. Additional expenses include consulting and professional fees, occupancy costs, insurance, and other corporate expenses. Research and development Research and development expenses consist primarily of employee-related expenses for the Company’s software development and product management staff. Additional expenses include costs related to the development, maintenance, quality assurance and testing of new technologies, and ongoing refinement of the Company’s existing solutions. Research and development expenses, other than internal-use software costs qualifying for capitalization, including costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. The Company capitalizes a portion of its development costs related to internal-use software, which are amortized over a period of three years into cost of revenues. The timing of the Company’s capitalized development projects may affect the amount of development costs expensed in any given period. The table below sets forth the amounts of capitalized and expensed research and development costs for the year ended June 30, 2021, the year ended June 30, 2020, Successor 2019 Period and Predecessor 2019 Period: Successor Predecessor Year Ended June 30, Year Ended June 30, Period from Period from Capitalized software $ 21,228 $ 18,846 $ 12,083 $ 6,701 Research and development expenses $ 36,020 $ 45,866 $ 28,428 $ 12,695 Interest expense Interest expense consists primarily of interest payments and accruals relating to outstanding borrowings. Other (expense) income Other (expense) income generally consists of other income and expense items outside of the Company’s normal operations, such as realized gains or losses on the sale of certain positions of funds held for clients, gains or losses on the extinguishment of debt and expenses relating to the Company’s financing arrangements. Stock-based compensation The Company recognizes all employee and director stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of actual forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Monte Carlo simulation model that uses assumptions including expected volatility, expected term and the expected risk-free rate of return. The Company has determined that the Monte Carlo simulation model, as well as the underlying assumptions used in its application, is appropriate in estimating the fair value of its award grants. Loss per share Basic loss per share is computed by dividing net loss attributable to Paycor HCM, Inc. by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed by dividing net loss attributable to Paycor HCM, Inc. by the weighted-average number of common shares outstanding during the period and the impact of securities that would have a dilutive effect, if any. See Note 15—Net Loss Per Share for further discussion. Income taxes The Company accrues income taxes payable or refundable and recognizes deferred tax assets and liabilities based on differences between the book and tax basis of assets and liabilities. The Company measures deferred tax assets and liabilities using enacted rates in effect for the years in which the differences are expected to reverse and recognizes the effect of a change in enacted rates in the period of enactment. The Company recognizes deferred tax assets to the extent it believes 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 recent results of operations. When uncertain tax positions exist, the Company recognizes the benefit of tax positions to the extent that the benefit will be more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position, as well as consideration of the available facts and circumstances. Interest associated with uncertain tax positions are recognized as a component of income tax expense. The Company has concluded all U.S. federal income tax matters through fiscal year 2020. The Internal Revenue Service (“IRS”) has closed the federal income tax audits through the stub period ended November 2, 2018. With few exceptions, state and local income taxes are no longer subject to examination by taxing authorities through the fiscal year 2017. Deferred IPO issuance costs Deferred issuance costs, which primarily consist of direct incremental legal and accounting fees relating to the IPO of the Company’s common stock, are capitalized. The deferred issuance costs will be offset against IPO proceeds upon the consummation of the offering, which closed on July 23, 2021. The Company capitalized and deferred approximately $2,423 in IPO issuance costs as of June 30, 2021, which are included within Other long-term assets within the consolidated balance sheets. Segments Operating segments are defined as components of an enterprise engaging in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business as a single operating segment at the consolidated level. Pending accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases” (Topic 842). This update amends existing accounting standards for lease accounting and requires lessees to recognize virtually all their leases on the balance sheet by recording a right-of-use asset and a lease liability (for other than short term leases). The Company is in the preliminary stages of gathering data and assessing the impact of the new lease standard. The Company anticipates that the adoption of this standard will materially affect the consolidated balance sheet and may require changes to the processes used to account for leases. The Company is evaluating the transition methods and will adopt this new standard in the fiscal year beginning July 1, 2022 based on its status as an emerging growth company. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” (Topic 326). This update establishes a new approach to estimate credit losses on certain types of financial instruments. The update requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The amended guidance will also update the impairment model for available-for-sale debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss. The Company is currently evaluating this standard and the potential effects of these changes to its consolidated financial statements and will adopt this new standard in the fiscal year beginning July 1, 2023 based on its status as an emerging growth company. |
REVENUE
REVENUE | 12 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE: The following table disaggregates revenue from contracts by recurring fees and implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Successor Predecessor Year ended June 30, Year ended June 30, Period from November 2, Period from July 1, 2018- Recurring fees $ 337,012 $ 309,948 $ 190,436 $ 83,043 Implementation services and other 13,944 7,672 1,445 3,219 Total revenues from contracts $ 350,956 $ 317,620 $ 191,881 $ 86,262 Deferred revenue The Company recognizes deferred revenue for nonrefundable upfront fees as well as for subscription services related to certain ancillary products invoiced prior to the satisfaction of the performance obligation. The nonrefundable upfront fees related to implementation services are typically included on the client’s first invoice. Implementation fees are deferred and recognized as revenue over an estimated 24-month period to which the material right exists, which is the period the client is expected to benefit from not having to pay an additional nonrefundable implementation fee upon renewal of the service. The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: Fiscal Year Ended June 30, 2021 2020 Balance, beginning of period $ 15,916 $ 10,158 Deferred revenue acquired 1,374 — Deferral of revenue 17,781 10,042 Revenue recognized (19,033) (4,284) Impact of foreign exchange 9 — Balance, end of period $ 16,047 $ 15,916 Deferred revenue is recorded within deferred revenue and other long-term liabilities on the consolidated balance sheets. The Company will recognize deferred revenue of $11,948 in 2022, $3,437 in 2023, and $662 thereafter. Deferred contract costs The following table presents the deferred contract costs balance and related amortization expense for these deferred contract costs. As of and for the Fiscal Year Ended June 30, 2021 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 32,233 $ 29,568 $ (8,875) $ 52,926 Costs to fulfill a contract 39,689 33,394 (10,626) 62,457 Total $ 71,922 $ 62,962 $ (19,501) $ 115,383 As of and for the Fiscal Year Ended June 30, 2020 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 13,357 $ 23,425 $ (4,549) $ 32,233 Costs to fulfill a contract 16,993 28,353 (5,657) 39,689 Total $ 30,350 $ 51,778 $ (10,206) $ 71,922 |
BUSINESS COMBINATION AND ASSET
BUSINESS COMBINATION AND ASSET ACQUISITION | 12 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION AND ASSET ACQUISITION | BUSINESS COMBINATION AND ASSET ACQUISITION: Acquisition of Paltech Solutions, Inc. On September 24, 2020, the Company entered into a share purchase agreement with Paltech Solutions, Inc. (doing business as “7Geese”), a performance management SaaS application, to acquire 100% of the equity interests (the “7Geese Acquisition”). The acquisition enables the Company to expand its current service offerings. The cash consideration was funded using proceeds from the issuance of the September 2020 Term Loan discussed in Note 9 – Debt Agreements and Letters of Credit. The acquisition was accounted for as a business combination. The purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair value at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, $1,661 of which is deductible for tax purposes. Goodwill consists primarily of the acquired workforce and growth opportunities, neither of which qualify as an intangible asset. The factors contributing to the recognition of goodwill were based on strategic benefits that are expected to be realized from the 7Geese Acquisition. The benefits include acquiring a software technology tailored to small and medium-sized businesses that can be integrated into the current suite of Company products. The preliminary purchase price is as follows: 7Geese Acquisition Cash consideration $ 16,847 Contingent consideration 3,000 Deferred consideration 2,900 Fair value of total consideration 22,747 Cash acquired (107) Net purchase price $ 22,640 Assets acquired: Accounts receivable $ 477 Other current assets 295 Property and equipment 64 Technology intangible assets 9,040 Other intangible assets 100 Other non-current assets 9 Total identifiable assets acquired 9,985 Liabilities assumed: Accounts payable (34) Accrued expenses (1,730) Deferred revenue (1,374) Total identifiable liabilities assumed (3,138) Goodwill 15,793 Fair value of total consideration transferred $ 22,640 The technology intangible assets have a weighted average useful life of 3 years. The contingent consideration related to the 7Geese Acquisition is up to a maximum of $3,000 in payments relating to the achievement of operational milestones within a three The deferred consideration related to the 7Geese Acquisition consists of a one-time payment due in October 2021. The Company incurred transaction costs of approximately $500 related to the 7Geese Acquisition during the year ended June 30, 2021. These costs were expensed as incurred in general and administrative expenses on the accompanying consolidated statements of operations. Asset Acquisition On February 4, 2021, the Company acquired payroll, timekeeping and HCM service customer relationships from another large provider of HCM services for an initial payment of approximately $9,300, which includes approximately $50 of transaction costs. As part of this asset purchase, the Company is required to make quarterly contingent payments and a final payment to the seller based on the revenue generated by the acquired clients over a 12-month period. |
BUSINESS COMBINATION AND ASSET ACQUISITION | BUSINESS COMBINATION AND ASSET ACQUISITION: Acquisition of Paltech Solutions, Inc. On September 24, 2020, the Company entered into a share purchase agreement with Paltech Solutions, Inc. (doing business as “7Geese”), a performance management SaaS application, to acquire 100% of the equity interests (the “7Geese Acquisition”). The acquisition enables the Company to expand its current service offerings. The cash consideration was funded using proceeds from the issuance of the September 2020 Term Loan discussed in Note 9 – Debt Agreements and Letters of Credit. The acquisition was accounted for as a business combination. The purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair value at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, $1,661 of which is deductible for tax purposes. Goodwill consists primarily of the acquired workforce and growth opportunities, neither of which qualify as an intangible asset. The factors contributing to the recognition of goodwill were based on strategic benefits that are expected to be realized from the 7Geese Acquisition. The benefits include acquiring a software technology tailored to small and medium-sized businesses that can be integrated into the current suite of Company products. The preliminary purchase price is as follows: 7Geese Acquisition Cash consideration $ 16,847 Contingent consideration 3,000 Deferred consideration 2,900 Fair value of total consideration 22,747 Cash acquired (107) Net purchase price $ 22,640 Assets acquired: Accounts receivable $ 477 Other current assets 295 Property and equipment 64 Technology intangible assets 9,040 Other intangible assets 100 Other non-current assets 9 Total identifiable assets acquired 9,985 Liabilities assumed: Accounts payable (34) Accrued expenses (1,730) Deferred revenue (1,374) Total identifiable liabilities assumed (3,138) Goodwill 15,793 Fair value of total consideration transferred $ 22,640 The technology intangible assets have a weighted average useful life of 3 years. The contingent consideration related to the 7Geese Acquisition is up to a maximum of $3,000 in payments relating to the achievement of operational milestones within a three The deferred consideration related to the 7Geese Acquisition consists of a one-time payment due in October 2021. The Company incurred transaction costs of approximately $500 related to the 7Geese Acquisition during the year ended June 30, 2021. These costs were expensed as incurred in general and administrative expenses on the accompanying consolidated statements of operations. Asset Acquisition On February 4, 2021, the Company acquired payroll, timekeeping and HCM service customer relationships from another large provider of HCM services for an initial payment of approximately $9,300, which includes approximately $50 of transaction costs. As part of this asset purchase, the Company is required to make quarterly contingent payments and a final payment to the seller based on the revenue generated by the acquired clients over a 12-month period. |
FUNDS HELD FOR CLIENTS
FUNDS HELD FOR CLIENTS | 12 Months Ended |
Jun. 30, 2021 | |
Funds Held For Clients [Abstract] | |
FUNDS HELD FOR CLIENTS | FUNDS HELD FOR CLIENTS: Funds held for clients are as follows: June 30, 2021 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 557,366 $ — $ — $ 557,366 U.S. Treasury and direct obligations of U.S. government agencies 28,757 92 (11) 28,838 Corporate bonds 50,188 1,900 (189) 51,899 Commercial paper 21,831 11 (6) 21,836 Other securities 9,821 629 (74) 10,376 $ 667,963 $ 2,632 $ (280) $ 670,315 June 30, 2020 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 533,603 $ — $ — $ 533,603 U.S. Treasury and direct obligations of U.S. government agencies 23,081 137 — 23,218 Corporate bonds 49,274 2,259 (10) 51,523 Other securities 5,387 391 (7) 5,771 $ 611,345 $ 2,787 $ (17) $ 614,115 Other securities are primarily comprised of collateralized and other mortgage obligations, municipal obligations, and certificates of deposit. Proceeds from sales and maturities of investment securities for the fiscal years ended June 30, 2021 and 2020, Successor 2019 Period, and Predecessor 2019 Period were approximately $235,768, $722,588, $494,775, and $109,492 respectively. The Company is exposed to interest rate risk as rate volatility will cause fluctuations in the earnings potential of future investments. The Company does not utilize derivative financial instruments to manage interest rate risk. The Company reviews its investments on an ongoing basis to determine if any are other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. The Company has no material individual securities that have been in a continuous unrealized loss position greater than twelve months. The Company believes these unrealized losses result from changes in interest rates rather than credit risk, and therefore does not believe these unrealized losses are other than temporarily impaired. Due within one year $ 614,574 Due after one year to two years 27,551 Due after two years to three years 18,646 Due after three years 9,544 Total $ 670,315 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET: Property and equipment at cost and accumulated depreciation were as follows: June 30, 2021 June 30, 2020 Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 13,427 9,271 Furniture and fixtures 4,596 4,777 Office equipment 2,337 1,142 Leasehold improvements 8,227 3,541 Construction in progress — 6,030 56,022 52,196 Accumulated depreciation and amortization (14,942) (8,185) Property and equipment, net $ 41,080 $ 44,011 |
CAPITALIZED SOFTWARE, NET
CAPITALIZED SOFTWARE, NET | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
CAPITALIZED SOFTWARE, NET | CAPITALIZED SOFTWARE, NET: Components of capitalized software was as follows: June 30, 2021 June 30, 2020 Capitalized software $ 52,945 $ 30,977 Accumulated amortization (21,635) (7,871) Capitalized software, net $ 31,310 $ 23,106 Amortization expense for capitalized software was approximately $13,764, $6,893, $978 and $4,540 for the fiscal years ended June 30, 2021 and 2020, Successor 2019 Period, and Predecessor 2019 Period, respectively. The following is a schedule of future amortization expense as of June 30, 2021: 2022 $ 16,674 2023 10,754 2024 3,882 2025 — 2026 — $ 31,310 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS: Goodwill represents the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired. The following details the changes in goodwill during the fiscal year ended June 30, 2021 and 2020: Balance at July 1, 2019 $ 733,733 Nimble Acquisition adjustment 68 Balance at June 30, 2020 $ 733,801 7Geese Acquisition 15,793 Impact of foreign exchange 1,208 Balance at June 30, 2021 $ 750,802 Components of intangible assets were as follows: June 30, 2021 June 30, 2020 Cost: Technology $ 140,665 $ 131,625 Customer relationships 434,983 425,659 Trade name 105,672 105,650 Total cost $ 681,320 $ 662,934 Accumulated amortization: Technology $ (116,669) $ (70,533) Customer relationships (190,538) (118,135) Trade name (18,790) (11,739) Total accumulated amortization $ (325,997) $ (200,407) Intangible assets, net $ 355,323 $ 462,527 Amortization expense for intangible assets was approximately $125,590, $120,862, $79,545 and $508 for the fiscal years ended June 30, 2021 and 2020, Successor 2019 Period and Predecessor 2019 Period, respectively. The following is a schedule of future amortization expense as of June 30, 2021: 2022 $ 100,488 2023 85,111 2024 80,391 2025 30,639 2026 7,043 Thereafter 51,651 $ 355,323 |
DEBT AGREEMENTS AND LETTERS OF
DEBT AGREEMENTS AND LETTERS OF CREDIT | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT AGREEMENTS AND LETTERS OF CREDIT | DEBT AGREEMENTS AND LETTERS OF CREDIT: The Company’s long-term debt consists of the following: Interest rate as of June 30, 2021 June 30, 2021 June 30, 2020 Maturity Date 2021 Credit Facility 2.23% $ 49,100 $ — June 2026 Refinanced Loan — 19,517 November 2022 Term Loan — — November 2023 Less: Unamortized debt issuance costs — (83) Total long-term debt (including current portion) 49,100 19,434 Less: Current portion — (849) Total long-term debt, net $ 49,100 $ 18,585 New Credit Agreement On June 11, 2021, Paycor, Inc. entered into a new credit agreement (the “2021 Credit Agreement”) with PNC Bank, National Association (“PNC”), Fifth Third, National Association, and other lenders party thereto, providing a $100,000 senior secured revolving credit facility (the “2021 Credit Facility” and the loans thereunder, the “2021 Loans”). The 2021 Credit Facility includes an “accordion” feature that allows the Company, under certain circumstances following an initial public offering, to increase the size of the 2021 Credit Facility up to $300,000. In connection with the 2021 Credit Agreement, the Company used the proceeds therefrom to repay in full all amounts outstanding under the Refinanced Loan (as defined below), the Term Loan (as defined below) and for working capital and other general corporate purposes. The 2021 Loans have variable interest rates. The interest rate on the 2021 Loans equals, at our option, either, (i) in the case of ABR borrowings, the highest of (a) the PNC prime rate, (b) the Federal Funds Rate plus 0.50%, and (c) the adjusted LIBOR with a maturity of one month, plus 1.00% (“ABR”) or (ii) in the case of LIBOR borrowings, the LIBOR rate, plus, in each case, an applicable margin of (A) prior to an initial public offering, (i) in the case of ABR borrowings, 0.95% per annum and (ii) in the case of LIBOR borrowings, 1.95% per annum or (B) following an initial public offering, (i) in the case of ABR borrowings, 0.375% per annum or (ii) in the case of LIBOR borrowings, 1.375% per annum, in each case, with step downs based on achievement of certain total leverage ratios. The 2021 Credit Facility requires the Company to pay a quarterly unused fee of (i) prior to an initial public offering, 0.25% and (ii) following an initial public offering, between 0.10% per annum and 0.175% per annum based on our total leverage ratio. The 2021 Credit Facility commitments will mature on June 11, 2026. Borrowings under the 2021 Credit Agreement are guaranteed by our subsidiary, Pride Guarantor Inc. and certain of our other subsidiaries. These borrowings are secured by liens and security interests on substantially all of the assets of existing and future material domestic subsidiaries of Pride Guarantor Inc. The 2021 Credit Facility contains financial covenants, which are reviewed for compliance on a quarterly basis, including a total leverage ratio financial covenant of 3.50 to 1.00 and an interest coverage ratio financial covenant of 3.00 to 1.00. As of June 30, 2021, the Company was in compliance with all covenants. As a result of the Company entering into the 2021 Credit Facility, the Company expensed approximately $2,195 primarily consisting of write-offs of previously deferred unamortized deferred financing fees and certain third party costs. Amounts expensed are recorded as other (expense) income -other on the consolidated statement of operations for the year ended June 30, 2021. Additionally, the Company capitalized approximately $342 of deferred financing fees for the year ended June 30, 2021 in connection with entering into the 2021 Credit Facility, which are included in other long-term assets within the consolidated balance sheets. Refinanced Loan On November 15, 2019, the Company closed on a refinancing of the debt related to its headquarters (“Refinanced Loan”). The Refinanced Loan amount was for $20,000 and required monthly principal and interest payments over a three The Refinanced Loan bore interest payable monthly at a rate of LIBOR plus 1.75% through maturity, and was secured by a mortgage on the land, building, building improvements and all related property, real and personal. The Refinanced Loan was subject to certain affirmative financial covenants relating to the debt service coverage ratio, liquidity amounts and other items. As of June 30, 2020, the Company was in compliance with all covenants related to the Refinanced Loan. The Refinanced Loan was paid in full in June 2021 in connection with the closing of the 2021 Credit Facility. Credit Agreement and Term Loan In November 2018, the Company entered into a credit agreement with Wells Fargo National Association (the “Credit Agreement”) providing a five The Company executed an amendment of its Credit Agreement on September 2, 2020 whereby the Company entered into an additional term loan of $25,000 (the “Term Loan”). The Company incurred $397 of costs related to the Term Loan such as closing costs, legal fees and origination fees. These costs were deferred and recorded as a direct deduction from the carrying amount of the debt liability. The costs were amortized into interest expense over the term of the related debt using the effective interest method. The Term Loan required quarterly principal repayments of approximately $63 beginning December 31, 2020. The Company was required to pay any remaining unpaid principal balance and all accrued and unpaid interest on the maturity date of November 2, 2023. The Term Loan bore interest, at the Company’s option, at a rate equal to: (i) LIBOR (subject to 1.0% floor) plus 4.25% margin prior to the third anniversary or 4.0% after the third anniversary or (ii) the greatest of (a) the Federal Funds Rate plus 0.5%, (b) LIBOR rate plus 1.0%, or (c) the Lender’s prime rate, plus 3.25% margin prior to the third anniversary or 3.0% after the third anniversary. As a result of the amendment, the interest rate on the Revolver was adjusted to bear interest at the same rate as the Term Loan. The proceeds from the Term Loan were used for general corporate purposes including permitted acquisitions and investments. The Company was in compliance with all applicable covenants in the Credit Agreement at June 30, 2020. The Credit Agreement was paid in full in June 2021 in connection with the closing of the 2021 Credit Facility. Promissory Note with Related Party In December 2020, in connection with the share repurchase discussed further in Note 13 – Capital Stock, the Company entered into a promissory note for $64,989 with Pride Aggregator L.P. (the “Intercompany Promissory Note”). The Intercompany Promissory Note was payable on demand and accrued interest at a rate of 0.15% per annum. The Company repaid the Intercompany Promissory Note in full in January 2021, concurrent with the closing of the January 2021 issuance of preferred stock. The Company had no outstanding letters of credit as of June 30, 2021 or June 30, 2020. |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES:The Company leases office space (except for its headquarters) and equipment under operating leases expiring on various dates through June 2030, with voluntary renewal options that can extend the term at the Company’s discretion. The following is a schedule of future annual minimum lease payments required under operating leases as of June 30, 2021: 2022 $ 5,775 2023 5,360 2024 3,970 2025 3,227 2026 3,104 Thereafter 5,601 $ 27,037 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS: U.S. GAAP defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques. Fair value is 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 fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company can access. Level 2 inputs are inputs (other than quoted prices included within Level 1) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability and rely on management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. The fair value of certain assets, such as nonfinancial assets, primarily long-lived assets, goodwill, intangible assets and certain other assets, are recognized or disclosed in connection with impairment evaluations. All non-recurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, and accounts payable approximated fair value as of June 30, 2021 and 2020, because of the relatively short maturity of these instruments. Additionally, the Company believes the fair value of the amounts outstanding under the Company’s 2021 Credit Facility as of June 30, 2021, and under the Refinanced Loan and Term Loan as of June 30, 2020, approximate carrying value because their variable interest rate terms correspond to the current market terms. The following table presents information on the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and June 30, 2020: June 30, 2021 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 557,366 $ — $ — $ 557,366 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S government agencies — 28,838 — 28,838 Corporate bonds — 51,899 — 51,899 Commercial Paper — 21,836 — 21,836 Other securities — 10,376 — 10,376 $ 557,366 $ 112,949 $ — $ 670,315 June 30, 2020 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 533,603 $ — $ — $ 533,603 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S government agencies — 23,218 — 23,218 Corporate bonds — 51,523 — 51,523 Other securities — 5,771 — 5,771 $ 533,603 $ 80,512 $ — $ 614,115 Available-for-sale securities included in Level 1 are valued using closing prices for identical instruments that are traded on active exchanges. Available-for-sale securities included in Level 2 are valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS: In connection with the Apax Acquisition, a subsidiary of the Company issued 200,000 shares of Series A Redeemable Preferred Stock (“Redeemable Preferred Stock”) to certain institutional investors, including Apax Partners and/or affiliates, a related party, and received proceeds of approximately $194,745, net of $5,255 in issuance costs. Dividends associated with the Redeemable Preferred Stock began accruing daily at the issuance date and were payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year. From the issuance date to the second anniversary of the issuance date, the Company had the option to pay the accrued dividends in cash on the applicable dividend payment date or to have such dividends accrue and be added to the then prevailing liquidation preference. Additionally, from the day after the second anniversary of the issuance date through the third anniversary of the issuance date, the Company was required pay at least 50% of the accrued dividends for the applicable dividend payment period in cash. Further, from the day after the third anniversary of the issuance date, the Company was required to pay 100% of the accrued dividends for the applicable dividend payment period in cash. There was a noncompliance penalty if the Company did not meet certain requirements resulting in the prevailing dividend rate automatically increasing by 2.00% per year and increasing by 1.00% each six months thereafter until all of the issued and outstanding shares of Redeemable Preferred Stock was redeemed or the event of noncompliance ceases. The dividends accrued based on a prevailing dividend rate, which was 3-month LIBOR plus a margin and adjusts accordingly. At any point in time, 3-month LIBOR could not be less than 1%. The dividend rate was 3-month LIBOR plus 8.875% from the day after the issuance date to the third anniversary of the issuance date. From the day after the third anniversary of the issuance date until there are no shares of Redeemable Preferred Stock outstanding, the dividend rate was 3-month LIBOR plus 8.375%. In the event that from the day after the second anniversary of the issuance date through the third anniversary of the issuance date the Company elected to pay 100% of the accrued dividend for the applicable dividend payment in cash, the prevailing dividend rate would have been 3-month LIBOR plus 8.375%. The Redeemable Preferred Stock was redeemable by the Company at any point in time, although payment of a premium was required under certain circumstances. Additionally, the Company could, at its option, redeem for cash any or all of the then outstanding Redeemable Preferred Stock, in whole at any time or in part from time to time, on or after May 2, 2020, at (i) a redemption price per share equal to 102.0% for the period of May 2, 2020 – November 1, 2020; 101.0% for the period November 2, 2020—November 1, 2021; and 100.0% for the period November 2, 2021 and thereafter, plus (ii) the amount of all accrued dividends for the then current and all prior dividend payment periods. The holders of the Redeemable Preferred Stock had the ability to redeem the stock upon the occurrence of certain events such as a change in control, an IPO, on or after the sixth anniversary of the issue date, or a trigger event, etc. often involving a premium. The Company analyzed the embedded call and put options and concluded they are closely associated with the debt host and therefore do not require bifurcation. Outside of the events mentioned, there is not a mandatory redemption date for the Redeemable Preferred Stock and as a result, the Company concluded that the sixth anniversary of the issuance date was the most probable redemption date at June 30, 2021, June 30, 2020 and Successor 2019 Period. On July 23, 2021, the Company completed its IPO. Upon the closing of the IPO, the Company used a portion of the proceeds to effect the redemption of all of the outstanding shares of the Redeemable Preferred Stock at a redemption price of 101% of the liquidation preference, or approximately $260,000. Classification The preferred shares issued and outstanding are accounted for as a redeemable noncontrolling interest in the mezzanine section on the Company’s consolidated balance sheets due to the shares being issued by a subsidiary of the Company and redemption features including a put option with the passage of time. Measurement The Company recorded the preferred shares at their issuance date fair value of $194,745, net of issuance costs. The carrying value as of June 30, 2021 and 2020 is determined based upon the most probable redemption event on the six As of the reporting date, there are no triggering, change of control, early redemption or monetization events that are probable that would require us to revalue the preferred shares. If the preferred shares were redeemed on the reporting date of June 30, 2021 and 2020, the required redemption values would be $258,480 and $243,070, respectively. The following table shows the change in the Company’s redeemable noncontrolling interests from July 1, 2019 to June 30, 2021: Balance at July 1, 2019 $ 210,445 Accretion of Redeemable Preferred Stock 22,890 Balance at June 30, 2020 233,335 Accretion of Redeemable Preferred Stock 24,438 Dividends Paid (9,350) Balance at June 30, 2021 $ 248,423 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK: Upon the Stock Split, the Company is authorized to issue 500,000,000 shares of common stock with a par value of $0.001 per share. The holders of the common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Subject to preferences that may be applicable to any outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared from time-to-time by the Board of Directors out of funds legally available for that purpose. In the event of liquidation, dissolution or winding up, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding. As of June 30, 2021 and 2020, there were 141,097,740 and 151,718,000 shares of common stock outstanding, respectively. The Board of Directors is authorized, subject to any limitations prescribed by law, without further vote or action by the stockholders, to issue from time to time shares of preferred stock in one or more series. Each such series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges as determined by the Board of Directors, which may include, among others, dividend rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. On December 29, 2020, the Company executed an agreement for the authorization of up to 10,000 shares of Series A Preferred Stock, $0.001 par value. On that same date, the Company completed a private placement of 5,143 shares of Series A Preferred Stock with certain institutional investors, which generated proceeds of approximately $180,005. Each share of Series A Preferred Stock has an initial liquidation preference of $35,000, subject to adjustment in accordance with the Company’s Amended and Restated Certificate of Incorporation. The Series A Preferred Stock, unless converted earlier at the option of the holder of the Series A Preferred Stock, automatically converts into shares of common stock upon (i) the closing of an underwritten public offering of the Company’s common stock, (ii) the direct listing of the Company’s common stock on a nationally-recognized securities exchange, or (iii) a merger involving a special purpose acquisition vehicle, commonly referred to as a special purpose acquisition company transaction (in each instance, subject to certain listing and valuation and dollar threshold requirements). The Series A Preferred Stock was initially convertible into shares of common stock on a 1,517.18 for 1 share basis, considering the IPO Stock Split, subject to adjustment in certain circumstances. The Series A Preferred Stock is not subject to redemption except in the case of certain sale or change of control events. Holders of Series A Preferred Stock were entitled to vote as a single class together with holders of the Company’s common stock on an as-converted basis. Subsequent to the Company’s Series A Preferred Stock issuance, the Company used the proceeds from the Series A Preferred Stock issuance and the Intercompany Promissory Note of $64,989 with Pride Aggregator L.P. to repurchase 10,620,260 shares of its common stock at a price of $23.07 per share for approximately $245,000. On January 20, 2021, the Company completed a follow-on private placement of 2,572 shares of Series A Preferred Stock with certain institutional investors, which generated proceeds of approximately $90,020. The Company incurred approximately $7,253 of expenses associated with both the December 2020 and January 2021 private placements, which were netted against the $270,025 of proceeds received. On July 23, 2021, the Company completed its IPO. Upon the closing of the IPO, the Series A Preferred Stock was converted into 11,705,039 shares of the Company’s common stock. In July 2021, the Company amended and restated its certificate of incorporation and authorized 50,000,000 shares of preferred stock with a par value of $0.001 per share. |
EQUITY COMPENSATION PLANS
EQUITY COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY COMPENSATION PLANS | EQUITY COMPENSATION PLANS: Liability incentive awards Prior to the Apax Acquisition, the Company had issued stock-based compensation awards to employees and outside directors under a plan that provided for the granting of stock options, stock appreciation rights, restricted stock, restricted share units, incentive stock options and other stock-based awards to attract and retain directors, consultants and employees. As part of the Apax Acquisition, vested awards were settled after the closing date at fair value. Unvested awards were cancelled and replaced with cash-based liability awards. Under the terms of the new awards, 50% of the unvested awards were accelerated to vest as of the Apax Acquisition and were paid after the closing date. The remaining 50% of unvested awards are earned and paid to holders according to the vesting dates of the replacement awards. During the year ended June 30, 2021 and 2020, Successor 2019 Period and Predecessor 2019 Period, $11,605, $8,957, $60,400 and $0 was paid, respectively. The Company accounted for the cancellation and replacement of the unvested stock-based compensation awards as a modification, as the classification of the awards was changed from equity to a liability. This modification required an assessment of the fair value of the replacement awards based upon the settlement value. The settlement value of the unvested awards was allocated between the Apax Acquisition purchase price and future compensation expense based upon the pre- acquisition service as a percentage of the greater of the total service period or the original service period of the acquiree’s replaced award. Amounts allocated for future compensation are recognized as compensation costs over the remaining requisite service period and are recorded to general and administrative expense on the consolidated statement of operations. The Company recognized compensation (benefits) costs related to these liability incentive awards for the year ending June 30, 2021, June 30, 2020 and Successor 2019 Period of $(189), $3,055 and $29,047, respectively. At June 30, 2021 and 2020, the Company maintains a liability for these awards of $0 and $11,842, respectively. There is no unamortized compensation expense for these awards as of June 30, 2021. Equity awards Subsequent to the Apax Acquisition, the Company established three stock-based compensation plans (the “2019 Plans”) which provide for grants of incentive units to persons who are associates, officers or directors of the Company or any of its subsidiaries. The 2019 Plans include Pride Aggregator, L.P. Management Equity Plan (“MEP”) and two cash Long Term Incentive Plans (“LTIPs”). The Company has granted Long Term Incentive Plan units (“LTIP Units”) under its Pride Aggregator, L.P. Top Talent Incentive Plan and Sales Top Talent Incentive Plan (“LTIP Participants”). The LTIP Units are phantom awards providing for, at the Company’s discretion, a cash or stock payment (“LTIP Payment”) to participants on certain determination dates, if an IPO occurs and if the LTIP Participant remains employed by the Company on such date. An IPO transaction will result in a determination date, for which each LTIP Participant will be entitled to an LTIP Payment with respect to 20% of the LTIP Participant’s LTIP Units as of the IPO date and 20% on each of four subsequent determination dates six, twelve, 18 months and 24 months following the IPO date. The LTIP Payment is calculated based on the average closing price per IPO Company share for the 10-day trading period ending on the day prior to the applicable payment date. Units of both LTIP plans vest only upon a liquidity event and therefore no compensation expense has been recognized for the years ended June 30, 2021 and 2020, Successor 2020 Period and Predecessor 2020 Period. Each individual Incentive Unit Grant Agreement specifies the number of awards, vesting terms, floor amount and timing of awards. The maximum number of units that may be issued under the 2019 Plans is 124,545. Each unit granted and not forfeited or terminated, reduces the number of units available for future awards. The units represent membership interests in Pride Aggregator, L.P. Under the terms of the MEP, one half of the profits interest units vest based on an associate’s service time. The units vest 25% on the first anniversary and thereafter in equal installments on each subsequent quarterly anniversary of the vesting commencement date. Upon a change in control all unvested time-based incentive units fully vest. Upon an IPO all time-vesting incentive units continue to vest based upon their original vesting schedule. MEP incentive units are subject to a floor amount established at the grant date, which acts as a participation threshold and permits the award to participate in distributions only to the extent the units exceed the floor amount. The MEP incentive units are accounted for as equity awards and the compensation expense recognized is based upon the fair market value of the MEP incentive units at the grant date. The Company estimates the fair value of the MEP incentive units using the Monte Carlo simulation method. The second half of the MEP incentive units vest upon the Company attaining a rate of return (market condition), as defined in the 2019 Plans, triggered by either a distribution, a liquidity event or IPO (implied performance condition). Since a liquidity event or IPO was not deemed probable or did not commence, no compensation expense has been recognized for the years ended June 30, 2021 and 2020, Successor 2019 Period and Predecessor 2019 Period. Key inputs and assumptions used to estimate the fair value of the incentive units include the exercise price, the option term, the risk-free interest rate over the option’s expected term, and the expected volatility. The Company’s expected stock price volatility assumption was determined based upon the historical volatility of publicly traded companies similar in nature to the Company. The risk-free interest rate is based on the market yield for a U.S. Treasury security over the expected life. The expected life of the MEP incentive units was an estimated time to a liquidity event. Estimates of fair value are not intended to predict actual future events or the value realized by persons who receive option awards. The assumptions used in the Monte Carlo simulation method are set forth in the following table. Expected volatility range of stock 60.0%–65.0% Expected life of option, range in years 0.67–0.75 Risk-free interest range rate 0.09%–0.12% Expected dividend yield on stock 0% The MEP unit incentive activity was as follows: Number of Units Weighted Average Floor Price Weighted Average Fair Value of Time-Based Units Outstanding at June 30, 2019 31,850 $ — $ 685 Granted 43,277 675 535 Forfeited (8,858) 120 668 Outstanding at June 30, 2020 66,269 425 589 Granted 12,275 1,459 295 Forfeited (3,586) 607 436 Outstanding at June 30, 2021 74,958 $ 585 $ 439 All stock-based awards to employees are recognized as compensation costs in the consolidated financial statements based on fair value measured as of the date of grant. These costs are recognized as an expense in the consolidated statements of operations over the requisite service period and increase additional paid in capital. At June 30, 2021 and 2020, the number of vested units were 10,142 and 3,065, respectively. The weighted average grant date fair value of units vested during the year ending June 30, 2021 and 2020 was $445 and $685, respectively. The Company recognized stock-based compensation costs for the year ending June 30, 2021 and 2020 of $4,172 and $4,906, respectively. As of June 30, 2021, there was $7,176 of unrecognized compensation expense for the unvested time-based awards that will be recognized over a weighted average period of 1.9 years. As of June 30, 2021, the unrecognized compensation expense related to the performance-based awards was $14,294. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE: Basic net loss per share is calculated by dividing net loss attributable to Paycor HCM , Inc. by the weighted-average shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss attributable to Paycor HCM , Inc., adjusted as necessary for the impact of potentially dilutive securities, by the weighted-average shares outstanding during the period and the impact of securities that would have a dilutive effect. The Company has no potentially dilutive securities at June 30, 2021 or 2020 as the Company’s stock-based compensation awards represent membership interest units in Pride Aggregator, L.P. Additionally, as a result of the net loss for the year ended June 30, 2021, the preferred stock convertible to common stock has also been excluded from the denominator in computing dilutive net loss per share. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table sets forth the computation of basic and diluted net loss per share: Successor (in thousands, except per share data) Year Ended June 30, Year Ended June 30, November 2, 2018- June 30, Net loss attributable to Paycor HCM , Inc. $ (96,920) $ (90,193) $ (88,518) Weighted-average outstanding shares: Basic and diluted 146,364,225 151,718,000 151,718,000 Basic and diluted net loss per share $ (0.66) $ (0.59) $ (0.58) |
PROFIT SHARING PLAN
PROFIT SHARING PLAN | 12 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
PROFIT SHARING PLAN | PROFIT SHARING PLAN:The Company has a 401(k)-profit sharing plan for the benefit of its employees, substantially all of whom are eligible to participate after meeting minimum age and service requirements. The Company makes matching contributions to the 401(k) plan on behalf of participating employees up to 50% of the first 6% of eligible wages or 3% of their eligible wages. Effective January 1, 2019, the Company increased the Company match to 65% of the first 6% of eligible wages. For the years ended June 30, 2021 and 2020, Successor 2019 Period and Predecessor 2019 Period, the Company expensed contributions to the plan of approximately $2,505, $3,907, $3,091, and $940, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: Our benefit for income tax includes U.S. federal, state, and foreign income taxes. The domestic and foreign components of our income (loss) before income taxes is as follows: Successor Predecessor Year ended June 30, Year ended June 30, Period from November 2, 2018 - June 30, Period from U.S. $ (94,223) $ (87,485) $ (89,354) $ (17,438) Foreign 929 — — — Loss before income taxes $ (93,294) $ (87,485) $ (89,354) $ (17,438) The components of income tax benefit for the following periods are as follows: Successor Predecessor Year ended June 30, Year ended June 30, Period from November 2, 2018 - June 30, Period from Federal: Current provision $ 9 $ — $ — $ 1 Deferred benefit (18,570) (16,950) (14,660) (1,591) Federal tax benefit (18,561) (16,950) (14,660) (1,590) State: Current provision (benefit) 140 (1) 26 26 Deferred benefit (2,655) (3,231) (1,897) (953) State tax benefit (2,515) (3,232) (1,871) (927) Foreign: Current provision 61 — — — Deferred provision 203 — — — Foreign tax provision 264 — — — Total tax benefit $ (20,812) $ (20,182) $ (16,531) $ (2,517) On March 11, 2021, the American Rescue Plan Act of 2021 (“American Rescue Plan”) became law. The law complements the provisions set forth in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the Consolidated Appropriations Act, 2021 (“Appropriations Act”), which became law on March 27, 2020, and December 27, 2020, respectively. The American Rescue Plan, CARES Act, and Appropriations Act, did not have a significant impact on the Company’s income taxes. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of June 30 are presented below. 2021 2020 Deferred tax assets: Stock-based compensation $ — $ 1,355 Accrued expenses 1,849 2,562 Net operating loss carryforwards 43,009 33,895 Deferred rent 1,277 1,199 Deferred revenue 4,204 4,929 Tax credits 3,724 3,714 Other items 932 835 Total deferred tax assets 54,995 48,489 Valuation allowance (117) (118) Net deferred tax assets 54,878 48,371 Deferred tax liabilities: Software development costs (7,514) (5,228) Deferred contract costs (27,694) (17,263) Property and equipment (4,883) (4,002) Other intangible assets (78,171) (106,087) Other (302) (874) Total deferred liabilities (118,564) (133,454) Net deferred tax liabilities $ (63,686) $ (85,083) The Company is in a cumulative three-year loss position. The realization of deferred tax assets is dependent upon the generation of future taxable income. After giving appropriate consideration to the sources of taxable income through the scheduled reversal of deferred tax liabilities, the Company concluded that valuation allowance was required for its net deferred tax assets. The Company has net operating loss (“NOL”) carryforwards for federal income tax purposes of approximately $181,686 and NOL carryforwards for state income tax purposes of approximately $156,603 at June 30, 2021, and NOL carryforward for foreign income tax purposes of approximately $199. The federal NOLs not subject to expiration total $127,912 at June 30, 2021 with the remainder beginning to expire in 2034. The state NOL carryforwards generally expire from 2021 to 2040, except for one state for which NOLs do not expire. The foreign NOL carryforward is subject to expire in 2041. The Company also has gross federal research and development tax credit carryforwards of approximately $3,724 at June 30, 2021, which begin expiring in 2033. At June 30, 2021 and 2020 there are no material unrecognized tax benefits related to uncertain tax positions. A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate for the following periods is presented below: Successor Predecessor Year ended June 30, Year ended June 30, Period from November 2, 2018 - June 30, Period from July 1, 2018 - November 1, 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % Research tax credits — % — % — % (2.1 %) State income taxes, net of federal tax benefit 2.7 % 2.9 % 1.8 % 10.1 % Stock-based compensation (0.9 %) (1.3 %) (1.3 %) 47.9 % Transaction costs — % — % (2.6 %) 0.6 % Other permanent differences (0.5 %) (0.2 %) (0.6 %) (1.6 %) Valuation allowance — % 0.7 % 0.2 % (61.5 %) Effective income tax rate 22.3 % 23.1 % 18.5 % 14.4 % |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES:The Company is subject to various claims, litigation, and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. The resolution of these claims, litigation and regulatory compliance matters, individually or in the aggregate, will not have a material adverse impact on the consolidated results of operation, financial condition or cash flows. These matters are subject to inherent uncertainties and management’s view of these matters may change in the future. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) | 12 Months Ended |
Jun. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) | CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) Paycor HCM, Inc. and Subsidiaries Parent Company Only Condensed Balance Sheets (in thousands) June 30, June 30, Assets Investment in subsidiary $ 878,639 $ 953,325 Total assets $ 878,639 $ 953,325 Liabilities and Stockholder’s Equity Total liabilities $ — $ — Total stockholder’s equity 878,639 953,325 Total liabilities and stockholder’s equity $ 878,639 $ 953,325 Paycor HCM, Inc. and Subsidiaries Parent Company Only Condensed Statements of Operations and Comprehensive Loss (in thousands) Successor Year ended June 30, Year ended June 30, November 2, 2018- June 30, Equity in net loss of subsidiary $ (96,920) $ (90,193) $ (88,518) Net loss attributable to Paycor HCM, Inc. $ (96,920) $ (90,193) $ (88,518) Other comprehensive income, net of tax: Subsidiaries’ other comprehensive income 382 104 2,666 Total other comprehensive income 382 104 2,666 Comprehensive loss attributable to Paycor HCM, Inc. $ (96,538) $ (90,089) $ (85,852) Description of Business Paycor HCM, which is controlled by Pride Aggregator L.P., is the indirect controlling shareholder of Paycor. Pride Aggregator L.P. is controlled by a syndication led by Apax. Paycor HCM was incorporated in Delaware in 2018 and became the ultimate parent of Paycor through the Apax Acquisition. Paycor HCM is a holding company and conducts substantially all of its activities through its subsidiaries and has no operations or significant assets or liabilities other than its investment in its subsidiaries, including Paycor. Accordingly, Paycor HCM is dependent upon distributions from Paycor and other subsidiaries to fund its limited, non-significant activities. However, Paycor’s ability to pay dividends or lend to Paycor HCM is limited under the terms of the 2021 Credit Agreement. All obligations under the 2021 Credit Agreement are guaranteed by Pride Guarantor, Inc. and by Paycor. The 2021 Credit Agreement contains covenants limiting Pride Guarantor, Inc.’s and its subsidiaries’, including Paycor, ability to, among other things: incur additional indebtedness or other contingent obligations; create liens; make investments, acquisitions, loans and advances; consolidate, merge, liquidate or dissolve; sell, transfer or otherwise dispose of its assets, including capital stock of its subsidiaries; pay dividends on its equity interests or make other payments in respect of capital stock; engage in transactions with affiliates; make payments in respect of subordinated debt; modify organizational documents in a manner that is materially adverse to the lenders under the applicable 2021 Credit Agreement; enter into certain agreements with negative pledge clauses. These covenants are subject to certain exceptions and qualifications as described in the 2021 Credit Agreement. For a discussion of the 2021 Credit Agreement, see Note 9 – Debt Agreements and Letters of Credit. Basis of Presentation These condensed financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, Paycor HCM’s investments in subsidiaries are presented under the equity method of accounting. A condensed statement of cash flows was not presented because Paycor HCM has no material operating, investing, or financing cash flow activities for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. As such, these parent-only statements should be read in conjunction with the accompanying consolidated financial statements for the Company. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS: On July 20, 2021, the Company priced the IPO of 18,500,000 shares of its common stock (the “Firm Shares”), $0.001 par value per share at an offering price of $23.00 per share (the “IPO Price”). The underwriters were granted a 30-day option to purchase up to an additional 2,775,000 shares of common stock from the Company (the “Option Shares”), which was exercised by the underwriters in whole. The offering closed and both the Firm Shares and the Option Shares were delivered on July 23, 2021. In aggregate, the IPO shares issued generated approximately $458,742, which is net of approximately $30,583 in underwriters’ discount. Upon the closing of the Company’s IPO, all of the Company’s outstanding shares of Series A Preferred Stock were automatically converted into 11,705,039 shares of the Company’s common stock. As discussed in Note 12 - Redeemable Noncontrolling Interests, upon the closing of the Company’s IPO, the Company used a portion of the proceeds to effect the redemption of all of the outstanding shares of the Redeemable Preferred Stock at a redemption price of 101% of the liquidation preference, plus the amount of all accrued dividends for the then current and all prior dividend payment periods, or approximately $260,000. In connection with the Company’s IPO, the LTIP units, as discussed in Note 14 - Equity Compensation Plans, converted to 1,761,578 restricted stock units (“RSUs”) and the Company will recognize compensation expense equal to the aggregate dollar value over the requisite two On July 20, 2021, the Company adopted the 2021 Omnibus Incentive Plan (the “2021 Plan”). The Company has reserved approximately 13,800,000 shares of common stock for future issuance under the 2021 Plan pursuant to which employees, consultants and directors of the Company and its affiliates performing services for the Company, including the Company’s executive officers, are eligible to receive awards. The 2021 Plan provides for grants of stock options, stock appreciation rights, restricted stock, restricted stock units, bonus stock, dividend equivalents, other stock-based awards, substitute awards, annual incentive awards and performance awards intended to align the interests of participants with those of the Company’s shareholders. In connection with the Company’s IPO, the Company granted awards under the 2021 Plan to certain executives consisting of 1,135,144 options to purchase shares of common stock and 461,948 RSUs. The Company also granted 53,694 RSUs to its independent directors and 263,348 RSUs to members of its IPO transaction team and certain senior employees of the Company. In addition, the Company granted RSUs to each employee as of the IPO date, totaling 200,400 RSUs. The Company will recognize compensation expense equal to the aggregate dollar value of such awards over their three On July 20, 2021, the Company adopted the 2021 Employee Stock Purchase Plan (“ESPP”). The Company has reserved approximately 3,100,000 shares of common stock for future issuance under the ESPP. On July 15, 2021 and August 9, 2021, the Company repaid $4,600 and $44,500, respectively, of revolver borrowings under its 2021 Credit Facility. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidationThe accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying financial statements are presented on a consolidated basis for all periods presented. All intercompany transactions and balances have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The Company utilizes estimates and assumptions in determining the fair value of its common stock, which is a significant input in determining the fair value of stock-based compensation. Prior to the July 2021 IPO, the Board of Directors determined the estimated fair value of the Company’s common stock contemporaneous with grants of stock-based compensation based on a number of objective and subjective factors, including external market conditions, the enterprise value of the business at the time of acquisition by Apax, and the likelihood of achieving a liquidity event, such as an initial public offering or sale of the Company. Fair value was estimated using the guideline public company method. Valuation methodologies include estimates |
Concentrations of risk | Concentrations of risk The Company regularly maintains deposits in banks which may, at times, exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company mitigates exposure to credit risk by placing cash and cash equivalents with highly rated financial institutions. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents. No individual client represents more than 1% of total revenues. The majority of all revenues are generated by clients in the United States. |
Cash and cash equivalents | Cash and cash equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original issue maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value given the short-term maturity of those instruments. |
Restricted cash and short-term investments | Restricted cash and short-term investments The Company designated a portion of cash received from the Apax Acquisition as restricted within the consolidated balance sheets since the cash and short-term investments are being held for the settlement of the cash-based compensation awards by the employees upon vesting. The short-term investments consist of U.S. Treasury Notes, direct obligations of U.S. government agencies and high-grade corporate bonds. |
Funds held for clients | Funds held for clients 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 consist of cash and cash equivalents and debt-security investments. Debt-security investments are classified as available-for-sale and are recorded at fair value, and consist of U.S. Treasury Notes, direct obligations of U.S. government agencies such as the Federal Home Loan Bank, the Federal National Mortgage Association and the Federal Farm Credit Bank, high grade corporate bonds, FDIC insured certificates of deposit, and other short-term and long-term investments. At June 30, 2021 and 2020, all the Company’s corporate bond investments are rated investment grade or better. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying client obligations to remit funds relating to payroll and payroll tax filing services. Unrealized gains and losses, net of applicable income taxes, are reported as other comprehensive income (loss) in the consolidated statements of comprehensive loss. Realized gains and losses on the sale of securities are determined by specific identification of the security’s cost basis. |
Client fund obligations | Client fund obligations 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 consolidated balance sheets at the time the Company obtains the funds from clients. The client fund obligations represent the liabilities that will be remitted to the appropriate client employees, taxing authorities and other parties within one year of the balance sheet date. |
Accounts receivable, net | Accounts receivable, net Accounts receivable balances are shown on the consolidated balance sheets net of the allowance for doubtful accounts of $2,402 and $1,217 as of June 30, 2021 and 2020, respectively. The allowance for doubtful accounts considers factors such as historical experience, credit quality, age of the accounts receivable balance and current and forecasted economic conditions that |
Property and equipment, net | Property and equipment, net Property and equipment are recorded at cost. Depreciation on the property and equipment is computed using the straight-line method over the following estimated useful lives: Computers, equipment and software 3 to 5 years Office equipment 5 to 7 years Furniture and fixtures 7 years Leasehold improvements Over lease term Land improvements 15 years Building 30 years |
Goodwill and intangible assets, net | Goodwill and intangible assets, net 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. The Company performs an annual impairment review of goodwill in its fiscal fourth quarter and additional impairment reviews when events and circumstances indicate it is more likely than not that an impairment may have occurred. The Company assesses goodwill for impairment at the consolidated level, which represents its single reporting unit. In evaluating goodwill for impairment, the Company has the option to first perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of its single reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance, among others. Under a quantitative assessment, fair value of the Company’s single reporting unit is estimated using a weighted methodology considering the output from both the income and market approaches. The income approach incorporates the use of a discounted cash flow (“DCF”) analysis. A number of judgments are involved in the application of the DCF model, including projections of business performance, weighted average cost of capital, and terminal values. The market approach is performed using the Guideline Public Companies method which is based on earnings multiple data derived from publicly traded peer group companies. The Company elected to perform a qualitative assessment during fiscal 2021 and a quantitative assessment during fiscal 2020, and determined for both periods that the fair value of the Company significantly exceeded its carrying amount. |
Capitalized software, net | Capitalized software, net The Company has developed payroll and human resources software to provide its clients with the Company’s services. Capitalized costs include external direct costs of materials and services associated with developing or obtaining internal-use computer software and certain payroll and payroll-related costs for employees who are directly associated with internal-use computer software projects. Expenditures for software purchases and software developed or obtained for internal-use are capitalized and amortized on a straight-line basis over the estimated product life, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. |
Revenue recognition | Revenue recognition Revenues are recognized when control of the promised goods or services is transferred to clients in an amount that reflects the consideration the Company is entitled to for those goods or services. The Company derives its revenue from contracts predominantly from recurring and non-recurring service fees. The majority of its agreements are generally cancellable by the client on 30 days’ notice. Recurring fees are derived from payroll, workforce management, and HR-related cloud-based computing services. The majority of the Company’s recurring fees are satisfied over time as the services are provided during each client’s payroll period, and the timing of revenue recognition for these fees is consistent with the timing of invoicing as they occur simultaneously upon the client payroll processing period or by month. The performance obligations related to payroll services are delivered based upon the payroll frequency of the client with the fee charged and collected based on a per-employee-per-month or per-employee-per-payroll basis. The performance obligations related to workforce management and HR-related services are generally satisfied each month with the fee charged and collected based on a per-employee-per-month basis. For subscription-based fees, which can include payroll, workforce management, and HR-related services, the Company recognizes the applicable recurring fees each month with the fee charged and collected based on a per-employee-per-month basis. Non-recurring service fees consist mainly of nonrefundable implementation fees. The implementation activities involve setting the client up and loading data into the Company’s cloud-based modules. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract beyond the normal 30-day contractual period without payment of an additional upfront implementation fee. Implementation fees are deferred and recognized as revenue over the period to which the material right exists, which is the period the client is expected to benefit from not having to pay an additional nonrefundable implementation fee upon renewal of the service. 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 consolidated statements of operations. |
Cost of revenues | Cost of revenues Cost of revenues includes costs relating to the provision of ongoing customer support and implementation activities, payroll tax filing, distribution of printed checks and other materials providing the Company’s payroll and other HCM solutions. These costs primarily consist of expenses relating to associates who service customers, including employee-related costs, as well as third-party processing fees, delivery costs, hosting costs, and bank fees associated with client fund transfers. The Company capitalizes costs to fulfill a contract related to its products if they are identifiable, generate or enhance resources used to satisfy future performance obligations and are expected to be recovered. The Company utilizes the portfolio approach based on the period in which the costs are incurred to account for the cost of fulfilling a contract. Capitalized costs to fulfill a contract are amortized over the expected period of benefit, which is generally six years based on the Company’s average client life, derived from analyzing client attrition rates using historical data as well as other qualitative factors, including rate of technological changes. The expected period of benefit has been determined to be the average client life primarily because the Company does not incur any additional costs to fulfill contracts upon renewal. The Company recognizes fulfillment costs when an existing client purchases additional services. The additional costs only relate to the additional services purchased and do not |
Sales and marketing | Sales and marketing Sales and marketing expenses consist primarily of employee-related expenses for the Company’s direct sales and marketing staff, including employee-related costs, marketing, advertising and promotion expenses, and other related costs. Advertising and promotion costs are expensed as incurred. Advertising and promotion expense totaled approximately $17,964, $14,874, $10,964 and $3,777 for the year ended June 30, 2021, the year ended June 30, 2020, Successor 2019 Period and Predecessor 2019 Period, respectively. |
General and administrative | General and administrative General and administrative expenses consist primarily of employee-related costs, including employee-related costs for the Company’s administrative, finance, accounting, legal and human resources departments. Additional expenses include consulting and professional fees, occupancy costs, insurance, and other corporate expenses. |
Research and development | Research and development Research and development expenses consist primarily of employee-related expenses for the Company’s software development and product management staff. Additional expenses include costs related to the development, maintenance, quality assurance and testing of new technologies, and ongoing refinement of the Company’s existing solutions. Research and development expenses, other than internal-use software costs qualifying for capitalization, including costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. |
Interest expense | Interest expense Interest expense consists primarily of interest payments and accruals relating to outstanding borrowings. |
Other income (expense) | Other (expense) income Other (expense) income generally consists of other income and expense items outside of the Company’s normal operations, such as realized gains or losses on the sale of certain positions of funds held for clients, gains or losses on the extinguishment of debt and expenses relating to the Company’s financing arrangements. |
Stock-based compensation | Stock-based compensationThe Company recognizes all employee and director stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of actual forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates grant date fair value using the Monte Carlo simulation model that uses assumptions including expected volatility, expected term and the expected risk-free rate of return. The Company has determined that the Monte Carlo simulation model, as well as the underlying assumptions used in its application, is appropriate in estimating the fair value of its award grants. |
Loss per share | Loss per share Basic loss per share is computed by dividing net loss attributable to Paycor HCM, Inc. by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed by dividing net loss attributable to Paycor HCM, Inc. by the weighted-average number of common shares outstanding during the period and the impact of securities that would have a dilutive effect, if any. See Note 15—Net Loss Per Share for further discussion. |
Income taxes | Income taxes The Company accrues income taxes payable or refundable and recognizes deferred tax assets and liabilities based on differences between the book and tax basis of assets and liabilities. The Company measures deferred tax assets and liabilities using enacted rates in effect for the years in which the differences are expected to reverse and recognizes the effect of a change in enacted rates in the period of enactment. The Company recognizes deferred tax assets to the extent it believes 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 recent results of operations. When uncertain tax positions exist, the Company recognizes the benefit of tax positions to the extent that the benefit will be more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position, as well as consideration of the available facts and circumstances. Interest associated with uncertain tax positions are recognized as a component of income tax expense. The Company has concluded all U.S. federal income tax matters through fiscal year 2020. The Internal Revenue Service (“IRS”) has closed the federal income tax audits through the stub period ended November 2, 2018. With few exceptions, state and local income taxes are no longer subject to examination by taxing authorities through the fiscal year 2017. |
Deferred IPO issuance costs | Deferred IPO issuance costsDeferred issuance costs, which primarily consist of direct incremental legal and accounting fees relating to the IPO of the Company’s common stock, are capitalized. The deferred issuance costs will be offset against IPO proceeds upon the consummation of the offering, which closed on July 23, 2021. |
Segments | Segments Operating segments are defined as components of an enterprise engaging in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business as a single operating segment at the consolidated level. |
Pending accounting pronouncements | Pending accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases” (Topic 842). This update amends existing accounting standards for lease accounting and requires lessees to recognize virtually all their leases on the balance sheet by recording a right-of-use asset and a lease liability (for other than short term leases). The Company is in the preliminary stages of gathering data and assessing the impact of the new lease standard. The Company anticipates that the adoption of this standard will materially affect the consolidated balance sheet and may require changes to the processes used to account for leases. The Company is evaluating the transition methods and will adopt this new standard in the fiscal year beginning July 1, 2022 based on its status as an emerging growth company. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” (Topic 326). This update establishes a new approach to estimate credit losses on certain types of financial instruments. The update requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The amended guidance will also update the impairment model for available-for-sale debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss. The Company is currently evaluating this standard and the potential effects of these changes to its consolidated financial statements and will adopt this new standard in the fiscal year beginning July 1, 2023 based on its status as an emerging growth company. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Property and equipment are recorded at cost. Depreciation on the property and equipment is computed using the straight-line method over the following estimated useful lives: Computers, equipment and software 3 to 5 years Office equipment 5 to 7 years Furniture and fixtures 7 years Leasehold improvements Over lease term Land improvements 15 years Building 30 years Property and equipment at cost and accumulated depreciation were as follows: June 30, 2021 June 30, 2020 Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 13,427 9,271 Furniture and fixtures 4,596 4,777 Office equipment 2,337 1,142 Leasehold improvements 8,227 3,541 Construction in progress — 6,030 56,022 52,196 Accumulated depreciation and amortization (14,942) (8,185) Property and equipment, net $ 41,080 $ 44,011 |
Schedule of Research and Development Assets Acquired Other than Through Business Combination | The table below sets forth the amounts of capitalized and expensed research and development costs for the year ended June 30, 2021, the year ended June 30, 2020, Successor 2019 Period and Predecessor 2019 Period: Successor Predecessor Year Ended June 30, Year Ended June 30, Period from Period from Capitalized software $ 21,228 $ 18,846 $ 12,083 $ 6,701 Research and development expenses $ 36,020 $ 45,866 $ 28,428 $ 12,695 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of Revenue | The following table disaggregates revenue from contracts by recurring fees and implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Successor Predecessor Year ended June 30, Year ended June 30, Period from November 2, Period from July 1, 2018- Recurring fees $ 337,012 $ 309,948 $ 190,436 $ 83,043 Implementation services and other 13,944 7,672 1,445 3,219 Total revenues from contracts $ 350,956 $ 317,620 $ 191,881 $ 86,262 The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: Fiscal Year Ended June 30, 2021 2020 Balance, beginning of period $ 15,916 $ 10,158 Deferred revenue acquired 1,374 — Deferral of revenue 17,781 10,042 Revenue recognized (19,033) (4,284) Impact of foreign exchange 9 — Balance, end of period $ 16,047 $ 15,916 |
Capitalized Contract Cost | The following table presents the deferred contract costs balance and related amortization expense for these deferred contract costs. As of and for the Fiscal Year Ended June 30, 2021 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 32,233 $ 29,568 $ (8,875) $ 52,926 Costs to fulfill a contract 39,689 33,394 (10,626) 62,457 Total $ 71,922 $ 62,962 $ (19,501) $ 115,383 As of and for the Fiscal Year Ended June 30, 2020 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 13,357 $ 23,425 $ (4,549) $ 32,233 Costs to fulfill a contract 16,993 28,353 (5,657) 39,689 Total $ 30,350 $ 51,778 $ (10,206) $ 71,922 |
BUSINESS COMBINATION AND ASSE_2
BUSINESS COMBINATION AND ASSET ACQUISITION (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price is as follows: 7Geese Acquisition Cash consideration $ 16,847 Contingent consideration 3,000 Deferred consideration 2,900 Fair value of total consideration 22,747 Cash acquired (107) Net purchase price $ 22,640 Assets acquired: Accounts receivable $ 477 Other current assets 295 Property and equipment 64 Technology intangible assets 9,040 Other intangible assets 100 Other non-current assets 9 Total identifiable assets acquired 9,985 Liabilities assumed: Accounts payable (34) Accrued expenses (1,730) Deferred revenue (1,374) Total identifiable liabilities assumed (3,138) Goodwill 15,793 Fair value of total consideration transferred $ 22,640 |
Schedule of Business Acquisitions, by Acquisition | The preliminary purchase price is as follows: 7Geese Acquisition Cash consideration $ 16,847 Contingent consideration 3,000 Deferred consideration 2,900 Fair value of total consideration 22,747 Cash acquired (107) Net purchase price $ 22,640 Assets acquired: Accounts receivable $ 477 Other current assets 295 Property and equipment 64 Technology intangible assets 9,040 Other intangible assets 100 Other non-current assets 9 Total identifiable assets acquired 9,985 Liabilities assumed: Accounts payable (34) Accrued expenses (1,730) Deferred revenue (1,374) Total identifiable liabilities assumed (3,138) Goodwill 15,793 Fair value of total consideration transferred $ 22,640 |
FUNDS HELD FOR CLIENTS (Tables)
FUNDS HELD FOR CLIENTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Funds Held For Clients [Abstract] | |
Investment | Funds held for clients are as follows: June 30, 2021 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 557,366 $ — $ — $ 557,366 U.S. Treasury and direct obligations of U.S. government agencies 28,757 92 (11) 28,838 Corporate bonds 50,188 1,900 (189) 51,899 Commercial paper 21,831 11 (6) 21,836 Other securities 9,821 629 (74) 10,376 $ 667,963 $ 2,632 $ (280) $ 670,315 June 30, 2020 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 533,603 $ — $ — $ 533,603 U.S. Treasury and direct obligations of U.S. government agencies 23,081 137 — 23,218 Corporate bonds 49,274 2,259 (10) 51,523 Other securities 5,387 391 (7) 5,771 $ 611,345 $ 2,787 $ (17) $ 614,115 |
Investments Classified by Contractual Maturity Date | Expected maturities as of June 30, 2021 for client fund assets are as follows: Due within one year $ 614,574 Due after one year to two years 27,551 Due after two years to three years 18,646 Due after three years 9,544 Total $ 670,315 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment at cost and accumulated depreciation | Property and equipment are recorded at cost. Depreciation on the property and equipment is computed using the straight-line method over the following estimated useful lives: Computers, equipment and software 3 to 5 years Office equipment 5 to 7 years Furniture and fixtures 7 years Leasehold improvements Over lease term Land improvements 15 years Building 30 years Property and equipment at cost and accumulated depreciation were as follows: June 30, 2021 June 30, 2020 Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 13,427 9,271 Furniture and fixtures 4,596 4,777 Office equipment 2,337 1,142 Leasehold improvements 8,227 3,541 Construction in progress — 6,030 56,022 52,196 Accumulated depreciation and amortization (14,942) (8,185) Property and equipment, net $ 41,080 $ 44,011 |
CAPITALIZED SOFTWARE, NET (Tabl
CAPITALIZED SOFTWARE, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of capitalized software | Components of capitalized software was as follows: June 30, 2021 June 30, 2020 Capitalized software $ 52,945 $ 30,977 Accumulated amortization (21,635) (7,871) Capitalized software, net $ 31,310 $ 23,106 Components of intangible assets were as follows: June 30, 2021 June 30, 2020 Cost: Technology $ 140,665 $ 131,625 Customer relationships 434,983 425,659 Trade name 105,672 105,650 Total cost $ 681,320 $ 662,934 Accumulated amortization: Technology $ (116,669) $ (70,533) Customer relationships (190,538) (118,135) Trade name (18,790) (11,739) Total accumulated amortization $ (325,997) $ (200,407) Intangible assets, net $ 355,323 $ 462,527 |
Schedule of future amortization expense | The following is a schedule of future amortization expense as of June 30, 2021: 2022 $ 16,674 2023 10,754 2024 3,882 2025 — 2026 — $ 31,310 The following is a schedule of future amortization expense as of June 30, 2021: 2022 $ 100,488 2023 85,111 2024 80,391 2025 30,639 2026 7,043 Thereafter 51,651 $ 355,323 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following details the changes in goodwill during the fiscal year ended June 30, 2021 and 2020: Balance at July 1, 2019 $ 733,733 Nimble Acquisition adjustment 68 Balance at June 30, 2020 $ 733,801 7Geese Acquisition 15,793 Impact of foreign exchange 1,208 Balance at June 30, 2021 $ 750,802 |
Schedule of components of intangible assets | Components of capitalized software was as follows: June 30, 2021 June 30, 2020 Capitalized software $ 52,945 $ 30,977 Accumulated amortization (21,635) (7,871) Capitalized software, net $ 31,310 $ 23,106 Components of intangible assets were as follows: June 30, 2021 June 30, 2020 Cost: Technology $ 140,665 $ 131,625 Customer relationships 434,983 425,659 Trade name 105,672 105,650 Total cost $ 681,320 $ 662,934 Accumulated amortization: Technology $ (116,669) $ (70,533) Customer relationships (190,538) (118,135) Trade name (18,790) (11,739) Total accumulated amortization $ (325,997) $ (200,407) Intangible assets, net $ 355,323 $ 462,527 |
Schedule of future amortization expense | The following is a schedule of future amortization expense as of June 30, 2021: 2022 $ 16,674 2023 10,754 2024 3,882 2025 — 2026 — $ 31,310 The following is a schedule of future amortization expense as of June 30, 2021: 2022 $ 100,488 2023 85,111 2024 80,391 2025 30,639 2026 7,043 Thereafter 51,651 $ 355,323 |
DEBT AGREEMENTS AND LETTERS O_2
DEBT AGREEMENTS AND LETTERS OF CREDIT (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s long-term debt consists of the following: Interest rate as of June 30, 2021 June 30, 2021 June 30, 2020 Maturity Date 2021 Credit Facility 2.23% $ 49,100 $ — June 2026 Refinanced Loan — 19,517 November 2022 Term Loan — — November 2023 Less: Unamortized debt issuance costs — (83) Total long-term debt (including current portion) 49,100 19,434 Less: Current portion — (849) Total long-term debt, net $ 49,100 $ 18,585 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of future annual minimum lease payments required under operating leases | The following is a schedule of future annual minimum lease payments required under operating leases as of June 30, 2021: 2022 $ 5,775 2023 5,360 2024 3,970 2025 3,227 2026 3,104 Thereafter 5,601 $ 27,037 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and financial liabilities measured at fair value on a recurring basis | The following table presents information on the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and June 30, 2020: June 30, 2021 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 557,366 $ — $ — $ 557,366 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S government agencies — 28,838 — 28,838 Corporate bonds — 51,899 — 51,899 Commercial Paper — 21,836 — 21,836 Other securities — 10,376 — 10,376 $ 557,366 $ 112,949 $ — $ 670,315 June 30, 2020 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 533,603 $ — $ — $ 533,603 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S government agencies — 23,218 — 23,218 Corporate bonds — 51,523 — 51,523 Other securities — 5,771 — 5,771 $ 533,603 $ 80,512 $ — $ 614,115 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of redeemable noncontrolling interest | The following table shows the change in the Company’s redeemable noncontrolling interests from July 1, 2019 to June 30, 2021: Balance at July 1, 2019 $ 210,445 Accretion of Redeemable Preferred Stock 22,890 Balance at June 30, 2020 233,335 Accretion of Redeemable Preferred Stock 24,438 Dividends Paid (9,350) Balance at June 30, 2021 $ 248,423 |
EQUITY COMPENSATION PLANS (Tabl
EQUITY COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Fair Value Measurement Inputs and Valuation Techniques | The assumptions used in the Monte Carlo simulation method are set forth in the following table. Expected volatility range of stock 60.0%–65.0% Expected life of option, range in years 0.67–0.75 Risk-free interest range rate 0.09%–0.12% Expected dividend yield on stock 0% |
Share-based Payment Arrangement, Activity | The MEP unit incentive activity was as follows: Number of Units Weighted Average Floor Price Weighted Average Fair Value of Time-Based Units Outstanding at June 30, 2019 31,850 $ — $ 685 Granted 43,277 675 535 Forfeited (8,858) 120 668 Outstanding at June 30, 2020 66,269 425 589 Granted 12,275 1,459 295 Forfeited (3,586) 607 436 Outstanding at June 30, 2021 74,958 $ 585 $ 439 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share: Successor (in thousands, except per share data) Year Ended June 30, Year Ended June 30, November 2, 2018- June 30, Net loss attributable to Paycor HCM , Inc. $ (96,920) $ (90,193) $ (88,518) Weighted-average outstanding shares: Basic and diluted 146,364,225 151,718,000 151,718,000 Basic and diluted net loss per share $ (0.66) $ (0.59) $ (0.58) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of our income (loss) before income taxes is as follows: Successor Predecessor Year ended June 30, Year ended June 30, Period from November 2, 2018 - June 30, Period from U.S. $ (94,223) $ (87,485) $ (89,354) $ (17,438) Foreign 929 — — — Loss before income taxes $ (93,294) $ (87,485) $ (89,354) $ (17,438) |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax benefit for the following periods are as follows: Successor Predecessor Year ended June 30, Year ended June 30, Period from November 2, 2018 - June 30, Period from Federal: Current provision $ 9 $ — $ — $ 1 Deferred benefit (18,570) (16,950) (14,660) (1,591) Federal tax benefit (18,561) (16,950) (14,660) (1,590) State: Current provision (benefit) 140 (1) 26 26 Deferred benefit (2,655) (3,231) (1,897) (953) State tax benefit (2,515) (3,232) (1,871) (927) Foreign: Current provision 61 — — — Deferred provision 203 — — — Foreign tax provision 264 — — — Total tax benefit $ (20,812) $ (20,182) $ (16,531) $ (2,517) |
Schedule 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 as of June 30 are presented below. 2021 2020 Deferred tax assets: Stock-based compensation $ — $ 1,355 Accrued expenses 1,849 2,562 Net operating loss carryforwards 43,009 33,895 Deferred rent 1,277 1,199 Deferred revenue 4,204 4,929 Tax credits 3,724 3,714 Other items 932 835 Total deferred tax assets 54,995 48,489 Valuation allowance (117) (118) Net deferred tax assets 54,878 48,371 Deferred tax liabilities: Software development costs (7,514) (5,228) Deferred contract costs (27,694) (17,263) Property and equipment (4,883) (4,002) Other intangible assets (78,171) (106,087) Other (302) (874) Total deferred liabilities (118,564) (133,454) Net deferred tax liabilities $ (63,686) $ (85,083) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate for the following periods is presented below: Successor Predecessor Year ended June 30, Year ended June 30, Period from November 2, 2018 - June 30, Period from July 1, 2018 - November 1, 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % Research tax credits — % — % — % (2.1 %) State income taxes, net of federal tax benefit 2.7 % 2.9 % 1.8 % 10.1 % Stock-based compensation (0.9 %) (1.3 %) (1.3 %) 47.9 % Transaction costs — % — % (2.6 %) 0.6 % Other permanent differences (0.5 %) (0.2 %) (0.6 %) (1.6 %) Valuation allowance — % 0.7 % 0.2 % (61.5 %) Effective income tax rate 22.3 % 23.1 % 18.5 % 14.4 % |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheet | June 30, June 30, Assets Investment in subsidiary $ 878,639 $ 953,325 Total assets $ 878,639 $ 953,325 Liabilities and Stockholder’s Equity Total liabilities $ — $ — Total stockholder’s equity 878,639 953,325 Total liabilities and stockholder’s equity $ 878,639 $ 953,325 |
Schedule of condensed income statement | Successor Year ended June 30, Year ended June 30, November 2, 2018- June 30, Equity in net loss of subsidiary $ (96,920) $ (90,193) $ (88,518) Net loss attributable to Paycor HCM, Inc. $ (96,920) $ (90,193) $ (88,518) Other comprehensive income, net of tax: Subsidiaries’ other comprehensive income 382 104 2,666 Total other comprehensive income 382 104 2,666 Comprehensive loss attributable to Paycor HCM, Inc. $ (96,538) $ (90,089) $ (85,852) |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS - Narrative (Details) | 1 Months Ended | |||
Jul. 31, 2021 | Jul. 20, 2021shares | Jun. 30, 2021$ / sharesshares | Jun. 30, 2020$ / sharesshares | |
Subsequent Event [Line Items] | ||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Common stock, shares outstanding (in shares) | 141,097,740 | 151,718,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Stock split conversion ratio | 1,517.18 | |||
Common stock, shares authorized (in shares) | 200,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Accounts receivable, allowance for credit loss | $ 2,402,000 | $ 1,217,000 | ||
Impairment of tangible assets | $ 0 | $ 0 | 0 | 0 |
Impairment of finite-lived intangible assets | 0 | 0 | $ 0 | 0 |
Capitalized computer software, amortization period | 3 years | |||
Cancellation notice period | 30 days | |||
Implementation activities, contractual period | 30 days | |||
Capitalized contract cost, amortization period | 6 years | |||
Advertising and promotion expense | $ 3,777,000 | $ 10,964,000 | $ 17,964,000 | $ 14,874,000 |
Deferred issuance costs | $ 2,423,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment, Net (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Computers, equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computers, equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Building | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and Development (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Capitalized software | $ 6,701 | $ 12,083 | $ 21,228 | $ 18,846 |
Research and development expenses | $ 12,695 | $ 28,428 | $ 36,020 | $ 45,866 |
REVENUE - Contract with Custome
REVENUE - Contract with Customer (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts | $ 86,262 | $ 191,881 | $ 350,956 | $ 317,620 |
Recurring fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts | 83,043 | 190,436 | 337,012 | 309,948 |
Implementation services and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts | $ 3,219 | $ 1,445 | $ 13,944 | $ 7,672 |
REVENUE - Deferred Revenue (Det
REVENUE - Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Contract with Customer, Liability Activity [Roll Forward] | ||
Balance, beginning of period | $ 15,916 | $ 10,158 |
Deferred revenue acquired | 1,374 | 0 |
Deferral of revenue | 17,781 | 10,042 |
Revenue recognized | (19,033) | (4,284) |
Impact of foreign exchange | 9 | 0 |
Balance, end of period | $ 16,047 | $ 15,916 |
REVENUE - Deferred Contract Cos
REVENUE - Deferred Contract Costs (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Capitalized Contract Cost, Activity [Roll Forward] | ||||
Beginning Balance | $ 71,922 | $ 30,350 | ||
Capitalization of Costs | 62,962 | 51,778 | ||
Amortization | $ (8,673) | $ (1,963) | (19,501) | (10,206) |
Ending Balance | 30,350 | 115,383 | 71,922 | |
Costs to obtain a contract | ||||
Capitalized Contract Cost, Activity [Roll Forward] | ||||
Beginning Balance | 32,233 | 13,357 | ||
Capitalization of Costs | 29,568 | 23,425 | ||
Amortization | (8,875) | (4,549) | ||
Ending Balance | 13,357 | 52,926 | 32,233 | |
Costs to fulfill a contract | ||||
Capitalized Contract Cost, Activity [Roll Forward] | ||||
Beginning Balance | 39,689 | 16,993 | ||
Capitalization of Costs | 33,394 | 28,353 | ||
Amortization | (10,626) | (5,657) | ||
Ending Balance | $ 16,993 | $ 62,457 | $ 39,689 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period | 24 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 11,948 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Amount | $ 3,437 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period | |
Revenue, Remaining Performance Obligation, Amount | $ 662 |
BUSINESS COMBINATION AND ASSE_3
BUSINESS COMBINATION AND ASSET ACQUISITION - Narrative (Details) - USD ($) $ in Thousands | Feb. 04, 2021 | Sep. 24, 2020 | May 31, 2021 | Mar. 31, 2021 | Jun. 30, 2021 |
Business Acquisition [Line Items] | |||||
Business acquisition, transaction costs | $ 500 | ||||
HCM Assets Acquisition | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | ||||
Asset Acquisition, Consideration Transferred | $ 9,300 | ||||
Asset acquisition, transaction cost | $ 50 | ||||
Revenue period for contingent payment | 12 months | ||||
Finite-lived intangible assets, remaining amortization period | 2 years 7 months 6 days | ||||
7Geese | |||||
Business Acquisition [Line Items] | |||||
Percentage of business acquired | 100.00% | ||||
Business acquisition, goodwill, expected tax deductible amount | $ 1,661 | ||||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | ||||
Contingent consideration | $ 3,000 | ||||
Milestone payment period | 3 years | ||||
Milestone payment for contingent consideration | $ 2,000 | $ 1,000 |
BUSINESS COMBINATION AND ASSE_4
BUSINESS COMBINATION AND ASSET ACQUISITION - Preliminary Purchase Price (Details) - USD ($) $ in Thousands | Sep. 24, 2020 | Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||||
Cash consideration | $ 0 | $ 901,407 | $ 0 | $ 0 | |
Liabilities assumed: | |||||
Goodwill | $ 733,733 | $ 750,802 | $ 733,801 | ||
7Geese | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 16,847 | ||||
Contingent consideration | 3,000 | ||||
Deferred consideration | 2,900 | ||||
Fair value of total consideration | 22,747 | ||||
Cash acquired | (107) | ||||
Net purchase price | 22,640 | ||||
Assets acquired: | |||||
Accounts receivable | 477 | ||||
Other current assets | 295 | ||||
Property and equipment | 64 | ||||
Technology intangible assets | 9,040 | ||||
Other intangible assets | 100 | ||||
Other non-current assets | 9 | ||||
Total identifiable assets acquired | 9,985 | ||||
Liabilities assumed: | |||||
Accounts payable | (34) | ||||
Accrued expenses | (1,730) | ||||
Deferred revenue | (1,374) | ||||
Total identifiable liabilities assumed | (3,138) | ||||
Goodwill | 15,793 | ||||
Fair value of total consideration transferred | $ 22,640 |
FUNDS HELD FOR CLIENTS - Schedu
FUNDS HELD FOR CLIENTS - Schedule of Funds Held for Clients (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Nov. 01, 2018 |
Schedule of Investments [Line Items] | ||||
Demand deposit accounts and other cash equivalents, Amortized Cost | $ 2,634 | $ 828 | $ 9,989 | $ 6,157 |
Funds held for clients, Amortized Cost | 667,963 | 611,345 | ||
Funds held for clients, Gross Unrealized Gains | 2,632 | 2,787 | ||
Funds held for clients, Gross Unrealized Losses | (280) | (17) | ||
Total | 670,315 | 614,115 | ||
U.S. Treasury and direct obligations of U.S government agencies | ||||
Schedule of Investments [Line Items] | ||||
Debt securities, available-for-sale, Amortized Cost | 28,757 | 23,081 | ||
Debt securities, available-for-sale, Gross Unrealized Gains | 92 | 137 | ||
Debt securities, available-for-sale, Gross Unrealized Losses | (11) | 0 | ||
Debt securities, available-for-sale, Fair Value | 28,838 | 23,218 | ||
Corporate bonds | ||||
Schedule of Investments [Line Items] | ||||
Debt securities, available-for-sale, Amortized Cost | 50,188 | 49,274 | ||
Debt securities, available-for-sale, Gross Unrealized Gains | 1,900 | 2,259 | ||
Debt securities, available-for-sale, Gross Unrealized Losses | (189) | (10) | ||
Debt securities, available-for-sale, Fair Value | 51,899 | 51,523 | ||
Commercial Paper | ||||
Schedule of Investments [Line Items] | ||||
Debt securities, available-for-sale, Amortized Cost | 21,831 | |||
Debt securities, available-for-sale, Gross Unrealized Gains | 11 | |||
Debt securities, available-for-sale, Gross Unrealized Losses | (6) | |||
Debt securities, available-for-sale, Fair Value | 21,836 | |||
Other securities | ||||
Schedule of Investments [Line Items] | ||||
Debt securities, available-for-sale, Amortized Cost | 9,821 | 5,387 | ||
Debt securities, available-for-sale, Gross Unrealized Gains | 629 | 391 | ||
Debt securities, available-for-sale, Gross Unrealized Losses | (74) | (7) | ||
Debt securities, available-for-sale, Fair Value | 10,376 | 5,771 | ||
Demand deposit accounts and other cash equivalents | ||||
Schedule of Investments [Line Items] | ||||
Demand deposit accounts and other cash equivalents, Amortized Cost | 557,366 | 533,603 | ||
Demand deposit accounts and other cash equivalents, Gross Unrealized Gains | 0 | 0 | ||
Demand deposit accounts and other cash equivalents, Gross Unrealized Losses | 0 | 0 | ||
Demand deposit accounts and other cash equivalents, Fair Value | $ 557,366 | $ 533,603 |
FUNDS HELD FOR CLIENTS - Narrat
FUNDS HELD FOR CLIENTS - Narrative (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Funds Held For Clients [Abstract] | ||||
Proceeds from sales and maturities of investment securities | $ 109,492 | $ 494,775 | $ 235,768 | $ 722,588 |
FUNDS HELD FOR CLIENTS - Sche_2
FUNDS HELD FOR CLIENTS - Schedule of Expected Maturities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Funds Held For Clients [Abstract] | |
Due within one year | $ 614,574 |
Due after one year to two years | 27,551 |
Due after two years to three years | 18,646 |
Due after three years | 9,544 |
Total | $ 670,315 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of property and equipment at cost and accumulated depreciation (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 56,022 | $ 52,196 |
Accumulated depreciation and amortization | (14,942) | (8,185) |
Property and equipment, net | 41,080 | 44,011 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,680 | 3,680 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 910 | 910 |
Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,845 | 22,845 |
Computers, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 13,427 | 9,271 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,596 | 4,777 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,337 | 1,142 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,227 | 3,541 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | $ 6,030 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 1,827 | $ 3,347 | $ 6,947 | $ 5,462 |
CAPITALIZED SOFTWARE, NET - Sch
CAPITALIZED SOFTWARE, NET - Schedule of components of capitalized software (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Capitalized software | $ 52,945 | $ 30,977 |
Accumulated amortization | (21,635) | (7,871) |
Capitalized software, net | $ 31,310 | $ 23,106 |
CAPITALIZED SOFTWARE, NET - Nar
CAPITALIZED SOFTWARE, NET - Narrative (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Capitalized computer software, amortization | $ 4,540 | $ 978 | $ 13,764 | $ 6,893 |
CAPITALIZED SOFTWARE, NET - S_2
CAPITALIZED SOFTWARE, NET - Schedule of future amortization expense (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2022 | $ 100,488 | |
2023 | 85,111 | |
2024 | 80,391 | |
2025 | 30,639 | |
2026 | 7,043 | |
Intangible assets, net | 355,323 | $ 462,527 |
Computer Software, Intangible Asset | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2022 | 16,674 | |
2023 | 10,754 | |
2024 | 3,882 | |
2025 | 0 | |
2026 | 0 | |
Intangible assets, net | $ 31,310 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of changes in goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 733,801 | $ 733,733 |
Impact of foreign exchange | 1,208 | |
Goodwill, ending balance | 750,802 | 733,801 |
Nimble | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | $ 68 | |
7Geese | ||
Goodwill [Roll Forward] | ||
Goodwill, acquired during period | $ 15,793 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of components of intangible assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 681,320 | $ 662,934 |
Accumulated amortization: | (325,997) | (200,407) |
Intangible assets, net | 355,323 | 462,527 |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 140,665 | 131,625 |
Accumulated amortization: | (116,669) | (70,533) |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 434,983 | 425,659 |
Accumulated amortization: | (190,538) | (118,135) |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 105,672 | 105,650 |
Accumulated amortization: | $ (18,790) | $ (11,739) |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets, excluding software | $ 508 | $ 79,545 | $ 125,590 | $ 120,862 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of future amortization expense (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 100,488 | |
2023 | 85,111 | |
2024 | 80,391 | |
2025 | 30,639 | |
2026 | 7,043 | |
Thereafter | 51,651 | |
Intangible assets, net | $ 355,323 | $ 462,527 |
DEBT AGREEMENTS AND LETTERS O_3
DEBT AGREEMENTS AND LETTERS OF CREDIT - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||
Interest rate | 2.23% | |
Less: Unamortized debt issuance costs | $ 0 | $ (83) |
Total long-term debt (including current portion) | 49,100 | 19,434 |
Less: Current portion | 0 | (849) |
Total long-term debt, net | 49,100 | 18,585 |
2021 Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 49,100 | 0 |
Refinanced Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 19,517 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 0 |
DEBT AGREEMENTS AND LETTERS O_4
DEBT AGREEMENTS AND LETTERS OF CREDIT - Narrative (Details) | Jun. 11, 2021USD ($) | Sep. 02, 2020USD ($) | Nov. 15, 2019USD ($) | Nov. 02, 2018 | Nov. 01, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 30, 2020USD ($) | Nov. 30, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||
Write-off, unamortized financing fees | $ 2,195,000 | |||||||||
Payments of deferred financing fees | 342,000 | |||||||||
Gain on extinguishment of debt | $ 0 | $ 0 | (1,806,000) | $ 6,240,000 | ||||||
Letters of credit outstanding, amount | $ 0 | 0 | ||||||||
Intercompany Promissory Note | Notes Payable, Other Payables | Pride Aggregator L.P. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable, related parties | $ 64,989,000 | |||||||||
Promissory note, interest rate (in percentage) | 0.15% | |||||||||
Loans Payable | Refinanced Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 20,000,000 | |||||||||
Debt instrument, term | 3 years | |||||||||
Loans Payable | Qualified Low-Income Community Investment Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gain on extinguishment of debt | 6,240,000 | |||||||||
Loans Payable | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 25,000,000 | |||||||||
Debt issuance costs, gross | 397,000 | |||||||||
Term loan, quarterly principal payment | $ 63,000 | |||||||||
Term loan, interest rate, floor (in percentage) | 1.00% | |||||||||
Loans Payable | Fed Funds Effective Rate Overnight Index Swap Rate | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 0.50% | |||||||||
Loans Payable | London Interbank Offered Rate (LIBOR) | Term Loan Prior To Third Anniversary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 4.25% | |||||||||
Loans Payable | London Interbank Offered Rate (LIBOR) | Term Loan After Third Anniversary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 4.00% | |||||||||
Loans Payable | London Interbank Offered Rate (LIBOR) | Refinanced Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 1.75% | |||||||||
Loans Payable | London Interbank Offered Rate (LIBOR) | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 1.00% | |||||||||
Loans Payable | Prime Rate | Term Loan Prior To Third Anniversary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 3.25% | |||||||||
Loans Payable | Prime Rate | Term Loan After Third Anniversary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 3.00% | |||||||||
Revolving Credit Facility | 2021 Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, current borrowing capacity | $ 100,000,000 | |||||||||
Line of credit, maximum borrowing capacity | $ 300,000,000 | $ 50,000,000 | ||||||||
Credit facility unused fee, prior to IPO (in percentage) | 0.25% | |||||||||
Leverage ratio | 3.50 | |||||||||
Interest coverage ratio | 3 | |||||||||
Line of credit facility, term | 5 years | |||||||||
Borrowings on line of credit | $ 5,001,000 | |||||||||
Revolving Credit Facility | 2021 Credit Facility | ABR Borrowings prior to IPO | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 0.95% | |||||||||
Revolving Credit Facility | 2021 Credit Facility | LIBOR Borrowings prior to IPO | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 1.95% | |||||||||
Revolving Credit Facility | 2021 Credit Facility | ABR Borrowings after IPO | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 0.375% | |||||||||
Revolving Credit Facility | 2021 Credit Facility | LIBOR Borrowings after IPO | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 1.375% | |||||||||
Revolving Credit Facility | 2021 Credit Facility | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility unused fee, after IPO (in percentage) | 0.10% | |||||||||
Revolving Credit Facility | 2021 Credit Facility | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility unused fee, after IPO (in percentage) | 0.175% | |||||||||
Revolving Credit Facility | 2021 Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | ABR Borrowings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 0.50% | |||||||||
Revolving Credit Facility | 2021 Credit Facility | Adjusted LIBOR | ABR Borrowings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (in percentage) | 1.00% |
LEASES - Schedule of future ann
LEASES - Schedule of future annual minimum lease payments required under operating leases (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 5,775 |
2023 | 5,360 |
2024 | 3,970 |
2025 | 3,227 |
2026 | 3,104 |
Thereafter | 5,601 |
Operating leases, future minimum payments due | $ 27,037 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Lease escalation liability | $ 5,330 | $ 5,023 | ||
Operating leases, rent expense | $ 1,337 | $ 2,720 | $ 5,411 | $ 5,285 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of financial assets and financial liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
U.S. Treasury and direct obligations of U.S government agencies | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | $ 28,838 | $ 23,218 |
Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 51,899 | 51,523 |
Commercial Paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 21,836 | |
Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 10,376 | 5,771 |
Fair Value, Recurring | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 670,315 | 614,115 |
Fair Value, Recurring | U.S. Treasury and direct obligations of U.S government agencies | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 28,838 | 23,218 |
Fair Value, Recurring | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 51,899 | 51,523 |
Fair Value, Recurring | Commercial Paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 21,836 | |
Fair Value, Recurring | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 10,376 | 5,771 |
Fair Value, Recurring | Level 1 | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 557,366 | 533,603 |
Fair Value, Recurring | Level 1 | U.S. Treasury and direct obligations of U.S government agencies | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value, Recurring | Level 1 | Commercial Paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 0 | |
Fair Value, Recurring | Level 1 | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 112,949 | 80,512 |
Fair Value, Recurring | Level 2 | U.S. Treasury and direct obligations of U.S government agencies | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 28,838 | 23,218 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 51,899 | 51,523 |
Fair Value, Recurring | Level 2 | Commercial Paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 21,836 | |
Fair Value, Recurring | Level 2 | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 10,376 | 5,771 |
Fair Value, Recurring | Level 3 | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. Treasury and direct obligations of U.S government agencies | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value, Recurring | Level 3 | Commercial Paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 0 | |
Fair Value, Recurring | Level 3 | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 0 | 0 |
Demand deposit accounts and other cash equivalents | ||
Funds held for clients—cash and cash equivalents: | ||
Demand deposit accounts and other cash equivalents | 557,366 | 533,603 |
Demand deposit accounts and other cash equivalents | Fair Value, Recurring | ||
Funds held for clients—cash and cash equivalents: | ||
Demand deposit accounts and other cash equivalents | 557,366 | 533,603 |
Demand deposit accounts and other cash equivalents | Fair Value, Recurring | Level 1 | ||
Funds held for clients—cash and cash equivalents: | ||
Demand deposit accounts and other cash equivalents | 557,366 | 533,603 |
Demand deposit accounts and other cash equivalents | Fair Value, Recurring | Level 2 | ||
Funds held for clients—cash and cash equivalents: | ||
Demand deposit accounts and other cash equivalents | 0 | 0 |
Demand deposit accounts and other cash equivalents | Fair Value, Recurring | Level 3 | ||
Funds held for clients—cash and cash equivalents: | ||
Demand deposit accounts and other cash equivalents | $ 0 | $ 0 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS - Narrative (Details) - USD ($) $ in Thousands | Jul. 23, 2021 | Jul. 20, 2021 | Dec. 29, 2020 | Jan. 31, 2021 | Nov. 01, 2018 | Sep. 30, 2020 | Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 |
Class of Stock [Line Items] | ||||||||||
Proceeds from issuance of preferred stock, net | $ 180,005 | $ 90,020 | $ 0 | $ 0 | $ 262,772 | $ 0 | ||||
Less: Accretion of redeemable noncontrolling interests | $ 24,438 | 22,890 | ||||||||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Payments of stock issuance costs | $ 30,583 | |||||||||
Apax Acquisition | Redeemable Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of preferred stock, net (in shares) | 200,000 | |||||||||
Proceeds from issuance of preferred stock, net | $ 194,745 | |||||||||
Payments of stock issuance costs | $ 5,255 | |||||||||
Preferred stock, dividend, payment in cash (in percentage) | 50.00% | |||||||||
Preferred stock, dividend, increase under unmet requirements per year (in percentage) | 2.00% | |||||||||
Preferred stock, dividend, increase under unmet requirements per semester (in percentage) | 1.00% | |||||||||
Preferred stock, dividend, increase under unmet requirements, period | 6 months | |||||||||
Preferred stock, estimated redemption period | 6 years | |||||||||
Less: Accretion of redeemable noncontrolling interests | $ 15,700 | $ 24,438 | 22,890 | |||||||
Preferred stock, dividend, in-kind, percentage | 50.00% | |||||||||
Redeemable noncontrolling interest, equity, preferred, redemption value | $ 258,480 | $ 243,070 | ||||||||
Apax Acquisition | Redeemable Preferred Stock | Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, redemption price (in percentage) | 101.00% | |||||||||
Preferred stock, liquidation preference | $ 260,000 | |||||||||
Apax Acquisition | Redeemable Preferred Stock | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, dividend rate (in percentage) | 1.00% | |||||||||
Apax Acquisition | Redeemable Preferred Stock | Second to third anniversary of issuance date | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, dividend, payment in cash (in percentage) | 50.00% | |||||||||
Apax Acquisition | Redeemable Preferred Stock | Second to third anniversary of issuance date | London Interbank Offered Rate (LIBOR) | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, basis spread on variable rate (in percentage) | 8.875% | |||||||||
Apax Acquisition | Redeemable Preferred Stock | After Third Anniversary Of Issuance Date | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, dividend, payment in cash (in percentage) | 100.00% | |||||||||
Apax Acquisition | Redeemable Preferred Stock | After Third Anniversary Of Issuance Date | London Interbank Offered Rate (LIBOR) | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, basis spread on variable rate (in percentage) | 8.375% | |||||||||
Apax Acquisition | Redeemable Preferred Stock | May 2, 2020 To November 2, 2020 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, redemption price (in percentage) | 1.02% | |||||||||
Apax Acquisition | Redeemable Preferred Stock | November 2, 2020 To November 1, 2021 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, redemption price (in percentage) | 1.01% | |||||||||
Apax Acquisition | Redeemable Preferred Stock | November 2, 2021 And Thereafter | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, redemption price (in percentage) | 1.00% |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS - Schedule of redeemable noncontrolling interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Redeemable noncontrolling interest at beginning of period | $ 233,335 | $ 210,445 |
Less: Accretion of redeemable noncontrolling interests | 24,438 | 22,890 |
Dividends Paid | (9,350) | |
Redeemable noncontrolling interest at ending of period | $ 248,423 | $ 233,335 |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) $ / shares in Units, $ in Thousands | Jul. 20, 2021USD ($)shares | Jan. 20, 2021shares | Dec. 29, 2020USD ($)$ / sharesshares | Jul. 31, 2021$ / sharesshares | Jan. 31, 2021USD ($) | Nov. 01, 2018USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2018shares |
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Common stock, shares outstanding (in shares) | 141,097,740 | 151,718,000 | ||||||||
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 | 10,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Proceeds from issuance of preferred stock, net | $ | $ 180,005 | $ 90,020 | $ 0 | $ 0 | $ 262,772 | $ 0 | ||||
Preferred stock, initial liquidation (in dollars per share) | $ / shares | $ 35,000 | |||||||||
Proceeds from promissory note with related party | $ | $ 0 | $ 0 | $ 64,989 | $ 0 | ||||||
Treasury stock (in shares) | 10,620,260 | 0 | ||||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 23.07 | |||||||||
Purchase of treasury stock excluding stock repurchase costs | $ | $ 245,000 | |||||||||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | 200,000 | |||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||
Stock split conversion ratio | 1,517.18 | |||||||||
Payments of stock issuance costs | $ | $ 30,583 | |||||||||
Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares outstanding (in shares) | 0 | 7,715 | 0 | 0 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||
Issuance of preferred stock, net (in shares) | 2,572 | 5,143 | ||||||||
Proceeds from issuance of preferred stock, net | $ | $ 270,025 | |||||||||
Payments of stock issuance costs | $ | $ 7,253 | |||||||||
Conversion of stock, shares converted (in shares) | 7,715 |
EQUITY COMPENSATION PLANS - Val
EQUITY COMPENSATION PLANS - Valuation Assumptions (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield on stock | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility range of stock | 60.00% |
Expected life of option, range in years | 8 months 1 day |
Risk-free interest range rate | 0.09% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility range of stock | 65.00% |
Expected life of option, range in years | 9 months |
Risk-free interest range rate | 0.12% |
EQUITY COMPENSATION PLANS - MEP
EQUITY COMPENSATION PLANS - MEP Unit Incentive Activity (Details) - Share-based Payment Arrangement - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Number of Units | ||
Beginning balance (in shares) | 66,269,000 | 31,850,000 |
Granted (in shares) | 12,275,000 | 43,277,000 |
Forfeited (in shares) | (3,586,000) | (8,858,000) |
Ending balance (in shares) | 74,958,000 | 66,269,000 |
Weighted Average Floor Price | ||
Beginning balance | $ 425 | $ 0 |
Granted | 1,459 | 675 |
Forfeited | 607 | 120 |
Ending balance | 585 | 425 |
Weighted Average Fair Value of Time-Based Units | ||
Beginning balance | 589 | 685 |
Granted | 295 | 535 |
Forfeited | 436 | 668 |
Ending balance | $ 439 | $ 589 |
EQUITY COMPENSATION PLANS - Nar
EQUITY COMPENSATION PLANS - Narrative (Details) | Nov. 02, 2018shares | Nov. 01, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2021USD ($)planshares | Jun. 30, 2020USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment arrangement expense (benefit) | $ 4,172,000 | $ 4,906,000 | |||
Liability incentive awards | $ 0 | $ 11,842,000 | |||
Number of stock-based compensation plans | plan | 3 | ||||
Maximum units authorized to be issued (in shares) | shares | 124,545 | ||||
Number of vested units (in shares) | shares | 10,142 | 3,065 | |||
Weighted average grant date fair value of units | $ 445,000 | $ 685,000 | |||
Unrecognized compensation expense | $ 7,176,000 | ||||
Unrecognized compensation expense, weighted average period | 1 year 10 months 24 days | ||||
Liability Incentive Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of unvested awards accelerated to vest | 50.00% | ||||
Percentage of unvested awards earned and paid | 50.00% | ||||
Unvested awards earned and paid, amount | $ 0 | $ 60,400,000 | $ 11,605,000 | 8,957,000 | |
Share-based payment arrangement expense (benefit) | 29,047,000 | (189,000) | 3,055,000 | ||
Liability incentive awards | 0 | 11,842,000 | |||
Unamortized compensation expense | 0 | ||||
Share-based Payment Arrangement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment arrangement expense (benefit) | 0 | 0 | 0 | 0 | |
Award vesting rights, percentage | 25.00% | ||||
Phantom Share Units (PSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment arrangement expense (benefit) | $ 0 | $ 0 | 0 | $ 0 | |
Award vesting rights, percentage | 20.00% | ||||
Threshold trading days | 10 days | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 14,294,000 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 8 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to Paycor HCM, Inc. | $ (88,518) | $ (96,920) | $ (90,193) |
Weighted-average outstanding shares: | |||
Basic (in shares) | 151,718,000 | 146,364,225 | 151,718,000 |
Diluted (in shares) | 151,718,000 | 146,364,225 | 151,718,000 |
Diluted net loss per share (in dollars per share) | $ (0.58) | $ (0.66) | $ (0.59) |
Basic net loss per share (in dollars per share) | $ (0.58) | $ (0.66) | $ (0.59) |
NET LOSS PER SHARE - Narrative
NET LOSS PER SHARE - Narrative (Details) - shares | 3 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 |
PROFIT SHARING PLAN (Details)
PROFIT SHARING PLAN (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2018 | Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 |
Retirement Benefits [Abstract] | ||||||
Percent of employer matching contribution | 65.00% | 50.00% | ||||
Percent of employee's eligible wages | 6.00% | 6.00% | ||||
Percent of employer match and employees' gross pay | 3.00% | |||||
Define contribution plan costs | $ 940 | $ 3,091 | $ 2,505 | $ 3,907 |
INCOME TAXES - Income (Loss) Be
INCOME TAXES - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
U.S. | $ (17,438) | $ (89,354) | $ (94,223) | $ (87,485) |
Foreign | 0 | 0 | 929 | 0 |
Loss before benefit for income taxes | $ (17,438) | $ (89,354) | $ (93,294) | $ (87,485) |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Benefit (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Federal: | ||||
Current provision | $ 1 | $ 0 | $ 9 | $ 0 |
Deferred benefit | (1,591) | (14,660) | (18,570) | (16,950) |
Federal tax benefit | (1,590) | (14,660) | (18,561) | (16,950) |
State: | ||||
Current provision (benefit) | 26 | 26 | 140 | (1) |
Deferred benefit | (953) | (1,897) | (2,655) | (3,231) |
State tax benefit | (927) | (1,871) | (2,515) | (3,232) |
Foreign: | ||||
Current provision | 0 | 0 | 61 | 0 |
Deferred provision | 0 | 0 | 203 | 0 |
Foreign tax provision | 0 | 0 | 264 | 0 |
Total tax benefit | $ (2,517) | $ (16,531) | $ (20,812) | $ (20,182) |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Stock-based compensation | $ 0 | $ 1,355 |
Accrued expenses | 1,849 | 2,562 |
Net operating loss carryforwards | 43,009 | 33,895 |
Deferred rent | 1,277 | 1,199 |
Deferred revenue | 4,204 | 4,929 |
Tax credits | 3,724 | 3,714 |
Other items | 932 | 835 |
Total deferred tax assets | 54,995 | 48,489 |
Valuation allowance | (117) | (118) |
Net deferred tax assets | 54,878 | 48,371 |
Deferred tax liabilities: | ||
Software development costs | (7,514) | (5,228) |
Deferred contract costs | (27,694) | (17,263) |
Property and equipment | (4,883) | (4,002) |
Other intangible assets | (78,171) | (106,087) |
Other | (302) | (874) |
Total deferred liabilities | (118,564) | (133,454) |
Net deferred tax liabilities | $ (63,686) | $ (85,083) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Income Tax Examination [Line Items] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
U.S. | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards | 181,686,000 | |
Operating loss carryforwards not subject to expiration | 127,912,000 | |
Research and development tax credit carryforwards | 3,724,000 | |
State and Local Jurisdiction | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards | 156,603,000 | |
Foreign | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards | $ 199,000 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
Research tax credits | (2.10%) | 0.00% | 0.00% | 0.00% |
State income taxes, net of federal tax benefit | 10.10% | 1.80% | 2.70% | 2.90% |
Stock-based compensation | 47.90% | (1.30%) | (0.90%) | (1.30%) |
Transaction costs | 0.60% | (2.60%) | 0.00% | 0.00% |
Other permanent differences | (1.60%) | (0.60%) | (0.50%) | (0.20%) |
Valuation allowance | (61.50%) | 0.20% | 0.00% | 0.70% |
Effective income tax rate | 14.40% | 18.50% | 22.30% | 23.10% |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - Schedule of condensed balance sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Assets | ||
Total assets | $ 2,010,953 | $ 2,007,783 |
Liabilities and Stockholder’s Equity | ||
Total liabilities | 883,891 | 821,123 |
Total liabilities, redeemable noncontrolling interest and stockholder’s equity | 2,010,953 | 2,007,783 |
Parent Company | ||
Assets | ||
Investment in subsidiary | 878,639 | 953,325 |
Total assets | 878,639 | 953,325 |
Liabilities and Stockholder’s Equity | ||
Total liabilities | 0 | 0 |
Total stockholder’s equity | 878,639 | 953,325 |
Total liabilities, redeemable noncontrolling interest and stockholder’s equity | $ 878,639 | $ 953,325 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - Schedule of condensed income statement (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Income Statements, Captions [Line Items] | |||||
Net loss attributable to Paycor HCM, Inc. | $ (14,921) | $ (88,523) | $ (88,518) | $ (96,920) | $ (90,193) |
Other comprehensive income (loss), net of tax: | |||||
Subsidiaries’ other comprehensive income | (186) | $ 2,666 | 2,666 | 382 | 104 |
Comprehensive loss attributable to Paycor HCM, Inc. | $ (15,107) | (85,852) | (96,538) | (90,089) | |
Parent Company | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Equity in net loss of subsidiary | (88,518) | (96,920) | (90,193) | ||
Net loss attributable to Paycor HCM, Inc. | (88,518) | (96,920) | (90,193) | ||
Other comprehensive income (loss), net of tax: | |||||
Subsidiaries’ other comprehensive income | 2,666 | 382 | 104 | ||
Total other comprehensive income | 2,666 | 382 | 104 | ||
Comprehensive loss attributable to Paycor HCM, Inc. | $ (85,852) | $ (96,538) | $ (90,089) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 09, 2021 | Jul. 23, 2021 | Jul. 20, 2021 | Jul. 15, 2021 | Nov. 02, 2018 | Nov. 01, 2018 | Nov. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 |
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||||
Unrecognized compensation expense, weighted average period | 1 year 10 months 24 days | |||||||||
Repayments of line-of-credit | $ 31,000 | $ 204 | $ 62,921 | $ 109,126 | ||||||
Share-based Payment Arrangement | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Award vesting rights, percentage | 25.00% | |||||||||
Equity instruments other than options granted in period (in shares) | 12,275,000 | 43,277,000 | ||||||||
Apax Acquisition | Redeemable Preferred Stock | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Payments of stock issuance costs | $ 5,255 | |||||||||
Issuance of common stock (in shares) | 200,000 | |||||||||
Subsequent Event | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Payments of stock issuance costs | $ 30,583 | |||||||||
Repayments of line-of-credit | $ 44,500 | $ 4,600 | ||||||||
Subsequent Event | Restricted Stock Units (RSUs) | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Unrecognized compensation expense, weighted average period | 2 years | |||||||||
Subsequent Event | Restricted Stock Units (RSUs) | 2021 Omnibus Incentive Plan | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Unrecognized compensation expense, weighted average period | 3 years | |||||||||
Equity instruments other than options granted in period (in shares) | 200,400 | |||||||||
Subsequent Event | Restricted Stock Units (RSUs) | 2021 Omnibus Incentive Plan | Executive Officer | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Equity instruments other than options granted in period (in shares) | 461,948 | |||||||||
Subsequent Event | Restricted Stock Units (RSUs) | 2021 Omnibus Incentive Plan | Director | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Equity instruments other than options granted in period (in shares) | 53,694 | |||||||||
Subsequent Event | Restricted Stock Units (RSUs) | 2021 Omnibus Incentive Plan | IPO Transaction Team And Senior Employees | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Equity instruments other than options granted in period (in shares) | 263,348 | |||||||||
Subsequent Event | Share-based Payment Arrangement | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Award vesting rights, percentage | 25.00% | |||||||||
Award vesting period | 6 months | |||||||||
Subsequent Event | Employee Stock | 2021 Employee Stock Purchase Plan | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Common stock reserved for future issuance (in shares) | 3,100,000,000 | |||||||||
Subsequent Event | Employee Stock | 2021 Omnibus Incentive Plan | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Common stock reserved for future issuance (in shares) | 13,800,000,000 | |||||||||
Subsequent Event | Share-based Payment Arrangement, Option | 2021 Omnibus Incentive Plan | Executive Officer | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Options granted in period (in shares) | 1,135,144 | |||||||||
Subsequent Event | Apax Acquisition | Redeemable Preferred Stock | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Preferred stock, redemption price (in percentage) | 101.00% | |||||||||
Preferred stock, liquidation preference | $ 260,000 | |||||||||
Subsequent Event | IPO | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of shares issued in transaction (in shares) | 18,500,000 | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | |||||||||
Offering price per share (in dollars per share) | $ 23 | |||||||||
Aggregate net proceeds from stock offering | $ 458,742 | |||||||||
Conversion of stock, shares converted (in shares) | 11,705,039 | |||||||||
Subsequent Event | IPO | Restricted Stock Units (RSUs) | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Issuance of common stock (in shares) | 1,761,578 | |||||||||
Subsequent Event | Over-Allotment Option | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of shares issued in transaction (in shares) | 2,775,000 | |||||||||
Sale of stock, purchase period | 30 days |