Cover
Cover - shares | 6 Months Ended | |
Dec. 31, 2021 | Jan. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 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 $0.001 per share | |
Trading Symbol | PYCR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 174,903,005 | |
Entity Central Index Key | 0001839439 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 111,087 | $ 2,634 |
Accounts receivable, net | 19,846 | 16,472 |
Deferred contract costs | 30,785 | 24,503 |
Prepaid expenses | 13,783 | 6,586 |
Other current assets | 977 | 1,516 |
Current assets before funds held for clients | 176,478 | 51,711 |
Funds held for clients | 940,157 | 670,315 |
Total current assets | 1,116,635 | 722,026 |
Property and equipment, net | 38,935 | 41,080 |
Goodwill | 750,397 | 750,802 |
Intangible assets, net | 301,097 | 355,323 |
Capitalized software, net | 35,192 | 31,310 |
Long-term deferred contract costs | 108,229 | 90,880 |
Other long-term assets | 21,867 | 19,532 |
Total assets | 2,372,352 | 2,010,953 |
Current liabilities: | ||
Accounts payable | 11,946 | 11,978 |
Accrued expenses and other current liabilities | 10,235 | 15,782 |
Accrued payroll and payroll related expenses | 29,523 | 32,305 |
Deferred revenue | 10,697 | 11,948 |
Current liabilities before client fund obligations | 62,401 | 72,013 |
Client fund obligations | 940,387 | 669,960 |
Total current liabilities | 1,002,788 | 741,973 |
Deferred income taxes | 66,651 | 76,138 |
Other long-term liabilities | 10,843 | 16,680 |
Long-term debt, net | 0 | 49,100 |
Total liabilities | 1,080,282 | 883,891 |
Commitments and contingencies (Note 15) | ||
Redeemable noncontrolling interest | 0 | 248,423 |
Stockholders' equity: | ||
Common stock $0.001 par value per share, 500,000,000 shares authorized, 174,429,903 shares outstanding at December 31, 2021 and 141,097,740 outstanding at June 30, 2021, respectively | 174 | 141 |
Treasury stock, at cost, 10,620,260 shares at December 31, 2021 and June 30, 2021 | (245,074) | (245,074) |
Additional paid-in capital | 1,891,259 | 1,133,399 |
Accumulated deficit | (354,872) | (275,751) |
Accumulated other comprehensive income | 583 | 3,152 |
Total stockholders' equity | 1,292,070 | 878,639 |
Total liabilities, redeemable noncontrolling interest and stockholders' equity | 2,372,352 | 2,010,953 |
Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Series A Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock | $ 0 | $ 262,772 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Jul. 20, 2021 | Jun. 30, 2021 | Dec. 29, 2020 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 500,000,000 | 200,000 | 500,000,000 | |
Common stock, shares outstanding (in shares) | 174,429,903 | 141,097,740 | ||
Treasury stock (in shares) | 10,620,260 | 10,620,260 | 10,620,260 | |
Preferred stock, shares outstanding (in shares) | 0 | |||
Preferred Stock | ||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||
Series A Preferred Stock | ||||
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) | 0 | 7,715 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | ||||
Recurring and other revenue | $ 102,729 | $ 85,416 | $ 195,145 | $ 163,967 |
Interest income on funds held for clients | 338 | 448 | 654 | 958 |
Total revenues | 103,067 | 85,864 | 195,799 | 164,925 |
Cost of revenues | 41,082 | 36,833 | 86,693 | 71,317 |
Gross profit | 61,985 | 49,031 | 109,106 | 93,608 |
Operating expenses: | ||||
Sales and marketing | 40,682 | 25,477 | 86,470 | 49,820 |
General and administrative | 44,462 | 35,056 | 87,873 | 68,473 |
Research and development | 10,605 | 9,390 | 20,796 | 17,674 |
Total operating expenses | 95,749 | 69,923 | 195,139 | 135,967 |
Loss from operations | (33,764) | (20,892) | (86,033) | (42,359) |
Other (expense) income: | ||||
Interest expense | (112) | (673) | (347) | (1,159) |
Other | 328 | 44 | 1,552 | 240 |
Loss before benefit for income taxes | (33,548) | (21,521) | (84,828) | (43,278) |
Income tax benefit | (8,084) | (4,704) | (17,328) | (9,129) |
Net loss | (25,464) | (16,817) | (67,500) | (34,149) |
Less: Accretion of redeemable noncontrolling interests | 0 | 6,471 | 11,621 | 11,521 |
Net loss attributable to Paycor HCM, Inc. | $ (25,464) | $ (23,288) | $ (79,121) | $ (45,670) |
Basic net loss attributable to Paycor HCM, Inc. per share (in dollars per share) | $ (0.15) | $ (0.15) | $ (0.46) | $ (0.30) |
Diluted net loss attributable to Paycor HCM, Inc. per share (in dollars per share) | $ (0.15) | $ (0.15) | $ (0.46) | $ (0.30) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 174,429,903 | 151,371,687 | 170,444,536 | 151,544,844 |
Diluted (in shares) | 174,429,903 | 151,371,687 | 170,444,536 | 151,544,844 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service [Member] | Service [Member] | Service [Member] | Service [Member] |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (25,464) | $ (16,817) | $ (67,500) | $ (34,149) |
Other comprehensive (loss) gain, net of tax: | ||||
Unrealized (loss) gain on foreign currency translation | (18) | 271 | (171) | 264 |
Unrealized losses on available-for-sale securities, net of tax | (384) | (3) | (445) | (62) |
Other comprehensive (loss) gain, net of tax | (402) | 268 | (616) | 202 |
Comprehensive loss | (25,866) | (16,549) | (68,116) | (33,947) |
Less: Comprehensive income attributable to redeemable noncontrolling interests | 0 | 6,471 | 11,621 | 11,521 |
Comprehensive loss attributable to Paycor HCM, Inc. | $ (25,866) | $ (23,020) | $ (79,737) | $ (45,468) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Preferred StockSeries A Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Common stock, shares outstanding, beginning balance (in shares) at Jun. 30, 2020 | 0 | 151,718,000 | |||||
Stockholders' equity, beginning balance at Jun. 30, 2020 | $ 953,325 | $ 0 | $ 152 | $ 0 | $ 1,129,216 | $ (178,813) | $ 2,770 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss attributable to Paycor HCM, Inc. | (45,670) | (45,670) | |||||
Stock-based compensation expense | 3,433 | 3,433 | |||||
Other comprehensive (loss) income | 202 | 202 | |||||
Issuance of preferred stock, net (in shares) | 5,143 | ||||||
Issuance of stock | 175,146 | $ 175,146 | |||||
Repurchase of common stock, at cost (in shares) | (10,620,260) | ||||||
Repurchase of common stock, at cost | (245,074) | $ (11) | (245,074) | 11 | |||
Stockholders' equity, ending balance at Dec. 31, 2020 | 841,362 | $ 175,146 | $ 141 | (245,074) | 1,132,660 | (224,483) | 2,972 |
Common stock, shares outstanding, ending balance (in shares) at Dec. 31, 2020 | 5,143 | 141,097,740 | |||||
Common stock, shares outstanding, beginning balance (in shares) at Sep. 30, 2020 | 0 | 151,718,000 | |||||
Stockholders' equity, beginning balance at Sep. 30, 2020 | 932,574 | $ 0 | $ 152 | 0 | 1,130,913 | (201,195) | 2,704 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss attributable to Paycor HCM, Inc. | (23,288) | (23,288) | |||||
Stock-based compensation expense | 1,736 | 1,736 | |||||
Other comprehensive (loss) income | 268 | 268 | |||||
Issuance of preferred stock, net (in shares) | 5,143 | ||||||
Issuance of stock | 175,146 | $ 175,146 | |||||
Repurchase of common stock, at cost (in shares) | (10,620,260) | ||||||
Repurchase of common stock, at cost | (245,074) | $ (11) | (245,074) | 11 | |||
Stockholders' equity, ending balance at Dec. 31, 2020 | $ 841,362 | $ 175,146 | $ 141 | (245,074) | 1,132,660 | (224,483) | 2,972 |
Common stock, shares outstanding, ending balance (in shares) at Dec. 31, 2020 | 5,143 | 141,097,740 | |||||
Common stock, shares outstanding, beginning balance (in shares) at Jun. 30, 2021 | 141,097,740 | 7,715 | 141,097,740 | ||||
Stockholders' equity, beginning balance at Jun. 30, 2021 | $ 878,639 | $ 262,772 | $ 141 | (245,074) | 1,133,399 | (275,751) | 3,152 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss attributable to Paycor HCM, Inc. | (79,121) | (79,121) | |||||
Stock-based compensation expense | 39,027 | 39,027 | |||||
Other comprehensive (loss) income | (616) | (616) | |||||
Issuance of common stock sold in the initial public offering, net of offering costs and underwriting discount (in shares) | 21,275,000 | ||||||
Issuance of stock | 454,147 | $ 21 | 454,126 | ||||
Conversion of Series A Preferred Stock to common stock upon initial public offering (in shares) | 7,715 | 11,705,039 | |||||
Conversion of Series A Preferred Stock to common stock upon initial public offering | $ (262,772) | $ 12 | 262,760 | ||||
Issuance of common stock upon vesting of restricted stock units at initial public offering (in shares) | 352,124 | ||||||
Other | (6) | 1,947 | (1,953) | ||||
Stockholders' equity, ending balance at Dec. 31, 2021 | $ 1,292,070 | $ 0 | $ 174 | (245,074) | 1,891,259 | (354,872) | 583 |
Common stock, shares outstanding, ending balance (in shares) at Dec. 31, 2021 | 174,429,903 | 0 | 174,429,903 | ||||
Common stock, shares outstanding, beginning balance (in shares) at Sep. 30, 2021 | 0 | 174,429,903 | |||||
Stockholders' equity, beginning balance at Sep. 30, 2021 | $ 1,300,717 | $ 0 | $ 174 | (245,074) | 1,874,040 | (329,408) | 985 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss attributable to Paycor HCM, Inc. | (25,464) | (25,464) | |||||
Stock-based compensation expense | 17,215 | 17,215 | |||||
Other comprehensive (loss) income | (402) | (402) | |||||
Other | 4 | 4 | |||||
Stockholders' equity, ending balance at Dec. 31, 2021 | $ 1,292,070 | $ 0 | $ 174 | $ (245,074) | $ 1,891,259 | $ (354,872) | $ 583 |
Common stock, shares outstanding, ending balance (in shares) at Dec. 31, 2021 | 174,429,903 | 0 | 174,429,903 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (67,500) | $ (34,149) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||
Depreciation | 3,448 | 3,355 |
Amortization of intangible assets and software | 67,653 | 67,619 |
Amortization of deferred contract costs | 14,062 | 8,482 |
Stock-based compensation expense | 39,027 | 3,433 |
Amortization of debt acquisition costs | 44 | 334 |
Deferred tax benefit | (17,340) | (9,129) |
Bad debt expense | 1,086 | 619 |
Gain on sale of investments | (9) | (69) |
Gain on installment sale | (1,359) | 0 |
Loss (gain) on foreign currency exchange | 216 | (455) |
Change in fair value of deferred consideration | (138) | 0 |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (4,469) | (4,382) |
Prepaid expenses and other current assets | (6,658) | 428 |
Other long-term assets | 254 | (78) |
Accounts payable | 14 | (4,265) |
Accrued liabilities | (3,670) | 4,624 |
Deferred revenue | (709) | (613) |
Other long-term liabilities | (4,983) | 284 |
Deferred contract costs | (37,693) | (29,190) |
Net cash (used in) provided by operating activities | (18,724) | 6,848 |
Cash flows from investing activities: | ||
Purchases of client funds available-for-sale securities | (75,173) | (120,034) |
Proceeds from sale and maturities of client funds available-for-sale securities | 74,909 | 119,315 |
Purchase of property and equipment | (1,454) | (1,335) |
Proceeds from note receivable on installment sale | 3,040 | 0 |
Acquisition of intangible assets | (3,187) | 0 |
Acquisition of Paltech Solutions, Inc., net of cash acquired | 0 | (16,511) |
Internally developed software costs | (14,170) | (9,431) |
Net cash used in investing activities | (16,035) | (27,996) |
Cash flows from financing activities: | ||
Net change in cash and cash equivalents held to satisfy client funds obligations | 270,717 | 197,867 |
Payment of deferred consideration | (2,752) | 0 |
Proceeds from promissory note with related party | 0 | 64,989 |
Proceeds from line-of-credit | 3,500 | 55,751 |
Repayments of line-of-credit | (52,600) | (55,751) |
Proceeds from debt | 0 | 25,000 |
Repayments of debt | 0 | (481) |
Proceeds from issuance of preferred stock, net of offering costs | 0 | 175,146 |
Purchase of treasury stock at cost | 0 | (245,074) |
Proceeds from the issuance of common stock sold in the IPO, net of offering costs and underwriting discount | 454,915 | 0 |
Payments of ordinary dividends, noncontrolling interest | (260,044) | (2,723) |
Other financing activities | (395) | (397) |
Net cash provided by financing activities | 413,341 | 214,327 |
Impact of foreign exchange on cash and cash equivalents | 63 | (30) |
Net change in cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | 378,645 | 193,149 |
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, beginning of year | 560,000 | 546,448 |
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, end of year | 938,645 | 739,597 |
Supplemental disclosure of non-cash investing, financing and other cash flow information: | ||
Capital expenditures in accounts payable | 18 | 277 |
Cash paid during the year for interest | 154 | 344 |
Reconciliation of cash, cash equivalents, restricted cash and short-term investments, and funds held for clients to the Condensed Consolidated Balance Sheets | ||
Cash and cash equivalents | 111,087 | 2,219 |
Restricted cash and short-term investments | 0 | 6,759 |
Funds held for clients | 827,558 | 730,619 |
Total cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | $ 938,645 | $ 739,597 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 6 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ORGANIZATION AND DESCRIPTION OF BUSINESS: Paycor HCM, Inc. (“Paycor HCM” or “the Company”) 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 material operating assets or operations that 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. Paycor HCM is controlled by Pride Aggregator, L.P. which is controlled by a syndication led by Apax Partners L.P. (“Apax”), a private equity firm. As a result of the Apax Acquisition, Paycor is an indirect controlled subsidiary of Paycor HCM. Initial Public Offering On July 20, 2021, the Company priced the initial public offering (“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 IPO closed and both the Firm Shares and the Option Shares were delivered on July 23, 2021. In aggregate, the IPO shares issued generated approximately $454,915, which is net of approximately $30,583 in underwriters’ discount and $3,827 of offering costs paid during the six months ended December 31, 2021. Upon completion of the IPO, $4,595 of offering costs, $3,827 of which were paid during the six months ended December 31, 2021, were recorded to additional paid-in capital and accounted for as a reduction of the IPO proceeds in the condensed consolidated balance sheets. Additionally, upon the closing of the 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; • the Company used a portion of the proceeds to effect the redemption of all of the outstanding shares of the Series A Redeemable Preferred Stock (acquisition of non-controlling interest) (“Series A Redeemable Preferred Stock” or “Redeemable Noncontrolling Interest”) 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, for a total of $260,044; • the outstanding Long Term Incentive Plan Units (“LTIP Units”) converted to 1,761,578 restricted stock units (“RSUs”) and the Company began recognizing compensation expense equal to the aggregate dollar value over the requisite two-year service period; and • the performance-based units under the Pride Aggregator, L.P. Management Equity Plan (“MEP”) converted to time-based vesting units, with 25% vesting upon successive 6-month anniversary dates for the 24 months following the Company’s IPO. In connection with the Company’s IPO, 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. All share and per share amounts have been retroactively adjusted to reflect the IPO Stock Split for all periods presented within the unaudited condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of presentation and consolidation The accompanying interim unaudited condensed consolidated financial statements of the Company were prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim reporting. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2021 in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 2, 2021. The unaudited condensed consolidated financial statements for interim periods do not include all disclosures required by U.S. GAAP for annual financial statements and are not necessarily indicative of results for the full year. Adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the unaudited condensed consolidated financial position, results of operations and cash flows at the dates and for the periods presented have been included. All intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of unaudited condensed 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. Significant items subject to such estimates and assumptions include the recognition of revenue, evaluation of potential impairment of goodwill and intangible assets, and the valuation of stock-based compensation. 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. Stock-based compensation The Company recognizes all employee and director stock-based compensation as a cost in the unaudited condensed 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 the award. For periods prior to the July 2021 IPO, the Company estimated grant date fair value using a Monte Carlo simulation model. As the Company's equity was not publicly traded, there was no history of market prices for the Company's equity. Thus, estimating grant date fair value required the Company to make assumptions, including the value of the Company's equity, expected volatility, expected term and the expected risk-free rate of return. For periods subsequent to the July 2021 IPO, the Company establishes grant date fair value of RSUs based on the fair value of the Company's underlying common stock. The Company estimates the grant date fair value of stock options, including common stock purchased as a part of the Company's Employee Stock Purchase Plan ("ESPP"), using the Black-Scholes option pricing model, which requires management to make assumptions with respect to the fair value of the Company's award on the grant date, including the expected term of the award, the expected volatility of the Company's stock calculated based on a period of time generally commensurate with the expected term of the award, the expected risk-free rate of return, and expected dividend yields of the Company's stock. See Note 13 - “Equity Compensation Plans” for additional information on the Company’s stock-based compensation plans. Accounts receivable, net Accounts receivable balances are shown on the condensed consolidated balance sheets net of the allowance for doubtful accounts of $3,112 and $2,402 as of December 31, 2021 and June 30, 2021, 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. Sales and marketing Sales and marketing expenses consist of costs associated with 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 $4,889 and $3,894 for the three months ended December 31, 2021 and 2020, respectively. Advertising and promotion expense totaled approximately $9,875 and $7,297 for the six months ended December 31, 2021 and 2020, respectively. Income taxes Income tax benefit for the three months ended December 31, 2021 and 2020 was $8,084 and $4,704, respectively, reflecting an effective tax rate of 24.1% and 21.9% for the three month periods ended December 31, 2021 and 2020, respectively. Income tax benefit for the six months ended December 31, 2021 and 2020 was $17,328 and $9,129, respectively, reflecting an effective tax rate of 20.4% and 21.1% for the six month periods ended December 31, 2021 and 2020, respectively. 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 has formed a project team to review contracts to determine which qualify as a lease and then evaluate the impact of the adoption of this principle on the Company’s consolidated financial statements. The Company is evaluating, designing, and implementing new processes and internal controls to meet the requirements to report and disclose financial information relating to the Company’s leases. In addition, the Company is designing a process to perform the necessary calculations to derive the right-of-use asset and liabilities associated with each lease to support the requirements of the new standard. The Company anticipates that the adoption of this standard will materially affect the condensed consolidated balance sheet. The Company is evaluating the transition methods and expects to adopt this new standard in the fiscal year beginning July 1, 2022. 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 condensed consolidated financial statements and expects to adopt this new standard in the fiscal year beginning July 1, 2023. |
REVENUE
REVENUE | 6 Months Ended |
Dec. 31, 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: Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Recurring fees $ 99,556 $ 81,910 $ 188,765 $ 156,976 Implementation services and other 3,173 3,506 6,380 6,991 Recurring and other revenue $ 102,729 $ 85,416 $ 195,145 $ 163,967 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: Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Balance, beginning of period $ 14,811 $ 16,831 $ 16,047 $ 15,916 Deferred revenue acquired — — — 1,374 Deferral of revenue 5,789 3,671 9,401 5,975 Revenue recognized (5,311) (3,789) (10,110) (6,603) Impact of foreign exchange — 33 (49) 84 Balance, end of period $ 15,289 $ 16,746 $ 15,289 $ 16,746 Deferred revenue is recorded within deferred revenue and other long-term liabilities on the condensed consolidated balance sheets. The Company will recognize deferred revenue of $7,958 in fiscal year 2022, $5,832 in fiscal year 2023, $1,097 in fiscal year 2024, and $402 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 Three Months Ended December 31, 2021 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 57,977 $ 7,856 $ (3,362) $ 62,471 Costs to fulfill a contract 69,110 11,499 (4,066) 76,543 Total $ 127,087 $ 19,355 $ (7,428) $ 139,014 As of and for the Three Months Ended December 31, 2020 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 37,564 $ 6,535 $ (2,089) $ 42,010 Costs to fulfill a contract 45,286 7,805 (2,471) 50,620 Total $ 82,850 $ 14,340 $ (4,560) $ 92,630 As of and for the Six Months Ended December 31, 2021 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 52,926 $ 15,930 $ (6,385) $ 62,471 Costs to fulfill a contract 62,457 21,763 (7,677) 76,543 Total $ 115,383 $ 37,693 $ (14,062) $ 139,014 As of and for the Six Months Ended December 31, 2020 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 32,233 $ 13,636 $ (3,859) $ 42,010 Costs to fulfill a contract 39,689 15,554 (4,623) 50,620 Total $ 71,922 $ 29,190 $ (8,482) $ 92,630 |
BUSINESS COMBINATION AND ASSET
BUSINESS COMBINATION AND ASSET ACQUISITION | 6 Months Ended |
Dec. 31, 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 enabled the Company to expand its current service offerings. The cash consideration was funded using proceeds from the issuance of a term loan. 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, synergistic benefits, and growth opportunities. 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 final 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 consisted of a one-time payment due and paid in the second quarter of fiscal year 2022. The Company incurred transaction costs of approximately $500 related to the 7Geese Acquisition for the six months ended December 31, 2020, of which approximately $100 relates to the three months ended December 31, 2020. These costs were expensed as incurred in general and administrative expenses on the accompanying unaudited condensed 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 included 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. Contingent payments made for the three months and six months ended December 31, 2021 were $2,242 and $2,437, respectively. |
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 enabled the Company to expand its current service offerings. The cash consideration was funded using proceeds from the issuance of a term loan. 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, synergistic benefits, and growth opportunities. 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 final 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 consisted of a one-time payment due and paid in the second quarter of fiscal year 2022. The Company incurred transaction costs of approximately $500 related to the 7Geese Acquisition for the six months ended December 31, 2020, of which approximately $100 relates to the three months ended December 31, 2020. These costs were expensed as incurred in general and administrative expenses on the accompanying unaudited condensed 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 included 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. Contingent payments made for the three months and six months ended December 31, 2021 were $2,242 and $2,437, respectively. |
FUNDS HELD FOR CLIENTS
FUNDS HELD FOR CLIENTS | 6 Months Ended |
Dec. 31, 2021 | |
Funds Held For Clients [Abstract] | |
FUNDS HELD FOR CLIENTS | FUNDS HELD FOR CLIENTS: Funds held for clients are as follows: December 31, 2021 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 827,558 $ — $ — $ 827,558 U.S. Treasury and direct obligations of U.S. government agencies 28,040 10 (116) 27,934 Corporate bonds 51,776 275 (613) 51,438 Commercial paper 22,796 — (7) 22,789 Other securities 10,418 143 (123) 10,438 $ 940,588 $ 428 $ (859) $ 940,157 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 Other securities are primarily comprised of collateralized and other mortgage obligations, municipal obligations, and certificates of deposit. 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. Expected maturities as of December 31, 2021 for client fund assets are as follows: Due within fiscal year 2022 $ 864,938 Due within fiscal year 2023 41,893 Due within fiscal year 2024 19,468 Due after fiscal year 2024 13,858 Total $ 940,157 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Dec. 31, 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: December 31, June 30, Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 14,760 13,427 Furniture and fixtures 4,527 4,596 Office equipment 2,332 2,337 Leasehold improvements 8,186 8,227 57,240 56,022 Accumulated depreciation and amortization (18,305) (14,942) Property and equipment, net $ 38,935 $ 41,080 |
CAPITALIZED SOFTWARE, NET
CAPITALIZED SOFTWARE, NET | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
CAPITALIZED SOFTWARE, NET | CAPITALIZED SOFTWARE, NET: Components of capitalized software was as follows: December 31, June 30, Capitalized software $ 67,055 $ 52,945 Accumulated amortization (31,863) (21,635) Capitalized software, net $ 35,192 $ 31,310 The following is a schedule of future amortization expense as of December 31, 2021: 2022 (remaining six months) $ 10,199 2023 15,459 2024 8,594 2025 940 2026 — $ 35,192 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Dec. 31, 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. Changes in the carrying amount of goodwill are presented below: Balance at July 1, 2021 $ 750,802 Impact of foreign exchange (405) Balance at December 31, 2021 $ 750,397 Components of intangible assets were as follows: December 31, June 30, Cost: Technology $ 141,415 $ 140,665 Customer relationships 437,419 434,983 Trade name 105,672 105,672 Total cost $ 684,506 $ 681,320 Accumulated amortization: Technology $ (133,254) $ (116,669) Customer relationships (227,838) (190,538) Trade name (22,317) (18,790) Total accumulated amortization $ (383,409) $ (325,997) Intangible assets, net $ 301,097 $ 355,323 The following is a schedule of future amortization expense as of December 31, 2021: 2022 (remaining six months) $ 43,810 2023 86,435 2024 81,268 2025 30,890 2026 7,043 Thereafter 51,651 $ 301,097 |
DEBT AGREEMENTS AND LETTERS OF
DEBT AGREEMENTS AND LETTERS OF CREDIT | 6 Months Ended |
Dec. 31, 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: December 31, June 30, 2021 Credit Facility $ — $ 49,100 Less: Unamortized debt issuance costs — — Total long-term debt (including current portion) — 49,100 Less: Current portion — — Total long-term debt, net $ — $ 49,100 2021 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, to increase the size of the 2021 Credit Facility in a principal amount up to $300,000, with a resulting maximum principal amount of $400,000, subject to the participating lenders electing to increase their commitments or new lenders being added to the 2021 Credit Agreement. On September 3, 2021, the Company entered into an amendment (the “2021 Amendment”) to the 2021 Credit Agreement which increased the size of the 2021 Credit Agreement from $100,000 to $200,000. No other significant terms of the 2021 Credit Agreement were changed in connection with the 2021 Amendment. The 2021 Loans, if any, have variable interest rates. The interest rate on the 2021 Loans equals, at the Company’s 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 London interbank offered rate (“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 the IPO, (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 the IPO, (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 December 31, 2021, the Company was in compliance with all covenants. 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. As a result of the Company entering into the 2021 Amendment, the Company expensed approximately $35 primarily consisting of third party costs. Amounts expensed relating to the 2021 Amendment are recorded as other (expense) income - other on the unaudited condensed consolidated statement of operations for the six months ended December 31, 2021. Additionally, the Company capitalized approximately $100 of deferred financing fees for the six months ended December 31, 2021 in connection with the 2021 Amendment, which are included in other long-term assets within the condensed consolidated balance sheets. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Dec. 31, 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 December 31, 2021 and June 30, 2021, 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, 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 December 31, 2021 and June 30, 2021: December 31, 2021 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 827,558 $ — $ — $ 827,558 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 27,934 — 27,934 Corporate bonds — 51,438 — 51,438 Commercial paper — 22,789 — 22,789 Other securities — 10,438 — 10,438 $ 827,558 $ 112,599 $ — $ 940,157 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 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 | 6 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS: The Company fully redeemed the Series A Redeemable Preferred Stock using a portion of the cash received in its July 2021 IPO. The redemption price per share was equal to 101% of the liquidation preference, plus the amount of all accrued dividends for the then current and all prior dividend payment periods, or $260,044. As of December 31, 2021 , there are no holders of the Company’s Series A Redeemable Preferred Stock and all of the Company’s subsidiaries are wholly-owned . Measurement Accretion of Redeemable Noncontrolling Interests for the three and six months ended December 31, 2021 includes $— and $11,621 of adjustments, respectively, relating to the redemption accretion value adjustments for each reportable period. Accretion of Redeemable Noncontrolling Interests for the three and six months ended December 31, 2020 includes $6,471 and $11,521 of adjustments, respectively, relating to the redemption accretion value adjustments for each reportable period. The Company elected to pay the distributions for the dividend payment date for the three months ended September 30, 2020 in-kind to preferred shareholders, while 50% of the required distributions for the remaining fiscal year 2021 dividend payment dates were paid in cash with the remaining 50% in-kind to preferred shareholders. These in-kind distributions increased the liquidation preference on each preferred share. The following table shows the change in the Company’s Redeemable Noncontrolling Interests during the periods presented: Balance at July 1, 2021 $ 248,423 Accretion of Series A Redeemable Preferred Stock 11,621 Redemption of outstanding shares (260,044) Balance at December 31, 2021 $ — |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK: Following the IPO 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 December 31, 2021 and June 30, 2021, there were 174,429,903 and 141,097,740 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. 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. As of December 31, 2021, there was no preferred stock outstanding. On October 19, 2021, a secondary offering took place in which certain selling shareholders, including Apax or its affiliates, sold 12,000,000 shares of the Company’s common stock at a public offering price of $32.00 per share. In addition, the selling shareholders granted the underwriters a 30-day option to purchase up to an additional 1,800,000 shares of the Company’s common stock at the same per share price, which was exercised in full on October 26, 2021. The Company did not receive any proceeds from these sales. On December 29, 2020, 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 had an initial liquidation preference of $35,000, subject to adjustment. The Series A Preferred Stock automatically converted into 11,705,039 shares of the Company’s common stock upon the closing of the Company’s IPO in July 2021, adjusted for the 1,517.18 for 1 IPO Stock Split. |
EQUITY COMPENSATION PLANS
EQUITY COMPENSATION PLANS | 6 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY COMPENSATION PLANS | EQUITY COMPENSATION PLANS: All stock-based awards to employees are recognized as compensation costs in the unaudited condensed consolidated financial statements based on fair value measured as of the date of grant. These costs are recognized as an expense in the unaudited condensed consolidated statements of operations over the requisite service period and increase additional paid-in capital. The Company recognized stock-based compensation costs and costs relating to liability awards for the three months ended December 31, 2021 and 2020 of $17,215 and $1,756, respectively. The Company recognized stock-based compensation costs and costs relating to liability awards for the six months ended December 31, 2021 and 2020 of $39,027 and $3,496, respectively. Long Term Incentive Plan Units converted to Restricted Stock Units In connection with the Company’s IPO, the LTIP Units converted to 1,761,578 RSUs, of which 20% of the aggregate dollar value vested upon conversion and was recognized as compensation expense. The remaining aggregate dollar value is being recognized as compensation expense over the requisite two-year service period relating to the LTIP units. Management Equity Plan Units Under the terms of the Company’s MEP, one-half of the profits interest units vest based on an associate’s service time. The time-vesting units vest 25% on the first anniversary after the vesting commencement date and thereafter in twelve equal installments on each subsequent quarterly anniversary of the vesting commencement date, with 100% vesting of the time-vesting units occurring on the fourth anniversary of the vesting commencement date. 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 distribution amount for the units exceed the floor amount. The MEP incentive time-vesting units are accounted for as equity awards and the compensation expense calculated based upon the fair market value of the MEP incentive units at the grant date is recognized as the incentive units vest. The Company estimated the fair value of the MEP incentive units using the Monte Carlo simulation method. Vesting for the second half of the MEP incentive units is established based on the Company’s performance relative to Apax’s original invested amount, with the performance calculations defined in the plan triggered by the Company’s IPO (implied performance condition). As a result of the Company’s July 2021 IPO, and due to an election by Apax, the performance-vesting incentive units converted to time-based vesting units, with 25% vesting upon successive six The modified MEP incentive awards are accounted for as equity awards and the compensation expense calculated based upon the fair value of the modified MEP incentive awards at the modification date is recognized as the incentive units vest. The Company estimated the fair value of the modified MEP incentive awards based upon the IPO Price adjusted for a floor amount established at the grant date and other liquidation preferences in accordance with the terms of the MEP. The following table presents the MEP unit incentive activity: Time-Based Units Modified MEP Units In thousands, except unit and per unit data Number of Units Weighted Average Floor Price Weighted Average Fair Value Number of Units Weighted Average Floor Price Weighted Average Fair Value Outstanding at June 30, 2021 38,079 $ 578 $ 442 36,879 $ 593 $ 379 Granted — — — — — — Forfeited (629) 1,321 365 (1,103) 906 1,105 Outstanding at December 31, 2021 37,450 $ 565 $ 443 35,776 $ 583 $ 1,428 As of December 31, 2021, there was $5,718 of unrecognized compensation expense for the unvested time-based awards that will be recognized over a weighted average period of 1.7 years. The weighted average grant date fair value of time-based units vested during the six months ended December 31, 2021 and 2020 was $409 and $500, respectively. As of December 31, 2021, the unrecognized compensation expense related to the unvested modified MEP awards was $39,752 that will be recognized over a weighted average period of 1.6 years. No modified MEP units vested during the six months ended December 31, 2021 or 2020. 2021 Omnibus Plan On July 20, 2021, the Company adopted the 2021 Omnibus Incentive Plan (the “2021 Plan”). The Company has reserved 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. Stock Options 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. Additionally, options were granted in October 2021 in connection with the Company’s annual grant. All stock options are non-qualified stock options and expire on the tenth anniversary of the grant date. The following table summarizes option activity for the six months ended December 31, 2021: In thousands, except unit and per unit data Options Outstanding Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding at June 30, 2021 — $ — $ — — $ — Granted 1,143,759 23.09 9.40 9.55 — Exercised — — — — — Forfeited and cancelled — — — — — Outstanding at December 31, 2021 1,143,759 $ 23.09 $ 9.40 9.55 $ 6,595 Exercisable as of December 31, 2021 — $ — $ — — $ — None of the stock options were exercised during the period ended December 31, 2021. Total unrecognized compensation cost related to the unvested stock options is $9,144, which is expected to be recognized over a weighted average period of 2.6 years. The weighted average grant date fair value was estimated by the Company using the Black-Scholes option pricing model with the assumptions below: Weighted average exercise price per option $23.00 - $35.16 Expected volatility range of stock 42.5% Expected life of option (in years) 5.85 Risk-free interest rate 0.81% - 1.12% Expected dividend yield on stock 0% Fair value per option $9.36 - $14.51 The expected option life represents the period of time the stock options are expected to be outstanding and is based on the “simplified method” allowed under SEC guidance. The Company used the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. The expected volatility was based on the average historical and implied volatility of the Company’s peer group since the Company had no publicly traded stock history as of the grant date. The Company does not intend to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. The risk-free interest rate was based on the U.S. Treasury yield curve at the time of the grant. Restricted Stock Units The following table summarizes information around RSUs in the Company. These include grants of LTIP Units that were converted to RSUs as described above, as well as grants made in connection with the Company’s IPO and the Company’s annual grant. In connection with the Company’s IPO, the Company primarily granted RSUs to executives, its independent directors, members of its IPO transaction team and senior employees of the Company. RSUs that were granted as a result of the conversion of LTIP Units vest over a two-year period, whereas RSUs that were granted at the time of the Company’s IPO and annual grant generally vest over a three-year period. In thousands, except unit and per unit data Number of Units Weighted Average Grant Price Outstanding, unvested at June 30, 2021 — $ — Conversion of LTIP Units 1,761,578 27.01 Granted 1,553,837 30.02 Vested (352,124) 27.01 Forfeited (86,733) 28.63 Outstanding, unvested grants at December 31, 2021 2,876,558 $ 28.59 As of December 31, 2021, total unrecognized compensation expense related to the RSUs is $68,344, which is expected to be recognized over a weighted average period of 2.2 years. The total fair value of RSUs vested during the six months ended December 31, 2021 was $9,511. Employee Stock Purchase Plan On July 20, 2021, the Company adopted the 2021 Employee Stock Purchase Plan (“ESPP”). The Company has reserved 3,100,000 shares of common stock for future issuance under the ESPP. The ESPP provides eligible employees with a means of acquiring equity in the Company at a discounted price using their own accumulated payroll deductions. Under the terms of the ESPP employees can elect to have amounts of their annual compensation withheld, up to a maximum set by the board, to purchase shares of Company common stock for a purchase price equal to 85% of the lower of the fair market value per share of Company common stock on (i) the offering date or (ii) the respective purchase date. The ESPP grants participating employees the right to acquire Company common stock in increments of 1% to 10% of eligible pay, with a maximum contribution of $25 of eligible pay, subject to applicable annual Internal Revenue Service limitations. The first offering period of the Company’s ESPP commenced on September 1, 2021 and is four months in duration. Subsequent offering periods will be January 1 through June 30 and July 1 through December 31 of a given year. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 6 Months Ended |
Dec. 31, 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. Potentially dilutive securities during the three and six months ended December 31, 2021 and 2020 included RSUs, stock options, Series A Preferred Stock and ESPP purchase rights. Due to the net loss for the three and six months ended December 31, 2021 and 2020, any potentially dilutive securities were excluded from the denominator in calculating diluted net loss per share because including them would have had an anti-dilutive effect. Additionally, the Company also excluded stock-based compensation awards representing membership interest units in Pride Aggregator, L.P. for the three and six months ended December 31, 2021 and 2020, respectively. 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: Three Months Ended December 31, Six Months Ended December 31, (in thousands, except per share data) 2021 2020 2021 2020 Net loss attributable to Paycor HCM , Inc. $ (25,464) $ (23,288) $ (79,121) $ (45,670) Weighted average outstanding shares: Basic and diluted 174,429,903 151,371,687 170,444,536 151,544,844 Basic and diluted net loss per share $ (0.15) $ (0.15) $ (0.46) $ (0.30) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 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 unaudited condensed 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidation The accompanying interim unaudited condensed consolidated financial statements of the Company were prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim reporting. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2021 in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 2, 2021. The unaudited condensed consolidated financial statements for interim periods do not include all disclosures required by U.S. GAAP for annual financial statements and are not necessarily indicative of results for the full year. Adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the unaudited condensed consolidated financial position, results of operations and cash flows at the dates and for the periods presented have been included. All intercompany transactions and balances have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of unaudited condensed 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. Significant items subject to such estimates and assumptions include the recognition of revenue, evaluation of potential impairment of goodwill and intangible assets, and the valuation of stock-based compensation.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. |
Stock-based compensation | Stock-based compensation The Company recognizes all employee and director stock-based compensation as a cost in the unaudited condensed 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 the award. For periods prior to the July 2021 IPO, the Company estimated grant date fair value using a Monte Carlo simulation model. As the Company's equity was not publicly traded, there was no history of market prices for the Company's equity. Thus, estimating grant date fair value required the Company to make assumptions, including the value of the Company's equity, expected volatility, expected term and the expected risk-free rate of return. For periods subsequent to the July 2021 IPO, the Company establishes grant date fair value of RSUs based on the fair value of the Company's underlying common stock. The Company estimates the grant date fair value of stock options, including common stock purchased as a part of the Company's Employee Stock Purchase Plan ("ESPP"), using the Black-Scholes option pricing model, which requires management to make assumptions with respect to the fair value of the Company's award on the grant date, including the expected term of the award, the expected volatility of the Company's stock calculated based on a period of time generally commensurate with the expected term of the award, the expected risk-free rate of return, and expected dividend yields of the Company's stock. See Note 13 - “Equity Compensation Plans” for additional information on the Company’s stock-based compensation plans. |
Accounts receivable, net | Accounts receivable, net Accounts receivable balances are shown on the condensed consolidated balance sheets net of the allowance for doubtful accounts of $3,112 and $2,402 as of December 31, 2021 and June 30, 2021, 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. |
Sales and marketing | Sales and marketing Sales and marketing expenses consist of costs associated with 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 $4,889 and $3,894 for the three months ended December 31, 2021 and 2020, respectively. Advertising and promotion expense totaled approximately $9,875 and $7,297 for the six months ended December 31, 2021 and 2020, respectively. |
Income taxes | Income taxes Income tax benefit for the three months ended December 31, 2021 and 2020 was $8,084 and $4,704, respectively, reflecting an effective tax rate of 24.1% and 21.9% for the three month periods ended December 31, 2021 and 2020, respectively. Income tax benefit for the six months ended December 31, 2021 and 2020 was $17,328 and $9,129, respectively, reflecting an effective tax rate of 20.4% and 21.1% for the six month periods ended December 31, 2021 and 2020, respectively. |
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 has formed a project team to review contracts to determine which qualify as a lease and then evaluate the impact of the adoption of this principle on the Company’s consolidated financial statements. The Company is evaluating, designing, and implementing new processes and internal controls to meet the requirements to report and disclose financial information relating to the Company’s leases. In addition, the Company is designing a process to perform the necessary calculations to derive the right-of-use asset and liabilities associated with each lease to support the requirements of the new standard. The Company anticipates that the adoption of this standard will materially affect the condensed consolidated balance sheet. The Company is evaluating the transition methods and expects to adopt this new standard in the fiscal year beginning July 1, 2022. 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 condensed consolidated financial statements and expects to adopt this new standard in the fiscal year beginning July 1, 2023. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Dec. 31, 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: Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Recurring fees $ 99,556 $ 81,910 $ 188,765 $ 156,976 Implementation services and other 3,173 3,506 6,380 6,991 Recurring and other revenue $ 102,729 $ 85,416 $ 195,145 $ 163,967 The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020 Balance, beginning of period $ 14,811 $ 16,831 $ 16,047 $ 15,916 Deferred revenue acquired — — — 1,374 Deferral of revenue 5,789 3,671 9,401 5,975 Revenue recognized (5,311) (3,789) (10,110) (6,603) Impact of foreign exchange — 33 (49) 84 Balance, end of period $ 15,289 $ 16,746 $ 15,289 $ 16,746 |
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 Three Months Ended December 31, 2021 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 57,977 $ 7,856 $ (3,362) $ 62,471 Costs to fulfill a contract 69,110 11,499 (4,066) 76,543 Total $ 127,087 $ 19,355 $ (7,428) $ 139,014 As of and for the Three Months Ended December 31, 2020 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 37,564 $ 6,535 $ (2,089) $ 42,010 Costs to fulfill a contract 45,286 7,805 (2,471) 50,620 Total $ 82,850 $ 14,340 $ (4,560) $ 92,630 As of and for the Six Months Ended December 31, 2021 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 52,926 $ 15,930 $ (6,385) $ 62,471 Costs to fulfill a contract 62,457 21,763 (7,677) 76,543 Total $ 115,383 $ 37,693 $ (14,062) $ 139,014 As of and for the Six Months Ended December 31, 2020 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 32,233 $ 13,636 $ (3,859) $ 42,010 Costs to fulfill a contract 39,689 15,554 (4,623) 50,620 Total $ 71,922 $ 29,190 $ (8,482) $ 92,630 |
BUSINESS COMBINATION AND ASSE_2
BUSINESS COMBINATION AND ASSET ACQUISITION (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The final 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 final 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) | 6 Months Ended |
Dec. 31, 2021 | |
Funds Held For Clients [Abstract] | |
Investment | Funds held for clients are as follows: December 31, 2021 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 827,558 $ — $ — $ 827,558 U.S. Treasury and direct obligations of U.S. government agencies 28,040 10 (116) 27,934 Corporate bonds 51,776 275 (613) 51,438 Commercial paper 22,796 — (7) 22,789 Other securities 10,418 143 (123) 10,438 $ 940,588 $ 428 $ (859) $ 940,157 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 |
Investments Classified by Contractual Maturity Date | Expected maturities as of December 31, 2021 for client fund assets are as follows: Due within fiscal year 2022 $ 864,938 Due within fiscal year 2023 41,893 Due within fiscal year 2024 19,468 Due after fiscal year 2024 13,858 Total $ 940,157 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment at cost and accumulated depreciation | Property and equipment at cost and accumulated depreciation were as follows: December 31, June 30, Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 14,760 13,427 Furniture and fixtures 4,527 4,596 Office equipment 2,332 2,337 Leasehold improvements 8,186 8,227 57,240 56,022 Accumulated depreciation and amortization (18,305) (14,942) Property and equipment, net $ 38,935 $ 41,080 |
CAPITALIZED SOFTWARE, NET (Tabl
CAPITALIZED SOFTWARE, NET (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of capitalized software | Components of capitalized software was as follows: December 31, June 30, Capitalized software $ 67,055 $ 52,945 Accumulated amortization (31,863) (21,635) Capitalized software, net $ 35,192 $ 31,310 Components of intangible assets were as follows: December 31, June 30, Cost: Technology $ 141,415 $ 140,665 Customer relationships 437,419 434,983 Trade name 105,672 105,672 Total cost $ 684,506 $ 681,320 Accumulated amortization: Technology $ (133,254) $ (116,669) Customer relationships (227,838) (190,538) Trade name (22,317) (18,790) Total accumulated amortization $ (383,409) $ (325,997) Intangible assets, net $ 301,097 $ 355,323 |
Schedule of future amortization expense | The following is a schedule of future amortization expense as of December 31, 2021: 2022 (remaining six months) $ 10,199 2023 15,459 2024 8,594 2025 940 2026 — $ 35,192 The following is a schedule of future amortization expense as of December 31, 2021: 2022 (remaining six months) $ 43,810 2023 86,435 2024 81,268 2025 30,890 2026 7,043 Thereafter 51,651 $ 301,097 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | Changes in the carrying amount of goodwill are presented below: Balance at July 1, 2021 $ 750,802 Impact of foreign exchange (405) Balance at December 31, 2021 $ 750,397 |
Schedule of components of intangible assets | Components of capitalized software was as follows: December 31, June 30, Capitalized software $ 67,055 $ 52,945 Accumulated amortization (31,863) (21,635) Capitalized software, net $ 35,192 $ 31,310 Components of intangible assets were as follows: December 31, June 30, Cost: Technology $ 141,415 $ 140,665 Customer relationships 437,419 434,983 Trade name 105,672 105,672 Total cost $ 684,506 $ 681,320 Accumulated amortization: Technology $ (133,254) $ (116,669) Customer relationships (227,838) (190,538) Trade name (22,317) (18,790) Total accumulated amortization $ (383,409) $ (325,997) Intangible assets, net $ 301,097 $ 355,323 |
Schedule of future amortization expense | The following is a schedule of future amortization expense as of December 31, 2021: 2022 (remaining six months) $ 10,199 2023 15,459 2024 8,594 2025 940 2026 — $ 35,192 The following is a schedule of future amortization expense as of December 31, 2021: 2022 (remaining six months) $ 43,810 2023 86,435 2024 81,268 2025 30,890 2026 7,043 Thereafter 51,651 $ 301,097 |
DEBT AGREEMENTS AND LETTERS O_2
DEBT AGREEMENTS AND LETTERS OF CREDIT (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s long-term debt consists of the following: December 31, June 30, 2021 Credit Facility $ — $ 49,100 Less: Unamortized debt issuance costs — — Total long-term debt (including current portion) — 49,100 Less: Current portion — — Total long-term debt, net $ — $ 49,100 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Dec. 31, 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 December 31, 2021 and June 30, 2021: December 31, 2021 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 827,558 $ — $ — $ 827,558 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 27,934 — 27,934 Corporate bonds — 51,438 — 51,438 Commercial paper — 22,789 — 22,789 Other securities — 10,438 — 10,438 $ 827,558 $ 112,599 $ — $ 940,157 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 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of redeemable noncontrolling interest | The following table shows the change in the Company’s Redeemable Noncontrolling Interests during the periods presented: Balance at July 1, 2021 $ 248,423 Accretion of Series A Redeemable Preferred Stock 11,621 Redemption of outstanding shares (260,044) Balance at December 31, 2021 $ — |
Compensation Related Costs, Sha
Compensation Related Costs, Share Based Payments (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Activity | The following table presents the MEP unit incentive activity: Time-Based Units Modified MEP Units In thousands, except unit and per unit data Number of Units Weighted Average Floor Price Weighted Average Fair Value Number of Units Weighted Average Floor Price Weighted Average Fair Value Outstanding at June 30, 2021 38,079 $ 578 $ 442 36,879 $ 593 $ 379 Granted — — — — — — Forfeited (629) 1,321 365 (1,103) 906 1,105 Outstanding at December 31, 2021 37,450 $ 565 $ 443 35,776 $ 583 $ 1,428 |
Share-based Payment Arrangement, Option, Activity | The following table summarizes option activity for the six months ended December 31, 2021: In thousands, except unit and per unit data Options Outstanding Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding at June 30, 2021 — $ — $ — — $ — Granted 1,143,759 23.09 9.40 9.55 — Exercised — — — — — Forfeited and cancelled — — — — — Outstanding at December 31, 2021 1,143,759 $ 23.09 $ 9.40 9.55 $ 6,595 Exercisable as of December 31, 2021 — $ — $ — — $ — |
Fair Value Measurement Inputs and Valuation Techniques | The weighted average grant date fair value was estimated by the Company using the Black-Scholes option pricing model with the assumptions below: Weighted average exercise price per option $23.00 - $35.16 Expected volatility range of stock 42.5% Expected life of option (in years) 5.85 Risk-free interest rate 0.81% - 1.12% Expected dividend yield on stock 0% Fair value per option $9.36 - $14.51 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | In thousands, except unit and per unit data Number of Units Weighted Average Grant Price Outstanding, unvested at June 30, 2021 — $ — Conversion of LTIP Units 1,761,578 27.01 Granted 1,553,837 30.02 Vested (352,124) 27.01 Forfeited (86,733) 28.63 Outstanding, unvested grants at December 31, 2021 2,876,558 $ 28.59 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 6 Months Ended |
Dec. 31, 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: Three Months Ended December 31, Six Months Ended December 31, (in thousands, except per share data) 2021 2020 2021 2020 Net loss attributable to Paycor HCM , Inc. $ (25,464) $ (23,288) $ (79,121) $ (45,670) Weighted average outstanding shares: Basic and diluted 174,429,903 151,371,687 170,444,536 151,544,844 Basic and diluted net loss per share $ (0.15) $ (0.15) $ (0.46) $ (0.30) |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS - Narrative (Details) $ / shares in Units, $ in Thousands | Oct. 26, 2021shares | Oct. 19, 2021$ / sharesshares | Jul. 23, 2021USD ($)shares | Jul. 20, 2021$ / sharesshares | Nov. 02, 2018 | Jul. 31, 2021 | Dec. 31, 2021USD ($)$ / sharesshares | Jun. 30, 2021$ / sharesshares |
Subsequent Event [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||
Payments of stock issuance costs | $ 30,583 | |||||||
Offering costs | $ 3,827 | |||||||
Preferred stock, liquidation preference | $ 260,044 | |||||||
Stock split conversion ratio | 1,517.18 | |||||||
Common stock, shares authorized (in shares) | shares | 200,000 | 500,000,000 | 500,000,000 | |||||
Restricted Stock Units (RSUs) | ||||||||
Subsequent Event [Line Items] | ||||||||
Unrecognized compensation expense, weighted average period | 2 years | 2 years | 2 years 2 months 12 days | |||||
Award vesting rights, percentage | 20.00% | |||||||
Share-based Payment Arrangement | ||||||||
Subsequent Event [Line Items] | ||||||||
Unrecognized compensation expense, weighted average period | 1 year 8 months 12 days | |||||||
Award vesting rights, percentage | 25.00% | |||||||
Award vesting period | 6 months | |||||||
Apax Acquisition | Redeemable Preferred Stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock, liquidation preference | $ 260,044 | |||||||
November 2, 2020 To November 1, 2021 | Apax Acquisition | Redeemable Preferred Stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock, redemption price (in percentage) | 1.01% | |||||||
IPO | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares issued in transaction (in shares) | shares | 12,000,000 | 18,500,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||
Offering price per share (in dollars per share) | $ / shares | $ 32 | $ 23 | ||||||
Aggregate net proceeds from stock offering | $ 454,915 | |||||||
Offering costs | $ 4,595 | |||||||
Issuance of preferred stock, net (in shares) | shares | 11,705,039 | |||||||
IPO | Restricted Stock Units (RSUs) | ||||||||
Subsequent Event [Line Items] | ||||||||
Issuance of preferred stock, net (in shares) | shares | 1,761,578 | |||||||
IPO | Share-based Payment Arrangement | ||||||||
Subsequent Event [Line Items] | ||||||||
Award vesting period | 24 months | |||||||
Over-Allotment Option | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of shares issued in transaction (in shares) | shares | 1,800,000 | 2,775,000 | ||||||
Sale of stock, purchase period | 30 days | 30 days |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | |||||
Accounts receivable, allowance for credit loss | $ 3,112 | $ 3,112 | $ 2,402 | ||
Advertising and promotion expense | 4,889 | $ 3,894 | 9,875 | $ 7,297 | |
Income tax benefit | $ 8,084 | $ 4,704 | $ 17,328 | $ 9,129 | |
Effective income tax rate | 24.10% | 21.90% | 20.40% | 21.10% |
REVENUE - Contract with Custome
REVENUE - Contract with Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service [Member] | Service [Member] | Service [Member] | Service [Member] |
Recurring and other revenue | $ 102,729 | $ 85,416 | $ 195,145 | $ 163,967 |
Recurring fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Recurring and other revenue | 99,556 | 81,910 | 188,765 | 156,976 |
Implementation services and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Recurring and other revenue | $ 3,173 | $ 3,506 | $ 6,380 | $ 6,991 |
REVENUE - Deferred Revenue (Det
REVENUE - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contract with Customer, Liability Activity [Roll Forward] | ||||
Balance, beginning of period | $ 14,811 | $ 16,831 | $ 16,047 | $ 15,916 |
Deferred revenue acquired | 0 | 0 | 0 | 1,374 |
Deferral of revenue | 5,789 | 3,671 | 9,401 | 5,975 |
Revenue recognized | (5,311) | (3,789) | (10,110) | (6,603) |
Impact of foreign exchange | 0 | 33 | (49) | 84 |
Balance, end of period | $ 15,289 | $ 16,746 | $ 15,289 | $ 16,746 |
REVENUE - Deferred Contract Cos
REVENUE - Deferred Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost, Activity [Roll Forward] | ||||
Beginning Balance | $ 127,087 | $ 82,850 | $ 115,383 | $ 71,922 |
Capitalization of Costs | 19,355 | 14,340 | 37,693 | 29,190 |
Amortization | (7,428) | (4,560) | (14,062) | (8,482) |
Ending Balance | 139,014 | 92,630 | 139,014 | 92,630 |
Costs to obtain a contract | ||||
Capitalized Contract Cost, Activity [Roll Forward] | ||||
Beginning Balance | 57,977 | 37,564 | 52,926 | 32,233 |
Capitalization of Costs | 7,856 | 6,535 | 15,930 | 13,636 |
Amortization | (3,362) | (2,089) | (6,385) | (3,859) |
Ending Balance | 62,471 | 42,010 | 62,471 | 42,010 |
Costs to fulfill a contract | ||||
Capitalized Contract Cost, Activity [Roll Forward] | ||||
Beginning Balance | 69,110 | 45,286 | 62,457 | 39,689 |
Capitalization of Costs | 11,499 | 7,805 | 21,763 | 15,554 |
Amortization | (4,066) | (2,471) | (7,677) | (4,623) |
Ending Balance | $ 76,543 | $ 50,620 | $ 76,543 | $ 50,620 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation fee recognition 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 | 6 months |
Revenue, remaining performance obligation, amount | $ 7,958 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period | 1 year |
Revenue, remaining performance obligation, amount | $ 5,832 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period | 1 year |
Revenue, remaining performance obligation, amount | $ 1,097 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period | |
Revenue, remaining performance obligation, amount | $ 402 |
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 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||||
Business acquisition, transaction costs | $ 100 | ||||||
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 | ||||||
Asset acquisition, contingent consideration | $ 2,242 | $ 2,437 | |||||
Finite-lived intangible assets, remaining amortization period | 2 years 2 months 12 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 acquisition, transaction costs | $ 500 |
BUSINESS COMBINATION AND ASSE_4
BUSINESS COMBINATION AND ASSET ACQUISITION - Preliminary Purchase Price (Details) - USD ($) $ in Thousands | Sep. 24, 2020 | Dec. 31, 2021 | Jun. 30, 2021 |
Liabilities assumed: | |||
Goodwill | $ 750,397 | $ 750,802 | |
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 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | |||
Demand deposit accounts and other cash equivalents, Amortized Cost | $ 111,087 | $ 2,634 | $ 2,219 |
Funds held for clients, Amortized Cost | 940,588 | 667,963 | |
Funds held for clients, Gross Unrealized Gains | 428 | 2,632 | |
Funds held for clients, Gross Unrealized Losses | (859) | (280) | |
Funds held for clients | 940,157 | 670,315 | |
U.S. Treasury and direct obligations of U.S. government agencies | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 28,040 | 28,757 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 10 | 92 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (116) | (11) | |
Debt securities, available-for-sale, Fair Value | 27,934 | 28,838 | |
Corporate bonds | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 51,776 | 50,188 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 275 | 1,900 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (613) | (189) | |
Debt securities, available-for-sale, Fair Value | 51,438 | 51,899 | |
Commercial paper | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 22,796 | 21,831 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 0 | 11 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (7) | (6) | |
Debt securities, available-for-sale, Fair Value | 22,789 | 21,836 | |
Other securities | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 10,418 | 9,821 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 143 | 629 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (123) | (74) | |
Debt securities, available-for-sale, Fair Value | 10,438 | 10,376 | |
Demand deposit accounts and other cash equivalents | |||
Schedule of Investments [Line Items] | |||
Demand deposit accounts and other cash equivalents, Amortized Cost | 827,558 | 557,366 | |
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 | $ 827,558 | $ 557,366 |
FUNDS HELD FOR CLIENTS - Narrat
FUNDS HELD FOR CLIENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Funds Held For Clients [Abstract] | ||||
Proceeds from sales and maturities of investment securities | $ 34,977 | $ 28,225 | $ 74,909 | $ 119,315 |
FUNDS HELD FOR CLIENTS - Sche_2
FUNDS HELD FOR CLIENTS - Schedule of Expected Maturities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Funds Held For Clients [Abstract] | |
Due within fiscal year 2022 | $ 864,938 |
Due within fiscal year 2023 | 41,893 |
Due within fiscal year 2024 | 19,468 |
Due after fiscal year 2024 | 13,858 |
Total | $ 940,157 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of property and equipment at cost and accumulated depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 57,240 | $ 56,022 |
Accumulated depreciation and amortization | (18,305) | (14,942) |
Property and equipment, net | 38,935 | 41,080 |
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 improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,845 | 22,845 |
Computer, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,760 | 13,427 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,527 | 4,596 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,332 | 2,337 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,186 | $ 8,227 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 1,730 | $ 1,734 | $ 3,448 | $ 3,355 |
CAPITALIZED SOFTWARE, NET - Sch
CAPITALIZED SOFTWARE, NET - Schedule of components of capitalized software (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Capitalized software | $ 67,055 | $ 52,945 |
Accumulated amortization | (31,863) | (21,635) |
Capitalized software, net | $ 35,192 | $ 31,310 |
CAPITALIZED SOFTWARE, NET - Nar
CAPITALIZED SOFTWARE, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Capitalized computer software, amortization | $ 5,421 | $ 3,116 | $ 10,241 | $ 5,848 |
CAPITALIZED SOFTWARE, NET - S_2
CAPITALIZED SOFTWARE, NET - Schedule of future amortization expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2022 (remaining six months) | $ 43,810 | |
2023 | 86,435 | |
2024 | 81,268 | |
2025 | 30,890 | |
2026 | 7,043 | |
Intangible assets, net | 301,097 | $ 355,323 |
Computer Software, Intangible Asset | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2022 (remaining six months) | 10,199 | |
2023 | 15,459 | |
2024 | 8,594 | |
2025 | 940 | |
2026 | 0 | |
Intangible assets, net | $ 35,192 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of changes in goodwill (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 750,802 |
Impact of foreign exchange | (405) |
Goodwill, ending balance | $ 750,397 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of components of intangible assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 684,506 | $ 681,320 |
Accumulated amortization: | (383,409) | (325,997) |
Intangible assets, net | 301,097 | 355,323 |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 141,415 | 140,665 |
Accumulated amortization: | (133,254) | (116,669) |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 437,419 | 434,983 |
Accumulated amortization: | (227,838) | (190,538) |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 105,672 | 105,672 |
Accumulated amortization: | $ (22,317) | $ (18,790) |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets, excluding software | $ 25,362 | $ 31,267 | $ 57,412 | $ 61,771 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of future amortization expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (remaining six months) | $ 43,810 | |
2023 | 86,435 | |
2024 | 81,268 | |
2025 | 30,890 | |
2026 | 7,043 | |
Thereafter | 51,651 | |
Intangible assets, net | $ 301,097 | $ 355,323 |
DEBT AGREEMENTS AND LETTERS O_3
DEBT AGREEMENTS AND LETTERS OF CREDIT - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Less: Unamortized debt issuance costs | $ 0 | $ 0 |
Total long-term debt (including current portion) | 0 | 49,100 |
Less: Current portion | 0 | 0 |
Total long-term debt, net | 0 | 49,100 |
2021 Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 49,100 |
DEBT AGREEMENTS AND LETTERS O_4
DEBT AGREEMENTS AND LETTERS OF CREDIT - Narrative (Details) | Aug. 09, 2021USD ($) | Jul. 15, 2021USD ($) | Jun. 11, 2021USD ($) | Jul. 22, 2021 | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 03, 2021USD ($) | Jun. 30, 2021USD ($) |
Debt Instrument [Line Items] | |||||||||
Repayments of line-of-credit | $ 44,500,000 | $ 4,600,000 | $ 52,600,000 | $ 55,751,000 | |||||
Legal fees | (35,000) | ||||||||
Payments of deferred financing fees | 100,000 | ||||||||
Letters of credit outstanding, amount | $ 0 | $ 0 | $ 0 | ||||||
Revolving Credit Facility | 2021 Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, current borrowing capacity | $ 100,000,000 | $ 200,000,000 | |||||||
Line of credit, maximum increase | 300,000,000 | ||||||||
Line of credit, maximum borrowing capacity | $ 400,000,000 | ||||||||
Credit facility unused fee, prior to IPO (in percentage) | 0.25% | ||||||||
Leverage ratio | 3.50 | ||||||||
Interest coverage ratio | 3 | ||||||||
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 | ABR Borrowings | Fed Funds Effective Rate Overnight Index Swap Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate (in percentage) | 0.50% | ||||||||
Revolving Credit Facility | 2021 Credit Facility | ABR Borrowings | Adjusted LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate (in percentage) | 1.00% | ||||||||
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% |
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 | Dec. 31, 2021 | Jun. 30, 2021 |
U.S. Treasury and direct obligations of U.S. government agencies | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | $ 27,934 | $ 28,838 |
Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 51,438 | 51,899 |
Commercial paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 22,789 | 21,836 |
Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 10,438 | 10,376 |
Fair Value, Recurring | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 940,157 | 670,315 |
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 | 27,934 | 28,838 |
Fair Value, Recurring | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 51,438 | 51,899 |
Fair Value, Recurring | Commercial paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 22,789 | 21,836 |
Fair Value, Recurring | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 10,438 | 10,376 |
Fair Value, Recurring | Level 1 | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 827,558 | 557,366 |
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 | 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 | 112,599 | 112,949 |
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 | 27,934 | 28,838 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 51,438 | 51,899 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 22,789 | 21,836 |
Fair Value, Recurring | Level 2 | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 10,438 | 10,376 |
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 | 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 | 827,558 | 557,366 |
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 | 827,558 | 557,366 |
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 | 827,558 | 557,366 |
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 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||||||
Preferred stock, liquidation preference | $ 260,044 | $ 260,044 | ||||
Accretion of redeemable noncontrolling interests | 11,621 | |||||
Preferred stock, dividend, payment in cash (in percentage) | 50.00% | |||||
Preferred stock, dividend, in-kind, percentage | 50.00% | |||||
Apax Acquisition | Redeemable Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, liquidation preference | $ 260,044 | |||||
Accretion of redeemable noncontrolling interests | $ 0 | $ 6,471 | $ 11,621 | $ 11,521 | ||
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% |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS - Schedule of redeemable noncontrolling interest (Details) - USD ($) $ in Thousands | 6 Months Ended |
Dec. 31, 2021 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Redeemable noncontrolling interest at beginning of period | $ 248,423 |
Accretion of Series A Redeemable Preferred Stock | 11,621 |
Redemption of outstanding shares | (260,044) |
Redeemable noncontrolling interest at ending of period | $ 0 |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) $ / shares in Units, $ in Thousands | Oct. 26, 2021shares | Oct. 19, 2021$ / sharesshares | Jul. 23, 2021shares | Dec. 29, 2020USD ($)$ / sharesshares | Jul. 31, 2021 | Dec. 31, 2020shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares | Sep. 30, 2021shares | Jul. 20, 2021$ / sharesshares | Jun. 30, 2021$ / sharesshares | Sep. 30, 2020shares | Jun. 30, 2020shares |
Class of Stock [Line Items] | |||||||||||||
Common stock, shares authorized (in shares) | 500,000,000 | 200,000 | 500,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||||
Common stock, shares outstanding (in shares) | 174,429,903 | 141,097,740 | |||||||||||
Preferred stock, shares outstanding (in shares) | 0 | ||||||||||||
Proceeds from issuance of preferred stock, net of offering costs | $ | $ 180,005 | $ 0 | $ 175,146 | ||||||||||
Preferred stock, initial liquidation (in dollars per share) | $ / shares | $ 35,000 | ||||||||||||
Stock split conversion ratio | 1,517.18 | ||||||||||||
Proceeds from promissory note with related party | $ | $ 64,989 | $ 0 | $ 64,989 | ||||||||||
Treasury stock (in shares) | 10,620,260 | 10,620,260 | 10,620,260 | ||||||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 23.07 | ||||||||||||
Payments for repurchase of common Stock | $ | $ 245,000 | ||||||||||||
Series A Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 | |||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 7,715 | |||||||||||
Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||||||
IPO | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||||||||
Number of shares issued in transaction (in shares) | 12,000,000 | 18,500,000 | |||||||||||
Offering price per share (in dollars per share) | $ / shares | $ 32 | $ 23 | |||||||||||
Issuance of preferred stock, net (in shares) | 11,705,039 | ||||||||||||
Over-Allotment Option | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued in transaction (in shares) | 1,800,000 | 2,775,000 | |||||||||||
Sale of stock, purchase period | 30 days | 30 days | |||||||||||
Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Issuance of preferred stock, net (in shares) | 5,143 | ||||||||||||
Preferred Stock | Series A Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, shares outstanding (in shares) | 5,143 | 0 | 5,143 | 0 | 7,715 | 0 | 0 | ||||||
Issuance of preferred stock, net (in shares) | 5,143 | 5,143 |
EQUITY COMPENSATION PLANS - Nar
EQUITY COMPENSATION PLANS - Narrative (Details) | Jul. 23, 2021shares | Jul. 20, 2021USD ($)shares | Nov. 02, 2018installment | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement expense (benefit) | $ 17,215,000 | $ 1,756,000 | $ 39,027,000 | $ 3,496,000 | |||
Number of installments | installment | 12 | ||||||
Options granted in period (in shares) | shares | 1,143,759 | ||||||
Expected dividend yield on stock | 0.00% | ||||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 20.00% | ||||||
Unrecognized compensation expense, weighted average period | 2 years | 2 years | 2 years 2 months 12 days | ||||
Award requisite service period | 2 years | ||||||
Unrecognized compensation expense | 68,344,000 | $ 68,344,000 | |||||
Weighted average grant date fair value of units | $ 9,511,000 | ||||||
Number of vested units (in shares) | shares | 352,124 | ||||||
Restricted Stock Units (RSUs) | 2021 Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award requisite service period | 3 years | ||||||
Restricted Stock Units (RSUs) | IPO | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of preferred stock, net (in shares) | shares | 1,761,578 | ||||||
Share-based Payment Arrangement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 25.00% | ||||||
Unrecognized compensation expense, weighted average period | 1 year 8 months 12 days | ||||||
Award vesting period | 6 months | ||||||
Unrecognized compensation expense | 5,718,000 | $ 5,718,000 | |||||
Weighted average grant date fair value of units | $ 409 | $ 500 | |||||
Share-based Payment Arrangement | Share-based Payment Arrangement, Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 25.00% | ||||||
Share-based Payment Arrangement | Share-based Payment Arrangement, Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 100.00% | ||||||
Share-based Payment Arrangement | IPO | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 24 months | ||||||
Employee Stock | 2021 Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock reserved for future issuance (in shares) | shares | 13,800,000 | ||||||
Employee Stock | 2021 Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock reserved for future issuance (in shares) | shares | 3,100,000 | ||||||
Purchase price of common stock, percent | 85.00% | ||||||
Maximum contribution per employee | $ 25,000 | ||||||
Employee Stock | 2021 Employee Stock Purchase Plan | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percent of eligible pay | 1.00% | ||||||
Employee Stock | 2021 Employee Stock Purchase Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percent of eligible pay | 10.00% | ||||||
Share-based Payment Arrangement, Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense, weighted average period | 2 years 7 months 6 days | ||||||
Unrecognized compensation expense | 9,144,000 | $ 9,144,000 | |||||
Share-based Payment Arrangement, Option | 2021 Omnibus Incentive Plan | Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted in period (in shares) | shares | 1,135,144 | ||||||
Modified MEP Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense, weighted average period | 1 year 7 months 6 days | ||||||
Unrecognized compensation expense | $ 39,752,000 | $ 39,752,000 | |||||
Number of vested units (in shares) | shares | 0 | 0 |
EQUITY COMPENSATION PLANS - MEP
EQUITY COMPENSATION PLANS - MEP Unit Incentive Activity (Details) | 6 Months Ended |
Dec. 31, 2021USD ($)shares | |
Share-based Payment Arrangement | |
Number of Units | |
Beginning balance (in shares) | shares | 38,079 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (629) |
Ending balance (in shares) | shares | 37,450 |
Weighted Average Floor Price | |
Beginning balance | $ 578 |
Granted | 0 |
Forfeited | 1,321 |
Ending balance | 565 |
Weighted Average Fair Value | |
Beginning balance | 442 |
Granted | 0 |
Forfeited | 365 |
Ending balance | $ 443 |
Modified MEP Units | |
Number of Units | |
Beginning balance (in shares) | shares | 36,879 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (1,103) |
Ending balance (in shares) | shares | 35,776 |
Weighted Average Floor Price | |
Beginning balance | $ 593 |
Granted | 0 |
Forfeited | 906 |
Ending balance | 583 |
Weighted Average Fair Value | |
Beginning balance | 379 |
Granted | 0 |
Forfeited | 1,105 |
Ending balance | $ 1,428 |
EQUITY COMPENSATION PLANS - Sto
EQUITY COMPENSATION PLANS - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Options Outstanding | |
Beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 1,143,759 |
Exercised (in shares) | shares | 0 |
Forfeited and cancelled (in shares) | shares | 0 |
Ending balance (in shares) | shares | 1,143,759 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ 0 |
Granted (in dollars per share) | 23.09 |
Exercised (in dollars per share) | 0 |
Forfeited and cancelled (in dollars per share) | 0 |
Ending balance (in dollars per share) | 23.09 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | 0 |
Granted (in dollars per share) | 9.40 |
Exercised (in dollars per share) | 0 |
Forfeited and cancelled (in dollars per share) | 0 |
Ending balance (in dollars per share) | $ 9.40 |
Stock Options Additional Disclosures | |
Granted, Weighted Average Remaining Contractual Term | 9 years 6 months 18 days |
Outstanding at September 30, 2021, Weighted Average Remaining Contractual Term | 9 years 6 months 18 days |
Options outstanding, aggregate intrinsic value | $ | $ 6,595 |
Options exercisable (in shares) | shares | 0 |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 0 |
Options exercisable, Weighted average grant date fair value (in dollars per share) | $ 0 |
Options exercisable, Aggregate intrinsic value | $ | $ 0 |
EQUITY COMPENSATION PLANS - Val
EQUITY COMPENSATION PLANS - Valuation Assumptions (Details) | 6 Months Ended |
Dec. 31, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility range of stock | 42.50% |
Expected life of option (in years) | 5 years 10 months 6 days |
Expected dividend yield on stock | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price per option (in dollars per share) | $ 23 |
Risk-free interest rate | 0.81% |
Fair value per option (in dollars per share) | $ 9.36 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price per option (in dollars per share) | $ 35.16 |
Risk-free interest rate | 1.12% |
Fair value per option (in dollars per share) | $ 14.51 |
EQUITY COMPENSATION PLANS - Res
EQUITY COMPENSATION PLANS - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of Units | |
Beginning balance (in shares) | shares | 0 |
Conversion of LTIP Units (in shares) | shares | 1,761,578 |
Granted (in shares) | shares | 1,553,837 |
Vested (in shares) | shares | (352,124) |
Forfeited (in shares) | shares | (86,733) |
Ending balance (in shares) | shares | 2,876,558 |
Weighted Average Grant Price | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Conversion of LTIP Units (in dollars per share) | $ / shares | 27.01 |
Granted (in dollars per share) | $ / shares | 30.02 |
Vested (in dollars per share) | $ / shares | 27.01 |
Forfeited (in dollars per share) | $ / shares | 28.63 |
Ending balance (in dollars per share) | $ / shares | $ 28.59 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to Paycor HCM, Inc. | $ (25,464) | $ (23,288) | $ (79,121) | $ (45,670) |
Weighted average outstanding shares: | ||||
Basic (in shares) | 174,429,903 | 151,371,687 | 170,444,536 | 151,544,844 |
Diluted (in shares) | 174,429,903 | 151,371,687 | 170,444,536 | 151,544,844 |
Basic net loss per share (in dollars per share) | $ (0.15) | $ (0.15) | $ (0.46) | $ (0.30) |
Diluted net loss per share (in dollars per share) | $ (0.15) | $ (0.15) | $ (0.46) | $ (0.30) |