Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Aug. 19, 2022 | Dec. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --06-30 | ||
Document Period End Date | Jun. 30, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-40640 | ||
Entity Registrant Name | PAYCOR HCM, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-1813909 | ||
Entity Address, Address Line One | 4811 Montgomery Road | ||
Entity Address, City or Town | Cincinnati | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45212 | ||
City Area Code | 800 | ||
Local Phone Number | 381-0053 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | PYCR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,350 | ||
Entity Common Stock, Shares Outstanding | 175,643,109 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrant’s definitive Proxy Statement on Schedule 14A to be prepared in connection with its 2022 Annual Meeting of Stockholders to be held on October 26, 2022 are incorporated by reference in Part III of this Annual Report on Form 10-K. The registrant intends to file the definitive Proxy Statement with the Securities and Exchange Commission not later than 120 days following June 30, 2022. | ||
Entity Central Index Key | 0001839439 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Cincinnati, Ohio |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 133,041 | $ 2,634 |
Accounts receivable, net | 21,511 | 16,472 |
Deferred contract costs | 37,769 | 24,503 |
Prepaid expenses | 9,421 | 6,586 |
Other current assets | 1,874 | 1,516 |
Current assets before funds held for clients | 203,616 | 51,711 |
Funds held for clients | 1,715,916 | 670,315 |
Total current assets | 1,919,532 | 722,026 |
Property and equipment, net | 31,675 | 41,080 |
Goodwill | 750,155 | 750,802 |
Intangible assets, net | 263,069 | 355,323 |
Capitalized software, net | 40,002 | 31,310 |
Long-term deferred contract costs | 125,705 | 90,880 |
Other long-term assets | 1,179 | 19,532 |
Total assets | 3,131,317 | 2,010,953 |
Current liabilities: | ||
Accounts payable | 13,945 | 11,978 |
Accrued expenses and other current liabilities | 13,907 | 15,782 |
Accrued payroll and payroll related expenses | 44,592 | 32,305 |
Deferred revenue | 11,742 | 11,948 |
Current liabilities before client fund obligations | 84,186 | 72,013 |
Client fund obligations | 1,719,047 | 669,960 |
Total current liabilities | 1,803,233 | 741,973 |
Deferred income taxes | 31,895 | 76,138 |
Other long-term liabilities | 11,458 | 16,680 |
Long-term debt, net | 0 | 49,100 |
Total liabilities | 1,846,586 | 883,891 |
Commitments and contingencies (Note 18) | ||
Redeemable noncontrolling interest | 0 | 248,423 |
Stockholders' equity: | ||
Common stock $0.001 par value per share, 500,000,000 shares authorized, 174,909,539 shares outstanding at June 30, 2022 and 141,097,740 shares outstanding at June 30, 2021 | 175 | 141 |
Treasury stock, at cost, 10,620,260 shares at June 30, 2022 and June 30, 2021 | (245,074) | (245,074) |
Additional paid-in capital | 1,926,800 | 1,133,399 |
Accumulated deficit | (395,389) | (275,751) |
Accumulated other comprehensive (loss) income | (1,781) | 3,152 |
Total stockholders' equity | 1,284,731 | 878,639 |
Total liabilities, redeemable noncontrolling interest and stockholders' equity | 3,131,317 | 2,010,953 |
Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Series A Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock | $ 0 | $ 262,772 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Jun. 30, 2021 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 174,909,539 | 141,097,740 |
Treasury stock (in shares) | 10,620,260 | 10,620,260 |
Preferred stock, shares outstanding (in shares) | 0 | 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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | |||
Recurring and other revenue | $ 427,032 | $ 350,956 | $ 317,620 |
Interest income on funds held for clients | 2,355 | 1,821 | 10,289 |
Total revenues | 429,387 | 352,777 | 327,909 |
Cost of revenues | 168,188 | 154,487 | 139,683 |
Gross profit | 261,199 | 198,290 | 188,226 |
Operating expenses: | |||
Sales and marketing | 170,629 | 106,123 | 99,998 |
General and administrative | 187,050 | 145,480 | 137,071 |
Research and development | 43,140 | 36,020 | 45,866 |
Total operating expenses | 400,819 | 287,623 | 282,935 |
Loss from operations | (139,620) | (89,333) | (94,709) |
Other (expense) income: | |||
Interest expense | (541) | (2,541) | (1,780) |
Other | 1,570 | (1,420) | 9,004 |
Loss before benefit for income taxes | (138,591) | (93,294) | (87,485) |
Income tax benefit | (30,574) | (20,812) | (20,182) |
Net loss | (108,017) | (72,482) | (67,303) |
Less: Accretion of redeemable noncontrolling interests | 11,621 | 24,438 | 22,890 |
Net loss attributable to Paycor HCM, Inc. | $ (119,638) | $ (96,920) | $ (90,193) |
Basic net loss attributable to Paycor HCM, Inc. per share (in dollars per share) | $ (0.69) | $ (0.66) | $ (0.59) |
Diluted net loss attributable to Paycor HCM, Inc. per share (in dollars per share) | $ (0.69) | $ (0.66) | $ (0.59) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 172,636,523 | 146,364,225 | 151,718,000 |
Diluted (in shares) | 172,636,523 | 146,364,225 | 151,718,000 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service [Member] | Service [Member] | Service [Member] |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (108,017) | $ (72,482) | $ (67,303) |
Other comprehensive (loss) income, net of tax: | |||
Unrealized (loss) gain on foreign currency translation | (297) | 425 | 0 |
Unrealized (loss) gain on available-for-sale securities, net of tax | (2,683) | (43) | 104 |
Other comprehensive (loss) income, net of tax | (2,980) | 382 | 104 |
Comprehensive loss | (110,997) | (72,100) | (67,199) |
Less: Comprehensive income attributable to redeemable noncontrolling interests | 11,621 | 24,438 | 22,890 |
Comprehensive loss attributable to Paycor HCM, Inc. | $ (122,618) | $ (96,538) | $ (90,089) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Series A Preferred Stock | Total Stockholders' Equity before Noncontrolling Interest | Preferred Stock Series A Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Preferred stock, shares outstanding, beginning balance (in shares) at Jun. 30, 2019 | 0 | |||||||||
Stockholders' equity, beginning balance at Jun. 30, 2019 | $ 1,038,570 | $ 1,038,610 | $ 0 | $ 152 | $ 0 | $ 1,124,310 | $ (88,518) | $ 2,666 | $ (40) | |
Common stock, shares outstanding, beginning balance (in shares) at Jun. 30, 2019 | 151,718,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss attributable to Paycor HCM, Inc. | (90,193) | (90,193) | (90,193) | |||||||
Stock-based compensation expense | 4,906 | 4,906 | 4,906 | |||||||
Other comprehensive (loss) income | 104 | 104 | 104 | |||||||
Other | (62) | (102) | (102) | 40 | ||||||
Preferred stock, shares outstanding, ending balance (in shares) at Jun. 30, 2020 | 0 | |||||||||
Stockholders' equity, ending balance at Jun. 30, 2020 | 953,325 | 953,325 | $ 0 | $ 152 | 0 | 1,129,216 | (178,813) | 2,770 | 0 | |
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2020 | 151,718,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss attributable to Paycor HCM, Inc. | (96,920) | (96,920) | (96,920) | |||||||
Stock-based compensation expense | 4,172 | 4,172 | 4,172 | |||||||
Issuance of preferred stock, net (in shares) | 7,715 | |||||||||
Issuance of stock | 262,772 | 262,772 | $ 262,772 | |||||||
Repurchase of common stock, at cost (in shares) | (10,620,260) | |||||||||
Repurchase of common stock, at cost | (245,074) | (245,074) | $ (11) | (245,074) | 11 | |||||
Other comprehensive (loss) income | 382 | 382 | 382 | |||||||
Other | $ (18) | (18) | (18) | |||||||
Preferred stock, shares outstanding, ending balance (in shares) at Jun. 30, 2021 | 0 | 7,715 | 7,715 | |||||||
Stockholders' equity, ending balance at Jun. 30, 2021 | $ 878,639 | 878,639 | $ 262,772 | $ 141 | (245,074) | 1,133,399 | (275,751) | 3,152 | 0 | |
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2021 | 141,097,740 | 141,097,740 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss attributable to Paycor HCM, Inc. | $ (119,638) | (119,638) | (119,638) | |||||||
Stock-based compensation expense | 71,376 | 71,376 | 71,376 | |||||||
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 | 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 | |||||||||
Issuance of common stock under employee stock plans (in shares) | 479,636 | |||||||||
Issuance of common stock under employee stock plans | 3,187 | 3,187 | $ 1 | 3,186 | ||||||
Other comprehensive (loss) income | $ (2,980) | (2,980) | (2,980) | |||||||
Other | 1,953 | (1,953) | ||||||||
Preferred stock, shares outstanding, ending balance (in shares) at Jun. 30, 2022 | 0 | 0 | 0 | |||||||
Stockholders' equity, ending balance at Jun. 30, 2022 | $ 1,284,731 | $ 1,284,731 | $ 0 | $ 175 | $ (245,074) | $ 1,926,800 | $ (395,389) | $ (1,781) | $ 0 | |
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2022 | 174,909,539 | 174,909,539 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | |||
Net loss | $ (108,017) | $ (72,482) | $ (67,303) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 6,457 | 6,947 | 5,462 |
Amortization of intangible assets and software | 124,016 | 139,354 | 127,755 |
Amortization of deferred contract costs | 31,471 | 19,501 | 10,206 |
Stock-based compensation expense | 71,376 | 4,172 | 4,906 |
Amortization of debt acquisition costs | 88 | 637 | 620 |
Deferred tax benefit | (30,940) | (21,022) | (20,181) |
Bad debt expense | 2,085 | 1,791 | 1,812 |
Gain on sale of investments | (2) | (127) | (2,513) |
Gain on installment sale | (1,359) | 0 | 0 |
Loss (gain) on foreign currency exchange | 309 | (755) | 0 |
Loss on lease exit | 9,112 | 0 | 0 |
Change in fair value of deferred consideration | (138) | 0 | 0 |
Loss (gain) on extinguishment of debt | 0 | 1,806 | (6,240) |
Changes in assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | (7,133) | (7,731) | (2,584) |
Prepaid expenses and other current assets | (3,193) | 962 | 1,238 |
Other long-term assets | 448 | (1,726) | (240) |
Accounts payable | 2,015 | (244) | (1,407) |
Accrued liabilities | 12,195 | 5,430 | (13,973) |
Deferred revenue | 1,077 | (1,350) | 5,500 |
Other long-term liabilities | (5,954) | (1,428) | 8,808 |
Deferred contract costs | (79,562) | (62,962) | (51,778) |
Net cash provided by operating activities | 24,351 | 10,773 | 88 |
Cash flows from investing activities: | |||
Purchases of client funds available-for-sale securities | (211,473) | (237,054) | (571,385) |
Proceeds from sale and maturities of client funds available-for-sale securities | 166,372 | 235,768 | 722,588 |
Purchase of property and equipment | (1,986) | (3,335) | (7,833) |
Proceeds from note receivable on installment sale | 3,040 | 0 | 0 |
Acquisition of intangible assets | (9,706) | (9,252) | (2,995) |
Acquisition of Paltech Solutions, Inc., net of cash acquired | 0 | (16,740) | 0 |
Internally developed software costs | (30,797) | (21,968) | (18,846) |
Net cash (used in) provided by investing activities | (84,550) | (52,581) | 121,529 |
Cash flows from financing activities: | |||
Net change in cash and cash equivalents held to satisfy client funds obligations | 1,037,543 | 25,983 | (29,803) |
Capital contribution in Apax Transaction | 0 | 0 | (63) |
Payment of contingent consideration | 0 | (3,000) | 0 |
Payment of deferred consideration | (2,752) | 0 | 0 |
Proceeds from promissory note with related party | 0 | 64,989 | 0 |
Repayment of promissory note with related party | 0 | (64,989) | 0 |
Proceeds from line-of-credit | 3,500 | 107,020 | 114,127 |
Repayments of line-of-credit | (52,600) | (62,921) | (109,126) |
Proceeds from debt | 0 | 25,000 | 20,000 |
Repayments of debt and capital lease obligations | (323) | (44,517) | (15,886) |
Proceeds from issuance of preferred stock, net of offering costs | 0 | 262,772 | 0 |
Purchase of treasury stock at cost | 0 | (245,074) | 0 |
Proceeds from the issuance of common stock sold in the IPO, net of offering costs and underwriting discount | 454,915 | 0 | 0 |
Payments of ordinary dividends, noncontrolling interest | (260,044) | (9,350) | 0 |
Proceeds from employee stock purchase plan | 3,187 | 0 | 0 |
Other financing activities | (395) | (597) | (129) |
Net cash provided by (used in) financing activities | 1,183,031 | 55,316 | (20,880) |
Impact of foreign exchange on cash and cash equivalents | 91 | 44 | 0 |
Net change in cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | 1,122,923 | 13,552 | 100,737 |
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, beginning of period | 560,000 | 546,448 | 445,711 |
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, end of period | 1,682,923 | 560,000 | 546,448 |
Supplemental disclosure of non-cash investing, financing and other cash flow information: | |||
Capital expenditures in accounts payable | 5 | 129 | 1,032 |
Cash paid during the year for interest | 154 | 1,347 | 823 |
Reconciliation of cash, cash equivalents, restricted cash and short-term investments, and funds held for clients to the Consolidated Balance Sheets | |||
Cash and cash equivalents | 133,041 | 2,634 | 828 |
Restricted cash and short-term investments | 0 | 0 | 12,017 |
Funds held for clients | 1,549,882 | 557,366 | 533,603 |
Total cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | $ 1,682,923 | $ 560,000 | $ 546,448 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2022 | |
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 fiscal year ended June 30, 2022. Upon completion of the IPO, $4,595 of offering costs, $3,827 of which were paid during the fiscal year ended June 30, 2022, were recorded to additional paid-in capital and accounted for as a reduction of the IPO proceeds in the 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 incentive units granted under the Pride Aggregator, L.P. Management Equity Plan (“MEP”) converted to time-based incentive units, with 25% vesting upon successive 6-month anniversary dates for the 24 months beginning on the date of 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. All share and per share amounts have been retroactively adjusted to reflect the IPO Stock Split for all periods presented within the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of presentation and consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying financial statements are presented on a consolidated basis for all periods presented. All intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 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 of operations and financial condition can also be affected by economic, political, legislative, regulatory and legal actions, including but not limited to health epidemics and pandemics and their 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 the Company’s results of operations and financial condition. While the Company maintains reserves for anticipated liabilities and carries various levels of insurance, the Company could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings. Concentrations of risk The Company regularly maintains deposits in banks which may, at times, exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company mitigates exposure to credit risk by placing cash and cash equivalents with highly rated financial institutions. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents. No individual client represents more than 1% of total revenues. The majority of all revenues are generated by clients in the United States. Cash and cash equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original issue maturity of three months or less and money market funds to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value given the short-term maturity of those instruments. Restricted cash and short-term investments The Company designated a portion of cash received from the Apax Acquisition as restricted within the consolidated balance sheets since the cash and short-term investments are being held for the settlement of the cash-based compensation awards by the employees upon vesting. The short-term investments consist of U.S. Treasury Notes, direct obligations of U.S. government agencies and high-grade corporate bonds. As of June 30, 2021, all restricted cash received in the Apax Acquisition has been liquidated through the settlement of cash-based liability compensation awards. Funds held for clients The Company generally collects substantially all funds from clients in advance of performing payroll and payroll tax filing services on behalf of those clients. Funds held for clients consist of cash and cash equivalents and debt-security investments. Debt-security investments are classified as available-for-sale and are recorded at fair value, and consist of U.S. Treasury Notes, direct obligations of U.S. government agencies such as the Federal Home Loan Bank, the Federal National Mortgage Association and the Federal Farm Credit Bank, high grade corporate bonds, FDIC insured certificates of deposit, and other short-term and long-term investments. At June 30, 2022 and 2021, all the Company’s corporate bond investments are rated investment grade or better. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying client obligations to remit funds relating to payroll and payroll tax filing services. Unrealized gains and losses, net of applicable income taxes, are reported as other comprehensive (loss) income, net of tax in the consolidated statements of comprehensive loss. Realized gains and losses on the sale of securities are determined by specific identification of the security’s cost basis. Client fund obligations Client fund obligations represent the Company’s contractual obligations to remit funds to satisfy clients’ payroll and tax payment obligations and are recorded in the accompanying consolidated balance sheets at the time the Company obtains the funds from clients. The client fund obligations represent the liabilities that will be remitted to the appropriate client employees, taxing authorities and other parties within one year of the balance sheet date. Accounts receivable, net Accounts receivable balances are shown on the consolidated balance sheets net of the allowance for doubtful accounts of $3,268 and $2,402 as of June 30, 2022 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 client’s ability to pay. The Company performs ongoing credit evaluations and generally requires no collateral from clients. Management reviews individual accounts as they become past due to determine collectability. The allowance for doubtful accounts is adjusted periodically based on management’s consideration of past due accounts. Individual accounts are charged against the allowance when all reasonable collection efforts have been exhausted. Property and equipment, net Property and equipment are recorded at cost. Depreciation and amortization on the property and equipment is computed using the straight-line method over the following estimated useful lives: Computers, equipment and software 3 to 5 years Office equipment 5 to 7 years Furniture and fixtures 7 years Leasehold improvements Over lease term Land improvements 15 years Building 30 years Long-lived assets, including property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for impairment, the Company first compares the undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques. In accordance with the decision to exit certain leases of facilities in fiscal year 2022, the carrying value of ceased-use furniture, fixtures, equipment and leasehold improvements was written off, resulting in an impairment charge of $4,910. No impairment was recorded for any other period presented. Goodwill and intangible assets, net Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company performs an annual impairment review of goodwill in its fiscal fourth quarter and additional impairment reviews when events and circumstances indicate it is more likely than not that an impairment may have occurred. The Company assesses goodwill for impairment at the consolidated level, which represents its single reporting unit. In evaluating goodwill for impairment, the Company has the option to first perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of its single reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance, among others. Under a quantitative assessment, fair value of the Company’s single reporting unit is estimated using a weighted methodology considering the output from both the income and market approaches. The income approach incorporates the use of a discounted cash flow (“DCF”) analysis. A number of judgments are involved in the application of the DCF model, including projections of business performance, weighted average cost of capital, and terminal values. The market approach is performed using the Guideline Public Companies method which is based on earnings multiple data derived from publicly traded peer group companies. The Company elected to perform a qualitative assessment during both fiscal years 2022 and 2021, and determined for both periods that no indicators of impairment existed, and the fair value of the Company significantly exceeded its carrying amount. Other intangible assets principally consist of acquired software, customer relationships and trade names and are carried at cost, less accumulated amortization. These intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company tests intangible assets for potential impairment in a manner consistent with other long-lived assets when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. No impairment was recorded for any periods presented. Capitalized software, net The Company has developed payroll and human resources software to provide its clients with the Company’s services. Capitalized costs include external direct costs of materials and services associated with developing or obtaining internal-use computer software and certain payroll and payroll-related costs for employees who are directly associated with internal-use computer software projects. Expenditures for software purchases and software developed or obtained for internal-use are capitalized and amortized on a straight-line basis over the estimated product life, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. Revenue recognition Revenues are recognized when control of the promised goods or services is transferred to clients in an amount that reflects the consideration the Company is entitled to for those goods or services. The Company derives its revenue from contracts predominantly from recurring and non-recurring service fees. The majority of its agreements are generally cancellable by the client on 30 days’ notice. Recurring fees are derived from payroll, workforce management, and HR-related cloud-based computing services. The majority of the Company’s recurring fees are satisfied over time as the services are provided during each client’s payroll period, and the timing of revenue recognition for these fees is consistent with the timing of invoicing as they occur simultaneously upon the client payroll processing period or by month. The performance obligations related to payroll services are delivered based upon the payroll frequency of the client with the fee charged and collected based on a per-employee-per-month or per-employee-per-payroll basis. The performance obligations related to workforce management and HR-related services are generally satisfied each month with the fee charged and collected based on a per-employee-per-month basis. For subscription-based fees, which can include payroll, workforce management, and HR-related services, the Company recognizes the applicable recurring fees each month with the fee charged and collected based on a per-employee-per-month basis. Non-recurring service fees consist mainly of nonrefundable implementation fees. The implementation activities involve setting the client up and loading data into the Company’s cloud-based modules. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract beyond the normal 30-day contractual period without payment of an additional upfront implementation fee. Implementation fees are deferred and recognized as revenue over the period to which the material right exists, which is the period the client is expected to benefit from not having to pay an additional nonrefundable implementation fee upon renewal of the service. Sales taxes collected from clients and remitted to governmental authorities where applicable are accounted for on a net basis and therefore are excluded from revenues in the consolidated statements of operations. Interest on funds held for clients is earned primarily on funds that are collected from clients before due dates for payroll tax administration services and for employee payment services and invested until remittance to the applicable tax or regulatory agencies or client employees. The interest earned on these funds is included in total revenue within the consolidated statements of operations because the collecting, holding, and remitting of these funds are components of providing these services. Cost of revenues Cost of revenues includes costs relating to the provision of ongoing customer support and implementation activities, payroll tax filing, distribution of printed checks and other materials providing the Company’s payroll and other HCM solutions. These costs primarily consist of expenses relating to associates who service customers, including employee-related costs, as well as third-party processing fees, delivery costs, hosting costs, and bank fees associated with client fund transfers. The Company capitalizes costs to fulfill a contract related to its products if they are identifiable, generate or enhance resources used to satisfy future performance obligations and are expected to be recovered. The Company utilizes the portfolio approach based on the period in which the costs are incurred to account for the cost of fulfilling a contract. Capitalized costs to fulfill a contract are amortized over the expected period of benefit, which is generally six years based on the Company’s average client life, derived from analyzing client attrition rates using historical data as well as other qualitative factors, including rate of technological changes. The expected period of benefit has been determined to be the average client life primarily because the Company does not incur any additional costs to fulfill contracts upon renewal. The Company recognizes fulfillment costs when an existing client purchases additional services. The additional costs only relate to the additional services purchased and do not relate to the renewal of previous services. The Company continues to expense certain costs to fulfill a contract if those costs do not meet the capitalization criteria. Sales and marketing Sales and marketing expenses consist 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 $22,130, $17,964, and $14,874 for the fiscal years ended June 30, 2022, 2021 and 2020, respectively. The Company defers certain commission costs that meet the capitalization criteria. The Company utilizes the portfolio approach based on the period in which the commissions are incurred to account for the cost of obtaining a contract. Capitalized costs to obtain a contract are amortized over the expected period of benefit, which is generally six years based on the Company’s average client life, derived from analyzing client attrition rates using historical data as well as other qualitative factors, including rate of technological changes. The expected period of benefit approximates the average client life primarily because the Company does not incur any additional costs to obtain contracts upon renewal. General and administrative General and administrative expenses consist primarily of employee-related costs, including employee-related costs for the Company’s administrative, finance, accounting, legal, enterprise technology and human resources departments. Additional expenses include consulting and professional fees, occupancy costs, insurance, and other corporate expenses. Research and development Research and development expenses consist primarily of employee-related expenses for the Company’s software development and product management staff. Additional expenses include costs related to the development, maintenance, quality assurance and testing of new technologies, and ongoing refinement of the Company’s existing solutions. Research and development expenses, other than internal-use software costs qualifying for capitalization, including costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. The Company capitalizes a portion of its development costs related to internal-use software, which are amortized over a period of three years into cost of revenues. The timing of the Company’s capitalized development projects may affect the amount of development costs expensed in any given period. The table below sets forth the amounts of capitalized and expensed research and development costs for the fiscal years ended June 30, 2022, 2021 and 2020: Fiscal Years Ended June 30, (in thousands) 2022 2021 2020 Capitalized software $ 29,831 $ 21,228 $ 18,846 Research and development expenses $ 43,140 $ 36,020 $ 45,866 Interest expense Interest expense consists primarily of interest payments and accruals relating to outstanding borrowings. Other (expense) income Other (expense) income generally consists of other income and expense items outside of the Company’s normal operations, such as realized gains or losses on the sale of certain positions of funds held for clients, gains or losses on the extinguishment of debt and expenses relating to the Company’s financing arrangements. Stock-based compensation The Company recognizes all employee and director stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of actual forfeitures, on a straight-line basis over the requisite service period for the award. For periods prior to the 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 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 14 - “Equity Compensation Plans” for additional information on the Company’s stock-based compensation plans. Income taxes The Company accrues income taxes payable or refundable and recognizes deferred tax assets and liabilities based on differences between the book and tax basis of assets and liabilities. The Company measures deferred tax assets and liabilities using enacted rates in effect for the years in which the differences are expected to reverse and recognizes the effect of a change in enacted rates in the period of enactment. The Company recognizes deferred tax assets to the extent it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. When uncertain tax positions exist, the Company recognizes the benefit of tax positions to the extent that the benefit will be more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position, as well as consideration of the available facts and circumstances. Interest associated with uncertain tax positions are recognized as a component of income tax expense. Loss per share Basic loss per share is computed by dividing net loss attributable to Paycor HCM, Inc. by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed by dividing net loss attributable to Paycor HCM, Inc. by the weighted-average number of common shares outstanding during the period and the impact of securities that would have a dilutive effect, if any. See Note 15 - “Net Loss Per Share” for further discussion. Deferred IPO issuance costs Deferred issuance costs, which primarily consist of direct incremental legal and accounting fees relating to the IPO of the Company’s common stock, were capitalized. The deferred issuance costs were offset against IPO proceeds upon the consummation of the offering, which closed on July 23, 2021. The Company capitalized and deferred approximately $2,423 in IPO issuance costs as of June 30, 2021, which are included within other long-term assets within the consolidated balance sheets. Segments Operating segments are defined as components of an enterprise engaging in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business as a single operating segment at the consolidated level. Pending accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases” (Topic 842). This update amends existing accounting standards for lease accounting and requires lessees to recognize virtually all 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 assets 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 consolidated balance sheets. The Company will adopt this ASU on July 1, 2022 using the modified retrospective approach. The Company plans to apply the package of practical expedients in the guidance which, among other things, includes carrying forward the historical lease classification. The Company plans to make accounting policy elections not to apply the new guidance to leases with a term of less than 12 months, as well as to derive the incremental borrowing rate at the July 1, 2022 adoption date based on the remaining lease term as of the adoption date. As of July 1, 2022, the Company expects to record a right-of-use asset in the range of $15 million - $19 million and a lease liability in the range of $22 million - $26 million based on the current portfolio of leases, which primarily consist of real estate operating leases. 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 standard 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 any such securities is a credit loss. The Company is currently evaluating this standard and the potential effects of these changes to its consolidated financial statements and expects to adopt this new standard in the fiscal year beginning July 1, 2023 if the Company continues to qualify as an emerging growth company. |
REVENUE
REVENUE | 12 Months Ended |
Jun. 30, 2022 | |
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: Fiscal Year Ended June 30, 2022 2021 2020 Recurring fees $ 414,677 $ 337,012 $ 309,948 Implementation services and other 12,355 13,944 7,672 Recurring and other revenue $ 427,032 $ 350,956 $ 317,620 Deferred revenue The Company recognizes deferred revenue for nonrefundable upfront fees as well as for subscription services related to certain ancillary products invoiced prior to the satisfaction of the performance obligation. The nonrefundable upfront fees related to implementation services are typically included on the client’s first invoice. Implementation fees are deferred and recognized as revenue over an estimated 24-month period to which the material right exists, which is the period the client is expected to benefit from not having to pay an additional nonrefundable implementation fee upon renewal of the service. The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: Fiscal Year Ended June 30, 2022 2021 Balance, beginning of period $ 16,047 $ 15,916 Deferred revenue acquired — 1,374 Deferral of revenue 20,552 17,781 Revenue recognized (19,468) (19,033) Impact of foreign exchange (85) 9 Balance, end of period $ 17,046 $ 16,047 Deferred revenue is recorded within deferred revenue and other long-term liabilities on the consolidated balance sheets. The Company will recognize deferred revenue of $11,742 in fiscal year 2023, $4,100 in fiscal year 2024, and $1,204 in fiscal year 2025. Deferred contract costs As of and for the Fiscal Year Ended June 30, 2022 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 52,926 $ 33,569 $ (14,153) $ 72,342 Costs to fulfill a contract 62,457 45,993 (17,318) 91,132 Total $ 115,383 $ 79,562 $ (31,471) $ 163,474 As of and for the Fiscal Year Ended June 30, 2021 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 32,233 $ 29,568 $ (8,875) $ 52,926 Costs to fulfill a contract 39,689 33,394 (10,626) 62,457 Total $ 71,922 $ 62,962 $ (19,501) $ 115,383 |
BUSINESS COMBINATION AND ASSET
BUSINESS COMBINATION AND ASSET ACQUISITION | 12 Months Ended |
Jun. 30, 2022 | |
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 allocation 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 consisted of a maximum of $3,000 in payments based on the achievement of operational milestones within a three-year period. The contingent consideration was initially measured at fair value at the acquisition date and recorded as a liability. The liability at fair value was based on the estimated future payments. The Company made payments of $1,000 in March 2021 and $2,000 in May 2021 to fully satisfy the contingent payment obligation. 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 fiscal year ended June 30, 2021. These costs were expensed as incurred in general and administrative expenses on the accompanying consolidated statements of operations. Asset Acquisition On February 4, 2021, the Company acquired payroll, timekeeping and HCM service customer relationships from another large provider of HCM services for an initial purchase price 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 fiscal years ended June 30, 2022 and 2021 were $6,688 and $—, 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 allocation 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 consisted of a maximum of $3,000 in payments based on the achievement of operational milestones within a three-year period. The contingent consideration was initially measured at fair value at the acquisition date and recorded as a liability. The liability at fair value was based on the estimated future payments. The Company made payments of $1,000 in March 2021 and $2,000 in May 2021 to fully satisfy the contingent payment obligation. 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 fiscal year ended June 30, 2021. These costs were expensed as incurred in general and administrative expenses on the accompanying consolidated statements of operations. Asset Acquisition On February 4, 2021, the Company acquired payroll, timekeeping and HCM service customer relationships from another large provider of HCM services for an initial purchase price 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 fiscal years ended June 30, 2022 and 2021 were $6,688 and $—, respectively. |
FUNDS HELD FOR CLIENTS
FUNDS HELD FOR CLIENTS | 12 Months Ended |
Jun. 30, 2022 | |
Funds Held For Clients [Abstract] | |
FUNDS HELD FOR CLIENTS | FUNDS HELD FOR CLIENTS: Funds held for clients are as follows: June 30, 2022 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 1,549,882 $ — $ — $ 1,549,882 U.S. Treasury and direct obligations of U.S. government agencies 29,367 — (290) 29,077 Corporate bonds 112,753 4 (1,894) 110,863 Commercial paper 6,642 2 (3) 6,641 Other securities 19,817 2 (366) 19,453 $ 1,718,461 $ 8 $ (2,553) $ 1,715,916 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 is exposed to interest rate risk as rate volatility will cause fluctuations in the earnings potential of future investments. The Company does not utilize derivative financial instruments to manage interest rate risk. The Company reviews its investments on an ongoing basis to determine if any are other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. The Company has no material individual securities that have been in a continuous unrealized loss position greater than twelve months. The Company believes these unrealized losses result from changes in interest rates rather than credit risk, and therefore does not believe the related investments are other-than-temporarily impaired. Expected maturities as of June 30, 2022 for client fund assets are as follows: Due within fiscal year 2023 $ 1,632,317 Due within fiscal year 2024 37,050 Due within fiscal year 2025 35,092 Due after fiscal year 2025 11,457 Total $ 1,715,916 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET: A summary of the Company’s property and equipment, net is as follows: June 30, June 30, Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 14,951 13,427 Furniture and fixtures 2,246 4,596 Office equipment 2,538 2,337 Leasehold improvements 1,430 8,227 48,600 56,022 Accumulated depreciation and amortization (16,925) (14,942) Property and equipment, net $ 31,675 $ 41,080 |
CAPITALIZED SOFTWARE, NET
CAPITALIZED SOFTWARE, NET | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
CAPITALIZED SOFTWARE, NET | CAPITALIZED SOFTWARE, NET: A summary of the Company’s capitalized software, net is as follows: June 30, June 30, Capitalized software $ 83,682 $ 52,945 Accumulated amortization (43,680) (21,635) Capitalized software, net $ 40,002 $ 31,310 The following is a schedule of future amortization expense as of June 30, 2022: 2023 $ 21,006 2024 14,135 2025 4,861 $ 40,002 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2022 | |
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, 2020 $ 733,801 7Geese Acquisition 15,793 Foreign currency translation 1,208 Balance at June 30, 2021 $ 750,802 Foreign currency translation (647) Balance at June 30, 2022 $ 750,155 Components of intangible assets were as follows: June 30, June 30, Cost: Technology $ 142,165 $ 140,665 Customer relationships 443,187 434,983 Trade name 105,672 105,672 Total cost $ 691,024 $ 681,320 Accumulated amortization: Technology $ (135,982) $ (116,669) Customer relationships (266,129) (190,538) Trade name (25,844) (18,790) Total accumulated amortization $ (427,955) $ (325,997) Intangible assets, net $ 263,069 $ 355,323 The following is a schedule of future amortization expense as of June 30, 2022: 2023 $ 89,516 2024 83,380 2025 31,478 2026 7,043 2027 7,043 Thereafter 44,609 $ 263,069 |
DEBT AGREEMENTS AND LETTERS OF
DEBT AGREEMENTS AND LETTERS OF CREDIT | 12 Months Ended |
Jun. 30, 2022 | |
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: June 30, 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, providing a $100,000 senior secured revolving credit facility (the “2021 Credit Facility”). The 2021 Credit Facility includes an “accordion feature” that allows the Company, under certain circumstances, to increase the size of the 2021 Credit Facility by an additional principal amount of 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 Facility from $100,000 to $200,000. No other significant terms of the 2021 Credit Agreement were changed in connection with the 2021 Amendment. Borrowings under the 2021 Credit Facility, if any, have variable interest rates. The variable interest rates equal, 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 will mature on June 11, 2026. Borrowings under the 2021 Credit Agreement are guaranteed by a subsidiary, Pride Guarantor, Inc. and certain 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 Agreement contains financial covenants, which are reviewed for compliance on a quarterly basis, including a total leverage ratio financial covenant of 3.50 to 1.00 and an interest coverage ratio financial covenant of 3.00 to 1.00. As of June 30, 2022, 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 the 2021 Credit Facility. As of June 30, 2022, there were no outstanding revolver borrowings under the 2021 Credit Facility. As a result of the Company entering into the 2021 Credit Facility, the Company expensed approximately $2,195 primarily consisting of write-offs of previously deferred unamortized deferred financing fees and certain third-party costs. Amounts expensed are recorded as other (expense) income - other on the consolidated statement of operations for the fiscal year ended June 30, 2021. Additionally, the Company capitalized approximately $342 of deferred financing fees for the year ended June 30, 2021 in connection with entering into the 2021 Credit Facility, which are included in other long-term assets within the consolidated balance sheets. 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 within the consolidated statement of operations for the fiscal year ended June 30, 2022. Additionally, the Company capitalized approximately $100 of deferred financing fees for the fiscal year ended June 30, 2022 in connection with the 2021 Amendment, which are included in other long-term assets within the consolidated balance sheets. Promissory Note with Related Party In December 2020, in connection with the share repurchase discussed further in Note 13 - “Capital Stock,” the Company entered into a promissory note for $64,989 with Pride Aggregator L.P. (the “Intercompany Promissory Note”). The Intercompany Promissory Note was payable on-demand and accrued interest at a rate of 0.15% per annum. The Company repaid the Intercompany Promissory Note in full in January 2021, concurrent with the closing of the January 2021 issuance of preferred stock. The Company had no outstanding letters of credit as of June 30, 2022 or June 30, 2021. |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
LEASES | LEASES: Capital Leases The Company has several lease agreements for equipment that are classified as capital leases. The cost and accumulated depreciation of equipment under capital leases included in the accompanying Consolidated Statements of Financial Position within property and equipment, net were $1,249 and $460, respectively, as of June 30, 2022. Depreciation expense associated with capital leases for the fiscal year ended June 30, 2022 was $284. The future minimum lease payments under capital leases and the present value of net minimum lease payments as of June 30, 2022 are as follows: 2023 $ 323 2024 323 2025 296 2026 44 2027 — Total minimum lease payments 986 Less: Amount representing interest (74) Present value of minimum lease payments 912 Less: Current maturities of capital lease obligations (283) Long-term capital lease obligations $ 629 Current maturities of capital lease obligations and long-term capital lease obligations are recorded within accrued expenses and other current liabilities and other long-term liabilities, respectively, within the consolidated balance sheets. Operating Leases The Company leases office space (except for its headquarters) and equipment under operating leases expiring on various dates through June 2030, with voluntary renewal options that can extend the term at the Company’s discretion. The following is a schedule of future annual minimum lease payments required under operating leases as of June 30, 2022: 2023 $ 6,678 2024 5,132 2025 4,257 2026 4,031 2027 3,721 Thereafter 2,890 Total minimum lease payments 26,709 Less sublease income of leased properties (1) (7,212) Net minimum lease payments $ 19,497 (1) Represents receipts for noncancellable subleases at June 30, 2022. Rent expense for operating leases is accounted for on a straight-line basis. To the extent the rent expense exceeds actual rent payments, the Company records a deferred rent liability. Once the rent payments exceed the straight-line rent expense, the liability is reduced. At June 30, 2022 and 2021, the deferred rent liability was approximately $520 and $5,330, respectively, which is included in accrued expenses and other current liabilities and other long-term liabilities within the consolidated balance sheets. Rent expense for the fiscal years ending June 30, 2022, 2021, and 2020 was approximately $5,452, $5,411, $5,285, respectively. Exit or Disposal Activities In the third quarter of fiscal year 2022, as a result and in consideration of the changing use of office space by the workforce amid the impacts of the COVID-19 pandemic, the Company evaluated its existing real estate lease portfolio. This evaluation included the establishment of a formal plan to exit certain leased office spaces that are no longer utilized, which was finalized in the third quarter of fiscal year 2022. The Company recognized a loss on exit of certain leases of $9,055, which is included in general and administrative expenses in the accompanying statement of operations for the fiscal year ended June 30, 2022. The loss included the present value of the remaining lease obligation on the cease-use date, net of estimated sublease income, as well as the write-off of $4,910 of the carrying value of ceased-use furniture, fixtures, equipment and leasehold improvements offset by $3,250 of deferred rent. A summary of the exit cost obligation and related activity for the fiscal year ended June 30, 2022 is as follows: Exit cost obligation at cease-use date in fiscal year 2022 $ 7,395 Accretion during fiscal year 2022 57 Net payments made during fiscal year 2022 (1,065) Exit cost obligation at June 30, 2022 $ 6,387 The total exit cost obligation at June 30, 2022 is $6,387, which is included within accrued expenses and other current liabilities and other long-term liabilities on the consolidated balance sheets, respectively, as follows: Accrued expenses and other current liabilities $ 3,037 Other long-term liabilities 3,350 Total exit cost obligation $ 6,387 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS: U.S. GAAP defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company can access. Level 2 inputs are inputs (other than quoted prices included within Level 1) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability and rely on management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. The fair value of certain assets, such as nonfinancial assets, primarily long-lived assets, goodwill, intangible assets and certain other assets, are recognized or disclosed in connection with impairment evaluations. All non-recurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, and accounts payable approximated fair value as of June 30, 2022 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 June 30, 2022 and June 30, 2021: June 30, 2022 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 1,549,882 $ — $ — $ 1,549,882 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 29,077 — 29,077 Corporate bonds — 110,863 — 110,863 Commercial paper — 6,641 — 6,641 Other securities — 19,453 — 19,453 $ 1,549,882 $ 166,034 $ — $ 1,715,916 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 INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS: In connection with the Apax Acquisition, a subsidiary of the Company issued 200,000 shares of Series A Redeemable Preferred Stock (“Redeemable Preferred Stock”) to certain institutional investors, including Apax Partners and its affiliates, a related party, and received proceeds of approximately $194,745, net of $5,255 in issuance costs. Dividends associated with the Redeemable Preferred Stock began accruing daily at the issuance date and were payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year. From the issuance date to the second anniversary of the issuance date, the Company had the option to pay the accrued dividends in cash on the applicable dividend payment date or to have such dividends accrue and be added to the then prevailing liquidation preference. Additionally, from the day after the second anniversary of the issuance date through the third anniversary of the issuance date, the Company was required pay at least 50% of the accrued dividends for the applicable dividend payment period in cash. Further, from the day after the third anniversary of the issuance date, the Company was required to pay 100% of the accrued dividends for the applicable dividend payment period in cash. There was a noncompliance penalty if the Company did not meet certain requirements resulting in the prevailing dividend rate automatically increasing by 2% per year and increasing by 1% each six months thereafter until all of the issued and outstanding shares of Redeemable Preferred Stock was redeemed or the event of noncompliance ceases. The dividends accrued based on a prevailing dividend rate, which was 3-month LIBOR plus a margin and adjusts accordingly. At any point in time, 3-month LIBOR could not be less than 1%. The dividend rate was 3-month LIBOR plus 8.875% from the day after the issuance date to the third anniversary of the issuance date. From the day after the third anniversary of the issuance date until there are no shares of Redeemable Preferred Stock outstanding, the dividend rate was 3-month LIBOR plus 8.375%. In the event that from the day after the second anniversary of the issuance date through the third anniversary of the issuance date the Company elected to pay 100% of the accrued dividend for the applicable dividend payment in cash, the prevailing dividend rate would have been 3-month LIBOR plus 8.375%. The Redeemable Preferred Stock was redeemable by the Company at any point in time, although payment of a premium was required under certain circumstances. Additionally, the Company could, at its option, redeem for cash any or all of the then outstanding Redeemable Preferred Stock, in whole at any time or in part from time to time, on or after May 2, 2020, at (i) a redemption price per share equal to 102.0% for the period of May 2, 2020 – November 1, 2020; 101.0% for the period November 2, 2020—November 1, 2021; and 100.0% for the period November 2, 2021 and thereafter, plus (ii) the amount of all accrued dividends for the then current and all prior dividend payment periods. The holders of the Redeemable Preferred Stock had the ability to redeem the stock upon the occurrence of certain events such as a change in control, an IPO, on or after the sixth anniversary of the issue date, or a trigger event, etc. often involving a premium. The Company analyzed the embedded call and put options and concluded they are closely associated with the debt host and therefore do not require bifurcation. Outside of the events mentioned, there is not a mandatory redemption date for the Redeemable Preferred Stock and as a result, the Company concluded that the sixth anniversary of the issuance date was the most probable redemption date prior to the redemption discussed below. The Company fully redeemed the Series A Redeemable Preferred Stock using a portion of the cash received in its 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 June 30, 2022 , 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 fiscal years ended June 30, 2022, 2021, and 2020 includes $11,621, $24,438, and $22,890 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 fiscal year 2020 and 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 increase the liquidation preference on each preferred share. Balance at June 30, 2020 $ 233,335 Accretion of Redeemable Preferred Stock 24,438 Dividends paid (9,350) Balance at June 30, 2021 $ 248,423 Accretion of Redeemable Preferred Stock 11,621 Redemption of outstanding shares (260,044) Balance at June 30, 2022 $ — |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK: Effective following the IPO, the Company amended and restated its certificate of incorporation to effectuate the IPO Stock Split, which authorized the Company to issue 500,000,000 shares of common stock with a par value of $0.001 per share. The Company also authorized 50,000,000 shares of preferred stock with a par value of $0.001 per share. The holders of the common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Subject to preferences that may be applicable to any outstanding preferred stock, holders of common stock are entitled to receive ratably such dividends as may be declared from time-to-time by the Board of Directors out of funds legally available for that purpose. In the event of liquidation, dissolution or winding up, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding. As of June 30, 2022 and June 30, 2021, there were 174,909,539 and 141,097,740 shares of common stock outstanding, respectively, and no preferred stock outstanding. The Board of Directors is authorized, subject to any limitations prescribed by law, without further vote or action by the stockholders, to issue from time to time shares of preferred stock in one or more series. Each such series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges as determined by the Board of Directors, which may include, among others, dividend rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. On 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. On that same date, subsequent to the Company’s Series A Preferred Stock issuance, the Company used the proceeds from the Series A Preferred Stock issuance and an intercompany promissory note of $64,989 with Pride Aggregator L.P. to repurchase 10,620,260 shares of its common stock at a price of $23.07 per share for approximately $245,000. On January 20, 2021, the Company completed a follow-on private placement of 2,572 shares of Series A Preferred Stock with certain institutional investors, which generated proceeds of approximately $90,020. The Company incurred approximately $7,253 of expenses associated with both the December 2020 and January 2021 private placements, which were netted against the $270,025 of proceeds received. 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 | 12 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY COMPENSATION PLANS | EQUITY COMPENSATION PLANS: All stock-based awards to employees are recognized as compensation costs in the consolidated financial statements based on fair value measured as of the date of grant. These costs are recognized as an expense in the consolidated statements of operations over the requisite service period and increase additional paid-in capital. The Company recognized stock-based compensation costs and costs relating to liability awards for the fiscal years ended June 30, 2022, 2021, and 2020 of $71,376, $3,983, and $7,961 respectively. Related income tax benefits recognized were $4,352, $43 and $536 for the fiscal years ended June 30, 2022, 2021, and 2020. Liability incentive awards Prior to the Apax Acquisition, the Company had issued stock-based compensation awards to employees and outside directors under a plan that provided for the granting of stock options, stock appreciation rights, restricted stock, restricted share units, incentive stock options and other stock-based awards to attract and retain directors, consultants and employees. As part of the Apax Acquisition, vested awards were settled after the closing date at fair value. Unvested awards were cancelled and replaced with cash-based liability awards. Under the terms of the new awards, 50% of the unvested awards were accelerated to vest as of the Apax Acquisition and were paid after the closing date. The remaining 50% of unvested awards are earned and paid to holders according to the vesting dates of the replacement awards. During the fiscal years ended June 30, 2022, 2021, and 2020, $—, $11,605, and $8,957 was paid, respectively. The Company accounted for the cancellation and replacement of the unvested stock-based compensation awards as a modification, as the classification of the awards was changed from equity to a liability. This modification required an assessment of the fair value of the replacement awards based upon the settlement value. The settlement value of the unvested awards was allocated between the Apax Acquisition purchase price and future compensation expense based upon the pre-acquisition service as a percentage of the greater of the total service period or the original service period of the acquiree’s replaced award. Amounts allocated for future compensation are recognized as compensation costs over the remaining requisite service period and are recorded to general and administrative expense on the consolidated statement of operations. At June 30, 2022 and 2021, the Company maintained no liability for these awards, and there is no unamortized compensation expense as of June 30, 2022. The 2019 Plans Subsequent to the Apax Acquisition, the Company established three stock-based compensation plans (the “2019 Plans”) which provided for grants of incentive units to persons who are associates, officers or directors of the Company or any of its subsidiaries. The 2019 Plans included two cash Long Term Incentive Plans (“LTIPs”) and the Pride Aggregator, L.P. Management Equity Plan (“MEP”). Long Term Incentive Plan Units converted to Restricted Stock Units The Company has granted LTIP Units under its Pride Aggregator, L.P. Top Talent Incentive Plan and Sales Top Talent Incentive Plan (“LTIP Participants”). The LTIP Units are phantom awards providing for, at the Company’s discretion, a cash or stock payment (“LTIP Payment”) to participants on certain determination dates, if an IPO occurs and if the LTIP Participant remains employed by the Company on such date. An IPO transaction results in a determination date, for which each LTIP Participant becomes entitled to an LTIP Payment with respect to 20% of the LTIP Participant’s LTIP Units as of the IPO date and 20% on each of four subsequent determination dates six twelve eighteen 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 MEP incentive units vest based on an associate’s service time. 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). The 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 Company estimated the fair value of the MEP incentive units using the Monte Carlo simulation method. The MEP time-based incentive 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 MEP time-based incentive units occurring on the fourth anniversary of the vesting commencement date. The MEP time-based incentive units are accounted for as equity awards and the compensation expense calculated based upon the fair market value of the MEP time-based incentive units at the grant date is recognized as the MEP time-based incentive units vest. As a result of the Company’s IPO, and due to an election by Apax, the MEP performance-based incentive units converted to time-based incentive units (“Modified MEP Incentive Units”), with 25% vesting upon successive six month anniversary dates for the 24 months beginning on the date of the IPO. The conversion was treated as a modification for accounting purposes, and accordingly, the Company estimated fair value as of the modification date. The Modified MEP Incentive Units are accounted for as equity awards and the compensation expense calculated based upon the fair value of the Modified MEP Incentive Units at the modification date is recognized as the Modified MEP Incentive Units vest. The Company estimated the fair value of the Modified MEP Incentive Units 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. Key inputs and assumptions used to estimate the fair value of the MEP time-based incentive units include the exercise price, the option term, the risk-free interest rate over the option’s expected term, and the expected volatility. The Company’s expected stock price volatility assumption was determined based upon the historical volatility of publicly traded companies similar in nature to the Company. The risk-free interest rate is based on the market yield for a U.S. Treasury security over the expected life. The expected life of the MEP incentive units was an estimated time to a liquidity event. Estimates of fair value are not intended to predict actual future events or the value realized by persons who receive option awards. The assumptions used in the Monte Carlo simulation method are set forth in the following table. Time-Based Incentive Units Expected volatility range of stock 60.0%–65.0% Expected life of option, range in years 0.67–0.75 Risk-free interest range rate 0.09%–0.12% Expected dividend yield on stock 0% The following table presents the MEP incentive unit activity: Time-Based Incentive Units Modified MEP Incentive 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 (1,023) 1,131 406 (2,144) 665 1,346 Outstanding at June 30, 2022 37,056 $ 563 $ 443 34,735 $ 589 $ 1,423 As of June 30, 2022, there was $3,619 of unrecognized compensation expense for the unvested time-based incentive units that will be recognized over a weighted average period of 1.3 years. At June 30, 2022 and 2021, the number of vested time-based incentive units were 19,965 and 10,142, respectively. The weighted average grant date fair value of time-based incentive units that vested during the fiscal years ended June 30, 2022 and 2021 was $417 and $445, respectively. As of June 30, 2022, the unrecognized compensation expense related to the unvested Modified MEP Incentive Units was $26,201 that will be recognized over a weighted average period of 1.1 years. At June 30, 2022 and 2021, the number of vested Modified MEP Incentive Units were 9,009 and —, respectively. The weighted average grant date fair value of the Modified MEP Incentive Units vested during the fiscal years ended June 30, 2022 and 2021 was $1,428 and $—, respectively. 2021 Omnibus Incentive 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 its common stock. Additionally, options were granted in October 2021 in connection with the Company’s annual grant and in April 2022. 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 fiscal year ended June 30, 2022: 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 1,159,520 23.17 9.45 9.07 — Exercised — — — — — Forfeited and cancelled (46,741) 23.00 9.36 — — Outstanding at June 30, 2022 1,112,779 $ 23.18 $ 9.45 9.07 $ 3,265 Exercisable as of June 30, 2022 — $ — $ — — $ — None of the stock options were exercised during the period ended June 30, 2022. Total unrecognized compensation cost related to the unvested stock options is $7,281, which is expected to be recognized over a weighted average period of 2.1 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% - 2.41% 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 an implied volatility calculation for the Company that closely approximated the average historical and implied volatility of the Company’s peer group since the Company had either limited or 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 related to RSUs granted by 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 other grants. In connection with the Company’s IPO, the Company primarily granted RSUs to its 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 the LTIP Units vest over a two-year period, whereas RSUs that were granted at and subsequent to the time of the Company’s IPO 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 1,605,666 29.97 Vested (701,638) 27.04 Forfeited (260,122) 28.82 Outstanding, unvested grants at June 30, 2022 2,405,484 $ 28.78 As of June 30, 2022, total unrecognized compensation expense related to the RSUs is $49,218, which is expected to be recognized over a weighted average period of 1.8 years. The total grant date fair value of RSUs vested during the fiscal years ended June 30, 2022 was $18,971. 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 its 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 of Directors, 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 was 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 | 12 Months Ended |
Jun. 30, 2022 | |
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 fiscal years ended June 30, 2022, 2021, and 2020 included RSUs, stock options, Series A Preferred Stock and ESPP purchase rights. Due to the net loss for the fiscal years ended June 30, 2022, 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 fiscal years ended June 30, 2022, June 30, 2021, and 2020. 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: Fiscal Year Ended June 30, (in thousands, except per share data) 2022 2021 2020 Net loss attributable to Paycor HCM , Inc. $ (119,638) $ (96,920) $ (90,193) Weighted average outstanding shares: Basic and diluted 172,636,523 146,364,225 151,718,000 Basic and diluted net loss per share $ (0.69) $ (0.66) $ (0.59) |
PROFIT SHARING PLAN
PROFIT SHARING PLAN | 12 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
PROFIT SHARING PLAN | PROFIT SHARING PLAN:The Company has a 401(k)-profit sharing plan for the benefit of its employees, substantially all of whom are eligible to participate after meeting minimum age and service requirements. The Company makes matching contributions to the 401(k) plan on behalf of participating employees up to 65% of the first 6% of eligible wages. For the fiscal years ended June 30, 2022, 2021, and 2020, the Company expensed contributions to the plan of approximately $6,073, $2,505, and $3,907, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: The Company’s benefit for income tax includes U.S. federal, state, and foreign income taxes. The domestic and foreign components of our loss before income taxes is as follows: Fiscal Year Ended June 30, 2022 2021 2020 U.S. $ (140,021) $ (94,223) $ (87,485) Foreign 1,430 929 — Loss before income taxes $ (138,591) $ (93,294) $ (87,485) The components of the Company’s income tax benefit for the following periods are as follows: Fiscal Year Ended June 30, 2022 2021 2020 Federal: Current provision $ 1 $ 9 $ — Deferred benefit (29,547) (18,570) (16,950) Federal tax benefit (29,546) (18,561) (16,950) State: Current provision (benefit) 51 140 (1) Deferred benefit (1,344) (2,655) (3,231) State tax benefit (1,293) (2,515) (3,232) Foreign: Current provision 314 61 — Deferred (benefit) provision (49) 203 — Foreign tax provision 265 264 — Total tax benefit $ (30,574) $ (20,812) $ (20,182) The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities are as follows: June 30, June 30, Deferred tax assets: Stock-based compensation $ 4,497 $ — Accrued expenses 2,360 1,849 Net operating loss carryforwards 56,089 43,009 Deferred rent 1,093 1,277 Deferred revenue 4,023 4,204 Unrealized gain (loss) 618 (245) Tax credits 8,457 3,724 Other items 1,279 1,177 Total deferred tax assets 78,416 54,995 Valuation allowance (744) (117) Net deferred tax assets 77,672 54,878 Deferred tax liabilities: Software development costs (9,718) (7,514) Deferred contract costs (39,786) (27,694) Property and equipment (3,432) (4,883) Other intangibles (56,530) (78,171) Other (101) (302) Total deferred liabilities (109,567) (118,564) Net deferred tax liabilities $ (31,895) $ (63,686) The Company is in a cumulative three-year loss position. The realization of deferred tax assets is dependent upon the generation of future taxable income. After giving appropriate consideration to the sources of taxable income through the scheduled reversal of deferred tax liabilities, the Company concluded that valuation allowances were only required on a portion of its state and local net operating losses. There is a valuation allowance on state net operating losses (“NOL”) of $744. The Company has federal NOL carryforwards as of June 30, 2022 and 2021 of approximately $234,806 and $181,686 respectively. The Company has state NOL carryforwards as of June 30, 2022 and 2021 of approximately $211,795 and $156,603, respectively. The federal NOLs not subject to expiration total $181,033 as of June 30, 2022 with the remainder of $53,773 beginning to expire in 2034. The state NOL carryforwards generally expire from 2022 to 2040, except for some states for which NOLs do not expire. The Company also has gross federal research and development tax credit carryforwards as of June 30, 2022 and 2021 of approximately $7,982 and $3,724, respectively, which begin expiring in 2033. The Company has gross state research and development tax credit carryforwards as of June 30, 2022 and 2021 of approximately $982 and $261, respectively, which begin expiring in 2033. On June 30, 2022, the Company’s liabilities for unrecognized tax benefits, which would impact the Company’s effective tax rate if recognized, are presented below. The Company will include applicable penalties and interest when the benefit is recognized. On June 30, 2022, the unrecognized tax benefits related to uncertain tax positions for state research and development tax credits. The Company does not expect material adjustments to the total amount of uncertain tax positions within the next 12 months, but the outcome of tax matters is uncertain and unforeseen results can occur. The Company continues to follow its policy of recognizing interest and penalties accrued on tax positions as a component of income tax benefit on the consolidated statements of operations and comprehensive loss. The amount of accrued interest and penalties associated with the Company’s tax positions is immaterial to the consolidated balance sheets. The amount of interest and penalties recognized for the year ended June 30, 2022 was immaterial to the Company’s consolidated statements of operations and comprehensive loss. June 30, Unrecognized tax benefits at the beginning of the year $ — Additions for tax positions 97 Additions for tax positions of prior periods 284 Unrecognized tax benefits at the end of the year $ 381 The Company files income tax returns with the United States federal government and various state jurisdictions. Certain tax years remain open for federal and state tax reporting jurisdictions in which the Company does business due to NOL carryforwards and tax credits utilized from such years or utilized in a period remaining open for audits under normal statute of limitations relating to income tax liabilities. The Company, including its domestic subsidiaries, files a consolidated federal income tax return. For years before fiscal year ended June 30, 2018, the Company is no longer subject to U.S. federal examination. The Internal Revenue Service (“IRS”) has the ability to review years prior to fiscal year 2018 to the extent the Company utilized tax attributes carried forward from those prior years. The statute of limitations on state filings is generally three to four years. A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate for the following periods is presented below: Fiscal Year Ended June 30, 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % Research tax credits 3.6 % — % — % State income taxes, net of federal tax benefit 1.7 % 2.7 % 2.9 % Stock-based compensation (4.6 %) (0.9 %) (1.3 %) Transaction costs 2.2 % — % — % Other permanent differences (1.4 %) (0.5 %) (0.2 %) Valuation allowance (0.4 %) — % 0.7 % Effective income tax rate 22.1 % 22.3 % 23.1 % |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2022 | |
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, is not expected to have a material adverse impact on the Company’s consolidated statements of operations, balance sheets or statements of cash flows. These matters are subject to inherent uncertainties and management’s view of these matters may change in the future. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) | 12 Months Ended |
Jun. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) | CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY): Paycor HCM, Inc. and Subsidiaries Parent Company Only Condensed Balance Sheets (in thousands) June 30, June 30, Assets Cash and cash equivalents $ 5,000 $ — Investment in subsidiary 1,279,731 878,639 Total assets $ 1,284,731 $ 878,639 Liabilities and Stockholders’ Equity Total liabilities $ — $ — Total stockholders’ equity 1,284,731 878,639 Total liabilities and stockholders’ equity $ 1,284,731 $ 878,639 Paycor HCM, Inc. and Subsidiaries Parent Company Only Condensed Statements of Operations and Comprehensive Loss (in thousands) Fiscal Year Ended June 30, 2022 2021 2020 Equity in net loss of subsidiary $ (119,638) $ (96,920) $ (90,193) Net loss attributable to Paycor HCM, Inc. $ (119,638) $ (96,920) $ (90,193) Other comprehensive (loss) income, net of tax: Subsidiaries’ other comprehensive (loss) income $ (2,980) $ 382 $ 104 Total other comprehensive (loss) income (2,980) 382 104 Comprehensive loss attributable to Paycor HCM, Inc. $ (122,618) $ (96,538) $ (90,089) Paycor HCM, Inc. and Subsidiaries Parent Company Only Condensed Statements of Cash Flows (in thousands) Fiscal Year Ended June 30, June 30, June 30, June 30, Operating Activities: Net loss attributable to Paycor HCM, Inc. $ (119,638) $ (96,920) $ (90,193) Adjustments to reconcile net loss to net cash provided by operating activities: Equity in net loss of subsidiaries 119,638 96,920 90,193 Net cash provided by operating activities — — — Investing Activities: Net cash provided by investing activities — — — Financing Activities: Proceeds from issuance of preferred stock, net of offering costs — 262,772 — Purchase of treasury stock at cost — (245,074) — Proceeds from the issuance of common stock sold in IPO, net of offering costs and underwriting discount 454,915 — — Contributions to subsidiaries (453,102) (17,698) — Proceeds from employee stock purchase plan 3,187 — — Net cash provided by financing activities 5,000 — — Net increase in cash and cash equivalents 5,000 — — Cash and cash equivalents-beginning of period — — — Cash and cash equivalents-end of period $ 5,000 $ — $ — Description of Business Paycor HCM, which is controlled by Pride Aggregator L.P., is the indirect controlling shareholder of Paycor. Pride Aggregator L.P. is controlled by a syndication led by Apax. Paycor HCM was incorporated in Delaware in 2018 and became the ultimate parent of Paycor through the Apax Acquisition. Paycor HCM is a holding company and conducts substantially all of its activities through its subsidiaries and has no operations or significant assets or liabilities other than its investment in its subsidiaries, including Paycor. Accordingly, Paycor HCM is dependent upon distributions from Paycor and other subsidiaries to fund its limited, non-significant activities. However, Paycor’s ability to pay dividends or lend to Paycor HCM is limited under the terms of its 2021 Credit Agreement. All obligations under the 2021 Credit Agreement are guaranteed by Pride Guarantor, Inc. and by Paycor. The 2021 Credit Agreement contains covenants limiting Pride Guarantor, Inc.’s and its subsidiaries’, including Paycor, ability to, among other things: incur additional indebtedness or other contingent obligations; create liens; make investments, acquisitions, loans and advances; consolidate, merge, liquidate or dissolve; sell, transfer or otherwise dispose of its assets, including capital stock of its subsidiaries; pay dividends on its equity interests or make other payments in respect of capital stock; engage in transactions with affiliates; make payments in respect of subordinated debt; modify organizational documents in a manner that is materially adverse to the lenders under the applicable 2021 Credit Agreement; enter into certain agreements with negative pledge clauses. These covenants are subject to certain customary exceptions and qualifications as described in the 2021 Credit Agreement. For a discussion of the 2021 Credit Agreement, see Note 9 - “Debt Agreements and Letters of Credit.” Basis of Presentation These condensed financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, Paycor HCM’s investments in subsidiaries are presented under the equity method of accounting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. As such, these parent-only statements should be read in conjunction with the accompanying consolidated financial statements for the Company. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT:On August 7, 2022, the Company entered into a 16-year partnership with the Cincinnati Bengals of the National Football League that grants the Company the exclusive naming rights to Paycor Stadium, home to the Cincinnati Bengals since 2000. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidationThe accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying financial statements are presented on a consolidated basis for all periods presented. All intercompany transactions and balances have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 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 of operations and financial condition can also be affected by economic, political, legislative, regulatory and legal actions, including but not limited to health epidemics and pandemics and their 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 the Company’s results of operations and financial condition. While the Company maintains reserves for anticipated liabilities and carries various levels of insurance, the Company could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings. |
Concentrations of risk | Concentrations of risk The Company regularly maintains deposits in banks which may, at times, exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company mitigates exposure to credit risk by placing cash and cash equivalents with highly rated financial institutions. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents. No individual client represents more than 1% of total revenues. The majority of all revenues are generated by clients in the United States. |
Cash and cash equivalents | Cash and cash equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments purchased with an original issue maturity of three months or less and money market funds to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value given the short-term maturity of those instruments. |
Restricted cash and short-term investments | Restricted cash and short-term investments The Company designated a portion of cash received from the Apax Acquisition as restricted within the consolidated balance sheets since the cash and short-term investments are being held for the settlement of the cash-based compensation awards by the employees upon vesting. The short-term investments consist of U.S. Treasury Notes, direct obligations of U.S. government agencies and high-grade corporate bonds. |
Funds held for clients | Funds held for clients The Company generally collects substantially all funds from clients in advance of performing payroll and payroll tax filing services on behalf of those clients. Funds held for clients consist of cash and cash equivalents and debt-security investments. Debt-security investments are classified as available-for-sale and are recorded at fair value, and consist of U.S. Treasury Notes, direct obligations of U.S. government agencies such as the Federal Home Loan Bank, the Federal National Mortgage Association and the Federal Farm Credit Bank, high grade corporate bonds, FDIC insured certificates of deposit, and other short-term and long-term investments. At June 30, 2022 and 2021, all the Company’s corporate bond investments are rated investment grade or better. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying client obligations to remit funds relating to payroll and payroll tax filing services. Unrealized gains and losses, net of applicable income taxes, are reported as other comprehensive (loss) income, net of tax in the consolidated statements of comprehensive loss. Realized gains and losses on the sale of securities are determined by specific identification of the security’s cost basis. |
Client fund obligations | Client fund obligations Client fund obligations represent the Company’s contractual obligations to remit funds to satisfy clients’ payroll and tax payment obligations and are recorded in the accompanying consolidated balance sheets at the time the Company obtains the funds from clients. The client fund obligations represent the liabilities that will be remitted to the appropriate client employees, taxing authorities and other parties within one year of the balance sheet date. |
Accounts receivable, net | Accounts receivable, net Accounts receivable balances are shown on the consolidated balance sheets net of the allowance for doubtful accounts of $3,268 and $2,402 as of June 30, 2022 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 client’s ability to pay. The Company performs ongoing credit evaluations and generally requires no collateral from clients. Management reviews individual accounts as they become past due to determine collectability. The allowance for doubtful accounts is adjusted periodically based on management’s consideration of past due accounts. Individual accounts are charged against the allowance when all reasonable collection efforts have been exhausted. |
Property and equipment, net | Property and equipment, net Property and equipment are recorded at cost. Depreciation and amortization on the property and equipment is computed using the straight-line method over the following estimated useful lives: Computers, equipment and software 3 to 5 years Office equipment 5 to 7 years Furniture and fixtures 7 years Leasehold improvements Over lease term Land improvements 15 years Building 30 years |
Goodwill and intangible assets, net | Goodwill and intangible assets, net Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company performs an annual impairment review of goodwill in its fiscal fourth quarter and additional impairment reviews when events and circumstances indicate it is more likely than not that an impairment may have occurred. The Company assesses goodwill for impairment at the consolidated level, which represents its single reporting unit. In evaluating goodwill for impairment, the Company has the option to first perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of its single reporting unit to its carrying amount, including goodwill. Under the qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions, cost factors, and overall financial performance, among others. Under a quantitative assessment, fair value of the Company’s single reporting unit is estimated using a weighted methodology considering the output from both the income and market approaches. The income approach incorporates the use of a discounted cash flow (“DCF”) analysis. A number of judgments are involved in the application of the DCF model, including projections of business performance, weighted average cost of capital, and terminal values. The market approach is performed using the Guideline Public Companies method which is based on earnings multiple data derived from publicly traded peer group companies. The Company elected to perform a qualitative assessment during both fiscal years 2022 and 2021, and determined for both periods that no indicators of impairment existed, and the fair value of the Company significantly exceeded its carrying amount. |
Capitalized software, net | Capitalized software, net The Company has developed payroll and human resources software to provide its clients with the Company’s services. Capitalized costs include external direct costs of materials and services associated with developing or obtaining internal-use computer software and certain payroll and payroll-related costs for employees who are directly associated with internal-use computer software projects. Expenditures for software purchases and software developed or obtained for internal-use are capitalized and amortized on a straight-line basis over the estimated product life, which is generally three years. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. |
Revenue recognition | Revenue recognition Revenues are recognized when control of the promised goods or services is transferred to clients in an amount that reflects the consideration the Company is entitled to for those goods or services. The Company derives its revenue from contracts predominantly from recurring and non-recurring service fees. The majority of its agreements are generally cancellable by the client on 30 days’ notice. Recurring fees are derived from payroll, workforce management, and HR-related cloud-based computing services. The majority of the Company’s recurring fees are satisfied over time as the services are provided during each client’s payroll period, and the timing of revenue recognition for these fees is consistent with the timing of invoicing as they occur simultaneously upon the client payroll processing period or by month. The performance obligations related to payroll services are delivered based upon the payroll frequency of the client with the fee charged and collected based on a per-employee-per-month or per-employee-per-payroll basis. The performance obligations related to workforce management and HR-related services are generally satisfied each month with the fee charged and collected based on a per-employee-per-month basis. For subscription-based fees, which can include payroll, workforce management, and HR-related services, the Company recognizes the applicable recurring fees each month with the fee charged and collected based on a per-employee-per-month basis. Non-recurring service fees consist mainly of nonrefundable implementation fees. The implementation activities involve setting the client up and loading data into the Company’s cloud-based modules. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract beyond the normal 30-day contractual period without payment of an additional upfront implementation fee. Implementation fees are deferred and recognized as revenue over the period to which the material right exists, which is the period the client is expected to benefit from not having to pay an additional nonrefundable implementation fee upon renewal of the service. Sales taxes collected from clients and remitted to governmental authorities where applicable are accounted for on a net basis and therefore are excluded from revenues in the consolidated statements of operations. |
Cost of revenues | Cost of revenues Cost of revenues includes costs relating to the provision of ongoing customer support and implementation activities, payroll tax filing, distribution of printed checks and other materials providing the Company’s payroll and other HCM solutions. These costs primarily consist of expenses relating to associates who service customers, including employee-related costs, as well as third-party processing fees, delivery costs, hosting costs, and bank fees associated with client fund transfers. |
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 $22,130, $17,964, and $14,874 for the fiscal years ended June 30, 2022, 2021 and 2020, respectively. |
General and administrative | General and administrative General and administrative expenses consist primarily of employee-related costs, including employee-related costs for the Company’s administrative, finance, accounting, legal, enterprise technology and human resources departments. Additional expenses include consulting and professional fees, occupancy costs, insurance, and other corporate expenses. |
Research and development | Research and development Research and development expenses consist primarily of employee-related expenses for the Company’s software development and product management staff. Additional expenses include costs related to the development, maintenance, quality assurance and testing of new technologies, and ongoing refinement of the Company’s existing solutions. Research and development expenses, other than internal-use software costs qualifying for capitalization, including costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. |
Interest expense | Interest expense Interest expense consists primarily of interest payments and accruals relating to outstanding borrowings. |
Other (expense) income | Other (expense) income Other (expense) income generally consists of other income and expense items outside of the Company’s normal operations, such as realized gains or losses on the sale of certain positions of funds held for clients, gains or losses on the extinguishment of debt and expenses relating to the Company’s financing arrangements. |
Stock-based compensation | Stock-based compensation The Company recognizes all employee and director stock-based compensation as a cost in the consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of actual forfeitures, on a straight-line basis over the requisite service period for the award. For periods prior to the 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 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 14 - “Equity Compensation Plans” for additional information on the Company’s stock-based compensation plans. |
Income taxes | Income taxes The Company accrues income taxes payable or refundable and recognizes deferred tax assets and liabilities based on differences between the book and tax basis of assets and liabilities. The Company measures deferred tax assets and liabilities using enacted rates in effect for the years in which the differences are expected to reverse and recognizes the effect of a change in enacted rates in the period of enactment. |
Loss per share | Loss per share Basic loss per share is computed by dividing net loss attributable to Paycor HCM, Inc. by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed by dividing net loss attributable to Paycor HCM, Inc. by the weighted-average number of common shares outstanding during the period and the impact of securities that would have a dilutive effect, if any. See Note 15 - “Net Loss Per Share” for further discussion. |
Deferred IPO issuance costs | Deferred IPO issuance costsDeferred issuance costs, which primarily consist of direct incremental legal and accounting fees relating to the IPO of the Company’s common stock, were capitalized. The deferred issuance costs were offset against IPO proceeds upon the consummation of the offering, which closed on July 23, 2021. |
Segments | Segments Operating segments are defined as components of an enterprise engaging in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business as a single operating segment at the consolidated level. |
Pending accounting pronouncements | Pending accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases” (Topic 842). This update amends existing accounting standards for lease accounting and requires lessees to recognize virtually all 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 assets 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 consolidated balance sheets. The Company will adopt this ASU on July 1, 2022 using the modified retrospective approach. The Company plans to apply the package of practical expedients in the guidance which, among other things, includes carrying forward the historical lease classification. The Company plans to make accounting policy elections not to apply the new guidance to leases with a term of less than 12 months, as well as to derive the incremental borrowing rate at the July 1, 2022 adoption date based on the remaining lease term as of the adoption date. As of July 1, 2022, the Company expects to record a right-of-use asset in the range of $15 million - $19 million and a lease liability in the range of $22 million - $26 million based on the current portfolio of leases, which primarily consist of real estate operating leases. 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 standard 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 any such securities is a credit loss. The Company is currently evaluating this standard and the potential effects of these changes to its consolidated financial statements and expects to adopt this new standard in the fiscal year beginning July 1, 2023 if the Company continues to qualify as an emerging growth company. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Depreciation and amortization on the property and equipment is computed using the straight-line method over the following estimated useful lives: Computers, equipment and software 3 to 5 years Office equipment 5 to 7 years Furniture and fixtures 7 years Leasehold improvements Over lease term Land improvements 15 years Building 30 years A summary of the Company’s property and equipment, net is as follows: June 30, June 30, Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 14,951 13,427 Furniture and fixtures 2,246 4,596 Office equipment 2,538 2,337 Leasehold improvements 1,430 8,227 48,600 56,022 Accumulated depreciation and amortization (16,925) (14,942) Property and equipment, net $ 31,675 $ 41,080 |
Schedule of Research and Development Assets Acquired Other than Through Business Combination | The table below sets forth the amounts of capitalized and expensed research and development costs for the fiscal years ended June 30, 2022, 2021 and 2020: Fiscal Years Ended June 30, (in thousands) 2022 2021 2020 Capitalized software $ 29,831 $ 21,228 $ 18,846 Research and development expenses $ 43,140 $ 36,020 $ 45,866 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
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: Fiscal Year Ended June 30, 2022 2021 2020 Recurring fees $ 414,677 $ 337,012 $ 309,948 Implementation services and other 12,355 13,944 7,672 Recurring and other revenue $ 427,032 $ 350,956 $ 317,620 The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: Fiscal Year Ended June 30, 2022 2021 Balance, beginning of period $ 16,047 $ 15,916 Deferred revenue acquired — 1,374 Deferral of revenue 20,552 17,781 Revenue recognized (19,468) (19,033) Impact of foreign exchange (85) 9 Balance, end of period $ 17,046 $ 16,047 |
Capitalized Contract Cost | As of and for the Fiscal Year Ended June 30, 2022 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 52,926 $ 33,569 $ (14,153) $ 72,342 Costs to fulfill a contract 62,457 45,993 (17,318) 91,132 Total $ 115,383 $ 79,562 $ (31,471) $ 163,474 As of and for the Fiscal Year Ended June 30, 2021 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 32,233 $ 29,568 $ (8,875) $ 52,926 Costs to fulfill a contract 39,689 33,394 (10,626) 62,457 Total $ 71,922 $ 62,962 $ (19,501) $ 115,383 |
BUSINESS COMBINATION AND ASSE_2
BUSINESS COMBINATION AND ASSET ACQUISITION (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The final purchase price allocation 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 allocation is as follows: 7Geese Acquisition Cash consideration $ 16,847 Contingent consideration 3,000 Deferred consideration 2,900 Fair value of total consideration 22,747 Cash acquired (107) Net purchase price $ 22,640 Assets acquired: Accounts receivable $ 477 Other current assets 295 Property and equipment 64 Technology intangible assets 9,040 Other intangible assets 100 Other non-current assets 9 Total identifiable assets acquired 9,985 Liabilities assumed: Accounts payable (34) Accrued expenses (1,730) Deferred revenue (1,374) Total identifiable liabilities assumed (3,138) Goodwill 15,793 Fair value of total consideration transferred $ 22,640 |
FUNDS HELD FOR CLIENTS (Tables)
FUNDS HELD FOR CLIENTS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Funds Held For Clients [Abstract] | |
Investment | Funds held for clients are as follows: June 30, 2022 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 1,549,882 $ — $ — $ 1,549,882 U.S. Treasury and direct obligations of U.S. government agencies 29,367 — (290) 29,077 Corporate bonds 112,753 4 (1,894) 110,863 Commercial paper 6,642 2 (3) 6,641 Other securities 19,817 2 (366) 19,453 $ 1,718,461 $ 8 $ (2,553) $ 1,715,916 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 June 30, 2022 for client fund assets are as follows: Due within fiscal year 2023 $ 1,632,317 Due within fiscal year 2024 37,050 Due within fiscal year 2025 35,092 Due after fiscal year 2025 11,457 Total $ 1,715,916 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment at cost and accumulated depreciation | Depreciation and amortization on the property and equipment is computed using the straight-line method over the following estimated useful lives: Computers, equipment and software 3 to 5 years Office equipment 5 to 7 years Furniture and fixtures 7 years Leasehold improvements Over lease term Land improvements 15 years Building 30 years A summary of the Company’s property and equipment, net is as follows: June 30, June 30, Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 14,951 13,427 Furniture and fixtures 2,246 4,596 Office equipment 2,538 2,337 Leasehold improvements 1,430 8,227 48,600 56,022 Accumulated depreciation and amortization (16,925) (14,942) Property and equipment, net $ 31,675 $ 41,080 |
CAPITALIZED SOFTWARE, NET (Tabl
CAPITALIZED SOFTWARE, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of capitalized software | A summary of the Company’s capitalized software, net is as follows: June 30, June 30, Capitalized software $ 83,682 $ 52,945 Accumulated amortization (43,680) (21,635) Capitalized software, net $ 40,002 $ 31,310 Components of intangible assets were as follows: June 30, June 30, Cost: Technology $ 142,165 $ 140,665 Customer relationships 443,187 434,983 Trade name 105,672 105,672 Total cost $ 691,024 $ 681,320 Accumulated amortization: Technology $ (135,982) $ (116,669) Customer relationships (266,129) (190,538) Trade name (25,844) (18,790) Total accumulated amortization $ (427,955) $ (325,997) Intangible assets, net $ 263,069 $ 355,323 |
Schedule of future amortization expense | The following is a schedule of future amortization expense as of June 30, 2022: 2023 $ 21,006 2024 14,135 2025 4,861 $ 40,002 The following is a schedule of future amortization expense as of June 30, 2022: 2023 $ 89,516 2024 83,380 2025 31,478 2026 7,043 2027 7,043 Thereafter 44,609 $ 263,069 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
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, 2020 $ 733,801 7Geese Acquisition 15,793 Foreign currency translation 1,208 Balance at June 30, 2021 $ 750,802 Foreign currency translation (647) Balance at June 30, 2022 $ 750,155 |
Schedule of components of intangible assets | A summary of the Company’s capitalized software, net is as follows: June 30, June 30, Capitalized software $ 83,682 $ 52,945 Accumulated amortization (43,680) (21,635) Capitalized software, net $ 40,002 $ 31,310 Components of intangible assets were as follows: June 30, June 30, Cost: Technology $ 142,165 $ 140,665 Customer relationships 443,187 434,983 Trade name 105,672 105,672 Total cost $ 691,024 $ 681,320 Accumulated amortization: Technology $ (135,982) $ (116,669) Customer relationships (266,129) (190,538) Trade name (25,844) (18,790) Total accumulated amortization $ (427,955) $ (325,997) Intangible assets, net $ 263,069 $ 355,323 |
Schedule of future amortization expense | The following is a schedule of future amortization expense as of June 30, 2022: 2023 $ 21,006 2024 14,135 2025 4,861 $ 40,002 The following is a schedule of future amortization expense as of June 30, 2022: 2023 $ 89,516 2024 83,380 2025 31,478 2026 7,043 2027 7,043 Thereafter 44,609 $ 263,069 |
DEBT AGREEMENTS AND LETTERS O_2
DEBT AGREEMENTS AND LETTERS OF CREDIT (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s long-term debt consists of the following: June 30, 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 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of future minimum lease payments required under capital lease and the present value of net minimum lease payments | The future minimum lease payments under capital leases and the present value of net minimum lease payments as of June 30, 2022 are as follows: 2023 $ 323 2024 323 2025 296 2026 44 2027 — Total minimum lease payments 986 Less: Amount representing interest (74) Present value of minimum lease payments 912 Less: Current maturities of capital lease obligations (283) Long-term capital lease obligations $ 629 |
Schedule of future annual minimum lease payments required under operating leases | The following is a schedule of future annual minimum lease payments required under operating leases as of June 30, 2022: 2023 $ 6,678 2024 5,132 2025 4,257 2026 4,031 2027 3,721 Thereafter 2,890 Total minimum lease payments 26,709 Less sublease income of leased properties (1) (7,212) Net minimum lease payments $ 19,497 (1) Represents receipts for noncancellable subleases at June 30, 2022. |
Restructuring and Related Costs | A summary of the exit cost obligation and related activity for the fiscal year ended June 30, 2022 is as follows: Exit cost obligation at cease-use date in fiscal year 2022 $ 7,395 Accretion during fiscal year 2022 57 Net payments made during fiscal year 2022 (1,065) Exit cost obligation at June 30, 2022 $ 6,387 The total exit cost obligation at June 30, 2022 is $6,387, which is included within accrued expenses and other current liabilities and other long-term liabilities on the consolidated balance sheets, respectively, as follows: Accrued expenses and other current liabilities $ 3,037 Other long-term liabilities 3,350 Total exit cost obligation $ 6,387 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and financial liabilities measured at fair value on a recurring basis | The following table presents information on the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and June 30, 2021: June 30, 2022 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 1,549,882 $ — $ — $ 1,549,882 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 29,077 — 29,077 Corporate bonds — 110,863 — 110,863 Commercial paper — 6,641 — 6,641 Other securities — 19,453 — 19,453 $ 1,549,882 $ 166,034 $ — $ 1,715,916 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) | 12 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2020 $ 233,335 Accretion of Redeemable Preferred Stock 24,438 Dividends paid (9,350) Balance at June 30, 2021 $ 248,423 Accretion of Redeemable Preferred Stock 11,621 Redemption of outstanding shares (260,044) Balance at June 30, 2022 $ — |
EQUITY COMPENSATION PLANS (Tabl
EQUITY COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Fair Value Measurement Inputs and Valuation Techniques | The assumptions used in the Monte Carlo simulation method are set forth in the following table. Time-Based Incentive Units Expected volatility range of stock 60.0%–65.0% Expected life of option, range in years 0.67–0.75 Risk-free interest range rate 0.09%–0.12% Expected dividend yield on stock 0% The 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% - 2.41% Expected dividend yield on stock 0% Fair value per option $9.36 - $14.51 |
Share-based Payment Arrangement, Activity | The following table presents the MEP incentive unit activity: Time-Based Incentive Units Modified MEP Incentive 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 (1,023) 1,131 406 (2,144) 665 1,346 Outstanding at June 30, 2022 37,056 $ 563 $ 443 34,735 $ 589 $ 1,423 |
Share-based Payment Arrangement, Option, Activity | The following table summarizes option activity for the fiscal year ended June 30, 2022: 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 1,159,520 23.17 9.45 9.07 — Exercised — — — — — Forfeited and cancelled (46,741) 23.00 9.36 — — Outstanding at June 30, 2022 1,112,779 $ 23.18 $ 9.45 9.07 $ 3,265 Exercisable as of June 30, 2022 — $ — $ — — $ — |
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 1,605,666 29.97 Vested (701,638) 27.04 Forfeited (260,122) 28.82 Outstanding, unvested grants at June 30, 2022 2,405,484 $ 28.78 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
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: Fiscal Year Ended June 30, (in thousands, except per share data) 2022 2021 2020 Net loss attributable to Paycor HCM , Inc. $ (119,638) $ (96,920) $ (90,193) Weighted average outstanding shares: Basic and diluted 172,636,523 146,364,225 151,718,000 Basic and diluted net loss per share $ (0.69) $ (0.66) $ (0.59) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of our loss before income taxes is as follows: Fiscal Year Ended June 30, 2022 2021 2020 U.S. $ (140,021) $ (94,223) $ (87,485) Foreign 1,430 929 — Loss before income taxes $ (138,591) $ (93,294) $ (87,485) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the Company’s income tax benefit for the following periods are as follows: Fiscal Year Ended June 30, 2022 2021 2020 Federal: Current provision $ 1 $ 9 $ — Deferred benefit (29,547) (18,570) (16,950) Federal tax benefit (29,546) (18,561) (16,950) State: Current provision (benefit) 51 140 (1) Deferred benefit (1,344) (2,655) (3,231) State tax benefit (1,293) (2,515) (3,232) Foreign: Current provision 314 61 — Deferred (benefit) provision (49) 203 — Foreign tax provision 265 264 — Total tax benefit $ (30,574) $ (20,812) $ (20,182) |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and deferred tax liabilities are as follows: June 30, June 30, Deferred tax assets: Stock-based compensation $ 4,497 $ — Accrued expenses 2,360 1,849 Net operating loss carryforwards 56,089 43,009 Deferred rent 1,093 1,277 Deferred revenue 4,023 4,204 Unrealized gain (loss) 618 (245) Tax credits 8,457 3,724 Other items 1,279 1,177 Total deferred tax assets 78,416 54,995 Valuation allowance (744) (117) Net deferred tax assets 77,672 54,878 Deferred tax liabilities: Software development costs (9,718) (7,514) Deferred contract costs (39,786) (27,694) Property and equipment (3,432) (4,883) Other intangibles (56,530) (78,171) Other (101) (302) Total deferred liabilities (109,567) (118,564) Net deferred tax liabilities $ (31,895) $ (63,686) |
Schedule of Unrecognized Tax Benefits Roll Forward | June 30, Unrecognized tax benefits at the beginning of the year $ — Additions for tax positions 97 Additions for tax positions of prior periods 284 Unrecognized tax benefits at the end of the year $ 381 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate for the following periods is presented below: Fiscal Year Ended June 30, 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % Research tax credits 3.6 % — % — % State income taxes, net of federal tax benefit 1.7 % 2.7 % 2.9 % Stock-based compensation (4.6 %) (0.9 %) (1.3 %) Transaction costs 2.2 % — % — % Other permanent differences (1.4 %) (0.5 %) (0.2 %) Valuation allowance (0.4 %) — % 0.7 % Effective income tax rate 22.1 % 22.3 % 23.1 % |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheet | June 30, June 30, Assets Cash and cash equivalents $ 5,000 $ — Investment in subsidiary 1,279,731 878,639 Total assets $ 1,284,731 $ 878,639 Liabilities and Stockholders’ Equity Total liabilities $ — $ — Total stockholders’ equity 1,284,731 878,639 Total liabilities and stockholders’ equity $ 1,284,731 $ 878,639 |
Schedule of condensed statements of operations and comprehensive loss | Fiscal Year Ended June 30, 2022 2021 2020 Equity in net loss of subsidiary $ (119,638) $ (96,920) $ (90,193) Net loss attributable to Paycor HCM, Inc. $ (119,638) $ (96,920) $ (90,193) Other comprehensive (loss) income, net of tax: Subsidiaries’ other comprehensive (loss) income $ (2,980) $ 382 $ 104 Total other comprehensive (loss) income (2,980) 382 104 Comprehensive loss attributable to Paycor HCM, Inc. $ (122,618) $ (96,538) $ (90,089) |
Schedule of condensed statements of cash flows | Fiscal Year Ended June 30, June 30, June 30, June 30, Operating Activities: Net loss attributable to Paycor HCM, Inc. $ (119,638) $ (96,920) $ (90,193) Adjustments to reconcile net loss to net cash provided by operating activities: Equity in net loss of subsidiaries 119,638 96,920 90,193 Net cash provided by operating activities — — — Investing Activities: Net cash provided by investing activities — — — Financing Activities: Proceeds from issuance of preferred stock, net of offering costs — 262,772 — Purchase of treasury stock at cost — (245,074) — Proceeds from the issuance of common stock sold in IPO, net of offering costs and underwriting discount 454,915 — — Contributions to subsidiaries (453,102) (17,698) — Proceeds from employee stock purchase plan 3,187 — — Net cash provided by financing activities 5,000 — — Net increase in cash and cash equivalents 5,000 — — Cash and cash equivalents-beginning of period — — — Cash and cash equivalents-end of period $ 5,000 $ — $ — |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||
Oct. 26, 2021 shares | Oct. 19, 2021 $ / shares shares | Jul. 23, 2021 USD ($) shares | Jul. 20, 2021 $ / shares | Nov. 02, 2018 | Jul. 31, 2021 | Nov. 01, 2018 USD ($) shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 $ / shares shares | |
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 | 500,000,000 | 500,000,000 | |||||||
Restricted Stock Units (RSUs) | |||||||||
Subsequent Event [Line Items] | |||||||||
Unrecognized compensation expense, weighted average period | 2 years | 2 years | 1 year 9 months 18 days | ||||||
Award vesting rights, percentage | 20% | ||||||||
Time-Based Incentive Units | |||||||||
Subsequent Event [Line Items] | |||||||||
Unrecognized compensation expense, weighted average period | 1 year 3 months 18 days | ||||||||
Award vesting rights, percentage | 25% | ||||||||
Award vesting period | 6 months | ||||||||
Apax Acquisition | Redeemable Preferred Stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Payments of stock issuance costs | $ 5,255 | ||||||||
Preferred stock, liquidation preference | $ 260,044 | ||||||||
Issuance of preferred stock, net (in shares) | shares | 200,000 | ||||||||
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 | Time-Based Incentive Units | |||||||||
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_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jul. 01, 2022 | |
Accounting Policies [Abstract] | |||||
Accounts receivable, allowance for credit loss | $ 3,268,000 | $ 2,402,000 | |||
Write-off of carrying value of assets | $ 4,910,000 | ||||
Impairment of tangible assets | 0 | 0 | $ 0 | ||
Impairment of finite-lived intangible assets | $ 0 | 0 | 0 | ||
Capitalized computer software, amortization period | 3 years | ||||
Cancellation notice period | 30 days | ||||
Implementation activities, contractual period | 30 days | ||||
Capitalized contract cost, amortization period | 6 years | ||||
Advertising and promotion expense | $ 22,130,000 | 17,964,000 | $ 14,874,000 | ||
Deferred issuance costs | $ 2,423,000 | ||||
Minimum | Forecast | Cumulative Effect, Period of Adoption, Adjustment | |||||
Lessee, Lease, Description [Line Items] | |||||
Right-of-use asset | $ 15,000,000 | ||||
Operating lease liability | 22,000,000 | ||||
Maximum | Forecast | Cumulative Effect, Period of Adoption, Adjustment | |||||
Lessee, Lease, Description [Line Items] | |||||
Right-of-use asset | 19,000,000 | ||||
Operating lease liability | $ 26,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment, Net (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Computer, equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer, equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Building | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | |||
Capitalized software | $ 29,831 | $ 21,228 | $ 18,846 |
Research and development expenses | $ 43,140 | $ 36,020 | $ 45,866 |
REVENUE - Contract with Custome
REVENUE - Contract with Customer (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service [Member] | Service [Member] | Service [Member] |
Recurring and other revenue | $ 427,032 | $ 350,956 | $ 317,620 |
Recurring fees | |||
Disaggregation of Revenue [Line Items] | |||
Recurring and other revenue | 414,677 | 337,012 | 309,948 |
Implementation services and other | |||
Disaggregation of Revenue [Line Items] | |||
Recurring and other revenue | $ 12,355 | $ 13,944 | $ 7,672 |
REVENUE - Deferred Revenue (Det
REVENUE - Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Contract with Customer, Liability Activity [Roll Forward] | ||
Balance, beginning of period | $ 16,047 | $ 15,916 |
Deferred revenue acquired | 0 | 1,374 |
Deferral of revenue | 20,552 | 17,781 |
Revenue recognized | (19,468) | (19,033) |
Impact of foreign exchange | (85) | 9 |
Balance, end of period | $ 17,046 | $ 16,047 |
REVENUE - Deferred Contract Cos
REVENUE - Deferred Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Capitalized Contract Cost, Activity [Roll Forward] | |||
Beginning Balance | $ 115,383 | $ 71,922 | |
Capitalization of Costs | 79,562 | 62,962 | |
Amortization | (31,471) | (19,501) | $ (10,206) |
Ending Balance | 163,474 | 115,383 | 71,922 |
Costs to obtain a contract | |||
Capitalized Contract Cost, Activity [Roll Forward] | |||
Beginning Balance | 52,926 | 32,233 | |
Capitalization of Costs | 33,569 | 29,568 | |
Amortization | (14,153) | (8,875) | |
Ending Balance | 72,342 | 52,926 | 32,233 |
Costs to fulfill a contract | |||
Capitalized Contract Cost, Activity [Roll Forward] | |||
Beginning Balance | 62,457 | 39,689 | |
Capitalization of Costs | 45,993 | 33,394 | |
Amortization | (17,318) | (10,626) | |
Ending Balance | $ 91,132 | $ 62,457 | $ 39,689 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
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]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period | 1 year |
Revenue, remaining performance obligation, amount | $ 11,742 |
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 | $ 4,100 |
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 | 1 year |
Revenue, remaining performance obligation, amount | $ 1,204 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period |
BUSINESS COMBINATION AND ASSE_3
BUSINESS COMBINATION AND ASSET ACQUISITION - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Feb. 04, 2021 | Sep. 24, 2020 | May 31, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | $ 6,688 | $ 0 | ||||
Finite-lived intangible assets, remaining amortization period | 1 year 7 months 6 days | |||||
7Geese | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of business acquired | 100% | |||||
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 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Liabilities assumed: | ||||
Goodwill | $ 750,155 | $ 750,802 | $ 733,801 | |
7Geese | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 16,847 | |||
Contingent consideration | 3,000 | |||
Deferred consideration | 2,900 | |||
Fair value of total consideration | 22,747 | |||
Cash acquired | (107) | |||
Net purchase price | 22,640 | |||
Assets acquired: | ||||
Accounts receivable | 477 | |||
Other current assets | 295 | |||
Property and equipment | 64 | |||
Technology intangible assets | 9,040 | |||
Other intangible assets | 100 | |||
Other non-current assets | 9 | |||
Total identifiable assets acquired | 9,985 | |||
Liabilities assumed: | ||||
Accounts payable | (34) | |||
Accrued expenses | (1,730) | |||
Deferred revenue | (1,374) | |||
Total identifiable liabilities assumed | (3,138) | |||
Goodwill | 15,793 | |||
Fair value of total consideration transferred | $ 22,640 |
FUNDS HELD FOR CLIENTS - Schedu
FUNDS HELD FOR CLIENTS - Schedule of Funds Held for Clients (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule of Investments [Line Items] | |||
Demand deposit accounts and other cash equivalents, Amortized Cost | $ 133,041 | $ 2,634 | $ 828 |
Funds held for clients, Amortized Cost | 1,718,461 | 667,963 | |
Funds held for clients, Gross Unrealized Gains | 8 | 2,632 | |
Funds held for clients, Gross Unrealized Losses | (2,553) | (280) | |
Funds held for clients | 1,715,916 | 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 | 29,367 | 28,757 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 0 | 92 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (290) | (11) | |
Debt securities, available-for-sale, Fair Value | 29,077 | 28,838 | |
Corporate bonds | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 112,753 | 50,188 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 4 | 1,900 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (1,894) | (189) | |
Debt securities, available-for-sale, Fair Value | 110,863 | 51,899 | |
Commercial paper | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 6,642 | 21,831 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 2 | 11 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (3) | (6) | |
Debt securities, available-for-sale, Fair Value | 6,641 | 21,836 | |
Other securities | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 19,817 | 9,821 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 2 | 629 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (366) | (74) | |
Debt securities, available-for-sale, Fair Value | 19,453 | 10,376 | |
Demand deposit accounts and other cash equivalents | |||
Schedule of Investments [Line Items] | |||
Demand deposit accounts and other cash equivalents, Amortized Cost | 1,549,882 | 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 | $ 1,549,882 | $ 557,366 |
FUNDS HELD FOR CLIENTS - Narrat
FUNDS HELD FOR CLIENTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Funds Held For Clients [Abstract] | |||
Proceeds from sales and maturities of investment securities | $ 166,372 | $ 235,768 | $ 722,588 |
FUNDS HELD FOR CLIENTS - Sche_2
FUNDS HELD FOR CLIENTS - Schedule of Expected Maturities (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Funds Held For Clients [Abstract] | |
Due within fiscal year 2023 | $ 1,632,317 |
Due within fiscal year 2024 | 37,050 |
Due within fiscal year 2025 | 35,092 |
Due after fiscal year 2025 | 11,457 |
Total | $ 1,715,916 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of property and equipment at cost and accumulated depreciation (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 48,600 | $ 56,022 |
Accumulated depreciation and amortization | (16,925) | (14,942) |
Property and equipment, net | 31,675 | 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 | 14,951 | 13,427 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,246 | 4,596 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,538 | 2,337 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,430 | $ 8,227 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 6,457 | $ 6,947 | $ 5,462 |
CAPITALIZED SOFTWARE, NET - Sch
CAPITALIZED SOFTWARE, NET - Schedule of components of capitalized software (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Capitalized software | $ 83,682 | $ 52,945 |
Accumulated amortization | (43,680) | (21,635) |
Capitalized software, net | $ 40,002 | $ 31,310 |
CAPITALIZED SOFTWARE, NET - Nar
CAPITALIZED SOFTWARE, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Capitalized computer software, amortization | $ 22,057 | $ 13,764 | $ 6,893 |
CAPITALIZED SOFTWARE, NET - S_2
CAPITALIZED SOFTWARE, NET - Schedule of future amortization expense (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2023 | $ 89,516 | |
2024 | 83,380 | |
2025 | 31,478 | |
Intangible assets, net | 263,069 | $ 355,323 |
Computer Software, Intangible Asset | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
2023 | 21,006 | |
2024 | 14,135 | |
2025 | 4,861 | |
Intangible assets, net | $ 40,002 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of changes in goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 750,802 | $ 733,801 |
Foreign currency translation | (647) | 1,208 |
Goodwill, ending balance | $ 750,155 | 750,802 |
7Geese | ||
Goodwill [Roll Forward] | ||
7Geese Acquisition | $ 15,793 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of components of intangible assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 691,024 | $ 681,320 |
Accumulated amortization: | (427,955) | (325,997) |
Intangible assets, net | 263,069 | 355,323 |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 142,165 | 140,665 |
Accumulated amortization: | (135,982) | (116,669) |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 443,187 | 434,983 |
Accumulated amortization: | (266,129) | (190,538) |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 105,672 | 105,672 |
Accumulated amortization: | $ (25,844) | $ (18,790) |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets, excluding software | $ 101,959 | $ 125,590 | $ 120,862 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of future amortization expense (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 89,516 | |
2024 | 83,380 | |
2025 | 31,478 | |
2026 | 7,043 | |
2027 | 7,043 | |
Thereafter | 44,609 | |
Intangible assets, net | $ 263,069 | $ 355,323 |
DEBT AGREEMENTS AND LETTERS O_3
DEBT AGREEMENTS AND LETTERS OF CREDIT - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | 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) | 1 Months Ended | 5 Months Ended | 12 Months Ended | |||||||
Aug. 09, 2021 USD ($) | Jul. 15, 2021 USD ($) | Jun. 11, 2021 USD ($) | Jul. 22, 2021 | Dec. 31, 2021 | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | Sep. 03, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Repayments of line-of-credit | $ 44,500,000 | $ 4,600,000 | $ 52,600,000 | $ 62,921,000 | $ 109,126,000 | |||||
Write-off, unamortized financing fees | 2,195,000 | |||||||||
Legal fees | 35,000 | |||||||||
Payments of deferred financing fees | 100,000 | 342,000 | ||||||||
Letters of credit outstanding, amount | 0 | $ 0 | ||||||||
Intercompany Promissory Note | Pride Aggregator L.P. | Notes Payable, Other Payables | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes payable, related parties | $ 64,989,000 | |||||||||
Promissory note, interest rate (in percentage) | 0.15% | |||||||||
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 | |||||||||
Borrowings on line of credit | $ 0 | |||||||||
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% | |||||||||
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% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Capital lease cost | $ 1,249 | |||
Capital leases, accumulated depreciation | 460 | |||
Capital leases, depreciation expense | 284 | |||
Deferred rent | 520 | $ 5,330 | ||
Operating leases, rent expense | $ 5,452 | $ 5,411 | $ 5,285 | |
Loss on lease exit | $ 9,055 | |||
Write-off of carrying value of leases | 4,910 | |||
Deferred rent | $ 3,250 |
LEASES - Schedule of future min
LEASES - Schedule of future minimum lease payments under capital leases (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 323 |
2024 | 323 |
2025 | 296 |
2026 | 44 |
2027 | 0 |
Total minimum lease payments | 986 |
Less: Amount representing interest | (74) |
Present value of minimum lease payments | 912 |
Less: Current maturities of capital lease obligations | (283) |
Long-term capital lease obligations | $ 629 |
LEASES - Schedule of future ann
LEASES - Schedule of future annual minimum lease payments required under operating leases (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Leases [Abstract] | |
2023 | $ 6,678 |
2024 | 5,132 |
2025 | 4,257 |
2026 | 4,031 |
2027 | 3,721 |
Thereafter | 2,890 |
Total minimum lease payments | 26,709 |
Less sublease income of leased properties | (7,212) |
Net minimum lease payments | $ 19,497 |
LEASES - Exit cost rollforward
LEASES - Exit cost rollforward (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Exit cost obligation at cease-use date in fiscal year 2022 | $ 7,395 |
Accretion during fiscal year 2022 | 57 |
Net payments made during fiscal year 2022 | (1,065) |
Exit cost obligation at June 30, 2022 | $ 6,387 |
LEASES - Exit cost obligation (
LEASES - Exit cost obligation (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Leases [Abstract] | ||
Accrued expenses and other current liabilities | $ 3,037 | |
Other long-term liabilities | 3,350 | |
Total exit cost obligation | $ 6,387 | $ 7,395 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of financial assets and financial liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | 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 | $ 29,077 | $ 28,838 |
Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 110,863 | 51,899 |
Commercial paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 6,641 | 21,836 |
Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 19,453 | 10,376 |
Fair Value, Recurring | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 1,715,916 | 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 | 29,077 | 28,838 |
Fair Value, Recurring | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 110,863 | 51,899 |
Fair Value, Recurring | Commercial paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 6,641 | 21,836 |
Fair Value, Recurring | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 19,453 | 10,376 |
Fair Value, Recurring | Level 1 | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 1,549,882 | 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 | 166,034 | 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 | 29,077 | 28,838 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 110,863 | 51,899 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 6,641 | 21,836 |
Fair Value, Recurring | Level 2 | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 19,453 | 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 | 1,549,882 | 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 | 1,549,882 | 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 | 1,549,882 | 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 | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 23, 2021 | Jan. 20, 2021 | Dec. 29, 2020 | Nov. 01, 2018 | Sep. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Class of Stock [Line Items] | ||||||||
Proceeds from issuance of preferred stock, net of offering costs | $ 90,020 | $ 180,005 | $ 0 | $ 262,772 | $ 0 | |||
Payments of stock issuance costs | $ 30,583 | |||||||
Preferred stock, dividend, payment in cash (in percentage) | 50% | |||||||
Preferred stock, liquidation preference | 260,044 | |||||||
Preferred stock, dividend, in-kind, percentage | 50% | |||||||
Apax Acquisition | Redeemable Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of preferred stock, net (in shares) | 200,000 | |||||||
Proceeds from issuance of preferred stock, net of offering costs | $ 194,745 | |||||||
Payments of stock issuance costs | $ 5,255 | |||||||
Preferred stock, dividend, increase under unmet requirements per year (in percentage) | 2% | |||||||
Preferred stock, dividend, increase under unmet requirements per semester (in percentage) | 1% | |||||||
Preferred stock, dividend, increase under unmet requirements, period | 6 months | |||||||
Preferred stock, liquidation preference | $ 260,044 | |||||||
Accretion of redeemable noncontrolling interests | $ 11,621 | $ 24,438 | $ 22,890 | |||||
Apax Acquisition | Redeemable Preferred Stock | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend rate (in percentage) | 1% | |||||||
Apax Acquisition | Redeemable Preferred Stock | Second to third anniversary of issuance date | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend, payment in cash (in percentage) | 50% | |||||||
Apax Acquisition | Redeemable Preferred Stock | Second to third anniversary of issuance date | London Interbank Offered Rate (LIBOR) | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, basis spread on variable rate (in percentage) | 8.875% | |||||||
Apax Acquisition | Redeemable Preferred Stock | After Third Anniversary Of Issuance Date | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend, payment in cash (in percentage) | 100% | |||||||
Apax Acquisition | Redeemable Preferred Stock | After Third Anniversary Of Issuance Date | London Interbank Offered Rate (LIBOR) | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, basis spread on variable rate (in percentage) | 8.375% | |||||||
Apax Acquisition | Redeemable Preferred Stock | May 2, 2020 To November 2, 2020 | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, redemption price (in percentage) | 1.02% | |||||||
Apax Acquisition | Redeemable Preferred Stock | November 2, 2020 To November 1, 2021 | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, redemption price (in percentage) | 1.01% | |||||||
Apax Acquisition | Redeemable Preferred Stock | November 2, 2021 And Thereafter | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, redemption price (in percentage) | 1% |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS - Schedule of redeemable noncontrolling interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Redeemable noncontrolling interest at beginning of period | $ 248,423 | $ 233,335 |
Accretion of Redeemable Preferred Stock | 11,621 | 24,438 |
Dividends paid | (9,350) | |
Redemption of outstanding shares | (260,044) | |
Redeemable noncontrolling interest at ending of period | $ 0 | $ 248,423 |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Oct. 26, 2021 shares | Oct. 19, 2021 $ / shares shares | Jul. 23, 2021 USD ($) shares | Jan. 20, 2021 USD ($) shares | Dec. 29, 2020 USD ($) $ / shares shares | Jul. 31, 2021 | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2020 USD ($) shares | Jul. 20, 2021 $ / shares | Jun. 30, 2019 shares | |
Class of Stock [Line Items] | |||||||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Common stock, shares outstanding (in shares) | 174,909,539 | 141,097,740 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||||
Proceeds from issuance of preferred stock, net of offering costs | $ | $ 90,020 | $ 180,005 | $ 0 | $ 262,772 | $ 0 | ||||||
Preferred stock, initial liquidation (in dollars per share) | $ / shares | $ 35,000 | ||||||||||
Proceeds from promissory note with related party | $ | $ 64,989 | $ 0 | $ 64,989 | $ 0 | |||||||
Treasury stock (in shares) | 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 | ||||||||||
Payments of stock issuance costs | $ | $ 30,583 | ||||||||||
Stock split conversion ratio | 1,517.18 | ||||||||||
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) | 2,572 | 5,143 | |||||||||
Proceeds from issuance of preferred stock, net of offering costs | $ | $ 270,025 | ||||||||||
Payments of stock issuance costs | $ | $ 7,253 | ||||||||||
Preferred Stock | Series A Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 7,715 | 0 | 0 | |||||||
Issuance of preferred stock, net (in shares) | 7,715 |
EQUITY COMPENSATION PLANS - Nar
EQUITY COMPENSATION PLANS - Narrative (Details) | 12 Months Ended | |||||
Jul. 23, 2021 shares | Jul. 20, 2021 USD ($) shares | Nov. 02, 2018 tradingDay installment | Jun. 30, 2022 USD ($) plan shares | Jun. 30, 2021 USD ($) shares | Jun. 30, 2020 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement expense (benefit) | $ 71,376,000 | $ 3,983,000 | $ 7,961,000 | |||
Income tax benefits | $ 4,352,000 | 43,000 | 536,000 | |||
Number of plans | plan | 3 | |||||
Number of installments | installment | 12 | |||||
Options granted in period (in shares) | shares | 1,159,520 | |||||
Expected dividend yield on stock | 0% | |||||
Liability Incentive Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of unvested awards accelerated to vest | 50% | |||||
Percentage of unvested awards earned and paid | 50% | |||||
Unvested awards earned and paid, amount | $ 0 | 11,605,000 | 8,957,000 | |||
Liability incentive award | 0 | 0 | ||||
Unamortized compensation expense | $ 0 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement expense (benefit) | $ 0 | $ 0 | ||||
Award vesting rights, percentage | 20% | |||||
Trading day period | tradingDay | 10 | |||||
Unrecognized compensation expense, weighted average period | 2 years | 2 years | 1 year 9 months 18 days | |||
Unrecognized compensation expense | $ 49,218,000 | |||||
Award requisite service period | 2 years | |||||
Number of vested units (in shares) | shares | 701,638 | |||||
Weighted average grant date fair value of units | $ 18,971,000 | |||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 6 months | |||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 12 months | |||||
Restricted Stock Units (RSUs) | Share-Based Payment Arrangement, Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 18 months | |||||
Restricted Stock Units (RSUs) | Share-Based Payment Arrangement, Tranche Four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 24 months | |||||
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 | |||||
Time-Based Incentive Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 25% | |||||
Award vesting period | 6 months | |||||
Unrecognized compensation expense, weighted average period | 1 year 3 months 18 days | |||||
Unrecognized compensation expense | $ 3,619,000 | |||||
Number of vested units (in shares) | shares | 19,965 | 10,142 | ||||
Weighted average grant date fair value of units | $ 417 | $ 445 | ||||
Expected dividend yield on stock | 0% | |||||
Time-Based Incentive Units | Share-based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 25% | |||||
Time-Based Incentive Units | Share-based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 100% | |||||
Time-Based Incentive Units | 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% | |||||
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% | |||||
Employee Stock | 2021 Employee Stock Purchase Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of eligible pay | 10% | |||||
Share-based Payment Arrangement, Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense, weighted average period | 2 years 1 month 6 days | |||||
Unrecognized compensation expense | $ 7,281,000 | |||||
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 1 month 6 days | |||||
Unrecognized compensation expense | $ 26,201,000 | |||||
Number of vested units (in shares) | shares | 9,009 | 0 | ||||
Weighted average grant date fair value of units | $ 1,428 | $ 0 |
EQUITY COMPENSATION PLANS - Val
EQUITY COMPENSATION PLANS - Valuation Assumptions (Details) | 12 Months Ended |
Jun. 30, 2022 $ / 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% |
Time-Based Incentive Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield on stock | 0% |
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 |
Minimum | Time-Based Incentive Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility range of stock | 60% |
Expected life of option (in years) | 8 months 1 day |
Risk-free interest rate | 0.09% |
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 | 2.41% |
Fair value per option (in dollars per share) | $ 14.51 |
Maximum | Time-Based Incentive Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility range of stock | 65% |
Expected life of option (in years) | 9 months |
Risk-free interest rate | 0.12% |
EQUITY COMPENSATION PLANS - MEP
EQUITY COMPENSATION PLANS - MEP Unit Incentive Activity (Details) | 12 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Time-Based Incentive Units | |
Number of Units | |
Beginning balance (in shares) | shares | 38,079 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (1,023) |
Ending balance (in shares) | shares | 37,056 |
Weighted Average Floor Price | |
Beginning balance | $ 578 |
Granted | 0 |
Forfeited | 1,131 |
Ending balance | 563 |
Weighted Average Fair Value | |
Beginning balance | 442 |
Granted | 0 |
Forfeited | 406 |
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 | (2,144) |
Ending balance (in shares) | shares | 34,735 |
Weighted Average Floor Price | |
Beginning balance | $ 593 |
Granted | 0 |
Forfeited | 665 |
Ending balance | 589 |
Weighted Average Fair Value | |
Beginning balance | 379 |
Granted | 0 |
Forfeited | 1,346 |
Ending balance | $ 1,423 |
EQUITY COMPENSATION PLANS - Sto
EQUITY COMPENSATION PLANS - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Options Outstanding | |
Beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 1,159,520 |
Exercised (in shares) | shares | 0 |
Forfeited and cancelled (in shares) | shares | (46,741) |
Ending balance (in shares) | shares | 1,112,779 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ 0 |
Granted (in dollars per share) | 23.17 |
Exercised (in dollars per share) | 0 |
Forfeited and cancelled (in dollars per share) | 23 |
Ending balance (in dollars per share) | 23.18 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | 0 |
Granted (in dollars per share) | 9.45 |
Exercised (in dollars per share) | 0 |
Forfeited and cancelled (in dollars per share) | 9.36 |
Ending balance (in dollars per share) | $ 9.45 |
Stock Options Additional Disclosures | |
Granted, Weighted Average Remaining Contractual Term | 9 years 25 days |
Outstanding at September 30, 2021, Weighted Average Remaining Contractual Term | 9 years 25 days |
Options outstanding, aggregate intrinsic value | $ | $ 3,265 |
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 - Res
EQUITY COMPENSATION PLANS - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Number of Units | |
Beginning balance (in shares) | shares | 0 |
Conversion of LTIP Units (in shares) | shares | 1,761,578 |
Granted (in shares) | shares | 1,605,666 |
Vested (in shares) | shares | (701,638) |
Forfeited (in shares) | shares | (260,122) |
Ending balance (in shares) | shares | 2,405,484 |
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 | 29.97 |
Vested (in dollars per share) | $ / shares | 27.04 |
Forfeited (in dollars per share) | $ / shares | 28.82 |
Ending balance (in dollars per share) | $ / shares | $ 28.78 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to Paycor HCM, Inc. | $ (119,638) | $ (96,920) | $ (90,193) |
Weighted average outstanding shares: | |||
Basic (in shares) | 172,636,523 | 146,364,225 | 151,718,000 |
Diluted (in shares) | 172,636,523 | 146,364,225 | 151,718,000 |
Basic net loss per share (in dollars per share) | $ (0.69) | $ (0.66) | $ (0.59) |
Diluted net loss per share (in dollars per share) | $ (0.69) | $ (0.66) | $ (0.59) |
PROFIT SHARING PLAN (Details)
PROFIT SHARING PLAN (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |||
Percent of employer matching contribution | 65% | ||
Percent of employee's eligible wages | 6% | ||
Define contribution plan costs | $ 6,073 | $ 2,505 | $ 3,907 |
INCOME TAXES - Income (Loss) Be
INCOME TAXES - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (140,021) | $ (94,223) | $ (87,485) |
Foreign | 1,430 | 929 | 0 |
Loss before benefit for income taxes | $ (138,591) | $ (93,294) | $ (87,485) |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Federal: | |||
Current provision | $ 1 | $ 9 | $ 0 |
Deferred benefit | (29,547) | (18,570) | (16,950) |
Federal tax benefit | (29,546) | (18,561) | (16,950) |
State: | |||
Current provision (benefit) | 51 | 140 | (1) |
Deferred benefit | (1,344) | (2,655) | (3,231) |
State tax benefit | (1,293) | (2,515) | (3,232) |
Foreign: | |||
Current provision | 314 | 61 | 0 |
Deferred (benefit) provision | (49) | 203 | 0 |
Foreign tax provision | 265 | 264 | 0 |
Total tax benefit | $ (30,574) | $ (20,812) | $ (20,182) |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred tax assets: | ||
Stock-based compensation | $ 4,497 | $ 0 |
Accrued expenses | 2,360 | 1,849 |
Net operating loss carryforwards | 56,089 | 43,009 |
Deferred rent | 1,093 | 1,277 |
Deferred revenue | 4,023 | 4,204 |
Unrealized gain (loss) | 618 | |
Unrealized gain (loss) | (245) | |
Tax credits | 8,457 | 3,724 |
Other items | 1,279 | 1,177 |
Total deferred tax assets | 78,416 | 54,995 |
Valuation allowance | (744) | (117) |
Net deferred tax assets | 77,672 | 54,878 |
Deferred tax liabilities: | ||
Software development costs | (9,718) | (7,514) |
Deferred contract costs | (39,786) | (27,694) |
Property and equipment | (3,432) | (4,883) |
Other intangibles | (56,530) | (78,171) |
Other | (101) | (302) |
Total deferred liabilities | (109,567) | (118,564) |
Net deferred tax liabilities | $ (31,895) | $ (63,686) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Income Tax Examination [Line Items] | ||
Valuation allowance | $ 744 | $ 117 |
Operating loss carryforwards not subject to expiration | 181,033 | |
Operating loss carryforwards, subject to expiration | 53,773 | |
Research and development tax credit carryforwards | 7,982 | 3,724 |
TEXAS | ||
Income Tax Examination [Line Items] | ||
Research and development tax credit carryforwards | 982 | 261 |
Domestic Tax Authority | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards | 234,806 | 181,686 |
State and Local Jurisdiction | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards | $ 211,795 | $ 156,603 |
INCOME TAXES - Schedule of Unre
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Unrecognized tax benefits at the beginning of the year | $ 0 |
Additions for tax positions | 97 |
Additions for tax positions of prior periods | 284 |
Unrecognized tax benefits at the end of the year | $ 381 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21% | 21% | 21% |
Research tax credits | 3.60% | 0% | 0% |
State income taxes, net of federal tax benefit | 1.70% | 2.70% | 2.90% |
Stock-based compensation | (4.60%) | (0.90%) | (1.30%) |
Transaction costs | 2.20% | 0% | 0% |
Other permanent differences | (1.40%) | (0.50%) | (0.20%) |
Valuation allowance | (0.40%) | 0% | 0.70% |
Effective income tax rate | 22.10% | 22.30% | 23.10% |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - Schedule of condensed balance sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Assets | |||
Cash and cash equivalents | $ 133,041 | $ 2,634 | $ 828 |
Total assets | 3,131,317 | 2,010,953 | |
Liabilities and Stockholders’ Equity | |||
Total liabilities | 1,846,586 | 883,891 | |
Total liabilities, redeemable noncontrolling interest and stockholders' equity | 3,131,317 | 2,010,953 | |
Parent Company | |||
Assets | |||
Cash and cash equivalents | 5,000 | 0 | |
Investment in subsidiary | 1,279,731 | 878,639 | |
Total assets | 1,284,731 | 878,639 | |
Liabilities and Stockholders’ Equity | |||
Total liabilities | 0 | 0 | |
Total stockholders’ equity | 1,284,731 | 878,639 | |
Total liabilities, redeemable noncontrolling interest and stockholders' equity | $ 1,284,731 | $ 878,639 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - Schedule of condensed income statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Income Statements, Captions [Line Items] | |||
Net loss attributable to Paycor HCM, Inc. | $ (119,638) | $ (96,920) | $ (90,193) |
Other comprehensive (loss) income, net of tax: | |||
Subsidiaries’ other comprehensive (loss) income | (2,980) | 382 | 104 |
Comprehensive loss attributable to Paycor HCM, Inc. | (122,618) | (96,538) | (90,089) |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Equity in net loss of subsidiary | (119,638) | (96,920) | (90,193) |
Net loss attributable to Paycor HCM, Inc. | (119,638) | (96,920) | (90,193) |
Other comprehensive (loss) income, net of tax: | |||
Subsidiaries’ other comprehensive (loss) income | (2,980) | 382 | 104 |
Total other comprehensive (loss) income | (2,980) | 382 | 104 |
Comprehensive loss attributable to Paycor HCM, Inc. | $ (122,618) | $ (96,538) | $ (90,089) |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - Schedule of condensed cash flows statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 20, 2021 | Dec. 29, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Activities: | |||||
Net loss attributable to Paycor HCM, Inc. | $ (119,638) | $ (96,920) | $ (90,193) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Net cash provided by operating activities | 24,351 | 10,773 | 88 | ||
Investing Activities: | |||||
Net cash (used in) provided by investing activities | (84,550) | (52,581) | 121,529 | ||
Financing Activities: | |||||
Proceeds from issuance of preferred stock, net of offering costs | $ 90,020 | $ 180,005 | 0 | 262,772 | 0 |
Purchase of treasury stock at cost | 0 | (245,074) | 0 | ||
Proceeds from the issuance of common stock sold in the IPO, net of offering costs and underwriting discount | 454,915 | 0 | 0 | ||
Proceeds from employee stock purchase plan | 3,187 | 0 | 0 | ||
Net cash provided by (used in) financing activities | 1,183,031 | 55,316 | (20,880) | ||
Net change in cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | 1,122,923 | 13,552 | 100,737 | ||
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, beginning of period | 560,000 | 546,448 | 445,711 | ||
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, end of period | 1,682,923 | 560,000 | 546,448 | ||
Parent Company | |||||
Operating Activities: | |||||
Net loss attributable to Paycor HCM, Inc. | (119,638) | (96,920) | (90,193) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Equity in net loss of subsidiaries | 119,638 | 96,920 | 90,193 | ||
Net cash provided by operating activities | 0 | 0 | 0 | ||
Investing Activities: | |||||
Net cash (used in) provided by investing activities | 0 | 0 | 0 | ||
Financing Activities: | |||||
Proceeds from issuance of preferred stock, net of offering costs | 0 | 262,772 | 0 | ||
Purchase of treasury stock at cost | 0 | (245,074) | 0 | ||
Proceeds from the issuance of common stock sold in the IPO, net of offering costs and underwriting discount | 454,915 | 0 | 0 | ||
Contributions to subsidiaries | (453,102) | (17,698) | 0 | ||
Proceeds from employee stock purchase plan | 3,187 | 0 | 0 | ||
Net cash provided by (used in) financing activities | 5,000 | 0 | 0 | ||
Net change in cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | 5,000 | 0 | 0 | ||
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, beginning of period | 0 | 0 | 0 | ||
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, end of period | $ 5,000 | $ 0 | $ 0 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Aug. 07, 2022 |
Subsequent Event | |
Subsequent Event [Line Items] | |
Partnership agreement | 16 years |