Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40640 | |
Entity Registrant Name | PAYCOR HCM, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-1813909 | |
Entity Address, Address Line One | 4811 Montgomery Road | |
Entity Address, City or Town | Cincinnati | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45212 | |
City Area Code | 800 | |
Local Phone Number | 381-0053 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | PYCR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 178,210,132 | |
Entity Central Index Key | 0001839439 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 90,098 | $ 95,233 |
Accounts receivable, net | 43,989 | 30,820 |
Deferred contract costs | 67,156 | 54,448 |
Prepaid expenses | 16,985 | 10,448 |
Other current assets | 7,772 | 2,581 |
Current assets before funds held for clients | 226,000 | 193,530 |
Funds held for clients | 1,418,233 | 1,049,156 |
Total current assets | 1,644,233 | 1,242,686 |
Property and equipment, net | 35,780 | 34,573 |
Operating lease right-of-use assets | 14,968 | 16,834 |
Goodwill | 766,739 | 767,738 |
Intangible assets, net | 190,818 | 260,472 |
Capitalized software, net | 64,987 | 53,983 |
Long-term deferred contract costs | 184,480 | 162,657 |
Other long-term assets | 3,344 | 2,232 |
Total assets | 2,905,349 | 2,541,175 |
Current liabilities: | ||
Accounts payable | 20,005 | 28,350 |
Accrued expenses and other current liabilities | 25,088 | 24,119 |
Accrued payroll and payroll related expenses | 36,754 | 43,858 |
Deferred revenue | 14,017 | 13,083 |
Current liabilities before client fund obligations | 95,864 | 109,410 |
Client fund obligations | 1,420,159 | 1,053,926 |
Total current liabilities | 1,516,023 | 1,163,336 |
Deferred income taxes | 13,696 | 18,047 |
Long-term operating leases | 14,009 | 16,061 |
Other long-term liabilities | 70,251 | 70,047 |
Total liabilities | 1,613,979 | 1,267,491 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Common stock $0.000 par value per share, 500,000 shares authorized, 178,030 shares outstanding at March 31, 2024 and 176,535,236 shares outstanding at June 30, 2023 | 178 | 177 |
Treasury stock, at cost, 10,620,260 shares at March 31, 2024 and June 30, 2023 | (245,074) | (245,074) |
Preferred stock, $0.001 par value, 50,000,000 shares authorized, — shares outstanding at March 31, 2024 and June 30, 2023 | 0 | 0 |
Additional paid-in capital | 2,067,497 | 2,011,194 |
Accumulated deficit | (530,147) | (489,495) |
Accumulated other comprehensive loss | (1,084) | (3,118) |
Total stockholders' equity | 1,291,370 | 1,273,684 |
Total liabilities and stockholders' equity | $ 2,905,349 | $ 2,541,175 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 178,030,253 | 176,535,236 |
Treasury stock (in shares) | 10,620,260 | 10,620,260 |
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 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||||
Recurring and other revenue | $ 171,973 | $ 150,757 | $ 451,913 | $ 389,908 |
Interest income on funds held for clients | 15,046 | 10,725 | 38,235 | 22,741 |
Total revenues | 187,019 | 161,482 | 490,148 | 412,649 |
Cost of revenues | 58,736 | 49,323 | 165,239 | 138,692 |
Gross profit | 128,283 | 112,159 | 324,909 | 273,957 |
Operating expenses: | ||||
Sales and marketing | 55,839 | 55,499 | 166,370 | 155,607 |
General and administrative | 49,921 | 51,033 | 154,843 | 151,405 |
Research and development | 15,067 | 13,658 | 45,787 | 39,935 |
Total operating expenses | 120,827 | 120,190 | 367,000 | 346,947 |
Income (loss) from operations | 7,456 | (8,031) | (42,091) | (72,990) |
Other (expense) income: | ||||
Interest expense | (1,146) | (1,970) | (3,543) | (3,461) |
Other | 1,133 | 2,003 | 319 | 2,514 |
Income (loss) before benefit for income taxes | 7,443 | (7,998) | (45,315) | (73,937) |
Income tax expense (benefit) | 1,250 | (658) | (4,663) | (10,082) |
Net income (loss) | $ 6,193 | $ (7,340) | $ (40,652) | $ (63,855) |
Basic net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.04) | $ (0.23) | $ (0.36) |
Diluted net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.04) | $ (0.23) | $ (0.36) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 177,968,744 | 176,306,017 | 177,494,795 | 175,879,962 |
Diluted (in shares) | 177,968,744 | 176,306,017 | 177,494,795 | 175,879,962 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 6,193 | $ (7,340) | $ (40,652) | $ (63,855) |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized (loss) gain on foreign currency translation | (154) | 21 | (139) | (286) |
Unrealized (loss) gain on available-for-sale securities, net of tax | (926) | 641 | 2,173 | 175 |
Other comprehensive (loss) income, net of tax | (1,080) | 662 | 2,034 | (111) |
Comprehensive income (loss) | $ 5,113 | $ (6,678) | $ (38,618) | $ (63,966) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Preferred stock, beginning balance (in shares) at Jun. 30, 2022 | 0 | ||||||
Stockholders' equity, beginning balance at Jun. 30, 2022 | $ 1,284,731 | $ 0 | $ 175 | $ (245,074) | $ 1,926,800 | $ (395,389) | $ (1,781) |
Common stock, beginning balance (in shares) at Jun. 30, 2022 | 174,909,539 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (63,855) | (63,855) | |||||
Stock-based compensation expense | 58,019 | 58,019 | |||||
Net settlement for taxes | (2,150) | (2,150) | |||||
Issuance of common stock under employee stock plans (in shares) | 1,530,883 | ||||||
Issuance of common stock under employee stock plans | 8,630 | $ 1 | 8,629 | ||||
Other comprehensive income (loss) | (111) | (111) | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2023 | 0 | ||||||
Stockholders' equity, ending balance at Mar. 31, 2023 | 1,285,264 | $ 0 | $ 176 | (245,074) | 1,991,298 | (459,244) | (1,892) |
Common stock, ending balance (in shares) at Mar. 31, 2023 | 176,440,422 | ||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2022 | 0 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2022 | 1,267,996 | $ 0 | $ 176 | (245,074) | 1,967,352 | (451,904) | (2,554) |
Common stock, beginning balance (in shares) at Dec. 31, 2022 | 175,856,650 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (7,340) | (7,340) | |||||
Stock-based compensation expense | 20,384 | 20,384 | |||||
Net settlement for taxes | (423) | (423) | |||||
Issuance of common stock under employee stock plans (in shares) | 583,772 | ||||||
Issuance of common stock under employee stock plans | 3,985 | 3,985 | |||||
Other comprehensive income (loss) | 662 | 662 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2023 | 0 | ||||||
Stockholders' equity, ending balance at Mar. 31, 2023 | $ 1,285,264 | $ 0 | $ 176 | (245,074) | 1,991,298 | (459,244) | (1,892) |
Common stock, ending balance (in shares) at Mar. 31, 2023 | 176,440,422 | ||||||
Preferred stock, beginning balance (in shares) at Jun. 30, 2023 | 0 | 0 | |||||
Stockholders' equity, beginning balance at Jun. 30, 2023 | $ 1,273,684 | $ 0 | $ 177 | (245,074) | 2,011,194 | (489,495) | (3,118) |
Common stock, beginning balance (in shares) at Jun. 30, 2023 | 176,535,236 | 176,535,236 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ (40,652) | (40,652) | |||||
Stock-based compensation expense | 50,813 | 50,813 | |||||
Net settlement for taxes | (2,373) | (2,373) | |||||
Issuance of common stock under employee stock plans (in shares) | 1,495,017 | ||||||
Issuance of common stock under employee stock plans | 7,864 | $ 1 | 7,863 | ||||
Other comprehensive income (loss) | $ 2,034 | 2,034 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2024 | 0 | 0 | |||||
Stockholders' equity, ending balance at Mar. 31, 2024 | $ 1,291,370 | $ 0 | $ 178 | (245,074) | 2,067,497 | (530,147) | (1,084) |
Common stock, ending balance (in shares) at Mar. 31, 2024 | 178,030,253 | 178,030,253 | |||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2023 | 0 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2023 | $ 1,268,261 | $ 0 | $ 178 | (245,074) | 2,049,501 | (536,340) | (4) |
Common stock, beginning balance (in shares) at Dec. 31, 2023 | 177,634,296 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 6,193 | 6,193 | |||||
Stock-based compensation expense | 14,849 | 14,849 | |||||
Net settlement for taxes | (544) | (544) | |||||
Issuance of common stock under employee stock plans (in shares) | 395,957 | ||||||
Issuance of common stock under employee stock plans | 3,691 | ||||||
Other comprehensive income (loss) | $ (1,080) | (1,080) | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2024 | 0 | 0 | |||||
Stockholders' equity, ending balance at Mar. 31, 2024 | $ 1,291,370 | $ 0 | $ 178 | $ (245,074) | $ 2,067,497 | $ (530,147) | $ (1,084) |
Common stock, ending balance (in shares) at Mar. 31, 2024 | 178,030,253 | 178,030,253 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (40,652) | $ (63,855) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 4,464 | 3,571 |
Amortization of intangible assets and software | 101,872 | 92,727 |
Amortization of deferred contract costs | 46,524 | 33,246 |
Stock-based compensation expense | 50,813 | 58,019 |
Deferred tax benefit | (4,670) | (10,287) |
Bad debt expense | 4,937 | 3,233 |
Loss on sale of investments | 280 | 232 |
Loss on foreign currency exchange | 186 | 381 |
(Gain) loss on lease exit | (24) | 950 |
Naming rights accretion expense | 3,066 | 3,198 |
Change in fair value of deferred consideration | 2,816 | 0 |
Other | 66 | |
Other | (930) | |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (18,124) | (12,063) |
Prepaid expenses and other assets | (9,567) | (6,510) |
Accounts payable | (8,478) | 6,229 |
Accrued liabilities and other | (13,944) | (19,602) |
Deferred revenue | 1,190 | 1,119 |
Deferred contract costs | (81,055) | (73,273) |
Net cash provided by operating activities | 39,700 | 16,385 |
Cash flows from investing activities: | ||
Purchases of client funds available-for-sale securities | (226,919) | (365,196) |
Proceeds from sale and maturities of client funds available-for-sale securities | 178,134 | 259,097 |
Purchase of property and equipment | (2,451) | (3,285) |
Acquisition of intangible assets | (4,954) | (18,842) |
Acquisition of businesses, net of cash acquired | 82 | (18,793) |
Internally developed software costs | (38,268) | (30,600) |
Net cash used in investing activities | (94,376) | (177,619) |
Cash flows from financing activities: | ||
Net change in cash and cash equivalents held to satisfy client funds obligations | 364,028 | (453,685) |
Payment of capital expenditure financing | (3,689) | 0 |
Repayments of debt and finance lease obligations | (809) | (211) |
Withholding taxes paid related to net share settlements | (2,373) | (2,150) |
Proceeds from exercise of stock options | 0 | 345 |
Proceeds from employee stock purchase plan | 7,864 | 8,285 |
Net cash provided by (used in) financing activities | 365,021 | (447,416) |
Impact of foreign exchange on cash and cash equivalents | (3) | (15) |
Net change in cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | 310,342 | (608,665) |
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, beginning of period | 879,046 | 1,682,923 |
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, end of period | 1,189,388 | 1,074,258 |
Total cash, cash equivalents, restricted cash and short-term investments, and funds held for clients | 1,189,388 | 1,074,258 |
Supplemental disclosure of non-cash investing, financing and other cash flow information: | ||
Capital expenditures in accounts payable | 20 | 2 |
Cash paid for interest | 145 | 0 |
Right-of-use assets obtained in exchange for operating lease liabilities | 0 | 6,257 |
Capital lease asset obtained in exchange for capital lease liabilities | 3,393 | 0 |
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 | 90,098 | 82,858 |
Funds held for clients | $ 1,099,290 | $ 991,400 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Mar. 31, 2024 | |
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”) is a leading provider of human capital management (“HCM”) software located primarily in the United States (“U.S.”). Paycor’s solutions target small and medium-sized businesses with tens to thousands of employees. Solutions provided include payroll, human resources (“HR”) services, talent acquisition, talent management, workforce management, benefits administration, 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of presentation and consolidation The accompanying interim unaudited condensed consolidated financial statements of the Company were prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim reporting. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2023 in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on August 28, 2023. The unaudited condensed consolidated financial statements for interim periods do not include all disclosures required by U.S. GAAP for annual financial statements and are not necessarily indicative of results for any future interim periods and the full fiscal year ending June 30, 2024. Adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the unaudited condensed consolidated financial position, results of operations and cash flows at the dates and for the periods presented have been included. All intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the 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. 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. Accounts receivable, net Accounts receivable balances are shown on the unaudited condensed consolidated balance sheets net of the allowance for doubtful accounts of $11,880 and $7,032 as of March 31, 2024 and June 30, 2023, 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. 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 expenses totaled approximately $8,459 and $8,014 for the three months ended March 31, 2024 and 2023, respectively. Advertising and promotion expenses totaled approximately $24,730 and $21,415 for the nine months ended March 31, 2024 and 2023, respectively. Stock-based compensation The Company recognizes all employee and director stock-based compensation as a cost in the unaudited condensed consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of actual forfeitures, on a straight-line basis over the requisite service period for the award. The Company establishes the grant date fair value of restricted stock units (“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. The Company recognized stock-based compensation expense for the three months ended March 31, 2024 and 2023 of $14,849 and $20,384, respectively. The Company recognized stock-based compensation expense for the nine months ended March 31, 2024 and 2023 of $50,813 and $58,019, respectively. |
REVENUE
REVENUE | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE: The following table disaggregates revenue from contracts by recurring fees and implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Recurring fees $ 168,105 $ 147,491 $ 440,616 $ 380,426 Implementation services and other 3,868 3,266 11,297 9,482 Recurring and other revenue $ 171,973 $ 150,757 $ 451,913 $ 389,908 The Company recognizes deferred revenue for nonrefundable upfront fees as well as for subscription services related to certain ancillary products invoiced prior to the satisfaction of the performance obligation. The nonrefundable upfront fees related to implementation services are typically included on the client’s first invoice. Implementation fees are deferred and recognized as revenue over an estimated 24-month period to which the material right exists, which is the period the client is expected to benefit from not having to pay an additional nonrefundable implementation fee upon renewal of the service. The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Balance, beginning of period $ 18,952 $ 17,037 $ 18,697 $ 17,046 Deferred revenue acquired — 7 — 300 Deferral of revenue 6,391 6,279 16,444 16,186 Revenue recognized (5,458) (4,949) (15,252) (15,052) Impact of foreign exchange (23) (4) (27) (110) Balance, end of period $ 19,862 $ 18,370 $ 19,862 $ 18,370 Deferred revenue is recorded within deferred revenue and other long-term liabilities on the unaudited condensed consolidated balance sheets. The Company will recognize deferred revenue of $4,192 in fiscal year 2024, $11,822 in fiscal year 2025, and $3,848 in fiscal year 2026. Deferred contract costs The following table presents the deferred contract costs balance and related amortization expense for these deferred contract costs. As of and for the Three Months Ended March 31, 2024 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 101,235 $ 10,880 $ (7,111) $ 105,004 Costs to fulfill a contract 139,898 16,271 (9,537) 146,632 Total $ 241,133 $ 27,151 $ (16,648) $ 251,636 As of and for the Three Months Ended March 31, 2023 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 82,423 $ 10,559 $ (5,316) $ 87,666 Costs to fulfill a contract 107,482 15,189 (6,836) 115,835 Total $ 189,905 $ 25,748 $ (12,152) $ 203,501 As of and for the Nine Months Ended March 31, 2024 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 93,317 $ 31,685 $ (19,998) $ 105,004 Costs to fulfill a contract 123,788 49,370 (26,526) 146,632 Total $ 217,105 $ 81,055 $ (46,524) $ 251,636 As of and for the Nine Months Ended March 31, 2023 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 72,342 $ 29,949 $ (14,625) $ 87,666 Costs to fulfill a contract 91,132 43,324 (18,621) 115,835 Total $ 163,474 $ 73,273 $ (33,246) $ 203,501 Deferred contract costs are recorded within deferred contract costs and long-term deferred contract costs on the unaudited condensed consolidated balance sheets. Amortization of costs to fulfill a contract and costs to obtain a contract are recorded in |
BUSINESS COMBINATION AND ASSET
BUSINESS COMBINATION AND ASSET ACQUISITION | 9 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION AND ASSET ACQUISITION | BUSINESS COMBINATION AND ASSET ACQUISITION: Acquisition of Verb, Inc. On May 2, 2023, the Company acquired 100% of the equity interests of Verb, Inc., a modern behavioral science-based microlearning solution to develop frontline leaders and their teams (the “Verb Acquisition”), for an initial cash purchase price of $6,000, plus up to a maximum of $2,000 in additional cash payments based on the achievement of an established earnout. The acquisition was funded with cash on hand. The acquisition was accounted for as a business combination. The preliminary purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair value of the total consideration transferred at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is deductible for tax purposes. Goodwill consists primarily of the 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 Verb Acquisition. The benefits include acquiring a software technology tailored to small and medium-sized businesses that can be integrated into the current suite of the Company’s products. The preliminary purchase price for the Verb Acquisition was allocated to individual assets acquired and liabilities assumed as follows: May 2, 2023 Fair value of total consideration $ 5,677 Cash acquired (295) Net purchase price $ 5,382 Assets acquired: Accounts receivable $ 144 Other current assets 119 Property and equipment 22 Technology intangible assets 2,680 Other non-current assets 586 Total identifiable assets acquired 3,551 Liabilities assumed: Accounts payable (49) Accrued expenses (96) Deferred revenue (749) Total identifiable liabilities assumed (894) Goodwill 2,725 Fair value of total consideration transferred $ 5,382 The technology intangible assets acquired have a weighted average useful life of 3 years. The fair value of the contingent consideration was measured at the acquisition date based on management’s estimate of future payments and recorded as a liability within other long-term liabilities on the unaudited condensed consolidated balance sheets. Acquisition of Talenya Ltd. On October 27, 2022, the Company acquired 100% of the equity interests of Talenya Ltd., an Israeli-based provider of an artificial intelligence-driven solution for talent sourcing and recruiting employees (the “Talenya Acquisition”), for an initial cash purchase price of $20,000, plus up to a maximum of $10,000 in additional cash payments based on the achievement of established earnouts over a two-year period. The acquisition was funded with cash on hand. The acquisition was accounted for as a business combination. The preliminary purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair value of the total consideration transferred at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is deductible for tax purposes. Goodwill consists primarily of the 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 Talenya Acquisition. The benefits include acquiring a software technology tailored to small and medium-sized businesses that can be integrated into the current suite of the Company’s products. The final purchase price for the Talenya Acquisition was allocated to individual assets acquired and liabilities assumed as follows: October 27, 2022 Fair value of total consideration $ 23,240 Cash acquired (172) Net purchase price $ 23,068 Assets acquired: Accounts receivable $ 217 Other current assets 34 Property and equipment 13 Technology intangible assets 6,760 Other non-current assets 2,222 Total identifiable assets acquired 9,246 Liabilities assumed: Accounts payable (211) Accrued expenses (294) Deferred revenue (300) Total identifiable liabilities assumed (805) Goodwill 14,627 Fair value of total consideration transferred $ 23,068 The technology intangible assets acquired have a weighted average useful life of 7 years. The fair value of the contingent consideration was measured at the acquisition date based on management’s estimate of future payments and recorded as a liability within accrued expenses and other current liabilities and other long-term liabilities on the unaudited condensed consolidated balance sheets. The Company incurred transaction costs of $— related to the Talenya Acquisition for both the three months ended March 31, 2024 and 2023 and $— and $1,174 related to the Talenya Acquisition for the nine months ended March 31, 2024 and 2023, respectively. These costs were expensed as incurred in general and administrative expenses within the accompanying unaudited condensed consolidated statements of operations. Asset Acquisitions The Company periodically acquires customer relationships from other HCM providers. The asset purchase agreements usually provide for an initial payment as well as contingent payments to the seller based on revenue generated by the acquired clients over a defined timeframe. Contingent payments made under such agreements for both the three months ended March 31, 2024 and 2023 were $—. Contingent payments made under such agreements for the nine months ended March 31, 2024 and 2023 were $3,596 and $4,259, respectively. The acquired customer relationships are recorded within intangible assets on the unaudited condensed consolidated balance sheets and are being amortized on a straight-line basis over three years. As of March 31, 2024, the weighted average remaining amortization period for these intangible assets was approximately 1.9 years. The contingent payments were recognized when |
BUSINESS COMBINATION AND ASSET ACQUISITION | BUSINESS COMBINATION AND ASSET ACQUISITION: Acquisition of Verb, Inc. On May 2, 2023, the Company acquired 100% of the equity interests of Verb, Inc., a modern behavioral science-based microlearning solution to develop frontline leaders and their teams (the “Verb Acquisition”), for an initial cash purchase price of $6,000, plus up to a maximum of $2,000 in additional cash payments based on the achievement of an established earnout. The acquisition was funded with cash on hand. The acquisition was accounted for as a business combination. The preliminary purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair value of the total consideration transferred at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is deductible for tax purposes. Goodwill consists primarily of the 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 Verb Acquisition. The benefits include acquiring a software technology tailored to small and medium-sized businesses that can be integrated into the current suite of the Company’s products. The preliminary purchase price for the Verb Acquisition was allocated to individual assets acquired and liabilities assumed as follows: May 2, 2023 Fair value of total consideration $ 5,677 Cash acquired (295) Net purchase price $ 5,382 Assets acquired: Accounts receivable $ 144 Other current assets 119 Property and equipment 22 Technology intangible assets 2,680 Other non-current assets 586 Total identifiable assets acquired 3,551 Liabilities assumed: Accounts payable (49) Accrued expenses (96) Deferred revenue (749) Total identifiable liabilities assumed (894) Goodwill 2,725 Fair value of total consideration transferred $ 5,382 The technology intangible assets acquired have a weighted average useful life of 3 years. The fair value of the contingent consideration was measured at the acquisition date based on management’s estimate of future payments and recorded as a liability within other long-term liabilities on the unaudited condensed consolidated balance sheets. Acquisition of Talenya Ltd. On October 27, 2022, the Company acquired 100% of the equity interests of Talenya Ltd., an Israeli-based provider of an artificial intelligence-driven solution for talent sourcing and recruiting employees (the “Talenya Acquisition”), for an initial cash purchase price of $20,000, plus up to a maximum of $10,000 in additional cash payments based on the achievement of established earnouts over a two-year period. The acquisition was funded with cash on hand. The acquisition was accounted for as a business combination. The preliminary purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair value of the total consideration transferred at the date of acquisition. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is deductible for tax purposes. Goodwill consists primarily of the 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 Talenya Acquisition. The benefits include acquiring a software technology tailored to small and medium-sized businesses that can be integrated into the current suite of the Company’s products. The final purchase price for the Talenya Acquisition was allocated to individual assets acquired and liabilities assumed as follows: October 27, 2022 Fair value of total consideration $ 23,240 Cash acquired (172) Net purchase price $ 23,068 Assets acquired: Accounts receivable $ 217 Other current assets 34 Property and equipment 13 Technology intangible assets 6,760 Other non-current assets 2,222 Total identifiable assets acquired 9,246 Liabilities assumed: Accounts payable (211) Accrued expenses (294) Deferred revenue (300) Total identifiable liabilities assumed (805) Goodwill 14,627 Fair value of total consideration transferred $ 23,068 The technology intangible assets acquired have a weighted average useful life of 7 years. The fair value of the contingent consideration was measured at the acquisition date based on management’s estimate of future payments and recorded as a liability within accrued expenses and other current liabilities and other long-term liabilities on the unaudited condensed consolidated balance sheets. The Company incurred transaction costs of $— related to the Talenya Acquisition for both the three months ended March 31, 2024 and 2023 and $— and $1,174 related to the Talenya Acquisition for the nine months ended March 31, 2024 and 2023, respectively. These costs were expensed as incurred in general and administrative expenses within the accompanying unaudited condensed consolidated statements of operations. Asset Acquisitions The Company periodically acquires customer relationships from other HCM providers. The asset purchase agreements usually provide for an initial payment as well as contingent payments to the seller based on revenue generated by the acquired clients over a defined timeframe. Contingent payments made under such agreements for both the three months ended March 31, 2024 and 2023 were $—. Contingent payments made under such agreements for the nine months ended March 31, 2024 and 2023 were $3,596 and $4,259, respectively. The acquired customer relationships are recorded within intangible assets on the unaudited condensed consolidated balance sheets and are being amortized on a straight-line basis over three years. As of March 31, 2024, the weighted average remaining amortization period for these intangible assets was approximately 1.9 years. The contingent payments were recognized when |
FUNDS HELD FOR CLIENTS
FUNDS HELD FOR CLIENTS | 9 Months Ended |
Mar. 31, 2024 | |
Funds Held For Clients [Abstract] | |
FUNDS HELD FOR CLIENTS | FUNDS HELD FOR CLIENTS: Funds held for clients are as follows: March 31, 2024 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 1,099,290 $ — $ — $ 1,099,290 U.S. Treasury and direct obligations of U.S. government agencies 86,707 33 (315) 86,425 Corporate bonds 212,839 214 (1,048) 212,005 Commercial paper 618 — — 618 Other securities 20,042 17 (164) 19,895 $ 1,419,496 $ 264 $ (1,527) $ 1,418,233 June 30, 2023 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 783,813 $ — $ — $ 783,813 U.S. Treasury and direct obligations of U.S. government agencies 72,173 — (776) 71,397 Corporate bonds 172,570 91 (3,049) 169,612 Commercial paper 2,977 — (3) 2,974 Other securities 21,776 2 (418) 21,360 $ 1,053,309 $ 93 $ (4,246) $ 1,049,156 Other securities are primarily comprised of municipal obligations and certificates of deposit. Proceeds from sales and maturities of investment securities for the three months ended March 31, 2024 and 2023 were approximately $74,680 and $45,080, respectively. Proceeds from sales and maturities of investment securities for the nine months ended March 31, 2024 and 2023 were approximately $178,134 and $259,097, respectively. The Company is exposed to interest rate risk as rate volatility will cause fluctuations in the earnings potential of future investments. The Company does not utilize derivative financial instruments to manage interest rate risk. The Company reviews its investments on an ongoing basis to determine if any allowance for credit loss is warranted 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 unrealized losses, to the extent they exist, generally result from changes in interest rates rather than credit risk, and therefore does not believe the related investments need to be assessed to determine whether an allowance for the credit loss is warranted. Additionally, the Company believes it will recover its cost basis in the securities with unrealized losses and has the ability to hold the securities until they recover in value and had no intent to sell them at March 31, 2024. Expected maturities as of March 31, 2024 for client fund assets are as follows: Due within fiscal year 2024 $ 1,110,120 Due within fiscal year 2025 68,232 Due within fiscal year 2026 127,759 Due within fiscal year 2027 80,870 Due within fiscal year 2028 23,368 Thereafter 7,884 Total $ 1,418,233 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
Mar. 31, 2024 | |
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: March 31, June 30, Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 23,135 18,702 Furniture and fixtures 2,248 2,250 Office equipment 2,903 2,880 Leasehold improvements 5,207 4,114 60,928 55,381 Accumulated depreciation and amortization (25,148) (20,808) Property and equipment, net $ 35,780 $ 34,573 |
CAPITALIZED SOFTWARE, NET
CAPITALIZED SOFTWARE, NET | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
CAPITALIZED SOFTWARE, NET | CAPITALIZED SOFTWARE, NET: A summary of the Company’s capitalized software, net is as follows: March 31, June 30, Capitalized software $ 163,976 $ 125,707 Accumulated amortization (98,989) (71,724) Capitalized software, net $ 64,987 $ 53,983 Amortization expense for capitalized software was approximately $9,625 and $7,166 for the three months ended March 31, 2024 and 2023, respectively. Amortization expense for capitalized software was approximately $27,264 and $20,317 for the nine months ended March 31, 2024 and 2023, respectively. The following is a schedule of future amortization expense as of March 31, 2024: 2024 (remaining three months) $ 9,448 2025 31,651 2026 19,695 2027 4,193 $ 64,987 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS: Changes in the carrying amount of goodwill are presented below: Balance at June 30, 2023 $ 767,738 Verb Acquisition (661) Foreign currency translation (338) Balance at March 31, 2024 $ 766,739 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 exclusive naming rights to Paycor Stadium (the “Naming Rights”), home to the Cincinnati Bengals since 2000. Contractual payments under the naming rights agreement (the “Naming Rights Agreement”) began in August 2022 and end in 2038. The Naming Rights have been recorded within intangible assets on the unaudited condensed consolidated balance sheet in an amount equal to the present value of the future contractual cash flows with an offsetting liability for payments to be made in the future. The intangible asset reflects the Naming Rights to the Bengals stadium including co-branding and shared promotion, along with the right for the Company to place its logo on and around the stadium. The discount between the offsetting liability and overall payment obligation is amortized to interest expense over the term of the Naming Rights Agreement using the effective interest method. The intangible asset is being amortized over the life of the Naming Rights Agreement on a straight-line basis through sales and marketing expenses. The liability is included within accrued expenses and other current liabilities and other long-term liabilities on the unaudited condensed consolidated balance sheets. Components of intangible assets were as follows: March 31, June 30, Cost: Technology $ 153,011 $ 151,855 Customer relationships 466,248 462,452 Trade name 105,670 105,670 Naming rights 66,698 66,698 Total cost $ 791,627 $ 786,675 Accumulated amortization: Technology $ (144,057) $ (141,309) Customer relationships (411,523) (348,123) Trade name (38,171) (32,889) Naming rights (7,058) (3,882) Total accumulated amortization $ (600,809) $ (526,203) Intangible assets, net $ 190,818 $ 260,472 Amortization expense for intangible assets was approximately $23,935 and $24,467 for the three months ended March 31, 2024 and 2023, respectively. Amortization expense for intangible assets was approximately $74,608 and $72,410 for the nine months ended March 31, 2024 and 2023, respectively. The following is a schedule of future amortization expense as of March 31, 2024: 2024 (remaining three months) $ 23,028 2025 44,853 2026 17,779 2027 12,420 2028 12,244 Thereafter 80,494 $ 190,818 |
DEBT AGREEMENTS AND LETTERS OF
DEBT AGREEMENTS AND LETTERS OF CREDIT | 9 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT AGREEMENTS AND LETTERS OF CREDIT | DEBT AGREEMENTS AND LETTERS OF CREDIT: Credit Agreement Paycor, Inc. is party to a credit agreement (as amended, the “Credit Agreement”) with PNC Bank, National Association (“PNC”), Fifth Third, National Association, and other lenders, providing a $200,000 senior secured revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility includes an “accordion feature” that allows the Company, under certain circumstances, to increase the size of the Revolving Credit Facility by an additional principal amount of up to $200,000, 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 Credit Agreement. The Revolving Credit Facility will mature on June 11, 2026. The Company had no outstanding borrowings under the Revolving Credit Facility as of March 31, 2024 and June 30, 2023. Additionally, the Company had no outstanding letters of credit as of March 31, 2024 and June 30, 2023. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and June 30, 2023, because of the relatively short maturity of these instruments. The following table presents information on the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and June 30, 2023: March 31, 2024 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 1,099,290 $ — $ — $ 1,099,290 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 86,425 — 86,425 Corporate bonds — 212,005 — 212,005 Commercial paper — 618 — 618 Other securities — 19,895 — 19,895 $ 1,099,290 $ 318,943 $ — $ 1,418,233 June 30, 2023 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 783,813 $ — $ — $ 783,813 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 71,397 — 71,397 Corporate bonds — 169,612 — 169,612 Commercial paper — 2,974 — 2,974 Other securities — 21,360 — 21,360 $ 783,813 $ 265,343 $ — $ 1,049,156 Available-for-sale securities included in Level 1 are valued using closing prices for identical instruments that are traded on active exchanges. Available-for-sale securities included in Level 2 are valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. |
CAPITAL STOCK
CAPITAL STOCK | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK: The Company’s Second Amended and Restated Certificate of Incorporation authorized the issuance of up to 500,000,000 shares of common stock with a par value of $0.001 per share and 50,000,000 shares of preferred stock with a par value of $0.001 per share. As of March 31, 2024 and June 30, 2023, there were 178,030,253 and 176,535,236 shares of common stock outstanding, respectively, and no shares of preferred stock outstanding. On March 6, 2024, our principal stockholder, Pride Aggregator, LP (“Pride Aggregator”), which is the investment vehicle controlled by certain funds advised by Apax Partners LLP, completed a secondary underwritten public offering of 8,000,000 shares of the Company’s common stock. The Company did not receive any proceeds from this sale. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE: Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) adjusted as necessary for the impact of potentially dilutive securities, by the weighted average shares outstanding during the period and the impact of securities that would have a dilutive effect. Potentially dilutive securities during the three and nine months ended March 31, 2024 and 2023 included RSUs, stock options and ESPP purchase rights. Due to the net loss for the nine months ended March 31, 2024 and both the three and nine months ended March 31, 2023, 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 excluded the impact of stock-based compensation awards held by certain employees consisting of membership interest units in Pride Aggregator for both the three and nine months ended March 31, 2024 and 2023. Basic and diluted net loss per share was the same for the nine months ended March 31, 2024 and both the three and nine months ended March 31, 2023, as the inclusion of all potential common shares outstanding in the computation of diluted net loss for each such period would have been anti-dilutive. The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended March 31, Nine Months Ended March 31, (in thousands, except per share data) 2024 2023 2024 2023 Net income (loss) $ 6,193 $ (7,340) $ (40,652) $ (63,855) Weighted average common shares outstanding: Basic and diluted 177,968,744 176,306,017 177,494,795 175,879,962 Basic and diluted net income (loss) per share $ 0.03 $ (0.04) $ (0.23) $ (0.36) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2024 | |
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 unaudited condensed 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 6,193 | $ (7,340) | $ (40,652) | $ (63,855) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidation The accompanying interim unaudited condensed consolidated financial statements of the Company were prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim reporting. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2023 in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on August 28, 2023. The unaudited condensed consolidated financial statements for interim periods do not include all disclosures required by U.S. GAAP for annual financial statements and are not necessarily indicative of results for any future interim periods and the full fiscal year ending June 30, 2024. Adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the unaudited condensed consolidated financial position, results of operations and cash flows at the dates and for the periods presented have been included. All intercompany transactions and balances have been eliminated in consolidation. |
Consolidation | Adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the unaudited condensed consolidated financial position, results of operations and cash flows at the dates and for the periods presented have been included. All intercompany transactions and balances have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the evaluation of potential impairment of goodwill and intangible assets and the valuation of stock-based compensation. |
Accounts receivable, net | Accounts receivable, net |
Sales and marketing | Sales and marketing |
Stock-based compensation | Stock-based compensation The Company recognizes all employee and director stock-based compensation as a cost in the unaudited condensed consolidated financial statements. Equity-classified awards are measured at the grant date fair value of the award and expense is recognized, net of actual forfeitures, on a straight-line basis over the requisite service period for the award. The Company establishes the grant date fair value of restricted stock units (“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. The Company recognized stock-based compensation expense for the three months ended March 31, 2024 and 2023 of $14,849 and $20,384, respectively. The Company recognized stock-based compensation expense for the nine months ended March 31, 2024 and 2023 of $50,813 and $58,019, respectively. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenues | The following table disaggregates revenue from contracts by recurring fees and implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Recurring fees $ 168,105 $ 147,491 $ 440,616 $ 380,426 Implementation services and other 3,868 3,266 11,297 9,482 Recurring and other revenue $ 171,973 $ 150,757 $ 451,913 $ 389,908 The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Balance, beginning of period $ 18,952 $ 17,037 $ 18,697 $ 17,046 Deferred revenue acquired — 7 — 300 Deferral of revenue 6,391 6,279 16,444 16,186 Revenue recognized (5,458) (4,949) (15,252) (15,052) Impact of foreign exchange (23) (4) (27) (110) Balance, end of period $ 19,862 $ 18,370 $ 19,862 $ 18,370 |
Schedule of Capitalized Contract Costs | The following table presents the deferred contract costs balance and related amortization expense for these deferred contract costs. As of and for the Three Months Ended March 31, 2024 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 101,235 $ 10,880 $ (7,111) $ 105,004 Costs to fulfill a contract 139,898 16,271 (9,537) 146,632 Total $ 241,133 $ 27,151 $ (16,648) $ 251,636 As of and for the Three Months Ended March 31, 2023 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 82,423 $ 10,559 $ (5,316) $ 87,666 Costs to fulfill a contract 107,482 15,189 (6,836) 115,835 Total $ 189,905 $ 25,748 $ (12,152) $ 203,501 As of and for the Nine Months Ended March 31, 2024 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 93,317 $ 31,685 $ (19,998) $ 105,004 Costs to fulfill a contract 123,788 49,370 (26,526) 146,632 Total $ 217,105 $ 81,055 $ (46,524) $ 251,636 As of and for the Nine Months Ended March 31, 2023 Beginning Balance Capitalization of Costs Amortization Ending Balance Costs to obtain a contract $ 72,342 $ 29,949 $ (14,625) $ 87,666 Costs to fulfill a contract 91,132 43,324 (18,621) 115,835 Total $ 163,474 $ 73,273 $ (33,246) $ 203,501 |
BUSINESS COMBINATION AND ASSE_2
BUSINESS COMBINATION AND ASSET ACQUISITION (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price for the Verb Acquisition was allocated to individual assets acquired and liabilities assumed as follows: May 2, 2023 Fair value of total consideration $ 5,677 Cash acquired (295) Net purchase price $ 5,382 Assets acquired: Accounts receivable $ 144 Other current assets 119 Property and equipment 22 Technology intangible assets 2,680 Other non-current assets 586 Total identifiable assets acquired 3,551 Liabilities assumed: Accounts payable (49) Accrued expenses (96) Deferred revenue (749) Total identifiable liabilities assumed (894) Goodwill 2,725 Fair value of total consideration transferred $ 5,382 October 27, 2022 Fair value of total consideration $ 23,240 Cash acquired (172) Net purchase price $ 23,068 Assets acquired: Accounts receivable $ 217 Other current assets 34 Property and equipment 13 Technology intangible assets 6,760 Other non-current assets 2,222 Total identifiable assets acquired 9,246 Liabilities assumed: Accounts payable (211) Accrued expenses (294) Deferred revenue (300) Total identifiable liabilities assumed (805) Goodwill 14,627 Fair value of total consideration transferred $ 23,068 |
Schedule of Acquisitions | The preliminary purchase price for the Verb Acquisition was allocated to individual assets acquired and liabilities assumed as follows: May 2, 2023 Fair value of total consideration $ 5,677 Cash acquired (295) Net purchase price $ 5,382 Assets acquired: Accounts receivable $ 144 Other current assets 119 Property and equipment 22 Technology intangible assets 2,680 Other non-current assets 586 Total identifiable assets acquired 3,551 Liabilities assumed: Accounts payable (49) Accrued expenses (96) Deferred revenue (749) Total identifiable liabilities assumed (894) Goodwill 2,725 Fair value of total consideration transferred $ 5,382 October 27, 2022 Fair value of total consideration $ 23,240 Cash acquired (172) Net purchase price $ 23,068 Assets acquired: Accounts receivable $ 217 Other current assets 34 Property and equipment 13 Technology intangible assets 6,760 Other non-current assets 2,222 Total identifiable assets acquired 9,246 Liabilities assumed: Accounts payable (211) Accrued expenses (294) Deferred revenue (300) Total identifiable liabilities assumed (805) Goodwill 14,627 Fair value of total consideration transferred $ 23,068 |
FUNDS HELD FOR CLIENTS (Tables)
FUNDS HELD FOR CLIENTS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Funds Held For Clients [Abstract] | |
Schedule of Investments | Funds held for clients are as follows: March 31, 2024 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 1,099,290 $ — $ — $ 1,099,290 U.S. Treasury and direct obligations of U.S. government agencies 86,707 33 (315) 86,425 Corporate bonds 212,839 214 (1,048) 212,005 Commercial paper 618 — — 618 Other securities 20,042 17 (164) 19,895 $ 1,419,496 $ 264 $ (1,527) $ 1,418,233 June 30, 2023 Amortized Gross Gross Fair Demand deposit accounts and other cash equivalents $ 783,813 $ — $ — $ 783,813 U.S. Treasury and direct obligations of U.S. government agencies 72,173 — (776) 71,397 Corporate bonds 172,570 91 (3,049) 169,612 Commercial paper 2,977 — (3) 2,974 Other securities 21,776 2 (418) 21,360 $ 1,053,309 $ 93 $ (4,246) $ 1,049,156 |
Schedule of Investments Classified by Contractual Maturity Date | Expected maturities as of March 31, 2024 for client fund assets are as follows: Due within fiscal year 2024 $ 1,110,120 Due within fiscal year 2025 68,232 Due within fiscal year 2026 127,759 Due within fiscal year 2027 80,870 Due within fiscal year 2028 23,368 Thereafter 7,884 Total $ 1,418,233 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment at Cost and Accumulated Depreciation | A summary of the Company’s property and equipment, net is as follows: March 31, June 30, Land $ 3,680 $ 3,680 Land improvements 910 910 Building and improvements 22,845 22,845 Computer, equipment and software 23,135 18,702 Furniture and fixtures 2,248 2,250 Office equipment 2,903 2,880 Leasehold improvements 5,207 4,114 60,928 55,381 Accumulated depreciation and amortization (25,148) (20,808) Property and equipment, net $ 35,780 $ 34,573 |
CAPITALIZED SOFTWARE, NET (Tabl
CAPITALIZED SOFTWARE, NET (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Components of Capitalized Software | A summary of the Company’s capitalized software, net is as follows: March 31, June 30, Capitalized software $ 163,976 $ 125,707 Accumulated amortization (98,989) (71,724) Capitalized software, net $ 64,987 $ 53,983 Components of intangible assets were as follows: March 31, June 30, Cost: Technology $ 153,011 $ 151,855 Customer relationships 466,248 462,452 Trade name 105,670 105,670 Naming rights 66,698 66,698 Total cost $ 791,627 $ 786,675 Accumulated amortization: Technology $ (144,057) $ (141,309) Customer relationships (411,523) (348,123) Trade name (38,171) (32,889) Naming rights (7,058) (3,882) Total accumulated amortization $ (600,809) $ (526,203) Intangible assets, net $ 190,818 $ 260,472 |
Schedule of Future Amortization Expense | The following is a schedule of future amortization expense as of March 31, 2024: 2024 (remaining three months) $ 9,448 2025 31,651 2026 19,695 2027 4,193 $ 64,987 The following is a schedule of future amortization expense as of March 31, 2024: 2024 (remaining three months) $ 23,028 2025 44,853 2026 17,779 2027 12,420 2028 12,244 Thereafter 80,494 $ 190,818 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | Changes in the carrying amount of goodwill are presented below: Balance at June 30, 2023 $ 767,738 Verb Acquisition (661) Foreign currency translation (338) Balance at March 31, 2024 $ 766,739 |
Schedule of Components of Intangible Assets | A summary of the Company’s capitalized software, net is as follows: March 31, June 30, Capitalized software $ 163,976 $ 125,707 Accumulated amortization (98,989) (71,724) Capitalized software, net $ 64,987 $ 53,983 Components of intangible assets were as follows: March 31, June 30, Cost: Technology $ 153,011 $ 151,855 Customer relationships 466,248 462,452 Trade name 105,670 105,670 Naming rights 66,698 66,698 Total cost $ 791,627 $ 786,675 Accumulated amortization: Technology $ (144,057) $ (141,309) Customer relationships (411,523) (348,123) Trade name (38,171) (32,889) Naming rights (7,058) (3,882) Total accumulated amortization $ (600,809) $ (526,203) Intangible assets, net $ 190,818 $ 260,472 |
Schedule of Future Amortization Expense | The following is a schedule of future amortization expense as of March 31, 2024: 2024 (remaining three months) $ 9,448 2025 31,651 2026 19,695 2027 4,193 $ 64,987 The following is a schedule of future amortization expense as of March 31, 2024: 2024 (remaining three months) $ 23,028 2025 44,853 2026 17,779 2027 12,420 2028 12,244 Thereafter 80,494 $ 190,818 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and June 30, 2023: March 31, 2024 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 1,099,290 $ — $ — $ 1,099,290 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 86,425 — 86,425 Corporate bonds — 212,005 — 212,005 Commercial paper — 618 — 618 Other securities — 19,895 — 19,895 $ 1,099,290 $ 318,943 $ — $ 1,418,233 June 30, 2023 Level 1 Level 2 Level 3 Total Funds held for clients—cash and cash equivalents: Demand deposit accounts and other cash equivalents $ 783,813 $ — $ — $ 783,813 Funds held for clients—available-for-sale: U.S. Treasury and direct obligations of U.S. government agencies — 71,397 — 71,397 Corporate bonds — 169,612 — 169,612 Commercial paper — 2,974 — 2,974 Other securities — 21,360 — 21,360 $ 783,813 $ 265,343 $ — $ 1,049,156 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended March 31, Nine Months Ended March 31, (in thousands, except per share data) 2024 2023 2024 2023 Net income (loss) $ 6,193 $ (7,340) $ (40,652) $ (63,855) Weighted average common shares outstanding: Basic and diluted 177,968,744 176,306,017 177,494,795 175,879,962 Basic and diluted net income (loss) per share $ 0.03 $ (0.04) $ (0.23) $ (0.36) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | |||||
Accounts receivable, allowance for credit loss | $ 11,880 | $ 11,880 | $ 7,032 | ||
Advertising and promotion expense | 8,459 | $ 8,014 | 24,730 | $ 21,415 | |
Stock-based compensation expense | $ 14,849 | $ 20,384 | $ 50,813 | $ 58,019 |
REVENUE - Contract with Custome
REVENUE - Contract with Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Recurring and other revenue | $ 171,973 | $ 150,757 | $ 451,913 | $ 389,908 |
Recurring fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Recurring and other revenue | 168,105 | 147,491 | 440,616 | 380,426 |
Implementation services and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Recurring and other revenue | $ 3,868 | $ 3,266 | $ 11,297 | $ 9,482 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Thousands | Mar. 31, 2024 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]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period | 3 months |
Revenue, remaining performance obligation, amount | $ 4,192 |
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 | $ 11,822 |
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 | 1 year |
Revenue, remaining performance obligation, amount | $ 3,848 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Implementation services, remaining performance obligation, period |
REVENUE - Deferred Revenue (Det
REVENUE - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Contract with Customer, Liability Activity [Roll Forward] | ||||
Balance, beginning of period | $ 18,952 | $ 17,037 | $ 18,697 | $ 17,046 |
Deferred revenue acquired | 0 | 7 | 0 | 300 |
Deferral of revenue | 6,391 | 6,279 | 16,444 | 16,186 |
Revenue recognized | (5,458) | (4,949) | (15,252) | (15,052) |
Impact of foreign exchange | (23) | (4) | (27) | (110) |
Balance, end of period | $ 19,862 | $ 18,370 | $ 19,862 | $ 18,370 |
REVENUE - Deferred Contract Cos
REVENUE - Deferred Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Capitalized Contract Cost, Activity [Roll Forward] | ||||
Beginning Balance | $ 241,133 | $ 189,905 | $ 217,105 | $ 163,474 |
Capitalization of Costs | 27,151 | 25,748 | 81,055 | 73,273 |
Amortization | (16,648) | (12,152) | (46,524) | (33,246) |
Ending Balance | 251,636 | 203,501 | 251,636 | 203,501 |
Costs to obtain a contract | ||||
Capitalized Contract Cost, Activity [Roll Forward] | ||||
Beginning Balance | 101,235 | 82,423 | 93,317 | 72,342 |
Capitalization of Costs | 10,880 | 10,559 | 31,685 | 29,949 |
Amortization | (7,111) | (5,316) | (19,998) | (14,625) |
Ending Balance | 105,004 | 87,666 | 105,004 | 87,666 |
Costs to fulfill a contract | ||||
Capitalized Contract Cost, Activity [Roll Forward] | ||||
Beginning Balance | 139,898 | 107,482 | 123,788 | 91,132 |
Capitalization of Costs | 16,271 | 15,189 | 49,370 | 43,324 |
Amortization | (9,537) | (6,836) | (26,526) | (18,621) |
Ending Balance | $ 146,632 | $ 115,835 | $ 146,632 | $ 115,835 |
BUSINESS COMBINATION AND ASSE_3
BUSINESS COMBINATION AND ASSET ACQUISITION - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
May 02, 2023 | Oct. 27, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | ||||||
Business acquisition, transaction costs | $ 0 | $ 0 | $ 0 | $ 1,174,000 | ||
Verb | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of business acquired | 100% | |||||
Cash consideration | $ 6,000,000 | |||||
Contingent consideration | 2,000,000 | |||||
Business acquisition, goodwill, expected tax deductible amount | $ 0 | |||||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | |||||
Talenya | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of business acquired | 100% | |||||
Cash consideration | $ 20,000,000 | |||||
Contingent consideration | 10,000,000 | |||||
Business acquisition, goodwill, expected tax deductible amount | $ 0 | |||||
Acquired finite-lived intangible assets, weighted average useful life | 7 years | |||||
Earnouts period | 2 years | |||||
HCM Assets Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | |||||
Asset acquisition, contingent consideration | $ 0 | $ 0 | $ 3,596,000 | $ 4,259,000 | ||
Finite-lived intangible assets, remaining amortization period | 1 year 10 months 24 days | 1 year 10 months 24 days |
BUSINESS COMBINATION AND ASSE_4
BUSINESS COMBINATION AND ASSET ACQUISITION - Preliminary Purchase Price (Details) - USD ($) $ in Thousands | May 02, 2023 | Oct. 27, 2022 | Mar. 31, 2024 | Jun. 30, 2023 |
Liabilities assumed: | ||||
Goodwill | $ 766,739 | $ 767,738 | ||
Verb | ||||
Business Acquisition [Line Items] | ||||
Fair value of total consideration | $ 5,677 | |||
Cash acquired | (295) | |||
Net purchase price | 5,382 | |||
Assets acquired: | ||||
Accounts receivable | 144 | |||
Other current assets | 119 | |||
Property and equipment | 22 | |||
Technology intangible assets | 2,680 | |||
Other non-current assets | 586 | |||
Total identifiable assets acquired | 3,551 | |||
Liabilities assumed: | ||||
Accounts payable | (49) | |||
Accrued expenses | (96) | |||
Deferred revenue | (749) | |||
Total identifiable liabilities assumed | (894) | |||
Goodwill | 2,725 | |||
Fair value of total consideration transferred | $ 5,382 | |||
Talenya | ||||
Business Acquisition [Line Items] | ||||
Fair value of total consideration | $ 23,240 | |||
Cash acquired | (172) | |||
Net purchase price | 23,068 | |||
Assets acquired: | ||||
Accounts receivable | 217 | |||
Other current assets | 34 | |||
Property and equipment | 13 | |||
Technology intangible assets | 6,760 | |||
Other non-current assets | 2,222 | |||
Total identifiable assets acquired | 9,246 | |||
Liabilities assumed: | ||||
Accounts payable | (211) | |||
Accrued expenses | (294) | |||
Deferred revenue | (300) | |||
Total identifiable liabilities assumed | (805) | |||
Goodwill | 14,627 | |||
Fair value of total consideration transferred | $ 23,068 |
FUNDS HELD FOR CLIENTS - Schedu
FUNDS HELD FOR CLIENTS - Schedule of Funds Held for Clients (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Schedule of Investments [Line Items] | |||
Demand deposit accounts and other cash equivalents, Amortized Cost | $ 90,098 | $ 95,233 | $ 82,858 |
Funds held for clients, Amortized Cost | 1,419,496 | 1,053,309 | |
Funds held for clients, Gross Unrealized Gains | 264 | 93 | |
Funds held for clients, Gross Unrealized Losses | (1,527) | (4,246) | |
Funds held for clients | 1,418,233 | 1,049,156 | |
U.S. Treasury and direct obligations of U.S. government agencies | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 86,707 | 72,173 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 33 | 0 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (315) | (776) | |
Debt securities, available-for-sale, Fair Value | 86,425 | 71,397 | |
Corporate bonds | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 212,839 | 172,570 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 214 | 91 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (1,048) | (3,049) | |
Debt securities, available-for-sale, Fair Value | 212,005 | 169,612 | |
Commercial paper | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 618 | 2,977 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 0 | 0 | |
Debt securities, available-for-sale, Gross Unrealized Losses | 0 | (3) | |
Debt securities, available-for-sale, Fair Value | 618 | 2,974 | |
Other securities | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale, Amortized Cost | 20,042 | 21,776 | |
Debt securities, available-for-sale, Gross Unrealized Gains | 17 | 2 | |
Debt securities, available-for-sale, Gross Unrealized Losses | (164) | (418) | |
Debt securities, available-for-sale, Fair Value | 19,895 | 21,360 | |
Demand deposit accounts and other cash equivalents | |||
Schedule of Investments [Line Items] | |||
Demand deposit accounts and other cash equivalents, Amortized Cost | 1,099,290 | 783,813 | |
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 | $ 1,099,290 | $ 783,813 |
FUNDS HELD FOR CLIENTS - Narrat
FUNDS HELD FOR CLIENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Funds Held For Clients [Abstract] | ||||
Proceeds from sales and maturities of investment securities | $ 74,680 | $ 45,080 | $ 178,134 | $ 259,097 |
FUNDS HELD FOR CLIENTS - Sche_2
FUNDS HELD FOR CLIENTS - Schedule of Expected Maturities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Funds Held For Clients [Abstract] | |
Due within fiscal year 2024 | $ 1,110,120 |
Due within fiscal year 2025 | 68,232 |
Due within fiscal year 2026 | 127,759 |
Due within fiscal year 2027 | 80,870 |
Due within fiscal year 2028 | 23,368 |
Thereafter | 7,884 |
Total | $ 1,418,233 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment at Cost and Accumulated Depreciation (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 60,928 | $ 55,381 |
Accumulated depreciation and amortization | (25,148) | (20,808) |
Property and equipment, net | 35,780 | 34,573 |
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 | 23,135 | 18,702 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,248 | 2,250 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,903 | 2,880 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,207 | $ 4,114 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 1,467 | $ 1,175 | $ 4,464 | $ 3,571 |
CAPITALIZED SOFTWARE, NET - Sch
CAPITALIZED SOFTWARE, NET - Schedule of Components of Capitalized Software (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Capitalized software | $ 163,976 | $ 125,707 |
Accumulated amortization | (98,989) | (71,724) |
Capitalized software, net | $ 64,987 | $ 53,983 |
CAPITALIZED SOFTWARE, NET - Nar
CAPITALIZED SOFTWARE, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Capitalized computer software, amortization | $ 9,625 | $ 7,166 | $ 27,264 | $ 20,317 |
CAPITALIZED SOFTWARE, NET - S_2
CAPITALIZED SOFTWARE, NET - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 (remaining three months) | $ 9,448 | |
2025 | 31,651 | |
2026 | 19,695 | |
2027 | 4,193 | |
Capitalized software, net | $ 64,987 | $ 53,983 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Changes in Goodwill (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 767,738 |
Foreign currency translation | (338) |
Goodwill, ending balance | 766,739 |
Verb | |
Goodwill [Roll Forward] | |
Verb Acquisition | $ (661) |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 07, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Partnership agreement | 16 years | ||||
Amortization of intangible assets, excluding software | $ 23,935 | $ 24,467 | $ 74,608 | $ 72,410 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Components of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 791,627 | $ 786,675 |
Accumulated amortization: | (600,809) | (526,203) |
Intangible assets, net | 190,818 | 260,472 |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 153,011 | 151,855 |
Accumulated amortization: | (144,057) | (141,309) |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 466,248 | 462,452 |
Accumulated amortization: | (411,523) | (348,123) |
Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 105,670 | 105,670 |
Accumulated amortization: | (38,171) | (32,889) |
Naming rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 66,698 | 66,698 |
Accumulated amortization: | $ (7,058) | $ (3,882) |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 (remaining three months) | $ 23,028 | |
2025 | 44,853 | |
2026 | 17,779 | |
2027 | 12,420 | |
2028 | 12,244 | |
Thereafter | 80,494 | |
Intangible assets, net | $ 190,818 | $ 260,472 |
DEBT AGREEMENTS AND LETTERS O_2
DEBT AGREEMENTS AND LETTERS OF CREDIT - Narrative (Details) - USD ($) | Mar. 31, 2024 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 0 | $ 0 |
Letters of credit outstanding, amount | 0 | $ 0 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, current borrowing capacity | 200,000,000 | |
Line of credit, maximum increase | 200,000,000 | |
Line of credit, maximum borrowing capacity | $ 400,000,000 |
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 | Mar. 31, 2024 | Jun. 30, 2023 |
U.S. Treasury and direct obligations of U.S. government agencies | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | $ 86,425 | $ 71,397 |
Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 212,005 | 169,612 |
Commercial paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 618 | 2,974 |
Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 19,895 | 21,360 |
Fair Value, Recurring | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 1,418,233 | 1,049,156 |
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 | 86,425 | 71,397 |
Fair Value, Recurring | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 212,005 | 169,612 |
Fair Value, Recurring | Commercial paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 618 | 2,974 |
Fair Value, Recurring | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 19,895 | 21,360 |
Fair Value, Recurring | Level 1 | ||
Funds held for clients—available-for-sale: | ||
Assets, fair value disclosure | 1,099,290 | 783,813 |
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 | 318,943 | 265,343 |
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 | 86,425 | 71,397 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 212,005 | 169,612 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 618 | 2,974 |
Fair Value, Recurring | Level 2 | Other securities | ||
Funds held for clients—available-for-sale: | ||
Debt securities, available-for-sale | 19,895 | 21,360 |
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 | 1,099,290 | 783,813 |
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 | 1,099,290 | 783,813 |
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 | 1,099,290 | 783,813 |
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 |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) - $ / shares | Mar. 06, 2024 | Mar. 31, 2024 | Jun. 30, 2023 |
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) | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Common stock, shares outstanding (in shares) | 178,030,253 | 176,535,236 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Number of shares issued in transaction (in shares) | 8,000,000 | ||
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares outstanding (in shares) | 0 | 0 |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 6,193 | $ (7,340) | $ (40,652) | $ (63,855) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 177,968,744 | 176,306,017 | 177,494,795 | 175,879,962 |
Diluted (in shares) | 177,968,744 | 176,306,017 | 177,494,795 | 175,879,962 |
Basic net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.04) | $ (0.23) | $ (0.36) |
Diluted net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.04) | $ (0.23) | $ (0.36) |