Paylocity Holding (PCTY) 10-K5 Aug 222022 FY Annual reportFinancial data

Company Profile

Cover Page

Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Jun. 30, 2022	Jul. 29, 2022	Dec. 31, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-36348
Entity Registrant Name	PAYLOCITY HOLDING CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4066644
Entity Address, Address Line One	1400 American Lane
Entity Address, City or Town	Schaumburg
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60173
City Area Code	847
Local Phone Number	463-3200
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PCTY
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 9.4
Entity Common Stock, Shares Outstanding		55,277,660
Entity Central Index Key	0001591698
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Filer Category	Large Accelerated Filer

Audit Information

Audit Information	12 Months Ended
Audit Information	Jun. 30, 2022
Audit Information [Abstract]
Auditor name	KPMG LLP
Auditor location	Chicago, IL
Auditor firm ID	185

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 139,756	$ 202,287
Corporate investments	0	4,456
Accounts receivable, net	15,754	6,267
Deferred contract costs	59,501	44,230
Prepaid expenses and other	28,896	15,966
Total current assets before funds held for clients	243,907	273,206
Funds held for clients	3,987,776	1,759,677
Total current assets	4,231,683	2,032,883
Capitalized internal-use software, net	61,985	45,018
Property and equipment, net	62,839	59,835
Operating lease right-of-use assets	49,210	43,984
Intangible assets, net	45,475	13,027
Goodwill	101,949	33,650
Long-term deferred contract costs	229,067	170,663
Long‑term prepaid expenses and other	7,746	4,223
Deferred income tax assets	19,060	11,602
Total assets	4,809,014	2,414,885
Current liabilities:
Accounts payable	8,374	4,230
Accrued expenses	124,384	103,109
Total current liabilities before client fund obligations	132,758	107,339
Client fund obligations	3,987,776	1,759,677
Total current liabilities	4,120,534	1,867,016
Long-term operating lease liabilities	69,119	67,201
Other long-term liabilities	3,681	1,958
Deferred income tax liabilities	2,217	1,780
Total liabilities	4,195,551	1,937,955
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2021 and June 30, 2022	0	0
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2021 and June 30, 2022; 54,594 shares issued and outstanding at June 30, 2021 and 55,190 shares issued and outstanding at June 30, 2022	55	55
Additional paid-in capital	289,843	241,718
Retained earnings	325,868	235,091
Accumulated other comprehensive income (loss)	(2,303)	66
Total stockholders' equity	613,463	476,930
Total liabilities and stockholders’ equity	$ 4,809,014	$ 2,414,885

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2022	Jun. 30, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000	5,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	155,000	155,000
Common stock, shares issued (in shares)	55,190	54,594
Common stock, shares outstanding (in shares)	55,190	54,594

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Revenues:
Recurring and other revenue	$ 847,694	$ 631,725	$ 546,212
Interest income on funds held for clients	4,957	3,902	15,117
Total revenues	852,651	635,627	561,329
Cost of revenues	287,002	219,298	182,010
Gross profit	565,649	416,329	379,319
Operating expenses:
Sales and marketing	214,455	161,808	145,134
Research and development	102,908	76,707	62,766
General and administrative	163,692	119,771	105,248
Total operating expenses	481,055	358,286	313,148
Operating income	84,594	58,043	66,171
Other income (expense)	(997)	(939)	947
Income before income taxes	83,597	57,104	67,118
Income tax expense (benefit)	(7,180)	(13,715)	2,663
Net income	90,777	70,819	64,455
Other comprehensive income (loss), net of tax	(2,369)	(609)	563
Comprehensive income	$ 88,408	$ 70,210	$ 65,018
Net income per share:
Basic (in dollars per share)	$ 1.65	$ 1.30	$ 1.20
Diluted (in dollars per share)	$ 1.61	$ 1.26	$ 1.15
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,036	54,318	53,547
Diluted (in shares)	56,445	56,305	55,807

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Jun. 30, 2019		53,075
Beginning balance at Jun. 30, 2019	$ 307,964	$ 53	$ 207,982	$ 99,817	$ 112
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	49,890		49,890
Stock options exercised (in shares)		270
Stock options exercised	3,079		3,079
Issuance of common stock upon vesting of restricted stock units (in shares)		735
Issuance of common stock upon vesting of restricted stock units		$ 1	(1)
Issuance of common stock under employee stock purchase plan (in shares)		97
Issuance of common stock under employee stock purchase plan	8,901		8,901
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(385)
Net settlement for taxes and/or exercise price related to equity awards	(41,944)		(41,944)
Unrealized gains (losses) on securities, net of tax	563				563
Net income	64,455			64,455
Ending balance (in shares) at Jun. 30, 2020		53,792
Ending balance at Jun. 30, 2020	392,908	$ 54	227,907	164,272	675
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	65,662		65,662
Stock options exercised (in shares)		490
Stock options exercised	3,313		3,313
Issuance of common stock upon vesting of restricted stock units (in shares)		644
Issuance of common stock upon vesting of restricted stock units		$ 1	(1)
Issuance of common stock under employee stock purchase plan (in shares)		104
Issuance of common stock under employee stock purchase plan	12,214		12,214
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(436)
Net settlement for taxes and/or exercise price related to equity awards	(67,377)		(67,377)
Unrealized gains (losses) on securities, net of tax	(609)				(609)
Net income	$ 70,819			70,819
Ending balance (in shares) at Jun. 30, 2021	54,594	54,594
Ending balance at Jun. 30, 2021	$ 476,930	$ 55	241,718	235,091	66
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	103,733		103,733
Stock options exercised (in shares)		217
Stock options exercised	2,226		2,226
Issuance of common stock upon vesting of restricted stock units (in shares)		567
Issuance of common stock under employee stock purchase plan (in shares)		101
Issuance of common stock under employee stock purchase plan	14,103		14,103
Net settlement for taxes and/or exercise price related to equity awards (in shares)		(289)
Net settlement for taxes and/or exercise price related to equity awards	(71,937)		(71,937)
Unrealized gains (losses) on securities, net of tax	(2,369)				(2,369)
Net income	$ 90,777			90,777
Ending balance (in shares) at Jun. 30, 2022	55,190	55,190
Ending balance at Jun. 30, 2022	$ 613,463	$ 55	$ 289,843	$ 325,868	$ (2,303)

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 income	$ 90,777	$ 70,819	$ 64,455
Adjustments to reconcile net income to net cash provided by operating activities
Stock-based compensation expense	96,202	63,052	47,493
Depreciation and amortization expense	50,218	42,972	37,913
Deferred income tax expense (benefit)	(7,180)	(13,642)	2,754
Provision for credit losses	311	316	309
Net accretion of discounts and amortization of premiums on available-for-sale securities	381	347	(1,836)
Amortization of debt issuance costs	185	171	154
Other	318	632	395
Changes in operating assets and liabilities:
Accounts receivable	(7,605)	(1,654)	(732)
Deferred contract costs	(73,263)	(56,850)	(54,944)
Prepaid expenses and other	(14,767)	(4,004)	(196)
Accounts payable	2,553	2,394	(806)
Accrued expenses and other	16,923	20,297	17,696
Net cash provided by operating activities	155,053	124,850	112,655
Cash flows from investing activities:
Purchases of available-for-sale securities and other	(433,962)	0	(400,343)
Proceeds from sales and maturities of available-for-sale securities	116,848	101,467	410,593
Capitalized internal-use software costs	(34,515)	(28,594)	(25,715)
Purchases of property and equipment	(18,069)	(9,461)	(16,578)
Acquisitions of businesses, net of cash acquired	(107,576)	(14,992)	(16,714)
Other investing activities	(2,500)	0	0
Net cash provided by (used in) investing activities	(479,774)	48,420	(48,757)
Cash flows from financing activities:
Net change in client fund obligations	2,228,038	432,373	(67,165)
Borrowings under credit facility	50,000	0	100,000
Repayment of credit facility	(50,000)	(100,000)	0
Proceeds from exercise of stock options	0	146	0
Proceeds from employee stock purchase plan	14,103	12,214	8,901
Taxes paid related to net share settlement of equity awards	(69,761)	(64,191)	(38,943)
Payment of debt issuance costs	(87)	(64)	(701)
Net cash provided by financing activities	2,172,293	280,478	2,092
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents	1,847,572	453,748	65,990
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of year	1,945,881	1,492,133	1,426,143
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of year	3,793,453	1,945,881	1,492,133
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment and internal-use software, accrued but not paid	2,052	581	164
Liabilities assumed for acquisitions	4,581	281	674
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	311	870	438
Cash paid (refunds received) for income taxes	11	(136)	84
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	139,756	202,287	250,851
Funds held for clients' cash and cash equivalents	3,653,697	1,743,594	1,241,282
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$ 3,793,453	$ 1,945,881	$ 1,492,133

Organization and Description of

Organization and Description of Business	12 Months Ended
Organization and Description of Business	Jun. 30, 2022
Organization and Description of Business [Abstract]
Organization and Description of Business	(1) Organization and Description of BusinessPaylocity Holding Corporation (the “Company”) is a cloud-based provider of human capital management and payroll software solutions that deliver a comprehensive platform for the modern workforce. Services are provided in a Software-as-a-Service (“SaaS”) delivery model. The Company’s comprehensive product suite delivers a unified platform that helps businesses attract and retain talent, build culture and connection with their employees, and streamline and automate HR and payroll processes.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) Basis of Presentation, Consolidation, and Use of Estimates The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. (b) Concentrations of Risk The Company regularly maintains cash balances that exceed Federal Depository Insurance Corporation limits. No individual client represents 10% or more of total revenues. For all periods presented, substantially all of total revenues were generated by clients in the United States. (c) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. (d) Funds Held For Clients, Corporate Investments and Client Fund Obligations The Company obtains funds from clients in advance of performing payroll and payroll tax filing services on behalf of those clients. Funds held for clients represent assets that are used solely for the purposes of satisfying the obligations to remit funds relating to payroll and payroll tax filing services. The Company has classified Funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client fund obligations. Funds held for clients is primarily comprised of cash and cash equivalents invested in demand deposit accounts. The Company also invests a portion of its funds held for clients and corporate funds in marketable securities. Marketable securities classified as available-for-sale are recorded at fair value on the Consolidated Balance Sheets. Unrealized gains and losses, net of applicable income taxes, are reported as Other comprehensive income (loss) in the Consolidated Statements of Operations and Comprehensive Income. Interest on marketable securities included in Funds held for clients is reported as Interest income on funds held for clients and interest on Corporate investments is reported as Other income (expense) on the Consolidated Statements of Operations and Comprehensive Income, respectively. The Company evaluates whether a decline in an individual security’s fair value as compared to its amortized cost basis resulted from credit loss or other factors. If the Company determines that an individual security’s unrealized loss results from credit impairment, it compares the present value of cash flows expected to be collected from the impaired security with its amortized cost basis. If the security’s amortized cost basis exceeds the present value of expected cash flows, the Company records credit impairment loss through an allowance for credit loss. The Company did not recognize any credit impairment losses during the years ended June 30, 2020, 2021 or 2022. 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 balance sheets at the time that the Company obtains funds from clients. The client fund obligations represent liabilities that will be repaid within one year of the balance sheet date. (e) Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in Net cash provided by operating activities in the Consolidated Statements of Cash Flows. The Company maintains an allowance for credit losses reflecting expected credit losses in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the Company’s clients’ financial conditions, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Company reviews its allowance for credit losses quarterly. Past due balances over 60 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all commercially reasonable means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. Activity in the allowance for credit losses related to accounts receivable was as follows: Year Ended June 30, 2020 2021 2022 Balance at the beginning of the year $ 473 $ 617 $ 800 Charged to expense 309 316 311 Write-offs (165) (133) (270) Balance at the end of the year $ 617 $ 800 $ 841 (f) Deferred Contract Costs The Company defers certain selling and commission costs that meet the capitalization criteria under ASC 340-40. The Company also capitalizes certain costs to fulfill a contract related to its proprietary products if they are identifiable, generate or enhance resources used to satisfy future performance obligations and are expected to be recovered under ASC 340-40. Implementation fees are treated as nonrefundable upfront fees and the related implementation costs are required to be capitalized and amortized over the expected period of benefit, which is the period in which the Company expects to recover the costs and enhance its ability to satisfy future performance obligations. The Company utilizes the portfolio approach to account for both the cost of obtaining a contract and the cost of fulfilling a contract. These capitalized costs are amortized over the expected period of benefit, which has been determined to be over 7 years based on the Company’s average client life and other qualitative factors, including rate of technological changes. The Company does not incur any additional costs to obtain or fulfill contracts upon renewal. The Company recognizes additional selling and commission costs and fulfillment costs when an existing client purchases additional services. These additional costs only relate to the additional services purchased and do not relate to the renewal of previous services. (g) Capitalized Internal-Use Software The Company capitalizes internal-use software costs when module development begins, it is probable that the project will be completed, and the software will be used as intended. Costs associated with preliminary project stage activities, training, maintenance and all other post implementation stage activities are expensed as incurred. The Company also capitalizes certain costs related to specific upgrades and enhancements when it is probable the expenditures will result in significant additional functionality. The capitalization policy provides for the capitalization of certain payroll costs for employees who are directly associated with developing internal-use software as well as certain external direct costs, such as consulting fees. Capitalized employee costs are limited to the time directly spent on such projects. Capitalized internal-use software costs are amortized on a straight-line basis over the estimated useful lives, generally over a 24 or 36-month period. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. (h) Property and Equipment and Long-Lived Assets Property and equipment are stated at cost. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets, generally three Long-lived assets, such as 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 possible 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 including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. (i) Business Combination The Company accounts for business combinations in accordance with ASC 805, Business Combinations using the acquisition method of accounting. It allocates the purchase price consideration associated with its acquisitions to the fair values of assets acquired and liabilities assumed at their respective acquisition dates, with the excess recorded to goodwill. Estimating the fair values of assets acquired and liabilities assumed requires the use of significant judgments and estimates, which are inherently uncertain and subject to refinement as additional information becomes available. Adjustments to the fair values of assets acquired and liabilities assumed may be recorded during the measurement period, which may be up to one year from the acquisition date, with the corresponding offset to goodwill. The Company engages a valuation specialist to assist in the fair value measurement of assets acquired and liabilities assumed for each acquisition. (j) Intangible Assets, Net of Accumulated Amortization Intangible assets are comprised primarily of acquired client relationships, proprietary technology, trade names and non-solicitation agreements and are reported net of accumulated amortization on the Consolidated Balance Sheets. The Company uses the straight-line method of amortization to amortize client relationships over a five five (k) Goodwill 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. Goodwill is not amortized, but instead is tested for impairment at the reporting unit level. If the fair value of the reporting unit is less than its carrying amount, the Company would record an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss recognized should not exceed the amount of goodwill allocated to the reporting unit. The Company performs its annual impairment review of goodwill in its fiscal fourth quarter or when a triggering event occurs between annual impairment tests. No impairment was recorded in fiscal 2020, 2021 or 2022 as a result of the Company’s qualitative assessments over its single reporting segment. (l) Leases The Company determines if an arrangement is a lease at agreement inception. Operating leases are included in Operating lease right-of-use assets, Accrued expenses, and Long-term operating lease liabilities in the Consolidated Balance Sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating lease right-of-use assets also include any lease payments made at or before the commencement date and are reduced by any lease incentives received. The Company’s lease terms may include options to renew or extend a lease. The Company recognizes amounts in Operating lease right-of-use assets and Operating lease liabilities when it is reasonably certain it will exercise such options. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the expected lease term. The Company’s most significant leases are real estate leases of office space. The remaining operating leases are primarily comprised of leases of printers and other equipment. For all leases, the Company has elected the practical expedient permitted under Topic 842 to combine lease and non-lease components. As a result, non-lease components, such as common area or equipment maintenance charges, are accounted for as a single lease element. The Company does not have any material finance leases. Fixed lease expense payments are recognized on a straight-line basis over the lease term. Variable lease payments vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time, and are often due to changes in an external market rate or the value of an index (e.g. Consumer Price Index). Certain of the Company’s operating lease agreements include variable payments that are passed through by the landlord, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Variable payments are expensed as incurred and included within variable rent expense. The Company’s lease agreements do not contain material residual value guarantees, restrictions, or covenants. (m) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets may be reduced by a valuation allowance to the extent we determine it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company is required to consider all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income among other items, in determining whether a full or partial release of its valuation allowance is required. The Company is also required to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. The Company’s accounting for deferred tax consequences represents the best estimate of those future events. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. When applicable, the Company records interest and penalties as an element of income tax expense. Refer to Note 13 for additional information on income taxes. (n) Revenue Recognition The Company applies Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“Topic 606”). Topic 606 requires revenue to be recognized when an entity transfers control of goods or services to a customer in an amount that reflects the consideration to which a company also expects to be entitled to for those goods or services. To achieve this core principle, the Company recognizes revenue from contracts with customers based on the following five steps: 1) Identify the contract with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to performance obligations in the contract; and 5) Recognize revenue when or as the Company satisfies a performance obligation. The Company derives its revenue from contracts predominantly from recurring and non-recurring service fees. While the majority of its agreements are generally cancellable by the client on 60 days’ notice or less, the Company offers term agreements to its clients, which are generally two years in length. Recurring fees are derived from cloud-based payroll and HCM software solutions as follows: • Payroll processing and related services, including payroll reporting and tax filing services, are delivered on a weekly, biweekly, semi-monthly, or monthly basis depending upon the payroll frequency of the client and on an annual basis if a client selects W-2 preparation and processing services, • Time and attendance reporting services, including time clock rentals, are delivered on a monthly basis, and • HR-related software solutions, including employee management and benefits enrollment and administration, are delivered on a monthly basis. The majority of the Company’s recurring fees are satisfied over time as services are provided. The performance obligations related to payroll services are satisfied upon the processing of the client’s payroll with the fee charged and collected based on a per employee per payroll frequency fee. The performance obligations related to HCM related services are satisfied over time each month with the fee charged and collected based on a per employee per month fee. For subscription-based fees which can include payroll, time and attendance, and other HCM related services, the Company recognizes the applicable recurring fees over time each month with the fee charged and collected based on a per employee per month fee. The Company has certain optional performance obligations that are satisfied at a point in time including the sales of time clocks and W-2 services. Non-recurring service fees consist mainly of nonrefundable implementation fees, which involve setting the client up in, and loading data into, the Company’s cloud-based modules. These implementation activities are considered set-up activities. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract. Implementation fees are deferred and amortized generally over a period up to 24 months. 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 Statements of Operations and Comprehensive Income. Interest income earned on funds held for clients is recognized in Interest income on funds held for clients when earned as the collection, holding and remittance of these funds are components of providing services to clients. (o) Cost of Revenues Cost of revenues consists primarily of costs to provide HCM and payroll solutions relating to the provision of ongoing client support and implementation activities and also includes amortization of capitalized internal-use software and certain acquired intangibles. The Company generally expenses these costs when incurred except for costs related to the implementation of the Company’s proprietary products. These costs are capitalized and amortized over a period of 7 years. (p) Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $1,023, $3,189 and $8,335 for the years ended June 30, 2020, 2021 and 2022, respectively. (q) Stock-Based Compensation The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards, including those under the 2014 Employee Stock Purchase Plan (“ESPP”), are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. For market share units, the Company estimates grant date fair value using a discrete model based on multiple stock price-paths developed through the use of Monte Carlo simulation. For estimated shares purchasable under the ESPP, the Company estimates grant date fair value using the Black-Scholes option-pricing model. The Company may update the assumed forfeiture rates based on historical experience as appropriate. (r) Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. (s) Segment Information The Company’s chief operating decision maker reviews the financial results of the Company in total when evaluating financial performance and for purposes of allocating resources. The Company has thus determined that it operates in a single reporting segment. For fiscal 2022, the Company’s chief operation decision maker was the Company’s Co-Chief Executive Officers. (t) Recently Issued Accounting Standards

Revenue

Revenue	12 Months Ended
Revenue	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue	(3) Revenue The following table disaggregates revenue by Recurring fees and Implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Year Ended June 30, 2020 2021 2022 Recurring fees $ 526,267 $ 609,658 $ 818,137 Implementation services and other 19,945 22,067 29,557 Total revenues from contracts $ 546,212 $ 631,725 $ 847,694 Deferred revenue The timing of revenue recognition for recurring revenue is consistent with the timing of invoicing as they occur simultaneously upon the client payroll-processing period or by month. As such, the Company does not recognize contract assets or liabilities related to recurring revenue. The nonrefundable upfront fees related to implementation services are invoiced with the client’s first payroll period. The Company defers and amortizes these nonrefundable upfront fees generally over a period up to 24 months based on the type of contract. The following table summarizes the changes in deferred revenue (i.e. contract liability) related to these nonrefundable upfront fees as follows: Year Ended June 30, 2021 2022 Balance at beginning of the year $ 8,434 $ 8,734 Deferral of revenue 16,106 25,109 Revenue recognized (15,806) (21,610) Balance at end of the year $ 8,734 $ 12,233 Deferred revenue related to these nonrefundable upfront fees are recorded within Accrued expenses and Other long-term liabilities on the Consolidated Balance Sheets. The Company expects to recognize these deferred revenue balances of $9,926 in fiscal 2023, $2,216 in fiscal 2024, and $91 thereafter. Deferred contract costs The following tables present the deferred contract costs balances and the related amortization expense for these deferred contract costs: Year Ended June 30, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 113,575 $ 60,833 $ (28,690) $ 145,718 Costs to fulfill a contract 44,468 34,574 (9,867) 69,175 Total $ 158,043 $ 95,407 $ (38,557) $ 214,893 Year Ended June 30, 2022 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 145,718 $ 72,572 $ (35,747) $ 182,543 Costs to fulfill a contract 69,175 53,004 (16,154) 106,025 Total $ 214,893 $ 125,576 $ (51,901) $ 288,568 Deferred contract costs are recorded within Deferred contract costs and Long-term deferred contract costs on the Consolidated Balance Sheets. Amortization of deferred contract costs is recorded in Cost of revenues, Sales and marketing, and General and administrative in the Consolidated Statements of Operations and Comprehensive Income. The Company did not record any impairment losses associated with its deferred contract costs during the years ended June 30, 2020, 2021 or 2022. Remaining Performance Obligations

Corporate Investments and Funds

Corporate Investments and Funds Held for Clients	12 Months Ended
Corporate Investments and Funds Held for Clients	Jun. 30, 2022
Corporate Investments and Funds Held for Clients [Abstract]
Corporate Investments and Funds Held for Clients	(4) Corporate Investments and Funds Held for Clients Corporate investments and funds held for clients consisted of the following: June 30, 2021 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 202,287 $ — $ — $ 202,287 Funds held for clients' cash and cash equivalents 1,743,594 — — 1,743,594 Available-for-sale securities: Corporate bonds 13,390 70 — 13,460 Asset-backed securities 7,062 17 — 7,079 Total available-for-sale securities (1) 20,452 87 — 20,539 Total investments $ 1,966,333 $ 87 $ — $ 1,966,420 (1) Included within the fair value of total available-for-sale securities above is $4,456 of Corporate investments and $16,083 of Funds held for clients. June 30, 2022 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 139,756 $ — $ — $ 139,756 Funds held for clients' cash and cash equivalents 3,653,699 — (2) 3,653,697 Available-for-sale securities: Commercial paper 58,166 — (126) 58,040 Corporate bonds 59,568 — (1,715) 57,853 Asset-backed securities 9,843 2 (141) 9,704 Certificates of deposit 31,879 — (43) 31,836 U.S treasury securities 167,566 12 (591) 166,987 U.S. government agency securities 8,000 — (451) 7,549 Other 2,181 — (71) 2,110 Total available-for-sale securities (2) 337,203 14 (3,138) 334,079 Total investments $ 4,130,658 $ 14 $ (3,140) $ 4,127,532 (2) All available-for-sale securities are included in Funds held for clients. Cash and cash equivalents and funds held for clients’ cash and cash equivalents included demand deposit accounts, money market funds, commercial paper and certificates of deposit as of June 30, 2021 and 2022. Classification of investments on the consolidated balance sheets was as follows: June 30, 2021 2022 Cash and cash equivalents $ 202,287 $ 139,756 Corporate investments 4,456 — Funds held for clients 1,759,677 3,987,776 Total investments $ 1,966,420 $ 4,127,532 Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of June 30, 2022 had fair market value as follows: June 30, 2022 Securities in an unrealized loss position for less than 12 months Gross unrealized losses Fair Value Commercial paper $ (126) $ 53,756 Corporate bonds (1,715) 57,853 Asset-backed securities (141) 7,354 Certificates of deposit (43) 27,086 U.S. treasury securities (591) 129,943 U.S. government agency securities (451) 7,549 Other (71) 2,110 Total available-for-sale securities $ (3,138) $ 285,651 There were no available-for sale securities in an unrealized loss position as of June 30, 2021. As a result, no securities had been in an unrealized loss position for more than 12 months as of June 30, 2022. The Company regularly reviews the composition of its portfolio to determine the existence of credit impairment. The Company did not recognize any credit impairment losses during the years ended June 30, 2020, 2021 or 2022. All securities in the Company's portfolio held an A-1 rating or better as of June 30, 2022. The Company did not make any material reclassification adjustments out of Accumulated other comprehensive income for realized gains and losses on the sale of available-for-sale securities during the years ended June 30, 2020, 2021 or 2022. Gross realized gains and losses on the sale of available-for-sale securities were immaterial for the years ended June 30, 2020, 2021 and 2022. Expected maturities of available-for-sale securities at June 30, 2022 were as follows: Amortized Fair One year or less $ 221,801 $ 221,075 One year to two years 63,965 62,926 Two years to three years 49,431 48,244 Three years to five years 2,006 1,834 Total available-for-sale securities $ 337,203 $ 334,079

Fair Value Measurement

Fair Value Measurement	12 Months Ended
Fair Value Measurement	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurement	(5) Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets and liabilities. • Level 2—Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company measures any cash and cash equivalents, accounts receivable, accounts payable and client fund obligations at fair value on a recurring basis using Level 1 inputs. The Company considers the recorded value of these financial assets and liabilities to approximate the fair value of the respective assets and liabilities at June 30, 2021 and 2022 based upon the short-term nature of these assets and liabilities. Marketable securities, consisting of securities classified as available-for-sale as well as certain cash equivalents, are recorded at fair value on a recurring basis using Level 2 inputs obtained from an independent pricing service. Available-for-sale securities include commercial paper, corporate bonds, asset-backed securities, certificates of deposit, U.S. treasury securities, U.S. government agency securities and other. The independent pricing service utilizes a variety of inputs including benchmark yields, broker/dealer quoted prices, reported trades, issuer spreads as well as other available market data. The Company, on a sample basis, validates the pricing from the independent pricing service against another third-party pricing source for reasonableness. The Company has not adjusted any prices obtained by the independent pricing service, as it believes they are appropriately valued. There were no available-for-sale securities classified in Level 3 of the fair value hierarchy at June 30, 2021 or 2022. The fair value level for the Company’s cash and cash equivalents and available-for-sale securities was as follows: June 30, 2021 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 202,287 $ 202,287 $ — $ — Funds held for clients' cash and cash equivalents 1,743,594 1,743,594 — — Available-for-sale securities: Corporate bonds 13,460 — 13,460 — Asset-backed securities 7,079 — 7,079 — Total available-for-sale securities 20,539 — 20,539 — Total investments $ 1,966,420 $ 1,945,881 $ 20,539 $ — June 30, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 139,756 $ 139,756 $ — $ — Funds held for clients' cash and cash equivalents 3,653,697 3,640,427 13,270 — Available-for-sale securities: Commercial paper 58,040 — 58,040 — Corporate bonds 57,853 — 57,853 — Asset-backed securities 9,704 — 9,704 — Certificates of deposit 31,836 — 31,836 — U.S treasury securities 166,987 — 166,987 — U.S. government agency securities 7,549 — 7,549 — Other 2,110 — 2,110 — Total available-for-sale securities 334,079 — 334,079 — Total investments $ 4,127,532 $ 3,780,183 $ 347,349 $ — Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis

Business Combinations

Business Combinations	12 Months Ended
Business Combinations	Jun. 30, 2022
Business Combinations [Abstract]
Business Combinations	(6) Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations. The Company recorded the acquisitions disclosed below using the acquisition method of accounting and recognized assets and liabilities at their fair values as of the date of acquisitions, with the excess recorded to goodwill. On April 3, 2020, the Company acquired all of the shares outstanding of VidGrid, Inc. (“VidGrid”) through a merger for purchase price consideration of $17,256, which was paid in cash upon closing. VidGrid, Inc. is a leading video platform provider that enables peer-to-peer video learning courses, transforming video into two-way communication. This transaction expands the Company’s product functionality around workplace video communication and reaffirms its commitment to stronger employee collaboration, engagement and retention while helping clients prepare for the workplaces of the future. The allocation of the purchase price for VidGrid is approximately $12,065 of goodwill, $2,962 of proprietary technology and other immaterial assets and liabilities. On November 13, 2020, the Company acquired all of the shares outstanding of Samepage Labs Inc. (“Samepage”) through a merger for purchase price consideration of $15,018, which was paid in cash upon closing. Samepage offers digital collaboration tools including task management, file sharing, real-time collaboration and more. This transaction expands the Company’s product functionality in these areas and demonstrates its commitment to building a modern workforce suite of solutions that meet the needs of HR teams and employees. The allocation of the purchase price for Samepage is approximately $11,995 of goodwill, $3,167 of proprietary technology and other immaterial assets and liabilities. On August 31, 2021, the Company entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Blue Marble Payroll, LLC (“Blue Marble”) and its equity holders and acquired all of the issued and outstanding equity interests of Blue Marble for cash consideration of $60,961, subject to customary purchase price adjustments. Blue Marble’s payroll platform enables U.S.-based companies to manage payroll for employees outside the U.S. in line with complex local and country-specific requirements across many countries. This acquisition enables the Company to better serve its clients in managing their international workforces through a unified solution to pay employees, automate processes and stay compliant with regulations in other countries. An entity affiliated with Steven I. Sarowitz, the Chairman of the Board of Directors and the largest shareholder of the Company, was the largest equity holder of Blue Marble. The Board of Directors of the Company appointed the Audit Committee, which is comprised solely of directors who are independent of the management of Blue Marble, the Blue Marble equity holders and the Company, to evaluate, assess and negotiate on its behalf the terms and conditions in the Purchase Agreement. The Audit Committee and the disinterested directors of the Company’s Board of Directors unanimously approved the Purchase Agreement and transactions specified within it. The allocation of the purchase price for Blue Marble was as follows: August 31, 2021 Proprietary technology $ 21,200 Client relationships 3,000 Trade names 1,200 Goodwill 34,776 Other assets acquired 2,659 Liabilities assumed (1,874) Total purchase price $ 60,961 On January 18, 2022, the Company acquired all of the shares outstanding of Cloudsnap, Inc., ("Cloudsnap") through a merger for cash consideration of $50,002, which was paid upon closing. Cloudsnap is a provider of a flexible, low-code solution for integrating disparate business applications. This transaction enables the Company to deliver modern integrations and seamless data sharing between critical systems more efficiently and effectively, while helping to unify and automate business processes across clients' HR, finance, benefits, and other systems. The preliminary allocation of the purchase price for Cloudsnap was as follows: January 18, 2022 Proprietary technology $ 15,800 Goodwill 33,523 Other assets acquired 3,386 Liabilities assumed (2,707) Total purchase price $ 50,002 The fair values of assets acquired and liabilities assumed for Cloudsnap are currently provisional and are subject to change over the measurement period as the Company continues to evaluate and analyze the estimates and assumptions used in the valuation. The measurement period will end no later than one year from the acquisition date. The results from these acquisitions have been included in the Company’s consolidated financial statements since the closing of the acquisitions and are not material to the Company. Pro forma information was not presented because the effects of the acquisitions are not material to the Company’s consolidated financial statements. The goodwill related to these transactions is primarily attributable to the assembled workforce and growth opportunities from the expansion and enhancement of the Company’s product offerings. The goodwill associated with the Blue Marble acquisition is deductible for income tax purposes. The goodwill associated with the VidGrid, Samepage and Cloudsnap acquisitions is not deductible for income tax purposes. Direct costs related to these acquisitions were immaterial and expensed as incurred as Cost of revenues and General and administrative in the Consolidated Statements of Operations and Comprehensive Income.

Capitalized Internal-Use Softwa

Capitalized Internal-Use Software	12 Months Ended
Capitalized Internal-Use Software	Jun. 30, 2022
Research and Development [Abstract]
Capitalized Internal-Use Software	(7) Capitalized Internal-Use Software Capitalized internal-use software and accumulated amortization were as follows: June 30, 2021 2022 Capitalized internal-use software $ 150,922 $ 193,156 Accumulated amortization (105,904) (131,171) Capitalized internal-use software, net $ 45,018 $ 61,985 Amortization of capitalized internal-use software amounted to $19,261, $23,227 and $25,267 for the years ended June 30, 2020, 2021 and 2022, respectively and is included in Cost of revenues.

Property and Equipment

Property and Equipment	12 Months Ended
Property and Equipment	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment	(8) Property and Equipment The major classes of property and equipment were as follows: June 30, 2021 2022 Office equipment $ 5,211 $ 4,365 Computer equipment 45,420 55,495 Furniture and fixtures 13,104 12,791 Software 6,641 8,785 Leasehold improvements 46,814 47,521 Time clocks rented by clients 5,399 6,711 Total 122,589 135,668 Accumulated depreciation (62,754) (72,829) Property and equipment, net $ 59,835 $ 62,839 Depreciation expense amounted to $16,129, $15,905 and $16,199 for the years ended June 30, 2020, 2021 and 2022, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
Goodwill and Intangible Assets	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	(9) Goodwill and Intangible Assets The following table summarizes changes in goodwill during the years presented below: Year Ended June 30, 2021 2022 Balance at beginning of year $ 21,655 $ 33,650 Additions attributable to acquisitions 11,995 68,299 Balance at end of year $ 33,650 $ 101,949 Refer to Note 6 for further details on the acquisitions during the years ended June 30, 2021 and 2022. The Company’s amortizable intangible assets and estimated useful lives were as follows: June 30, Weighted 2021 2022 Proprietary technology $ 6,129 $ 43,129 6.0 Client relationships 19,200 22,200 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 440 1,640 5.0 Total 27,369 68,569 Accumulated amortization (14,342) (23,094) Intangible assets, net $ 13,027 $ 45,475 Amortization expense for acquired intangible assets was $2,523, $3,840 and $8,752 for the years ended June 30, 2020, 2021 and 2022, respectively, and is included in Cost of revenues and General and administrative. Future amortization expense for acquired intangible assets was as follows, as of June 30, 2022: Fiscal 2023 $ 10,948 Fiscal 2024 9,943 Fiscal 2025 8,888 Fiscal 2026 7,269 Fiscal 2027 4,893 Thereafter 3,534 Total $ 45,475

Accrued Expenses

Accrued Expenses	12 Months Ended
Accrued Expenses	Jun. 30, 2022
Payables and Accruals [Abstract]
Accrued Expenses	(10) Accrued Expenses The components of accrued expenses are as follows: June 30, 2021 2022 Accrued payroll and personnel costs $ 73,969 $ 84,897 Operating lease liabilities 7,549 8,399 Deferred revenue 9,442 13,548 Other 12,149 17,540 Total accrued expenses $ 103,109 $ 124,384

Debt

Debt	12 Months Ended
Debt	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt	(11) Debt In July 2019, the Company entered into a five-year revolving credit agreement with PNC Bank, National Association, and other lenders, which is secured by substantially all of the Company’s assets, subject to certain restrictions. The revolving credit agreement provides for a senior secured revolving credit facility (the “credit facility”) under which the Company may borrow up to $250,000, which may be increased to up to $375,000, subject to obtaining additional lender commitments and certain approvals and satisfying other requirements. The credit facility is scheduled to expire in July 2024, and any borrowings outstanding will mature and be payable upon such expiration. In April 2020, the Company borrowed $100,000 under the credit facility, which the Company repaid during the third quarter of fiscal 2021. In January 2022, the Company borrowed $50,000 under the credit facility in connection with its acquisition of Cloudsnap, which it repaid during the third quarter of fiscal 2022. There were no borrowings outstanding under the credit facility at June 30, 2021 or 2022. The Company incurred interest expense related to any borrowings at average interest rates of 1.04% and 1.01% during the years ended June 30, 2021 and 2022, respectively. The proceeds of any borrowings are to be used to fund working capital, capital expenditures and general corporate purposes, including permitted acquisitions, permitted investments, permitted distributions and share repurchases. The Company may generally borrow, prepay and reborrow under the credit facility and terminate or reduce the lenders’ commitments at any time prior to revolving credit facility expiration without a premium or a penalty, other than customary “breakage” costs with respect to London Interbank Offered Rate (“LIBOR”) revolving loans. Any borrowings under the credit facility generally bear interest, at the Company’s option, at a rate per annum determined by reference to either the LIBOR (or a replacement index for the LIBOR rate) or an adjusted base rate, in each case plus an applicable margin ranging from 0.875% to 1.375% and 0.0% to 0.375%, respectively, based on the then-applicable net senior secured leverage ratio. Additionally, the Company is required to pay certain commitment, letter of credit fronting and letter of credit participation fees on available and/or undrawn portions of the credit facility. Under the credit facility, the Company is required to comply with certain customary affirmative and negative covenants, including a requirement to maintain a maximum net total leverage ratio of not greater than 4.00 to 1.00, a maximum net senior secured leverage ratio of not greater than 3.50 to 1.00 and a minimum interest coverage ratio of not less than 3.00 to 1.00. As of June 30, 2022, the Company was in compliance with all of the aforementioned covenants.

Leases

Leases	12 Months Ended
Leases	Jun. 30, 2022
Leases [Abstract]
Leases	(12) Leases The Company primarily leases office space under non-cancellable operating leases expiring on various dates from November 2022 through October 2032. The leases provide for increasing annual base rents and oblige the Company to fund its proportionate share of operating expenses and, in certain cases, real estate taxes. The Company also leases various types of office and production related equipment under non-cancellable operating leases expiring on various dates from July 2022 through January 2027. The components of operating lease expense were as follows: Year Ended June 30, 2020 2021 2022 Operating lease cost $ 9,686 $ 9,139 $ 7,509 Short-term lease cost $ 40 75 345 Variable lease cost $ 3,167 4,796 4,579 Total lease costs $ 12,893 $ 14,010 $ 12,433 The classification of the Company’s operating lease right-of-use assets, operating lease liabilities and other supplemental information related to the Company’s operating leases are as follows: June 30, 2021 2022 Operating lease right-of-use assets $ 43,984 $ 49,210 Accrued expenses $ 7,549 $ 8,399 Long-term operating lease liabilities $ 67,201 $ 69,119 Weighted-average remaining lease term (years) 9.6 8.9 Weighted-average discount rate 3.83 % 3.46 % The following table summarizes supplemental cash flow information related to the Company’s operating leases: Year Ended June 30, 2020 2021 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 10,374 $ 11,093 $ 9,955 Operating lease assets obtained in exchange for new liabilities $ 3,123 $ 1,682 $ 10,084 The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows as of June 30, 2022: Fiscal 2023 $ 10,828 Fiscal 2024 9,657 Fiscal 2025 9,904 Fiscal 2026 9,583 Fiscal 2027 9,402 Thereafter 41,519 Total undiscounted cash flows 90,893 Less: Present value discount (13,375) Total operating lease liabilities $ 77,518 As of June 30, 2022, the Company had not entered into any leases that had not yet commenced.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	(13) Income Taxes (a) Income Taxes Income tax expense (benefit) for the years ended June 30, 2020, 2021 and 2022 consists of the following: Year Ended June 30, 2020 2021 2022 Current taxes U.S. federal $ — $ — $ — State and local (92) (75) (16) Deferred taxes: U.S. federal 403 (10,476) (4,214) State and local 2,352 (3,164) (2,950) Total income tax expense (benefit) $ 2,663 $ (13,715) $ (7,180) (b) Tax Rate Reconciliation Income tax expense (benefit) differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended June 30, 2020, 2021 and 2022 to pretax income as a result of the following: Year Ended June 30, 2020 2021 2022 Income tax expense (benefit) at statutory federal rate 21.0 % 21.0 % 21.0 % Increase (reduction) in income taxes resulting from: Research and development credit and other credits (3.2) (7.1) (5.3) Non-deductible expenses 1.6 1.4 1.5 Change in valuation allowance 5.2 2.8 0.4 Stock-based compensation expense (18.3) (35.0) (21.9) State and local income taxes, net of federal income tax benefit (1.8) (6.7) (4.0) Other (0.5) (0.4) (0.3) 4.0 % (24.0) % (8.6) % The effective tax rate for the years ended June 30, 2020, 2021 and 2022 was 4.0%, (24.0)% and (8.6)%, respectively, on pre-tax income of $67,118, $57,104 and $83,597, respectively. The increase in the effective tax rate is primarily due to decreased deductions related to stock-based compensation and state income tax benefit. (c) Components of Deferred Tax Assets and Liabilities The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2021 and 2022 are presented below. June 30, 2021 2022 Deferred tax assets: Operating lease liabilities $ 19,415 $ 19,979 Accrued expenses 13,559 16,143 Stock-based compensation 15,835 22,857 Net operating loss carryforwards 32,812 45,574 Federal and state tax credits 23,105 30,498 Other 179 1,064 Total deferred tax assets 104,905 136,115 Valuation allowance (5,584) (5,850) Net deferred tax assets 99,321 130,265 Deferred tax liabilities: Deferred contract costs (56,618) (75,028) Operating lease right-of-use assets (11,460) (12,708) Research and development costs (10,664) (13,661) Intangible assets (994) (3,725) Depreciation (9,763) (8,300) Total deferred tax liabilities (89,499) (113,422) Net deferred tax asset (liability) $ 9,822 $ 16,843 As of June 30, 2022, the Company maintains a valuation allowance of $5,850 for certain state tax benefits which may not be realized. Such assessment may change in the future as further evidence becomes available. At June 30, 2022, the Company has gross net operating loss carryforwards for federal income tax purposes of approximately $179,932, of which $37,526 expire between 2034 to 2038. The Company has gross net operating loss carryforwards for state income tax purposes of approximately $138,042, of which $96,702 expire from 2022 to 2041. The remaining $183,746 federal and state net operating loss carryforwards have an indefinite utilization period. The Company also has gross federal and state research and development tax credits and other state credit carryforwards of approximately $32,231, which expire between 2023 and 2042. As of June 30, 2021 and 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: Year Ended June 30, 2021 2022 Unrecognized tax benefits at beginning of the year $ — $ 534 Additions for current year tax positions 84 380 Additions for tax positions of prior periods 450 101 Unrecognized tax benefit at end of year $ 534 $ 1,015 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 net operating loss carryforwards and tax credits unutilized from such years or utilized in a period remaining open for audit under normal statute of limitations relating to income tax liabilities. The Company, including its domestic subsidiaries, files three

Stockholders' Equity

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Jun. 30, 2022
Equity [Abstract]
Stockholders' Equity	(14) Stockholders’ Equity Common Stock Holders of common stock are entitled to one vote per share and to receive dividends, when declared. The holders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares.

Benefit Plans

Benefit Plans	12 Months Ended
Benefit Plans	Jun. 30, 2022
Retirement Benefits [Abstract]
Benefit Plans	(15) Benefit Plans (a) Equity Incentive Plans The Company maintains a 2008 Equity Incentive Plan (the “2008 Plan”) and a 2014 Equity Incentive Plan (the “2014 Plan”) pursuant to which the Company has reserved shares of its common stock for issuance to its employees, directors and non-employee third parties. The 2014 Plan serves as the successor to the 2008 Plan and permits the granting of restricted stock units and other equity incentives at the discretion of the compensation committee of the Company’s board of directors (“the Committee”). No new awards have been or will be issued under the 2008 Plan since the effective date of the 2014 Plan. Outstanding awards under the 2008 Plan continue to be subject to the terms and conditions of the 2008 Plan. The number of shares of common stock reserved for issuance under the 2014 Plan may increase each calendar year, continuing through and including January 1, 2024. The number of shares added each year may be equal to the lesser of (a) four and five tenths percent (4.5%) of the number of shares of common stock of the Company issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Company’s board of directors. The Company’s board of directors approved the increase in the number of common shares in reserve for issuance under the 2014 Plan by 2,400 shares, effective January 1, 2022. As of June 30, 2022, the Company had 14,369 shares allocated to the plans, of which 1,976 shares were subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options or vesting of awards; however, shares previously subject to 2014 Plan grants or awards that are forfeited or net settled at exercise or release may be reissued to satisfy future issuances. The following table summarizes the changes in the number of shares available for grant under the Company’s equity incentive plans during the year ended June 30, 2022: Number of Available for grant at July 1 ,2021 10,312 January 1, 2022 Evergreen provision increase 2,400 RSUs granted (650) MSUs granted (48) Shares withheld in settlement of taxes and/or exercise price 289 Forfeitures 149 Shares removed (59) Available for grant at June 30, 2022 12,393 Shares removed represents forfeitures of shares and shares withheld in settlement of taxes and/or payment of exercise price related to grants made under the 2008 Plan. As noted above, no new awards will be issued under the 2008 Plan. Stock-based compensation expense related to stock options, restricted stock units (“RSUs”), market share units (“MSUs”) and the Employee Stock Purchase Plan (as described below) was included in the following line items in the accompanying Consolidated Statements of Operations and Comprehensive Income: Year Ended June 30, 2020 2021 2022 Cost of revenues $ 5,637 $ 7,687 $ 11,622 Sales and marketing 13,960 15,658 21,854 Research and development 7,182 10,192 18,696 General and administrative 20,714 29,515 44,030 Total stock-based compensation expense $ 47,493 $ 63,052 $ 96,202 In addition, the Company capitalized $2,397, $2,610 and $7,119 of stock-based compensation expense in its capitalized internal-use software costs in the years ended June 30, 2020, 2021 and 2022, respectively. In August 2020, the compensation committee of the Company’s board of directors approved the modification of the performance targets for vesting of the performance-based restricted stock units granted in fiscal 2020. The Company recorded $6,423 and $6,765 in stock-based compensation expense during the years ended June 30, 2021 and 2022, respectively, related to these modified performance-based restricted stock units. In March 2022, Michael Haske announced his intent to resign from his position effective September 1, 2022. In connection with his resignation, the Company’s board of directors approved a Transition and Separation Agreement and a Consulting Services Agreement whereby Mr. Haske will provide consulting services to the Company for a period of one year after the end of his employment on September 1, 2022. Pursuant to these agreements, the compensation committee of the Company's board of directors approved the modifications of certain of Mr. Haske's outstanding RSUs and MSUs to allow the awards to continue to vest after the end of his service period. As a result, the Company will record the cumulative effect of the modifications and accelerate the recognition of the remaining expense associated with certain of Mr. Haske's unmodified outstanding awards over his remaining substantive service period. The modifications of these awards did not have a material impact on the Company’s financial statements. The following table represents stock option activity during the year ended June 30, 2022: Number of Weighted Weighted Aggregate Balance at July 1, 2021 765 $ 16.06 2.4 $ 133,550 Options exercised (217) $ 10.29 Balance at June 30, 2022 548 $ 18.34 1.6 $ 85,515 Options vested and exercisable at June 30, 2022 548 $ 18.34 1.6 $ 85,515 There were no stock options granted during the years ended June 30, 2020, 2021 or 2022. The total intrinsic value of options exercised during the years ended June 30, 2020, 2021 and 2022 was $29,791, $84,072 and $51,457, respectively. The Company may also grant RSUs under the 2014 Plan with terms determined at the discretion of the Committee. RSUs generally vest over three Units Weighted RSU balance at July 1, 2021 1,388 $ 100.33 RSUs granted 650 $ 242.12 RSUs vested (567) $ 85.57 RSUs forfeited (144) $ 163.58 RSU balance at June 30, 2022 1,327 $ 168.44 At June 30, 2022, there was $90,250 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock units granted. That cost is expected to be recognized over a weighted average period of 1.9 years. The Company also grants MSUs under the 2014 Plan with terms determined at the discretion of the Committee. The actual number of MSUs that will be eligible to vest is based on the achievement of a relative total shareholder return (“TSR”) target as compared to the TSR realized by each of the companies comprising the Russell 3000 Index over an approximately three -year period. The MSUs cliff-vest at the end of the TSR measurement period, and up to 200% of the target number of shares subject to each MSU are eligible to be earned. The following table represents market share unit activity during the year ended June 30, 2022: Units Weighted MSU balance at July 1, 2021 58 $ 178.04 MSUs granted 48 $ 361.02 MSUs forfeited (5) $ 178.04 MSU balance at June 30, 2022 101 $ 263.83 The Company estimated the grant date fair value of the MSUs using a Monte Carlo simulation model that included the following assumptions: Year Ended June 30, 2021 2022 Valuation assumptions: Expected dividend yield —% —% Expected volatility 52.0 % 47.4 - 47.5% Expected term (years) 3.04 2.92 - 3.04 Risk‑free interest rate 0.18% 0.43 - 0.47% At June 30, 2022, there was $12,764 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested MSUs. That cost is expected to be recognized over a period of 1.8 years. (b) Employee Stock Purchase Plan Under the Company’s Employee Stock Purchase Plan (“ESPP”), the Company can grant stock purchase rights to all eligible employees during specific offering periods not to exceed twenty-seven months. Each offering period will begin on the trading day closest to May 16 and November 16 of each year. Shares are purchased through employees’ payroll deductions, up to a maximum of 10% of employees’ compensation for each purchase period, at a purchase price equal to 85% of the lesser of the fair market value of the Company’s common stock at the first trading day of the applicable offering period or the purchase date. Participants may purchase up to $25 worth of common stock or 2 shares of common stock in any one year. The ESPP is considered compensatory and results in compensation expense. As of June 30, 2022, a total of 1,493 shares of common stock were reserved for future issuances under the ESPP. The number of shares of common stock reserved for issuance under the ESPP may increase each calendar year, continuing through and including January 1, 2024. The number of shares added each year may be equal to the lesser of (a) 400, (b) seventy-five one hundredths percent (0.75%) of the number of shares of common stock of the Company issued and outstanding on the immediately preceding December 31, or (c) an amount determined by the Company’s board of directors. The Company’s board of directors approved the increase in the number of common shares in reserve for issuance under the ESPP by 400 shares, effective January 1, 2022. The Company issued a total of 101 shares upon the completion of its six-month offering periods ending November 15, 2021 and May 13, 2022. The Company recorded compensation expense attributable to the ESPP of $3,235, $4,570 and $4,676 for the years ended June 30, 2020, 2021 and 2022, respectively, which is included in the summary of stock-based compensation expense above. The grant date fair value of the ESPP offering periods was estimated using the following assumptions: Year Ended June 30, 2020 2021 2022 Valuation assumptions: Expected dividend yield 0 % 0 % 0 % Expected volatility 38.6 - 72.2% 42.2 - 72.2% 31.0 - 57.5% Expected term (years) 0.5 0.5 0.5 Risk‑free interest rate 0.15 - 2.44% 0.04 - 0.15% 0.04 - 1.54% (c) 401(k) Plan The Company maintains a 401(k) plan with a matching provision that covers all eligible employees. The Company matches 50% of employees’ contributions up to 8% of their gross pay. Contributions were $7,914, $2,658 and $12,305 for the years ended June 30, 2020, 2021 and 2022, respectively. In response to the uncertainties presented by the COVID-19 pandemic, the Company temporarily suspended 401(k) plan matching contributions during the first three quarters of fiscal 2021. The Company reinstated contributions during the fourth quarter of fiscal 2021.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(16) Commitments and Contingencies (a) Employment Agreements The Company has employment agreements with certain of its key officers. The agreements allow for annual compensation increases, participation in equity incentive plans and bonuses for annual performance as well as certain change of control events as defined in the agreements. (b) Litigation On July 12, 2019, a former employee filed a class and collective action complaint under federal and state law alleging that certain employees of the Company were misclassified as salaried exempt employees. The complaint sought unpaid overtime and other damages. The Company reached an agreement, without admitting any liability or wrongdoing, to settle this matter. The settlement of this claim did not have a material impact to the Company’s financial position, results of operations, or liquidity. On November 16, 2020, a potential class action complaint was filed against the Company with the Circuit Court of Cook County alleging that the Company violated the Illinois Biometric Information Privacy Act. The complaint seeks statutory damages, attorney’s fees and other costs. The Company is unable to estimate any reasonably possible loss, or range of loss, with respect to this matter at this time. The Company intends to vigorously defend against this lawsuit.

Net Income Per Share

Net Income Per Share	12 Months Ended
Net Income Per Share	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Income Per Share	(17) Net Income Per Share Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares outstanding during the period and, if dilutive, potential common shares outstanding during the period. The Company’s potential common shares consist of the incremental common shares issuable upon the exercise of stock options, the release of restricted stock units and market share units and the shares purchasable via the employee stock purchase plan as of the balance sheet date. The following table presents the calculation of basic and diluted net income per share: Year Ended June 30, 2020 2021 2022 Numerator: Net income $ 64,455 $ 70,819 $ 90,777 Denominator: Weighted-average shares used in computing net income per share: Basic 53,547 54,318 55,036 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units, market share units and employee stock purchase plan shares 2,260 1,987 1,409 Diluted 55,807 56,305 56,445 Net income per share: Basic $ 1.20 $ 1.30 $ 1.65 Diluted $ 1.15 $ 1.26 $ 1.61 The following table summarizes the outstanding restricted stock units, market share units and employee stock purchase plan shares as of the balance sheet date that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: Year Ended June 30, 2020 2021 2022 Market share units — 38 24 Restricted stock units 23 6 70 Total 23 44 94

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation, Consolidation, and Use of Estimates	(a) Basis of Presentation, Consolidation, and Use of Estimates The accompanying consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Concentrations of Risk	(b) Concentrations of Risk
Cash and Cash Equivalents	(c) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.
Funds Held For Clients, Corporate Investments and Client Fund Obligations	(d) Funds Held For Clients, Corporate Investments and Client Fund Obligations The Company obtains funds from clients in advance of performing payroll and payroll tax filing services on behalf of those clients. Funds held for clients represent assets that are used solely for the purposes of satisfying the obligations to remit funds relating to payroll and payroll tax filing services. The Company has classified Funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client fund obligations. Funds held for clients is primarily comprised of cash and cash equivalents invested in demand deposit accounts. The Company also invests a portion of its funds held for clients and corporate funds in marketable securities. Marketable securities classified as available-for-sale are recorded at fair value on the Consolidated Balance Sheets. Unrealized gains and losses, net of applicable income taxes, are reported as Other comprehensive income (loss) in the Consolidated Statements of Operations and Comprehensive Income. Interest on marketable securities included in Funds held for clients is reported as Interest income on funds held for clients and interest on Corporate investments is reported as Other income (expense) on the Consolidated Statements of Operations and Comprehensive Income, respectively. The Company evaluates whether a decline in an individual security’s fair value as compared to its amortized cost basis resulted from credit loss or other factors. If the Company determines that an individual security’s unrealized loss results from credit impairment, it compares the present value of cash flows expected to be collected from the impaired security with its amortized cost basis. If the security’s amortized cost basis exceeds the present value of expected cash flows, the Company records credit impairment loss through an allowance for credit loss. The Company did not recognize any credit impairment losses during the years ended June 30, 2020, 2021 or 2022. 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 balance sheets at the time that the Company obtains funds from clients. The client fund obligations represent liabilities that will be repaid within one year of the balance sheet date.
Accounts Receivable	(e) Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in Net cash provided by operating activities in the Consolidated Statements of Cash Flows. The Company maintains an allowance for credit losses reflecting expected credit losses in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the Company’s clients’ financial conditions, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Company reviews its allowance for credit losses quarterly. Past due balances over 60 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all commercially reasonable means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients.
Deferred Contract Costs	(f) Deferred Contract Costs The Company defers certain selling and commission costs that meet the capitalization criteria under ASC 340-40. The Company also capitalizes certain costs to fulfill a contract related to its proprietary products if they are identifiable, generate or enhance resources used to satisfy future performance obligations and are expected to be recovered under ASC 340-40. Implementation fees are treated as nonrefundable upfront fees and the related implementation costs are required to be capitalized and amortized over the expected period of benefit, which is the period in which the Company expects to recover the costs and enhance its ability to satisfy future performance obligations.
Capitalized Internal-Use Software	(g) Capitalized Internal-Use Software The Company capitalizes internal-use software costs when module development begins, it is probable that the project will be completed, and the software will be used as intended. Costs associated with preliminary project stage activities, training, maintenance and all other post implementation stage activities are expensed as incurred. The Company also capitalizes certain costs related to specific upgrades and enhancements when it is probable the expenditures will result in significant additional functionality. The capitalization policy provides for the capitalization of certain payroll costs for employees who are directly associated with developing internal-use software as well as certain external direct costs, such as consulting fees. Capitalized employee costs are limited to the time directly spent on such projects. Capitalized internal-use software costs are amortized on a straight-line basis over the estimated useful lives, generally over a 24 or 36-month period. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
Property and Equipment and Long-Lived Assets	(h) Property and Equipment and Long-Lived Assets Property and equipment are stated at cost. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets, generally three Long-lived assets, such as 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 possible 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 including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary.
Business Combinations	(i) Business Combination
Intangible Assets, Net of Accumulated Amortization	(j) Intangible Assets, Net of Accumulated Amortization Intangible assets are comprised primarily of acquired client relationships, proprietary technology, trade names and non-solicitation agreements and are reported net of accumulated amortization on the Consolidated Balance Sheets. The Company uses the straight-line method of amortization to amortize client relationships over a five five
Goodwill	(k) Goodwill 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. Goodwill is not amortized, but instead is tested for impairment at the reporting unit level. If the fair value of the reporting unit is less than its carrying amount, the Company would record an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss recognized should not exceed the amount of goodwill allocated to the reporting unit.
Leases	(l) Leases The Company determines if an arrangement is a lease at agreement inception. Operating leases are included in Operating lease right-of-use assets, Accrued expenses, and Long-term operating lease liabilities in the Consolidated Balance Sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating lease right-of-use assets also include any lease payments made at or before the commencement date and are reduced by any lease incentives received. The Company’s lease terms may include options to renew or extend a lease. The Company recognizes amounts in Operating lease right-of-use assets and Operating lease liabilities when it is reasonably certain it will exercise such options. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the expected lease term. The Company’s most significant leases are real estate leases of office space. The remaining operating leases are primarily comprised of leases of printers and other equipment. For all leases, the Company has elected the practical expedient permitted under Topic 842 to combine lease and non-lease components. As a result, non-lease components, such as common area or equipment maintenance charges, are accounted for as a single lease element. The Company does not have any material finance leases. Fixed lease expense payments are recognized on a straight-line basis over the lease term. Variable lease payments vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time, and are often due to changes in an external market rate or the value of an index (e.g. Consumer Price Index). Certain of the Company’s operating lease agreements include variable payments that are passed through by the landlord, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Variable payments are expensed as incurred and included within variable rent expense. The Company’s lease agreements do not contain material residual value guarantees, restrictions, or covenants.
Income Taxes	(m) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets may be reduced by a valuation allowance to the extent we determine it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company is required to consider all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income among other items, in determining whether a full or partial release of its valuation allowance is required. The Company is also required to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance, which further requires the exercise of significant management judgment. The Company’s accounting for deferred tax consequences represents the best estimate of those future events. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. When applicable, the Company records interest and penalties as an element of income tax expense. Refer to Note 13 for additional information on income taxes.
Revenue Recognition	(n) Revenue Recognition The Company applies Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“Topic 606”). Topic 606 requires revenue to be recognized when an entity transfers control of goods or services to a customer in an amount that reflects the consideration to which a company also expects to be entitled to for those goods or services. To achieve this core principle, the Company recognizes revenue from contracts with customers based on the following five steps: 1) Identify the contract with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to performance obligations in the contract; and 5) Recognize revenue when or as the Company satisfies a performance obligation. The Company derives its revenue from contracts predominantly from recurring and non-recurring service fees. While the majority of its agreements are generally cancellable by the client on 60 days’ notice or less, the Company offers term agreements to its clients, which are generally two years in length. Recurring fees are derived from cloud-based payroll and HCM software solutions as follows: • Payroll processing and related services, including payroll reporting and tax filing services, are delivered on a weekly, biweekly, semi-monthly, or monthly basis depending upon the payroll frequency of the client and on an annual basis if a client selects W-2 preparation and processing services, • Time and attendance reporting services, including time clock rentals, are delivered on a monthly basis, and • HR-related software solutions, including employee management and benefits enrollment and administration, are delivered on a monthly basis. The majority of the Company’s recurring fees are satisfied over time as services are provided. The performance obligations related to payroll services are satisfied upon the processing of the client’s payroll with the fee charged and collected based on a per employee per payroll frequency fee. The performance obligations related to HCM related services are satisfied over time each month with the fee charged and collected based on a per employee per month fee. For subscription-based fees which can include payroll, time and attendance, and other HCM related services, the Company recognizes the applicable recurring fees over time each month with the fee charged and collected based on a per employee per month fee. The Company has certain optional performance obligations that are satisfied at a point in time including the sales of time clocks and W-2 services. Non-recurring service fees consist mainly of nonrefundable implementation fees, which involve setting the client up in, and loading data into, the Company’s cloud-based modules. These implementation activities are considered set-up activities. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract. Implementation fees are deferred and amortized generally over a period up to 24 months. 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 Statements of Operations and Comprehensive Income. Interest income earned on funds held for clients is recognized in Interest income on funds held for clients when earned as the collection, holding and remittance of these funds are components of providing services to clients.
Cost of Revenues	(o) Cost of Revenues Cost of revenues consists primarily of costs to provide HCM and payroll solutions relating to the provision of ongoing client support and implementation activities and also includes amortization of capitalized internal-use software and
Advertising	(p) Advertising
Stock-Based Compensation	(q) Stock-Based Compensation
Commitments and Contingencies	(r) Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.
Segment Information	(s) Segment Information
Recently Issued Accounting Standards	(t) Recently Issued Accounting Standards

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
Summary of Significant Accounting Policies (Tables)	Jun. 30, 2022
Accounting Policies [Abstract]
Schedule of activity in the allowance for credit losses related to accounts receivable	Activity in the allowance for credit losses related to accounts receivable was as follows: Year Ended June 30, 2020 2021 2022 Balance at the beginning of the year $ 473 $ 617 $ 800 Charged to expense 309 316 311 Write-offs (165) (133) (270) Balance at the end of the year $ 617 $ 800 $ 841

Revenue (Tables)

Revenue (Tables)	12 Months Ended
Revenue (Tables)	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	The following table disaggregates revenue by Recurring fees and Implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: Year Ended June 30, 2020 2021 2022 Recurring fees $ 526,267 $ 609,658 $ 818,137 Implementation services and other 19,945 22,067 29,557 Total revenues from contracts $ 546,212 $ 631,725 $ 847,694
Schedule of changes in deferred revenue related to nonrefundable upfront fees	The following table summarizes the changes in deferred revenue (i.e. contract liability) related to these nonrefundable upfront fees as follows: Year Ended June 30, 2021 2022 Balance at beginning of the year $ 8,434 $ 8,734 Deferral of revenue 16,106 25,109 Revenue recognized (15,806) (21,610) Balance at end of the year $ 8,734 $ 12,233
Schedule of deferred contract costs and the related amortization expense	The following tables present the deferred contract costs balances and the related amortization expense for these deferred contract costs: Year Ended June 30, 2021 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 113,575 $ 60,833 $ (28,690) $ 145,718 Costs to fulfill a contract 44,468 34,574 (9,867) 69,175 Total $ 158,043 $ 95,407 $ (38,557) $ 214,893 Year Ended June 30, 2022 Beginning Capitalized Amortization Ending Costs to obtain a new contract $ 145,718 $ 72,572 $ (35,747) $ 182,543 Costs to fulfill a contract 69,175 53,004 (16,154) 106,025 Total $ 214,893 $ 125,576 $ (51,901) $ 288,568

Corporate Investments and Fun_2

Corporate Investments and Funds Held For Clients (Tables)	12 Months Ended
Corporate Investments and Funds Held For Clients (Tables)	Jun. 30, 2022
Corporate Investments and Funds Held for Clients [Abstract]
Schedule of corporate investments and funds held for clients	Corporate investments and funds held for clients consisted of the following: June 30, 2021 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 202,287 $ — $ — $ 202,287 Funds held for clients' cash and cash equivalents 1,743,594 — — 1,743,594 Available-for-sale securities: Corporate bonds 13,390 70 — 13,460 Asset-backed securities 7,062 17 — 7,079 Total available-for-sale securities (1) 20,452 87 — 20,539 Total investments $ 1,966,333 $ 87 $ — $ 1,966,420 (1) Included within the fair value of total available-for-sale securities above is $4,456 of Corporate investments and $16,083 of Funds held for clients. June 30, 2022 Type of Issue Amortized Gross Gross Fair value Cash and cash equivalents $ 139,756 $ — $ — $ 139,756 Funds held for clients' cash and cash equivalents 3,653,699 — (2) 3,653,697 Available-for-sale securities: Commercial paper 58,166 — (126) 58,040 Corporate bonds 59,568 — (1,715) 57,853 Asset-backed securities 9,843 2 (141) 9,704 Certificates of deposit 31,879 — (43) 31,836 U.S treasury securities 167,566 12 (591) 166,987 U.S. government agency securities 8,000 — (451) 7,549 Other 2,181 — (71) 2,110 Total available-for-sale securities (2) 337,203 14 (3,138) 334,079 Total investments $ 4,130,658 $ 14 $ (3,140) $ 4,127,532 (2) All available-for-sale securities are included in Funds held for clients.
Schedule of the classification of investments	Classification of investments on the consolidated balance sheets was as follows: June 30, 2021 2022 Cash and cash equivalents $ 202,287 $ 139,756 Corporate investments 4,456 — Funds held for clients 1,759,677 3,987,776 Total investments $ 1,966,420 $ 4,127,532
Schedule of available-for-sale securities that have been in an unrealized loss position for less than 12 months	Available-for-sale securities that have been in an unrealized loss position for a period of less than 12 months as of June 30, 2022 had fair market value as follows: June 30, 2022 Securities in an unrealized loss position for less than 12 months Gross unrealized losses Fair Value Commercial paper $ (126) $ 53,756 Corporate bonds (1,715) 57,853 Asset-backed securities (141) 7,354 Certificates of deposit (43) 27,086 U.S. treasury securities (591) 129,943 U.S. government agency securities (451) 7,549 Other (71) 2,110 Total available-for-sale securities $ (3,138) $ 285,651
Schedule of expected maturities of available-for-sale securities	Expected maturities of available-for-sale securities at June 30, 2022 were as follows: Amortized Fair One year or less $ 221,801 $ 221,075 One year to two years 63,965 62,926 Two years to three years 49,431 48,244 Three years to five years 2,006 1,834 Total available-for-sale securities $ 337,203 $ 334,079

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	12 Months Ended
Fair Value Measurement (Tables)	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of fair value level for cash and cash equivalents and available-for-sale securities measured on a recurring basis	June 30, 2021 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 202,287 $ 202,287 $ — $ — Funds held for clients' cash and cash equivalents 1,743,594 1,743,594 — — Available-for-sale securities: Corporate bonds 13,460 — 13,460 — Asset-backed securities 7,079 — 7,079 — Total available-for-sale securities 20,539 — 20,539 — Total investments $ 1,966,420 $ 1,945,881 $ 20,539 $ — June 30, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 139,756 $ 139,756 $ — $ — Funds held for clients' cash and cash equivalents 3,653,697 3,640,427 13,270 — Available-for-sale securities: Commercial paper 58,040 — 58,040 — Corporate bonds 57,853 — 57,853 — Asset-backed securities 9,704 — 9,704 — Certificates of deposit 31,836 — 31,836 — U.S treasury securities 166,987 — 166,987 — U.S. government agency securities 7,549 — 7,549 — Other 2,110 — 2,110 — Total available-for-sale securities 334,079 — 334,079 — Total investments $ 4,127,532 $ 3,780,183 $ 347,349 $ —

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
Business Combinations (Tables)	Jun. 30, 2022
Business Combinations [Abstract]
Summaries of the allocations of purchase prices	The allocation of the purchase price for Blue Marble was as follows: August 31, 2021 Proprietary technology $ 21,200 Client relationships 3,000 Trade names 1,200 Goodwill 34,776 Other assets acquired 2,659 Liabilities assumed (1,874) Total purchase price $ 60,961 The preliminary allocation of the purchase price for Cloudsnap was as follows: January 18, 2022 Proprietary technology $ 15,800 Goodwill 33,523 Other assets acquired 3,386 Liabilities assumed (2,707) Total purchase price $ 50,002

Capitalized Internal-Use Soft_2

Capitalized Internal-Use Software (Tables)	12 Months Ended
Capitalized Internal-Use Software (Tables)	Jun. 30, 2022
Research and Development [Abstract]
Schedule of capitalized internal-use software and accumulated amortization	Capitalized internal-use software and accumulated amortization were as follows: June 30, 2021 2022 Capitalized internal-use software $ 150,922 $ 193,156 Accumulated amortization (105,904) (131,171) Capitalized internal-use software, net $ 45,018 $ 61,985

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
Property and Equipment (Tables)	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of property and equipment, net	The major classes of property and equipment were as follows: June 30, 2021 2022 Office equipment $ 5,211 $ 4,365 Computer equipment 45,420 55,495 Furniture and fixtures 13,104 12,791 Software 6,641 8,785 Leasehold improvements 46,814 47,521 Time clocks rented by clients 5,399 6,711 Total 122,589 135,668 Accumulated depreciation (62,754) (72,829) Property and equipment, net $ 59,835 $ 62,839

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
Goodwill and Intangible Assets (Tables)	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The following table summarizes changes in goodwill during the years presented below: Year Ended June 30, 2021 2022 Balance at beginning of year $ 21,655 $ 33,650 Additions attributable to acquisitions 11,995 68,299 Balance at end of year $ 33,650 $ 101,949
Schedule of amortizable intangible assets and estimated useful lives	The Company’s amortizable intangible assets and estimated useful lives were as follows: June 30, Weighted 2021 2022 Proprietary technology $ 6,129 $ 43,129 6.0 Client relationships 19,200 22,200 7.8 Non-solicitation agreements 1,600 1,600 3.1 Trade names 440 1,640 5.0 Total 27,369 68,569 Accumulated amortization (14,342) (23,094) Intangible assets, net $ 13,027 $ 45,475
Schedule of future amortization expense for acquired intangible assets	Future amortization expense for acquired intangible assets was as follows, as of June 30, 2022: Fiscal 2023 $ 10,948 Fiscal 2024 9,943 Fiscal 2025 8,888 Fiscal 2026 7,269 Fiscal 2027 4,893 Thereafter 3,534 Total $ 45,475

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
Accrued Expenses (Tables)	Jun. 30, 2022
Payables and Accruals [Abstract]
Schedule of components of accrued expenses	The components of accrued expenses are as follows: June 30, 2021 2022 Accrued payroll and personnel costs $ 73,969 $ 84,897 Operating lease liabilities 7,549 8,399 Deferred revenue 9,442 13,548 Other 12,149 17,540 Total accrued expenses $ 103,109 $ 124,384

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Jun. 30, 2022
Leases [Abstract]
Schedule of components of operating lease expense	The components of operating lease expense were as follows: Year Ended June 30, 2020 2021 2022 Operating lease cost $ 9,686 $ 9,139 $ 7,509 Short-term lease cost $ 40 75 345 Variable lease cost $ 3,167 4,796 4,579 Total lease costs $ 12,893 $ 14,010 $ 12,433
Schedule of the classification of operating lease right-of-use assets, operating lease liabilities and other supplemental information related to operating leases	The classification of the Company’s operating lease right-of-use assets, operating lease liabilities and other supplemental information related to the Company’s operating leases are as follows: June 30, 2021 2022 Operating lease right-of-use assets $ 43,984 $ 49,210 Accrued expenses $ 7,549 $ 8,399 Long-term operating lease liabilities $ 67,201 $ 69,119 Weighted-average remaining lease term (years) 9.6 8.9 Weighted-average discount rate 3.83 % 3.46 %
Schedule of supplemental cash flow information related to operating leases	The following table summarizes supplemental cash flow information related to the Company’s operating leases: Year Ended June 30, 2020 2021 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 10,374 $ 11,093 $ 9,955 Operating lease assets obtained in exchange for new liabilities $ 3,123 $ 1,682 $ 10,084
Schedule of undiscounted cash flows for future maturities of operating lease liabilities and the reconciliation to the balance of operating lease liabilities	The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows as of June 30, 2022: Fiscal 2023 $ 10,828 Fiscal 2024 9,657 Fiscal 2025 9,904 Fiscal 2026 9,583 Fiscal 2027 9,402 Thereafter 41,519 Total undiscounted cash flows 90,893 Less: Present value discount (13,375) Total operating lease liabilities $ 77,518

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	Income tax expense (benefit) for the years ended June 30, 2020, 2021 and 2022 consists of the following: Year Ended June 30, 2020 2021 2022 Current taxes U.S. federal $ — $ — $ — State and local (92) (75) (16) Deferred taxes: U.S. federal 403 (10,476) (4,214) State and local 2,352 (3,164) (2,950) Total income tax expense (benefit) $ 2,663 $ (13,715) $ (7,180)
Schedule of tax rate reconciliation by applying the U.S. federal income tax rate to pretax income	Income tax expense (benefit) differed from the amounts computed by applying the U.S. federal income tax rate of 21% for the years ended June 30, 2020, 2021 and 2022 to pretax income as a result of the following: Year Ended June 30, 2020 2021 2022 Income tax expense (benefit) at statutory federal rate 21.0 % 21.0 % 21.0 % Increase (reduction) in income taxes resulting from: Research and development credit and other credits (3.2) (7.1) (5.3) Non-deductible expenses 1.6 1.4 1.5 Change in valuation allowance 5.2 2.8 0.4 Stock-based compensation expense (18.3) (35.0) (21.9) State and local income taxes, net of federal income tax benefit (1.8) (6.7) (4.0) Other (0.5) (0.4) (0.3) 4.0 % (24.0) % (8.6) %
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2021 and 2022 are presented below. June 30, 2021 2022 Deferred tax assets: Operating lease liabilities $ 19,415 $ 19,979 Accrued expenses 13,559 16,143 Stock-based compensation 15,835 22,857 Net operating loss carryforwards 32,812 45,574 Federal and state tax credits 23,105 30,498 Other 179 1,064 Total deferred tax assets 104,905 136,115 Valuation allowance (5,584) (5,850) Net deferred tax assets 99,321 130,265 Deferred tax liabilities: Deferred contract costs (56,618) (75,028) Operating lease right-of-use assets (11,460) (12,708) Research and development costs (10,664) (13,661) Intangible assets (994) (3,725) Depreciation (9,763) (8,300) Total deferred tax liabilities (89,499) (113,422) Net deferred tax asset (liability) $ 9,822 $ 16,843
Schedule of unrecognized tax benefits	The Company will include applicable penalties and interest when the benefit is recognized: Year Ended June 30, 2021 2022 Unrecognized tax benefits at beginning of the year $ — $ 534 Additions for current year tax positions 84 380 Additions for tax positions of prior periods 450 101 Unrecognized tax benefit at end of year $ 534 $ 1,015

Benefit Plans (Tables)

Benefit Plans (Tables)	12 Months Ended
Benefit Plans (Tables)	Jun. 30, 2022
Retirement Benefits [Abstract]
Schedule of changes in the number of shares available for grant under equity incentive plans	The following table summarizes the changes in the number of shares available for grant under the Company’s equity incentive plans during the year ended June 30, 2022: Number of Available for grant at July 1 ,2021 10,312 January 1, 2022 Evergreen provision increase 2,400 RSUs granted (650) MSUs granted (48) Shares withheld in settlement of taxes and/or exercise price 289 Forfeitures 149 Shares removed (59) Available for grant at June 30, 2022 12,393
Schedule of stock-based compensation expense related to stock options, restricted stock units, market share units and the Employee Stock Purchase Plan	Stock-based compensation expense related to stock options, restricted stock units (“RSUs”), market share units (“MSUs”) and the Employee Stock Purchase Plan (as described below) was included in the following line items in the accompanying Consolidated Statements of Operations and Comprehensive Income: Year Ended June 30, 2020 2021 2022 Cost of revenues $ 5,637 $ 7,687 $ 11,622 Sales and marketing 13,960 15,658 21,854 Research and development 7,182 10,192 18,696 General and administrative 20,714 29,515 44,030 Total stock-based compensation expense $ 47,493 $ 63,052 $ 96,202
Schedule of stock option activity	The following table represents stock option activity during the year ended June 30, 2022: Number of Weighted Weighted Aggregate Balance at July 1, 2021 765 $ 16.06 2.4 $ 133,550 Options exercised (217) $ 10.29 Balance at June 30, 2022 548 $ 18.34 1.6 $ 85,515 Options vested and exercisable at June 30, 2022 548 $ 18.34 1.6 $ 85,515
Schedule of restricted stock unit activity	The following table represents restricted stock unit activity during the year ended June 30, 2022: Units Weighted RSU balance at July 1, 2021 1,388 $ 100.33 RSUs granted 650 $ 242.12 RSUs vested (567) $ 85.57 RSUs forfeited (144) $ 163.58 RSU balance at June 30, 2022 1,327 $ 168.44
Schedule of market share unit activity	The following table represents market share unit activity during the year ended June 30, 2022: Units Weighted MSU balance at July 1, 2021 58 $ 178.04 MSUs granted 48 $ 361.02 MSUs forfeited (5) $ 178.04 MSU balance at June 30, 2022 101 $ 263.83
Summary of the assumptions used for estimating the grant date fair value of MSUs	The Company estimated the grant date fair value of the MSUs using a Monte Carlo simulation model that included the following assumptions: Year Ended June 30, 2021 2022 Valuation assumptions: Expected dividend yield —% —% Expected volatility 52.0 % 47.4 - 47.5% Expected term (years) 3.04 2.92 - 3.04 Risk‑free interest rate 0.18% 0.43 - 0.47%
Schedule of assumptions used for estimating the grant date fair value of the ESPP	The grant date fair value of the ESPP offering periods was estimated using the following assumptions: Year Ended June 30, 2020 2021 2022 Valuation assumptions: Expected dividend yield 0 % 0 % 0 % Expected volatility 38.6 - 72.2% 42.2 - 72.2% 31.0 - 57.5% Expected term (years) 0.5 0.5 0.5 Risk‑free interest rate 0.15 - 2.44% 0.04 - 0.15% 0.04 - 1.54%

Net Income Per Share (Tables)

Net Income Per Share (Tables)	12 Months Ended
Net Income Per Share (Tables)	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule of calculation of basic and diluted net income per share	The following table presents the calculation of basic and diluted net income per share: Year Ended June 30, 2020 2021 2022 Numerator: Net income $ 64,455 $ 70,819 $ 90,777 Denominator: Weighted-average shares used in computing net income per share: Basic 53,547 54,318 55,036 Weighted-average effect of potentially dilutive shares: Employee stock options, restricted stock units, market share units and employee stock purchase plan shares 2,260 1,987 1,409 Diluted 55,807 56,305 56,445 Net income per share: Basic $ 1.20 $ 1.30 $ 1.65 Diluted $ 1.15 $ 1.26 $ 1.61
Summary of anti-dilutive securities	The following table summarizes the outstanding restricted stock units, market share units and employee stock purchase plan shares as of the balance sheet date that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive: Year Ended June 30, 2020 2021 2022 Market share units — 38 24 Restricted stock units 23 6 70 Total 23 44 94

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Current Presentation, Concentration of Risk, Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Funds Held For Clients, Corporate Investments and Client Fund Obligations
Credit impairment losses	$ 0	$ 0	$ 0
Period of repayment of client fund obligations	1 year
Accounts Receivable
Number of days past due before a balance will be reviewed for collectability	60 days
Activity in the allowance for credit losses
Balance at the beginning of the year	$ 800	617	473
Provision for credit losses	311	316	309
Write-offs	(270)	(133)	(165)
Balance at the end of the year	$ 841	$ 800	$ 617

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Deferred Contract Costs (Details)	Jun. 30, 2022
Deferred contract costs
Amortization period of capitalized contract costs	7 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Capitalized Internal-Use Software (Details) - Internal-Use Software	12 Months Ended
	Jun. 30, 2022
Minimum
Capitalized internal-use software
Estimated useful lives	24 months
Maximum
Capitalized internal-use software
Estimated useful lives	36 months

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - PP&E (Details)	12 Months Ended
Summary of Significant Accounting Policies - PP&E (Details)	Jun. 30, 2022
Minimum
Property and Equipment and Long-Lived Assets
Estimated useful lives of the assets	3 years
Maximum
Property and Equipment and Long-Lived Assets
Estimated useful lives of the assets	7 years

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Goodwill
Impairment loss	$ 0	$ 0	$ 0
Trade names
Intangible assets, net of accumulated amortization
Estimated useful lives	5 years
Minimum \| Client relationships
Intangible assets, net of accumulated amortization
Estimated useful lives	5 years
Minimum \| Proprietary technology
Intangible assets, net of accumulated amortization
Estimated useful lives	5 years
Maximum \| Client relationships
Intangible assets, net of accumulated amortization
Estimated useful lives	9 years
Maximum \| Proprietary technology
Intangible assets, net of accumulated amortization
Estimated useful lives	7 years

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Revenue (Details)	12 Months Ended
	Jun. 30, 2022
Revenue from contracts terms
Period of term arrangements	2 years
Cost of revenues
Amortization period of cost of revenues for proprietary products	7 years
Maximum
Revenue from contracts terms
Notice period to cancel agreement	60 days
Deferred and amortized period of implementation fees	24 months

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Advertising (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Advertising
Advertising costs	$ 8,335	$ 3,189	$ 1,023

Revenue - Disaggregation (Detai

Revenue - Disaggregation (Details) - USD ($) $ in Thousands	12 Months Ended
Revenue - Disaggregation (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of revenue
Total revenues from contracts	$ 847,694	$ 631,725	$ 546,212
Recurring fees
Disaggregation of revenue
Total revenues from contracts	818,137	609,658	526,267
Implementation services and other
Disaggregation of revenue
Total revenues from contracts	$ 29,557	$ 22,067	$ 19,945

Revenue - Deferred Revenue (Det

Revenue - Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Changes in deferred revenue related to nonrefundable upfront fees
Balance at beginning of the year	$ 8,734	$ 8,434
Deferral of revenue	25,109	16,106
Revenue recognized	(21,610)	(15,806)
Balance at end of the year	$ 12,233	$ 8,734
Maximum
Revenue
Amortization period of nonrefundable upfront implementation fees	24 months
Implementation services and other
Changes in deferred revenue related to nonrefundable upfront fees
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2023	$ 9,926
Deferred revenue from nonrefundable upfront fees expected to be recognized in fiscal 2024	2,216
Deferred revenue from nonrefundable upfront fees expected to be recognized thereafter	$ 91

Revenue - Deferred Contract Cos

Revenue - Deferred Contract Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Deferred contract costs
Beginning Balance	$ 214,893	$ 158,043
Capitalized Costs	125,576	95,407
Amortization	(51,901)	(38,557)
Ending Balance	288,568	214,893	$ 158,043
Impairment losses	0	0	0
Costs to obtain a new contract
Deferred contract costs
Beginning Balance	145,718	113,575
Capitalized Costs	72,572	60,833
Amortization	(35,747)	(28,690)
Ending Balance	182,543	145,718	113,575
Costs to fulfill a contract
Deferred contract costs
Beginning Balance	69,175	44,468
Capitalized Costs	53,004	34,574
Amortization	(16,154)	(9,867)
Ending Balance	$ 106,025	$ 69,175	$ 44,468

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Remaining Performance Obligations
Minimum value of unsatisfied performance obligations on term-based contracts	$ 51,823
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Remaining Performance Obligations
Remaining performance obligation period	24 months

Corporate Investments and Fun_3

Corporate Investments and Funds Held For Clients - Reconciliation (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Corporate Investments and Funds Held for Clients
Amortized cost of cash and cash equivalents	$ 139,756	$ 202,287
Fair value of cash and cash equivalents	139,756	202,287	$ 250,851
Amortized cost of funds held for clients' cash and cash equivalents	3,653,699	1,743,594
Gross unrealized losses of funds held for clients' cash and cash equivalents	(2)
Fair value of funds held for clients' cash and cash equivalents	3,653,697	1,743,594	$ 1,241,282
Available-for-sale securities
Amortized cost	337,203	20,452
Gross unrealized gains	14	87
Gross unrealized losses	(3,138)	0
Fair value	334,079	20,539
Total investments at amortized cost	4,130,658	1,966,333
Total investments gross unrealized gains	14	87
Total investments gross unrealized losses	(3,140)	0
Total investments	4,127,532	1,966,420
Commercial paper
Available-for-sale securities
Amortized cost	58,166
Gross unrealized gains	0
Gross unrealized losses	(126)
Fair value	58,040
Corporate bonds
Available-for-sale securities
Amortized cost	59,568	13,390
Gross unrealized gains	0	70
Gross unrealized losses	(1,715)	0
Fair value	57,853	13,460
Asset-backed securities
Available-for-sale securities
Amortized cost	9,843	7,062
Gross unrealized gains	2	17
Gross unrealized losses	(141)	0
Fair value	9,704	7,079
Certificates of deposit
Available-for-sale securities
Amortized cost	31,879
Gross unrealized gains	0
Gross unrealized losses	(43)
Fair value	31,836
U.S treasury securities
Available-for-sale securities
Amortized cost	167,566
Gross unrealized gains	12
Gross unrealized losses	(591)
Fair value	166,987
U.S. government agency securities
Available-for-sale securities
Amortized cost	8,000
Gross unrealized gains	0
Gross unrealized losses	(451)
Fair value	7,549
Other
Available-for-sale securities
Amortized cost	2,181
Gross unrealized gains	0
Gross unrealized losses	(71)
Fair value	$ 2,110
Corporate investments
Available-for-sale securities
Fair value		4,456
Funds held for clients
Available-for-sale securities
Fair value		$ 16,083

Corporate Investments and Fun_4

Corporate Investments and Funds Held For Clients - Classification (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Corporate Investments and Funds Held for Clients
Cash and cash equivalents	$ 139,756	$ 202,287	$ 250,851
Corporate investments	0	4,456
Funds held for clients	3,987,776	1,759,677
Total investments	4,127,532	1,966,420
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(3,138)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	285,651
Available-for-sale securities in an unrealized loss position		0
Unrealized losses on available-for-sale securities in continuous unrealized loss positions for greater than 12 months	0
Credit impairment losses	0	0	0
Commercial paper
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(126)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	53,756
Corporate bonds
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(1,715)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	57,853
Asset-backed securities
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(141)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	7,354
Certificates of deposit
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(43)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	27,086
U.S treasury securities
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(591)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	129,943
U.S. government agency securities
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(451)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	7,549
Other
Corporate Investments and Funds Held for Clients
Gross unrealized losses on available-for-sale securities in unrealized loss positions for less than 12 months	(71)
Fair value of available-for-sale securities in unrealized loss positions for less than 12 months	2,110
Reclassification out of Accumulated Other Comprehensive Income
Corporate Investments and Funds Held for Clients
Realized gains or losses	$ 0	$ 0	$ 0

Corporate Investments and Fun_5

Corporate Investments and Funds Held For Clients - Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract]
One year or less	$ 221,801
One year to two years	63,965
Two years to three years	49,431
Three years to five years	2,006
Total available-for-sale securities	337,203	$ 20,452
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]
One year or less	221,075
One year to two years	62,926
Two years to three years	48,244
Three years to five years	1,834
Total available-for-sale securities	$ 334,079	$ 20,539

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Fair value measurement
Cash and cash equivalents	$ 139,756	$ 202,287	$ 250,851
Funds held for clients' cash and cash equivalents	3,653,697	1,743,594	$ 1,241,282
Available-for-sale securities:
Total available-for-sale securities	334,079	20,539
Total investments	4,127,532	1,966,420
Level 3
Available-for-sale securities:
Total available-for-sale securities	0	0
Level 1
Fair value measurement
Cash and cash equivalents	139,756	202,287
Funds held for clients' cash and cash equivalents	3,640,427	1,743,594
Available-for-sale securities:
Total investments	3,780,183	1,945,881
Level 2
Fair value measurement
Cash and cash equivalents	0	0
Funds held for clients' cash and cash equivalents	13,270	0
Available-for-sale securities:
Total available-for-sale securities	334,079	20,539
Total investments	347,349	20,539
Commercial paper
Available-for-sale securities:
Total available-for-sale securities	58,040
Commercial paper \| Level 2
Available-for-sale securities:
Total available-for-sale securities	58,040
Corporate bonds
Available-for-sale securities:
Total available-for-sale securities	57,853	13,460
Corporate bonds \| Level 2
Available-for-sale securities:
Total available-for-sale securities	57,853	13,460
Asset-backed securities
Available-for-sale securities:
Total available-for-sale securities	9,704	7,079
Asset-backed securities \| Level 2
Available-for-sale securities:
Total available-for-sale securities	9,704	$ 7,079
Certificates of deposit
Available-for-sale securities:
Total available-for-sale securities	31,836
Certificates of deposit \| Level 2
Available-for-sale securities:
Total available-for-sale securities	31,836
U.S treasury securities
Available-for-sale securities:
Total available-for-sale securities	166,987
U.S treasury securities \| Level 2
Available-for-sale securities:
Total available-for-sale securities	166,987
U.S. government agency securities
Available-for-sale securities:
Total available-for-sale securities	7,549
U.S. government agency securities \| Level 2
Available-for-sale securities:
Total available-for-sale securities	7,549
Other
Available-for-sale securities:
Total available-for-sale securities	2,110
Other \| Level 2
Available-for-sale securities:
Total available-for-sale securities	$ 2,110

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Jan. 18, 2022	Aug. 31, 2021	Nov. 13, 2020	Apr. 03, 2020	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Business Combinations
Goodwill					$ 101,949	$ 33,650	$ 21,655
Finite-lived intangible assets, gross					68,569	27,369
Proprietary technology
Business Combinations
Finite-lived intangible assets, gross					43,129	6,129
Client relationships
Business Combinations
Finite-lived intangible assets, gross					22,200	19,200
Trade names
Business Combinations
Finite-lived intangible assets, gross					$ 1,640	$ 440
VidGrid, Inc.
Business Combinations
Cash consideration				$ 17,256
Goodwill				12,065
VidGrid, Inc. \| Proprietary technology
Business Combinations
Finite-lived intangible assets, gross				$ 2,962
Samepage Labs Inc
Business Combinations
Cash consideration			$ 15,018
Goodwill			11,995
Samepage Labs Inc \| Proprietary technology
Business Combinations
Finite-lived intangible assets, gross			$ 3,167
Blue Marble Payroll, LLC
Business Combinations
Cash consideration		$ 60,961
Goodwill		34,776
Other assets acquired		2,659
Liabilities assumed		(1,874)
Total purchase price		60,961
Blue Marble Payroll, LLC \| Proprietary technology
Business Combinations
Intangible assets		21,200
Blue Marble Payroll, LLC \| Client relationships
Business Combinations
Intangible assets		3,000
Blue Marble Payroll, LLC \| Trade names
Business Combinations
Intangible assets		$ 1,200
Cloudsnap, Inc
Business Combinations
Cash consideration	$ 50,002
Goodwill	33,523
Other assets acquired	3,386
Liabilities assumed	(2,707)
Total purchase price	50,002
Cloudsnap, Inc \| Proprietary technology
Business Combinations
Intangible assets	$ 15,800

Capitalized Internal-Use Soft_3

Capitalized Internal-Use Software (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Capitalized internal-use software and accumulated amortization
Capitalized internal-use software	$ 193,156	$ 150,922
Accumulated amortization	(131,171)	(105,904)
Capitalized internal-use software, net	61,985	45,018
Cost of revenue
Capitalized internal-use software and accumulated amortization
Amortization of capitalized internal-use software	$ 25,267	$ 23,227	$ 19,261

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Property and equipment
Property and equipment, gross	$ 135,668	$ 122,589
Accumulated depreciation	(72,829)	(62,754)
Property and equipment, net	62,839	59,835
Depreciation expense	16,199	15,905	$ 16,129
Office equipment
Property and equipment
Property and equipment, gross	4,365	5,211
Computer equipment
Property and equipment
Property and equipment, gross	55,495	45,420
Furniture and fixtures
Property and equipment
Property and equipment, gross	12,791	13,104
Software
Property and equipment
Property and equipment, gross	8,785	6,641
Leasehold improvements
Property and equipment
Property and equipment, gross	47,521	46,814
Time clocks rented by clients
Property and equipment
Property and equipment, gross	$ 6,711	$ 5,399

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Changes in Goodwill
Balance at beginning of year	$ 33,650	$ 21,655
Additions attributable to acquisitions	68,299	11,995
Balance at end of year	101,949	33,650	$ 21,655
Amortizable intangible assets
Intangible assets, gross	68,569	27,369
Accumulated amortization	(23,094)	(14,342)
Intangible assets, net	45,475	13,027
Amortization expense for acquired intangible assets	8,752	3,840	$ 2,523
Future amortization expense for acquired intangible assets
Fiscal 2023	10,948
Fiscal 2024	9,943
Fiscal 2025	8,888
Fiscal 2026	7,269
Fiscal 2027	4,893
Thereafter	3,534
Intangible assets, net	45,475	13,027
Proprietary technology
Amortizable intangible assets
Intangible assets, gross	$ 43,129	6,129
Weighted average useful life (years)	6 years
Client relationships
Amortizable intangible assets
Intangible assets, gross	$ 22,200	19,200
Weighted average useful life (years)	7 years 9 months 18 days
Non-solicitation agreements
Amortizable intangible assets
Intangible assets, gross	$ 1,600	1,600
Weighted average useful life (years)	3 years 1 month 6 days
Trade names
Amortizable intangible assets
Intangible assets, gross	$ 1,640	$ 440
Weighted average useful life (years)	5 years

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Components of accrued expenses
Accrued payroll and personnel costs	$ 84,897	$ 73,969
Operating lease liabilities	8,399	7,549
Deferred revenue	13,548	9,442
Other	17,540	12,149
Total accrued expenses	$ 124,384	$ 103,109
Operating lease, liability, current, statement of financial position [Extensible List]	Total accrued expenses	Total accrued expenses

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	1 Months Ended			12 Months Ended
Debt (Details) - USD ($) $ in Thousands	Jan. 31, 2022	Apr. 30, 2020	Jul. 31, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Debt
Borrowed and repaid under credit facility				$ 50,000	$ 0	$ 100,000
Five-year revolving credit agreement \| Senior secured debt
Debt
Term of credit agreement			5 years
Maximum borrowing capacity			$ 250,000
Maximum borrowing capacity, subject to additional lender commitments and satisfaction of other requirements			$ 375,000
Borrowed and repaid under credit facility	$ 50,000	$ 100,000
Average interest rate				1.01%	1.04%
Five-year revolving credit agreement \| Senior secured debt \| Minimum
Debt
Interest coverage ratio			3
Five-year revolving credit agreement \| Senior secured debt \| Maximum
Debt
Net total leverage ratio			4
Senior secured leverage ratio			3.50
Five-year revolving credit agreement \| Senior secured debt \| LIBOR \| Minimum
Debt
Margin on base rate			0.875%
Five-year revolving credit agreement \| Senior secured debt \| LIBOR \| Maximum
Debt
Margin on base rate			1.375%
Five-year revolving credit agreement \| Senior secured debt \| Adjusted base rate \| Minimum
Debt
Margin on base rate			0%
Five-year revolving credit agreement \| Senior secured debt \| Adjusted base rate \| Maximum
Debt
Margin on base rate			0.375%

Leases - Operating Lease Compon

Leases - Operating Lease Components (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Components of operating lease expense:
Operating lease cost	$ 7,509	$ 9,139	$ 9,686
Short-term lease cost	345	75	40
Variable lease cost	4,579	4,796	3,167
Total lease costs	$ 12,433	$ 14,010	$ 12,893

Leases - Operating Lease ROU As

Leases - Operating Lease ROU Assets, Operating Lease Liabilities and Other Supplemental Information (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Operating leases:
Operating lease right-of-use assets	$ 49,210	$ 43,984
Accrued expenses	8,399	7,549
Long-term operating lease liabilities	$ 69,119	$ 67,201
Weighted-average remaining lease term (years)	8 years 10 months 24 days	9 years 7 months 6 days
Weighted-average discount rate	3.46%	3.83%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Operating leases:
Cash paid for amounts included in the measurement of operating lease liabilities	$ 9,955	$ 11,093	$ 10,374
Operating lease assets obtained in exchange for new liabilities	$ 10,084	$ 1,682	$ 3,123

Leases - Future Maturities and

Leases - Future Maturities and Leases That Had Not Yet Commenced (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Undiscounted cash flows for future maturities of operating lease liabilities and the reconciliation to the balance of operating lease liabilities
Fiscal 2023	$ 10,828
Fiscal 2024	9,657
Fiscal 2025	9,904
Fiscal 2026	9,583
Fiscal 2027	9,402
Thereafter	41,519
Total undiscounted cash flows	90,893
Less: Present value discount	(13,375)
Operating lease liabilities	$ 77,518

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Current taxes
U.S. federal	$ 0	$ 0	$ 0
State and local	(16)	(75)	(92)
Deferred taxes:
U.S. federal	(4,214)	(10,476)	403
State and local	(2,950)	(3,164)	2,352
Total income tax expense (benefit)	$ (7,180)	$ (13,715)	$ 2,663
Tax Rate Reconciliation
Income tax expense (benefit) at statutory federal rate	21%	21%	21%
Increase (reduction) in income taxes resulting from:
Research and development credit and other credits	(5.30%)	(7.10%)	(3.20%)
Non-deductible expenses	1.50%	1.40%	1.60%
Change in valuation allowance	0.40%	2.80%	5.20%
Stock-based compensation expense	(21.90%)	(35.00%)	(18.30%)
State and local income taxes, net of federal income tax benefit	(4.00%)	(6.70%)	(1.80%)
Other	(0.30%)	(0.40%)	(0.50%)
Total effective income tax rate	(8.60%)	(24.00%)	4%
Pre-tax income	$ 83,597	$ 57,104	$ 67,118
Deferred tax assets:
Operating lease liabilities	19,979	19,415
Accrued expenses	16,143	13,559
Stock-based compensation	22,857	15,835
Net operating loss carryforwards	45,574	32,812
Federal and state tax credits	30,498	23,105
Other	1,064	179
Total deferred tax assets	136,115	104,905
Valuation allowance	(5,850)	(5,584)
Net deferred tax assets	130,265	99,321
Deferred tax liabilities:
Deferred contract costs	(75,028)	(56,618)
Operating lease right-of-use assets	(12,708)	(11,460)
Research and development costs	(13,661)	(10,664)
Intangible assets	(3,725)	(994)
Depreciation	(8,300)	(9,763)
Total deferred tax liabilities	(113,422)	(89,499)
Net deferred tax asset (liability)	16,843	$ 9,822
State
Deferred tax assets:
Valuation allowance	$ (5,850)

Income Taxes - Carryforwards (D

Income Taxes - Carryforwards (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Unrecognized Tax Benefits
Unrecognized tax benefits at beginning of the year	$ 534	$ 0
Additions for current year tax positions	380	84
Additions for tax positions of prior periods	101	450
Unrecognized tax benefit at end of year	1,015	$ 534
Federal
Operating loss carryforwards
Net operating loss carryforwards	179,932
Net operating loss carryforwards that will expire	$ 37,526
Federal \| Maximum
Operating loss carryforwards
Expiration date for net operating losses	Jun. 30, 2038
Federal \| Minimum
Operating loss carryforwards
Expiration date for net operating losses	Jun. 30, 2034
State
Operating loss carryforwards
Net operating loss carryforwards	$ 138,042
Net operating loss carryforwards that will expire	$ 96,702
State \| Maximum
Operating loss carryforwards
Expiration date for net operating losses	Jun. 30, 2041
Unrecognized Tax Benefits
Statute of limitations on filings	4 years
State \| Minimum
Operating loss carryforwards
Expiration date for net operating losses	Jun. 30, 2022
Unrecognized Tax Benefits
Statute of limitations on filings	3 years
Federal And State
Operating loss carryforwards
Net operating loss carryforwards with indefinite utilization periods	$ 183,746
Research and development and other \| Federal And State
Tax credit carryforwards
Tax credit carryforwards	$ 32,231
Research and development and other \| Federal And State \| Maximum
Tax credit carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2042
Research and development and other \| Federal And State \| Minimum
Tax credit carryforwards
Expiration date for tax credit carryforwards	Jun. 30, 2023

Stockholders' Equity (Details)

Stockholders' Equity (Details)	12 Months Ended
Stockholders' Equity (Details)	Jun. 30, 2022 vote
Common Stock
Stockholders' Equity
Number of common stock vote per share	1

Benefit Plans - General Informa

Benefit Plans - General Information (Details) - shares shares in Thousands		12 Months Ended
	Jan. 01, 2022	Jun. 30, 2022
Equity Incentive Plans
Equity Incentive Plans
Actual increase in number of shares of common stock reserved for issuance (in shares)		2,400
Number of shares of common stock reserved for issuance (in shares)		14,369
Number of shares allocated but not yet issued that are subject to outstanding options or awards		1,976
2008 Plan
Equity Incentive Plans
Awards issued (in shares)		0
Awards issuable (in shares)		0
2014 Plan
Equity Incentive Plans
Potential number of additional shares available for grant each year (as a percent)		4.50%
Actual increase in number of shares of common stock reserved for issuance (in shares)	2,400

Benefit Plans - Incentive Plans

Benefit Plans - Incentive Plans Activity (Details) - Equity Incentive Plans shares in Thousands	12 Months Ended
	Jun. 30, 2022 shares
Shares Available for Grant
Balance at the beginning of the year (in shares)	10,312
January 1, 2022 Evergreen provision increase (in shares)	2,400
RSUs granted (in shares)	(650)
MSUs granted (in shares)	(48)
Net settlement for taxes and/or exercise price (in shares)	289
Forfeitures (in shares)	149
Shares removed (in shares)	(59)
Balance at the end of the year (in shares)	12,393

Benefit Plans - Compensation Ex

Benefit Plans - Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Benefit Plans
Total stock-based compensation expense	$ 96,202	$ 63,052	$ 47,493
Stock-based compensation expense capitalized in internal-use software costs	7,119	2,610	2,397
Cost of revenues
Benefit Plans
Total stock-based compensation expense	11,622	7,687	5,637
Sales and marketing
Benefit Plans
Total stock-based compensation expense	21,854	15,658	13,960
Research and development
Benefit Plans
Total stock-based compensation expense	18,696	10,192	7,182
General and administrative
Benefit Plans
Total stock-based compensation expense	44,030	29,515	$ 20,714
Modified performance-based restricted stock unit awards
Benefit Plans
Total stock-based compensation expense	$ 6,765	$ 6,423

Benefit Plans - Stock Option Ac

Benefit Plans - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Options Outstanding, Number of Shares
Balance at the beginning of the year (in shares)	765
Options exercised (in shares)	(217)
Balance at the end of the year (in shares)	548	765
Options vested and exercisable at the end of the year (in shares)	548
Options Outstanding, Weighted average exercise price
Balance at the beginning of the year (in dollars per share)	$ 16.06
Options exercised (in dollars per share)	10.29
Balance at the end of the year (in dollars per share)	18.34	$ 16.06
Options vested and exercisable at the end of the year, weighted average exercise price (in dollars per share)	$ 18.34
Options Additional Disclosures
Weighted average remaining contractual term (in years)	1 year 7 months 6 days	2 years 4 months 24 days
Weighted average remaining contractual term of options vested and exercisable at the end of the year (years)	1 year 7 months 6 days
Aggregate intrinsic value at the beginning of the year (years)	$ 133,550
Aggregate intrinsic value at the end of the year (years)	85,515	$ 133,550
Options vested and exercisable at the end of the year (years)	$ 85,515
Options granted (in shares)	0	0	0
Total intrinsic value of options exercised	$ 51,457	$ 84,072	$ 29,791

Benefit Plans - RSU Activity (D

Benefit Plans - RSU Activity (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
RSUs Outstanding, Units
Balance at the beginning of the year (in shares) \| shares	1,388
RSUs granted (in shares) \| shares	650
RSUs vested (in shares) \| shares	(567)
RSUs forfeited (in shares) \| shares	(144)
Balance at the end of the year (in shares) \| shares	1,327
RSUs Outstanding, Weighted average grant date fair value
Balance at the beginning of the year (in dollar per shares) \| $ / shares	$ 100.33
RSUs granted (in dollar per shares) \| $ / shares	242.12
RSUs vested (in dollar per shares) \| $ / shares	85.57
RSUs forfeited (in dollar per shares) \| $ / shares	163.58
Balance at the end of the year (in dollar per shares) \| $ / shares	$ 168.44
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested RSUs \| $	$ 90,250
Weighted average period to recognize unrecognized compensation cost	1 year 10 months 24 days
Minimum
Equity Incentive Plans
Vesting period	3 years
Maximum
Equity Incentive Plans
Vesting period	4 years

Benefit Plans - MSU Activity (D

Benefit Plans - MSU Activity (Details) - Market share units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
MSUs Outstanding, Units
Balance at the beginning of the year (in shares)	58
MSUs granted (in shares)	48
MSUs forfeited (in shares)	(5)
Balance at the end of the year (in shares)	101	58
MSUs Outstanding, Weighted average grant date fair value
Balance at the beginning of the year (in dollar per shares)	$ 178.04
MSUs granted (in dollar per shares)	361.02
MSUs forfeited (in dollar per shares)	178.04
Balance at the end of the year (in dollar per shares)	$ 263.83	$ 178.04
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected dividend yield	0%	0%
Expected volatility		52%
Expected term (years)		3 years 14 days
Risk‑free interest rate		0.18%
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized [Abstract]
Total unrecognized compensation cost, net of estimated forfeitures related to unvested MSUs	$ 12,764
Weighted average period to recognize unrecognized compensation cost	1 year 9 months 18 days
Excess income tax benefits
Excess income tax benefits for stock-based compensation arrangements recognized through income tax expense (benefit)	$ 143,046	$ 128,229	$ 67,816
Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility	47.40%
Expected term (years)	2 years 11 months 1 day
Risk‑free interest rate	0.43%
Maximum
Equity Incentive Plans
Percentage of award shares eligible to vest, maximum	200%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility	47.50%
Expected term (years)	3 years 14 days
Risk‑free interest rate	0.47%

Benefit Plans- ESPP Information

Benefit Plans- ESPP Information (Details) - USD ($) shares in Thousands, $ in Thousands		12 Months Ended
	Jan. 01, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Equity Incentive Plans
Stock-based compensation expense		$ 96,202	$ 63,052	$ 47,493
Employee stock purchase plan shares
Equity Incentive Plans
Percentage of employee compensation, maximum		10%
Percentage of fair market value as a purchase price		85%
Maximum value of purchase per employee		$ 25
Number of shares per employee, maximum (in shares)		2
Period during which shares can be purchased		1 year
Number of shares of common stock reserved for issuance (in shares)		1,493
Potential number of additional shares reserved for issuance each year (in shares)		400
Potential number of additional shares reserved for issuance each year (as percent)		0.75%
Increase in the number of shares of common stock reserved for issuance (in shares)	400
Number of shares issued (in shares)		101
Stock-based compensation expense		$ 4,676	$ 4,570	$ 3,235
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected dividend yield		0%	0%	0%
Expected term (years)		6 months	6 months	6 months
Employee stock purchase plan shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility		31%	42.20%	38.60%
Risk‑free interest rate		0.04%	0.04%	0.15%
Employee stock purchase plan shares \| Maximum
Equity Incentive Plans
Offering period		27 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected volatility		57.50%	72.20%	72.20%
Risk‑free interest rate		1.54%	0.15%	2.44%

Benefit Plans - 401(k) Plan (De

Benefit Plans - 401(k) Plan (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2016	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Retirement Benefits [Abstract]
401(k) Plan Matching contributions by the Company as percentage of employees' contributions	50%
401(k) Plan Maximum contributions by the Company as percentage of employees' gross pay	8%
401(k) Plan contributions		$ 12,305	$ 2,658	$ 7,914

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net income	$ 90,777	$ 70,819	$ 64,455
Weighted-average shares used in computing net income per share:
Basic (in shares)	55,036	54,318	53,547
Weighted-average effect of potentially dilutive shares:
Employee stock options, restricted stock units, market share units and employee stock purchase plan shares (in shares)	1,409	1,987	2,260
Diluted (in shares)	56,445	56,305	55,807
Net income per share:
Basic (in dollars per share)	$ 1.65	$ 1.30	$ 1.20
Diluted (in dollars per share)	$ 1.61	$ 1.26	$ 1.15

Net Income Per Share - Summary

Net Income Per Share - Summary of Anti-dilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Anti-dilutive securities excluded from diluted per share calculations
Anti-dilutive securities excluded	94	44	23
Market share units
Anti-dilutive securities excluded from diluted per share calculations
Anti-dilutive securities excluded	24	38	0
Restricted stock units
Anti-dilutive securities excluded from diluted per share calculations
Anti-dilutive securities excluded	70	6	23