0001104659-14-038559 | 10-Q | XBRL Viewer

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2014	May 05, 2014
Document and Entity Information
Entity Registrant Name	Paylocity Holding Corp
Entity Central Index Key	0001591698
Document Type	10-Q
Document Period End Date	Mar. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		49,563,736
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2014	Jun. 30, 2013
Current assets:
Cash and cash equivalents	$ 88,944	$ 7,594
Accounts receivable, net	791	740
Prepaid expenses and other	3,160	1,875
Taxes receivable	131
Deferred income tax assets, net	563	602
Total current assets before funds held for clients	93,589	10,811
Funds held for clients	541,723	355,905
Total current assets	635,312	366,716
Long-term prepaid expenses	344
Capitalized software, net	3,800	2,614
Property and equipment, net	12,142	8,586
Total assets	651,598	377,916
Current liabilities:
Current portion of long-term debt		625
Accounts payable	3,088	880
Taxes payable		207
Accrued expenses	10,572	6,794
Total current liabilities before client fund obligations	13,660	8,506
Client fund obligations	541,723	355,905
Total current liabilities	555,383	364,411
Long-term debt, net of current portion		938
Deferred income tax liabilities, net	172	269
Deferred rent	2,647	2,317
Total liabilities	558,202	367,935
Stockholders' equity (deficit)
Common stock, $0.001 par value, 66,667 authorized, 31,988 shares issued and outstanding as of June 30, 2013 and 155,000 authorized, 49,564 shares issued and outstanding March 31, 2014	50	32
Preferred stock, $0.001 par value, no shares authorized, issued and outstanding as of June 30, 2013 and 5,000 authorized, no shares issued and outstanding as of March 31, 2014
Additional paid-in capital	120,813	437
Accumulated deficit	(27,467)	(27,061)
Total stockholders' equity (deficit)	93,396	(26,592)
Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit)	$ 651,598	377,916
Series A redeemable convertible preferred stock
Redeemable convertible preferred stock, $0.001 par value, 18,000 authorized as of June 30, 2013 and no shares authorized as of March 31, 2014
Redeemable convertible preferred stock		9,339
Series B redeemable convertible preferred stock
Redeemable convertible preferred stock, $0.001 par value, 18,000 authorized as of June 30, 2013 and no shares authorized as of March 31, 2014
Redeemable convertible preferred stock		$ 27,234

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2014	Jun. 30, 2013
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	155,000	66,667
Common Stock, shares issued	49,564	31,988
Common Stock, shares outstanding	49,564	31,988
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	5,000	0
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Redeemable convertible preferred stock
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	0	18,000
Series A redeemable convertible preferred stock
Preferred Stock, cumulative dividend (as a percent)	6.00%	6.00%
Preferred Stock, shares issued	0	9,500
Preferred Stock, shares outstanding	0	9,500
Series B redeemable convertible preferred stock
Preferred Stock, cumulative dividend (as a percent)	8.00%	8.00%
Preferred Stock, shares issued	0	8,400
Preferred Stock, shares outstanding	0	8,400

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Revenues
Recurring fees	$ 30,719	$ 21,824	$ 73,602	$ 52,463
Interest income on funds held for clients	491	447	1,222	1,072
Total recurring revenues	31,210	22,271	74,824	53,535
Implementation services and other	2,556	1,735	5,216	3,497
Total revenues	33,766	24,006	80,040	57,032
Cost of revenues
Recurring revenues	10,246	7,896	27,320	21,190
Implementation services and other	4,679	2,838	12,670	7,600
Total cost of revenues	14,925	10,734	39,990	28,790
Gross profit	18,841	13,272	40,050	28,242
Operating expenses
Sales and marketing	8,678	5,888	19,290	13,714
Research and development	2,443	1,852	6,746	4,906
General and administrative	5,587	2,928	14,726	8,722
Total operating expenses	16,708	10,668	40,762	27,342
Operating income (loss)	2,133	2,604	(712)	900
Other income (expense)	59	(8)	109	(17)
Income (loss) before income taxes	2,192	2,596	(603)	883
Income tax (expense) benefit	(1,042)	(575)	197	106
Net income (loss)	1,150	2,021	(406)	989
Net income (loss) attributable to common stockholders	$ 430	$ 1,294	$ (2,688)	$ (1,192)
Net income (loss) per share attributable to common stockholders, basic and diluted (in dollars per share)	$ 0.01	$ 0.03	$ (0.08)	$ (0.04)
Weighted average number of shares of common stock used in computing net loss per share attributable to common stockholders:
Basic (in shares)	44,360	43,921	32,437	31,988
Diluted (in shares)	44,870	44,407	32,437	31,988

Consolidated Statements of Changes in Stockholders' Equity (Deficit) - 9 months ended Mar. 31, 2014 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balance at Jun. 30, 2013	$ (26,592)	$ 32	$ 437	$ (27,061)
Balance (in shares) at Jun. 30, 2013	31,988	31,988
Increase (Decrease) in Stockholders' Equity
Initial public offering, net of issuance costs	$ 82,001	$ 6	81,995
Initial public offering, net of issuance costs (in shares)		5,367
Conversion of redeemable convertible preferred stock	36,573	$ 12	36,561
Conversion of redeemable convertible preferred stock (in shares)		11,933
Vesting of restricted shares (in shares)		276
Stock compensation expense	1,820		1,820
Net loss	(406)			(406)
Balance at Mar. 31, 2014	$ 93,396	$ 50	$ 120,813	$ (27,467)
Balance (in shares) at Mar. 31, 2014	49,564	49,564

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net income (loss)	$ (406)	$ 989
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	1,714	392
Depreciation and amortization	4,544	4,145
Deferred income tax benefit	(58)	(386)
Provision for doubtful accounts	79	45
Changes in operating assets and liabilities:
Increase in accounts receivable	(130)	(206)
Increase in prepaid expenses	(1,629)	(1,547)
Increase in trade accounts payable	947	203
Increase in accrued expenses	3,016	1,406
Net cash provided by operating activities	8,077	5,041
Cash flows from investing activities:
Capitalized internally developed software costs	(2,919)	(1,115)
Purchases of property and equipment	(4,954)	(2,865)
Net change in funds held for clients	(185,818)	(189,935)
Net cash used in investing activities	(193,691)	(193,915)
Cash flows from financing activities:
Net change in client funds obligation	185,818	189,935
Principal payments on long-term debt	(1,563)	(1,469)
Proceeds from initial public offering, net of issuance costs	82,709
Proceeds from exercise of stock options		76
Payments for redemption of Common Shares		(162)
Net cash provided by financing activities	266,964	188,380
Net Change in Cash and Cash Equivalents	81,350	(494)
Cash and Cash Equivalents-Beginning of Period	7,594	9,031
Cash and Cash Equivalents-End of Period	88,944	8,537
Supplemental disclosure of non-cash investing and financing activities
Build-out allowance received from landlord	580	325
Purchases of property and equipment, accrued but not paid	784	68
Unpaid initial offering costs	678
Supplemental disclosure of cash flow information
Cash paid for income taxes	202	56
Cash paid for interest	$ 70	$ 353

Organization and Description of Business	9 Months Ended
Organization and Description of Business	Mar. 31, 2014
Organization and Description of Business
Organization and Description of Business	(1) Organization and Description of Business Paylocity Holding Corporation (the “Company”) is a cloud-based provider of payroll and human capital management software solutions for medium-sized organizations. Services are provided in a Software-as-a-Service (“SaaS”) delivery model utilizing the Company’s cloud-based platform. Payroll services include collection, remittance and reporting of payroll liabilities to the appropriate federal, state and local authorities. The Company was formed on November 6, 2013 upon which Paylocity Corporation became a wholly-owned subsidiary resulting in the inclusion of Paylocity Corporation in the consolidated financial statements of Paylocity Holding Corporation. All holders of Paylocity Corporation equity instruments at the time were issued Paylocity Holding Corporation equity instruments with identical rights and obligations in exchange for their Paylocity Corporation equity instruments. Upon the completion of these transactions, Paylocity Holding Corporation was the sole stockholder of Paylocity Corporation. In March 2014, the Company amended its Certificate of Incorporation to execute a reverse three for two stock split on its common stock. All share and per share amounts in the Company’s unaudited consolidated financial statements and notes to the financial statement reflect the impact of this change on the number of shares authorized, issued, and outstanding and earnings per share. Initial Public Offering In March 2014, the Company completed its initial public offering (“IPO”) in which it issued and sold 5,367 shares of common stock and existing shareholders sold 2,735 shares of common stock at a public offering price of $17 per share. The Company did not receive any proceeds from the sale of common stock by the existing shareholders. The Company received net proceeds of $82,001 after deducting underwriting discounts and commissions of $6,387 and other offering expenses of $2,851. Upon the closing of the IPO, all shares of the Company’s then-outstanding redeemable convertible preferred stock automatically converted into 11,933 shares of its $0.001 par value common stock. In March 2014, after the conversion of the Company’s then-outstanding redeemable convertible preferred stock into common stock, the Company amended its Certificate of Incorporation to increase the number of authorized common stock to 155,000 and reduce the number of authorized preferred stock to 5,000.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2014
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) *Principles of Consolidation* These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. (b) *Interim Unaudited Consolidated Financial Information* The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity (deficit) and cash flows. The results of operations for the three and nine-month periods ended March 31, 2014 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2013 included in the Company’s final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the SEC on March 19, 2014. (c) *Use of Estimates* The preparation of consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include (1) allowance for doubtful accounts; (2) software developed for internal use; (3) impairment of property and equipment; (4) stock-based compensation; (5) evaluation of net deferred income tax assets and (6) the best estimate of selling price for revenue recognition purposes. These estimates are based on the Company’s knowledge of current events and actions it may undertake in the future as well as on various other assumptions that it believes to be reasonable. Actual results could differ from those estimates. (d) *Income Taxes* Differences in the normal relationship between the income tax (expense) benefit and pre-tax income (loss) result from federal and state research and development credits and expenses not deductible for income tax reporting purposes. (e) *Recently Issued Accounting Standards* From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.

Balance Sheet Information

9 Months Ended

Mar. 31, 2014

Balance Sheet Information

Balance Sheet Information

(3) Balance Sheet Information

The following tables provide details of selected consolidated balance sheet items:

Activity in the allowance for doubtful accounts was as follows:

	June 30,	Charged to			March 31,
	2013	Expense	Write-offs		2014

Allowance for doubtful accounts	118	79	(33	)	164

Capitalized software and accumulated amortization were as follows:

	June 30,			March 31,
	2013			2014
Internally developed software	$	15,189		$	18,184
Accumulated amortization	(12,575		)	(14,384		)
Capitalized software, net	$	2,614		$	3,800

Amortization of capitalized internal-use software costs is included in Cost of Revenues-Recurring Revenues and amounted to $751 and $580 for the three months ended March 31, 2013 and 2014, respectively and $2,346 and $1,809 for the nine months ended March 31, 2013 and 2014, respectively.

Property and equipment consist of the following:

	June 30,			March 31,
	2013			2014
Office equipment	$	1,350		$	1,413
Computer equipment	4,665			6,874
Furniture and fixtures	1,433			2,093
Automobiles	36			36
Software	3,791			4,740
Leasehold improvements	3,917			5,308
Time clocks rented by clients	1,649			2,328
	16,841			22,792

Accumulated depreciation and amortization	(8,255		)	(10,650		)
Property and equipment, net	$	8,586		$	12,142

Depreciation expense amounted to $661 and $1,040 for the three months ended March 31, 2013 and 2014, respectively and $1,799 and $2,735 for the nine months ended March 31, 2013 and 2014, respectively.

The components of accrued expenses were as follows:

	June 30,		March 31,
	2013		2014
Accrued payroll and personnel costs	$	5,549	$	8,006
Reseller fees	259		305
Current portion of deferred rent	230		510
Accrued office build out activities	—		515
Other	756		1,236
Total accrued expenses	$	6,794	$	10,572

Fair Value Measurement	9 Months Ended
Fair Value Measurement	Mar. 31, 2014
Fair Value Measurement
Fair Value Measurement	(4) Fair Value Measurement The Company applies the fair value measurement and disclosure provisions of ASC 820, Fair Value Measurements and Disclosures, and ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. 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. Substantially all of the Company’s assets that are measured at fair value on a recurring basis are measured using Level 1 inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at June 30, 2013 and March 31, 2014 based upon the short-term nature of the assets and liabilities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Benefit Plans

9 Months Ended

Mar. 31, 2014

Benefit Plans

Benefit Plans

(5) Benefit Plans

(a) Equity Incentive Plan

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 7,071 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 options to purchase common stock and other equity incentives at the discretion the compensation committee of the Company’s board of directors. No new awards will be issued under the 2008 Plan as of 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.

Under the 2008 and 2014 Plans, the exercise price of each option is not less than the fair value of a share of common stock on the grant date. As of March 31, 2014, the Company had 2,528 shares allocated to the 2014 Plan, but not yet issued or subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options; however, previously acquired shares may be reissued to satisfy future issuances. The options typically vest ratably over a three or four year period and expire 10 years from the grant date. Compensation expense for the fair value of the options at their grant date is recognized ratably over the vesting schedule.

Stock-based compensation expense related to stock options and the vesting of Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”) is included in the following line items in the accompanying unaudited consolidated statements of operations:

	Three months ended March 31,				Nine months ended March 31,
	2013		2014		2013		2014
Cost of revenue - recurring	$	—	$	113	$	—	$	113
Cost of revenue — non-recurring	—		97		—		97
Sales and marketing	—		175		—		175
Research and development	—		139		—		139
General and administrative	130		841		392		1,190
Total stock-based compensation	$	130	$	1,365	$	392	$	1,714

In addition, the Company capitalized $76 of stock compensation costs in its internal use software in the three month and nine month periods ended March 31, 2014. No such amounts were capitalized in internal use software in the three month and nine month periods ended March 31, 2013.

The Company values stock options using the Black-Scholes option-pricing model, which requires the input of subjective assumptions, including the risk-free rate, expected life, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for U.S. Treasury securities consistent with the expected term of the Company’s employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. The Company utilizes the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. The Company has a limited history of trading as a public company. Therefore, the expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options. The Company assumed no dividend yield because it does not expect to pay dividends in the near future, which is consistent with the Company’s history of not paying dividends.

The following table summarizes the assumptions used for estimating the fair value of stock options granted for the nine months ended March 31:

	Period ended March 31,
	2013	2014
Valuation assumptions:
Expected dividend yield	0%	0%
Expected volatility	30.7%	29.5% - 44.5%
Expected term (years)	4.0	4.0 - 6.0
Risk-free interest rate	0.61%	0.52% - 1.94%

Stock option activity during the periods indicated is as follows:


			Outstanding Options
	Shares Available for Grant		Number of shares	Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Balance at July 1, 2013	812		1,859	$	3.25	8.22	$	7,028
Additional shares authorized, net	4,406		—
RSU’s granted	(108	)	—
Options granted	(2,582	)	2,582	15.01		9.83
Exercised	—		—	—		—
Balance at March 31, 2014	2,528		4,441	$	10.09	8.84	$	62,013
Options exercisable at March 31, 2014			833	$	2.49	7.01	$	17,961
Options vested and expected to vest at March 31, 2014			3,853	$	10.17	8.78	$	53,485

The weighted average grant date fair value of options granted during the three-month period ended March 31, 2014 was $7.62. There were no options granted during the three-month period ended March 31, 2013. The weighted average grant date fair value of options granted during the nine-month period ended March 31, 2013 and 2014 was $1.22 and $6.39, respectively. The total intrinsic value of options exercised during the nine month period ended March 31, 2013 was $87. There were no options exercised in the three month periods ended March 31, 2013 and 2014 and nine month period ended March 31, 2014.

The Company may also grant RSAs and RSUs under the Plan with terms determined at the discretion of the Compensation Committee of the Company’s Board of Directors. Prior to the IPO, the Company had 269 RSAs outstanding to certain employees. The RSAs vested and were issued as common shares as a result of the satisfaction of the vesting criteria upon the completion of the IPO in March 2014 at which time the Company recorded compensation expense in the amount of $351 which is included in the compensation expense recognition table above. Concurrent with the IPO in March 2014, the Company granted 108 RSUs primarily to certain employees and members of its Board of Directors of which 93 vest over a period of six months commencing on the date of the IPO, 6 vested immediately, 4 vest one year from the date of the IPO, and 5 vest two years from the date of the IPO. Compensation expense related to these newly issued RSUs is reflected in general and administrative expense, included in the compensation expense table above, based on the fair value of the instruments on the date of grant and recognized in the period between the date of grant and the date of vesting as the vesting is based on the passage of time. In addition, approximately 2 of the 6 RSUs that vested immediately were issued to consultants that provided professional services directly related to the IPO and, thus, the Company recognized the $30 cost associated with those RSUs as an offering cost offsetting the net proceeds from the IPO.

At March 31, 2014, there was $14,680 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option and restricted stock awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.76 years.

(b) 401(k) Plan

The Company maintains a 401(k) plan with a safe harbor matching provision that covers all eligible employees. The Company matches 50% of the employees’ contributions up to 6% of their gross pay. Contributions were approximately $197 and $316 for the three months ended March 31, 2013 and 2014, respectively and $493 and $793 for the nine months ended March 31, 2013 and 2014, respectively.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Mar. 31, 2014
Commitments and Contingencies
Commitments and Contingencies	(6) Commitments and Contingencies *Reseller Agreements* The Company has agreements with two organizations that sell the Company’s offerings and services in defined areas of the country. The initial term of the first reseller agreement commenced in February 2007 and expires in February 2016 unless renewed or terminated. The initial term of the second reseller agreement commenced in June 2009 and expires in June 2016 unless renewed or terminated. Each of the Company’s reseller agreements provides that the Company is required upon a termination of the agreement to acquire the assets of the reseller. The first reseller agreement provides that either party may terminate the agreement by electing not to renew the agreement beyond its original term. The Company, but not the reseller, also has the right to terminate the agreement at any time following the completion of an initial public offering by the Company. The Company exercised its right to terminate the agreement in April 2014 and expects to close on the purchase of the reseller’s client base in May 2014. The termination agreement calls for a $6 million payment due upon closing and an additional payment currently estimated at $3 million payable within 90 days of closing. The Company expensed $0.8 million and $0.9 million during the three-month period ended March 31, 2013 and 2014, respectively and $1.8 million and $2.2 million during the nine-month period ended March 31, 2013 and 2014, respectively, as per the terms of the revenue sharing agreement with the first reseller. The second reseller agreement provides that the reseller may terminate the agreement by providing nine months’ prior notice or upon an initial public offering by the Company. The Company amended this agreement in December of 2013 to provide that the reseller may not give a nine-month termination notice until after the earlier of (i) six months following the closing of an initial public offering by the Company or (ii) December 31, 2014. In addition, the Company, but not the reseller, now has the right to terminate the agreement at any time after the date that is six months following the completion of an initial public offering by the Company. If a termination were to occur, the purchase price of the assets would be equal to 3.3 times the net revenues of the reseller for the 12 months preceding the termination effective date. The Company expensed the second reseller $0.5 million and $0.6 million during the three-month period ended March 31, 2013 and 2014, respectively and $1.3 million and $1.5 million during the nine-month period ended March 31, 2013 and 2014, respectively, as per the terms of the revenue sharing agreement with the second reseller.

Earnings Per Share

9 Months Ended

Mar. 31, 2014

Earnings Per Share

Earnings Per Share

(7) Earnings Per Share

For the periods presented prior to the Company’s IPO, basic and diluted net income (loss) per common share is presented in conformity with the two-class method required for participating securities. Concurrently with the closing of the Company’s IPO on March 24, 2014, all shares of outstanding Preferred Stock automatically converted into 11,933 shares of the Company’s common stock. Following the date of the IPO, the two-class method was no longer required as the Company has one class of securities issued and outstanding.

Prior to the conversion of the Redeemable Convertible Preferred Stock, holders of Series A and Series B Preferred Stock each were entitled to liquidation preferences payable prior and in preference to any dividends on any shares of the Company’s common stock. In the event a dividend was paid on common stock, the holders of Preferred Stock were entitled to a proportionate share of any such dividend as if they were holders of common stock (on an as-if converted basis). The holders of the Company’s Preferred Stock did not have a contractual obligation to share in the losses of the Company. The Company considered its Preferred Stock to be participating securities and, in accordance with the two-class method, earnings allocated to Preferred Stock and the related number of outstanding shares of Preferred Stock have been excluded from the computation of basic and diluted net income (loss) per common share.

Under the two-class method, net income (loss) attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income less current period Redeemable Convertible Preferred Stock cumulative dividends, between common stock and Redeemable Convertible Preferred Stock. In computing diluted net income (loss) attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities.

Basic net loss per common share is computed using the weighted-average number of common shares outstanding during the period. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends have been declared but were not obligated to participate in any losses generated by the Company, basic net income per share is computed using the weighted-average number of common shares outstanding during the period plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis.

Diluted net loss 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. Since the Series A and Series B Redeemable Convertible Preferred Stock were entitled to participate should any common stock dividends be declared but were not obligated to participate in any losses generated by the Company, diluted net income per share is computed using the weighted-average number of common shares plus the Series A and Series B Redeemable Convertible Preferred Stock on a weighted-average basis 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 dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method.

The following table presents the calculation of basic and diluted net loss per share:

	Three months ended March 31,						Nine months ended March 31,
	2013			2014			2013			2014
Basic net income (loss) per share:
Numerator:
Net income (loss)	$	2,021		$	1,150		$	989		$	(406	)
Less: Preferred dividend rights attributable to participating securities	(727		)	(720		)	(2,181		)	(2,282		)
Net income (loss) attributable to common stockholders	$	1,294		$	430		$	(1,192	)	$	(2,688	)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic (in thousands)	43,921			44,360			31,988			32,437
Weighted-average effect of potentially dilutive shares:
Employee stock options (in thousands)	486			510			—			—
Diluted (in thousands)	44,407			44,870			31,988			32,437
Net income (loss) per share attributable to common stockholders:
Basic	$	0.03		$	0.01		$	(0.04	)	$	(0.08	)
Diluted	$	0.03		$	0.01		$	(0.04	)	$	(0.08	)

The following table summarizes the outstanding employee stock options, restricted stock units, and redeemable convertible preferred stock that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive:

	Three months ended March 31,		Nine months ended March 31,
	2013	2014	2013	2014

Redeemable convertible preferred stock	—	—	11,933	—
Restricted stock units	—	—	—	102
Employee stock options	—	—	1,825	4,441
Total	—	—	13,758	4,543

Restricted Stock Awards were excluded from both basic and diluted earnings per share calculations for the three and nine month periods ended March 31, 2013 as the vesting conditions had not been met as of that date.

Line of Credit and Long-Term Debt	9 Months Ended
Line of Credit and Long-Term Debt	Mar. 31, 2014
Line of Credit and Long-Term Debt
Line of Credit and Long-Term Debt	(8) Line of Credit and Long-Term Debt On March 31, 2014, the Company terminated its line of credit and paid the remaining outstanding balance of $1,146 on its note payable with a bank. There were no prepayment penalties assessed in accordance with the terms of the agreement.

Income Taxes	9 Months Ended
Income Taxes	Mar. 31, 2014
Income Taxes
Income Taxes	(9) Income Taxes The Company’s quarterly provision for income taxes is based on an estimated annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. The Company recorded income tax expense of $575 and $1,042 for the three month periods ended March 31, 2013 and 2014 respectively. The Company’s effective rate for the three months ended March 31, 2013 differed from statutory rates primarily due to the retroactive benefit related to the extension of the Federal research and development credit by Congress during the period ended March 31, 2013 and state research and development credits and expenses not deductible for income tax reporting purposes. The Company’s effective rate for the three month period ended March 31, 2014 differed from statutory rates primarily due to state research and development credits available to the Company and expenses not deductible for income tax reporting purposes. No benefit from federal research and development credits were recorded in the three month period ended March 31, 2014 due to there being no authorizing legislation for periods after December 31, 2013. The Company recorded income tax benefits of $(106) and $(197) for the nine month periods ended March 31, 2013 and 2014 respectively. The Company’s effective rate for the nine months ended March 31, 2013 differed from statutory rates primarily due to the retroactive benefit related to the extension of the Federal research and development credit by Congress during the period ended March 31, 2013 and state research and development credits and expenses not deductible for income tax reporting purposes. The Company’s effective rate for the nine month period ended March 31, 2014 differed from statutory rates primarily due to state research and development credits available to the Company, expenses not deductible for income tax reporting purposes and Federal research and development credits available to the Company until December 31, 2013 at which point the authorizing legislation expired. The Company reviews the likelihood that is will realize the benefit of its deferred tax assets and, therefore, the need for a valuation allowance on a quarterly basis. Specifically, the Company has a recent history of utilizing past net operating loss carryforwards, has tax planning strategies available to generate taxable net income in future periods, expects carryforward periods through 2031 to utilize the available net operating loss carryforwards and has carryforwards for research and development tax credits available until between 2017 and 2032. As of March 31, 2014, the Company had no unrecognized tax benefits that would affect the Company’s effective tax rate if recognized.

Related Party Transactions	9 Months Ended
Related Party Transactions	Mar. 31, 2014
Related Party Transactions
Related Party Transactions	(10) Related Party Transactions The Company purchased sales leads from an entity owned by one of the stockholders in the amount of approximately $277 and $0 for the three months and $701 and $231 for the nine months ended March 31, 2013 and 2014, respectively. The Company provided no management guidance to the entity and had no equity interest in the entity, no obligation or intention to fund any of the entity’s operational shortfalls, and no right to any operational surpluses generated by the entity. Accounts payable due to this entity were $65 and $0 of June 30, 2013 and March 31, 2014, respectively. As of October 14, 2013, the Company hired substantially all of the employees of this entity and no longer purchases sales leads from the sales lead generation entity described above.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Subsequent events	9 Months Ended
Subsequent events	Mar. 31, 2014
Subsequent events
Subsequent events	(11) Subsequent events The Company has evaluated subsequent events from the balance sheet date through May 13, 2014, the date at which the financial statements were available to be issued. In April 2014, the Company exercised its right to terminate one of its reseller agreements. See Note 6 for further details. On May 6, 2014, the Company announced that its principal stockholder was contributing approximately $1.1 million to the Company for the express purpose of paying a cash bonus to long-term employees in recognition of their past service. The Company intends to record a capital contribution to additional paid-in capital for the amount received from the shareholder and compensation expense for the amount paid to employees in the three-month period ending June 30, 2014 accordingly.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2014
Summary of Significant Accounting Policies
Principles of Consolidation	(a) *Principles of Consolidation* These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.
Interim Unaudited Consolidated Financial Information	(b) *Interim Unaudited Consolidated Financial Information* The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity (deficit) and cash flows. The results of operations for the three and nine-month periods ended March 31, 2014 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2013 included in the Company’s final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the SEC on March 19, 2014.
Use of Estimates	(c) *Use of Estimates* The preparation of consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include (1) allowance for doubtful accounts; (2) software developed for internal use; (3) impairment of property and equipment; (4) stock-based compensation; (5) evaluation of net deferred income tax assets and (6) the best estimate of selling price for revenue recognition purposes. These estimates are based on the Company’s knowledge of current events and actions it may undertake in the future as well as on various other assumptions that it believes to be reasonable. Actual results could differ from those estimates.
Income Taxes	(d) *Income Taxes* Differences in the normal relationship between the income tax (expense) benefit and pre-tax income (loss) result from federal and state research and development credits and expenses not deductible for income tax reporting purposes.
Recently Issued Accounting Standards	(e) *Recently Issued Accounting Standards* From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References + Details

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References + Details

Balance Sheet Information (Tables)

9 Months Ended

Mar. 31, 2014

Balance Sheet Information

Schedule of activity in allowance for doubtful accounts

	June 30,	Charged to			March 31,
	2013	Expense	Write-offs		2014

Allowance for doubtful accounts	118	79	(33	)	164

Schedule of capitalized software and accumulated amortization

	June 30,			March 31,
	2013			2014
Internally developed software	$	15,189		$	18,184
Accumulated amortization	(12,575		)	(14,384		)
Capitalized software, net	$	2,614		$	3,800

Schedule of property and equipment

	June 30,			March 31,
	2013			2014
Office equipment	$	1,350		$	1,413
Computer equipment	4,665			6,874
Furniture and fixtures	1,433			2,093
Automobiles	36			36
Software	3,791			4,740
Leasehold improvements	3,917			5,308
Time clocks rented by clients	1,649			2,328
	16,841			22,792

Accumulated depreciation and amortization	(8,255		)	(10,650		)
Property and equipment, net	$	8,586		$	12,142

Schedule of components of accrued expenses

	June 30,		March 31,
	2013		2014
Accrued payroll and personnel costs	$	5,549	$	8,006
Reseller fees	259		305
Current portion of deferred rent	230		510
Accrued office build out activities	—		515
Other	756		1,236
Total accrued expenses	$	6,794	$	10,572

Benefit Plans (Tables)

9 Months Ended

Mar. 31, 2014

Benefit Plans

Schedule of stock-based compensation expense related to stock options and the vesting of Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs")

	Three months ended March 31,				Nine months ended March 31,
	2013		2014		2013		2014
Cost of revenue - recurring	$	—	$	113	$	—	$	113
Cost of revenue — non-recurring	—		97		—		97
Sales and marketing	—		175		—		175
Research and development	—		139		—		139
General and administrative	130		841		392		1,190
Total stock-based compensation	$	130	$	1,365	$	392	$	1,714

Summary of the assumptions used for estimating the fair value of stock options granted

	Period ended March 31,
	2013	2014
Valuation assumptions:
Expected dividend yield	0%	0%
Expected volatility	30.7%	29.5% - 44.5%
Expected term (years)	4.0	4.0 - 6.0
Risk-free interest rate	0.61%	0.52% - 1.94%

Schedule of stock option activity


			Outstanding Options
	Shares Available for Grant		Number of shares	Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Balance at July 1, 2013	812		1,859	$	3.25	8.22	$	7,028
Additional shares authorized, net	4,406		—
RSU’s granted	(108	)	—
Options granted	(2,582	)	2,582	15.01		9.83
Exercised	—		—	—		—
Balance at March 31, 2014	2,528		4,441	$	10.09	8.84	$	62,013
Options exercisable at March 31, 2014			833	$	2.49	7.01	$	17,961
Options vested and expected to vest at March 31, 2014			3,853	$	10.17	8.78	$	53,485

Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2014

Earnings Per Share

Schedule of calculation of basic and diluted net loss per share

	Three months ended March 31,						Nine months ended March 31,
	2013			2014			2013			2014
Basic net income (loss) per share:
Numerator:
Net income (loss)	$	2,021		$	1,150		$	989		$	(406	)
Less: Preferred dividend rights attributable to participating securities	(727		)	(720		)	(2,181		)	(2,282		)
Net income (loss) attributable to common stockholders	$	1,294		$	430		$	(1,192	)	$	(2,688	)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic (in thousands)	43,921			44,360			31,988			32,437
Weighted-average effect of potentially dilutive shares:
Employee stock options (in thousands)	486			510			—			—
Diluted (in thousands)	44,407			44,870			31,988			32,437
Net income (loss) per share attributable to common stockholders:
Basic	$	0.03		$	0.01		$	(0.04	)	$	(0.08	)
Diluted	$	0.03		$	0.01		$	(0.04	)	$	(0.08	)

Summary of outstanding employee stock options and redeemable convertible preferred stock excluded from the diluted per share calculation because to include them would have been anti-dilutive

	Three months ended March 31,		Nine months ended March 31,
	2013	2014	2013	2014

Redeemable convertible preferred stock	—	—	11,933	—
Restricted stock units	—	—	—	102
Employee stock options	—	—	1,825	4,441
Total	—	—	13,758	4,543

Organization and Description of Business (Details) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	9 Months Ended
	Mar. 31, 2014 USD ($) $ / shares shares	Mar. 31, 2014 USD ($) $ / shares shares	Mar. 24, 2014 shares	Jun. 30, 2013 $ / shares
Organization and Description of Business
Reverse stock split ratio on common stock	0.67
Initial public offering
Public offering price (in dollar per share) \| $ / shares	$ 17.00	$ 17.00
Net proceeds after deducting underwriting discounts and commissions and other offering expenses \| $		$ 82,709
Number of shares issued on conversion of outstanding redeemable convertible preferred stock			11,933
Common stock, par value (in dollar per share) \| $ / shares	$ 0.001	$ 0.001		$ 0.001
Common stock
Initial public offering
Number of shares of common stock issued and sold		5,367
Authorized common shares upon filing of revised certificate of incorporation	155,000
Preferred stock
Initial public offering
Authorized preferred shares upon filing of revised certificate of incorporation	5,000
Initial Public Offering
Initial public offering
Number of shares of common stock issued and sold	5,367
Net proceeds after deducting underwriting discounts and commissions and other offering expenses \| $	$ 82,001
Underwriting discounts and commissions \| $	6,387
Other offering expenses \| $	$ 2,851
Number of shares issued on conversion of outstanding redeemable convertible preferred stock	11,933	11,933
Common stock, par value (in dollar per share) \| $ / shares	$ 0.001	$ 0.001
Existing shareholders
Initial public offering
Number of shares of common stock issued and sold	2,735

Balance Sheet Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Activity in allowance for doubtful accounts
Balance at beginning of period			$ 118
Charged to Expense			79	$ 45
Write-offs			(33)
Balance at end of period	$ 164		164
Capitalized software and accumulated amortization
Internally developed software	18,184		18,184		$ 15,189
Accumulated amortization	(14,384)		(14,384)		(12,575)
Capitalized software, net	3,800		3,800		2,614
Amortization of capitalized internal-use software costs	580	$ 751	1,809	2,346
Property and equipment
Property and equipment, gross	22,792		22,792		16,841
Accumulated depreciation and amortization	(10,650)		(10,650)		(8,255)
Property and equipment, net	12,142		12,142		8,586
Depreciation expense	1,040	$ 661	2,735	$ 1,799
Components of accrued expenses
Accrued payroll and personnel costs	8,006		8,006		5,549
Reseller fees	305		305		259
Current portion of deferred rent	510		510		230
Accrued office build out activities	515		515
Other	1,236		1,236		756
Total accrued expenses	10,572		10,572		6,794
Office equipment
Property and equipment
Property and equipment, gross	1,413		1,413		1,350
Computer equipment
Property and equipment
Property and equipment, gross	6,874		6,874		4,665
Furniture and fixtures
Property and equipment
Property and equipment, gross	2,093		2,093		1,433
Automobiles
Property and equipment
Property and equipment, gross	36		36		36
Software
Property and equipment
Property and equipment, gross	4,740		4,740		3,791
Leasehold improvements
Property and equipment
Property and equipment, gross	5,308		5,308		3,917
Time clocks rented by clients
Property and equipment
Property and equipment, gross	$ 2,328		$ 2,328		$ 1,649

Benefit Plans (Details) shares in Thousands	1 Months Ended	9 Months Ended
Benefit Plans (Details) shares in Thousands	Mar. 31, 2014 shares	Mar. 31, 2014 shares
Benefit Plans
Number of shares of common stock reserved for issuance	7,071	7,071
Stock options
Benefit Plans
Expiration period		10 years
Stock options \| Minimum
Benefit Plans
Vesting period		3 years
Stock options \| Maximum
Benefit Plans
Vesting period		4 years
2014 Plan
Benefit Plans
Number of shares allocated but not yet issued or subject to outstanding options or awards	2,528	2,528
2008 Plan
Benefit Plans
Awards issued (in shares)	0

Benefit Plans (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Benefit Plans (Details 2) - USD ($) $ in Thousands	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Benefit Plans
Total stock-based compensation expense	$ 1,365	$ 130	$ 1,714	$ 392
Stock compensation costs capitalized	76	0	76	0
Cost of revenue - recurring
Benefit Plans
Total stock-based compensation expense	113		113
Cost of revenue - non-recurring
Benefit Plans
Total stock-based compensation expense	97		97
Sales and marketing
Benefit Plans
Total stock-based compensation expense	175		175
Research and development
Benefit Plans
Total stock-based compensation expense	139		139
General and administrative
Benefit Plans
Total stock-based compensation expense	$ 841	$ 130	$ 1,190	$ 392

Benefit Plans (Details 3) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Aggregate intrinsic value
Total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option and restricted stock awards	$ 14,680	$ 14,680		$ 14,680
Weighted average period to recognize unrecognized compensation cost				1 year 9 months 4 days
Compensation expense (in dollars)		$ 1,365	$ 130	$ 1,714	$ 392
Stock options
Valuation assumptions:
Expected dividend yield (as a percent)				0.00%	0.00%
Expected volatility (as a percent)					30.70%
Expected volatility, minimum (as a percent)				29.50%
Expected volatility, maximum (as a percent)				44.50%
Expected term					4 years
Risk-free interest rate (as a percent)					0.61%
Risk-free interest rate, minimum (as a percent)				0.52%
Risk-free interest rate, maximum (as a percent)				1.94%
Shares Available for Grant
Balance at the beginning of the period (in shares)				812
Additional shares authorized, net (in shares)				4,406
Options granted (in shares)			0	(2,582)
Balance at the end of the period (in shares)	2,528	2,528		2,528		812
Number of shares
Balance at the beginning of the period (in shares)				1,859
Options granted (in shares)			0	2,582
Exercised (in shares)		0	0	0
Balance at the end of the period (in shares)	4,441	4,441		4,441		1,859
Options exercisable at the end of the period (in shares)	833	833		833
Options vested and expected to vest at the end of the period (in shares)	3,853	3,853		3,853
Weighted average exercise price
Balance at the beginning of the period (in dollars per share)				$ 3.25
Options granted (in dollars per share)				15.01
Balance at the end of the period (in dollars per share)	$ 10.09	$ 10.09		10.09		$ 3.25
Options exercisable at the end of the period (in dollars per share)	2.49	2.49		2.49
Options vested and expected to vest at the end of the period (in dollars per share)	$ 10.17	$ 10.17		$ 10.17
Weighted average remaining contractual term
Options granted				9 years 9 months 29 days
Balance at the end of the period				8 years 10 months 2 days		8 years 2 months 19 days
Options exercisable at the end of the period				7 years 4 days
Options vested and expected to vest at the end of the period				8 years 9 months 11 days
Aggregate intrinsic value
Balance at the end of the period (in dollars)	$ 62,013	$ 62,013		$ 62,013		$ 7,028
Options exercisable at the end of the period (in dollars)	17,961	17,961		17,961
Options vested and expected to vest at the end of the period	53,485	$ 53,485		$ 53,485
Weighted average grant date fair value of options granted (in dollars per share)		$ 7.62		$ 6.39	$ 1.22
Total intrinsic value of options exercised					$ 87
Stock options \| Minimum
Valuation assumptions:
Expected term				4 years
Aggregate intrinsic value
Vesting period				3 years
Stock options \| Maximum
Valuation assumptions:
Expected term				6 years
Aggregate intrinsic value
Vesting period				4 years
RSAs
Aggregate intrinsic value
Compensation expense (in dollars)	$ 351
RSAs \| Certain employees
Aggregate intrinsic value
Awards non-vested (in shares)			269		269
RSUs
Shares Available for Grant
RSU's granted (in shares)				(108)
Aggregate intrinsic value
Awards granted (in shares)				108
RSUs \| Certain employees and members Board of Directors
Shares Available for Grant
RSU's granted (in shares)	(108)
Aggregate intrinsic value
Awards granted (in shares)	108
RSUs \| Consultants
Aggregate intrinsic value
Compensation expense (in dollars)	$ 30
RSUs \| Vesting over period of six months from date of the IPO \| Certain employees and members Board of Directors
Aggregate intrinsic value
Awards vested (in shares)	93
Vesting period	6 months
RSUs \| Vested immediately \| Certain employees and members Board of Directors
Aggregate intrinsic value
Awards vested (in shares)	6
RSUs \| Vested immediately \| Consultants
Aggregate intrinsic value
Awards vested (in shares)	2
RSUs \| Vesting over period of one year from date of the IPO \| Certain employees and members Board of Directors
Aggregate intrinsic value
Awards vested (in shares)	4
Vesting period	1 year
RSUs \| Vesting over period of two years from date of the IPO \| Certain employees and members Board of Directors
Aggregate intrinsic value
Awards vested (in shares)	5
Vesting period	2 years

Benefit Plans (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Benefit Plans (Details 4) - USD ($) $ in Thousands	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Benefit Plans
Matching contributions by the Company as percentage of employees' contributions			50.00%
Maximum contributions as percentage of employees' gross pay			6.00%
Contributions	$ 316	$ 197	$ 793	$ 493

Commitments and Contingencies (Details) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
Commitments and Contingencies (Details) $ in Millions	Apr. 30, 2014 USD ($)	Mar. 31, 2014 USD ($) item	Mar. 31, 2013 USD ($)	Mar. 31, 2014 USD ($) item	Mar. 31, 2013 USD ($)
Commitments and Contingencies
Number of reseller organizations \| item		2		2
First reseller agreement
Reseller agreements
Amount paid to reseller		$ 0.9	$ 0.8	$ 2.2	$ 1.8
Second reseller agreement
Reseller agreements
Amount paid to reseller		$ 0.6	$ 0.5	$ 1.5	$ 1.3
Prior notice period to terminate the agreement by resellers				9 months
Minimum period after closing of initial public offering to provide prior notice by the reseller for termination of agreement				6 months
Minimum period after closing of initial public offering for termination of agreement by the entity				6 months
Purchase price of assets as multiplier of net revenues of reseller for 12 months preceding termination effective date		3.3		3.3
Period considered for multiplier of annual revenues to calculate purchase price of assets				12 months
Subsequent event
Reseller agreements
Period for payment of additional termination	90 days
Subsequent event \| Estimated
Reseller agreements
Termination payment due upon closing	$ 6.0
Additional termination payment due upon closing	$ 3.0

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Mar. 24, 2014
Earnings Per Share
Number of shares of common stock issued on automatic conversion of outstanding preferred stock					11,933
Numerator:
Net income (loss)	$ 1,150	$ 2,021	$ (406)	$ 989
Less: Preferred dividend rights attributable to participating securities	(720)	(727)	(2,282)	(2,181)
Net income (loss) attributable to common stockholders	$ 430	$ 1,294	$ (2,688)	$ (1,192)
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic (in shares)	44,360	43,921	32,437	31,988
Weighted-average effect of potentially dilutive shares:
Employee stock options (in shares)	510	486
Diluted (in shares)	44,870	44,407	32,437	31,988
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.01	$ 0.03	$ (0.08)	$ (0.04)
Diluted (in dollars per share)	$ 0.01	$ 0.03	$ (0.08)	$ (0.04)
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)			4,543	13,758
Redeemable convertible preferred stock
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)				11,933
Restricted stock units
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)			102
Employee stock options
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)			4,441	1,825

Line of Credit and Long-Term Debt (Details) - Line of credit $ in Thousands	Mar. 31, 2014 USD ($)
Line of Credit and Long-Term Debt
Extinguishment of Debt Amount	$ 1,146
Prepayment penalties on termination of debt	$ 0

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Income Taxes
Amount of tax provision (benefit) recorded	$ 1,042	$ 575	$ (197)	$ (106)
Tax benefit from federal research and development credits	0
Unrecognized tax benefits	$ 0		$ 0

Related Party Transactions (Details) - Entity owned by one of the stockholders - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Related party transactions
Amount of sales leads purchased	$ 0	$ 277	$ 231	$ 701
Equity interest (as a percent)	0.00%		0.00%
Obligation to fund operational shortfalls	$ 0		$ 0
Accounts payable due	$ 0		$ 0		$ 65

Subsequent events (Details) - Subsequent event $ in Millions		1 Months Ended
	May 06, 2014 USD ($)	Apr. 30, 2014 item
Subsequent events
Contribution from principal stockholders \| $	$ 1.1
First reseller agreement
Subsequent events
Number of reseller agreements terminated \| item		1