0001104659-14-062738 | 10-K | XBRL Viewer

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Jun. 30, 2014	Aug. 15, 2014
Document and Entity Information
Entity Registrant Name	Paylocity Holding Corp
Entity Central Index Key	0001591698
Document Type	10-K
Document Period End Date	Jun. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float	$ 0
Entity Common Stock, Shares Outstanding		49,563,736
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013
Current assets:
Cash and cash equivalents	$ 78,848	$ 7,594
Accounts receivable, net	756	740
Prepaid expenses and other	2,694	1,875
Deferred income tax assets, net	706	602
Total current assets before funds held for clients	83,004	10,811
Funds held for clients	417,261	355,905
Total current assets	500,265	366,716
Long-term prepaid expenses	313
Capitalized software, net	5,093	2,614
Property and equipment, net	13,125	8,586
Intangible assets, net	6,320
Goodwill	3,035
Total assets	528,151	377,916
Current liabilities:
Current portion of long-term debt		625
Accounts payable	2,133	880
Taxes payable	5	207
Consideration related to acquisition	2,985
Accrued expenses	10,744	6,794
Total current liabilities before client fund obligations	15,867	8,506
Client fund obligations	417,261	355,905
Total current liabilities	433,128	364,411
Long-term debt, net of current portion		938
Deferred rent	3,175	2,317
Deferred income tax liabilities, net	714	269
Total liabilities	437,017	367,935
Stockholders' equity (deficit)
Common stock, $0.001 par value, 66,667 shares authorized, 31,988 shares issued and outstanding at June 30, 2013; and 155,000 shares authorized, 49,564 shares issued and outstanding at June 30, 2014	50	32
Preferred stock, $0.001 par value, no shares authorized, issued and outstanding at June 30, 2013 and 5,000 authorized, no shares issued and outstanding at June 30, 2014
Additional paid-in capital	125,255	437
Accumulated deficit	(34,171)	(27,061)
Total stockholders' equity (deficit)	91,134	(26,592)
Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit)	$ 528,151	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 June 30, 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 June 30, 2014
Redeemable convertible preferred stock		$ 27,234

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 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	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Revenues
Recurring fees	$ 100,362	$ 71,309	$ 51,211
Interest income on funds held for clients	1,582	1,459	1,263
Total recurring revenues	101,944	72,768	52,474
Implementation services and other	6,743	4,526	2,622
Total revenues	108,687	77,294	55,096
Cost of revenues
Recurring revenues	37,319	28,863	22,054
Implementation services and other	17,775	10,803	7,040
Total cost of revenues	55,094	39,666	29,094
Gross profit	53,593	37,628	26,002
Operating expenses
Sales and marketing	28,276	18,693	12,828
Research and development	10,355	6,825	1,788
General and administrative	21,980	12,079	8,618
Total operating expenses	60,611	37,597	23,234
Operating income (loss)	(7,018)	31	2,768
Other income (expense)	163	(16)	(196)
Income (loss) before income taxes	(6,855)	15	2,572
Income tax (benefit) expense	255	(602)	884
Net income (loss)	(7,110)	617	1,688
Net income (loss) attributable to common stockholders	$ (9,392)	$ (2,291)	$ 998
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.26)	$ (0.07)	$ 0.02
Diluted (in dollars per share)	$ (0.26)	$ (0.07)	$ 0.02
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)	36,707	31,988	43,873
Diluted (in shares)	36,707	31,988	44,317

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balance at Jun. 30, 2011	$ (2,254)	$ 38	$ 4,304	$ (6,596)
Balance (in shares) at Jun. 30, 2011		37,539
Increase (Decrease) in Stockholders' Equity
Stock-based compensation expense	203		203
Stock options exercised	88		88
Stock options exercised (in shares)		67
Redemption of Common Stock	(27,371)	$ (6)	(4,595)	(22,770)
Redemption of Common Stock (in shares)		(5,618)
Net income (loss)	1,688			1,688
Balance at Jun. 30, 2012	(27,646)	$ 32		(27,678)
Balance (in shares) at Jun. 30, 2012		31,988
Increase (Decrease) in Stockholders' Equity
Stock-based compensation expense	523		523
Stock options exercised	76		76
Stock options exercised (in shares)		33
Redemption of Common Stock	(162)		(162)
Redemption of Common Stock (in shares)		(33)
Net income (loss)	617			617
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	$ 81,927	$ 6	81,921
Initial public offering, net of issuance costs (in shares)		5,367
Conversion of redeemable convertible preferred stock	36,573	$ 12	36,561
Number of shares of common stock issued on automatic conversion of outstanding preferred stock		11,933
Capital contribution	1,052		1,052
Vesting of restricted shares (in shares)		276
Stock-based compensation expense	5,284		5,284
Net income (loss)	(7,110)			(7,110)
Balance at Jun. 30, 2014	$ 91,134	$ 50	$ 125,255	$ (34,171)
Balance (in shares) at Jun. 30, 2014	49,564	49,564

Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Temporary Equity) - USD ($) shares in Thousands, $ in Thousands	Total	Series A redeemable convertible preferred stock	Series B redeemable convertible preferred stock
Balance at Jun. 30, 2011		$ 9,339
Balance (in shares) at Jun. 30, 2011		9,500
Statement
Issuance of Preferred Series B Shares			$ 27,234
Issuance of Preferred Series B Shares (in shares)			8,400
Balance at Jun. 30, 2012		$ 9,339	$ 27,234
Balance (in shares) at Jun. 30, 2012		9,500	8,400
Balance at Jun. 30, 2013		$ 9,339	$ 27,234
Balance (in shares) at Jun. 30, 2013		9,500	8,400
Statement
Conversion of redeemable convertible preferred stock	$ 36,573	$ (9,339)	$ (27,234)
Conversion of redeemable convertible preferred stock (in shares)		(9,500)	(8,400)
Balance (in shares) at Jun. 30, 2014		0	0

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Cash flows provided by operating activities:
Net income (loss)	$ (7,110)	$ 617	$ 1,688
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	4,929	523	203
Depreciation and amortization	6,336	5,571	4,624
Deferred income tax (benefit) expense	341	(822)	838
Provision for doubtful accounts	62	60	60
Loss on disposal of equipment	98
Changes in operating assets and liabilities:
Accounts receivable	(78)	(295)	287
Prepaid expenses	(1,132)	(1,061)	(247)
Trade accounts payable	465	138	102
Accrued expenses	3,288	1,497	1,009
Net cash provided by operating activities	7,199	6,228	8,564
Cash flows from investing activities:
Capitalized internally developed software costs	(4,349)	(1,967)	(3,716)
Purchases of property and equipment	(6,667)	(3,987)	(3,446)
Payments for acquisition	(6,450)
Net change in funds held for clients	(61,356)	(92,650)	35,724
Net cash provided by (used in) investing activities	(78,822)	(98,604)	28,562
Cash flows from financing activities:
Net change in client funds obligation	61,356	92,650	(35,724)
Principal payments on long-term debt	(1,563)	(1,625)	(312)
Proceeds from initial public offering, net of issuance costs	82,032
Capital contribution	1,052
Proceeds from issuance of Redeemable Convertible Preferred Series B Shares			27,234
Proceeds from exercise of stock options		76	88
Payments for redemption of Common Shares		(162)	(27,371)
Net cash (used in) provided by financing activities	142,877	90,939	(36,085)
Net Change in Cash and Cash Equivalents	71,254	(1,437)	1,041
Cash and Cash Equivalents-Beginning of Year	7,594	9,031	7,990
Cash and Cash Equivalents-End of Year	78,848	7,594	9,031
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Build-out allowance received from landlord	1,162	325	333
Purchase of property and equipment, accrued but not paid	896	27	392
Unpaid initial offering costs	75
Supplemental disclosure of cash flow information
Cash paid for income taxes	106	69	7
Cash paid for interest	$ 70	$ 385	$ 161

Organization and Description of Business	12 Months Ended
Organization and Description of Business	Jun. 30, 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 at which time 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 became 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 audited 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 $81,927 after deducting underwriting discounts and commissions of $6,387 and other offering expenses of $2,925. 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 connection with the IPO, in March 2014, 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

12 Months Ended

Jun. 30, 2014

Summary of Significant Accounting Policies

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. Significant items subject to such estimates and assumptions include the allowance for doubtful accounts, software developed for internal use, valuation and useful lives of long-lived assets, definite-lived intangibles, goodwill, stock-based compensation, valuation of net deferred income tax assets and the best estimate of selling price for revenue recognition purposes. 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 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 reflect the financial position and operating results of Paylocity Holding Corporation and include its wholly-owned subsidiary Paylocity Corporation. 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, 100% of total revenues were generated by clients in the United States.

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

(d) 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 statements of cash flows. The Company maintains an allowance for doubtful accounts reflecting estimated potential losses in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our clients’ financial conditions, the amount of receivables in dispute, the current receivables aging and current payment patterns. The Company reviews its allowance for doubtful accounts 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 doubtful accounts was as follows:

	For the Years Ended June 30,
	2012	2013	2014
Balance at the beginning of the year	$80	$114	$118
Charged to expense	60	60	62
Write-offs	(26)	(56)	(54)
Balance at the end of the year	$114	$118	$126

(e) Prepaid expenses and other assets

Prepaid expenses and other current assets consist of office space security deposits, deposits with vendors, prepaid licensing fees, supplies, and time clocks available for sale or lease.

(f) 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 to seven years for most classes of assets, or over the term of the related lease for leasehold improvements.

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 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.

(g) Internal-Use Software

The Company applies ASC 350-40, Intangibles—Goodwill and Other—Internal-Use Software, to the accounting for costs of internal-use software. Software development costs are capitalized when application 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. 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 18 to 24 months, depending on the expected life of the application enhancement. 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) Goodwill and other intangible assets, net of accumulated amortization

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. As described in Note 5, the Company has recorded goodwill in connection with the acquisition of BFKMS, Inc. Goodwill is not amortized, but instead is tested for impairment at least annually. ASU 2011-08, Testing Goodwill for Impairment provides an entity the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step impairment test. If it is the case that the estimated fair value of a reporting unit is less than its carrying amount, including goodwill, the two-step goodwill impairment test is required. Otherwise no further analysis is required.

If the two-step goodwill impairment test is required, first the fair value of the reporting unit is compared with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the Company must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed.

The Company will perform its annual impairment review of goodwill in its fiscal fourth quarter and when a triggering event occurs between annual impairment tests. However, given that the Company did not have recorded goodwill until its fiscal fourth quarter of 2014, no impairment tests were required to be completed.

Intangible assets are comprised primarily of client list acquisitions and are reported net of accumulated amortization on the Consolidated Balance Sheets. Client relationships use the straight-line method of amortization over an accelerated nine year time frame, while the non-solicitation agreement uses the straight-line method of amortization over the three year life of the agreement. The Company tests intangible assets for potential impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable.

(i) Deferred Rent

The Company has operating lease agreements for its office space, which contain provisions for future rent increases, periods of rent abatement and build-out allowances. The Company records monthly rent expense for each lease equal to the total payments due over the lease term, divided by the number of months of the lease term. Build-out allowances are recorded as part of leasehold improvements and the incentive is amortized over the lease term against depreciation. The difference between recorded rent expense and the amount paid is reflected as “Deferred Rent” in the accompanying balance sheets.

(j) 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 rate is recognized in income in the period that includes the enactment date. Accordingly, the impact of the American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013, on deferred tax assets and liabilities and current taxes for the last six months of the fiscal year ended June 30, 2012 was recognized in the year ended June 30, 2013. Research and development tax credits are recognized using the flow-through method in the year the credit arises.

Valuation allowances are provided when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Significant 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 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. The Company records interest and penalties as an element of income tax expense.

(k) Revenue Recognition

The Company recognizes revenue in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 605-25, Revenue Recognition—Multiple Element Arrangements, Accounting Standards Update No. 2009-13, Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”), and Staff Accounting Bulletin 104, Revenue Recognition. Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the fee is fixed or determinable and collection of the revenue is probable.

The Company derives its revenue predominantly from recurring fees and non-recurring service fees. Recurring fees are collected under agreements for payroll, timekeeping, HR-related cloud-based computing services and monthly time clock rentals, all of which are generally cancellable by the client on 60 days’ notice or less. Non-recurring service fees consist mainly of implementation and custom reporting services. Such fees are billed to clients and revenue is recorded upon completion of the service. The Company’s agreements do not include general rights of return and do not provide clients with the right to take possession of the software supporting the services being provided. As such, the agreements are accounted for as service contracts.

Interest income collected on funds held for clients is recognized in recurring revenues when earned as the collection, holding and remittance of these funds are critical components of providing these services.

Most multiple-element arrangements include a short implementation services phase which involves establishing the client within and loading data into the Company’s cloud-based applications. Such activities are performed by either the Company or a third party vendor. Major recurring fees included in multiple-element arrangements include:

· Payroll processing and related services, including payroll reporting and tax filing services 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, delivered on a monthly basis, and

· Cloud-based HR software solutions, including employee administration and benefits enrollment and administration, delivered on a monthly basis.

For each agreement, the Company evaluates whether the individual deliverables qualify as separate units of accounting. If one or more of the deliverables does not have standalone value upon delivery, which is typical of the payroll and human capital management (“HCM”) services our customers contract for, the deliverables that do not have standalone value are generally combined and treated as a single unit of accounting by frequency of occurrence for the product category involved such as biweekly payroll or monthly timekeeping services. Revenues for arrangements treated as a single unit of accounting are generally recognized within the same month that the services are rendered given that the agreements are cancellable with 60 days’ or less notice.

In determining whether implementation services can be accounted for separately from recurring revenues, the Company considers the nature of the implementation services and the availability of the implementation services from other vendors. The Company was able to establish standalone value for implementation activities based on the activity of third-party vendors that perform these services and accounts for such implementation services separate from the recurring revenues.

If the recurring services have standalone value upon delivery, the Company accounts for each separately and revenues are recognized as services are delivered with allocation of consideration based on the relative selling price method as established in ASU 2009-13. That method requires the selling price of each element in a multiple-deliverable arrangement to be based on, in descending order: (i) vendor specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of fair value (“TPE”) or (iii) management’s best estimate of the selling price (“BESP”).

The Company is not able to establish VSOE because the deliverables are sold across an insufficiently narrow range of prices on a stand-alone basis and is also not able to establish TPE because no third-party offerings are reasonably comparable to the Company’s offerings. The Company thus established its BESP by service offering, requiring the use of significant estimates and judgment. The Company considers numerous factors, including the nature of the deliverables themselves; the geography of the sale; and pricing and discounting practices utilized by the Company’s sales force. Arrangement consideration is allocated to each deliverable based on the established BESP and subject to the limitation that because the arrangements are cancellable with 60 days’ or less notice, recurring revenue is not allocated to any deliverable until the consideration has been earned, typically with each payroll cycle or monthly, depending on the service.

Revenues generated from sales through partners or utilizing partner services are recognized in accordance with the appropriate accounting guidance of Accounting Standards Codification 605-45, Principal Agent Considerations. The Company reports revenue generated through partners or utilizing partner services at the gross amount billed to clients when (i) the Company is the primary obligor, (ii) the Company has latitude to establish the price charged and (iii) the Company bears the credit risk in the transaction.

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.

(l) Cost of Revenues

Cost of revenues consists primarily of the cost of recurring revenues and implementation services which are expensed when incurred. Cost of revenues for recurring revenues consists primarily of costs to provide recurring services and support to our clients, and includes amortization of capitalized software. Cost of revenues for implementation services and other consists primarily of costs to provide implementation services and costs related to sales of payroll-related forms and time clocks.

(m) Advertising

Advertising costs are expensed as incurred. Advertising costs amounted to $32, $27 and $24 for the years ended June 30, 2012, 2013 and 2014, respectively.

(n) Equity Incentive Plan

The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards 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. The Company estimates grant date fair value using the Black-Scholes option-pricing model and periodically updates the assumed forfeiture rates for actual experience over their vesting terms.

Excess tax benefits of awards that are recognized in equity related to stock option exercises are reflected as financing cash inflows. The total excess income tax benefits recognized for stock-based compensation arrangements was $206 and $63 for the years ended June 30, 2012 and 2013, respectively. There were no excess income tax benefits recognized for stock-based compensation arrangements for the year ended June 30, 2014.

(o) 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.

(p) 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 cloud-based software solution reporting segment.

(q) Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to apply more judgment and estimation techniques or methods while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a “full retrospective” adoption or a “modified retrospective” adoption. The Company is currently evaluating which adoption method it will use. Early application is not permitted. The Company plans on adopting ASU 2014-09 beginning July 1, 2017 and is currently assessing the potential effects of these changes to its consolidated financial statements.

From time to time, new accounting pronouncements are issued by the 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.

Funds Held for Clients and Client Fund Obligations	12 Months Ended
Funds Held for Clients and Client Fund Obligations	Jun. 30, 2014
Funds Held for Clients and Client Fund Obligations
Funds Held for Clients and Client Fund Obligations	(3) Funds Held for Clients 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 filling services. Funds held for clients are held in demand deposit and money market accounts at major financial institutions. 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. 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.

Fair Value Measures	12 Months Ended
Fair Value Measures	Jun. 30, 2014
Fair Value Measures
Fair Value Measures	(4) Fair Value Measures 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 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

Business Combinations

12 Months Ended

Jun. 30, 2014

Business Combinations

Business Combinations

(5) Business Combinations

On May 23, 2014, the Company closed on the acquisition of certain assets sufficient to sell the Company’s products in the Southern California marketplace of one of its resellers described in Note 16, BFKMS Inc., as part of the Company’s long term strategy of simplifying its sales channels. The total consideration, all to be paid in cash, was $9,435 of which $6,450 has been paid as of June 30, 2014. Of the remaining amount, $2,385 was paid in July 2014 with two further payments due in November 2014 and February 2015 or upon settlement of any indemnification related issues, totaling $600. The following table summarizes the provisional fair value of the assets acquired at the date of acquisition:

		At May 23, 2014
Intangible assets		$6,400
Goodwill		3,035
Total purchase price		$9,435

The Company recorded the acquisition using the acquisition method of accounting and recognized assets at their fair value as of the date of acquisition. The $6,400 of amortizable intangible assets consists of $6,180 in client relationships and $220 in a non-solicitation agreement. The fair value of the client relationships has been estimated using the excess earnings method, a form of the income approach, and cash flow projections. The non-solicitation agreement has been estimated using an avoided loss of income method, which is a form of the income approach. Goodwill will be amortized over a period of 15 years for income tax purposes. The total purchase price and allocation of the purchase price to assets acquired are provisional pending conclusion of the indemnification period and receipt of the final valuation report from a third party valuation expert.

The balance of the acquired intangibles, net of amortization, is stated separately on the consolidated balance sheet. Direct costs related to the acquisition were recorded as general and administrative expense as incurred.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Software Developed for Internal Use

12 Months Ended

Jun. 30, 2014

Software Developed for Internal Use

Software Developed for Internal Use

(6) Software Developed for Internal Use

Capitalized software and accumulated amortization were as follows:

	Year ended June 30,
	2013	2014
Internally developed software	$15,189	$19,863
Accumulated amortization	(12,575)	(14,770)
Capitalized software, net	$2,614	$5,093

There were no impairments to software developed for internal use in any of the periods covered in these financial statements. Amortization of capitalized internal-use software costs amounted to $2,727, $3,067 and $2,195 for the years ended June 30, 2012, 2013 and 2014, respectively and is included in Cost of Revenues—Recurring Revenues.

- Definition

The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

+ References + Details

Property and Equipment

12 Months Ended

Jun. 30, 2014

Property and Equipment

Property and Equipment

(7) Property and Equipment

The major classes of property and equipment are as follows as of June 30:

	Year ended June 30,
	2013	2014
Office equipment	$1,350	$1,449
Computer equipment	4,665	7,726
Furniture and fixtures	1,433	2,317
Automobiles	36	—
Software	3,791	4,963
Leasehold improvements	3,917	6,059
Time clocks rented by clients	1,649	2,360
	16,841	24,874
Accumulated depreciation and amortization	(8,255)	(11,749)
Property and equipment, net	$8,586	$13,125

There were no impairments to property and equipment in any of the periods covered in these financial statements. Depreciation expense amounted to $1,897, $2,504 and $4,061, for the years ended June 30, 2012, 2013 and 2014, respectively.

Goodwill and Intangible Assets

12 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets

Goodwill and Intangible Assets

(8) Goodwill and Intangible Assets

Goodwill represents the excess of cost over the net tangible and identifiable intangible assets of acquired businesses. Goodwill amounts are not amortized, but rather tested for impairment at least annually. Identifiable intangible assets acquired in business combinations are recorded based on fair value at the date of acquisition and amortized over their estimated useful lives. See Note 5 for further information regarding the acquisition completed in 2014.

The Company had $0 and $3,035 of goodwill recorded as of June 30, 2013 and 2014 respectively.

The Company’s amortizable intangible assets, before amortization expense, have estimated useful lives as follows:

	As of June 30, 2014	Weighted Average Useful Life
Client relationships	$6,180	9 years
Non-solicitation agreement	220	3 years
Total	6,400
Accumulated amortization	(80)
Intangible assets, net	$6,320

There was no amortization expense for acquired intangible assets for the years ended June 30, 2012 and 2013. Amortization expense for acquired intangible assets was $80 for the year ended June 30, 2014. Future amortization expense for acquired intangible is as follows, as of June 30, 2014:

Year ending June 30:
2015		$760
2016		760
2017		752
2018		687
2019		687
Thereafter		2,674
Total		$6,320

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accrued Expenses

12 Months Ended

Jun. 30, 2014

Accrued Expenses

Accrued Expenses

(9) Accrued Expenses

The components of accrued expenses are as follows:

	Year ended June 30,
	2013	2014
Accrued payroll and personnel costs	$5,549	$8,781
Reseller fees	259	6
Current portion of deferred rent	230	577
Other	756	1,380
Total Accrued Expenses	$6,794	$10,744

Leases

12 Months Ended

Jun. 30, 2014

Leases

Leases

(10) Leases

The Company leases office space in Illinois, California, Florida and New York under non-cancelable operating leases expiring on various dates from August 2014 through July 2022. The leases provide for increasing annual base rents and oblige the Company to fund proportionate share of operating expenses and, in certain cases, real estate taxes.

In July 2013, the Company leased sales office space in New York, New York, commencing in the first fiscal quarter of 2014. The Company extended this lease in the fourth fiscal quarter of 2014 through June 2015.

In June 2014, the Company leased approximately 6,000 square feet of additional office space at its headquarters in Arlington Heights, Illinois commencing in the third fiscal quarter of 2015 through July 2022. The lease calls for a phase of construction build-out with leasehold improvements to be amortized over the life of the lease. Upon the completion of the project, the Company receives a seven month rent holiday.

The Company leases various types of office and production related equipment under non-cancellable operating leases expiring on various dates from June 2015 through May 2019.

Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rental expense for operating leases, including amortization of leasehold improvements, was $1,519, $2,347 and $3,035 for the years ended June 30, 2012, 2013 and 2014, respectively.

Future minimum lease payments under non-cancellable operating leases (with initial or remaining lease terms in excess of one year) as of June 30, 2013 are:

Year ending June 30:
2015		$3,353
2016		3.549
2017		3,200
2018		3,117
2019		2,494
Later years, through 2023		1,637
Total minimum lease payments		$17,350

Line of Credit and Long-Term Debt

12 Months Ended

Jun. 30, 2014

Line of Credit and Long-Term Debt

Line of Credit and Long-Term Debt

(11) Line of Credit and Long-Term Debt

The Company maintained a line of credit agreement with a bank. Under this agreement, the Company had access of up to $2,500 of which $166 was earmarked for a letter of credit. Interest was payable monthly at the bank’s base rate (3.25% at June 30, 2013) plus 1.50%, with a floor of 5.50%. A commitment fee on the average daily undisbursed amount was assessed quarterly at a rate of 0.375% per anum. The line of credit was collateralized by all of the Company’s assets and a personal guarantee of a Company stockholder and was cross-collateralized to the Company’s note payable—bank (see below). The line of credit was due to expire on December 31, 2013, but it was increased to $3,500 and extended until December 31, 2015. The Company terminated the line of credit on March 31, 2014. There were no outstanding borrowings under this line of credit as of June 30, 2013.

Long-term debt at June 30, 2013 and 2014 consisted of the following:

	Year ended June 30,
	2013	2014

Note payable—bank	$1,563	—
Note payable—related parties	—	—
Total long-term debt	1,563	—
Less current installments	625	—
Long-term debt, excluding current installments	$938	—

The note payable—bank agreement called for payments of interest payable monthly at 6.50% with monthly principal payments in the amount of $52 commencing January 31, 2012 through maturity. The note was collateralized by substantially all of the Company assets and a personal guarantee of a Company stockholder. The note was cross-collateralized to the line of credit. The note was subject to certain prepayment penalties, as defined in the agreement. The Company repaid this note on March 31, 2014 as part of its intended use of IPO proceeds, and no prepayment penalties were assessed in accordance with the terms of the agreement. Interest expense related to this agreement was $175, $123 and $67 for the three years ended June 30, 2012, 2013 and 2014, respectfully.

In accordance with the terms of the line of credit and note payable—bank agreements, the Company was required to comply with certain financial and non-financial covenants. The Company was in compliance with all covenants for the year ended June 30, 2013.

The notes payable—related parties bore interest at 8.00%. Principal and interest were paid in full in March of 2013. The notes were unsecured and were subordinated to the line of credit and note payable—bank. Interest expense on these notes was $87 and $69 for the years ended June 30, 2012 and 2013, respectively.

Income Taxes

12 Months Ended

Jun. 30, 2014

Income Taxes

Income Taxes

(12) Income Taxes

(a) Income Taxes

Income tax (benefit) expense for the years ended June 30, 2012, 2013 and 2014 consists of the following:

	Year ended June 30,
	2012	2013	2014
Current taxes
U.S. federal	$12	$126	$(125)
State and local	34	94	39
Deferred taxes:
U.S. federal	738	(516)	160
State and local	100	(306)	181
Total income tax (benefit) expense	$884	$(602)	$255

(b) Tax Rate Reconciliation

Income tax (benefit) expense differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax income from continuing operations as a result of the following:

	Year ended June 30,
	2012	2013	2014
Income tax provision at statutory federal rate	$875	$6	$(2,331)
Increase (reduction) in income taxes resulting from:
Research and development credit, net of federal income tax benefit	(173)	(650)	(189)
Non-deductible expenses	25	53	284
Change in valuation allowance	—	—	2,878
State and local income taxes, net of federal income tax benefit	157	(11)	(387)
	$884	$(602)	$255

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30, 2013 and 2014 are presented below.

	Year ended June 30,
	2013	2014
Deferred tax assets:
Deferred rent	$438	$569
Allowance for doubtful accounts	46	48
Accrued expenses	583	761
Stock-based compensation	333	2,149
Net operating loss carryforwards	359	1,641
Research and development credit	832	1,116
AMT Credits	138	11
Intangible assets	—	5
Total deferred tax assets	2,729	6,300
Valuation allowance	—	(2,878)
Net deferred tax assets	2,729	3,422
Deferred tax liabilities:
Research and development costs	(1,024)	(1,950)
Prepaid expenses	(66)	(74)
Depreciation	(1,306)	(1,406)
Total deferred liabilities	(2,396)	(3,430)
Net deferred tax asset (liability)	$333	$(8)

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized through the generation of future taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. Taxable income (loss) for the years ended June 30, 2012, 2013 and 2014 was approximately $842, $1,941 and $(3,817), respectively, prior to utilization or establishment of net operating loss carryforwards. Based upon the same three year period pre-tax book income, the Company is in a three-year cumulative loss position. As a result of this and other assessments in the year ended June 30, 2014, management concluded that a full valuation allowance is required for all deferred tax assets and liabilities except for deferred tax liabilities associated with indefinite-lived intangible assets.

At June 30, 2014, the Company has net operating loss carryforwards for Federal income tax purposes of approximately $3,967 which are available to offset future Federal taxable income, if any, through 2034, excluding excess tax benefits from stock option exercises of approximately $331 which will be credited to additional paid-in capital when realized. The Company also has gross federal and state research and development tax credit carryforwards of approximately $1,116 which expire between 2017 and 2034. In addition, the Company has alternative minimum tax credit carryforwards of approximately $11, which are available to reduce future Federal regular income taxes, if any, over an indefinite period.

The Company had no unrecognized tax benefits as of June 30, 2012, 2013 and 2014, respectively.

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’s tax years ended June 30, 2008 to June 30, 2014 remain open for federal purposes. The Company’s tax returns filed in states in which it is required to do so remain open for a range of tax years including those ended June 30, 2008 to June 30, 2014 depending upon the jurisdiction and the applicable statute of limitations.

Stockholders' Equity (Deficit)	12 Months Ended
Stockholders' Equity (Deficit)	Jun. 30, 2014
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit)	(13) Stockholders’ Equity (Deficit) *Common Stock* Holders of common stock are entitled to one vote per share and to receive dividends. The holders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. Common stock was subordinate to the redeemable convertible preferred stock with respect to dividend rights and rights upon liquidation, winding up and dissolution of the Company.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Redeemable Convertible Preferred Stock	12 Months Ended
Redeemable Convertible Preferred Stock	Jun. 30, 2014
Redeemable Convertible Preferred Stock
Redeemable Convertible Preferred Stock	(14) Redeemable Convertible Preferred Stock Prior to its IPO, the Company had two series of Redeemable Convertible Preferred Stock, Series A and Series B. Upon the closing of the IPO, the Series A and Series B Redeemable Convertible Preferred Stock automatically converted into 11,933 shares of the Company’s $0.001 par value common stock.

Benefit Plans

12 Months Ended

Jun. 30, 2014

Benefit Plans

Benefit Plans

(15) 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 June 30, 2014, the Company had 2,581 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 audited consolidated statements of operations:

	Year ended June 30,
	2012	2013	2014
Cost of revenue - recurring	$—	$—	$496
Cost of revenue – non-recurring	—	—	424
Sales and marketing	—	—	765
Research and development	—	—	615
General and administrative	203	523	2,629
Total stock-based compensation	$203	$523	$4,929

In addition, the Company capitalized $325 of stock compensation costs in its internal use software in the year ended June 30, 2014. No such amounts were capitalized in internal use software in years ended June 30, 2012 and 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 years ended June 30:

	Year ended June 30,
	2012	2013	2014
Valuation assumptions:
Expected dividend yield	N/A—no grants	0%	0%
Expected volatility	N/A—no grants	30.7%	29.5% - 44.5%
Expected term (years)	N/A—no grants	4.0	4.0 - 6.0
Risk-free interest rate	N/A—no grants	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 June 30, 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	9.58
Options forfeited	53	(53)	17.00	—
Exercised	—	—	—	—
Balance at June 30, 2014	2,581	4,388	$10.00	8.58	$51,017
Options exercisable at June 30, 2014		1,083	$2.29	6.65	$20,947
Options vested and expected to vest at June 30, 2014		3,853	$10.17	8.53	$44,162

The weighted average grant date fair value of options granted during the years ended June 30, 2013 and 2014 was $1.22 and $6.39, respectively. There were no options granted in fiscal 2012. The total intrinsic value of options exercised during the years ended June 30, 2012 and 2013 was $241 and $87, respectively. There were no options exercised in the year ended June 30, 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, is based on the fair value of the instruments on the date of grant and is 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 June 30, 2014, there was $11,231 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 1.62 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 $514, $720 and $1,122 for the years ended June 30, 2012, 2013 and 2014, respectively.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Jun. 30, 2014
Commitments and Contingencies
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 minimum 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* From time to time, the Company is subject to litigation arising in the ordinary course of business. Many of these proceedings are covered in whole or in part by insurance. In the opinion of the Company’s management, the ultimate disposition of any matters currently outstanding or threatened will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity. (c) *Reseller Agreements* The Company had agreements with two resellers, one of which was terminated in March 2014. The initial term of the first reseller agreement commenced in February 2007 and was set to expire in February 2016 unless renewed. The initial term of the second reseller agreement commenced in June 2009 and is set to expire in June 2016 unless renewed. 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 provided 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 had 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 closed on the purchase of the reseller’s client base in May 2014. See Note 5 for further information. The Company paid the first reseller $1,693, $2,377 and $2,495 during fiscal years 2012, 2013 and 2014, respectively. The second reseller agreement provided 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 resellers assets to be acquired would be equal to 3.3 times the net revenues of the reseller for the 12 months preceding the termination effective date. The Company paid the second reseller $1,324, $1,783 and $2,081 during fiscal years 2012, 2013 and 2014, respectively.

Earnings Per Share

12 Months Ended

Jun. 30, 2014

Earnings Per Share

Earnings Per Share

(17) 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 income (loss) per share:

	Year ended June 30,
	2012	2013	2014
Basic net income (loss) per share:
Numerator:
Net Income (Loss)	$1,688	$617	$(7,110)
Less: Preferred dividend rights attributable to participating securities	(690)	(2,908)	(2,282)
Net income (loss) attributable to common stockholders	$998	$(2,291)	$(9,392)

Denominator:
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in thousands)	43,873	31,988	36,707
Weighted-average effect of potentially dilutive shares:
Employee stock options (in thousands)	444	—	—
Diluted (in thousands)	44,317	31,988	36,707
Net income (loss) per share attributable to common stockholders:
Basic	$0.02	$(0.07)	$(0.26)
Diluted	$0.02	$(0.07)	$(0.26)

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:

	Year ended June 30, 2014
	2012	2013	2014

Redeemable convertible preferred stock	—	11,933	—
Restricted stock units	—	—	102
Employee stock options	—	1,859	4,388
Total	—	13,792	4,490

Restricted Stock Awards were excluded from both basic and diluted earnings per share calculations for the years ended June 30, 2012 and 2013 as the vesting conditions had not been met.

Related Party Transactions	12 Months Ended
Related Party Transactions	Jun. 30, 2014
Related Party Transactions
Related Party Transactions	(18) Related Party Transactions Blue Marble The Company entered into a Memorandum of Understanding (“Memorandum”) and a Non-Competition and Non-Solicitation Agreement (“Non-Compete”) with its Chairman Steve Sarowitz and Blue Marble, a separate legal entity owned by Mr. Sarowitz, in June 2014. As stipulated in the Memorandum, Mr. Sarowitz resigned as an employee of Paylocity but continues to serve the Company as the non-executive Chairman of the board of directors. The Memorandum establishes the ongoing market based terms between the Company and Blue Marble for services provided to or on behalf of each other. In addition, Paylocity obtained a right of first refusal on the sale of Blue Marble, an option exercisable starting three years from the date of the Memorandum to purchase Blue Marble, and the right of first refusal to purchase any acquisition target of Blue Marble outside the United States of America, all at fair market value. The Memorandum requires Blue Marble to obtain written consent from Paylocity should Blue Marble intend to acquire an entity that provides or partners with other service providers to provide products and services to clients located in the United States of America. The Company provides no management guidance to the entity, has 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. The Non-Compete agreement outlines the permissible activities and ongoing responsibilities of Mr. Sarowitz and Blue Marble including an obligation not to compete with services offered by Paylocity and an obligation not to solicit employees of Paylocity. Elite Sales The Company purchased sales leads from an entity owned by one of the stockholders in the amount of approximately $404, $893 and $231 for the years ended June 30, 2012, 2013 and 2014, respectively. The Company provided no management guidance to the entity and had no equity interest in the entity, had no obligation or intention to fund any of the entity’s operational shortfalls, and had no right to any operational surpluses generated by the entity. Accounts payable to this entity were approximately $65 and $0 as of June 30, 2013 and 2014, respectively. On October 14, 2013, the Company hired substantially all of the employees of the sales lead generation entity described above. Principal Stockholder Contribution for Cash Bonuses In May 2014, the Company’s Chairman paid approximately $1,052 to the Company for the express purpose of paying a cash bonus to long-term employees in recognition of their past service. The Company recorded a capital contribution to additional paid-in capital for the amount received from the Chairman and compensation expense for the amount paid to employees, accordingly. The Company paid the employer portion of employment taxes and will receive any income tax related benefits from the payments to employees and resulting taxes.

- 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	12 Months Ended
Subsequent Events	Jun. 30, 2014
Subsequent Events
Subsequent Events	(19) Subsequent Events The Company has evaluated subsequent events from the balance sheet date through August 22, 2014, the date at which the financial statements were available to be issued. In August 2014, the Board of Directors granted restricted stock units for 340,875 shares of common stock which vest annually over four years and stock options to purchase 321,700 shares of commons stock at a weighted-average exercise price of $24.80 per share which vest over four years.

Selected Quarterly Financial Data (unaudited)

12 Months Ended

Jun. 30, 2014

Selected Quarterly Financial Data (unaudited)

Selected Quarterly Financial Data (unaudited)

(20) Selected Quarterly Financial Data (unaudited)

The following tables set forth selected unaudited quarterly statements of operations data for each of the eight quarters in the years ended June 30, 2013 and 2014.

	Quarter Ended
	September 30, 2012	December 31, 2012	March 31, 2013	June 30, 2013
Consolidated States of Operations Data
Revenues	$15,826	$17,200	$24,006	$20,262
Gross profit	$7,307	$7,663	$13,272	$9,386
Operating income (loss)	$(616)	$(1,088)	$2,604	$(869)
Net income (loss)	$(405)	$(627)	$2,021	$(372)
Net income (loss) per share attributable to common stockholders, basic and diluted:	$(0.04)	$(0.04)	$0.03	$(0.03)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic	31,988	31,988	43,921	31,988
Diluted	31,988	31,988	44,407	31,988




	Quarter Ended
	September 30, 2013	December 31, 2013	March 31, 2014	June 30, 2014
Consolidated States of Operations Data
Revenues	$22,369	$23,905	$33,766	$28,647
Gross profit	$10,622	$10,587	$18,841	$13,543
Operating income (loss)	$(434)	$(2,411)	$2,133	$(6,306)
Net income (loss)	$(44)	$(1,512)	$1,150	$(6,704)
Net income (loss) per share attributable to common stockholders, basic and diluted:	$(0.03)	$(0.07)	$0.01	(0.14)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic	31,988	31,988	44,360	49,564
Diluted	31,988	31,988	44,870	49,564

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2014

Summary of Significant Accounting Policies

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”).

Concentrations of Risk

(b) Concentrations of Risk

Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Accounts Receivable

(d) Accounts Receivable

Activity in the allowance for doubtful accounts was as follows:

	For the Years Ended June 30,
	2012	2013	2014
Balance at the beginning of the year	$80	$114	$118
Charged to expense	60	60	62
Write-offs	(26)	(56)	(54)
Balance at the end of the year	$114	$118	$126

Prepaid expenses and other assets

(e) Prepaid expenses and other assets

Prepaid expenses and other current assets consist of office space security deposits, deposits with vendors, prepaid licensing fees, supplies, and time clocks available for sale or lease.

Property and Equipment and Long-Lived Assets

(f) Property and Equipment and Long-Lived Assets

Internal-Use Software

(g) Internal-Use Software

Goodwill and other intangible assets, net of accumulated amortization

(h) Goodwill and other intangible assets, net of accumulated amortization

Deferred Rent

(i) Deferred Rent

Income Taxes

(j) Income Taxes

Revenue Recognition

(k) Revenue Recognition

· Time and attendance reporting services, including time clock rentals, delivered on a monthly basis, and

· Cloud-based HR software solutions, including employee administration and benefits enrollment and administration, delivered on a monthly basis.

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.

Cost of Revenues

(l) Cost of Revenues

Advertising

(m) Advertising

Advertising costs are expensed as incurred. Advertising costs amounted to $32, $27 and $24 for the years ended June 30, 2012, 2013 and 2014, respectively.

Equity Incentive Plan

(n) Equity Incentive Plan

Commitments and Contingencies

(o) Commitments and Contingencies

Segment Information

(p) Segment Information

Recently Issued Accounting Standards

(q) Recently Issued Accounting Standards

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2014

Summary of Significant Accounting Policies

Schedule of activity in allowance for doubtful accounts

	For the Years Ended June 30,
	2012	2013	2014
Balance at the beginning of the year	$80	$114	$118
Charged to expense	60	60	62
Write-offs	(26)	(56)	(54)
Balance at the end of the year	$114	$118	$126

Business Combinations (Tables)

12 Months Ended

Jun. 30, 2014

Business Combinations

Summary of provisional fair value of the assets acquired at the date of acquisition

		At May 23, 2014
Intangible assets		$6,400
Goodwill		3,035
Total purchase price		$9,435

Software Developed for Internal Use (Tables)

12 Months Ended

Jun. 30, 2014

Software Developed for Internal Use

Schedule of capitalized software and accumulated amortization

	Year ended June 30,
	2013	2014
Internally developed software	$15,189	$19,863
Accumulated amortization	(12,575)	(14,770)
Capitalized software, net	$2,614	$5,093

Property and Equipment (Tables)

12 Months Ended

Jun. 30, 2014

Property and Equipment

Schedule of major classes of property and equipment

	Year ended June 30,
	2013	2014
Office equipment	$1,350	$1,449
Computer equipment	4,665	7,726
Furniture and fixtures	1,433	2,317
Automobiles	36	—
Software	3,791	4,963
Leasehold improvements	3,917	6,059
Time clocks rented by clients	1,649	2,360
	16,841	24,874
Accumulated depreciation and amortization	(8,255)	(11,749)
Property and equipment, net	$8,586	$13,125

Goodwill and Intangible Assets (Table)

12 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets

Schedule of amortizable intangible assets before amortization expense

	As of June 30, 2014	Weighted Average Useful Life
Client relationships	$6,180	9 years
Non-solicitation agreement	220	3 years
Total	6,400
Accumulated amortization	(80)
Intangible assets, net	$6,320

Schedule of future amortization expense for acquired intangible

Year ending June 30:
2015		$760
2016		760
2017		752
2018		687
2019		687
Thereafter		2,674
Total		$6,320

Accrued Expenses (Tables)

12 Months Ended

Jun. 30, 2014

Accrued Expenses

Schedule of components of accrued expenses

	Year ended June 30,
	2013	2014
Accrued payroll and personnel costs	$5,549	$8,781
Reseller fees	259	6
Current portion of deferred rent	230	577
Other	756	1,380
Total Accrued Expenses	$6,794	$10,744

Leases (Tables)

12 Months Ended

Jun. 30, 2014

Leases

Schedule of future minimum lease payments under non-cancellable operating leases

Year ending June 30:
2015		$3,353
2016		3.549
2017		3,200
2018		3,117
2019		2,494
Later years, through 2023		1,637
Total minimum lease payments		$17,350

Line of Credit and Long-Term Debt (Tables)

12 Months Ended

Jun. 30, 2014

Line of Credit and Long-Term Debt

Schedule of long-term debt

	Year ended June 30,
	2013	2014

Note payable—bank	$1,563	—
Note payable—related parties	—	—
Total long-term debt	1,563	—
Less current installments	625	—
Long-term debt, excluding current installments	$938	—

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Income Taxes

Schedule of income tax (benefit) expense

	Year ended June 30,
	2012	2013	2014
Current taxes
U.S. federal	$12	$126	$(125)
State and local	34	94	39
Deferred taxes:
U.S. federal	738	(516)	160
State and local	100	(306)	181
Total income tax (benefit) expense	$884	$(602)	$255

Schedule of tax rate reconciliation by applying the U.S. federal income tax rate to pretax income from continuing operations

	Year ended June 30,
	2012	2013	2014
Income tax provision at statutory federal rate	$875	$6	$(2,331)
Increase (reduction) in income taxes resulting from:
Research and development credit, net of federal income tax benefit	(173)	(650)	(189)
Non-deductible expenses	25	53	284
Change in valuation allowance	—	—	2,878
State and local income taxes, net of federal income tax benefit	157	(11)	(387)
	$884	$(602)	$255

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities

	Year ended June 30,
	2013	2014
Deferred tax assets:
Deferred rent	$438	$569
Allowance for doubtful accounts	46	48
Accrued expenses	583	761
Stock-based compensation	333	2,149
Net operating loss carryforwards	359	1,641
Research and development credit	832	1,116
AMT Credits	138	11
Intangible assets	—	5
Total deferred tax assets	2,729	6,300
Valuation allowance	—	(2,878)
Net deferred tax assets	2,729	3,422
Deferred tax liabilities:
Research and development costs	(1,024)	(1,950)
Prepaid expenses	(66)	(74)
Depreciation	(1,306)	(1,406)
Total deferred liabilities	(2,396)	(3,430)
Net deferred tax asset (liability)	$333	$(8)

Benefit Plans (Tables)

12 Months Ended

Jun. 30, 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")

	Year ended June 30,
	2012	2013	2014
Cost of revenue - recurring	$—	$—	$496
Cost of revenue – non-recurring	—	—	424
Sales and marketing	—	—	765
Research and development	—	—	615
General and administrative	203	523	2,629
Total stock-based compensation	$203	$523	$4,929

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

	Year ended June 30,
	2012	2013	2014
Valuation assumptions:
Expected dividend yield	N/A—no grants	0%	0%
Expected volatility	N/A—no grants	30.7%	29.5% - 44.5%
Expected term (years)	N/A—no grants	4.0	4.0 - 6.0
Risk-free interest rate	N/A—no grants	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 June 30, 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	9.58
Options forfeited	53	(53)	17.00	—
Exercised	—	—	—	—
Balance at June 30, 2014	2,581	4,388	$10.00	8.58	$51,017
Options exercisable at June 30, 2014		1,083	$2.29	6.65	$20,947
Options vested and expected to vest at June 30, 2014		3,853	$10.17	8.53	$44,162

Earnings Per Share (Tables)

12 Months Ended

Jun. 30, 2014

Earnings Per Share

Schedule of calculation of basic and diluted net income (loss) per share

	Year ended June 30,
	2012	2013	2014
Basic net income (loss) per share:
Numerator:
Net Income (Loss)	$1,688	$617	$(7,110)
Less: Preferred dividend rights attributable to participating securities	(690)	(2,908)	(2,282)
Net income (loss) attributable to common stockholders	$998	$(2,291)	$(9,392)

Denominator:
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in thousands)	43,873	31,988	36,707
Weighted-average effect of potentially dilutive shares:
Employee stock options (in thousands)	444	—	—
Diluted (in thousands)	44,317	31,988	36,707
Net income (loss) per share attributable to common stockholders:
Basic	$0.02	$(0.07)	$(0.26)
Diluted	$0.02	$(0.07)	$(0.26)

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

	Year ended June 30, 2014
	2012	2013	2014

Redeemable convertible preferred stock	—	11,933	—
Restricted stock units	—	—	102
Employee stock options	—	1,859	4,388
Total	—	13,792	4,490

Selected Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Jun. 30, 2014

Selected Quarterly Financial Data (unaudited)

Schedule of selected unaudited quarterly statements of operations data

	Quarter Ended
	September 30, 2012	December 31, 2012	March 31, 2013	June 30, 2013
Consolidated States of Operations Data
Revenues	$15,826	$17,200	$24,006	$20,262
Gross profit	$7,307	$7,663	$13,272	$9,386
Operating income (loss)	$(616)	$(1,088)	$2,604	$(869)
Net income (loss)	$(405)	$(627)	$2,021	$(372)
Net income (loss) per share attributable to common stockholders, basic and diluted:	$(0.04)	$(0.04)	$0.03	$(0.03)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic	31,988	31,988	43,921	31,988
Diluted	31,988	31,988	44,407	31,988




	Quarter Ended
	September 30, 2013	December 31, 2013	March 31, 2014	June 30, 2014
Consolidated States of Operations Data
Revenues	$22,369	$23,905	$33,766	$28,647
Gross profit	$10,622	$10,587	$18,841	$13,543
Operating income (loss)	$(434)	$(2,411)	$2,133	$(6,306)
Net income (loss)	$(44)	$(1,512)	$1,150	$(6,704)
Net income (loss) per share attributable to common stockholders, basic and diluted:	$(0.03)	$(0.07)	$0.01	(0.14)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic	31,988	31,988	44,360	49,564
Diluted	31,988	31,988	44,870	49,564

Organization and Description of Business (Details) $ / shares in Units, shares in Thousands, $ in Thousands		1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 24, 2014 shares	Mar. 31, 2014 USD ($) $ / shares shares	Mar. 31, 2014 $ / shares shares	Jun. 30, 2014 USD ($) $ / shares 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 dollars per share) \| $ / shares		$ 17.00	$ 17.00
Net proceeds after deducting underwriting discounts and commissions and other offering expenses \| $				$ 81,927
Number of shares issued on conversion of outstanding redeemable convertible preferred stock	11,933
Common stock, par value (in dollars per share) \| $ / shares				$ 0.001	$ 0.001
Common stock
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 \| $				$ 6
Number of shares issued on conversion of outstanding redeemable convertible preferred stock				11,933
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 \| $		$ 81,927
Underwriting discounts and commissions \| $		6,387
Other offering expenses \| $		$ 2,925
Number of shares issued on conversion of outstanding redeemable convertible preferred stock			11,933
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001	$ 0.001
Existing shareholders
Initial public offering
Number of shares of common stock issued and sold		2,735

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Accounts Receivable
Minimum number of days past due before a balance will be reviewed for collectability	60 days
Activity in the allowance for doubtful accounts
Balance at the beginning of the year	$ 118	$ 114	$ 80
Charged to expense	62	60	60
Write-offs	(54)	(56)	(26)
Balance at the end of the year	$ 126	$ 118	$ 114
Total Revenue \| Clients
Concentrations of Risk
Concentration of risk (as a percent)	100.00%

Summary of Significant Accounting Policies (Details 2)	12 Months Ended
Summary of Significant Accounting Policies (Details 2)	Jun. 30, 2014
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 Accounting Policies (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Revenue Recognition
Period of notice days given for cancellation of agreement	60 days
Advertising
Advertising costs	$ 24	$ 27	$ 32
Equity Incentive Plan
Total excess income tax benefits recognized for stock based compensation arrangements	$ 0	$ 63	$ 206
Client relationships
Goodwill and other intangible assets, net of accumulated amortization
Estimated useful lives	9 years
Non-solicitation agreement
Goodwill and other intangible assets, net of accumulated amortization
Estimated useful lives	3 years
Minimum \| Internal-Use Software
Goodwill and other intangible assets, net of accumulated amortization
Estimated useful lives	18 months
Maximum \| Internal-Use Software
Goodwill and other intangible assets, net of accumulated amortization
Estimated useful lives	24 months

Funds Held for Clients and Client Fund Obligations (Details)	12 Months Ended
	Jun. 30, 2014
Funds Held for Clients and Client Fund Obligations
Period of repayment of client fund obligation liabilities	1 year

Business Combinations (Details) $ in Thousands		12 Months Ended
Business Combinations (Details) $ in Thousands	May 23, 2014 USD ($) item	Jun. 30, 2014 USD ($)
Business Combinations
Purchase price paid		$ 6,450
Goodwill		$ 3,035
Goodwill amortization period		15 years
BFKMS Inc.
Business Combinations
Total consideration	$ 9,435
Purchase price paid		$ 6,450
Number of payments \| item	4
Purchase price to be paid in July 2014	$ 2,385
Purchase price to be paid in November 2014 and February 2014	600
Intangible assets	6,400
Goodwill	3,035
Total purchase price	9,435
BFKMS Inc. \| Client relationships
Business Combinations
Intangible assets	6,180
BFKMS Inc. \| Non-solicitation agreement
Business Combinations
Intangible assets	$ 220

Software Developed for Internal Use (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Capitalized software and accumulated amortization
Internally developed software	$ 19,863	$ 15,189
Accumulated amortization	(14,770)	(12,575)
Capitalized software, net	5,093	2,614
Impairments to software developed for internal use	0
Amortization of capitalized internal-use software costs	$ 2,195	$ 3,067	$ 2,727

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Property and equipment
Property and equipment, gross	$ 24,874	$ 16,841
Accumulated depreciation and amortization	(11,749)	(8,255)
Property and equipment, net	13,125	8,586
Depreciation expense	4,061	2,504	$ 1,897
Office equipment
Property and equipment
Property and equipment, gross	1,449	1,350
Computer equipment
Property and equipment
Property and equipment, gross	7,726	4,665
Furniture and fixtures
Property and equipment
Property and equipment, gross	2,317	1,433
Automobiles
Property and equipment
Property and equipment, gross		36
Software
Property and equipment
Property and equipment, gross	4,963	3,791
Leasehold improvements
Property and equipment
Property and equipment, gross	6,059	3,917
Time clocks rented by clients
Property and equipment
Property and equipment, gross	2,360	$ 1,649
Property and equipment
Property and equipment
Impairments to property and equipment	$ 0

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Goodwill and Intangible Assets
Goodwill	$ 3,035
Total intangible assets	6,400
Accumulated amortization	(80)
Intangible assets, net	6,320
Amortization expense for acquired intangible assets	80	$ 0	$ 0
Future amortization expense for acquired intangible
2015	760
2016	760
2017	752
2018	687
2019	687
Thereafter	2,674
Intangible assets, net	6,320
Client relationships
Goodwill and Intangible Assets
Total intangible assets	$ 6,180
Weighted Average Useful Life	9 years
Non-solicitation agreement
Goodwill and Intangible Assets
Total intangible assets	$ 220
Weighted Average Useful Life	3 years

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013
Components of accrued expenses
Accrued payroll and personnel costs	$ 8,781	$ 5,549
Reseller fees	6	259
Current portion of deferred rent	577	230
Other	1,380	756
Total Accrued Expenses	$ 10,744	$ 6,794

Leases (Details) $ in Thousands	12 Months Ended
Leases (Details) $ in Thousands	Jun. 30, 2014 USD ($) ft²	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)
Leases
Area of office space leased (in square feet) \| ft²	6,000
Rent holiday period	7 months
Rental expense for operating leases	$ 3,035	$ 2,347	$ 1,519
Future minimum lease payments under non-cancellable operating leases
2015	3,353
2016	3,549
2017	3,200
2018	3,117
2019	2,494
Later years, through 2023	1,637
Total minimum lease payments	$ 17,350

Line of Credit and Long-Term Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Line of Credit and Long-Term Debt
Total long-term debt		$ 1,563
Less current installments		625
Long-term debt, excluding current installments		938
Note payable-bank
Line of Credit and Long-Term Debt
Total long-term debt		1,563
Interest rate on notes payable (as a percent)	6.50%
Principal payment	$ 52
Interest expense on notes	$ 67	123	$ 175
Note payable-related parties
Line of Credit and Long-Term Debt
Interest rate on notes payable (as a percent)	8.00%
Interest expense on notes		69	$ 87
Line of credit
Line of Credit and Long-Term Debt
Maximum borrowing capacity	$ 2,500
Commitment fee (as a percent)	0.375%
Increased maximum borrowing capacity	$ 3,500
Amount of outstanding line of credit		$ 0
Prepayment penalties on repayment of debt	$ 0
Line of credit \| Base rate
Line of Credit and Long-Term Debt
Variable rate basis	base rate
Interest rate at period end (as a percent)		3.25%
Basis spread on variable rate (as a percent)	1.50%
Floor interest rate (as a percent)	5.50%
Letter of credit
Line of Credit and Long-Term Debt
Maximum borrowing capacity	$ 166

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Current taxes
U.S. federal	$ (125)	$ 126	$ 12
State and local	39	94	34
Deferred taxes:
U.S. federal	160	(516)	738
State and local	181	(306)	100
Total income tax (benefit) expense	$ 255	(602)	884
Tax Rate Reconciliation
U.S. federal income tax rate (as a percent)	34.00%
Income tax provision at statutory federal rate	$ (2,331)	6	875
Increase (reduction) in income taxes resulting from:
Research and development credit, net of federal income tax benefit	(189)	(650)	(173)
Non-deductible expenses	284	53	25
Change in valuation allowance	2,878
State and local income taxes, net of federal income tax benefit	(387)	(11)	157
Total income tax (benefit) expense	255	(602)	884
Deferred tax assets:
Deferred rent	569	438
Allowance for doubtful accounts	48	46
Accrued expenses	761	583
Stock-based compensation	2,149	333
Net operating loss carryforwards	1,641	359
Research and development credit	1,116	832
AMT Credits	11	138
Intangible assets	5
Total deferred tax assets	6,300	2,729
Valuation allowance	(2,878)
Net deferred tax assets	3,422	2,729
Deferred tax liabilities:
Research and development costs	(1,950)	(1,024)
Prepaid expenses	(74)	(66)
Depreciation	(1,406)	(1,306)
Total deferred liabilities	(3,430)	(2,396)
Net deferred tax asset (liability)	(8)	333
Taxable income(loss)	(3,817)	1,941	842
Net operating loss carryforwards for Federal income tax	$ 3,967
Period of cumulative loss position	3 years
Excess tax benefits from exercise of stock options	$ 331
Operating Loss Carryforwards
Unrecognized tax benefits	0	$ 0	$ 0
Research and development tax
Operating Loss Carryforwards
Tax credit carryforwards	1,116
Alternative minimum tax
Operating Loss Carryforwards
Tax credit carryforwards	$ 11

Stockholders' Equity (Deficit) Details)	1 Months Ended
Stockholders' Equity (Deficit) Details)	Mar. 31, 2014 item
Common stock
Stockholders' Equity (Deficit)
Number of common stock vote per share	1

Redeemable Convertible Preferred Stock (Details) shares in Thousands			3 Months Ended	12 Months Ended
	Mar. 24, 2014 shares	Feb. 28, 2014 item	Mar. 31, 2014 $ / shares shares	Jun. 30, 2014 $ / shares shares	Jun. 30, 2013 $ / shares
Redeemable Convertible Preferred Stock
Number of series of redeemable convertible preferred stock \| item		2
Number of shares issued on conversion of series A and series B redeemable convertible preferred stock	11,933
Common stock, par value (in dollars per share) \| $ / shares				$ 0.001	$ 0.001
IPO
Redeemable Convertible Preferred Stock
Number of shares issued on conversion of series A and series B redeemable convertible preferred stock			11,933
Common stock, par value (in dollars per share) \| $ / shares			$ 0.001
Series A redeemable convertible preferred stock
Redeemable Convertible Preferred Stock
Number of shares issued on conversion of series A and series B redeemable convertible preferred stock				(9,500)
Series B redeemable convertible preferred stock
Redeemable Convertible Preferred Stock
Number of shares issued on conversion of series A and series B redeemable convertible preferred stock				(8,400)

Benefit Plans (Details) - shares shares in Thousands	1 Months Ended	12 Months Ended
Benefit Plans (Details) - shares shares in Thousands	Mar. 31, 2014	Jun. 30, 2014
Benefit Plans
Number of shares of common stock reserved for issuance		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		2,581
2008 Plan
Benefit Plans
Awards issued (in shares)	0

Benefit Plans (Details 2) - USD ($) $ in Thousands	12 Months Ended
Benefit Plans (Details 2) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Benefit Plans
Total stock-based compensation expense	$ 4,929	$ 523	$ 203
Stock compensation costs capitalized	325	0	0
Cost of revenue - recurring
Benefit Plans
Total stock-based compensation expense	496
Cost of revenue - non-recurring
Benefit Plans
Total stock-based compensation expense	424
Sales and marketing
Benefit Plans
Total stock-based compensation expense	765
Research and development
Benefit Plans
Total stock-based compensation expense	615
General and administrative
Benefit Plans
Total stock-based compensation expense	$ 2,629	$ 523	$ 203

Benefit Plans (Details 3) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2014	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Feb. 28, 2014
Aggregate intrinsic value
Total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option and restricted stock awards		$ 11,231
Weighted average period to recognize unrecognized compensation cost		1 year 7 months 13 days
Compensation expense (in dollars)		$ 4,929	$ 523	$ 203
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
RSU's granted (in shares)		(108)
Options granted (in shares)		(2,582)		0
Options forfeited (in shares)		53
Balance at the end of the period (in shares)		2,581	812
Number of shares
Balance at the beginning of the period (in shares)		1,859
Options granted (in shares)		2,582		0
Options forfeited (in shares)		(53)
Balance at the end of the period (in shares)		4,388	1,859
Options exercisable at the end of the period (in shares)		1,083
Options vested and expected to vest at the end of the period (in shares)		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
Options forfeited (in dollars per share)		17.00
Balance at the end of the period (in dollars per share)		10.00	$ 3.25
Options exercisable at the end of the period (in dollars per share)		2.29
Options vested and expected to vest at the end of the period (in dollars per share)		$ 10.17
Weighted average remaining contractual term
Options granted		9 years 6 months 29 days
Balance at the end of the period		8 years 6 months 29 days	8 years 2 months 19 days
Options exercisable at the end of the period		6 years 7 months 24 days
Options vested and expected to vest at the end of the period		8 years 6 months 11 days
Aggregate intrinsic value
Balance at the end of the period (in dollars)		$ 51,017	$ 7,028
Options exercisable at the end of the period (in dollars)		20,947
Options vested and expected to vest at the end of the period		$ 44,162
Weighted average grant date fair value of options granted (in dollars per share)		$ 6.39	$ 1.22	$ 0.00
Total intrinsic value of options exercised		$ 0	$ 87	$ 241
Awards granted (in shares)		108
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
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	12 Months Ended
Benefit Plans (Details 4) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
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	$ 1,122	$ 720	$ 514

Commitments and Contingencies (Details) $ in Thousands	12 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2014 USD ($) item	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)
Commitments and Contingencies
Number of reseller \| item	2
Number of agreements terminated \| item	1
First reseller agreement
Reseller agreements
Amount paid to reseller \| $	$ 2,495	$ 2,377	$ 1,693
Second reseller agreement
Reseller agreements
Amount paid to reseller \| $	$ 2,081	$ 1,783	$ 1,324
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 resellers assets as multiplier of net revenues of reseller for 12 months preceding termination effective date	3.3
Period considered for multiplier of annual revenues to calculate purchase price of assets	12 months

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended								12 Months Ended
	Mar. 24, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share
Number of shares of common stock issued on automatic conversion of outstanding preferred stock	11,933
Numerator:
Net income (loss)		$ (6,704)	$ 1,150	$ (1,512)	$ (44)	$ (372)	$ 2,021	$ (627)	$ (405)	$ (7,110)	$ 617	$ 1,688
Less: Preferred dividend rights attributable to participating securities										(2,282)	(2,908)	(690)
Net income (loss) attributable to common stockholders										$ (9,392)	$ (2,291)	$ 998
Weighted average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)		49,564	44,360	31,988	31,988	31,988	43,921	31,988	31,988	36,707	31,988	43,873
Weighted-average effect of potentially dilutive shares:
Employee stock options (in shares)												444
Diluted (in shares)		49,564	44,870	31,988	31,988	31,988	44,407	31,988	31,988	36,707	31,988	44,317
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)										$ (0.26)	$ (0.07)	$ 0.02
Diluted (in dollars per share)										$ (0.26)	$ (0.07)	$ 0.02
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)										4,490	13,792
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)										4,388	1,859

Related Party Transactions (Details) $ in Thousands	1 Months Ended	12 Months Ended
Related Party Transactions (Details) $ in Thousands	May 31, 2014 USD ($)	Jun. 30, 2014 USD ($) item	Jun. 30, 2013 USD ($) item	Jun. 30, 2012 USD ($) item
Related party transactions
Amount received from related party for cash bonus to long-term employees		$ 1,052
Blue Marble
Related party transactions
Duration for right of first refusal option exercisable from the date of the Memorandum		3 years
Equity interest (as a percent)		0.00%
Obligation to fund operational shortfalls		$ 0
Elite Sales
Related party transactions
Equity interest (as a percent)		0.00%
Obligation to fund operational shortfalls		$ 0
Number of stockholders owned sales leads supply entities \| item		1	1	1
Amount of sales leads purchased		$ 231	$ 893	$ 404
Accounts payable due		$ 0	$ 65
Chairman
Related party transactions
Amount received from related party for cash bonus to long-term employees	$ 1,052

Subsequent events (Details) - $ / shares shares in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2014	Jun. 30, 2014	Jun. 30, 2012
RSUs \| Subsequent event
Subsequent events
RSU's granted (in shares)	340,875
Vesting period	4 years
Stock options
Subsequent events
RSU's granted (in shares)		108
Options granted (in shares)		2,582	0
Options granted (in dollars per share)		$ 15.01
Stock options \| Subsequent event
Subsequent events
Vesting period	4 years
Options granted (in shares)	321,700
Options granted (in dollars per share)	$ 24.80

Selected Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Consolidated States of Operations Data
Revenues	$ 28,647	$ 33,766	$ 23,905	$ 22,369	$ 20,262	$ 24,006	$ 17,200	$ 15,826	$ 108,687	$ 77,294	$ 55,096
Gross profit	13,543	18,841	10,587	10,622	9,386	13,272	7,663	7,307	53,593	37,628	26,002
Operating income (loss)	(6,306)	2,133	(2,411)	(434)	(869)	2,604	(1,088)	(616)	(7,018)	31	2,768
Net income (loss)	$ (6,704)	$ 1,150	$ (1,512)	$ (44)	$ (372)	$ 2,021	$ (627)	$ (405)	$ (7,110)	$ 617	$ 1,688
Net income (loss) per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.14)	$ 0.01	$ (0.07)	$ (0.03)	$ (0.03)	$ 0.03	$ (0.04)	$ (0.04)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)	49,564	44,360	31,988	31,988	31,988	43,921	31,988	31,988	36,707	31,988	43,873
Diluted (in shares)	49,564	44,870	31,988	31,988	31,988	44,407	31,988	31,988	36,707	31,988	44,317

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details