0001104659-14-078241 | 10-Q | XBRL Viewer

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 30, 2014	Nov. 03, 2014
Document and Entity Information
Entity Registrant Name	Paylocity Holding Corp
Entity Central Index Key	0001591698
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		49,587,902
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2014	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$ 72,843	$ 78,848
Accounts receivable, net	799	756
Prepaid expenses and other	3,072	2,694
Deferred income tax assets, net	706	706
Total current assets before funds held for clients	77,420	83,004
Funds held for clients	432,225	417,261
Total current assets	509,645	500,265
Long-term prepaid expenses	303	313
Capitalized software, net	5,574	5,093
Property and equipment, net	14,038	13,125
Intangible assets, net	6,130	6,320
Goodwill	3,035	3,035
Total assets	538,725	528,151
Current liabilities:
Accounts payable	1,520	2,133
Taxes payable	10	5
Consideration related to acquisition	600	2,985
Accrued expenses	10,777	10,744
Total current liabilities before client fund obligations	12,907	15,867
Client fund obligations	432,225	417,261
Total current liabilities	445,132	433,128
Deferred rent	3,089	3,175
Deferred income tax liabilities, net	734	714
Total liabilities	448,955	437,017
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued and outstanding at June 30, 2014 and September 30, 2014
Common stock, $0.001 par value, 155,000 shares authorized at June 30, and September 30, 2014, 49,564 shares issued and outstanding at June 30, 2014; and 49,577 shares issued and outstanding at September 30, 2014	50	50
Additional paid-in capital	128,766	125,255
Accumulated deficit	(39,046)	(34,171)
Total stockholders' equity	89,770	91,134
Total liabilities and stockholders' equity	$ 538,725	$ 528,151

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2014	Jun. 30, 2014
Consolidated Balance Sheets
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	155,000	155,000
Common Stock, shares issued	49,577	49,564
Common Stock, shares outstanding	49,577	49,564
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	5,000	5,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Revenues:
Recurring fees	$ 29,142	$ 20,738
Interest income on funds held for clients	363	353
Total recurring revenues	29,505	21,091
Implementation services and other	1,604	1,278
Total revenues	31,109	22,369
Cost of revenues:
Recurring revenues	10,057	7,993
Implementation services and other	5,395	3,754
Total cost of revenues	15,452	11,747
Gross profit	15,657	10,622
Operating expenses:
Sales and marketing	9,078	5,189
Research and development	4,027	1,956
General and administrative	7,448	3,911
Total operating expenses	20,553	11,056
Operating loss	(4,896)	(434)
Other income (expense)	49	28
Loss before income taxes	(4,847)	(406)
Income tax (expense) benefit	(28)	362
Net loss	(4,875)	(44)
Net loss attributable to common stockholders	$ (4,875)	$ (825)
Net loss per share attributable to common stockholders, basic and diluted	$ (0.10)	$ (0.03)
Weighted average number of shares of common stock used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	49,566	31,988

Consolidated Statements of Changes in Stockholders' Equity (Deficit) - 3 months ended Sep. 30, 2014 - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Jun. 30, 2014	$ 50	$ 125,255	$ (34,171)	$ 91,134
Balance (in shares) at Jun. 30, 2014	49,564			49,564
Increase (Decrease) in Stockholders' Equity
Stock compensation expense		3,445		$ 3,445
Stock options exercised		66		66
Stock options exercised(in shares)	13
Net loss			(4,875)	(4,875)
Balance at Sep. 30, 2014	$ 50	$ 128,766	$ (39,046)	$ 89,770
Balance (in shares) at Sep. 30, 2014	49,577			49,577

- Definition

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

+ References + Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net loss	$ (4,875)	$ (44)
Adjustments to reconcile to net cash provided by operating activities:
Stock-based compensation	3,283	181
Depreciation and amortization	1,931	1,391
Deferred income tax (benefit) expense	20	(361)
Provision for doubtful accounts	42	15
Loss on disposal of equipment	30
Changes in operating assets and liabilities:
Accounts receivable	(85)	(94)
Prepaid expenses	(368)	(695)
Trade accounts payable	(245)	172
Accrued expenses	67	(267)
Net cash provided by (used in) operating activities	(200)	298
Cash flows from investing activities:
Capitalized internally developed software costs	(912)	(1,024)
Purchases of property and equipment	(2,499)	(1,412)
Payments for acquisition	(2,385)
Net change in funds held for clients	(14,964)	64,346
Net cash provided by (used in) investing activities	(20,760)	61,910
Cash flows from financing activities:
Net change in client funds obligation	14,964	(64,346)
Payments on initial public offering costs	(75)
Proceeds from exercise of stock options	66
Principal payments on long-term debt		(157)
Net cash (used in) provided by financing activities	14,955	(64,503)
Net Change in Cash and Cash Equivalents	(6,005)	(2,295)
Cash and Cash Equivalents-Beginning of Year	78,848	7,594
Cash and Cash Equivalents-End of Year	72,843	5,299
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment, accrued but not paid	488	70
Supplemental disclosure of cash flow information
Cash paid for income taxes	$ 2	195
Cash paid for interest		$ 25

Organization and Description of Business	3 Months Ended
Organization and Description of Business	Sep. 30, 2014
Organization and Description of Business
Organization and Description of Business	(1) Organization and Description of Business Paylocity Holding Corporation (the “Company”), through its wholly owned subsidiary, Paylocity Corporation, 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.

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2014
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies (a) Consolidation and Use of Estimates These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with 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. (b) Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows. The results of operations for the three-month period ended September 30, 2014 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2014. (c) Income Taxes Differences in the normal relationship between the income tax expense (benefit) and pre-tax income (loss) materially result from the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. (d) Stock-Based Compensation The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards, including those under the 2014 Employee Stock Purchase Plan (“ESPP”), are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. 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 the option vesting term or the term of the ESPP purchase period. (e) 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 Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.

Balance Sheet Information

3 Months Ended

Sep. 30, 2014

Balance Sheet Information

Balance Sheet Information

(3) Balance Sheet Information

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

Activity in the allowance for doubtful accounts was as follows:

Balance at June 30, 2014	$	126
Charged to expense	42
Write-offs	(5		)
Balance at September 30, 2014	$	163

Capitalized software and accumulated amortization were as follows:

	June 30,			September 30,
	2014			2014
Internally developed software	$	19,863		$	20,937
Accumulated amortization	(14,770		)	(15,363		)
Capitalized software, net	$	5,093		$	5,574

Amortization of capitalized internal-use software costs is included in Cost of Revenues-Recurring Revenues and amounted to $605 and $593 for the three months ended September 30, 2013 and 2014, respectively.

Property and equipment consist of the following:

	June 30,			September 30,
	2014			2014
Office equipment	$	1,449		$	1,631
Computer equipment	7,726			9,310
Furniture and fixtures	2,317			2,357
Software	4,963			4,978
Leasehold improvements	6,059			6,106
Time clocks rented by clients	2,360			2,460
	24,874			26,842
Accumulated depreciation	(11,749		)	(12,804		)
Property and equipment, net	$	13,125		$	14,038

Depreciation expense amounted to $786 and $1,148 for the three months ended September 30, 2013 and 2014, respectively.

The components of accrued expenses were as follows:

	June 30,		September 30,
	2014		2014
Accrued payroll and personnel costs	$	8,781	$	8,756
Current portion of deferred rent	577		624
Other	1,386		1,397
Total accrued expenses	$	10,744	$	10,777

Intangible assets consist of the following:

	June 30, 2014			September 30, 2014			Weighted Average Useful Life
Client relationships	$	6,180		$	6,180		9 years
Non-solicitation agreement	220			220			3 years
Total	6,400			6,400
Accumulated amortization	(80		)	(270		)
Intangible assets, net	$	6,320		$	6,130

There was no amortization expense for acquired intangible assets for the three months ended September 30, 2013. Amortization expense for acquired intangible assets was $190 for the three months ended September 30, 2014.

Fair Value Measurement	3 Months Ended
Fair Value Measurement	Sep. 30, 2014
Fair Value Measurement
Fair Value Measurement	(4) Fair Value Measurement The Company applies the fair value measurement and disclosure provisions of ASC 820, Fair Value Measurements and Disclosures, and ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:  Level 1—Quoted prices in active markets for identical assets and liabilities.  Level 2—Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.  Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Substantially all of the Company’s assets that are measured at fair value on a recurring basis are measured using Level 1 inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, and accounts payable, to approximate the fair value of the respective assets and liabilities at June 30, 2014 and September 30, 2014 based upon the short-term nature of the assets and liabilities.

- Definition

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

+ References + Details

Benefit Plans

3 Months Ended

Sep. 30, 2014

Benefit Plans

Benefit Plans

(5) Benefit Plans

(a) Equity Incentive Plan

The Company maintains a 2008 Equity Incentive Plan (the “2008 Plan”) and a 2014 Equity Incentive Plan (the “2014 Plan”) pursuant to which the Company has reserved 7,032 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 September 30, 2014, the Company had 1,952 shares allocated to the 2014 Plan, but not yet issued or subject to outstanding options or awards. Generally, the Company issues previously unissued shares for the exercise of stock options; however, previously acquired shares may be reissued to satisfy future issuances. The options typically vest ratably over a three or four year period and expire 10 years from the grant date. Compensation expense for the fair value of the options at their grant date is recognized ratably over the vesting schedule.

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

	Three months ended September 30,
	2013		2014
Cost of revenue — recurring	$	—	$	348
Cost of revenue — non-recurring	—		291
Sales and marketing	—		884
Research and development	—		535
General and administrative	181		1,225
Total stock-based compensation	$	181	$	3,283

In addition, the Company capitalized $162 of stock compensation costs in its internal use software in the three month period ended September 30, 2014. No such amounts were capitalized in internal use software in the three month period ended September 30, 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 three months ended September 30:

	Period ended September 30,
	2013		2014
Valuation assumptions:
Expected dividend yield	0	%	0	%
Expected volatility	29.5	%	43.9	%
Expected term (years)	4.0		6.25
Risk-free interest rate	0.5	%	1.91	%

The following table summarizes changes during the quarter in the number of shares available for grant under our equity incentive plans:

	Number of Shares
Available for grant at July 1, 2014	2,581
RSU’s granted	(379	)
Options granted	(322	)
Forfeitures	97
Shares removed	(25	)
Available for grant at September 30, 2014	1,952

Shares removed represents forfeitures of grants made under the 2008 Plan. As noted above, no new awards will be issued under this plan.

The table below presents stock option activity during the three months ended September 30, 2014:

	Outstanding Options
	Number of shares		Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Balance at July 1, 2014	4,388		$	10.00	8.58	$	51,017
Options granted	322		24.80
Options forfeited	(97	)	14.29
Options exercised	(13	)	4.87
Balance at September 30, 2014	4,600		$	10.96	8.40	$	41,628
Options exercisable at September 30, 2014	1,430		$	3.11	6.79	$	23,656
Options vested and expected to vest at September 30, 2014	4,358		$	10.63	8.34	$	40,770

The weighted average grant date fair value of options granted during the three-month periods ended September 30, 2013 and 2014 was $1.71, and $11.15, respectively. The total intrinsic value of options exercised during the three month period ended September 30, 2014 was $224. There were no options exercised in the three month period ended September 30, 2013. At September 30, 2014, there was $12,337 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock option granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.55 years.

The Company may also grant RSAs and RSUs under the 2014 Plan with terms determined at the discretion of the Compensation Committee of the Company’s Board of Directors. The following table represents restricted stock unit activity during the three months ended September 30, 2014:

	Units		Weighted average grant date fair value
RSU balance at July 1, 2014	102		$	17.00
RSUs granted	379		24.75
RSUs vested	—		—
RSUs cancelled/forfeited	(1	)	17.00
RSU balance at September 30, 2014	480		$	23.11
RSUs expected to vest at September 30, 2014	440		$	22.96

At September 30, 2014, there was $7,818 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.20 years.

(b) Employee Stock Purchase Plan

The Company’s 2014 Employee Stock Purchase Plan (“ESPP”) was adopted by the Board of Directors and approved by the stockholders on February 6, 2014 and was effective upon completion of the Company’s initial public offering.

Under the Company’s ESPP, the Company can grant stock purchase rights to all eligible employees during specific offering periods not to exceed twenty-seven months. Each offering period will begin on the first trading day on or after May 16 and November 16 of each year, effective after the first offering period after the Company’s initial public offering (“IPO”). Shares are purchased through employees’ payroll deductions, up to a maximum of 10% of employees’ compensation for each purchase period, at a purchase price equal to 85% of the lesser of the fair market value of the Company’s common stock at the first trading day of the applicable offering period or the purchase date. Participants may purchase up to $25 worth of common stock or 2 shares of common stock in any one year. The ESPP is considered compensatory and results in compensation expense.

A total of one-million shares of common stock have been reserved for future issuance under the ESPP, none of which have been issued as of September, 2014 as the initial offering period has not been completed. The number of shares of common stock reserved for issuance under the ESPP will increase automatically each year, beginning on January 1, 2015 and continuing through and including January 1, 2024. The number of shares added each year will be equal to the lesser of (a) 400, (b) seventy-five one hundredths percent (0.75%) of the number of shares of common stock of the Company issued and outstanding on the immediately preceding December 31, or (c) an amount determined by the Company’s board of directors.

The Company commenced its initial post-IPO ESPP four month offering period on July 16, 2014. The Company recorded compensation expense attributable to the ESPP of $130 for the three-month period ended September 30, 2014 which is included in the summary of stock-based compensation expense above. The grant date fair value of the ESPP offering period was estimated using the following weighted average assumptions:

	Period ended September 30,
	2013	2014
Valuation assumptions:
Expected dividend yield	N/A	0	%
Expected volatility	N/A	41.7	%
Expected term (years)	N/A	0.3
Risk-free interest rate	N/A	0.04	%

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 $248 and $382 for the three months ended September 30, 2013 and 2014.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Sep. 30, 2014
Commitments and Contingencies
Commitments and Contingencies	(6) Commitments and Contingencies Reseller Agreements The Company had agreements with two organizations that sell the Company’s offerings and services in defined areas of the country. The Company exercised its right to terminate the first reseller agreement and acquired certain assets of the reseller in May 2014 as described in Note 5 of the audited consolidated financial statements and related notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2014. The Company paid the first reseller $614 during the three months ended September 30, 2013, under the reseller agreement and paid the first reseller $2,385 during the three months ended September 30, 2014 under the terms of the asset purchase agreement signed at closing in May 2014. The initial term of the second reseller agreement commenced in June 2009 and is set to expire in June 2016 unless renewed or terminated. 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, has the right to terminate the agreement at any time. If a termination were to occur, the purchase price of the assets would be equal to 3.3 times the net revenues of the reseller for the 12 months preceding the termination effective date. The Company paid the second reseller $492 and $635 during the three-month periods ended September 30, 2013 and 2014, respectively.

Earnings Per Share

3 Months Ended

Sep. 30, 2014

Earnings Per Share

Earnings Per Share

(7) Earnings Per Share

For the periods presented prior to the Company’s IPO, basic and diluted net 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 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 loss attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities.

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

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

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

	Three months ended September 30,
	2013			2014
Basic net loss per share:
Numerator:
Net Loss	$	(44	)	$	(4,875	)
Less: Preferred dividend rights attributable to participating securities	(781		)	—
Net loss attributable to common stockholders	$	(825	)	$	(4,875	)

Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic (in thousands)	31,988			49,566
Weighted-average effect of potentially dilutive shares:
Employee stock options and restricted stock units (in thousands)	—			—
Diluted (in thousands)	31,988			49,566

Net loss per share attributable to common stockholders, basic and diluted	$	(0.03	)	$	(0.10	)

The following table summarizes the outstanding employee stock options, restricted stock units, shares purchasable via the employee stock purchase plan as of the balance sheet date, and redeemable convertible preferred stock that were excluded from the diluted per share calculation for the periods presented because to include them would have been anti-dilutive:

	Three months ended September 30,
	2013	2014

Redeemable convertible preferred stock	11,933	—
Restricted stock units	—	480
Employee stock purchase plan shares	—	27
Employee stock options	2,376	4,600
Total	14,309	5,107

RSAs were excluded from both basic and diluted earnings per share calculations for the three month period ended September 30, 2013 as the vesting conditions had not been met as of that date.

Income Taxes	3 Months Ended
Income Taxes	Sep. 30, 2014
Income Taxes
Income Taxes	(8) Income Taxes The Company’s quarterly provision for income taxes is based on an estimated annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. The Company recorded income tax (benefit) expense of $(362) and $28 for the three month periods ended September 30, 2013 and 2014, respectively. The Company’s effective rate for the three months ended September 30, 2013 differed from statutory rates primarily due to federal and state research and development credits and expenses not deductible for income tax reporting purposes. The Company’s effective tax rate for the three months ended September 30, 2014 differ from statutory rates primarily due to the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for a valuation allowance on a quarterly basis. It established a valuation allowance on all of its net deferred tax assets except for deferred tax liabilities associated with indefinite-lived intangible assets during fiscal 2014, given that the company determined that it was more likely than not that the Company would not recognize the benefits of its net operating loss carryforwards prior to their expiration. As of September 30, 2014, the Company had no unrecognized tax benefits. On September 13, 2013, the IRS issued final regulations and re-proposed regulations that provide guidance with respect to (i) the treatment of materials and supplies, (ii) capitalization of amounts paid to acquire or produce tangible property, (iii) the determination of whether an expenditure with respect to tangible property is a deductible repair or a capital expenditure, and (iv) dispositions of MACRS property. The final regulations will be effective for the fiscal year ending June 30, 2015. Management is reviewing the regulations, but does not believe there will be a material impact on the Company’s results of operations, financial position, or cash flows.

Related Party Transactions	3 Months Ended
Related Party Transactions	Sep. 30, 2014
Related Party Transactions
Related Party Transactions	(9) Related Party Transactions The Company has 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. The Memorandum established 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.

- 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	3 Months Ended
Subsequent events	Sep. 30, 2014
Subsequent events
Subsequent events	(10) Subsequent Events The Company has evaluated subsequent events from the balance sheet date through November 7, 2014, the date at which the financial statements were available to be issued and has determined that there are no such events that would have a material impact on the financial statements.

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2014
Summary of Significant Accounting Policies
Consolidation and Use of Estimates	(a) Consolidation and Use of Estimates These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with 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.
Interim Unaudited Consolidated Financial Information	(b) Interim Unaudited Consolidated Financial Information The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows. The results of operations for the three-month period ended September 30, 2014 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended June 30, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 22, 2014.
Income Taxes	(c) Income Taxes Differences in the normal relationship between the income tax expense (benefit) and pre-tax income (loss) materially result from the existence of a valuation allowance recorded against the preponderance of the net deferred tax assets.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	(d) Stock-Based Compensation The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity-classified awards, including those under the 2014 Employee Stock Purchase Plan (“ESPP”), are measured at the grant date fair value of the award and expense is recognized, net of assumed forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the award. 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 the option vesting term or the term of the ESPP purchase period.
Recently Issued Accounting Standards	(e) 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 Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.

- Definition

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

+ References + Details

Balance Sheet Information (Tables)

3 Months Ended

Sep. 30, 2014

Balance Sheet Information

Schedule of activity in allowance for doubtful accounts

Balance at June 30, 2014	$	126
Charged to expense	42
Write-offs	(5		)
Balance at September 30, 2014	$	163

Schedule of capitalized software and accumulated amortization

	June 30,			September 30,
	2014			2014
Internally developed software	$	19,863		$	20,937
Accumulated amortization	(14,770		)	(15,363		)
Capitalized software, net	$	5,093		$	5,574

Schedule of property and equipment

	June 30,			September 30,
	2014			2014
Office equipment	$	1,449		$	1,631
Computer equipment	7,726			9,310
Furniture and fixtures	2,317			2,357
Software	4,963			4,978
Leasehold improvements	6,059			6,106
Time clocks rented by clients	2,360			2,460
	24,874			26,842
Accumulated depreciation	(11,749		)	(12,804		)
Property and equipment, net	$	13,125		$	14,038

Schedule of components of accrued expenses

	June 30,		September 30,
	2014		2014
Accrued payroll and personnel costs	$	8,781	$	8,756
Current portion of deferred rent	577		624
Other	1,386		1,397
Total accrued expenses	$	10,744	$	10,777

Schedule of intangible assets

	June 30, 2014			September 30, 2014			Weighted Average Useful Life
Client relationships	$	6,180		$	6,180		9 years
Non-solicitation agreement	220			220			3 years
Total	6,400			6,400
Accumulated amortization	(80		)	(270		)
Intangible assets, net	$	6,320		$	6,130

Benefit Plans (Tables)

3 Months Ended

Sep. 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")


	Three months ended September 30,
	2013		2014
Cost of revenue — recurring	$	—	$	348
Cost of revenue — non-recurring	—		291
Sales and marketing	—		884
Research and development	—		535
General and administrative	181		1,225
Total stock-based compensation	$	181	$	3,283

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


	Period ended September 30,
	2013		2014
Valuation assumptions:
Expected dividend yield	0	%	0	%
Expected volatility	29.5	%	43.9	%
Expected term (years)	4.0		6.25
Risk-free interest rate	0.5	%	1.91	%

Summary of shares available for grant under our equity incentive plans

	Number of Shares
Available for grant at July 1, 2014	2,581
RSU’s granted	(379	)
Options granted	(322	)
Forfeitures	97
Shares removed	(25	)
Available for grant at September 30, 2014	1,952

Schedule of stock option activity

	Outstanding Options
	Number of shares		Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Balance at July 1, 2014	4,388		$	10.00	8.58	$	51,017
Options granted	322		24.80
Options forfeited	(97	)	14.29
Options exercised	(13	)	4.87
Balance at September 30, 2014	4,600		$	10.96	8.40	$	41,628
Options exercisable at September 30, 2014	1,430		$	3.11	6.79	$	23,656
Options vested and expected to vest at September 30, 2014	4,358		$	10.63	8.34	$	40,770

Schedule of Restricted stock unit activity

	Units		Weighted average grant date fair value
RSU balance at July 1, 2014	102		$	17.00
RSUs granted	379		24.75
RSUs vested	—		—
RSUs cancelled/forfeited	(1	)	17.00
RSU balance at September 30, 2014	480		$	23.11
RSUs expected to vest at September 30, 2014	440		$	22.96

Schedule of estimated grant date fair value of ESPP offering period using weighted average assumptions

	Period ended September 30,
	2013	2014
Valuation assumptions:
Expected dividend yield	N/A	0	%
Expected volatility	N/A	41.7	%
Expected term (years)	N/A	0.3
Risk-free interest rate	N/A	0.04	%

Earnings Per Share (Tables)

3 Months Ended

Sep. 30, 2014

Earnings Per Share

Schedule of calculation of basic and diluted net loss per share

	Three months ended September 30,
	2013			2014
Basic net loss per share:
Numerator:
Net Loss	$	(44	)	$	(4,875	)
Less: Preferred dividend rights attributable to participating securities	(781		)	—
Net loss attributable to common stockholders	$	(825	)	$	(4,875	)

Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic (in thousands)	31,988			49,566
Weighted-average effect of potentially dilutive shares:
Employee stock options and restricted stock units (in thousands)	—			—
Diluted (in thousands)	31,988			49,566

Net loss per share attributable to common stockholders, basic and diluted	$	(0.03	)	$	(0.10	)

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

	Three months ended September 30,
	2013	2014

Redeemable convertible preferred stock	11,933	—
Restricted stock units	—	480
Employee stock purchase plan shares	—	27
Employee stock options	2,376	4,600
Total	14,309	5,107

Balance Sheet Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014
Activity in allowance for doubtful accounts
Balance at beginning of period	$ 126
Charged to expense	42	$ 15
Write-offs	(5)
Balance at end of period	163
Capitalized software and accumulated amortization
Internally developed software	20,937		$ 19,863
Accumulated amortization	(15,363)		(14,770)
Capitalized software, net	5,574		5,093
Amortization of capitalized internal-use software costs	593	605
Property and equipment
Property and equipment, gross	26,842		24,874
Accumulated depreciation	(12,804)		(11,749)
Property and equipment, net	14,038		13,125
Depreciation expense	1,148	$ 786
Components of accrued expenses
Accrued payroll and personnel costs	8,756		8,781
Current portion of deferred rent	624		577
Other	1,397		1,386
Total accrued expenses	10,777		10,744
Office equipment
Property and equipment
Property and equipment, gross	1,631		1,449
Computer equipment
Property and equipment
Property and equipment, gross	9,310		7,726
Furniture and fixtures
Property and equipment
Property and equipment, gross	2,357		2,317
Software
Property and equipment
Property and equipment, gross	4,978		4,963
Leasehold improvements
Property and equipment
Property and equipment, gross	6,106		6,059
Time clocks rented by clients
Property and equipment
Property and equipment, gross	$ 2,460		$ 2,360

Balance Sheet Information (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014
Intangible Assets
Finite-Lived Intangible Assets, Gross	$ 6,400		$ 6,400
Finite-Lived Intangible Assets, Accumulated Amortization	(270)		(80)
Finite-Lived Intangible Assets, Net	6,130		6,320
Amortization of Intangible Assets	190	$ 0
Client relationships
Intangible Assets
Finite-Lived Intangible Assets, Gross	$ 6,180		6,180
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	9 years
Non-solicitation agreement
Intangible Assets
Finite-Lived Intangible Assets, Gross	$ 220		$ 220
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years

Benefit Plans (Details) shares in Thousands	3 Months Ended
Benefit Plans (Details) shares in Thousands	Sep. 30, 2014 shares
Equity Incentive Plans
Number of shares of common stock reserved for issuance	7,032
Stock options
Equity Incentive Plans
Expiration period	10 years
Stock options \| Minimum
Equity Incentive Plans
Vesting period	3 years
Stock options \| Maximum
Equity Incentive Plans
Vesting period	4 years
2014 Plan
Equity Incentive Plans
Number of shares allocated but not yet issued or subject to outstanding options or awards	1,952
2008 Plan
Equity Incentive Plans
Awards issued (in shares)	0

Benefit Plans (Details 2) - USD ($) $ in Thousands	3 Months Ended
Benefit Plans (Details 2) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013
Benefit Plans
Total stock-based compensation expense	$ 3,283	$ 181
Stock compensation costs capitalized	162	0
Cost of revenue - recurring
Benefit Plans
Total stock-based compensation expense	348
Cost of revenue - non-recurring
Benefit Plans
Total stock-based compensation expense	291
Sales and marketing
Benefit Plans
Total stock-based compensation expense	884
Research and development
Benefit Plans
Total stock-based compensation expense	535
General and administrative
Benefit Plans
Total stock-based compensation expense	$ 1,225	$ 181

Benefit Plans (Details 3) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014
Stock options
Valuation assumptions:
Expected dividend yield (as a percent)	0.00%	0.00%
Expected volatility (as a percent)	43.90%	29.50%
Expected term	6 years 3 months	4 years
Risk-free interest rate (as a percent)	1.91%	0.50%
Shares Available for Grant
Balance at the beginning of the period (in shares)	2,581
RSU's granted (in shares)	(379)
Options granted (in shares)	(322)
Forfeitures	97
Shares removed	(25)
Balance at the end of the period (in shares)	1,952		2,581
Number of shares
Balance at the beginning of the period (in shares)	4,388
Options granted	322
Options forfeited	(97)
Options exercised	(13)	0
Balance at the end of the period (in shares)	4,600		4,388
Options exercisable at September 30, 2014	1,430
Options vested and expected to vest at the end of the period (in shares)	4,358
Weighted average exercise price
Balance at July 1, 2014	$ 10.00
Options granted	24.80
Options forfeited	14.29
Options exercised	4.87
Balance at September 30, 2014	10.96		$ 10.00
Options exercisable	3.11
Options vested and expected to vest at the end of the period (in dollars per share)	$ 10.63
Weighted average remaining contractual term
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	8 years 4 months 24 days		8 years 6 months 29 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	8 years 4 months 24 days		8 years 6 months 29 days
Options exercisable at September 30, 2014	6 years 9 months 15 days
Options vested and expected to vest at the end of the period	8 years 4 months 2 days
Aggregate intrinsic value
Balance at July 1, 2014	$ 51,017
Balance at the end of the period (in dollars)	41,628		$ 51,017
Options exercisable at September 30, 2014	23,656
Options vested and expected to vest at the end of the period	$ 40,770
Weighted average grant date fair value of options granted (in dollars per share)	$ 11.15	$ 1.71
Total intrinsic value of options exercised	$ 224
Units
RSU's granted	379
Weighted average grant date fair value
Total unrecognized compensation cost, net of estimated forfeitures	$ 12,337
Weighted average period to recognize unrecognized compensation cost	1 year 6 months 18 days
RSAs
Weighted average grant date fair value
Total unrecognized compensation cost, net of estimated forfeitures	$ 7,818
Weighted average period to recognize unrecognized compensation cost	2 years 2 months 12 days
RSUs
Shares Available for Grant
RSU's granted (in shares)	(379)
Units
RSU balance at July 1, 2014	102
RSU's granted	379
RSUs cancelled/forfeited	(1)
RSU balance at September 30, 2014	480		102
RSUs expected to vest at September 30, 2014 (in shares)	440
Weighted average grant date fair value
RSU balance at July 1, 2014	$ 17.00
RSU granted	24.75
RSU cancelled/forfeited	17.00
RSU balance at September 30, 2014	23.11		$ 17.00
RSUs expected to vest at September 30, 2014 (in dollars per share)	$ 22.96

Benefit Plans (Details 4) - USD ($) $ in Thousands			3 Months Ended
Benefit Plans (Details 4) - USD ($) $ in Thousands	Jul. 16, 2014	Feb. 06, 2014	Sep. 30, 2014	Sep. 30, 2013
Equity Incentive Plans
Compensation expense (in dollars)			$ 3,283	$ 181
Employee Stock Purchase Plan
Equity Incentive Plans
Offering period	4 months
Percentage of employee compensation, maximum		10.00%
Percentage of fair market value as a purchase price		85.00%
Value of shares per employee, maximum		$ 25
Number of shares per employee, maximum		2,000
Number of periods during which shares can be purchased		1 year
Number of shares authorized			1,000,000
Number of shares issued			0
Additional number of shares reserved for issuance each year			400,000
Percentage of additional number of shares reserved for issuance each year			0.75%
Compensation expense (in dollars)			$ 130
Valuation assumptions:
Expected dividend yield			0.00%
Expected volatility			41.70%
Expected term			3 months 18 days
Risk-free interest rate			0.04%
Employee Stock Purchase Plan \| Maximum
Equity Incentive Plans
Offering period		27 months

Benefit Plans (Details 5) - USD ($) $ in Thousands	3 Months Ended
Benefit Plans (Details 5) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013
Benefit Plans
Matching contributions by the Company as percentage of employees' contributions	50.00%
Maximum contributions as percentage of employees' gross pay	6.00%
Contributions	$ 382	$ 248

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2014 USD ($) item	Sep. 30, 2013 USD ($)
Commitments and Contingencies
Number of reseller organizations \| item	2
First reseller agreement
Reseller agreements
Amount paid to reseller per terms of our resale agreement		$ 614
Amount paid under the terms of an asset purchase agreement	$ 2,385
Second reseller agreement
Reseller agreements
Amount paid to reseller per terms of our resale agreement	$ 635	$ 492
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
Purchase price of assets as multiplier of net revenues of reseller for 12 months preceding termination effective date \| item	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
	Sep. 30, 2014	Sep. 30, 2013	Mar. 24, 2014
Earnings Per Share
Number of shares of common stock issued on automatic conversion of outstanding preferred stock			11,933
Numerator:
Net loss	$ (4,875)	$ (44)
Less: Preferred dividend rights attributable to participating securities		(781)
Net loss attributable to common stockholders	$ (4,875)	$ (825)
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic (in shares)	49,566	31,988
Weighted-average effect of potentially dilutive shares:
Diluted (in shares)	49,566	31,988
Net loss per share attributable to common stockholders:
Net loss per share attributable to common stockholders, basic and diluted	$ (0.10)	$ (0.03)
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)	5,107	14,309
Redeemable convertible preferred stock
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)		11,933
RSUs
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)	480
Employee Stock Purchase Plan
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)	27
Employee stock options
Anti-dilutive securities excluded from diluted per share calculation
Total (in shares)	4,600	2,376

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013
Income Taxes
Amount of tax provision (benefit) recorded	$ 28	$ (362)
Unrecognized tax benefits	$ 0

Related Party Transactions (Details)	3 Months Ended
Related Party Transactions (Details)	Sep. 30, 2014
Related party transactions
Exercise period for right of first refusal option on sale of Blue Marble	3 years
Blue Marble Member
Related party transactions
Equity interest (as a percent)	0.00%