XML 16 R9.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Revenue | 6 Months Ended
--- | ---
Dec. 31, 2019
Revenue |
Revenue | (3) Revenue ​ The Company derives its revenue from contracts predominantly from recurring and non-recurring service fees. While the majority of its agreements are generally cancellable by the client on 60 days’ notice or less, the Company also has term arrangements, which are generally two years in length. Recurring fees are derived from payroll, timekeeping, and HR-related cloud-based computing services. The majority of the Company’s recurring fees are satisfied over time as services are provided. The performance obligations related to payroll services are satisfied upon the processing of the client’s payroll with the fee charged and collected based on a per employee per payroll frequency fee. The performance obligations related to time and attendance services and HR related services are satisfied over time each month with the fee charged and collected based on a per employee per month fee. For subscription based fees which can include payroll, time and attendance, and HR related services, the Company recognizes the applicable recurring fees over time each month with the fee charged and collected based on a per employee per month fee. Non-recurring service fees consist mainly of nonrefundable implementation fees, which involve setting the client up in, and loading data into, the Company’s cloud-based modules. These implementation activities are considered set-up activities. The Company has determined that the nonrefundable upfront fees provide certain clients with a material right to renew the contract. Implementation fees are deferred and amortized generally over a period up to 24 months. ​ Disaggregation of revenue ​ The following table disaggregates revenue by Recurring fees and Implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended
​ | ​ | December 31, | ​ | December 31,
​ |  | 2018 |  | 2019 |  | 2018 |  | 2019
Recurring fees |  | $ | 100,275 |  | $ | 123,562 | ​ | $ | 196,036 | ​ | $ | 241,339
Implementation services and other |  |  | 2,464 |  |  | 4,418 | ​ |  | 3,705 | ​ |  | 8,514
Total revenues from contracts |  | $ | 102,739 |  | $ | 127,980 | ​ | $ | 199,741 | ​ | $ | 249,853
​ Deferred revenue ​ The timing of revenue recognition for recurring revenue is consistent with the timing of invoicing as they occur simultaneously based on the client’s payroll frequency or by month for subscription-based fees. As such, the Company does not recognize contract assets or liabilities related to recurring revenue. ​ The nonrefundable upfront fees related to implementation services are invoiced with the client’s first payroll period. The Company defers and recognizes these nonrefundable upfront fees generally over a period up to 24 months based on the type of contract. The following table summarizes the changes in deferred revenue (i.e. contract liability) related to these nonrefundable upfront fees as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended
​ | ​ | December 31, | ​ | December 31,
​ | ​ | 2018 | ​ | 2019 | ​ | 2018 | ​ | 2019
Balance at beginning of the period | ​ | $ | 2,019 | ​ | $ | 6,580 | ​ | $ | — | ​ | $ | 6,289
Deferral of revenue | ​ | ​ | 2,995 | ​ | ​ | 3,172 | ​ | ​ | 5,513 | ​ | ​ | 6,243
Revenue recognized | ​ | ​ | (1,391) | ​ | ​ | (2,899) | ​ | ​ | (1,890) | ​ | ​ | (5,679)
Balance at end of the period | ​ | $ | 3,623 | ​ | $ | 6,853 | ​ | $ | 3,623 | ​ | $ | 6,853
​ Deferred revenue related to these nonrefundable upfront fees are recorded within Accrued expenses and Other long-term liabilities on the Unaudited Consolidated Balance Sheets. The Company expects to recognize these deferred revenue balances of $3,826 in fiscal 2020, $2,581 in fiscal 2021, $446 in fiscal 2022 and thereafter. ​ Deferred contract costs ​ The Company defers certain selling and commission costs that meet the capitalization criteria under ASC 340-40. The Company also capitalizes certain costs to fulfill a contract related to its proprietary products if they are identifiable, generate or enhance resources used to satisfy future performance obligations and are expected to be recovered under ASC 340-40. Implementation fees are treated as nonrefundable upfront fees and the related implementation costs are required to be capitalized and amortized over the expected period of benefit, which is the period in which the Company expects to recover the costs and enhance its ability to satisfy future performance obligations. ​ The Company utilizes the portfolio approach to account for both the cost of obtaining a contract and the cost of fulfilling a contract. These capitalized costs are amortized over the expected period of benefit, which has been determined to be over 7 years based on the Company’s average client life and other qualitative factors, including rate of technological changes. The Company does not incur any additional costs to obtain or fulfill contracts upon renewal. The Company recognizes additional selling and commission costs and fulfillment costs when an existing client purchases additional services. These additional costs only relate to the additional services purchased and do not relate to the renewal of previous services. ​ The following tables present the deferred contract costs and the related amortization expense for these deferred contract costs: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended December 31, 2018
​ | ​ | Beginning | ​ | Capitalized | ​ | ​ | ​ | ​ | Ending
​ | ​ | Balance | ​ | Costs | ​ | Amortization | ​ | Balance
Costs to obtain a new contract | ​ | $ | 69,933 | ​ | $ | 5,635 | ​ | $ | (4,092) | ​ | $ | 71,476
Costs to fulfill a contract | ​ | ​ | 5,343 | ​ | ​ | 5,776 | ​ | ​ | (332) | ​ | ​ | 10,787
Total | ​ | $ | 75,276 | ​ | $ | 11,411 | ​ | $ | (4,424) | ​ | $ | 82,263
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended December 31, 2019
​ | ​ | Beginning | ​ | Capitalized | ​ | ​ | ​ | ​ | Ending
​ | ​ | Balance | ​ | Costs | ​ | Amortization | ​ | Balance
Costs to obtain a new contract | ​ | $ | 86,688 | ​ | $ | 11,401 | ​ | $ | (5,241) | ​ | $ | 92,848
Costs to fulfill a contract | ​ | ​ | 26,398 | ​ | ​ | 7,499 | ​ | ​ | (1,212) | ​ | ​ | 32,685
Total | ​ | $ | 113,086 | ​ | $ | 18,900 | ​ | $ | (6,453) | ​ | $ | 125,533
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six Months Ended December 31, 2018
​ | ​ | Beginning | ​ | Capitalized | ​ | ​ | ​ | ​ | Ending
​ | ​ | Balance | ​ | Costs | ​ | Amortization | ​ | Balance
Costs to obtain a new contract | ​ | $ | 68,107 | ​ | $ | 11,346 | ​ | $ | (7,977) | ​ | $ | 71,476
Costs to fulfill a contract | ​ | ​ | — | ​ | ​ | 11,250 | ​ | ​ | (463) | ​ | ​ | 10,787
Total | ​ | $ | 68,107 | ​ | $ | 22,596 | ​ | $ | (8,440) | ​ | $ | 82,263
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six Months Ended December 31, 2019
​ | ​ | Beginning | ​ | Capitalized | ​ | ​ | ​ | ​ | Ending
​ | ​ | Balance | ​ | Costs | ​ | Amortization | ​ | Balance
Costs to obtain a new contract | ​ | $ | 82,103 | ​ | $ | 20,886 | ​ | $ | (10,141) | ​ | $ | 92,848
Costs to fulfill a contract | ​ | ​ | 20,996 | ​ | ​ | 13,865 | ​ | ​ | (2,176) | ​ | ​ | 32,685
Total | ​ | $ | 103,099 | ​ | $ | 34,751 | ​ | $ | (12,317) | ​ | $ | 125,533
​ Deferred contract costs are recorded within Deferred contract costs and Long-term deferred contract costs on the Unaudited Consolidated Balance Sheets. Amortization of deferred contract costs is recorded in Cost of revenues, Sales and marketing, and General and administrative in the Unaudited Consolidated Statements of Operations and Comprehensive Income. ​ Remaining Performance Obligations ​ The Company’s remaining performance obligations related to minimum monthly fees on its term based contracts was approximately $42,966 as of December 31, 2019, which will be generally recognized over the next 24 months. This balance excludes the value of unsatisfied performance obligations for contracts that have an original expected duration of one year or less and contracts for which the variable consideration is allocated entirely to wholly unsatisfied performance obligations.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration