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CST: 17/07/2019 12:30:23   

Paylocity Announces Second Quarter Fiscal Year 2019 Financial Results

160 Days ago

  • Q2 2019 Total Revenue of $107.2 million, up 26% year-over-year
  • Q2 2019 Recurring Revenue of $104.7 million, up 26% year-over-year

SCHAUMBURG, Ill., Feb. 06, 2019 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (NASDAQ: PCTY), a leading provider of cloud-based payroll and human capital management software solutions, announced today financial results for the second quarter of fiscal year 2019, which ended December 31, 2018.

“We were pleased with our performance during the second quarter of fiscal 2019, with $107.2 million in total revenue and 26% growth over the second quarter of last fiscal year,” said Steve Beauchamp, Chief Executive Officer of Paylocity. “Our sustained investment in research & development continues to pay dividends in the marketplace, with Paylocity receiving a number of awards through G2 Crowd in December, including ranking #1 in satisfaction on the HR Management Suites, Core HR, Payroll and Benefits Administration Software category reports.”

Second Quarter Fiscal 2019 Financial Highlights

Revenue:

  • Total revenue was $107.2 million, an increase of 26% from second quarter fiscal year 2018 revenue, as adjusted and as presented on a non-GAAP basis in the table below. 
  • Total recurring revenue was $104.7 million, representing 98% of total revenue and an increase of 26% from second quarter fiscal year 2018 total recurring revenue, as adjusted and as presented on a non-GAAP basis in the table below. 

Operating Income:

  • GAAP operating income was $7.0 million and non-GAAP operating income was $17.7 million in the second quarter of fiscal year 2019.

Net Income:

  • GAAP net income was $5.7 million or $0.10 per share for the second quarter of fiscal year 2019 based on 55.1 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

  • Adjusted EBITDA, a non-GAAP measure, was $26.1 million in the second quarter of fiscal year 2019.

Balance Sheet and Cash Flow:

  • Cash, cash equivalents and invested corporate cash totaled $104.9 million as of the end of the quarter.
  • Cash flow from operations for the second quarter of fiscal year 2019 was $27.0 million compared to $26.0 million for the second quarter of fiscal year 2018, which included a $4.3 million tenant improvement allowance.

Accounting Update:

We adopted ASC 606 using the modified retrospective method in fiscal 2019, which began on July 1, 2018. Under ASC 606 we will amortize certain sales and implementation expenses over a period of 7 years.

Also as of July 1, 2018 we began recognizing implementation revenue ratably over a period of generally up to 24 months.

In the interest of comparability during this transition year, in the reconciliation table below we are providing revenue for each quarter of fiscal 2018 on a GAAP and non-GAAP, pro-forma basis giving effect to the change in recognition of implementation revenue for fiscal 2018.

                       
PAYLOCITY HOLDING CORPORATION 
Reconciliation of GAAP to non-GAAP Revenue 
(In thousands) 
                       
  Three Months Ended September 30, 2017

  Three Months Ended December 31, 2017

  Three Months Ended March 31, 2018

  As Reported Non-GAAP
Adjustments (1)
As Adjusted   As Reported Non-GAAP
Adjustments (1)
As Adjusted   As Reported Non-GAAP
Adjustments (1)
As Adjusted
Revenues:                      
Recurring fees $ 77,294 $ -   $ 77,294   $ 81,292 $ -   $ 81,292   $ 105,857 $ -   $ 105,857
Interest income on funds held for clients   1,617   -     1,617     1,783   -     1,783     2,719   -     2,719
Total recurring revenues   78,911   -     78,911     83,075   -     83,075     108,576   -     108,576
Implementation services and other   2,589   (1,789 )   800     2,929   (1,011 )   1,918     4,831   (2,076 )   2,755
Total Revenue $ 81,500 $ (1,789 ) $ 79,711   $ 86,004 $ (1,011 ) $ 84,993   $ 113,407 $ (2,076 ) $ 111,331
                       
  Three Months Ended June 30, 2018   Twelve Months Ended June 30, 2018        
                       
  As Reported Non-GAAP
Adjustments (1)
As Adjusted   As Reported Non-GAAP
Adjustments (1)
As Adjusted        
Revenues:                      
Recurring fees $ 89,989 $ -   $ 89,989   $ 354,432 $ -   $ 354,432        
Interest income on funds held for clients   2,974   -     2,974     9,093   -     9,093        
Total recurring revenues   92,963   -     92,963     363,525   -     363,525        
Implementation services and other   3,653   (600 )   3,053     14,002   (5,476 )   8,526        
Total Revenue $ 96,616 $ (600 ) $ 96,016   $ 377,527 $ (5,476 ) $ 372,051        
                       
(1)  As adjusted implementation revenue as if we recognized implementation revenue ratably over a period of up to 24 months for each quarter of fiscal 2018.          
           

 A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables.  An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Business Outlook

Based on information available as of February 6, 2019, Paylocity is issuing guidance for the third quarter and full fiscal year 2019 as indicated below.

Third Quarter 2019:

  • Total revenue is expected to be in the range of $135.0 million to $136.0 million, which represents approximately 22% growth over fiscal 2018 third quarter revenue, as adjusted and as presented on a non-GAAP basis in the table above.
  • Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $52.0 million to $53.0 million.

Fiscal Year 2019:

  • Total revenue is expected to be in the range of $459.0 million to $460.0 million, which represents approximately 23% growth over fiscal 2018 total revenue, as adjusted and as presented on a non-GAAP basis in the table above.
  • Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $129.0 million to $130.0 million.

We are unable to reconcile these forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.

Conference Call Details

Paylocity will host a conference call to discuss its second quarter fiscal year 2019 results at 4 p.m. Central Time today (5 p.m. Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations Web site at http://www.paylocity.com. Participants who choose to call in to the conference call can do so by dialing (855) 226-3021 or (315) 625-6892, passcode 1787186. A replay of the call will be available and archived via webcast at www.paylocity.com.

About Paylocity

Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software solutions. Paylocity’s comprehensive product suite delivers a unified platform for professionals to make strategic decisions in the areas of benefits, core HR, payroll, talent, and workforce management, while cultivating a modern workplace and improving employee engagement. Founded in 1997 and headquartered in Schaumburg, Ill., Paylocity has consistently been recognized nationally for its innovation, culture, and growth. Most recently, Paylocity was honored as #20 on Glassdoor’s Best Places to Work Employees’ Choice list; recognized on several G2 Crowd Grid® Reports, including ranking #1 in Satisfaction on six HCM software-focused reports; named one of the 101 Best & Brightest Companies to Work For; and ranked #30 on Crain’s Chicago’s Fast Fifty list of fastest-growing companies, among receiving a number of other national and local awards. For more information about Paylocity, visit www.paylocity.com.

Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures in this release, including Adjusted EBITDA, adjusted gross profit, adjusted recurring gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP net income per share, non-GAAP sales and marketing, non-GAAP total research and development and non-GAAP general and administrative and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, acquisition-related costs and lease exit costs. Adjusted gross profit and adjusted recurring gross profit are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and amortization of capitalized internal-use software costs. Non-GAAP operating income is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles, lease exit costs and accelerated depreciation expense and acquisition-related costs. Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles, acquisition-related costs and lease exit costs and accelerated depreciation expense. Non-GAAP net income and non-GAAP net income per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles, acquisition-related costs, lease exit costs and accelerated depreciation expense and the income tax effect on these items, the valuation allowance release, excess tax benefit related to employee stock-based compensation payments and the impact of tax reform. Pro-forma diluted weighted average number of common shares are adjusted for the weighted average effect of potentially diluted shares. Non-GAAP total research and development is adjusted for capitalized internal-use software costs and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Free cash flow is defined as net cash provided by operating activities less capitalized internal-use software costs, purchase of property and equipment and lease allowances used for tenant improvements. Please note that other companies may define their non-GAAP financial measures differently than we do. Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company’s future earnings discussions and, therefore, the inclusion of the non-GAAP financial measures should provide consistency in the company’s financial reporting. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release.

Included in the press release, we also refer to non-GAAP revenue. Effective July 1, 2018, we began recognizing implementation revenue ratably over a period of generally up to 24 months. To allow investors comparability to prior year results, we have provided comparable information on fiscal 2018 as if we had recognized implementation revenue ratably over a period of up to 24 months during fiscal 2018. However, for periods beginning before adoption, those adjusted financial measures are considered not to be calculated in accordance with GAAP and are thus presented as non-GAAP financial metrics.

Safe Harbor/forward looking statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, ability to scale its business, future financial position and performance, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management's estimates regarding future revenues and financial performance and other statements about management’s beliefs, intentions or goals.  Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on Paylocity’s forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; Paylocity’s ability to sell new products and retain subscriptions for its existing products to its new and existing clients; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; Paylocity’s reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; difficulties in forecasting Paylocity’s tax position; risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets, including the potential repeal or replacement of the Affordable Care Act; continued acceptance of SaaS as an effective method for delivery of payroll and HCM solutions; Paylocity’s ability to protect and defend its intellectual property; the risk that Paylocity’s security measures are compromised or the unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; and other risks and potential factors that could affect Paylocity’s business and financial results identified in Paylocity’s filings with the Securities and Exchange Commission (the “SEC”), including its 10-K filed with the SEC on August 10, 2018.  Additional information will also be set forth in Paylocity’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Paylocity makes with the SEC.  These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

Contact:
Ryan Glenn 
investors@paylocity.com

PAYLOCITY HOLDING CORPORATION
Unaudited Consolidated Balance Sheets
(in thousands, except per share data)

         
    June 30,    December 31,
    2018   2018
Assets            
Current assets:            
Cash and cash equivalents   $ 137,193     $ 84,114  
Corporate investments     732       19,934  
Accounts receivable, net     3,453       4,267  
Deferred contract costs           17,665  
Prepaid expenses and other     11,248       12,553  
             
Total current assets before funds held for clients     152,626       138,533  
Funds held for clients     1,225,614       1,258,773  
             
Total current assets     1,378,240       1,397,306  
Capitalized internal-use software, net     21,094       23,163  
Property and equipment, net     62,029       62,662  
Intangible assets, net     13,002       11,876  
Goodwill     9,590       9,590  
Long-term deferred contract costs           64,598  
Long-term prepaid expenses and other     1,504       3,266  
Deferred income tax assets, net     22,140       7,891  
             
Total assets   $ 1,507,599     $ 1,580,352  
             
Liabilities and Stockholders’ Equity            
Current liabilities:            
Accounts payable   $ 2,990     $ 3,498  
Accrued expenses     42,241       43,207  
             
Total current liabilities before client fund obligations     45,231       46,705  
Client fund obligations     1,225,614       1,258,773  
             
Total current liabilities     1,270,845       1,305,478  
Deferred rent     22,812       22,342  
Other long-term liabilities     1,118       1,595  
             
Total liabilities   $ 1,294,775     $ 1,329,415  
Stockholders’ equity:            
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2018 and December 31, 2018   $     $  
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2018 and December 31, 2018; 52,758 shares issued and outstanding at June 30, 2018 and 52,887 shares issued and outstanding at December 31, 2018     53       53  
Additional paid-in capital     219,588       189,473  
Retained earnings (accumulated deficit)     (6,678 )     61,550  
Accumulated other comprehensive loss     (139 )     (139 )
Total stockholders’ equity   $ 212,824     $ 250,937  
Total liabilities and stockholders’ equity   $ 1,507,599     $ 1,580,352  
                 

PAYLOCITY HOLDING CORPORATION
Unaudited Consolidated Statements of Operations and Comprehensive Income
 (in thousands, except per share data)

                           
    Three Months Ended   Six Months Ended  
    December 31,    December 31,   
    2017
  2018
  2017
  2018
 
Revenues:                          
Recurring fees   $ 81,292     $ 100,275     $ 158,586     $ 196,036    
Interest income on funds held for clients     1,783       4,465       3,400       7,967    
                           
Total recurring revenues     83,075       104,740       161,986       204,003    
Implementation services and other     2,929       2,464       5,518       3,705    
                           
Total revenues     86,004       107,204       167,504       207,708    
Cost of revenues:                          
Recurring revenues     25,638       31,206       49,729       60,437    
Implementation services and other     11,202       6,864       22,070       13,575    
                           
Total cost of revenues     36,840       38,070       71,799       74,012    
Gross profit     49,164       69,134       95,705       133,696    
Operating expenses:                          
Sales and marketing     21,598       26,570       42,778       52,988    
Research and development     9,274       12,798       18,169       24,198    
General and administrative     18,159       22,739       34,110       45,707    
                           
Total operating expenses     49,031       62,107       95,057       122,893    
Operating income     133       7,027       648       10,803    
Other income     141       346       250       615    
                           
Income before income taxes     274       7,373       898       11,418    
Income tax expense (benefit)     (157 )     1,669       (76 )     (4,138 )  
                           
Net income   $ 431     $ 5,704     $ 974     $ 15,556    
                           
Other comprehensive loss, net of tax                          
Unrealized losses on securities, net of tax     (105 )     (15 )     (110 )        
Total other comprehensive loss, net of tax     (105 )     (15 )     (110 )        
Comprehensive income   $ 326     $ 5,689     $ 864     $ 15,556    
                           
Net income per share:                          
Basic   $ 0.01     $ 0.11     $ 0.02     $ 0.29    
Diluted   $ 0.01     $ 0.10     $ 0.02     $ 0.28    
                           
Weighted-average shares used in computing net income per share:                          
Basic     52,502       52,842       52,197       52,853    
Diluted     54,818       55,081       54,639       55,232    
                                   

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises are included in the above line items:

                         
  Three months ended
December 31,
  Six months ended
December 31,
 
    2017     2018   2017     2018  
Cost of revenue - recurring $ 753   $ 885   $ 1,490   $ 1,969  
Cost of revenue -  implementation services and other   390     434     834     946  
Sales and marketing   2,212     2,004     4,263     3,971  
Research and development   956     1,467     2,053     3,131  
General and administrative   3,895     5,368     6,861     11,127  
Total $ 8,206   $ 10,158   $ 15,501   $ 21,144  
                         

PAYLOCITY HOLDING CORPORATION
Unaudited Consolidated Statements of Cash Flows
 (in thousands)

               
    Six Months Ended  
    December 31,   
    2017
  2018
 
               
Cash flows from operating activities:              
               
Net income   $ 974     $ 15,556    
Adjustments to reconcile net income to net cash provided by operating activities:              
Stock-based compensation expense     14,424       19,524    
Depreciation and amortization expense     13,438       16,801    
Deferred income tax benefit     (93 )     (4,139 )  
Provision for doubtful accounts     76       112    
Net accretion of discounts and amortization of premiums on available-for-sale securities     (141 )     (893 )  
Net realized losses on sales of available-for-sale securities     2          
Loss on disposal of equipment     106       357    
Changes in operating assets and liabilities:              
Accounts receivable     (775 )     (926 )  
Deferred contract costs           (14,156 )  
Prepaid expenses and other     1,583       635    
Accounts payable     (88 )     147    
Accrued expenses     (1,290 )     1,027    
Tenant improvement allowance     5,952       251    
Net cash provided by operating activities     34,168       34,296    
               
Cash flows from investing activities:              
Purchases of available-for-sale securities     (95,207 )     (117,054 )  
Proceeds from sales and maturities of available-for-sale securities     23,181       88,879    
Net change in funds held for clients' cash and cash equivalents     (331,078 )     (24,191 )  
Capitalized internal-use software costs     (7,146 )     (9,425 )  
Purchases of property and equipment     (7,998 )     (7,532 )  
Lease allowances used for tenant improvements     (5,952 )     (251 )  
Net cash used in investing activities     (424,200 )     (69,574 )  
               
Cash flows from financing activities:              
Net change in client fund obligations     403,243       33,159    
Repurchases of common shares           (34,991 )  
Proceeds from exercise of stock options           85    
Proceeds from employee stock purchase plan     2,045       2,824    
Taxes paid related to net share settlement of equity awards     (7,697 )     (18,878 )  
Net cash provided by (used in) financing activities     397,591       (17,801 )  
Net Change in Cash and Cash Equivalents     7,559       (53,079 )  
Cash and Cash Equivalents—Beginning of Period     103,468       137,193    
Cash and Cash Equivalents—End of Period   $ 111,027     $ 84,114    
Supplemental Disclosure of Non-Cash Investing and Financing Activities              
Purchase of property and equipment and internal-use software, accrued but not paid   $ 482     $ 252    
Supplemental Disclosure of Cash Flow Information              
Cash paid for income taxes, net of refunds   $ 60     $ 357    
                   


   
PAYLOCITY HOLDING CORPORATION  
Reconciliation of GAAP to non-GAAP Financial Measures  
(In thousands except per share data)  
             
  Three months
Ended
December 31,
  Six months
Ended
December 31,
 
  2017
2018
  2017
2018
 
Reconciliation from gross profit to adjusted gross profit:            
Gross profit $ 49,164   $ 69,134     $ 95,705   $ 133,696    
Amortization of capitalized internal-use software costs   3,314     4,418       6,703     8,630    
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   1,143     1,319       2,324     2,915    
Adjusted gross profit $ 53,621   $ 74,871     $ 104,732   $ 145,241    
             
  Three months
Ended
December 31,
  Six months
Ended
December 31,
 
  2017
2018
  2017
2018
 
Reconciliation from total recurring revenues to adjusted recurring gross profit:            
Total recurring revenues $ 83,075   $ 104,740     $ 161,986   $ 204,003    
Cost of recurring revenues   25,638     31,206       49,729     60,437    
Recurring gross profit   57,437     73,534       112,257     143,566    
Amortization of capitalized internal-use software costs   3,314     4,418       6,703     8,630    
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   753     885       1,490     1,969    
Adjusted recurring gross profit $ 61,504   $ 78,837     $ 120,450   $ 154,165    
             
  Three months
Ended
December 31,
  Six months
Ended
December 31,
 
  2017
2018
  2017
2018
 
Reconciliation from operating income to non-GAAP operating income:            
Operating income $ 133   $ 7,027     $ 648   $ 10,803    
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   8,206     10,158       15,501     21,144    
Amortization of acquired intangibles   359     563       718     1,126    
Non-GAAP operating income $ 8,698   $ 17,748     $ 16,867   $ 33,073    
             
  Three months
Ended
December 31,
  Six months
Ended
December 31,
 
  2017
2018
  2017
2018
 
Reconciliation from net income to non-GAAP net income:            
Net income $ 431   $ 5,704     $ 974   $ 15,556    
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, net of tax   8,206     7,212       15,501     14,902    
Amortization of acquired intangibles, net of tax   359     400       718     794    
Excess tax benefit related to employee stock-based compensation payments   -     (540 )     -     (7,465 )  
Non-GAAP net income $ 8,996   $ 12,776     $ 17,193   $ 23,787    
             
  Three months
Ended
December 31,
  Six months
Ended
December 31,
 
  2017
2018
  2017
2018
 
Calculation of non-GAAP net income per share:            
Non-GAAP net income $ 8,996   $ 12,776     $ 17,193   $ 23,787    
Diluted weighted-average number of common shares   54,818     55,081       54,639     55,232    
Non-GAAP net income per share $ 0.16   $ 0.23     $ 0.31   $ 0.43    
             
  Three months
Ended
December 31,
  Six months
Ended
December 31,
 
  2017
2018
  2017
2018
 
Reconciliation from net income to Adjusted EBITDA:            
Net income $ 431   $ 5,704     $ 974   $ 15,556    
Interest expense   -     -       -     -    
Income tax expense (benefit)   (157 )   1,669       (76 )   (4,138 )  
Depreciation and amortization expense   6,765     8,569       13,438     16,801    
EBITDA   7,039     15,942       14,336     28,219    
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   8,206     10,158       15,501     21,144    
Adjusted EBITDA $ 15,245   $ 26,100     $ 29,837   $ 49,363    
             
  Three months
Ended
December 31,
  Six months
Ended
December 31,
 
  2017
2018
  2017
2018
 
Reconciliation of non-GAAP Sales and Marketing:            
Sales and Marketing $ 21,598   $ 26,570     $ 42,778   $ 52,988    
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   2,212     2,004       4,263     3,971    
Non-GAAP Sales and Marketing $ 19,386   $ 24,566     $ 38,515   $ 49,017    
             
  Three months
Ended
December 31,
  Six months
Ended
December 31,
 
  2017
2018
  2017
2018
 
Reconciliation of non-GAAP Total Research and Development:            
Research and Development $ 9,274   $ 12,798     $ 18,169   $ 24,198    
Capitalized internal-use software costs   3,395     4,424       7,146     9,425    
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   956     1,467       2,053     3,131    
Non-GAAP Total Research and Development $ 11,713   $ 15,755     $ 23,262   $ 30,492    
             
  Three months
Ended
December 31,
  Six months
Ended
December 31,
 
  2017
2018
  2017
2018
 
Reconciliation of non-GAAP General and Administrative:            
General and Administrative $ 18,159   $ 22,739     $ 34,110   $ 45,707    
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   3,895     5,368       6,861     11,127    
Amortization of acquired intangibles   359     563       718     1,126    
Non-GAAP General and Administrative $ 13,905   $ 16,808     $ 26,531   $ 33,454    
             

 

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