pcty-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

________________________________________________________________________

Form 10-Q

________________________________________________________________________


x			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2024


o			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number 001-36348

________________________________________________________________________

PAYLOCITY HOLDING CORPORATION

(Exact name of registrant as specified in its charter)

________________________________________________________________________


Delaware						46-4066644
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)


1400 American Lane Schaumburg, Illinois						60173
(Address of principal executive offices)						(Zip Code)

(847) 463-3200

(Registrant’s telephone number, including area code)

________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

PCTY

The NASDAQ Global Select Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-Accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 55,746,768 shares of Common Stock, $0.001 par value per share, as of October 24, 2024.

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Paylocity Holding Corporation

Form 10-Q

For the Quarterly Period Ended September 30, 2024

TABLE OF CONTENTS


			Page

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Unaudited Consolidated Balance Sheets			2

Unaudited Consolidated Statements of Operations and Comprehensive Income			3

Unaudited Consolidated Statement of Changes in Stockholders’ Equity			4

Unaudited Consolidated Statements of Cash Flows			5

Notes to the Unaudited Consolidated Financial Statements			6

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			18

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			28

ITEM 4. CONTROLS AND PROCEDURES			29

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS			30

ITEM 1A. RISK FACTORS			30

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			30

ITEM 3. DEFAULTS UPON SENIOR SECURITIES			30

ITEM 4. MINE SAFETY DISCLOSURES			30

ITEM 5. OTHER INFORMATION			31

ITEM 6. EXHIBITS			32

SIGNATURES			33

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PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Balance Sheets

(in thousands, except per share data)


	June 30, 2024		September 30, 2024
Assets
Current assets:
Cash and cash equivalents	$	401,811	$	778,549

Accounts receivable, net	32,997		34,317
Deferred contract costs	97,859		102,413
Prepaid expenses and other	39,765		40,583
Total current assets before funds held for clients	572,432		955,862
Funds held for clients	2,952,060		2,340,411
Total current assets	3,524,492		3,296,273
Capitalized internal-use software, net	116,412		121,932
Property and equipment, net	60,640		57,945
Operating lease right-of-use assets	33,792		33,190
Intangible assets, net	28,291		25,744
Goodwill	108,937		108,863
Long-term deferred contract costs	348,003		357,159
Long‑term prepaid expenses and other	7,077		6,508
Deferred income tax assets	17,816		17,167
Total assets	$	4,245,460	$	4,024,781

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	8,638	$	16,039
Accrued expenses	158,311		156,001
Total current liabilities before client fund obligations	166,949		172,040
Client fund obligations	2,950,411		2,328,665
Total current liabilities	3,117,360		2,500,705
Long-term debt	—		325,000
Long-term operating lease liabilities	46,814		45,661
Other long-term liabilities	6,398		6,493
Deferred income tax liabilities	41,824		41,010
Total liabilities	$	3,212,396	$	2,918,869
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2024 and September 30, 2024	$	—	$	—
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2024 and September 30, 2024; 55,514 shares issued and outstanding at June 30, 2024 and 55,738 shares issued and outstanding at September 30, 2024	56		56
Additional paid-in capital	360,488		376,952
Retained earnings	673,456		723,029
Accumulated other comprehensive income (loss)	(936)		5,875
Total stockholders' equity	$	1,033,064	$	1,105,912
Total liabilities and stockholders’ equity	$	4,245,460	$	4,024,781

See accompanying notes to unaudited consolidated financial statements.

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PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Statements of Operations and Comprehensive Income

(in thousands, except per share data)


	Three Months Ended September 30,
	2023		2024
Revenues:
Recurring and other revenue	$	291,685	$	333,105
Interest income on funds held for clients	25,901		29,851
Total revenues	317,586		362,956
Cost of revenues	101,467		114,960
Gross profit	216,119		247,996
Operating expenses:
Sales and marketing	80,403		88,431
Research and development	44,605		47,260
General and administrative	49,922		48,161
Total operating expenses	174,930		183,852
Operating income	41,189		64,144
Other income	3,225		4,742
Income before income taxes	44,414		68,886
Income tax expense	9,897		19,313
Net income	$	34,517	$	49,573
Other comprehensive income, net of tax	120		6,811
Comprehensive income	$	34,637	$	56,384

Net income per share:
Basic	$	0.62	$	0.89
Diluted	$	0.61	$	0.88

Weighted-average shares used in computing net income per share:
Basic	56,037		55,640
Diluted	56,881		56,266

See accompanying notes to unaudited consolidated financial statements.

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PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Statement of Changes in Stockholders’ Equity

(in thousands)


	Three Months Ended September 30, 2023
	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount
Balances at June 30, 2023	55,912	$	56	$	380,632	$	466,690	$	(4,515)	$	842,863
Stock-based compensation	—	—		43,964		—		—		43,964
Stock options exercised	14	—		223		—		—		223
Issuance of common stock upon vesting of equity awards	387	—		—		—		—		—

Net settlement for taxes and/or exercise price related to equity awards	(146)	—		(29,048)		—		—		(29,048)
Unrealized gains on securities, net of tax	—	—		—		—		120		120
Net income	—	—		—		34,517		—		34,517
Balances at September 30, 2023	56,167	$	56	$	395,771	$	501,207	$	(4,395)	$	892,639


	Three Months Ended September 30, 2024
	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balances at June 30, 2024	55,514	$	56	$	360,488	$	673,456	$	(936)	$	1,033,064
Stock-based compensation	—	—		38,000		—		—		38,000
Stock options exercised	114	—		2,822		—		—		2,822
Issuance of common stock upon vesting of equity awards	273	—		—		—		—		—

Net settlement for taxes and/or exercise price related to equity awards	(163)	—		(24,358)		—		—		(24,358)
Unrealized gains on securities, net of tax	—	—		—		—		6,811		6,811
Net income	—	—		—		49,573		—		49,573
Balances at September 30, 2024	55,738	$	56	$	376,952	$	723,029	$	5,875	$	1,105,912

See accompanying notes to the unaudited consolidated financial statements.

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PAYLOCITY HOLDING CORPORATION

Unaudited Consolidated Statements of Cash Flows

(in thousands)


	Three Months Ended September 30,
	2023		2024
Cash flows from operating activities:
Net income	$	34,517	$	49,573
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	39,005		33,540
Depreciation and amortization expense	17,121		21,552
Deferred income tax expense (benefit)	5,391		(2,556)
Provision for credit losses	181		221
Net accretion of discounts on available-for-sale securities	(1,392)		(662)


Other	189		304
Changes in operating assets and liabilities:
Accounts receivable	(4,801)		(903)
Deferred contract costs	(14,985)		(13,081)
Prepaid expenses and other	(1,669)		(773)
Accounts payable	1,569		7,885
Accrued expenses and other	(12,984)		(3,645)
Net cash provided by operating activities	62,142		91,455
Cash flows from investing activities:
Purchases of available-for-sale securities	(92,567)		(20,174)
Proceeds from sales and maturities of available-for-sale securities	101,216		25,022
Capitalized internal-use software costs	(14,193)		(15,210)
Purchases of property and equipment	(3,454)		(2,328)

Other investing activities	(406)		(638)
Net cash used in investing activities	(9,404)		(13,328)
Cash flows from financing activities:
Net change in client fund obligations	(93,566)		(621,746)
Borrowings under credit facility	—		325,000



Taxes paid related to net share settlement of equity awards	(28,825)		(21,536)
Other financing activities	(11)		(11)
Net cash used in financing activities	(122,402)		(318,293)
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents	(69,664)		(240,166)
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of period	2,421,312		2,845,669
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of period	$	2,351,648	$	2,605,503
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment and capitalized internal-use software, accrued but not paid	$	1,803	$	960

Supplemental Disclosure of Cash Flow Information
Cash paid for interest	$	124	$	123
Cash paid for income taxes	$	6,207	$	6,194
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	$	305,031	$	778,549
Funds held for clients' cash and cash equivalents	2,046,617		1,826,954
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$	2,351,648	$	2,605,503

See accompanying notes to unaudited consolidated financial statements.

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PAYLOCITY HOLDING CORPORATION

Notes to the Unaudited Consolidated Financial Statements

(all amounts in thousands, except per share data)

(1) Organization and Description of Business

Paylocity Holding Corporation (the “Company”) is a cloud-based provider of human capital management and payroll software solutions that deliver a comprehensive platform for the modern workforce. Services are provided in a Software-as-a-Service (“SaaS”) delivery model. The Company’s comprehensive product suite delivers a unified platform that helps businesses attract and retain talent, build culture and connection with their employees, and streamline and automate HR and payroll processes.

(2) Summary of Significant Accounting Policies

(a) Basis of Presentation, 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 subsidiaries. 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. 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 may 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 Company’s financial position, results of operations, changes in stockholders’ equity and cash flows. The results of operations for the three months ended September 30, 2024 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, 2024 included in the Company’s Annual Report on Form 10-K.

Income taxes are accounted for in accordance with ASC 740, Income Taxes, using the asset and liability method. The Company’s provision for income taxes is based on the annual effective rate method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net-recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

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(d) Recently Issued Accounting Standards

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 primarily requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker along with other incremental segment information. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the financial statements. The Company continues to evaluate the impact of this ASU on its consolidated financial statement disclosures including the timing of adoption.

In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosure ("ASU 2023-09"). ASU 2023-09 mostly requires, on an annual basis, disclosure of specific categories in an entity's effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. The incremental disclosures may be presented on a prospective or retrospective basis. The ASU is effective for fiscal years beginning after December 15, 2024 with early adoption permitted. The Company continues to evaluate the impact of this ASU on its consolidated financial statement disclosures including the method and timing of adoption.

From time to time, new accounting pronouncements are issued by the FASB or other standard-setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of other recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.

(3) Revenue

The Company derives substantially all of its revenue from contracts from recurring service fees. While the majority of its agreements are generally cancellable by the client on 60 days’ notice or less, the Company also offers term agreements to its clients, which are generally two years in length. Recurring fees are derived from cloud-based payroll and HCM software solutions which includes payroll processing and related services such as payroll reporting and tax filing services, time and labor services, time clock rentals, and HR-related software solutions, including employee management and benefits enrollment and administration, substantially all of which are delivered on a monthly basis. Substantially all of the Company’s recurring fees are satisfied over time as services are provided. The performance obligations related to recurring services are generally satisfied monthly as services are provided, with fees charged and collected based on a per-employee-per-month fee. The Company has certain optional performance obligations that are satisfied at a point in time including the sales of time clocks and W-2 services. Implementation services and other 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.

Disaggregation of revenue

The following table disaggregates total revenues from contracts by Recurring fees and Implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue:


	Three Months Ended September 30,
	2023		2024
Recurring fees	$	279,899	$	319,314
Implementation services and other	11,786		13,791
Total revenues from contracts	$	291,685	$	333,105

Deferred revenue

The timing of revenue recognition for recurring revenue is consistent with the timing of invoicing as they occur monthly as services are provided based on a per-employee-per-month fee. As such, the Company does not generally recognize contract assets or liabilities related to recurring revenue.

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The Company defers and amortizes nonrefundable upfront fees related to implementation services 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 September 30,
	2023		2024
Balance at beginning of the period	$	22,617	$	24,883
Deferral of revenue	10,644		11,274
Revenue recognized	(9,121)		(10,760)
Balance at end of the period	$	24,140	$	25,397

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 $19,200 in fiscal 2025, $5,697 in fiscal 2026 and $500 in fiscal 2027 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 September 30, 2023
	Beginning Balance		Capitalized Costs		Amortization		Ending Balance
Costs to obtain a new contract	$	218,965	$	17,760	$	(12,316)	$	224,409
Costs to fulfill a contract	153,366		18,455		(8,004)		163,817
Total	$	372,331	$	36,215	$	(20,320)	$	388,226


	Three Months Ended September 30, 2024
	Beginning Balance		Capitalized Costs		Amortization		Ending Balance
Costs to obtain a new contract	$	250,136	$	19,412	$	(14,525)	$	255,023
Costs to fulfill a contract	195,726		19,667		(10,844)		204,549
Total	$	445,862	$	39,079	$	(25,369)	$	459,572

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 primarily recorded in Cost of revenues and Sales and marketing in the Unaudited Consolidated Statements of Operations and Comprehensive Income.

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Remaining Performance Obligations

The balance of the Company’s remaining performance obligations related to minimum monthly fees on its term-based contracts was approximately $84,706 as of September 30, 2024, 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.

(4) Business Combination

On November 30, 2023, the Company acquired all of the outstanding shares of TraceHQ.com, Inc. ("Trace") through a merger of Trace with a subsidiary of the Company for cash consideration of $12,086, subject to working capital and other customary purchase price adjustments. Trace offers a headcount planning solution that expands the Company's product functionality in this area. The allocation of the purchase price for Trace was approximately $6,809 of goodwill, $4,200 of proprietary technology and other immaterial assets and liabilities which reflects certain immaterial measurement period adjustments recorded during the three months ended September 30, 2024. The Company accounted for this transaction as a business combination and recorded the assets acquired and liabilities assumed at their respective estimated fair values as of the date of the acquisition with the excess consideration paid recorded as goodwill.

The results from this acquisition have been included in the Company’s consolidated financial statements since the closing of the transaction and are not material to the Company. Pro forma information is not presented because the effects of the acquisition are not material to the Company’s consolidated financial statements. The goodwill related to this transaction is primarily attributable to the assembled workforce and growth opportunities from the expansion and enhancement of the Company’s product offerings. The goodwill associated with the Trace acquisition is not deductible for income tax purposes. Direct costs related to the acquisition were immaterial and were expensed as incurred as General and administrative expense in the Unaudited Consolidated Statements of Operations and Comprehensive Income.

(5) Balance Sheet Information

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

Activity in the allowance for credit losses related to accounts receivable was as follows:


Balance at June 30, 2024	$	2,375
Charged to expense	221
Write-offs	(297)
Balance at September 30, 2024	$	2,299

Capitalized internal-use software and accumulated amortization were as follows:


	June 30, 2024		September 30, 2024
Capitalized internal-use software	$	324,269	$	343,566
Accumulated amortization	(207,857)		(221,634)
Capitalized internal-use software, net	$	116,412	$	121,932

Amortization of capitalized internal-use software costs is primarily included in Cost of revenues and amounted to $9,535 and $13,777 for the three months ended September 30, 2023 and 2024, respectively.

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The major classes of property and equipment, net were as follows:


	June 30, 2024		September 30, 2024
Office equipment	$	2,771	$	2,774
Computer equipment	63,138		63,284
Furniture and fixtures	13,081		13,088
Software	13,102		12,972
Leasehold improvements	49,392		49,408
Time clocks rented by clients	9,738		10,029
Total	151,222		151,555
Accumulated depreciation	(90,582)		(93,610)
Property and equipment, net	$	60,640	$	57,945

Depreciation expense amounted to $5,050 and $5,228 for the three months ended September 30, 2023 and 2024, respectively.

The following table summarizes changes in goodwill during the three months ended September 30, 2024:


Balance at June 30, 2024	$	108,937
Measurement period adjustments	(74)
Balance at September 30, 2024	$	108,863

Refer to Note 4 for further details on current year acquisition activity.

The Company’s amortizable intangible assets and estimated useful lives are as follows:


	June 30, 2024		September 30, 2024		Weighted average useful life (years)
Proprietary technology	$	47,329	$	47,329	5.9
Client relationships	22,200		22,200		7.8
Non-solicitation agreements	1,600		1,600		3.1
Trade names	1,640		1,640		5.0
Total	72,769		72,769
Accumulated amortization	(44,478)		(47,025)
Intangible assets, net	$	28,291	$	25,744

Amortization expense for acquired intangible assets was $2,536 and $2,547 for the three months ended September 30, 2023 and 2024, respectively, and is included in Cost of revenues and General and administrative.

Future amortization expense for acquired intangible assets as of September 30, 2024 is as follows:


Remainder of fiscal 2025	$	7,181
Fiscal 2026	8,109
Fiscal 2027	5,733
Fiscal 2028	3,869
Fiscal 2029	852

Total	$	25,744

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The components of accrued expenses were as follows:


	June 30, 2024		September 30, 2024
Accrued payroll and personnel costs	$	93,248	$	76,368
Operating lease liabilities	7,634		7,669
Deferred revenue	25,949		27,422
Other	31,481		44,542
Total accrued expenses	$	158,311	$	156,001

(6) Cash and Cash Equivalents and Funds Held for Clients

Cash and cash equivalents and Funds held for clients consisted of the following:


	June 30, 2024
Type of Issue	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	401,811	$	—	$	—	$	401,811
Funds held for clients' cash and cash equivalents	2,443,858		—		—		2,443,858
Available-for-sale securities:

Corporate bonds	314,728		1,094		(1,002)		314,820
Asset-backed securities	40,653		147		(118)		40,682

U.S. treasury securities	124,889		36		(973)		123,952

Other	28,875		84		(211)		28,748
Total available-for-sale securities	509,145		1,361		(2,304)		508,202