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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities:      
Net income $ 180,576 $ 137,065 [1] $ 123,486 [1]
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 42,211 29,657 [1] 19,395 [1]
Accretion of discount on available-for-sale securities (940) (1,112) [1] (451) [1]
Loss on disposition of property and equipment [1]     21
Amortization of debt discount and debt issuance costs 35 32 [1] 117 [1]
Stock-based compensation expense 47,268 36,576 [1] 36,076 [1]
Loss on early repayment of debt [1]     923
Cash paid for derivative settlement (81) (188) [1] (24) [1]
(Gain)/loss on derivative 1,456 (479) [1] 673 [1]
Deferred income taxes, net 21,011 21,077 [1] (7,681) [1]
Changes in operating assets and liabilities:      
Accounts receivable (5,884) (1,838) [1] (237) [1]
Prepaid expenses (5,903) (2,676) [1] (507) [1]
Inventory (403) (306) [1] 462 [1]
Other assets (3,555) (762) [1] (241) [1]
Deferred contract costs (76,204) (60,730) [1] (48,619) [1]
Accounts payable (221) 1,079 [1] 79 [1]
Income taxes, net (58) 3,085 [1] (6,355) [1]
Accrued commissions and bonuses 1,672 1,086 [1] 1,582 [1]
Accrued payroll and vacation 4,129 3,726 [1] 2,246 [1]
Deferred revenue 11,593 13,027 [1] 11,913 [1]
Accrued expenses and other current liabilities 7,561 6,498 [1] (2,709) [1]
Net cash provided by operating activities 224,263 184,817 [1] 130,149 [1]
Cash flows from investing activities:      
Purchase of short-term investments from funds held for clients (195,811) (145,011) [1] (66,235) [1]
Proceeds from maturities of short-term investments from funds held for clients 69,200 155,500 [1] 141,205 [1]
Purchases of property and equipment (92,934) (59,906) [1] (59,389) [1]
Net cash provided by (used in) investing activities (219,545) (49,417) [1] 15,581 [1]
Cash flows from financing activities:      
Proceeds from issuance of long-term debt [1]     40,940
Repurchases of common stock [1]   (105,188) (56,880)
Withholding taxes paid related to net share settlements (42,528) (20,248) [1] (32,850) [1]
Payments on long-term debt (1,775) (888) [1] (35,335) [1]
Net change in client funds obligation 694,991 (121,414) [1] 230,957 [1]
Debt extinguishment costs [1]     (823)
Payment of debt issuance costs (16) (58) [1] (344) [1]
Net cash provided by (used in) financing activities 650,672 (247,796) [1] 145,665 [1]
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents 655,390 (112,396) [1] 291,395 [1]
Cash, cash equivalents, restricted cash and restricted cash equivalents      
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period [1] 986,464 1,098,860 807,465
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period 1,641,854 986,464 [1] 1,098,860 [1]
Cash and cash equivalents 133,667 45,718 [1] 46,077 [1]
Restricted cash included in funds held for clients 1,508,187 940,746 [1] 1,052,783 [1]
Supplemental disclosures of cash flow information:      
Cash paid for interest, net of amounts capitalized 891 708 [1] 791 [1]
Cash paid for income taxes 24,566 13,511 [1] 18,332 [1]
Noncash investing and financing activities:      
Purchases of property and equipment, accrued but not paid 7,451 1,759 [1] 6,686 [1]
Stock-based compensation for capitalized software $ 4,757 $ 3,722 [1] $ 3,285 [1]
[1] Amounts have been adjusted to reflect the adoption of Accounting Standards Update No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” See Note 2 for a summary of reclassifications and adjustments.