Cover Page
Cover Page - shares | 3 Months Ended | |
Oct. 31, 2020 | Nov. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38413 | |
Entity Registrant Name | ZSCALER, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-1173892 | |
Entity Address, Address Line One | 120 Holger Way | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95134 | |
City Area Code | 408 | |
Local Phone Number | 533-0288 | |
Title of 12(b) Security | Common Stock, $0.001 Par Value | |
Trading Symbol | ZS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Shares Outstanding | 134,191,860 | |
Entity Central Index Key | 0001713683 | |
Current Fiscal Year End Date | --07-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2020 | Jul. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 102,016 | $ 141,851 |
Short-term investments | 1,313,938 | 1,228,722 |
Accounts receivable, net | 105,942 | 147,584 |
Deferred contract acquisition costs | 35,589 | 32,240 |
Prepaid expenses and other current assets | 22,040 | 31,396 |
Total current assets | 1,579,525 | 1,581,793 |
Property and equipment, net | 83,976 | 75,734 |
Operating lease right-of-use assets | 45,586 | 36,119 |
Deferred contract acquisition costs, noncurrent | 83,690 | 77,675 |
Acquired intangible assets, net | 22,447 | 24,024 |
Goodwill | 30,059 | 30,059 |
Other noncurrent assets | 7,664 | 8,054 |
Total assets | 1,852,947 | 1,833,458 |
Current liabilities: | ||
Accounts payable | 7,663 | 5,233 |
Accrued expenses and other current liabilities | 13,871 | 16,361 |
Accrued compensation | 37,097 | 49,444 |
Deferred revenue | 340,035 | 337,263 |
Operating lease liabilities | 17,796 | 15,600 |
Total current liabilities | 416,462 | 423,901 |
Convertible senior notes, net | 874,359 | 861,615 |
Deferred revenue, noncurrent | 31,865 | 32,504 |
Operating lease liabilities, noncurrent | 35,266 | 28,023 |
Other noncurrent liabilities | 2,890 | 2,586 |
Total liabilities | 1,360,842 | 1,348,629 |
Commitments and contingencies (Note 8) | ||
Stockholders’ Equity | ||
Common stock; $0.001 par value; 1,000,000 shares authorized as of October 31, 2020 and July 31, 2020; 134,163 and 132,817 shares issued and outstanding as of October 31, 2020 and July 31, 2020, respectively | 134 | 133 |
Additional paid-in capital | 886,815 | 823,804 |
Accumulated other comprehensive income (loss) | (267) | 463 |
Accumulated deficit | (394,577) | (339,571) |
Total stockholders’ equity | 492,105 | 484,829 |
Total liabilities and stockholders’ equity | $ 1,852,947 | $ 1,833,458 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2020 | Jul. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 134,163,000 | 132,817,000 |
Common stock, shares outstanding (in shares) | 134,163,000 | 132,817,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 142,578 | $ 93,590 |
Cost of revenue | 31,727 | 19,558 |
Gross profit | 110,851 | 74,032 |
Operating expenses: | ||
Sales and marketing | 96,889 | 59,411 |
Research and development | 35,770 | 20,271 |
General and administrative | 20,859 | 12,625 |
Total operating expenses | 153,518 | 92,307 |
Loss from operations | (42,667) | (18,275) |
Interest income | 940 | 2,022 |
Interest expense | (13,049) | 0 |
Other income (expense), net | 268 | (29) |
Loss before income taxes | (54,508) | (16,282) |
Provision for income taxes | 498 | 794 |
Net loss | $ (55,006) | $ (17,076) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.41) | $ (0.13) |
Weighted-average shares used in computing net loss per share, basic and diluted (in shares) | 133,452 | 127,548 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (55,006) | $ (17,076) |
Other comprehensive income (loss): | ||
Unrealized net gains (losses) on available-for-sale securities | (730) | 168 |
Total | (730) | 168 |
Comprehensive loss | $ (55,736) | $ (16,908) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Common stock, beginning balance (in shares) at Jul. 31, 2019 | 127,253 | ||||
Beginning balance at Jul. 31, 2019 | $ 308,558 | $ 127 | $ 532,618 | $ 268 | $ (224,455) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 545 | ||||
Issuance of common stock upon exercise of stock options | 3,059 | $ 1 | 3,058 | ||
Vesting of restricted stock units and other stock issuances (in shares) | 128 | ||||
Vesting of restricted stock units and other stock issuances | 0 | ||||
Vesting of early exercised common stock options | 131 | 131 | |||
Stock-based compensation | 19,212 | 19,212 | |||
Unrealized net gains (losses) on available-for-sale securities | 168 | 168 | |||
Net loss | (17,076) | (17,076) | |||
Common stock, ending balance (in shares) at Oct. 31, 2019 | 127,926 | ||||
Ending balance at Oct. 31, 2019 | $ 314,052 | $ 128 | 555,019 | 436 | (241,531) |
Common stock, beginning balance (in shares) at Jul. 31, 2020 | 132,817 | 132,817 | |||
Beginning balance at Jul. 31, 2020 | $ 484,829 | $ 133 | 823,804 | 463 | (339,571) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 690 | 690 | |||
Issuance of common stock upon exercise of stock options | $ 4,519 | $ 1 | 4,518 | ||
Vesting of restricted stock units and other stock issuances (in shares) | 656 | ||||
Vesting of restricted stock units and other stock issuances | 0 | ||||
Vesting of early exercised common stock options | 70 | 70 | |||
Stock-based compensation | 58,423 | 58,423 | |||
Unrealized net gains (losses) on available-for-sale securities | (730) | (730) | |||
Net loss | $ (55,006) | (55,006) | |||
Common stock, ending balance (in shares) at Oct. 31, 2020 | 134,163 | 134,163 | |||
Ending balance at Oct. 31, 2020 | $ 492,105 | $ 134 | $ 886,815 | $ (267) | $ (394,577) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Cash Flows From Operating Activities | ||
Net loss | $ (55,006) | $ (17,076) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation and amortization expense | 6,092 | 3,582 |
Amortization expense of acquired intangible assets | 1,577 | 779 |
Amortization of deferred contract acquisition costs | 8,678 | 5,535 |
Amortization of debt discount and issuance costs | 12,690 | 0 |
Noncash operating lease costs | 4,513 | 2,596 |
Stock-based compensation expense | 57,185 | 18,376 |
Amortization (accretion) of investments purchased at a premium (discount) | 2,605 | (300) |
Deferred income taxes | (520) | (49) |
Impairment of assets | 416 | 0 |
Other | 29 | 223 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 41,634 | 22,859 |
Deferred contract acquisition costs | (18,042) | (6,176) |
Prepaid expenses, other current and noncurrent assets | 7,883 | (2,471) |
Accounts payable | 76 | (38) |
Accrued expenses, other current and noncurrent liabilities | (1,243) | (466) |
Accrued compensation | (12,347) | 1,382 |
Deferred revenue | 2,133 | (5,333) |
Operating lease liabilities | (4,821) | (1,994) |
Net cash provided by operating activities | 53,532 | 21,429 |
Cash Flows From Investing Activities | ||
Purchases of property, equipment and other assets | (8,904) | (10,210) |
Capitalized internal-use software | (2,401) | (1,802) |
Purchases of short-term investments | (174,663) | (88,410) |
Proceeds from maturities of short-term investments | 76,582 | 66,796 |
Proceeds from sale of short-term investments | 11,500 | 0 |
Net cash used in investing activities | (97,886) | (33,626) |
Cash Flows From Financing Activities | ||
Proceeds from issuance of common stock upon exercise of stock options | 4,519 | 3,059 |
Net cash provided by financing activities | 4,519 | 3,059 |
Net decrease in cash, cash equivalents and restricted cash | (39,835) | (9,138) |
Cash, cash equivalents and restricted cash at beginning of period | 141,851 | 78,484 |
Cash, cash equivalents and restricted cash at end of period | 102,016 | 69,346 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes, net of tax refunds | 1,496 | 810 |
Noncash activities | ||
Net change in purchased equipment included in accounts payable and accrued expenses | 1,884 | (1,893) |
Operating lease right-of-use assets obtained in exchange for operating lease obligations, net of terminations | 13,787 | 18,237 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | ||
Total cash, cash equivalents and restricted cash | $ 102,016 | $ 69,346 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 3 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies Description of the Business Zscaler, Inc. ("Zscaler," the "Company," "we," "us," or "our") is a cloud security company that developed a platform incorporating core security functionalities needed to enable users to safely utilize authorized applications and services based on an organization’s policies. Our solution is a purpose-built, multi-tenant, distributed cloud platform that secures access for users and devices to applications and services, regardless of location. We deliver our solutions using a software-as-a-service ("SaaS") business model and sell subscriptions to customers to access our cloud platform, together with related support services. We were incorporated in Delaware in September 2007 and conduct business worldwide, with presence in North America, Europe and Asia. Our headquarters are in San Jose, California. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and applicable regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company's audited consolidated financial statements and related notes in its Annual Report on Form 10-K for the fiscal year ended July 31, 2020 (the "Fiscal 2020 Form 10-K"), as filed with the SEC on September 17, 2020. Interim Unaudited Condensed Consolidated Financial Statements The accompanying condensed consolidated balance sheet as of July 31, 2020 was derived from the audited consolidated financial statements as of that date. The accompanying interim condensed consolidated financial statements, including the condensed consolidated balance sheet as of October 31, 2020, the condensed consolidated statements of operations for the three months ended October 31, 2020 and 2019, the consolidated statements of comprehensive loss for the three months ended October 31, 2020 and 2019, the condensed consolidated statements of stockholders’ equity for the three months ended October 31, 2020 and 2019 and the condensed consolidated statements of cash flows for the three months ended October 31, 2020 and 2019 are unaudited. The related financial data and the other financial information disclosed in the accompanying notes to these condensed consolidated financial statements are also unaudited. These interim unaudited condensed consolidated financial statements have been prepared on a basis consistent with our annual consolidated financial statements and, in our opinion, include all normal recurring adjustments necessary to state fairly our quarterly results. The results of operations for the three months ended October 31, 2020 are not necessarily indicative of the results to be expected for our fiscal year ending July 31, 2021 or for any other future fiscal year or interim period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of revenue recognition, deferred revenue, deferred contract acquisition costs, valuation of acquired intangible assets, the period of benefit generated from our deferred contract acquisition costs, allowance for doubtful accounts, valuation of common stock options and stock-based awards, useful lives of property and equipment, useful lives of acquired intangible assets, valuation of deferred tax assets and liabilities, loss contingencies related to litigation, fair value and effective interest rate of our convertible senior notes, valuation of strategic investments and the discount rate used for operating leases. Management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the condensed consolidated financial statements. Due to the COVID-19 pandemic, there is ongoing uncertainty and significant disruption in the global economy and financial markets. We are not aware of any specific event or circumstances that would require an update to our estimates, judgments or assumptions or a revision to the carrying value of our assets or liabilities as of the date of issuance of these condensed consolidated financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained . Fiscal Year Our fiscal year ends on July 31. References to fiscal 2021, for example, refer to our fiscal year ending July 31, 2021. Significant Accounting Policies Our significant accounting policies are described in the Fiscal 2020 Form 10-K. There have been no significant changes to these policies that have had a material impact on our condensed consolidated financial statements and related notes for the three months ended October 31, 2020 other than for the adoption of new accounting guidance related to current expected credit losses effective August 1, 2020 further described below. Accounts Receivable and Allowance Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of an allowance for doubtful accounts. We have a well-established collections history from our customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. In determining the necessary allowance for doubtful accounts, we estimate the lifetime expected credit losses against the existing accounts receivable balance. Our estimate is based on certain factors including historical loss rates, current economic conditions, reasonable and supportable forecasts and customer-specific circumstances. The allowance for doubtful accounts has historically not been material. There were no material write-offs recognized in the periods presented. Accordingly, the movements in the allowance for doubtful accounts were not material for any of the periods presented. We do not have any off-balance-sheet credit exposure related to our customers . Cash Equivalents and Short-Term Investments We classify all highly liquid investments purchased with an original maturity of 90 days or less from the date of purchase as cash equivalents and all highly liquid investments with original maturities beyond 90 days at the time of purchase as short-term investments. Our cash equivalents and short-term investments consist of highly liquid investments in money market funds, U.S. treasury securities, U.S. government agency securities and corporate debt securities. We classify our investments as available-for-sale investments and present them within current assets since these investments represent funds available for current operations and we have the ability and intent, if necessary, to liquidate any of these investments in order to meet our liquidity needs or to grow our business, including for potential business acquisitions or other strategic transactions. Our investments are carried at fair value, with unrealized gains and losses unrelated to credit loss factors reported in accumulated other comprehensive income (loss) within stockholders’ equity. Our investments are reviewed periodically when there is a decline in a security’s fair value below the amortized cost basis. We consider our intent to sell and whether it is more likely than not that the we will be required to sell the securities before the recovery of its cost basis. If either of these criteria are triggered, the amortized cost basis of the debt security is written down to fair value through other income (expense), net. If neither criteria is met, we evaluate whether the decline in fair value below the amortized cost basis is related to credit-related factors or other factors such as interest rate fluctuations. The factors considered in this analysis include the extent the fair value is less than the amortized cost basis, whether there were changes to the rating of the security by a ratings agency, whether the issuer has failed to make scheduled interest payments and other adverse conditions as applicable. Credit-related impairment losses, limited by the amount that the fair value is less than the amortized cost basis, are recorded through an allowance for credit losses in other income (expense), net. For purposes of identifying and measuring credit-related impairments, our policy is to exclude the applicable accrued interest from both the fair value and amortized cost basis of the related debt security. Accrued interest, net of the allowance for credit losses, if any, is recorded to prepaid expenses and other current assets. There were no credit-related impairments recognized on our investments during the periods presented. Interest income, amortization (accretion) of investments purchased at a premium (discount), realized gains and losses and declines in fair value judged to be related to credit loss on our available-for-sale securities are included in interest income in the condensed consolidated statements of operations. We use the specific identification method to determine the cost in calculating realized gains and losses upon the sale of these investments. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. For public business entities, it is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We adopted this standard as of August 1, 2020, and it did not have a material impact to our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). This standard eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. For public business entities, it is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years using the fully retrospective or modified retrospective method. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the potential impact of this standard on our condensed consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Oct. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue Subscription and support revenue is recognized over time and accounted for approximately 97% and 99% of our revenue for the three months ended October 31, 2020 and 2019, respectively. The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform: Three Months Ended October 31, 2020 2019 Amount % Revenue Amount % Revenue (in thousands, except per percentage data) United States $ 70,159 49 % $ 45,944 49 % Europe, Middle East and Africa (*) 55,205 39 % 38,288 41 % Asia Pacific 14,280 10 % 7,821 8 % Other 2,934 2 % 1,537 2 % Total $ 142,578 100 % $ 93,590 100 % (*) Revenue from the United Kingdom ("U.K.") represented 10% of our revenue for each of the three months ended October 31, 2020 and 2019. The following table summarizes the revenue from contracts by type of customer: Three Months Ended October 31, 2020 2019 Amount % Revenue Amount % Revenue (in thousands, except per percentage data) Channel partners $ 133,440 94 % $ 90,243 96 % Direct customers 9,138 6 % 3,347 4 % Total $ 142,578 100 % $ 93,590 100 % Significant Customers No single customer accounted for 10% or more of our revenue for the three months ended October 31, 2020 and 2019. The following table summarizes 10% or more of the total balance of accounts receivable, net: October 31, 2020 July 31, 2020 Channel partner A * 11% (*) Represents less than 10%. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the three months ended October 31, 2020 and 2019, we recognized revenue of $127.6 million and $84.1 million, respectively, that was included in the corresponding contract liability balance at the beginning of these periods. Remaining Performance Obligations The typical subscription and support term is one Costs to Obtain and Fulfill a Contract We capitalize sales commission and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of channel partner and direct customer contracts. These costs are recorded as deferred contract acquisition costs in the condensed consolidated balance sheets. The following table summarizes the activity of the deferred contract acquisition costs: Three Months Ended October 31, 2020 2019 (in thousands) Beginning balance $ 109,915 $ 69,785 Capitalization of contract acquisition costs 18,042 6,176 Amortization of deferred contract acquisition costs (8,678) (5,535) Ending balance $ 119,279 $ 70,426 Deferred contract acquisition costs, current $ 35,589 $ 22,060 Deferred contract acquisition costs, noncurrent 83,690 48,366 Total deferred contract acquisition costs $ 119,279 $ 70,426 Sales commissions accrued but not paid as of October 31, 2020 and July 31, 2020, totaled $9.0 million and $21.0 million, respectively, which are included within accrued compensation in the condensed consolidated balance sheets. |
Cash Equivalents and Short-Term
Cash Equivalents and Short-Term Investments | 3 Months Ended |
Oct. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents and Short-Term Investments | Cash Equivalents and Short-Term Investments Cash equivalents and short-term investments consisted of the following as of October 31, 2020: Amortized Unrealized Unrealized (in thousands) Cash equivalents: Money market funds $ 52,638 $ — $ — $ 52,638 Short-term investments: U.S. treasury securities $ 383,016 $ 24 $ (111) $ 382,929 U.S. government agency securities 718,740 94 (466) 718,368 Corporate debt securities 212,333 381 (73) 212,641 Total short-term investments $ 1,314,089 $ 499 $ (650) $ 1,313,938 Total cash equivalents and short-term investments $ 1,366,727 $ 499 $ (650) $ 1,366,576 Cash equivalents and short-term investments consisted of the following as of July 31, 2020: Amortized Unrealized Unrealized Cash equivalents: (in thousands) Money market funds $ 51,690 $ — $ — $ 51,690 U.S. treasury securities 39,997 — (1) 39,996 U.S. government agency securities 14,997 — — 14,997 Total cash equivalents $ 106,684 $ — $ (1) $ 106,683 Short-term investments: U.S. treasury securities $ 415,539 $ 152 $ (127) $ 415,564 U.S. government agency securities 595,725 186 (114) 595,797 Corporate debt securities 216,879 569 (87) 217,361 Total short-term investments $ 1,228,143 $ 907 $ (328) $ 1,228,722 Total cash equivalents and short-term investments $ 1,334,827 $ 907 $ (329) $ 1,335,405 The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of October 31, 2020: Amortized Fair Value (in thousands) Due within one year $ 740,385 $ 740,633 Due between one to three years 573,704 573,305 Total $ 1,314,089 $ 1,313,938 Short-term investments that were in an unrealized loss position as of October 31, 2020 consisted of the following: Less than 12 Months Greater than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. treasury securities $ 296,929 $ (111) $ — $ — $ 296,929 $ (111) U.S. government agency securities 436,495 (465) 3,001 (1) 439,496 (466) Corporate debt securities 106,226 (73) 1,002 — 107,228 (73) Total $ 839,650 $ (649) $ 4,003 $ (1) $ 843,653 $ (650) Short-term investments that were in an unrealized loss position as of July 31, 2020 consisted of the following: Less than 12 Months Greater than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. treasury securities $ 347,959 $ (127) $ — $ — $ 347,959 $ (127) U.S. government agency securities 340,503 (113) 5,502 (1) 346,005 (114) Corporate debt securities 105,953 (87) — — 105,953 (87) Total $ 794,415 $ (327) $ 5,502 $ (1) $ 799,917 $ (328) We review the individual securities that have unrealized losses in our short-term investment portfolio on a regular basis. We evaluate, among others, whether we have the intention to sell any of these investments and whether it is not more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. Neither of these criteria were met in any period presented. We additionally evaluate whether the decline in fair value of the security below its amortized cost basis is related to credit losses or other factors. Based on this evaluation, we determined that unrealized losses of the above securities were primarily attributable to changes in interest rates and not credit-related factors. Accordingly, we determined that an allowance for credit losses was unnecessary for our short-term investments as of October 31, 2020 and July 31, 2020. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our money market funds are classified within Level I due to the highly liquid nature of these assets and have quoted prices in active markets. Certain of our investments in available-for-sale securities (i.e., U.S. treasury securities, U.S. government agency securities and corporate debt securities) are classified within Level II. The fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments. Assets that are measured at fair value on a recurring basis consisted of the following as of October 31, 2020: Level I Level II Level III Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash equivalents: (in thousands) Money market funds $ 52,638 $ 52,638 $ — $ — Short-term investments: U.S. treasury securities $ 382,929 $ — $ 382,929 $ — U.S. government agency securities 718,368 — 718,368 — Corporate debt securities 212,641 — 212,641 — Total short-term investments $ 1,313,938 $ — $ 1,313,938 $ — Total cash equivalents and short-term investments $ 1,366,576 $ 52,638 $ 1,313,938 $ — Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2020: Level I Level II Level III Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash equivalents: (in thousands) Money market funds $ 51,690 $ 51,690 $ — $ — U.S. treasury securities 39,996 — 39,996 — U.S. government agency securities 14,997 — 14,997 — Total cash equivalents $ 106,683 $ 51,690 $ 54,993 $ — Short-term investments: U.S. treasury securities $ 415,564 $ — $ 415,564 $ — U.S. government agency securities 595,797 — 595,797 — Corporate debt securities 217,361 — 217,361 — Total short-term investments $ 1,228,722 $ — $ 1,228,722 $ — Total cash equivalents and short-term investments $ 1,335,405 $ 51,690 $ 1,283,715 $ — We did not have transfers between levels of the fair value hierarchy of assets measured at fair value during the periods presented. Refer to Note 7, Convertible Senior Notes, for the carrying amount and estimated fair value of our convertible senior notes as of October 31, 2020. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: October 31, 2020 July 31, 2020 (in thousands) Hosting equipment $ 97,511 $ 87,418 Computers and equipment 4,221 3,875 Purchased software 1,311 1,311 Capitalized internal-use software 26,931 23,081 Furniture and fixtures 1,017 1,965 Leasehold improvements 7,211 8,712 Property and equipment, gross 138,202 126,362 Less: Accumulated depreciation and amortization (54,226) (50,628) Total property and equipment, net $ 83,976 $ 75,734 We recognized depreciation and amortization expense on property and equipment of $6.1 million and $3.6 million for the three months ended October 31, 2020 and 2019, respectively. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 3 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill The carrying amount of goodwill was $30.1 million as of October 31, 2020 and July 31, 2020. Acquired Intangible Assets Acquired intangible assets consist of developed technology and customer relationships acquired through our asset and business acquisitions. Acquired intangible assets are amortized using the straight-line method over their useful lives. Acquired intangible assets subject to amortization consisted of the following as of October 31, 2020 and July 31, 2020: Gross Carrying Amount Accumulated Amortization Net Carrying Amount July 31, 2020 Additions October 31, 2020 July 31, 2020 Amortization Expense October 31, 2020 October 31, 2020 July 31, 2020 (in thousands) Developed technology $ 26,856 $ — $ 26,856 $ (4,206) $ (1,504) $ (5,710) $ 21,146 $ 22,650 Customer relationships 1,460 — 1,460 (86) (73) (159) 1,301 1,374 Total $ 28,316 $ — $ 28,316 $ (4,292) $ (1,577) $ (5,869) $ 22,447 $ 24,024 Amortization expense of acquired intangible assets was $1.6 million and $0.8 million for the three months ended October 31, 2020 and 2019, respectively. Amortization expense of developed technology is recorded primarily within cost of revenue and research and development in the condensed consolidated statements of operations. Amortization expense of customer relationships is recorded within sales and marketing expenses in the condensed consolidated statements of operations. Future amortization expense of acquired intangible assets consisted of the following as of October 31, 2020: Amount Year ending July 31, (in thousands) 2021 (remaining nine months) $ 4,732 2022 5,700 2023 5,196 2024 3,761 2025 3,058 Total $ 22,447 |
Convertible Senior Notes
Convertible Senior Notes | 3 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes On June 25, 2020, we issued $1,150.0 million in aggregate principal amount of 0.125% Convertible Senior Notes due 2025 (the “Notes”), including the exercise in full by the initial purchasers of the Notes of their option to purchase an additional $150.0 million principal amount of the Notes. The Notes bear interest at a rate of 0.125% per year and interest is payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2021. The Notes mature on July 1, 2025, unless earlier converted, redeemed or repurchased. The total net proceeds from the offering, after deducting initial purchase discounts and other debt issuance costs, was $1,130.5 million. The Notes are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by us or any of our subsidiaries. The following table presents details of the Notes: Initial Conversion Rate per $1,000 Principal Initial Conversion Price Initial Number of Shares (in thousands) Notes 6.6315 shares $ 150.80 $ 7,626 The Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding April 1, 2025, only under the following circumstances: • During any fiscal quarter commencing after the fiscal quarter ending on October 31, 2020 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day; • During the five five • If we call any or all of the Notes for redemption, the Notes called for redemption (or, at our election, all Notes) may be submitted for conversion at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • Upon the occurrence of specified corporate events as set forth within the indenture governing the Notes. On or after April 1, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert, all or any portion of their Notes at any time, in multiples of $1,000 principal amount, at their option regardless of the foregoing circumstances. Upon conversion, we will satisfy the conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle the principal amount of the Notes in cash. During the three months ended October 31, 2020, the conditions allowing holders of the Notes to convert have not been met. The Notes were therefore not convertible during the three months ended October 31, 2020 and are classified as a noncurrent liability in our condensed consolidated balance sheet as of October 31, 2020. We may not redeem the Notes prior to July 5, 2023. On or after July 5, 2023, and prior to the 21st scheduled trading day immediately preceding the maturity date, we may redeem for cash all or any portion of the Notes, at our option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. If we redeem less than all the outstanding Notes, and only Notes called for redemption may be converted in connection with such partial redemption, at least $100.0 million aggregate principal amount of Notes must be outstanding and not subject to such partial redemption as of the relevant redemption notice date. In the event of a corporate event that constitutes a “fundamental change (as defined in the indenture),” holders of the Notes may require us to purchase with cash all or any portion of the Notes upon the occurrence of a fundamental change, at a purchase price equal to 100% of the principal amount of the Notes plus any accrued and unpaid interest, if any. In addition, following certain corporate events that occur prior to the maturity date or if we issue a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or notice of redemption, as the case may be. In accounting for the issuance of the Notes and the related transaction costs, we separated the Notes into liability and equity components. The carrying amount of the liability component was initially calculated by measuring the fair value of similar liabilities that do not have associated convertible features utilizing the interest rate of 5.75%. The carrying amount of the equity component representing the conversion option was $278.5 million and was determined by deducting the fair value of the liability component from the par value of the Notes. This difference represents the debt discount that is amortized to interest expense over the term of the Notes using the effective interest rate method. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. Total issuance costs of $19.5 million related to the Notes were allocated between liability, totaling $14.8 million, and equity, totaling $4.7 million, in the same proportion as the allocation of the total proceeds to the liability and equity components. Issuance costs attributable to the liability component are being amortized to interest expense over the term of the Notes. The excess of the principal amount of the liability component over its carrying amount is amortized to interest expense over the contractual term of the Notes at an effective interest rate of 6.03%. The issuance costs attributable to the equity component were netted against additional paid-in capital. The amount recorded for the equity component of the Notes was $273.4 million, net of allocated issuance costs of $4.7 million and deferred tax impact of $0.4 million. The net carrying amount of the liability component of the Notes is as follows : October 31, 2020 July 31, 2020 (in thousands) Principal amount $ 1,150,000 $ 1,150,000 Less: Unamortized debt discount 261,780 273,829 Unamortized debt issuance costs 13,861 14,556 Net carrying amount $ 874,359 $ 861,615 The following table sets forth total interest expense recognized related to the Notes for the three months ended October 31, 2020: Amount (in thousands) Contractual interest expense $ 359 Amortization of debt discount 12,049 Amortization of issuance costs 641 Total $ 13,049 The total fair value of the Notes was $1,338.5 million as of October 31, 2020. The fair value was determined based on the closing trading price per $1,000 of the Notes as of the last day of trading for the period. We consider the fair value of the Notes at October 31, 2020 to be a Level II measurement as they are not actively traded. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. Capped Calls In connection with the pricing of the Notes, we entered into capped call transactions with the option counterparties (the "Capped Calls"). The Capped Calls each have an initial strike price of $150.80 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have an initial cap price of $246.76 per share, subject to certain adjustments. The capped call transactions are generally expected to reduce potential dilution to our common stock upon any conversion of the Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap. The Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting us, including merger events, tender offers and the announcement of such events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As the Capped Calls qualify for a scope exception from derivative accounting for instruments that are both indexed to the issuer's own stock and classified in stockholder's equity in its statement of financial position, the premium of $145.2 million paid for the purchase of the Capped Calls in June 2020 was recorded as a reduction to additional paid-in capital and will not be remeasured. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-cancelable Purchase Obligations In the normal course of business, we enter into non-cancelable purchase commitments with various third parties to purchase products and services such as technology equipment, subscription-based cloud service arrangements, corporate events and consulting services. During the three months ended October 31, 2020, there have been no material changes outside the ordinary course of business to our non-cancelable purchase commitments from those disclosed in our Fiscal 2020 Form 10-K. Legal Matters Litigation and Claims We are a party to various litigation matters from time to time and subject to claims that arise in the ordinary course of business, including patent, commercial, product liability, employment, class action, whistleblower and other litigation and claims, as well as governmental and other regulatory investigations and proceedings. In addition, third parties may from time to time assert claims against us in the form of letters and other communications. There is no pending or threatened legal proceeding to which we are a party that, in our opinion, is likely to have a material adverse effect on our future financial results or operations; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. The expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect our results of operations. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plans We adopted the Fiscal Year 2018 Equity Incentive Plan (the "2018 Plan") in fiscal 2018 and the 2007 Stock Plan (the "2007 Plan") in fiscal 2008, collectively referred to as the "Plans." Equity incentive awards which may be granted to eligible participants under the Plans include restricted stock units, restricted stock, stock options, nonstatutory stock options, stock appreciation rights, performance units and performance shares. With the establishment of the 2018 Plan, we no longer grant stock-based awards under the 2007 Plan and any shares underlying stock options that expire or terminate or are forfeited or repurchased by us under the 2007 Plan are automatically transferred to the 2018 Plan. As of October 31, 2020, a total of 31.7 million shares of common stock have been reserved for the issuance of equity awards under the 2018 Plan, of which 22.6 million shares were available for grant. Stock Options The stock option activity consisted of the following for the three months ended October 31, 2020: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2020 5,175 $ 8.90 4.0 $ 625,904 Granted — — Exercised (690) 6.55 91,378 Canceled, forfeited or expired (10) 8.64 Balance as of October 31, 2020 4,475 $ 9.27 3.8 $ 566,049 Exercisable and expected to vest as of July 31, 2020 2,546 $ 6.46 3.5 $ 314,111 Exercisable and expected to vest as of October 31, 2020 2,415 $ 7.44 3.4 $ 309,854 The aggregate intrinsic value of the options exercised represents the difference between the fair value of our common stock on the date of exercise and their exercise price. The total intrinsic value of options exercised for the three months ended October 31, 2020 and 2019 was $91.4 million and $30.8 million, respectively. The weighted-average grant date fair value per share of stock options granted for the three months ended October 31, 2019 was $22.76. There were no stock options granted during the three months ended October 31, 2020. Restricted Stock Units and Performance Stock Awards The 2018 Plan allows for the grant of restricted stock units ("RSUs"). Generally, RSUs are subject to a four-year vesting period, with 25% of the shares vesting approximately one year from the vesting commencing date and quarterly thereafter over the remaining vesting term. The 2018 Plan allows for the grant of performance stock awards ("PSAs"). The right to earn the PSAs is subject to achievement of the defined performance metrics and continuous employment service. The performance metrics are defined and approved by the compensation committee of our board of directors or by our senior management for certain types of awards. Generally, earned PSAs are subject to additional time-based vesting. As of October 31, 2020, there were 0.7 million outstanding PSAs for which the performance metrics have not been defined as of such date. Accordingly, such awards are not considered granted for accounting purposes as of October 31, 2020 and have been excluded from the table below. The activity of RSUs and PSAs consisted of the following for the three months ended October 31, 2020: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2020 8,553 $ 60.72 $ 1,110,694 Granted 737 131.94 Vested (646) 64.11 85,671 Canceled or forfeited (122) 68.97 Balance as of October 31, 2020 8,522 $ 66.50 $ 1,156,879 Employee Stock Purchase Plan We adopted the Fiscal Year 2018 Employee Stock Purchase Plan (the "ESPP") in the third quarter of fiscal 2018. As of October 31, 2020, a total of 6.0 million shares of common stock have been reserved for issuance under the ESPP, of which 2.7 million shares were available for grant. The ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and is comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 15 and December 15 of each year. ESPP employee payroll contributions accrued at October 31, 2020 and July 31, 2020 were $8.9 million and $3.5 million, respectively, and are included within accrued compensation in the condensed consolidated balance sheets. Payroll contributions accrued as of October 31, 2020 will be used to purchase shares at the end of the current ESPP purchase period ending on December 15, 2020. Payroll contributions ultimately used to purchase shares will be reclassified to stockholders' equity on the purchase date. Stock-based Compensation Expense The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following: Three Months Ended October 31, 2020 2019 (in thousands) Cost of revenue $ 3,009 $ 1,381 Sales and marketing 31,316 10,039 Research and development 14,123 4,874 General and administrative 8,737 2,082 Total $ 57,185 $ 18,376 As of October 31, 2020, the unrecognized stock-based compensation cost related to outstanding equity-based awards, including awards for which the service inception date has been met but the grant date has not been met, was $524.8 million, which we expect to be amortized over a weighted-average period of 2.9 years. During the three months ended October 31, 2020 and 2019 we capitalized $1.5 million and $0.8 million, respectively of stock-based compensation associated with the development of software for internal-use. |
Income Taxes
Income Taxes | 3 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, we update our estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, we make a cumulative adjustment in such period. Our quarterly tax provision, and estimate of our annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how we do business, and tax law developments. Our estimated annual effective tax rate for the year differs from the U.S. statutory rate of 21% as a result of our U.S. losses for which no benefit will be realized, as well as our foreign operations which are subject to tax rates that differ from those in the United States. We recorded a provision for income taxes of $0.5 million and $0.8 million for the three months ended October 31, 2020 and 2019, respectively. We are subject to income tax in the United States as well as other tax jurisdictions in which we conduct business. Earnings from our non-U.S. operations are subject to income taxes in the countries in which we operate. Our provision for income taxes consists primarily of both income and withholding taxes in the foreign jurisdictions in which we conduct business. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended 2020 2019 (in thousands) Net loss $ (55,006) $ (17,076) Weighted-average shares used in computing net loss per share, basic and diluted 133,452 127,548 Net loss per share, basic and diluted $ (0.41) $ (0.13) Since we have reported net losses for all periods presented, we have excluded all potentially dilutive securities from the calculation of the diluted net loss per share as their effect is antidilutive and accordingly, basic and diluted net loss per share is the same for all periods presented. The following table summarizes the outstanding potentially dilutive securities that were excluded from the computation of diluted net loss per share because the impact of including them would have been antidilutive: October 31, 2020 2019 (in thousands) Stock options 4,475 8,296 Unvested RSUs 8,156 4,671 Unvested PSAs (1) 577 557 Shares subject to repurchase from early exercised stock options 5 92 Share purchase rights under the ESPP 547 873 Total 13,760 14,489 (1) The number of unvested PSAs is estimated at 100% of the target number of shares granted and excludes unvested PSAs for which performance conditions have not been established as of October 31, 2020, as they are not considered outstanding for accounting purposes. Refer to Note 9, Stock-Based Compensation, for further information. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and applicable regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company's audited consolidated financial statements and related notes in its Annual Report on Form 10-K for the fiscal year ended July 31, 2020 (the "Fiscal 2020 Form 10-K"), as filed with the SEC on September 17, 2020. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of revenue recognition, deferred revenue, deferred contract acquisition costs, valuation of acquired intangible assets, the period of benefit generated from our deferred contract acquisition costs, allowance for doubtful accounts, valuation of common stock options and stock-based awards, useful lives of property and equipment, useful lives of acquired intangible assets, valuation of deferred tax assets and liabilities, loss contingencies related to litigation, fair value and effective interest rate of our convertible senior notes, valuation of strategic investments and the discount rate used for operating leases. Management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the condensed consolidated financial statements. Due to the COVID-19 pandemic, there is ongoing uncertainty and significant disruption in the global economy and financial markets. We are not aware of any specific event or circumstances that would require an update to our estimates, judgments or assumptions or a revision to the carrying value of our assets or liabilities as of the date of issuance of these condensed consolidated financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained . |
Fiscal Year | Fiscal Year Our fiscal year ends on July 31. References to fiscal 2021, for example, refer to our fiscal year ending July 31, 2021. |
Accounts Receivable and Allowance | Accounts Receivable and Allowance Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of an allowance for doubtful accounts. We have a well-established collections history from our customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. In determining the necessary allowance for doubtful accounts, we estimate the lifetime expected credit losses against the existing accounts receivable balance. Our estimate is based on certain factors including historical loss rates, current economic conditions, reasonable and supportable forecasts and customer-specific circumstances. The allowance for doubtful accounts has historically not been material. There were no material write-offs recognized in the periods presented. Accordingly, the movements in the allowance for doubtful accounts were not material for any of the periods presented. We do not have any off-balance-sheet credit exposure related to our customers . |
Cash Equivalents | We classify all highly liquid investments purchased with an original maturity of 90 days or less from the date of purchase as cash equivalents and all highly liquid investments with original maturities beyond 90 days at the time of purchase as short-term investments. Our cash equivalents and short-term investments consist of highly liquid investments in money market funds, U.S. treasury securities, U.S. government agency securities and corporate debt securities. |
Short-Term Investments | We classify our investments as available-for-sale investments and present them within current assets since these investments represent funds available for current operations and we have the ability and intent, if necessary, to liquidate any of these investments in order to meet our liquidity needs or to grow our business, including for potential business acquisitions or other strategic transactions. Our investments are carried at fair value, with unrealized gains and losses unrelated to credit loss factors reported in accumulated other comprehensive income (loss) within stockholders’ equity. Our investments are reviewed periodically when there is a decline in a security’s fair value below the amortized cost basis. We consider our intent to sell and whether it is more likely than not that the we will be required to sell the securities before the recovery of its cost basis. If either of these criteria are triggered, the amortized cost basis of the debt security is written down to fair value through other income (expense), net. If neither criteria is met, we evaluate whether the decline in fair value below the amortized cost basis is related to credit-related factors or other factors such as interest rate fluctuations. The factors considered in this analysis include the extent the fair value is less than the amortized cost basis, whether there were changes to the rating of the security by a ratings agency, whether the issuer has failed to make scheduled interest payments and other adverse conditions as applicable. Credit-related impairment losses, limited by the amount that the fair value is less than the amortized cost basis, are recorded through an allowance for credit losses in other income (expense), net. For purposes of identifying and measuring credit-related impairments, our policy is to exclude the applicable accrued interest from both the fair value and amortized cost basis of the related debt security. Accrued interest, net of the allowance for credit losses, if any, is recorded to prepaid expenses and other current assets. There were no credit-related impairments recognized on our investments during the periods presented. Interest income, amortization (accretion) of investments purchased at a premium (discount), realized gains and losses and declines in fair value judged to be related to credit loss on our available-for-sale securities are included in interest income in the condensed consolidated statements of operations. We use the specific identification method to determine the cost in calculating realized gains and losses upon the sale of these investments. |
Recently Adopted Accounting Pronouncements; Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. For public business entities, it is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We adopted this standard as of August 1, 2020, and it did not have a material impact to our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). This standard eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. For public business entities, it is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years using the fully retrospective or modified retrospective method. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the potential impact of this standard on our condensed consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform: Three Months Ended October 31, 2020 2019 Amount % Revenue Amount % Revenue (in thousands, except per percentage data) United States $ 70,159 49 % $ 45,944 49 % Europe, Middle East and Africa (*) 55,205 39 % 38,288 41 % Asia Pacific 14,280 10 % 7,821 8 % Other 2,934 2 % 1,537 2 % Total $ 142,578 100 % $ 93,590 100 % (*) Revenue from the United Kingdom ("U.K.") represented 10% of our revenue for each of the three months ended October 31, 2020 and 2019. The following table summarizes the revenue from contracts by type of customer: Three Months Ended October 31, 2020 2019 Amount % Revenue Amount % Revenue (in thousands, except per percentage data) Channel partners $ 133,440 94 % $ 90,243 96 % Direct customers 9,138 6 % 3,347 4 % Total $ 142,578 100 % $ 93,590 100 % |
Schedule of Accounts Receivable | The following table summarizes 10% or more of the total balance of accounts receivable, net: October 31, 2020 July 31, 2020 Channel partner A * 11% (*) Represents less than 10%. |
Capitalized Contract Cost | The following table summarizes the activity of the deferred contract acquisition costs: Three Months Ended October 31, 2020 2019 (in thousands) Beginning balance $ 109,915 $ 69,785 Capitalization of contract acquisition costs 18,042 6,176 Amortization of deferred contract acquisition costs (8,678) (5,535) Ending balance $ 119,279 $ 70,426 Deferred contract acquisition costs, current $ 35,589 $ 22,060 Deferred contract acquisition costs, noncurrent 83,690 48,366 Total deferred contract acquisition costs $ 119,279 $ 70,426 |
Cash Equivalents and Short-Te_2
Cash Equivalents and Short-Term Investments (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash Equivalents and Short-Term Investments | Cash equivalents and short-term investments consisted of the following as of October 31, 2020: Amortized Unrealized Unrealized (in thousands) Cash equivalents: Money market funds $ 52,638 $ — $ — $ 52,638 Short-term investments: U.S. treasury securities $ 383,016 $ 24 $ (111) $ 382,929 U.S. government agency securities 718,740 94 (466) 718,368 Corporate debt securities 212,333 381 (73) 212,641 Total short-term investments $ 1,314,089 $ 499 $ (650) $ 1,313,938 Total cash equivalents and short-term investments $ 1,366,727 $ 499 $ (650) $ 1,366,576 Cash equivalents and short-term investments consisted of the following as of July 31, 2020: Amortized Unrealized Unrealized Cash equivalents: (in thousands) Money market funds $ 51,690 $ — $ — $ 51,690 U.S. treasury securities 39,997 — (1) 39,996 U.S. government agency securities 14,997 — — 14,997 Total cash equivalents $ 106,684 $ — $ (1) $ 106,683 Short-term investments: U.S. treasury securities $ 415,539 $ 152 $ (127) $ 415,564 U.S. government agency securities 595,725 186 (114) 595,797 Corporate debt securities 216,879 569 (87) 217,361 Total short-term investments $ 1,228,143 $ 907 $ (328) $ 1,228,722 Total cash equivalents and short-term investments $ 1,334,827 $ 907 $ (329) $ 1,335,405 |
Schedule of Maturities | The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of October 31, 2020: Amortized Fair Value (in thousands) Due within one year $ 740,385 $ 740,633 Due between one to three years 573,704 573,305 Total $ 1,314,089 $ 1,313,938 |
Schedule of Unrealized Loss on Investments | Short-term investments that were in an unrealized loss position as of October 31, 2020 consisted of the following: Less than 12 Months Greater than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. treasury securities $ 296,929 $ (111) $ — $ — $ 296,929 $ (111) U.S. government agency securities 436,495 (465) 3,001 (1) 439,496 (466) Corporate debt securities 106,226 (73) 1,002 — 107,228 (73) Total $ 839,650 $ (649) $ 4,003 $ (1) $ 843,653 $ (650) Short-term investments that were in an unrealized loss position as of July 31, 2020 consisted of the following: Less than 12 Months Greater than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. treasury securities $ 347,959 $ (127) $ — $ — $ 347,959 $ (127) U.S. government agency securities 340,503 (113) 5,502 (1) 346,005 (114) Corporate debt securities 105,953 (87) — — 105,953 (87) Total $ 794,415 $ (327) $ 5,502 $ (1) $ 799,917 $ (328) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | Assets that are measured at fair value on a recurring basis consisted of the following as of October 31, 2020: Level I Level II Level III Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash equivalents: (in thousands) Money market funds $ 52,638 $ 52,638 $ — $ — Short-term investments: U.S. treasury securities $ 382,929 $ — $ 382,929 $ — U.S. government agency securities 718,368 — 718,368 — Corporate debt securities 212,641 — 212,641 — Total short-term investments $ 1,313,938 $ — $ 1,313,938 $ — Total cash equivalents and short-term investments $ 1,366,576 $ 52,638 $ 1,313,938 $ — Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2020: Level I Level II Level III Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash equivalents: (in thousands) Money market funds $ 51,690 $ 51,690 $ — $ — U.S. treasury securities 39,996 — 39,996 — U.S. government agency securities 14,997 — 14,997 — Total cash equivalents $ 106,683 $ 51,690 $ 54,993 $ — Short-term investments: U.S. treasury securities $ 415,564 $ — $ 415,564 $ — U.S. government agency securities 595,797 — 595,797 — Corporate debt securities 217,361 — 217,361 — Total short-term investments $ 1,228,722 $ — $ 1,228,722 $ — Total cash equivalents and short-term investments $ 1,335,405 $ 51,690 $ 1,283,715 $ — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: October 31, 2020 July 31, 2020 (in thousands) Hosting equipment $ 97,511 $ 87,418 Computers and equipment 4,221 3,875 Purchased software 1,311 1,311 Capitalized internal-use software 26,931 23,081 Furniture and fixtures 1,017 1,965 Leasehold improvements 7,211 8,712 Property and equipment, gross 138,202 126,362 Less: Accumulated depreciation and amortization (54,226) (50,628) Total property and equipment, net $ 83,976 $ 75,734 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets | Acquired intangible assets subject to amortization consisted of the following as of October 31, 2020 and July 31, 2020: Gross Carrying Amount Accumulated Amortization Net Carrying Amount July 31, 2020 Additions October 31, 2020 July 31, 2020 Amortization Expense October 31, 2020 October 31, 2020 July 31, 2020 (in thousands) Developed technology $ 26,856 $ — $ 26,856 $ (4,206) $ (1,504) $ (5,710) $ 21,146 $ 22,650 Customer relationships 1,460 — 1,460 (86) (73) (159) 1,301 1,374 Total $ 28,316 $ — $ 28,316 $ (4,292) $ (1,577) $ (5,869) $ 22,447 $ 24,024 |
Schedule of Future Amortization Expense | Future amortization expense of acquired intangible assets consisted of the following as of October 31, 2020: Amount Year ending July 31, (in thousands) 2021 (remaining nine months) $ 4,732 2022 5,700 2023 5,196 2024 3,761 2025 3,058 Total $ 22,447 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The following table presents details of the Notes: Initial Conversion Rate per $1,000 Principal Initial Conversion Price Initial Number of Shares (in thousands) Notes 6.6315 shares $ 150.80 $ 7,626 The net carrying amount of the liability component of the Notes is as follows : October 31, 2020 July 31, 2020 (in thousands) Principal amount $ 1,150,000 $ 1,150,000 Less: Unamortized debt discount 261,780 273,829 Unamortized debt issuance costs 13,861 14,556 Net carrying amount $ 874,359 $ 861,615 The following table sets forth total interest expense recognized related to the Notes for the three months ended October 31, 2020: Amount (in thousands) Contractual interest expense $ 359 Amortization of debt discount 12,049 Amortization of issuance costs 641 Total $ 13,049 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Options | The stock option activity consisted of the following for the three months ended October 31, 2020: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2020 5,175 $ 8.90 4.0 $ 625,904 Granted — — Exercised (690) 6.55 91,378 Canceled, forfeited or expired (10) 8.64 Balance as of October 31, 2020 4,475 $ 9.27 3.8 $ 566,049 Exercisable and expected to vest as of July 31, 2020 2,546 $ 6.46 3.5 $ 314,111 Exercisable and expected to vest as of October 31, 2020 2,415 $ 7.44 3.4 $ 309,854 |
Schedule of Restricted Stock Units and Performance Stock Awards Activity | The activity of RSUs and PSAs consisted of the following for the three months ended October 31, 2020: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2020 8,553 $ 60.72 $ 1,110,694 Granted 737 131.94 Vested (646) 64.11 85,671 Canceled or forfeited (122) 68.97 Balance as of October 31, 2020 8,522 $ 66.50 $ 1,156,879 |
Schedule of Allocation of Stock-based Compensation Expense | The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following: Three Months Ended October 31, 2020 2019 (in thousands) Cost of revenue $ 3,009 $ 1,381 Sales and marketing 31,316 10,039 Research and development 14,123 4,874 General and administrative 8,737 2,082 Total $ 57,185 $ 18,376 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Net Loss Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended 2020 2019 (in thousands) Net loss $ (55,006) $ (17,076) Weighted-average shares used in computing net loss per share, basic and diluted 133,452 127,548 Net loss per share, basic and diluted $ (0.41) $ (0.13) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the outstanding potentially dilutive securities that were excluded from the computation of diluted net loss per share because the impact of including them would have been antidilutive: October 31, 2020 2019 (in thousands) Stock options 4,475 8,296 Unvested RSUs 8,156 4,671 Unvested PSAs (1) 577 557 Shares subject to repurchase from early exercised stock options 5 92 Share purchase rights under the ESPP 547 873 Total 13,760 14,489 (1) |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Credit-related impairments | $ 0 | $ 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2020 | |
Concentration Risk [Line Items] | |||
Contract with customer, liability, revenue recognized | $ 127.6 | $ 84.1 | |
Revenue, remaining performance obligation | 864 | ||
Accrued sales commissions | $ 9 | $ 21 | |
Minimum | |||
Concentration Risk [Line Items] | |||
Contract with customer, term of contract | 1 year | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Contract with customer, term of contract | 3 years | ||
Subscription and Support | Sales Revenue, Net | Product Concentration Risk | Transferred over Time | |||
Concentration Risk [Line Items] | |||
Revenue, percentage | 97.00% | 99.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 142,578 | $ 93,590 |
Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 142,578 | $ 93,590 |
Revenue, percentage | 100.00% | 100.00% |
Sales Revenue, Net | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 142,578 | $ 93,590 |
Revenue, percentage | 100.00% | 100.00% |
Sales Revenue, Net | Customer Concentration Risk | Channel partners | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 133,440 | $ 90,243 |
Revenue, percentage | 94.00% | 96.00% |
Sales Revenue, Net | Customer Concentration Risk | Direct customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 9,138 | $ 3,347 |
Revenue, percentage | 6.00% | 4.00% |
United States | Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 70,159 | $ 45,944 |
Revenue, percentage | 49.00% | 49.00% |
Europe, Middle East and Africa | Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 55,205 | $ 38,288 |
Revenue, percentage | 39.00% | 41.00% |
Asia Pacific | Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 14,280 | $ 7,821 |
Revenue, percentage | 10.00% | 8.00% |
Other | Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,934 | $ 1,537 |
Revenue, percentage | 2.00% | 2.00% |
United Kingdom | Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, percentage | 10.00% | 10.00% |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) | Oct. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 54.00% |
Recognized transaction price period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 97.00% |
Recognized transaction price period | 3 years |
Revenue Recognition - Significa
Revenue Recognition - Significant Customers (Details) | 12 Months Ended |
Jul. 31, 2020 | |
Channel partner A | Accounts Receivable | Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Accounts receivable, net | 11.00% |
Revenue Recognition - Capitaliz
Revenue Recognition - Capitalized Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Jul. 31, 2020 | Oct. 31, 2019 | |
Changes in Capitalized Contract Cost [Roll Forward] | |||||
Beginning balance | $ 109,915 | $ 69,785 | |||
Capitalization of contract acquisition costs | 18,042 | 6,176 | |||
Amortization of deferred contract acquisition costs | (8,678) | (5,535) | |||
Ending balance | 119,279 | 70,426 | |||
Deferred contract acquisition costs, current | $ 35,589 | $ 32,240 | $ 22,060 | ||
Deferred contract acquisition costs, noncurrent | 83,690 | 77,675 | 48,366 | ||
Total deferred contract acquisition costs | $ 119,279 | $ 70,426 | $ 119,279 | $ 109,915 | $ 70,426 |
Cash Equivalents and Short-Te_3
Cash Equivalents and Short-Term Investments - Schedule of Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jul. 31, 2020 |
Cash and cash equivalents | ||
Amortized Cost | $ 106,684 | |
Unrealized Gains | 0 | |
Unrealized Losses | (1) | |
Fair Value | 106,683 | |
Short-term investments: | ||
Amortized Cost | $ 1,314,089 | 1,228,143 |
Unrealized Gains | 499 | 907 |
Unrealized Losses | (650) | (328) |
Fair Value | 1,313,938 | 1,228,722 |
Total cash equivalents and short-term investments, amortized cost | 1,366,727 | 1,334,827 |
Total cash equivalents and short-term investments, unrealized gains | 499 | 907 |
Total cash equivalents and short-term investments, unrealized losses | (650) | (329) |
Total cash equivalents and short-term investments | 1,366,576 | 1,335,405 |
Money market funds | ||
Cash and cash equivalents | ||
Amortized Cost | 52,638 | 51,690 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 52,638 | 51,690 |
U.S. treasury securities | ||
Cash and cash equivalents | ||
Amortized Cost | 39,997 | |
Unrealized Gains | 0 | |
Unrealized Losses | (1) | |
Fair Value | 39,996 | |
Short-term investments: | ||
Amortized Cost | 383,016 | 415,539 |
Unrealized Gains | 24 | 152 |
Unrealized Losses | (111) | (127) |
Fair Value | 382,929 | 415,564 |
U.S. government agency securities | ||
Cash and cash equivalents | ||
Amortized Cost | 14,997 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 14,997 | |
Short-term investments: | ||
Amortized Cost | 718,740 | 595,725 |
Unrealized Gains | 94 | 186 |
Unrealized Losses | (466) | (114) |
Fair Value | 718,368 | 595,797 |
Corporate debt securities | ||
Short-term investments: | ||
Amortized Cost | 212,333 | 216,879 |
Unrealized Gains | 381 | 569 |
Unrealized Losses | (73) | (87) |
Fair Value | $ 212,641 | $ 217,361 |
Cash Equivalents and Short-Te_4
Cash Equivalents and Short-Term Investments - Schedule of Maturities (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jul. 31, 2020 |
Amortized Cost | ||
Due within one year, cost basis | $ 740,385 | |
Due between one to three years | 573,704 | |
Amortized Cost | 1,314,089 | $ 1,228,143 |
Fair Value | ||
Due within one year, fair value | 740,633 | |
Due between one and two years, fair value | 573,305 | |
Total short-term investments, fair value | $ 1,313,938 | $ 1,228,722 |
Cash Equivalents and Short-Te_5
Cash Equivalents and Short-Term Investments - Schedule of Unrealized Position (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jul. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 839,650 | $ 794,415 |
Less than 12 months, unrealized losses | (649) | (327) |
Greater than 12 months, fair value | 4,003 | 5,502 |
Greater than 12 months, unrealized losses | (1) | (1) |
Total fair value | 843,653 | 799,917 |
Total unrealized losses | (650) | (328) |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 296,929 | 347,959 |
Less than 12 months, unrealized losses | (111) | (127) |
Greater than 12 months, fair value | 0 | 0 |
Greater than 12 months, unrealized losses | 0 | 0 |
Total fair value | 296,929 | 347,959 |
Total unrealized losses | (111) | (127) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 436,495 | 340,503 |
Less than 12 months, unrealized losses | (465) | (113) |
Greater than 12 months, fair value | 3,001 | 5,502 |
Greater than 12 months, unrealized losses | (1) | (1) |
Total fair value | 439,496 | 346,005 |
Total unrealized losses | (466) | (114) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 106,226 | 105,953 |
Less than 12 months, unrealized losses | (73) | (87) |
Greater than 12 months, fair value | 1,002 | 0 |
Greater than 12 months, unrealized losses | 0 | 0 |
Total fair value | 107,228 | 105,953 |
Total unrealized losses | $ (73) | $ (87) |
Cash Equivalents and Short-Te_6
Cash Equivalents and Short-Term Investments - Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Jul. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Accrued interest receivable | $ 3.5 | $ 3.8 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jul. 31, 2020 |
Cash equivalents: | ||
Fair Value | $ 106,683 | |
Short-term investments: | ||
Short-term investments | $ 1,313,938 | 1,228,722 |
Total cash equivalents and short-term investments | 1,366,576 | 1,335,405 |
Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 106,683 | |
Short-term investments: | ||
Short-term investments | 1,313,938 | 1,228,722 |
Total cash equivalents and short-term investments | 1,366,576 | 1,335,405 |
Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 51,690 | |
Short-term investments: | ||
Short-term investments | 0 | 0 |
Total cash equivalents and short-term investments | 52,638 | 51,690 |
Fair Value, Measurements, Recurring | Level II | ||
Cash equivalents: | ||
Fair Value | 54,993 | |
Short-term investments: | ||
Short-term investments | 1,313,938 | 1,228,722 |
Total cash equivalents and short-term investments | 1,313,938 | 1,283,715 |
Fair Value, Measurements, Recurring | Level III | ||
Cash equivalents: | ||
Fair Value | 0 | |
Short-term investments: | ||
Short-term investments | 0 | 0 |
Total cash equivalents and short-term investments | 0 | 0 |
Money market funds | ||
Cash equivalents: | ||
Fair Value | 52,638 | 51,690 |
Money market funds | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 52,638 | 51,690 |
Money market funds | Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 52,638 | 51,690 |
Money market funds | Fair Value, Measurements, Recurring | Level II | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Money market funds | Fair Value, Measurements, Recurring | Level III | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
U.S. treasury securities | ||
Cash equivalents: | ||
Fair Value | 39,996 | |
Short-term investments: | ||
Short-term investments | 382,929 | 415,564 |
U.S. treasury securities | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 39,996 | |
Short-term investments: | ||
Short-term investments | 382,929 | 415,564 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 0 | |
Short-term investments: | ||
Short-term investments | 0 | 0 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level II | ||
Cash equivalents: | ||
Fair Value | 39,996 | |
Short-term investments: | ||
Short-term investments | 382,929 | 415,564 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level III | ||
Cash equivalents: | ||
Fair Value | 0 | |
Short-term investments: | ||
Short-term investments | 0 | 0 |
U.S. government agency securities | ||
Cash equivalents: | ||
Fair Value | 14,997 | |
Short-term investments: | ||
Short-term investments | 718,368 | 595,797 |
U.S. government agency securities | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 14,997 | |
Short-term investments: | ||
Short-term investments | 718,368 | 595,797 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 0 | |
Short-term investments: | ||
Short-term investments | 0 | 0 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level II | ||
Cash equivalents: | ||
Fair Value | 14,997 | |
Short-term investments: | ||
Short-term investments | 718,368 | 595,797 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level III | ||
Cash equivalents: | ||
Fair Value | 0 | |
Short-term investments: | ||
Short-term investments | 0 | 0 |
Corporate debt securities | ||
Short-term investments: | ||
Short-term investments | 212,641 | 217,361 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Short-term investments: | ||
Short-term investments | 212,641 | 217,361 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level I | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level II | ||
Short-term investments: | ||
Short-term investments | 212,641 | 217,361 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level III | ||
Short-term investments: | ||
Short-term investments | $ 0 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jul. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 138,202 | $ 126,362 |
Less: Accumulated depreciation and amortization | (54,226) | (50,628) |
Total property and equipment, net | 83,976 | 75,734 |
Hosting equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 97,511 | 87,418 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,221 | 3,875 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,311 | 1,311 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 26,931 | 23,081 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,017 | 1,965 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,211 | $ 8,712 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 6,092 | $ 3,582 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2020 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross, beginning balance | $ 28,316 | ||
Additions | 0 | ||
Intangible Assets, Gross, ending balance | 28,316 | ||
Accumulated Amortization, beginning balance | (4,292) | ||
Amortization Expense | (1,577) | $ (779) | |
Accumulated Amortization, ending balance | (5,869) | ||
Total | 22,447 | $ 24,024 | |
Developed technology | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross, beginning balance | 26,856 | ||
Additions | 0 | ||
Intangible Assets, Gross, ending balance | 26,856 | ||
Accumulated Amortization, beginning balance | (4,206) | ||
Amortization Expense | (1,504) | ||
Accumulated Amortization, ending balance | (5,710) | ||
Total | 21,146 | 22,650 | |
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross, beginning balance | 1,460 | ||
Additions | 0 | ||
Intangible Assets, Gross, ending balance | 1,460 | ||
Accumulated Amortization, beginning balance | (86) | ||
Amortization Expense | (73) | ||
Accumulated Amortization, ending balance | (159) | ||
Total | $ 1,301 | $ 1,374 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 30,059 | $ 30,059 | |
Amortization expense of acquired intangible assets | $ 1,577 | $ 779 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jul. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 (remaining nine months) | $ 4,732 | |
2022 | 5,700 | |
2023 | 5,196 | |
2024 | 3,761 | |
2025 | 3,058 | |
Total | $ 22,447 | $ 24,024 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) | Jun. 25, 2020USD ($)trading_day$ / shares | Jun. 30, 2020USD ($) | Jun. 02, 2025trading_day | Jul. 25, 2023USD ($) | Oct. 31, 2020USD ($) | Jul. 31, 2020USD ($) |
Debt Instrument [Line Items] | ||||||
Proceeds from debt issuance | $ 1,130,500,000 | |||||
Threshold trading days | trading_day | 20 | |||||
Threshold consecutive trading days | trading_day | 30 | |||||
Threshold percentage of share price that triggers conversion | 130.00% | |||||
Number of trading days | 5 days | |||||
Number of consecutive trading days | 5 days | |||||
Percentage of closing price (less than) | 98.00% | |||||
Redemption price, percentage of principal | 100.00% | |||||
Effective interest rate | 5.75% | |||||
Carrying amount of equity component | $ 278,500,000 | |||||
Unamortized debt issuance costs | 19,500,000 | $ 13,861,000 | $ 14,556,000 | |||
Equity issuance costs | 4,700,000 | |||||
Net carrying amount of equity component | 273,400,000 | |||||
Deferred tax impact | $ 400,000 | |||||
Fair value of notes | $ 1,338,500,000 | |||||
Initial strike price (in dollars per share) | $ / shares | $ 150.80 | |||||
Initial cap price (in shares) | $ / shares | $ 246.76 | |||||
Net cost of capped call | $ 145,200,000 | |||||
Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ 14,800,000 | |||||
Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Threshold trading days | trading_day | 20 | |||||
Threshold consecutive trading days | trading_day | 30 | |||||
Threshold percentage of share price that triggers conversion | 130.00% | |||||
Redemption price, percentage of principal | 100.00% | |||||
Minimum principal amount outstanding not subject to partial redemption | $ 100,000,000 | |||||
Convertible Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 1,150,000,000 | |||||
Interest rate | 0.125% | |||||
Effective interest rate | 6.03% | |||||
Convertible Senior Notes, $150 million | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 150,000,000 |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of Notes (Details) shares in Thousands, segment in Millions | Jun. 25, 2020shares$ / shares | Oct. 31, 2020segment$ / shares |
Debt Disclosure [Abstract] | ||
Initial Conversion Rate per $1,000 Principal | 0.0066 | |
Initial conversion price (in dollars per share) | $ 150.80 | $ 150.80 |
Initial Number of Shares (in shares) | 7,626 | 7.6 |
Convertible Senior Notes - Carr
Convertible Senior Notes - Carrying Amounts (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jul. 31, 2020 | Jun. 25, 2020 |
Convertible Debt [Abstract] | |||
Principal amount | $ 1,150,000 | $ 1,150,000 | |
Unamortized debt discount | 261,780 | 273,829 | |
Unamortized debt issuance costs | 13,861 | 14,556 | $ 19,500 |
Net carrying amount | $ 874,359 | $ 861,615 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense (Details) $ in Thousands | 3 Months Ended |
Oct. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | |
Contractual interest expense | $ 359 |
Amortization of debt discount | 12,049 |
Amortization of issuance costs | 641 |
Total | $ 13,049 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Oct. 31, 2020USD ($)periodshares | Oct. 31, 2019USD ($)$ / shares | Jul. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 22,600,000 | ||
Exercised, aggregate intrinsic value | $ | $ 91,378 | $ 30,800 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 22.76 | ||
Granted (in shares) | 0 | ||
Unrecognized compensation cost | $ | $ 524,800 | ||
Unrecognized compensation cost, weighted-average | 2 years 10 months 24 days | ||
Capitalized stock-based compensation | $ | $ 1,500 | $ 800 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Performance stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares outstanding (in shares) | 700,000 | ||
Employee Stock | 2018 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (in shares) | 6,000,000 | ||
Shares available for grant (in shares) | 2,700,000 | ||
Duration of offering period | 24 months | ||
Number of purchases periods | period | 4 | ||
Duration of purchase periods | 6 months | ||
Accrued compensation | $ | $ 8,900 | $ 3,500 | |
Vesting one year from vesting commencing date | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 25.00% | ||
Common Stock | 2018 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (in shares) | 31,700,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2020 | |
Outstanding Stock Options | |||
Beginning balance (in shares) | 5,175,000 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (690,000) | ||
Canceled, forfeited, or expired (in shares) | (10,000) | ||
Ending balance (in shares) | 4,475,000 | 5,175,000 | |
Exercisable and expected to vest (in shares) | 2,415,000 | 2,546,000 | |
Weighted-Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 8.90 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 6.55 | ||
Canceled, forfeited, or expired (in dollars per share) | 8.64 | ||
Ending balance (in dollars per share) | 9.27 | $ 8.90 | |
Exercisable and expected to vest (in dollars per share) | $ 7.44 | $ 6.46 | |
Additional Disclosures | |||
Options outstanding, weighted average remaining contractual term | 3 years 9 months 18 days | 4 years | |
Exercisable and expected to vest, weighted average remaining contractual term | 3 years 4 months 24 days | 3 years 6 months | |
Options outstanding, aggregate intrinsic value | $ 566,049 | $ 625,904 | |
Exercised, aggregate intrinsic value | 91,378 | $ 30,800 | |
Exercisable and expected to vest, aggregate intrinsic value | $ 309,854 | $ 314,111 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of RSU and PSA Activity (Details) - Restricted Stock Units and Performance Stock Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Jul. 31, 2020 | |
Underlying Shares | ||
Beginning balance (in shares) | 8,553 | |
Granted (in shares) | 737 | |
Vested (in shares) | (646) | |
Canceled or forfeited (in shares) | (122) | |
Ending balance (in shares) | 8,522 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 60.72 | |
Granted (in dollars per share) | 131.94 | |
Vested (in dollars per share) | 64.11 | |
Canceled or forfeited (in shares) | 68.97 | |
Ending balance (in dollars per share) | $ 66.50 | |
Aggregate Intrinsic Value | ||
Balance | $ 1,156,879 | $ 1,110,694 |
Vested | $ 85,671 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 57,185 | $ 18,376 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 3,009 | 1,381 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 31,316 | 10,039 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 14,123 | 4,874 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 8,737 | $ 2,082 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 498 | $ 794 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (55,006) | $ (17,076) |
Weighted-average shares used in computing net loss per share, basic and diluted (in shares) | 133,452 | 127,548 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.41) | $ (0.13) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities Excluded from Computation (Details) - shares shares in Thousands | 3 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 13,760 | 14,489 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 4,475 | 8,296 |
Unvested RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 8,156 | 4,671 |
Unvested PSAs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 577 | 557 |
Number of unvested PSAs as a percentage of target | 100.00% | |
Shares subject to repurchase from early exercised stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 5 | 92 |
Share purchase rights under the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 547 | 873 |
Net Loss Per Share Attributab_5
Net Loss Per Share Attributable to Common Stockholders - Narrative (Details) shares in Thousands, segment in Millions | Jun. 25, 2020shares$ / shares | Oct. 31, 2020segment$ / shares |
Earnings Per Share [Abstract] | ||
Number of shares if notes converted (in shares) | 7,626 | 7.6 |
Conversion price (in dollars per share) | $ 150.80 | $ 150.80 |
Uncategorized Items - zs-202010
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 0 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 0 |