Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jul. 31, 2023 | Aug. 31, 2023 | Jan. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jul. 31, 2023 | ||
Current Fiscal Year End Date | --07-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9.8 | ||
Shares Outstanding | 147,168,773 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement relating to its fiscal year 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K where indicated. Such Proxy Statement will be filed with the United States Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates. | ||
Entity Central Index Key | 0001713683 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jul. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | San Jose, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,262,206 | $ 1,013,210 |
Short-term investments | 838,026 | 718,129 |
Accounts receivable, net | 582,636 | 399,745 |
Deferred contract acquisition costs | 115,827 | 86,210 |
Prepaid expenses and other current assets | 91,619 | 39,353 |
Total current assets | 2,890,314 | 2,256,647 |
Property and equipment, net | 242,355 | 160,633 |
Operating lease right-of-use assets | 70,671 | 72,357 |
Deferred contract acquisition costs, noncurrent | 259,407 | 210,792 |
Acquired intangible assets, net | 25,859 | 31,819 |
Goodwill | 89,192 | 78,547 |
Other noncurrent assets | 30,519 | 21,870 |
Total assets | 3,608,317 | 2,832,665 |
Current liabilities: | ||
Accounts payable | 18,481 | 26,154 |
Accrued expenses and other current liabilities | 64,975 | 46,496 |
Accrued compensation | 136,800 | 111,948 |
Deferred revenue | 1,281,143 | 923,749 |
Operating lease liabilities | 34,469 | 26,100 |
Total current liabilities | 1,535,868 | 1,134,447 |
Convertible senior notes, net | 1,134,159 | 968,674 |
Deferred revenue, noncurrent | 158,533 | 97,374 |
Operating lease liabilities, noncurrent | 41,917 | 50,948 |
Other noncurrent liabilities | 12,728 | 7,922 |
Total liabilities | 2,883,205 | 2,259,365 |
Commitments and contingencies (Note 12) | ||
Stockholders’ Equity | ||
Preferred stock; $0.001 par value; 200,000 shares authorized as of July 31, 2023 and 2022, respectively; no shares issued and outstanding as of July 31, 2023 and 2022 | 0 | 0 |
Common stock; $0.001 par value; 1,000,000 shares authorized as of July 31, 2023 and 2022, respectively; 147,169 and 143,038 shares issued and outstanding as of July 31, 2023 and 2022, respectively | 147 | 143 |
Additional paid-in capital | 1,816,915 | 1,590,885 |
Accumulated other comprehensive loss | (1,576) | (25,850) |
Accumulated deficit | (1,090,374) | (991,878) |
Total stockholders’ equity | 725,112 | 573,300 |
Total liabilities and stockholders’ equity | $ 3,608,317 | $ 2,832,665 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2023 | Jul. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
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) | 147,169,000 | 143,038,000 |
Common stock, shares outstanding (in shares) | 147,169,000 | 143,038,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 1,616,952 | $ 1,090,946 | $ 673,100 |
Cost of revenue | 362,832 | 242,282 | 150,317 |
Gross profit | 1,254,120 | 848,664 | 522,783 |
Operating expenses: | |||
Sales and marketing | 953,864 | 735,219 | 459,407 |
Research and development | 349,735 | 289,139 | 174,653 |
General and administrative | 177,544 | 151,735 | 96,535 |
Restructuring and other charges | 7,600 | 0 | 0 |
Total operating expenses | 1,488,743 | 1,176,093 | 730,595 |
Loss from operations | (234,623) | (327,429) | (207,812) |
Interest income | 60,462 | 4,586 | 2,812 |
Interest expense | (6,541) | (56,579) | (53,364) |
Other income (expense), net | (1,862) | (4,208) | 1,186 |
Loss before income taxes | (182,564) | (383,630) | (257,178) |
Provision for income taxes | 19,771 | 6,648 | 4,851 |
Net loss | $ (202,335) | $ (390,278) | $ (262,029) |
Net loss per share, basic (in dollars per share) | $ (1.40) | $ (2.77) | $ (1.93) |
Net loss per share, diluted (in dollars per share) | $ (1.40) | $ (2.77) | $ (1.93) |
Weighted-average shares used in computing net loss per share, basic (in shares) | 144,942 | 140,895 | 135,654 |
Weighted-average shares used in computing net loss per share, diluted (in shares) | 144,942 | 140,895 | 135,654 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (202,335) | $ (390,278) | $ (262,029) |
Available-for-sale securities: | |||
Change in net unrealized gains (losses) on available-for-sale securities | 1,592 | (12,083) | (486) |
Cash flow hedging instruments: | |||
Change in net unrealized gains (losses) | 11,103 | (20,130) | (228) |
Net realized losses (gains) reclassified into net loss | 11,579 | 7,013 | (399) |
Net change on cash flow hedges | 22,682 | (13,117) | (627) |
Other comprehensive income (loss) | 24,274 | (25,200) | (1,113) |
Comprehensive loss | $ (178,061) | $ (415,478) | $ (263,142) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Jul. 31, 2020 | 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) | 2,466 | |||||||
Issuance of common stock upon exercise of stock options | 18,221 | $ 3 | 18,218 | |||||
Issuance of common stock under the employee stock purchase plan (in shares) | 338 | |||||||
Issuance of common stock under the employee stock purchase plan | 25,704 | 25,704 | ||||||
Vesting of restricted stock units and other stock issuances (in shares) | 3,041 | |||||||
Vesting of restricted stock units and other stock issuances | 0 | $ 3 | (3) | |||||
Vesting of early exercised stock options | 93 | 93 | ||||||
Stock-based compensation | 263,190 | 263,190 | ||||||
Other comprehensive income (loss) | (1,113) | (1,113) | ||||||
Net loss | (262,029) | (262,029) | ||||||
Ending balance (in shares) at Jul. 31, 2021 | 138,662 | |||||||
Ending balance at Jul. 31, 2021 | 528,895 | $ 139 | 1,131,006 | (650) | (601,600) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | 905 | |||||||
Issuance of common stock upon exercise of stock options | 6,943 | 6,943 | ||||||
Issuance of common stock under the employee stock purchase plan (in shares) | 319 | |||||||
Issuance of common stock under the employee stock purchase plan | 34,649 | 34,649 | ||||||
Vesting of restricted stock units and other stock issuances (in shares) | 3,152 | |||||||
Vesting of restricted stock units and other stock issuances | 1,703 | $ 4 | 1,699 | |||||
Stock-based compensation | 416,588 | 416,588 | ||||||
Other comprehensive income (loss) | (25,200) | (25,200) | ||||||
Net loss | $ (390,278) | (390,278) | ||||||
Ending balance (in shares) at Jul. 31, 2022 | 143,038 | 143,038 | ||||||
Ending balance at Jul. 31, 2022 | $ 573,300 | $ (169,899) | $ 143 | 1,590,885 | $ (273,738) | (25,850) | (991,878) | $ 103,839 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||||
Issuance of common stock upon exercise of stock options (in shares) | 451 | 451 | ||||||
Issuance of common stock upon exercise of stock options | $ 3,944 | 3,944 | ||||||
Issuance of common stock under the employee stock purchase plan (in shares) | 425 | |||||||
Issuance of common stock under the employee stock purchase plan | 42,263 | 42,263 | ||||||
Vesting of restricted stock units and other stock issuances (in shares) | 3,255 | |||||||
Vesting of restricted stock units and other stock issuances | 0 | $ 4 | (4) | |||||
Stock-based compensation | 453,565 | 453,565 | ||||||
Other comprehensive income (loss) | 24,274 | 24,274 | ||||||
Net loss | $ (202,335) | (202,335) | ||||||
Ending balance (in shares) at Jul. 31, 2023 | 147,169 | 147,169 | ||||||
Ending balance at Jul. 31, 2023 | $ 725,112 | $ 147 | $ 1,816,915 | $ (1,576) | $ (1,090,374) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Cash Flows From Operating Activities | |||
Net loss | $ (202,335) | $ (390,278) | $ (262,029) |
Adjustments to reconcile net loss to cash provided by operating activities: | |||
Depreciation and amortization expense | 55,756 | 40,456 | 29,663 |
Amortization expense of acquired intangible assets | 11,060 | 9,010 | 6,795 |
Amortization of deferred contract acquisition costs | 98,718 | 68,531 | 40,558 |
Amortization of debt discount and issuance costs | 3,894 | 55,141 | 51,923 |
Non-cash operating lease costs | 32,212 | 25,626 | 20,995 |
Stock-based compensation expense | 444,834 | 409,562 | 258,535 |
Amortization (accretion) of investments purchased at a premium (discount) | (6,582) | 6,580 | 11,715 |
Unrealized (gains) losses on hedging transactions | (3,319) | 1,499 | 209 |
Deferred income taxes | 352 | (562) | (2,406) |
Impairment of assets | 0 | 0 | 416 |
Other | (820) | (1,104) | 98 |
Changes in operating assets and liabilities, net of effects of business combinations | |||
Accounts receivable | (183,858) | (143,336) | (111,605) |
Deferred contract acquisition costs | (176,950) | (158,503) | (137,673) |
Prepaid expenses, other current and noncurrent assets | (39,922) | (10,287) | (3,388) |
Accounts payable | (8,416) | 14,358 | 7,451 |
Accrued expenses, other current and noncurrent liabilities | 26,814 | 13,377 | 6,532 |
Accrued compensation | 24,538 | 18,326 | 43,877 |
Deferred revenue | 418,564 | 391,179 | 262,425 |
Operating lease liabilities | (32,197) | (27,663) | (22,051) |
Net cash provided by operating activities | 462,343 | 321,912 | 202,040 |
Cash Flows From Investing Activities | |||
Purchases of property, equipment and other assets | (97,197) | (69,296) | (48,165) |
Capitalized internal-use software | (31,527) | (21,284) | (10,132) |
Payments for business acquisitions, net of cash acquired | (15,643) | (25,287) | (40,530) |
Purchase of strategic investments | (3,206) | 0 | (3,077) |
Purchases of short-term investments | (1,064,143) | (844,944) | (815,480) |
Proceeds from maturities of short-term investments | 901,849 | 1,334,874 | 785,217 |
Proceeds from sale of short-term investments | 50,530 | 0 | 22,499 |
Net cash provided by (used in) investing activities | (259,337) | 374,063 | (109,668) |
Cash Flows From Financing Activities | |||
Proceeds from issuance of common stock upon exercise of stock options | 3,944 | 6,943 | 18,221 |
Proceeds from issuance of common stock under the employee stock purchase plan | 42,263 | 34,649 | 25,704 |
Payment of deferred consideration related to business acquisitions | (215) | (250) | (2,250) |
Other | (2) | (5) | 0 |
Net cash provided by financing activities | 45,990 | 41,337 | 41,675 |
Net increase in cash and cash equivalents | 248,996 | 737,312 | 134,047 |
Cash and cash equivalents at beginning of period | 1,013,210 | 275,898 | 141,851 |
Cash and cash equivalents at end of period | 1,262,206 | 1,013,210 | 275,898 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for income taxes, net of tax refunds | 14,940 | 5,606 | 4,144 |
Cash paid for interest expense | 1,438 | 1,438 | 1,462 |
Non-Cash Activities | |||
Net change in purchased equipment included in accounts payable and accrued expenses | 1,588 | (997) | 14 |
Operating lease right-of-use assets obtained in exchange for operating lease obligations, net of terminations | 29,129 | 51,962 | 27,627 |
Vesting of early exercised common stock options | $ 0 | $ 0 | $ 93 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2023 | |
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 fast and secure access to cloud resources based on identity, context and organization’s policies. Our solution is a purpose-built, multi-tenant, distributed cloud platform that incorporates the security functionality needed to enable users, applications, and devices to safely and efficiently utilize authorized applications and services based on an organization’s business policies. 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. Fiscal Year Our fiscal year ends on July 31. References to fiscal 2023, for example, refer to our fiscal year ended July 31, 2023. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and have been prepared in conformity with generally accepted accounting principles in the United States ("GAAP"). All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of 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, capitalized internal-use software, valuation of acquired intangible assets, 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, recoverability of goodwill, valuation of deferred tax assets and liabilities, loss contingencies related to litigation, fair value of convertible senior notes 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 consolidated financial statements. Due to uncertainty in the macroeconomic environment, including effects of COVID-19 and inflation, there is ongoing 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 consolidated financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained. Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, monetary assets and liabilities of our foreign subsidiaries are re-measured into U.S. dollars at the exchange rates in effect at the reporting date, non-monetary assets and liabilities are re-measured at historical rates, revenue and expenses are re-measured at average exchange rates in effect during each reporting period. Foreign currency transaction gains and losses are recorded in other income (expense), net in the consolidated statements of operations. Foreign currency remeasurement gains and losses and foreign currency transaction gains and losses are not significant to the consolidated financial statements. Concentration of Risks We generate revenue primarily from sale of subscriptions to access our cloud platform, together with related support services. Our sales team, along with our channel partner network of global telecommunications service providers, system integrators and value-added resellers (collectively "channel partners"), sells our services worldwide to organizations of all sizes. Due to the nature of our services and the terms and conditions of our contracts with our channel partners, our business could be affected unfavorably if we are not able to continue our relationships with them. Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. Although we deposit our cash with multiple financial institutions, the deposits, at times, may exceed federally insured limits. Cash equivalents and short-term investments consist of highly liquid investments in money market funds, U.S. treasury, U.S. agency securities and corporate debt securities, which are invested through financial institutions in the United States. We grant credit to our customers in the normal course of business. We monitor the financial condition of our customers to reduce credit risk. Refer to Note 2, Revenue Recognition, for information regarding customers with concentration of 10% or more of the total balance of accounts receivable, net. Segment Information We operate as one reportable and operating segment. Our chief operating decision maker is our chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. Revenue Recognition In accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue From Contracts With Customers ("ASC 606"), revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these services. To achieve the core principle of this standard, we apply the following five steps: 1) Identify the contract with a customer We consider the terms and conditions of the contracts and our customary business practices in identifying our contracts under ASC 606. We determine we have a contract with a customer when the contract is approved, we can identify each party’s rights regarding the services to be transferred, we can identify the payment terms for the services, we have determined the customer has the ability and intent to pay and the contract has commercial substance. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. Our performance obligations consist of (i) our subscription and support services and (ii) professional and other services. 3) Determine the transaction price The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of our contracts contain a significant financing component. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price ("SSP"). 5) Recognize revenue when or as we satisfy a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised service to a customer. Revenue is recognized when control of the services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those services. We generate all our revenue from contracts with customers and apply judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Subscription and Support Revenue We generate revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. Arrangements with customers do not provide the customer with the right to take possession of our software operating our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. A time-elapsed output method is used to measure progress because we transfer control evenly over the contractual period. Accordingly, the fixed consideration related to subscription and support revenue is generally recognized on a straight-line basis over the contract term beginning on the date that our service is made available to the customer. The typical subscription and support term is one Professional and Other Services Revenue Professional and other services revenue consists of fees associated with providing deployment advisory services that educate and assist our customers on the best use of our solutions, as well as advise customers on best practices as they deploy our solution. These services are distinct from subscription and support services. Professional services do not result in significant customization of the subscription service. Revenue from professional services provided on a time and materials basis is recognized as the services are performed. Total professional and other services revenue has historically not been material. Contracts with Multiple Performance Obligations Most of our contracts with customers contain multiple promised services consisting of: (i) our subscription and support services and (ii) professional and other services that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on our overall pricing objectives, taking into consideration the type of subscription and support services and professional and other services, the geographical region of the customer and the number of users. Variable Consideration Revenue from sales is recorded at the net sales price, which is the transaction price, and includes estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved. If our services do not meet certain service level commitments, our customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. We have historically not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts. Accordingly, estimated refunds related to these agreements were not material to the periods presented. We provide rebates and other credits within our contracts with certain customers, which are estimated based on the value expected to be earned or claimed on the related sales transaction. Overall, the transaction price is reduced to reflect our estimate of the amount of consideration to which we are entitled based on the terms of the contract. Estimated rebates and other credits were not material during the periods presented. 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) ("AOCI"). 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 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 receivable, 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) and realized gains and losses are included in interest income in the 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. Strategic Investments Our strategic investments consist of non-marketable equity investments of privately held companies. Investments in non-marketable equity investments of privately held companies without readily determinable fair values are measured using the measurement alternative, as we have less than 20% ownership and do not have the ability to exercise significant influence over their operations. The carrying amount of non-marketable equity investments is adjusted based on observable price changes from orderly transactions for identical or similar investments of the same issuer and by impairments when events or circumstances indicate a decline in value has occurred. Non-marketable equity investments that have been remeasured during the period due to an observable event or impairment are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the investments we hold. Our strategic investments are included within other noncurrent assets in the consolidated balance sheets and adjustments to their carrying amounts are recorded in other income (expense), net in the consolidated statements of operations. There were no material events or circumstances impacting the carrying amount of our strategic investments during the periods presented. Fair Value of Financial Instruments Our financial instruments consist of cash equivalents, short-term investments, accounts receivable, accounts payable, accrued liabilities, derivative instruments and convertible senior notes. Cash e quivalents and short-term investments are recorded at fair value. Accounts receivable, accounts payable and accrued liabilities are stated at their carrying value, which approximates fair value due to the short-time to the expected receipt or payment date. Assets recorded at fair value on a recurring basis in the consolidated balance sheets, consisting of cash equivalents and short-term investments, are categorized in accordance with the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their fair values. Through July 31, 2022, we carried the c onvertible senior notes at the initially allocated liability value less unamortized debt discount and issuance costs on our consolidated balance sheet. Effective August 1, 2022, upon adoption of ASU 2020-06, we carry the convertible senior notes at face value less debt issuance costs on our consolidated balance sheet. For further information, refer to Convertible Senior Notes section in this Note 1, Business and Summary of Significant Accounting Policies. T he fair value of the convertible senior notes is presented at each reporting period for disclosure purposes only. Property and Equipment Property and equipment, net are stated at historical cost net of accumulated depreciation. Property and equipment, excluding leasehold improvements, are depreciated using the straight-line method over the estimated useful lives of the respective assets, generally ranging from three Capitalized Internal-Use Software We capitalize certain costs incurred during the application development stage in connection with software development for our cloud security platform. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Capitalized costs are recorded as part of property and equipment in the consolidated balance sheets. Maintenance and training costs are expensed as incurred. Capitalized internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years, and is recorded as cost of revenue in the consolidated statements of operations. Capitalization of development costs, inclusive of stock-based compensation, of software for internal-use in fiscal 2023, fiscal 2022 and fiscal 2021 was $48.6 million, $32.7 million and $16.5 million, respectively. Amortization expense of capitalized software for internal-use in fiscal 2023, fiscal 2022 and fiscal 2021 was $24.2 million, $13.0 million and $5.9 million, respectively. Business Combinations We account for our business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, we make estimates and assumptions, especially with respect to intangible assets. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, we may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred. Goodwill and Other Long-Lived Assets, including Acquired Intangible Assets Goodwill represents the excess of the fair value of purchase consideration in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually or more often if circumstances indicate that the carrying value may not be recoverable. There was no impairment of goodwill during any of the periods presented. Acquired intangible assets consist of identifiable intangible assets, including developed technology and customer relationships, resulting from business combinations. Acquired finite-lived intangible assets are initially recorded at fair value and are amortized on a straight-line basis over their estimated useful lives. Amortization expense of developed technology and customer relationships is recorded primarily within cost of revenues and sales and marketing expenses, respectively, in the consolidated statements of operations. Long-lived assets, such as property and equipment and acquired intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. We measure the recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that these assets are expected to generate. If the total of the future undiscounted cash flows are less than the carrying amount of an asset, we record an impairment charge for the amount by which the carrying amount of the asset exceeds the fair value. In fiscal 2023 and 2022, there were no asset impairments. In fiscal 2021, we recognized asset impairments of $0.4 million in g eneral and administrative expenses in the consolidated statement of operations related primarily to the abandonment of a leased facility and relocation of our corporate headquarters. Restructuring and Other Charges Restructuring and other charges occur when we commit to a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the restructuring plan are not likely and employees who are impacted have been notified of the pending involuntary termination. A restructuring plan generally includes significant actions involving employee-related severance charges, employee-related benefits, stock-based compensation expense related to the modification of equity incentive awards and other charges associated with the restructuring (the "restructuring charges"). Restructuring charges are accrued in the period in which it is probable that the employees are entitled to the restructuring benefits and the amounts can be reasonably estimated. Restructuring charges are recorded within restructuring and other charges in the consolidated statement of operations. The restructuring liability accrued but not paid at the end of the reporting period is included within accrued compensation in the consolidated balance sheets. Derivative Instruments We enter into foreign currency forward contracts, a portion of which we designate as cash flow hedges, in order to manage the volatility of cash flows that relate to our cost of revenues and operating expenses denominated in foreign currencies. We also use interest rate swaps to economically convert a certain tranche of our fixed interest rate convertible senior notes to floating interest rates, in order to match the floating rate nature of a portion of our cash, cash equivalents, and short-term investments. These interest rate swaps are designated as fair value hedges, and changes in fair value of the interest rate swaps offset the changes in fair market value of the convertible senior notes due to benchmark interest rate movements. Gains or losses related to our fair value hedges are included within interest expense in the consolidated statement of operations in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. We measure hedge effectiveness of the interest rate swaps using regression analysis at inception and periodically thereafter. Gains or losses related to our cash flow hedges are recorded as a component of AOCI in the consolidated statements of stockholders' equity until the forecasted transaction occurs in earnings. When the forecasted transaction occurs, the related gains and losses are reclassified into earnings within the financial statement line item associated with the underlying hedged transaction. If the underlying hedged transaction does not occur, or it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into earnings within the financial statement line item associated with the underlying hedged transaction. We measure hedge effectiveness using regression analysis at hedge inception and periodically thereafter. We include time value in our effectiveness assessment. We recognize changes in the fair value of non-designated derivative instruments within other income (expense), net in the consolidated statements of operations in the same period that the fair value measurement occurs. All of our derivative instruments are measured at fair value. We have elected to present the derivative assets and derivative liabilities on a gross basis on the consolidated balance sheets. Derivative instruments are classified in the consolidated statements of cash flows as cash from operating activities, which reflect the classification of the underlying hedged transactions. Operating Leases We enter into operating lease arrangements for real estate assets related to office space and co-location assets related to space and racks at data center facilities. We determine if an arrangement contains a lease at its inception by assessing whether there is an identified asset and whether the arrangement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases related balances are included in "operating lease right-of-use assets," "operating lease liabilities," and "operating lease liabilities, noncurrent" in the consolidated balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement. The operating lease liabilities are adjusted for any unpaid lease incentives, such as tenant improvement allowances. Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. As the implicit rate of our leases is not determinable, we use an incremental borrowing rate ("IBR") based on the information available at the lease commencement date in determining the present value of lease payments. The lease expense is recognized on a straight-line basis over the lease term. We generally use the base, non-cancelable lease term when recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. We account for lease components and non-lease components as a single lease component. Leases with a term of twelve months or less are not recognized on the consolidated balance sheets. Stock-Based Compensation Compensation expense related to stock-based awards granted to employees and non-employees is calculated based on the fair value of stock-based awards on the date of grant. We recognize stock-based compensation expense over an award’s requisite service period based on the award’s fair value. Stock-based compensation for common stock options is recognized based on the fair value of the awards granted, determined using the Black-Scholes option pricing model. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, generally four years. Stock-based compensation for purchase rights granted under the employee stock purchase plan is based on the fair value of the number of awards estimated at the beginning of the offering period, as determined using the Black-Scholes option pricing model. Stock-based compensation expense is recognized following the straight-line attribution method over the offering period. Stock-based compensation for restricted stock units is measured based on the market closing price of our common stock on the grant date. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, generally four years. Stock-based compensation for performance stock awards (“PSAs”), which have the same grant date and service inception date, is based on the probable number of shares to be attained and the market closing price of our common stock at the grant date. For PSAs where the service inception date of the awards precedes the grant date, stock-based compensation expense is recognized based on the number of PSAs for which it is probable that the performance condition will be met, using the accelerated attribution method and the market closing price of our common stock at each reporting date up to the grant date. The number of these PSAs for which it is probable that the performance condition will be met is determined using management’s best estimate at the end of each reporting period. At the completion of the performance period for these PSAs, any earned PSAs are granted upon approval of the compensation committee of our board of directors. Convertible Senior Notes We adopted Financial Accounting Standard Board ("FASB") issued Accounting Standard Update ("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) ("ASU 2020-06") as of August 1, 2022, the beginning of fiscal 2023, using the modified retrospective method. Prior to the adoption of ASU 2020-06, in accounting for the issuance of the convertible senior notes, the convertible senior notes were separated into liability and equity components. The carrying amounts of the liability component was calculated by measuring the fair value of similar liabilities that do not have |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jul. 31, 2023 | |
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% of our revenue for each of the fiscal 2023, fiscal 2022 and fiscal 2021, respectively. The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform: Year Ended July 31, 2023 2022 2021 Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except for percentage data) United States $ 808,527 50 % $ 536,924 49 % $ 329,299 49 % Europe, Middle East and Africa (*) 515,136 32 370,035 34 253,138 38 Asia Pacific 241,250 15 155,460 14 76,105 11 Other 52,039 3 28,527 3 14,558 2 Total $ 1,616,952 100 % $ 1,090,946 100 % $ 673,100 100 % _____ (*) Revenue from the United Kingdom represented 10% of our revenue in fiscal 2021. Revenue from the United Kingdom represented less than 10% of our revenue in fiscal 2022 and fiscal 2023. The following table summarizes the revenue from contracts by type of customer: Year Ended July 31, 2023 2022 2021 Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except for percentage data) Channel partners $ 1,488,379 92 % $ 1,016,747 93 % $ 632,416 94 % Direct customers 128,573 8 74,199 7 40,684 6 Total $ 1,616,952 100 % $ 1,090,946 100 % $ 673,100 100 % Significant Customers No single customer accounted for 10% or more of the total revenue or the total balance of accounts receivable, net in the periods presented. 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. Deferred revenue, including current and noncurrent balances as of July 31, 2023 and July 31, 2022 was $1,439.7 million and $1,021.1 million, respectively. In fiscal 2023, fiscal 2022 and fiscal 2021 we recognized revenue of $919.9 million, $570.3 million and $335.5 million, respectively, that was included in the corresponding contract liability balance at the beginning of the related fiscal year. We receive payments from customers based upon contractual billing schedules and accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days but may be up to 90 days for some of our channel partners. Contract assets include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced and such amounts have historically not been material. 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 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 consolidated balance sheets. We determine whether costs should be deferred based on our sales compensation plans, if the commissions are in fact incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit of five years while commissions paid for renewal contracts are amortized over the contractual term of the renewals. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the consolidated statements of operations. We determine the period of benefit for commissions paid for the acquisition of the initial contract by taking into consideration the expected subscription term and expected renewals of our customer contracts, the duration of our relationships with our customers, customer retention data, our technology development lifecycle and other factors. We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. We did not recognize any impairment losses of deferred contract acquisition costs during the periods presented. The activity of the deferred contract acquisition costs consisted of the following: Year Ended July 31, 2023 2022 2021 (in thousands) Beginning balance $ 297,002 $ 207,030 $ 109,915 Capitalization of contract acquisition costs 176,950 158,503 137,673 Amortization of deferred contract acquisition costs (98,718) (68,531) (40,558) Ending balance $ 375,234 $ 297,002 $ 207,030 The outstanding balance of the deferred contract acquisition costs consisted of the following: July 31, 2023 2022 (in thousands) Deferred contract acquisition costs, current $ 115,827 $ 86,210 Deferred contract acquisition costs, noncurrent 259,407 210,792 Total deferred contract acquisition costs $ 375,234 $ 297,002 Sales commissions accrued but not paid as of July 31, 2023 and 2022, totaled $48.0 million and $47.2 million, respectively, which are included within accrued compensation in the consolidated balance sheets. |
Cash Equivalents and Short-Term
Cash Equivalents and Short-Term Investments | 12 Months Ended |
Jul. 31, 2023 | |
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 July 31, 2023: Amortized Unrealized Unrealized Fair Value (in thousands) Cash equivalents: Money market funds $ 768,003 $ — $ — $ 768,003 U.S. treasury securities 157,250 — (30) 157,220 U.S. government agency securities 166,671 — (35) 166,636 Corporate debt securities 38,800 — — 38,800 Total cash equivalents $ 1,130,724 $ — $ (65) $ 1,130,659 Short-term investments: U.S. treasury securities $ 175,451 $ — $ (1,875) $ 173,576 U.S. government agency securities 266,392 2 (4,299) 262,095 Corporate debt securities 406,517 49 (4,211) 402,355 Total short-term investments $ 848,360 $ 51 $ (10,385) $ 838,026 Total cash equivalents and short-term investments $ 1,979,084 $ 51 $ (10,450) $ 1,968,685 Cash equivalents and short-term investments consisted of the following as of July 31, 2022: Amortized Unrealized Unrealized Fair Value (in thousands) Cash equivalents: Money market funds $ 247,613 $ — $ — $ 247,613 U.S. treasury securities 202,778 — (70) 202,708 U.S. government agency securities 135,525 2 (38) 135,489 Corporate debt securities 106,272 — — 106,272 Total cash equivalents $ 692,188 $ 2 $ (108) $ 692,082 Short-term investments: U.S. treasury securities $ 96,089 $ 10 $ (251) $ 95,848 U.S. government agency securities 339,957 6 (6,628) 333,335 Corporate debt securities 293,968 — (5,022) 288,946 Total short-term investments $ 730,014 $ 16 $ (11,901) $ 718,129 Total cash equivalents and short-term investments $ 1,422,202 $ 18 $ (12,009) $ 1,410,211 The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of July 31, 2023: Amortized Fair Value (in thousands) Due within one year $ 409,026 $ 406,681 Due between one to three years 439,334 431,345 Total $ 848,360 $ 838,026 Short-term investments that were in an unrealized loss position as of July 31, 2023 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 $ 173,576 $ (1,875) $ — $ — $ 173,576 $ (1,875) U.S. government agency securities 119,558 (292) 131,530 (4,007) 251,088 (4,299) Corporate debt securities 232,504 (2,034) 82,599 (2,177) 315,103 (4,211) Total $ 525,638 $ (4,201) $ 214,129 $ (6,184) $ 739,767 $ (10,385) Short-term investments that were in an unrealized loss position as of July 31, 2022 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 $ 80,833 $ (251) $ — $ — $ 80,833 $ (251) U.S. government agency securities 230,670 (5,150) 50,134 (1,478) 280,804 (6,628) Corporate debt securities 155,968 (3,947) 71,127 (1,075) 227,095 (5,022) Total $ 467,471 $ (9,348) $ 121,261 $ (2,553) $ 588,732 $ (11,901) 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 corporate debt securities below their 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 non credit-related factors. Accordingly, we determined that an allowance for credit losses was unnecessary for our short-term investments as of July 31, 2023 and 2022. As of July 31, 2023 and 2022, we recorded $7.2 million and $1.3 million, respectively, of accrued interest receivable within prepaid expenses and other current assets in the consolidated balance sheets. Strategic Investments Our strategic investments consist primarily of non-marketable equity securities of privately held companies which do not have a readily determinable fair value. These investments are primarily accounted for under the cost method as we have less than 20% ownership and do not have the ability to exercise significant influence over their operations. As of July 31, 2023 and 2022, the carrying amount of our strategic investments was $7.8 million and $5.1 million, respectively, and is included within other noncurrent assets in the consolidated balance sheets. There were no material events or circumstances impacting their carrying amount during the periods presented. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. 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. Three levels of inputs may be used to measure fair value: • Level I - Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities; • Level II - Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and • Level III - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation. 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), as well as our assets and liabilities arising from our foreign currency forward contracts and our interest rate swap contracts, are classified within Level II. The fair value of our Level II financial assets and liabilities is determined 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, for substantially the full term of the financial assets and liabilities. Assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of July 31, 2023: Level I Level II Level III Fair Value Quoted Prices Significant Significant (in thousands) Cash equivalents: Money market funds $ 768,003 $ 768,003 $ — $ — U.S. treasury securities 157,220 — 157,220 — U.S. government agency securities 166,636 — 166,636 — Corporate debt securities 38,800 — 38,800 — Total cash equivalents $ 1,130,659 $ 768,003 $ 362,656 $ — Short-term investments: U.S. treasury securities $ 173,576 $ — $ 173,576 $ — U.S. government agency securities 262,095 — 262,095 — Corporate debt securities 402,355 — 402,355 — Total short-term investments $ 838,026 $ — $ 838,026 $ — Total cash equivalents and short-term investments $ 1,968,685 $ 768,003 $ 1,200,682 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 12,581 $ — $ 12,581 $ — Foreign currency contracts assets-noncurrent (2) $ 2,264 $ — $ 2,264 $ — Foreign currency contracts liabilities-current (3) $ 1,452 $ — $ 1,452 $ — Foreign currency contracts liabilities-noncurrent (4) $ 669 $ — $ 669 $ — Interest rate contracts liabilities-current (3) $ 6,439 $ — $ 6,439 $ — Interest rate contracts liabilities-noncurrent (4) $ 1,588 $ — $ 1,588 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 2,061 $ — $ 2,061 $ — Foreign currency contracts liabilities-current (3) $ 465 $ — $ 465 $ — (1) Included within prepaid expenses and other current assets in the consolidated balance sheets. (2) Included within other noncurrent assets in the consolidated balance sheets. (3) Included within accrued expenses and other current liabilities in the consolidated balance sheets. (4) Included within other noncurrent liabilities in the consolidated balance sheets. Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2022: Level I Level II Level III Fair Value Quoted Prices Significant Significant (in thousands) Cash equivalents: Money market funds $ 247,613 $ 247,613 $ — $ — U.S. treasury securities 202,708 — 202,708 — U.S. government agency securities 135,489 — 135,489 — Corporate debt securities 106,272 — 106,272 — Total $ 692,082 $ 247,613 $ 444,469 $ — Short-term investments: U.S. treasury securities $ 95,848 $ — $ 95,848 $ — U.S. government agency securities 333,335 — 333,335 — Corporate debt securities 288,946 — 288,946 — Total $ 718,129 $ — $ 718,129 $ — Total cash equivalents and short-term investments $ 1,410,211 $ 247,613 $ 1,162,598 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 178 $ — $ 178 $ — Foreign currency contracts assets-noncurrent (2) $ 17 $ — $ 17 $ — Foreign currency contracts liabilities-current (3) $ 10,921 $ — $ 10,921 $ — Foreign currency contracts liabilities-noncurrent (4) $ 588 $ — $ 588 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 452 $ — $ 452 $ — Foreign currency contracts liabilities-current (3) $ 3,427 $ — $ 3,427 $ — (1) Included within prepaid expenses and other current assets in the consolidated balance sheets. (2) Included within other noncurrent assets in the consolidated balance sheets. (3) Included within accrued expenses and other current liabilities in the consolidated balance sheets. (4) Included within other noncurrent liabilities in the consolidated balance sheets. 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 10, Convertible Senior Notes, for the carrying amount and estimated fair value of our convertible senior notes as of July 31, 2023 and 2022. |
Property and Equipment and Purc
Property and Equipment and Purchased Intangible Assets | 12 Months Ended |
Jul. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment and Purchased Intangible Assets | Property and Equipment and Purchased Intangible Assets Property and equipment consisted of the following: July 31, Estimated Useful Life 2023 2022 (in thousands) Hosting equipment 3 - 4 years $ 280,851 $ 191,037 Capitalized internal-use software 3 years 120,877 72,267 Computers and equipment 3 - 5 years 7,107 6,774 Purchased software 3 years 1,311 1,311 Furniture and fixtures 5 years 1,025 1,022 Leasehold improvements Shorter of useful life or lease term 7,608 7,339 Total property and equipment, gross 418,779 279,750 Less: Accumulated depreciation and amortization (176,424) (119,117) Total property and equipment, net $ 242,355 $ 160,633 Purchased intangible assets consist of internet protocol (IP) addresses, which are amortized on a straight-line basis over an estimated useful life of 10 years. As of July 31, 2023, their historical cost and accumulated amortization was $8.6 million and $1.6 million, respectively. As of July 31, 2022, their historical cost and accumulated amortization was $6.4 million and $0.8 million, respectively. Purchased intangible assets are included within other noncurrent assets in the consolidated balance sheets. We recognized depreciation and amortization expense on property and equipment and purchased intangible assets of $55.8 million, $40.5 million and $29.7 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. Additionally, we recognized stock-based compensation expense on the amortization of capitalized stock-based compensation associated with capitalized internal-use software of $8.4 million , $4.5 million and $1.6 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. |
Property and Equipment and Purchased Intangible Assets | Property and Equipment and Purchased Intangible Assets Property and equipment consisted of the following: July 31, Estimated Useful Life 2023 2022 (in thousands) Hosting equipment 3 - 4 years $ 280,851 $ 191,037 Capitalized internal-use software 3 years 120,877 72,267 Computers and equipment 3 - 5 years 7,107 6,774 Purchased software 3 years 1,311 1,311 Furniture and fixtures 5 years 1,025 1,022 Leasehold improvements Shorter of useful life or lease term 7,608 7,339 Total property and equipment, gross 418,779 279,750 Less: Accumulated depreciation and amortization (176,424) (119,117) Total property and equipment, net $ 242,355 $ 160,633 Purchased intangible assets consist of internet protocol (IP) addresses, which are amortized on a straight-line basis over an estimated useful life of 10 years. As of July 31, 2023, their historical cost and accumulated amortization was $8.6 million and $1.6 million, respectively. As of July 31, 2022, their historical cost and accumulated amortization was $6.4 million and $0.8 million, respectively. Purchased intangible assets are included within other noncurrent assets in the consolidated balance sheets. We recognized depreciation and amortization expense on property and equipment and purchased intangible assets of $55.8 million, $40.5 million and $29.7 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. Additionally, we recognized stock-based compensation expense on the amortization of capitalized stock-based compensation associated with capitalized internal-use software of $8.4 million , $4.5 million and $1.6 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. |
Business Combinations
Business Combinations | 12 Months Ended |
Jul. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Canonic Security Technologies Ltd. On February 20, 2023, we completed the acquisition of Canonic Security Technologies Ltd. ("Canonic"), an early-stage technology company incorporated in Israel. We plan to integrate this company's technology into our cloud platform. Pursuant to the terms of the purchase agreement, the aggregate purchase price consideration was approximately $16.5 million in cash. Additionally, certain Canonic employees who became our employees are entitled to receive deferred merger consideration payable in the form of shares of our common stock. These awards are subject to time-based vesting and will be recognized as stock-based compensation expense during the post-combination period. In connection with this acquisition, we completed a valuation of the acquired identifiable assets as of February 20, 2023. The allocation of the purchase price consideration resulted in the recognition of $10.6 million of goodwill and $5.1 million of developed technology. The acquired developed technology was valued using a replacement cost approach, which is based on the cost of a market participant to reconstruct a substitute asset of comparable utility. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired and is primarily attributable to the acquired workforce and expected operating synergies. Both goodwill and acquired developed technology are not deductible for income tax purposes. The acquisition related transaction costs were not material and recorded within general and administrative expenses in fiscal 2023. The acquisition qualified as a stock transaction for tax purposes. As a result, we recognized a net deferred tax asset for approximately $0.8 million , generated primarily from a deferred tax asset from net operating losses netted with the deferred tax liability from the difference between the tax basis and fair value of the acquired developed technology, which decreased goodwill by the same amount. The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash, cash equivalents and other assets $ 673 Acquired intangible assets: Developed technology 5,100 5 years Deferred tax asset 781 Goodwill 10,645 Total $ 17,199 Liabilities assumed: Accounts payable, accrued expenses and other liabilities $ 692 Total $ 692 Total purchase price consideration $ 16,507 ShiftRight, Inc. On June 17, 2022, we completed the acquisition of ShiftRight, Inc. (“ShiftRight”), an early-stage technology company incorporated in the United States. We have integrated this company’s technology into our cloud platform. Pursuant to the terms of the purchase agreement, the aggregate purchase price was approximately $25.6 million in cash. Additionally, certain of ShiftRight's employees who became our employees are entitled to receive deferred merger consideration payable in the form of shares of our authorized common stock and restricted stock units. These awards are subject to time-based vesting and will be recognized as stock-based compensation expense during the post-combination period. In connection with this acquisition, we completed a valuation of the acquired intangible assets as of June 17, 2022. The purchase price allocation resulted in the recognition of $18.7 million of goodwill and $7.1 million of developed technology. The developed technology was valued using a replacement cost approach, which is based on the cost of a market participant to reconstruct a substitute asset of comparable utility. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired and is primarily attributable to the acquired workforce and expected operating synergies. Goodwill is not expected to be deductible for income tax purposes. We incurred approximately $0.7 million of acquisition related costs, which were recorded as general and administrative expenses in fiscal 2022. The acquisition qualified as a stock transaction for tax purposes. As a result, we recognized a deferred tax liability of approximately $0.7 million, generated primarily from the difference between the tax basis and fair value of the acquired developed technology, which increased goodwill by the same amount. As we had a full valuation allowance as of July 31, 2022, we recorded an income tax benefit for the same amount as a result of the reduction of the valuation allowance due to establishment of the deferred tax liability in the consolidated statement of operations in fiscal 2022. The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 535 Acquired intangible assets: Developed technology 7,100 5 years Goodwill 18,724 Total $ 26,359 Less liabilities assumed: Deferred tax liability $ 682 Other liabilities 99 Total $ 781 Total purchase price consideration $ 25,578 Smokescreen Technologies Private Limited On June 1, 2021, we completed the acquisition of Smokescreen Technologies Private Limited (“Smokescreen”), a technology company incorporated in India. Smokescreen developed an active defense and deception technology, which has been integrated into our cloud platform, further building upon our ability to detect sophisticated, highly targeted attacks, ransomware and lateral movement attempts. Pursuant to the terms of the stock purchase agreement, the aggregate purchase price was approximately $11.7 million in cash. In connection with this acquisition, we completed a valuation of the acquired intangible assets as of June 1, 2021, in order to allocate the purchase price consideration. The purchase price allocation resulted in the recognition of $5.7 million of goodwill, $5.6 million of developed technology and $2.1 million of customer relationships. The developed technology was valued using a replacement cost approach, which is based on the cost of a market participant to reconstruct a substitute asset of comparable utility. The customer relationships were also valued using the replacement cost approach, which is based on the cost a market participant would incur to generate the acquired portfolio of customers. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired and is primarily attributable to the acquired workforce and expected operating synergies. Both goodwill and acquired intangible assets will be fully deductible for income tax purposes. We incurred approximately $0.5 million of acquisition related costs, which were recorded as general and administrative expenses in fiscal 2021. The acquisition qualified as a stock transaction for tax purposes. As a result, we recognized a deferred tax liability of approximately $1.6 million, generated primarily from the difference between the tax basis and fair value of the acquired developed technology, which increased goodwill by the same amount. The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 1,347 Acquired intangible assets: Developed technology 5,600 5 years Customer relationships 2,100 5 years Goodwill 5,686 Total $ 14,733 Less liabilities assumed: Deferred tax liability $ 1,558 Other liabilities 1,516 Total $ 3,074 Total purchase price consideration $ 11,659 Trustdome Limited On April 15, 2021, we completed the acquisition of Trustdome Limited (“Trustdome”), a technology company incorporated in Israel. Trustdome developed a cloud infrastructure entitlement management solution, which has been integrated into our cloud platform, further building upon our ability to provide a comprehensive solution for reducing public cloud attack surfaces and improving security posture. With this acquisition, we also expanded our global footprint with our first development center in Israel. Pursuant to the terms of the purchase agreement, the aggregate purchase price was approximately $31.1 million in cash. Additionally, certain of Trustdome's employees who became our employees are entitled to receive deferred merger consideration payable in the form of shares of our authorized common stock and restricted stock units. These awards are subject to time-based vesting and will be recognized as stock-based compensation expense during the post-combination period. In connection with this acquisition, we completed a valuation of the acquired intangible assets as of April 15, 2021, in order to allocate the purchase price consideration. The purchase price allocation resulted in the recognition of $23.2 million of goodwill and $7.2 million of developed technology. The developed technology was valued using a replacement cost approach, which is based on the cost of a market participant to reconstruct a substitute asset of comparable utility. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired and is primarily attributable to the acquired workforce and expected operating synergies. Both goodwill and acquired developed technology will be fully deductible for income tax purposes. We incurred approximately $0.4 million of acquisition related costs, which were recorded as general and administrative expenses in fiscal 2021. The acquisition qualified as a stock transaction for tax purposes. As a result, we recognized a deferred tax liability for approximately $0.6 million, generated primarily from the difference between the tax basis and fair value of the acquired developed technology, which increased goodwill by the same amount. The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 1,611 Acquired intangible assets: Developed technology 7,200 5 years Goodwill 23,232 Total $ 32,043 Less Liabilities assumed: Deferred tax liability $ 624 Other liabilities 277 Total $ 901 Total purchase price consideration $ 31,142 Other Business Combinations In November 2021 , we completed a business acquisition for a total purchase price consideration of $2.1 million, consisting of $0.4 million paid in cash at closing and the issuance of shares of our common stock with an aggregate fair value of $1.7 million at closing. Additionally, certain former employees of the acquired company who became our employees are entitled to receive additional consideration in the form of shares of our common stock subject to future employment services. These awards are recognized as stock-based compensation expense during the post-combination period. Based on the valuation of the acquired intangible assets, the allocation of the purchase price consideration resulted in the recognition of $1.6 million of developed technology and $0.8 million of goodwill. The developed technology is amortized over its economic useful life of 5.0 years . Goodwill is not expected to be deductible for income tax purposes. The acquisition qualified as a stock transaction for tax purposes. As a result, we recognized a deferred tax liability for approximately $0.4 million, generated primarily from the difference between the tax basis and fair value of the acquired developed technology, which increased goodwill by the same amount. As we had a full valuation allowance as of July 31, 2022, w e recorded an income tax benefit as a result of the reduction of the valuation allowance due to the establishment of the deferred tax liability in the consolidated statement of operations in fiscal 2022. Pro Forma Financial Information The pro forma financial information from the above business acquisitions, assuming the acquisition had occurred as of the beginning of the fiscal year prior to the fiscal year of the acquisition, as well as revenue and earnings generated during the current fiscal year, were not material for disclosure purposes. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill Changes in the carrying amount of goodwill consisted of the following: Amount (in thousands) Balance as of July 31, 2022 $ 78,547 Goodwill acquired 10,645 Balance as of July 31, 2023 $ 89,192 Acquired Intangible Assets Acquired intangible assets consist of developed technology and customer relationships acquired through our business combinations and asset acquisitions. Acquired intangible assets are amortized using the straight-line method over their estimated useful lives. During fiscal 2023, in connection with the acquisition of Canonic, we acquired developed technology with a fair value of $5.1 million with an estimated useful life of 5.0 years. For further information refer to Note 6, Business Combinations. Changes in acquired intangible assets for July 31, 2023 and 2022, consisted of the following: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful life July 31, 2022 Additions July 31, 2023 July 31, 2022 Amortization Expense July 31, 2023 July 31, 2022 July 31, 2023 July 31, 2023 (in thousands) (years) Developed technology $ 48,356 $ 5,100 $ 53,456 $ (18,972) $ (10,287) $ (29,259) $ 29,384 $ 24,197 3.0 Customer relationships 3,560 — 3,560 (1,125) (773) (1,898) 2,435 1,662 2.3 Total $ 51,916 $ 5,100 $ 57,016 $ (20,097) $ (11,060) $ (31,157) $ 31,819 $ 25,859 3.0 As of July 31, 2022, the weighted-average remaining useful life for developed technology and customer relationships was 3.6 years and 3.5 years, respectively. Amortization expense of acquired intangible assets was $11.1 million, $9.0 million and $6.8 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. Amortization expense of developed technology and customer relationships is included primarily within cost of revenue and sales and marketing expenses, respectively, in the consolidated statements of operations. Future amortization expense of acquired intangible assets as of July 31, 2023 consisted of the following: Amount (in thousands) Year ending July 31, 2024 $ 11,320 2025 6,265 2026 5,252 2027 2,428 Thereafter 594 Total $ 25,859 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jul. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Foreign Currency Forward Contracts As a global business, we are exposed to foreign currency exchange rate risk. Substantially all of our revenue is transacted in U.S. dollars; however, a portion of our cost of revenue and operating expenditures are incurred outside of the United States and are denominated in foreign currencies, making them subject to fluctuations in foreign currency exchange rates. In order to mitigate the impact of foreign currency fluctuations on our future cash flows and earnings, we enter into foreign currency forward contracts, which we designate as cash flow hedges. All cash flow hedges were considered effective for all periods presented. We also use foreign currency forward contracts to mitigate variability in gains and losses generated from the remeasurement of certain monetary assets and liabilities denominated in foreign currencies. The outstanding non-designated derivative instruments are carried at fair value with the change in fair value recorded in other income (expense), net in the consolidated statement of operations in the same period as the changes in fair value from the remeasurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. These foreign exchange contracts typically have maturities of approximately one As of July 31, 2023 and July 31, 2022, the total notional amount of our outstanding designated foreign currency forward contracts was $457.6 million and $293.4 million, respectively and for our outstanding non-designated foreign currency forward contracts was $182.9 million and $126.4 million, respectively. The maximum length of time over which forecasted foreign currency denominated operating expenses are hedged is 21 months. As of July 31, 2023, an estimated $10.2 million of the unrealized losses related to our cash flow hedges are expected to be released into earnings over the next 12 months. Refer to Note 4, Fair Value Measurements, for the fair value of our derivative instruments as reported on the consolidated balance sheet as of July 31, 2023 and July 31, 2022. During all periods presented, changes in the fair value of our non-designated derivative instruments recorded within other income (expense), net within the consolidated statement of operations were not material. During the fiscal 2023 and fiscal 2022 , we recognized a gain of $11.1 million and a loss of $20.1 million, respectively, in AOCI related to our cash flow hedges. The gains and losses related to our cash flow hedges that were recognized in AOCI for fiscal 2021 was not material. The following table presents information about losses related to our cash flow hedges reclassified from AOCI into the consolidated statement of operations for fiscal 2023 and fiscal 2022 : Year ended July 31 (1) 2023 2022 (in thousands) Classification: Cost of revenue $ 1,835 $ 617 Sales and marketing 7,670 520 Research and development 1,506 284 General and administrative 568 5,592 Total $ 11,579 $ 7,013 (1) The gains and losses related to our cash flow hedges reclassified from AOCI into the consolidated statement of operations for fiscal 2021 was not material. Our derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the underlying contracts. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and standards. We periodically assess the creditworthiness of our counterparties to ensure they continue to meet our credit quality requirements. We also enter into master netting arrangements, which permit net settlement of transactions with the same counterparty. The potential impact of these rights of set-off associated with our derivative instruments was not material as of July 31, 2023 and July 31, 2022. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. We do not enter into derivative contracts for trading or speculative purposes. Interest Rate Swap Contracts During fiscal 2023, we entered into interest rate swaps contracts, maturing on July 1, 2025, designated as fair value hedges intended to hedge a portion of our fair value risk exposure due to changing interest rates by economically converting the fixed interest rate of a certain tranche of our convertible senior notes to a floating interest rate. As of July 31, 2023, the carrying amount of the hedged convertible senior notes was $496.4 million and the total notional amount of our outstanding interest rate swaps was $500.0 million. The gains and losses related to changes in the fair value of the interest rate swaps are included within interest expense in the consolidated statement of operations and substantially offset changes in the fair value of the hedged portion of the underlying convertible senior notes that are attributable to the changes in underlying benchmark interest rates. As of July 31, 2023, the cumulative amount of fair value hedge accounting adjustments included in the carrying amount of hedged liabilities was $8.3 million. The following table presents the effect of derivative instruments designated as fair value hedges included within interest expense in the statement of operations, for fiscal 2023: Gains (Losses) (in thousands) Interest rate swaps: Hedged items $ 8,306 Derivatives designated as hedging instruments (8,028) Total $ 278 |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Jul. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges On March 1, 2023, we announced a restructuring plan as a part of our planned efforts to streamline operations and to align people, roles, and projects to our strategic priorities. These actions included the reduction of our worldwide headcount by approximately 3%. During fiscal 2023, we incurred $7.6 million of restructuring charges, consisting of $6.6 million of employee severance and benefit charges and $1.0 million of stock-based compensation expense related to modified equity incentive awards. These charges were recorded within restructuring and other charges in the consolidated statements of operations. As of July 31, 2023, the restructur ing was substantially completed subject to liability accrued but not paid totaling $1.0 million, which is included within accrued compensation in the consolidated balance sheets. The following table presents the activity of the restructuring liability for fiscal 2023 : Restructuring Liability (in thousands) Balance as of July 31, 2022 $ — Charges, excluding stock-based compensation expense 6,565 Payments (5,520) Balance as of July 31, 2023 $ 1,045 |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Jul. 31, 2023 | |
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 are unsecured obligations and 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 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 are 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-business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate of the Notes on each such trading day; • 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 July 31, 2023, the conditions allowing holders of the Notes to convert were not met. Since we have the election of repaying the Notes in cash, shares of our common stock, or a combination of both, we have classified the Notes as a noncurrent liability in the consolidated balance sheet as of July 31, 2023 and July 31, 2022. Conversion notices received in fiscal 2022 were not material. No conversion notices were received in fiscal 2023 and fiscal 2021. Prior to July 5, 2023, we were not permitted to redeem the Notes. On and subsequent to 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 governing the Notes), holders of the Notes will have the right, at their option to require us to repurchase for 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, up to but excluding, the date of such repurchase. 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. Upon adoption of ASU 2020-06 as of August 1, 2022, we accounted for our Notes as a single unit of debt and no longer records the conversion feature in equity. This further eliminated the need for amortization of the debt discount as interest expense and the portion of the issuance costs initially allocated to equity is now classified as debt and amortized as interest expense. As of August 1, 2022, the adoption of this new standard resulted in an increase of $169.9 million to the carrying amount of the convertible senior notes, a decrease of $273.7 million to additional paid-in capital and a cumulative-effect adjustment of $103.8 million to accumulated deficit. For further information, refer to Note 1, Business and Summary of Significant Accounting Policies. During the fiscal 2023, we entered into interest rate swap contracts designated as fair value hedges of certain of our Notes. For further information refer to Note 8, Derivative Instruments. The net carrying amount of the liability component of the Notes consisted of the following: July 31, 2023 2022 (in thousands) Principal amount $ 1,149,993 $ 1,149,995 Less: Unamortized debt discount (1) — 172,169 Unamortized debt issuance costs (1) 7,528 9,152 Hedge accounting fair value adjustments 8,306 — Total $ 1,134,159 $ 968,674 (1) Effective August 1, 2022, we adopted ASU 2020-06 using the modified retrospective method under which prior period amounts have not been adjusted. The adoption of this standard resulted in the elimination of the debt discount and related amortization as interest expense and the classification of the portion of the debt issuance costs initially allocated to equity within the carrying amount of our convertible senior notes, which is recognized as interest expense post adoption of the standard. The following table sets forth total interest expense recognized related to the Notes: Year Ended July 31, 2023 2022 2021 (in thousands) Contractual interest expense $ 1,439 $ 1,438 $ 1,441 Amortization of debt discount (1) — 52,358 49,302 Amortization of debt issuance costs (1) 3,894 2,783 2,621 Total $ 5,333 $ 56,579 $ 53,364 (1) The decrease in total interest expense for the fiscal 2023, was due to the derecognition of unamortized debt discount partially offset by the increase in the amortization of issuance costs previously recognized in equity. These changes were the result of adoption of ASU 2020-06, as described in Note 1, Business and Summary of Significant Accounting Policies. The total fair value of the Notes was $1,411.4 million and $1,418.5 million as of July 31, 2023 and 2022, respectively. 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 as of July 31, 2023 and 2022 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. 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 Calls 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 the 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 the consolidated balance sheet, the premium of $145.2 million paid for the purchase of the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured. We have not exercised any Capped Call options during any of the periods presented. |
Operating Leases
Operating Leases | 12 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The following is a summary of our operating lease costs: Year Ended July 31, 2023 2022 2021 Real Estate Arrangements Co-Location Arrangements Total Real Estate Arrangements Co-Location Arrangements Total Real Estate Arrangements Co-Location Arrangements Total (in thousands) Operating lease, including imputed interest $ 7,858 $ 24,677 $ 32,535 $ 6,347 $ 19,356 $ 25,703 $ 6,442 $ 14,504 $ 20,946 Short-term lease cost 4,314 5,688 10,002 2,826 1,889 4,715 1,527 694 2,221 Variable lease cost 6,992 4,956 11,948 3,163 4,480 7,643 3,192 3,244 6,436 Sublease income — — — — — — (199) — (199) Total operating lease costs $ 19,164 $ 35,321 $ 54,485 $ 12,336 $ 25,725 $ 38,061 $ 10,962 $ 18,442 $ 29,404 Weighted-average remaining lease term (in years) 3.0 2.0 3.7 2.7 4.7 1.9 Weighted-average discount rate 4.5 % 3.2 % 4.1 % 2.2 % 4.4 % 2.3 % The following table presents information about our leases in the consolidated balance sheets: July 31, 2023 2022 Real Estate Arrangements Co-Location Arrangements Total Real Estate Arrangements Co-Location Arrangements Total (in thousands) Operating lease right-of-use assets $ 18,493 $ 52,178 $ 70,671 $ 18,530 $ 53,827 $ 72,357 Operating lease liabilities, current $ 6,777 $ 27,692 $ 34,469 $ 6,073 $ 20,027 $ 26,100 Operating lease liabilities, noncurrent $ 14,875 $ 27,042 $ 41,917 $ 16,571 $ 34,377 $ 50,948 Cash paid, net of tenant incentives for amounts included in the measurement of operating lease liabilities was $32.2 million, $27.7 million and $22.1 million for fiscal 2023, fiscal 2022 and fiscal 2021, respectively. Maturities of operating lease liabilities consisted of the following as of July 31, 2023: Real Estate Arrangements Co-Location Arrangements Total Year ending July 31, (in thousands) 2024 $ 7,604 $ 28,952 $ 36,556 2025 7,530 23,915 31,445 2026 6,928 3,645 10,573 2027 1,120 — 1,120 Total future minimum lease payments 23,182 56,512 79,694 Less: Imputed interest 1,530 1,778 3,308 Total $ 21,652 $ 54,734 $ 76,386 As of July 31, 2023, we have entered into non-cancelable operating leases with a term greater than 12 months that have not yet commenced with undiscounted future minimum payments of $16.7 million, which are excluded from the above table. These operating leases will commence between August 2023 and November 2026 with lease terms ranging from 1.9 years to 3.0 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2023 | |
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 and marketing events and consulting services. As of July 31, 2023 and 2022, we had outstanding non-cancelable purchase obligations with a term of 12 months or longer of $94.6 million and $126.8 million, respectively. The maturities of non-cancelable purchase obligations with a term of 12 months or longer consisted of the following as of July 31, 2023: Amount Year ending July 31, (in thousands) 2024 $ 21,956 2025 32,198 2026 24,675 2027 15,745 Total $ 94,574 Other Commitments As of July 31, 2023 and 2022 , we had outstanding irrevocable standby unsecured letters of credits and a guarantee for an aggregate value of $2.1 million with a bank, which serve as security under certain real estate leases included in Note 11, Operating Leases. 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. |
Common Stock
Common Stock | 12 Months Ended |
Jul. 31, 2023 | |
Equity [Abstract] | |
Common Stock | Common Stock Holders of our common stock are entitled to one vote for each share of common stock held and are not entitled to receive dividends unless declared by our board of directors. Common Stock Reserved for Future Issuance The following table summarizes our shares of common stock reserved for future issuance: July 31, 2023 (in thousands) Equity awards outstanding: Stock options 1,267 Unvested restricted stock units 8,339 Committed unvested performance stock awards, based on the target number of shares 377 Unvested performance stock awards 1,012 Share purchase rights committed under the employee stock purchase plan 1,119 Equity awards available for future grants: Equity incentive plans 27,921 Employee stock purchase plan 4,666 Stock reserved for settlement of the Notes 7,626 Total 52,327 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jul. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plan 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 July 31, 2023, a total of 45.8 million shares of common stock have been reserved for the issuance of equity awards under the 2018 Plan, of which 27.9 million shares were available for grant. The number of shares of common stock available for issuance under the 2018 Plan also includes an annual increase on the first day of each fiscal year pursuant to its automatic annual increase provision. Stock Options The activity of stock options for fiscal 2023 consisted of the following: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2022 1,673 $11.81 2.5 $ 240,286 Granted 50 $152.99 Exercised (451) $8.65 $ 56,459 Canceled, forfeited or expired (5) $7.80 Balance as of July 31, 2023 1,267 $18.54 2.1 $ 179,678 Exercisable and expected to vest as of July 31, 2022 1,501 $10.78 2.4 $ 216,539 Exercisable and expected to vest as of July 31, 2023 1,210 $12.82 1.8 $ 178,616 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 fiscal 2023, fiscal 2022 and fiscal 2021 was $56.5 million, $230.1 million and $421.8 million, respectively . The weighted-average grant-date fair value per share of stock-options granted in fiscal 2023 was $152.99. We estimated the fair value of stock options using the Black-Scholes option pricing model with the following assumptions: Year Ended July 31 (1) 2023 Expected term (in years) 6.1 Expected stock price volatility 58.2% Risk-free interest rate 3.9% Dividend yield 0.0% (1) There were no stock options granted during fiscal 2022 and fiscal 2021. Restricted Stock Units and Performance Stock Awards The 2018 Plan allows for the grant of 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 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 July 31, 2023, the number of outstanding PSAs for which the performance metrics have not been defined as of such date was not material. Accordingly, such awards are not considered granted for accounting purposes as of July 31, 2023 and have been excluded from the below table. The activity of RSUs and PSAs consisted of the following for fiscal 2023: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2022 7,388 $157.17 $ 1,145,526 Granted 6,531 $124.57 Vested (3,179) $139.43 $ 462,289 Canceled or forfeited (1,389) $160.38 Balance as of July 31, 2023 9,351 $139.95 $ 1,499,714 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 July 31, 2023, a total of 8.8 million shares of common stock have been reserved for issuance under the ESPP, out of which 4.7 million shares were available for grant. The number of shares reserved includes an annual increase on the first day of each fiscal year pursuant to its automatic annual increase provision. 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. During fiscal 2023, fiscal 2022 and fiscal 2021, employees purchased approximately 0.4 million, 0.3 million and 0.3 million shares of common stock, respectively, under the ESPP at an average purchase price of $99.59, $108.61 and $75.92, respectively, with proceeds of $42.3 million, $34.6 million and $25.7 million, respectively. ESPP employee payroll contributions accrued as of July 31, 2023 and 2022, was $7.4 million and $4.7 million, respectively, and are included within accrued compensation in the consolidated balance sheets. Payroll contributions accrued as of July 31, 2023 will be used to purchase shares at the end of the current ESPP purchase period ending on December 15, 2023. Payroll contributions ultimately used to purchase shares are reclassified to stockholders' equity on the purchase date. In December 2022, certain outstanding ESPP offering periods were reset and automatically rolled over into a new ESPP offering period that started on December 15, 2022. The reset was accounted for as a modification, which resulted in an incremental stock-based compensation of $8.3 million, which has been recognized over the remaining term of the modified ESPP offering periods, ranging from approximately 6 months to 18 months. The fair value of the purchase right for the ESPP was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Year Ended July 31, 2023 2022 2021 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected stock price volatility 58.1% - 75.9% 44.1% - 79.4% 46.2% - 67.4% Risk-free interest rate 4.2% - 5.3% 0.1% - 3.2% 0.1% - 0.2% Dividend yield 0.0% 0.0% 0.0% Deferred Merger Consideration In connection with certain business acquisitions, as further described in Note 6, Business Combinations, certain former employees of the acquired companies who became our employees are entitled to receive deferred merger consideration payable in shares of our common stock with an aggregate fair value of $3.8 million and $17.0 million for fiscal 2023 and fiscal 2022, respectively. The number of unvested shares of common stock issued in connection with these business acquisitions was not material. These awards are subject to future employment services and are recognized as stock-based compensation expense over the requisite service period within research and development expenses in the consolidated statements of operations. The related stock-based compensation expense was not material for any of the periods presented. Departure of the President of the Company In October 2022, our President, who led research and development activities, resigned from his position as President of the Company, but continues to serve as a member of our Board of Directors. In connection with his resignation as President of the Company, we recognized a reversal of stock-based compensation of $9.9 million associated with the cancellation of unvested incentive equity awards, which was recognized in research and development expenses in the consolidated statement of operations for the fiscal 2023. Modification of Equity Incentive Awards During the fiscal 2023, we modified the equity incentive awards of certain employees. In accordance with the accounting for the modification, we recognized stock-based compensation expense of $6.0 million in research and development expenses and $1.3 million in sales and marketing expenses in the consolidated statement of operations for the fiscal 2023. The stock-based compensation expense from modified equity incentive awards in fiscal 2022 and fiscal 2021 was not material. Stock-based Compensation Expense The components of stock-based compensation expense recognized in the consolidated statements of operations consisted of the following: Year Ended July 31, 2023 2022 2021 (in thousands) Cost of revenue $ 39,168 $ 23,847 $ 14,036 Sales and marketing 215,597 191,091 133,115 Research and development 117,915 118,299 67,803 General and administrative 71,118 76,325 43,581 Restructuring and other charges 1,036 — — Total $ 444,834 $ 409,562 $ 258,535 As of July 31, 2023, 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 $1,184.8 million, which we expect to be amortized over a weighted-average period of 2.9 years. During fiscal 2023, fiscal 2022 and fiscal 2021, we capitalized $17.2 million, $11.5 million and $6.3 million, respectively, of stock-based compensation associated with the development of software for internal-use. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table sets forth the geographical breakdown of the income (loss) before the provision for income taxes: Year ended July 31, 2023 2022 2021 (in thousands) Domestic $ (228,715) $ (413,148) $ (275,189) International 46,151 29,518 18,011 Loss before provision for income taxes $ (182,564) $ (383,630) $ (257,178) The following table sets forth the components of the provision for income taxes: Year ended July 31, 2023 2022 2021 Current: (in thousands) Federal $ 1,091 $ — $ — State 3,890 399 126 Foreign 14,438 6,996 7,104 Total current tax expense 19,419 7,395 7,230 Deferred: Federal — (858) (349) State — (185) (3) Foreign 352 296 (2,027) Total deferred tax benefit (expense) 352 (747) (2,379) Total provision for income taxes $ 19,771 $ 6,648 $ 4,851 During fiscal 2023, fiscal 2022 and fiscal 2021, we recognized tax benefits on total stock-based compensation expense of $13.4 million, $1.4 million and $1.2 million, respectively, which are reflected within the provision for income taxes in the consolidated statements of operations. The following table presents the reconciliation of the statutory federal income tax rate to our effective tax rate: Year ended July 31, 2023 2022 2021 Tax at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes (2.1) (0.1) — Impact of foreign rate differential 10.1 (0.4) 0.4 Stock-based compensation (0.8) 17.6 43.9 U.S. tax credits 8.6 3.9 4.1 Change in valuation allowance (34.1) (43.6) (70.6) Withholding tax (1.3) (0.2) (0.7) Waived deductions under Section 59A (11.8) — — Other (0.5) 0.1 — Effective tax rate (10.9) % (1.7) % (1.9) % Our estimated effective tax rate for the periods presented differs from the U.S. statutory rate primarily due to a portion of our earnings which are taxed at different rates than the U.S. statutory rate, offset by waived deductions under Section 59A and the impact of the valuation allowance we maintain against our U.S. federal and state deferred tax assets. During fiscal 2022, we recognized an income tax benefit of $1.0 million, as a result of a release in our valuation allowance on deferred tax assets due to deferred taxes recorded as part of the acquisition accounting of business combinations . During fiscal 2023 and fiscal 2021 , we did not recognize income tax benefits from business combinations. Refer to Note 6, Business Combinations, for further information. The following table presents the tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities: July 31, 2023 2022 (in thousands) Deferred tax assets: Net operating losses carryovers $ 401,261 $ 487,298 Deferred revenue 122,326 69,511 R&D capitalization 92,901 — Tax credits carryovers 98,564 68,272 Other 75,598 58,141 Gross deferred tax assets 790,650 683,222 Less: Valuation allowance (671,381) (553,916) Total deferred tax assets $ 119,269 $ 129,306 Deferred tax liabilities: Other $ (9,412) $ (6,319) Deferred contract acquisition costs (86,805) (67,512) Convertible senior notes — (39,515) Operating lease right-of-use assets (22,403) (15,739) Total deferred tax liabilities $ (118,620) $ (129,085) Net deferred tax assets $ 649 $ 221 As of July 31, 2023, we capitalized certain research and development costs which resulted in a deferred tax asset of $92.9 million to reflect the impact of a change in U.S tax law effective January 1, 2022 which requires the capitalization and amortization of research and experimental expenditures incurred after December 31, 2021. This deferred tax asset associated with capitalized research and development costs is offset by a valuation allowance and future taxable temporary differences. Effective August 1, 2022, we adopted ASU 2020-06 which resulted in a reversal of the prior deferred tax liability of $39.5 million as part of the modified retrospective adoption of the standard. For further information, refer to Note 1, Business and Summary of Significant Accounting Policies, of our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. A deferred tax liability has not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are indefinitely reinvested outside the U.S. Income taxes are generally incurred upon a repatriation of assets, a sale, or a liquidation of the subsidiary. The excess of the amount for financial reporting over the tax basis in the investments in foreign subsidiaries, as well as the unrecognized deferred tax liability, are not material for the periods presented. The following table presents the change in the valuation allowance: Year ended July 31, 2023 2022 2021 (in thousands) Balance as of the beginning of the period $ 553,916 $ 345,756 $ 130,236 Change during the period 117,465 208,160 215,520 Balance as of the end of the period $ 671,381 $ 553,916 $ 345,756 The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. We regularly assess our ability to realize the deferred tax assets on a quarterly basis and we establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. We weigh all available positive and negative evidence, including our earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. Due to the weight of objectively verifiable negative evidence, including our history of losses, we believe that it is more likely than not that our U.S. federal and state deferred tax assets will not be realized as of July 31, 2023 and 2022. Accordingly, we have maintained a full valuation allowance against such deferred tax asset s. Due to the weight of objectively verifiable negative evidence, our U.K. deferred tax assets are more likely than not to be realized in the future and a full valuation allowance has been maintained as of July 31, 2023 and 2022. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. In the event we determine that we will be able to realize all or part of our net deferred tax assets in the future, the valuation allowance against our deferred tax assets will be reversed in the period in which we make such determination. The release of a valuation allowance may cause greater volatility in the effective tax rate in the periods in which the valuation allowance is released. The valuation allowance against our U.S. federal, state and U.K. deferred tax assets increased by $117.5 million, $208.2 million and $215.5 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. The increase in the valuation allowance in fiscal 2023 , fiscal 2022 and fiscal 2021 was related to tax losses for which insufficient positive evidence exists to support their realizability. As of July 31, 2023, we have net operating loss carryforwards for U.S. federal income tax purposes of $1,619.0 million, which are available to offset future federal taxable income. These net operating losses will carry forward indefinitely. As of July 31, 2023, we have net operating loss carryforwards for state income tax purposes of $621.6 million. Beginning in 2024, $481.5 million of state net operating losses will begin to expire at different periods. The remaining $140.1 million of state net operating losses will carry forward indefinitely. As of July 31, 2023, we had foreign net operating loss carryforward of $71.6 million, all of which will be carried forward indefinitely. As of July 31, 2023, we had federal and California research and development and other tax credit carryforwards of approximately $81.0 million and $53.2 million , respectively. If not utilized, the federal credit carryforwards will begin expiring at different periods beginning in 2038. The California credit will be carried forward indefinitely. Federal and state tax laws impose restrictions on the utilization of net operating loss carryforwards in the event of a change in our ownership as defined by the Internal Revenue Code, Sections 382. Under Section 382 of the Code, substantial changes in our ownership and the ownership of acquired companies may limit the amount of net operating loss carryforwards that are available to offset taxable income. The annual limitation would not automatically result in the loss of net operating loss carryforwards but may limit the amount available in any given future period. We are subject to income taxes in the U.S. and various foreign jurisdictions. As of July 31, 2023, all years are open for examination and may become subject to examination in the future. Significant judgment is required in evaluating our tax positions and determining our income tax expense for the fiscal year. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. Our estimate of the potential outcome of any tax position is subject to management’s assessment of relevant risks, facts and circumstances existing at that time. These unrecognized tax benefits are established when we believe that certain positions might be challenged despite the belief that our tax return positions are fully supportable. We recognize interest and penalties associated with our unrecognized tax benefits as a component of our income tax expense. For the periods presented, we did not have material interest or penalties associated with the unrecognized tax benefits in the consolidated financial statements. We had $40.7 million of gross unrecognized tax benefits as of July 31, 2023, of which 1.7 million would affect our effective tax rate if recognized. The remaining gross unrecognized tax benefits relate to income tax positions which, if recognized, would be in the form of additional deferred tax assets that would be offset by a valuation allowance. As of July 31, 2023, we do not believe that our estimates, as otherwise provided for, on such tax positions will significantly increase or decrease within the next twelve months. We recognize interest and penalties related to our unrecognized tax benefits within our provision for income taxes. The amount of interest and penalties accrued as of July 31, 2023 were insignificant. The changes in our gross unrecognized tax benefits consisted of the following: Amount (in thousands) Balance as of July 31, 2021 $ 18,501 Gross increase for tax positions of prior fiscal years 1,129 Gross increase for tax positions of current fiscal years 10,069 Balance as of July 31, 2022 29,699 Gross increase for tax positions of prior fiscal years 1,653 Gross increase for tax positions of current fiscal year 9,337 Balance as of July 31, 2023 $ 40,689 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per ShareBasic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, our stock options, share purchase rights under the employee stock purchase plan, unvested RSUs, unvested PSAs, unvested common stock and shares related to the Notes are considered to be potential common stock equivalents. The following table sets forth the computation of basic and diluted net loss per share: Year Ended July 31, 2023 2022 2021 (in thousands, except per share data) Net loss $ (202,335) $ (390,278) $ (262,029) Weighted-average shares used in computing net loss per share, basic and diluted 144,942 140,895 135,654 Net loss per share, basic and diluted $ (1.40) $ (2.77) $ (1.93) 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, the basic and diluted net loss per share is the same for all periods presented. Prior to the adoption of ASU 2020-06, we calculated the potential dilutive effect of the Notes under the treasury stock method. As a result, only the amount by which the conversion value exceeded the aggregate principal amount of the Notes (the “conversion spread”) was considered in the diluted earnings per share computation. The conversion spread only had a dilutive impact on diluted net income per share when the average market price of our common stock for a given reporting period exceeded the initial conversion price of $150.80 per share for the Notes. Upon the adoption of ASU 2020-06 on August 1, 2022, we calculated the potential dilutive effect of the Notes under the if-converted method. Under this method, diluted earnings per share are determined by assuming that all of the Notes were converted into shares of our common stock at the beginning of the reporting period. In connection with the issuance of the Notes, we entered into Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to our common stock upon any conversion of the Notes. We have not exercised any of the Capped Calls as of July 31, 2023. The following table summarizes the outstanding potentially dilutive securities that were excluded from the computation of diluted net loss per share as their effect would be antidilutive: July 31, 2023 2022 2021 (in thousands) Unvested RSUs and shares of common stock 8,442 6,769 7,440 Stock options 1,267 1,673 2,597 Unvested PSAs (1) 1,012 832 562 Share purchase rights under the ESPP 1,119 850 344 Notes (2) 7,626 7,626 7,626 Total 19,466 17,750 18,569 (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 July 31, 2023, as they are not considered outstanding for accounting purposes. Refer to Note 14, Stock-Based Compensation, for further information. (2) The shares underlying the conversion option in the Notes were not considered in the calculation of diluted net loss per share as the effect would have been antidilutive. Based on the initial conversion price, the entire outstanding principal amount of the Notes as of July 31, 2023 would have been convertible into approximately 7.6 million shares of our common stock, which is reflected in the above table. As we expect to settle the principal amount of the Notes in cash, only the amount by which the conversion value exceeds the aggregate principal amount of the Notes (the "conversion spread") is considered in the diluted earnings per share computation under the treasury stock method. The conversion spread has a dilutive impact on diluted net income per share when the average market price of our common stock for a given reporting period exceeds the initial conversion price of $150.80 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Jul. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Our chief operating decision maker ("CODM") is our chief executive officer. We derive our revenue primarily from sales of subscription services to our cloud platform and related support services. Our CODM reviews financial information presented on a consolidated basis for the purposes of allocating resources and evaluating financial performance. Accordingly, we determined that we operate as one operating segment. Our long-lived assets consist of property and equipment and operating lease right-of-use assets, which are summarized by geographic area as follows: July 31, 2023 2022 (in thousands) United States $ 213,611 $ 155,625 Rest of the world 99,415 77,365 Total $ 313,026 $ 232,990 Refer to Note 2, Revenue Recognition for information on revenue by geography. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Jul. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) Plan We have a defined-contribution plan intended to qualify under Section 401 of the Internal Revenue Code (the "401(k) Plan"). We contract with a third-party provider to act as a custodian and trustee, and to process and maintain the records of participant data. We make matching contributions to the plan for our employees. Our matching contributions to the plan were not material for all the periods presented. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year Our fiscal year ends on July 31. References to fiscal 2023, for example, refer to our fiscal year ended July 31, 2023. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and have been prepared in conformity with generally accepted accounting principles in the United States ("GAAP"). All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of 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, capitalized internal-use software, valuation of acquired intangible assets, 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, recoverability of goodwill, valuation of deferred tax assets and liabilities, loss contingencies related to litigation, fair value of convertible senior notes 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 consolidated financial statements. Due to uncertainty in the macroeconomic environment, including effects of COVID-19 and inflation, there is ongoing 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 consolidated financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained. |
Foreign Currency | Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, monetary assets and liabilities of our foreign subsidiaries are re-measured into U.S. dollars at the exchange rates in effect at the reporting date, non-monetary |
Concentration of Risks | Concentration of Risks We generate revenue primarily from sale of subscriptions to access our cloud platform, together with related support services. Our sales team, along with our channel partner network of global telecommunications service providers, system integrators and value-added resellers (collectively "channel partners"), sells our services worldwide to organizations of all sizes. Due to the nature of our services and the terms and conditions of our contracts with our channel partners, our business could be affected unfavorably if we are not able to continue our relationships with them. Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments and accounts receivable. Although we deposit our cash with multiple financial institutions, the deposits, at times, may exceed federally insured limits. Cash equivalents and short-term investments consist of highly liquid investments in money market funds, U.S. treasury, U.S. agency securities and corporate debt securities, which are invested through financial institutions in the United States. We grant credit to our customers in the normal course of business. We monitor the financial condition of our customers to reduce credit risk. Refer to Note 2, Revenue Recognition, for information regarding customers with concentration of 10% or more of the total balance of accounts receivable, net. |
Segment Information | Segment Information We operate as one reportable and operating segment. Our chief operating decision maker is our chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. |
Revenue Recognition | Revenue Recognition In accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue From Contracts With Customers ("ASC 606"), revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these services. To achieve the core principle of this standard, we apply the following five steps: 1) Identify the contract with a customer We consider the terms and conditions of the contracts and our customary business practices in identifying our contracts under ASC 606. We determine we have a contract with a customer when the contract is approved, we can identify each party’s rights regarding the services to be transferred, we can identify the payment terms for the services, we have determined the customer has the ability and intent to pay and the contract has commercial substance. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. Our performance obligations consist of (i) our subscription and support services and (ii) professional and other services. 3) Determine the transaction price The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of our contracts contain a significant financing component. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price ("SSP"). 5) Recognize revenue when or as we satisfy a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised service to a customer. Revenue is recognized when control of the services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those services. We generate all our revenue from contracts with customers and apply judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. Subscription and Support Revenue We generate revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. Arrangements with customers do not provide the customer with the right to take possession of our software operating our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. A time-elapsed output method is used to measure progress because we transfer control evenly over the contractual period. Accordingly, the fixed consideration related to subscription and support revenue is generally recognized on a straight-line basis over the contract term beginning on the date that our service is made available to the customer. The typical subscription and support term is one Professional and Other Services Revenue Professional and other services revenue consists of fees associated with providing deployment advisory services that educate and assist our customers on the best use of our solutions, as well as advise customers on best practices as they deploy our solution. These services are distinct from subscription and support services. Professional services do not result in significant customization of the subscription service. Revenue from professional services provided on a time and materials basis is recognized as the services are performed. Total professional and other services revenue has historically not been material. Contracts with Multiple Performance Obligations Most of our contracts with customers contain multiple promised services consisting of: (i) our subscription and support services and (ii) professional and other services that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on our overall pricing objectives, taking into consideration the type of subscription and support services and professional and other services, the geographical region of the customer and the number of users. Variable Consideration Revenue from sales is recorded at the net sales price, which is the transaction price, and includes estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved. If our services do not meet certain service level commitments, our customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. We have historically not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts. Accordingly, estimated refunds related to these agreements were not material to the periods presented. We provide rebates and other credits within our contracts with certain customers, which are estimated based on the value expected to be earned or claimed on the related sales transaction. Overall, the transaction price is reduced to reflect our estimate of the amount of consideration to which we are entitled based on the terms of the contract. Estimated rebates and other credits were not material during the periods presented. |
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) ("AOCI"). 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 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 receivable, 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) and realized gains and losses are included in interest income in the 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. |
Strategic Investments | Strategic Investments Our strategic investments consist of non-marketable equity investments of privately held companies. Investments in non-marketable equity investments of privately held companies without readily determinable fair values are measured using the measurement alternative, as we have less than 20% ownership and do not have the ability to exercise significant influence over their operations. The carrying amount of non-marketable equity investments is adjusted based on observable price changes from orderly transactions for identical or similar investments of the same issuer and by impairments when events or circumstances indicate a decline in value has occurred. Non-marketable equity investments that have been remeasured during the period due to an observable event or impairment are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the investments we hold. Our strategic investments are included within other noncurrent assets in the consolidated balance sheets and adjustments to their carrying amounts are recorded in other income (expense), net in the consolidated statements of operations. There were no material events or circumstances impacting the carrying amount of our strategic investments during the periods presented. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial instruments consist of cash equivalents, short-term investments, accounts receivable, accounts payable, accrued liabilities, derivative instruments and convertible senior notes. Cash e quivalents and short-term investments are recorded at fair value. Accounts receivable, accounts payable and accrued liabilities are stated at their carrying value, which approximates fair value due to the short-time to the expected receipt or payment date. Assets recorded at fair value on a recurring basis in the consolidated balance sheets, consisting of cash equivalents and short-term investments, are categorized in accordance with the fair value hierarchy based upon the level of judgment associated with the inputs used to measure their fair values. Through July 31, 2022, we carried the c onvertible senior notes at the initially allocated liability value less unamortized debt discount and issuance costs on our consolidated balance sheet. Effective August 1, 2022, upon adoption of ASU 2020-06, we carry the convertible senior notes at face value less debt issuance costs on our consolidated balance sheet. For further information, refer to Convertible Senior Notes section in this Note 1, Business and Summary of Significant Accounting Policies. T he fair value of the convertible senior notes is presented at each reporting period for disclosure purposes only. |
Property and Equipment | Property and EquipmentProperty and equipment, net are stated at historical cost net of accumulated depreciation. Property and equipment, excluding leasehold improvements, are depreciated using the straight-line method over the estimated useful lives of the respective assets, generally ranging from three |
Capitalized Internal-Use Software | Capitalized Internal-Use SoftwareWe capitalize certain costs incurred during the application development stage in connection with software development for our cloud security platform. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Capitalized costs are recorded as part of property and equipment in the consolidated balance sheets. Maintenance and training costs are expensed as incurred. Capitalized internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years, and is recorded as cost of revenue in the consolidated statements of operations. |
Business Combinations | Business Combinations We account for our business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, we make estimates and assumptions, especially with respect to intangible assets. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, we may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred. |
Goodwill and Intangible Assets | Goodwill represents the excess of the fair value of purchase consideration in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually or more often if circumstances indicate that the carrying value may not be recoverable. There was no impairment of goodwill during any of the periods presented. Acquired intangible assets consist of identifiable intangible assets, including developed technology and customer relationships, resulting from business combinations. Acquired finite-lived intangible assets are initially recorded at fair value and are amortized on a straight-line basis over their estimated useful lives. Amortization expense of developed technology and customer relationships is recorded primarily within cost of revenues and sales and marketing expenses, respectively, in the consolidated statements of operations. |
Impairment of Long-Lived Assets | Long-lived assets, such as property and equipment and acquired intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. We measure the recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that these assets are expected to generate. If the total of the future undiscounted cash flows are less than the carrying amount of an asset, we record an impairment charge for the amount by which the carrying amount of the asset exceeds the fair value. |
Restructuring and Other Charges | Restructuring and Other Charges Restructuring and other charges occur when we commit to a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the restructuring plan are not likely and employees who are impacted have been notified of the pending involuntary termination. A restructuring plan generally includes significant actions involving employee-related severance charges, employee-related benefits, stock-based compensation expense related to the modification of equity incentive awards and other charges associated with the restructuring (the "restructuring charges"). Restructuring charges are accrued in the period in which it is probable that the employees are entitled to the restructuring benefits and the amounts can be reasonably estimated. Restructuring charges are recorded within restructuring and other charges in the consolidated statement of operations. The restructuring liability accrued but not paid at the end of the reporting period is included within accrued compensation in the consolidated balance sheets. |
Derivative Instruments | Derivative Instruments We enter into foreign currency forward contracts, a portion of which we designate as cash flow hedges, in order to manage the volatility of cash flows that relate to our cost of revenues and operating expenses denominated in foreign currencies. We also use interest rate swaps to economically convert a certain tranche of our fixed interest rate convertible senior notes to floating interest rates, in order to match the floating rate nature of a portion of our cash, cash equivalents, and short-term investments. These interest rate swaps are designated as fair value hedges, and changes in fair value of the interest rate swaps offset the changes in fair market value of the convertible senior notes due to benchmark interest rate movements. Gains or losses related to our fair value hedges are included within interest expense in the consolidated statement of operations in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. We measure hedge effectiveness of the interest rate swaps using regression analysis at inception and periodically thereafter. Gains or losses related to our cash flow hedges are recorded as a component of AOCI in the consolidated statements of stockholders' equity until the forecasted transaction occurs in earnings. When the forecasted transaction occurs, the related gains and losses are reclassified into earnings within the financial statement line item associated with the underlying hedged transaction. If the underlying hedged transaction does not occur, or it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into earnings within the financial statement line item associated with the underlying hedged transaction. We measure hedge effectiveness using regression analysis at hedge inception and periodically thereafter. We include time value in our effectiveness assessment. We recognize changes in the fair value of non-designated derivative instruments within other income (expense), net in the consolidated statements of operations in the same period that the fair value measurement occurs. All of our derivative instruments are measured at fair value. We have elected to present the derivative assets and derivative liabilities on a gross basis on the consolidated balance sheets. Derivative instruments are classified in the |
Operating Leases | Operating Leases We enter into operating lease arrangements for real estate assets related to office space and co-location assets related to space and racks at data center facilities. We determine if an arrangement contains a lease at its inception by assessing whether there is an identified asset and whether the arrangement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases related balances are included in "operating lease right-of-use assets," "operating lease liabilities," and "operating lease liabilities, noncurrent" in the consolidated balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement. The operating lease liabilities are adjusted for any unpaid lease incentives, such as tenant improvement allowances. Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. As the implicit rate of our leases is not determinable, we use an incremental borrowing rate ("IBR") based on the information available at the lease commencement date in determining the present value of lease payments. The lease expense is recognized on a straight-line basis over the lease term. We generally use the base, non-cancelable lease term when recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. We account for lease components and non-lease components as a single lease component. Leases with a term of twelve months or less are not recognized on the consolidated balance sheets. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense related to stock-based awards granted to employees and non-employees is calculated based on the fair value of stock-based awards on the date of grant. We recognize stock-based compensation expense over an award’s requisite service period based on the award’s fair value. Stock-based compensation for common stock options is recognized based on the fair value of the awards granted, determined using the Black-Scholes option pricing model. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, generally four years. Stock-based compensation for purchase rights granted under the employee stock purchase plan is based on the fair value of the number of awards estimated at the beginning of the offering period, as determined using the Black-Scholes option pricing model. Stock-based compensation expense is recognized following the straight-line attribution method over the offering period. Stock-based compensation for restricted stock units is measured based on the market closing price of our common stock on the grant date. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, generally four years. Stock-based compensation for performance stock awards (“PSAs”), which have the same grant date and service inception date, is based on the probable number of shares to be attained and the market closing price of our common stock at the grant date. For PSAs where the service inception date of the awards precedes the grant date, stock-based compensation expense is recognized based on the number of PSAs for which it is probable that the performance condition will be met, using the accelerated attribution method and the market closing price of our common stock at each reporting date up to the grant date. The number of these PSAs for which it is probable that the performance condition will be met is determined using |
Convertible Senior Notes | Convertible Senior Notes We adopted Financial Accounting Standard Board ("FASB") issued Accounting Standard Update ("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) ("ASU 2020-06") as of August 1, 2022, the beginning of fiscal 2023, using the modified retrospective method. Prior to the adoption of ASU 2020-06, in accounting for the issuance of the convertible senior notes, the convertible senior notes were separated into liability and equity components. The carrying amounts of the liability component was calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the convertible senior notes as a whole. This difference represents the debt discount that was amortized to interest expense over the respective terms of the convertible senior notes using the effective interest rate method. The equity component was recorded in additional paid-in capital and was not remeasured as long as it continued to meet the conditions for equity classification. In accounting for the related debt issuance costs, we allocated the total amount incurred to the liability and equity components of the convertible senior notes based on their relative values. Issuance costs attributable to the liability component were being amortized to interest expense over the contractual term of the convertible senior notes. The issuance costs attributable to the equity component were netted against the equity component representing the conversion option in additional paid-in capital. To the extent that we receive the convertible senior notes conversion requests prior to their maturity, a portion of the equity component is classified as temporary equity, which is measured as the difference between the principal and net carrying amount of the convertible senior notes requested for conversion. Upon settlement of the conversion requests, the difference between the fair value and the amortized book value of the liability component of the convertible senior notes requested for conversion is recorded as a gain or loss on early note conversion. The fair value of the convertible senior notes is measured based on a similar liability that does not have an associated convertible feature based on the remaining term of the convertible senior notes. Upon adoption of ASU 2020-06 and using the modified retrospective method, prior period amounts have not been adjusted. This standard resulted in our convertible senior notes being accounted for as a single unit of debt and we will no longer be required to record the conversion feature in equity. This further eliminated the need for amortization of the debt discount as interest expense and the portion of the issuance costs initially allocated to equity is now classified as debt and amortized as interest expense. As of August 1, 2022, the adoption of this new standard resulted in an increase of $169.9 million to the carrying amount of the convertible senior notes, a decrease of $273.7 million to additional paid-in capital and a cumulative-effect adjustment of $103.8 million to accumulated deficit. |
Research and Development | Research and Development Our research and development expenses support our efforts to add new products, new features to our existing offerings and to ensure the reliability, availability and scalability of our solutions. Our cloud platform is software-driven, and our research and development teams employ software engineers in the design and the related development, testing, certification and support of our solutions. Accordingly, the majority of our research and development expenses result from employee-related costs, including salaries, bonuses, benefits, stock-based compensation and costs associated with technology tools used by our engineers. |
Advertising Expenses | Advertising ExpensesAdvertising expenses are charged to sales and marketing expenses in the consolidated statements of operations as incurred. |
Warranties and Indemnification | Warranties and Indemnification Our cloud platform is generally warranted to be free of defects under normal use and to perform substantially in accordance with the subscription agreement. Additionally, our contracts generally include provisions for indemnifying customers and channel partners against liabilities if our services infringe or misappropriate a third party’s intellectual property rights. Costs and liabilities incurred as a result of warranties and indemnification obligations were not material during the periods presented. |
Legal Contingencies | Legal Contingencies We may be subject to legal proceedings and litigation arising from time to time. We record a liability when we believe that it is both probable that a loss has been incurred and the amount can be reasonably estimated. We periodically evaluate developments in our legal matters that could affect the amount of liability that we accrue, if any, and adjust, as appropriate. Until the final resolution of any such matter for which we may be required to record a liability, there may be a loss exposure in excess of the liability recorded and such amount could be significant. We expense legal fees as incurred. |
Income Taxes | I ncome Taxes We account for income taxes using the asset and liability method. Deferred income taxes are recognized by applying the enacted statutory tax rates applicable to future years to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance to amounts that are more likely than not to be realized. We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is comprised of the net loss and other comprehensive income (loss). Our other comprehensive income (loss) includes unrealized gains and losses on available-for-sale securities and unrealized gains and losses and realized gains and losses reclassified into net loss on cash flow hedges, as reflected in the consolidated statements of comprehensive loss. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted earnings per share adjusts basic earnings per share for all potentially dilutive common stock equivalents outstanding during the period. Potentially dilutive securities consist primarily of stock options, share purchase rights under the employee stock purchase plan, unvested restricted stock units ("RSUs"), unvested performance stock awards ("PSAs"), unvested common stock and shares related to convertible senior notes. Since we have reported net losses for all periods presented, we have excl uded all potentially dilutive securities from the calculation of the diluted net loss per share, as their effect is antidilutive. Accordingly, basic and diluted net loss per share is the same for all periods presented. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the 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. We adopted this standard in the first quarter of fiscal 2021 and it did not have a material impact to the consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) on Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This standard requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. Previously, acquired contract assets and liabilities were measured at fair value. This standard is effective for us in the first quarter of fiscal 2024, though early adoption is permitted. We early adopted this standard in the first quarter of fiscal 2022 and it did not have a material impact to the consolidated financial statements. In June 2020, the FASB issued ASU No. 2020-06. This standard removes the separation model for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. Such convertible debt will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The update also requires the if-converted method to be used for convertible instruments and the effect of potential share settlement be included in the diluted earnings per share calculation when an instrument may be settled in cash or shares. We adopted this standard effective on August 1, 2022, the beginning of fiscal 2023, using the modified retrospective method. In accordance with the adoption of ASU 2020-06 and using the modified retrospective method, prior period amounts have not been adjusted. For further information, refer to Convertible Senior Notes section in this Note 1, Business and Summary of Significant Accounting Policies. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of 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: Year Ended July 31, 2023 2022 2021 Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except for percentage data) United States $ 808,527 50 % $ 536,924 49 % $ 329,299 49 % Europe, Middle East and Africa (*) 515,136 32 370,035 34 253,138 38 Asia Pacific 241,250 15 155,460 14 76,105 11 Other 52,039 3 28,527 3 14,558 2 Total $ 1,616,952 100 % $ 1,090,946 100 % $ 673,100 100 % _____ (*) Revenue from the United Kingdom represented 10% of our revenue in fiscal 2021. Revenue from the United Kingdom represented less than 10% of our revenue in fiscal 2022 and fiscal 2023. The following table summarizes the revenue from contracts by type of customer: Year Ended July 31, 2023 2022 2021 Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except for percentage data) Channel partners $ 1,488,379 92 % $ 1,016,747 93 % $ 632,416 94 % Direct customers 128,573 8 74,199 7 40,684 6 Total $ 1,616,952 100 % $ 1,090,946 100 % $ 673,100 100 % |
Schedule of Capitalized Contract Cost | The activity of the deferred contract acquisition costs consisted of the following: Year Ended July 31, 2023 2022 2021 (in thousands) Beginning balance $ 297,002 $ 207,030 $ 109,915 Capitalization of contract acquisition costs 176,950 158,503 137,673 Amortization of deferred contract acquisition costs (98,718) (68,531) (40,558) Ending balance $ 375,234 $ 297,002 $ 207,030 The outstanding balance of the deferred contract acquisition costs consisted of the following: July 31, 2023 2022 (in thousands) Deferred contract acquisition costs, current $ 115,827 $ 86,210 Deferred contract acquisition costs, noncurrent 259,407 210,792 Total deferred contract acquisition costs $ 375,234 $ 297,002 |
Cash Equivalents and Short-Te_2
Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
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 July 31, 2023: Amortized Unrealized Unrealized Fair Value (in thousands) Cash equivalents: Money market funds $ 768,003 $ — $ — $ 768,003 U.S. treasury securities 157,250 — (30) 157,220 U.S. government agency securities 166,671 — (35) 166,636 Corporate debt securities 38,800 — — 38,800 Total cash equivalents $ 1,130,724 $ — $ (65) $ 1,130,659 Short-term investments: U.S. treasury securities $ 175,451 $ — $ (1,875) $ 173,576 U.S. government agency securities 266,392 2 (4,299) 262,095 Corporate debt securities 406,517 49 (4,211) 402,355 Total short-term investments $ 848,360 $ 51 $ (10,385) $ 838,026 Total cash equivalents and short-term investments $ 1,979,084 $ 51 $ (10,450) $ 1,968,685 Cash equivalents and short-term investments consisted of the following as of July 31, 2022: Amortized Unrealized Unrealized Fair Value (in thousands) Cash equivalents: Money market funds $ 247,613 $ — $ — $ 247,613 U.S. treasury securities 202,778 — (70) 202,708 U.S. government agency securities 135,525 2 (38) 135,489 Corporate debt securities 106,272 — — 106,272 Total cash equivalents $ 692,188 $ 2 $ (108) $ 692,082 Short-term investments: U.S. treasury securities $ 96,089 $ 10 $ (251) $ 95,848 U.S. government agency securities 339,957 6 (6,628) 333,335 Corporate debt securities 293,968 — (5,022) 288,946 Total short-term investments $ 730,014 $ 16 $ (11,901) $ 718,129 Total cash equivalents and short-term investments $ 1,422,202 $ 18 $ (12,009) $ 1,410,211 |
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 July 31, 2023: Amortized Fair Value (in thousands) Due within one year $ 409,026 $ 406,681 Due between one to three years 439,334 431,345 Total $ 848,360 $ 838,026 |
Schedule of Unrealized Loss on Investments | Short-term investments that were in an unrealized loss position as of July 31, 2023 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 $ 173,576 $ (1,875) $ — $ — $ 173,576 $ (1,875) U.S. government agency securities 119,558 (292) 131,530 (4,007) 251,088 (4,299) Corporate debt securities 232,504 (2,034) 82,599 (2,177) 315,103 (4,211) Total $ 525,638 $ (4,201) $ 214,129 $ (6,184) $ 739,767 $ (10,385) Short-term investments that were in an unrealized loss position as of July 31, 2022 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 $ 80,833 $ (251) $ — $ — $ 80,833 $ (251) U.S. government agency securities 230,670 (5,150) 50,134 (1,478) 280,804 (6,628) Corporate debt securities 155,968 (3,947) 71,127 (1,075) 227,095 (5,022) Total $ 467,471 $ (9,348) $ 121,261 $ (2,553) $ 588,732 $ (11,901) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | Assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of July 31, 2023: Level I Level II Level III Fair Value Quoted Prices Significant Significant (in thousands) Cash equivalents: Money market funds $ 768,003 $ 768,003 $ — $ — U.S. treasury securities 157,220 — 157,220 — U.S. government agency securities 166,636 — 166,636 — Corporate debt securities 38,800 — 38,800 — Total cash equivalents $ 1,130,659 $ 768,003 $ 362,656 $ — Short-term investments: U.S. treasury securities $ 173,576 $ — $ 173,576 $ — U.S. government agency securities 262,095 — 262,095 — Corporate debt securities 402,355 — 402,355 — Total short-term investments $ 838,026 $ — $ 838,026 $ — Total cash equivalents and short-term investments $ 1,968,685 $ 768,003 $ 1,200,682 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 12,581 $ — $ 12,581 $ — Foreign currency contracts assets-noncurrent (2) $ 2,264 $ — $ 2,264 $ — Foreign currency contracts liabilities-current (3) $ 1,452 $ — $ 1,452 $ — Foreign currency contracts liabilities-noncurrent (4) $ 669 $ — $ 669 $ — Interest rate contracts liabilities-current (3) $ 6,439 $ — $ 6,439 $ — Interest rate contracts liabilities-noncurrent (4) $ 1,588 $ — $ 1,588 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 2,061 $ — $ 2,061 $ — Foreign currency contracts liabilities-current (3) $ 465 $ — $ 465 $ — (1) Included within prepaid expenses and other current assets in the consolidated balance sheets. (2) Included within other noncurrent assets in the consolidated balance sheets. (3) Included within accrued expenses and other current liabilities in the consolidated balance sheets. (4) Included within other noncurrent liabilities in the consolidated balance sheets. Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2022: Level I Level II Level III Fair Value Quoted Prices Significant Significant (in thousands) Cash equivalents: Money market funds $ 247,613 $ 247,613 $ — $ — U.S. treasury securities 202,708 — 202,708 — U.S. government agency securities 135,489 — 135,489 — Corporate debt securities 106,272 — 106,272 — Total $ 692,082 $ 247,613 $ 444,469 $ — Short-term investments: U.S. treasury securities $ 95,848 $ — $ 95,848 $ — U.S. government agency securities 333,335 — 333,335 — Corporate debt securities 288,946 — 288,946 — Total $ 718,129 $ — $ 718,129 $ — Total cash equivalents and short-term investments $ 1,410,211 $ 247,613 $ 1,162,598 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 178 $ — $ 178 $ — Foreign currency contracts assets-noncurrent (2) $ 17 $ — $ 17 $ — Foreign currency contracts liabilities-current (3) $ 10,921 $ — $ 10,921 $ — Foreign currency contracts liabilities-noncurrent (4) $ 588 $ — $ 588 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 452 $ — $ 452 $ — Foreign currency contracts liabilities-current (3) $ 3,427 $ — $ 3,427 $ — (1) Included within prepaid expenses and other current assets in the consolidated balance sheets. (2) Included within other noncurrent assets in the consolidated balance sheets. (3) Included within accrued expenses and other current liabilities in the consolidated balance sheets. |
Schedule of Fair Value, Liabilities Measured on Recurring Basis | Assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of July 31, 2023: Level I Level II Level III Fair Value Quoted Prices Significant Significant (in thousands) Cash equivalents: Money market funds $ 768,003 $ 768,003 $ — $ — U.S. treasury securities 157,220 — 157,220 — U.S. government agency securities 166,636 — 166,636 — Corporate debt securities 38,800 — 38,800 — Total cash equivalents $ 1,130,659 $ 768,003 $ 362,656 $ — Short-term investments: U.S. treasury securities $ 173,576 $ — $ 173,576 $ — U.S. government agency securities 262,095 — 262,095 — Corporate debt securities 402,355 — 402,355 — Total short-term investments $ 838,026 $ — $ 838,026 $ — Total cash equivalents and short-term investments $ 1,968,685 $ 768,003 $ 1,200,682 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 12,581 $ — $ 12,581 $ — Foreign currency contracts assets-noncurrent (2) $ 2,264 $ — $ 2,264 $ — Foreign currency contracts liabilities-current (3) $ 1,452 $ — $ 1,452 $ — Foreign currency contracts liabilities-noncurrent (4) $ 669 $ — $ 669 $ — Interest rate contracts liabilities-current (3) $ 6,439 $ — $ 6,439 $ — Interest rate contracts liabilities-noncurrent (4) $ 1,588 $ — $ 1,588 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 2,061 $ — $ 2,061 $ — Foreign currency contracts liabilities-current (3) $ 465 $ — $ 465 $ — (1) Included within prepaid expenses and other current assets in the consolidated balance sheets. (2) Included within other noncurrent assets in the consolidated balance sheets. (3) Included within accrued expenses and other current liabilities in the consolidated balance sheets. (4) Included within other noncurrent liabilities in the consolidated balance sheets. Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2022: Level I Level II Level III Fair Value Quoted Prices Significant Significant (in thousands) Cash equivalents: Money market funds $ 247,613 $ 247,613 $ — $ — U.S. treasury securities 202,708 — 202,708 — U.S. government agency securities 135,489 — 135,489 — Corporate debt securities 106,272 — 106,272 — Total $ 692,082 $ 247,613 $ 444,469 $ — Short-term investments: U.S. treasury securities $ 95,848 $ — $ 95,848 $ — U.S. government agency securities 333,335 — 333,335 — Corporate debt securities 288,946 — 288,946 — Total $ 718,129 $ — $ 718,129 $ — Total cash equivalents and short-term investments $ 1,410,211 $ 247,613 $ 1,162,598 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 178 $ — $ 178 $ — Foreign currency contracts assets-noncurrent (2) $ 17 $ — $ 17 $ — Foreign currency contracts liabilities-current (3) $ 10,921 $ — $ 10,921 $ — Foreign currency contracts liabilities-noncurrent (4) $ 588 $ — $ 588 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 452 $ — $ 452 $ — Foreign currency contracts liabilities-current (3) $ 3,427 $ — $ 3,427 $ — (1) Included within prepaid expenses and other current assets in the consolidated balance sheets. (2) Included within other noncurrent assets in the consolidated balance sheets. (3) Included within accrued expenses and other current liabilities in the consolidated balance sheets. |
Property and Equipment and Pu_2
Property and Equipment and Purchased Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: July 31, Estimated Useful Life 2023 2022 (in thousands) Hosting equipment 3 - 4 years $ 280,851 $ 191,037 Capitalized internal-use software 3 years 120,877 72,267 Computers and equipment 3 - 5 years 7,107 6,774 Purchased software 3 years 1,311 1,311 Furniture and fixtures 5 years 1,025 1,022 Leasehold improvements Shorter of useful life or lease term 7,608 7,339 Total property and equipment, gross 418,779 279,750 Less: Accumulated depreciation and amortization (176,424) (119,117) Total property and equipment, net $ 242,355 $ 160,633 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Net Assets Acquired | The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash, cash equivalents and other assets $ 673 Acquired intangible assets: Developed technology 5,100 5 years Deferred tax asset 781 Goodwill 10,645 Total $ 17,199 Liabilities assumed: Accounts payable, accrued expenses and other liabilities $ 692 Total $ 692 Total purchase price consideration $ 16,507 The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 535 Acquired intangible assets: Developed technology 7,100 5 years Goodwill 18,724 Total $ 26,359 Less liabilities assumed: Deferred tax liability $ 682 Other liabilities 99 Total $ 781 Total purchase price consideration $ 25,578 The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 1,347 Acquired intangible assets: Developed technology 5,600 5 years Customer relationships 2,100 5 years Goodwill 5,686 Total $ 14,733 Less liabilities assumed: Deferred tax liability $ 1,558 Other liabilities 1,516 Total $ 3,074 Total purchase price consideration $ 11,659 The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 1,611 Acquired intangible assets: Developed technology 7,200 5 years Goodwill 23,232 Total $ 32,043 Less Liabilities assumed: Deferred tax liability $ 624 Other liabilities 277 Total $ 901 Total purchase price consideration $ 31,142 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill consisted of the following: Amount (in thousands) Balance as of July 31, 2022 $ 78,547 Goodwill acquired 10,645 Balance as of July 31, 2023 $ 89,192 |
Schedule of Acquired Intangible Assets | Changes in acquired intangible assets for July 31, 2023 and 2022, consisted of the following: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful life July 31, 2022 Additions July 31, 2023 July 31, 2022 Amortization Expense July 31, 2023 July 31, 2022 July 31, 2023 July 31, 2023 (in thousands) (years) Developed technology $ 48,356 $ 5,100 $ 53,456 $ (18,972) $ (10,287) $ (29,259) $ 29,384 $ 24,197 3.0 Customer relationships 3,560 — 3,560 (1,125) (773) (1,898) 2,435 1,662 2.3 Total $ 51,916 $ 5,100 $ 57,016 $ (20,097) $ (11,060) $ (31,157) $ 31,819 $ 25,859 3.0 |
Schedule of Future Amortization Expense | Future amortization expense of acquired intangible assets as of July 31, 2023 consisted of the following: Amount (in thousands) Year ending July 31, 2024 $ 11,320 2025 6,265 2026 5,252 2027 2,428 Thereafter 594 Total $ 25,859 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedges on our Consolidated Statement of Operations | The following table presents information about losses related to our cash flow hedges reclassified from AOCI into the consolidated statement of operations for fiscal 2023 and fiscal 2022 : Year ended July 31 (1) 2023 2022 (in thousands) Classification: Cost of revenue $ 1,835 $ 617 Sales and marketing 7,670 520 Research and development 1,506 284 General and administrative 568 5,592 Total $ 11,579 $ 7,013 (1) The gains and losses related to our cash flow hedges reclassified from AOCI into the consolidated statement of operations for fiscal 2021 was not material. |
Schedule of Derivative Instruments Designated as Fair Value Hedges | The following table presents the effect of derivative instruments designated as fair value hedges included within interest expense in the statement of operations, for fiscal 2023: Gains (Losses) (in thousands) Interest rate swaps: Hedged items $ 8,306 Derivatives designated as hedging instruments (8,028) Total $ 278 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activities | The following table presents the activity of the restructuring liability for fiscal 2023 : Restructuring Liability (in thousands) Balance as of July 31, 2022 $ — Charges, excluding stock-based compensation expense 6,565 Payments (5,520) Balance as of July 31, 2023 $ 1,045 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
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 consisted of the following: July 31, 2023 2022 (in thousands) Principal amount $ 1,149,993 $ 1,149,995 Less: Unamortized debt discount (1) — 172,169 Unamortized debt issuance costs (1) 7,528 9,152 Hedge accounting fair value adjustments 8,306 — Total $ 1,134,159 $ 968,674 (1) Effective August 1, 2022, we adopted ASU 2020-06 using the modified retrospective method under which prior period amounts have not been adjusted. The adoption of this standard resulted in the elimination of the debt discount and related amortization as interest expense and the classification of the portion of the debt issuance costs initially allocated to equity within the carrying amount of our convertible senior notes, which is recognized as interest expense post adoption of the standard. The following table sets forth total interest expense recognized related to the Notes: Year Ended July 31, 2023 2022 2021 (in thousands) Contractual interest expense $ 1,439 $ 1,438 $ 1,441 Amortization of debt discount (1) — 52,358 49,302 Amortization of debt issuance costs (1) 3,894 2,783 2,621 Total $ 5,333 $ 56,579 $ 53,364 (1) The decrease in total interest expense for the fiscal 2023, was due to the derecognition of unamortized debt discount partially offset by the increase in the amortization of issuance costs previously recognized in equity. These changes were the result of adoption of ASU 2020-06, as described in Note 1, Business and Summary of Significant Accounting Policies. |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Leases [Abstract] | |
Summary of Operating Lease Costs | The following is a summary of our operating lease costs: Year Ended July 31, 2023 2022 2021 Real Estate Arrangements Co-Location Arrangements Total Real Estate Arrangements Co-Location Arrangements Total Real Estate Arrangements Co-Location Arrangements Total (in thousands) Operating lease, including imputed interest $ 7,858 $ 24,677 $ 32,535 $ 6,347 $ 19,356 $ 25,703 $ 6,442 $ 14,504 $ 20,946 Short-term lease cost 4,314 5,688 10,002 2,826 1,889 4,715 1,527 694 2,221 Variable lease cost 6,992 4,956 11,948 3,163 4,480 7,643 3,192 3,244 6,436 Sublease income — — — — — — (199) — (199) Total operating lease costs $ 19,164 $ 35,321 $ 54,485 $ 12,336 $ 25,725 $ 38,061 $ 10,962 $ 18,442 $ 29,404 Weighted-average remaining lease term (in years) 3.0 2.0 3.7 2.7 4.7 1.9 Weighted-average discount rate 4.5 % 3.2 % 4.1 % 2.2 % 4.4 % 2.3 % |
Summary of Lease Assets and Liabilities | The following table presents information about our leases in the consolidated balance sheets: July 31, 2023 2022 Real Estate Arrangements Co-Location Arrangements Total Real Estate Arrangements Co-Location Arrangements Total (in thousands) Operating lease right-of-use assets $ 18,493 $ 52,178 $ 70,671 $ 18,530 $ 53,827 $ 72,357 Operating lease liabilities, current $ 6,777 $ 27,692 $ 34,469 $ 6,073 $ 20,027 $ 26,100 Operating lease liabilities, noncurrent $ 14,875 $ 27,042 $ 41,917 $ 16,571 $ 34,377 $ 50,948 |
Schedule of Lease Maturities | Maturities of operating lease liabilities consisted of the following as of July 31, 2023: Real Estate Arrangements Co-Location Arrangements Total Year ending July 31, (in thousands) 2024 $ 7,604 $ 28,952 $ 36,556 2025 7,530 23,915 31,445 2026 6,928 3,645 10,573 2027 1,120 — 1,120 Total future minimum lease payments 23,182 56,512 79,694 Less: Imputed interest 1,530 1,778 3,308 Total $ 21,652 $ 54,734 $ 76,386 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maturities of Non-Cancelable Purchase Obligations | The maturities of non-cancelable purchase obligations with a term of 12 months or longer consisted of the following as of July 31, 2023: Amount Year ending July 31, (in thousands) 2024 $ 21,956 2025 32,198 2026 24,675 2027 15,745 Total $ 94,574 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock | The following table summarizes our shares of common stock reserved for future issuance: July 31, 2023 (in thousands) Equity awards outstanding: Stock options 1,267 Unvested restricted stock units 8,339 Committed unvested performance stock awards, based on the target number of shares 377 Unvested performance stock awards 1,012 Share purchase rights committed under the employee stock purchase plan 1,119 Equity awards available for future grants: Equity incentive plans 27,921 Employee stock purchase plan 4,666 Stock reserved for settlement of the Notes 7,626 Total 52,327 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Options | The activity of stock options for fiscal 2023 consisted of the following: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2022 1,673 $11.81 2.5 $ 240,286 Granted 50 $152.99 Exercised (451) $8.65 $ 56,459 Canceled, forfeited or expired (5) $7.80 Balance as of July 31, 2023 1,267 $18.54 2.1 $ 179,678 Exercisable and expected to vest as of July 31, 2022 1,501 $10.78 2.4 $ 216,539 Exercisable and expected to vest as of July 31, 2023 1,210 $12.82 1.8 $ 178,616 |
Schedule of Valuation Assumptions | We estimated the fair value of stock options using the Black-Scholes option pricing model with the following assumptions: Year Ended July 31 (1) 2023 Expected term (in years) 6.1 Expected stock price volatility 58.2% Risk-free interest rate 3.9% Dividend yield 0.0% (1) There were no stock options granted during fiscal 2022 and fiscal 2021. |
Schedule of Restricted Stock Units and Performance Stock Awards Activity | The activity of RSUs and PSAs consisted of the following for fiscal 2023: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2022 7,388 $157.17 $ 1,145,526 Granted 6,531 $124.57 Vested (3,179) $139.43 $ 462,289 Canceled or forfeited (1,389) $160.38 Balance as of July 31, 2023 9,351 $139.95 $ 1,499,714 |
Schedule of ESPP Valuation Assumptions | The fair value of the purchase right for the ESPP was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Year Ended July 31, 2023 2022 2021 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected stock price volatility 58.1% - 75.9% 44.1% - 79.4% 46.2% - 67.4% Risk-free interest rate 4.2% - 5.3% 0.1% - 3.2% 0.1% - 0.2% Dividend yield 0.0% 0.0% 0.0% |
Schedule of Allocation of Stock-based Compensation Expense | The components of stock-based compensation expense recognized in the consolidated statements of operations consisted of the following: Year Ended July 31, 2023 2022 2021 (in thousands) Cost of revenue $ 39,168 $ 23,847 $ 14,036 Sales and marketing 215,597 191,091 133,115 Research and development 117,915 118,299 67,803 General and administrative 71,118 76,325 43,581 Restructuring and other charges 1,036 — — Total $ 444,834 $ 409,562 $ 258,535 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The following table sets forth the geographical breakdown of the income (loss) before the provision for income taxes: Year ended July 31, 2023 2022 2021 (in thousands) Domestic $ (228,715) $ (413,148) $ (275,189) International 46,151 29,518 18,011 Loss before provision for income taxes $ (182,564) $ (383,630) $ (257,178) |
Schedule of Components of Income Tax Expense (Benefit) | The following table sets forth the components of the provision for income taxes: Year ended July 31, 2023 2022 2021 Current: (in thousands) Federal $ 1,091 $ — $ — State 3,890 399 126 Foreign 14,438 6,996 7,104 Total current tax expense 19,419 7,395 7,230 Deferred: Federal — (858) (349) State — (185) (3) Foreign 352 296 (2,027) Total deferred tax benefit (expense) 352 (747) (2,379) Total provision for income taxes $ 19,771 $ 6,648 $ 4,851 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents the reconciliation of the statutory federal income tax rate to our effective tax rate: Year ended July 31, 2023 2022 2021 Tax at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes (2.1) (0.1) — Impact of foreign rate differential 10.1 (0.4) 0.4 Stock-based compensation (0.8) 17.6 43.9 U.S. tax credits 8.6 3.9 4.1 Change in valuation allowance (34.1) (43.6) (70.6) Withholding tax (1.3) (0.2) (0.7) Waived deductions under Section 59A (11.8) — — Other (0.5) 0.1 — Effective tax rate (10.9) % (1.7) % (1.9) % |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities: July 31, 2023 2022 (in thousands) Deferred tax assets: Net operating losses carryovers $ 401,261 $ 487,298 Deferred revenue 122,326 69,511 R&D capitalization 92,901 — Tax credits carryovers 98,564 68,272 Other 75,598 58,141 Gross deferred tax assets 790,650 683,222 Less: Valuation allowance (671,381) (553,916) Total deferred tax assets $ 119,269 $ 129,306 Deferred tax liabilities: Other $ (9,412) $ (6,319) Deferred contract acquisition costs (86,805) (67,512) Convertible senior notes — (39,515) Operating lease right-of-use assets (22,403) (15,739) Total deferred tax liabilities $ (118,620) $ (129,085) Net deferred tax assets $ 649 $ 221 |
Schedule of Valuation Allowance | The following table presents the change in the valuation allowance: Year ended July 31, 2023 2022 2021 (in thousands) Balance as of the beginning of the period $ 553,916 $ 345,756 $ 130,236 Change during the period 117,465 208,160 215,520 Balance as of the end of the period $ 671,381 $ 553,916 $ 345,756 |
Schedule of Unrecognized Tax Benefits Roll Forward | The changes in our gross unrecognized tax benefits consisted of the following: Amount (in thousands) Balance as of July 31, 2021 $ 18,501 Gross increase for tax positions of prior fiscal years 1,129 Gross increase for tax positions of current fiscal years 10,069 Balance as of July 31, 2022 29,699 Gross increase for tax positions of prior fiscal years 1,653 Gross increase for tax positions of current fiscal year 9,337 Balance as of July 31, 2023 $ 40,689 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
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: Year Ended July 31, 2023 2022 2021 (in thousands, except per share data) Net loss $ (202,335) $ (390,278) $ (262,029) Weighted-average shares used in computing net loss per share, basic and diluted 144,942 140,895 135,654 Net loss per share, basic and diluted $ (1.40) $ (2.77) $ (1.93) |
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 as their effect would be antidilutive: July 31, 2023 2022 2021 (in thousands) Unvested RSUs and shares of common stock 8,442 6,769 7,440 Stock options 1,267 1,673 2,597 Unvested PSAs (1) 1,012 832 562 Share purchase rights under the ESPP 1,119 850 344 Notes (2) 7,626 7,626 7,626 Total 19,466 17,750 18,569 (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 July 31, 2023, as they are not considered outstanding for accounting purposes. Refer to Note 14, Stock-Based Compensation, for further information. (2) The shares underlying the conversion option in the Notes were not considered in the calculation of diluted net loss per share as the effect would have been antidilutive. Based on the initial conversion price, the entire outstanding principal amount of the Notes as of July 31, 2023 would have been convertible into approximately 7.6 million shares of our common stock, which is reflected in the above table. As we expect to settle the principal amount of the Notes in cash, only the amount by which the conversion value exceeds the aggregate principal amount of the Notes (the "conversion spread") is considered in the diluted earnings per share computation under the treasury stock method. The conversion spread has a dilutive impact on diluted net income per share when the average market price of our common stock for a given reporting period exceeds the initial conversion price of $150.80 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of Long-Lived Assets | Our long-lived assets consist of property and equipment and operating lease right-of-use assets, which are summarized by geographic area as follows: July 31, 2023 2022 (in thousands) United States $ 213,611 $ 155,625 Rest of the world 99,415 77,365 Total $ 313,026 $ 232,990 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details) shares in Thousands | 12 Months Ended | |||||
Aug. 01, 2022 USD ($) shares | Jun. 25, 2020 shares | Jul. 31, 2023 USD ($) segment shares | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Jul. 31, 2020 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Number of reportable segments | segment | 1 | |||||
Number of operating segments | segment | 1 | |||||
Investment impairment | $ 0 | $ 0 | $ 0 | |||
Capitalized software costs | 48,600,000 | 32,700,000 | 16,500,000 | |||
Capitalized software, amortization expense | 24,200,000 | 13,000,000 | 5,900,000 | |||
Impairment of goodwill | 0 | 0 | 0 | |||
Asset impairment charges | $ 0 | 0 | $ 400,000 | |||
Impairment, long-lived asset, held-for-use, statement of income or comprehensive income [Extensible Enumeration] | General and administrative | |||||
Requisite service period | 4 years | |||||
Total carrying value | $ 1,149,993,000 | 1,149,995,000 | ||||
Cumulative effect adjustment | $ 725,112,000 | 573,300,000 | $ 528,895,000 | $ 484,829,000 | ||
Number of shares if notes converted (in shares) | shares | 7,630 | 7,626 | 7,600 | |||
Advertising expense | $ 24,000,000 | 22,100,000 | 11,800,000 | |||
Additional Paid-In Capital | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustment | 1,816,915,000 | 1,590,885,000 | 1,131,006,000 | 823,804,000 | ||
Accumulated Deficit | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustment | $ (1,090,374,000) | (991,878,000) | $ (601,600,000) | $ (339,571,000) | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Total carrying value | $ 169,900,000 | |||||
Cumulative effect adjustment | (169,899,000) | |||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustment | (273,700,000) | (273,738,000) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect adjustment | $ 103,800,000 | $ 103,839,000 | ||||
Capitalized internal-use software | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful life | 3 years | |||||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Contract with customer, term of contract | 1 year | |||||
Estimated useful life | 3 years | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Contract with customer, term of contract | 3 years | |||||
Estimated useful life | 5 years |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 1,439.7 | $ 1,021.1 | |
Contract with customer, liability, revenue recognized | 919.9 | 570.3 | $ 335.5 |
Revenue, remaining performance obligation | $ 3,513.6 | ||
Capitalized contract cost, amortization period | 5 years | ||
Accrued sales commissions | $ 48 | $ 47.2 | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 30 days | ||
Contract with customer, term of contract | 1 year | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 90 days | ||
Contract with customer, term of contract | 3 years | ||
Transferred Over Time | Product Concentration Risk | Subscription and Support | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 97% | 97% | 97% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,616,952 | $ 1,090,946 | $ 673,100 |
Geographic Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,616,952 | $ 1,090,946 | $ 673,100 |
Revenue percentage | 100% | 100% | 100% |
Geographic Concentration Risk | Revenue Benchmark | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 808,527 | $ 536,924 | $ 329,299 |
Revenue percentage | 50% | 49% | 49% |
Geographic Concentration Risk | Revenue Benchmark | Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 515,136 | $ 370,035 | $ 253,138 |
Revenue percentage | 32% | 34% | 38% |
Geographic Concentration Risk | Revenue Benchmark | Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 241,250 | $ 155,460 | $ 76,105 |
Revenue percentage | 15% | 14% | 11% |
Geographic Concentration Risk | Revenue Benchmark | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 52,039 | $ 28,527 | $ 14,558 |
Revenue percentage | 3% | 3% | 2% |
Geographic Concentration Risk | Revenue Benchmark | United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage | 10% | 10% | 10% |
Customer Concentration Risk | Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,616,952 | $ 1,090,946 | $ 673,100 |
Revenue percentage | 100% | 100% | 100% |
Customer Concentration Risk | Revenue Benchmark | Channel partners | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,488,379 | $ 1,016,747 | $ 632,416 |
Revenue percentage | 92% | 93% | 94% |
Customer Concentration Risk | Revenue Benchmark | Direct customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 128,573 | $ 74,199 | $ 40,684 |
Revenue percentage | 8% | 7% | 6% |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) | Jul. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 49% |
Recognized transaction price period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 95% |
Recognized transaction price period | 3 years |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Changes in Capitalized Contract Cost [Roll Forward] | |||
Beginning balance | $ 297,002 | $ 207,030 | $ 109,915 |
Capitalization of contract acquisition costs | 176,950 | 158,503 | 137,673 |
Amortization of deferred contract acquisition costs | (98,718) | (68,531) | (40,558) |
Ending balance | 375,234 | 297,002 | 207,030 |
Deferred contract acquisition costs, current | 115,827 | 86,210 | |
Deferred contract acquisition costs, noncurrent | 259,407 | 210,792 | |
Total deferred contract acquisition costs | $ 375,234 | $ 297,002 | $ 207,030 |
Cash Equivalents and Short-Te_3
Cash Equivalents and Short-Term Investments - Schedule of Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Cash equivalents: | ||
Amortized Cost | $ 1,130,724 | $ 692,188 |
Unrealized Gains | 0 | 2 |
Unrealized Losses | (65) | (108) |
Fair Value | 1,130,659 | 692,082 |
Short-term investments: | ||
Amortized Cost | 848,360 | 730,014 |
Unrealized Gains | 51 | 16 |
Unrealized Losses | (10,385) | (11,901) |
Fair Value | 838,026 | 718,129 |
Total cash equivalents and short-term investments, amortized cost | 1,979,084 | 1,422,202 |
Total cash equivalents and short-term investments, unrealized gains | 51 | 18 |
Total cash equivalents and short-term investments, unrealized losses | (10,450) | (12,009) |
Total cash equivalents and short-term investments | 1,968,685 | 1,410,211 |
U.S. treasury securities | ||
Short-term investments: | ||
Amortized Cost | 175,451 | 96,089 |
Unrealized Gains | 0 | 10 |
Unrealized Losses | (1,875) | (251) |
Fair Value | 173,576 | 95,848 |
U.S. government agency securities | ||
Short-term investments: | ||
Amortized Cost | 266,392 | 339,957 |
Unrealized Gains | 2 | 6 |
Unrealized Losses | (4,299) | (6,628) |
Fair Value | 262,095 | 333,335 |
Corporate debt securities | ||
Short-term investments: | ||
Amortized Cost | 406,517 | 293,968 |
Unrealized Gains | 49 | 0 |
Unrealized Losses | (4,211) | (5,022) |
Fair Value | 402,355 | 288,946 |
Money market funds | ||
Cash equivalents: | ||
Amortized Cost | 768,003 | 247,613 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 768,003 | 247,613 |
U.S. treasury securities | ||
Cash equivalents: | ||
Amortized Cost | 157,250 | 202,778 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (30) | (70) |
Fair Value | 157,220 | 202,708 |
U.S. government agency securities | ||
Cash equivalents: | ||
Amortized Cost | 166,671 | 135,525 |
Unrealized Gains | 0 | 2 |
Unrealized Losses | (35) | (38) |
Fair Value | 166,636 | 135,489 |
Corporate debt securities | ||
Cash equivalents: | ||
Amortized Cost | 38,800 | 106,272 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 38,800 | $ 106,272 |
Cash Equivalents and Short-Te_4
Cash Equivalents and Short-Term Investments - Schedule of Maturities (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Amortized Cost | ||
Due within one year | $ 409,026 | |
Due between one to three years | 439,334 | |
Amortized Cost | 848,360 | $ 730,014 |
Fair Value | ||
Due within one year | 406,681 | |
Due between one to three years | 431,345 | |
Fair Value | $ 838,026 | $ 718,129 |
Cash Equivalents and Short-Te_5
Cash Equivalents and Short-Term Investments - Schedule of Unrealized Position (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 525,638 | $ 467,471 |
Less than 12 months, unrealized losses | (4,201) | (9,348) |
Greater than 12 months, fair value | 214,129 | 121,261 |
Greater than 12 months, unrealized losses | (6,184) | (2,553) |
Total fair value | 739,767 | 588,732 |
Total unrealized losses | (10,385) | (11,901) |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 173,576 | 80,833 |
Less than 12 months, unrealized losses | (1,875) | (251) |
Greater than 12 months, fair value | 0 | 0 |
Greater than 12 months, unrealized losses | 0 | 0 |
Total fair value | 173,576 | 80,833 |
Total unrealized losses | (1,875) | (251) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 119,558 | 230,670 |
Less than 12 months, unrealized losses | (292) | (5,150) |
Greater than 12 months, fair value | 131,530 | 50,134 |
Greater than 12 months, unrealized losses | (4,007) | (1,478) |
Total fair value | 251,088 | 280,804 |
Total unrealized losses | (4,299) | (6,628) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 232,504 | 155,968 |
Less than 12 months, unrealized losses | (2,034) | (3,947) |
Greater than 12 months, fair value | 82,599 | 71,127 |
Greater than 12 months, unrealized losses | (2,177) | (1,075) |
Total fair value | 315,103 | 227,095 |
Total unrealized losses | $ (4,211) | $ (5,022) |
Cash Equivalents and Short-Te_6
Cash Equivalents and Short-Term Investments - Narrative (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Jul. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Accrued interest receivable | $ 7.2 | $ 1.3 |
Investment carrying value | $ 7.8 | $ 5.1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Cash equivalents: | ||
Fair Value | $ 1,130,659 | $ 692,082 |
Short-term investments: | ||
Short-term investments | 838,026 | 718,129 |
Total cash equivalents and short-term investments | 1,968,685 | 1,410,211 |
Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 1,130,659 | 692,082 |
Short-term investments: | ||
Short-term investments | 838,026 | 718,129 |
Total cash equivalents and short-term investments | 1,968,685 | 1,410,211 |
Fair Value, Measurements, Recurring | Foreign Currency Contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative assets-current | 12,581 | 178 |
Derivative assets-noncurrent | 2,264 | 17 |
Derivative liabilities-current | 1,452 | 10,921 |
Derivative liabilities-noncurrent | 669 | 588 |
Non-designated derivative instruments: | ||
Derivative assets-current | 12,581 | 178 |
Derivative liabilities-current | 1,452 | 10,921 |
Fair Value, Measurements, Recurring | Foreign Currency Contracts | Not Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative assets-current | 2,061 | 452 |
Derivative liabilities-current | 465 | 3,427 |
Non-designated derivative instruments: | ||
Derivative assets-current | 2,061 | 452 |
Derivative liabilities-current | 465 | 3,427 |
Fair Value, Measurements, Recurring | Interest Rate Contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative liabilities-current | 6,439 | |
Derivative liabilities-noncurrent | 1,588 | |
Non-designated derivative instruments: | ||
Derivative liabilities-current | 6,439 | |
Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 768,003 | 247,613 |
Short-term investments: | ||
Short-term investments | 0 | 0 |
Total cash equivalents and short-term investments | 768,003 | 247,613 |
Fair Value, Measurements, Recurring | Level I | Foreign Currency Contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative assets-current | 0 | 0 |
Derivative assets-noncurrent | 0 | 0 |
Derivative liabilities-current | 0 | 0 |
Derivative liabilities-noncurrent | 0 | 0 |
Non-designated derivative instruments: | ||
Derivative assets-current | 0 | 0 |
Derivative liabilities-current | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Foreign Currency Contracts | Not Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative assets-current | 0 | 0 |
Derivative liabilities-current | 0 | 0 |
Non-designated derivative instruments: | ||
Derivative assets-current | 0 | 0 |
Derivative liabilities-current | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Interest Rate Contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative liabilities-current | 0 | |
Derivative liabilities-noncurrent | 0 | |
Non-designated derivative instruments: | ||
Derivative liabilities-current | 0 | |
Fair Value, Measurements, Recurring | Level II | ||
Cash equivalents: | ||
Fair Value | 362,656 | 444,469 |
Short-term investments: | ||
Short-term investments | 838,026 | 718,129 |
Total cash equivalents and short-term investments | 1,200,682 | 1,162,598 |
Fair Value, Measurements, Recurring | Level II | Foreign Currency Contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative assets-current | 12,581 | 178 |
Derivative assets-noncurrent | 2,264 | 17 |
Derivative liabilities-current | 1,452 | 10,921 |
Derivative liabilities-noncurrent | 669 | 588 |
Non-designated derivative instruments: | ||
Derivative assets-current | 12,581 | 178 |
Derivative liabilities-current | 1,452 | 10,921 |
Fair Value, Measurements, Recurring | Level II | Foreign Currency Contracts | Not Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative assets-current | 2,061 | 452 |
Derivative liabilities-current | 465 | 3,427 |
Non-designated derivative instruments: | ||
Derivative assets-current | 2,061 | 452 |
Derivative liabilities-current | 465 | 3,427 |
Fair Value, Measurements, Recurring | Level II | Interest Rate Contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative liabilities-current | 6,439 | |
Derivative liabilities-noncurrent | 1,588 | |
Non-designated derivative instruments: | ||
Derivative liabilities-current | 6,439 | |
Fair Value, Measurements, Recurring | Level III | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Short-term investments: | ||
Short-term investments | 0 | 0 |
Total cash equivalents and short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Foreign Currency Contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative assets-current | 0 | 0 |
Derivative assets-noncurrent | 0 | 0 |
Derivative liabilities-current | 0 | 0 |
Derivative liabilities-noncurrent | 0 | 0 |
Non-designated derivative instruments: | ||
Derivative assets-current | 0 | 0 |
Derivative liabilities-current | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Foreign Currency Contracts | Not Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative assets-current | 0 | 0 |
Derivative liabilities-current | 0 | 0 |
Non-designated derivative instruments: | ||
Derivative assets-current | 0 | 0 |
Derivative liabilities-current | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Interest Rate Contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Derivative liabilities-current | 0 | |
Derivative liabilities-noncurrent | 0 | |
Non-designated derivative instruments: | ||
Derivative liabilities-current | 0 | |
U.S. treasury securities | ||
Short-term investments: | ||
Short-term investments | 173,576 | 95,848 |
U.S. treasury securities | Fair Value, Measurements, Recurring | ||
Short-term investments: | ||
Short-term investments | 173,576 | 95,848 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level I | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level II | ||
Short-term investments: | ||
Short-term investments | 173,576 | 95,848 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level III | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
U.S. government agency securities | ||
Short-term investments: | ||
Short-term investments | 262,095 | 333,335 |
U.S. government agency securities | Fair Value, Measurements, Recurring | ||
Short-term investments: | ||
Short-term investments | 262,095 | 333,335 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level I | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level II | ||
Short-term investments: | ||
Short-term investments | 262,095 | 333,335 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level III | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
Corporate debt securities | ||
Short-term investments: | ||
Short-term investments | 402,355 | 288,946 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Short-term investments: | ||
Short-term investments | 402,355 | 288,946 |
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 | 402,355 | 288,946 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level III | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
Money market funds | ||
Cash equivalents: | ||
Fair Value | 768,003 | 247,613 |
Money market funds | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 768,003 | 247,613 |
Money market funds | Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 768,003 | 247,613 |
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 | 157,220 | 202,708 |
U.S. treasury securities | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 157,220 | 202,708 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level II | ||
Cash equivalents: | ||
Fair Value | 157,220 | 202,708 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level III | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
U.S. government agency securities | ||
Cash equivalents: | ||
Fair Value | 166,636 | 135,489 |
U.S. government agency securities | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 166,636 | 135,489 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level II | ||
Cash equivalents: | ||
Fair Value | 166,636 | 135,489 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level III | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Corporate debt securities | ||
Cash equivalents: | ||
Fair Value | 38,800 | 106,272 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 38,800 | 106,272 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level II | ||
Cash equivalents: | ||
Fair Value | 38,800 | 106,272 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level III | ||
Cash equivalents: | ||
Fair Value | $ 0 | $ 0 |
Property and Equipment and Pu_3
Property and Equipment and Purchased Intangible Assets - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 418,779 | $ 279,750 |
Less: Accumulated depreciation and amortization | (176,424) | (119,117) |
Total property and equipment, net | 242,355 | 160,633 |
Hosting equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 280,851 | 191,037 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Total property and equipment, gross | $ 120,877 | 72,267 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 7,107 | 6,774 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Total property and equipment, gross | $ 1,311 | 1,311 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Total property and equipment, gross | $ 1,025 | 1,022 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 7,608 | $ 7,339 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Minimum | Hosting equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Minimum | Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Maximum | Hosting equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 4 years | |
Maximum | Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years |
Property and Equipment and Pu_4
Property and Equipment and Purchased Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Historical cost | $ 57,016 | $ 51,916 | |
Accumulated amortization | 31,157 | 20,097 | |
Depreciation and amortization expense | 55,756 | 40,456 | $ 29,663 |
Capitalization of development costs of software for internal-use | $ 444,834 | 409,562 | 258,535 |
IP Addresses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 10 years | ||
Historical cost | $ 8,600 | 6,400 | |
Accumulated amortization | 1,600 | 800 | |
Capitalized internal-use software | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Capitalization of development costs of software for internal-use | $ 8,400 | $ 4,500 | $ 1,600 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Feb. 20, 2023 | Jun. 17, 2022 | Jun. 01, 2021 | Apr. 15, 2021 | Nov. 30, 2021 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 89,192 | $ 78,547 | ||||||
Developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Developed technology, estimated useful life | 3 years 7 months 6 days | |||||||
Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Developed technology, estimated useful life | 3 years 6 months | |||||||
Canonic Security Technologies Ltd. | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses, cash | $ 16,500 | |||||||
Goodwill | 10,645 | |||||||
Deferred tax asset | 781 | |||||||
Canonic Security Technologies Ltd. | Developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Developed technology | $ 5,100 | $ 5,100 | ||||||
Developed technology, estimated useful life | 5 years | 5 years | ||||||
ShiftRight, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses, cash | $ 25,600 | |||||||
Goodwill | 18,724 | |||||||
Acquisition related costs | $ 700 | |||||||
Acquisition, deferred tax liability | 682 | |||||||
ShiftRight, Inc. | Developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Developed technology | $ 7,100 | |||||||
Developed technology, estimated useful life | 5 years | |||||||
Smokescreen | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses, cash | $ 11,700 | |||||||
Goodwill | 5,686 | |||||||
Acquisition related costs | $ 500 | |||||||
Acquisition, deferred tax liability | 1,558 | |||||||
Smokescreen | Developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Developed technology | $ 5,600 | |||||||
Developed technology, estimated useful life | 5 years | |||||||
Smokescreen | Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Developed technology | $ 2,100 | |||||||
Developed technology, estimated useful life | 5 years | |||||||
Trustdome | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses, cash | $ 31,100 | |||||||
Goodwill | 23,232 | |||||||
Acquisition related costs | $ 400 | |||||||
Acquisition, deferred tax liability | 624 | |||||||
Trustdome | Developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Developed technology | $ 7,200 | |||||||
Developed technology, estimated useful life | 5 years | |||||||
Business Acquisition 2022 | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses, cash | $ 400 | |||||||
Goodwill | 800 | |||||||
Acquisition, deferred tax liability | 400 | |||||||
Purchase price | 2,100 | |||||||
Fair value of shares issued | 1,700 | |||||||
Business Acquisition 2022 | Developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Developed technology | $ 1,600 | |||||||
Developed technology, estimated useful life | 5 years |
Business Combinations - Net Ass
Business Combinations - Net Assets Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Feb. 20, 2023 | Jun. 17, 2022 | Jun. 01, 2021 | Apr. 15, 2021 | Jul. 31, 2023 | Jul. 31, 2022 | |
Assets acquired: | ||||||
Goodwill | $ 89,192 | $ 78,547 | ||||
Developed technology | ||||||
Liabilities assumed: | ||||||
Estimated Useful Life | 3 years 7 months 6 days | |||||
Customer relationships | ||||||
Liabilities assumed: | ||||||
Estimated Useful Life | 3 years 6 months | |||||
Canonic Security Technologies Ltd. | ||||||
Assets acquired: | ||||||
Cash, cash equivalents and other assets | $ 673 | |||||
Deferred tax asset | 781 | |||||
Goodwill | 10,645 | |||||
Total | 17,199 | |||||
Liabilities assumed: | ||||||
Accounts payable, accrued expenses and other liabilities | 692 | |||||
Total | 692 | |||||
Total purchase price consideration | 16,507 | |||||
Canonic Security Technologies Ltd. | Developed technology | ||||||
Assets acquired: | ||||||
Developed technology | $ 5,100 | $ 5,100 | ||||
Liabilities assumed: | ||||||
Estimated Useful Life | 5 years | 5 years | ||||
ShiftRight, Inc. | ||||||
Assets acquired: | ||||||
Cash, cash equivalents and other assets | $ 535 | |||||
Goodwill | 18,724 | |||||
Total | 26,359 | |||||
Liabilities assumed: | ||||||
Deferred tax liability | 682 | |||||
Other liabilities | 99 | |||||
Total | 781 | |||||
Total purchase price consideration | 25,578 | |||||
ShiftRight, Inc. | Developed technology | ||||||
Assets acquired: | ||||||
Developed technology | $ 7,100 | |||||
Liabilities assumed: | ||||||
Estimated Useful Life | 5 years | |||||
Smokescreen | ||||||
Assets acquired: | ||||||
Cash, cash equivalents and other assets | $ 1,347 | |||||
Goodwill | 5,686 | |||||
Total | 14,733 | |||||
Liabilities assumed: | ||||||
Deferred tax liability | 1,558 | |||||
Other liabilities | 1,516 | |||||
Total | 3,074 | |||||
Total purchase price consideration | 11,659 | |||||
Smokescreen | Developed technology | ||||||
Assets acquired: | ||||||
Developed technology | $ 5,600 | |||||
Liabilities assumed: | ||||||
Estimated Useful Life | 5 years | |||||
Smokescreen | Customer relationships | ||||||
Assets acquired: | ||||||
Developed technology | $ 2,100 | |||||
Liabilities assumed: | ||||||
Estimated Useful Life | 5 years | |||||
Trustdome | ||||||
Assets acquired: | ||||||
Cash, cash equivalents and other assets | $ 1,611 | |||||
Goodwill | 23,232 | |||||
Total | 32,043 | |||||
Liabilities assumed: | ||||||
Deferred tax liability | 624 | |||||
Other liabilities | 277 | |||||
Total | 901 | |||||
Total purchase price consideration | 31,142 | |||||
Trustdome | Developed technology | ||||||
Assets acquired: | ||||||
Developed technology | $ 7,200 | |||||
Liabilities assumed: | ||||||
Estimated Useful Life | 5 years |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 78,547 |
Goodwill acquired | 10,645 |
Goodwill, ending balance | $ 89,192 |
Goodwill and Acquired intangi_4
Goodwill and Acquired intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 20, 2023 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of acquired intangible assets | $ 11,060 | $ 9,010 | $ 6,795 | |
Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Developed technology, estimated useful life | 3 years 7 months 6 days | |||
Amortization expense of acquired intangible assets | 10,287 | |||
Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Developed technology, estimated useful life | 3 years 6 months | |||
Amortization expense of acquired intangible assets | 773 | |||
Canonic Security Technologies Ltd. | Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Developed technology | $ 5,100 | $ 5,100 | ||
Developed technology, estimated useful life | 5 years | 5 years |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross, beginning balance | $ 51,916 | ||
Additions | 5,100 | ||
Intangible Assets, Gross, ending balance | 57,016 | $ 51,916 | |
Accumulated Amortization, beginning balance | (20,097) | ||
Amortization Expense | (11,060) | (9,010) | $ (6,795) |
Accumulated Amortization, ending balance | (31,157) | (20,097) | |
Total | $ 25,859 | 31,819 | |
Weighted Average | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Weighted Average Remaining Useful life | 3 years | ||
Developed technology | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross, beginning balance | $ 48,356 | ||
Additions | 5,100 | ||
Intangible Assets, Gross, ending balance | 53,456 | 48,356 | |
Accumulated Amortization, beginning balance | (18,972) | ||
Amortization Expense | (10,287) | ||
Accumulated Amortization, ending balance | (29,259) | (18,972) | |
Total | $ 24,197 | 29,384 | |
Developed technology | Weighted Average | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Weighted Average Remaining Useful life | 3 years | ||
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross, beginning balance | $ 3,560 | ||
Additions | 0 | ||
Intangible Assets, Gross, ending balance | 3,560 | 3,560 | |
Accumulated Amortization, beginning balance | (1,125) | ||
Amortization Expense | (773) | ||
Accumulated Amortization, ending balance | (1,898) | (1,125) | |
Total | $ 1,662 | $ 2,435 | |
Customer relationships | Weighted Average | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Weighted Average Remaining Useful life | 2 years 3 months 18 days |
Goodwill and Acquired Intangi_6
Goodwill and Acquired Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 11,320 | |
2025 | 6,265 | |
2026 | 5,252 | |
2027 | 2,428 | |
Thereafter | 594 | |
Total | $ 25,859 | $ 31,819 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Derivative [Line Items] | |||
Unrealized losses related to our cash flow hedges | $ 10,200 | ||
Gain (loss) recognized on cash flow hedges | 11,103 | $ (20,130) | $ (228) |
Hedge accounting fair value adjustments | 8,306 | 0 | |
Long-term Debt | |||
Derivative [Line Items] | |||
Hedged liability, fair value hedge | 496,400 | ||
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | 182,900 | 126,400 | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | 457,600 | $ 293,400 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | $ 500,000 | ||
Minimum | Foreign Currency Contracts | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Term of derivative | 1 month | ||
Maximum | |||
Derivative [Line Items] | |||
Term of derivative | 21 months | ||
Maximum | Foreign Currency Contracts | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Term of derivative | 4 months |
Derivative Instruments - Cash F
Derivative Instruments - Cash Flow Hedges on our Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | $ 11,579 | $ 7,013 | $ (399) |
Cost of revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | 1,835 | 617 | |
Sales and marketing | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | 7,670 | 520 | |
Research and development | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | 1,506 | 284 | |
General and administrative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | $ 568 | $ 5,592 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments Designated as Fair Value Hedges (Details) - Interest rate swaps: $ in Thousands | 12 Months Ended |
Jul. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedged items | $ 8,306 |
Derivatives designated as hedging instruments | (8,028) |
Total | $ 278 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Mar. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Worldwide workforce reduction percentage | 3% | |||
Charges, excluding stock-based compensation expense | $ 6,565 | |||
Stock-based compensation expense | 444,834 | $ 409,562 | $ 258,535 | |
Accrued restructuring liability | 1,045 | $ 0 | ||
Restructuring Plan 2023 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges, excluding stock-based compensation expense | 7,600 | |||
Employee severance and benefit charges | 6,600 | |||
Stock-based compensation expense | $ 1,000 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Restructuring Activities (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 0 |
Charges, excluding stock-based compensation expense | 6,565 |
Payments | (5,520) |
Ending balance | $ 1,045 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) | 3 Months Ended | |||||||
Jul. 05, 2023 USD ($) trading_day | Jun. 25, 2020 USD ($) $ / shares | Jan. 31, 2021 trading_day | Jul. 31, 2023 USD ($) | Aug. 01, 2022 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Jul. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Proceeds from debt issuance | $ 1,130,500,000 | |||||||
Threshold trading days | trading_day | 20 | 20 | ||||||
Threshold consecutive trading days | trading_day | 30 | 30 | ||||||
Threshold percentage of share price that triggers conversion | 130% | 130% | ||||||
Number of trading days | trading_day | 5 | |||||||
Number of consecutive trading days | trading_day | 5 | |||||||
Percentage of closing price (less than) | 98% | |||||||
Redemption price, percentage of principal | 100% | 100% | ||||||
Minimum principal amount outstanding not subject to partial redemption | $ 100,000,000 | |||||||
Effective interest rate | 5.75% | |||||||
Carrying amount of equity component | $ 278,500,000 | |||||||
Unamortized debt issuance costs | 19,500,000 | $ 7,528,000 | $ 9,152,000 | |||||
Equity issuance costs | 4,700,000 | |||||||
Net carrying amount of equity component | 273,400,000 | |||||||
Deferred tax impact | $ 400,000 | |||||||
Principal amount | 1,149,993,000 | 1,149,995,000 | ||||||
Cumulative effect adjustment | (725,112,000) | (573,300,000) | $ (528,895,000) | $ (484,829,000) | ||||
Fair value of notes | 1,411,400,000 | 1,418,500,000 | ||||||
Initial strike price (in dollars per share) | $ / shares | $ 150.80 | |||||||
Initial cap price (in dollars per share) | $ / shares | $ 246.76 | |||||||
Net cost of capped call | $ 145,200,000 | |||||||
Additional Paid-In Capital | ||||||||
Debt Instrument [Line Items] | ||||||||
Cumulative effect adjustment | (1,816,915,000) | (1,590,885,000) | (1,131,006,000) | (823,804,000) | ||||
Accumulated Deficit | ||||||||
Debt Instrument [Line Items] | ||||||||
Cumulative effect adjustment | $ 1,090,374,000 | 991,878,000 | $ 601,600,000 | $ 339,571,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 169,900,000 | |||||||
Cumulative effect adjustment | 169,899,000 | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital | ||||||||
Debt Instrument [Line Items] | ||||||||
Cumulative effect adjustment | 273,700,000 | 273,738,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||||||
Debt Instrument [Line Items] | ||||||||
Cumulative effect adjustment | $ (103,800,000) | $ (103,839,000) | ||||||
Long-term Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Unamortized debt issuance costs | 14,800,000 | |||||||
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 - Sche
Convertible Senior Notes - Schedule of Notes (Details) shares in Thousands | 12 Months Ended | ||
Aug. 01, 2022 shares | Jun. 25, 2020 shares $ / shares | Jul. 31, 2023 shares $ / shares | |
Debt Disclosure [Abstract] | |||
Conversion ratio per $1,000 principal | 0.0066 | ||
Initial conversion price (in dollars per share) | $ / shares | $ 150.80 | $ 150.80 | |
Initial number of shares (in shares) | shares | 7,630 | 7,626 | 7,600 |
Convertible Senior Notes - Carr
Convertible Senior Notes - Carrying Amounts (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 | Jun. 25, 2020 |
Convertible Debt [Abstract] | |||
Principal amount | $ 1,149,993 | $ 1,149,995 | |
Unamortized debt discount | 0 | 172,169 | |
Unamortized debt issuance costs | 7,528 | 9,152 | $ 19,500 |
Hedge accounting fair value adjustments | 8,306 | 0 | |
Total | $ 1,134,159 | $ 968,674 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Contractual interest expense | $ 1,439 | $ 1,438 | $ 1,441 |
Amortization of debt discount | 0 | 52,358 | 49,302 |
Amortization of debt issuance costs | 3,894 | 2,783 | 2,621 |
Total | $ 5,333 | $ 56,579 | $ 53,364 |
Operating Leases - Lease Costs
Operating Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease, including imputed interest | $ 32,535 | $ 25,703 | $ 20,946 |
Short-term lease cost | 10,002 | 4,715 | 2,221 |
Variable lease cost | 11,948 | 7,643 | 6,436 |
Sublease income | 0 | 0 | (199) |
Total operating lease costs | 54,485 | 38,061 | 29,404 |
Real Estate Arrangements | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, including imputed interest | 7,858 | 6,347 | 6,442 |
Short-term lease cost | 4,314 | 2,826 | 1,527 |
Variable lease cost | 6,992 | 3,163 | 3,192 |
Sublease income | 0 | 0 | (199) |
Total operating lease costs | $ 19,164 | $ 12,336 | $ 10,962 |
Weighted-average remaining lease term (in years) | 3 years | 3 years 8 months 12 days | 4 years 8 months 12 days |
Weighted-average discount rate | 4.50% | 4.10% | 4.40% |
Co-Location Arrangements | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, including imputed interest | $ 24,677 | $ 19,356 | $ 14,504 |
Short-term lease cost | 5,688 | 1,889 | 694 |
Variable lease cost | 4,956 | 4,480 | 3,244 |
Sublease income | 0 | 0 | 0 |
Total operating lease costs | $ 35,321 | $ 25,725 | $ 18,442 |
Weighted-average remaining lease term (in years) | 2 years | 2 years 8 months 12 days | 1 year 10 months 24 days |
Weighted-average discount rate | 3.20% | 2.20% | 2.30% |
Operating Leases - Assets and L
Operating Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 70,671 | $ 72,357 |
Operating lease liabilities, current | 34,469 | 26,100 |
Operating lease liabilities, noncurrent | 41,917 | 50,948 |
Real Estate Arrangements | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | 18,493 | 18,530 |
Operating lease liabilities, current | 6,777 | 6,073 |
Operating lease liabilities, noncurrent | 14,875 | 16,571 |
Co-Location Arrangements | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | 52,178 | 53,827 |
Operating lease liabilities, current | 27,692 | 20,027 |
Operating lease liabilities, noncurrent | $ 27,042 | $ 34,377 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease, payments | $ 32,197 | $ 27,663 | $ 22,051 |
Operating lease, not yet commenced, amount | $ 16,700 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, not yet commenced, term | 1 year 10 months 24 days | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, not yet commenced, term | 3 years |
Operating Leases - Future Matur
Operating Leases - Future Maturities (Details) $ in Thousands | Jul. 31, 2023 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2024 | $ 36,556 |
2025 | 31,445 |
2026 | 10,573 |
2027 | 1,120 |
Total future minimum lease payments | 79,694 |
Less: Imputed interest | 3,308 |
Total | 76,386 |
Real Estate Arrangements | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2024 | 7,604 |
2025 | 7,530 |
2026 | 6,928 |
2027 | 1,120 |
Total future minimum lease payments | 23,182 |
Less: Imputed interest | 1,530 |
Total | 21,652 |
Co-Location Arrangements | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2024 | 28,952 |
2025 | 23,915 |
2026 | 3,645 |
2027 | 0 |
Total future minimum lease payments | 56,512 |
Less: Imputed interest | 1,778 |
Total | $ 54,734 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Loss Contingencies [Line Items] | ||
Purchase obligation | $ 94,574 | $ 126,800 |
Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Aggregate value of unsecured letters of credits | $ 2,100 | $ 2,100 |
Commitments and Contingencies_2
Commitments and Contingencies - Maturities (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 21,956 | |
2025 | 32,198 | |
2026 | 24,675 | |
2027 | 15,745 | |
Total | $ 94,574 | $ 126,800 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) | Jul. 31, 2023 vote |
Equity [Abstract] | |
Number of votes per share | 1 |
Common Stock - Schedule of Comm
Common Stock - Schedule of Common Stock (Details) - shares shares in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards outstanding (in shares) | 1,267 | 1,673 |
Equity awards available for future grants (in shares) | 52,327 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards outstanding (in shares) | 1,267 | |
Unvested restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards outstanding (in shares) | 8,339 | |
Committed unvested performance stock awards, based on the target number of shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards outstanding (in shares) | 377 | |
Unvested performance stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards outstanding (in shares) | 1,012 | |
Equity incentive plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards available for future grants (in shares) | 27,921 | |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards outstanding (in shares) | 1,119 | |
Equity awards available for future grants (in shares) | 4,666 | |
Stock reserved for settlement of the Notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards available for future grants (in shares) | 7,626 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Jul. 31, 2023 USD ($) period $ / shares shares | Jul. 31, 2022 USD ($) $ / shares shares | Jul. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | shares | 27.9 | |||
Options exercised, aggregate intrinsic value | $ 56,459 | $ 230,100 | $ 421,800 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 152.99 | |||
Unrecognized compensation cost, weighted-average | 2 years 10 months 24 days | |||
Fair value of contingent consideration | $ 3,800 | 17,000 | ||
Reversal of stock-based compensation | 444,834 | 409,562 | 258,535 | |
Unrecognized compensation cost | 1,184,800 | |||
Capitalized stock-based compensation | 17,200 | 11,500 | 6,300 | |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Incremental stock-based compensation | 6,000 | |||
Reversal of stock-based compensation | 117,915 | 118,299 | 67,803 | |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Incremental stock-based compensation | 1,300 | |||
Reversal of stock-based compensation | 215,597 | $ 191,091 | $ 133,115 | |
President | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reversal of stock-based compensation | $ (9,900) | |||
Unvested RSUs and shares of common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Unvested RSUs and shares of common stock | One year anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Vesting rights, percentage | 25% | |||
2018 Plan | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance (in shares) | shares | 45.8 | |||
2018 Employee Stock Purchase Plan | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance (in shares) | shares | 8.8 | |||
Shares available for grant (in shares) | shares | 4.7 | |||
Duration of offering period | 24 months | |||
Number of purchases periods | period | 4 | |||
Duration of purchase periods | 6 months | |||
Shares issued (in shares) | shares | 0.4 | 0.3 | 0.3 | |
Weighted-average purchase price per share (in dollars per share) | $ / shares | $ 99.59 | $ 108.61 | $ 75.92 | |
Cash proceeds from the issuance of common stock | $ 42,300 | $ 34,600 | $ 25,700 | |
Accrued compensation | $ 7,400 | $ 4,700 | ||
Incremental stock-based compensation | $ 8,300 | |||
2018 Employee Stock Purchase Plan | Employee Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, weighted-average | 6 months | |||
2018 Employee Stock Purchase Plan | Employee Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, weighted-average | 18 months |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Outstanding Stock Options | |||
Beginning balance (in shares) | 1,673,000 | ||
Granted (in shares) | 50,000 | 0 | 0 |
Exercised (in shares) | (451,000) | ||
Canceled, forfeited or expired (in shares) | (5,000) | ||
Ending balance (in shares) | 1,267,000 | 1,673,000 | |
Exercisable and expected to vest (in shares) | 1,210,000 | 1,501,000 | |
Weighted-Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 11.81 | ||
Granted (in dollars per share) | 152.99 | ||
Exercised (in dollars per share) | 8.65 | ||
Canceled, forfeited or expired (in dollars per share) | 7.80 | ||
Ending balance (in dollars per share) | 18.54 | $ 11.81 | |
Exercisable and expected to vest (in dollars per share) | $ 12.82 | $ 10.78 | |
Additional Disclosures | |||
Options outstanding, weighted average remaining contractual term | 2 years 1 month 6 days | 2 years 6 months | |
Exercisable and expected to vest, weighted average remaining contractual term | 1 year 9 months 18 days | 2 years 4 months 24 days | |
Options outstanding, aggregate intrinsic value | $ 179,678 | $ 240,286 | |
Exercised, aggregate intrinsic value | 56,459 | 230,100 | $ 421,800 |
Exercisable and expected to vest, aggregate intrinsic value | $ 178,616 | $ 216,539 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) - shares | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 50,000 | 0 | 0 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | ||
Expected stock price volatility | 58.20% | ||
Risk-free interest rate | 3.90% | ||
Dividend yield | 0% | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility, minimum | 58.10% | 44.10% | 46.20% |
Expected stock price volatility, maximum | 75.90% | 79.40% | 67.40% |
Risk-free interest rate, minimum | 4.20% | 0.10% | 0.10% |
Risk-free interest rate, maximum | 5.30% | 3.20% | 0.20% |
Dividend yield | 0% | 0% | 0% |
Employee Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Employee Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 2 years | 2 years | 2 years |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of RSU and PSA Activity (Details) - RSUs and PSAs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Underlying Shares | ||
Beginning balance (in shares) | 7,388 | |
Granted (in shares) | 6,531 | |
Vested (in shares) | (3,179) | |
Canceled or forfeited (in shares) | (1,389) | |
Ending balance (in shares) | 9,351 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 157.17 | |
Granted (in dollars per share) | 124.57 | |
Vested (in dollars per share) | 139.43 | |
Canceled or forfeited (in dollars per share) | 160.38 | |
Ending balance (in dollars per share) | $ 139.95 | |
Additional Disclosures [Abstract] | ||
Balance | $ 1,499,714 | $ 1,145,526 |
Vested | $ 462,289 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 444,834 | $ 409,562 | $ 258,535 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 39,168 | 23,847 | 14,036 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 215,597 | 191,091 | 133,115 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 117,915 | 118,299 | 67,803 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 71,118 | 76,325 | 43,581 |
Restructuring and other charges | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 1,036 | $ 0 | $ 0 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (228,715) | $ (413,148) | $ (275,189) |
International | 46,151 | 29,518 | 18,011 |
Loss before income taxes | $ (182,564) | $ (383,630) | $ (257,178) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Current: | |||
Federal | $ 1,091 | $ 0 | $ 0 |
State | 3,890 | 399 | 126 |
Foreign | 14,438 | 6,996 | 7,104 |
Total current tax expense | 19,419 | 7,395 | 7,230 |
Deferred: | |||
Federal | 0 | (858) | (349) |
State | 0 | (185) | (3) |
Foreign | 352 | 296 | (2,027) |
Total deferred tax benefit (expense) | 352 | (747) | (2,379) |
Total provision for income taxes | $ 19,771 | $ 6,648 | $ 4,851 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 21% | 21% | 21% |
State taxes | (2.10%) | (0.10%) | 0% |
Impact of foreign rate differential | 10.10% | (0.40%) | 0.40% |
Stock-based compensation | (0.80%) | 17.60% | 43.90% |
U.S. tax credits | 8.60% | 3.90% | 4.10% |
Change in valuation allowance | (34.10%) | (43.60%) | (70.60%) |
Withholding tax | (1.30%) | (0.20%) | (0.70%) |
Waived deductions under Section 59A | (11.80%) | 0% | 0% |
Other | (0.50%) | 0.10% | 0% |
Effective tax rate | (10.90%) | (1.70%) | (1.90%) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Tax benefits on total stock-based compensation expense | $ 13,400 | $ 1,400 | $ 1,200 |
Income tax expense (benefit) | (19,771) | (6,648) | (4,851) |
Research and development costs resulted in deferred tax asset | 92,901 | 0 | |
Reversal of prior deferred tax liability | 118,620 | 129,085 | |
Change during the period | 117,465 | 208,160 | 215,520 |
Unrecognized tax benefits | 40,689 | 29,699 | 18,501 |
Unrecognized tax benefits that impact effective tax rate | 1,700 | ||
Federal Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward | 1,619,000 | ||
Federal Jurisdiction | Research Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | 81,000 | ||
State Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward | 621,600 | ||
Operating loss carryforward, subject to expiration | 481,500 | ||
Operating loss carryforward, not subject to expiration | 140,100 | ||
State Jurisdiction | Research Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | 53,200 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward | 71,600 | ||
Cumulative Effect, Period of Adoption, Adjustment | |||
Operating Loss Carryforwards [Line Items] | |||
Reversal of prior deferred tax liability | 39,500 | ||
Business Combination Deferred Taxes | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax expense (benefit) | $ 0 | $ 1,000 | $ 0 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Deferred tax assets: | ||||
Net operating losses carryovers | $ 401,261 | $ 487,298 | ||
Deferred revenue | 122,326 | 69,511 | ||
R&D capitalization | 92,901 | 0 | ||
Tax credits carryovers | 98,564 | 68,272 | ||
Other | 75,598 | 58,141 | ||
Gross deferred tax assets | 790,650 | 683,222 | ||
Less: Valuation allowance | (671,381) | (553,916) | $ (345,756) | $ (130,236) |
Total deferred tax assets | 119,269 | 129,306 | ||
Deferred tax liabilities: | ||||
Other | (9,412) | (6,319) | ||
Deferred contract acquisition costs | (86,805) | (67,512) | ||
Convertible senior notes | 0 | (39,515) | ||
Operating lease right-of-use assets | (22,403) | (15,739) | ||
Total deferred tax liabilities | (118,620) | (129,085) | ||
Net deferred tax assets | $ 649 | $ 221 |
Income Taxes - Schedule of Valu
Income Taxes - Schedule of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance as of the beginning of the period | $ 553,916 | $ 345,756 | $ 130,236 |
Change during the period | 117,465 | 208,160 | 215,520 |
Balance as of the end of the period | $ 671,381 | $ 553,916 | $ 345,756 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 29,699 | $ 18,501 |
Gross increase for tax positions of prior fiscal years | 1,653 | 1,129 |
Gross increase for tax positions of current fiscal year | 9,337 | 10,069 |
Ending balance | $ 40,689 | $ 29,699 |
Net Loss Per Share - Net Loss P
Net Loss Per Share - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net loss, basic | $ (202,335) | $ (390,278) | $ (262,029) |
Net loss, diluted | $ (202,335) | $ (390,278) | $ (262,029) |
Weighted-average shares used in computing net loss per share, basic (in shares) | 144,942 | 140,895 | 135,654 |
Weighted-average shares used in computing net loss per share, diluted (in shares) | 144,942 | 140,895 | 135,654 |
Net loss per share, basic (in dollars per share) | $ (1.40) | $ (2.77) | $ (1.93) |
Net loss per share, diluted (in dollars per share) | $ (1.40) | $ (2.77) | $ (1.93) |
Net Loss Per Share- Narrative (
Net Loss Per Share- Narrative (Details) - $ / shares | Jul. 31, 2023 | Jun. 25, 2020 |
Earnings Per Share [Abstract] | ||
Conversion price (in dollars per share) | $ 150.80 | $ 150.80 |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation (Details) shares in Thousands | 12 Months Ended | ||||
Aug. 01, 2022 shares | Jun. 25, 2020 shares $ / shares | Jul. 31, 2023 shares $ / shares | Jul. 31, 2022 shares | Jul. 31, 2021 shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 19,466 | 17,750 | 18,569 | ||
Number of shares if notes converted (in shares) | 7,630 | 7,626 | 7,600 | ||
Conversion price (in dollars per share) | $ / shares | $ 150.80 | $ 150.80 | |||
Unvested RSUs and shares of common stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 8,442 | 6,769 | 7,440 | ||
Stock options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 1,267 | 1,673 | 2,597 | ||
Unvested PSAs | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 1,012 | 832 | 562 | ||
Number of unvested PSAs as a percentage of target | 100% | ||||
Share purchase rights under the ESPP | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 1,119 | 850 | 344 | ||
Notes | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities (in shares) | 7,626 | 7,626 | 7,626 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) | 12 Months Ended |
Jul. 31, 2023 segment | |
Risks and Uncertainties [Abstract] | |
Number of operating segments | 1 |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Long-lived Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2023 | Jul. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 313,026 | $ 232,990 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 213,611 | 155,625 |
Rest of the world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 99,415 | $ 77,365 |