Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2015 | Aug. 31, 2015 | Jan. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Guidewire Software, Inc. | ||
Entity Central Index Key | 1,528,396 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 71,020,173 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,900 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 212,362 | $ 148,101 |
Short-term investments | 359,273 | 296,231 |
Accounts receivable | 62,062 | 49,839 |
Deferred tax assets, current | 13,845 | 11,431 |
Prepaid expenses and other current assets | 14,102 | 10,828 |
Total current assets | 661,644 | 516,430 |
Long-term investments | 106,117 | 203,449 |
Property and equipment, net | 12,160 | 12,607 |
Intangible assets, net | 3,999 | 5,439 |
Deferred tax assets, noncurrent | 5,896 | 8,681 |
Goodwill | 9,205 | 9,205 |
Other assets | 926 | 1,416 |
TOTAL ASSETS | 799,947 | 757,227 |
CURRENT LIABILITIES: | ||
Accounts payable | 8,816 | 7,030 |
Accrued employee compensation | 37,235 | 34,912 |
Deferred revenues, current | 50,766 | 48,937 |
Other current liabilities | 7,592 | 4,507 |
Total current liabilities | 104,409 | 95,386 |
Deferred revenues, noncurrent | 1,800 | 6,395 |
Other liabilities | 4,350 | 4,760 |
Total liabilities | $ 110,559 | $ 106,541 |
Commitments and contingencies (Note 5) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value $0.0001 per share—500,000,000 shares authorized as of July 31, 2015 and 2014, respectively; 71,005,738 and 69,082,261 shares issued and outstanding as of July 31, 2015 and 2014, respectively | $ 7 | $ 7 |
Additional paid-in capital | 662,869 | 629,076 |
Accumulated other comprehensive loss | (6,343) | (1,367) |
Retained earnings | 32,855 | 22,970 |
Total stockholders’ equity | 689,388 | 650,686 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 799,947 | $ 757,227 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2015 | Jul. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued (in shares) | 71,005,738 | 69,082,261 |
Common stock, shares outstanding (in shares) | 71,005,738 | 69,082,261 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Revenues: | |||
License | $ 179,172 | $ 151,921 | $ 123,560 |
Maintenance | 50,024 | 41,888 | 37,561 |
Services | 151,341 | 156,437 | 139,528 |
Total revenues | 380,537 | 350,246 | 300,649 |
Cost of revenues: | |||
License | 4,605 | 4,442 | 920 |
Maintenance | 9,073 | 8,118 | 7,216 |
Services | 133,506 | 136,387 | 117,515 |
Total cost of revenues | 147,184 | 148,947 | 125,651 |
Gross profit: | |||
License | 174,567 | 147,479 | 122,640 |
Maintenance | 40,951 | 33,770 | 30,345 |
Services | 17,835 | 20,050 | 22,013 |
Total gross profit | 233,353 | 201,299 | 174,998 |
Operating expenses: | |||
Research and development | 93,440 | 76,178 | 62,991 |
Sales and marketing | 82,023 | 71,295 | 50,948 |
General and administrative | 41,397 | 35,404 | 31,320 |
Total operating expenses | 216,860 | 182,877 | 145,259 |
Income from operations | 16,493 | 18,422 | 29,739 |
Interest income | 2,245 | 1,350 | 498 |
Other income (expenses), net | (1,998) | 174 | (114) |
Income before provision for income taxes | 16,740 | 19,946 | 30,123 |
Provision for income taxes | 6,855 | 5,225 | 5,465 |
Net income | $ 9,885 | $ 14,721 | $ 24,658 |
Earnings per share: | |||
Basic (in USD per share) | $ 0.14 | $ 0.22 | $ 0.44 |
Diluted (in USD per share) | $ 0.14 | $ 0.21 | $ 0.40 |
Shares used in computing earnings per share: | |||
Basic (in shares) | 70,075,908 | 65,748,896 | 56,331,018 |
Diluted (in shares) | 72,314,433 | 69,112,733 | 61,569,195 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 9,885 | $ 14,721 | $ 24,658 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (4,937) | 288 | (1,102) |
Unrealized (loss) gain on available-for-sale securities, net of tax benefit (expense) of $38, (7), and $0 | (83) | (42) | 24 |
Reclassification adjustment for realized loss (gain) included in net income | 44 | (39) | 0 |
Other comprehensive income (loss) | (4,976) | 207 | (1,078) |
Comprehensive income | $ 4,909 | $ 14,928 | $ 23,580 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income Statement (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized (loss) gain on available-for-sale securities, tax | $ 38 | $ (7) | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Retained Earnings (Accumulated deficit) [Member] | Common stock [Member]Common stock [Member] |
Balance (in shares) at Jul. 31, 2012 | 53,956,608 | ||||
Balance, Value at Jul. 31, 2012 | $ 181,000 | $ 197,900 | $ (496) | $ (16,409) | $ 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 2,905,296 | 2,904,248 | |||
Issuance of common stock upon exercise of stock options, Value | $ 9,124 | 9,123 | $ 1 | ||
Issuance of common stock upon RSU release (in shares) | 1,621,047 | ||||
Issuance of common stock upon RSU release | 0 | 0 | |||
Shares withheld for taxes related to net share settlement (in shares) | (572,626) | ||||
Shares withheld for taxes related to net share settlement | (19,963) | (19,963) | |||
Stock-based compensation | 25,505 | 25,505 | |||
Tax benefit from the exercise of stock options and vesting of RSUs | 2,586 | 2,586 | |||
Net income | 24,658 | 24,658 | |||
Foreign currency translation adjustment | (1,102) | (1,102) | |||
Unrealized gains on available-for-sale securities | 24 | 24 | |||
Reclassification adjustment for realized loss (gain) included in net income | 0 | ||||
Balance (in shares) at Jul. 31, 2013 | 57,909,277 | ||||
Balance, Value at Jul. 31, 2013 | 221,832 | 215,151 | (1,574) | 8,249 | $ 6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission (in shares) | 8,306,291 | ||||
Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission, Value | 389,949 | 389,948 | $ 1 | ||
Costs incurred in connection with public offerings | $ (408) | (408) | |||
Issuance of common stock upon exercise of stock options (in shares) | 1,580,344 | 1,579,469 | |||
Issuance of common stock upon exercise of stock options, Value | $ 8,755 | 8,755 | |||
Issuance of common stock upon RSU release (in shares) | 2,007,423 | ||||
Issuance of common stock upon RSU release | 0 | 0 | |||
Shares withheld for taxes related to net share settlement (in shares) | (720,199) | ||||
Shares withheld for taxes related to net share settlement | (32,799) | (32,799) | |||
Stock-based compensation | 42,538 | 42,538 | |||
Tax benefit from the exercise of stock options and vesting of RSUs | 5,891 | 5,891 | |||
Net income | 14,721 | 14,721 | |||
Foreign currency translation adjustment | 288 | 288 | |||
Unrealized gains on available-for-sale securities | (42) | (42) | |||
Reclassification adjustment for realized loss (gain) included in net income | (39) | (39) | |||
Balance (in shares) at Jul. 31, 2014 | 69,082,261 | ||||
Balance, Value at Jul. 31, 2014 | $ 650,686 | 629,076 | (1,367) | 22,970 | $ 7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 665,665 | 665,665 | |||
Issuance of common stock upon exercise of stock options, Value | $ 6,294 | 6,294 | |||
Issuance of common stock upon RSU release (in shares) | 1,819,825 | ||||
Issuance of common stock upon RSU release | 0 | 0 | |||
Shares withheld for taxes related to net share settlement (in shares) | (562,013) | ||||
Shares withheld for taxes related to net share settlement | (27,183) | (27,183) | |||
Stock-based compensation | 51,375 | 51,375 | |||
Tax benefit from the exercise of stock options and vesting of RSUs | 3,307 | 3,307 | |||
Net income | 9,885 | 9,885 | |||
Foreign currency translation adjustment | (4,937) | (4,937) | |||
Unrealized gains on available-for-sale securities | (83) | (83) | |||
Reclassification adjustment for realized loss (gain) included in net income | 44 | 44 | |||
Balance (in shares) at Jul. 31, 2015 | 71,005,738 | ||||
Balance, Value at Jul. 31, 2015 | $ 689,388 | $ 662,869 | $ (6,343) | $ 32,855 | $ 7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 9,885 | $ 14,721 | $ 24,658 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,480 | 6,751 | 4,821 |
Stock-based compensation | 51,375 | 42,538 | 25,505 |
Excess tax benefit from exercise of stock options and vesting of RSUs | (3,538) | (7,067) | (2,586) |
Deferred taxes | 295 | (2,718) | (265) |
Amortization of premium on available-for-sale securities | 4,839 | 3,490 | 520 |
Loss on disposals of property and equipment | 1 | 99 | 34 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (12,999) | (9,276) | (8,478) |
Prepaid expenses and other assets | (3,178) | (1,372) | (2,690) |
Accounts payable | 2,266 | 393 | 355 |
Accrued employee compensation | 3,261 | 8,463 | 147 |
Other liabilities | 6,253 | 5,288 | 4,574 |
Deferred revenues | (2,263) | 14,181 | (14,048) |
Net cash provided by operating activities | 63,677 | 75,491 | 32,547 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of available-for-sale securities | (491,626) | (687,419) | (212,035) |
Sales and maturities of available-for-sale securities | 520,997 | 312,149 | 83,567 |
Acquisition, net of cash acquired | 0 | (157) | (14,749) |
Purchase of property and equipment | (6,301) | (4,993) | (9,228) |
Decrease in restricted cash | 0 | 0 | 3,532 |
Net cash provided by (used in) investing activities | 23,070 | (380,420) | (148,913) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock upon exercise of stock options | 6,294 | 8,755 | 9,123 |
Taxes remitted on RSU awards vested | (27,183) | (32,799) | (20,330) |
Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission | 0 | 389,949 | 0 |
Costs paid in connection with stock offerings | 0 | (408) | 0 |
Excess tax benefit from exercise of stock options and vesting of RSUs | 3,538 | 7,067 | 2,586 |
Net cash provided by (used in) financing activities | (17,351) | 372,564 | (8,621) |
Effect of foreign exchange rate changes on cash and cash equivalents | (5,135) | 699 | (964) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 64,261 | 68,334 | (125,951) |
CASH AND CASH EQUIVALENTS—BEGINNING OF YEAR | 148,101 | 79,767 | 205,718 |
CASH AND CASH EQUIVALENTS—END OF YEAR | 212,362 | 148,101 | 79,767 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid for interest | 0 | 4 | 0 |
Cash paid for income taxes, net of tax refunds | 1,899 | 2,141 | 2,266 |
SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES: | |||
Accruals for purchase of property and equipment | $ 496 | $ 768 | $ 693 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies and Estimates | 12 Months Ended |
Jul. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Summary of Significant Accounting Policies and Estimates | The Company and Summary of Significant Accounting Policies Company Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc. together with its subsidiaries (the “Company”) provides a technology platform which consists of three key elements: core transaction processing, data management and analytics, and digital engagement. It supports core insurance operations, including underwriting and policy administration, claim management and billing. The Company’s customers include insurance carriers for property and casualty insurance. Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of Guidewire Software, Inc. and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from these estimates. Foreign Currency The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period in which the transactions occur. The effects of foreign currency translations are recorded in accumulated other comprehensive income/loss as a separate component of stockholders’ equity in the accompanying consolidated statements of stockholders’ equity. Transaction gains and losses from foreign currency transactions that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are recorded as other income (expense) in the consolidated statements of income. Cash and Cash Equivalents Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents consist of commercial paper and money market funds. Investments Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. All investments are held as available-for-sale investments. The Company classifies investments as short-term when they have remaining contractual maturities of one year or less from the balance sheet date, and as long-term when the investments have remaining contractual maturities of more than one year from the balance sheet date. All investments are recorded at fair value with unrealized holding gains and losses included in accumulated other comprehensive (loss) income. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs that do not extend the life or improve an asset are expensed in the period incurred. The estimated useful lives of property and equipment are as follows: Computer hardware 3 years Software 3 years Furniture and fixtures 3 years Leasehold improvements Shorter of the lease term or estimated useful life Product Development Costs Certain software development costs incurred subsequent to the establishment of technological feasibility are subject to capitalization and amortized over the estimated lives of the related products. Technological feasibility is established upon completion of a working model. Through July 31, 2015 , costs incurred subsequent to the establishment of technological feasibility have not been material, and therefore, all software development costs have been charged to research and development expense in the accompanying consolidated statements of income as incurred. Impairment of Long-Lived Assets, Intangible Assets and Goodwill The Company evaluates its long-lived assets, consisting of property and equipment and intangible assets, for indicators of possible impairment when events or changes in circumstances indicate that the carrying amount of certain assets may not be recoverable. Impairment exists if the carrying amounts of such assets exceed the estimates of future net undiscounted cash flows expected to be generated by such assets. Should impairment exist, the impairment loss would be measured based on the excess carrying value of the assets over the estimated fair value of the assets. The Company has not written down any of its long-lived assets as a result of impairment during any of the periods presented. The Company tests goodwill for impairment annually during the fourth quarter of each fiscal year and in the interim whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company evaluates qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. In performing the qualitative assessment, the Company considers events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit’s net assets and changes in the price of the Company’s common stock. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed. In connection with the acquisition of Millbrook during the fourth quarter of fiscal 2013, the Company allocated $9.2 million to goodwill. The Company did not recognize any goodwill impairment losses associated with its single reporting unit in fiscal 2015 or 2014 . Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments and accounts receivable. The Company maintains its cash, cash equivalents and investments with high quality financial institutions. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts recorded on the balance sheet are in excess of amounts that are insured by the Federal Deposit Insurance Corporation (“FDIC”). No customer accounted for 10% or more of the Company’s revenues for the years ended July 31, 2015 , 2014 and 2013 . No customer accounted for 10% or more of the Company’s total accounts receivable as of July 31, 2015 . The Company had one customer that accounted for 10% of total accounts receivable as of July 31, 2014 . Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amounts, net of the Company’s estimated allowances for doubtful accounts. The allowance for doubtful accounts is estimated based on an assessment of the Company’s ability to collect on customer accounts receivable, and there is judgment involved in such assessment. The Company regularly reviews the allowance by considering certain factors such as historical experience, industry data, credit quality, age of accounts receivable balances, customers’ financial condition and current economic conditions that may affect a customer’s ability to pay. The Company has had no allowance for doubtful accounts in the periods presented in this Annual Report on Form 10-K. The Company’s accounts receivable are not collateralized by any security. Revenue Recognition The Company enters into arrangements to deliver multiple products or services (multiple-elements). The Company applies software revenue recognition rules and allocates the total revenues among elements based on vendor-specific objective evidence (“VSOE”) of fair value of each element. The Company recognizes revenue on a net basis excluding taxes collected from customers and remitted to government authorities. Revenues are derived from three sources: (i) License fees, related to term (or time-based) licenses, perpetual software licenses, and other; (ii) Maintenance fees, related to email and phone support, bug fixes and unspecified software updates and upgrades released when, and if available during the maintenance term; and (iii) Services fees, related to professional services related to implementation of our software, reimbursable travel and training. Revenues are recognized when all of the following criteria are met: • Persuasive evidence of an arrangement exists. Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period. • Delivery or performance has occurred . The Company’s software is delivered electronically to the customer. Delivery is considered to have occurred when the Company provides the customer access to the software along with login credentials. • Fees are fixed or determinable. The Company assesses whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. For perpetual licenses, the Company does not generally offer extended payment terms with typical terms of payment due between 30 and 60 days from delivery of software. Fees from term licenses are generally due in annual or, in certain cases, quarterly installments over the term of the agreement beginning on the effective date of the license. Accordingly, fees from term licenses are not considered to be fixed or determinable until they become due. • Collectability is probable. Collectability is assessed on a customer-by-customer basis, based primarily on creditworthiness as determined by credit checks and analysis, as well as customer payment history. Payment terms generally range from 30 to 90 days from invoice date. If it is determined prior to revenue recognition that collection of an arrangement fee is not probable, revenues are deferred until collection becomes probable or cash is collected, assuming all other revenue recognition criteria are satisfied. VSOE of fair value does not exist for the Company’s software licenses; therefore, the Company allocates revenues to software licenses using the residual method. Under the residual method, the amount recognized for license fees is the difference between the total fixed and determinable fees and the VSOE of fair value for the undelivered elements under the arrangement. The VSOE of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for those elements when sold separately. VSOE of fair value for maintenance is established using the stated maintenance renewal rate in the customer’s contract. For term licenses with duration of one year or less, no VSOE of fair value for maintenance exists. VSOE of fair value for services is established if a substantial majority of historical stand-alone selling prices for a service fall within a reasonably narrow price range. If the undelivered elements are all service elements and VSOE of fair value does not exist for one or more service element, the total arrangement fee is recognized ratably over the longest service period starting at software delivery, assuming all the related services have been made available to the customer. In certain offerings sold as fixed fee arrangements, the Company recognizes services revenues on a proportional performance basis as performance obligations are completed by using the ratio of labor hours to date as an input measure compared to total estimated labor hours for the consulting services. In cases where professional services are deemed to be essential to the functionality of the software, the arrangement is accounted for using contract accounting until the essential services are complete. If reliable estimates of total project costs can be made, the Company applies the percentage-of-completion method whereby percentage toward completion is measured by using the ratio of service billings to date compared to total estimated service billings for the consulting services. Service billings approximate labor hours as an input measure since they are generally billed monthly on a time and material basis. The fees related to the maintenance are recognized over the period the maintenance is provided. If reliable estimates of total project costs cannot be made or VSOE for maintenance has not been established and it is reasonably assured that no loss will be incurred under the arrangement, revenues are recognized pursuant to the zero gross margin method. Under this method, revenues recognized are limited to the costs incurred for the implementation services. When zero gross margin method is applied for lack of reliable project estimates and subsequently project estimates become reliable, the Company switches to the percentage-of-completion method, resulting in a cumulative effect adjustment for deferred license revenues to the extent of progress toward completion, and the related deferred professional service margin is recognized in full as revenues. There were no cumulative effect adjustments for the fiscal years ended July 31, 2015 and 2014 . For the fiscal year ended July 31, 2013 , the cumulative effect adjustment for license and service revenue was $3.2 million and $1.7 million , respectively. The Company generally invoices fees for licenses and maintenance to its customers in annual or, in certain cases, quarterly installments payable in advance. Deferred revenues represent amounts, which are billed to or collected from customers for which one or more of the revenue recognition criteria have not been met. The deferred revenues balance does not represent the total contract value of annual or multi-year, non-cancellable arrangements. Sales Commissions Sales commissions are recognized as an expense when earned by the sales representative, generally occurring at the time the customer order is signed. Substantially all of the effort by the sales force is expended through the time of closing the sale, with limited to no involvement thereafter. Warranties The Company generally provides a warranty for its software products and services to its customers for periods ranging from 3 to 12 months . The Company’s software products are generally warranted to be free of defects in materials and workmanship under normal use and the products are also generally warranted to substantially perform as described in published documentation. The Company’s services are generally warranted to be performed in a professional manner and to materially conform to the specifications set forth in the related customer contract. In the event there is a failure of such warranties, the Company generally will correct the problem or provide a reasonable workaround or replacement product. If the Company cannot correct the problem or provide a workaround or replacement product, then the customer’s remedy is generally limited to refund of the fees paid for the nonconforming product or services. Warranty expense has been insignificant. Advertising Costs Advertising costs are expensed as incurred and amounts incurred were not material during the years ended July 31, 2015 , 2014 and 2013 . Stock-Based Compensation The Company recognizes compensation expense related to stock options and restricted stock units (“RSUs”) granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The awards are subject to time-based vesting, which generally occurs over a period of four years. Option awards expire 10 years from the grant date. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, of the Company’s stock options using the Black-Scholes option-pricing model. The Company recognizes the fair value of stock-based compensation for awards which contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the compensation cost for awards which contain performance conditions based upon the probability of that performance condition being met, net of estimated forfeitures, using the graded method. Compensation cost for RSUs is generally recognized over the time-based vesting period. Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement carrying amounts of existing assets and liabilities by using enacted tax rates in effect for the year in which the difference is expected to reverse. Deferred tax assets and liabilities are classified as either current or noncurrent based on the related asset or liability. Deferred tax assets related to excess tax benefits are recorded when utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded when it is more likely than not that some portion or all of such deferred tax assets will not be realized and is based on the positive and negative evidence about the future including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The effective tax rate in a given financial statement period may also be materially impacted by changes in the mix and level of income or losses, changes in the expected outcome of audits, or changes in the deferred tax valuation allowance. The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its consolidated statement of income. Recent Accounting Pronouncement Cloud Computing Arrangements that Include a Software Element In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (ASU 2015-05). ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes software. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for service contracts. ASU 2015-05 is effective for the Company in the first quarter of fiscal 2017 with early adoption permitted using either of two methods: (i) prospective to all arrangements entered into or materially modified after the effective date and represent a change in accounting principle; or (ii) retrospectively. The Company is currently evaluating the impact of the adoption of ASU 2015-05 on its consolidated financial statements. Stock-Based Compensation In June 2014, the FASB issued Accounting Standard Update ("ASU") No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718). This ASU provides authoritative guidance for share-based payments with a performance condition that could be achieved after the requisite service period when an employee is eligible to retire or otherwise terminate employment before the end of the period in which the performance target could be achieved and still be eligible. The standard will be effective for the Company beginning August 1, 2016. The adoption of this accounting standard update will not impact the Company’s consolidated financial statements based on current compensation programs. Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. In July 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017. Early adoption is permitted to the original effective date of December 15, 2016. The standard will be effective for the Company beginning August 1, 2018 and permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method and continue to evaluate the impact that this guidance will have on our consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jul. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Available-for-sale investments within cash equivalents and investments consist of the following: July 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (in thousands) U.S. agency securities $ 82,946 $ 21 $ (4 ) $ 82,963 Commercial paper 142,822 13 (4 ) 142,831 Corporate bonds 281,942 47 (216 ) 281,773 U.S. government bonds 32,529 13 (2 ) 32,540 Foreign government bonds 8,663 7 (2 ) 8,668 Certificate of deposit 2,700 — — 2,700 Money market funds 88,319 — — 88,319 Total $ 639,921 $ 101 $ (228 ) $ 639,794 July 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (in thousands) U.S. agency securities $ 94,048 $ 30 $ (21 ) $ 94,057 Asset-backed securities 1,363 — (2 ) 1,361 Commercial paper 132,442 14 (4 ) 132,452 Corporate bonds 297,731 104 (182 ) 297,653 U.S. government bonds 17,991 3 (3 ) 17,991 Foreign government bonds 2,755 — (1 ) 2,754 Certificate of deposit 6,709 — (1 ) 6,708 Money market funds 53,959 — — 53,959 Municipal debt securities 12,985 13 (1 ) 12,997 Total $ 619,983 $ 164 $ (215 ) $ 619,932 The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: July 31, 2015 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) U.S. agency securities $ 18,749 $ (4 ) $ — $ — $ 18,749 $ (4 ) Commercial paper 31,975 (4 ) — — 31,975 (4 ) Corporate bonds 202,791 (216 ) — — 202,791 (216 ) U. S. government bonds 9,987 (2 ) — — 9,987 (2 ) Foreign government bonds 3,065 (2 ) — — 3,065 (2 ) Total $ 266,567 $ (228 ) $ — $ — $ 266,567 $ (228 ) As of July 31, 2015 , the Company had 102 investments in a gross unrealized loss position amounting to $0.2 million . The unrealized losses on its available-for-sale securities were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The Company does not intend to sell, nor believe it will need to sell, these securities before recovering the associated unrealized losses. The Company does not consider any portion of the unrealized losses at July 31, 2015 to be an other-than-temporary impairment, nor are any unrealized losses considered to be credit losses. The Company has recorded the securities at fair value in its consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive loss. The amount of realized gains and losses reclassified into earnings are based on the specific identification of the securities sold. The realized gains and losses from sales of securities in the periods presented were immaterial. The following table summarizes the contractual maturities of the Company’s available-for-sale securities as of July 31, 2015 : Less Than 12 Months 12 to 36 Months Total U.S. agency securities $ 68,212 $ 14,751 $ 82,963 Commercial paper 142,831 — 142,831 Corporate bonds 202,964 78,809 281,773 U.S. government bonds 19,983 12,557 32,540 Foreign government bonds 8,668 — 8,668 Certificate of deposit 2,700 — 2,700 Money market funds 88,319 — 88,319 Total $ 533,677 $ 106,117 $ 639,794 Fair value is defined as the exchange price that would be received for an asset or an exit price 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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows: Level 1-Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2-Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and Level 3-Unobservable inputs that are supported by little or no market activity, which require the Company to develop its own assumptions. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying value of the Company’s accounts receivable, accounts payable and accrued liabilities approximates their fair value due to the short-term nature of these instruments. The Company bases the fair value of its Level 1 financial instruments, which are in active markets, using quoted market prices for identical instruments. The Company obtains the fair value of its Level 2 financial instruments, which are not in active markets, from a third-party professional pricing service using quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. The Company’s professional pricing service gathers observable inputs for all of its fixed income securities from a variety of industry data providers (e.g. large custodial institutions) and other third-party sources. Once the observable inputs are gathered, all data points are considered and an average price is determined. The Company validates the quoted market prices provided by its primary pricing service by comparing their assessment of the fair values of our Level 2 investment portfolio balance against the fair values of its Level 2 investment portfolio balance provided by our investment managers. The Company’s investment managers use similar techniques to our professional pricing service to derive pricing as described above. The Company did not have any Level 3 financial assets or liabilities as of July 31, 2015 , or 2014 . The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy: July 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents: Commercial paper $ — $ 86,085 $ — $ 86,085 Money market funds 88,319 — — 88,319 Short-term investments: U.S. agency securities — 68,212 — 68,212 Commercial paper — 56,746 — 56,746 U. S. government bonds — 19,983 — 19,983 Foreign government bonds — 8,668 — 8,668 Corporate bonds — 202,964 — 202,964 Certificate of deposit — 2,700 — 2,700 Long-term investments: U.S. agency securities — 14,751 — 14,751 Corporate bonds — 78,809 — 78,809 U.S. government bonds — 12,557 — 12,557 Total assets $ 88,319 $ 551,475 $ — $ 639,794 July 31, 2014 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents: Commercial paper $ — $ 66,293 $ — $ 66,293 Money market funds 53,959 — — 53,959 Short-term investments: U.S. agency securities — 29,062 — 29,062 Asset-backed securities — 1,361 — 1,361 Commercial paper — 66,159 — 66,159 U. S. government bonds — 9,995 — 9,995 Corporate bonds — 172,648 — 172,648 Certificate of deposit — 4,009 — 4,009 Municipal debt securities — 12,997 — 12,997 Long-term investments: U.S. agency securities — 64,995 — 64,995 Certificate of deposit — 2,699 — 2,699 Corporate bonds — 125,005 — 125,005 U.S. government bonds — 7,996 — 7,996 Foreign government bonds — 2,754 — 2,754 Total assets $ 53,959 $ 565,973 $ — $ 619,932 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jul. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, net Property and equipment, net consists of the following: July 31, 2015 July 31, 2014 (in thousands) Computer hardware $ 15,099 $ 11,882 Software 4,867 4,605 Furniture and fixtures 3,065 2,732 Leasehold improvements 8,040 7,069 Total property and equipment 31,071 26,288 Less accumulated depreciation (18,911 ) (13,681 ) Property and equipment, net $ 12,160 $ 12,607 As of July 31, 2015 , and 2014 , no property and equipment was pledged as collateral against borrowings. Amortization of leasehold improvements is included in depreciation expense. Depreciation expense was $6.0 million , $5.3 million and $4.5 million during the years ended July 31, 2015 , 2014 and 2013 , respectively. Goodwill and Intangible Assets The following table presents changes in the carrying amount of goodwill acquired through the Millbrook acquisition on May 10, 2013: Total (in thousands) Goodwill, July 31, 2013 $ 9,048 Changes in carrying value 157 Goodwill, July 31, 2014 $ 9,205 Changes in carrying value — Goodwill, July 31, 2015 $ 9,205 Intangible assets consist of the following: July 31, 2015 July 31, 2014 (in thousands) Acquired technology: Cost $ 7,200 $ 7,200 Accumulated amortization (3,201 ) (1,761 ) Intangible assets, net $ 3,999 $ 5,439 Amortization expense was $1.4 million , $1.4 million and $0.3 million during the years ended July 31, 2015 , 2014 and 2013 , respectively. Estimated aggregate amortization expense for each of the next three fiscal years is as follows: Future Amortization Fiscal Year Ending July 31, (in thousands) 2016 $ 1,440 2017 1,440 2018 1,119 Total $ 3,999 Accrued Employee Compensation Accrued employee compensation consists of the following: July 31, 2015 July 31, 2014 (in thousands) Accrued bonuses $ 19,819 $ 19,213 Accrued commission 5,008 3,593 Accrued vacation 7,980 8,100 Accrued salaries, payroll taxes and benefits 4,428 4,006 Total $ 37,235 $ 34,912 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component were as follows: Foreign Currency Items Unrealized gain (loss) on available-for-sale securities Total (In thousands) Balance as of July 31,2013 $ (1,598 ) $ 24 $ (1,574 ) Other comprehensive income (loss) before reclassification adjustments: 288 (49 ) 239 Amounts reclassified from accumulated other comprehensive income (loss) to earnings — (39 ) (39 ) Tax effect — 7 7 Balance as of July 31, 2014 (1,310 ) (57 ) (1,367 ) Other comprehensive income (loss) before reclassification adjustments: (4,937 ) (121 ) (5,058 ) Amounts reclassified from accumulated other comprehensive income (loss) to earnings — 44 44 Tax effect — 38 38 Balance as of July 31, 2015 $ (6,247 ) $ (96 ) $ (6,343 ) |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The Company calculates basic earnings per share by dividing the net income by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock and restricted stock units are considered to be common stock equivalents. The following table sets forth the computation of the Company’s basic and diluted net income per share for the years ended July 31, 2015 , 2014 and 2013 : Fiscal years ended July 31, 2015 2014 2013 (in thousands, except share and per share amounts) Numerator: Net income $ 9,885 $ 14,721 $ 24,658 Net income per share: Basic $ 0.14 $ 0.22 $ 0.44 Diluted $ 0.14 $ 0.21 $ 0.40 Fiscal years ended July 31, 2015 2014 2013 Denominator: Weighted average shares used in computing net income per share: Basic 70,075,908 65,748,896 56,331,018 Weighted average effect of diluted stock options 1,223,106 1,896,766 3,392,797 Weighted average effect of dilutive restricted stock units 1,015,419 1,467,071 1,845,380 Diluted 72,314,433 69,112,733 61,569,195 The following outstanding shares of common stock equivalents are excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive: Fiscal years ended July 31, 2015 2014 2013 Stock options to purchase common stock 290,670 206,136 320,325 Restricted stock units 678 76,840 64,397 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table presents a summary of the Company’s contractual obligations and commitments as of July 31, 2015 : Lease Obligations Royalty Obligations (1) Purchase Commitments (2) Total Fiscal Year Ending July 31, (in thousands) 2016 $ 6,195 $ 697 $ 9,107 $ 15,999 2017 6,132 560 1,812 8,504 2018 5,883 151 199 6,233 2019 5,203 — — 5,203 2020 175 — — 175 Total $ 23,588 $ 1,408 $ 11,118 $ 36,114 (1) Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements. (2) Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent non-cancellable commitments for which a penalty would be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement. Leases The Company leases certain facilities and equipment under operating leases. On December 5, 2011, the Company entered into a seven -year lease for a facility to serve as its new corporate headquarters, located in Foster City, California, for approximately 97,674 square feet of space commencing August 1, 2012. In connection with the new lease, the Company opened an unsecured letter of credit with Silicon Valley Bank for $1.2 million . On July 1, 2015 , the unsecured letter of credit was reduced from $0.8 million to $0.4 million in accordance with the lease agreement. Lease expense for all worldwide facilities and equipment, which is being recognized on a straight-line basis over terms of the various leases, was $5.5 million , $5.8 million and $5.3 million during the years ended July 31, 2015 , 2014 and 2013 , respectively. Letters of Credit The Company had two outstanding letters of credit required to secure contractual commitments as of July 31, 2015 and 2014 , respectively. In addition to the unsecured letter of credit for the building lease, the Company had an unsecured letter of credit agreement related to a customer arrangement for Polish Zloty 10.0 million (approximately $2.7 million as of July 31, 2015 ) to secure contractual commitments and prepayments. No amounts were outstanding under the Company’s unsecured letters of credit as of July 31, 2015 or July 31, 2014 . Legal Proceedings From time to time, the Company is involved in various other legal proceedings and receives claims, arising from the normal course of business activities. The Company accrues for estimated losses in the accompanying consolidated financial statements for matters with respect to which the Company believes the likelihood of an adverse outcome is probable and the amount of the loss is reasonably estimable. Indemnification The Company sells software licenses and services to its customers under contracts (“Software License”). Each Software License contains the terms of the contractual arrangement with the customer and generally includes certain provisions for defending the customer against any claims that the Company’s software infringes upon a patent, copyright, trademark, or other proprietary right of a third-party. Software Licenses also indemnify the customer against losses, expenses, and liabilities from damages that may be assessed against the customer in the event the Company’s software is found to infringe upon such third-party rights. The Company has not had to reimburse any of its customers for losses related to indemnification provisions and no material claims against the Company are outstanding as of July 31, 2015 and 2014 . For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under various Software Licenses, the Company cannot estimate the amount of potential future payments, if any, related to indemnification provisions. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of these persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that may enable the Company to recover a portion of any future amounts paid. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-based Compensation | 12 Months Ended |
Jul. 31, 2015 | |
Stockholders' Equity and Stock-based Compensation [Abstract] | |
Stockholders' Equity and Stock-based Compensation | Stockholders’ Equity and Stock-Based Compensation Equity Incentive Plans On September 14, 2011, the Company’s Board of Directors adopted the 2011 Stock Plan (“2011 Plan”) for the purpose of granting equity-based incentive awards as compensation tools to motivate the Company’s workforce. The Company had initially reserved 7,500,000 shares of its common stock for the issuance of awards under the 2011 Plan. The 2011 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2013, by up to 5% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31. This number is subject to adjustment in the event of a stock split, stock dividend or other defined changes in the Company’s capitalization. In addition, the Company has equity awards outstanding from its other equity incentive plans, the 2006 Stock Plan, the 2009 Stock Plan and the 2010 Restricted Stock Unit Plan, which were discontinued for the purposes of making new grants upon the adoption of the 2011 Plan. Stock-Based Compensation Expense Stock-based compensation expense related to options and restricted stock units (“RSUs”) granted to employee and non-employee is as follows: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Cost of license revenues $ 222 $ 184 $ — Cost of maintenance revenues 1,158 797 830 Cost of services revenues 15,022 11,929 6,910 Research and development 10,683 9,008 5,843 Sales and marketing 12,090 10,744 3,672 General and administrative 12,200 9,876 8,250 Total stock-based compensation expense 51,375 42,538 25,505 Tax benefit from stock-based compensation 19,087 15,905 9,902 Total stock-based compensation expense, net of tax effect $ 32,288 $ 26,633 $ 15,603 As of July 31, 2015 , total unrecognized compensation cost, adjusted for estimated forfeitures and before tax benefit, was as follows: As of July 31, 2015 Unrecognized Expense Weighted Average Expected Recognition Period (in thousands) (in years) Restricted stock units $ 98,772 2.4 Stock options 5,207 2.2 $ 103,979 RSUs RSU activity under the Company’s equity incentive plans is as follows: Number of RSUs Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (1) (in thousands) Balance as of July 31, 2012 3,992,177 $ 8.00 $ 102,439 Granted 2,024,221 33.68 Released (1,623,182 ) 9.88 $ 56,200 Canceled (365,615 ) 17.72 Balance as of July 31, 2013 4,027,601 19.27 $ 176,248 Granted 1,667,433 43.87 Released (2,007,423 ) 18.59 $ 91,300 Canceled (303,390 ) 31.48 Balance as of July 31, 2014 3,384,221 30.70 $ 137,061 Granted 1,664,413 47.50 Released (1,819,825 ) 25.99 $ 88,648 Canceled (346,135 ) 36.72 Balance as of July 31, 2015 2,882,674 $ 42.65 $ 170,222 (1) Aggregate intrinsic value at each fiscal year end represents the total market value of RSUs at the Company’s closing stock price of $59.05 , $40.50 and $43.76 on July 31, 2015 , 2014 and 2013 , respectively. Aggregate intrinsic value for released RSUs represents the total market value of released RSUs at date of release. The Company’s restricted stock units also included performance stock unit (“PSU”) awards, which have been granted to certain executives and employees of the Company. The PSU awards included performance conditions as well as time-based vesting which generally vest over four years. Included in fiscal year 2015 , 2014 and 2013 stock-based compensation were $2.4 million , $1.6 million and $1.7 million of expense for performance-based awards, which were tied to the Company’s fiscal year 2015 , 2014 and 2013 financial results, respectively. During the fourth quarter of fiscal year 2015, the Company began requiring that the general employee population sell a portion of the shares that they receive upon the vesting of RSUs in order to cover any required withholding taxes (“sell-to-cover”), rather than its previous approach of net share settlement. Stock Options Stock option activity under the Company’s equity incentive plans is as follows: Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in years) (in thousands) Balance as of July 31, 2012 6,486,641 $ 3.74 6.1 $ 142,321 Granted 377,412 32.36 Exercised (2,905,296 ) 3.12 $ 86,000 Canceled (195,529 ) 10.55 Balance as of July 31, 2013 3,763,228 $ 6.74 5.7 $ 139,315 Granted 225,930 46.63 Exercised (1,580,344 ) 5.53 $ 65,300 Canceled (8,561 ) 21.75 Balance as of July 31, 2014 2,400,253 $ 11.24 5.5 $ 71,640 Granted 138,643 47.23 Exercised (665,665 ) 9.46 27,263 Canceled (51,169 ) 23.04 Balance as of July 31, 2015 1,822,062 $ 14.29 4.9 $ 81,548 Vested and expected to vest as of July 31, 2015 1,806,380 $ 14.01 4.9 $ 81,351 Exercisable as of July 31, 2015 1,515,927 $ 8.47 4.2 $ 76,075 (1) Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $59.05 , $40.50 and $43.76 on July 31, 2015 , 2014 and 2013 and the exercise price of the option, respectively. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. Valuation of Awards The per share fair value of each stock option was determined using the Black-Scholes option-pricing model with the following assumptions. Each of these inputs is subjective and generally requires significant judgment to determine. Valuation Method —The Company estimates the fair value of its stock options using the Black-Scholes option-pricing model. Expected Term —The expected term represents the period that the stock-based awards are expected to be outstanding. The Company uses the simplified method to determine the expected term for its option grants as provided by the Securities and Exchange Commission. The simplified method calculates the expected term as the average of the time-to-vesting and the contractual life of the options. The Company uses the simplified method to determine its expected term because of its limited history of stock option exercise activity. Expected Volatility —The expected volatility is derived from the historical stock volatilities of several comparable publicly listed peers over a period approximately equal to the expected term of the options as the Company has limited trading history This is not materially different from the historical volatility of its own common stock. Risk-Free Interest Rate — The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the options. Expected Dividend —The expected dividend is zero as the Company has never paid dividends and has no expectations to do so. The following assumptions were used to estimate the fair value of options granted for each of years presented: Fiscal years ended July 31, 2015 2014 2013 Expected life (in years) 6.0 - 6.1 5.0 - 6.1 5.1 - 6.1 Risk-free interest rate 1.7% - 1.9% 1.5% - 2.0% 0.6% - 1.2% Expected volatility 39.4% - 45.1% 41.3% - 46.2% 45.1% - 48.7% Expected dividend yield —% —% —% Weighted average fair value of options granted $20.78 $21.06 $14.06 Forfeiture —Forfeitures were estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. Forfeitures were estimated based on historical experience and analysis of employee turnover behavior. Common Stock Reserved for Future Issuance As of July 31, 2015 and 2014 , the Company had reserved shares of common stock for future issuance as follows: July 31, 2015 July 31, 2014 Exercise of stock options to purchase common stock 1,822,062 2,400,253 Vesting of restricted stock units 2,882,674 3,384,221 Shares available for grant under stock plans 14,363,906 11,703,962 Total common stock reserved for issuance 19,068,642 17,488,436 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income before provision for income taxes for the years ended July 31, 2015 , 2014 and 2013 is as follows: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Domestic $ 11,348 $ 11,956 $ 25,725 International 5,392 7,990 4,398 Income before provision for income taxes $ 16,740 $ 19,946 $ 30,123 The provision for income taxes consists of the following: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Current: U.S. federal $ 2,509 $ 5,235 $ 1,296 State 300 1,326 999 Foreign 3,910 2,509 3,479 Total current 6,719 9,070 5,774 Deferred: U.S. federal 983 (4,277 ) (258 ) State 169 78 483 Foreign (1,016 ) 354 (534 ) Total deferred 136 (3,845 ) (309 ) Total provision for income taxes $ 6,855 $ 5,225 $ 5,465 Differences between income taxes calculated using the statutory federal income tax rate of 35% and the provision for income taxes are as follows: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Statutory federal income tax $ 5,858 $ 6,977 $ 10,538 Nondeductible items and other 1,575 1,164 (577 ) State income taxes, net of federal benefit 388 840 (858 ) Foreign income taxed at different rates 816 (207 ) 1,405 Tax credits (1,697 ) (3,612 ) (7,199 ) Change in valuation allowance (85 ) 63 2,156 Total provision for income taxes $ 6,855 $ 5,225 $ 5,465 The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities are as follows: As of July 31, 2015 2014 (in thousands) Accruals and reserves $ 9,974 $ 8,488 Stock-based compensation 5,534 4,347 Deferred revenues 410 1,485 Property and equipment 914 298 Net operating loss carryforwards 436 1,161 Tax credits 10,435 11,699 Total deferred tax assets 27,703 27,478 Less valuation allowance 6,783 4,938 Net deferred tax assets 20,920 22,540 Less deferred tax liabilities: Intangible assets 1,179 1,701 Foreign deferred revenue — 727 Total net deferred tax assets $ 19,741 $ 20,112 During the years ended July 31, 2015 , 2014 and 2013 , the Company was able to consider positive evidence in determining the realizability of its deferred tax assets, including projections for future growth, and determined a significant portion of the valuation allowance was not required. A valuation allowance of $6.8 million and $4.9 million remained as of July 31, 2015 and 2014 , respectively, for California research and development credits that were not more likely than not realizable. As of July 31, 2015 , the Company had U. S. federal, California and other states net operating loss (“NOL”) carryforwards of $204.8 million , $113.0 million , and $7.0 million , respectively. The U. S. federal and California NOL carryforwards will start to expire in 2026 and 2016 , respectively. The Company had research and development tax credit (“R&D credit”) carryforwards of the following: As of July 31, 2015 (in thousands) U.S. federal $ 14,121 California 15,523 Total R&D credit carryforwards $ 29,644 The U.S. federal R&D credit will start to expire in 2023 . California R&D tax credits have no expiration. The excess tax benefits associated with stock option exercises are recorded directly to stockholders’ equity only when realized through reduction to income tax payable on the tax returns. As a result, the pre-tax excess tax benefits included in federal and California net operating loss carryforwards on the tax returns but not reflected in deferred tax assets for fiscal year 2015 are $204.1 million and $112.9 million , respectively. Federal and California laws impose restrictions on the utilization of net operating loss carryforwards and R&D credit carryforwards in the event of a change in ownership of the Company, which constitutes an “ownership change” as defined by Internal Revenue Code Sections 382 and 383. The Company experienced an ownership change in the past that does not materially impact the availability of its net operating losses and tax credits. Nevertheless, should there be an ownership change in the future, the Company’s ability to utilize existing carryforwards could be substantially restricted. The Company provides U.S. income taxes on the earnings of foreign subsidiaries, unless the subsidiaries’ earnings are considered indefinitely reinvested outside the United States. As of July 31, 2015 , U.S. income taxes were not provided for on the cumulative total of $22.7 million in undistributed earnings from profitable foreign subsidiaries. As of July 31, 2015 , the unrecognized deferred tax liability for these earnings was approximately $7.8 million . Unrecognized Tax Benefits The following table summarizes the activity related to unrecognized tax benefits: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Unrecognized benefit - beginning of period $ 7,976 $ 6,727 $ 3,937 Gross increases (decreases) - prior period tax positions (2,895 ) (368 ) 370 Gross increases - current period tax positions 1,028 1,617 2,420 Unrecognized benefit - end of period $ 6,109 $ 7,976 $ 6,727 During the year ended July 31, 2015 , the Company’s unrecognized tax benefits decreased by $1.9 million , primarily associated with the Company’s U.S. federal and California R&D tax credits. As of July 31, 2015 , the Company had unrecognized tax benefits of $2.8 million that, if recognized, would affect the Company’s effective tax rate. The Company or one of its subsidiaries files income taxes in the U.S. federal jurisdiction and various states and foreign jurisdictions. If the Company utilizes net operating losses or tax credits in future years, the U.S. federal, state and local, and non-U.S. tax authorities may examine the tax returns covering the period in which the net operating losses and tax credits arose. As a result, the Company’s tax returns in the U.S. and California remain open to examination from fiscal years 2002 through 2015 . As of July 31, 2015, the Company has no tax audits in progress in our foreign jurisdictions. |
Defined Contributions and Other
Defined Contributions and Other Postretirement Plans | 12 Months Ended |
Jul. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Contributions and Other Postretirement Plans | Defined Contribution and Other Post-retirement Plans The Company’s employee savings and retirement plan in the United States is qualified under Section 401(k) of the Internal Revenue Code. Employees on the Company’s U.S. payroll are automatically enrolled when they meet eligibility requirements, unless they decline participation. Upon enrollment employees are provided with tax-deferred salary deductions and alternative investment options. Employees may contribute up to 60% of their eligible salary up to the statutory prescribed annual limit. The Company matches employees’ contributions up to $4,000 per participant per calendar year. Certain of the Company’s foreign subsidiaries also have defined contribution plans in which a majority of its employees participate and the Company makes matching contributions. The Company’s contributions to its 401(k) and foreign subsidiaries’ plans were $4.3 million , $3.2 million and $1.8 million for the fiscal years ended July 31, 2015 , 2014 and 2013 , respectively. |
Segment Information
Segment Information | 12 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in one segment. The Company’s chief operating decision maker (the “CODM”), its Chief Executive Officer, manages the Company’s operations on a consolidated basis for purposes of allocating resources. When evaluating the Company’s financial performance, the CODM reviews separate revenues information for the Company’s license, maintenance and professional services offerings, while all other financial information is reviewed on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States. The following table sets forth revenues by country and region based on the billing address of the customer: Fiscal years ended July 31, 2015 2014 2013 (in thousands) United States $ 208,104 $ 203,791 $ 172,793 Canada 37,833 39,100 42,632 Other Americas 7,162 8,106 6,932 Total Americas 253,099 250,997 222,357 United Kingdom 44,393 37,890 20,660 Other EMEA 47,449 35,149 27,543 Total EMEA 91,842 73,039 48,203 APAC 35,596 26,210 30,089 Total revenues $ 380,537 $ 350,246 $ 300,649 No country other than those listed above accounted for more than 10% of revenues during the years ended July 31, 2015 , 2014 and 2013 . The following table sets forth the Company’s long-lived assets, including goodwill and intangibles, net by geographic region: July 31, 2015 July 31, 2014 (in thousands) Americas $ 22,746 $ 25,573 EMEA 2,183 950 APAC 435 728 Total $ 25,364 $ 27,251 |
The Company and Summary of Si18
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Jul. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Company Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc. together with its subsidiaries (the “Company”) provides a technology platform which consists of three key elements: core transaction processing, data management and analytics, and digital engagement. It supports core insurance operations, including underwriting and policy administration, claim management and billing. The Company’s customers include insurance carriers for property and casualty insurance. |
Basis of Presentation | Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of Guidewire Software, Inc. and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from these estimates. |
Foreign Currency Translation | Foreign Currency The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period in which the transactions occur. The effects of foreign currency translations are recorded in accumulated other comprehensive income/loss as a separate component of stockholders’ equity in the accompanying consolidated statements of stockholders’ equity. Transaction gains and losses from foreign currency transactions that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are recorded as other income (expense) in the consolidated statements of income. |
Cash, Cash Equivalents, Investments and Restricted cash | Cash and Cash Equivalents Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents consist of commercial paper and money market funds. Investments Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. All investments are held as available-for-sale investments. The Company classifies investments as short-term when they have remaining contractual maturities of one year or less from the balance sheet date, and as long-term when the investments have remaining contractual maturities of more than one year from the balance sheet date. All investments are recorded at fair value with unrealized holding gains and losses included in accumulated other comprehensive (loss) income. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs that do not extend the life or improve an asset are expensed in the period incurred. The estimated useful lives of property and equipment are as follows: Computer hardware 3 years Software 3 years Furniture and fixtures 3 years Leasehold improvements Shorter of the lease term or estimated useful life |
Product Development Costs | Product Development Costs Certain software development costs incurred subsequent to the establishment of technological feasibility are subject to capitalization and amortized over the estimated lives of the related products. Technological feasibility is established upon completion of a working model. Through July 31, 2015 , costs incurred subsequent to the establishment of technological feasibility have not been material, and therefore, all software development costs have been charged to research and development expense in the accompanying consolidated statements of income as incurred. |
Impairment of Long-Lived Assets, Intangible Assets and Goodwill | Impairment of Long-Lived Assets, Intangible Assets and Goodwill The Company evaluates its long-lived assets, consisting of property and equipment and intangible assets, for indicators of possible impairment when events or changes in circumstances indicate that the carrying amount of certain assets may not be recoverable. Impairment exists if the carrying amounts of such assets exceed the estimates of future net undiscounted cash flows expected to be generated by such assets. Should impairment exist, the impairment loss would be measured based on the excess carrying value of the assets over the estimated fair value of the assets. The Company has not written down any of its long-lived assets as a result of impairment during any of the periods presented. The Company tests goodwill for impairment annually during the fourth quarter of each fiscal year and in the interim whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company evaluates qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. In performing the qualitative assessment, the Company considers events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit’s net assets and changes in the price of the Company’s common stock. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed. In connection with the acquisition of Millbrook during the fourth quarter of fiscal 2013, the Company allocated $9.2 million to goodwill. The Company did not recognize any goodwill impairment losses associated with its single reporting unit in fiscal 2015 or 2014 . |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments and accounts receivable. The Company maintains its cash, cash equivalents and investments with high quality financial institutions. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts recorded on the balance sheet are in excess of amounts that are insured by the Federal Deposit Insurance Corporation (“FDIC”). No customer accounted for 10% or more of the Company’s revenues for the years ended July 31, 2015 , 2014 and 2013 . No customer accounted for 10% or more of the Company’s total accounts receivable as of July 31, 2015 . The Company had one customer that accounted for 10% of total accounts receivable as of July 31, 2014 . |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amounts, net of the Company’s estimated allowances for doubtful accounts. The allowance for doubtful accounts is estimated based on an assessment of the Company’s ability to collect on customer accounts receivable, and there is judgment involved in such assessment. The Company regularly reviews the allowance by considering certain factors such as historical experience, industry data, credit quality, age of accounts receivable balances, customers’ financial condition and current economic conditions that may affect a customer’s ability to pay. The Company has had no allowance for doubtful accounts in the periods presented in this Annual Report on Form 10-K. The Company’s accounts receivable are not collateralized by any security. |
Revenue Recognition | Revenue Recognition The Company enters into arrangements to deliver multiple products or services (multiple-elements). The Company applies software revenue recognition rules and allocates the total revenues among elements based on vendor-specific objective evidence (“VSOE”) of fair value of each element. The Company recognizes revenue on a net basis excluding taxes collected from customers and remitted to government authorities. Revenues are derived from three sources: (i) License fees, related to term (or time-based) licenses, perpetual software licenses, and other; (ii) Maintenance fees, related to email and phone support, bug fixes and unspecified software updates and upgrades released when, and if available during the maintenance term; and (iii) Services fees, related to professional services related to implementation of our software, reimbursable travel and training. Revenues are recognized when all of the following criteria are met: • Persuasive evidence of an arrangement exists. Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period. • Delivery or performance has occurred . The Company’s software is delivered electronically to the customer. Delivery is considered to have occurred when the Company provides the customer access to the software along with login credentials. • Fees are fixed or determinable. The Company assesses whether a fee is fixed or determinable at the outset of the arrangement, primarily based on the payment terms associated with the transaction. For perpetual licenses, the Company does not generally offer extended payment terms with typical terms of payment due between 30 and 60 days from delivery of software. Fees from term licenses are generally due in annual or, in certain cases, quarterly installments over the term of the agreement beginning on the effective date of the license. Accordingly, fees from term licenses are not considered to be fixed or determinable until they become due. • Collectability is probable. Collectability is assessed on a customer-by-customer basis, based primarily on creditworthiness as determined by credit checks and analysis, as well as customer payment history. Payment terms generally range from 30 to 90 days from invoice date. If it is determined prior to revenue recognition that collection of an arrangement fee is not probable, revenues are deferred until collection becomes probable or cash is collected, assuming all other revenue recognition criteria are satisfied. VSOE of fair value does not exist for the Company’s software licenses; therefore, the Company allocates revenues to software licenses using the residual method. Under the residual method, the amount recognized for license fees is the difference between the total fixed and determinable fees and the VSOE of fair value for the undelivered elements under the arrangement. The VSOE of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for those elements when sold separately. VSOE of fair value for maintenance is established using the stated maintenance renewal rate in the customer’s contract. For term licenses with duration of one year or less, no VSOE of fair value for maintenance exists. VSOE of fair value for services is established if a substantial majority of historical stand-alone selling prices for a service fall within a reasonably narrow price range. If the undelivered elements are all service elements and VSOE of fair value does not exist for one or more service element, the total arrangement fee is recognized ratably over the longest service period starting at software delivery, assuming all the related services have been made available to the customer. In certain offerings sold as fixed fee arrangements, the Company recognizes services revenues on a proportional performance basis as performance obligations are completed by using the ratio of labor hours to date as an input measure compared to total estimated labor hours for the consulting services. In cases where professional services are deemed to be essential to the functionality of the software, the arrangement is accounted for using contract accounting until the essential services are complete. If reliable estimates of total project costs can be made, the Company applies the percentage-of-completion method whereby percentage toward completion is measured by using the ratio of service billings to date compared to total estimated service billings for the consulting services. Service billings approximate labor hours as an input measure since they are generally billed monthly on a time and material basis. The fees related to the maintenance are recognized over the period the maintenance is provided. If reliable estimates of total project costs cannot be made or VSOE for maintenance has not been established and it is reasonably assured that no loss will be incurred under the arrangement, revenues are recognized pursuant to the zero gross margin method. Under this method, revenues recognized are limited to the costs incurred for the implementation services. When zero gross margin method is applied for lack of reliable project estimates and subsequently project estimates become reliable, the Company switches to the percentage-of-completion method, resulting in a cumulative effect adjustment for deferred license revenues to the extent of progress toward completion, and the related deferred professional service margin is recognized in full as revenues. There were no cumulative effect adjustments for the fiscal years ended July 31, 2015 and 2014 . For the fiscal year ended July 31, 2013 , the cumulative effect adjustment for license and service revenue was $3.2 million and $1.7 million , respectively. |
Deferred Revenues | |
Sales Commissions | Sales Commissions Sales commissions are recognized as an expense when earned by the sales representative, generally occurring at the time the customer order is signed. Substantially all of the effort by the sales force is expended through the time of closing the sale, with limited to no involvement thereafter. |
Warranties | Warranties The Company generally provides a warranty for its software products and services to its customers for periods ranging from 3 to 12 months . The Company’s software products are generally warranted to be free of defects in materials and workmanship under normal use and the products are also generally warranted to substantially perform as described in published documentation. The Company’s services are generally warranted to be performed in a professional manner and to materially conform to the specifications set forth in the related customer contract. In the event there is a failure of such warranties, the Company generally will correct the problem or provide a reasonable workaround or replacement product. If the Company cannot correct the problem or provide a workaround or replacement product, then the customer’s remedy is generally limited to refund of the fees paid for the nonconforming product or services. Warranty expense has been insignificant. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and amounts incurred were not material during the years ended July 31, 2015 , 2014 and 2013 . |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense related to stock options and restricted stock units (“RSUs”) granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The awards are subject to time-based vesting, which generally occurs over a period of four years. Option awards expire 10 years from the grant date. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, of the Company’s stock options using the Black-Scholes option-pricing model. The Company recognizes the fair value of stock-based compensation for awards which contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the compensation cost for awards which contain performance conditions based upon the probability of that performance condition being met, net of estimated forfeitures, using the graded method. Compensation cost for RSUs is generally recognized over the time-based vesting period. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement carrying amounts of existing assets and liabilities by using enacted tax rates in effect for the year in which the difference is expected to reverse. Deferred tax assets and liabilities are classified as either current or noncurrent based on the related asset or liability. Deferred tax assets related to excess tax benefits are recorded when utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded when it is more likely than not that some portion or all of such deferred tax assets will not be realized and is based on the positive and negative evidence about the future including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The effective tax rate in a given financial statement period may also be materially impacted by changes in the mix and level of income or losses, changes in the expected outcome of audits, or changes in the deferred tax valuation allowance. The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its consolidated statement of income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncement Cloud Computing Arrangements that Include a Software Element In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (ASU 2015-05). ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes software. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for service contracts. ASU 2015-05 is effective for the Company in the first quarter of fiscal 2017 with early adoption permitted using either of two methods: (i) prospective to all arrangements entered into or materially modified after the effective date and represent a change in accounting principle; or (ii) retrospectively. The Company is currently evaluating the impact of the adoption of ASU 2015-05 on its consolidated financial statements. Stock-Based Compensation In June 2014, the FASB issued Accounting Standard Update ("ASU") No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718). This ASU provides authoritative guidance for share-based payments with a performance condition that could be achieved after the requisite service period when an employee is eligible to retire or otherwise terminate employment before the end of the period in which the performance target could be achieved and still be eligible. The standard will be effective for the Company beginning August 1, 2016. The adoption of this accounting standard update will not impact the Company’s consolidated financial statements based on current compensation programs. Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. In July 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017. Early adoption is permitted to the original effective date of December 15, 2016. The standard will be effective for the Company beginning August 1, 2018 and permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method and continue to evaluate the impact that this guidance will have on our consolidated financial statements. |
The Company and Summary of Si19
The Company and Summary of Significant Accounting Policies and Estimates (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated useful lives of property and equipment | The estimated useful lives of property and equipment are as follows: Computer hardware 3 years Software 3 years Furniture and fixtures 3 years Leasehold improvements Shorter of the lease term or estimated useful life |
Fair Value of Financial Instr20
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Available-for-sale investments within cash equivalents and investments consist of the following: July 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (in thousands) U.S. agency securities $ 82,946 $ 21 $ (4 ) $ 82,963 Commercial paper 142,822 13 (4 ) 142,831 Corporate bonds 281,942 47 (216 ) 281,773 U.S. government bonds 32,529 13 (2 ) 32,540 Foreign government bonds 8,663 7 (2 ) 8,668 Certificate of deposit 2,700 — — 2,700 Money market funds 88,319 — — 88,319 Total $ 639,921 $ 101 $ (228 ) $ 639,794 July 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (in thousands) U.S. agency securities $ 94,048 $ 30 $ (21 ) $ 94,057 Asset-backed securities 1,363 — (2 ) 1,361 Commercial paper 132,442 14 (4 ) 132,452 Corporate bonds 297,731 104 (182 ) 297,653 U.S. government bonds 17,991 3 (3 ) 17,991 Foreign government bonds 2,755 — (1 ) 2,754 Certificate of deposit 6,709 — (1 ) 6,708 Money market funds 53,959 — — 53,959 Municipal debt securities 12,985 13 (1 ) 12,997 Total $ 619,983 $ 164 $ (215 ) $ 619,932 |
Schedule of Unrealized Loss on Investments | The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: July 31, 2015 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) U.S. agency securities $ 18,749 $ (4 ) $ — $ — $ 18,749 $ (4 ) Commercial paper 31,975 (4 ) — — 31,975 (4 ) Corporate bonds 202,791 (216 ) — — 202,791 (216 ) U. S. government bonds 9,987 (2 ) — — 9,987 (2 ) Foreign government bonds 3,065 (2 ) — — 3,065 (2 ) Total $ 266,567 $ (228 ) $ — $ — $ 266,567 $ (228 ) |
Investments Classified by Contractual Maturity Date | The following table summarizes the contractual maturities of the Company’s available-for-sale securities as of July 31, 2015 : Less Than 12 Months 12 to 36 Months Total U.S. agency securities $ 68,212 $ 14,751 $ 82,963 Commercial paper 142,831 — 142,831 Corporate bonds 202,964 78,809 281,773 U.S. government bonds 19,983 12,557 32,540 Foreign government bonds 8,668 — 8,668 Certificate of deposit 2,700 — 2,700 Money market funds 88,319 — 88,319 Total $ 533,677 $ 106,117 $ 639,794 |
Company's financial instruments measured at fair value on a recurring basis | The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy: July 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents: Commercial paper $ — $ 86,085 $ — $ 86,085 Money market funds 88,319 — — 88,319 Short-term investments: U.S. agency securities — 68,212 — 68,212 Commercial paper — 56,746 — 56,746 U. S. government bonds — 19,983 — 19,983 Foreign government bonds — 8,668 — 8,668 Corporate bonds — 202,964 — 202,964 Certificate of deposit — 2,700 — 2,700 Long-term investments: U.S. agency securities — 14,751 — 14,751 Corporate bonds — 78,809 — 78,809 U.S. government bonds — 12,557 — 12,557 Total assets $ 88,319 $ 551,475 $ — $ 639,794 July 31, 2014 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents: Commercial paper $ — $ 66,293 $ — $ 66,293 Money market funds 53,959 — — 53,959 Short-term investments: U.S. agency securities — 29,062 — 29,062 Asset-backed securities — 1,361 — 1,361 Commercial paper — 66,159 — 66,159 U. S. government bonds — 9,995 — 9,995 Corporate bonds — 172,648 — 172,648 Certificate of deposit — 4,009 — 4,009 Municipal debt securities — 12,997 — 12,997 Long-term investments: U.S. agency securities — 64,995 — 64,995 Certificate of deposit — 2,699 — 2,699 Corporate bonds — 125,005 — 125,005 U.S. government bonds — 7,996 — 7,996 Foreign government bonds — 2,754 — 2,754 Total assets $ 53,959 $ 565,973 $ — $ 619,932 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Property and equipment | Property and equipment, net consists of the following: July 31, 2015 July 31, 2014 (in thousands) Computer hardware $ 15,099 $ 11,882 Software 4,867 4,605 Furniture and fixtures 3,065 2,732 Leasehold improvements 8,040 7,069 Total property and equipment 31,071 26,288 Less accumulated depreciation (18,911 ) (13,681 ) Property and equipment, net $ 12,160 $ 12,607 |
Goodwill and Intangible Assets | The following table presents changes in the carrying amount of goodwill acquired through the Millbrook acquisition on May 10, 2013: Total (in thousands) Goodwill, July 31, 2013 $ 9,048 Changes in carrying value 157 Goodwill, July 31, 2014 $ 9,205 Changes in carrying value — Goodwill, July 31, 2015 $ 9,205 Intangible assets consist of the following: July 31, 2015 July 31, 2014 (in thousands) Acquired technology: Cost $ 7,200 $ 7,200 Accumulated amortization (3,201 ) (1,761 ) Intangible assets, net $ 3,999 $ 5,439 |
Future Amortization Expense | Estimated aggregate amortization expense for each of the next three fiscal years is as follows: Future Amortization Fiscal Year Ending July 31, (in thousands) 2016 $ 1,440 2017 1,440 2018 1,119 Total $ 3,999 |
Accrued Employee Compensation | Accrued employee compensation consists of the following: July 31, 2015 July 31, 2014 (in thousands) Accrued bonuses $ 19,819 $ 19,213 Accrued commission 5,008 3,593 Accrued vacation 7,980 8,100 Accrued salaries, payroll taxes and benefits 4,428 4,006 Total $ 37,235 $ 34,912 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component were as follows: Foreign Currency Items Unrealized gain (loss) on available-for-sale securities Total (In thousands) Balance as of July 31,2013 $ (1,598 ) $ 24 $ (1,574 ) Other comprehensive income (loss) before reclassification adjustments: 288 (49 ) 239 Amounts reclassified from accumulated other comprehensive income (loss) to earnings — (39 ) (39 ) Tax effect — 7 7 Balance as of July 31, 2014 (1,310 ) (57 ) (1,367 ) Other comprehensive income (loss) before reclassification adjustments: (4,937 ) (121 ) (5,058 ) Amounts reclassified from accumulated other comprehensive income (loss) to earnings — 44 44 Tax effect — 38 38 Balance as of July 31, 2015 $ (6,247 ) $ (96 ) $ (6,343 ) |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Company's basic and diluted earnings per share | The following table sets forth the computation of the Company’s basic and diluted net income per share for the years ended July 31, 2015 , 2014 and 2013 : Fiscal years ended July 31, 2015 2014 2013 (in thousands, except share and per share amounts) Numerator: Net income $ 9,885 $ 14,721 $ 24,658 Net income per share: Basic $ 0.14 $ 0.22 $ 0.44 Diluted $ 0.14 $ 0.21 $ 0.40 Fiscal years ended July 31, 2015 2014 2013 Denominator: Weighted average shares used in computing net income per share: Basic 70,075,908 65,748,896 56,331,018 Weighted average effect of diluted stock options 1,223,106 1,896,766 3,392,797 Weighted average effect of dilutive restricted stock units 1,015,419 1,467,071 1,845,380 Diluted 72,314,433 69,112,733 61,569,195 |
Outstanding antidilutive shares of common stock equivalents | The following outstanding shares of common stock equivalents are excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive: Fiscal years ended July 31, 2015 2014 2013 Stock options to purchase common stock 290,670 206,136 320,325 Restricted stock units 678 76,840 64,397 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future commitments and obligations under the operating leases | The following table presents a summary of the Company’s contractual obligations and commitments as of July 31, 2015 : Lease Obligations Royalty Obligations (1) Purchase Commitments (2) Total Fiscal Year Ending July 31, (in thousands) 2016 $ 6,195 $ 697 $ 9,107 $ 15,999 2017 6,132 560 1,812 8,504 2018 5,883 151 199 6,233 2019 5,203 — — 5,203 2020 175 — — 175 Total $ 23,588 $ 1,408 $ 11,118 $ 36,114 (1) Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements. (2) Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent non-cancellable commitments for which a penalty would be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement. |
Stockholders' Equity and Stoc24
Stockholders' Equity and Stock-based Compensation (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Stockholders' Equity and Stock-based Compensation [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense related to options and restricted stock units (“RSUs”) granted to employee and non-employee is as follows: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Cost of license revenues $ 222 $ 184 $ — Cost of maintenance revenues 1,158 797 830 Cost of services revenues 15,022 11,929 6,910 Research and development 10,683 9,008 5,843 Sales and marketing 12,090 10,744 3,672 General and administrative 12,200 9,876 8,250 Total stock-based compensation expense 51,375 42,538 25,505 Tax benefit from stock-based compensation 19,087 15,905 9,902 Total stock-based compensation expense, net of tax effect $ 32,288 $ 26,633 $ 15,603 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | As of July 31, 2015 , total unrecognized compensation cost, adjusted for estimated forfeitures and before tax benefit, was as follows: As of July 31, 2015 Unrecognized Expense Weighted Average Expected Recognition Period (in thousands) (in years) Restricted stock units $ 98,772 2.4 Stock options 5,207 2.2 $ 103,979 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | RSU activity under the Company’s equity incentive plans is as follows: Number of RSUs Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (1) (in thousands) Balance as of July 31, 2012 3,992,177 $ 8.00 $ 102,439 Granted 2,024,221 33.68 Released (1,623,182 ) 9.88 $ 56,200 Canceled (365,615 ) 17.72 Balance as of July 31, 2013 4,027,601 19.27 $ 176,248 Granted 1,667,433 43.87 Released (2,007,423 ) 18.59 $ 91,300 Canceled (303,390 ) 31.48 Balance as of July 31, 2014 3,384,221 30.70 $ 137,061 Granted 1,664,413 47.50 Released (1,819,825 ) 25.99 $ 88,648 Canceled (346,135 ) 36.72 Balance as of July 31, 2015 2,882,674 $ 42.65 $ 170,222 (1) Aggregate intrinsic value at each fiscal year end represents the total market value of RSUs at the Company’s closing stock price of $59.05 , $40.50 and $43.76 on July 31, 2015 , 2014 and 2013 , respectively. Aggregate intrinsic value for released RSUs represents the total market value of released RSUs at date of release. |
Schedule of Share-based Compensation, Stock options, Activity | Stock option activity under the Company’s equity incentive plans is as follows: Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in years) (in thousands) Balance as of July 31, 2012 6,486,641 $ 3.74 6.1 $ 142,321 Granted 377,412 32.36 Exercised (2,905,296 ) 3.12 $ 86,000 Canceled (195,529 ) 10.55 Balance as of July 31, 2013 3,763,228 $ 6.74 5.7 $ 139,315 Granted 225,930 46.63 Exercised (1,580,344 ) 5.53 $ 65,300 Canceled (8,561 ) 21.75 Balance as of July 31, 2014 2,400,253 $ 11.24 5.5 $ 71,640 Granted 138,643 47.23 Exercised (665,665 ) 9.46 27,263 Canceled (51,169 ) 23.04 Balance as of July 31, 2015 1,822,062 $ 14.29 4.9 $ 81,548 Vested and expected to vest as of July 31, 2015 1,806,380 $ 14.01 4.9 $ 81,351 Exercisable as of July 31, 2015 1,515,927 $ 8.47 4.2 $ 76,075 (1) Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $59.05 , $40.50 and $43.76 on July 31, 2015 , 2014 and 2013 and the exercise price of the option, respectively. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. |
Stock options valuation assumptions | The following assumptions were used to estimate the fair value of options granted for each of years presented: Fiscal years ended July 31, 2015 2014 2013 Expected life (in years) 6.0 - 6.1 5.0 - 6.1 5.1 - 6.1 Risk-free interest rate 1.7% - 1.9% 1.5% - 2.0% 0.6% - 1.2% Expected volatility 39.4% - 45.1% 41.3% - 46.2% 45.1% - 48.7% Expected dividend yield —% —% —% Weighted average fair value of options granted $20.78 $21.06 $14.06 |
Common Stock Reserved for Issuance | As of July 31, 2015 and 2014 , the Company had reserved shares of common stock for future issuance as follows: July 31, 2015 July 31, 2014 Exercise of stock options to purchase common stock 1,822,062 2,400,253 Vesting of restricted stock units 2,882,674 3,384,221 Shares available for grant under stock plans 14,363,906 11,703,962 Total common stock reserved for issuance 19,068,642 17,488,436 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Company's income (loss) before provision for income taxes | The Company’s income before provision for income taxes for the years ended July 31, 2015 , 2014 and 2013 is as follows: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Domestic $ 11,348 $ 11,956 $ 25,725 International 5,392 7,990 4,398 Income before provision for income taxes $ 16,740 $ 19,946 $ 30,123 |
Schedule of Components of Income Tax Expense | The provision for income taxes consists of the following: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Current: U.S. federal $ 2,509 $ 5,235 $ 1,296 State 300 1,326 999 Foreign 3,910 2,509 3,479 Total current 6,719 9,070 5,774 Deferred: U.S. federal 983 (4,277 ) (258 ) State 169 78 483 Foreign (1,016 ) 354 (534 ) Total deferred 136 (3,845 ) (309 ) Total provision for income taxes $ 6,855 $ 5,225 $ 5,465 |
Effective Income Tax Rate Reconciliation | Differences between income taxes calculated using the statutory federal income tax rate of 35% and the provision for income taxes are as follows: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Statutory federal income tax $ 5,858 $ 6,977 $ 10,538 Nondeductible items and other 1,575 1,164 (577 ) State income taxes, net of federal benefit 388 840 (858 ) Foreign income taxed at different rates 816 (207 ) 1,405 Tax credits (1,697 ) (3,612 ) (7,199 ) Change in valuation allowance (85 ) 63 2,156 Total provision for income taxes $ 6,855 $ 5,225 $ 5,465 |
Tax effects of temporary differences | The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities are as follows: As of July 31, 2015 2014 (in thousands) Accruals and reserves $ 9,974 $ 8,488 Stock-based compensation 5,534 4,347 Deferred revenues 410 1,485 Property and equipment 914 298 Net operating loss carryforwards 436 1,161 Tax credits 10,435 11,699 Total deferred tax assets 27,703 27,478 Less valuation allowance 6,783 4,938 Net deferred tax assets 20,920 22,540 Less deferred tax liabilities: Intangible assets 1,179 1,701 Foreign deferred revenue — 727 Total net deferred tax assets $ 19,741 $ 20,112 |
Net operating loss carryforwards | The Company had research and development tax credit (“R&D credit”) carryforwards of the following: As of July 31, 2015 (in thousands) U.S. federal $ 14,121 California 15,523 Total R&D credit carryforwards $ 29,644 |
Summary of activity related to unrecognized tax benefits | The following table summarizes the activity related to unrecognized tax benefits: Fiscal years ended July 31, 2015 2014 2013 (in thousands) Unrecognized benefit - beginning of period $ 7,976 $ 6,727 $ 3,937 Gross increases (decreases) - prior period tax positions (2,895 ) (368 ) 370 Gross increases - current period tax positions 1,028 1,617 2,420 Unrecognized benefit - end of period $ 6,109 $ 7,976 $ 6,727 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Revenues by country | The following table sets forth revenues by country and region based on the billing address of the customer: Fiscal years ended July 31, 2015 2014 2013 (in thousands) United States $ 208,104 $ 203,791 $ 172,793 Canada 37,833 39,100 42,632 Other Americas 7,162 8,106 6,932 Total Americas 253,099 250,997 222,357 United Kingdom 44,393 37,890 20,660 Other EMEA 47,449 35,149 27,543 Total EMEA 91,842 73,039 48,203 APAC 35,596 26,210 30,089 Total revenues $ 380,537 $ 350,246 $ 300,649 |
Property and equipment, net by geographic region | The following table sets forth the Company’s long-lived assets, including goodwill and intangibles, net by geographic region: July 31, 2015 July 31, 2014 (in thousands) Americas $ 22,746 $ 25,573 EMEA 2,183 950 APAC 435 728 Total $ 25,364 $ 27,251 |
The Company and Summary of Si27
The Company and Summary of Significant Accounting Policies and Estimates (Details) | 12 Months Ended |
Jul. 31, 2015 | |
Computer hardware [Member] | |
Estimated useful lives of property and equipment | |
Estimated useful lives of property and equipment (in years) | 3 years |
Software [Member] | |
Estimated useful lives of property and equipment | |
Estimated useful lives of property and equipment (in years) | 3 years |
Furniture and Fixtures [Member] | |
Estimated useful lives of property and equipment | |
Estimated useful lives of property and equipment (in years) | 3 years |
Leasehold improvements [Member] | |
Estimated useful lives of property and equipment | |
Estimated useful lives of property and equipment | Shorter of the lease term or estimated useful life |
The Company and Summary of Si28
The Company and Summary of Significant Accounting Policies and Estimates (Details Textual) | 12 Months Ended | |||
Jul. 31, 2015USD ($)customerrevenue_source | Jul. 31, 2014USD ($)customer | Jul. 31, 2013USD ($)customer | May. 10, 2013USD ($) | |
Goodwill, Intangible Assets and Long Lived Assets Impairment [Abstract] | ||||
Goodwill | $ 9,205,000 | $ 9,205,000 | $ 9,048,000 | |
Goodwill, Impairment Loss | $ 0 | $ 0 | ||
Concentration of Credit Risk [Abstract] | ||||
Number of customers concentration of credit risk revenues | customer | 0 | 0 | 0 | |
Number of customers concentration of credit risk receivables | customer | 0 | 1 | ||
Accounts Receivable and Allowance for Doubtful Accounts [Abstract] | ||||
Allowance for Doubtful Accounts Receivable | $ 0 | $ 0 | ||
Revenue Recognition [Abstract] | ||||
Number of revenue sources | revenue_source | 3 | |||
Adjustment for license revenues | $ 0 | 0 | $ 3,200,000 | |
Adjustment for service revenues | $ 0 | $ 0 | $ 1,700,000 | |
Restricted stock units RSUs [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Period of RSUs time based vesting (in years) | 4 years | |||
Period of expiration for share based payment awards (in years) | 10 years | |||
Minimum [Member] | ||||
Concentration of Credit Risk [Abstract] | ||||
Percentage of revenue | 10.00% | 10.00% | 10.00% | |
Percentage of accounts receivable | 10.00% | 10.00% | ||
Revenue Recognition [Abstract] | ||||
Period of general payment term range considered collectability probable for revenue recognition (in days) | 30 days | |||
Warranties [Abstract] | ||||
Warranty period provided for software products and services (in months) | 3 months | |||
Maximum [Member] | ||||
Revenue Recognition [Abstract] | ||||
Period of general payment term range considered collectability probable for revenue recognition (in days) | 90 days | |||
Term license duration (in years) | 1 year | |||
Warranties [Abstract] | ||||
Warranty period provided for software products and services (in months) | 12 months | |||
Milbrook, Inc [Member] | ||||
Goodwill, Intangible Assets and Long Lived Assets Impairment [Abstract] | ||||
Goodwill | $ 9,200,000 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 639,921 | $ 619,983 |
Unrealized Gains | 101 | 164 |
Unrealized Losses | (228) | (215) |
Estimated Fair Value | 639,794 | 619,932 |
U.S. agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 82,946 | 94,048 |
Unrealized Gains | 21 | 30 |
Unrealized Losses | (4) | (21) |
Estimated Fair Value | 82,963 | 94,057 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 1,363 | |
Unrealized Gains | 0 | |
Unrealized Losses | (2) | |
Estimated Fair Value | 1,361 | |
Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 142,822 | 132,442 |
Unrealized Gains | 13 | 14 |
Unrealized Losses | (4) | (4) |
Estimated Fair Value | 142,831 | 132,452 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 281,942 | 297,731 |
Unrealized Gains | 47 | 104 |
Unrealized Losses | (216) | (182) |
Estimated Fair Value | 281,773 | 297,653 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 32,529 | 17,991 |
Unrealized Gains | 13 | 3 |
Unrealized Losses | (2) | (3) |
Estimated Fair Value | 32,540 | 17,991 |
Foreign government bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 8,663 | 2,755 |
Unrealized Gains | 7 | 0 |
Unrealized Losses | (2) | (1) |
Estimated Fair Value | 8,668 | 2,754 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 2,700 | 6,709 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Estimated Fair Value | 2,700 | 6,708 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 88,319 | 53,959 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 88,319 | 53,959 |
Municipal debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 12,985 | |
Unrealized Gains | 13 | |
Unrealized Losses | (1) | |
Estimated Fair Value | $ 12,997 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Details 2) $ in Thousands | Jul. 31, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | $ 266,567 |
Less than 12, Months, Gross Unrealized Losses | (228) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Gross Unrealized Losses | 0 |
Total, Fair Value | 266,567 |
Total, Gross Unrealized Losses | (228) |
U.S. government agencies [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | 18,749 |
Less than 12, Months, Gross Unrealized Losses | (4) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Gross Unrealized Losses | 0 |
Total, Fair Value | 18,749 |
Total, Gross Unrealized Losses | (4) |
Commercial paper [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | 31,975 |
Less than 12, Months, Gross Unrealized Losses | (4) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Gross Unrealized Losses | 0 |
Total, Fair Value | 31,975 |
Total, Gross Unrealized Losses | (4) |
Corporate bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | 202,791 |
Less than 12, Months, Gross Unrealized Losses | (216) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Gross Unrealized Losses | 0 |
Total, Fair Value | 202,791 |
Total, Gross Unrealized Losses | (216) |
US Treasury Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | 9,987 |
Less than 12, Months, Gross Unrealized Losses | (2) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Gross Unrealized Losses | 0 |
Total, Fair Value | 9,987 |
Total, Gross Unrealized Losses | (2) |
Foreign government bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | 3,065 |
Less than 12, Months, Gross Unrealized Losses | (2) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Gross Unrealized Losses | 0 |
Total, Fair Value | 3,065 |
Total, Gross Unrealized Losses | $ (2) |
Fair Value of Financial Instr31
Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | $ 533,677 | |
Expected maturities for the year ending July 31, 2016 | 106,117 | |
Estimated Fair Value | 639,794 | $ 619,932 |
U.S. agency securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 68,212 | |
Expected maturities for the year ending July 31, 2016 | 14,751 | |
Estimated Fair Value | 82,963 | 94,057 |
Asset-backed securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Estimated Fair Value | 1,361 | |
Commercial paper [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 142,831 | |
Expected maturities for the year ending July 31, 2016 | 0 | |
Estimated Fair Value | 142,831 | 132,452 |
Corporate bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 202,964 | |
Expected maturities for the year ending July 31, 2016 | 78,809 | |
Estimated Fair Value | 281,773 | 297,653 |
US Treasury Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 19,983 | |
Expected maturities for the year ending July 31, 2016 | 12,557 | |
Estimated Fair Value | 32,540 | 17,991 |
Foreign government bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 8,668 | |
Expected maturities for the year ending July 31, 2016 | 0 | |
Estimated Fair Value | 8,668 | 2,754 |
Certificates of Deposit [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 2,700 | |
Expected maturities for the year ending July 31, 2016 | 0 | |
Estimated Fair Value | 2,700 | 6,708 |
Money Market Funds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 88,319 | |
Expected maturities for the year ending July 31, 2016 | 0 | |
Estimated Fair Value | $ 88,319 | 53,959 |
Municipal debt securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Estimated Fair Value | $ 12,997 |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Details 4) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 639,794 | $ 619,932 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 88,319 | 53,959 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 551,475 | 565,973 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
U.S. agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 68,212 | 29,062 |
Long-term investments | 14,751 | 64,995 |
Total assets | 82,963 | 94,057 |
U.S. agency securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
U.S. agency securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 68,212 | 29,062 |
Long-term investments | 14,751 | 64,995 |
U.S. agency securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,361 | |
Long-term investments | 2,699 | |
Total assets | 1,361 | |
Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Long-term investments | 0 | |
Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,361 | |
Long-term investments | 2,699 | |
Asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Long-term investments | 0 | |
Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 86,085 | 66,293 |
Short-term investments | 56,746 | 66,159 |
Total assets | 142,831 | 132,452 |
Commercial paper [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Commercial paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 86,085 | 66,293 |
Short-term investments | 56,746 | 66,159 |
Commercial paper [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 202,964 | 172,648 |
Long-term investments | 78,809 | 125,005 |
Total assets | 281,773 | 297,653 |
Corporate bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 202,964 | 172,648 |
Long-term investments | 78,809 | 125,005 |
Corporate bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,700 | |
Total assets | 2,700 | 6,708 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,700 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 88,319 | 53,959 |
Total assets | 88,319 | 53,959 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 88,319 | 53,959 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Foreign government bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,668 | 4,009 |
Total assets | 8,668 | 2,754 |
Foreign government bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Foreign government bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,668 | 4,009 |
Foreign government bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Municipal debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 12,997 | |
Long-term investments | 2,754 | |
Total assets | 12,997 | |
Municipal debt securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Long-term investments | 0 | |
Municipal debt securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 12,997 | |
Long-term investments | 2,754 | |
Municipal debt securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Long-term investments | 0 | |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 19,983 | 9,995 |
Long-term investments | 12,557 | 7,996 |
Total assets | 32,540 | 17,991 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 19,983 | 9,995 |
Long-term investments | 12,557 | 7,996 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | $ 0 | $ 0 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details Textual) | Jul. 31, 2015investment |
Fair Value Disclosures [Abstract] | |
Investments in an unrealized loss positions (in investments) | 102 |
Balance Sheet Components (Detai
Balance Sheet Components (Details 1) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Property and equipment | ||
Computer hardware | $ 15,099 | $ 11,882 |
Software | 4,867 | 4,605 |
Furniture and fixtures | 3,065 | 2,732 |
Leasehold improvements | 8,040 | 7,069 |
Total property and equipment | 31,071 | 26,288 |
Less accumulated depreciation | (18,911) | (13,681) |
Property and equipment, net | $ 12,160 | $ 12,607 |
Balance Sheet Components (Det35
Balance Sheet Components (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning of Period | $ 9,205 | $ 9,048 |
Changes in carrying value | 0 | 157 |
Goodwill, End of Period | $ 9,205 | $ 9,205 |
Balance Sheet Components (Det36
Balance Sheet Components (Details 3) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 3,999 | |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 7,200 | $ 7,200 |
Accumulated amortization | (3,201) | (1,761) |
Total | $ 3,999 | $ 5,439 |
Balance Sheet Components (Det37
Balance Sheet Components (Details 4) $ in Thousands | Jul. 31, 2015USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
2,015 | $ 1,440 |
2,016 | 1,440 |
2,017 | 1,119 |
Total | $ 3,999 |
Balance Sheet Components (Det38
Balance Sheet Components (Details 5) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Accrued employee compensation | ||
Accrued bonuses | $ 19,819 | $ 19,213 |
Accrued commission | 5,008 | 3,593 |
Accrued vacation | 7,980 | 8,100 |
Accrued salaries, payroll taxes and benefits | 4,428 | 4,006 |
Total | $ 37,235 | $ 34,912 |
Balance Sheet Components (Det39
Balance Sheet Components (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | $ (1,367) | $ (1,574) |
Other comprehensive income (loss) before reclassification adjustments: | (5,058) | 239 |
Amounts reclassified from accumulated other comprehensive income (loss) to earnings | 44 | (39) |
Tax effect | 38 | 7 |
Balance at end of period | (6,343) | (1,367) |
Accumulated Translation Adjustment [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | (1,310) | (1,598) |
Other comprehensive income (loss) before reclassification adjustments: | (4,937) | 288 |
Amounts reclassified from accumulated other comprehensive income (loss) to earnings | 0 | 0 |
Tax effect | 0 | 0 |
Balance at end of period | (6,247) | (1,310) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | (57) | 24 |
Other comprehensive income (loss) before reclassification adjustments: | (121) | (49) |
Amounts reclassified from accumulated other comprehensive income (loss) to earnings | 44 | (39) |
Tax effect | 38 | 7 |
Balance at end of period | $ (96) | $ (57) |
Balance Sheet Components (Det40
Balance Sheet Components (Details Textual) - USD ($) | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Balance Sheet Components (Additional Textual) [Abstract] | |||
Property and equipment pledged as collateral | $ 0 | $ 0 | |
Depreciation expense | 6,000,000 | 5,300,000 | $ 4,500,000 |
Amortization of intangible assets | $ 1,400,000 | $ 1,400,000 | $ 300,000 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Numerator: | |||
Net income | $ 9,885 | $ 14,721 | $ 24,658 |
Net income per share: | |||
Basic (in USD per share) | $ 0.14 | $ 0.22 | $ 0.44 |
Diluted (in USD per share) | $ 0.14 | $ 0.21 | $ 0.40 |
Weighted average shares used in computing net income per share: | |||
Basic (in shares) | 70,075,908 | 65,748,896 | 56,331,018 |
Weighted average effect of diluted stock options (in shares) | 1,223,106 | 1,896,766 | 3,392,797 |
Weighted average effect of dilutive restricted stock units (in shares) | 1,015,419 | 1,467,071 | 1,845,380 |
Diluted (in shares) | 72,314,433 | 69,112,733 | 61,569,195 |
Net Income per Share (Details 1
Net Income per Share (Details 1) - shares | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Stock options to purchase common stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Outstanding shares of common stock equivalents (in shares) | 290,670 | 206,136 | 320,325 |
Restricted stock units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Outstanding shares of common stock equivalents (in shares) | 678 | 76,840 | 64,397 |
Commitments and Contingencies43
Commitments and Contingencies (Details) $ in Thousands | Jul. 31, 2015USD ($) | |
Lease Obligations | ||
2,015 | $ 6,195 | |
2,016 | 6,132 | |
2,017 | 5,883 | |
2,018 | 5,203 | |
2,019 | 175 | |
Total | 23,588 | |
Royalty Obligations | ||
2,015 | [1] | 697 |
2,016 | [1] | 560 |
2,017 | [1] | 151 |
2,018 | [1] | 0 |
2,019 | [1] | 0 |
Total | [1] | 1,408 |
Purchase Commitments | ||
2,015 | [2] | 9,107 |
2,016 | [2] | 1,812 |
2,017 | [2] | 199 |
2,018 | [2] | 0 |
2,019 | [2] | 0 |
Total | [2] | 11,118 |
Total | ||
2,015 | 15,999 | |
2,016 | 8,504 | |
2,017 | 6,233 | |
2,018 | 5,203 | |
2,019 | 175 | |
Total | $ 36,114 | |
[1] | Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements. | |
[2] | Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent non-cancellable commitments for which a penalty would be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement. |
Commitments and Contingencies44
Commitments and Contingencies (Details Textual) PLN in Millions | Dec. 05, 2011USD ($)ft² | Jul. 31, 2015USD ($)claimletter_of_credit | Jul. 31, 2014USD ($)claimletter_of_credit | Jul. 31, 2013USD ($) | Jul. 31, 2015PLNclaimletter_of_credit | Jul. 01, 2015USD ($) | Jun. 30, 2015USD ($) |
Commitments and contingencies (Textual) [Abstract] | |||||||
Duration of lease for a facility to serve as its corporate headquarters (in years) | 7 years | ||||||
Rentable area of current corporate headquarters (in square feet) | ft² | 97,674 | ||||||
Line of Credit Facility Maximum Borrowing Capacity | $ 2,700,000 | ||||||
Lease expense for all worldwide facilities and equipment | $ 5,500,000 | $ 5,800,000 | $ 5,300,000 | ||||
Number of Unsecured Credit Facilities Outstanding (in letters) | letter_of_credit | 2 | 2 | 2 | ||||
Unsecured letter of credit | PLN | PLN 10 | ||||||
Line of Credit Facility, Amount Outstanding | $ 0 | $ 0 | |||||
Outstanding claims | claim | 0 | 0 | 0 | ||||
Letter of Credit [Member] | |||||||
Commitments and contingencies (Textual) [Abstract] | |||||||
Line of Credit Facility Maximum Borrowing Capacity | $ 1,200,000 | $ 400,000 | $ 800,000 |
Stockholders' Equity and Stoc45
Stockholders' Equity and Stock-based Compensation (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Stock-based compensation expense | |||
Total stock-based compensation expense | $ 51,375 | $ 42,538 | $ 25,505 |
Tax benefit from stock-based compensation | 19,087 | 15,905 | 9,902 |
Total stock-based compensation expense, net of tax effect | 32,288 | 26,633 | 15,603 |
Cost of License Revenues [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 222 | 184 | 0 |
Cost of maintenance revenues [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 1,158 | 797 | 830 |
Cost of services revenues [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 15,022 | 11,929 | 6,910 |
Research and development [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 10,683 | 9,008 | 5,843 |
Sales and marketing [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 12,090 | 10,744 | 3,672 |
General and administrative [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | $ 12,200 | $ 9,876 | $ 8,250 |
Stockholders' Equity and Stoc46
Stockholders' Equity and Stock-based Compensation (Details 2) - Jul. 31, 2015 - USD ($) $ in Thousands | Total |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized Expense | $ 103,979 |
Restricted stock units RSUs [Member] | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized Expense | $ 98,772 |
Average Expected Recognition Period (in years) | 2 years 4 months 24 days |
Stock options [Member] | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized Expense | $ 5,207 |
Average Expected Recognition Period (in years) | 2 years 2 months 12 days |
Stockholders' Equity and Stoc47
Stockholders' Equity and Stock-based Compensation (Details 3) - Restricted stock units RSUs [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Number of RSUs Outstanding (in shares) | |||
Balance at beginning of period | 3,384,221 | 4,027,601 | 3,992,177 |
Granted | 1,664,413 | 1,667,433 | 2,024,221 |
Released | (1,819,825) | (2,007,423) | (1,623,182) |
Canceled | (346,135) | (303,390) | (365,615) |
Balance at end of period | 2,882,674 | 3,384,221 | 4,027,601 |
Weighted Average Grant Date Fair Value (in dollars per share) | |||
Balance at beginning of period | $ 30.70 | $ 19.27 | $ 8 |
Granted | 47.50 | 43.87 | 33.68 |
Released | 25.99 | 18.59 | 9.88 |
Canceled | 36.72 | 31.48 | 17.72 |
Balance at end of period | $ 42.65 | $ 30.70 | $ 19.27 |
Aggregate Intrinsic Value (1) | |||
Balance at beginning of period | $ 137,061 | $ 176,248 | $ 102,439 |
Released | 88,648 | 91,300 | 56,200 |
Balance at end of period | $ 170,222 | $ 137,061 | $ 176,248 |
Stockholders' Equity and Stoc48
Stockholders' Equity and Stock-based Compensation (Details 4) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | ||
Number of Stock Options Outstanding (in shares) | |||||
Balance at beginning of period | 2,400,253 | 3,763,228 | 6,486,641 | ||
Granted | 138,643 | 225,930 | 377,412 | ||
Exercised | (665,665) | (1,580,344) | (2,905,296) | ||
Canceled | (51,169) | (8,561) | (195,529) | ||
Balance at end of period | 1,822,062 | 2,400,253 | 3,763,228 | 6,486,641 | |
Vested and expected to vest as of July 31, 2015 | 1,806,380 | ||||
Exercisable as of July 31, 2015 | 1,515,927 | ||||
Weighted Average Exercise Price (in dollars per share) | |||||
Balance at beginning of period | $ 11.24 | $ 6.74 | $ 3.74 | ||
Granted | 47.23 | 46.63 | 32.36 | ||
Exercised | 9.46 | 5.53 | 3.12 | ||
Canceled | 23.04 | 21.75 | 10.55 | ||
Balance at end of period | 14.29 | $ 11.24 | $ 6.74 | $ 3.74 | |
Vested and expected to vest as of July 31, 2015 | 14.01 | ||||
Exercisable as of July 31, 2013 | $ 8.47 | ||||
Weighted Average Remaining Contractual Life (in years) | |||||
Weighted average remaining contractual life | 4 years 10 months 24 days | 5 years 5 months 29 days | 5 years 8 months 12 days | 6 years 1 month 6 days | |
Vested and expected to vest as of July 31, 2015 | 4 years 10 months 24 days | ||||
Exercisable as of July 31, 2015 | 4 years 2 months 12 days | ||||
Aggregate Intrinsic Value | |||||
Aggregate Intrinsic Value | [1] | $ 81,548 | $ 71,640 | $ 139,315 | $ 142,321 |
Exercised | 27,263 | $ 65,300 | $ 86,000 | ||
Vested and expected to vest as of July 31, 2015 | [1] | 81,351 | |||
Exercisable as of July 31, 2015 | [1] | $ 76,075 | |||
[1] | Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $59.05, $40.50 and $43.76 on July 31, 2015, 2014 and 2013 and the exercise price of the option, respectively. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. |
Stockholders' Equity and Stoc49
Stockholders' Equity and Stock-based Compensation (Details 6) - $ / shares | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Summary of assumptions for fair value of employee stock option estimates | |||
Risk-free interest rate, minimum (as a percent) | 1.70% | 1.50% | 0.60% |
Risk-free interest rate, maximum (as a percent) | 1.90% | 2.00% | 1.20% |
Expected volatility, minimum (as a percent) | 39.40% | 41.30% | 45.10% |
Expected volatility, maximum (as a percent) | 45.10% | 46.20% | 48.70% |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Weighted average grant date fair value of options granted (in dollars per share) | $ 20.78 | $ 21.06 | $ 14.06 |
Minimum [Member] | |||
Summary of assumptions for fair value of employee stock option estimates | |||
Expected life (in years) | 6 years | 5 years | 5 years 1 month 13 days |
Maximum [Member] | |||
Summary of assumptions for fair value of employee stock option estimates | |||
Expected life (in years) | 6 years 22 days | 6 years 22 days | 6 years 22 days |
Stockholders' Equity and Stoc50
Stockholders' Equity and Stock-based Compensation (Details 7) - shares | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Common Stock Reserved for Issuance (in shares) | ||||
Exercise of stock options to purchase common stock | 1,822,062 | 2,400,253 | 3,763,228 | 6,486,641 |
Shares available for grant under stock plans | 14,363,906 | 11,703,962 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 19,068,642 | 17,488,436 | ||
Stock options [Member] | ||||
Common Stock Reserved for Issuance (in shares) | ||||
Exercise of stock options to purchase common stock | 1,822,062 | 2,400,253 | ||
Restricted stock units RSUs [Member] | ||||
Common Stock Reserved for Issuance (in shares) | ||||
Vesting of restricted stock units | 2,882,674 | 3,384,221 | 4,027,601 | 3,992,177 |
Stockholders' Equity and Stoc51
Stockholders' Equity and Stock-based Compensation (Details Textual) - USD ($) | 12 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | Sep. 14, 2011 | |
Class of Stock [Line Items] | ||||
Share price (in dollars per share) | $ 59.05 | $ 40.50 | $ 43.76 | |
Fair value assumption dividend amount | $ 0 | |||
Restricted stock units RSUs [Member] | ||||
Class of Stock [Line Items] | ||||
Share Based Compensation Expense, Performance Based Awards | $ 2,400,000 | $ 1,600,000 | $ 1,700,000 | |
Stock Plan 2011 [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares authorized | 7,500,000 | |||
Maximum increase in percentage of outstanding number of shares of the Company's common stock (as a percent) | 5.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Company's income (loss) before provision for income taxes | |||
Income before provision for income taxes | $ 16,740 | $ 19,946 | $ 30,123 |
Domestic [Member] | |||
Company's income (loss) before provision for income taxes | |||
Income before provision for income taxes | 11,348 | 11,956 | 25,725 |
International [Member] | |||
Company's income (loss) before provision for income taxes | |||
Income before provision for income taxes | $ 5,392 | $ 7,990 | $ 4,398 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Current: | |||
U.S. federal | $ 2,509 | $ 5,235 | $ 1,296 |
State | 300 | 1,326 | 999 |
Foreign | 3,910 | 2,509 | 3,479 |
Total current | 6,719 | 9,070 | 5,774 |
Deferred: | |||
U.S. federal | 983 | (4,277) | (258) |
State | 169 | 78 | 483 |
Foreign | (1,016) | 354 | (534) |
Total deferred | 136 | (3,845) | (309) |
Total provision for income taxes | $ 6,855 | $ 5,225 | $ 5,465 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Effective Income Tax Reconciliation | |||
Statutory federal income tax | $ 5,858 | $ 6,977 | $ 10,538 |
Nondeductible items and other | 1,575 | 1,164 | (577) |
State income taxes, net of federal benefit | 388 | 840 | (858) |
Foreign income taxed at different rates | 816 | (207) | 1,405 |
Tax credits | (1,697) | (3,612) | (7,199) |
Change in valuation allowance | (85) | 63 | 2,156 |
Total provision for income taxes | $ 6,855 | $ 5,225 | $ 5,465 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Tax effects of temporary differences | ||
Accruals and reserves | $ 9,974 | $ 8,488 |
Stock-based compensation | 5,534 | 4,347 |
Deferred revenues | 410 | 1,485 |
Property and equipment | 914 | 298 |
Net operating loss carryforwards | 436 | 1,161 |
Tax credits | 10,435 | 11,699 |
Total deferred tax assets | 27,703 | 27,478 |
Less valuation allowance | 6,783 | 4,938 |
Net deferred tax assets | 20,920 | 22,540 |
Intangible assets | 1,179 | 1,701 |
Foreign deferred revenue | 0 | 727 |
Total net deferred tax assets | $ 19,741 | $ 20,112 |
Income Taxes (Details 4)
Income Taxes (Details 4) $ in Thousands | 12 Months Ended |
Jul. 31, 2015USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Research and Development Credits Carryforwards | $ 29,644 |
U.S. federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Research and Development Credits Carryforwards | 14,121 |
California [Member] | |
Operating Loss Carryforwards [Line Items] | |
Research and Development Credits Carryforwards | $ 15,523 |
Income Taxes (Details 5)
Income Taxes (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Summarizes the activity related to unrecognized tax benefits | |||
Unrecognized benefit - beginning of period | $ 7,976 | $ 6,727 | $ 3,937 |
Gross increases (decreases) - prior period tax positions | (2,895) | (368) | 370 |
Gross increases - current period tax positions | 1,028 | 1,617 | 2,420 |
Unrecognized benefit - end of period | $ 6,109 | $ 7,976 | $ 6,727 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Income Taxes (Additional Textual) [Abstract] | |||
Percentage of statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Valuation allowance | $ 6,783 | $ 4,938 | |
Undistributed earnings from certain foreign subsidiaries | 22,700 | ||
Unrecognized deferred tax liability | 7,800 | ||
Decrease in long term liability associated with unrecognized tax benefits | 1,900 | ||
Unrecognized tax benefits | 2,800 | ||
U.S. federal [Member] | |||
Income Taxes (Additional Textual) [Abstract] | |||
Operating Loss Carryforwards | $ 204,800 | ||
R&D Credits expiration dates | 2,023 | ||
Unrealized excess tax benefits resulting from exercises of stock options | $ 204,100 | ||
U.S. federal [Member] | Maximum [Member] | |||
Income Taxes (Additional Textual) [Abstract] | |||
Operating loss carryforwards, Expiration dates | Jul. 31, 2026 | ||
California [Member] | |||
Income Taxes (Additional Textual) [Abstract] | |||
Operating Loss Carryforwards | $ 113,000 | ||
Unrealized excess tax benefits resulting from exercises of stock options | $ 112,900 | ||
California [Member] | Minimum [Member] | |||
Income Taxes (Additional Textual) [Abstract] | |||
Operating loss carryforwards, Expiration dates | Jul. 31, 2016 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes (Additional Textual) [Abstract] | |||
Operating Loss Carryforwards | $ 7,000 |
Defined Contributions and Oth59
Defined Contributions and Other Postretirement Plans (Details Textual) - USD ($) | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Employee 401(k) Plan (Textual) [Abstract] | |||
Maximum Annual Contribution Per Employee, Percent | 60.00% | ||
Maximum Annual Contribution Per Employee, Amount | $ 4,000 | ||
Company's contributions | $ 4,300,000 | $ 3,200,000 | $ 1,800,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Revenues: | |||
Total revenues | $ 380,537 | $ 350,246 | $ 300,649 |
United States [Member] | |||
Revenues: | |||
Total revenues | 208,104 | 203,791 | 172,793 |
Canada [Member] | |||
Revenues: | |||
Total revenues | 37,833 | 39,100 | 42,632 |
Other Americas [Member] | |||
Revenues: | |||
Total revenues | 7,162 | 8,106 | 6,932 |
Americas [Member] | |||
Revenues: | |||
Total revenues | 253,099 | 250,997 | 222,357 |
United Kingdom [Member] | |||
Revenues: | |||
Total revenues | 44,393 | 37,890 | 20,660 |
Other EMEA [Member] | |||
Revenues: | |||
Total revenues | 47,449 | 35,149 | 27,543 |
EMEA [Member] | |||
Revenues: | |||
Total revenues | 91,842 | 73,039 | 48,203 |
APAC [Member] | |||
Revenues: | |||
Total revenues | $ 35,596 | $ 26,210 | $ 30,089 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Property and equipment, net by geographic region | ||
Property and equipment, net | $ 25,364 | $ 27,251 |
North America [Member] | ||
Property and equipment, net by geographic region | ||
Property and equipment, net | 22,746 | 25,573 |
Europe [Member] | ||
Property and equipment, net by geographic region | ||
Property and equipment, net | 2,183 | 950 |
Asia Pacific [Member] | ||
Property and equipment, net by geographic region | ||
Property and equipment, net | $ 435 | $ 728 |
Segment Information (Details Te
Segment Information (Details Textual) | 12 Months Ended | ||
Jul. 31, 2015customersegmentcountry | Jul. 31, 2014customercountry | Jul. 31, 2013customercountry | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | segment | 1 | ||
Number of Countries Concentration of Revenue | country | 0 | 0 | 0 |
Number of customers concentration of credit risk revenues | 0 | 0 | 0 |
Minimum [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |