Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jan. 31, 2016shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jan. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | Guidewire Software, Inc. |
Entity Central Index Key | 1,528,396 |
Entity Filer Category | Large Accelerated Filer |
Current Fiscal Year End Date | --07-31 |
Entity Common Stock, Shares Outstanding | 72,054,151 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 216,922 | $ 212,362 |
Short-term investments | 374,022 | 359,273 |
Accounts receivable | 59,392 | 62,062 |
Deferred tax assets, current | 0 | 13,845 |
Prepaid expenses and other current assets | 13,486 | 14,102 |
Total current assets | 663,822 | 661,644 |
Long-term investments | 109,820 | 106,117 |
Property and equipment, net | 13,040 | 12,160 |
Intangible assets, net | 3,279 | 3,999 |
Deferred tax assets, noncurrent | 21,430 | 5,896 |
Goodwill | 9,205 | 9,205 |
Other assets | 3,681 | 926 |
TOTAL ASSETS | 824,277 | 799,947 |
CURRENT LIABILITIES: | ||
Accounts payable | 7,259 | 8,816 |
Accrued employee compensation | 21,990 | 37,235 |
Deferred revenues, current | 57,796 | 50,766 |
Other current liabilities | 7,411 | 7,592 |
Total current liabilities | 94,456 | 104,409 |
Deferred revenues, noncurrent | 4,167 | 1,800 |
Other liabilities | 3,762 | 4,350 |
Total liabilities | 102,385 | 110,559 |
STOCKHOLDERS’ EQUITY: | ||
Common stock | 7 | 7 |
Additional paid-in capital | 697,628 | 662,869 |
Accumulated other comprehensive loss | (7,881) | (6,343) |
Accumulated deficit | 32,138 | 32,855 |
Total stockholders’ equity | 721,892 | 689,388 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 824,277 | $ 799,947 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Revenues : | ||||
License | $ 53,376 | $ 43,655 | $ 85,716 | $ 72,475 |
Maintenance | 14,256 | 12,163 | 28,269 | 24,683 |
Services | 34,497 | 33,628 | 70,424 | 72,022 |
Total revenues | 102,129 | 89,446 | 184,409 | 169,180 |
Cost of revenues: | ||||
License | 1,577 | 1,145 | 2,741 | 2,227 |
Maintenance | 2,636 | 2,271 | 5,111 | 4,513 |
Services | 30,688 | 30,664 | 62,219 | 63,111 |
Total cost of revenues | 34,901 | 34,080 | 70,071 | 69,851 |
Gross profit : | ||||
License | 51,799 | 42,510 | 82,975 | 70,248 |
Maintenance | 11,620 | 9,892 | 23,158 | 20,170 |
Services | 3,809 | 2,964 | 8,205 | 8,911 |
Total gross profit | 67,228 | 55,366 | 114,338 | 99,329 |
Operating expenses: | ||||
Research and development | 25,409 | 22,282 | 51,081 | 42,592 |
Sales and marketing | 22,661 | 20,176 | 41,952 | 37,705 |
General and administrative | 11,456 | 9,573 | 22,566 | 19,335 |
Total operating expenses | 59,526 | 52,031 | 115,599 | 99,632 |
Income (loss) from operations | 7,702 | 3,335 | (1,261) | (303) |
Interest income, net | 758 | 495 | 1,454 | 1,007 |
Other income (expense), net | (1,182) | (861) | (965) | (1,344) |
Income (loss) before income taxes | 7,278 | 2,969 | (772) | (640) |
Provision for (benefit from) income taxes | 6,365 | (1,007) | (55) | (1,619) |
Net income (loss) | $ 913 | $ 3,976 | $ (717) | $ 979 |
Earnings (loss) per share: | ||||
Basic | $ 0.01 | $ 0.06 | $ (0.01) | $ 0.01 |
Diluted | $ 0.01 | $ 0.06 | $ (0.01) | $ 0.01 |
Shares used in computing earnings (loss) per share: | ||||
Basic | 71,779,496 | 69,883,622 | 71,511,198 | 69,600,161 |
Diluted | 73,402,064 | 72,056,861 | 71,511,198 | 71,914,972 |
Condensed Consolidated Stateme4
Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 913 | $ 3,976 | $ (717) | $ 979 |
Foreign currency translation adjustments | (1,128) | (2,949) | (1,415) | (4,218) |
Unrealized gains (losses) on available-for-sale securities, net of tax benefit (expense) of $77 and $(64) for the three months ended January 31, 2016 and 2015, respectively; $73 and $(72) for the six months ended January 31, 2016 and 2015, respectively | (73) | 101 | (123) | 134 |
Reclassification adjustment for realized losses (gains) included in net income (loss) | 20 | (4) | 0 | (7) |
Other comprehensive loss | (1,181) | (2,852) | (1,538) | (4,091) |
Comprehensive income (loss) | $ (268) | $ 1,124 | $ (2,255) | $ (3,112) |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision on unrealized gains on available-for-sale securities | $ 77 | $ (64) | $ 73 | $ (72) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (717) | $ 979 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,542 | 3,621 |
Stock-based compensation | 31,692 | 25,486 |
Excess tax benefit from exercise of stock options and vesting of RSUs | (566) | 0 |
Deferred tax assets | (1,703) | (3,459) |
Amortization of premium on available-for-sale securities | 1,838 | 2,884 |
Loss on disposals of property and equipment | 23 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,221 | (12,775) |
Prepaid expenses and other assets | (2,308) | 1,727 |
Accounts payable | (1,391) | 817 |
Accrued employee compensation | (14,964) | (13,215) |
Other liabilities | (121) | 457 |
Deferred revenues | 9,484 | (2,455) |
Net cash provided by operating activities | 27,030 | 4,067 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of available-for-sale securities | (341,990) | (236,841) |
Sales of available-for-sale securities | 321,507 | 231,895 |
Purchase of property and equipment | (3,867) | (3,651) |
Net cash used in investing activities | (24,350) | (8,597) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock upon exercise of stock options | 3,989 | 3,859 |
Taxes remitted on RSU awards vested | (1,488) | (17,848) |
Excess tax benefit from exercise of stock options and vesting of RSUs | 566 | 0 |
Net cash provided by (used in) financing activities | 3,067 | (13,989) |
Effect of foreign exchange rate changes on cash and cash equivalents | (1,187) | (4,358) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 4,560 | (22,877) |
CASH AND CASH EQUIVALENTS—Beginning of period | 212,362 | 148,101 |
CASH AND CASH EQUIVALENTS—End of period | 216,922 | 125,224 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 1,225 | 1,521 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Accruals for purchase of property and equipment | $ 393 | $ 145 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies and Estimates | 6 Months Ended |
Jan. 31, 2016 | |
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 and Estimates Business 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, enables new insights into data that can improve business decision making and supports digital sales, service and claims experiences for policyholders, agents, and other key stakeholders. The Company’s customers include insurance carriers for property and casualty insurance. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and accompanying notes include the Company and its wholly-owned subsidiaries, and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All inter-company balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2015 . There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s consolidated financial statements for the fiscal year ended July 31, 2015 included in the Company’s Annual Report on Form 10-K. Use of Estimates The preparation of the accompanying condensed 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. Significant items subject to such estimates include, but are not limited to, revenue recognition, the useful lives of property and equipment and intangible assets, allowance for doubtful accounts, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties, valuation of goodwill and intangible assets, and contingencies. 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 significantly from these estimates. 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. 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 individually accounted for 10% or more of the Company’s revenues for the three and six months ended January 31, 2016 or 2015 . No customer individually accounted for 10% or more of the Company’s total accounts receivable as of January 31, 2016 or as of July 31, 2015 . 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 indirect taxes, such as sales tax and value added tax 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. Term and perpetual license fees are not considered to be fixed or determinable until they become due. Fees from term licenses are invoiced in annual or quarterly installments over the term of the agreement beginning on the effective date of the license. A significant majority are invoiced annually. Perpetual license fees are generally due between 30 and 60 days from delivery of software, however in certain cases extended payment terms may be offered. • 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. As noted above, the Company generally invoices fees for licenses and maintenance in annual or 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. 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 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. As described below in Recent Accounting Pronouncements, we adopted ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, effective January 31, 2016 on a prospective basis. As a result, all deferred tax assets and liabilities are classified as non-current as of January 31, 2016. Prior to the adoption, deferred tax assets and liabilities were classified as either current or non-current based on the related asset or liability. The effective tax rate in any given financial statement period may differ materially from the statutory rate. These differences may be caused by changes in the mix and level of income or losses, changes in the expected outcome of audits, change in tax regulations, 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 condensed consolidated statement of operations. Stock-Based Compensation The Company recognizes compensation expense related to its 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 4 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. Recent Accounting Pronouncements Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, Income Taxes (Subtopic 740-10) which provides guidance for balance sheet classification of deferred taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current on the balance sheet. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods with earlier application permitted as of the beginning of an interim or annual reporting period. The amendments in this update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We adopted this guidance on a prospective basis effective January 31, 2016 and accordingly, classified all deferred taxes as non-current on our balance sheet as of January 31, 2016. Under the prospective method, the prior period balance sheet was not retrospectively adjusted. 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 and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. 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 all the potential impacts that this guidance will have on our consolidated financial statements. We have, however, begun modifying the way we engage with customers to reduce the impact we currently believe is likely to occur under the new standard which will be effective in fiscal 2019. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jan. 31, 2016 | |
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: January 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (in thousands) U.S. agency securities $ 90,429 $ 3 $ (45 ) $ 90,387 Commercial paper 105,055 5 (5 ) 105,055 Corporate bonds 263,928 61 (320 ) 263,669 U.S. government bonds 87,412 28 (47 ) 87,393 Foreign government bonds 8,598 — (3 ) 8,595 Money market funds 93,897 — — 93,897 Non-marketable convertible note $ 5,000 $ — $ — $ 5,000 Total $ 654,319 $ 97 $ (420 ) $ 653,996 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 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: January 31, 2016 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) Commercial paper $ 28,408 $ (5 ) $ — $ — $ 28,408 $ (5 ) U.S. agency securities 77,388 (45 ) — — 77,388 (45 ) Corporate bonds 174,470 (320 ) — — 174,470 (320 ) U.S. government bonds 53,153 (47 ) — — 53,153 (47 ) Foreign government bonds 8,595 (3 ) — — 8,595 (3 ) Total $ 342,014 $ (420 ) $ — $ — $ 342,014 $ (420 ) As of January 31, 2016 , the Company had 121 investments in a gross unrealized loss position. The unrealized losses on its available-for-sale securities were primarily a result of 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 January 31, 2016 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 condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive loss. The amounts 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 not significant. The following table summarizes the contractual maturities of the Company’s investments measured at fair value as of January 31, 2016 : Less Than 12 Months 12 to 36 Months Total (in thousands) U.S. agency securities $ 79,777 $ 10,610 $ 90,387 Commercial paper 105,055 — 105,055 Corporate bonds 192,698 70,971 263,669 U.S. government bonds 64,154 23,239 87,393 Foreign government bonds 8,595 — 8,595 Money market funds 93,897 — 93,897 Non-marketable convertible note $ — $ 5,000 $ 5,000 Total $ 544,176 $ 109,820 $ 653,996 Fair Value Measurement 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 1 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. During December 2015, the Company invested $5 million in a convertible note issued by a privately-held company that does not have a readily determinable market value. The convertible note is recorded in long-term investments on the condensed consolidated balance sheet at fair value. The convertible note is classified within Level 3 as it is valued using significant unobservable inputs or data in an inactive market, and the valuation requires management judgment due to the absence of a market price and inherent lack of liquidity. As of January 31, 2016 , the carrying value of the convertible note approximated its fair value. The following table summarizes the changes in our Level 3 financial instrument: Available-for-Sale Debt Security (in thousands) Balance as of July 31, 2015 $ — Purchase 5,000 Sales — Balance as of January 31, 2016 $ 5,000 The following tables summarize the Company’s financial assets measured at fair value on a recurring basis, by level within the fair value hierarchy as of January 31, 2016 and July 31, 2015 : January 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents: Commercial paper $ — $ 76,257 $ — $ 76,257 Money market funds 93,897 — — 93,897 Short-term investments: U.S. agency securities — 79,777 — 79,777 Commercial paper — 28,798 — 28,798 Corporate bonds — 192,698 — 192,698 U.S. government bonds — 64,154 — 64,154 Foreign government bonds — 8,595 — 8,595 Long-term investments: U.S. agency securities — 10,609 — 10,609 U.S. government bonds — 23,240 — 23,240 Corporate bonds — 70,971 — 70,971 Non-marketable convertible note $ — $ — $ 5,000 $ 5,000 Total assets $ 93,897 $ 555,099 $ 5,000 $ 653,996 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 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jan. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, Net Property and equipment consist of the following: January 31, 2016 July 31, 2015 (in thousands) Computer hardware $ 17,788 $ 15,099 Software 4,146 4,867 Furniture and fixtures 3,283 3,065 Leasehold improvements 8,188 8,040 Total property and equipment 33,405 31,071 Less accumulated depreciation (20,365 ) (18,911 ) Property and equipment, net $ 13,040 $ 12,160 As of January 31, 2016 and July 31, 2015 , no property and equipment was pledged as collateral. Depreciation expense was $1.4 million and $2.8 million for the three and six months ended January 31, 2016 , respectively, and was $1.5 million and $2.9 million for the three and six months ended January 31, 2015 , respectively. Intangible Assets Intangible assets consist of the following: January 31, 2016 July 31, 2015 Acquired technology: (in thousands) Cost $ 7,200 $ 7,200 Accumulated amortization (3,921 ) (3,201 ) Intangible assets, net $ 3,279 $ 3,999 Amortization expense was $0.4 million for each of the three months ended January 31, 2016 and 2015 , and was $0.7 million for each of the six months ended January 31, 2016 and 2015 . Estimated aggregate amortization expense for each of the next three fiscal years is as follows: Future Amortization (in thousands) Fiscal year ending July 31, 2016 (remainder of fiscal year) 720 2017 1,440 2018 1,119 Total $ 3,279 Accrued Employee Compensation Accrued employee compensation consists of the following: January 31, 2016 July 31, 2015 (in thousands) Accrued bonuses $ 9,365 $ 19,819 Accrued commission 1,401 5,008 Accrued vacation 7,686 7,980 Accrued salaries, payroll taxes and benefits 3,538 4,428 Total $ 21,990 $ 37,235 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component during the six months ended January 31, 2016 were as follows: Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Available-for-Sale Securities Total (in thousands) Balance as of July 31, 2015 $ (6,247 ) $ (96 ) $ (6,343 ) Other comprehensive gain (loss) before reclassification (1,415 ) (196 ) (1,611 ) Amounts reclassified from accumulated other comprehensive loss to earnings — — — Tax effect — 73 73 Balance as of January 31, 2016 $ (7,662 ) $ (219 ) $ (7,881 ) |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share for the periods presented: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 (in thousands, except share and per share amounts) Numerator: Net income (loss) $ 913 $ 3,976 $ (717 ) $ 979 Net income (loss) per share: Basic $ 0.01 $ 0.06 $ (0.01 ) $ 0.01 Diluted $ 0.01 $ 0.06 $ (0.01 ) $ 0.01 Denominator: Weighted average shares used in computing net income (loss) per share: Basic 71,779,496 69,883,622 71,511,198 69,600,161 Diluted 73,402,064 72,056,861 71,511,198 71,914,972 The following weighted shares outstanding of potential common stock were excluded from the computation of diluted loss per share for the periods presented because including them would have been antidilutive: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Stock options to purchase common stock 77,975 302,569 1,574,949 296,894 Restricted stock units 283 2,250 3,346,340 28,611 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies There has been no material change in the Company’s contractual obligations and commitments other than in the ordinary course of business since the Company’s fiscal year ended July 31, 2015 . See the Annual Report on Form 10-K for the fiscal year ended July 31, 2015 for additional information regarding the Company’s contractual obligations. 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 corporate headquarters, located in Foster City, California, for approximately 97,674 square feet of space which commenced on August 1, 2012. In connection with this 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 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 $1.4 million and $ 2.8 million for the three and six months ended January 31, 2016 , respectively, and was $1.6 million and $3.2 million for the three and six months ended January 31, 2015 , respectively. Letters of Credit The Company had two outstanding letters of credit required to secure contractual commitments and prepayments as of January 31, 2016 and July 31, 2015 , 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 $2.5 million as of January 31, 2016 ) to secure contractual commitments and prepayments. No amounts were outstanding under the Company’s unsecured letters of credit as of January 31, 2016 or July 31, 2015 . Legal Proceedings From time to time, the Company is involved in various legal proceedings and receives claims, arising from the normal course of business activities. The Company accrues for estimated losses in the accompanying condensed 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 were outstanding as of January 31, 2016 or July 31, 2015 . 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 | 6 Months Ended |
Jan. 31, 2016 | |
Stockholders' Equity and Stock-based Compensation [Abstract] | |
Stockholders' Equity and Stock-based Compensation | Stockholders’ Equity and Stock-Based Compensation Stock-Based Compensation Expense Stock-based compensation expense related to stock-based awards is included in the Company’s condensed consolidated statements of operations as follows: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 (in thousands) Cost of license revenues $ 103 $ 55 $ 192 $ 104 Cost of maintenance revenues 380 309 719 586 Cost of services revenues 4,673 3,878 9,036 7,391 Research and development 3,911 2,662 7,583 4,805 Sales and marketing 3,616 3,442 7,046 6,429 General and administrative 3,862 3,152 7,116 6,171 Total stock-based compensation expenses $ 16,545 $ 13,498 $ 31,692 $ 25,486 As of January 31, 2016 , total unamortized stock-based compensation cost, adjusted for estimated forfeitures, was as follows: As of January 31, 2016 Unrecognized Expense Weighted Average Expected Recognition Period (in thousands) (in years) Stock options $ 3,793 2.0 Restricted stock units 125,456 2.6 $ 129,249 RSUs RSU activity under the Company’s equity incentive plans is as follows: RSUs Outstanding Number of RSUs Outstanding Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (1) Balance as of July 31, 2015 2,882,674 $ 42.65 $ 170,222 Granted 1,271,566 $ 54.49 Released (729,359 ) $ 38.72 $ 40,230 Canceled (199,060 ) $ 45.10 Balance as of January 31, 2016 3,225,821 $ 48.06 $ 177,549 Expected to vest as of January 31, 2016 2,989,088 $ 47.80 $ 164,519 (1) Aggregate intrinsic value at each period end represents the total market value of RSUs at the Company’s closing stock price of $55.04 and $59.05 on January 31, 2016 and July 31, 2015 , respectively. Aggregate intrinsic value for released RSUs represents the total market value of released RSUs at date of release. Stock Options Stock option activity under the Company’s equity incentive plans is as follows: Stock Options Outstanding 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, 2015 1,822,062 $ 14.29 4.9 $ 81,548 Granted 10,000 $ 54.00 Exercised (346,451 ) $ 11.51 $ 15,468 Canceled (20,658 ) $ 40.86 Balance as of January 31, 2016 1,464,953 $ 14.85 4.5 $ 58,878 Vested and expected to vest as of January 31, 2016 1,455,422 $ 14.63 4.5 $ 58,810 Exercisable as of January 31, 2016 1,242,275 $ 9.49 3.9 $ 56,584 (1) Aggregate intrinsic value at each period end represents the difference between the Company's closing stock prices of $55.04 and $59.05 on January 31, 2016 and July 31, 2015 , respectively, and the exercise price of outstanding options. 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 assumptions used to estimate the grant date fair value of options and the estimated weighted average grant date fair value of options for the six months ended January 31, 2016 and 2015 are as follows: Six Months Ended January 31, 2016 2015 Expected life (in years) 4.9 6.0 Risk-free interest rate 1.49% 1.92% Expected volatility 38.8% 45.1% Expected dividend yield —% —% Weighted average grant date fair value of options $19.18 $20.53 There were no options granted during the three months ended January 31, 2016 and 2015 . Beginning fiscal year 2016, the Company began estimating the expected term using a historical data method, instead of the simplified method, because it now has sufficient data to estimate the stock option exercise period based on its historical stock option activity and employee termination data. In addition, the Company began estimating the volatility using its own common stock data, instead of volatility of several comparable public listed peers, as the Company now has sufficient trading history of its stock. Common Stock Reserved for Issuance As of January 31, 2016 and July 31, 2015 , the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share, and 72,054,151 and 71,005,738 shares of common stock were issued and outstanding, respectively. As of January 31, 2016 and July 31, 2015 , the Company had reserved shares of common stock for future issuance as follows: January 31, 2016 July 31, 2015 Exercise of stock options to purchase common stock 1,464,953 1,822,062 Vesting of restricted stock units 3,225,821 2,882,674 Shares available under stock plans 16,928,044 14,363,906 Total common stock reserved for issuance 21,618,818 19,068,642 |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognized an income tax expense of $6.4 million and an income tax benefit of $0.1 million for the three and six months ended January 31, 2016 , and income tax benefits of $1.0 million and $1.6 million for the three and six months ended January 31, 2015, respectively. The effective tax rates of 87.5% and 7.1% for the three and six months ended January 31, 2016 differ from the statutory U.S. federal income tax rate of 35% mainly due to incentive stock options tax deductions, permanent differences for stock-based compensation, the impact of state income taxes, the tax rate differences between the United States and foreign countries, and research and development credits. 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 January 31, 2016 , U.S. income taxes were not provided for on the cumulative total of $31.0 million undistributed earnings from certain foreign subsidiaries. As of January 31, 2016 , the unrecognized deferred tax liability for these earnings was approximately $10.2 million . During the six months ended January 31, 2016 , the decrease in unrecognized tax benefits from the beginning of the period was $0.9 million . Accordingly, as of January 31, 2016 , the Company had unrecognized tax benefits of $3.9 million that, if recognized, would affect the Company’s effective tax rate. |
Segment Information
Segment Information | 6 Months Ended |
Jan. 31, 2016 | |
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: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 (in thousands) United States $ 62,078 $ 43,928 $ 105,185 $ 82,876 Canada 7,091 10,830 16,149 19,217 Other Americas 2,178 2,755 4,627 4,613 Total Americas 71,347 57,513 125,961 106,706 United Kingdom 11,973 11,815 21,660 24,013 Other EMEA 5,303 8,838 12,178 20,627 Total EMEA 17,276 20,653 33,838 44,640 Total APAC 13,506 11,280 24,610 17,834 Total revenues $ 102,129 $ 89,446 $ 184,409 $ 169,180 No country, other than those presented above, accounted for more than 10% of revenues during the three and six months ended January 31, 2016 and 2015 , respectively. The following table sets forth the Company’s long-lived assets, including intangibles and goodwill, net by geographic region: January 31, 2016 July 31, 2015 (in thousands) Americas $ 22,733 $ 22,746 EMEA 2,429 2,183 APAC 362 435 Total $ 25,524 $ 25,364 |
The Company and Summary of Si15
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 6 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Business 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, enables new insights into data that can improve business decision making and supports digital sales, service and claims experiences for policyholders, agents, and other key stakeholders. The Company’s customers include insurance carriers for property and casualty insurance. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements and accompanying notes include the Company and its wholly-owned subsidiaries, and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All inter-company balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2015 . There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s consolidated financial statements for the fiscal year ended July 31, 2015 included in the Company’s Annual Report on Form 10-K. |
Use of Estimates | Use of Estimates The preparation of the accompanying condensed 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. Significant items subject to such estimates include, but are not limited to, revenue recognition, the useful lives of property and equipment and intangible assets, allowance for doubtful accounts, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties, valuation of goodwill and intangible assets, and contingencies. 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 significantly from these estimates. |
Cash. Cash Equivalents and Investments | 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. |
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”). |
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 indirect taxes, such as sales tax and value added tax 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. Term and perpetual license fees are not considered to be fixed or determinable until they become due. Fees from term licenses are invoiced in annual or quarterly installments over the term of the agreement beginning on the effective date of the license. A significant majority are invoiced annually. Perpetual license fees are generally due between 30 and 60 days from delivery of software, however in certain cases extended payment terms may be offered. • 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. |
Deferred Revenues | As noted above, the Company generally invoices fees for licenses and maintenance in annual or 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. |
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 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. As described below in Recent Accounting Pronouncements, we adopted ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, effective January 31, 2016 on a prospective basis. As a result, all deferred tax assets and liabilities are classified as non-current as of January 31, 2016. Prior to the adoption, deferred tax assets and liabilities were classified as either current or non-current based on the related asset or liability. The effective tax rate in any given financial statement period may differ materially from the statutory rate. These differences may be caused by changes in the mix and level of income or losses, changes in the expected outcome of audits, change in tax regulations, 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 condensed consolidated statement of operations. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense related to its 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 4 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. |
Recent Accounting Pronouncement | Recent Accounting Pronouncements Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, Income Taxes (Subtopic 740-10) which provides guidance for balance sheet classification of deferred taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current on the balance sheet. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods with earlier application permitted as of the beginning of an interim or annual reporting period. The amendments in this update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We adopted this guidance on a prospective basis effective January 31, 2016 and accordingly, classified all deferred taxes as non-current on our balance sheet as of January 31, 2016. Under the prospective method, the prior period balance sheet was not retrospectively adjusted. 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 and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. 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 all the potential impacts that this guidance will have on our consolidated financial statements. We have, however, begun modifying the way we engage with customers to reduce the impact we currently believe is likely to occur under the new standard which will be effective in fiscal 2019. |
Fair Value of Financial Instr16
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | investments within cash equivalents and investments consist of the following: January 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (in thousands) U.S. agency securities $ 90,429 $ 3 $ (45 ) $ 90,387 Commercial paper 105,055 5 (5 ) 105,055 Corporate bonds 263,928 61 (320 ) 263,669 U.S. government bonds 87,412 28 (47 ) 87,393 Foreign government bonds 8,598 — (3 ) 8,595 Money market funds 93,897 — — 93,897 Non-marketable convertible note $ 5,000 $ — $ — $ 5,000 Total $ 654,319 $ 97 $ (420 ) $ 653,996 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 |
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: January 31, 2016 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) Commercial paper $ 28,408 $ (5 ) $ — $ — $ 28,408 $ (5 ) U.S. agency securities 77,388 (45 ) — — 77,388 (45 ) Corporate bonds 174,470 (320 ) — — 174,470 (320 ) U.S. government bonds 53,153 (47 ) — — 53,153 (47 ) Foreign government bonds 8,595 (3 ) — — 8,595 (3 ) Total $ 342,014 $ (420 ) $ — $ — $ 342,014 $ (420 ) |
Investments Classified by Contractual Maturity Date | The following table summarizes the contractual maturities of the Company’s investments measured at fair value as of January 31, 2016 : Less Than 12 Months 12 to 36 Months Total (in thousands) U.S. agency securities $ 79,777 $ 10,610 $ 90,387 Commercial paper 105,055 — 105,055 Corporate bonds 192,698 70,971 263,669 U.S. government bonds 64,154 23,239 87,393 Foreign government bonds 8,595 — 8,595 Money market funds 93,897 — 93,897 Non-marketable convertible note $ — $ 5,000 $ 5,000 Total $ 544,176 $ 109,820 $ 653,996 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in our Level 3 financial instrument: Available-for-Sale Debt Security (in thousands) Balance as of July 31, 2015 $ — Purchase 5,000 Sales — Balance as of January 31, 2016 $ 5,000 |
Fair Value, Assets Measured on Recurring Basis | The following tables summarize the Company’s financial assets measured at fair value on a recurring basis, by level within the fair value hierarchy as of January 31, 2016 and July 31, 2015 : January 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents: Commercial paper $ — $ 76,257 $ — $ 76,257 Money market funds 93,897 — — 93,897 Short-term investments: U.S. agency securities — 79,777 — 79,777 Commercial paper — 28,798 — 28,798 Corporate bonds — 192,698 — 192,698 U.S. government bonds — 64,154 — 64,154 Foreign government bonds — 8,595 — 8,595 Long-term investments: U.S. agency securities — 10,609 — 10,609 U.S. government bonds — 23,240 — 23,240 Corporate bonds — 70,971 — 70,971 Non-marketable convertible note $ — $ — $ 5,000 $ 5,000 Total assets $ 93,897 $ 555,099 $ 5,000 $ 653,996 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 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Property and equipment | Property and equipment consist of the following: January 31, 2016 July 31, 2015 (in thousands) Computer hardware $ 17,788 $ 15,099 Software 4,146 4,867 Furniture and fixtures 3,283 3,065 Leasehold improvements 8,188 8,040 Total property and equipment 33,405 31,071 Less accumulated depreciation (20,365 ) (18,911 ) Property and equipment, net $ 13,040 $ 12,160 |
Goodwill and Intangible Assets | Intangible assets consist of the following: January 31, 2016 July 31, 2015 Acquired technology: (in thousands) Cost $ 7,200 $ 7,200 Accumulated amortization (3,921 ) (3,201 ) Intangible assets, net $ 3,279 $ 3,999 |
Future Amortization Expense | Estimated aggregate amortization expense for each of the next three fiscal years is as follows: Future Amortization (in thousands) Fiscal year ending July 31, 2016 (remainder of fiscal year) 720 2017 1,440 2018 1,119 Total $ 3,279 |
Accrued Employee Compensation | Accrued employee compensation consists of the following: January 31, 2016 July 31, 2015 (in thousands) Accrued bonuses $ 9,365 $ 19,819 Accrued commission 1,401 5,008 Accrued vacation 7,686 7,980 Accrued salaries, payroll taxes and benefits 3,538 4,428 Total $ 21,990 $ 37,235 |
Components of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss by component during the six months ended January 31, 2016 were as follows: Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Available-for-Sale Securities Total (in thousands) Balance as of July 31, 2015 $ (6,247 ) $ (96 ) $ (6,343 ) Other comprehensive gain (loss) before reclassification (1,415 ) (196 ) (1,611 ) Amounts reclassified from accumulated other comprehensive loss to earnings — — — Tax effect — 73 73 Balance as of January 31, 2016 $ (7,662 ) $ (219 ) $ (7,881 ) |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
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 (loss) per share for the periods presented: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 (in thousands, except share and per share amounts) Numerator: Net income (loss) $ 913 $ 3,976 $ (717 ) $ 979 Net income (loss) per share: Basic $ 0.01 $ 0.06 $ (0.01 ) $ 0.01 Diluted $ 0.01 $ 0.06 $ (0.01 ) $ 0.01 Denominator: Weighted average shares used in computing net income (loss) per share: Basic 71,779,496 69,883,622 71,511,198 69,600,161 Diluted 73,402,064 72,056,861 71,511,198 71,914,972 |
Schedule of Antidilutive Securities excluded from EPS | The following weighted shares outstanding of potential common stock were excluded from the computation of diluted loss per share for the periods presented because including them would have been antidilutive: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Stock options to purchase common stock 77,975 302,569 1,574,949 296,894 Restricted stock units 283 2,250 3,346,340 28,611 |
Stockholders' Equity and Stoc19
Stockholders' Equity and Stock-based Compensation (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Stockholders' Equity and Stock-based Compensation [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense related to stock-based awards is included in the Company’s condensed consolidated statements of operations as follows: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 (in thousands) Cost of license revenues $ 103 $ 55 $ 192 $ 104 Cost of maintenance revenues 380 309 719 586 Cost of services revenues 4,673 3,878 9,036 7,391 Research and development 3,911 2,662 7,583 4,805 Sales and marketing 3,616 3,442 7,046 6,429 General and administrative 3,862 3,152 7,116 6,171 Total stock-based compensation expenses $ 16,545 $ 13,498 $ 31,692 $ 25,486 |
Unrecognized compensation cost, adjusted for estimated forfeitures | As of January 31, 2016 , total unamortized stock-based compensation cost, adjusted for estimated forfeitures, was as follows: As of January 31, 2016 Unrecognized Expense Weighted Average Expected Recognition Period (in thousands) (in years) Stock options $ 3,793 2.0 Restricted stock units 125,456 2.6 $ 129,249 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | RSU activity under the Company’s equity incentive plans is as follows: RSUs Outstanding Number of RSUs Outstanding Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (1) Balance as of July 31, 2015 2,882,674 $ 42.65 $ 170,222 Granted 1,271,566 $ 54.49 Released (729,359 ) $ 38.72 $ 40,230 Canceled (199,060 ) $ 45.10 Balance as of January 31, 2016 3,225,821 $ 48.06 $ 177,549 Expected to vest as of January 31, 2016 2,989,088 $ 47.80 $ 164,519 |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity under the Company’s equity incentive plans is as follows: Stock Options Outstanding 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, 2015 1,822,062 $ 14.29 4.9 $ 81,548 Granted 10,000 $ 54.00 Exercised (346,451 ) $ 11.51 $ 15,468 Canceled (20,658 ) $ 40.86 Balance as of January 31, 2016 1,464,953 $ 14.85 4.5 $ 58,878 Vested and expected to vest as of January 31, 2016 1,455,422 $ 14.63 4.5 $ 58,810 Exercisable as of January 31, 2016 1,242,275 $ 9.49 3.9 $ 56,584 (1) Aggregate intrinsic value at each period end represents the difference between the Company's closing stock prices of $55.04 and $59.05 on January 31, 2016 and July 31, 2015 , respectively, and the exercise price of outstanding options. |
Black-Scholes valuation assumptions | The assumptions used to estimate the grant date fair value of options and the estimated weighted average grant date fair value of options for the six months ended January 31, 2016 and 2015 are as follows: Six Months Ended January 31, 2016 2015 Expected life (in years) 4.9 6.0 Risk-free interest rate 1.49% 1.92% Expected volatility 38.8% 45.1% Expected dividend yield —% —% Weighted average grant date fair value of options $19.18 $20.53 |
Common Stock Reserved for Issuance | As of January 31, 2016 and July 31, 2015 , the Company had reserved shares of common stock for future issuance as follows: January 31, 2016 July 31, 2015 Exercise of stock options to purchase common stock 1,464,953 1,822,062 Vesting of restricted stock units 3,225,821 2,882,674 Shares available under stock plans 16,928,044 14,363,906 Total common stock reserved for issuance 21,618,818 19,068,642 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenues by country | The following table sets forth revenues by country and region based on the billing address of the customer: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 (in thousands) United States $ 62,078 $ 43,928 $ 105,185 $ 82,876 Canada 7,091 10,830 16,149 19,217 Other Americas 2,178 2,755 4,627 4,613 Total Americas 71,347 57,513 125,961 106,706 United Kingdom 11,973 11,815 21,660 24,013 Other EMEA 5,303 8,838 12,178 20,627 Total EMEA 17,276 20,653 33,838 44,640 Total APAC 13,506 11,280 24,610 17,834 Total revenues $ 102,129 $ 89,446 $ 184,409 $ 169,180 |
Property and equipment, net by geographic region | The following table sets forth the Company’s long-lived assets, including intangibles and goodwill, net by geographic region: January 31, 2016 July 31, 2015 (in thousands) Americas $ 22,733 $ 22,746 EMEA 2,429 2,183 APAC 362 435 Total $ 25,524 $ 25,364 |
The Company and Summary of Si21
The Company and Summary of Significant Accounting Policies and Estimates (Details Textual) - customer | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jul. 31, 2015 | |
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | ||||
Number of Customers Concentration Of Credit Risk | 0 | 0 | ||
Percentage of Revenue | 10.00% | 10.00% | ||
Number of Customers Concentration of Credit Risk Receivables | 0 | 0 | 0 | |
Percentage of accounts receivable | 10.00% | 10.00% | 10.00% | |
Restricted Stock Units (RSUs) | ||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | ||||
Period of RSUs time based Vesting | 4 years | |||
Stock Options | ||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | ||||
Period of expiration for share based payment awards | 10 years | |||
Minimum | ||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | ||||
Range of General Payment Terms | 30 days | |||
Maximum | ||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | ||||
Range of General Payment Terms | 90 days |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 654,319 | $ 639,921 |
Unrealized Gains | 97 | 101 |
Unrealized Losses | (420) | (228) |
Total assets | 653,996 | 639,794 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 90,429 | 82,946 |
Unrealized Gains | 3 | 21 |
Unrealized Losses | (45) | (4) |
Total assets | 90,387 | 82,963 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 105,055 | 142,822 |
Unrealized Gains | 5 | 13 |
Unrealized Losses | (5) | (4) |
Total assets | 105,055 | 142,831 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 263,928 | 281,942 |
Unrealized Gains | 61 | 47 |
Unrealized Losses | (320) | (216) |
Total assets | 263,669 | 281,773 |
U.S. government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 87,412 | 32,529 |
Unrealized Gains | 28 | 13 |
Unrealized Losses | (47) | (2) |
Total assets | 87,393 | 32,540 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 8,598 | 8,663 |
Unrealized Gains | 0 | 7 |
Unrealized Losses | (3) | (2) |
Total assets | 8,595 | 8,668 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 2,700 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Total assets | 2,700 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 93,897 | 88,319 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Total assets | 93,897 | $ 88,319 |
Non-marketable convertible note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 5,000 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Total assets | $ 5,000 |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Details 2) $ in Thousands | Jan. 31, 2016USD ($)investment |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | $ 342,014 |
Less than 12 Months, Aggregate Losses | (420) |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 342,014 |
Aggregate Losses | $ (420) |
Number of Positions | investment | 121 |
Commercial paper | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | $ 28,408 |
Less than 12 Months, Aggregate Losses | (5) |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 28,408 |
Aggregate Losses | (5) |
U.S. agency securities | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | 77,388 |
Less than 12 Months, Aggregate Losses | (45) |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 77,388 |
Aggregate Losses | (45) |
Corporate bonds | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | 174,470 |
Less than 12 Months, Aggregate Losses | (320) |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 174,470 |
Aggregate Losses | (320) |
U.S. government bonds | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | 53,153 |
Less than 12 Months, Aggregate Losses | (47) |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 53,153 |
Aggregate Losses | (47) |
Foreign government bonds | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |
Less than Twelve Months, Fair Value | 8,595 |
Less than 12 Months, Aggregate Losses | (3) |
Twelve Months or Longer, Fair Value | 0 |
12 Months or Longer, Aggregate Losses | 0 |
Fair Value | 8,595 |
Aggregate Losses | $ (3) |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than 12 Months | $ 544,176 | |
12 Months or Greater | 109,820 | |
Estimated Fair Value | 653,996 | $ 639,794 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than 12 Months | 79,777 | |
12 Months or Greater | 10,610 | |
Estimated Fair Value | 90,387 | 82,963 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than 12 Months | 105,055 | |
12 Months or Greater | 0 | |
Estimated Fair Value | 105,055 | 142,831 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than 12 Months | 192,698 | |
12 Months or Greater | 70,971 | |
Estimated Fair Value | 263,669 | 281,773 |
U.S. government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than 12 Months | 64,154 | |
12 Months or Greater | 23,239 | |
Estimated Fair Value | 87,393 | 32,540 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than 12 Months | 8,595 | |
12 Months or Greater | 0 | |
Estimated Fair Value | 8,595 | 8,668 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than 12 Months | 93,897 | |
12 Months or Greater | 0 | |
Estimated Fair Value | 93,897 | $ 88,319 |
Non-marketable convertible note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than 12 Months | 0 | |
12 Months or Greater | 5,000 | |
Estimated Fair Value | $ 5,000 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments (Details 4) $ in Thousands | 6 Months Ended |
Jan. 31, 2016USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 0 |
Purchase | 5,000 |
Sales | 0 |
Ending balance | 5,000 |
Long-term Investments | Non-marketable convertible note | Level 3 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Payment to acquire convertible notes | $ 5,000 |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Details 5) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 653,996 | $ 639,794 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 93,897 | 88,319 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 555,099 | 551,475 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 5,000 | 0 |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 79,777 | 68,212 |
Long-term investments: | 10,609 | 14,751 |
Total assets | 90,387 | 82,963 |
U.S. agency securities | Level 1 | ||
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 | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 79,777 | 68,212 |
Long-term investments: | 10,609 | 14,751 |
U.S. agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Long-term investments: | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 28,798 | 56,746 |
Total assets | 105,055 | 142,831 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 28,798 | 56,746 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
U.S. government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 64,154 | 19,983 |
Long-term investments: | 23,240 | 12,557 |
Total assets | 87,393 | 32,540 |
U.S. government bonds | Level 1 | ||
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. government bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 64,154 | 19,983 |
Long-term investments: | 23,240 | 12,557 |
U.S. government bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Long-term investments: | 0 | 0 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 8,595 | 8,668 |
Total assets | 8,595 | 8,668 |
Foreign government bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Foreign government bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 8,595 | 8,668 |
Foreign government bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 192,698 | 202,964 |
Long-term investments: | 70,971 | 78,809 |
Total assets | 263,669 | 281,773 |
Corporate bonds | Level 1 | ||
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 | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 192,698 | 202,964 |
Long-term investments: | 70,971 | 78,809 |
Corporate bonds | Level 3 | ||
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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 2,700 | |
Total assets | 2,700 | |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | |
Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 2,700 | |
Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments: | 0 | |
Non-marketable convertible note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments: | 5,000 | |
Total assets | 5,000 | |
Non-marketable convertible note | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments: | 0 | |
Non-marketable convertible note | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments: | 0 | |
Non-marketable convertible note | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments: | 5,000 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 76,257 | 86,085 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 76,257 | 86,085 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 93,897 | 88,319 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 93,897 | 88,319 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents: | $ 0 | $ 0 |
Balance Sheet Components (Detai
Balance Sheet Components (Details 1) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Computer hardware | $ 17,788 | $ 15,099 |
Software | 4,146 | 4,867 |
Furniture and fixtures | 3,283 | 3,065 |
Leasehold improvements | 8,188 | 8,040 |
Total property and equipment | 33,405 | 31,071 |
Less accumulated depreciation | (20,365) | (18,911) |
Property, Plant and Equipment, Net | $ 13,040 | $ 12,160 |
Balance Sheet Components (Det28
Balance Sheet Components (Details 2) $ in Thousands | Jan. 31, 2016USD ($) |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 9,205 |
Balance at end of period | $ 9,205 |
Balance Sheet Components (Det29
Balance Sheet Components (Details 3) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 3,279 | |
Acquired Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 7,200 | $ 7,200 |
Accumulated amortization | (3,921) | (3,201) |
Intangible assets, net | $ 3,279 | $ 3,999 |
Balance Sheet Components (Det30
Balance Sheet Components (Details 4) $ in Thousands | Jan. 31, 2016USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
2016 (remainder of fiscal year) | $ 720 |
2,017 | 1,440 |
2,018 | 1,119 |
Intangible assets, net | $ 3,279 |
Balance Sheet Components (Det31
Balance Sheet Components (Details 5) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued bonuses | $ 9,365 | $ 19,819 |
Accrued commission | 1,401 | 5,008 |
Accrued vacation | 7,686 | 7,980 |
Accrued salaries, payroll taxes and benefits | 3,538 | 4,428 |
Total | $ 21,990 | $ 37,235 |
Balance Sheet Components (Det32
Balance Sheet Components (Details 6) $ in Thousands | 6 Months Ended |
Jan. 31, 2016USD ($) | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | $ (6,343) |
Other comprehensive gain (loss) before reclassification | (1,611) |
Amounts reclassified from accumulated other comprehensive loss to earnings | 0 |
Tax effect | 73 |
Balance at end of period | (7,881) |
Accumulated Translation Adjustment [Member] | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | (6,247) |
Other comprehensive gain (loss) before reclassification | (1,415) |
Amounts reclassified from accumulated other comprehensive loss to earnings | 0 |
Tax effect | 0 |
Balance at end of period | (7,662) |
Available-for-sale Securities [Member] | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | (96) |
Other comprehensive gain (loss) before reclassification | (196) |
Amounts reclassified from accumulated other comprehensive loss to earnings | 0 |
Tax effect | 73 |
Balance at end of period | $ (219) |
Balance Sheet Components (Det33
Balance Sheet Components (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jul. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Property and equipment pledged as collateral | $ 0 | $ 0 | $ 0 | ||
Depreciation | 1,400,000 | $ 1,500,000 | 2,800,000 | $ 2,900,000 | |
Amortization expense | $ 360,000 | $ 360,000 | $ 720,000 | $ 720,000 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Numerator: | ||||
Net income (loss) | $ 913 | $ 3,976 | $ (717) | $ 979 |
Net income (loss) per share: | ||||
Basic | $ 0.01 | $ 0.06 | $ (0.01) | $ 0.01 |
Diluted | $ 0.01 | $ 0.06 | $ (0.01) | $ 0.01 |
Weighted average shares used in computing net income (loss) per share: | ||||
Basic | 71,779,496 | 69,883,622 | 71,511,198 | 69,600,161 |
Diluted | 73,402,064 | 72,056,861 | 71,511,198 | 71,914,972 |
Net Income (Loss) Per Share (35
Net Income (Loss) Per Share (Details 2) - shares | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stock options to purchase common stock | ||||
Net Income (Loss) Per Share (Textual) [Abstract] | ||||
Schedule of antidilutive securities excluded from EPS | 77,975 | 302,569 | 1,574,949 | 296,894 |
Restricted stock units | ||||
Net Income (Loss) Per Share (Textual) [Abstract] | ||||
Schedule of antidilutive securities excluded from EPS | 283 | 2,250 | 3,346,340 | 28,611 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2016PLNft²letter_of_credit | Jan. 31, 2016USD ($)ft²letter_of_credit | Aug. 01, 2012USD ($) | |
Line of Credit Facility [Line Items] | |||||||
Duration of lease for a facility to serve as its corporate headquarters | 7 years | ||||||
Rentable area of current corporate headquarters | ft² | 97,674 | 97,674 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | PLN | PLN 10,000,000 | ||||||
Lease expense for all worldwide facilities and equipment | $ 1.4 | $ 1.6 | $ 2.8 | $ 3.2 | |||
Number of Unsecured Credit Facilities Outstanding | letter_of_credit | 2 | 2 | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 2.5 | ||||||
Line of Credit Associated With Operating Lease | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1.2 |
Stockholders' Equity and Stoc37
Stockholders' Equity and Stock-based Compensation (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expenses | $ 16,545 | $ 13,498 | $ 31,692 | $ 25,486 |
Unrecognized Expense | 129,249 | 129,249 | ||
Cost of license revenues | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expenses | 103 | 55 | 192 | 104 |
Cost of maintenance revenues | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expenses | 380 | 309 | 719 | 586 |
Cost of services revenues | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expenses | 4,673 | 3,878 | 9,036 | 7,391 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expenses | 3,911 | 2,662 | 7,583 | 4,805 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expenses | 3,616 | 3,442 | 7,046 | 6,429 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expenses | 3,862 | $ 3,152 | 7,116 | $ 6,171 |
Stock Options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Unrecognized Expense | 3,793 | $ 3,793 | ||
Average Expected Recognition Period | 2 years | |||
Restricted Stock Units (RSUs) | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Unrecognized Expense | $ 125,456 | $ 125,456 | ||
Average Expected Recognition Period | 2 years 7 months 6 days |
Stockholders' Equity and Stoc38
Stockholders' Equity and Stock-based Compensation (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jul. 31, 2015 | ||
Number of Stock Options Outstanding | |||||
Balance at beginning of period | 1,822,062 | ||||
Granted | 0 | 0 | 10,000 | ||
Exercised | (346,451) | ||||
Canceled | (20,658) | ||||
Balance at end of period | 1,464,953 | 1,464,953 | 1,822,062 | ||
Vested and expected to vest as of January 31, 2016 | 1,455,422 | 1,455,422 | |||
Exercisable as of January 31, 2016 | 1,242,275 | 1,242,275 | |||
Weighted Average Exercise Price | |||||
Balance at beginning of period | $ 14.29 | ||||
Granted | 54 | ||||
Exercised | 11.51 | ||||
Canceled | 40.86 | ||||
Balance at end of period | $ 14.85 | 14.85 | $ 14.29 | ||
Vested and expected to vest as of January 31, 2016 | 14.63 | 14.63 | |||
Exercisable as of January 31, 2016 | $ 9.49 | $ 9.49 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Weighted Average Remaining Contractual Life | 4 years 6 months | 4 years 10 months 24 days | |||
Vested and expected to vest as of January 31, 2016 | 4 years 6 months | ||||
Exercisable as of January 31, 2016 | 3 years 10 months 24 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Aggregate Intrinsic Value [Abstract] | |||||
Aggregate intrinsic value | [1] | $ 58,878 | $ 58,878 | $ 81,548 | |
Exercised | 15,468 | ||||
Vested and expected to vest as of January 31, 2016 | [1] | 58,810 | 58,810 | ||
Exercisable as of January 31, 2016 | [1] | $ 56,584 | $ 56,584 | ||
Share Price | $ 55.04 | $ 55.04 | $ 59.05 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Number of RSUs Outstanding | |||||
Balance at beginning of period | 2,882,674 | ||||
Granted | 1,271,566 | ||||
Released | (729,359) | ||||
Canceled | (199,060) | ||||
Balance at end of period | 3,225,821 | 3,225,821 | 2,882,674 | ||
Expected to vest as of October 31, 2015 | 2,989,088 | 2,989,088 | |||
Weighted Average Grant Date Fair Value | |||||
Balance at beginning of period | $ 42.65 | ||||
Granted | 54.49 | ||||
Released | 38.72 | ||||
Canceled | 45.10 | ||||
Balance at end of period | $ 48.06 | 48.06 | $ 42.65 | ||
Expected to vest as of October 31, 2015 | $ 47.80 | $ 47.80 | |||
Aggregate intrinsic value, Nonvested | [2] | $ 177,549 | $ 177,549 | $ 170,222 | |
Aggregate intrinsic value, Vested | [2] | 40,230 | |||
Aggregate intrinsic value, Expected to vest | [2] | $ 164,519 | $ 164,519 | ||
[1] | Aggregate intrinsic value at each period end represents the difference between the Company's closing stock prices of $55.04 and $59.05 on January 31, 2016 and July 31, 2015, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. | ||||
[2] | Aggregate intrinsic value at each period end represents the total market value of RSUs at the Company’s closing stock price of $55.04 and $59.05 on January 31, 2016 and July 31, 2015, respectively. Aggregate intrinsic value for released RSUs represents the total market value of released RSUs at date of release. |
Stockholders' Equity and Stoc39
Stockholders' Equity and Stock-based Compensation (Details 3) - $ / shares | 6 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Summary of assumptions for fair value of employee stock option estimates | ||
Risk-free interest rate, minimum | 1.49% | 1.92% |
Risk-free interest rate, maximum | 1.49% | 1.92% |
Expected volatility, minimum | 38.80% | 45.10% |
Expected volatility, maximum | 38.80% | 45.10% |
Expected dividend yield | 0.00% | 0.00% |
Weighted average grant date fair value of options | $ 19.18 | $ 20.53 |
Minimum | ||
Summary of assumptions for fair value of employee stock option estimates | ||
Expected life (in years) | 4 years 10 months 24 days | 6 years |
Maximum | ||
Summary of assumptions for fair value of employee stock option estimates | ||
Expected life (in years) | 4 years 10 months 24 days | 6 years |
Stockholders' Equity and Stoc40
Stockholders' Equity and Stock-based Compensation (Details 4) - shares | Jan. 31, 2016 | Jul. 31, 2015 |
Common Stock Reserved for Issuance | ||
Exercise of stock options to purchase common stock | 1,464,953 | 1,822,062 |
Issuances of shares available under stock plans | 16,928,044 | 14,363,906 |
Total common stock reserved for issuance | 21,618,818 | 19,068,642 |
Restricted Stock Units (RSUs) | ||
Common Stock Reserved for Issuance | ||
Vesting of restricted stock units | 3,225,821 | 2,882,674 |
Stockholders' Equity and Stoc41
Stockholders' Equity and Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jul. 31, 2015 | |
Class of Stock [Line Items] | ||||
Options granted | 0 | 0 | 10,000 | |
Unrecognized Expense | $ 129,249 | $ 129,249 | ||
Total intrinsic value of options exercised | $ 15,468 | |||
Stockholders Equity and Stock Based Compensation (Additional Textual) [Abstract] | ||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common Stock, Shares, Outstanding | 72,054,151 | 72,054,151 | 71,005,738 | |
Restricted Stock Units (RSUs) | ||||
Class of Stock [Line Items] | ||||
Unrecognized Expense | $ 125,456 | $ 125,456 | ||
Grant date fair value (USD per share) | $ 54.49 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Benefit from income taxes | $ 6,365 | $ (1,007) | $ (55) | $ (1,619) |
Effective Income Tax Rate, Continuing Operations | 87.50% | 7.10% | ||
Percentage of Statutory federal income tax rate | 35.00% | |||
Undistributed Earnings of Foreign Subsidiaries | $ 31,000 | $ 31,000 | ||
Undistributed earnings from certain foreign subsidiaries | 10,200 | 10,200 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | 900 | |||
Unrecognized tax benefits | $ 3,900 | $ 3,900 |
Segment Information (Details 1)
Segment Information (Details 1) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016USD ($)country | Jan. 31, 2015USD ($)country | Jan. 31, 2016USD ($)country | Jan. 31, 2015USD ($)country | |
Revenues : | ||||
Total revenues | $ 102,129 | $ 89,446 | $ 184,409 | $ 169,180 |
Entity-wide revenue attributable to other country | country | 0 | 0 | 0 | 0 |
EntityWideRevenueMajorCountryPercentage | 10.00% | 10.00% | 10.00% | 10.00% |
United States | ||||
Revenues : | ||||
Total revenues | $ 62,078 | $ 43,928 | $ 105,185 | $ 82,876 |
Canada | ||||
Revenues : | ||||
Total revenues | 7,091 | 10,830 | 16,149 | 19,217 |
United Kingdom | ||||
Revenues : | ||||
Total revenues | 11,973 | 11,815 | 21,660 | 24,013 |
Other EMEA | ||||
Revenues : | ||||
Total revenues | 5,303 | 8,838 | 12,178 | 20,627 |
Other | ||||
Revenues : | ||||
Total revenues | 2,178 | 2,755 | 4,627 | 4,613 |
Americas | ||||
Revenues : | ||||
Total revenues | 71,347 | 57,513 | 125,961 | 106,706 |
EMEA | ||||
Revenues : | ||||
Total revenues | 17,276 | 20,653 | 33,838 | 44,640 |
APAC | ||||
Revenues : | ||||
Total revenues | $ 13,506 | $ 11,280 | $ 24,610 | $ 17,834 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Long-lived asset, including intangibles and goodwill | ||
Total | $ 25,524 | $ 25,364 |
Americas | ||
Long-lived asset, including intangibles and goodwill | ||
Total | 22,733 | 22,746 |
EMEA | ||
Long-lived asset, including intangibles and goodwill | ||
Total | 2,429 | 2,183 |
APAC | ||
Long-lived asset, including intangibles and goodwill | ||
Total | $ 362 | $ 435 |