Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2016 | Aug. 31, 2016 | Jan. 31, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Guidewire Software, Inc. | ||
Entity Central Index Key | 1,528,396 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 73,068,434 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,100 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 223,582 | $ 212,362 |
Short-term investments | 404,655 | 359,273 |
Accounts receivable | 62,792 | 62,062 |
Deferred tax assets, current | 0 | 13,845 |
Prepaid expenses and other current assets | 16,643 | 14,102 |
Total current assets | 707,672 | 661,644 |
Long-term investments | 107,565 | 106,117 |
Property and equipment, net | 12,955 | 12,160 |
Intangible assets, net | 14,204 | 3,999 |
Deferred tax assets, noncurrent | 31,364 | 5,896 |
Goodwill | 30,080 | 9,205 |
Other assets | 12,338 | 926 |
TOTAL ASSETS | 916,178 | 799,947 |
CURRENT LIABILITIES: | ||
Accounts payable | 9,929 | 8,816 |
Accrued employee compensation | 41,267 | 37,235 |
Deferred revenues, current | 60,270 | 50,766 |
Other current liabilities | 7,617 | 7,592 |
Total current liabilities | 119,083 | 104,409 |
Deferred revenues, noncurrent | 9,745 | 1,800 |
Other liabilities | 3,415 | 4,350 |
Total liabilities | 132,243 | 110,559 |
Commitments and contingencies (Note 6) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value $0.0001 per share—500,000,000 shares authorized as of July 31, 2016 and 2015, respectively; 73,039,919 and 71,005,738 shares issued and outstanding as of July 31, 2016 and 2015, respectively | 7 | 7 |
Additional paid-in capital | 742,690 | 662,869 |
Accumulated other comprehensive loss | (6,593) | (6,343) |
Retained earnings | 47,831 | 32,855 |
Total stockholders’ equity | 783,935 | 689,388 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 916,178 | $ 799,947 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2016 | Jul. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued (in shares) | 73,039,919 | 71,005,738 |
Common stock, shares outstanding (in shares) | 73,039,919 | 71,005,738 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Revenues: | |||
License | $ 219,751 | $ 179,172 | $ 151,921 |
Maintenance | 59,931 | 50,024 | 41,888 |
Services | 144,764 | 151,341 | 156,437 |
Total revenues | 424,446 | 380,537 | 350,246 |
Cost of revenues: | |||
License | 7,184 | 4,605 | 4,442 |
Maintenance | 11,547 | 9,073 | 8,118 |
Services | 133,103 | 133,506 | 136,387 |
Total cost of revenues | 151,834 | 147,184 | 148,947 |
Gross profit: | |||
License | 212,567 | 174,567 | 147,479 |
Maintenance | 48,384 | 40,951 | 33,770 |
Services | 11,661 | 17,835 | 20,050 |
Total gross profit | 272,612 | 233,353 | 201,299 |
Operating expenses: | |||
Research and development | 112,496 | 93,440 | 76,178 |
Sales and marketing | 92,765 | 82,023 | 71,295 |
General and administrative | 50,914 | 41,397 | 35,404 |
Total operating expenses | 256,175 | 216,860 | 182,877 |
Income from operations | 16,437 | 16,493 | 18,422 |
Interest income | 4,850 | 2,245 | 1,350 |
Other income (expenses), net | (505) | (1,998) | 174 |
Income before provision for income taxes | 20,782 | 16,740 | 19,946 |
Provision for income taxes | 5,806 | 6,855 | 5,225 |
Net income | $ 14,976 | $ 9,885 | $ 14,721 |
Earnings per share: | |||
Basic (in USD per share) | $ 0.21 | $ 0.14 | $ 0.22 |
Diluted (in USD per share) | $ 0.20 | $ 0.14 | $ 0.21 |
Shares used in computing earnings per share: | |||
Basic (in shares) | 72,026,694 | 70,075,908 | 65,748,896 |
Diluted (in shares) | 73,765,960 | 72,314,433 | 69,112,733 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 14,976 | $ 9,885 | $ 14,721 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (562) | (4,937) | 288 |
Unrealized (loss) gain on available-for-sale securities, net of tax benefit (expense) of $(187), $38, and $(7) | 288 | (83) | (42) |
Reclassification adjustment for realized loss (gain) included in net income | 24 | 44 | (39) |
Other comprehensive income (loss) | (250) | (4,976) | 207 |
Comprehensive income | $ 14,726 | $ 4,909 | $ 14,928 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income Statement (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized (loss) gain on available-for-sale securities, tax | $ (187) | $ 38 | $ (7) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Retained Earnings (Accumulated deficit) [Member] | Common stock [Member]Common stock [Member] |
Balance (in shares) at Jul. 31, 2013 | 57,909,277 | ||||
Balance, Value at Jul. 31, 2013 | $ 221,832 | $ 215,151 | $ (1,574) | $ 8,249 | $ 6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission (in shares) | 8,306,291 | ||||
Proceeds from issuance of common stock in connection with public offerings, net of underwriting discounts and commission, Value | 389,949 | 389,948 | $ 1 | ||
Costs incurred in connection with public offerings | $ (408) | (408) | |||
Issuance of common stock upon exercise of stock options (in shares) | 1,580,344 | 1,579,469 | |||
Issuance of common stock upon exercise of stock options, Value | $ 8,755 | 8,755 | |||
Issuance of common stock upon RSU release (in shares) | 2,007,423 | ||||
Issuance of common stock upon RSU release | 0 | 0 | |||
Shares withheld for taxes related to net share settlement (in shares) | (720,199) | ||||
Shares withheld for taxes related to net share settlement | (32,799) | (32,799) | |||
Stock-based compensation | 42,538 | 42,538 | |||
Tax benefit from the exercise of stock options and vesting of RSUs | 5,891 | 5,891 | |||
Net income | 14,721 | 14,721 | |||
Foreign currency translation adjustment | 288 | 288 | |||
Unrealized gains on available-for-sale securities | (42) | (42) | |||
Reclassification adjustment for realized loss (gain) included in net income | (39) | (39) | |||
Balance (in shares) at Jul. 31, 2014 | 69,082,261 | ||||
Balance, Value at Jul. 31, 2014 | $ 650,686 | 629,076 | (1,367) | 22,970 | $ 7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 665,665 | 665,665 | |||
Issuance of common stock upon exercise of stock options, Value | $ 6,294 | 6,294 | |||
Issuance of common stock upon RSU release (in shares) | 1,819,825 | ||||
Issuance of common stock upon RSU release | 0 | 0 | |||
Shares withheld for taxes related to net share settlement (in shares) | (562,013) | ||||
Shares withheld for taxes related to net share settlement | (27,183) | (27,183) | |||
Stock-based compensation | 51,375 | 51,375 | |||
Tax benefit from the exercise of stock options and vesting of RSUs | 3,307 | 3,307 | |||
Net income | 9,885 | 9,885 | |||
Foreign currency translation adjustment | (4,937) | (4,937) | |||
Unrealized gains on available-for-sale securities | (83) | (83) | |||
Reclassification adjustment for realized loss (gain) included in net income | 44 | 44 | |||
Balance (in shares) at Jul. 31, 2015 | 71,005,738 | ||||
Balance, Value at Jul. 31, 2015 | $ 689,388 | 662,869 | (6,343) | 32,855 | $ 7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 652,832 | 652,832 | |||
Issuance of common stock upon exercise of stock options, Value | $ 7,840 | 7,840 | |||
Issuance of common stock upon RSU release (in shares) | 1,408,746 | ||||
Issuance of common stock upon RSU release | 0 | 0 | |||
Shares withheld for taxes related to net share settlement (in shares) | (27,397) | ||||
Shares withheld for taxes related to net share settlement | (1,488) | (1,488) | |||
Stock-based compensation | 66,409 | 66,409 | |||
Tax benefit from the exercise of stock options and vesting of RSUs | 7,060 | 7,060 | |||
Net income | 14,976 | 14,976 | |||
Foreign currency translation adjustment | (562) | (562) | |||
Unrealized gains on available-for-sale securities | 288 | 288 | |||
Reclassification adjustment for realized loss (gain) included in net income | 24 | 24 | |||
Balance (in shares) at Jul. 31, 2016 | 73,039,919 | ||||
Balance, Value at Jul. 31, 2016 | $ 783,935 | $ 742,690 | $ (6,593) | $ 47,831 | $ 7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 14,976 | $ 9,885 | $ 14,721 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 8,842 | 7,480 | 6,751 |
Stock-based compensation | 66,131 | 51,375 | 42,538 |
Excess tax benefit from exercise of stock options and vesting of RSUs | (7,102) | (3,538) | (7,067) |
Deferred taxes | (4,568) | 295 | (2,718) |
Amortization of premium on available-for-sale securities | 3,283 | 4,839 | 3,490 |
Other non-cash items affecting net income | 767 | (1) | (99) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (75) | (12,999) | (9,276) |
Prepaid expenses and other assets | (7,668) | (3,178) | (1,372) |
Accounts payable | 603 | 2,266 | 393 |
Accrued employee compensation | 4,114 | 3,261 | 8,463 |
Other liabilities | 5,993 | 6,253 | 5,288 |
Deferred revenues | 16,138 | (2,263) | 14,181 |
Net cash provided by operating activities | 99,900 | 63,677 | 75,491 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of available-for-sale securities | (652,017) | (491,626) | (687,419) |
Sales and maturities of available-for-sale securities | 597,405 | 520,997 | 312,149 |
Purchase of property and equipment | (7,111) | (6,301) | (4,993) |
Acquisition, net of cash acquired | (39,530) | 0 | (157) |
Net cash provided by (used in) investing activities | (101,253) | 23,070 | (380,420) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock upon exercise of stock options | 7,840 | 6,294 | 8,755 |
Taxes remitted on RSU awards vested | (1,488) | (27,183) | (32,799) |
Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission | 0 | 0 | 389,949 |
Costs paid in connection with stock offerings | 0 | 0 | (408) |
Excess tax benefit from exercise of stock options and vesting of RSUs | 7,102 | 3,538 | 7,067 |
Net cash provided by (used in) financing activities | 13,454 | (17,351) | 372,564 |
Effect of foreign exchange rate changes on cash and cash equivalents | (881) | (5,135) | 699 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 11,220 | 64,261 | 68,334 |
CASH AND CASH EQUIVALENTS—BEGINNING OF YEAR | 212,362 | 148,101 | 79,767 |
CASH AND CASH EQUIVALENTS—END OF YEAR | 223,582 | 212,362 | 148,101 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid for interest | 0 | 0 | 4 |
Cash paid for income taxes, net of tax refunds | 3,907 | 1,899 | 2,141 |
SUPPLEMENTAL DISCLOSURES OF NONCASH FINANCING ACTIVITIES: | |||
Accruals for purchase of property and equipment | $ 882 | $ 496 | $ 768 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies and Estimates | 12 Months Ended |
Jul. 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 Company Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc. together with its subsidiaries (the “Company”) provides a technology platform which consists of three key elements: core transaction processing, data management and analytics, and digital engagement. It supports core insurance operations, including underwriting and policy administration, claim management and billing, 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 are primarily insurance carriers for property and casualty insurance. Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of Guidewire Software, Inc. and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from these estimates. Foreign Currency The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period in which the transactions occur. The effects of foreign currency translations are recorded in accumulated other comprehensive income/loss as a separate component of stockholders’ equity in the accompanying consolidated statements of stockholders’ equity. Transaction gains and losses from foreign currency transactions that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are recorded as other income (expense) in the consolidated statements of income. Cash and Cash Equivalents Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents consist of commercial paper and money market funds. Investments Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. All investments are held as available-for-sale investments. The Company classifies investments as short-term when they have remaining contractual maturities of one year or less from the balance sheet date, and as long-term when the investments have remaining contractual maturities of more than one year from the balance sheet date. All investments are recorded at fair value with unrealized holding gains and losses included in accumulated other comprehensive (loss) income. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs that do not extend the life or improve an asset are expensed in the period incurred. The estimated useful lives of property and equipment are as follows: Computer hardware 3 years Software 3 years Furniture and fixtures 3 years Leasehold improvements Shorter of the lease term or estimated useful life Product Development Costs Certain software development costs incurred subsequent to the establishment of technological feasibility are subject to capitalization and amortized over the estimated lives of the related products. Technological feasibility is established upon completion of a working model. Through July 31, 2016 , costs incurred subsequent to the establishment of technological feasibility have not been material, and therefore, all software development costs have been charged to research and development expense in the accompanying consolidated statements of income as incurred. Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. Goodwill is calculated as the difference between the acquisition-date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and subject to refinement and, as a result, actual results may differ from estimates. During the measurement period, which may be up to one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets and liabilities, with the corresponding offset to goodwill. The Company adopted ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)” (“ASU 2015-16”), which requires the cumulative impact of measurement period adjustments (including the impact on prior periods) to be recognized in the reporting period in which the adjustments are identified. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. Impairment of Long-Lived Assets, Intangible Assets and Goodwill The Company evaluates its long-lived assets, consisting of property and equipment and intangible assets, for indicators of possible impairment when events or changes in circumstances indicate that the carrying amount of certain assets may not be recoverable. Impairment exists if the carrying amounts of such assets exceed the estimates of future net undiscounted cash flows expected to be generated by such assets. Should impairment exist, the impairment loss would be measured based on the excess carrying value of the assets over the estimated fair value of the assets. The Company has not written down any of its long-lived assets as a result of impairment during any of the periods presented. The Company tests goodwill for impairment annually during the fourth quarter of each fiscal year and in the interim whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company evaluates qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. In performing the qualitative assessment, the Company considers events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit’s net assets and changes in the price of the Company’s common stock. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed. The Company has not recognized any goodwill impairment as a result of its impairment analysis during any of the periods presented. 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 years ended July 31, 2016 , 2015 and 2014 . No customer individually accounted for 10% or more of the Company’s total accounts receivable as of July 31, 2016 and 2015 . Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amounts, net of the Company’s estimated allowances for doubtful accounts. The allowance for doubtful accounts is estimated based on an assessment of the Company’s ability to collect on customer accounts receivable, and there is judgment involved in such assessment. The Company regularly reviews the allowance by considering certain factors such as historical experience, industry data, credit quality, age of accounts receivable balances, customers’ financial condition and current economic conditions that may affect a customer’s ability to pay. The Company has had no allowance for doubtful accounts in the periods presented in this Annual Report on Form 10-K. The Company’s accounts receivable are not collateralized by any security. Revenue Recognition The Company enters into arrangements to deliver multiple products or services (multiple-elements). The Company applies software revenue recognition rules and allocates the total revenues among elements based on vendor-specific objective evidence (“VSOE”) of fair value of each element. The Company recognizes revenue on a net basis excluding 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. 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. In certain cases extended payment terms may be offered resulting in term and perpetual license fees to not be considered to be fixed or determinable until they become due or payment is received. • 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. The Company sells some of its software licenses on a subscription basis and the related revenues are recognized ratably over the contract term. In certain professional service offerings sold as fixed fee arrangements, the Company recognizes services revenues on a proportional performance basis as performance obligations are completed by using the ratio of labor hours to date as an input measure compared to total estimated labor hours for the consulting services. In cases where professional services are deemed to be essential to the functionality of the software, the arrangement is accounted for using contract accounting until the essential services are complete. If reliable estimates of total project costs can be made, the Company applies the percentage-of-completion method whereby percentage toward completion is measured by using the ratio of service billings to date compared to total estimated service billings for the consulting services. Service billings approximate labor hours as an input measure since they are generally billed monthly on a time and material basis. The fees related to the maintenance are recognized over the period the maintenance is provided. If reliable estimates of total project costs cannot be made, the zero gross margin or the completed contract method is applied to revenues and direct costs. Under the zero gross margin method, revenues recognized are limited to the direct costs incurred for the implementation services. Under the completed contract method, revenues and costs are deferred until the project is complete. As noted above, the Company generally invoices fees for licenses and maintenance to its customers 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. Sales Commissions Sales commissions are recognized as an expense when earned by the sales representative, generally occurring at the time the customer order is signed. Substantially all of the effort by the sales force is expended through the time of closing the sale, with limited to no involvement thereafter. Warranties The Company generally provides a warranty for its software products and services to its customers for periods ranging from 3 to 12 months . The Company’s software products are generally warranted to be free of defects in materials and workmanship under normal use and the products are also generally warranted to substantially perform as described in published documentation. The Company’s services are generally warranted to be performed in a professional manner and to materially conform to the specifications set forth in the related customer contract. In the event there is a failure of such warranties, the Company generally will correct the problem or provide a reasonable workaround or replacement product. If the Company cannot correct the problem or provide a workaround or replacement product, then the customer’s remedy is generally limited to refund of the fees paid for the nonconforming product or services. Warranty expense has been insignificant. Advertising Costs Advertising costs are expensed as incurred and amounts incurred were not material during the years ended July 31, 2016 , 2015 and 2014 . Stock-Based Compensation The Company recognizes compensation expense related to stock options and restricted stock units (“RSUs”) granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The awards are subject to time-based vesting, which generally occurs over a period of four years. Option awards expire 10 years from the grant date. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, of the Company’s stock options using the Black-Scholes option-pricing model. The Company recognizes the fair value of stock-based compensation for awards which contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the compensation cost for awards which contain performance conditions based upon the probability of that performance condition being met, net of estimated forfeitures, using the graded method. 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. The Company 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. 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 consolidated statement of income. Recent Accounting Pronouncement Improvements on Employee Share-Based Payment Accounting In March 2016, the FASB issued Accounting Standards Update No. 2016-09, “Improvements on Employee Share-Based Payment Accounting (Topic 718)” (“ASU 2016-09”), which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new standard is effective for annual periods beginning after December 15, 2016 and interim periods within those years. Early adoption is permitted. The standard will be effective for the Company beginning August 1, 2017. The Company is currently evaluating the impact to its consolidated financial statements. Accounting for Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for annual periods beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. The standard will be effective for the Company beginning August 1, 2019. The Company is currently evaluating the impact to its consolidated financial statements. 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 August 2015, the FASB issued ASU No. 2015-14 which 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. Subsequently, the FASB issued ASU No. 2016-08, Principal Versus Agent Consideration (or Reporting Revenue Gross versus Net) in March 2016, ASU No. 2016-10, Identifying Performance Obligations and Licensing in April 2016, and ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients in May 2016. These amendments do not change the core principle of revenue recognition but clarified certain aspects of Topic 606. The Company will adopt the guidance on August 1, 2018 and currently intends to select the cumulative effect transition method. In evaluating the potential impacts that this guidance will have on its consolidated financial statements, the Company has begun to revise its contracting practices primarily by shortening the initial non-refundable term of its licenses. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jul. 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: July 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (in thousands) U.S. agency securities $ 58,070 $ 30 $ (12 ) $ 58,088 Commercial paper 152,317 12 (6 ) 152,323 Corporate bonds 274,656 321 (38 ) 274,939 U.S. government bonds 90,593 58 (2 ) 90,649 Foreign government bonds 2,418 9 — 2,427 Money market funds 114,833 — — 114,833 Total $ 692,887 $ 430 $ (58 ) $ 693,259 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: July 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) U.S. agency securities $ 7,961 $ (12 ) $ — $ — $ 7,961 $ (12 ) Commercial paper 47,484 (6 ) — — 47,484 (6 ) Corporate bonds 56,197 (28 ) 7,755 (10 ) 63,952 (38 ) U. S. government bonds 10,029 (2 ) — — 10,029 (2 ) Total $ 121,671 $ (48 ) $ 7,755 $ (10 ) $ 129,426 $ (58 ) As of July 31, 2016 , the Company had 44 investments resulting in the insignificant gross unrealized loss position noted above. The unrealized losses on its available-for-sale securities were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The Company does not intend to sell, nor believe it will need to sell, these securities before recovering the associated unrealized losses. The Company does not consider any portion of the unrealized losses at July 31, 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 consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive loss. The amount of realized gains and losses reclassified into earnings are based on the specific identification of the securities sold. The realized gains and losses from sales of securities in the periods presented were immaterial. The following table summarizes the contractual maturities of the Company’s available-for-sale securities as of July 31, 2016 : Less Than 12 Months 12 to 24 Months Total (in thousands) U.S. agency securities $ 51,539 $ 6,549 $ 58,088 Commercial paper 152,323 — 152,323 Corporate bonds 205,434 69,505 274,939 U.S. government bonds 61,565 29,084 90,649 Foreign government bonds — 2,427 2,427 Money market funds 114,833 — 114,833 Total $ 585,694 $ 107,565 $ 693,259 Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows: Level 1-Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2-Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and Level 3-Unobservable inputs that are supported by little or no market activity, which require the Company to develop its own assumptions. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying value of the Company’s accounts receivable, accounts payable and accrued liabilities approximates their fair value due to the short-term nature of these instruments. The Company bases the fair value of its Level 1 financial instruments, which are in active markets, using quoted market prices for identical instruments. The Company obtains the fair value of its Level 2 financial instruments, which are not in active markets, from a third-party professional pricing service using quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. The Company’s professional pricing service gathers observable inputs for all of its fixed income securities from a variety of industry data providers (e.g. large custodial institutions) and other third-party sources. Once the observable inputs are gathered, all data points are considered and an average price is determined. The Company validates the quoted market prices provided by its primary pricing service by comparing their assessment of the fair values of our Level 2 investment portfolio balance against the fair values of its Level 2 investment portfolio balance provided by its investment managers. The Company’s investment managers use similar techniques to its professional pricing service to derive pricing as described above. The Company did not have any Level 3 financial assets or liabilities as of July 31, 2016 , or 2015 . The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy: July 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents: Commercial paper $ — $ 66,206 $ — $ 66,206 Money market funds 114,833 — — 114,833 Short-term investments: U.S. agency securities — 51,539 — 51,539 Commercial paper — 86,117 — 86,117 U. S. government bonds — 61,565 — 61,565 Corporate bonds — 205,434 — 205,434 Long-term investments: U.S. agency securities — 6,549 — 6,549 Corporate bonds — 69,505 — 69,505 U.S. government bonds — 29,084 — 29,084 Foreign government bonds — 2,427 — 2,427 Total assets $ 114,833 $ 578,426 $ — $ 693,259 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 In December 2015, the Company invested $5.0 million in a convertible note issued by a privately-held company. The note did not have a readily determinable market value. In April 2016, the convertible note with accrued interest of $0.1 million converted to preferred stock. The investment was re-measured at $6.0 million based on the estimated fair value of the preferred stock at the date of conversion. The resulting gain of $0.9 million was recorded as interest income. The equity investment is accounted for under the cost method of accounting, and reported in long-term other assets on the Company’s consolidated balance sheet. The fair value of the investment is not readily available as there is no quoted market prices for the investment. The Company assesses the investment for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. As of July 31, 2016, the investment with a carrying value of $6.0 million was not impaired. |
Acquisition (Notes)
Acquisition (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On March 31, 2016, the Company purchased all of the outstanding equity interests of EagleEye Analytics, Inc. (“EagleEye”), a privately held provider of cloud-based predictive analytics products specifically designed for property and casualty insurers, for total purchase consideration of $40.2 million , including an amount placed into escrow to cover future potential claims. At the time of the purchase, EagleEye maintained a management incentive program that required certain payments to management upon the completion of a change in control. Pursuant to this program, an additional $1.6 million was placed into a separate escrow account to be paid out 18 months after closing to former EagleEye employees. This additional payment is subject to continued employment with the Company and therefore is excluded from the purchase consideration. The payment will be recognized as compensation expense over the requisite service period of 18 months. The Company believes that the acquisition will enable its customers to apply predictive analytics to make better decisions across the insurance lifecycle. Acquisition-related costs of $1.4 million were recorded in general and administrative expenses in the Company’s consolidated statements of operations for the fiscal year ended July 31, 2016. As part of the purchase price allocation, the Company determined that EagleEye’s separately identifiable intangible assets were developed technology, customer contracts and related relationships, partner relationships and order backlog. The Company measured fair values of the intangible assets by applying the income and relief from royalty approach. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement. The valuation models were based on estimates of future operating projections of the acquired business and rights to sell new products containing the acquired technology as well as judgments on the discount rates used and other variables. The Company developed forecasts based on a number of factors including future revenue projections, a discount rate that is representative of the weighted average cost of capital, and royalty and long-term sustainable growth rates based on market analysis. The Company is amortizing the acquired intangible assets over their estimated useful lives. The allocation of the purchase price is preliminary pending final valuation of acquired deferred tax assets and is therefore subject to potential future measurement period adjustments. Preliminary allocation of the purchase consideration was as follows: Total Purchase Price Allocation Estimated Useful Lives (in thousands) (in years) Assumed Liabilities, net of acquired assets $ (550 ) Developed technology 6,700 4 Customer contracts and related relationships 4,500 9 Partner relationships 200 9 Order backlog 1,100 3 Deferred tax assets, net 7,325 Goodwill 20,875 Total purchase price $ 40,150 The goodwill of $20.9 million arising from the acquisition consists largely of the acquired workforce, the expected company-specific synergies and the opportunity to expand the Company’s customer base. None of the goodwill recognized is expected to be deductible for income tax purposes. The results of EagleEye’s operations since the date of acquisition have been included in the Company’s results for the fiscal year ended July 31, 2016 and were not material. Pro forma results of operations have not been presented because the effects of the business combination were not material to the Company’s consolidated results of operations. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jul. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, net Property and equipment, net consists of the following: July 31, 2016 July 31, 2015 (in thousands) Computer hardware $ 19,257 $ 15,099 Software 5,066 4,867 Furniture and fixtures 3,492 3,065 Leasehold improvements 8,434 8,040 Total property and equipment 36,249 31,071 Less accumulated depreciation (23,294 ) (18,911 ) Property and equipment, net $ 12,955 $ 12,160 As of July 31, 2016 , and 2015 , no property and equipment was pledged as collateral against borrowings. Amortization of leasehold improvements is included in depreciation expense. Depreciation expense was $6.5 million , $6.0 million and $5.3 million during the years ended July 31, 2016 , 2015 and 2014 , respectively. Goodwill and Intangible Assets The following table presents changes in the carrying amount of goodwill acquired: (in thousands) Goodwill, July 31, 2014 $ 9,205 Changes in carrying value — Goodwill, July 31, 2015 $ 9,205 Addition - EagleEye acquisition 20,875 Goodwill, July 31, 2016 $ 30,080 Intangible assets consist of the following: July 31, 2016 July 31, 2015 (in thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Amortized intangible assets: Acquired technology $ 13,900 $ 5,199 8,701 $ 7,200 3,201 $ 3,999 Customer contracts and related relationships $ 4,500 $ 167 4,333 — — — Partner relationships $ 200 $ 8 192 — — — Order backlog $ 1,100 $ 122 978 — — — Total $ 19,700 $ 5,496 $ 14,204 $ 7,200 $ 3,201 $ 3,999 Amortization expense was $2.3 million , $1.4 million and $1.4 million during the years ended July 31, 2016 , 2015 and 2014 , respectively. Estimated aggregate amortization expense for each of the next five fiscal years is as follows: Future Amortization (in thousands) 2017 $ 4,004 2018 3,682 2019 2,442 2020 1,639 2021 522 Thereafter 1,915 Total $ 14,204 Accrued Employee Compensation Accrued employee compensation consists of the following: July 31, 2016 July 31, 2015 (in thousands) Accrued bonuses $ 24,872 $ 19,819 Accrued commission 2,571 5,008 Accrued vacation 9,067 7,980 Accrued salaries, payroll taxes and benefits 4,757 4,428 Total $ 41,267 $ 37,235 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component were as follows: Foreign Currency Items Unrealized gain (loss) on available-for-sale securities Total (In thousands) Balance as of July 31, 2014 $ (1,310 ) $ (57 ) $ (1,367 ) Other comprehensive income (loss) before reclassification adjustments: (4,937 ) (121 ) (5,058 ) Amounts reclassified from accumulated other comprehensive income (loss) to earnings — 44 44 Tax effect — 38 38 Balance as of July 31, 2015 (6,247 ) (96 ) (6,343 ) Other comprehensive income (loss) before reclassification adjustments: (562 ) 475 (87 ) Amounts reclassified from accumulated other comprehensive income (loss) to earnings — 24 24 Tax effect — (187 ) (187 ) Balance as of July 31, 2016 $ (6,809 ) $ 216 $ (6,593 ) |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The Company calculates basic earnings per share by dividing the net income by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock and restricted stock units are considered to be common stock equivalents. The following table sets forth the computation of the Company’s basic and diluted net income per share for the years ended July 31, 2016 , 2015 and 2014 : Fiscal years ended July 31, 2016 2015 2014 (in thousands, except share and per share amounts) Numerator: Net income $ 14,976 $ 9,885 $ 14,721 Net income per share: Basic $ 0.21 $ 0.14 $ 0.22 Diluted $ 0.20 $ 0.14 $ 0.21 Fiscal years ended July 31, 2016 2015 2014 Denominator: Weighted average shares used in computing net income per share: Basic 72,026,694 70,075,908 65,748,896 Weighted average effect of diluted stock options 859,855 1,223,106 1,896,766 Weighted average effect of dilutive restricted stock units 879,411 1,015,419 1,467,071 Diluted 73,765,960 72,314,433 69,112,733 The following outstanding shares of common stock equivalents are excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive: Fiscal years ended July 31, 2016 2015 2014 Stock options to purchase common stock 77,737 290,670 206,136 Restricted stock units 22,994 678 76,840 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table presents a summary of the Company’s contractual obligations and commitments as of July 31, 2016 : Lease Obligations Royalty Obligations (1) Purchase Commitments (2) Total Fiscal Year Ending July 31, (in thousands) 2017 $ 7,273 $ 997 $ 1,743 $ 10,013 2018 6,638 666 1,429 8,733 2019 6,198 517 76 6,791 2020 1,324 250 — 1,574 2021 1,146 — — 1,146 2022 and thereafter $ 1,260 $ — $ — $ 1,260 Total $ 23,839 $ 2,430 $ 3,248 $ 29,517 (1) Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements. (2) Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent non-cancellable long term commitments for which a penalty would be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement. Leases The Company leases certain facilities and equipment under operating leases. On December 5, 2011, the Company entered into a seven -year lease for a facility to serve as its new corporate headquarters, located in Foster City, California, for approximately 97,674 square feet of space commencing August 1, 2012. In connection with the lease, the Company opened an unsecured letter of credit with Silicon Valley Bank for $1.2 million . On July 1, 2015 , the unsecured letter of credit was reduced from $0.8 million to $0.4 million in accordance with the lease agreement. Lease expense for all worldwide facilities and equipment, which is being recognized on a straight-line basis over terms of the various leases, was $5.7 million , $5.5 million and $5.8 million during the years ended July 31, 2016 , 2015 and 2014 , respectively. Letters of Credit The Company had two outstanding letters of credit required to secure contractual commitments as of July 31, 2016 and 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 $2.6 million as of July 31, 2016 ) to secure contractual commitments and prepayments. No amounts were outstanding under the Company’s unsecured letters of credit as of July 31, 2016 or July 31, 2015 . Legal Proceedings From time to time, the Company is involved in various other legal proceedings and receives claims, arising from the normal course of business activities. The Company accrues for estimated losses in the accompanying consolidated financial statements for matters with respect to which the Company believes the likelihood of an adverse outcome is probable and the amount of the loss is reasonably estimable. Indemnification The Company sells software licenses and services to its customers under contracts (“Software License”). Each Software License contains the terms of the contractual arrangement with the customer and generally includes certain provisions for defending the customer against any claims that the Company’s software infringes upon a patent, copyright, trademark, or other proprietary right of a third-party. Software Licenses also indemnify the customer against losses, expenses, and liabilities from damages that may be assessed against the customer in the event the Company’s software is found to infringe upon such third-party rights. The Company has not had to reimburse any of its customers for losses related to indemnification provisions and no material claims against the Company are outstanding as of July 31, 2016 and 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 | 12 Months Ended |
Jul. 31, 2016 | |
Stockholders' Equity and Stock-based Compensation [Abstract] | |
Stockholders' Equity and Stock-based Compensation | Stockholders’ Equity and Stock-Based Compensation Equity Incentive Plans On September 14, 2011, the Company’s Board of Directors adopted the 2011 Stock Plan (“2011 Plan”) for the purpose of granting equity-based incentive awards as compensation tools to motivate the Company’s workforce. The Company had initially reserved 7,500,000 shares of its common stock for the issuance of awards under the 2011 Plan. The 2011 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2013, by up to 5% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31. This number is subject to adjustment in the event of a stock split, stock dividend or other defined changes in the Company’s capitalization. In addition, the Company has equity awards outstanding from its other equity incentive plans, the 2006 Stock Plan, the 2009 Stock Plan and the 2010 Restricted Stock Unit Plan, which were discontinued for the purposes of making new grants upon the adoption of the 2011 Plan. Stock-Based Compensation Expense Stock-based compensation cost related to options and restricted stock units (“RSUs”) granted to employee and non-employee is as follows: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Total cost of stock-based compensation $ 66,409 $ 51,375 $ 42,538 Amount capitalized in deferred cost of services revenues during the year $ (278 ) $ — $ — Amount charged to income $ 66,131 $ 51,375 $ 42,538 Stock-based compensation cost charged to the following expense categories: Cost of license revenues $ 433 $ 222 $ 184 Cost of maintenance revenues 1,491 1,158 797 Cost of services revenues 17,878 15,022 11,929 Research and development 15,555 10,683 9,008 Sales and marketing 15,090 12,090 10,744 General and administrative 15,684 12,200 9,876 Total stock-based compensation expense 66,131 51,375 42,538 Tax benefit from stock-based compensation 20,092 19,087 15,905 Total stock-based compensation expense, net of tax effect $ 46,039 $ 32,288 $ 26,633 As of July 31, 2016 , total unrecognized compensation cost, adjusted for estimated forfeitures and before tax benefit, was as follows: As of July 31, 2016 Unrecognized Expense Weighted Average Expected Recognition Period (in thousands) (in years) Restricted stock units $ 109,968 2.4 Stock options 2,621 1.7 $ 112,589 RSUs RSU activity under the Company’s equity incentive plans is as follows: Number of RSUs Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (1) (in thousands) Balance as of July 31, 2013 4,027,601 $ 19.27 $ 176,248 Granted 1,667,433 43.87 Released (2,007,423 ) 18.59 $ 91,300 Canceled (303,390 ) 31.48 Balance as of July 31, 2014 3,384,221 30.70 $ 137,061 Granted 1,664,413 47.50 Released (1,819,825 ) 25.99 $ 88,648 Canceled (346,135 ) 36.72 Balance as of July 31, 2015 2,882,674 42.65 $ 170,222 Granted 1,586,192 54.99 Released (1,408,746 ) 41.21 $ 78,763 Canceled (332,396 ) 46.71 Balance as of July 31, 2016 2,727,724 $ 50.08 $ 167,673 Expected to vest as of July 31, 2016 2,553,456 $ 49.87 $ 156,961 (1) Aggregate intrinsic value at each fiscal year end represents the total market value of RSUs at the Company’s closing stock price of $61.47 , $59.05 and $40.50 on July 31, 2016 , 2015 and 2014 , respectively. Aggregate intrinsic value for released RSUs represents the total market value of released RSUs at date of release. The Company’s restricted stock units also included performance stock unit (“PSU”) awards, which have been granted to certain executives and employees of the Company. The PSU awards included performance conditions as well as time-based vesting which generally vest over four years. Included in fiscal year 2016 , 2015 and 2014 stock-based compensation were $6.9 million , $2.4 million and $2.4 million of expense for performance-based awards, which were tied to the Company’s financial results. In fiscal year 2015, the Company began requiring that the general employee population sell a portion of the shares that they receive upon the vesting of RSUs in order to cover any required withholding taxes (“sell-to-cover”), rather than its previous approach of net share settlement. Stock Options Stock option activity under the Company’s equity incentive plans is as follows: Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in years) (in thousands) Balance as of July 31, 2013 3,763,228 $ 6.74 5.7 $ 139,315 Granted 225,930 46.63 Exercised (1,580,344 ) 5.53 65,300 Canceled (8,561 ) 21.75 Balance as of July 31, 2014 2,400,253 11.24 5.5 71,640 Granted 138,643 47.23 Exercised (665,665 ) 9.46 27,263 Canceled (51,169 ) 23.04 Balance as of July 31, 2015 1,822,062 14.29 4.9 81,548 Granted 10,000 54.00 Exercised (652,832 ) 12.01 29,186 Canceled (20,658 ) 40.86 Balance as of July 31, 2016 1,158,572 $ 15.45 4.0 $ 53,316 Vested and expected to vest as of July 31, 2016 1,153,815 $ 15.32 4.0 $ 53,252 Exercisable as of July 31, 2016 1,010,609 $ 10.95 3.5 $ 51,060 (1) Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $61.47 , $59.05 and $40.50 on July 31, 2016 , 2015 and 2014 and the exercise price of the option, respectively. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. The per share fair value of each stock option was determined using the Black-Scholes option-pricing model with the following assumptions: Fiscal years ended July 31, 2016 2015 2014 Expected life (in years) 4.9 6.0 - 6.1 5.0 - 6.1 Risk-free interest rate 1.5% 1.7% - 1.9% 1.5% - 2.0% Expected volatility 38.8% 39.4% - 45.1% 41.3% - 46.2% Expected dividend yield —% —% —% Weighted average fair value of options granted $19.18 $20.78 $21.06 Common Stock Reserved for Future Issuance As of July 31, 2016 and 2015 , the Company had reserved shares of common stock for future issuance as follows: July 31, 2016 July 31, 2015 Exercise of stock options to purchase common stock 1,158,572 1,822,062 Vesting of restricted stock units 2,727,724 2,882,674 Shares available for grant under stock plans 16,746,754 14,363,906 Total common stock reserved for issuance 20,633,050 19,068,642 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income before provision for income taxes for the years ended July 31, 2016 , 2015 and 2014 is as follows: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Domestic $ 11,209 $ 11,348 $ 11,956 International 9,573 5,392 7,990 Income before provision for income taxes $ 20,782 $ 16,740 $ 19,946 The provision for income taxes consists of the following: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Current: U.S. federal $ 4,936 $ 2,509 $ 5,235 State 1,006 300 1,326 Foreign 4,350 3,910 2,509 Total current 10,292 6,719 9,070 Deferred: U.S. federal (4,867 ) 983 (4,277 ) State 631 169 78 Foreign (250 ) (1,016 ) 354 Total deferred (4,486 ) 136 (3,845 ) Total provision for income taxes $ 5,806 $ 6,855 $ 5,225 Differences between income taxes calculated using the statutory federal income tax rate of 35% and the provision for income taxes are as follows: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Statutory federal income tax $ 7,274 $ 5,858 $ 6,977 Nondeductible items and other 2,289 1,575 1,164 State income taxes, net of federal benefit 191 388 840 Impact of state rate changes 1,132 — — Foreign income taxed at different rates 945 816 (207 ) Tax credits (5,963 ) (1,697 ) (3,612 ) Change in valuation allowance (62 ) (85 ) 63 Total provision for income taxes $ 5,806 $ 6,855 $ 5,225 The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities are as follows: As of July 31, 2016 2015 (in thousands) Accruals and reserves $ 11,618 $ 9,974 Stock-based compensation 6,874 5,534 Deferred revenues 1,513 410 Property and equipment 1,815 914 Net operating loss carryforwards 10,333 436 Tax credits 12,145 10,435 Total deferred tax assets 44,298 27,703 Less valuation allowance 10,505 6,783 Net deferred tax assets 33,793 20,920 Less deferred tax liabilities: Intangible assets 2,429 1,179 Total net deferred tax assets $ 31,364 $ 19,741 During the years ended July 31, 2016 , 2015 and 2014 , the Company was able to consider positive evidence in determining the realizability of its deferred tax assets, including projections for future growth, and determined a valuation allowance was not required for a significant portion of its deferred tax assets. A valuation allowance of $10.5 million and $6.8 million remained as of July 31, 2016 and 2015 , respectively, primarily for California research and development credits and net operating loss carryforwards that were not more likely than not realizable. As of July 31, 2016 , the Company had U. S. federal, California and other states net operating loss (“NOL”) carryforwards of $221.7 million , $68.5 million , and $114.3 million , respectively. The U. S. federal and California NOL carryforwards will start to expire in 2022 and 2017 , respectively. The Company had research and development tax credit (“R&D credit”) carryforwards of the following: As of July 31, 2016 (in thousands) U.S. federal $ 18,820 California 18,529 Total R&D credit carryforwards $ 37,349 The U.S. federal R&D credit will start to expire in 2023 . California R&D tax credits have no expiration. The excess tax benefits associated with stock option exercises are recorded directly to stockholders’ equity only when realized through reduction to income tax payable on the tax returns. As a result, the pre-tax excess tax benefits included in federal and California net operating loss carryforwards on the tax returns but not reflected in deferred tax assets for fiscal year 2016 are $195.5 million and $49.8 million , respectively. Federal and California laws impose restrictions on the utilization of net operating loss carryforwards and R&D credit carryforwards in the event of a change in ownership of the Company, which constitutes an “ownership change” as defined by Internal Revenue Code Sections 382 and 383. The Company experienced an ownership change in the past that does not materially impact the availability of its net operating losses and tax credits. Nevertheless, should there be an ownership change in the future, the Company’s ability to utilize existing carryforwards could be substantially restricted. The Company provides U.S. income taxes on the earnings of foreign subsidiaries, unless the subsidiaries’ earnings are considered indefinitely reinvested outside the United States. As of July 31, 2016 , U.S. income taxes were not provided for on the cumulative total of $29.7 million in undistributed earnings from profitable foreign subsidiaries. As of July 31, 2016 , the unrecognized deferred tax liability for these earnings was approximately $9.7 million . Unrecognized Tax Benefits The following table summarizes the activity related to unrecognized tax benefits: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Unrecognized tax benefit - beginning of period $ 6,109 $ 7,976 $ 6,727 Gross increases - prior period tax positions 177 1 140 Gross decreases - prior period tax positions (216 ) (2,896 ) (508 ) Gross increases - current period tax positions 1,617 1,028 1,617 Unrecognized tax benefit - end of period $ 7,687 $ 6,109 $ 7,976 During the year ended July 31, 2016 , the Company’s unrecognized tax benefits increased by $1.6 million , primarily associated with the Company’s U.S. federal and California R&D tax credits. As of July 31, 2016 , the Company had unrecognized tax benefits of $3.7 million that, if recognized, would affect the Company’s effective tax rate. The Company or one of its subsidiaries files income taxes in the U.S. federal jurisdiction and various states and foreign jurisdictions. If the Company utilizes net operating losses or tax credits in future years, the U.S. federal, state and local, and non-U.S. tax authorities may examine the tax returns covering the period in which the net operating losses and tax credits arose. As a result, the Company’s tax returns in the U.S. and California remain open to examination from fiscal years 2002 through 2016 . As of July 31, 2016 , the Company has no tax audits in progress in the U.S. and in our foreign jurisdictions. |
Defined Contributions and Other
Defined Contributions and Other Postretirement Plans | 12 Months Ended |
Jul. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Contributions and Other Postretirement Plans | Defined Contribution and Other Post-retirement Plans The Company’s employee savings and retirement plan in the United States is qualified under Section 401(k) of the Internal Revenue Code. Employees on the Company’s U.S. payroll are automatically enrolled when they meet eligibility requirements, unless they decline participation. Upon enrollment employees are provided with tax-deferred salary deductions and alternative investment options. Employees may contribute up to 60% of their eligible salary up to the statutory prescribed annual limit. The Company matches employees’ contributions up to $5,000 per participant per calendar year. Certain of the Company’s foreign subsidiaries also have defined contribution plans in which a majority of its employees participate and the Company makes matching contributions. The Company’s contributions to its 401(k) and foreign subsidiaries’ plans were $5.5 million , $4.3 million and $3.2 million for the fiscal years ended July 31, 2016 , 2015 and 2014 , respectively. |
Segment Information
Segment Information | 12 Months Ended |
Jul. 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 revenue information for the Company’s license, maintenance and professional services offerings, while all other financial information is reviewed on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States. The following table sets forth revenues by country and region based on the billing address of the customer: Fiscal years ended July 31, 2016 2015 2014 (in thousands) United States $ 230,935 $ 208,104 $ 203,791 Canada 44,717 37,833 39,100 Other Americas 18,114 7,162 8,106 Total Americas 293,766 253,099 250,997 United Kingdom 34,031 44,393 37,890 Other EMEA 41,914 47,449 35,149 Total EMEA 75,945 91,842 73,039 APAC 54,735 35,596 26,210 Total revenues $ 424,446 $ 380,537 $ 350,246 No country other than those listed above accounted for more than 10% of revenues during the years ended July 31, 2016 , 2015 and 2014 . The following table sets forth the Company’s long-lived assets, including goodwill and intangibles, net by geographic region: July 31, 2016 July 31, 2015 (in thousands) Americas $ 53,826 $ 22,746 EMEA 3,085 2,183 APAC 328 435 Total $ 57,239 $ 25,364 |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On August 4, 2016, the Company entered into an agreement to purchase all of the outstanding equity interests of FirstBest Systems, Inc., a provider of an underwriting management system to P&C insurers. On August 31, 2016 , the Company completed its acquisition of FirstBest Systems, Inc. Total consideration for the transaction was approximately $34 million in cash payable at closing, subject to standard purchase price adjustments and escrows. The transaction will be accounted for as a business combination and the preliminary purchase price allocation will be included in the Company’s first quarter of fiscal year 2017 results. |
The Company and Summary of Si20
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Business | Company Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc. together with its subsidiaries (the “Company”) provides a technology platform which consists of three key elements: core transaction processing, data management and analytics, and digital engagement. It supports core insurance operations, including underwriting and policy administration, claim management and billing, 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 are primarily insurance carriers for property and casualty insurance. | |
Basis of Presentation | Basis of Presentation and Consolidation Our consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of Guidewire Software, Inc. and its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from these estimates. | |
Foreign Currency Translation | Foreign Currency The functional currency of the Company’s foreign subsidiaries is their respective local currency. The Company translates all assets and liabilities of foreign subsidiaries to U.S. dollars at the current exchange rate as of the applicable consolidated balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period in which the transactions occur. The effects of foreign currency translations are recorded in accumulated other comprehensive income/loss as a separate component of stockholders’ equity in the accompanying consolidated statements of stockholders’ equity. Transaction gains and losses from foreign currency transactions that arise from exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are recorded as other income (expense) in the consolidated statements of income. | |
Cash, Cash Equivalents, Investments and Restricted cash | Cash and Cash Equivalents Cash and cash equivalents are comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Cash equivalents consist of commercial paper and money market funds. Investments Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. All investments are held as available-for-sale investments. The Company classifies investments as short-term when they have remaining contractual maturities of one year or less from the balance sheet date, and as long-term when the investments have remaining contractual maturities of more than one year from the balance sheet date. All investments are recorded at fair value with unrealized holding gains and losses included in accumulated other comprehensive (loss) income. | |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs that do not extend the life or improve an asset are expensed in the period incurred. The estimated useful lives of property and equipment are as follows: Computer hardware 3 years Software 3 years Furniture and fixtures 3 years Leasehold improvements Shorter of the lease term or estimated useful life | |
Product Development Costs | Product Development Costs Certain software development costs incurred subsequent to the establishment of technological feasibility are subject to capitalization and amortized over the estimated lives of the related products. Technological feasibility is established upon completion of a working model. Through July 31, 2016 , costs incurred subsequent to the establishment of technological feasibility have not been material, and therefore, all software development costs have been charged to research and development expense in the accompanying consolidated statements of income as incurred. | |
Business Combinations | Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. Goodwill is calculated as the difference between the acquisition-date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and subject to refinement and, as a result, actual results may differ from estimates. During the measurement period, which may be up to one year from the acquisition date, if new information is obtained about facts and circumstances that existed as of the acquisition date, the Company may record adjustments to the fair value of these assets and liabilities, with the corresponding offset to goodwill. The Company adopted ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments (Topic 805)” (“ASU 2015-16”), which requires the cumulative impact of measurement period adjustments (including the impact on prior periods) to be recognized in the reporting period in which the adjustments are identified. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. | 0 |
Impairment of Long-Lived Assets, Intangible Assets and Goodwill | Impairment of Long-Lived Assets, Intangible Assets and Goodwill The Company evaluates its long-lived assets, consisting of property and equipment and intangible assets, for indicators of possible impairment when events or changes in circumstances indicate that the carrying amount of certain assets may not be recoverable. Impairment exists if the carrying amounts of such assets exceed the estimates of future net undiscounted cash flows expected to be generated by such assets. Should impairment exist, the impairment loss would be measured based on the excess carrying value of the assets over the estimated fair value of the assets. The Company has not written down any of its long-lived assets as a result of impairment during any of the periods presented. The Company tests goodwill for impairment annually during the fourth quarter of each fiscal year and in the interim whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company evaluates qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. In performing the qualitative assessment, the Company considers events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting unit’s net assets and changes in the price of the Company’s common stock. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the two-step goodwill impairment test is not performed. The Company has not recognized any goodwill impairment as a result of its impairment analysis during any of the periods presented. | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments and accounts receivable. The Company maintains its cash, cash equivalents and investments with high quality financial institutions. The Company is exposed to credit risk for cash held in financial institutions in the event of a default to the extent that such amounts recorded on the balance sheet are in excess of amounts that are insured by the Federal Deposit Insurance Corporation (“FDIC”). No customer individually accounted for 10% or more of the Company’s revenues for the years ended July 31, 2016 , 2015 and 2014 . No customer individually accounted for 10% or more of the Company’s total accounts receivable as of July 31, 2016 and 2015 . | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amounts, net of the Company’s estimated allowances for doubtful accounts. The allowance for doubtful accounts is estimated based on an assessment of the Company’s ability to collect on customer accounts receivable, and there is judgment involved in such assessment. The Company regularly reviews the allowance by considering certain factors such as historical experience, industry data, credit quality, age of accounts receivable balances, customers’ financial condition and current economic conditions that may affect a customer’s ability to pay. The Company has had no allowance for doubtful accounts in the periods presented in this Annual Report on Form 10-K. The Company’s accounts receivable are not collateralized by any security. | |
Revenue Recognition | Revenue Recognition The Company enters into arrangements to deliver multiple products or services (multiple-elements). The Company applies software revenue recognition rules and allocates the total revenues among elements based on vendor-specific objective evidence (“VSOE”) of fair value of each element. The Company recognizes revenue on a net basis excluding 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. 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. In certain cases extended payment terms may be offered resulting in term and perpetual license fees to not be considered to be fixed or determinable until they become due or payment is received. • 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. The Company sells some of its software licenses on a subscription basis and the related revenues are recognized ratably over the contract term. In certain professional service offerings sold as fixed fee arrangements, the Company recognizes services revenues on a proportional performance basis as performance obligations are completed by using the ratio of labor hours to date as an input measure compared to total estimated labor hours for the consulting services. In cases where professional services are deemed to be essential to the functionality of the software, the arrangement is accounted for using contract accounting until the essential services are complete. If reliable estimates of total project costs can be made, the Company applies the percentage-of-completion method whereby percentage toward completion is measured by using the ratio of service billings to date compared to total estimated service billings for the consulting services. Service billings approximate labor hours as an input measure since they are generally billed monthly on a time and material basis. The fees related to the maintenance are recognized over the period the maintenance is provided. If reliable estimates of total project costs cannot be made, the zero gross margin or the completed contract method is applied to revenues and direct costs. Under the zero gross margin method, revenues recognized are limited to the direct costs incurred for the implementation services. Under the completed contract method, revenues and costs are deferred until the project is complete. | |
Deferred Revenues | As noted above, the Company generally invoices fees for licenses and maintenance to its customers 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. | |
Sales Commissions | Sales Commissions Sales commissions are recognized as an expense when earned by the sales representative, generally occurring at the time the customer order is signed. Substantially all of the effort by the sales force is expended through the time of closing the sale, with limited to no involvement thereafter. | |
Warranties | Warranties The Company generally provides a warranty for its software products and services to its customers for periods ranging from 3 to 12 months . The Company’s software products are generally warranted to be free of defects in materials and workmanship under normal use and the products are also generally warranted to substantially perform as described in published documentation. The Company’s services are generally warranted to be performed in a professional manner and to materially conform to the specifications set forth in the related customer contract. In the event there is a failure of such warranties, the Company generally will correct the problem or provide a reasonable workaround or replacement product. If the Company cannot correct the problem or provide a workaround or replacement product, then the customer’s remedy is generally limited to refund of the fees paid for the nonconforming product or services. Warranty expense has been insignificant. | |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and amounts incurred were not material during the years ended July 31, 2016 , 2015 and 2014 . | |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense related to stock options and restricted stock units (“RSUs”) granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The awards are subject to time-based vesting, which generally occurs over a period of four years. Option awards expire 10 years from the grant date. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, of the Company’s stock options using the Black-Scholes option-pricing model. The Company recognizes the fair value of stock-based compensation for awards which contain only service conditions on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the compensation cost for awards which contain performance conditions based upon the probability of that performance condition being met, net of estimated forfeitures, using the graded method. | |
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. The Company 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. 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 consolidated statement of income. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncement Improvements on Employee Share-Based Payment Accounting In March 2016, the FASB issued Accounting Standards Update No. 2016-09, “Improvements on Employee Share-Based Payment Accounting (Topic 718)” (“ASU 2016-09”), which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new standard is effective for annual periods beginning after December 15, 2016 and interim periods within those years. Early adoption is permitted. The standard will be effective for the Company beginning August 1, 2017. The Company is currently evaluating the impact to its consolidated financial statements. Accounting for Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for annual periods beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. The standard will be effective for the Company beginning August 1, 2019. The Company is currently evaluating the impact to its consolidated financial statements. 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 August 2015, the FASB issued ASU No. 2015-14 which 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. Subsequently, the FASB issued ASU No. 2016-08, Principal Versus Agent Consideration (or Reporting Revenue Gross versus Net) in March 2016, ASU No. 2016-10, Identifying Performance Obligations and Licensing in April 2016, and ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients in May 2016. These amendments do not change the core principle of revenue recognition but clarified certain aspects of Topic 606. The Company will adopt the guidance on August 1, 2018 and currently intends to select the cumulative effect transition method. In evaluating the potential impacts that this guidance will have on its consolidated financial statements, the Company has begun to revise its contracting practices primarily by shortening the initial non-refundable term of its licenses. | |
Earnings Per Share | The Company calculates basic earnings per share by dividing the net income by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock and restricted stock units are considered to be common stock equivalents. |
The Company and Summary of Si21
The Company and Summary of Significant Accounting Policies and Estimates (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated useful lives of property and equipment | The estimated useful lives of property and equipment are as follows: Computer hardware 3 years Software 3 years Furniture and fixtures 3 years Leasehold improvements Shorter of the lease term or estimated useful life |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Available-for-sale investments within cash equivalents and investments consist of the following: July 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (in thousands) U.S. agency securities $ 58,070 $ 30 $ (12 ) $ 58,088 Commercial paper 152,317 12 (6 ) 152,323 Corporate bonds 274,656 321 (38 ) 274,939 U.S. government bonds 90,593 58 (2 ) 90,649 Foreign government bonds 2,418 9 — 2,427 Money market funds 114,833 — — 114,833 Total $ 692,887 $ 430 $ (58 ) $ 693,259 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: July 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) U.S. agency securities $ 7,961 $ (12 ) $ — $ — $ 7,961 $ (12 ) Commercial paper 47,484 (6 ) — — 47,484 (6 ) Corporate bonds 56,197 (28 ) 7,755 (10 ) 63,952 (38 ) U. S. government bonds 10,029 (2 ) — — 10,029 (2 ) Total $ 121,671 $ (48 ) $ 7,755 $ (10 ) $ 129,426 $ (58 ) |
Investments Classified by Contractual Maturity Date | The following table summarizes the contractual maturities of the Company’s available-for-sale securities as of July 31, 2016 : Less Than 12 Months 12 to 24 Months Total (in thousands) U.S. agency securities $ 51,539 $ 6,549 $ 58,088 Commercial paper 152,323 — 152,323 Corporate bonds 205,434 69,505 274,939 U.S. government bonds 61,565 29,084 90,649 Foreign government bonds — 2,427 2,427 Money market funds 114,833 — 114,833 Total $ 585,694 $ 107,565 $ 693,259 |
Company's financial instruments measured at fair value on a recurring basis | The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy: July 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents: Commercial paper $ — $ 66,206 $ — $ 66,206 Money market funds 114,833 — — 114,833 Short-term investments: U.S. agency securities — 51,539 — 51,539 Commercial paper — 86,117 — 86,117 U. S. government bonds — 61,565 — 61,565 Corporate bonds — 205,434 — 205,434 Long-term investments: U.S. agency securities — 6,549 — 6,549 Corporate bonds — 69,505 — 69,505 U.S. government bonds — 29,084 — 29,084 Foreign government bonds — 2,427 — 2,427 Total assets $ 114,833 $ 578,426 $ — $ 693,259 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 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocation of the purchase price is preliminary pending final valuation of acquired deferred tax assets and is therefore subject to potential future measurement period adjustments. Preliminary allocation of the purchase consideration was as follows: Total Purchase Price Allocation Estimated Useful Lives (in thousands) (in years) Assumed Liabilities, net of acquired assets $ (550 ) Developed technology 6,700 4 Customer contracts and related relationships 4,500 9 Partner relationships 200 9 Order backlog 1,100 3 Deferred tax assets, net 7,325 Goodwill 20,875 Total purchase price $ 40,150 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Property and equipment | Property and Equipment, net Property and equipment, net consists of the following: July 31, 2016 July 31, 2015 (in thousands) Computer hardware $ 19,257 $ 15,099 Software 5,066 4,867 Furniture and fixtures 3,492 3,065 Leasehold improvements 8,434 8,040 Total property and equipment 36,249 31,071 Less accumulated depreciation (23,294 ) (18,911 ) Property and equipment, net $ 12,955 $ 12,160 |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents changes in the carrying amount of goodwill acquired: (in thousands) Goodwill, July 31, 2014 $ 9,205 Changes in carrying value — Goodwill, July 31, 2015 $ 9,205 Addition - EagleEye acquisition 20,875 Goodwill, July 31, 2016 $ 30,080 Intangible assets consist of the following: July 31, 2016 July 31, 2015 (in thousands) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Amortized intangible assets: Acquired technology $ 13,900 $ 5,199 8,701 $ 7,200 3,201 $ 3,999 Customer contracts and related relationships $ 4,500 $ 167 4,333 — — — Partner relationships $ 200 $ 8 192 — — — Order backlog $ 1,100 $ 122 978 — — — Total $ 19,700 $ 5,496 $ 14,204 $ 7,200 $ 3,201 $ 3,999 |
Future Amortization Expense | Estimated aggregate amortization expense for each of the next five fiscal years is as follows: Future Amortization (in thousands) 2017 $ 4,004 2018 3,682 2019 2,442 2020 1,639 2021 522 Thereafter 1,915 Total $ 14,204 |
Accrued Employee Compensation | Accrued Employee Compensation Accrued employee compensation consists of the following: July 31, 2016 July 31, 2015 (in thousands) Accrued bonuses $ 24,872 $ 19,819 Accrued commission 2,571 5,008 Accrued vacation 9,067 7,980 Accrued salaries, payroll taxes and benefits 4,757 4,428 Total $ 41,267 $ 37,235 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component were as follows: Foreign Currency Items Unrealized gain (loss) on available-for-sale securities Total (In thousands) Balance as of July 31, 2014 $ (1,310 ) $ (57 ) $ (1,367 ) Other comprehensive income (loss) before reclassification adjustments: (4,937 ) (121 ) (5,058 ) Amounts reclassified from accumulated other comprehensive income (loss) to earnings — 44 44 Tax effect — 38 38 Balance as of July 31, 2015 (6,247 ) (96 ) (6,343 ) Other comprehensive income (loss) before reclassification adjustments: (562 ) 475 (87 ) Amounts reclassified from accumulated other comprehensive income (loss) to earnings — 24 24 Tax effect — (187 ) (187 ) Balance as of July 31, 2016 $ (6,809 ) $ 216 $ (6,593 ) |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jul. 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 per share for the years ended July 31, 2016 , 2015 and 2014 : Fiscal years ended July 31, 2016 2015 2014 (in thousands, except share and per share amounts) Numerator: Net income $ 14,976 $ 9,885 $ 14,721 Net income per share: Basic $ 0.21 $ 0.14 $ 0.22 Diluted $ 0.20 $ 0.14 $ 0.21 Fiscal years ended July 31, 2016 2015 2014 Denominator: Weighted average shares used in computing net income per share: Basic 72,026,694 70,075,908 65,748,896 Weighted average effect of diluted stock options 859,855 1,223,106 1,896,766 Weighted average effect of dilutive restricted stock units 879,411 1,015,419 1,467,071 Diluted 73,765,960 72,314,433 69,112,733 |
Outstanding antidilutive shares of common stock equivalents | The following outstanding shares of common stock equivalents are excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive: Fiscal years ended July 31, 2016 2015 2014 Stock options to purchase common stock 77,737 290,670 206,136 Restricted stock units 22,994 678 76,840 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future commitments and obligations under the operating leases | The following table presents a summary of the Company’s contractual obligations and commitments as of July 31, 2016 : Lease Obligations Royalty Obligations (1) Purchase Commitments (2) Total Fiscal Year Ending July 31, (in thousands) 2017 $ 7,273 $ 997 $ 1,743 $ 10,013 2018 6,638 666 1,429 8,733 2019 6,198 517 76 6,791 2020 1,324 250 — 1,574 2021 1,146 — — 1,146 2022 and thereafter $ 1,260 $ — $ — $ 1,260 Total $ 23,839 $ 2,430 $ 3,248 $ 29,517 (1) Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements. (2) Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent non-cancellable long term commitments for which a penalty would be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement. |
Stockholders' Equity and Stoc27
Stockholders' Equity and Stock-based Compensation (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Stockholders' Equity and Stock-based Compensation [Abstract] | |
Stock-based compensation expense | Stock-based compensation cost related to options and restricted stock units (“RSUs”) granted to employee and non-employee is as follows: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Total cost of stock-based compensation $ 66,409 $ 51,375 $ 42,538 Amount capitalized in deferred cost of services revenues during the year $ (278 ) $ — $ — Amount charged to income $ 66,131 $ 51,375 $ 42,538 Stock-based compensation cost charged to the following expense categories: Cost of license revenues $ 433 $ 222 $ 184 Cost of maintenance revenues 1,491 1,158 797 Cost of services revenues 17,878 15,022 11,929 Research and development 15,555 10,683 9,008 Sales and marketing 15,090 12,090 10,744 General and administrative 15,684 12,200 9,876 Total stock-based compensation expense 66,131 51,375 42,538 Tax benefit from stock-based compensation 20,092 19,087 15,905 Total stock-based compensation expense, net of tax effect $ 46,039 $ 32,288 $ 26,633 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | As of July 31, 2016 , total unrecognized compensation cost, adjusted for estimated forfeitures and before tax benefit, was as follows: As of July 31, 2016 Unrecognized Expense Weighted Average Expected Recognition Period (in thousands) (in years) Restricted stock units $ 109,968 2.4 Stock options 2,621 1.7 $ 112,589 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | RSU activity under the Company’s equity incentive plans is as follows: Number of RSUs Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (1) (in thousands) Balance as of July 31, 2013 4,027,601 $ 19.27 $ 176,248 Granted 1,667,433 43.87 Released (2,007,423 ) 18.59 $ 91,300 Canceled (303,390 ) 31.48 Balance as of July 31, 2014 3,384,221 30.70 $ 137,061 Granted 1,664,413 47.50 Released (1,819,825 ) 25.99 $ 88,648 Canceled (346,135 ) 36.72 Balance as of July 31, 2015 2,882,674 42.65 $ 170,222 Granted 1,586,192 54.99 Released (1,408,746 ) 41.21 $ 78,763 Canceled (332,396 ) 46.71 Balance as of July 31, 2016 2,727,724 $ 50.08 $ 167,673 Expected to vest as of July 31, 2016 2,553,456 $ 49.87 $ 156,961 (1) Aggregate intrinsic value at each fiscal year end represents the total market value of RSUs at the Company’s closing stock price of $61.47 , $59.05 and $40.50 on July 31, 2016 , 2015 and 2014 , respectively. Aggregate intrinsic value for released RSUs represents the total market value of released RSUs at date of release. |
Schedule of Share-based Compensation, Stock options, Activity | Stock option activity under the Company’s equity incentive plans is as follows: Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in years) (in thousands) Balance as of July 31, 2013 3,763,228 $ 6.74 5.7 $ 139,315 Granted 225,930 46.63 Exercised (1,580,344 ) 5.53 65,300 Canceled (8,561 ) 21.75 Balance as of July 31, 2014 2,400,253 11.24 5.5 71,640 Granted 138,643 47.23 Exercised (665,665 ) 9.46 27,263 Canceled (51,169 ) 23.04 Balance as of July 31, 2015 1,822,062 14.29 4.9 81,548 Granted 10,000 54.00 Exercised (652,832 ) 12.01 29,186 Canceled (20,658 ) 40.86 Balance as of July 31, 2016 1,158,572 $ 15.45 4.0 $ 53,316 Vested and expected to vest as of July 31, 2016 1,153,815 $ 15.32 4.0 $ 53,252 Exercisable as of July 31, 2016 1,010,609 $ 10.95 3.5 $ 51,060 (1) Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $61.47 , $59.05 and $40.50 on July 31, 2016 , 2015 and 2014 and the exercise price of the option, respectively. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. |
Stock options valuation assumptions | The per share fair value of each stock option was determined using the Black-Scholes option-pricing model with the following assumptions: Fiscal years ended July 31, 2016 2015 2014 Expected life (in years) 4.9 6.0 - 6.1 5.0 - 6.1 Risk-free interest rate 1.5% 1.7% - 1.9% 1.5% - 2.0% Expected volatility 38.8% 39.4% - 45.1% 41.3% - 46.2% Expected dividend yield —% —% —% Weighted average fair value of options granted $19.18 $20.78 $21.06 |
Common Stock Reserved for Issuance | As of July 31, 2016 and 2015 , the Company had reserved shares of common stock for future issuance as follows: July 31, 2016 July 31, 2015 Exercise of stock options to purchase common stock 1,158,572 1,822,062 Vesting of restricted stock units 2,727,724 2,882,674 Shares available for grant under stock plans 16,746,754 14,363,906 Total common stock reserved for issuance 20,633,050 19,068,642 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Company's income (loss) before provision for income taxes | The Company’s income before provision for income taxes for the years ended July 31, 2016 , 2015 and 2014 is as follows: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Domestic $ 11,209 $ 11,348 $ 11,956 International 9,573 5,392 7,990 Income before provision for income taxes $ 20,782 $ 16,740 $ 19,946 |
Schedule of Components of Income Tax Expense | The provision for income taxes consists of the following: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Current: U.S. federal $ 4,936 $ 2,509 $ 5,235 State 1,006 300 1,326 Foreign 4,350 3,910 2,509 Total current 10,292 6,719 9,070 Deferred: U.S. federal (4,867 ) 983 (4,277 ) State 631 169 78 Foreign (250 ) (1,016 ) 354 Total deferred (4,486 ) 136 (3,845 ) Total provision for income taxes $ 5,806 $ 6,855 $ 5,225 |
Effective Income Tax Rate Reconciliation | Differences between income taxes calculated using the statutory federal income tax rate of 35% and the provision for income taxes are as follows: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Statutory federal income tax $ 7,274 $ 5,858 $ 6,977 Nondeductible items and other 2,289 1,575 1,164 State income taxes, net of federal benefit 191 388 840 Impact of state rate changes 1,132 — — Foreign income taxed at different rates 945 816 (207 ) Tax credits (5,963 ) (1,697 ) (3,612 ) Change in valuation allowance (62 ) (85 ) 63 Total provision for income taxes $ 5,806 $ 6,855 $ 5,225 |
Tax effects of temporary differences | The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities are as follows: As of July 31, 2016 2015 (in thousands) Accruals and reserves $ 11,618 $ 9,974 Stock-based compensation 6,874 5,534 Deferred revenues 1,513 410 Property and equipment 1,815 914 Net operating loss carryforwards 10,333 436 Tax credits 12,145 10,435 Total deferred tax assets 44,298 27,703 Less valuation allowance 10,505 6,783 Net deferred tax assets 33,793 20,920 Less deferred tax liabilities: Intangible assets 2,429 1,179 Total net deferred tax assets $ 31,364 $ 19,741 |
Net operating loss carryforwards | The Company had research and development tax credit (“R&D credit”) carryforwards of the following: As of July 31, 2016 (in thousands) U.S. federal $ 18,820 California 18,529 Total R&D credit carryforwards $ 37,349 |
Summary of activity related to unrecognized tax benefits | The following table summarizes the activity related to unrecognized tax benefits: Fiscal years ended July 31, 2016 2015 2014 (in thousands) Unrecognized tax benefit - beginning of period $ 6,109 $ 7,976 $ 6,727 Gross increases - prior period tax positions 177 1 140 Gross decreases - prior period tax positions (216 ) (2,896 ) (508 ) Gross increases - current period tax positions 1,617 1,028 1,617 Unrecognized tax benefit - end of period $ 7,687 $ 6,109 $ 7,976 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 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: Fiscal years ended July 31, 2016 2015 2014 (in thousands) United States $ 230,935 $ 208,104 $ 203,791 Canada 44,717 37,833 39,100 Other Americas 18,114 7,162 8,106 Total Americas 293,766 253,099 250,997 United Kingdom 34,031 44,393 37,890 Other EMEA 41,914 47,449 35,149 Total EMEA 75,945 91,842 73,039 APAC 54,735 35,596 26,210 Total revenues $ 424,446 $ 380,537 $ 350,246 |
Property and equipment, net by geographic region | The following table sets forth the Company’s long-lived assets, including goodwill and intangibles, net by geographic region: July 31, 2016 July 31, 2015 (in thousands) Americas $ 53,826 $ 22,746 EMEA 3,085 2,183 APAC 328 435 Total $ 57,239 $ 25,364 |
The Company and Summary of Si30
The Company and Summary of Significant Accounting Policies and Estimates (Details) | 12 Months Ended |
Jul. 31, 2016 | |
Computer hardware [Member] | |
Estimated useful lives of property and equipment | |
Estimated useful lives of property and equipment (in years) | 3 years |
Software [Member] | |
Estimated useful lives of property and equipment | |
Estimated useful lives of property and equipment (in years) | 3 years |
Furniture and Fixtures [Member] | |
Estimated useful lives of property and equipment | |
Estimated useful lives of property and equipment (in years) | 3 years |
Leasehold improvements [Member] | |
Estimated useful lives of property and equipment | |
Estimated useful lives of property and equipment | Shorter of the lease term or estimated useful life |
The Company and Summary of Si31
The Company and Summary of Significant Accounting Policies and Estimates (Details Textual) | 12 Months Ended | ||
Jul. 31, 2016USD ($)customerrevenue_source | Jul. 31, 2015USD ($)customer | Jul. 31, 2014USD ($)customer | |
Goodwill, Intangible Assets and Long Lived Assets Impairment [Abstract] | |||
Goodwill | $ 30,080,000 | $ 9,205,000 | $ 9,205,000 |
Goodwill, Impairment Loss | $ 0 | $ 0 | |
Concentration of Credit Risk [Abstract] | |||
Number of customers concentration of credit risk revenues | customer | 0 | 0 | 0 |
Number of customers concentration of credit risk receivables | customer | 0 | 0 | |
Accounts Receivable and Allowance for Doubtful Accounts [Abstract] | |||
Allowance for doubtful accounts receivable | $ 0 | $ 0 | |
Revenue Recognition [Abstract] | |||
Number of revenue sources | revenue_source | 3 | ||
Restricted stock units RSUs [Member] | |||
Stock-based Compensation [Abstract] | |||
Period of RSUs time based vesting (in years) | 4 years | ||
Period of expiration for share based payment awards (in years) | 10 years | ||
Minimum [Member] | |||
Revenue Recognition [Abstract] | |||
Period of general payment term range considered collectability probable for revenue recognition (in days) | 30 days | ||
Warranties [Abstract] | |||
Warranty period provided for software products and services (in months) | 3 months | ||
Maximum [Member] | |||
Revenue Recognition [Abstract] | |||
Period of general payment term range considered collectability probable for revenue recognition (in days) | 90 days | ||
Term license duration (in years) | 1 year | ||
Warranties [Abstract] | |||
Warranty period provided for software products and services (in months) | 12 months |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 692,887 | $ 639,921 |
Unrealized Gains | 430 | 101 |
Unrealized Losses | (58) | (228) |
Estimated Fair Value | 693,259 | 639,794 |
U.S. agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 58,070 | 82,946 |
Unrealized Gains | 30 | 21 |
Unrealized Losses | (12) | (4) |
Estimated Fair Value | 58,088 | 82,963 |
Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 152,317 | 142,822 |
Unrealized Gains | 12 | 13 |
Unrealized Losses | (6) | (4) |
Estimated Fair Value | 152,323 | 142,831 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 274,656 | 281,942 |
Unrealized Gains | 321 | 47 |
Unrealized Losses | (38) | (216) |
Estimated Fair Value | 274,939 | 281,773 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 90,593 | 32,529 |
Unrealized Gains | 58 | 13 |
Unrealized Losses | (2) | (2) |
Estimated Fair Value | 90,649 | 32,540 |
Foreign government bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 2,418 | 8,663 |
Unrealized Gains | 9 | 7 |
Unrealized Losses | 0 | (2) |
Estimated Fair Value | 2,427 | 8,668 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 2,700 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 2,700 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 114,833 | 88,319 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 114,833 | $ 88,319 |
Fair Value of Financial Instr33
Fair Value of Financial Instruments (Details 2) $ in Thousands | Jul. 31, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | $ 121,671 |
Less than 12, Months, Gross Unrealized Losses | (48) |
12 Months or Greater, Fair Value | 7,755 |
12 Months or Greater, Gross Unrealized Losses | (10) |
Total, Fair Value | 129,426 |
Total, Gross Unrealized Losses | (58) |
U.S. government agencies [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | 7,961 |
Less than 12, Months, Gross Unrealized Losses | (12) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Gross Unrealized Losses | 0 |
Total, Fair Value | 7,961 |
Total, Gross Unrealized Losses | (12) |
Commercial paper [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | 47,484 |
Less than 12, Months, Gross Unrealized Losses | (6) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Gross Unrealized Losses | 0 |
Total, Fair Value | 47,484 |
Total, Gross Unrealized Losses | (6) |
Corporate bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | 56,197 |
Less than 12, Months, Gross Unrealized Losses | (28) |
12 Months or Greater, Fair Value | 7,755 |
12 Months or Greater, Gross Unrealized Losses | (10) |
Total, Fair Value | 63,952 |
Total, Gross Unrealized Losses | (38) |
US Treasury Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Less than 12 Months, Fair Value | 10,029 |
Less than 12, Months, Gross Unrealized Losses | (2) |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Gross Unrealized Losses | 0 |
Total, Fair Value | 10,029 |
Total, Gross Unrealized Losses | $ (2) |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | $ 585,694 | |
Expected maturities for the year ending July 31, 2016 | 107,565 | |
Estimated Fair Value | 693,259 | $ 639,794 |
U.S. agency securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 51,539 | |
Expected maturities for the year ending July 31, 2016 | 6,549 | |
Estimated Fair Value | 58,088 | 82,963 |
Commercial paper [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 152,323 | |
Expected maturities for the year ending July 31, 2016 | 0 | |
Estimated Fair Value | 152,323 | 142,831 |
Corporate bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 205,434 | |
Expected maturities for the year ending July 31, 2016 | 69,505 | |
Estimated Fair Value | 274,939 | 281,773 |
US Treasury Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 61,565 | |
Expected maturities for the year ending July 31, 2016 | 29,084 | |
Estimated Fair Value | 90,649 | 32,540 |
Foreign government bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 0 | |
Expected maturities for the year ending July 31, 2016 | 2,427 | |
Estimated Fair Value | 2,427 | 8,668 |
Money Market Funds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Expected maturities for the year ending July 31, 2015 | 114,833 | |
Expected maturities for the year ending July 31, 2016 | 0 | |
Estimated Fair Value | $ 114,833 | $ 88,319 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Details 4) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 693,259 | $ 639,794 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 114,833 | 88,319 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 578,426 | 551,475 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
U.S. agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 51,539 | 68,212 |
Long-term investments | 6,549 | 14,751 |
Total assets | 58,088 | 82,963 |
U.S. agency securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
U.S. agency securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 51,539 | 68,212 |
Long-term investments | 6,549 | 14,751 |
U.S. agency securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 66,206 | 86,085 |
Short-term investments | 86,117 | 56,746 |
Total assets | 152,323 | 142,831 |
Commercial paper [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Commercial paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 66,206 | 86,085 |
Short-term investments | 86,117 | 56,746 |
Commercial paper [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 205,434 | 202,964 |
Long-term investments | 69,505 | 78,809 |
Total assets | 274,939 | 281,773 |
Corporate bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 205,434 | 202,964 |
Long-term investments | 69,505 | 78,809 |
Corporate bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,700 | |
Total assets | 2,700 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,700 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 114,833 | 88,319 |
Total assets | 114,833 | 88,319 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 114,833 | 88,319 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Foreign government bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,668 | |
Long-term investments | 2,427 | |
Total assets | 2,427 | 8,668 |
Foreign government bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Long-term investments | 0 | |
Foreign government bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,668 | |
Long-term investments | 2,427 | |
Foreign government bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Long-term investments | 0 | |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 61,565 | 19,983 |
Long-term investments | 29,084 | 12,557 |
Total assets | 90,649 | 32,540 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 61,565 | 19,983 |
Long-term investments | 29,084 | 12,557 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | $ 0 | $ 0 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details Textual) $ in Millions | 1 Months Ended | 4 Months Ended | |
Dec. 31, 2015USD ($) | Apr. 01, 2016USD ($) | Jul. 31, 2016USD ($)investment | |
Fair Value Disclosures [Abstract] | |||
Investments in an unrealized loss positions (in investments) | investment | 44 | ||
Long-term Investments [Member] | Convertible Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment in convertible note receivable | $ 5 | ||
Accrued interest | $ 0.1 | ||
Long-term Investments [Member] | Preferred Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of cost method investment | 6 | ||
Long-term Investments [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Income [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain on fair value re-measurement | $ 0.9 | ||
Other Noncurrent Assets [Member] | Preferred Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of cost method investment | $ 6 |
Acquisition (Details)
Acquisition (Details) - USD ($) | Mar. 31, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 30,080,000 | $ 9,205,000 | $ 9,205,000 | |
EagleEye | ||||
Business Acquisition [Line Items] | ||||
Purchase consideration | $ 40,200,000 | |||
Future payments to employees | $ 1,600,000 | |||
Period of future employee payments | 18 months | |||
Goodwill | $ 20,875,000 | |||
Goodwill expected to be deducted for income tax purposes | 0 | |||
EagleEye | General and Administrative Expense [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs | $ 1,400,000 |
Acquisition - Purchase Price Al
Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 30,080 | $ 9,205 | $ 9,205 | |
Developed technology | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Lives | 4 years | |||
Customer contracts and related relationships | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Lives | 9 years | |||
Partner relationships | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Lives | 9 years | |||
Order backlog | ||||
Business Acquisition [Line Items] | ||||
Estimated Useful Lives | 3 years | |||
EagleEye | ||||
Business Acquisition [Line Items] | ||||
Assumed Liabilities, net of acquired assets | $ (550) | |||
Deferred tax assets, net | 7,325 | |||
Goodwill | 20,875 | |||
Total purchase price | 40,150 | |||
EagleEye | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets acquired | 6,700 | |||
EagleEye | Customer contracts and related relationships | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets acquired | 4,500 | |||
EagleEye | Partner relationships | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets acquired | 200 | |||
EagleEye | Order backlog | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets acquired | $ 1,100 |
Balance Sheet Components (Detai
Balance Sheet Components (Details 1) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Property and equipment | ||
Computer hardware | $ 19,257 | $ 15,099 |
Software | 5,066 | 4,867 |
Furniture and fixtures | 3,492 | 3,065 |
Leasehold improvements | 8,434 | 8,040 |
Total property and equipment | 36,249 | 31,071 |
Less accumulated depreciation | (23,294) | (18,911) |
Property and equipment, net | $ 12,955 | $ 12,160 |
Balance Sheet Components (Det40
Balance Sheet Components (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning of Period | $ 9,205 | $ 9,205 |
Changes in carrying value | 20,875 | 0 |
Goodwill, End of Period | $ 30,080 | $ 9,205 |
Balance Sheet Components (Det41
Balance Sheet Components (Details 3) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 19,700 | $ 7,200 |
Accumulated Amortization | 5,496 | 3,201 |
Total | 14,204 | 3,999 |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 13,900 | 7,200 |
Accumulated Amortization | 5,199 | 3,201 |
Total | 8,701 | 3,999 |
Customer contracts and related relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,500 | 0 |
Accumulated Amortization | 167 | 0 |
Total | 4,333 | 0 |
Partner relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 200 | 0 |
Accumulated Amortization | 8 | 0 |
Total | 192 | 0 |
Order backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,100 | 0 |
Accumulated Amortization | 122 | 0 |
Total | $ 978 | $ 0 |
Balance Sheet Components (Det42
Balance Sheet Components (Details 4) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
2,017 | $ 4,004 | |
2,018 | 3,682 | |
2,019 | 2,442 | |
2,020 | 1,639 | |
2,021 | 522 | |
Thereafter | 1,915 | |
Total | $ 14,204 | $ 3,999 |
Balance Sheet Components (Det43
Balance Sheet Components (Details 5) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Accrued employee compensation | ||
Accrued bonuses | $ 24,872 | $ 19,819 |
Accrued commission | 2,571 | 5,008 |
Accrued vacation | 9,067 | 7,980 |
Accrued salaries, payroll taxes and benefits | 4,757 | 4,428 |
Total | $ 41,267 | $ 37,235 |
Balance Sheet Components (Det44
Balance Sheet Components (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | $ (6,343) | $ (1,367) |
Other comprehensive income (loss) before reclassification adjustments: | (87) | (5,058) |
Amounts reclassified from accumulated other comprehensive income (loss) to earnings | 24 | 44 |
Tax effect | (187) | 38 |
Balance at end of period | (6,593) | (6,343) |
Accumulated Translation Adjustment [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | (6,247) | (1,310) |
Other comprehensive income (loss) before reclassification adjustments: | (562) | (4,937) |
Amounts reclassified from accumulated other comprehensive income (loss) to earnings | 0 | 0 |
Tax effect | 0 | 0 |
Balance at end of period | (6,809) | (6,247) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | (96) | (57) |
Other comprehensive income (loss) before reclassification adjustments: | 475 | (121) |
Amounts reclassified from accumulated other comprehensive income (loss) to earnings | 24 | 44 |
Tax effect | (187) | 38 |
Balance at end of period | $ 216 | $ (96) |
Balance Sheet Components (Det45
Balance Sheet Components (Details Textual) - USD ($) | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Balance Sheet Components (Additional Textual) [Abstract] | |||
Property and equipment pledged as collateral | $ 0 | $ 0 | |
Depreciation expense | 6,500,000 | 6,000,000 | $ 5,300,000 |
Amortization of intangible assets | $ 2,300,000 | $ 1,400,000 | $ 1,400,000 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Numerator: | |||
Net income | $ 14,976 | $ 9,885 | $ 14,721 |
Net income per share: | |||
Basic (in USD per share) | $ 0.21 | $ 0.14 | $ 0.22 |
Diluted (in USD per share) | $ 0.20 | $ 0.14 | $ 0.21 |
Weighted average shares used in computing net income per share: | |||
Basic (in shares) | 72,026,694 | 70,075,908 | 65,748,896 |
Weighted average effect of diluted stock options (in shares) | 859,855 | 1,223,106 | 1,896,766 |
Weighted average effect of dilutive restricted stock units (in shares) | 879,411 | 1,015,419 | 1,467,071 |
Diluted (in shares) | 73,765,960 | 72,314,433 | 69,112,733 |
Net Income per Share (Details 1
Net Income per Share (Details 1) - shares | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Stock options to purchase common stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Outstanding shares of common stock equivalents (in shares) | 77,737 | 290,670 | 206,136 |
Restricted stock units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Outstanding shares of common stock equivalents (in shares) | 22,994 | 678 | 76,840 |
Commitments and Contingencies48
Commitments and Contingencies (Details) $ in Thousands | Jul. 31, 2016USD ($) | |
Lease Obligations | ||
2,017 | $ 7,273 | |
2,018 | 6,638 | |
2,019 | 6,198 | |
2,020 | 1,324 | |
2,021 | 1,146 | |
2022 and thereafter | 1,260 | |
Total | 23,839 | |
Royalty Obligations | ||
2,017 | 997 | [1] |
2,018 | 666 | [1] |
2,019 | 517 | [1] |
2,020 | 250 | [1] |
2,021 | 0 | [1] |
2022 and thereafter | 0 | [1] |
Total | 2,430 | [1] |
Purchase Commitments | ||
2,017 | 1,743 | [2] |
2,018 | 1,429 | [2] |
2,019 | 76 | [2] |
2,020 | 0 | [2] |
2,021 | 0 | [2] |
2022 and thereafter | 0 | [2] |
Total | 3,248 | [2] |
Total | ||
2,017 | 10,013 | |
2,018 | 8,733 | |
2,019 | 6,791 | |
2,020 | 1,574 | |
2,021 | 1,146 | |
2022 and thereafter | 1,260 | |
Total | $ 29,517 | |
[1] | Royalty obligations primarily represent our obligations under our non-cancellable agreements related to software used in certain revenue-generating agreements. | |
[2] | Purchase commitments consist of agreements to purchase services, entered into in the ordinary course of business. These represent non-cancellable long term commitments for which a penalty would be imposed if the agreement was canceled for any reason other than an event of default as described by the agreement. |
Commitments and Contingencies49
Commitments and Contingencies (Details Textual) PLN in Millions | Dec. 05, 2011USD ($)ft² | Jul. 31, 2016USD ($)claimletter_of_credit | Jul. 31, 2015USD ($)claimletter_of_credit | Jul. 31, 2014USD ($) | Jul. 31, 2016PLNclaimletter_of_credit | Jul. 01, 2015USD ($) | Jun. 30, 2015USD ($) |
Commitments and contingencies (Textual) [Abstract] | |||||||
Duration of lease for a facility to serve as its corporate headquarters (in years) | 7 years | ||||||
Rentable area of current corporate headquarters (in square feet) | ft² | 97,674 | ||||||
Maximum borrowing capacity | $ 2,600,000 | ||||||
Lease expense for all worldwide facilities and equipment | $ 5,700,000 | $ 5,500,000 | $ 5,800,000 | ||||
Number of unsecured credit facilities outstanding (in letters) | letter_of_credit | 2 | 2 | 2 | ||||
Unsecured letter of credit | PLN | PLN 10 | ||||||
Letter of credits outstanding | $ 0 | $ 0 | |||||
Outstanding claims | claim | 0 | 0 | 0 | ||||
Letter of Credit [Member] | |||||||
Commitments and contingencies (Textual) [Abstract] | |||||||
Maximum borrowing capacity | $ 1,200,000 | ||||||
Line of Credit Associated With Operating Lease [Member] | |||||||
Commitments and contingencies (Textual) [Abstract] | |||||||
Maximum borrowing capacity | $ 400,000 | $ 800,000 |
Stockholders' Equity and Stoc50
Stockholders' Equity and Stock-based Compensation (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total cost of stock-based compensation | $ 66,409 | $ 51,375 | $ 42,538 |
Amount capitalized in deferred cost of services revenues during the year | (278) | 0 | 0 |
Amount charged to income | 66,131 | 51,375 | 42,538 |
Stock-based compensation expense | |||
Total stock-based compensation expense | 66,131 | 51,375 | 42,538 |
Tax benefit from stock-based compensation | 20,092 | 19,087 | 15,905 |
Total stock-based compensation expense, net of tax effect | 46,039 | 32,288 | 26,633 |
Cost of License Revenues [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 433 | 222 | 184 |
Cost of maintenance revenues [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 1,491 | 1,158 | 797 |
Cost of services revenues [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 17,878 | 15,022 | 11,929 |
Research and development [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 15,555 | 10,683 | 9,008 |
Sales and marketing [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | 15,090 | 12,090 | 10,744 |
General and administrative [Member] | |||
Stock-based compensation expense | |||
Total stock-based compensation expense | $ 15,684 | $ 12,200 | $ 9,876 |
Stockholders' Equity and Stoc51
Stockholders' Equity and Stock-based Compensation (Details 2) $ in Thousands | 12 Months Ended |
Jul. 31, 2016USD ($) | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized Expense | $ 112,589 |
Restricted stock units RSUs [Member] | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized Expense | $ 109,968 |
Average Expected Recognition Period (in years) | 2 years 4 months 24 days |
Stock options [Member] | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized Expense | $ 2,621 |
Average Expected Recognition Period (in years) | 1 year 8 months 12 days |
Stockholders' Equity and Stoc52
Stockholders' Equity and Stock-based Compensation (Details 3) - Restricted stock units RSUs [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Number of RSUs Outstanding (in shares) | |||
Balance at beginning of period (in shares) | 2,882,674 | 3,384,221 | 4,027,601 |
Granted (in shares) | 1,586,192 | 1,664,413 | 1,667,433 |
Released (in shares) | (1,408,746) | (1,819,825) | (2,007,423) |
Canceled (in shares) | (332,396) | (346,135) | (303,390) |
Balance at end of period (in shares) | 2,727,724 | 2,882,674 | 3,384,221 |
Expected to vest as of July 31, 2016 (in shares) | 2,553,456 | ||
Weighted Average Grant Date Fair Value (in dollars per share) | |||
Balance at beginning of period (in USD per share) | $ 42.65 | $ 30.70 | $ 19.27 |
Granted (in USD per share) | 54.99 | 47.50 | 43.87 |
Released (in USD per share) | 41.21 | 25.99 | 18.59 |
Canceled (in USD per share) | 46.71 | 36.72 | 31.48 |
Balance at end of period (in USD per share) | 50.08 | $ 42.65 | $ 30.70 |
Expected to vest as of July 31, 2016 (in USD per share) | $ 49.87 | ||
Aggregate Intrinsic Value (1) | |||
Balance at beginning of period | $ 170,222 | $ 137,061 | $ 176,248 |
Released | 78,763 | 88,648 | 91,300 |
Balance at end of period | 167,673 | $ 170,222 | $ 137,061 |
Expected to vest as of July 31, 2016 | $ 156,961 |
Stockholders' Equity and Stoc53
Stockholders' Equity and Stock-based Compensation (Details 4) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | ||
Number of Stock Options Outstanding (in shares) | |||||
Balance at beginning of period (in shares) | 1,822,062 | 2,400,253 | 3,763,228 | ||
Granted (in shares) | 10,000 | 138,643 | 225,930 | ||
Exercised (in shares) | (652,832) | (665,665) | (1,580,344) | ||
Canceled (in shares) | (20,658) | (51,169) | (8,561) | ||
Balance at end of period (in shares) | 1,158,572 | 1,822,062 | 2,400,253 | 3,763,228 | |
Vested and expected to vest as of July 31, 2016 (in shares) | 1,153,815 | ||||
Exercisable as of July 31, 2016 (in shares) | 1,010,609 | ||||
Weighted Average Exercise Price (in dollars per share) | |||||
Balance at beginning of period (in USD per share) | $ 14.29 | $ 11.24 | $ 6.74 | ||
Granted (in USD per share) | 54 | 47.23 | 46.63 | ||
Exercised (in USD per share) | 12.01 | 9.46 | 5.53 | ||
Canceled (in USD per share) | 40.86 | 23.04 | 21.75 | ||
Balance at end of period (in USD per share) | 15.45 | $ 14.29 | $ 11.24 | $ 6.74 | |
Vested and expected to vest as of July 31, 2016 (in USD per share) | 15.32 | ||||
Exercisable as of July 31, 2016 (in USD per share) | $ 10.95 | ||||
Weighted Average Remaining Contractual Life (in years) | |||||
Weighted average remaining contractual life | 4 years 11 days | 4 years 10 months 24 days | 5 years 5 months 29 days | 5 years 8 months 12 days | |
Vested and expected to vest as of July 31, 2016 | 4 years 4 days | ||||
Exercisable as of July 31, 2016 | 3 years 6 months | ||||
Aggregate Intrinsic Value | |||||
Aggregate Intrinsic Value | [1] | $ 53,316 | $ 81,548 | $ 71,640 | $ 139,315 |
Exercised | [1] | 29,186 | $ 27,263 | $ 65,300 | |
Vested and expected to vest as of July 31, 2016 | [1] | 53,252 | |||
Exercisable as of July 31, 2016 | [1] | $ 51,060 | |||
[1] | Aggregate intrinsic value at each fiscal year end represents the difference between the Company’s closing stock price of $61.47, $59.05 and $40.50 on July 31, 2016, 2015 and 2014 and the exercise price of the option, respectively. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. |
Stockholders' Equity and Stoc54
Stockholders' Equity and Stock-based Compensation (Details 6) - $ / shares | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Summary of assumptions for fair value of employee stock option estimates | |||
Risk-free interest rate, minimum (as a percent) | 1.50% | 1.70% | 1.50% |
Risk-free interest rate, maximum (as a percent) | 1.50% | 1.90% | 2.00% |
Expected volatility, minimum (as a percent) | 38.80% | 39.40% | 41.30% |
Expected volatility, maximum (as a percent) | 38.80% | 45.10% | 46.20% |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Weighted average grant date fair value of options granted (in dollars per share) | $ 19.18 | $ 20.78 | $ 21.06 |
Minimum [Member] | |||
Summary of assumptions for fair value of employee stock option estimates | |||
Expected life (in years) | 4 years 10 months 24 days | 6 years | 5 years |
Maximum [Member] | |||
Summary of assumptions for fair value of employee stock option estimates | |||
Expected life (in years) | 4 years 10 months 24 days | 6 years 22 days | 6 years 22 days |
Stockholders' Equity and Stoc55
Stockholders' Equity and Stock-based Compensation (Details 7) - shares | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 |
Common Stock Reserved for Issuance (in shares) | ||||
Exercise of stock options to purchase common stock | 1,158,572 | 1,822,062 | 2,400,253 | 3,763,228 |
Shares available for grant under stock plans | 16,746,754 | 14,363,906 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 20,633,050 | 19,068,642 | ||
Stock options [Member] | ||||
Common Stock Reserved for Issuance (in shares) | ||||
Exercise of stock options to purchase common stock | 1,158,572 | 1,822,062 | ||
Restricted stock units RSUs [Member] | ||||
Common Stock Reserved for Issuance (in shares) | ||||
Vesting of restricted stock units | 2,727,724 | 2,882,674 | 3,384,221 | 4,027,601 |
Stockholders' Equity and Stoc56
Stockholders' Equity and Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Sep. 14, 2011 | |
Class of Stock [Line Items] | ||||
Share price (in dollars per share) | $ 61.47 | $ 59.05 | $ 40.50 | |
Restricted stock units RSUs [Member] | ||||
Class of Stock [Line Items] | ||||
Share based compensation expense, performance based awards | $ 6.9 | $ 2.4 | $ 2.4 | |
Stock Plan 2011 [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares authorized | 7,500,000 | |||
Maximum increase in percentage of outstanding number of shares of the Company's common stock (as a percent) | 5.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Company's income (loss) before provision for income taxes | |||
Income before provision for income taxes | $ 20,782 | $ 16,740 | $ 19,946 |
Domestic [Member] | |||
Company's income (loss) before provision for income taxes | |||
Income before provision for income taxes | 11,209 | 11,348 | 11,956 |
International [Member] | |||
Company's income (loss) before provision for income taxes | |||
Income before provision for income taxes | $ 9,573 | $ 5,392 | $ 7,990 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Current: | |||
U.S. federal | $ 4,936 | $ 2,509 | $ 5,235 |
State | 1,006 | 300 | 1,326 |
Foreign | 4,350 | 3,910 | 2,509 |
Total current | 10,292 | 6,719 | 9,070 |
Deferred: | |||
U.S. federal | (4,867) | 983 | (4,277) |
State | 631 | 169 | 78 |
Foreign | (250) | (1,016) | 354 |
Total deferred | (4,486) | 136 | (3,845) |
Total provision for income taxes | $ 5,806 | $ 6,855 | $ 5,225 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Effective Income Tax Reconciliation | |||
Statutory federal income tax | $ 7,274 | $ 5,858 | $ 6,977 |
Nondeductible items and other | 2,289 | 1,575 | 1,164 |
State income taxes, net of federal benefit | 191 | 388 | 840 |
Impact of state rate changes | 1,132 | 0 | 0 |
Foreign income taxed at different rates | 945 | 816 | (207) |
Tax credits | (5,963) | (1,697) | (3,612) |
Change in valuation allowance | (62) | (85) | 63 |
Total provision for income taxes | $ 5,806 | $ 6,855 | $ 5,225 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Tax effects of temporary differences | ||
Accruals and reserves | $ 11,618 | $ 9,974 |
Stock-based compensation | 6,874 | 5,534 |
Deferred revenues | 1,513 | 410 |
Property and equipment | 1,815 | 914 |
Net operating loss carryforwards | 10,333 | 436 |
Tax credits | 12,145 | 10,435 |
Total deferred tax assets | 44,298 | 27,703 |
Less valuation allowance | 10,505 | 6,783 |
Net deferred tax assets | 33,793 | 20,920 |
Intangible assets | 2,429 | 1,179 |
Total net deferred tax assets | $ 31,364 | $ 19,741 |
Income Taxes (Details 4)
Income Taxes (Details 4) $ in Thousands | 12 Months Ended |
Jul. 31, 2016USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Research and Development Credits Carryforwards | $ 37,349 |
U.S. federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Research and Development Credits Carryforwards | 18,820 |
California [Member] | |
Operating Loss Carryforwards [Line Items] | |
Research and Development Credits Carryforwards | $ 18,529 |
Income Taxes (Details 5)
Income Taxes (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Summarizes the activity related to unrecognized tax benefits | |||
Unrecognized tax benefit - beginning of period | $ 6,109 | $ 7,976 | $ 6,727 |
Gross increases - prior period tax positions | 177 | 1 | 140 |
Gross decreases - prior period tax positions | (216) | (2,896) | (508) |
Gross increases - current period tax positions | 1,617 | 1,028 | 1,617 |
Unrecognized tax benefit - end of period | $ 7,687 | $ 6,109 | $ 7,976 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Income Taxes (Additional Textual) [Abstract] | |||
Percentage of statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Valuation allowance | $ 10,505 | $ 6,783 | |
Undistributed earnings from certain foreign subsidiaries | 29,700 | ||
Unrecognized deferred tax liability | 9,700 | ||
Decrease in long term liability associated with unrecognized tax benefits | (1,600) | ||
Unrecognized tax benefits | 3,700 | ||
U.S. federal [Member] | |||
Income Taxes (Additional Textual) [Abstract] | |||
Operating loss carryforwards | $ 221,700 | ||
R&D Credits expiration dates | 2,023 | ||
Unrealized excess tax benefits resulting from exercises of stock options | $ 195,500 | ||
California [Member] | |||
Income Taxes (Additional Textual) [Abstract] | |||
Operating loss carryforwards | 68,500 | ||
Unrealized excess tax benefits resulting from exercises of stock options | 49,800 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes (Additional Textual) [Abstract] | |||
Operating loss carryforwards | $ 114,300 |
Defined Contributions and Oth64
Defined Contributions and Other Postretirement Plans (Details Textual) - USD ($) | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Employee 401(k) Plan (Textual) [Abstract] | |||
Maximum Annual Contribution Per Employee, Percent | 60.00% | ||
Maximum Annual Contribution Per Employee, Amount | $ 5,000 | ||
Company's contributions | $ 5,500,000 | $ 4,300,000 | $ 3,200,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Revenues: | |||
Total revenues | $ 424,446 | $ 380,537 | $ 350,246 |
United States [Member] | |||
Revenues: | |||
Total revenues | 230,935 | 208,104 | 203,791 |
Canada [Member] | |||
Revenues: | |||
Total revenues | 44,717 | 37,833 | 39,100 |
Other Americas [Member] | |||
Revenues: | |||
Total revenues | 18,114 | 7,162 | 8,106 |
Americas [Member] | |||
Revenues: | |||
Total revenues | 293,766 | 253,099 | 250,997 |
United Kingdom [Member] | |||
Revenues: | |||
Total revenues | 34,031 | 44,393 | 37,890 |
Other EMEA [Member] | |||
Revenues: | |||
Total revenues | 41,914 | 47,449 | 35,149 |
EMEA [Member] | |||
Revenues: | |||
Total revenues | 75,945 | 91,842 | 73,039 |
APAC [Member] | |||
Revenues: | |||
Total revenues | $ 54,735 | $ 35,596 | $ 26,210 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Property and equipment, net by geographic region | ||
Property and equipment, net | $ 57,239 | $ 25,364 |
North America [Member] | ||
Property and equipment, net by geographic region | ||
Property and equipment, net | 53,826 | 22,746 |
Europe [Member] | ||
Property and equipment, net by geographic region | ||
Property and equipment, net | 3,085 | 2,183 |
Asia Pacific [Member] | ||
Property and equipment, net by geographic region | ||
Property and equipment, net | $ 328 | $ 435 |
Segment Information (Details Te
Segment Information (Details Textual) | 12 Months Ended | ||
Jul. 31, 2016customersegmentcountry | Jul. 31, 2015customercountry | Jul. 31, 2014customercountry | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | segment | 1 | ||
Number of Countries Concentration of Revenue | country | 0 | 0 | 0 |
Number of customers concentration of credit risk revenues | customer | 0 | 0 | 0 |
Minimum [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Aug. 31, 2016USD ($) |
FirstBest Systems, Inc [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Purchase consideration | $ 34 |