Cover Page
Cover Page - shares | 6 Months Ended | |
Jan. 31, 2022 | Feb. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35394 | |
Entity Registrant Name | Guidewire Software, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-4468504 | |
Entity Address, Address Line One | 2850 S. Delaware St., Suite 400 | |
Entity Address, City or Town | San Mateo | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94403 | |
City Area Code | 650 | |
Local Phone Number | 357-9100 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | GWRE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 83,547,734 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001528396 | |
Current Fiscal Year End Date | --07-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 257,378 | $ 384,910 |
Short-term investments | 562,753 | 734,517 |
Accounts receivable, net of allowances of $576 and $1,057, respectively | 111,705 | 104,068 |
Unbilled accounts receivable, net | 84,318 | 79,061 |
Prepaid expenses and other current assets | 61,423 | 52,729 |
Total current assets | 1,077,577 | 1,355,285 |
Long-term investments | 293,537 | 227,164 |
Unbilled accounts receivable, net | 19,665 | 24,361 |
Property and equipment, net | 81,692 | 80,061 |
Operating lease assets | 91,780 | 97,447 |
Intangible assets, net | 27,918 | 19,743 |
Goodwill | 372,062 | 340,877 |
Deferred tax assets, net | 166,587 | 138,428 |
Other assets | 52,807 | 38,479 |
TOTAL ASSETS | 2,183,625 | 2,321,845 |
CURRENT LIABILITIES: | ||
Accounts payable | 24,661 | 27,830 |
Accrued employee compensation | 53,516 | 102,137 |
Deferred revenue, net | 123,234 | 138,699 |
Other current liabilities | 29,740 | 31,648 |
Total current liabilities | 231,151 | 300,314 |
Lease liabilities | 108,941 | 115,374 |
Convertible senior notes, net | 350,921 | 343,825 |
Deferred revenue, net | 5,652 | 7,237 |
Other liabilities | 6,492 | 10,201 |
Total liabilities | 703,157 | 776,951 |
STOCKHOLDERS’ EQUITY: | ||
Common stock | 8 | 8 |
Additional paid-in capital | 1,687,982 | 1,617,204 |
Accumulated other comprehensive income (loss) | (12,014) | (6,218) |
Retained earnings (accumulated deficit) | (195,508) | (66,100) |
Total stockholders’ equity | 1,480,468 | 1,544,894 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,183,625 | $ 2,321,845 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 576 | $ 1,057 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Revenue: | ||||
Total revenue | $ 204,633 | $ 180,062 | $ 370,567 | $ 349,864 |
Cost of revenue: | ||||
Total cost of revenue | 107,984 | 91,902 | 211,163 | 182,869 |
Gross profit: | ||||
Total gross profit | 96,649 | 88,160 | 159,404 | 166,995 |
Operating expenses: | ||||
Research and development | 60,403 | 53,194 | 120,329 | 105,809 |
Sales and marketing | 51,167 | 39,216 | 94,798 | 75,860 |
General and administrative | 24,536 | 22,820 | 49,111 | 44,000 |
Total operating expenses | 136,106 | 115,230 | 264,238 | 225,669 |
Income (loss) from operations | (39,457) | (27,070) | (104,834) | (58,674) |
Interest income | 699 | 2,015 | 1,373 | 4,804 |
Interest expense | (4,833) | (4,651) | (9,627) | (9,271) |
Other income (expense), net | (8,045) | 6,805 | (6,862) | 9,373 |
Income (loss) before provision for (benefit from) income taxes | (51,636) | (22,901) | (119,950) | (53,768) |
Provision for (benefit from) income taxes | (10,955) | (14,249) | (27,993) | (24,926) |
Net income (loss) | $ (40,681) | $ (8,652) | $ (91,957) | $ (28,842) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ (0.49) | $ (0.10) | $ (1.10) | $ (0.34) |
Diluted (in dollars per share) | $ (0.49) | $ (0.10) | $ (1.10) | $ (0.34) |
Shares used in computing net income (loss) per share: | ||||
Basic (in shares) | 83,413,643 | 83,830,624 | 83,430,693 | 83,737,889 |
Diluted (in shares) | 83,413,643 | 83,830,624 | 83,430,693 | 83,737,889 |
Subscription and support | ||||
Revenue: | ||||
Total revenue | $ 84,297 | $ 59,563 | $ 163,287 | $ 117,529 |
Cost of revenue: | ||||
Total cost of revenue | 50,565 | 40,158 | 100,896 | 77,164 |
Gross profit: | ||||
Total gross profit | 33,732 | 19,405 | 62,391 | 40,365 |
License | ||||
Revenue: | ||||
Total revenue | 69,798 | 77,912 | 109,951 | 143,195 |
Cost of revenue: | ||||
Total cost of revenue | 2,254 | 2,834 | 4,593 | 5,771 |
Gross profit: | ||||
Total gross profit | 67,544 | 75,078 | 105,358 | 137,424 |
Services | ||||
Revenue: | ||||
Total revenue | 50,538 | 42,587 | 97,329 | 89,140 |
Cost of revenue: | ||||
Total cost of revenue | 55,165 | 48,910 | 105,674 | 99,934 |
Gross profit: | ||||
Total gross profit | $ (4,627) | $ (6,323) | $ (8,345) | $ (10,794) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (40,681) | $ (8,652) | $ (91,957) | $ (28,842) |
Foreign currency translation adjustments | (2,363) | 2,726 | (3,087) | 2,032 |
Unrealized gains (losses) on available-for-sale securities | (2,537) | (1,210) | (3,655) | (3,049) |
Tax benefit (expense) on unrealized gains (losses) on available-for-sale securities | 603 | 214 | 854 | 573 |
Reclassification adjustment for realized gains (losses) included in net income (loss) | 23 | 320 | 92 | 667 |
Total other comprehensive income (loss) | (4,274) | 2,050 | (5,796) | 223 |
Comprehensive income (loss) | $ (44,955) | $ (6,602) | $ (97,753) | $ (28,619) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings (accumulated deficit) |
Beginning balance (in shares) at Jul. 31, 2020 | 83,461,925 | ||||
Beginning balance at Jul. 31, 2020 | $ 1,656,768 | $ 8 | $ 1,499,050 | $ (5,246) | $ 162,956 |
Net loss | (20,190) | (20,190) | |||
Issuance of common stock upon exercise of stock options (in shares) | 39,169 | ||||
Issuance of common stock upon exercise of stock options | 1,716 | 1,716 | |||
Issuance of common stock upon vesting of Restricted Stock Units (RSU) (in shares) | 339,759 | ||||
Stock-based compensation | 28,394 | 28,394 | |||
Repurchase and retirement of common stock (in shares) | (48,997) | ||||
Repurchase and retirement of common stock | (5,000) | (5,000) | |||
Foreign currency translation adjustment | (694) | (694) | |||
Unrealized gain (loss) on available-for-sale securities, net of tax | (1,480) | (1,480) | |||
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss) | 347 | 347 | |||
Ending balance (in shares) at Oct. 31, 2020 | 83,791,856 | ||||
Ending balance at Oct. 31, 2020 | 1,659,861 | $ 8 | 1,529,160 | (7,073) | 137,766 |
Beginning balance (in shares) at Jul. 31, 2020 | 83,461,925 | ||||
Beginning balance at Jul. 31, 2020 | 1,656,768 | $ 8 | 1,499,050 | (5,246) | 162,956 |
Net loss | (28,842) | ||||
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss) | 667 | ||||
Ending balance (in shares) at Jan. 31, 2021 | 83,775,163 | ||||
Ending balance at Jan. 31, 2021 | 1,644,663 | $ 8 | 1,559,473 | (5,023) | 90,205 |
Beginning balance (in shares) at Oct. 31, 2020 | 83,791,856 | ||||
Beginning balance at Oct. 31, 2020 | 1,659,861 | $ 8 | 1,529,160 | (7,073) | 137,766 |
Net loss | (8,652) | (8,652) | |||
Issuance of common stock upon exercise of stock options (in shares) | 9,415 | ||||
Issuance of common stock upon exercise of stock options | 104 | 104 | |||
Issuance of common stock upon vesting of Restricted Stock Units (RSU) (in shares) | 283,454 | ||||
Stock-based compensation | 30,209 | 30,209 | |||
Repurchase and retirement of common stock (in shares) | (309,562) | ||||
Repurchase and retirement of common stock | (38,909) | (38,909) | |||
Foreign currency translation adjustment | 2,726 | 2,726 | |||
Unrealized gain (loss) on available-for-sale securities, net of tax | (996) | (996) | |||
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss) | 320 | 320 | |||
Ending balance (in shares) at Jan. 31, 2021 | 83,775,163 | ||||
Ending balance at Jan. 31, 2021 | 1,644,663 | $ 8 | 1,559,473 | (5,023) | 90,205 |
Beginning balance (in shares) at Jul. 31, 2021 | 83,194,157 | ||||
Beginning balance at Jul. 31, 2021 | 1,544,894 | $ 8 | 1,617,204 | (6,218) | (66,100) |
Net loss | (51,276) | (51,276) | |||
Issuance of common stock upon exercise of stock options (in shares) | 1,518 | ||||
Issuance of common stock upon exercise of stock options | 17 | 17 | |||
Issuance of common stock upon vesting of Restricted Stock Units (RSU) (in shares) | 335,653 | ||||
Stock-based compensation | 32,533 | 32,533 | |||
Repurchase and retirement of common stock (in shares) | (226,172) | ||||
Repurchase and retirement of common stock | (26,262) | (26,262) | |||
Foreign currency translation adjustment | (724) | (724) | |||
Unrealized gain (loss) on available-for-sale securities, net of tax | (868) | (868) | |||
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss) | 69 | 69 | |||
Ending balance (in shares) at Oct. 31, 2021 | 83,305,156 | ||||
Ending balance at Oct. 31, 2021 | 1,498,383 | $ 8 | 1,649,754 | (7,741) | (143,638) |
Beginning balance (in shares) at Jul. 31, 2021 | 83,194,157 | ||||
Beginning balance at Jul. 31, 2021 | 1,544,894 | $ 8 | 1,617,204 | (6,218) | (66,100) |
Net loss | (91,957) | ||||
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss) | 92 | ||||
Ending balance (in shares) at Jan. 31, 2022 | 83,546,000 | ||||
Ending balance at Jan. 31, 2022 | 1,480,468 | $ 8 | 1,687,982 | (12,014) | (195,508) |
Beginning balance (in shares) at Oct. 31, 2021 | 83,305,156 | ||||
Beginning balance at Oct. 31, 2021 | 1,498,383 | $ 8 | 1,649,754 | (7,741) | (143,638) |
Net loss | (40,681) | (40,681) | |||
Issuance of common stock upon exercise of stock options (in shares) | 7,230 | ||||
Issuance of common stock upon exercise of stock options | 80 | 80 | |||
Issuance of common stock upon vesting of Restricted Stock Units (RSU) (in shares) | 329,987 | ||||
Stock-based compensation | 38,148 | 38,148 | |||
Repurchase and retirement of common stock (in shares) | (96,373) | ||||
Repurchase and retirement of common stock | (11,189) | (11,189) | |||
Foreign currency translation adjustment | (2,363) | (2,363) | |||
Unrealized gain (loss) on available-for-sale securities, net of tax | (1,933) | (1,933) | |||
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss) | 23 | 23 | |||
Ending balance (in shares) at Jan. 31, 2022 | 83,546,000 | ||||
Ending balance at Jan. 31, 2022 | $ 1,480,468 | $ 8 | $ 1,687,982 | $ (12,014) | $ (195,508) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (91,957) | $ (28,842) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 16,979 | 20,971 |
Amortization of debt discount and issuance costs | 7,096 | 6,715 |
Amortization of contract costs | 6,310 | 5,355 |
Stock-based compensation | 70,105 | 57,980 |
Changes to allowance for credit losses and revenue reserves | 157 | 118 |
Deferred income tax | (30,249) | (20,294) |
Amortization of premium (accretion of discount) on available-for-sale securities, net | 3,315 | 3,128 |
Other non-cash items affecting net income (loss) | 228 | 800 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,940) | 22,368 |
Unbilled accounts receivable | (448) | (32,058) |
Prepaid expenses and other assets | (13,335) | (3,441) |
Operating lease assets | 5,667 | 91 |
Accounts payable | (1,711) | (4,312) |
Accrued employee compensation | (47,323) | 3,844 |
Deferred revenue | (17,826) | (24,411) |
Lease liabilities | (6,817) | 2,669 |
Other liabilities | (2,303) | (13,059) |
Net cash provided by (used in) operating activities | (110,052) | (2,378) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of available-for-sale securities | (367,114) | (523,601) |
Sales of available-for-sale securities | 50,361 | 85,553 |
Maturities of available-for-sale securities | 415,265 | 456,198 |
Purchases of property and equipment | (6,990) | (5,517) |
Capitalized software development costs | (6,197) | (4,884) |
Acquisition of strategic investments | (10,521) | (2,000) |
Acquisition of business, net of acquired cash | (43,830) | 0 |
Net cash provided by (used in) investing activities | 30,974 | 5,749 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock upon exercise of stock options | 98 | 1,820 |
Repurchase and retirement of common stock | (37,451) | (42,679) |
Net cash provided by (used in) financing activities | (37,353) | (40,859) |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | (2,807) | 1,906 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (119,238) | (35,582) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period | 384,910 | 366,969 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period | 265,672 | 331,387 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 2,500 | 2,500 |
Cash paid for income taxes, net of tax refunds | 2,152 | 1,603 |
Accruals for purchase of property and equipment | 1,227 | 5,127 |
Accruals for capitalized software development costs | 579 | 344 |
Accrual for shares repurchased | $ 0 | $ 1,230 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies and Estimates | 6 Months Ended |
Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Summary of Significant Accounting Policies and Estimates | The Company and Summary of Significant Accounting Policies and Estimates 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 combines core operations, digital engagement, analytics, and artificial intelligence ("AI") applications. The Company's technology platform supports core insurance operations, including underwriting, policy administration, claim management and billing; insights into data that can improve business decision making; and digital sales, service, and claims experiences for policyholders, agents, and other key stakeholders. The Company’s customers are primarily property and casualty insurance carriers. Basis of Presentation and Consolidation The Company's condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The condensed consolidated financial statements and notes include the Company and its wholly-owned subsidiaries and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s consolidated financial statements included in its Annual Report on Form 10-K. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with 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 revenue and expenses. Significant items subject to such estimates include, but are not limited to, revenue recognition, the useful lives of property and equipment and intangible assets, accounts receivable allowances, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties, fair value of convertible senior notes and investments, valuation of goodwill and intangible assets, fair value of acquired assets and assumed liabilities, software development costs to be capitalized, leases, and contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ 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 balance sheet date. Revenue 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 condensed consolidated balance sheets. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency of the recording entity are included in other income (expense) in the condensed consolidated statements of operations. 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 primarily 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 in the periods presented have been classified as available-for-sale. 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. Investments are recorded at fair value with unrealized holding gains and losses, net of taxes, generally included in accumulated other comprehensive income (loss) on the condensed consolidated balance sheets. Unrealized losses related to the credit worthiness of an investment, if any, are recorded in other income (expense), net on the condensed consolidated statements of operations. Property, Equipment, and Software Development Costs 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. 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, equipment, and software development are as follows: Computer hardware 3 years Purchased software 3 years Software development 3 to 5 years Equipment and machinery 3 to 5 years Furniture and fixtures 5 years Leasehold improvements Shorter of 10 years or remaining lease term Certain development costs related to software delivered to customers ("self-managed software") 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. Costs incurred subsequent to the establishment of technological feasibility have not been material and, therefore, all software development costs related to self-managed software have been charged to research and development expense in the accompanying condensed consolidated statements of operations as incurred. The Company capitalizes software development costs for technology applications that provide new or significantly enhanced functionality that the Company will offer solely as cloud-based subscriptions. Capitalized costs are primarily comprised of compensation for employees who are directly associated with cloud software development projects. The Company begins to capitalize costs when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. If any of these criteria cease being met before the software reaches its intended use, any capitalized costs related to the project will be impaired. When the software reaches its intended use, which is typically once the technology applications are available for general release, capitalized costs are amortized to cost of revenue over the estimated useful lives of the related assets, generally estimated to be three Leases The Company accounts for leases under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 842: Leases (“ASC 842"). Under ASC 842, the Company determines if an arrangement is a lease at inception of the agreement. If an arrangement is determined to be a lease, an operating lease asset, also known as a right-of-use asset, and lease liability are recorded based on the present value of lease payments over the lease term. In connection with determining the present value of the lease payments, the Company considers only payments that are fixed and determinable at the time of commencement, including non-lease components that are fixed throughout the lease term. Variable components of the lease payments, such as utilities, maintenance, and taxes, are expensed as incurred and not included in determining the present value of the lease liability. As the Company's leases generally do not provide an implicit rate, the Company's incremental borrowing rate, calculated based on available information at the lease commencement date, is used in determining the present value of the lease payments. The Company's incremental borrowing rate is a hypothetical rate based on the Company's understanding of its credit rating. The lease term used to calculate the lease liability and operating lease asset includes options to extend or terminate the lease if it is reasonably certain the Company will exercise that option. Operating lease assets also include any lease payments made prior to commencement and are recorded net of any lease incentives received. Lease expense is recognized on a straight-line basis over the lease term and is reflected in the condensed consolidated statements of operations in each of the cost of revenue and operating expense categories. The Company also enters into agreements to sublease unoccupied office space. Any sublease payments received in excess of the straight-line rent expense related to the subleased space are recorded as an offset to operating expenses over the sublease term. Operating leases are included in operating lease assets, other current liabilities, and lease liabilities on the condensed consolidated balance sheets. Impairment of Long-Lived Assets, Intangible Assets, and Goodwill The Company evaluates its long-lived assets, consisting of property and equipment, operating lease assets, 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 amount 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 amount of the assets over the estimated fair value of the assets. There have been no long-lived assets and intangible assets impairments during 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 the Company’s single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the 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 goodwill impairment test is not performed. There have been no goodwill impairments during the periods presented. Convertible Senior Notes In March 2018, the Company issued $400.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2025 (the “Convertible Senior Notes”). The Company accounts for the liability and equity components of the issued Convertible Senior Notes separately. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the Convertible Senior Notes as a whole. This difference represents a debt discount that is amortized to interest expense using the effective interest method over the term of the Convertible Senior Notes. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The liability and equity components will not be remeasured as long as the conversion option continues to meet the requirements for equity classification. The equity component is net of issuance costs and recorded in additional paid-in capital. 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. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired and liabilities assumed, whichever comes first, subsequent adjustments, if any, are recorded to the Company’s condensed consolidated statements of operations. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, investments, accounts receivable and unbilled 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 in the condensed consolidated balance sheets are in excess of amounts that are insured by the Federal Deposit Insurance Corporation. No customer accounted for 10% or more of the Company's revenue for the three and six months ended January 31, 2022 and 2021. No customer accounted for 10% or more of the Company's accounts receivable as of January 31, 2022, and July 31, 2021. Accounts Receivable and Allowances Accounts receivable are recorded at invoiced amounts and do not bear interest. While the Company does not require collateral, the Company performs ongoing credit evaluations of its customers. The Company maintains an allowance for credit losses based upon the expected collectability of its accounts receivable. The expectation of collectability is based on historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with delinquent accounts. Credit losses are recorded in general and administrative expense while billing and other revenue adjustments are recorded against the corresponding revenue financial statement line item in the condensed consolidated statements of operations. Revenue Recognition The Company’s revenue is derived from contracts with customers. The majority of the Company’s revenue is derived from subscriptions to its cloud services, licensing arrangements for its software, and implementation and other professional services arrangements. The Company accounts for revenue in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). The core principle of ASC 606 is to recognize revenue upon the transfer of services or products to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company applies the following framework to recognize revenue: Identification of the contract, or contracts, with the customer The Company considers the terms and conditions of written contracts and its customary business practices in identifying its contracts. The Company determines it has a contract with a customer when the contract is approved, the Company can identify each party’s rights regarding the services and products to be transferred, the Company can identify the payment terms for the services and products, the Company has determined that the customer has the ability and intent to pay, and the contract has commercial substance. In general, contract terms will be reflected in a written document that is signed by both parties. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract. The Company also evaluates the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. Contracts may be modified to account for changes in contract scope or price. The Company considers contract modifications to exist when the modification either creates new rights or obligations or changes the existing enforceable rights and obligations of either party. Contract modifications for services and products that are distinct from the existing contract and are priced commensurate with their standalone selling price are treated as separate contracts and are accounted for prospectively. Contract modifications for services and products that are distinct but are not priced commensurate with their standalone selling price or are not distinct from the existing contract may affect the initial transaction price or the allocation of the transaction price to the performance obligations in the contract. In such cases, recognized revenue may be adjusted. Identification of the performance obligation in the contract Performance obligations promised in a contract are identified based on the services or products that will be transferred to the customer that are both: i. capable of being distinct, whereby the customer can benefit from the service or product either on its own or together with other resources that are readily available from the Company or third parties, and ii. distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services or products, the Company applies judgment to determine whether promised services or products are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised services or products are accounted for as a combined performance obligation. The Company generates revenue from the following sources, which represent the performance obligations of the Company: i. Subscription services related to the Company's Software-as-a-Service ("SaaS") offerings, including hosting; ii. Support activities that consist of email and phone support, bug fixes, and unspecified software updates and upgrades released when, and if, available during the support term; iii. Self-managed software licenses related to term or perpetual agreements; and iv. Services related to the implementation and configuration of the Company’s services and products, reimbursable travel, and training. Subscriptions are typically sold with a three to five year initial term with a customer option to renew on an annual basis after the initial term. Term licenses generally have a two-year initial term with a customer option to renew on an annual basis after the initial term. In certain circumstances, the Company will enter into term licenses with an initial term of more than two years or a renewal period longer than one year. Support for term licenses follows the same contract periods. Professional services typically are time and materials contracts that last for an average period of approximately one year. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services and products to the customer. Consideration may vary due to discounts, incentives, and potential service level credits or contractual penalties. Variable consideration is estimated and included in the transaction price if, in the Company’s judgment, it is probable that there will not be a significant future reversal of cumulative revenue under the contract. Self-managed software licenses and subscription services may be subject to either fixed or variable installments. Variable installments are generally subject to changes in a customer’s Direct Written Premium (“DWP”) or a customer’s Gross Written Premium (“GWP”). When consideration is subject to variable installments, the Company estimates variable consideration using the expected value method based on historical DWP or GWP usage to the extent that a significant revenue reversal is not probable to occur. When consideration is subject to a customer termination right, the Company estimates the total transaction price using the most likely method, and defers consideration associated with the customer’s termination right until it expires. The Company elected the practical expedient to evaluate whether a significant financing component exists when the contract term is greater than one year and the timing of revenue recognition occurs in advance of invoicing. This timing difference occurs when control of the software license is transferred at a point in time, usually at the contract onset, but the customer payments occur over time. A significant financing component generally does not exist under the Company’s standard contracting and billing practices. For example, the Company’s typical time-based licenses have a two-year initial term with the final payment due at the end of the first year and the Company's typical subscription services are generally billed in advance of providing the services. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on its standalone selling price (“SSP”) in relation to the total fair value of all performance obligations in the arrangement. The majority of the Company’s contracts contain multiple performance obligations, such as when licenses are sold with support, implementation services, or training services. Additionally, as customers enter into subscription agreements to migrate from an existing term license agreement, customers may be under contract for self-managed licenses and support, in addition to subscription services, for a period of time, which may require an allocation of the transaction price to each performance obligation. New and migration subscription agreements also typically include implementation, configuration and training services, which may require an allocation of the transaction price to each performance obligation. Some of the Company’s performance obligations, such as support, implementation services, and training services, have observable inputs that are used to determine the SSP of those distinct performance obligations. Where SSP is not directly observable, the Company determines the SSP using information that may include market conditions and other observable inputs. In the circumstances when available information to determine SSP is highly variable or uncertain, such as for our term licenses, the Company will use the residual method. Recognition of revenue when, or as, the Company satisfies a performance obligation The Company recognizes revenue when control of the services or products are transferred to a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company is principally responsible for the satisfaction of its distinct performance obligations, which are satisfied either at a point in time or over a period of time. Performance obligations satisfied at a point in time Self-managed term and perpetual software licenses comprise the majority of distinct performance obligations that are satisfied at a point in time. Revenue is recognized at the point in which the self-managed software licenses are made available to a customer. Consideration for self-managed software licenses is typically billed in advance on an annual basis over the license term. Performance obligations satisfied over a period of time Subscriptions, support activities, and professional service arrangements comprise the majority of distinct performance obligations that are satisfied over a period of time. Revenue from subscription arrangements is recognized ratably over the subscription period using a time-based measure of progress as customers receive the benefits from their subscriptions over the contractually agreed-upon term. The Company’s subscription arrangements are generally three to five years in duration. Consideration for subscription arrangements is typically billed in advance on an annual basis over the contract period. Revenue from support activities associated with self-managed licenses is a stand-ready obligation, which is generally recognized over the contractually agreed-upon term using a time-based measure of progress as customers receive benefits from the availability of support technicians over the support period. Consideration for support activities is typically billed in advance on an annual basis. The Company’s support activities are consistently priced as a percentage of the associated self-managed software license. Revenue from professional service arrangements is recognized over the service period as the underlying services are performed. In substantially all of the Company’s professional service contracts, services are separately identifiable performance obligations for which related revenue and costs are recognized according to when each service obligation is delivered. Substantially all professional services engagements are billed and recognized on a time and materials basis. In select situations, the Company will contract professional services on a fixed fee basis, where the Company generally recognizes services revenue over time, using an input method. The measure of progress of the professional services being provided under these fixed fee arrangements is based on hours incurred compared to estimates of the total hours to complete the performance obligation. When professional services are sold with a self-managed license or subscription arrangement, the Company evaluates whether the performance obligations are distinct or separately identifiable, or whether they constitute a single performance obligation. In the limited cases where professional services are not considered to be distinct from the self-managed license or subscription services, the Company will recognize revenue based on the nature and term of the combined performance obligation when control of the combined performance obligation is transferred to the customer. Balance Sheet Presentation Contracts with customers are reflected in the condensed consolidated balance sheets as follows: • Accounts receivable, net represents amounts billed to customers in accordance with contract terms for which payment has not yet been received. It is presented net of any allowances as part of current assets in the condensed consolidated balance sheets. • Unbilled accounts receivable, net represents amounts that are unbilled due to agreed-upon contractual terms in which billing occurs subsequent to revenue recognition. This situation typically occurs when the Company transfers control of self-managed software licenses to customers up-front, but invoices customers annually over the term of the license. Unbilled accounts receivable is classified as either current or non-current based on the duration of remaining time between the date of the condensed consolidated balance sheets and the anticipated due date of the underlying receivables. Unbilled accounts receivable is evaluated for credit losses based upon the expected collectibility of future accounts receivable, customer payment history, global economic conditions, and ongoing credit evaluations of customers. Unbilled accounts receivable is presented net of allowance for credit losses, if applicable, in the condensed consolidated balance sheets. This balance represents contract assets. • Contract costs include customer acquisition costs, which consist primarily of sales commissions and related payroll taxes paid to sales personnel and referral fees paid to third-parties, and costs to fulfill a contract, which consist primarily of royalties payable to third-party software providers that support both the Company’s software offerings and support services. The short-term portion is presented as prepaid and other current assets. The long-term portion is presented as other assets. • Deferred costs represent costs related to our professional services that have been deferred to align with revenue recognition. The short-term portion is presented as prepaid and other current assets. The long-term portion is presented as other assets. • Deferred revenue, net represents amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue because the related services or products have not been transferred to the customer. Deferred revenue that will be realized during the 12-month period following the date of the condensed consolidated balance sheets is recorded as current. The remaining deferred revenue is recorded as non-current. This balance represents contract liabilities. The Company may receive consideration from its customers in advance of performance on a portion of the contract and, on another portion of the contract, perform in advance of receiving consideration. Contract assets and liabilities related to rights and obligations in a contract are interdependent. Therefore, contract assets and liabilities are presented net at the contract level, as either a single contract asset or a single contract liability, in the condensed consolidated balance sheets. Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company excludes amounts related to professional services contracts that are on a time and materials basis from remaining performance obligations. Contract Costs Contract costs consists of two components, customer acquisition costs and costs to fulfill a contract. Customer acquisition costs are capitalized only if the costs are incrementally incurred to obtain a customer contract and the expected amortization period is greater than one year. Contract costs are classified as either current or non-current based on the duration of time remaining between the date of the condensed consolidated balance sheets and the anticipated amortization date of the associated costs. Capitalized customer acquisition costs related to software licenses, subscriptions, and support services are amortized over the anticipated period of time that such goods and services are expected to be provided to a customer, which the Company estimates to be approximately five years. The amortization of customer acquisition costs is classified as a sales and marketing expense in the condensed consolidated statement of operations. Costs to fulfill a contract, or fulfillment costs, are only capitalized if they relate directly to a contract with a customer, the costs generate or enhance resources that will be used to satisfy performance obligations in the future, and the costs are expected to be recoverable. Fulfillment costs would be generally amortized over the same period of time as t |
Revenue
Revenue | 6 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue Revenue by license or service type is as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Subscription and Support Subscription $ 62,871 $ 38,278 $ 120,000 $ 75,508 Support 21,426 21,285 43,287 42,021 License Term license 69,750 77,864 109,855 143,089 Perpetual license 48 48 96 106 Services 50,538 42,587 97,329 89,140 Total revenue $ 204,633 $ 180,062 $ 370,567 $ 349,864 Revenue by revenue type and by geography is as follows (in thousands): Three Months Ended January 31, 2022 Subscription and support License Services Total United States $ 55,718 $ 38,133 $ 31,780 $ 125,631 Canada 14,037 4,700 6,887 25,624 Other Americas 1,046 — 715 1,761 Total Americas 70,801 42,833 39,382 153,016 United Kingdom 2,417 8,944 918 12,279 Other EMEA 5,381 6,686 7,003 19,070 Total EMEA 7,798 15,630 7,921 31,349 Total APAC 5,698 11,335 3,235 20,268 Total revenue $ 84,297 $ 69,798 $ 50,538 $ 204,633 Three Months Ended January 31, 2021 Subscription and support License Services Total United States $ 39,865 $ 39,438 $ 28,295 $ 107,598 Canada 7,862 8,606 2,653 19,121 Other Americas 1,112 188 1,517 2,817 Total Americas 48,839 48,232 32,465 129,536 United Kingdom 1,650 6,449 848 8,947 Other EMEA 4,694 11,282 6,691 22,667 Total EMEA 6,344 17,731 7,539 31,614 Total APAC 4,380 11,949 2,583 18,912 Total revenue $ 59,563 $ 77,912 $ 42,587 $ 180,062 Six Months Ended January 31, 2022 Subscription and support License Services Total United States $ 108,741 $ 56,586 $ 64,443 $ 229,770 Canada 25,978 10,513 9,245 45,736 Other Americas 2,085 237 1,423 3,745 Total Americas 136,804 67,336 75,111 279,251 United Kingdom 4,750 14,776 2,012 21,538 Other EMEA 10,598 8,093 13,398 32,089 Total EMEA 15,348 22,869 15,410 53,627 Total APAC 11,135 19,746 6,808 37,689 Total revenue $ 163,287 $ 109,951 $ 97,329 $ 370,567 Six Months Ended January 31, 2021 Subscription and support License Services Total United States $ 78,878 $ 80,415 $ 60,655 $ 219,948 Canada 15,004 19,359 3,790 38,153 Other Americas 2,225 423 3,363 6,011 Total Americas 96,107 100,197 67,808 264,112 United Kingdom 3,680 14,748 2,163 20,591 Other EMEA 9,814 12,085 13,669 35,568 Total EMEA 13,494 26,833 15,832 56,159 Total APAC 7,928 16,165 5,500 29,593 Total revenue $ 117,529 $ 143,195 $ 89,140 $ 349,864 No country or region, other than those presented above, accounted for more than 10% of revenue during the three and six months ended January 31, 2022 and 2021. Customer Contract - Related Balance Sheet Amounts Amounts related to customer contract-related arrangements are included in the condensed consolidated balance sheets as follows (in thousands): January 31, 2022 July 31, 2021 Unbilled accounts receivable, net $ 103,983 $ 103,422 Contract costs, net 44,048 42,235 Deferred revenue, net 128,886 145,936 As of January 31, 2022 and July 31, 2021, there was no allowance for credit losses associated with unbilled accounts receivable. Contract costs The current portion of contract costs of $14.7 million and $13.4 million is included in prepaid and other current assets in the Company’s condensed consolidated balance sheets as of January 31, 2022 and July 31, 2021, respectively. The non-current portion of contract costs of $29.3 million and $28.9 million is included in other assets in the Company’s condensed consolidated balance sheets as of January 31, 2022 and July 31, 2021, respectively. The Company amortized $3.3 million and $3.1 million of contract costs during the three months ended January 31, 2022 and 2021, respectively, and $6.3 million and $5.4 million of contract costs during the six months ended January 31, 2022 and 2021, respectively. Deferred revenue During the three and six months ended January 31, 2022, the Company recognized revenue of approximately $39 million and $107 million, respectively, related to the Company’s deferred revenue balance reported as of July 31, 2021. Remaining Performance Obligations The aggregate amount of consideration allocated to remaining performance obligations either not satisfied or partially satisfied, was approximately $908 million as of January 31, 2022. Subscription services are typically satisfied over three to five years, support services are generally satisfied within one year, and professional services are typically satisfied within one year. Professional services under time and material contracts are not included in the performance obligations calculation as these arrangements can be cancelled at any time. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jan. 31, 2022 | |
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 (in thousands): January 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Commercial paper $ 241,734 $ — $ — $ 241,734 Corporate bonds 381,914 139 (1,807) 380,246 Certificates of deposit 63,051 — — 63,051 U.S. Government bonds 75,301 17 (607) 74,711 Money market funds 106,208 — — 106,208 U.S. Government agency securities 32,639 — (228) 32,411 Asset-backed securities 55,924 — (211) 55,713 Foreign government bonds 35,406 — (175) 35,231 Municipal bonds 205 — (1) 204 Strategic convertible debt investment* 1,000 — — 1,000 Total $ 993,382 $ 156 $ (3,029) $ 990,509 *At original cost July 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Commercial paper $ 389,837 $ — $ — $ 389,837 Corporate bonds 371,374 623 (37) 371,960 Certificates of deposit 82,250 — — 82,250 U.S. Government bonds 64,401 62 (1) 64,462 Money market funds 125,118 — — 125,118 U.S. Government agency securities 85,165 15 — 85,180 Asset-backed securities 47,925 29 (7) 47,947 Foreign government bonds 33,177 10 (2) 33,185 Municipal bonds 1,685 — — 1,685 Strategic convertible debt investment* 1,000 — — 1,000 Total $ 1,201,932 $ 739 $ (47) $ 1,202,624 *At original cost The Company does not consider any portion of the unrealized losses at January 31, 2022 to be credit losses. The Company has recorded the securities at fair value in its condensed consolidated balance sheets, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). The amount of unrealized gains and losses reclassified into earnings are based on specific identification when the securities are sold. The realized gains and losses from sales of securities are presented in the condensed consolidated statements of comprehensive income (loss). The following table summarizes the contractual maturities of the Company’s available-for-sale investments measured at fair value (in thousands): January 31, 2022 Less Than 12 Months 12 Months or Greater Total Commercial paper $ 239,234 $ 2,500 $ 241,734 Corporate bonds 207,859 172,387 380,246 Certificates of deposit 62,051 1,000 63,051 U.S. Government bonds 46,878 27,833 74,711 Money market funds 106,208 — 106,208 U.S. Government agency securities 4,999 27,412 32,411 Asset-backed securities 3,670 52,043 55,713 Foreign government bonds 24,869 10,362 35,231 Municipal bonds 204 — 204 Strategic convertible debt investment $ 1,000 $ — $ 1,000 Total $ 696,972 $ 293,537 $ 990,509 Fair Value Measurement 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 Company applies the three-level valuation hierarchy when measuring the fair value of certain assets and liabilities: Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2—Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and Level 3—Unobservable inputs that are supported by little or no market activity, which require the Company to develop its own assumptions. Available-for-sale investments The following tables summarize the Company’s available-for-sale investments measured at fair value, by level within the fair value hierarchy (in thousands): January 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper — 28,011 — 28,011 Money market funds 106,208 — — 106,208 Total cash equivalents 106,208 28,011 — 134,219 Short-term investments: Commercial paper — 211,223 — 211,223 Corporate bonds — 207,859 — 207,859 Certificates of deposit — 62,051 — 62,051 U.S. Government bonds — 46,878 — 46,878 U.S. Government agency securities — 4,999 — 4,999 Asset-backed securities — 3,670 — 3,670 Foreign government bonds — 24,869 — 24,869 Municipal bonds — 204 — 204 Strategic convertible debt investment — — 1,000 1,000 Total short-term investments — 561,753 1,000 562,753 Long-term investments: Commercial paper — 2,500 — 2,500 Corporate bonds — 172,387 — 172,387 Certificates of deposit — 1,000 — 1,000 U.S. Government bonds — 27,833 — 27,833 U.S. Government agency securities — 27,412 — 27,412 Asset-backed securities — 52,043 — 52,043 Foreign government bonds — 10,362 — 10,362 Total long-term investments — 293,537 — 293,537 Total 106,208 883,301 1,000 990,509 July 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper $ — $ 115,825 $ — $ 115,825 Money market funds 125,118 — — 125,118 Total cash equivalents 125,118 115,825 — 240,943 Short-term investments: Commercial paper — 274,012 — 274,012 Corporate bonds — 225,384 — 225,384 Certificates of deposit — 80,750 — 80,750 U.S. Government bonds — 45,320 — 45,320 U.S. Government agency securities — 69,183 — 69,183 Asset-backed securities — 9,036 — 9,036 Foreign government bonds — 28,353 — 28,353 Municipal bonds — 1,480 — 1,480 Strategic convertible debt investment — — 1,000 1,000 Total short-term investments — 733,518 1,000 734,518 Long-term investments: Corporate bonds — 146,576 — 146,576 Certificates of deposit — 1,500 — 1,500 U.S. Government bonds — 19,142 — 19,142 U.S. Government agency securities — 15,997 — 15,997 Asset-backed securities — 38,911 — 38,911 Foreign government bonds — 4,832 — 4,832 Municipal bonds — 205 — 205 Total long-term investments — 227,163 — 227,163 Total $ 125,118 $ 1,076,506 $ 1,000 $ 1,202,624 Convertible Senior Notes The fair value of the Convertible Senior Notes was $434.3 million and $452.0 million at January 31, 2022 and July 31, 2021, respectively. The Company estimates the fair value of the Convertible Senior Notes using commonly accepted valuation methodologies and market-based risk measurements that are directly observable, such as unadjusted quoted prices (Level 2). The Company carries the Convertible Senior Notes at initial fair value less unamortized debt discount and issuance costs on its condensed consolidated balance sheets. For further information, see Note 7 "Convertible Senior Notes." |
Acquisitions
Acquisitions | 6 Months Ended |
Jan. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On August 18, 2021, the Company completed its acquisition of HazardHub, Inc. ("HazardHub") for net cash consideration of approximately $53 million, subject to customary transaction adjustments, including $8.3 million of acquisition consideration holdback subject to service conditions over the next three years, which is being held in escrow and considered restricted cash. The escrow is included in the condensed consolidated balance sheets in the amounts of $3.3 million in prepaid expenses and other current assets and of $5.0 million in other assets. HazardHub provides API-driven property risk insights to the property & casualty insurance industry through curation, analysis, and distillation of vast amounts of data to deliver a comprehensive, national catalog of risks that may damage or destroy property. The acquisition was accounted for as a business combination. In conjunction with the preliminary purchase price allocation, the Company determined that HazardHub's separately identifiable intangible assets were developed technology, customer relationships, and trade names. The valuation models were based on estimates of future operating projections of HazardHub 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 and operating cost projections, a discount rate that is representative of the weighted average cost of capital, in addition to royalty and long-term sustainable growth rates based on a market analysis. These fair value measurements were based on significant inputs that were not observable in the market and thus represents a Level 3 measurement. The Company amortizes the acquired intangibles over their estimated useful lives as set forth in the table below. The preliminary allocation of purchase price is pending the completion of certain statutory tax filing requirements and is therefore subject to potential future measurement period adjustments. The measurement period will end no later than August 17, 2022. The preliminary allocation of the purchase consideration is as follows: Preliminary Purchase Price Allocation Estimated Useful Lives (in thousands) (in years) Acquired assets, net of assumed liabilities $ 461 Acquired technology 9,700 5 Customer relationships 5,100 5 Trademarks 900 7 Goodwill 31,185 Deferred tax liability (2,839) Total preliminary purchase consideration $ 44,507 Goodwill of $31.2 million arising from the acquisition is primarily related to the acquired workforce, expected synergies, and the opportunity to expand the Company’s customer base. The goodwill recorded is not expected to be deductible for income tax purposes. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jan. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts Receivables, Net Accounts receivable, net consists of the following (in thousands): January 31, 2022 July 31, 2021 Accounts receivable $ 112,281 $ 105,125 Allowance for credit losses and revenue reserves (576) (1,057) Accounts receivable, net $ 111,705 $ 104,068 Allowance for Credit Losses and Revenue Reserves Changes to the allowance for credit losses and revenue reserves consists of the following (in thousands): Balance as of July 31, 2021 $ 1,057 Net changes to credit losses — Net changes to revenue reserves (154) Write-offs, net (327) Balance as of January 31, 2022 $ 576 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): January 31, 2022 July 31, 2021 Prepaid expenses $ 21,319 $ 20,330 Contract costs 14,717 13,365 Deferred costs 9,910 9,247 Other 15,477 9,787 Prepaid expenses and other current assets $ 61,423 $ 52,729 Property and Equipment, Net Property and equipment consist of the following (in thousands): January 31, 2022 July 31, 2021 Computer hardware $ 14,009 $ 19,256 Purchased software 5,484 6,002 Capitalized software development costs 30,881 24,025 Equipment and machinery 8,654 12,214 Furniture and fixtures 11,453 11,482 Leasehold improvements 59,686 57,960 Total property and equipment 130,167 130,939 Less accumulated depreciation (48,475) (50,878) Property and equipment, net $ 81,692 $ 80,061 As of January 31, 2022 and July 31, 2021, no property and equipment was pledged as collateral. Depreciation expense, excluding the amortization of capitalized software development costs, was $3.5 million for both of the three months ended January 31, 2022 and 2021, and $7.2 million for both of the six months ended January 31, 2022 and 2021. The Company recognized amortization expense related to capitalized software development costs in cost of subscription and support revenue on the condensed consolidated statements of operations of $1.5 million and $0.7 million during the three months ended January 31, 2022 and 2021, respectively, and $2.7 million and $1.4 million during the six months ended January 31, 2022 and 2021, respectively. Goodwill and Intangible Assets, Net Changes in the carrying amount of goodwill were as follows (in thousands): Goodwill, July 31, 2021 $ 340,877 Addition — HazardHub acquisition 31,185 Goodwill, January 31, 2022 $ 372,062 The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands): January 31, 2022 July 31, 2021 Remaining Weighted-Average Useful Life (in years) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Intangible assets: Acquired technology 3.3 $ 38,100 $ 25,016 $ 13,084 $ 93,600 $ 86,367 $ 7,233 Customer contracts and related relationships 3.7 40,800 27,860 12,940 35,700 24,432 11,268 Partner relationships 3.2 200 130 70 200 119 81 Trademarks 4.5 3,400 1,576 1,824 2,500 1,339 1,161 Total 3.6 $ 82,500 $ 54,582 $ 27,918 $ 140,700 $ 120,957 $ 19,743 Amortization expense was $3.8 million and $6.3 million for the three months ended January 31, 2022 and 2021, respectively, and $7.5 million and $12.6 million for the six months ended January 31, 2022 and 2021, respectively. The future amortization expense for existing intangible assets as of January 31, 2022, based on their current useful lives, is as follows (in thousands): Fiscal year ending July 31, 2022 (remainder of fiscal year) $ 6,557 2023 6,888 2024 5,468 2025 5,026 2026 3,572 Thereafter 407 Total $ 27,918 Other assets Other assets consist of the following (in thousands): January 31, 2022 July 31, 2021 Prepaid expenses $ 2,759 $ 3,276 Contract costs 29,331 28,870 Deferred costs 1,664 2,777 Strategic equity investments 14,077 3,556 Other 4,976 — Other assets $ 52,807 $ 38,479 The Company’s other assets include strategic equity investments in privately-held companies in which the Company does not have a controlling interest or the ability to exert significant influence. The strategic investments consist of non-marketable equity securities that do not have readily determinable market values (Level 3). The Company records these strategic investments at cost less impairment and adjusts cost for subsequent observable changes in fair value. In the second quarter of fiscal year 2022, the Company invested $10.5 million in new strategic investments. No impairment charges related to strategic investments were recognized during the three and six months ended January 31, 2022 and 2021, respectively. Accrued Employee Compensation Accrued employee compensation consists of the following (in thousands): January 31, 2022 July 31, 2021 Bonus $ 24,898 $ 48,414 Commission 4,047 11,271 Vacation * 5,027 23,803 Salaries, payroll taxes, and benefits 19,544 18,649 Accrued employee compensation $ 53,516 $ 102,137 *In the first quarter of fiscal year 2022, the Company paid out accrued vacation for employees in certain countries upon adopting a non-accrued vacation policy effective September 1, 2021. Other Current Liabilities Other current liabilities consist of the following (in thousands): January 31, 2022 July 31, 2021 Lease liabilities $ 11,239 $ 11,624 Accrued royalties 9,239 7,525 Accrued taxes 3,727 6,796 Other 5,535 5,703 Other current liabilities $ 29,740 $ 31,648 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic earnings per share by dividing the net income (loss) 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 potentially dilutive common stock equivalents outstanding for the period using the treasury stock method. For purposes of this calculation, options to purchase common stock, stock awards, and the Convertible Senior Notes are considered to be common stock equivalents. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands except share and per share amounts): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Numerator: Net income (loss) $ (40,681) $ (8,652) $ (91,957) $ (28,842) Net income (loss) per share: Basic $ (0.49) $ (0.10) $ (1.10) $ (0.34) Diluted $ (0.49) $ (0.10) $ (1.10) $ (0.34) Denominator: Weighted average shares used in computing net income (loss) per share: Basic and diluted 83,413,643 83,830,624 83,430,693 83,737,889 The following weighted average shares of potential common stock were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive: Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Stock options 20,216 35,724 22,458 48,598 Stock awards 3,268,003 3,020,497 3,126,378 2,899,553 Convertible senior notes — 209,722 66,834 104,861 Since the Company has the intent and ability to settle the principal amount of the Convertible Senior Notes in cash and any excess in shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on net income per share, if applicable. The conversion spread will have a dilutive impact on net income (loss) per share when the average market price of the Company’s common stock for a given period exceeds the conversion price of $113.75 per share for the Convertible Senior Notes. During the three months ended January 31, 2022, the average market price of the Company's common stock did not exceed the conversion price for the Convertible Senior Notes. |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In March 2018, the Company offered and sold $400.0 million aggregate principal amount of its 1.25% Convertible Senior Notes due 2025. The Convertible Senior Notes were issued in accordance with the Indenture, dated as of March 13, 2018, between the Company and U.S. Bank National Association, as trustee (the “Trustee”) (the “Base Indenture”), as amended and supplemented by the First Supplemental Indenture, dated as of March 13, 2018, between the Company and the Trustee (together with the Base Indenture, the “Indenture”). The net proceeds from the issuance of the Convertible Senior Notes were $387.2 million, after deducting issuance costs. The Convertible Senior Notes are unsecured obligations of the Company with interest payable semi-annually in arrears at a rate of 1.25% per year, on March 15th and September 15th of each year. The Convertible Senior Notes will mature on March 15, 2025 unless repurchased, redeemed, or converted prior to such date. Prior to the close of business on the business day immediately preceding October 15, 2024, the Convertible Senior Notes are convertible at the option of holders during certain periods, upon satisfaction of certain conditions. On or after October 15, 2024, the Convertible Senior Notes are convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Convertible Senior Notes will have an initial conversion rate of 8.7912 shares of common stock per $1,000 principal (equivalent to an initial conversion price of approximately $113.75 per share of the Company's common stock). The conversion rate is subject to customary adjustments upon the occurrence of certain events but will not be adjusted for any accrued and unpaid interest. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election. The Company may redeem the Convertible Senior Notes, at its option, on or after March 20, 2022, at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including at least one of the three trading days immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. No sinking fund is provided for the Convertible Senior Notes. Upon the occurrence of a fundamental change (as defined in the Indenture) prior to the maturity date, holders may require the Company to repurchase all or a portion of the Convertible Senior Notes for cash at a price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Convertible Senior Notes rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Convertible Senior Notes, and equal in right of payment to any of its indebtedness that is not so subordinated. The Convertible Senior Notes are effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) and any preferred equity of its current or future subsidiaries. The net carrying value of the liability component, unamortized debt discount and unamortized debt issuance costs of the Convertible Senior Notes was as follows (in thousands): January 31, 2022 July 31, 2021 Principal $ 400,000 $ 400,000 Less unamortized: Debt discount 43,807 50,198 Debt issuance costs 5,272 5,977 Net carrying amount $ 350,921 $ 343,825 The effective interest rate of the Convertible Senior Notes is 5.53%. The following table sets forth the interest expense recognized related to the Convertible Senior Notes (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Contractual interest expense $ 1,250 $ 1,250 $ 2,500 $ 2,500 Amortization of debt discount 3,215 3,057 6,391 6,077 Amortization of debt issuance costs 357 322 705 637 Total $ 4,822 $ 4,629 $ 9,596 $ 9,214 Capped Call In March 2018, the Company paid $37.2 million to purchase capped calls with certain financial institutions pursuant to capped call confirmations (the “Capped Calls”). The Capped Calls have an initial strike price of $113.75 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Convertible Senior Notes. The Capped Calls have initial cap prices of $153.13 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, 3.5 million shares of common stock. By entering into the Capped Calls, the Company expects to reduce the potential dilution to its common stock (or, in the event the conversion is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion its stock price exceeds the conversion price under the Convertible Senior Notes. The Capped Calls are subject to either adjustment or termination upon the occurrence of specified extraordinary events affecting the Company, including a merger event, tender offer, and a nationalization, insolvency, or delisting involving the Company. Additionally, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including change in law, insolvency filing, and hedging disruptions. The Capped Calls were recorded in the period purchased as a reduction of the Company’s additional paid-in capital in the condensed consolidated balance sheets. |
Leases
Leases | 6 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company's lease obligations consist of operating leases for office facilities and equipment, with lease periods expiring through fiscal year 2032. Some leases include one or more options to renew. Lease renewals are not assumed in the determination of the lease term until the exercise of the renewal option is deemed to be reasonably certain. Components of operating lease costs were as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Operating lease cost 1 $ 3,933 $ 4,500 $ 8,185 $ 8,872 Variable lease cost 1,442 1,165 2,850 2,531 Sublease income (356) (397) (746) (792) Net operating lease cost $ 5,019 $ 5,268 $ 10,289 $ 10,611 (1) Lease expense for leases with an initial term of 12 months or less is excluded from the table above and was $0.3 million and $0.3 million for the three months ended January 31, 2022 and 2021, respectively, and $0.5 million and $0.6 million for the six months ended January 31, 2022 and 2021, respectively. Future operating lease payments as of January 31, 2022 were as follows (in thousands): Fiscal Year Ending July 31, 2022 (remainder of fiscal year) $ 7,445 2023 16,711 2024 16,615 2025 16,857 2026 17,006 Thereafter 67,609 Total future lease payments 142,243 Less imputed interest (22,063) Total lease liability balance $ 120,180 Supplemental information related to leases was as follows (in thousands, except for lease term and discount rate): January 31, 2022 July 31, 2021 Operating lease assets $ 91,780 $ 97,447 Current portion of lease liabilities $ 11,239 $ 11,624 Non-current portion of lease liabilities 108,941 115,374 Total lease liabilities $ 120,180 $ 126,998 Weighted average remaining lease term (years) 8.30 8.74 Weighted average discount rate 4.10 % 4.20 % Supplemental cash and non-cash information related to operating leases was as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Cash payments for operating leases $ 4,411 $ 4,082 $ 10,345 $ 9,367 Operating lease assets obtained in exchange for lease liabilities $ 18 $ (2,703) $ 433 $ 6,514 In March 2020, the Company entered into a new lease agreement for office space in Dublin, Ireland which commenced in July 2020. In December 2020, the Company exercised the early termination option that was included in the new lease agreement, which terminated the agreement for the existing office space in Dublin, Ireland, and resulted in a reduction of the operating lease asset and lease liability of approximately $2.9 million. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies There has been no material change in the Company’s contractual obligations and commitments other than in the ordinary course of business since the Company’s fiscal year ended July 31, 2021. Legal Proceedings From time to time, the Company is involved in various legal proceedings and receives claims, arising from the normal course of business activities. The Company has not recorded any accrual for claims as of January 31, 2022 or July 31, 2021. The Company has not accrued for estimated losses in the accompanying condensed consolidated financial statements as the Company has determined that no provision for liability nor disclosure is required related to any claim against the Company because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. The Company expenses legal fees in the period in which they are incurred. Indemnification The Company sells software licenses and services to its customers under Software License Agreements ("SLA") and Software Subscription Agreements ("SSA"). SLAs and SSAs contain the terms of the contractual arrangement with the customer and generally include 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. SLAs and SSAs also generally indemnify the customer against judgments, settlements, fines, penalties, costs, and expenses resulting from a claim ("Losses") against the customer in the event the Company’s software is found to infringe upon such third-party rights. The Company has not had to reimburse any of its customers for Losses related to indemnification provisions and no material claims against the Company were outstanding as of January 31, 2022 or July 31, 2021. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under various SLAs and SSAs, 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. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense and Shareholders' Equity | 6 Months Ended |
Jan. 31, 2022 | |
Stockholders' Equity and Stock-based Compensation [Abstract] | |
Stock-Based Compensation Expense and Shareholders' Equity | Stock-Based Compensation Expense and Shareholders’ Equity Stock-Based Compensation Expense Stock-based compensation expense related to stock options and Stock Awards is included in the Company’s condensed consolidated statements of operations as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Stock-based compensation expense $ 38,147 $ 30,209 $ 70,680 $ 58,603 Net impact of deferred stock-based compensation (282) (313) (575) (623) Total stock-based compensation expense, net $ 37,865 $ 29,896 $ 70,105 $ 57,980 Stock-based compensation expense is included in the following categories: Cost of subscription and support revenue $ 3,773 $ 2,954 $ 7,121 $ 5,556 Cost of license revenue 189 145 371 396 Cost of services revenue 6,081 5,578 11,718 11,121 Research and development 9,433 7,604 18,047 14,851 Sales and marketing 10,825 6,806 18,314 12,783 General and administrative 7,564 6,809 14,534 13,273 Total stock-based compensation expense $ 37,865 $ 29,896 $ 70,105 $ 57,980 Total unrecognized stock-based compensation expense as of January 31, 2022 related to Stock Awards is $321.9 million, that will be recognized over a weighted average period of 2.7 years. Stock Awards A summary of the Company’s Stock Awards activity under the Company’s equity incentive plans is as follows: Stock Awards Outstanding Number of Stock Awards Outstanding Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) (1) Balance as of July 31, 2021 2,394,968 $ 107.15 $ 275,900 Granted 1,609,375 $ 119.61 Released (665,640) $ 104.90 $ 76,912 Canceled (203,385) $ 110.53 Balance as of January 31, 2022 3,135,318 $ 113.80 $ 316,165 Expected to vest as of January 31, 2022 3,135,318 $ 113.80 $ 316,165 (1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $100.84 and $115.20 on January 31, 2022 and July 31, 2021, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release. Certain executives and employees of the Company received PSUs and TSR PSUs in addition to RSUs. PSUs awarded in fiscal years 2021 and 2022 will vest over three years with 50% vesting annually over the three year period and the remaining 50% vesting at the end of the third year. The TSR PSUs are subject to total shareholder return rankings of the Company's common stock relative to the software companies in the S&P Index for a specified period or periods, and vest at the end of three years. The Company recognized stock-based compensation related to these performance-based and market-based stock awards of $3.5 million and $3.7 million for the three months ended January 31, 2022 and 2021, respectively, and $7.5 million and $7.0 million for the six months ended January 31, 2022 and 2021, respectively. Stock Options Stock option activity under the Company’s equity incentive plans is as follows: Stock Options Outstanding Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in years) (in thousands) Balance as of July 31, 2021 25,278 $ 17.39 5.0 $ 2,472 Granted — Exercised (8,748) $ 11.12 $ 900 Canceled — Balance at January 31, 2022 16,530 $ 20.72 3.7 $ 1,324 Vested and expected to vest as of January 31, 2022 16,530 $ 20.72 3.7 $ 1,324 Exercisable as of January 31, 2022 16,530 $ 20.72 3.7 $ 1,324 (1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock price of $100.84 and $115.20 on January 31, 2022 and July 31, 2021, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. Common Stock Reserved for Issuance As of January 31, 2022 and July 31, 2021, the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share and, of these, 83,546,000 and 83,194,157 shares of common stock were issued and outstanding, respectively. As of January 31, 2022 and July 31, 2021, the Company had reserved shares of common stock for future issuance as follows: January 31, 2022 July 31, 2021 Exercise of stock options to purchase common stock 16,530 25,278 Vesting of stock awards 3,135,318 2,394,968 Shares available under stock plans 3,608,079 5,014,069 Total common stock reserved for issuance 6,759,927 7,434,315 Equity Incentive Plan On December 15, 2020, the Company’s stockholders adopted the 2020 Stock Plan (“2020 Plan”) for the purpose of granting equity-based incentive awards. The Company initially reserved 5,000,000 shares of its common stock for the issuance of awards under the 2020 Plan. The shares available for issuance are subject to adjustment in the event of a stock split, stock dividend or other defined changes in the Company’s capitalization. The 2020 Plan replaced the Company’s 2011 Stock Plan; however, awards outstanding under the 2011 Stock Plan will continue to be governed by their existing terms. The shares the Company issues under the 2020 Plan will be from the Company's pool of authorized but unissued shares. The shares of common stock underlying any awards under the 2011 Plan that are forfeited, canceled, held back upon exercise or settlement of an award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without any issuance of stock or are otherwise terminated (other than by exercise) are added back to the shares of stock available for issuance under the 2020 Plan. Stock Repurchase Program In October 2020, the Company's board of directors authorized and approved a stock repurchase program of up to $200.0 million of the Company's outstanding common stock. Stock repurchases under the program may be made from time to time, in the open market, in privately negotiated transactions and otherwise, at the discretion of management of the Company and in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act, and other applicable legal requirements. Such repurchases may also be made in compliance with Rule 10b5-1 trading plans entered into by the Company. During the three months ended January 31, 2022, the Company repurchased 96,373 shares of common stock at an average price of $116.09 per share, for an aggregate purchase price of $11.2 million. During the six months ended January 31, 2022, the Company repurchased 322,545 shares of common stock at an average price of $116.11 per share, for an aggregate purchase price of $37.5 million. As of January 31, 2022, the share repurchase program was completed. |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognized an income tax benefit of $11.0 million and $14.2 million for the three months ended January 31, 2022 and 2021, respectively, and $28.0 million and$24.9 million for the six months ended January 31, 2022 and 2021, respectively. The change in the amount of income taxes recorded for the three months ended January 31, 2022, compared to the same period a year ago, was primarily due to the increase in loss before tax, offset by the release of uncertain tax positions in the prior year. The change in the amount of income taxes recorded for the six months ended January 31, 2022, compared to the same period a year ago, was primarily due to the increase in the loss before taxes and research and development credits, offset by the release of uncertain tax positions in the prior year and the tax impact caused by the tax status change of certain foreign subsidiaries for U.S. tax purposes. The effective tax rate of 21% and 23% for the three and six months ended January 31, 2022, respectively, could differ from the statutory U.S. federal income tax rate of 21% mainly due to permanent differences for stock-based compensation including excess tax benefits, research and development credits, and certain non-deductible expenses including executive compensation. During the three and six months ended January 31, 2022, unrecognized tax benefits increased by $0.4 million and $0.9 million, respectively. As of January 31, 2022, the Company had unrecognized tax benefits of $11.6 million that, if recognized, would affect the Company’s effective tax rate. |
Segment Information
Segment Information | 6 Months Ended |
Jan. 31, 2022 | |
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 subscription, support, term license, perpetual license, and services offerings as well as by geographic region, while all other financial information is reviewed on a consolidated basis. The Company’s principal operations and decision-making functions are located in the United States. The Company's long-lived assets for this disclosure is defined as property and equipment and operating lease assets. The Company’s long-lived assets by geographic region is as follows (in thousands): January 31, 2022 July 31, 2021 Americas $ 137,759 $ 143,736 EMEA 34,553 32,171 APAC 1,160 1,601 Total $ 173,472 $ 177,508 |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 6 Months Ended |
Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company | 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 combines core operations, digital engagement, analytics, and artificial intelligence ("AI") applications. The Company's technology platform supports core insurance operations, including underwriting, policy administration, claim management and billing; insights into data that can improve business decision making; and digital sales, service, and claims experiences for policyholders, agents, and other key stakeholders. The Company’s customers are primarily property and casualty insurance carriers. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Company's condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The condensed consolidated financial statements and notes include the Company and its wholly-owned subsidiaries and reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted under the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s consolidated financial statements included in its Annual Report on Form 10-K. |
Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with 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 revenue and expenses. Significant items subject to such estimates include, but are not limited to, revenue recognition, the useful lives of property and equipment and intangible assets, accounts receivable allowances, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties, fair value of convertible senior notes and investments, valuation of goodwill and intangible assets, fair value of acquired assets and assumed liabilities, software development costs to be capitalized, leases, and contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ from these estimates. |
Foreign Currency | 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 balance sheet date. Revenue 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 condensed consolidated balance sheets. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency of the recording entity are included in other income (expense) in the condensed consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash 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 primarily consist of commercial paper and money market funds. |
Investments | 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 in the periods presented have been classified as available-for-sale. |
Property, Equipment, and Software Development Costs | Property, Equipment, and Software Development Costs 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. 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, equipment, and software development are as follows: Computer hardware 3 years Purchased software 3 years Software development 3 to 5 years Equipment and machinery 3 to 5 years Furniture and fixtures 5 years Leasehold improvements Shorter of 10 years or remaining lease term |
Software Development Costs | Certain development costs related to software delivered to customers ("self-managed software") 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. Costs incurred subsequent to the establishment of technological feasibility have not been material and, therefore, all software development costs related to self-managed software have been charged to research and development expense in the accompanying condensed consolidated statements of operations as incurred. The Company capitalizes software development costs for technology applications that provide new or significantly enhanced functionality that the Company will offer solely as cloud-based subscriptions. Capitalized costs are primarily comprised of compensation for employees who are directly associated with cloud software development projects. The Company begins to capitalize costs when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. If any of these criteria cease being met before the software reaches its intended use, any capitalized costs related to the project will be impaired. When the software reaches its intended use, which is typically once the technology applications are available for general release, capitalized costs are amortized to cost of revenue over the estimated useful lives of the related assets, generally estimated to be three |
Leases | Leases The Company accounts for leases under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 842: Leases (“ASC 842"). Under ASC 842, the Company determines if an arrangement is a lease at inception of the agreement. If an arrangement is determined to be a lease, an operating lease asset, also known as a right-of-use asset, and lease liability are recorded based on the present value of lease payments over the lease term. In connection with determining the present value of the lease payments, the Company considers only payments that are fixed and determinable at the time of commencement, including non-lease components that are fixed throughout the lease term. Variable components of the lease payments, such as utilities, maintenance, and taxes, are expensed as incurred and not included in determining the present value of the lease liability. As the Company's leases generally do not provide an implicit rate, the Company's incremental borrowing rate, calculated based on available information at the lease commencement date, is used in determining the present value of the lease payments. The Company's incremental borrowing rate is a hypothetical rate based on the Company's understanding of its credit rating. The lease term used to calculate the lease liability and operating lease asset includes options to extend or terminate the lease if it is reasonably certain the Company will exercise that option. Operating lease assets also include any lease payments made prior to commencement and are recorded net of any lease incentives received. Lease expense is recognized on a straight-line basis over the lease term and is reflected in the condensed consolidated statements of operations in each of the cost of revenue and operating expense categories. The Company also enters into agreements to sublease unoccupied office space. Any sublease payments received in excess of the straight-line rent expense related to the subleased space are recorded as an offset to operating expenses over the sublease term. |
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, operating lease assets, 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 amount 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 amount of the assets over the estimated fair value of the assets. There have been no long-lived assets and intangible assets impairments during 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 the Company’s single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the 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 goodwill impairment test is not performed. There have been no goodwill impairments during the periods presented. |
Convertible Senior Notes | Convertible Senior Notes In March 2018, the Company issued $400.0 million aggregate principal amount of 1.25% Convertible Senior Notes due 2025 (the “Convertible Senior Notes”). The Company accounts for the liability and equity components of the issued Convertible Senior Notes separately. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the Convertible Senior Notes as a whole. This difference represents a debt discount that is amortized to interest expense using the effective interest method over the term of the Convertible Senior Notes. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The liability and equity components will not be remeasured as long as the conversion option continues to meet the requirements for equity classification. The equity component is net of issuance costs and recorded in additional paid-in capital. |
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. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired and liabilities assumed, whichever comes first, subsequent adjustments, if any, are recorded to the Company’s condensed consolidated statements of operations. |
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, accounts receivable and unbilled 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 in the condensed consolidated balance sheets are in excess of amounts that are insured by the Federal Deposit Insurance Corporation. |
Accounts Receivable and Allowances | Accounts Receivable and Allowances Accounts receivable are recorded at invoiced amounts and do not bear interest. While the Company does not require collateral, the Company performs ongoing credit evaluations of its customers. The Company maintains an allowance for credit losses based upon the expected collectability of its accounts receivable. The expectation of collectability is based on historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with delinquent accounts. Credit losses are recorded in general and administrative expense while billing and other revenue adjustments are recorded against the corresponding revenue financial statement line item in the condensed consolidated statements of operations. |
Revenue Recognition | Revenue Recognition The Company’s revenue is derived from contracts with customers. The majority of the Company’s revenue is derived from subscriptions to its cloud services, licensing arrangements for its software, and implementation and other professional services arrangements. The Company accounts for revenue in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). The core principle of ASC 606 is to recognize revenue upon the transfer of services or products to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company applies the following framework to recognize revenue: Identification of the contract, or contracts, with the customer The Company considers the terms and conditions of written contracts and its customary business practices in identifying its contracts. The Company determines it has a contract with a customer when the contract is approved, the Company can identify each party’s rights regarding the services and products to be transferred, the Company can identify the payment terms for the services and products, the Company has determined that the customer has the ability and intent to pay, and the contract has commercial substance. In general, contract terms will be reflected in a written document that is signed by both parties. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract. The Company also evaluates the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. Contracts may be modified to account for changes in contract scope or price. The Company considers contract modifications to exist when the modification either creates new rights or obligations or changes the existing enforceable rights and obligations of either party. Contract modifications for services and products that are distinct from the existing contract and are priced commensurate with their standalone selling price are treated as separate contracts and are accounted for prospectively. Contract modifications for services and products that are distinct but are not priced commensurate with their standalone selling price or are not distinct from the existing contract may affect the initial transaction price or the allocation of the transaction price to the performance obligations in the contract. In such cases, recognized revenue may be adjusted. Identification of the performance obligation in the contract Performance obligations promised in a contract are identified based on the services or products that will be transferred to the customer that are both: i. capable of being distinct, whereby the customer can benefit from the service or product either on its own or together with other resources that are readily available from the Company or third parties, and ii. distinct in the context of the contract, whereby the transfer of the services or products is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services or products, the Company applies judgment to determine whether promised services or products are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised services or products are accounted for as a combined performance obligation. The Company generates revenue from the following sources, which represent the performance obligations of the Company: i. Subscription services related to the Company's Software-as-a-Service ("SaaS") offerings, including hosting; ii. Support activities that consist of email and phone support, bug fixes, and unspecified software updates and upgrades released when, and if, available during the support term; iii. Self-managed software licenses related to term or perpetual agreements; and iv. Services related to the implementation and configuration of the Company’s services and products, reimbursable travel, and training. Subscriptions are typically sold with a three to five year initial term with a customer option to renew on an annual basis after the initial term. Term licenses generally have a two-year initial term with a customer option to renew on an annual basis after the initial term. In certain circumstances, the Company will enter into term licenses with an initial term of more than two years or a renewal period longer than one year. Support for term licenses follows the same contract periods. Professional services typically are time and materials contracts that last for an average period of approximately one year. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services and products to the customer. Consideration may vary due to discounts, incentives, and potential service level credits or contractual penalties. Variable consideration is estimated and included in the transaction price if, in the Company’s judgment, it is probable that there will not be a significant future reversal of cumulative revenue under the contract. Self-managed software licenses and subscription services may be subject to either fixed or variable installments. Variable installments are generally subject to changes in a customer’s Direct Written Premium (“DWP”) or a customer’s Gross Written Premium (“GWP”). When consideration is subject to variable installments, the Company estimates variable consideration using the expected value method based on historical DWP or GWP usage to the extent that a significant revenue reversal is not probable to occur. When consideration is subject to a customer termination right, the Company estimates the total transaction price using the most likely method, and defers consideration associated with the customer’s termination right until it expires. The Company elected the practical expedient to evaluate whether a significant financing component exists when the contract term is greater than one year and the timing of revenue recognition occurs in advance of invoicing. This timing difference occurs when control of the software license is transferred at a point in time, usually at the contract onset, but the customer payments occur over time. A significant financing component generally does not exist under the Company’s standard contracting and billing practices. For example, the Company’s typical time-based licenses have a two-year initial term with the final payment due at the end of the first year and the Company's typical subscription services are generally billed in advance of providing the services. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on its standalone selling price (“SSP”) in relation to the total fair value of all performance obligations in the arrangement. The majority of the Company’s contracts contain multiple performance obligations, such as when licenses are sold with support, implementation services, or training services. Additionally, as customers enter into subscription agreements to migrate from an existing term license agreement, customers may be under contract for self-managed licenses and support, in addition to subscription services, for a period of time, which may require an allocation of the transaction price to each performance obligation. New and migration subscription agreements also typically include implementation, configuration and training services, which may require an allocation of the transaction price to each performance obligation. Some of the Company’s performance obligations, such as support, implementation services, and training services, have observable inputs that are used to determine the SSP of those distinct performance obligations. Where SSP is not directly observable, the Company determines the SSP using information that may include market conditions and other observable inputs. In the circumstances when available information to determine SSP is highly variable or uncertain, such as for our term licenses, the Company will use the residual method. Recognition of revenue when, or as, the Company satisfies a performance obligation The Company recognizes revenue when control of the services or products are transferred to a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company is principally responsible for the satisfaction of its distinct performance obligations, which are satisfied either at a point in time or over a period of time. Performance obligations satisfied at a point in time Self-managed term and perpetual software licenses comprise the majority of distinct performance obligations that are satisfied at a point in time. Revenue is recognized at the point in which the self-managed software licenses are made available to a customer. Consideration for self-managed software licenses is typically billed in advance on an annual basis over the license term. Performance obligations satisfied over a period of time Subscriptions, support activities, and professional service arrangements comprise the majority of distinct performance obligations that are satisfied over a period of time. Revenue from subscription arrangements is recognized ratably over the subscription period using a time-based measure of progress as customers receive the benefits from their subscriptions over the contractually agreed-upon term. The Company’s subscription arrangements are generally three to five years in duration. Consideration for subscription arrangements is typically billed in advance on an annual basis over the contract period. Revenue from support activities associated with self-managed licenses is a stand-ready obligation, which is generally recognized over the contractually agreed-upon term using a time-based measure of progress as customers receive benefits from the availability of support technicians over the support period. Consideration for support activities is typically billed in advance on an annual basis. The Company’s support activities are consistently priced as a percentage of the associated self-managed software license. Revenue from professional service arrangements is recognized over the service period as the underlying services are performed. In substantially all of the Company’s professional service contracts, services are separately identifiable performance obligations for which related revenue and costs are recognized according to when each service obligation is delivered. Substantially all professional services engagements are billed and recognized on a time and materials basis. In select situations, the Company will contract professional services on a fixed fee basis, where the Company generally recognizes services revenue over time, using an input method. The measure of progress of the professional services being provided under these fixed fee arrangements is based on hours incurred compared to estimates of the total hours to complete the performance obligation. When professional services are sold with a self-managed license or subscription arrangement, the Company evaluates whether the performance obligations are distinct or separately identifiable, or whether they constitute a single performance obligation. In the limited cases where professional services are not considered to be distinct from the self-managed license or subscription services, the Company will recognize revenue based on the nature and term of the combined performance obligation when control of the combined performance obligation is transferred to the customer. Balance Sheet Presentation Contracts with customers are reflected in the condensed consolidated balance sheets as follows: • Accounts receivable, net represents amounts billed to customers in accordance with contract terms for which payment has not yet been received. It is presented net of any allowances as part of current assets in the condensed consolidated balance sheets. • Unbilled accounts receivable, net represents amounts that are unbilled due to agreed-upon contractual terms in which billing occurs subsequent to revenue recognition. This situation typically occurs when the Company transfers control of self-managed software licenses to customers up-front, but invoices customers annually over the term of the license. Unbilled accounts receivable is classified as either current or non-current based on the duration of remaining time between the date of the condensed consolidated balance sheets and the anticipated due date of the underlying receivables. Unbilled accounts receivable is evaluated for credit losses based upon the expected collectibility of future accounts receivable, customer payment history, global economic conditions, and ongoing credit evaluations of customers. Unbilled accounts receivable is presented net of allowance for credit losses, if applicable, in the condensed consolidated balance sheets. This balance represents contract assets. • Contract costs include customer acquisition costs, which consist primarily of sales commissions and related payroll taxes paid to sales personnel and referral fees paid to third-parties, and costs to fulfill a contract, which consist primarily of royalties payable to third-party software providers that support both the Company’s software offerings and support services. The short-term portion is presented as prepaid and other current assets. The long-term portion is presented as other assets. • Deferred costs represent costs related to our professional services that have been deferred to align with revenue recognition. The short-term portion is presented as prepaid and other current assets. The long-term portion is presented as other assets. • Deferred revenue, net represents amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue because the related services or products have not been transferred to the customer. Deferred revenue that will be realized during the 12-month period following the date of the condensed consolidated balance sheets is recorded as current. The remaining deferred revenue is recorded as non-current. This balance represents contract liabilities. The Company may receive consideration from its customers in advance of performance on a portion of the contract and, on another portion of the contract, perform in advance of receiving consideration. Contract assets and liabilities related to rights and obligations in a contract are interdependent. Therefore, contract assets and liabilities are presented net at the contract level, as either a single contract asset or a single contract liability, in the condensed consolidated balance sheets. Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company excludes amounts related to professional services contracts that are on a time and materials basis from remaining performance obligations. Contract Costs Contract costs consists of two components, customer acquisition costs and costs to fulfill a contract. Customer acquisition costs are capitalized only if the costs are incrementally incurred to obtain a customer contract and the expected amortization period is greater than one year. Contract costs are classified as either current or non-current based on the duration of time remaining between the date of the condensed consolidated balance sheets and the anticipated amortization date of the associated costs. Capitalized customer acquisition costs related to software licenses, subscriptions, and support services are amortized over the anticipated period of time that such goods and services are expected to be provided to a customer, which the Company estimates to be approximately five years. The amortization of customer acquisition costs is classified as a sales and marketing expense in the condensed consolidated statement of operations. Costs to fulfill a contract, or fulfillment costs, are only capitalized if they relate directly to a contract with a customer, the costs generate or enhance resources that will be used to satisfy performance obligations in the future, and the costs are expected to be recoverable. Fulfillment costs would be generally amortized over the same period of time as the customer acquisition costs. The amortization of fulfillment costs is classified as a cost of revenue in the condensed consolidated statement of operations. |
Warranties | Warranties The Company generally provides a warranty for its software services and products to its customers for periods ranging from three to twelve months. The Company's software products are generally warranted to be free of defects in materials and workmanship under normal use and 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 a refund of the fees paid for the non-conforming product or services. Warranty expense has been insignificant to date. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and amounts incurred were not material during the three and six months ended January 31, 2022 and 2021. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation using the fair value method, which requires the Company to measure stock-based compensation based on the grant-date fair value of the awards and recognize the compensation expense over the requisite service period. The Company recognizes compensation expense net of actual forfeitures. For the periods presented, the Company has granted time-based restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), and restricted stock units that may be earned subject to the Company’s total shareholder return ranking relative to the software companies in the S&P Software and Services Select Industry Index (“S&P Index”) over a specified performance period or periods, service periods, and, in select cases, performance conditions (“TSR PSUs”). RSUs, PSUs, and TSR PSUs are collectively referred to as “Stock Awards.” The fair value of the Company’s RSUs and PSUs is equal to the market value of the Company’s common stock on the date of grant. These awards are subject to time-based vesting, which generally occurs over a period of three to four years. The Company recognizes compensation expense for awards that 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 that contain either performance conditions, market conditions, or both using the graded vesting method and a portion of the expense may fluctuate depending on changing estimates of the achievement of the performance conditions. The fair value of the Company’s TSR PSUs is estimated at the grant date using the Monte Carlo simulation method. The assumptions utilized under this method require judgments and estimates. Changes in these inputs and assumptions could affect the measurement of the estimated fair value of the compensation expense of the related stock awards. Compensation expense associated with TSR PSUs will be recognized over the vesting period regardless of whether the market condition is ultimately satisfied; however, the expense will be reversed if a grantee terminates prior to satisfying the requisite service period. For TSR PSUs containing an additional performance condition, a portion of the expense may fluctuate depending on estimates of the achievement of the performance conditions. All TSR PSUs will vest at the end of a three-year period. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement carrying amounts and tax basis of existing assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. All deferred tax assets and liabilities are classified as non-current on the Company’s condensed consolidated balance sheets. 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 both positive and negative evidence about the future, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The effective tax rate in any given financial statement period may differ materially from the statutory rate. These differences may be caused by changes in tax regulations and resulting changes in the deferred tax valuation allowance; changes in the mix and level of income or losses; changes in the expected outcome of tax audits; permanent differences for stock-based compensation, including excess tax benefits; research and development credits; the tax rate differences between the United States and foreign countries; foreign withholding taxes; certain non-deductible expenses, including executive compensation; acquisition-related expenses; and provisions under the Tax Cuts and Jobs Act (the “Tax Act”), including a provision to tax global intangible low-taxed income of foreign subsidiaries, a special deduction for foreign-derived intangible income, and a base erosion anti-abuse tax that may tax certain payments between a U.S. corporation and its foreign subsidiaries. The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its condensed consolidated statement of operations. |
Recent Accounting Pronouncements Not Yet Adopted; Other Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In August 2020, the FASB issued ASU No. 2020-06, “Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies the accounting for convertible instruments by eliminating the requirement to separate embedded conversion features from the host contract when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. By removing the separation model, a convertible debt instrument will be reported as a single liability instrument with no separate accounting for embedded conversion features. This new standard also removes certain settlement conditions that are required for contracts to qualify for equity classification and simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted earnings per share calculations. This new standard will be effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company is currently assessing the impact of adopting this standard on the condensed consolidated financial statements, however, it believes the requirement to use the if- converted method instead of the treasury stock method of accounting for the shares issuable upon conversion of the Convertible Senior Notes, could negatively affect its diluted earnings per share. Other Accounting Pronouncements Other recent accounting pronouncements that will be applicable to the Company are not expected to have a material impact on its present or future financial statements. |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies and Estimates (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated useful lives of property and equipment | The estimated useful lives of property, equipment, and software development are as follows: Computer hardware 3 years Purchased software 3 years Software development 3 to 5 years Equipment and machinery 3 to 5 years Furniture and fixtures 5 years Leasehold improvements Shorter of 10 years or remaining lease term |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue by license or service type is as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Subscription and Support Subscription $ 62,871 $ 38,278 $ 120,000 $ 75,508 Support 21,426 21,285 43,287 42,021 License Term license 69,750 77,864 109,855 143,089 Perpetual license 48 48 96 106 Services 50,538 42,587 97,329 89,140 Total revenue $ 204,633 $ 180,062 $ 370,567 $ 349,864 Revenue by revenue type and by geography is as follows (in thousands): Three Months Ended January 31, 2022 Subscription and support License Services Total United States $ 55,718 $ 38,133 $ 31,780 $ 125,631 Canada 14,037 4,700 6,887 25,624 Other Americas 1,046 — 715 1,761 Total Americas 70,801 42,833 39,382 153,016 United Kingdom 2,417 8,944 918 12,279 Other EMEA 5,381 6,686 7,003 19,070 Total EMEA 7,798 15,630 7,921 31,349 Total APAC 5,698 11,335 3,235 20,268 Total revenue $ 84,297 $ 69,798 $ 50,538 $ 204,633 Three Months Ended January 31, 2021 Subscription and support License Services Total United States $ 39,865 $ 39,438 $ 28,295 $ 107,598 Canada 7,862 8,606 2,653 19,121 Other Americas 1,112 188 1,517 2,817 Total Americas 48,839 48,232 32,465 129,536 United Kingdom 1,650 6,449 848 8,947 Other EMEA 4,694 11,282 6,691 22,667 Total EMEA 6,344 17,731 7,539 31,614 Total APAC 4,380 11,949 2,583 18,912 Total revenue $ 59,563 $ 77,912 $ 42,587 $ 180,062 |
Contract with Customer, Asset and Liability | Amounts related to customer contract-related arrangements are included in the condensed consolidated balance sheets as follows (in thousands): January 31, 2022 July 31, 2021 Unbilled accounts receivable, net $ 103,983 $ 103,422 Contract costs, net 44,048 42,235 Deferred revenue, net 128,886 145,936 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Available-for-sale investments within cash equivalents and investments consist of the following (in thousands): January 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Commercial paper $ 241,734 $ — $ — $ 241,734 Corporate bonds 381,914 139 (1,807) 380,246 Certificates of deposit 63,051 — — 63,051 U.S. Government bonds 75,301 17 (607) 74,711 Money market funds 106,208 — — 106,208 U.S. Government agency securities 32,639 — (228) 32,411 Asset-backed securities 55,924 — (211) 55,713 Foreign government bonds 35,406 — (175) 35,231 Municipal bonds 205 — (1) 204 Strategic convertible debt investment* 1,000 — — 1,000 Total $ 993,382 $ 156 $ (3,029) $ 990,509 *At original cost July 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Commercial paper $ 389,837 $ — $ — $ 389,837 Corporate bonds 371,374 623 (37) 371,960 Certificates of deposit 82,250 — — 82,250 U.S. Government bonds 64,401 62 (1) 64,462 Money market funds 125,118 — — 125,118 U.S. Government agency securities 85,165 15 — 85,180 Asset-backed securities 47,925 29 (7) 47,947 Foreign government bonds 33,177 10 (2) 33,185 Municipal bonds 1,685 — — 1,685 Strategic convertible debt investment* 1,000 — — 1,000 Total $ 1,201,932 $ 739 $ (47) $ 1,202,624 |
Investments Classified by Contractual Maturity Date | The following table summarizes the contractual maturities of the Company’s available-for-sale investments measured at fair value (in thousands): January 31, 2022 Less Than 12 Months 12 Months or Greater Total Commercial paper $ 239,234 $ 2,500 $ 241,734 Corporate bonds 207,859 172,387 380,246 Certificates of deposit 62,051 1,000 63,051 U.S. Government bonds 46,878 27,833 74,711 Money market funds 106,208 — 106,208 U.S. Government agency securities 4,999 27,412 32,411 Asset-backed securities 3,670 52,043 55,713 Foreign government bonds 24,869 10,362 35,231 Municipal bonds 204 — 204 Strategic convertible debt investment $ 1,000 $ — $ 1,000 Total $ 696,972 $ 293,537 $ 990,509 |
Fair Value, Assets Measured on Recurring Basis | The following tables summarize the Company’s available-for-sale investments measured at fair value, by level within the fair value hierarchy (in thousands): January 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper — 28,011 — 28,011 Money market funds 106,208 — — 106,208 Total cash equivalents 106,208 28,011 — 134,219 Short-term investments: Commercial paper — 211,223 — 211,223 Corporate bonds — 207,859 — 207,859 Certificates of deposit — 62,051 — 62,051 U.S. Government bonds — 46,878 — 46,878 U.S. Government agency securities — 4,999 — 4,999 Asset-backed securities — 3,670 — 3,670 Foreign government bonds — 24,869 — 24,869 Municipal bonds — 204 — 204 Strategic convertible debt investment — — 1,000 1,000 Total short-term investments — 561,753 1,000 562,753 Long-term investments: Commercial paper — 2,500 — 2,500 Corporate bonds — 172,387 — 172,387 Certificates of deposit — 1,000 — 1,000 U.S. Government bonds — 27,833 — 27,833 U.S. Government agency securities — 27,412 — 27,412 Asset-backed securities — 52,043 — 52,043 Foreign government bonds — 10,362 — 10,362 Total long-term investments — 293,537 — 293,537 Total 106,208 883,301 1,000 990,509 July 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper $ — $ 115,825 $ — $ 115,825 Money market funds 125,118 — — 125,118 Total cash equivalents 125,118 115,825 — 240,943 Short-term investments: Commercial paper — 274,012 — 274,012 Corporate bonds — 225,384 — 225,384 Certificates of deposit — 80,750 — 80,750 U.S. Government bonds — 45,320 — 45,320 U.S. Government agency securities — 69,183 — 69,183 Asset-backed securities — 9,036 — 9,036 Foreign government bonds — 28,353 — 28,353 Municipal bonds — 1,480 — 1,480 Strategic convertible debt investment — — 1,000 1,000 Total short-term investments — 733,518 1,000 734,518 Long-term investments: Corporate bonds — 146,576 — 146,576 Certificates of deposit — 1,500 — 1,500 U.S. Government bonds — 19,142 — 19,142 U.S. Government agency securities — 15,997 — 15,997 Asset-backed securities — 38,911 — 38,911 Foreign government bonds — 4,832 — 4,832 Municipal bonds — 205 — 205 Total long-term investments — 227,163 — 227,163 Total $ 125,118 $ 1,076,506 $ 1,000 $ 1,202,624 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase consideration is as follows: Preliminary Purchase Price Allocation Estimated Useful Lives (in thousands) (in years) Acquired assets, net of assumed liabilities $ 461 Acquired technology 9,700 5 Customer relationships 5,100 5 Trademarks 900 7 Goodwill 31,185 Deferred tax liability (2,839) Total preliminary purchase consideration $ 44,507 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivables and Allowance for Doubtful Accounts | Accounts receivable, net consists of the following (in thousands): January 31, 2022 July 31, 2021 Accounts receivable $ 112,281 $ 105,125 Allowance for credit losses and revenue reserves (576) (1,057) Accounts receivable, net $ 111,705 $ 104,068 Allowance for Credit Losses and Revenue Reserves Changes to the allowance for credit losses and revenue reserves consists of the following (in thousands): Balance as of July 31, 2021 $ 1,057 Net changes to credit losses — Net changes to revenue reserves (154) Write-offs, net (327) Balance as of January 31, 2022 $ 576 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): January 31, 2022 July 31, 2021 Prepaid expenses $ 21,319 $ 20,330 Contract costs 14,717 13,365 Deferred costs 9,910 9,247 Other 15,477 9,787 Prepaid expenses and other current assets $ 61,423 $ 52,729 |
Property and equipment | Property and equipment consist of the following (in thousands): January 31, 2022 July 31, 2021 Computer hardware $ 14,009 $ 19,256 Purchased software 5,484 6,002 Capitalized software development costs 30,881 24,025 Equipment and machinery 8,654 12,214 Furniture and fixtures 11,453 11,482 Leasehold improvements 59,686 57,960 Total property and equipment 130,167 130,939 Less accumulated depreciation (48,475) (50,878) Property and equipment, net $ 81,692 $ 80,061 |
Schedule of Goodwill | Changes in the carrying amount of goodwill were as follows (in thousands): Goodwill, July 31, 2021 $ 340,877 Addition — HazardHub acquisition 31,185 Goodwill, January 31, 2022 $ 372,062 |
Schedule of Finite-Lived Intangible Assets | The Company’s intangible assets are amortized over their estimated useful lives. Intangible assets consist of the following (in thousands): January 31, 2022 July 31, 2021 Remaining Weighted-Average Useful Life (in years) Cost Accumulated Amortization Net Book Value Cost Accumulated Amortization Net Book Value Intangible assets: Acquired technology 3.3 $ 38,100 $ 25,016 $ 13,084 $ 93,600 $ 86,367 $ 7,233 Customer contracts and related relationships 3.7 40,800 27,860 12,940 35,700 24,432 11,268 Partner relationships 3.2 200 130 70 200 119 81 Trademarks 4.5 3,400 1,576 1,824 2,500 1,339 1,161 Total 3.6 $ 82,500 $ 54,582 $ 27,918 $ 140,700 $ 120,957 $ 19,743 |
Future Amortization Expense | The future amortization expense for existing intangible assets as of January 31, 2022, based on their current useful lives, is as follows (in thousands): Fiscal year ending July 31, 2022 (remainder of fiscal year) $ 6,557 2023 6,888 2024 5,468 2025 5,026 2026 3,572 Thereafter 407 Total $ 27,918 |
Other Assets | Other assets consist of the following (in thousands): January 31, 2022 July 31, 2021 Prepaid expenses $ 2,759 $ 3,276 Contract costs 29,331 28,870 Deferred costs 1,664 2,777 Strategic equity investments 14,077 3,556 Other 4,976 — Other assets $ 52,807 $ 38,479 |
Accrued Employee Compensation | Accrued Employee Compensation Accrued employee compensation consists of the following (in thousands): January 31, 2022 July 31, 2021 Bonus $ 24,898 $ 48,414 Commission 4,047 11,271 Vacation * 5,027 23,803 Salaries, payroll taxes, and benefits 19,544 18,649 Accrued employee compensation $ 53,516 $ 102,137 *In the first quarter of fiscal year 2022, the Company paid out accrued vacation for employees in certain countries upon adopting a non-accrued vacation policy effective September 1, 2021. |
Other Current Liabilities | Other current liabilities consist of the following (in thousands): January 31, 2022 July 31, 2021 Lease liabilities $ 11,239 $ 11,624 Accrued royalties 9,239 7,525 Accrued taxes 3,727 6,796 Other 5,535 5,703 Other current liabilities $ 29,740 $ 31,648 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Company's basic and diluted earnings per share | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands except share and per share amounts): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Numerator: Net income (loss) $ (40,681) $ (8,652) $ (91,957) $ (28,842) Net income (loss) per share: Basic $ (0.49) $ (0.10) $ (1.10) $ (0.34) Diluted $ (0.49) $ (0.10) $ (1.10) $ (0.34) Denominator: Weighted average shares used in computing net income (loss) per share: Basic and diluted 83,413,643 83,830,624 83,430,693 83,737,889 |
Schedule of Antidilutive Securities excluded from EPS | The following weighted average shares of potential common stock were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive: Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Stock options 20,216 35,724 22,458 48,598 Stock awards 3,268,003 3,020,497 3,126,378 2,899,553 Convertible senior notes — 209,722 66,834 104,861 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of convertible debt | The net carrying value of the liability component, unamortized debt discount and unamortized debt issuance costs of the Convertible Senior Notes was as follows (in thousands): January 31, 2022 July 31, 2021 Principal $ 400,000 $ 400,000 Less unamortized: Debt discount 43,807 50,198 Debt issuance costs 5,272 5,977 Net carrying amount $ 350,921 $ 343,825 The effective interest rate of the Convertible Senior Notes is 5.53%. The following table sets forth the interest expense recognized related to the Convertible Senior Notes (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Contractual interest expense $ 1,250 $ 1,250 $ 2,500 $ 2,500 Amortization of debt discount 3,215 3,057 6,391 6,077 Amortization of debt issuance costs 357 322 705 637 Total $ 4,822 $ 4,629 $ 9,596 $ 9,214 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Cost | Components of operating lease costs were as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Operating lease cost 1 $ 3,933 $ 4,500 $ 8,185 $ 8,872 Variable lease cost 1,442 1,165 2,850 2,531 Sublease income (356) (397) (746) (792) Net operating lease cost $ 5,019 $ 5,268 $ 10,289 $ 10,611 |
Future Operating Lease Payments | Future operating lease payments as of January 31, 2022 were as follows (in thousands): Fiscal Year Ending July 31, 2022 (remainder of fiscal year) $ 7,445 2023 16,711 2024 16,615 2025 16,857 2026 17,006 Thereafter 67,609 Total future lease payments 142,243 Less imputed interest (22,063) Total lease liability balance $ 120,180 |
Supplemental Lease Information | Supplemental information related to leases was as follows (in thousands, except for lease term and discount rate): January 31, 2022 July 31, 2021 Operating lease assets $ 91,780 $ 97,447 Current portion of lease liabilities $ 11,239 $ 11,624 Non-current portion of lease liabilities 108,941 115,374 Total lease liabilities $ 120,180 $ 126,998 Weighted average remaining lease term (years) 8.30 8.74 Weighted average discount rate 4.10 % 4.20 % |
Supplemental Cash And Non-Cash Information | Supplemental cash and non-cash information related to operating leases was as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Cash payments for operating leases $ 4,411 $ 4,082 $ 10,345 $ 9,367 Operating lease assets obtained in exchange for lease liabilities $ 18 $ (2,703) $ 433 $ 6,514 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense and Shareholders' Equity (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Stockholders' Equity and Stock-based Compensation [Abstract] | |
Stock-based compensation expense | Stock-based compensation expense related to stock options and Stock Awards is included in the Company’s condensed consolidated statements of operations as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2022 2021 2022 2021 Stock-based compensation expense $ 38,147 $ 30,209 $ 70,680 $ 58,603 Net impact of deferred stock-based compensation (282) (313) (575) (623) Total stock-based compensation expense, net $ 37,865 $ 29,896 $ 70,105 $ 57,980 Stock-based compensation expense is included in the following categories: Cost of subscription and support revenue $ 3,773 $ 2,954 $ 7,121 $ 5,556 Cost of license revenue 189 145 371 396 Cost of services revenue 6,081 5,578 11,718 11,121 Research and development 9,433 7,604 18,047 14,851 Sales and marketing 10,825 6,806 18,314 12,783 General and administrative 7,564 6,809 14,534 13,273 Total stock-based compensation expense $ 37,865 $ 29,896 $ 70,105 $ 57,980 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the Company’s Stock Awards activity under the Company’s equity incentive plans is as follows: Stock Awards Outstanding Number of Stock Awards Outstanding Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) (1) Balance as of July 31, 2021 2,394,968 $ 107.15 $ 275,900 Granted 1,609,375 $ 119.61 Released (665,640) $ 104.90 $ 76,912 Canceled (203,385) $ 110.53 Balance as of January 31, 2022 3,135,318 $ 113.80 $ 316,165 Expected to vest as of January 31, 2022 3,135,318 $ 113.80 $ 316,165 (1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $100.84 and $115.20 on January 31, 2022 and July 31, 2021, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards 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: Stock Options Outstanding Number of Stock Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (1) (in years) (in thousands) Balance as of July 31, 2021 25,278 $ 17.39 5.0 $ 2,472 Granted — Exercised (8,748) $ 11.12 $ 900 Canceled — Balance at January 31, 2022 16,530 $ 20.72 3.7 $ 1,324 Vested and expected to vest as of January 31, 2022 16,530 $ 20.72 3.7 $ 1,324 Exercisable as of January 31, 2022 16,530 $ 20.72 3.7 $ 1,324 (1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock price of $100.84 and $115.20 on January 31, 2022 and July 31, 2021, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. |
Common Stock Reserved for Issuance | As of January 31, 2022 and July 31, 2021, the Company had reserved shares of common stock for future issuance as follows: January 31, 2022 July 31, 2021 Exercise of stock options to purchase common stock 16,530 25,278 Vesting of stock awards 3,135,318 2,394,968 Shares available under stock plans 3,608,079 5,014,069 Total common stock reserved for issuance 6,759,927 7,434,315 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
Property and equipment, net by geographic region | The Company’s long-lived assets by geographic region is as follows (in thousands): January 31, 2022 July 31, 2021 Americas $ 137,759 $ 143,736 EMEA 34,553 32,171 APAC 1,160 1,601 Total $ 173,472 $ 177,508 |
The Company and Summary of Si_4
The Company and Summary of Significant Accounting Policies and Estimates (Property and Equipment Useful Lives) (Details) | 6 Months Ended |
Jan. 31, 2022 | |
Minimum | Software development | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Maximum | Software development | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Computer hardware | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Purchased software | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Equipment and machinery | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Equipment and machinery | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
The Company and Summary of Si_5
The Company and Summary of Significant Accounting Policies and Estimates (Details Textual) | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2022customer | Jan. 31, 2022customer | Mar. 31, 2018USD ($) | |
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||
Revenue, performance obligations, timing | Subscriptions are typically sold with a three to five year initial term with a customer option to renew on an annual basis after the initial term. Term licenses generally have a two-year initial term with a customer option to renew on an annual basis after the initial term. In certain circumstances, the Company will enter into term licenses with an initial term of more than two years or a renewal period longer than one year. Support for term licenses follows the same contract periods. Professional services typically are time and materials contracts that last for an average period of approximately one year. | ||
Capitalized contract cost, amortization period | 5 years | 5 years | |
Customer Concentration Risk | Revenue Benchmark | Customer One | |||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||
Number of customers, concentration of credit risk | 0 | 0 | |
Percentage of revenue threshold | 10.00% | 10.00% | |
Customer Concentration Risk | Accounts Receivable | Customer One | |||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||
Number of customers, concentration of credit risk | 0 | ||
Percentage of accounts receivable | 10.00% | 10.00% | |
Restricted Stock Units (RSUs) | |||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||
Period of time based Vesting | 4 years | ||
TSR PSUs | |||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | |||
Period of time based Vesting | 3 years | 3 years | |
Senior Notes | Convertible Senior Notes, 1.250% | |||
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate principal amount | $ | $ 400,000,000 | ||
Stated interest rate | 1.25% | ||
Minimum | Computer software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Remaining Weighted-Average Useful Life (in years) | 3 years | ||
Maximum | Computer software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Remaining Weighted-Average Useful Life (in years) | 5 years |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 204,633 | $ 180,062 | $ 370,567 | $ 349,864 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 125,631 | 107,598 | 229,770 | 219,948 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 25,624 | 19,121 | 45,736 | 38,153 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,761 | 2,817 | 3,745 | 6,011 |
Total Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 153,016 | 129,536 | 279,251 | 264,112 |
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,279 | 8,947 | 21,538 | 20,591 |
Other EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 19,070 | 22,667 | 32,089 | 35,568 |
Total EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 31,349 | 31,614 | 53,627 | 56,159 |
Total APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 20,268 | 18,912 | 37,689 | 29,593 |
Subscription and support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 84,297 | 59,563 | 163,287 | 117,529 |
Subscription and support | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 55,718 | 39,865 | 108,741 | 78,878 |
Subscription and support | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 14,037 | 7,862 | 25,978 | 15,004 |
Subscription and support | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,046 | 1,112 | 2,085 | 2,225 |
Subscription and support | Total Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 70,801 | 48,839 | 136,804 | 96,107 |
Subscription and support | United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,417 | 1,650 | 4,750 | 3,680 |
Subscription and support | Other EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,381 | 4,694 | 10,598 | 9,814 |
Subscription and support | Total EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,798 | 6,344 | 15,348 | 13,494 |
Subscription and support | Total APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,698 | 4,380 | 11,135 | 7,928 |
Subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 62,871 | 38,278 | 120,000 | 75,508 |
Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 21,426 | 21,285 | 43,287 | 42,021 |
License | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 69,798 | 77,912 | 109,951 | 143,195 |
License | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 38,133 | 39,438 | 56,586 | 80,415 |
License | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,700 | 8,606 | 10,513 | 19,359 |
License | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 188 | 237 | 423 |
License | Total Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 42,833 | 48,232 | 67,336 | 100,197 |
License | United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 8,944 | 6,449 | 14,776 | 14,748 |
License | Other EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,686 | 11,282 | 8,093 | 12,085 |
License | Total EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,630 | 17,731 | 22,869 | 26,833 |
License | Total APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,335 | 11,949 | 19,746 | 16,165 |
Term license | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 69,750 | 77,864 | 109,855 | 143,089 |
Perpetual license | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 48 | 48 | 96 | 106 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 50,538 | 42,587 | 97,329 | 89,140 |
Services | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 31,780 | 28,295 | 64,443 | 60,655 |
Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,887 | 2,653 | 9,245 | 3,790 |
Services | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 715 | 1,517 | 1,423 | 3,363 |
Services | Total Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 39,382 | 32,465 | 75,111 | 67,808 |
Services | United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 918 | 848 | 2,012 | 2,163 |
Services | Other EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,003 | 6,691 | 13,398 | 13,669 |
Services | Total EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,921 | 7,539 | 15,410 | 15,832 |
Services | Total APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 3,235 | $ 2,583 | $ 6,808 | $ 5,500 |
Revenue (Contract with Customer
Revenue (Contract with Customer) (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled accounts receivable, net | $ 103,983 | $ 103,422 |
Contract costs, net | 44,048 | 42,235 |
Deferred revenue, net | $ 128,886 | $ 145,936 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | ||
Contract costs, current | 14,717,000 | 14,717,000 | 13,365,000 | ||
Contract costs, noncurrent | 29,331,000 | 29,331,000 | $ 28,870,000 | ||
Amortization of contract costs | 3,300,000 | $ 3,100,000 | 6,310,000 | $ 5,355,000 | |
Contract with customer, liability, revenue recognized | 39,000,000 | 107,000,000 | |||
Remaining performance obligation, amount | $ 908,000,000 | $ 908,000,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 993,382 | $ 1,201,932 |
Unrealized Gains | 156 | 739 |
Unrealized Losses | (3,029) | (47) |
Estimated Fair Value | 990,509 | 1,202,624 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 241,734 | 389,837 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 241,734 | 389,837 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 381,914 | 371,374 |
Unrealized Gains | 139 | 623 |
Unrealized Losses | (1,807) | (37) |
Estimated Fair Value | 380,246 | 371,960 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 63,051 | 82,250 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 63,051 | 82,250 |
U.S. Government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 75,301 | 64,401 |
Unrealized Gains | 17 | 62 |
Unrealized Losses | (607) | (1) |
Estimated Fair Value | 74,711 | 64,462 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 106,208 | 125,118 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 106,208 | 125,118 |
U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 32,639 | 85,165 |
Unrealized Gains | 0 | 15 |
Unrealized Losses | (228) | 0 |
Estimated Fair Value | 32,411 | 85,180 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 55,924 | 47,925 |
Unrealized Gains | 0 | 29 |
Unrealized Losses | (211) | (7) |
Estimated Fair Value | 55,713 | 47,947 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 35,406 | 33,177 |
Unrealized Gains | 0 | 10 |
Unrealized Losses | (175) | (2) |
Estimated Fair Value | 35,231 | 33,185 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 205 | 1,685 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | 0 |
Estimated Fair Value | 204 | 1,685 |
Strategic convertible debt investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 1,000 | 1,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 1,000 | $ 1,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 2) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | $ 696,972 | |
12 Months or Greater | 293,537 | |
Total | 990,509 | $ 1,202,624 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 239,234 | |
12 Months or Greater | 2,500 | |
Total | 241,734 | 389,837 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 207,859 | |
12 Months or Greater | 172,387 | |
Total | 380,246 | 371,960 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 62,051 | |
12 Months or Greater | 1,000 | |
Total | 63,051 | 82,250 |
U.S. Government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 46,878 | |
12 Months or Greater | 27,833 | |
Total | 74,711 | 64,462 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 106,208 | |
12 Months or Greater | 0 | |
Total | 106,208 | 125,118 |
U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 4,999 | |
12 Months or Greater | 27,412 | |
Total | 32,411 | 85,180 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 3,670 | |
12 Months or Greater | 52,043 | |
Total | 55,713 | 47,947 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 24,869 | |
12 Months or Greater | 10,362 | |
Total | 35,231 | 33,185 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 204 | |
12 Months or Greater | 0 | |
Total | 204 | 1,685 |
Strategic convertible debt investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 1,000 | |
12 Months or Greater | 0 | |
Total | $ 1,000 | $ 1,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 134,219 | $ 240,943 |
Total short-term investments | 562,753 | 734,518 |
Total long-term investments | 293,537 | 227,163 |
Total | 990,509 | 1,202,624 |
Senior Notes | Convertible Senior Notes, 1.250% | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | 434,300 | 452,000 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 106,208 | 125,118 |
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Total | 106,208 | 125,118 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 28,011 | 115,825 |
Total short-term investments | 561,753 | 733,518 |
Total long-term investments | 293,537 | 227,163 |
Total | 883,301 | 1,076,506 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total short-term investments | 1,000 | 1,000 |
Total long-term investments | 0 | 0 |
Total | 1,000 | 1,000 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 28,011 | 115,825 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 28,011 | 115,825 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 106,208 | 125,118 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 106,208 | 125,118 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 211,223 | 274,012 |
Total long-term investments | 2,500 | |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 211,223 | 274,012 |
Total long-term investments | 2,500 | |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 207,859 | 225,384 |
Total long-term investments | 172,387 | 146,576 |
Corporate bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Corporate bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 207,859 | 225,384 |
Total long-term investments | 172,387 | 146,576 |
Corporate bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 62,051 | 80,750 |
Total long-term investments | 1,000 | 1,500 |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 62,051 | 80,750 |
Total long-term investments | 1,000 | 1,500 |
Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
U.S. Government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 46,878 | 45,320 |
Total long-term investments | 27,833 | 19,142 |
U.S. Government bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
U.S. Government bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 46,878 | 45,320 |
Total long-term investments | 27,833 | 19,142 |
U.S. Government bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 4,999 | 69,183 |
Total long-term investments | 27,412 | 15,997 |
U.S. Government agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
U.S. Government agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 4,999 | 69,183 |
Total long-term investments | 27,412 | 15,997 |
U.S. Government agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 3,670 | 9,036 |
Total long-term investments | 52,043 | 38,911 |
Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 3,670 | 9,036 |
Total long-term investments | 52,043 | 38,911 |
Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 24,869 | 28,353 |
Total long-term investments | 10,362 | 4,832 |
Foreign government bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Foreign government bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 24,869 | 28,353 |
Total long-term investments | 10,362 | 4,832 |
Foreign government bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 204 | 1,480 |
Total long-term investments | 205 | |
Municipal bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | |
Municipal bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 204 | 1,480 |
Total long-term investments | 205 | |
Municipal bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | |
Strategic convertible debt investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,000 | 1,000 |
Strategic convertible debt investment | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Strategic convertible debt investment | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Strategic convertible debt investment | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | $ 1,000 | $ 1,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Aug. 18, 2021 | Jan. 31, 2022 | Jul. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 372,062 | $ 340,877 | |
HazardHub, Inc. | |||
Business Acquisition [Line Items] | |||
Net cash consideration | $ 53,000 | ||
Acquisition consideration holdback | 8,300 | ||
Goodwill | 31,185 | ||
HazardHub, Inc. | Prepaid Expenses and Other Current Assets | |||
Business Acquisition [Line Items] | |||
Acquisition consideration holdback | 3,300 | ||
HazardHub, Inc. | Other Noncurrent Assets | |||
Business Acquisition [Line Items] | |||
Acquisition consideration holdback | $ 5,000 |
Acquisitions - Preliminary Allo
Acquisitions - Preliminary Allocation (Details) - USD ($) $ in Thousands | Aug. 18, 2021 | Jan. 31, 2022 | Jul. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 372,062 | $ 340,877 | |
HazardHub, Inc. | |||
Business Acquisition [Line Items] | |||
Acquired assets, net of assumed liabilities | $ 461 | ||
Goodwill | 31,185 | ||
Deferred tax liability | (2,839) | ||
Total preliminary purchase consideration | 44,507 | ||
HazardHub, Inc. | Acquired technology | |||
Business Acquisition [Line Items] | |||
Finite lived assets acquired | $ 9,700 | ||
Estimated Useful Lives | 5 years | ||
HazardHub, Inc. | Customer relationships | |||
Business Acquisition [Line Items] | |||
Finite lived assets acquired | $ 5,100 | ||
Estimated Useful Lives | 5 years | ||
HazardHub, Inc. | Trademarks | |||
Business Acquisition [Line Items] | |||
Finite lived assets acquired | $ 900 | ||
Estimated Useful Lives | 7 years |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2022 | Jul. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 112,281 | $ 105,125 |
Allowance for credit losses and revenue reserves | (576) | (1,057) |
Accounts receivable, net | 111,705 | $ 104,068 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance as of July 31, 2021 | 1,057 | |
Net changes to credit losses | 0 | |
Net changes to revenue reserves | (154) | |
Write-offs, net | (327) | |
Balance as of January 31, 2022 | $ 576 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 21,319 | $ 20,330 |
Contract costs | 14,717 | 13,365 |
Deferred costs | 9,910 | 9,247 |
Other | 15,477 | 9,787 |
Prepaid expenses and other current assets | $ 61,423 | $ 52,729 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Computer hardware | $ 14,009 | $ 19,256 |
Purchased software | 5,484 | 6,002 |
Capitalized software development costs | 30,881 | 24,025 |
Equipment and machinery | 8,654 | 12,214 |
Furniture and fixtures | 11,453 | 11,482 |
Leasehold improvements | 59,686 | 57,960 |
Total property and equipment | 130,167 | 130,939 |
Less accumulated depreciation | (48,475) | (50,878) |
Property and equipment, net | $ 81,692 | $ 80,061 |
Balance Sheet Components (Detai
Balance Sheet Components (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Jul. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |||||
Property and equipment pledged as collateral | $ 0 | $ 0 | $ 0 | ||
Depreciation | 3,500,000 | $ 3,500,000 | 7,200,000 | $ 7,200,000 | |
Amortization | 1,500,000 | 700,000 | 2,700,000 | 1,400,000 | |
Amortization expense | 3,800,000 | $ 6,300,000 | 7,500,000 | 12,600,000 | |
New strategic investments | $ 10,500,000 | $ 10,521,000 | $ 2,000,000 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill (Details) $ in Thousands | 6 Months Ended |
Jan. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, July 31, 2021 | $ 340,877 |
Addition — HazardHub acquisition | 31,185 |
Goodwill, January 31, 2022 | $ 372,062 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2022 | Jul. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 82,500 | $ 140,700 |
Accumulated Amortization | 54,582 | 120,957 |
Net Book Value | 27,918 | 19,743 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 38,100 | 93,600 |
Accumulated Amortization | 25,016 | 86,367 |
Net Book Value | 13,084 | 7,233 |
Customer contracts and related relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 40,800 | 35,700 |
Accumulated Amortization | 27,860 | 24,432 |
Net Book Value | 12,940 | 11,268 |
Partner relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 200 | 200 |
Accumulated Amortization | 130 | 119 |
Net Book Value | 70 | 81 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,400 | 2,500 |
Accumulated Amortization | 1,576 | 1,339 |
Net Book Value | $ 1,824 | $ 1,161 |
Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted-Average Useful Life (in years) | 3 years 7 months 6 days | |
Weighted Average | Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted-Average Useful Life (in years) | 3 years 3 months 18 days | |
Weighted Average | Customer contracts and related relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted-Average Useful Life (in years) | 3 years 8 months 12 days | |
Weighted Average | Partner relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted-Average Useful Life (in years) | 3 years 2 months 12 days | |
Weighted Average | Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining Weighted-Average Useful Life (in years) | 4 years 6 months |
Balance Sheet Components - Futu
Balance Sheet Components - Future Amortization (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
2022 (remainder of fiscal year) | $ 6,557 | |
2023 | 6,888 | |
2024 | 5,468 | |
2025 | 5,026 | |
2026 | 3,572 | |
Thereafter | 407 | |
Net Book Value | $ 27,918 | $ 19,743 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 2,759 | $ 3,276 |
Contract costs | 29,331 | 28,870 |
Deferred costs | 1,664 | 2,777 |
Strategic equity investments | 14,077 | 3,556 |
Other | 4,976 | 0 |
Other assets | $ 52,807 | $ 38,479 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Employee Compensation (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Bonus | $ 24,898 | $ 48,414 |
Commission | 4,047 | 11,271 |
Vacation | 5,027 | 23,803 |
Salaries, payroll taxes, and benefits | 19,544 | 18,649 |
Accrued employee compensation | $ 53,516 | $ 102,137 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Lease liabilities | $ 11,239 | $ 11,624 |
Accrued royalties | 9,239 | 7,525 |
Accrued taxes | 3,727 | 6,796 |
Other | 5,535 | 5,703 |
Other current liabilities | $ 29,740 | $ 31,648 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2022 | Jan. 31, 2021 | |
Numerator: | ||||||
Net income (loss) | $ (40,681) | $ (51,276) | $ (8,652) | $ (20,190) | $ (91,957) | $ (28,842) |
Net income (loss) per share: | ||||||
Basic (in dollars per share) | $ (0.49) | $ (0.10) | $ (1.10) | $ (0.34) | ||
Diluted (in dollars per share) | $ (0.49) | $ (0.10) | $ (1.10) | $ (0.34) | ||
Weighted average shares used in computing net income (loss) per share: | ||||||
Basic (in shares) | 83,413,643 | 83,830,624 | 83,430,693 | 83,737,889 | ||
Diluted (in shares) | 83,413,643 | 83,830,624 | 83,430,693 | 83,737,889 |
Net Income (Loss) Per Share (_2
Net Income (Loss) Per Share (Details 2) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Senior Notes | Convertible Debt | On or after October 15, 2024 | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Conversion price (in dollars per share) | $ 113.75 | $ 113.75 | ||
Stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS (in shares) | 20,216 | 22,458 | 35,724 | 48,598 |
Stock awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS (in shares) | 3,268,003 | 3,126,378 | 3,020,497 | 2,899,553 |
Convertible senior notes | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS (in shares) | 0 | 66,834 | 209,722 | 104,861 |
Convertible Senior Notes (Detai
Convertible Senior Notes (Details) - Senior Notes - Convertible Debt $ / shares in Units, $ in Thousands | 1 Months Ended | ||
Mar. 31, 2018USD ($)dayshares | Jan. 31, 2022USD ($)$ / shares | Jul. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 400,000 | $ 400,000 | |
Stated interest rate | 1.25% | ||
Net proceeds | $ 387,200 | ||
On or after October 15, 2024 | |||
Debt Instrument [Line Items] | |||
Number of shares issuable per 1,000 principal converted (in shares) | shares | 8.7912 | ||
Conversion price (in dollars per share) | $ / shares | $ 113.75 | ||
On or after March 20, 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption, percent | 100.00% | ||
Threshold percentage of stock price trigger | 130.00% | ||
Threshold trading days | day | 20 | ||
Conversion notice period | 30 days |
Convertible Senior Notes - Net
Convertible Senior Notes - Net carrying value of the liability component (Details) - Senior Notes - Convertible Debt - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal | $ 400,000 | $ 400,000 |
Debt discount | 43,807 | 50,198 |
Debt issuance costs | 5,272 | 5,977 |
Net carrying amount | $ 350,921 | $ 343,825 |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of interest expense recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 4,833 | $ 4,651 | $ 9,627 | $ 9,271 |
Senior Notes | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 1,250 | 1,250 | 2,500 | 2,500 |
Amortization of debt discount | 3,215 | 3,057 | 6,391 | 6,077 |
Amortization of debt issuance costs | 357 | 322 | 705 | 637 |
Total | $ 4,822 | $ 4,629 | $ 9,596 | $ 9,214 |
Effective interest rate | 5.53% | 5.53% |
Convertible Senior Notes - Capp
Convertible Senior Notes - Capped Call (Details) - Capped Call shares in Millions, $ in Millions | Mar. 31, 2018USD ($)$ / Unitshares |
Derivative [Line Items] | |
Derivative amount | $ | $ 37.2 |
Strike price (in usd per share) | 113.75 |
Derivative, cap price (in usd per share) | 153.13 |
Derivative, number of shares covered (in shares) | shares | 3.5 |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 3,933 | $ 4,500 | $ 8,185 | $ 8,872 |
Variable lease cost | 1,442 | 1,165 | 2,850 | 2,531 |
Sublease income | (356) | (397) | (746) | (792) |
Net operating lease cost | 5,019 | 5,268 | 10,289 | 10,611 |
Lease expense for leases with initial term of 12 months or less | $ 300 | $ 300 | $ 500 | $ 600 |
Leases (Future Operating Lease
Leases (Future Operating Lease Payments) (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 (remainder of fiscal year) | $ 7,445 | |
2023 | 16,711 | |
2024 | 16,615 | |
2025 | 16,857 | |
2026 | 17,006 | |
Thereafter | 67,609 | |
Total future lease payments | 142,243 | |
Less imputed interest | (22,063) | |
Total lease liability balance | $ 120,180 | $ 126,998 |
Leases (Supplemental Lease Info
Leases (Supplemental Lease Information) (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jul. 31, 2021 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease assets | $ 91,780 | $ 97,447 |
Current portion of lease liabilities | 11,239 | 11,624 |
Non-current portion of lease liabilities | 108,941 | 115,374 |
Total lease liabilities | $ 120,180 | $ 126,998 |
Weighted average remaining lease term (years) | 8 years 3 months 18 days | 8 years 8 months 26 days |
Weighted average discount rate | 4.10% | 4.20% |
Leases (Supplemental Cash and N
Leases (Supplemental Cash and Non-Cash Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2020 | |
Leases [Abstract] | ||||
Cash payments for operating leases | $ 4,411 | $ 4,082 | $ 10,345 | $ 9,367 |
Operating lease assets obtained in exchange for lease liabilities | $ 18 | $ (2,703) | $ 433 | $ 6,514 |
Leases (Textual) (Details)
Leases (Textual) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Dec. 31, 2020 | Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | |||
Decrease in operating lease assets | $ 2,900 | $ 5,667 | $ 91 |
Decrease in operating lease liabilities | $ 2,900 | $ 6,817 | $ (2,669) |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) | Jan. 31, 2022USD ($)customer | Jul. 31, 2021USD ($)customer |
Commitments and Contingencies Disclosure [Abstract] | ||
Reimbursement | $ | $ 0 | $ 0 |
Claims outstanding | customer | 0 | 0 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense and Shareholders' Equity (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 38,147 | $ 30,209 | $ 70,680 | $ 58,603 |
Net impact of deferred stock-based compensation | (282) | (313) | (575) | (623) |
Total stock-based compensation expense, net | 37,865 | 29,896 | 70,105 | 57,980 |
Total stock-based compensation expense | 37,865 | 29,896 | 70,105 | 57,980 |
Unrecognized stock-based compensation expense | 321,900 | $ 321,900 | ||
Unrecognized stock-based compensation expense, period for recognition | 2 years 8 months 12 days | |||
Cost of subscription and support revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 3,773 | 2,954 | $ 7,121 | 5,556 |
Cost of license revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 189 | 145 | 371 | 396 |
Cost of services revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 6,081 | 5,578 | 11,718 | 11,121 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 9,433 | 7,604 | 18,047 | 14,851 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 10,825 | 6,806 | 18,314 | 12,783 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 7,564 | $ 6,809 | $ 14,534 | $ 13,273 |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense and Shareholders' Equity (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Oct. 31, 2021 | Jan. 31, 2022 | Jul. 31, 2021 | |
Number of Stock Awards Outstanding | |||
Balance at beginning of period (in shares) | 2,394,968 | 2,394,968 | |
Balance at end of period (in shares) | 3,135,318 | ||
Weighted Average Grant Date Fair Value | |||
Share price (in dollars per share) | $ 100.84 | $ 115.20 | |
Number of Stock Options Outstanding | |||
Balance at beginning of period (in shares) | 25,278 | 25,278 | |
Balance at end of period (in shares) | 16,530 | ||
Stock awards | |||
Number of Stock Awards Outstanding | |||
Balance at beginning of period (in shares) | 2,394,968 | 2,394,968 | |
Granted (in shares) | 1,609,375 | ||
Released (in shares) | (665,640) | ||
Canceled (in shares) | (203,385) | ||
Balance at end of period (in shares) | 3,135,318 | ||
Expected to vest (in shares) | 3,135,318 | ||
Weighted Average Grant Date Fair Value | |||
Balance at beginning of period (in dollars per share) | $ 107.15 | $ 107.15 | |
Granted (in dollars per share) | 119.61 | ||
Released (in dollars per share) | 104.90 | ||
Canceled (in dollars per share) | 110.53 | ||
Balance at end of period (in dollars per share) | 113.80 | ||
Expected to vest (in dollars per share) | $ 113.80 | ||
Aggregate intrinsic value, Nonvested | $ 316,165 | $ 275,900 | |
Aggregate intrinsic value, released | 76,912 | ||
Aggregate intrinsic value, Expected to vest | $ 316,165 | ||
Stock options | |||
Number of Stock Options Outstanding | |||
Balance at beginning of period (in shares) | 25,278 | 25,278 | |
Granted (in shares) | 0 | ||
Exercised (in shares) | (8,748) | ||
Canceled (in shares) | 0 | ||
Balance at end of period (in shares) | 16,530 | ||
Vested and expected to vest (in shares) | 16,530 | ||
Exercisable (in shares) | 16,530 | ||
Weighted Average Exercise Price | |||
Balance at beginning of period (in dollars per share) | $ 17.39 | $ 17.39 | |
Exercised (in dollars per share) | 11.12 | ||
Balance at end of period (in dollars per share) | 20.72 | ||
Vested and expected to vest (in dollars per share) | 20.72 | ||
Exercisable (in dollars per share) | $ 20.72 | ||
Weighted Average Remaining Contractual Life | |||
Outstanding, weighted average remaining contractual life | 5 years | 3 years 8 months 12 days | |
Vested and expected to vest, weighted average remaining contractual life | 3 years 8 months 12 days | ||
Exercisable, weighted average remaining contractual life | 3 years 8 months 12 days | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value | $ 1,324 | $ 2,472 | |
Exercised | 900 | ||
Vested and expected to vest | 1,324 | ||
Exercisable | $ 1,324 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense and Shareholders' Equity (Details 4) - shares | Jan. 31, 2022 | Jul. 31, 2021 |
Stockholders' Equity and Stock-based Compensation [Abstract] | ||
Exercise of stock options to purchase common stock (in shares) | 16,530 | 25,278 |
Vesting of restricted stock units (in shares) | 3,135,318 | 2,394,968 |
Shares available under stock plans (in shares) | 3,608,079 | 5,014,069 |
Total common stock reserved for issuance (in shares) | 6,759,927 | 7,434,315 |
Stock-Based Compensation Expe_6
Stock-Based Compensation Expense and Shareholders' Equity (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Jul. 31, 2021 | Dec. 15, 2020 | Oct. 20, 2020 | |
Class of Stock [Line Items] | |||||||
Share-based compensation expense | $ 3,500,000 | $ 3,700,000 | $ 7,500,000 | $ 7,000,000 | |||
Stockholders Equity and Stock Based Compensation (Additional Textual) [Abstract] | |||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Shares issued (in shares) | 83,546,000 | 83,546,000 | 83,194,157 | ||||
Shares outstanding (in shares) | 83,546,000 | 83,546,000 | 83,194,157 | ||||
Total common stock reserved for issuance (in shares) | 6,759,927 | 6,759,927 | 7,434,315 | ||||
Authorized repurchase amount | $ 200,000,000 | ||||||
Shares repurchased (in shares) | 96,373 | 322,545 | |||||
Average price per share (in dollars per share) | $ 116.09 | $ 116.11 | |||||
Aggregate purchase price | $ 11,200,000 | $ 37,500,000 | |||||
Equity Incentive Plan | |||||||
Stockholders Equity and Stock Based Compensation (Additional Textual) [Abstract] | |||||||
Total common stock reserved for issuance (in shares) | 5,000,000 | ||||||
PSUs | |||||||
Class of Stock [Line Items] | |||||||
Period of time based Vesting | 3 years | ||||||
PSUs | Tranche One | |||||||
Class of Stock [Line Items] | |||||||
Award vesting percentage | 50.00% | ||||||
PSUs | Tranche two | |||||||
Class of Stock [Line Items] | |||||||
Award vesting percentage | 50.00% | ||||||
TSR PSUs | |||||||
Class of Stock [Line Items] | |||||||
Period of time based Vesting | 3 years | 3 years |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ (10,955) | $ (14,249) | $ (27,993) | $ (24,926) |
Effective income tax rate, continuing operations | 21.00% | 23.00% | ||
Increase (decrease) in unrecognized tax benefits | $ 400 | $ 900 | ||
Unrecognized tax benefits that would impact tax rate | $ 11,600 | $ 11,600 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Jan. 31, 2022USD ($)segment | Jul. 31, 2021USD ($) | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Number of operating segments | segment | 1 | |
Long-lived asset, including intangibles and goodwill | ||
Total | $ 173,472 | $ 177,508 |
Americas | ||
Long-lived asset, including intangibles and goodwill | ||
Total | 137,759 | 143,736 |
EMEA | ||
Long-lived asset, including intangibles and goodwill | ||
Total | 34,553 | 32,171 |
APAC | ||
Long-lived asset, including intangibles and goodwill | ||
Total | $ 1,160 | $ 1,601 |