Cover Page
Cover Page - shares | 6 Months Ended | |
Jan. 31, 2023 | Feb. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2023 | |
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, $0.0001 par value | |
Trading Symbol | GWRE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 81,566,719 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001528396 | |
Current Fiscal Year End Date | --07-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 274,899 | $ 606,303 |
Short-term investments | 439,833 | 369,865 |
Accounts receivable, net of allowances of $31 and $359, respectively | 127,627 | 143,797 |
Unbilled accounts receivable, net | 100,313 | 71,515 |
Prepaid expenses and other current assets | 63,591 | 61,223 |
Total current assets | 1,006,263 | 1,252,703 |
Long-term investments | 155,306 | 187,507 |
Unbilled accounts receivable, net | 14,576 | 13,914 |
Property and equipment, net | 78,544 | 80,740 |
Operating lease assets | 85,479 | 90,287 |
Intangible assets, net | 17,207 | 21,361 |
Goodwill | 372,214 | 372,192 |
Deferred tax assets, net | 218,308 | 191,461 |
Other assets | 56,050 | 56,732 |
TOTAL ASSETS | 2,003,947 | 2,266,897 |
CURRENT LIABILITIES: | ||
Accounts payable | 38,025 | 40,440 |
Accrued employee compensation | 58,064 | 90,962 |
Deferred revenue, net | 145,963 | 170,776 |
Other current liabilities | 33,157 | 35,340 |
Total current liabilities | 275,209 | 337,518 |
Lease liabilities | 99,045 | 105,123 |
Convertible senior notes, net | 396,316 | 358,216 |
Deferred revenue, net | 6,022 | 7,500 |
Other liabilities | 7,183 | 6,883 |
Total liabilities | 783,775 | 815,240 |
STOCKHOLDERS’ EQUITY: | ||
Common stock | 8 | 8 |
Additional paid-in capital | 1,719,020 | 1,755,476 |
Accumulated other comprehensive income (loss) | (16,061) | (19,845) |
Retained earnings (accumulated deficit) | (482,795) | (283,982) |
Total stockholders’ equity | 1,220,172 | 1,451,657 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,003,947 | $ 2,266,897 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 31 | $ 359 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenue: | ||||
Total revenue | $ 232,611 | $ 204,633 | $ 427,893 | $ 370,567 |
Cost of revenue: | ||||
Total cost of revenue | 109,148 | 102,442 | 232,278 | 199,982 |
Gross profit: | ||||
Total gross profit | 123,463 | 102,191 | 195,615 | 170,585 |
Operating expenses: | ||||
Research and development | 61,702 | 55,804 | 119,872 | 110,928 |
Sales and marketing | 44,781 | 48,507 | 91,249 | 89,512 |
General and administrative | 40,196 | 37,337 | 82,263 | 74,979 |
Total operating expenses | 146,679 | 141,648 | 293,384 | 275,419 |
Income (loss) from operations | (23,216) | (39,457) | (97,769) | (104,834) |
Interest income | 5,392 | 699 | 10,030 | 1,373 |
Interest expense | (1,677) | (4,833) | (3,351) | (9,627) |
Other income (expense), net | 11,291 | (8,045) | (2,533) | (6,862) |
Income (loss) before provision for (benefit from) income taxes | (8,210) | (51,636) | (93,623) | (119,950) |
Provision for (benefit from) income taxes | 979 | (10,955) | (15,116) | (27,993) |
Net income (loss) | $ (9,189) | $ (40,681) | $ (78,507) | $ (91,957) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ (0.11) | $ (0.49) | $ (0.95) | $ (1.10) |
Diluted (in dollars per share) | $ (0.11) | $ (0.49) | $ (0.95) | $ (1.10) |
Shares used in computing net income (loss) per share: | ||||
Basic (in shares) | 82,051,867 | 83,413,643 | 82,686,420 | 83,430,693 |
Diluted (in shares) | 82,051,867 | 83,413,643 | 82,686,420 | 83,430,693 |
Subscription and support | ||||
Revenue: | ||||
Total revenue | $ 105,754 | $ 84,297 | $ 204,822 | $ 163,287 |
Cost of revenue: | ||||
Total cost of revenue | 48,924 | 48,276 | 104,615 | 96,326 |
Gross profit: | ||||
Total gross profit | 56,830 | 36,021 | 100,207 | 66,961 |
License | ||||
Revenue: | ||||
Total revenue | 73,115 | 69,798 | 114,067 | 109,951 |
Cost of revenue: | ||||
Total cost of revenue | 1,845 | 2,254 | 3,718 | 4,593 |
Gross profit: | ||||
Total gross profit | 71,270 | 67,544 | 110,349 | 105,358 |
Services | ||||
Revenue: | ||||
Total revenue | 53,742 | 50,538 | 109,004 | 97,329 |
Cost of revenue: | ||||
Total cost of revenue | 58,379 | 51,912 | 123,945 | 99,063 |
Gross profit: | ||||
Total gross profit | $ (4,637) | $ (1,374) | $ (14,941) | $ (1,734) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (9,189) | $ (40,681) | $ (78,507) | $ (91,957) |
Foreign currency translation adjustments | 4,885 | (2,363) | 2,184 | (3,087) |
Unrealized gains (losses) on available-for-sale securities | 4,309 | (2,537) | 2,665 | (3,655) |
Tax benefit (expense) on unrealized gains (losses) on available-for-sale securities | (942) | 603 | (499) | 854 |
Reclassification adjustment for realized gains (losses) included in net income (loss) | (350) | 23 | (566) | 92 |
Total other comprehensive income (loss) | 7,902 | (4,274) | 3,784 | (5,796) |
Comprehensive income (loss) | $ (1,287) | $ (44,955) | $ (74,723) | $ (97,753) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Adoption of Accounting Standards Update ("ASU") 2020-06 | Common stock | Additional paid-in capital | Additional paid-in capital Adoption of Accounting Standards Update ("ASU") 2020-06 | Accumulated other comprehensive income (loss) | Retained earnings (accumulated deficit) | Retained earnings (accumulated deficit) Adoption of Accounting Standards Update ("ASU") 2020-06 |
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 income (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 RSUs (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 income (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 income (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 RSUs (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) | |||
Beginning balance (in shares) at Jul. 31, 2022 | 84,084,209 | |||||||
Beginning balance at Jul. 31, 2022 | 1,451,657 | $ (28,309) | $ 8 | 1,755,476 | $ (68,003) | (19,845) | (283,982) | $ 39,694 |
Net income (loss) | (69,318) | (69,318) | ||||||
Issuance of common stock upon vesting of RSUs (in shares) | 373,380 | |||||||
Stock-based compensation | 35,249 | 35,249 | ||||||
Repurchase and retirement of common stock (in shares) | (2,581,478) | |||||||
Repurchase and retirement of common stock | (200,000) | (40,000) | (160,000) | |||||
Foreign currency translation adjustment | (2,701) | (2,701) | ||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | (1,201) | (1,201) | ||||||
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss) | $ (216) | (216) | ||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||||
Ending balance (in shares) at Oct. 31, 2022 | 81,876,111 | |||||||
Ending balance at Oct. 31, 2022 | $ 1,185,161 | $ 8 | 1,682,722 | (23,963) | (473,606) | |||
Beginning balance (in shares) at Jul. 31, 2022 | 84,084,209 | |||||||
Beginning balance at Jul. 31, 2022 | 1,451,657 | $ (28,309) | $ 8 | 1,755,476 | $ (68,003) | (19,845) | (283,982) | $ 39,694 |
Net income (loss) | (78,507) | |||||||
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss) | (566) | |||||||
Ending balance (in shares) at Jan. 31, 2023 | 82,212,768 | |||||||
Ending balance at Jan. 31, 2023 | 1,220,172 | $ 8 | 1,719,020 | (16,061) | (482,795) | |||
Beginning balance (in shares) at Oct. 31, 2022 | 81,876,111 | |||||||
Beginning balance at Oct. 31, 2022 | 1,185,161 | $ 8 | 1,682,722 | (23,963) | (473,606) | |||
Net income (loss) | (9,189) | (9,189) | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 217 | |||||||
Issuance of common stock upon exercise of stock options | 2 | 2 | ||||||
Issuance of common stock upon vesting of RSUs (in shares) | 336,440 | |||||||
Stock-based compensation | 36,296 | 36,296 | ||||||
Foreign currency translation adjustment | 4,885 | 4,885 | ||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 3,367 | 3,367 | ||||||
Reclassification adjustment for realized gain (loss) on available-for-sale securities, included in net income (loss) | (350) | (350) | ||||||
Ending balance (in shares) at Jan. 31, 2023 | 82,212,768 | |||||||
Ending balance at Jan. 31, 2023 | $ 1,220,172 | $ 8 | $ 1,719,020 | $ (16,061) | $ (482,795) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (78,507) | $ (91,957) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 14,229 | 16,979 |
Amortization of debt discount and issuance costs | 848 | 7,096 |
Amortization of contract costs | 8,597 | 6,310 |
Stock-based compensation | 71,275 | 70,105 |
Changes to allowance for credit losses and revenue reserves | (315) | 157 |
Deferred income tax | (18,358) | (30,249) |
Amortization of premium (accretion of discount) on available-for-sale securities, net | (722) | 3,315 |
Other non-cash items affecting net income (loss) | 76 | 228 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 16,524 | (7,940) |
Unbilled accounts receivable | (29,460) | (448) |
Prepaid expenses and other assets | (4,820) | (13,335) |
Operating lease assets | 4,808 | 5,667 |
Accounts payable | (2,289) | (1,711) |
Accrued employee compensation | (32,539) | (47,323) |
Deferred revenue | (26,291) | (17,826) |
Lease liabilities | (5,717) | (6,817) |
Other liabilities | (3,554) | (2,303) |
Net cash provided by (used in) operating activities | (86,215) | (110,052) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of available-for-sale securities | (270,329) | (367,114) |
Sales of available-for-sale securities | 202,115 | 50,361 |
Maturities of available-for-sale securities | 33,268 | 415,265 |
Purchases of property and equipment | (1,937) | (6,990) |
Capitalized software development costs | (6,118) | (6,197) |
Acquisition of strategic investments | (5,841) | (10,521) |
Acquisition of business, net of acquired cash | 0 | (43,830) |
Net cash provided by (used in) investing activities | (48,842) | 30,974 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock upon exercise of stock options | 2 | 98 |
Repurchase and retirement of common stock | (200,000) | (37,451) |
Net cash provided by (used in) financing activities | (199,998) | (37,353) |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 1,941 | (2,807) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (333,114) | (119,238) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period | 614,686 | 384,910 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period | 281,572 | 265,672 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 2,500 | 2,500 |
Cash paid for income taxes, net of tax refunds | 2,725 | 2,152 |
Accruals for purchase of property and equipment | 839 | 1,227 |
Accruals for capitalized software development costs | $ 510 | $ 579 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies and Estimates | 6 Months Ended |
Jan. 31, 2023 | |
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 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, 2022. Reclassification Effective as of the beginning of fiscal year 2023, the Company revised its allocation methodology and presentation of certain expenses. The change resulted in facilities expenses, information technology infrastructure and software expenses, and information security infrastructure and software expenses being allocated to all functional departments based on headcount, with the remaining previously allocated costs being recorded within general and administrative expenses. The impact was an increase in general and administrative expenses and a decrease in cost of revenue and other operating expense categories. Accordingly, prior period amounts have been reclassified to conform to the current period presentation in the Company's condensed consolidated financial statements and the accompanying notes presented herein. Use of Estimates In preparing the condensed consolidated financial statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the SEC, the Company must make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ materially from these estimates. Significant Accounting Policies 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 for the fiscal year ended July 31, 2022, except for those disclosed herein. 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”). Prior to the adoption of ASU 2020-06 on August 1, 2022, upon the issuance of the Convertible Senior Notes, the Company separated the Convertible Senior Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that did not have an associated convertible feature. 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. The difference between the principal amount of the Convertible Senior Notes and the liability component was initially recorded as a debt discount and was amortized as interest expense using the effective interest method over the term of the Convertible Senior Notes. Refer to Recently Adopted Accounting Pronouncements section for the adoption impact of ASU 2020-06. Restricted Cash Unearned acquisition consideration holdback subject to service conditions is held in escrow and considered restricted cash. At January 31, 2023, $4.6 million was included in prepaid expenses and other current assets and $2.1 million was included in other assets in the condensed consolidated balance sheet. 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 in any of the three and six month periods ended January 31, 2023 and 2022. No customer accounted for 10% or more of the Company's accounts receivable as of January 31, 2023 and July 31, 2022. Recently Adopted Accounting Pronouncements 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 On August 1, 2022, the Company adopted ASU 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. In addition, this ASU amends the requirement for calculating diluted earnings per share for convertible instruments by using the “if-converted” method instead of the treasury stock method. The use of the “if-converted” method will not impact the Company's diluted earnings per share in the periods in which the Company has a net loss. The Company adopted the ASU using the modified retrospective transition method, and the prior period condensed consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for that period. As a result of the adoption, the Company accounts for the Convertible Senior Notes as a single liability and no longer separately accounts for the liability and equity components. The adoption of this ASU also resulted in the de-recognition of a deferred tax liability, which represented a basis difference in the face value of the Convertible Senior Notes due to the previous allocation of a portion of the proceeds to the equity component. Additionally, the Company recorded a cumulative adjustment to decrease the beginning balance of the accumulated deficit on August 1, 2022, which represented a reversal of the previously recorded amortization of debt discount through July 31, 2022. The following table summarizes the adjustments made to the condensed consolidated balance sheet as of August 1, 2022 as a result of applying the modified retrospective adoption method (in thousands): Balances reported as of July 31, 2022 Cumulative effect adjustment due to adoption of ASU 2020-06 Adjusted beginning balance as of August 1, 2022 Deferred tax assets, net $ 191,461 $ 8,944 $ 200,405 Convertible senior notes, net (358,216) (37,253) (395,469) Additional paid-in capital (1,755,476) 68,003 (1,687,473) Accumulated deficit 283,982 (39,694) 244,288 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. |
Revenue
Revenue | 6 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue Revenue by service or product type is as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 Subscription and support Subscription $ 86,015 $ 62,871 $ 164,992 $ 120,000 Support 19,739 21,426 39,830 43,287 License Term license 73,067 69,750 113,956 109,855 Perpetual license 48 48 111 96 Services 53,742 50,538 109,004 97,329 Total revenue $ 232,611 $ 204,633 $ 427,893 $ 370,567 Revenue by service or product type and by geography is as follows (in thousands): Three Months Ended January 31, 2023 Subscription and support License Services Total United States $ 71,344 $ 39,421 $ 36,300 $ 147,065 Canada 17,536 5,912 4,425 27,873 Other Americas 1,481 532 683 2,696 Total Americas 90,361 45,865 41,408 177,634 United Kingdom 2,507 7,087 652 10,246 Other EMEA 7,205 8,621 9,612 25,438 Total EMEA 9,712 15,708 10,264 35,684 Total APAC 5,681 11,542 2,070 19,293 Total revenue $ 105,754 $ 73,115 $ 53,742 $ 232,611 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 Six Months Ended January 31, 2023 Subscription and support License Services Total United States $ 138,425 $ 56,930 $ 74,825 $ 270,180 Canada 33,587 9,605 10,477 53,669 Other Americas 2,956 852 1,105 4,913 Total Americas 174,968 67,387 86,407 328,762 United Kingdom 5,150 11,939 1,307 18,396 Other EMEA 13,490 14,194 16,851 44,535 Total EMEA 18,640 26,133 18,158 62,931 Total APAC 11,214 20,547 4,439 36,200 Total revenue $ 204,822 $ 114,067 $ 109,004 $ 427,893 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 No country or region, other than those presented above, accounted for more than 10% of total revenue during the three and six months ended January 31, 2023 and 2022. Customer Contract – Related Balance Sheet Amounts Amounts related to customer contract-related arrangements are included on the condensed consolidated balance sheets as follows (in thousands): January 31, 2023 July 31, 2022 Unbilled accounts receivable, net $ 114,889 $ 85,429 Contract costs, net $ 42,060 $ 44,235 Deferred revenue, net $ 151,985 $ 178,276 As of January 31, 2023 and July 31, 2022, there was no allowance for credit losses associated with unbilled accounts receivable. Contract costs The current portion of contract costs of $15.2 million and $14.8 million is included in prepaid and other current assets in the Company’s condensed consolidated balance sheets as of January 31, 2023 and July 31, 2022, respectively. The non-current portion of contract costs of $26.9 million and $29.4 million is included in other assets in the Company’s condensed consolidated balance sheets as of January 31, 2023 and July 31, 2022, respectively. The Company amortized $4.1 million and $3.3 million of contract costs during the three months ended January 31, 2023 and 2022, respectively, and amortized $8.6 million and $6.3 million during the six months ended January 31, 2023 and 2022, respectively. Deferred revenue During the three and six months ended January 31, 2023, the Company recognized revenue of approximately $42.4 million and $124.3 million, respectively, related to the Company’s deferred revenue balance reported as of July 31, 2022. Remaining Performance Obligations The aggregate amount of consideration allocated to remaining performance obligations either not satisfied or partially satisfied was approximately $1.2 billion as of January 31, 2023. 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 remaining 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, 2023 | |
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, 2023 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Commercial paper $ 204,128 $ — $ — $ 204,128 Corporate bonds 262,385 146 (3,397) 259,134 Certificates of deposit 51,048 — — 51,048 U.S. Government bonds 51,610 96 (1,348) 50,358 Money market funds 50,709 — — 50,709 U.S. Government agency securities 85,449 13 (354) 85,108 Asset-backed securities 49,442 32 (474) 49,000 Foreign government bonds 13,059 — (359) 12,700 Total $ 767,830 $ 287 $ (5,932) $ 762,185 July 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Commercial paper $ 197,998 $ — $ — $ 197,998 Corporate bonds 320,474 8 (4,880) 315,602 Certificates of deposit 43,715 — — 43,715 U.S. Government bonds 47,014 — (1,312) 45,702 Money market funds 349,492 — — 349,492 U.S. Government agency securities 37,572 — (586) 36,986 Asset-backed securities 54,782 — (611) 54,171 Foreign government bonds 15,109 — (361) 14,748 Municipal bonds 205 — — 205 Total $ 1,066,361 $ 8 $ (7,750) $ 1,058,619 The Company does not consider any portion of the unrealized losses at January 31, 2023 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 the specific identification of the securities 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, 2023 Less Than 12 Months 12 Months or Greater Total Commercial paper $ 204,128 $ — $ 204,128 Corporate bonds 197,154 61,980 259,134 Certificates of deposit 51,048 — 51,048 U.S. Government bonds 14,363 35,995 50,358 Money market funds 50,709 — 50,709 U.S. Government agency securities 79,989 5,119 85,108 Asset-backed securities 1,583 47,417 49,000 Foreign government bonds 7,905 4,795 12,700 Total $ 606,879 $ 155,306 $ 762,185 Fair Value Measurement 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, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper $ — $ 95,991 $ — $ 95,991 Money market funds 50,709 — — 50,709 U.S. Government agency securities — 20,346 — 20,346 Total cash equivalents 50,709 116,337 — 167,046 Short-term investments: Commercial paper — 108,137 — 108,137 Corporate bonds — 197,154 — 197,154 Certificates of deposit — 51,048 — 51,048 U.S. Government bonds — 14,363 — 14,363 U.S. Government agency securities — 59,643 — 59,643 Asset-backed securities — 1,583 — 1,583 Foreign government bonds — 7,905 — 7,905 Total short-term investments — 439,833 — 439,833 Long-term investments: Corporate bonds — 61,980 — 61,980 U.S. Government bonds — 35,995 — 35,995 U.S. Government agency securities — 5,119 — 5,119 Asset-backed securities — 47,417 — 47,417 Foreign government bonds — 4,795 — 4,795 Total long-term investments — 155,306 — 155,306 Total $ 50,709 $ 711,476 $ — $ 762,185 July 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper $ — $ 132,066 $ — $ 132,066 Certificates of deposit — 9,689 — 9,689 Money market funds 349,492 — — 349,492 U.S. Government agency securities — 10,000 — 10,000 Total cash equivalents 349,492 151,755 — 501,247 Short-term investments: Commercial paper — 65,932 — 65,932 Corporate bonds — 203,960 — 203,960 Certificates of deposit — 34,026 — 34,026 U.S. Government bonds — 25,429 — 25,429 U.S. Government agency securities — 26,986 — 26,986 Asset-backed securities — 8,627 — 8,627 Foreign government bonds — 4,700 — 4,700 Municipal bonds — 205 — 205 Total short-term investments — 369,865 — 369,865 Long-term investments: Corporate bonds — 111,642 — 111,642 U.S. Government bonds — 20,273 — 20,273 Asset-backed securities — 45,544 — 45,544 Foreign government bonds — 10,048 — 10,048 Total long-term investments — 187,507 — 187,507 Total $ 349,492 $ 709,127 $ — $ 1,058,619 Convertible Senior Notes The fair value of the Convertible Senior Notes was $387.0 million and $387.6 million at January 31, 2023 and July 31, 2022, 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 in markets that are not active (Level 2). Effective August 1, 2022 with the adoption of ASU 2020-06, the Company carries the Convertible Senior Notes at par value less unamortized debt issuance costs on its condensed consolidated balance sheets. For further information on the Convertible Senior Notes, see Note 5. Strategic Equity Investments 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. During the three and six months ended January 31, 2023, the Company invested $5.9 million and $6.1 million in existing strategic equity investments, respectively. At January 31, 2023 and July 31, 2022, the Company’s total strategic equity investments was $23.9 million and $18.0 million, respectively. No impairment charge or unrealized gain or loss related to strategic investments were recognized during the three and six months ended January 31, 2023 and 2022. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jan. 31, 2023 | |
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. For options to purchase common stock and Stock Awards, the Company uses the treasury stock method for calculating diluted earnings per share in all periods presented. Effective August 1, 2022, the Company adopted ASU 2020-06 which requires the use of the if-converted method for the Convertible Senior Notes. Prior to August 1, 2022, the Company used the treasury stock method for the Convertible Senior Notes. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share for the three and six months ended January 31, 2023 and 2022 (in thousands, except share and per share amounts): Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 Numerator: Net income (loss) $ (9,189) $ (40,681) $ (78,507) $ (91,957) Net income (loss) per share: Basic and diluted $ (0.11) $ (0.49) $ (0.95) $ (1.10) Denominator: Weighted average shares used in computing net income (loss) per share: Basic and diluted 82,051,867 83,413,643 82,686,420 83,430,693 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, 2023 2022 2023 2022 Stock options 14,686 20,216 14,746 22,458 Stock awards 1,960,572 3,268,003 1,664,469 3,126,378 Convertible senior notes 3,516,480 — 3,516,480 66,834 During the three and six months ended January 31, 2023, the average market price of the Company’s common stock did not exceed the outstanding principal of 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 initial conversion price of the Convertible Senior Notes and the conversion premium was anti-dilutive under the treasury stock method. |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jan. 31, 2023 | |
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 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, 2023 July 31, 2022 Principal $ 400,000 $ 400,000 Less unamortized: Debt discount (1) — 37,253 Debt issuance costs 3,684 4,531 Net carrying amount $ 396,316 $ 358,216 (1) Effective August 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method which resulted in the accounting for the Convertible Senior Notes as a single liability and no longer required the liability and equity components to be accounted for separately. The prior period has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for that period. The effective interest rate of the Convertible Senior Notes after the adoption of ASU 2020-06 on August 1, 2022 is 1.69%. Prior to the adoption of ASU 2020-06, the effective interest rate of the Convertible Senior Notes was 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, 2023 2022 2023 2022 Contractual interest expense $ 1,250 $ 1,250 $ 2,500 $ 2,500 Amortization of debt discount (1) — 3,215 — 6,391 Amortization of debt issuance costs 425 357 848 705 Total $ 1,675 $ 4,822 $ 3,348 $ 9,596 (1) Effective August 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method which resulted in the accounting for the Convertible Senior Notes as a single liability and no longer required the amortization of debt discount. The prior period has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for that period. As of January 31, 2023, the if-converted value did not exceed the outstanding principal of the Convertible Senior Notes. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Except as discussed below, 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, 2022. Effective during the six months ended January 31, 2023, the Company terminated its existing agreement and entered into a new agreement with a cloud infrastructure services provider for a total obligation of $600 million over a five-year period. See the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2022 for additional information regarding the Company’s contractual obligations. 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, 2023 or July 31, 2022. 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, 2023 or July 31, 2022. 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, 2023 | |
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, 2023 2022 2023 2022 Stock-based compensation expense $ 36,296 $ 38,147 $ 71,545 $ 70,680 Net impact of deferred stock-based compensation (117) (282) (270) (575) Total stock-based compensation expense, net $ 36,179 $ 37,865 $ 71,275 $ 70,105 Stock-based compensation expense is included in the following categories: Cost of subscription and support revenue $ 3,440 $ 3,406 $ 6,908 $ 6,436 Cost of license revenue 119 189 266 371 Cost of services revenue 4,397 5,552 9,746 10,741 Research and development 10,301 8,719 19,592 16,716 Sales and marketing 8,024 10,379 14,911 17,492 General and administrative 9,898 9,620 19,852 18,349 Total stock-based compensation expense $ 36,179 $ 37,865 $ 71,275 $ 70,105 Total unrecognized stock-based compensation expense related to the Company’s stock options and Stock Awards as of January 31, 2023 is as follows: Unrecognized Expense Weighted Average Expected Recognition Period Stock Options $ 3,667 1.6 Stock Awards 317,904 2.8 Total unrecognized stock-based compensation expense $ 321,571 Stock Awards A summary of 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, 2022 2,785,353 $ 110.47 $ 216,478 Granted 2,140,537 $ 65.89 Released (709,820) $ 105.93 $ 47,089 Canceled (184,411) $ 103.07 Balance as of January 31, 2023 4,031,659 $ 87.94 $ 295,279 Expected to vest as of January 31, 2023 4,031,659 $ 87.94 $ 295,279 (1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $73.24 and $77.72 on January 31, 2023 and July 31, 2022, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release. Stock Options A summary of 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, 2022 75,706 $ 61.93 8.7 $ 1,196 Granted 121,168 $ 66.76 Exercised (217) $ 10.72 $ — Canceled (2,720) $ 69.60 Balance as of January 31, 2023 193,937 $ 64.90 9.0 $ 1,889 Vested and expected to vest as of January 31, 2023 193,937 $ 64.90 9.0 $ 1,889 Exercisable as of January 31, 2023 14,589 $ 22.01 2.3 $ 747 (1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock price of $73.24 and $77.72 on January 31, 2023 and July 31, 2022, 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. Share Repurchase Program In September 2022, the Company's board of directors authorized and approved a share repurchase program of up to $400.0 million of the Company's outstanding common stock. Share 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. In September 2022, the Company entered into an accelerated share repurchase (“ASR”) agreement with a large financial institution whereupon the Company provided them with a prepayment of $200.0 million and received an initial delivery of 2,581,478 shares of the Company’s common stock. Under the terms of the ASR, the total number of shares delivered and average price paid per share will be determined upon settlement based on the volume weighted average price over the term of the ASR, less an agreed upon discount. At settlement, the financial institution may be required to deliver additional shares of the Company’s common stock to the Company or, under certain circumstances, the Company may be required to make a cash payment or deliver shares of the Company’s common stock to the financial institution, with the method of settlement at the Company’s election. As of January 31, 2023, a portion of the ASR prepayment was evaluated as an unsettled forward contract indexed to the Company’s stock, classified within stockholders’ equity. Subsequent to January 31, 2023, the ASR was settled in full with the delivery of an additional 648,001 shares of common stock which resulted in total repurchases under the ASR of 3,229,479 shares of common stock at an average purchase price of $61.93. As of January 31, 2023, the Company had approximately $200.0 million remaining for future share repurchases under the share repurchase program. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares, and the program may be modified, suspended or discontinued at any time. There is no stated expiration date for the program. During the three months ended January 31, 2023, the Company did not repurchase any shares of common stock. During the six months ended January 31, 2023, the Company repurchased 2,581,478 shares of common stock under the ASR program described above. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jan. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn February 2023, the Company assigned the remaining lease term of its existing headquarters consisting of 179,496 square feet in San Mateo, California, with remaining lease payments of approximately $90 million due through December 2029, and concurrently entered into a sublease for 78,911 square feet of office space also in San Mateo, California with the same third party for its new worldwide headquarters. The term of the sublease is approximately 4 years with total lease payments of approximately $22 million. The Company is still evaluating the accounting of the transaction. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 6 Months Ended |
Jan. 31, 2023 | |
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 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. |
Reclassification | Reclassification Effective as of the beginning of fiscal year 2023, the Company revised its allocation methodology and presentation of certain expenses. The change resulted in facilities expenses, information technology infrastructure and software expenses, and information security infrastructure and software expenses being allocated to all functional departments based on headcount, with the remaining previously allocated costs being recorded within general and administrative expenses. The impact was an increase in general and administrative expenses and a decrease in cost of revenue and other operating expense categories. Accordingly, prior period amounts have been reclassified to conform to the current period presentation in the Company's condensed consolidated financial statements and the accompanying notes presented herein. |
Use of Estimates | Use of Estimates In preparing the condensed consolidated financial statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the SEC, the Company must make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ materially from these estimates. |
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”). Prior to the adoption of ASU 2020-06 on August 1, 2022, upon the issuance of the Convertible Senior Notes, the Company separated the Convertible Senior Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that did not have an associated convertible feature. 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. The difference between the principal amount of the Convertible Senior Notes and the liability component was initially recorded as a debt discount and was amortized as interest expense using the effective interest method over the term of the Convertible Senior Notes. Refer to Recently Adopted Accounting Pronouncements section for the adoption impact of ASU 2020-06. |
Restricted Cash | Restricted Cash Unearned acquisition consideration holdback subject to service conditions is held in escrow and considered restricted cash. At January 31, 2023, $4.6 million was included in prepaid expenses and other current assets and $2.1 million was included in other assets in the condensed consolidated balance sheet. |
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. |
Recent Accounting Pronouncements Not Yet Adopted; Other Accounting Pronouncements | Recently Adopted Accounting Pronouncements 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 On August 1, 2022, the Company adopted ASU 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. In addition, this ASU amends the requirement for calculating diluted earnings per share for convertible instruments by using the “if-converted” method instead of the treasury stock method. The use of the “if-converted” method will not impact the Company's diluted earnings per share in the periods in which the Company has a net loss. The Company adopted the ASU using the modified retrospective transition method, and the prior period condensed consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for that period. As a result of the adoption, the Company accounts for the Convertible Senior Notes as a single liability and no longer separately accounts for the liability and equity components. The adoption of this ASU also resulted in the de-recognition of a deferred tax liability, which represented a basis difference in the face value of the Convertible Senior Notes due to the previous allocation of a portion of the proceeds to the equity component. Additionally, the Company recorded a cumulative adjustment to decrease the beginning balance of the accumulated deficit on August 1, 2022, which represented a reversal of the previously recorded amortization of debt discount through July 31, 2022. The following table summarizes the adjustments made to the condensed consolidated balance sheet as of August 1, 2022 as a result of applying the modified retrospective adoption method (in thousands): Balances reported as of July 31, 2022 Cumulative effect adjustment due to adoption of ASU 2020-06 Adjusted beginning balance as of August 1, 2022 Deferred tax assets, net $ 191,461 $ 8,944 $ 200,405 Convertible senior notes, net (358,216) (37,253) (395,469) Additional paid-in capital (1,755,476) 68,003 (1,687,473) Accumulated deficit 283,982 (39,694) 244,288 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, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prior Period Adjustments | The following table summarizes the adjustments made to the condensed consolidated balance sheet as of August 1, 2022 as a result of applying the modified retrospective adoption method (in thousands): Balances reported as of July 31, 2022 Cumulative effect adjustment due to adoption of ASU 2020-06 Adjusted beginning balance as of August 1, 2022 Deferred tax assets, net $ 191,461 $ 8,944 $ 200,405 Convertible senior notes, net (358,216) (37,253) (395,469) Additional paid-in capital (1,755,476) 68,003 (1,687,473) Accumulated deficit 283,982 (39,694) 244,288 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue by service or product type is as follows (in thousands): Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 Subscription and support Subscription $ 86,015 $ 62,871 $ 164,992 $ 120,000 Support 19,739 21,426 39,830 43,287 License Term license 73,067 69,750 113,956 109,855 Perpetual license 48 48 111 96 Services 53,742 50,538 109,004 97,329 Total revenue $ 232,611 $ 204,633 $ 427,893 $ 370,567 Revenue by service or product type and by geography is as follows (in thousands): Three Months Ended January 31, 2023 Subscription and support License Services Total United States $ 71,344 $ 39,421 $ 36,300 $ 147,065 Canada 17,536 5,912 4,425 27,873 Other Americas 1,481 532 683 2,696 Total Americas 90,361 45,865 41,408 177,634 United Kingdom 2,507 7,087 652 10,246 Other EMEA 7,205 8,621 9,612 25,438 Total EMEA 9,712 15,708 10,264 35,684 Total APAC 5,681 11,542 2,070 19,293 Total revenue $ 105,754 $ 73,115 $ 53,742 $ 232,611 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 |
Contract with Customer, Asset and Liability | Amounts related to customer contract-related arrangements are included on the condensed consolidated balance sheets as follows (in thousands): January 31, 2023 July 31, 2022 Unbilled accounts receivable, net $ 114,889 $ 85,429 Contract costs, net $ 42,060 $ 44,235 Deferred revenue, net $ 151,985 $ 178,276 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
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, 2023 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Commercial paper $ 204,128 $ — $ — $ 204,128 Corporate bonds 262,385 146 (3,397) 259,134 Certificates of deposit 51,048 — — 51,048 U.S. Government bonds 51,610 96 (1,348) 50,358 Money market funds 50,709 — — 50,709 U.S. Government agency securities 85,449 13 (354) 85,108 Asset-backed securities 49,442 32 (474) 49,000 Foreign government bonds 13,059 — (359) 12,700 Total $ 767,830 $ 287 $ (5,932) $ 762,185 July 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Commercial paper $ 197,998 $ — $ — $ 197,998 Corporate bonds 320,474 8 (4,880) 315,602 Certificates of deposit 43,715 — — 43,715 U.S. Government bonds 47,014 — (1,312) 45,702 Money market funds 349,492 — — 349,492 U.S. Government agency securities 37,572 — (586) 36,986 Asset-backed securities 54,782 — (611) 54,171 Foreign government bonds 15,109 — (361) 14,748 Municipal bonds 205 — — 205 Total $ 1,066,361 $ 8 $ (7,750) $ 1,058,619 |
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, 2023 Less Than 12 Months 12 Months or Greater Total Commercial paper $ 204,128 $ — $ 204,128 Corporate bonds 197,154 61,980 259,134 Certificates of deposit 51,048 — 51,048 U.S. Government bonds 14,363 35,995 50,358 Money market funds 50,709 — 50,709 U.S. Government agency securities 79,989 5,119 85,108 Asset-backed securities 1,583 47,417 49,000 Foreign government bonds 7,905 4,795 12,700 Total $ 606,879 $ 155,306 $ 762,185 |
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, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper $ — $ 95,991 $ — $ 95,991 Money market funds 50,709 — — 50,709 U.S. Government agency securities — 20,346 — 20,346 Total cash equivalents 50,709 116,337 — 167,046 Short-term investments: Commercial paper — 108,137 — 108,137 Corporate bonds — 197,154 — 197,154 Certificates of deposit — 51,048 — 51,048 U.S. Government bonds — 14,363 — 14,363 U.S. Government agency securities — 59,643 — 59,643 Asset-backed securities — 1,583 — 1,583 Foreign government bonds — 7,905 — 7,905 Total short-term investments — 439,833 — 439,833 Long-term investments: Corporate bonds — 61,980 — 61,980 U.S. Government bonds — 35,995 — 35,995 U.S. Government agency securities — 5,119 — 5,119 Asset-backed securities — 47,417 — 47,417 Foreign government bonds — 4,795 — 4,795 Total long-term investments — 155,306 — 155,306 Total $ 50,709 $ 711,476 $ — $ 762,185 July 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Commercial paper $ — $ 132,066 $ — $ 132,066 Certificates of deposit — 9,689 — 9,689 Money market funds 349,492 — — 349,492 U.S. Government agency securities — 10,000 — 10,000 Total cash equivalents 349,492 151,755 — 501,247 Short-term investments: Commercial paper — 65,932 — 65,932 Corporate bonds — 203,960 — 203,960 Certificates of deposit — 34,026 — 34,026 U.S. Government bonds — 25,429 — 25,429 U.S. Government agency securities — 26,986 — 26,986 Asset-backed securities — 8,627 — 8,627 Foreign government bonds — 4,700 — 4,700 Municipal bonds — 205 — 205 Total short-term investments — 369,865 — 369,865 Long-term investments: Corporate bonds — 111,642 — 111,642 U.S. Government bonds — 20,273 — 20,273 Asset-backed securities — 45,544 — 45,544 Foreign government bonds — 10,048 — 10,048 Total long-term investments — 187,507 — 187,507 Total $ 349,492 $ 709,127 $ — $ 1,058,619 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Company's basic and diluted earnings per share | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share for the three and six months ended January 31, 2023 and 2022 (in thousands, except share and per share amounts): Three Months Ended January 31, Six Months Ended January 31, 2023 2022 2023 2022 Numerator: Net income (loss) $ (9,189) $ (40,681) $ (78,507) $ (91,957) Net income (loss) per share: Basic and diluted $ (0.11) $ (0.49) $ (0.95) $ (1.10) Denominator: Weighted average shares used in computing net income (loss) per share: Basic and diluted 82,051,867 83,413,643 82,686,420 83,430,693 |
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, 2023 2022 2023 2022 Stock options 14,686 20,216 14,746 22,458 Stock awards 1,960,572 3,268,003 1,664,469 3,126,378 Convertible senior notes 3,516,480 — 3,516,480 66,834 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
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, 2023 July 31, 2022 Principal $ 400,000 $ 400,000 Less unamortized: Debt discount (1) — 37,253 Debt issuance costs 3,684 4,531 Net carrying amount $ 396,316 $ 358,216 (1) Effective August 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method which resulted in the accounting for the Convertible Senior Notes as a single liability and no longer required the liability and equity components to be accounted for separately. The prior period has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for that period. The effective interest rate of the Convertible Senior Notes after the adoption of ASU 2020-06 on August 1, 2022 is 1.69%. Prior to the adoption of ASU 2020-06, the effective interest rate of the Convertible Senior Notes was 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, 2023 2022 2023 2022 Contractual interest expense $ 1,250 $ 1,250 $ 2,500 $ 2,500 Amortization of debt discount (1) — 3,215 — 6,391 Amortization of debt issuance costs 425 357 848 705 Total $ 1,675 $ 4,822 $ 3,348 $ 9,596 (1) Effective August 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method which resulted in the accounting for the Convertible Senior Notes as a single liability and no longer required the amortization of debt discount. The prior period has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for that period. |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense and Shareholders' Equity (Tables) | 6 Months Ended |
Jan. 31, 2023 | |
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, 2023 2022 2023 2022 Stock-based compensation expense $ 36,296 $ 38,147 $ 71,545 $ 70,680 Net impact of deferred stock-based compensation (117) (282) (270) (575) Total stock-based compensation expense, net $ 36,179 $ 37,865 $ 71,275 $ 70,105 Stock-based compensation expense is included in the following categories: Cost of subscription and support revenue $ 3,440 $ 3,406 $ 6,908 $ 6,436 Cost of license revenue 119 189 266 371 Cost of services revenue 4,397 5,552 9,746 10,741 Research and development 10,301 8,719 19,592 16,716 Sales and marketing 8,024 10,379 14,911 17,492 General and administrative 9,898 9,620 19,852 18,349 Total stock-based compensation expense $ 36,179 $ 37,865 $ 71,275 $ 70,105 Total unrecognized stock-based compensation expense related to the Company’s stock options and Stock Awards as of January 31, 2023 is as follows: |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of 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, 2022 2,785,353 $ 110.47 $ 216,478 Granted 2,140,537 $ 65.89 Released (709,820) $ 105.93 $ 47,089 Canceled (184,411) $ 103.07 Balance as of January 31, 2023 4,031,659 $ 87.94 $ 295,279 Expected to vest as of January 31, 2023 4,031,659 $ 87.94 $ 295,279 (1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $73.24 and $77.72 on January 31, 2023 and July 31, 2022, 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 | A summary of 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, 2022 75,706 $ 61.93 8.7 $ 1,196 Granted 121,168 $ 66.76 Exercised (217) $ 10.72 $ — Canceled (2,720) $ 69.60 Balance as of January 31, 2023 193,937 $ 64.90 9.0 $ 1,889 Vested and expected to vest as of January 31, 2023 193,937 $ 64.90 9.0 $ 1,889 Exercisable as of January 31, 2023 14,589 $ 22.01 2.3 $ 747 (1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock price of $73.24 and $77.72 on January 31, 2023 and July 31, 2022, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price. |
The Company and Summary of Si_4
The Company and Summary of Significant Accounting Policies and Estimates (Schedule of Prior Period Adjustments) (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Aug. 01, 2022 | Jul. 31, 2022 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Convertible senior notes, net | $ (396,316) | $ (395,469) | $ (358,216) |
Deferred tax assets, net | 200,405 | 191,461 | |
Additional paid-in capital | (1,687,473) | (1,755,476) | |
Retained earnings (accumulated deficit) | $ 482,795 | 283,982 | |
Retained earnings (accumulated deficit) | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Retained earnings (accumulated deficit) | $ (244,288) | 283,982 | |
Adoption of Accounting Standards Update ("ASU") 2020-06 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Convertible senior notes, net | (37,253) | ||
Deferred tax assets, net | 8,944 | ||
Additional paid-in capital | 68,003 | ||
Adoption of Accounting Standards Update ("ASU") 2020-06 | Retained earnings (accumulated deficit) | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Retained earnings (accumulated deficit) | $ (39,694) |
The Company and Summary of Si_5
The Company and Summary of Significant Accounting Policies and Estimates (Details Textual) - USD ($) | Jan. 31, 2023 | Aug. 01, 2022 | Jul. 31, 2022 | Mar. 31, 2018 |
Prepaid Expenses and Other Current Assets | ||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | ||||
Acquisition consideration holdback | $ 4,600,000 | |||
Other Assets | ||||
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract] | ||||
Acquisition consideration holdback | $ 2,100,000 | |||
Convertible Senior Notes, 1.250% | Senior Notes | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Aggregate principal amount | $ 400,000,000 | |||
Stated interest rate | 1.69% | 5.53% | 1.25% |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 232,611 | $ 204,633 | $ 427,893 | $ 370,567 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 147,065 | 125,631 | 270,180 | 229,770 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 27,873 | 25,624 | 53,669 | 45,736 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,696 | 1,761 | 4,913 | 3,745 |
Total Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 177,634 | 153,016 | 328,762 | 279,251 |
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,246 | 12,279 | 18,396 | 21,538 |
Other EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 25,438 | 19,070 | 44,535 | 32,089 |
Total EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 35,684 | 31,349 | 62,931 | 53,627 |
Total APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 19,293 | 20,268 | 36,200 | 37,689 |
Subscription and support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 105,754 | 84,297 | 204,822 | 163,287 |
Subscription and support | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 71,344 | 55,718 | 138,425 | 108,741 |
Subscription and support | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 17,536 | 14,037 | 33,587 | 25,978 |
Subscription and support | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,481 | 1,046 | 2,956 | 2,085 |
Subscription and support | Total Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 90,361 | 70,801 | 174,968 | 136,804 |
Subscription and support | United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,507 | 2,417 | 5,150 | 4,750 |
Subscription and support | Other EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,205 | 5,381 | 13,490 | 10,598 |
Subscription and support | Total EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,712 | 7,798 | 18,640 | 15,348 |
Subscription and support | Total APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,681 | 5,698 | 11,214 | 11,135 |
Subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 86,015 | 62,871 | 164,992 | 120,000 |
Support | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 19,739 | 21,426 | 39,830 | 43,287 |
License | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 73,115 | 69,798 | 114,067 | 109,951 |
License | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 39,421 | 38,133 | 56,930 | 56,586 |
License | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,912 | 4,700 | 9,605 | 10,513 |
License | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 532 | 0 | 852 | 237 |
License | Total Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 45,865 | 42,833 | 67,387 | 67,336 |
License | United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,087 | 8,944 | 11,939 | 14,776 |
License | Other EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 8,621 | 6,686 | 14,194 | 8,093 |
License | Total EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,708 | 15,630 | 26,133 | 22,869 |
License | Total APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,542 | 11,335 | 20,547 | 19,746 |
Term license | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 73,067 | 69,750 | 113,956 | 109,855 |
Perpetual license | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 48 | 48 | 111 | 96 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 53,742 | 50,538 | 109,004 | 97,329 |
Services | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 36,300 | 31,780 | 74,825 | 64,443 |
Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,425 | 6,887 | 10,477 | 9,245 |
Services | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 683 | 715 | 1,105 | 1,423 |
Services | Total Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 41,408 | 39,382 | 86,407 | 75,111 |
Services | United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 652 | 918 | 1,307 | 2,012 |
Services | Other EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,612 | 7,003 | 16,851 | 13,398 |
Services | Total EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,264 | 7,921 | 18,158 | 15,410 |
Services | Total APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,070 | $ 3,235 | $ 4,439 | $ 6,808 |
Revenue (Contract with Customer
Revenue (Contract with Customer) (Details) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled accounts receivable, net | $ 114,889 | $ 85,429 |
Contract costs, net | 42,060 | 44,235 |
Deferred revenue, net | $ 151,985 | $ 178,276 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Jul. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | ||
Contract costs, current | 15,200,000 | 15,200,000 | 14,800,000 | ||
Contract costs, noncurrent | 26,900,000 | 26,900,000 | $ 29,400,000 | ||
Amortization of contract costs | 4,100,000 | $ 3,300,000 | 8,597,000 | $ 6,310,000 | |
Contract with customer, liability, revenue recognized | 42,400,000 | 124,300,000 | |||
Remaining performance obligation, amount | $ 1,200,000,000 | $ 1,200,000,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 767,830 | $ 1,066,361 |
Unrealized Gains | 287 | 8 |
Unrealized Losses | (5,932) | (7,750) |
Estimated Fair Value | 762,185 | 1,058,619 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 204,128 | 197,998 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 204,128 | 197,998 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 262,385 | 320,474 |
Unrealized Gains | 146 | 8 |
Unrealized Losses | (3,397) | (4,880) |
Estimated Fair Value | 259,134 | 315,602 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 51,048 | 43,715 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 51,048 | 43,715 |
U.S. Government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 51,610 | 47,014 |
Unrealized Gains | 96 | 0 |
Unrealized Losses | (1,348) | (1,312) |
Estimated Fair Value | 50,358 | 45,702 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 50,709 | 349,492 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 50,709 | 349,492 |
U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 85,449 | 37,572 |
Unrealized Gains | 13 | 0 |
Unrealized Losses | (354) | (586) |
Estimated Fair Value | 85,108 | 36,986 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 49,442 | 54,782 |
Unrealized Gains | 32 | 0 |
Unrealized Losses | (474) | (611) |
Estimated Fair Value | 49,000 | 54,171 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 13,059 | 15,109 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (359) | (361) |
Estimated Fair Value | $ 12,700 | 14,748 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 205 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | $ 205 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 2) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | $ 606,879 | |
12 Months or Greater | 155,306 | |
Total | 762,185 | $ 1,058,619 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 204,128 | |
12 Months or Greater | 0 | |
Total | 204,128 | 197,998 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 197,154 | |
12 Months or Greater | 61,980 | |
Total | 259,134 | 315,602 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 51,048 | |
12 Months or Greater | 0 | |
Total | 51,048 | 43,715 |
U.S. Government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 14,363 | |
12 Months or Greater | 35,995 | |
Total | 50,358 | 45,702 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 50,709 | |
12 Months or Greater | 0 | |
Total | 50,709 | 349,492 |
U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 79,989 | |
12 Months or Greater | 5,119 | |
Total | 85,108 | 36,986 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 1,583 | |
12 Months or Greater | 47,417 | |
Total | 49,000 | 54,171 |
Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less Than 12 Months | 7,905 | |
12 Months or Greater | 4,795 | |
Total | $ 12,700 | 14,748 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 205 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 167,046 | $ 501,247 |
Total short-term investments | 439,833 | 369,865 |
Total long-term investments | 155,306 | 187,507 |
Total | 762,185 | 1,058,619 |
Strategic investment, noncurrent, quarter to date | 5,900 | |
Strategic investment, noncurrent, year to date | 6,100 | |
Equity investments | 23,900 | 18,000 |
Senior Notes | Convertible Senior Notes, 1.250% | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | 387,000 | 387,600 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 50,709 | 349,492 |
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Total | 50,709 | 349,492 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 116,337 | 151,755 |
Total short-term investments | 439,833 | 369,865 |
Total long-term investments | 155,306 | 187,507 |
Total | 711,476 | 709,127 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Total | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 95,991 | 132,066 |
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 | 95,991 | 132,066 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 9,689 | |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | |
Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 9,689 | |
Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 50,709 | 349,492 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 50,709 | 349,492 |
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 |
U.S. Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 20,346 | 10,000 |
U.S. Government agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
U.S. Government agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 20,346 | 10,000 |
U.S. Government agency securities | 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 | 108,137 | 65,932 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 108,137 | 65,932 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 197,154 | 203,960 |
Total long-term investments | 61,980 | 111,642 |
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 | 197,154 | 203,960 |
Total long-term investments | 61,980 | 111,642 |
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 | 51,048 | 34,026 |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-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 | 51,048 | 34,026 |
Certificates of deposit | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-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 | 14,363 | 25,429 |
Total long-term investments | 35,995 | 20,273 |
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 | 14,363 | 25,429 |
Total long-term investments | 35,995 | 20,273 |
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 | 59,643 | 26,986 |
Total long-term investments | 5,119 | |
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 | |
U.S. Government agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 59,643 | 26,986 |
Total long-term investments | 5,119 | |
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 | |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 1,583 | 8,627 |
Total long-term investments | 47,417 | 45,544 |
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 | 1,583 | 8,627 |
Total long-term investments | 47,417 | 45,544 |
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 | 7,905 | 4,700 |
Total long-term investments | 4,795 | 10,048 |
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 | 7,905 | 4,700 |
Total long-term investments | 4,795 | 10,048 |
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 | 205 | |
Municipal bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-term investments | 0 | |
Municipal bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total short-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 |
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, 2023 | Oct. 31, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Jan. 31, 2023 | Jan. 31, 2022 | |
Numerator: | ||||||
Net income (loss) | $ (9,189) | $ (69,318) | $ (40,681) | $ (51,276) | $ (78,507) | $ (91,957) |
Net income (loss) per share: | ||||||
Basic (in dollars per share) | $ (0.11) | $ (0.49) | $ (0.95) | $ (1.10) | ||
Diluted (in dollars per share) | $ (0.11) | $ (0.49) | $ (0.95) | $ (1.10) | ||
Weighted average shares used in computing net income (loss) per share: | ||||||
Basic (in shares) | 82,051,867 | 83,413,643 | 82,686,420 | 83,430,693 | ||
Diluted (in shares) | 82,051,867 | 83,413,643 | 82,686,420 | 83,430,693 |
Net Income (Loss) Per Share (_2
Net Income (Loss) Per Share (Details 2) - shares | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS (in shares) | 14,686 | 14,746 | 20,216 | 22,458 |
Stock awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS (in shares) | 1,960,572 | 1,664,469 | 3,268,003 | 3,126,378 |
Convertible senior notes | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS (in shares) | 3,516,480 | 3,516,480 | 0 | 66,834 |
Convertible Senior Notes (Detai
Convertible Senior Notes (Details) - Senior Notes - USD ($) | 1 Months Ended | |||
Mar. 31, 2018 | Jan. 31, 2023 | Aug. 01, 2022 | Jul. 31, 2022 | |
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 400,000,000 | $ 400,000,000 | ||
Net proceeds | $ 387,200,000 | |||
Convertible Senior Notes, 1.250% | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 400,000,000 | |||
Stated interest rate | 1.25% | 1.69% | 5.53% |
Convertible Senior Notes - Net
Convertible Senior Notes - Net carrying value of the liability component (Details) - Senior Notes - Convertible Debt - USD ($) $ in Thousands | Jan. 31, 2023 | Jul. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal | $ 400,000 | $ 400,000 |
Debt discount(1) | 0 | 37,253 |
Debt issuance costs | 3,684 | 4,531 |
Net carrying amount | $ 396,316 | $ 358,216 |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of interest expense recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 1,677 | $ 4,833 | $ 3,351 | $ 9,627 |
Senior Notes | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 1,250 | 1,250 | 2,500 | 2,500 |
Amortization of debt discount(1) | 0 | 3,215 | 0 | 6,391 |
Amortization of debt issuance costs | 425 | 357 | 848 | 705 |
Total | $ 1,675 | $ 4,822 | $ 3,348 | $ 9,596 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) | Jan. 31, 2023 USD ($) customer | Jul. 31, 2022 USD ($) customer |
Commitments and Contingencies Disclosure [Abstract] | ||
Reimbursement | $ 0 | $ 0 |
Claims outstanding | customer | 0 | 0 |
Purchase obligation | $ 600,000,000 | |
Purchase obligation period (in years) | 5 years |
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, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 36,296 | $ 38,147 | $ 71,545 | $ 70,680 |
Net impact of deferred stock-based compensation | (117) | (282) | (270) | (575) |
Total stock-based compensation expense, net | 36,179 | 37,865 | 71,275 | 70,105 |
Total stock-based compensation expense | 36,179 | 37,865 | 71,275 | 70,105 |
Unrecognized stock-based compensation expense | 321,571 | 321,571 | ||
Stock options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Unrecognized stock-based compensation expense | 3,667 | $ 3,667 | ||
Unrecognized stock-based compensation expense, period for recognition | 1 year 7 months 6 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Unrecognized stock-based compensation expense | 317,904 | $ 317,904 | ||
Unrecognized stock-based compensation expense, period for recognition | 2 years 9 months 18 days | |||
Cost of subscription and support revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 3,440 | 3,406 | $ 6,908 | 6,436 |
Cost of license revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 119 | 189 | 266 | 371 |
Cost of services revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 4,397 | 5,552 | 9,746 | 10,741 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 10,301 | 8,719 | 19,592 | 16,716 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 8,024 | 10,379 | 14,911 | 17,492 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 9,898 | $ 9,620 | $ 19,852 | $ 18,349 |
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, 2022 | Oct. 31, 2021 | Jan. 31, 2023 | Jul. 31, 2022 | |
Weighted Average Grant Date Fair Value | ||||
Share price (in dollars per share) | $ 73.24 | $ 77.72 | ||
Weighted Average Exercise Price | ||||
Granted (in dollars per share) | $ 66.76 | |||
Canceled (in dollars per share) | $ 69.60 | |||
Stock awards | ||||
Number of Stock Awards Outstanding | ||||
Balance at beginning of period (in shares) | 2,785,353 | 2,785,353 | ||
Granted (in shares) | 2,140,537 | |||
Released (in shares) | (709,820) | |||
Canceled (in shares) | (184,411) | |||
Balance at end of period (in shares) | 4,031,659 | |||
Expected to vest (in shares) | 4,031,659 | |||
Weighted Average Grant Date Fair Value | ||||
Balance at beginning of period (in dollars per share) | $ 110.47 | $ 110.47 | ||
Granted (in dollars per share) | 65.89 | |||
Released (in dollars per share) | 105.93 | |||
Canceled (in dollars per share) | 103.07 | |||
Balance at end of period (in dollars per share) | 87.94 | |||
Expected to vest (in dollars per share) | $ 87.94 | |||
Aggregate intrinsic value, Nonvested | $ 295,279 | $ 216,478 | ||
Aggregate intrinsic value, released | 47,089 | |||
Aggregate intrinsic value, Expected to vest | $ 295,279 | |||
Stock options | ||||
Number of Stock Options Outstanding | ||||
Balance at beginning of period (in shares) | 75,706 | 75,706 | ||
Granted (in shares) | 121,168 | |||
Exercised (in shares) | (217) | |||
Canceled (in shares) | (2,720) | |||
Balance at end of period (in shares) | 193,937 | |||
Vested and expected to vest (in shares) | 193,937 | |||
Exercisable (in shares) | 14,589 | |||
Weighted Average Exercise Price | ||||
Balance at beginning of period (in dollars per share) | $ 61.93 | $ 61.93 | ||
Exercised (in dollars per share) | $ 10.72 | |||
Balance at end of period (in dollars per share) | 64.90 | |||
Vested and expected to vest (in dollars per share) | 64.90 | |||
Exercisable (in dollars per share) | $ 22.01 | |||
Weighted Average Remaining Contractual Life | ||||
Outstanding, weighted average remaining contractual life | 9 years | 8 years 8 months 12 days | ||
Vested and expected to vest, weighted average remaining contractual life | 9 years | |||
Exercisable, weighted average remaining contractual life | 2 years 3 months 18 days | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value | $ 1,889 | $ 1,196 | ||
Exercised | $ 0 | |||
Vested and expected to vest | 1,889 | |||
Exercisable | $ 747 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense and Shareholders' Equity (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 06, 2023 | Sep. 30, 2022 | Jan. 31, 2023 | Jan. 31, 2023 | Jan. 31, 2022 | Oct. 20, 2020 | |
Class of Stock [Line Items] | ||||||
Shares repurchased (in shares) | 96,373 | 322,545 | ||||
Average price per share (in dollars per share) | $ 116.09 | $ 116.11 | ||||
Prepayment for repurchase of stock | $ 200,000,000 | $ 37,451,000 | ||||
Remaining authorized amount | $ 200,000,000 | $ 200,000,000 | ||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Shares repurchased (in shares) | 648,001 | |||||
Accelerated Share Repurchase Agreement | ||||||
Class of Stock [Line Items] | ||||||
Authorized repurchase amount | $ 400,000,000 | |||||
Shares repurchased (in shares) | 0 | 2,581,478 | ||||
Prepayment for repurchase of stock | $ 200,000,000 | |||||
Accelerated Share Repurchase Agreement | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Shares repurchased (in shares) | 3,229,479 | |||||
Average price per share (in dollars per share) | $ 61.93 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Feb. 28, 2023 USD ($) ft² |
Subsequent Event [Line Items] | |
Lessee, area of real estate property | ft² | 179,496 |
Lessee, operating lease, liability, to be paid | $ | $ 90 |
Lessor, area of real estate property | ft² | 78,911 |
Lessor, operating lease, term of contract (in years) | 4 years |
Lessor, operating lease, payments to be received | $ | $ 22 |