DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Apr. 30, 2017 | May 19, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Nutanix, Inc. | |
Entity Central Index Key | 1,618,732 | |
Current Fiscal Year End Date | --07-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 80,293,207 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 71,236,428 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2017 | Jul. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 200,774 | $ 99,209 |
Short-term investments | 149,571 | 85,991 |
Accounts receivable—net | 170,335 | 110,659 |
Deferred commissions—current | 22,260 | 17,864 |
Prepaid expenses and other current assets | 44,313 | 16,138 |
Total current assets | 587,253 | 329,861 |
Property and equipment—net | 53,545 | 42,218 |
Deferred commissions—non-current | 28,039 | 19,029 |
Intangible assets—net | 26,609 | 0 |
Goodwill | 16,636 | 0 |
Other assets—non-current | 6,225 | 7,978 |
Total assets | 718,307 | 399,086 |
Current liabilities: | ||
Accounts payable | 83,869 | 52,111 |
Accrued compensation and benefits | 56,834 | 24,547 |
Accrued expenses and other liabilities | 9,018 | 5,537 |
Deferred revenue—current | 207,018 | 130,569 |
Total current liabilities | 356,739 | 212,764 |
Deferred revenue—non-current | 255,982 | 165,896 |
Senior notes | 0 | 73,260 |
Convertible preferred stock warrant liability | 0 | 9,679 |
Early exercised stock options liability | 1,185 | 2,320 |
Other liabilities—non-current | 9,163 | 1,103 |
Total liabilities | 623,069 | 465,022 |
Commitments and contingencies (Note 7) | ||
Convertible preferred stock | 0 | 310,379 |
Stockholders’ (deficit) equity: | ||
Common stock | 4 | 1 |
Additional paid-in capital | 904,507 | 65,629 |
Accumulated other comprehensive loss | (96) | (12) |
Accumulated deficit | (809,177) | (441,933) |
Total stockholders’ (deficit) equity | 95,238 | (376,315) |
Total liabilities, convertible preferred stock and stockholders’ (deficit) equity | $ 718,307 | $ 399,086 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Revenue: | ||||
Product | $ 143,142 | $ 89,957 | $ 411,307 | $ 241,582 |
Support and other services | 48,621 | 24,733 | 129,460 | 63,561 |
Total revenue | 191,763 | 114,690 | 540,767 | 305,143 |
Cost of revenue: | ||||
Product | 62,593 | 33,427 | 173,206 | 91,061 |
Support and other services | 20,613 | 9,966 | 56,608 | 25,347 |
Total cost of revenue | 83,206 | 43,393 | 229,814 | 116,408 |
Gross profit | 108,557 | 71,297 | 310,953 | 188,735 |
Operating expenses: | ||||
Sales and marketing | 128,007 | 75,849 | 368,026 | 200,576 |
Research and development | 74,607 | 31,390 | 220,802 | 81,271 |
General and administrative | 15,610 | 8,761 | 60,463 | 23,976 |
Total operating expenses | 218,224 | 116,000 | 649,291 | 305,823 |
Loss from operations | (109,667) | (44,703) | (338,338) | (117,088) |
Other income (expense)—net | 303 | (2,106) | (25,830) | (331) |
Loss before provision for income taxes | (109,364) | (46,809) | (364,168) | (117,419) |
Provision for income taxes | 2,613 | 11 | 3,190 | 1,151 |
Net loss | $ (111,977) | $ (46,820) | $ (367,358) | $ (118,570) |
Net loss per share attributable to common stockholders—basic and diluted (in dollars per share) | $ (0.78) | $ (1.05) | $ (3.07) | $ (2.72) |
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted (in shares) | 144,054,432 | 44,441,954 | 119,851,586 | 43,643,451 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (111,977) | $ (46,820) | $ (367,358) | $ (118,570) |
Other comprehensive (loss) income —net of tax: | ||||
Change in unrealized loss on available-for-sale securities, net of tax | 74 | (8) | (84) | (9) |
Total other comprehensive (loss) income—net of tax | 74 | (8) | (84) | (9) |
Comprehensive loss | $ (111,903) | $ (46,828) | $ (367,442) | $ (118,579) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (367,358) | $ (118,570) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 27,934 | 18,975 |
Stock-based compensation | 193,686 | 15,380 |
Loss on debt extinguishment | 3,320 | 0 |
Change in fair value of convertible preferred stock warrant liability | 21,133 | (567) |
Other | 777 | (187) |
Changes in operating assets and liabilities: | ||
Accounts receivable—net | (58,841) | (24,295) |
Deferred commission | (13,406) | (14,190) |
Prepaid expenses and other assets | (29,628) | (421) |
Accounts payable | 32,468 | (3,551) |
Accrued compensation and benefits | 32,000 | 4,819 |
Accrued expenses and other liabilities | 5,291 | (2,147) |
Deferred revenue | 160,527 | 126,024 |
Net cash provided by operating activities | 7,903 | 1,270 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (37,797) | (33,419) |
Purchases of investments | (156,420) | (85,740) |
Maturities of investments | 59,542 | 66,613 |
Sale of investments | 32,640 | 0 |
Payments for business acquisitions, net of cash acquired | (184) | 0 |
Net cash used in investing activities | (102,219) | (52,546) |
Cash flows from financing activities: | ||
Proceeds from initial public offering, net of underwriting discounts and commissions | 254,455 | 0 |
Payments of offering costs, net | (1,609) | (2,791) |
Proceeds from sales of shares through employee equity incentive plans, net of repurchases | 26,662 | 2,747 |
Repayment of senior notes | (75,000) | 0 |
Debt extinguishment costs | (1,580) | 0 |
Payment of debt in conjunction with a business acquisition | (7,124) | 0 |
Proceeds from long-term debt - net of issuance costs | 0 | 73,319 |
Other | 77 | 836 |
Net cash provided by financing activities | 195,881 | 74,111 |
Net increase in cash and cash equivalents | 101,565 | 22,835 |
Cash and cash equivalents—beginning of period | 99,209 | 67,879 |
Cash and cash equivalents—end of period | 200,774 | 90,714 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 3,559 | 2,093 |
Cash paid for interest | 1,271 | 0 |
Supplemental disclosures of non-cash investing and financing information: | ||
Vesting of early exercised stock options | 1,293 | 2,658 |
Purchases of property and equipment included in accounts payable | 4,496 | 2,932 |
Offering costs included in accounts payable | 51 | 980 |
Conversion of convertible preferred stock to common stock, net of issuance costs | 310,379 | 0 |
Reclassification of convertible preferred stock warrant liability to additional paid-in capital | 30,812 | 0 |
Issuance of common stock for business acquisitions | $ 27,063 | $ 0 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Apr. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Organization and Description of Business —Nutanix, Inc. was incorporated in the state of Delaware in September 2009. Nutanix, Inc. is headquartered in San Jose, California, and together with its wholly-owned subsidiaries (collectively, the “Company”) has operations throughout North America, Europe, Asia-Pacific, Middle East, Latin America and Africa. The Company’s enterprise cloud platform converges traditional silos of server, virtualization and storage into one integrated solution and can also connect to public cloud services. The Company primarily sells its products and services to end-customers through distributors and resellers (collectively “Partners”). During the three months ended October 31, 2016, the Company completed two acquisitions, Calm.io Pte. Ltd. ("Calm") and PernixData, Inc. ("PernixData") (see Note 3). Initial Public Offering —In October 2016, the Company completed its initial public offering (“IPO”) of Class A common stock, in which it sold 17,100,500 shares, including 2,230,500 shares pursuant to the underwriters’ over-allotment option. The shares were sold at an IPO price of $16.00 per share for net proceeds of $254.5 million , after deducting underwriting discounts and commissions of $19.2 million . Additionally, offering costs incurred by the Company totaled $5.2 million . Immediately prior to the closing of the Company’s IPO, all outstanding shares of common stock were reclassified as Class B common stock, and all outstanding shares of its convertible preferred stock automatically converted into 76,319,511 shares of common stock on a one -to-one basis and then reclassified as shares of Class B common stock. Following the IPO, the Company has two classes of authorized common stock, Class A common stock, which entitles holders to one vote per share, and Class B common stock which entitles holders to 10 votes per share. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Significant Accounting Policies —The condensed consolidated financial statements, which include the accounts of Nutanix, Inc. and its wholly-owned subsidiaries including the acquisitions of Calm and PernixData, have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in our final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the Securities and Exchange Commission (“SEC”) on September 28, 2016. Use of Estimates —The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include, but are not limited to, the best estimate of selling prices for products and related support; determination of fair value of common stock and convertible preferred stock, fair value of stock options and convertible preferred stock warrant liability; accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions; warranty liability; commissions expense; fair value of assets and liabilities acquired in business combinations; and contingencies and litigation. Management evaluates these estimates and assumptions on an ongoing basis using historical experience and other factors and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could materially differ from those estimates and assumptions. Concentration Risk: Concentration of Revenue and Accounts Receivable —The Company sells its products primarily through Partners, including distributors and resellers, and occasionally directly to end-customers. For the three and nine months ended April 30, 2016 and 2017, no end-customer accounted for 10% or more of total revenue. For each significant Partner, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows: Revenue Accounts Receivable as of Three Months Ended Nine Months Ended Customers 2016 2017 2016 2017 July 31, 2016 April 30, Partner A 15 % * 16 % 10 % * * Partner B 21 % 18 % 20 % 20 % 17 % 12 % Partner C 16 % 19 % 13 % 17 % 12 % 13 % Partner D * * * * 23 % * Partner E 10 % * 11 % * 11 % 10 % Partner F 12 % 14 % 16 % 13 % * 12 % ___________________ * Less than 10% Business Combinations —The Company accounts for its acquisitions using the acquisition method. Goodwill is measured at the acquisition date as the excess of the purchase price over the fair value of the assets acquired and liabilities assumed. Significant estimates and assumptions are made by management to value such assets and liabilities. Although the Company believes that those estimates and assumptions are reasonable and appropriate, they are inherently uncertain and subject to refinement. Additional information related to the acquisition date fair value of acquired assets and assumed liabilities obtained during the measurement period, not to exceed one year, may result in changes to the recorded values of such assets and liabilities, resulting in an offsetting adjustment to the goodwill associated with the business acquired. Uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluate these estimates and assumptions quarterly. The Company will record any adjustments to its preliminary estimates to goodwill provided that the Company is within the one year measurement period. Any contingent consideration payable is recognized at fair value at the acquisition date. Liability-classified contingent consideration is remeasured each reporting period with changes in fair value recognized in earnings until the contingent consideration is settled. Acquisition related costs incurred in connection with a business combination, other than those associated with the issuance of debt or equity securities, are expensed as incurred. Goodwill, Intangible Assets and Impairment Assessment— Goodwill represents the excess of the purchase price over the fair value of the assets acquired and liabilities assumed, if any, in a business combination, and is allocated to the Company's single reporting unit. The Company evaluates goodwill for impairment on an annual basis as of May 1st or more frequently if it believes impairment indicators exist. Goodwill is tested for impairment by comparing the reporting unit's carrying value, including goodwill, to the fair value of the reporting unit. The Company operates under one reporting unit and for its annual goodwill impairment test, it determines the fair value of its reporting unit based on its enterprise value. The Company may elect to utilize a qualitative assessment to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying value. If, after assessing the qualitative factors, the Company determines that it is more likely than not that the fair value of its reporting unit is less than its carrying value, the two-step impairment analysis will be performed. In the first step, to identify a potential impairment, the Company compares the fair value of its reporting unit with its carrying amount. If the carrying value of the reporting unit exceeds its fair value, the second step would need to be performed. In the second step, the Company compares the implied fair value of the reporting unit with its carrying amount. Any excess of the reporting unit carrying value over the respective implied fair value is recognized as an impairment loss. Recently Adopted Accounting Pronouncement — In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Stock Compensation, which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 (i) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (ii) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (iii) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (iv) modifies statutory withholding tax requirements and (v) provides for a policy election to account for forfeitures as they occur. The Company early adopted ASU 2016-09 during the three months ended October 31, 2016. As a result of the adoption of ASU 2016-09, the Company recorded excess tax benefits prospectively in its provision for income taxes. Upon adoption, the Company recognized the previously unrecognized foreign excess tax benefits, which resulted in a cumulative effect adjustment of $0.1 million that reduced its accumulated deficit and increased its foreign deferred tax assets, using a modified retrospective transition method. The previously unrecognized U.S. excess tax benefits were recorded as a deferred tax asset, which was fully offset by a valuation allowance resulting in no impact to the accumulated deficit. Additionally, the Company elected to account for forfeitures as they occur using a modified retrospective transition method, which requires the Company to record cumulative-effect adjustment to accumulated deficit, and determined that the cumulative impact was immaterial. The Company presents its excess tax benefits as a component of operating cash flows rather than financing cash flows on a prospective basis. Recently Issued and Not Yet Adopted Accounting Pronouncements — In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) to clarify the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted under certain circumstances. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. An impairment charge will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for the Company beginning August 1, 2020, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. As the Company evaluates goodwill for impairment on an annual basis as of May 1st, the Company plans to early adopt ASU 2017-04 in fiscal 2017 and the Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 will require the Company to present the change in the amounts described as restricted cash or restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for the Company beginning August 1, 2018, with early adoption permitted. The Company does not believe that adoption of this ASU will have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 will require the Company to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for the Company beginning August 1, 2018, with early adoption permitted. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for the Company beginning August 1, 2018. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which requires recognition of right-to-use lease assets and lease liabilities for all leases (with the exception of short-term leases) on the balance sheet of lessees. ASU 2016-02 is effective for the Company beginning August 1, 2019, including interim periods within those fiscal years, with early adoption permitted. This new standard requires a modified retrospective transition approach and provides certain optional transition relief. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The FASB has issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The new standard will be effective for the Company beginning August 1, 2018, and adoption as of the original effective date of August 1, 2017 is permitted. The Company is currently evaluating early adoption of the standard, as well as the method of adoption. The Company's ability to early adopt is dependent on system readiness, and the completion of its analysis of information necessary to restate prior period financial statements if the full retrospective method is utilized. While the Company is continuing to assess all potential impacts of the standard, it currently believes the most significant impact relates to the timing of revenue recognition for certain software licenses sold with post contract support ("PCS") for which it does not have vendor-specific objective evidence of fair value ("VSOE") under current guidance. Under the new standard the requirement to have VSOE for undelivered elements is eliminated and the Company will recognize revenue for such software licenses upon transfer of control to its customers. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Apr. 30, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Calm Acquisition On August 22, 2016, the Company completed the acquisition of all outstanding shares of Calm, a company based in Singapore which specializes in container and DevOps automation, for an aggregate purchase price of $7.7 million , net of cash acquired (the “Calm Acquisition”). Consideration consisted of 528,517 shares of the Company’s common stock and $1.4 million of cash. The preliminary purchase price allocation includes $ 4.8 million of goodwill and $ 4.0 million of identifiable intangible assets, which primarily consist of developed technology, with an expected useful life of approximately 4.8 years . Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired, and is not expected to be deductible for income tax purposes. The goodwill in this transaction is primarily attributable to the acquired workforce and expected operating synergies. The Company incurred approximately $0.6 million of acquisition costs related to the Calm Acquisition. The results of operations of Calm are included in the results of the Company beginning on the date the acquisition was completed. Actual and pro forma results of operations have not been presented as the total amounts of revenue and net income are not material to the Company's consolidated results for the nine months ended April 30, 2017. PernixData Acquisition On September 6, 2016, the Company completed the acquisition of PernixData, a company based in the U.S., which specializes in scale-out data acceleration and analytics, for an aggregate purchase price of $23.0 million (the "PernixData Acquisition"). Total consideration consisted of 1,711,019 shares of the Company’s common stock and contingent consideration. Total potential contingent payments amount to $19.0 million , which may be payable over the next three years upon the achievement of certain operating milestones. Up to $7.5 million of the contingent payments are deemed to be part of the purchase price, which may be limited based on certain closing conditions, including PernixData's working capital upon completion of the acquisition. Up to $11.5 million of the payments also require future services to be provided to the Company by the related employees and will be recorded as compensation expense over the service period. The fair value of the contingent consideration considered to be part of the purchase price was $2.4 million as of the acquisition date, and is net of expected limitations of approximately $1.8 million due to closing conditions. The Company incurred approximately $0.7 million of acquisition costs related to the PernixData Acquisition. As of the date of the PernixData Acquisition, the preliminary purchase price allocation was as follows (in thousands): Cash and cash equivalents $ 1,051 Accounts receivable 718 Goodwill 11,817 Intangible assets 24,270 Other assets 761 Deferred revenue (6,007 ) Debt (7,124 ) Other liabilities (2,479 ) Total $ 23,007 Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is not expected to be deductible for income tax purposes. The goodwill in this transaction is primarily attributable to the acquired workforce and expected operating synergies. The acquired identifiable intangible assets consist of (in thousands, except estimated useful life): Amount Estimated Useful Life (in years) In-process R&D $ 16,100 — Developed technology 3,570 5 Customer relationships 4,600 6 $ 24,270 In-process R&D will be tested for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Once the in-process R&D is completed, the Company will determine a useful life of the asset resulting from the completed in-process R&D and will begin amortizing the asset over its estimated useful life. Once completed, the useful life of the in-process R&D is expected to be approximately 5 to 7 years. Unaudited Pro Forma Combined Consolidated Financial Information —The following unaudited pro forma combined consolidated financial information summarizes the combined results of operations of the Company and PernixData as though the PernixData Acquisition occurred on August 1, 2015. The unaudited pro forma combined consolidated financial information for all periods presented also included the business combination accounting effects resulting from this acquisition, including amortization charges from acquired intangible assets. The results of operations of PernixData are included in the results of the Company beginning on the date of the acquisition, and are not material. The unaudited pro forma combined consolidated financial information is as follows (in thousands, except per share data): Nine Months Ended 2016 2017 Revenue $ 312,493 $ 541,579 Net loss $ (141,281 ) $ (367,764 ) Basic and diluted net loss per share $ (3.12 ) $ (3.03 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The fair value of the Company’s financial assets and liabilities measured on a recurring basis is as follows (in thousands): As of July 31, 2016 Level I Level II Level III Total Financial Assets: Cash equivalents: Money market funds $ 47,305 $ — $ — $ 47,305 Commercial paper — 4,999 — 4,999 Short-term investments: Corporate bonds — 64,360 — 64,360 Commercial paper — 21,631 — 21,631 Total measured at fair value 47,305 90,990 — 138,295 Cash 46,905 Total cash, cash equivalents and short-term investments $ 185,200 Financial Liabilities: Convertible preferred stock warrant liability $ — $ — $ 9,679 $ 9,679 As of April 30, 2017 Level I Level II Level III Total Financial Assets: Cash equivalents: Money market funds $ 78,795 $ — $ — $ 78,795 Commercial paper — 49,690 — 49,690 Short-term investments: Corporate bonds — 100,774 — 100,774 Commercial paper — 38,810 — 38,810 U.S. government securities — 9,987 — 9,987 Total measured at fair value $ 78,795 $ 199,261 $ — 278,056 Cash 72,289 Total cash, cash equivalents and short-term investments $ 350,345 Financial Liabilities: Contingent consideration $ — $ — $ 2,547 $ 2,547 A summary of the changes in the fair value of the Company’s convertible preferred stock warrant liability is as follows (in thousands): Nine Months Ended 2016 2017 Convertible preferred stock warrant liability—beginning balance $ 11,683 $ 9,679 Change in fair value* (567 ) 21,133 Reclassification of unexercised warrants to additional paid-in capital upon the IPO — (30,812 ) Convertible preferred stock warrant liability—ending balance $ 11,116 $ — ______________ * Recorded in the consolidated statements of operations within other income (expense)—net. A summary of the changes in the fair value of the Company’s contingent consideration is as follows (in thousands): Nine Months Ended April 30, 2017 Contingent consideration—beginning balance $ — Assumed in the PernixData Acquisition 2,371 Change in fair value* 176 Contingent consideration—ending balance $ 2,547 ______________ * Recorded in the consolidated statements of operations within general and administrative expenses The Company remeasures the fair value of its Level 3 contingent consideration liability using the Monte Carlo simulation on projected future payments. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 9 Months Ended |
Apr. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Short-Term Investments —The amortized cost of the Company’s short-term investments approximate their fair value. As of July 31, 2016 and April 30, 2017 , unrealized gains or losses from the Company’s short-term investments were immaterial and there were no securities in an unrealized loss position for more than 12 months. The following table summarizes the estimated fair value of the Company’s investments in marketable debt securities, by the contractual maturity date (in thousands): As of April 30, 2017 Due within 1 year $ 126,291 Due after 1 year through 3 years 23,280 Total $ 149,571 Property and Equipment—Net —Property and equipment, net consists of the following (in thousands): Estimated (In months) As of July 31, 2016 April 30, Computer, production, engineering and other equipment 36 $ 54,161 $ 78,616 Demonstration units 12 33,184 41,882 Leasehold improvements * 6,619 8,773 Furniture and fixtures 60 3,641 4,296 Total property and equipment—gross 97,605 133,567 Less accumulated depreciation and amortization (55,387 ) (80,022 ) Total property and equipment—net $ 42,218 $ 53,545 ______________ * Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term. Depreciation and amortization expense related to the Company's property and equipment was $7.2 million and $19.0 million , respectively, for the three and nine months ended April 30, 2016. Depreciation and amortization expense related to the Company's property and equipment was $9.2 million and $26.3 million , respectively, for the three and nine months ended April 30, 2017. Intangible Assets—Net —Intangible assets, net consists of the following (in thousands): As of April 30, 2017 Indefinite-lived intangible asset: In-process R&D $ 16,100 Finite-lived intangible assets: Developed technology 7,300 Customer relationships 4,830 Total finite-lived intangible assets, gross 12,130 Total intangible assets, gross 28,230 Less: Accumulated amortization of developed technology (665 ) Accumulated amortization of customer relationships (956 ) Total accumulated amortization (1,621 ) Intangible assets, net $ 26,609 Changes in the net book value of intangible assets are as follows (in thousands): Nine Months Ended Intangible assets, net—beginning balance $ — Acquired in the Calm Acquisition 3,960 Acquired in the PernixData Acquisition 24,270 Amortization of intangible assets * (1,621 ) Intangible assets, net—ending balance $ 26,609 ______________ * Represents amortization expense of finite-lived intangible assets recorded in the condensed consolidated statement of operations during the period within product cost of revenue and sales and marketing expenses. Estimated future amortization expense of finite-lived intangible assets is as follows: Year Ending July 31: (In thousands) 2017 (remaining three months) $ 607 2018 2,220 2019 2,201 2020 2,201 2021 2,201 Thereafter 1,079 Total $ 10,509 Accrued Compensation and Benefits —Accrued compensation and benefits consists of the following (in thousands): As of July 31, 2016 April 30, Accrued commissions $ 14,203 $ 12,979 Accrued vacation 3,490 6,172 Contributions to ESPP withheld — 3,773 Accrued bonus 3,592 4,709 Payroll taxes payable 1,234 24,198 Other 2,028 5,003 Total accrued compensation and benefits $ 24,547 $ 56,834 Payroll taxes payable as of April 30, 2017 included $21.9 million related to required tax withholdings on RSU releases made at the end of the three months ended April 30, 2017. As the money to settle these withholding taxes had not been received from the Company's third-party transfer agent as of April 30, 2017, there was a corresponding receivable recognized and shown as part of prepaid expenses and other current assets as of April 30, 2017, and thus had no impact on the Company's total cash from operating activities. Accrued Expenses and Other Liabilities —Accrued expenses and other liabilities consists of the following (in thousands): As of July 31, 2016 April 30, Accrued professional services $ 3,585 $ 4,181 Income taxes payable 1,417 3,446 Other 535 1,391 Total accrued expenses and other liabilities $ 5,537 $ 9,018 |
DEBT
DEBT | 9 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Senior Notes —In April 2016, the Company issued an aggregate principal amount of $75.0 million of senior notes due on April 15, 2019 (the “Senior Notes”) to a lender. The Senior Notes contained a guaranteed minimum return to the holder of the Senior Notes (the “Guaranteed Minimum Return”). In September 2016, the Company fully repaid all outstanding principal balance of the Senior Notes and incurred approximately $3.3 million of loss on debt extinguishment, which consisted of $1.7 million of unamortized debt issuance costs and $1.6 million of debt extinguishment costs primarily related to the Guaranteed Minimum Return. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Apr. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases —The Company has commitments for future payments related to its office facility leases and other contractual obligations. The Company leases its office facilities under non-cancelable operating lease agreements expiring through the year ending 2024. Certain of these lease agreements have free or escalating rent payments. The Company recognizes rent expense under such agreements on a straight-line basis over the lease term, with any free or escalating rent payments amortized as a reduction or addition of rent expense over the lease term. Future minimum payments due under operating leases as of April 30, 2017 are as follows: Year Ending July 31: (In thousands) 2017 (remaining three months) $ 3,073 2018 12,560 2019 11,832 2020 10,454 2021 7,597 Thereafter 2,934 Total $ 48,450 Rent expense incurred under operating leases was $2.2 million and $5.1 million for the three and nine months ended April 30, 2016 , respectively. Rent expense incurred under operating leases was $3.0 million and $8.8 million for the three and nine months ended April 30, 2017 , respectively. Purchase Commitments —In the normal course of business, the Company makes commitments with its third-party hardware contract manufacturers to manufacture its inventories and non-standard components based on its forecasts. These commitments consist of obligations for on-hand inventories and non-cancellable purchase orders for non-standard components. The Company records a charge for firm, non-cancellable and unconditional purchase commitments with its third-party hardware contract manufacturers for non-standard components when and if quantities exceed its future demand forecasts through a charge to cost of product sales. As of April 30, 2017 , the Company had approximately $23.8 million of non-cancellable purchase commitments pertaining to its normal operations, and approximately $58.3 million of other purchase obligations with its contract manufacturers. Guarantees and Indemnification — The Company has entered into agreements with some of its Partners and customers that contain indemnification provisions in the event of claims alleging that the Company’s products infringe the intellectual property rights of a third party. The scope of such indemnification varies, and may include, in certain cases, the ability to cure the indemnification by modifying or replacing the product at the Company’s own expense, requiring the return and refund of the infringing product, procuring the right for the partner and/or customer to continue to use or distribute the product, as applicable, and/or defending the partner or customer against and paying any damages from third party actions based upon claims of infringement. Other guarantees or indemnification arrangements include guarantees of product and service performance. The fair value of liabilities related to indemnifications and guarantee provisions are not material and have not had any material impact on the consolidated financial statements to date. In addition, the Company’s amended and restated certificate of incorporation and amended and restated bylaws provide that the Company will indemnify its directors and officers and may indemnify its employees and other agents to the fullest extent permitted by the Delaware General Corporation Law against certain liabilities. The Company has also entered into indemnification agreements with its directors, officers and certain employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, employees or agents of the Company or another entity for which they are serving in such role at the Company’s request. The Company has also succeeded to obligations requiring it to indemnify certain former officers, directors, and employees of acquired companies as a result of the acquisition of such companies. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its current and former directors and officers, and former directors and officers of acquired companies, in certain circumstances. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. Historically, the Company has not incurred material costs as a result of obligations under these agreements and it has not accrued any material liabilities related to such indemnification obligations in its consolidated financial statements. Litigation — From time to time, the Company may become involved in various litigation and administrative proceedings relating to claims arising from its operations in the normal course of business. Management is not currently aware of any matters that may have a material adverse impact on the Company’s business, financial position, results of operations or cash flows nor has the Company made any reserves for damages. |
CONVERTIBLE PREFERRED STOCK WAR
CONVERTIBLE PREFERRED STOCK WARRANTS | 9 Months Ended |
Apr. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
CONVERTIBLE PREFERRED STOCK WARRANTS | CONVERTIBLE PREFERRED STOCK WARRANTS The Convertible Preferred Stock Warrants outstanding prior to the IPO were as follows (in thousands, except for share and per share amounts): Fair Value as of Class of Shares Issuance Date Contractual Term Number of Exercise July 31, 2016 IPO Date(1) Series A warrants December 21, 2009 10 years 683,644 $ 0.234 $ 8,259 $ 25,883 Series A warrants May 10, 2010 10 years 85,450 $ 0.234 1,032 3,235 Series D warrants November 26, 2013 10 years 10,000 $ 7.289 77 308 Series D warrants December 12, 2013 7 years 45,000 $ 7.289 311 1,386 824,094 $ 9,679 (2) $ 30,812 ______________ (1) Immediately prior to the closing of the Company’s IPO. (2) Reflected in the consolidated balance sheets as convertible preferred stock warrant liability. Immediately prior to the closing of the Company’s IPO, all outstanding convertible preferred stock warrants automatically converted to common stock warrants, and then were reclassified as Class B common stock warrants. As a result of the automatic conversion of the convertible preferred stock warrants to Class B common stock warrants, the Company revalued the convertible preferred stock warrants as of the completion of the IPO and reclassified the outstanding preferred stock warrant liability balance to additional paid-in capital with no further remeasurements as the common stock warrants are now deemed permanent equity. During the three and nine months ended April 30, 2017 , a total of 17,090 and 789,914 Class B common stock warrants, respectively, were exercised. As a result, during the three and nine months ended April 30, 2017 , the Company issued a total of 17,090 and 775,554 shares of Class B common stock, respectively, as the contracts allow a net share settlement for Class B common stock. As of April 30, 2017 , there were 34,180 Class B common stock warrants outstanding. |
CONVERTIBLE PREFERRED STOCK
CONVERTIBLE PREFERRED STOCK | 9 Months Ended |
Apr. 30, 2017 | |
Temporary Equity Disclosure [Abstract] | |
CONVERTIBLE PREFERRED STOCK | CONVERTIBLE PREFERRED STOCK Series A Convertible Preferred Stock, Series B Convertible Preferred Stock, Series C Convertible Preferred Stock, Series D Convertible Preferred Stock and Series E Convertible Preferred Stock (collectively the “Convertible Preferred Stock”) outstanding consisted of the following as of July 31, 2016 and as of immediately prior to the automatic conversion of the Convertible Preferred Stock into Class B common stock: Shares Shares Aggregate (In thousands) Series A 28,165,300 27,396,198 $ 15,494 Series B 16,558,441 16,558,441 25,250 Series C 7,683,710 7,683,710 33,000 Series D 13,912,438 13,857,438 151,500 Series E 11,943,420 10,823,724 145,000 78,263,309 76,319,511 $ 370,244 Immediately prior to the closing of the Company’s IPO, all shares of the Company’s then-outstanding Convertible Preferred Stock, as shown in the table above, automatically converted on a one -for-one basis into an aggregate of 76,319,511 shares of common stock, which were then reclassified into Class B common stock. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Apr. 30, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Preferred Stock Immediately prior to the closing of the Company's IPO, the Company filed an Amended and Restated Certificate of Incorporation, which authorized the issuance of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the Company's Board of Directors (the "Board"). As of April 30, 2017 , there were 200,000,000 shares of preferred stock authorized with a par value of $0.000025 and no shares of preferred stock issued and outstanding. Common Stock In connection with the IPO, the Company established two classes of authorized common stock, Class A common stock and Class B common stock. All shares of common stock outstanding immediately prior to the IPO, including shares of common stock issued upon the conversion of the Convertible Preferred Stock, were converted into an equivalent number of shares of Class B common stock. As of April 30, 2017 , the Company had 1,000,000,000 shares of Class A common stock authorized with a par value of $0.000025 per share and 200,000,000 shares of Class B common stock authorized with a par value of $0.000025 per share. As of April 30, 2017 , 78,008,947 shares of Class A common stock were issued and outstanding and 73,106,394 shares of Class B common stock were issued and outstanding. Holders of Class A common stock are entitled to one vote for each share of Class A common stock held on all matters submitted to a vote of stockholders and holders of Class B common stock are entitled to ten votes for each share of Class B common stock held on all matters submitted to a vote of stockholders. Except with respect to voting, the rights of the holders of Class A and Class B common stock are identical. Shares of Class B common stock are voluntarily convertible into shares of Class A common stock at the option of the holder and generally automatically convert into shares of our Class A common stock upon a transfer. |
EQUITY AWARD PLANS
EQUITY AWARD PLANS | 9 Months Ended |
Apr. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY AWARD PLANS | EQUITY AWARD PLANS Stock Plans —In June 2010, the Company adopted the 2010 Stock Plan (“2010 Plan”), and in December 2011, the Company adopted the 2011 Stock Plan (“2011 Plan”). In December 2015, the Board adopted the 2016 Equity Incentive Plan (“2016 Plan” and together with the 2010 Plan and 2011 Plan, the “Stock Plans”), which was amended in September 2016. The Company’s stockholders approved the 2016 Plan in March 2016 and it became effective in connection with the Company’s IPO. As a result, upon the IPO, the Company ceased granting additional stock awards under the 2010 Plan and 2011 Plan and the 2010 Plan and 2011 Plan terminated. Any outstanding stock awards under the 2010 Plan and 2011 Plan will remain outstanding, subject to the terms of the applicable plan and award agreements, until such shares are issued under those stock awards, by exercise of stock options or settlement of RSUs, or until those stock awards become vested or expired by their terms. Under the 2016 Plan, the Company may grant incentive stock options (“ISO”), non-statutory stock options (“NSO”), restricted stock (“RS”), restricted stock units (“RSU”) and stock appreciation rights (“SAR”) to employees, directors and consultants. The Company has initially reserved 22,400,000 shares of the Company’s Class A common stock for issuance under the 2016 Plan. The number of shares of Class A common stock available for issuance under the 2016 Plan will also include an annual increase on the first day of each fiscal year beginning in fiscal year 2018, equal to the lesser of: 18,000,000 shares, 5% of the outstanding shares of classes of common stock as of the last day of the Company’s immediately preceding fiscal year, or such other amount as may be determined by the Board. In addition, up to a maximum of 38,667,284 shares of Class B common stock returned to the 2010 Plan and 2011 Plan as the result of expiration or termination of awards after the IPO will also become available for issuance under the 2016 Plan . As of April 30, 2017 , the Company had reserved a total of 81,873,371 shares for the issuance of equity awards under the Stock Plans, of which 15,177,347 shares were still available for grant. Restricted Stock Units Performance RSUs . The Company grants RSUs that contain both service and performance conditions to its executives and employees. Vesting of the Performance RSUs is subject to continuous service with the Company and satisfaction of certain liquidity events of the Company, including the expiration of a lock-up period established in connection with the IPO, or both certain liquidity events and specified performance targets (collectively, the “Performance RSUs”). While the Company recognizes cumulative stock-based compensation expense for the portion of the awards for which the service condition has been satisfied when it is probable that the performance conditions will be met, vesting and settlement of the Performance RSUs are subject to the performance conditions actually being met. During the three months ended October 31, 2016, the Company began to recognize Performance RSUs with liquidity event performance conditions as the satisfaction of the performance conditions for vesting became probable. The Company’s summary of Performance RSUs activity under the Stock Plans is as follows: Number of Grant Date Fair Value per Share Outstanding—July 31, 2016 12,265,369 $ 13.23 Granted 11,543,670 $ 21.91 Released (4,249,756 ) $ 16.30 Canceled/forfeited (617,159 ) $ 16.36 Outstanding—April 30, 2017 18,942,124 $ 17.76 Offer to Exchange Stock Options for RSUs (the “Tender Offer”). In July 2016, the Company approved a tender offer stock option exchange program under which outstanding employee stock options with exercise prices of $8.41 or greater per share could be exchanged for a specified number of Performance RSUs based on a predetermined exchange ratio granted with a new vesting period. As a result of the Tender Offer, on August 16, 2016, stock options to purchase 1,361,317 common shares were cancelled and, in exchange, the Company granted 911,489 Performance RSUs to eligible employees. The Tender Offer resulted in a total incremental stock-based compensation expense of approximately $3.4 million . Employee Stock Purchase Plan —In December 2015, the Board adopted the 2016 Employee Stock Purchase Plan, which was subsequently amended in January 2016 and September 2016 and approved by the Company’s stockholders in March 2016 (the “2016 ESPP”). The 2016 ESPP became effective in connection with the Company’s IPO. A total of 3,800,000 shares of Class A common stock were initially reserved for issuance under the 2016 ESPP. The number of shares of Class A common stock available for sale under the 2016 ESPP will also include an annual increase on the first day of each fiscal year beginning in fiscal 2018, equal to the lesser of: 3,800,000 shares, 1% of the outstanding shares of classes of common stock as of the last day of the Company’s immediately preceding fiscal year, or such other amount as may be determined by the Board. The 2016 ESPP allows eligible employees to purchase shares of the Company’s Class A common stock at a discount through payroll deductions of up to 15% of eligible compensation, subject to caps of $25,000 in any calendar year and 1,000 shares on any purchase date. The 2016 ESPP provides for 12 -month offering periods generally beginning March and September of each year, and each offering period consists of two six-month purchase periods. The initial offering period began in September 2016 and will end in September 2017. On each purchase date, participating employees will purchase Class A common stock at a price per share equal to 85% of the lesser of the fair market value of the Company’s Class A common stock on (i) the first trading day of the applicable offering period and (2) the last trading day of each purchase period in the applicable offering period. If the stock price of the Company's Class A common stock on any purchase date in an offering period is lower than the stock price on the enrollment date of that offering period, the offering period will immediately reset after the purchase of shares on such purchase date and automatically roll into a new offering period. For the first offering period, which began on September 30, 2016, the fair market value of the common stock used for the first offering period was $16 , the IPO price of the Company’s Class A common stock, and on April 5, 2017, 1,246,054 shares of common stock were purchased for an aggregate amount of $16.9 million . The Company uses the Black-Scholes option-pricing model to determine the fair value of shares purchased under the 2016 ESPP with the following weighted-average assumptions on the date of grant (on October 11, 2016 and April 5, 2017): Nine Months Ended Expected term (in years) 0.75 Risk-free interest rate 0.6 % Volatility 51.0 % Dividend yield — % Stock-Based Compensation —Total stock-based compensation expense recognized for stock awards in the consolidated statements of operations is as follows (in thousands): Three Months Ended Nine Months Ended 2016 2017 2016 2017 Cost of revenue: Product $ 98 $ 610 $ 311 $ 2,424 Support and other services 230 2,471 764 8,210 Sales and marketing 2,029 15,726 6,111 65,145 Research and development 1,519 27,041 4,760 89,826 General and administrative 1,168 4,503 3,434 28,081 Total stock-based compensation expense $ 5,044 $ 50,351 $ 15,380 $ 193,686 Total stock-based compensation expense recognized for stock awards in the consolidated statements of operations by type of awards is as follows (in thousands): Three Months Ended Nine Months Ended 2016 2017 2016 2017 RSUs * $ — $ 34,875 $ — $ 153,883 Stock options * 5,044 5,308 15,380 16,321 ESPP — 10,168 — 23,482 Total stock-based compensation expense $ 5,044 $ 50,351 $ 15,380 $ 193,686 _____________ * Includes stock-compensation expense related to stock awards with performance conditions, which vesting was deemed probable during the nine months ended April 30, 2017 . As of April 30, 2017 , unrecognized stock-based compensation expense related to the outstanding stock awards was approximately $292.6 million and is expected to be recognized over a weighted-average period of approximately 2.2 years. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES During the nine months ended April 30, 2017 , the income tax provision of $3.2 million primarily consisted of foreign taxes on the Company's international operations and U.S. state income taxes, offset by the partial release of $1.5 million of the U.S. valuation allowance in connection with the PernixData Acquisition and tax benefit related to the early adoption of ASU 2016-09. The net deferred tax liability recorded in connection with the PernixData Acquisition provided an additional source of taxable income to support the realizability of the pre-existing deferred tax assets and as a result, the Company released a portion of the U.S. valuation allowance. During the three months ended April 30, 2017 , the income tax provision of $2.6 million primarily consisted of foreign taxes on our international operations and state income taxes in the U.S. During the three and nine months ended April 30, 2016 , the income tax provision of $0.0 million and $1.2 million , respectively, primarily consisted of foreign taxes on our international operations and state income taxes in the U.S., and was offset by a tax benefit related to the settlement of an uncertain tax position. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Apr. 30, 2017 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The computation of basic and diluted net loss per share is as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2016 2017 2016 2017 Numerator: Net loss $ (46,820 ) $ (111,977 ) $ (118,570 ) $ (367,358 ) Denominator: Weighted-average shares—basic and diluted 44,441,954 144,054,432 43,643,451 119,851,586 Net loss per share attributable to common stockholders—basic and diluted $ (1.05 ) $ (0.78 ) $ (2.72 ) $ (3.07 ) The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive are as follows: Three and Nine Months Ended 2016 2017 Stock awards 37,614,944 41,204,043 Common stock subject to repurchase 1,227,131 383,736 Common stock warrants — 34,180 Convertible preferred stock 76,319,511 — Convertible preferred stock warrants 824,094 — Total 115,985,680 41,621,959 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s chief operating decision maker is a group which is comprised of its Chief Executive Officer, Chief Financial Officer and President. This group reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has a single reportable segment. The following table sets forth revenue by geographic area based on bill-to location (in thousands): Three Months Ended Nine Months Ended 2016 2017 2016 2017 U.S. $ 75,201 $ 112,218 $ 193,649 $ 317,262 Europe, the Middle East and Africa 19,234 38,023 56,577 95,543 Asia-Pacific 16,278 35,508 41,113 101,798 Other Americas 3,977 6,014 13,804 26,164 Total revenue $ 114,690 $ 191,763 $ 305,143 $ 540,767 As of July 31, 2016 and April 30, 2017 , $30.0 million and $59.3 million , respectively, of the Company’s long-lived assets, net were located in the U.S. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Apr. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company enters into various transactions with its related parties in the normal course of business. During the three months ended April 30, 2016 and 2017 , the Company’s purchases of goods or services from related parties totaled $0.0 million and $0.2 million , respectively. During the nine months ended April 30, 2016 and 2017 , the Company’s purchases of goods or services from related parties totaled $0.7 million and $0.9 million , respectively. Amounts payable to related parties as of July 31, 2016 and April 30, 2017 were immaterial. Revenue from related parties for the nine months ended April 30, 2016 and 2017 were $0.5 million and $0.2 million , respectively, and for the three months ended April 30, 2016 and 2017 were $0.2 million and $0.1 million , respectively. Amounts receivable from related parties as of July 31, 2016 and April 30, 2017 were immaterial. In connection with the PernixData Acquisition (see Note 3), entities affiliated with Lightspeed Venture Partners, which owned approximately 36.7% of the Company’s outstanding Convertible Preferred Stock as of July 31, 2016, owned approximately 26.4% of the outstanding capital stock of PernixData immediately prior to the completion of the PernixData Acquisition. These entities received 625,478 shares of the Company’s common stock in the PernixData Acquisition, as well as the right to receive up to approximately $2.7 million in cash in the event the contingent consideration becomes payable. Two members of the Board are affiliated with Lightspeed Venture Partners. |
BASIS OF PRESENTATION AND SUM21
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Significant Accounting Policies | Principles of Consolidation and Significant Accounting Policies —The condensed consolidated financial statements, which include the accounts of Nutanix, Inc. and its wholly-owned subsidiaries including the acquisitions of Calm and PernixData, have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in our final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the Securities and Exchange Commission (“SEC”) on September 28, 2016. |
Use of Estimates | Use of Estimates —The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include, but are not limited to, the best estimate of selling prices for products and related support; determination of fair value of common stock and convertible preferred stock, fair value of stock options and convertible preferred stock warrant liability; accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions; warranty liability; commissions expense; fair value of assets and liabilities acquired in business combinations; and contingencies and litigation. Management evaluates these estimates and assumptions on an ongoing basis using historical experience and other factors and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could materially differ from those estimates and assumptions. |
Concentration Risk | Concentration Risk: Concentration of Revenue and Accounts Receivable —The Company sells its products primarily through Partners, including distributors and resellers, and occasionally directly to end-customers. |
Business Combination | Business Combinations —The Company accounts for its acquisitions using the acquisition method. Goodwill is measured at the acquisition date as the excess of the purchase price over the fair value of the assets acquired and liabilities assumed. Significant estimates and assumptions are made by management to value such assets and liabilities. Although the Company believes that those estimates and assumptions are reasonable and appropriate, they are inherently uncertain and subject to refinement. Additional information related to the acquisition date fair value of acquired assets and assumed liabilities obtained during the measurement period, not to exceed one year, may result in changes to the recorded values of such assets and liabilities, resulting in an offsetting adjustment to the goodwill associated with the business acquired. Uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluate these estimates and assumptions quarterly. The Company will record any adjustments to its preliminary estimates to goodwill provided that the Company is within the one year measurement period. Any contingent consideration payable is recognized at fair value at the acquisition date. Liability-classified contingent consideration is remeasured each reporting period with changes in fair value recognized in earnings until the contingent consideration is settled. Acquisition related costs incurred in connection with a business combination, other than those associated with the issuance of debt or equity securities, are expensed as incurred. |
Goodwill and Intangible Asset Assessment | Goodwill, Intangible Assets and Impairment Assessment— Goodwill represents the excess of the purchase price over the fair value of the assets acquired and liabilities assumed, if any, in a business combination, and is allocated to the Company's single reporting unit. The Company evaluates goodwill for impairment on an annual basis as of May 1st or more frequently if it believes impairment indicators exist. Goodwill is tested for impairment by comparing the reporting unit's carrying value, including goodwill, to the fair value of the reporting unit. The Company operates under one reporting unit and for its annual goodwill impairment test, it determines the fair value of its reporting unit based on its enterprise value. The Company may elect to utilize a qualitative assessment to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying value. If, after assessing the qualitative factors, the Company determines that it is more likely than not that the fair value of its reporting unit is less than its carrying value, the two-step impairment analysis will be performed. In the first step, to identify a potential impairment, the Company compares the fair value of its reporting unit with its carrying amount. If the carrying value of the reporting unit exceeds its fair value, the second step would need to be performed. In the second step, the Company compares the implied fair value of the reporting unit with its carrying amount. Any excess of the reporting unit carrying value over the respective implied fair value is recognized as an impairment loss. |
Recently Issued and Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncement — In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Stock Compensation, which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 (i) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (ii) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (iii) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (iv) modifies statutory withholding tax requirements and (v) provides for a policy election to account for forfeitures as they occur. The Company early adopted ASU 2016-09 during the three months ended October 31, 2016. As a result of the adoption of ASU 2016-09, the Company recorded excess tax benefits prospectively in its provision for income taxes. Upon adoption, the Company recognized the previously unrecognized foreign excess tax benefits, which resulted in a cumulative effect adjustment of $0.1 million that reduced its accumulated deficit and increased its foreign deferred tax assets, using a modified retrospective transition method. The previously unrecognized U.S. excess tax benefits were recorded as a deferred tax asset, which was fully offset by a valuation allowance resulting in no impact to the accumulated deficit. Additionally, the Company elected to account for forfeitures as they occur using a modified retrospective transition method, which requires the Company to record cumulative-effect adjustment to accumulated deficit, and determined that the cumulative impact was immaterial. The Company presents its excess tax benefits as a component of operating cash flows rather than financing cash flows on a prospective basis. Recently Issued and Not Yet Adopted Accounting Pronouncements — In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) to clarify the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted under certain circumstances. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. An impairment charge will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for the Company beginning August 1, 2020, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. As the Company evaluates goodwill for impairment on an annual basis as of May 1st, the Company plans to early adopt ASU 2017-04 in fiscal 2017 and the Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 will require the Company to present the change in the amounts described as restricted cash or restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for the Company beginning August 1, 2018, with early adoption permitted. The Company does not believe that adoption of this ASU will have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 will require the Company to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for the Company beginning August 1, 2018, with early adoption permitted. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for the Company beginning August 1, 2018. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which requires recognition of right-to-use lease assets and lease liabilities for all leases (with the exception of short-term leases) on the balance sheet of lessees. ASU 2016-02 is effective for the Company beginning August 1, 2019, including interim periods within those fiscal years, with early adoption permitted. This new standard requires a modified retrospective transition approach and provides certain optional transition relief. The Company is currently evaluating the effect the adoption of this guidance will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The FASB has issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The new standard will be effective for the Company beginning August 1, 2018, and adoption as of the original effective date of August 1, 2017 is permitted. The Company is currently evaluating early adoption of the standard, as well as the method of adoption. The Company's ability to early adopt is dependent on system readiness, and the completion of its analysis of information necessary to restate prior period financial statements if the full retrospective method is utilized. While the Company is continuing to assess all potential impacts of the standard, it currently believes the most significant impact relates to the timing of revenue recognition for certain software licenses sold with post contract support ("PCS") for which it does not have vendor-specific objective evidence of fair value ("VSOE") under current guidance. Under the new standard the requirement to have VSOE for undelivered elements is eliminated and the Company will recognize revenue for such software licenses upon transfer of control to its customers. |
BASIS OF PRESENTATION AND SUM22
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Revenue and Accounts Receivable | For each significant Partner, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows: Revenue Accounts Receivable as of Three Months Ended Nine Months Ended Customers 2016 2017 2016 2017 July 31, 2016 April 30, Partner A 15 % * 16 % 10 % * * Partner B 21 % 18 % 20 % 20 % 17 % 12 % Partner C 16 % 19 % 13 % 17 % 12 % 13 % Partner D * * * * 23 % * Partner E 10 % * 11 % * 11 % 10 % Partner F 12 % 14 % 16 % 13 % * 12 % ___________________ * Less than 10% |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Purchase Price Allocation | As of the date of the PernixData Acquisition, the preliminary purchase price allocation was as follows (in thousands): Cash and cash equivalents $ 1,051 Accounts receivable 718 Goodwill 11,817 Intangible assets 24,270 Other assets 761 Deferred revenue (6,007 ) Debt (7,124 ) Other liabilities (2,479 ) Total $ 23,007 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The acquired identifiable intangible assets consist of (in thousands, except estimated useful life): Amount Estimated Useful Life (in years) In-process R&D $ 16,100 — Developed technology 3,570 5 Customer relationships 4,600 6 $ 24,270 |
Schedule of Pro Forma Combined Consolidated Financial Information | The unaudited pro forma combined consolidated financial information is as follows (in thousands, except per share data): Nine Months Ended 2016 2017 Revenue $ 312,493 $ 541,579 Net loss $ (141,281 ) $ (367,764 ) Basic and diluted net loss per share $ (3.12 ) $ (3.03 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured on Recurring Basis | The fair value of the Company’s financial assets and liabilities measured on a recurring basis is as follows (in thousands): As of July 31, 2016 Level I Level II Level III Total Financial Assets: Cash equivalents: Money market funds $ 47,305 $ — $ — $ 47,305 Commercial paper — 4,999 — 4,999 Short-term investments: Corporate bonds — 64,360 — 64,360 Commercial paper — 21,631 — 21,631 Total measured at fair value 47,305 90,990 — 138,295 Cash 46,905 Total cash, cash equivalents and short-term investments $ 185,200 Financial Liabilities: Convertible preferred stock warrant liability $ — $ — $ 9,679 $ 9,679 As of April 30, 2017 Level I Level II Level III Total Financial Assets: Cash equivalents: Money market funds $ 78,795 $ — $ — $ 78,795 Commercial paper — 49,690 — 49,690 Short-term investments: Corporate bonds — 100,774 — 100,774 Commercial paper — 38,810 — 38,810 U.S. government securities — 9,987 — 9,987 Total measured at fair value $ 78,795 $ 199,261 $ — 278,056 Cash 72,289 Total cash, cash equivalents and short-term investments $ 350,345 Financial Liabilities: Contingent consideration $ — $ — $ 2,547 $ 2,547 |
Summary of Changes in Fair Value of Convertible Preferred Stock Warrant Liability | A summary of the changes in the fair value of the Company’s convertible preferred stock warrant liability is as follows (in thousands): Nine Months Ended 2016 2017 Convertible preferred stock warrant liability—beginning balance $ 11,683 $ 9,679 Change in fair value* (567 ) 21,133 Reclassification of unexercised warrants to additional paid-in capital upon the IPO — (30,812 ) Convertible preferred stock warrant liability—ending balance $ 11,116 $ — ______________ * Recorded in the consolidated statements of operations within other income (expense)—net. A summary of the changes in the fair value of the Company’s contingent consideration is as follows (in thousands): Nine Months Ended April 30, 2017 Contingent consideration—beginning balance $ — Assumed in the PernixData Acquisition 2,371 Change in fair value* 176 Contingent consideration—ending balance $ 2,547 ______________ * Recorded in the consolidated statements of operations within general and administrative expenses |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Investments in Marketable Debt Securities, by Contractual Maturity Date | The following table summarizes the estimated fair value of the Company’s investments in marketable debt securities, by the contractual maturity date (in thousands): As of April 30, 2017 Due within 1 year $ 126,291 Due after 1 year through 3 years 23,280 Total $ 149,571 |
Schedule of Property, Plant and Equipment | Property and Equipment—Net —Property and equipment, net consists of the following (in thousands): Estimated (In months) As of July 31, 2016 April 30, Computer, production, engineering and other equipment 36 $ 54,161 $ 78,616 Demonstration units 12 33,184 41,882 Leasehold improvements * 6,619 8,773 Furniture and fixtures 60 3,641 4,296 Total property and equipment—gross 97,605 133,567 Less accumulated depreciation and amortization (55,387 ) (80,022 ) Total property and equipment—net $ 42,218 $ 53,545 ______________ * Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term. |
Schedule of Finite-Lived Intangible Assets | Intangible Assets—Net —Intangible assets, net consists of the following (in thousands): As of April 30, 2017 Indefinite-lived intangible asset: In-process R&D $ 16,100 Finite-lived intangible assets: Developed technology 7,300 Customer relationships 4,830 Total finite-lived intangible assets, gross 12,130 Total intangible assets, gross 28,230 Less: Accumulated amortization of developed technology (665 ) Accumulated amortization of customer relationships (956 ) Total accumulated amortization (1,621 ) Intangible assets, net $ 26,609 Changes in the net book value of intangible assets are as follows (in thousands): Nine Months Ended Intangible assets, net—beginning balance $ — Acquired in the Calm Acquisition 3,960 Acquired in the PernixData Acquisition 24,270 Amortization of intangible assets * (1,621 ) Intangible assets, net—ending balance $ 26,609 ______________ * Represents amortization expense of finite-lived intangible assets recorded in the condensed consolidated statement of operations during the period within product cost of revenue and sales and marketing expenses. |
Schedule of Indefinite-Lived Intangible Assets | Intangible Assets—Net —Intangible assets, net consists of the following (in thousands): As of April 30, 2017 Indefinite-lived intangible asset: In-process R&D $ 16,100 Finite-lived intangible assets: Developed technology 7,300 Customer relationships 4,830 Total finite-lived intangible assets, gross 12,130 Total intangible assets, gross 28,230 Less: Accumulated amortization of developed technology (665 ) Accumulated amortization of customer relationships (956 ) Total accumulated amortization (1,621 ) Intangible assets, net $ 26,609 Changes in the net book value of intangible assets are as follows (in thousands): Nine Months Ended Intangible assets, net—beginning balance $ — Acquired in the Calm Acquisition 3,960 Acquired in the PernixData Acquisition 24,270 Amortization of intangible assets * (1,621 ) Intangible assets, net—ending balance $ 26,609 ______________ * Represents amortization expense of finite-lived intangible assets recorded in the condensed consolidated statement of operations during the period within product cost of revenue and sales and marketing expenses. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expense of finite-lived intangible assets is as follows: Year Ending July 31: (In thousands) 2017 (remaining three months) $ 607 2018 2,220 2019 2,201 2020 2,201 2021 2,201 Thereafter 1,079 Total $ 10,509 |
Schedule of Accrued Liabilities | Accrued Compensation and Benefits —Accrued compensation and benefits consists of the following (in thousands): As of July 31, 2016 April 30, Accrued commissions $ 14,203 $ 12,979 Accrued vacation 3,490 6,172 Contributions to ESPP withheld — 3,773 Accrued bonus 3,592 4,709 Payroll taxes payable 1,234 24,198 Other 2,028 5,003 Total accrued compensation and benefits $ 24,547 $ 56,834 Payroll taxes payable as of April 30, 2017 included $21.9 million related to required tax withholdings on RSU releases made at the end of the three months ended April 30, 2017. As the money to settle these withholding taxes had not been received from the Company's third-party transfer agent as of April 30, 2017, there was a corresponding receivable recognized and shown as part of prepaid expenses and other current assets as of April 30, 2017, and thus had no impact on the Company's total cash from operating activities. Accrued Expenses and Other Liabilities —Accrued expenses and other liabilities consists of the following (in thousands): As of July 31, 2016 April 30, Accrued professional services $ 3,585 $ 4,181 Income taxes payable 1,417 3,446 Other 535 1,391 Total accrued expenses and other liabilities $ 5,537 $ 9,018 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Due Under Operating Leases | Future minimum payments due under operating leases as of April 30, 2017 are as follows: Year Ending July 31: (In thousands) 2017 (remaining three months) $ 3,073 2018 12,560 2019 11,832 2020 10,454 2021 7,597 Thereafter 2,934 Total $ 48,450 |
CONVERTIBLE PREFERRED STOCK W27
CONVERTIBLE PREFERRED STOCK WARRANTS (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Convertible Preferred Stock Warrants | The Convertible Preferred Stock Warrants outstanding prior to the IPO were as follows (in thousands, except for share and per share amounts): Fair Value as of Class of Shares Issuance Date Contractual Term Number of Exercise July 31, 2016 IPO Date(1) Series A warrants December 21, 2009 10 years 683,644 $ 0.234 $ 8,259 $ 25,883 Series A warrants May 10, 2010 10 years 85,450 $ 0.234 1,032 3,235 Series D warrants November 26, 2013 10 years 10,000 $ 7.289 77 308 Series D warrants December 12, 2013 7 years 45,000 $ 7.289 311 1,386 824,094 $ 9,679 (2) $ 30,812 ______________ (1) Immediately prior to the closing of the Company’s IPO. (2) Reflected in the consolidated balance sheets as convertible preferred stock warrant liability. |
CONVERTIBLE PREFERRED STOCK (Ta
CONVERTIBLE PREFERRED STOCK (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Convertible Preferred Stock | Series A Convertible Preferred Stock, Series B Convertible Preferred Stock, Series C Convertible Preferred Stock, Series D Convertible Preferred Stock and Series E Convertible Preferred Stock (collectively the “Convertible Preferred Stock”) outstanding consisted of the following as of July 31, 2016 and as of immediately prior to the automatic conversion of the Convertible Preferred Stock into Class B common stock: Shares Shares Aggregate (In thousands) Series A 28,165,300 27,396,198 $ 15,494 Series B 16,558,441 16,558,441 25,250 Series C 7,683,710 7,683,710 33,000 Series D 13,912,438 13,857,438 151,500 Series E 11,943,420 10,823,724 145,000 78,263,309 76,319,511 $ 370,244 |
EQUITY AWARD PLANS (Tables)
EQUITY AWARD PLANS (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of RSUs Activity | The Company’s summary of Performance RSUs activity under the Stock Plans is as follows: Number of Grant Date Fair Value per Share Outstanding—July 31, 2016 12,265,369 $ 13.23 Granted 11,543,670 $ 21.91 Released (4,249,756 ) $ 16.30 Canceled/forfeited (617,159 ) $ 16.36 Outstanding—April 30, 2017 18,942,124 $ 17.76 |
Schedule of ESPP Valuation Assumptions | The Company uses the Black-Scholes option-pricing model to determine the fair value of shares purchased under the 2016 ESPP with the following weighted-average assumptions on the date of grant (on October 11, 2016 and April 5, 2017): Nine Months Ended Expected term (in years) 0.75 Risk-free interest rate 0.6 % Volatility 51.0 % Dividend yield — % |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Total stock-based compensation expense recognized for stock awards in the consolidated statements of operations is as follows (in thousands): Three Months Ended Nine Months Ended 2016 2017 2016 2017 Cost of revenue: Product $ 98 $ 610 $ 311 $ 2,424 Support and other services 230 2,471 764 8,210 Sales and marketing 2,029 15,726 6,111 65,145 Research and development 1,519 27,041 4,760 89,826 General and administrative 1,168 4,503 3,434 28,081 Total stock-based compensation expense $ 5,044 $ 50,351 $ 15,380 $ 193,686 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Total stock-based compensation expense recognized for stock awards in the consolidated statements of operations by type of awards is as follows (in thousands): Three Months Ended Nine Months Ended 2016 2017 2016 2017 RSUs * $ — $ 34,875 $ — $ 153,883 Stock options * 5,044 5,308 15,380 16,321 ESPP — 10,168 — 23,482 Total stock-based compensation expense $ 5,044 $ 50,351 $ 15,380 $ 193,686 _____________ * Includes stock-compensation expense related to stock awards with performance conditions, which vesting was deemed probable during the nine months ended April 30, 2017 . |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | The computation of basic and diluted net loss per share is as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2016 2017 2016 2017 Numerator: Net loss $ (46,820 ) $ (111,977 ) $ (118,570 ) $ (367,358 ) Denominator: Weighted-average shares—basic and diluted 44,441,954 144,054,432 43,643,451 119,851,586 Net loss per share attributable to common stockholders—basic and diluted $ (1.05 ) $ (0.78 ) $ (2.72 ) $ (3.07 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive are as follows: Three and Nine Months Ended 2016 2017 Stock awards 37,614,944 41,204,043 Common stock subject to repurchase 1,227,131 383,736 Common stock warrants — 34,180 Convertible preferred stock 76,319,511 — Convertible preferred stock warrants 824,094 — Total 115,985,680 41,621,959 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following table sets forth revenue by geographic area based on bill-to location (in thousands): Three Months Ended Nine Months Ended 2016 2017 2016 2017 U.S. $ 75,201 $ 112,218 $ 193,649 $ 317,262 Europe, the Middle East and Africa 19,234 38,023 56,577 95,543 Asia-Pacific 16,278 35,508 41,113 101,798 Other Americas 3,977 6,014 13,804 26,164 Total revenue $ 114,690 $ 191,763 $ 305,143 $ 540,767 |
ORGANIZATION (Details)
ORGANIZATION (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2016USD ($)$ / sharesshares | Sep. 30, 2016classshares | Oct. 31, 2016business$ / shares | Apr. 30, 2017voteclass | |
Class of Stock [Line Items] | ||||
Number of businesses acquired | business | 2 | |||
Issuance of common stock upon initial public offering (in shares) | 17,100,500 | |||
Shares issued price per share (in dollars per share) | $ / shares | $ 16 | $ 16 | ||
Issuance of class A common stock upon initial public offering, net of issuance costs | $ | $ 254.5 | |||
Underwriting discounts and commissions | $ | 19.2 | |||
Offering costs incurred | $ | $ 5.2 | |||
Common stock, number of classes of stock | class | 2 | 2 | ||
Over-Allotment Option | ||||
Class of Stock [Line Items] | ||||
Issuance of common stock upon initial public offering (in shares) | 2,230,500 | |||
Preferred Class B | Common Stock | ||||
Class of Stock [Line Items] | ||||
Conversion of convertible preferred stock to common stock upon initial public (in shares) | 76,319,511 | |||
Common Class B | ||||
Class of Stock [Line Items] | ||||
Common stock number of votes per share | vote | 10 | |||
Common Class B | Common Stock | ||||
Class of Stock [Line Items] | ||||
Conversion of convertible preferred stock to common stock upon initial public (in shares) | 76,319,511 | |||
Conversion ratio | 1 | 1 | ||
Common Class A | ||||
Class of Stock [Line Items] | ||||
Common stock number of votes per share | vote | 1 |
BASIS OF PRESENTATION AND SUM33
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | Oct. 31, 2016 | |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09 | ||||||
Concentration Risk [Line Items] | ||||||
Deferred tax assets, net | $ 0.1 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Retained Earnings | Accounting Standards Update 2016-09 | ||||||
Concentration Risk [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ 0.1 | |||||
Partner Concentration Risk | Revenue | Partner A | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 15.00% | 10.00% | 16.00% | |||
Partner Concentration Risk | Revenue | Partner B | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 18.00% | 21.00% | 20.00% | 20.00% | ||
Partner Concentration Risk | Revenue | Partner C | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 19.00% | 16.00% | 17.00% | 13.00% | ||
Partner Concentration Risk | Revenue | Partner E | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 10.00% | 11.00% | ||||
Partner Concentration Risk | Revenue | Partner F | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 14.00% | 12.00% | 13.00% | 16.00% | ||
Partner Concentration Risk | Accounts Receivable | Partner B | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 12.00% | 17.00% | ||||
Partner Concentration Risk | Accounts Receivable | Partner C | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 13.00% | 12.00% | ||||
Partner Concentration Risk | Accounts Receivable | Partner D | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 23.00% | |||||
Partner Concentration Risk | Accounts Receivable | Partner E | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 10.00% | 11.00% | ||||
Partner Concentration Risk | Accounts Receivable | Partner F | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 12.00% |
BUSINESS COMBINATIONS - Calm Ac
BUSINESS COMBINATIONS - Calm Acquisition (Details) - USD ($) $ in Thousands | Aug. 22, 2016 | Apr. 30, 2017 | Jul. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 16,636 | $ 0 | |
Calm Acquisition | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 7,700 | ||
Business acquisition equity issued (in shares) | 528,517 | ||
Cash payment to acquire business | $ 1,400 | ||
Goodwill | 4,800 | ||
Intangible assets | $ 4,000 | ||
Estimated life (in years) | 4 years 10 months | ||
Acquisition related costs | $ 600 |
BUSINESS COMBINATIONS - PernixD
BUSINESS COMBINATIONS - PernixData Acquisition (Details) - USD ($) $ in Thousands | Sep. 06, 2016 | Apr. 30, 2017 | Jul. 31, 2016 |
Purchase Price Allocation: | |||
Goodwill | $ 16,636 | $ 0 | |
PernixData Acquisition | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 23,000 | ||
Business acquisition equity issued (in shares) | 1,711,019 | ||
Payment term (in years) | 3 years | ||
Contingent consideration maximum | $ 19,000 | ||
Contingent liability | 2,400 | ||
Contingent liability adjustment | 1,800 | ||
Acquisition related costs | 700 | ||
Purchase Price Allocation: | |||
Cash and cash equivalents | 1,051 | ||
Accounts receivable | 718 | ||
Goodwill | 11,817 | ||
Intangible assets | 24,270 | ||
Other assets | 761 | ||
Deferred revenue | (6,007) | ||
Debt | (7,124) | ||
Other liabilities | (2,479) | ||
Total | 23,007 | ||
Contingent Consideration, Purchase Price | PernixData Acquisition | |||
Business Acquisition [Line Items] | |||
Contingent consideration maximum | 7,500 | ||
Contingent Consideration, Compensation | PernixData Acquisition | |||
Business Acquisition [Line Items] | |||
Contingent consideration maximum | $ 11,500 | ||
Minimum | In-process R&D | PernixData Acquisition | |||
Business Acquisition [Line Items] | |||
Estimated life (in years) | 5 years | ||
Maximum | In-process R&D | PernixData Acquisition | |||
Business Acquisition [Line Items] | |||
Estimated life (in years) | 7 years |
BUSINESS COMBINATIONS - Perni36
BUSINESS COMBINATIONS - PernixData Acquisition, Acquired Intangible Assets (Details) - PernixData Acquisition - USD ($) $ in Thousands | Sep. 06, 2016 | Apr. 30, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 24,270 | |
Intangible assets | $ 24,270 | |
In-process R&D | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
In-process R&D | 16,100 | |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 3,570 | |
Estimated Useful Life (in years) | 5 years | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 4,600 | |
Estimated Useful Life (in years) | 6 years |
BUSINESS COMBINATIONS - Pro For
BUSINESS COMBINATIONS - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Revenue | $ 541,579 | $ 312,493 |
Net loss | $ (367,764) | $ (141,281) |
Basic net loss per share (in dollars per share) | $ (3.03) | $ (3.12) |
Diluted net loss per share (in dollars per share) | $ (3.03) | $ (3.12) |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Nov. 01, 2016 | Jul. 31, 2016 |
Financial Assets: | |||
Short-term investments: | $ 149,571 | $ 85,991 | |
Financial Liabilities: | |||
Convertible preferred stock warrant liability | 0 | $ 30,812 | 9,679 |
Recurring | |||
Financial Assets: | |||
Total measured at fair value | 278,056 | 138,295 | |
Cash | 72,289 | 46,905 | |
Total cash, cash equivalents and short-term investments | 350,345 | 185,200 | |
Recurring | Warrant | |||
Financial Liabilities: | |||
Convertible preferred stock warrant liability | 9,679 | ||
Recurring | Commitments | |||
Financial Liabilities: | |||
Convertible preferred stock warrant liability | 2,547 | ||
Recurring | Corporate bonds | |||
Financial Assets: | |||
Short-term investments: | 100,774 | 64,360 | |
Recurring | Commercial paper | |||
Financial Assets: | |||
Short-term investments: | 38,810 | 21,631 | |
Recurring | U.S. government securities | |||
Financial Assets: | |||
Short-term investments: | 9,987 | ||
Recurring | Money market funds | |||
Financial Assets: | |||
Cash equivalents: | 78,795 | 47,305 | |
Recurring | Commercial paper | |||
Financial Assets: | |||
Cash equivalents: | 49,690 | 4,999 | |
Recurring | Level I | |||
Financial Assets: | |||
Total measured at fair value | 78,795 | 47,305 | |
Recurring | Level I | Warrant | |||
Financial Liabilities: | |||
Convertible preferred stock warrant liability | 0 | ||
Recurring | Level I | Commitments | |||
Financial Liabilities: | |||
Convertible preferred stock warrant liability | 0 | ||
Recurring | Level I | Corporate bonds | |||
Financial Assets: | |||
Short-term investments: | 0 | 0 | |
Recurring | Level I | Commercial paper | |||
Financial Assets: | |||
Short-term investments: | 0 | 0 | |
Recurring | Level I | U.S. government securities | |||
Financial Assets: | |||
Short-term investments: | 0 | ||
Recurring | Level I | Money market funds | |||
Financial Assets: | |||
Cash equivalents: | 78,795 | 47,305 | |
Recurring | Level I | Commercial paper | |||
Financial Assets: | |||
Cash equivalents: | 0 | 0 | |
Recurring | Level II | |||
Financial Assets: | |||
Total measured at fair value | 199,261 | 90,990 | |
Recurring | Level II | Warrant | |||
Financial Liabilities: | |||
Convertible preferred stock warrant liability | 0 | ||
Recurring | Level II | Commitments | |||
Financial Liabilities: | |||
Convertible preferred stock warrant liability | 0 | ||
Recurring | Level II | Corporate bonds | |||
Financial Assets: | |||
Short-term investments: | 100,774 | 64,360 | |
Recurring | Level II | Commercial paper | |||
Financial Assets: | |||
Short-term investments: | 38,810 | 21,631 | |
Recurring | Level II | U.S. government securities | |||
Financial Assets: | |||
Short-term investments: | 9,987 | ||
Recurring | Level II | Money market funds | |||
Financial Assets: | |||
Cash equivalents: | 0 | 0 | |
Recurring | Level II | Commercial paper | |||
Financial Assets: | |||
Cash equivalents: | 49,690 | 4,999 | |
Recurring | Level III | |||
Financial Assets: | |||
Total measured at fair value | 0 | 0 | |
Recurring | Level III | Warrant | |||
Financial Liabilities: | |||
Convertible preferred stock warrant liability | 9,679 | ||
Recurring | Level III | Commitments | |||
Financial Liabilities: | |||
Convertible preferred stock warrant liability | 2,547 | ||
Recurring | Level III | Corporate bonds | |||
Financial Assets: | |||
Short-term investments: | 0 | 0 | |
Recurring | Level III | Commercial paper | |||
Financial Assets: | |||
Short-term investments: | 0 | 0 | |
Recurring | Level III | U.S. government securities | |||
Financial Assets: | |||
Short-term investments: | 0 | ||
Recurring | Level III | Money market funds | |||
Financial Assets: | |||
Cash equivalents: | 0 | 0 | |
Recurring | Level III | Commercial paper | |||
Financial Assets: | |||
Cash equivalents: | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Level
FAIR VALUE MEASUREMENTS - Level 3 Roll Forward (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Warrant | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration—beginning balance | $ 9,679 | $ 11,683 |
Change in fair value | 21,133 | (567) |
Reclassification of unexercised warrants to additional paid-in capital upon the IPO | (30,812) | 0 |
Contingent consideration—ending balance | 0 | $ 11,116 |
Commitments | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration—beginning balance | 0 | |
Assumed in the PernixData Acquisition | 2,371 | |
Change in fair value | 176 | |
Contingent consideration—ending balance | $ 2,547 |
BALANCE SHEET COMPONENTS - Shor
BALANCE SHEET COMPONENTS - Short-Term Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jul. 31, 2016 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Due within 1 year | $ 126,291 | |
Due after 1 year through 3 years | 23,280 | |
Total | $ 149,571 | $ 85,991 |
BALANCE SHEET COMPONENTS - Prop
BALANCE SHEET COMPONENTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment—gross | $ 133,567 | $ 133,567 | $ 97,605 | ||
Less accumulated depreciation and amortization | (80,022) | (80,022) | (55,387) | ||
Total property and equipment—net | 53,545 | 53,545 | 42,218 | ||
Depreciation and amortization | $ 27,934 | $ 18,975 | |||
Computer, production, engineering and other equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Life (In months) | 36 months | ||||
Total property and equipment—gross | 78,616 | $ 78,616 | 54,161 | ||
Demonstration units | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Life (In months) | 12 months | ||||
Total property and equipment—gross | 41,882 | $ 41,882 | 33,184 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment—gross | 8,773 | $ 8,773 | 6,619 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated Useful Life (In months) | 60 months | ||||
Total property and equipment—gross | 4,296 | $ 4,296 | $ 3,641 | ||
Property, Plant and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | $ 9,200 | $ 7,200 | $ 26,300 | $ 19,000 |
BALANCE SHEET COMPONENTS - Inta
BALANCE SHEET COMPONENTS - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 06, 2016 | Apr. 30, 2017 | Apr. 30, 2017 |
Finite-lived intangible assets: | |||
Finite-lived intangible assets, gross | $ 12,130 | ||
Total intangible assets, gross | 28,230 | ||
Less: | |||
Accumulated amortization | (1,621) | ||
Intangible assets, net | $ 0 | 26,609 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, net—beginning balance | 0 | ||
Amortization of intangible assets | (1,621) | ||
Intangible assets, net—ending balance | 26,609 | ||
Calm Acquisition | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets acquired | 3,960 | ||
PernixData Acquisition | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets acquired | $ 24,270 | ||
In-process R&D | |||
Indefinite-lived intangible asset: | |||
In-process R&D | 16,100 | ||
Developed technology | |||
Finite-lived intangible assets: | |||
Finite-lived intangible assets, gross | 7,300 | ||
Less: | |||
Accumulated amortization | (665) | ||
Developed technology | PernixData Acquisition | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets acquired | $ 3,570 | ||
Customer relationships | |||
Finite-lived intangible assets: | |||
Finite-lived intangible assets, gross | 4,830 | ||
Less: | |||
Accumulated amortization | $ (956) | ||
Customer relationships | PernixData Acquisition | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets acquired | $ 4,600 |
BALANCE SHEET COMPONENTS - Futu
BALANCE SHEET COMPONENTS - Future Amortization Expense (Details) $ in Thousands | Apr. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2017 (remaining three months) | $ 607 |
2,018 | 2,220 |
2,019 | 2,201 |
2,020 | 2,201 |
2,021 | 2,201 |
Thereafter | 1,079 |
Total | $ 10,509 |
BALANCE SHEET COMPONENTS - Accr
BALANCE SHEET COMPONENTS - Accrued Compensation Benefits (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jul. 31, 2016 |
Employee-related Liabilities, Current [Abstract] | ||
Accrued commissions | $ 12,979 | $ 14,203 |
Accrued vacation | 6,172 | 3,490 |
Contributions to ESPP withheld | 3,773 | 0 |
Accrued bonus | 4,709 | 3,592 |
Payroll taxes payable | 24,198 | 1,234 |
Other | 5,003 | 2,028 |
Total accrued compensation and benefits | 56,834 | $ 24,547 |
RSUs | ||
Employee-related Liabilities, Current [Abstract] | ||
Payroll taxes payable | $ 21,900 |
BALANCE SHEET COMPONENTS - Ac45
BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2017 | Jul. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued professional services | $ 4,181 | $ 3,585 |
Income taxes payable | 3,446 | 1,417 |
Other | 1,391 | 535 |
Total accrued expenses and other liabilities | $ 9,018 | $ 5,537 |
DEBT (Details)
DEBT (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Debt Instrument [Line Items] | |||
Gain (loss) on extinguishment of debt | $ (3,300,000) | $ (3,320,000) | $ 0 |
Write off of unamortized debt issuance costs | 1,700,000 | ||
Loss related to guaranteed minimum return | $ 1,600,000 | ||
Senior Notes | Senior Notes Due April 15, 2019 | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 75,000,000 |
COMMITMENTS AND CONTINGENCIES47
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2017 (remaining three months) | $ 3,073 | $ 3,073 | ||
2,018 | 12,560 | 12,560 | ||
2,019 | 11,832 | 11,832 | ||
2,020 | 10,454 | 10,454 | ||
2,021 | 7,597 | 7,597 | ||
Thereafter | 2,934 | 2,934 | ||
Total | 48,450 | 48,450 | ||
Operating leases, rent expense | 3,000 | $ 2,200 | 8,800 | $ 5,100 |
Non-contract Vendors | ||||
Loss Contingencies [Line Items] | ||||
Purchase obligation | 23,800 | 23,800 | ||
Contract Manufacturer | ||||
Loss Contingencies [Line Items] | ||||
Purchase obligation | $ 58,300 | $ 58,300 |
CONVERTIBLE PREFERRED STOCK W48
CONVERTIBLE PREFERRED STOCK WARRANTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Nov. 01, 2016 | Jul. 31, 2016 | |
Class of Warrant or Right [Line Items] | ||||||
Number of Shares (in shares) | 824,094 | 824,094 | ||||
Fair value | $ 0 | $ 0 | $ 30,812 | $ 9,679 | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 41,621,959 | 115,985,680 | 41,621,959 | 115,985,680 | ||
Common stock warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 34,180 | 0 | 34,180 | 0 | ||
Series A Warrants, Issued December 2009 | ||||||
Class of Warrant or Right [Line Items] | ||||||
Contractual Term (in years) | 10 years | |||||
Number of Shares (in shares) | 683,644 | 683,644 | ||||
Exercise Price per Share (in dollars per share) | $ 0.234 | $ 0.234 | ||||
Fair value | 25,883 | 8,259 | ||||
Series A Warrants, Issued May 2010 | ||||||
Class of Warrant or Right [Line Items] | ||||||
Contractual Term (in years) | 10 years | |||||
Number of Shares (in shares) | 85,450 | 85,450 | ||||
Exercise Price per Share (in dollars per share) | $ 0.234 | $ 0.234 | ||||
Fair value | 3,235 | 1,032 | ||||
Series D Warrants, Issued November 2013 | ||||||
Class of Warrant or Right [Line Items] | ||||||
Contractual Term (in years) | 10 years | |||||
Number of Shares (in shares) | 10,000 | 10,000 | ||||
Exercise Price per Share (in dollars per share) | $ 7.289 | $ 7.289 | ||||
Fair value | 308 | 77 | ||||
Series D Warrants, Issued December 2013 | ||||||
Class of Warrant or Right [Line Items] | ||||||
Contractual Term (in years) | 7 years | |||||
Number of Shares (in shares) | 45,000 | 45,000 | ||||
Exercise Price per Share (in dollars per share) | $ 7.289 | $ 7.289 | ||||
Fair value | $ 1,386 | $ 311 | ||||
Common Class B Warrant | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of warrants exercised (in shares) | 17,090 | 789,914 | ||||
Exercise of warrants (in shares) | 17,090 | 775,554 |
CONVERTIBLE PREFERRED STOCK (De
CONVERTIBLE PREFERRED STOCK (Details) $ in Thousands | 1 Months Ended | ||
Oct. 31, 2016 | Sep. 30, 2016shares | Jul. 31, 2016USD ($)shares | |
Temporary Equity [Line Items] | |||
Shares Authorized (in shares) | 78,263,309 | ||
Shares Issued (in shares) | 76,319,511 | ||
Shares Outstanding (in shares) | 76,319,511 | ||
Aggregate Liquidation Preference | $ | $ 370,244 | ||
Series A | |||
Temporary Equity [Line Items] | |||
Shares Authorized (in shares) | 28,165,300 | ||
Shares Issued (in shares) | 27,396,198 | ||
Shares Outstanding (in shares) | 27,396,198 | ||
Aggregate Liquidation Preference | $ | $ 15,494 | ||
Series B | |||
Temporary Equity [Line Items] | |||
Shares Authorized (in shares) | 16,558,441 | ||
Shares Issued (in shares) | 16,558,441 | ||
Shares Outstanding (in shares) | 16,558,441 | ||
Aggregate Liquidation Preference | $ | $ 25,250 | ||
Series C | |||
Temporary Equity [Line Items] | |||
Shares Authorized (in shares) | 7,683,710 | ||
Shares Issued (in shares) | 7,683,710 | ||
Shares Outstanding (in shares) | 7,683,710 | ||
Aggregate Liquidation Preference | $ | $ 33,000 | ||
Series D | |||
Temporary Equity [Line Items] | |||
Shares Authorized (in shares) | 13,912,438 | ||
Shares Issued (in shares) | 13,857,438 | ||
Shares Outstanding (in shares) | 13,857,438 | ||
Aggregate Liquidation Preference | $ | $ 151,500 | ||
Series E | |||
Temporary Equity [Line Items] | |||
Shares Authorized (in shares) | 11,943,420 | ||
Shares Issued (in shares) | 10,823,724 | ||
Shares Outstanding (in shares) | 10,823,724 | ||
Aggregate Liquidation Preference | $ | $ 145,000 | ||
Common Class B | Common Stock | |||
Temporary Equity [Line Items] | |||
Conversion ratio | 1 | 1 | |
Conversion of convertible preferred stock to common stock upon initial public (in shares) | 76,319,511 |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) | Apr. 30, 2017voteclass$ / sharesshares | Sep. 30, 2016class |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 200,000,000 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.000025 | |
Preferred stock, shares issued (in shares) | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | |
Common stock, number of classes of stock | class | 2 | 2 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.000025 | |
Common Class A | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 1,000,000,000 | |
Common stock, shares issued (in shares) | 78,008,947 | |
Common stock number of votes per share | vote | 1 | |
Common Class B | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 200,000,000 | |
Common stock, shares issued (in shares) | 73,106,394 | |
Common stock number of votes per share | vote | 10 |
EQUITY AWARD PLANS - Additional
EQUITY AWARD PLANS - Additional Information (Details) | Apr. 05, 2017USD ($)shares | Aug. 16, 2016USD ($)shares | Sep. 30, 2016USD ($)purchase_period$ / sharesshares | Jul. 31, 2016$ / shares | Apr. 30, 2017USD ($)shares | Oct. 31, 2016$ / shares | Dec. 31, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued price per share (in dollars per share) | $ / shares | $ 16 | ||||||
Compensation not yet recognized | $ | $ 292,600,000 | ||||||
Period for recognition (in years) | 2 years 1 month 28 days | ||||||
Tender Offer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Incremental compensation cost | $ | $ 3,400,000 | ||||||
Exercise price be considered for conversion (in dollars per share) | $ / shares | $ 8.41 | ||||||
Options, cancelled in period (in shares) | 1,361,317 | ||||||
2016 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for future issuance (in shares) | 81,873,371 | ||||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 11,543,670 | ||||||
RSUs | Tender Offer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 911,489 | ||||||
Employee Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percent of eligible compensation (up to) | 15.00% | ||||||
Monetary cap | $ | $ 25,000 | ||||||
Share cap (in shares) | 1,000 | ||||||
Offering period duration (in months) | 12 months | ||||||
Number of six-month purchase periods | purchase_period | 2 | ||||||
Purchase price of common stock, percent | 85.00% | ||||||
Shares purchased (in shares) | 1,246,054 | ||||||
Purchase amount | $ | $ 16,900,000 | ||||||
Common Class A | 2016 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for future issuance (in shares) | 22,400,000 | ||||||
Annual increase (in shares) | 18,000,000 | ||||||
Annual increase, percent of outstanding shares | 5.00% | ||||||
Number of shares available for grant (in shares) | 15,177,347 | ||||||
Common Class A | Employee Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for future issuance (in shares) | 3,800,000 | ||||||
Annual increase (in shares) | 3,800,000 | ||||||
Annual increase, percent of outstanding shares | 1.00% | ||||||
Shares issued price per share (in dollars per share) | $ / shares | $ 16 | ||||||
Common Class B | 2016 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for future issuance (in shares) | 38,667,284 |
EQUITY AWARD PLANS - RSU (Detai
EQUITY AWARD PLANS - RSU (Details) - RSUs - $ / shares | 9 Months Ended | |
Apr. 30, 2017 | Jul. 31, 2016 | |
Number of Shares | ||
Outstanding, beginning balance (in shares) | 12,265,369 | |
Granted (in shares) | 11,543,670 | |
Released (in shares) | (4,249,756) | |
Canceled/forfeited (in shares) | (617,159) | |
Outstanding, ending balance (in shares) | 18,942,124 | |
Grant Date Fair Value per Share | ||
Outstanding (in dollars per share) | $ 17.76 | $ 13.23 |
Granted (in dollars per share) | 21.91 | |
Released (in dollars per share) | 16.30 | |
Canceled/forfeited (in dollars per share) | $ 16.36 |
EQUITY AWARD PLANS - ESPP (Deta
EQUITY AWARD PLANS - ESPP (Details) - Employee Stock Purchase Plan | 9 Months Ended |
Apr. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 9 months |
Risk-free interest rate | 0.60% |
Volatility | 51.00% |
Dividend yield | 0.00% |
EQUITY AWARD PLANS - Stock Base
EQUITY AWARD PLANS - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 50,351 | $ 5,044 | $ 193,686 | $ 15,380 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 34,875 | 0 | 153,883 | 0 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 5,308 | 5,044 | 16,321 | 15,380 |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 10,168 | 0 | 23,482 | 0 |
Cost of revenue, product | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 610 | 98 | 2,424 | 311 |
Cost of revenue, support and other services | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 2,471 | 230 | 8,210 | 764 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 15,726 | 2,029 | 65,145 | 6,111 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 27,041 | 1,519 | 89,826 | 4,760 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 4,503 | $ 1,168 | $ 28,081 | $ 3,434 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 2,613 | $ 11 | $ 3,190 | $ 1,151 |
Valuation allowance release | $ 1,500 |
NET LOSS PER SHARE - Computatio
NET LOSS PER SHARE - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (111,977) | $ (46,820) | $ (367,358) | $ (118,570) |
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted (in shares) | 144,054,432 | 44,441,954 | 119,851,586 | 43,643,451 |
Net loss per share attributable to common stockholders—basic and diluted (in dollars per share) | $ (0.78) | $ (1.05) | $ (3.07) | $ (2.72) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 41,621,959 | 115,985,680 | 41,621,959 | 115,985,680 |
Stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 41,204,043 | 37,614,944 | 41,204,043 | 37,614,944 |
Common stock subject to repurchase | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 383,736 | 1,227,131 | 383,736 | 1,227,131 |
Common stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 34,180 | 0 | 34,180 | 0 |
Convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 76,319,511 | 0 | 76,319,511 |
Convertible preferred stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 824,094 | 0 | 824,094 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 191,763 | $ 114,690 | $ 540,767 | $ 305,143 | |
U.S. | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 112,218 | 75,201 | 317,262 | 193,649 | |
Long-lived assets | 59,300 | 59,300 | $ 30,000 | ||
Europe, the Middle East and Africa | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 38,023 | 19,234 | 95,543 | 56,577 | |
Asia-Pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 35,508 | 16,278 | 101,798 | 41,113 | |
Other Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 6,014 | $ 3,977 | $ 26,164 | $ 13,804 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Millions | Sep. 06, 2016USD ($)shares | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2017USD ($)director | Apr. 30, 2016USD ($) | Sep. 05, 2016 | Jul. 31, 2016USD ($) |
Related Party Transaction [Line Items] | |||||||
Payable, related parties | $ 0 | $ 0 | $ 0 | ||||
Purchases from related party | 0.2 | $ 0 | 0.9 | $ 0.7 | |||
Accounts receivable, related parties | 0 | 0 | $ 0 | ||||
Revenue from related parties | $ 0.1 | $ 0.2 | $ 0.2 | $ 0.5 | |||
PernixData Acquisition | |||||||
Related Party Transaction [Line Items] | |||||||
Business acquisition equity issued (in shares) | shares | 1,711,019 | ||||||
Contingent consideration maximum | $ 19 | ||||||
Lightspeed Venture Partners | Lightspeed Venture Partners | |||||||
Related Party Transaction [Line Items] | |||||||
Number of directors affiliated with related party | director | 2 | ||||||
Lightspeed Venture Partners | Lightspeed Venture Partners | Convertible preferred stock | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 36.70% | ||||||
Lightspeed Venture Partners | PernixData Acquisition | Lightspeed Venture Partners | |||||||
Related Party Transaction [Line Items] | |||||||
Business acquisition equity issued (in shares) | shares | 625,478 | ||||||
Contingent consideration maximum | $ 2.7 | ||||||
PernixData | Lightspeed Venture Partners | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 26.40% |