DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Jul. 31, 2017 | Aug. 31, 2017 | Jan. 31, 2017 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Nutanix, Inc. | ||
Entity Central Index Key | 1,618,732 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --07-31 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 2.7 | ||
Common Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 95,793,160 | ||
Common Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 59,150,486 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 138,359 | $ 99,209 |
Short-term investments | 210,694 | 85,991 |
Accounts receivable—net | 178,876 | 110,659 |
Deferred commissions—current | 27,679 | 17,864 |
Prepaid expenses and other current assets | 28,362 | 16,138 |
Total current assets | 583,970 | 329,861 |
Property and equipment—net | 58,072 | 42,218 |
Deferred commissions—non-current | 33,709 | 19,029 |
Intangible assets—net | 26,001 | 0 |
Goodwill | 16,672 | 0 |
Other assets—non-current | 7,649 | 7,978 |
Total assets | 726,073 | 399,086 |
Current liabilities: | ||
Accounts payable | 73,725 | 52,111 |
Accrued compensation and benefits | 57,521 | 24,547 |
Accrued expenses and other current liabilities | 9,414 | 5,537 |
Deferred revenue—current | 233,498 | 130,569 |
Total current liabilities | 374,158 | 212,764 |
Deferred revenue—non-current | 292,573 | 165,896 |
Senior notes | 0 | 73,260 |
Convertible preferred stock warrant liability | 0 | 9,679 |
Early exercised stock options liability | 851 | 2,320 |
Other liabilities—non-current | 10,289 | 1,103 |
Total liabilities | 677,871 | 465,022 |
Commitments and contingencies (Note 7) | ||
Convertible preferred stock | 0 | 310,379 |
Stockholders’ (deficit) equity: | ||
Preferred stock | 0 | 0 |
Common stock | 4 | 1 |
Additional paid-in capital | 948,134 | 65,629 |
Accumulated other comprehensive loss | (106) | (12) |
Accumulated deficit | (899,830) | (441,933) |
Total stockholders’ (deficit) equity | 48,202 | (376,315) |
Total liabilities, convertible preferred stock and stockholders’ (deficit) equity | $ 726,073 | $ 399,086 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jul. 31, 2017 | Jul. 31, 2016 |
Accounts receivable, allowance | $ 132,000 | $ 132,000 |
Preferred stock, par value (in dollars per share) | $ 0.000025 | $ 0.000025 |
Preferred stock, shares authorized (in shares) | 0 | 78,263,309 |
Preferred stock, shares issued (in shares) | 0 | 76,319,511 |
Preferred stock, shares outstanding (in shares) | 0 | 76,319,511 |
Preferred stock, liquidation preference, value | $ 370,244,000 | |
Preferred stock, par value (in dollars per share) | $ 0.000025 | $ 0.000025 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.000025 | $ 0.000025 |
Common stock, shares authorized (in shares) | 1,200,000,000 | 165,000,000 |
Common stock, shares issued (in shares) | 154,636,520 | 46,083,651 |
Common stock, shares outstanding (in shares) | 154,636,520 | 46,083,651 |
Common Class A | ||
Common stock, shares authorized (in shares) | 1,000,000,000 | 0 |
Common stock, shares issued (in shares) | 93,570,171 | 0 |
Common stock, shares outstanding (in shares) | 93,570,171 | 0 |
Common Class B | ||
Common stock, shares authorized (in shares) | 200,000,000 | 0 |
Common stock, shares issued (in shares) | 61,066,349 | 0 |
Common stock, shares outstanding (in shares) | 61,066,349 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Revenue: | |||||||||||
Product | $ 171,704 | $ 143,142 | $ 138,508 | $ 129,657 | $ 109,216 | $ 89,957 | $ 81,229 | $ 70,396 | $ 583,011 | $ 350,798 | $ 200,833 |
Support and other services | 54,398 | 48,621 | 43,687 | 37,152 | 30,569 | 24,733 | 21,468 | 17,360 | 183,858 | 94,130 | 40,599 |
Total revenue | 226,102 | 191,763 | 182,195 | 166,809 | 139,785 | 114,690 | 102,697 | 87,756 | 766,869 | 444,928 | 241,432 |
Cost of revenue: | |||||||||||
Product | 76,187 | 62,593 | 58,403 | 52,210 | 42,480 | 33,427 | 29,977 | 27,657 | 249,393 | 133,541 | 80,900 |
Support and other services | 21,330 | 20,613 | 18,443 | 17,552 | 11,899 | 9,966 | 7,959 | 7,422 | 77,938 | 37,246 | 20,059 |
Total cost of revenue | 97,517 | 83,206 | 76,846 | 69,762 | 54,379 | 43,393 | 37,936 | 35,079 | 327,331 | 170,787 | 100,959 |
Gross profit | 128,585 | 108,557 | 105,349 | 97,047 | 85,406 | 71,297 | 64,761 | 52,677 | 439,538 | 274,141 | 140,473 |
Operating expenses: | |||||||||||
Sales and marketing | 132,503 | 128,007 | 111,244 | 128,775 | 87,917 | 75,849 | 66,128 | 58,599 | 500,529 | 288,493 | 161,829 |
Research and development | 67,817 | 74,607 | 70,914 | 75,281 | 35,129 | 31,390 | 26,024 | 23,857 | 288,619 | 116,400 | 73,510 |
General and administrative | 16,878 | 15,610 | 15,481 | 29,372 | 10,289 | 8,761 | 7,840 | 7,375 | 77,341 | 34,265 | 23,899 |
Total operating expenses | 217,198 | 218,224 | 197,639 | 233,428 | 133,335 | 116,000 | 99,992 | 89,831 | 866,489 | 439,158 | 259,238 |
Loss from operations | (88,613) | (109,667) | (92,290) | (136,381) | (47,929) | (44,703) | (35,231) | (37,154) | (426,951) | (165,017) | (118,765) |
Other expense—net | (547) | 303 | (421) | (25,712) | (959) | (2,106) | 2,646 | (871) | (26,377) | (1,290) | (5,818) |
Loss before provision for income taxes | (89,160) | (109,364) | (92,711) | (162,093) | (48,888) | (46,809) | (32,585) | (38,025) | (453,328) | (166,307) | (124,583) |
Provision for income taxes | 1,493 | 2,613 | 501 | 76 | 1,041 | 11 | 620 | 520 | 4,683 | 2,192 | 1,544 |
Net loss | $ (90,653) | $ (111,977) | $ (93,212) | $ (162,169) | $ (49,929) | $ (46,820) | $ (33,205) | $ (38,545) | $ (458,011) | $ (168,499) | $ (126,127) |
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share) | $ (0.59) | $ (0.78) | $ (0.66) | $ (2.18) | $ (1.11) | $ (1.05) | $ (0.76) | $ (0.90) | $ (3.57) | $ (3.83) | $ (3.11) |
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders—basic and diluted (in shares) | 128,295,563 | 43,970,381 | 40,509,481 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (458,011) | $ (168,499) | $ (126,127) |
Other comprehensive income (loss)—net of tax: | |||
Unrealized gain (loss) on available-for-sale securities | (94) | 2 | (14) |
Total other comprehensive income (loss)—net of tax | (94) | 2 | (14) |
Comprehensive loss | $ (458,105) | $ (168,497) | $ (126,141) |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Temporary equity, shares outstanding, beginning balance (in shares) at Jul. 31, 2014 | 65,495,787 | ||||
Temporary equity, beginning balance at Jul. 31, 2014 | $ 172,075 | ||||
Increase (Decrease) in Convertible Preferred Stock | |||||
Issuance of Series D Convertible Preferred Stock - net of issuance costs (in shares) | 10,823,724 | ||||
Issuance of Series D Convertible Preferred Stock - net of issuance costs | $ 138,304 | ||||
Temporary equity, shares outstanding, ending balance (in shares) at Jul. 31, 2015 | 76,319,511 | ||||
Temporary equity, ending balance at Jul. 31, 2015 | $ 310,379 | ||||
Common stock, shares outstanding, beginning balance (in shares) at Jul. 31, 2014 | 42,937,818 | ||||
Stockholders' (deficit) equity, beginning balance at Jul. 31, 2014 | (130,775) | $ 1 | $ 16,531 | $ 0 | $ (147,307) |
Increase (Decrease) in Stockholders' Deficit | |||||
Issuance of common stock upon exercise of stock options (in shares) | 1,996,194 | ||||
Issuance of common stock upon exercise of stock options | 1,584 | 1,584 | |||
Vesting of early exercised stock options | 3,458 | 3,458 | |||
Stock-based compensation | 17,140 | 17,140 | |||
Repurchase of common stock (in shares) | (136,811) | ||||
Other comprehensive income | (14) | (14) | |||
Net loss | (126,127) | (126,127) | |||
Common stock, shares outstanding, ending balance (in shares) at Jul. 31, 2015 | 44,797,201 | ||||
Stockholders' (deficit) equity, ending balance at Jul. 31, 2015 | $ (234,734) | $ 1 | 38,713 | (14) | (273,434) |
Temporary equity, shares outstanding, ending balance (in shares) at Jul. 31, 2016 | 76,319,511 | ||||
Temporary equity, ending balance at Jul. 31, 2016 | $ 310,379 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Issuance of common stock upon exercise of stock options (in shares) | 1,573,577 | ||||
Issuance of common stock upon exercise of stock options | 2,675 | 2,675 | |||
Vesting of early exercised stock options | 3,205 | 3,205 | |||
Stock-based compensation | 20,056 | 20,056 | |||
Repurchase of common stock (in shares) | (287,127) | ||||
Excess tax benefit from stock-based compensation | 980 | 980 | |||
Other comprehensive income | 2 | 2 | |||
Net loss | $ (168,499) | (168,499) | |||
Common stock, shares outstanding, ending balance (in shares) at Jul. 31, 2016 | 46,083,651 | 46,083,651 | |||
Stockholders' (deficit) equity, ending balance at Jul. 31, 2016 | $ (376,315) | $ 1 | 65,629 | (12) | (441,933) |
Increase (Decrease) in Stockholders' Deficit | |||||
Cumulative-effect adjustment from adoption of ASU 2016-09 | 114 | 114 | |||
Net loss | $ (162,169) | ||||
Temporary equity, shares outstanding, beginning balance (in shares) at Jul. 31, 2016 | 76,319,511 | ||||
Temporary equity, beginning balance at Jul. 31, 2016 | $ 310,379 | ||||
Increase (Decrease) in Convertible Preferred Stock | |||||
Temporary equity, conversion of convertible preferred stock to common stock upon IPO (in shares) | (76,319,511) | ||||
Temporary equity, conversion of convertible preferred stock to common stock upon IPO | $ (310,379) | ||||
Temporary equity, shares outstanding, ending balance (in shares) at Jul. 31, 2017 | 0 | ||||
Temporary equity, ending balance at Jul. 31, 2017 | $ 0 | ||||
Common stock, shares outstanding, beginning balance (in shares) at Jul. 31, 2016 | 46,083,651 | 46,083,651 | |||
Stockholders' (deficit) equity, beginning balance at Jul. 31, 2016 | $ (376,315) | $ 1 | 65,629 | (12) | (441,933) |
Increase (Decrease) in Stockholders' Deficit | |||||
Conversion of convertible preferred stock to common stock upon initial public (in shares) | 76,319,511 | ||||
Conversion of convertible preferred stock to common stock upon IPO | 310,379 | $ 2 | 310,377 | ||
Issuance of class A common stock upon IPO, net of issuance costs (in shares) | 17,100,500 | ||||
Issuance of class A common stock upon IPO, net of issuance costs | 249,170 | $ 1 | 249,169 | ||
Reclassification of convertible preferred stock warrant liability to APIC upon IPO | 30,812 | 30,812 | |||
Issuance of common stock upon exercise of common stock warrants (in shares) | 775,554 | ||||
Issuance of common stock upon exercise of common stock warrants | 77 | 77 | |||
Issuance of common stock for stock awards, net of repurchases (in shares) | 10,871,714 | ||||
Issuance of common stock through employee equity incentive plans, net of repurchases | $ 14,956 | 14,956 | |||
Issuance of common stock upon exercise of stock options (in shares) | 4,786,381 | ||||
Issuance of common stock from ESPP purchase (in shares) | 1,246,054 | ||||
Issuance of common stock from ESPP purchase | $ 16,946 | 16,946 | |||
Issuance of common stock for acquisitions (in shares) | 2,239,536 | ||||
Issuance of common stock for acquisitions | 27,063 | 27,063 | |||
Vesting of early exercised stock options | 1,614 | 1,614 | |||
Stock-based compensation | 231,491 | 231,491 | |||
Other comprehensive income | (94) | (94) | |||
Net loss | $ (458,011) | (458,011) | |||
Common stock, shares outstanding, ending balance (in shares) at Jul. 31, 2017 | 154,636,520 | 154,636,520 | |||
Stockholders' (deficit) equity, ending balance at Jul. 31, 2017 | $ 48,202 | $ 4 | $ 948,134 | $ (106) | $ (899,830) |
CONSOLIDATED STATEMENTS OF CON7
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT (parentheticals) | 12 Months Ended |
Jul. 31, 2015$ / shares | |
Series E | |
Preferred stock, issuance price per share (in dollars per share) | $ 13.3965 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (458,011) | $ (168,499) | $ (126,127) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 38,399 | 26,408 | 16,567 |
Stock-based compensation | 231,491 | 20,056 | 17,140 |
Change in fair value of convertible preferred stock warrant liability | 21,133 | (2,004) | 6,176 |
Loss on debt extinguishment | 3,320 | 0 | 0 |
Change in fair value of contingent consideration | 1,924 | 0 | 0 |
Other | 764 | 129 | 483 |
Changes in operating assets and liabilities: | |||
Accounts receivable—net | (67,382) | (71,406) | (9,018) |
Deferred commission | (24,495) | (19,813) | (8,978) |
Prepaid expenses and other assets | (15,830) | (3,460) | (7,003) |
Accounts payable | 21,280 | 19,985 | 11,318 |
Accrued compensation and benefits | 32,687 | 10,709 | 4,903 |
Accrued expenses and other liabilities | 4,944 | (1,336) | 1,724 |
Deferred revenue | 223,598 | 192,867 | 67,121 |
Net cash (used in) provided by operating activities | 13,822 | 3,636 | (25,694) |
Cash flows from investing activities: | |||
Purchases of investments | (242,525) | (106,345) | (116,116) |
Maturities of investments | 84,156 | 102,135 | 32,757 |
Sales of investments | 32,640 | 0 | 0 |
Payments for business acquisitions, net of cash acquired | (184) | 0 | 0 |
Purchases of property and equipment | (50,181) | (42,294) | (23,308) |
Net cash used in investing activities | (176,094) | (46,504) | (106,667) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriting discounts and commissions | 254,455 | 0 | 0 |
Proceeds from senior notes—net of issuance costs | 0 | 73,255 | 0 |
Payments of offering costs, net | (1,717) | (3,186) | (299) |
Proceeds from sales of shares through employee equity incentive plans, net of repurchases | 3,149 | 4,750 | |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 32,254 | ||
Repayment of senior notes | (75,000) | 0 | 0 |
Debt extinguishment costs | (1,580) | 0 | 0 |
Payment of debt in conjunction with a business acquisition | (7,124) | 0 | 0 |
Proceeds from issuance of convertible preferred stock—net of issuance costs | 0 | 0 | 138,304 |
Other | 134 | 980 | 0 |
Net cash provided by financing activities | 201,422 | 74,198 | 142,755 |
Net increase in cash and cash equivalents | 39,150 | 31,330 | 10,394 |
Cash and cash equivalents—beginning of period | 99,209 | 67,879 | 57,485 |
Cash and cash equivalents—end of period | 138,359 | 99,209 | 67,879 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes | 5,213 | 2,455 | 1,169 |
Cash paid for interest | 1,271 | 2,188 | 0 |
Supplemental disclosures of non-cash investing and financing information: | |||
Vesting of early exercised stock options | 1,614 | 3,205 | 3,458 |
Purchases of property and equipment included in accounts payable | 5,591 | 5,007 | 5,104 |
Offering costs included in accounts payable | 85 | 902 | 1,796 |
Conversion of convertible preferred stock to common stock, net of issuance costs | 310,379 | 0 | 0 |
Reclassification of convertible preferred stock warrant liability to additional paid-in capital | 30,812 | 0 | 0 |
Issuance of common stock for business acquisitions | $ 27,063 | $ 0 | $ 0 |
BUSINESS OVERVIEW
BUSINESS OVERVIEW | 12 Months Ended |
Jul. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 operating system converges traditional silos of server, virtualization, storage and networking into one integrated solution and unifies private and public cloud into a single software fabric. The Company primarily sells its products and services to end-customers through distributors, resellers and original equipment manufacturers (collectively “Partners”). During the first quarter of fiscal 2017, 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 $5.3 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 | 12 Months Ended |
Jul. 31, 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 —The consolidated financial statements, which include the accounts of Nutanix, Inc. and its wholly-owned subsidiaries, 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. Use of Estimates —The preparation of 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; useful lives of intangible assets and property and equipment; allowance for doubtful accounts; determination of fair value of common stock and convertible preferred stock, fair value of stock-based awards and convertible preferred stock warrant liability; accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions; warranty liability; fair value of contingent consideration in a business combination; sales commissions expense; 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: Credit Risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents primarily with domestic financial institutions that are federally insured within statutory limits. The Company places its deposits with multiple institutions, however such deposits may exceed federally insured limits. The Company provides credit, in the normal course of business, to a number of companies and performs credit evaluations of its customers. Concentration of Revenue and Accounts Receivable —The Company sells its products primarily through Partners and occasionally directly to end-customers. For the years ended July 31, 2015 , 2016 and 2017 , no end-customer accounted for more than 10% 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 Fiscal Year Ended July 31, As of July 31 Customers 2015 2016 2017 2016 2017 Partner A 23 % 15 % 11 % * * Partner B 15 % 20 % 22 % 17 % 12 % Partner C * 14 % 18 % 12 % 14 % Partner D * * * 23 % 20 % Partner E * 11 % * 11 % * Partner F * 15 % 13 % * 18 % ___________________ * Less than 10% Vendor Risk —The Company relies on a limited number of suppliers for its contract manufacturing and certain raw material components. In instances where suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to its customers on time. Cash, Cash Equivalents and Short-Term Investments —The Company classifies all highly liquid investments with original maturities of three months or less from the date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as marketable securities. The Company determines the appropriate classifications of its marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date. The Company classifies and accounts for its marketable securities as available-for-sale securities. The Company classifies its marketable securities with stated maturities greater than twelve months as short-term investments due to its intention to use these securities to support its current operations. The Company’s marketable securities are recorded at their estimated fair value. Unrealized gains or losses on available-for-sale securities are reported in other comprehensive income (loss). The Company periodically reviews whether its securities may be other-than-temporarily impaired, including whether or not (i) the Company has the intent to sell the security or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If one of these factors is met, the Company will record an impairment loss associated with its impaired investment. The impairment loss will be recorded as a write-down of investments in the consolidated balance sheets and a realized loss within other expense in the consolidated statements of operations. Fair Value Measurement —The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term nature. The fair value of the Company’s Senior Notes (see Note 6) approximates their face value as the effective interest rates on the Senior Notes approximate market interest rates for similar instruments. Accounts Receivable and Allowance for Doubtful Accounts —Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. Credit is extended to customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral or other security to support accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains an allowance for doubtful accounts. The allowance for doubtful accounts is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The Company evaluates the collectability of its accounts receivable based on known collection risks and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filings or substantial downgrading of credit ratings), the Company records allowance for doubtful accounts in order to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company records allowance for doubtful accounts based on the length of time the accounts receivable are past due and the Company’s historical experience of collections and write-offs. The changes in the allowance for doubtful accounts are as follows (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 Allowance for doubtful accounts—beginning balance $ 400 $ 410 $ 132 Charged to provision for doubtful accounts (credit) 119 (85 ) — Write-offs (109 ) (193 ) — Allowance for doubtful accounts—ending balance $ 410 $ 132 $ 132 Property and Equipment —Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. The Company includes the cost to acquire demonstration units and the related accumulated depreciation in property and equipment as such units are generally not available for sale. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the related assets. 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 Other Long-Lived Assets— Goodwill represents the future economic benefits arising from other assets acquired in a business combination or an acquisition that are not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Intangible assets consist of identifiable intangible assets, including developed technology, customer relationships and in-process research and development (“IPR&D”), resulting from business acquisitions. Finite-lived intangible assets are recorded at fair value, net of accumulated amortization. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense is included as a component of cost of product revenue and sales and marketing expense in the accompanying consolidated statements of operations. Amounts included in sales and marketing expense relate to amortization of intangible asset attributed to customer relationships. Goodwill and other intangible assets acquired in a business combination and determined to have an indefinite useful life, such as IPR&D, are not amortized, but instead tested for impairment at least annually as of May 1st. Such goodwill and other intangible assets may also be tested for impairment between annual tests in the presence of impairment indicators such as, but not limited to: (a) a significant adverse change in legal factors or in the business climate; (b) a substantial decline in the Company's market capitalization, (c) an adverse action or assessment by a regulator; (d) unanticipated competition; (e) loss of key personnel; (f) a more likely-than-not expectation of sale or disposal of a reporting unit or a significant portion thereof; (g) a realignment of the Company's resources or restructuring of its existing businesses in response to changes to industry and market conditions; (h) testing for recoverability of a significant asset group within a reporting unit; or (i) higher discount rate used in the impairment analysis as impacted by an increase in interest rates. 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, the Company determines the fair value of its reporting unit based on the Company's 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, an impairment analysis will be performed. The Company compares the fair value of its reporting unit with its carrying amount and if the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized. Long-lived assets, such as property and equipment and finite-lived intangible assets subject to depreciation and amortization, are evaluated for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Among the factors and circumstances we considered in determining recoverability are: (i) a significant decrease in the market price of a long-lived asset; (ii) a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; (iii) a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator; (iv) an accumulation of costs significantly in excess of the amount originally expected for the acquisition and (v) current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. There have been no indicators of impairment of goodwill, intangible assets and other long-lived assets, and we did not record any impairment losses during fiscal 2015 , 2016 and 2017 . Revenue Recognition —The Company derives revenue from two sources (1) product revenue, which consists of hardware combined with software and software-only revenue, and (2) support and service revenue which includes post-contract customer support (“PCS”) and professional services. The Company recognizes revenue when: • Persuasive evidence of an arrangement exists—The Company relies on sales agreements and purchase orders to determine the existence of an arrangement. • Delivery has occurred—The Company typically recognizes product revenue upon shipment, when title and risk of loss are transferred to its Partners at that time. Service revenue is recognized as services are performed. • The fee is fixed or determinable—The Company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction. Payment from Partners is not contingent upon the Partners receiving payments from end-customers. • Collection is reasonably assured—The Company assesses collectability based on a credit analysis and payment history. The Company reports revenue net of sales taxes. The Company includes shipping charges billed to customers in revenue and the related shipping costs are included in cost of revenue. A substantial majority of the Company’s product revenue is generated from the sale of the Company’s software operating system, which is typically delivered on a hardware appliance that is configured to order. The software is deemed essential to the functionality of the hardware. Although historically it has represented a small portion of the Company’s product revenue, the Company’s proprietary software can also be delivered on a software-only basis. The Company also sells non-essential software, which can be purchased by customers to enhance the functionality of the Company’s offerings. The hardware appliance and the software essential to the functionality of the hardware appliance are considered non-software deliverables and, therefore, are not subject to industry-specific software revenue recognition guidance. Software-only and non-essential software sales are subject to the industry-specific software revenue recognition guidance. The Company established Vendor Specific Objective Evidence (“VSOE”) of fair value for certain of its PCS offerings during the fourth quarter of the year ended July 31, 2015. The establishment of VSOE for these PCS offerings did not have a material impact on the Company’s results. When VSOE of fair value for PCS does not exist, revenues subject to industry-specific software revenue recognition guidance are deferred and generally recognized ratably over the PCS period (see VSOE related discussion below). Support and other services revenue includes the sale of PCS contracts and professional services such as installation, training and onsite engineering support. The Company’s PCS contracts include the right to receive unspecified software upgrades and enhancements on a when-and-if-available basis, bug fixes, as well as parts replacement services related to the Company’s hardware appliances. The Company’s PCS contracts support both non-software deliverables and non-essential software. The Company allocates fees associated with PCS to the software deliverables and non-software deliverables in a contract based on the relative selling prices of such deliverables, which is based on VSOE when available. When VSOE is not available, relative selling prices are determined based upon the Company’s best estimate of selling price, as third-party evidence is also not available. Revenue related to PCS contracts are recognized ratably over the contractual term, which generally range from one to five years. Revenue related to installation, training and onsite engineering support services are recognized as the services are provided to the customer. Most of the Company’s arrangements, other than stand-alone renewals of PCS contracts, are multiple-element arrangements with a combination of product and support and service related deliverables (as defined above). In multiple-element revenue arrangements, the Company allocates consideration at the inception of an arrangement to all deliverables based on the relative selling price method in accordance with the selling price hierarchy, which includes (i) VSOE of selling price, if available; (ii) third-party evidence (“TPE”) of selling price, if VSOE is not available; and (iii) best estimate of selling price (“BESP”), if neither VSOE nor TPE is available. For deliverables where the Company has not established VSOE, the Company typically allocates consideration to all deliverables based on BESP as TPE typically cannot be obtained. VSOE—In the Company’s multiple-element arrangements, the Company determines VSOE based on its historical pricing and discounting practices for the specific products and services when sold separately. In determining VSOE, the Company requires that a substantial majority of the stand-alone selling prices fall within a reasonably narrow pricing range. The Company has established VSOE for certain PCS related deliverables based upon the pricing and discounting of a substantial majority of stand-alone sales of the deliverables falling within a reasonably narrow range. The Company has not established VSOE for any of its other deliverables given that its pricing is not sufficiently concentrated (based on an analysis of separate sales of the deliverables) to conclude that it can demonstrate VSOE of selling prices. TPE—When VSOE cannot be established for deliverables in multiple-element arrangements, the Company applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for interchangeable products or services when sold separately to similarly situated customers. However, because the Company’s products contain a significant element of proprietary technology and the Company’s solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality cannot be obtained. BESP—When neither VSOE nor TPE can be established, the Company utilizes BESP to allocate consideration to deliverables in a multiple-element arrangement. The Company’s process to determine its BESP for products and services is based on qualitative and quantitative considerations of multiple factors, which primarily include historical sales, margin objectives and discount behavior. Additional considerations are given to other factors such as customer demographics, pricing practices and market conditions. Deferred Revenue —The Company recognizes certain revenue ratably over the contractual support period. Amounts prepaid by customers in excess of revenue recognized are deferred. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the consolidated balance sheet date. Deferred Commissions —Deferred commissions consist of direct and incremental costs paid to the Company’s sales force related to customer contracts. The deferred commission amounts are recoverable through the revenue streams that will be recognized under the related customer contracts. Direct sales commissions are deferred when earned and amortized over the same period that revenue is recognized from the related customer contract. Amortization of deferred commissions is included in sales and marketing expense in the consolidated statements of operations. Cost of Revenue —Cost of revenue consists of cost of product revenue and cost of support and other revenue. Personnel costs associated with the Company’s operations and global customer support organizations consist of salaries, benefits, and stock-based compensation. Allocated costs consist of certain facilities, depreciation and amortization, recruiting, and information technology costs allocated based on headcount. Warranties —The Company generally provides a one -year warranty on hardware and a 90 -day warranty on software licenses. The hardware warranty provides for parts replacement for defective components and the software warranty provides for bug fixes. With respect to the hardware warranty obligation, the Company has a warranty agreement with its contract manufacturers under which the contract manufacturers are generally required to replace defective hardware within three years of shipment. Furthermore, the Company’s PCS agreements provide for the same parts replacement that customers are entitled to under the warranty program, except that replacement parts are delivered according to targeted response times to minimize disruption to the customers’ critical business applications. Substantially all customers purchase PCS agreements. Given the warranty agreement with the Company’s contract manufacturers and considering that substantially all products are sold together with PCS agreements, the Company generally has very limited exposure related to warranty costs and therefore no warranty reserve has been recognized. Research and Development —The Company’s research and development expense consists primarily of product development personnel costs, including salaries and benefits, stock-based compensation and allocated facilities costs. Research and development costs are expensed as incurred. Convertible Preferred Stock Warrant Liability —The Company accounted for freestanding warrants to purchase shares of its Convertible Preferred Stock (the “Convertible Preferred Stock Warrants”), as liabilities in the consolidated balance sheets at their estimated fair value. The fair value of the warrants was estimated using the Black-Scholes-Merton (“Black-Scholes”) option-pricing model and was remeasured at fair value at each reporting date until the warrants were converted to common stock upon the completion of the Company’s IPO. Changes in the estimated fair value of the Convertible Preferred Stock Warrants were recorded in the consolidated statements of operations within other expense, net. Upon the conversion of the underlying Convertible Preferred Stock to common stock upon the completion of the Company's IPO, the related convertible preferred stock warrant liability was re-measured to its then fair value and was reclassified to additional paid-in capital. Stock-Based Compensation —Stock-based compensation expense is measured based on the grant-date fair value of the share-based awards. The fair value of the stock options and purchase rights issued to employees under our ESPP is estimated using Black-Scholes, which is impacted by the fair value of our common stock, as well as changes in assumptions regarding a number of subjective variables. These variables include the expected common stock price volatility over the term of the awards, the expected term of the awards, risk-free interest rates and expected dividend yield. The Company grants both stock awards with service condition only and with service and performance conditions. The Company recognizes stock-based compensation expense for employee stock awards with a service condition only using the straight-line method over the requisite service period of the awards, which is generally the vesting period. The Company uses the accelerated attribution method of recognizing stock-based compensation expense related to its employee stock awards that contain both service and performance conditions. The fair value of the ESPP purchase rights is recognized as an expense on a straight-line basis over the offering period. The Company determines the fair value of the stock awards issued to non-employees on the date of grant utilizing Black-Scholes. Stock-based compensation expense for stock awards issued to non-employees is recognized over the requisite service period or when it is probable that the performance condition will be satisfied. Awards subject to vesting are periodically remeasured to current fair value over the vesting period. Foreign Currency —The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Transactions denominated in currencies other than the functional currency are re-measured at the average exchange rate in effect during the reporting period. At the end of each reporting period all monetary assets and liabilities of the Company’s subsidiaries are re-measured at the current U.S. dollar exchange rate at the end of the reporting period. Remeasurement gains and losses are included within other expense, net in the accompanying consolidated statements of operations. For the year ended July 31, 2015, the Company’s net foreign currency gains were immaterial. During the years ended July 31, 2016 and 2017, the Company recognized foreign currency losses of $1.5 million and $2.6 million , respectively. To date, the Company has not undertaken any hedging transactions related to foreign currency exposure. Income Taxes —The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance to amounts that are more likely than not to be realized. The Company records a liability for uncertain tax positions if it is not more likely than not to be sustained based solely on its technical merits as of the reporting date. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and may not accurately anticipate actual outcomes. Advertising Costs —Advertising costs are charged to sales and marketing expenses as incurred in the consolidated statements of operations. During the years ended July 31, 2015 , 2016 and 2017 , advertising expense was $3.5 million , $6.5 million and $13.0 million , respectively. Deferred Offering Costs —Deferred offering costs consisted of fees and expenses incurred in connection with the sale of the Company’s common stock in its IPO, including the legal, accounting, printing and other IPO-related costs. Upon completion of the Company’s IPO, these deferred offering costs were reclassified to stockholders’ (deficit) equity and offset against the proceeds of the offering. As of July 31, 2016, deferred offering costs of $4.5 million were included within other assets—non-current. Total deferred offering costs recognized through the completion of the IPO and reclassified to stockholders' deficit and offset against the IPO proceeds were $5.3 million . 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. 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 early adopted ASU 2017-04 in fiscal 2017 and its adoption did not have any impact on its consolidated financial statements. 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 eva |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jul. 31, 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 year ended July 31, 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 11,853 Intangible assets 24,270 Other assets 761 Deferred revenue (6,007 ) Debt (7,124 ) Other liabilities (2,515 ) 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 is 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. The Company will start amortizing the in-process R&D during the first quarter of fiscal 2018 over a useful life of between 5 to 7 years as the related technology was completed and released in the first quarter of fiscal 2018. 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): Fiscal Year Ended 2016 2017 Revenue $ 454,665 $ 767,681 Net loss $ (199,351 ) $ (459,454 ) Basic and diluted net loss per share $ (4.36 ) $ (3.53 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jul. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value as follows: • Level I —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; • Level II —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and • Level III —Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. Assets and Liabilities Measured at Fair Value on a Recurring Basis Cash equivalents and short-term investments. The Company’s money market funds are classified within Level I due to the highly liquid nature of these assets and have unadjusted inputs, quoted prices in active markets for these assets at the measurement date from the financial institution that carries these investment securities. The Company’s investments in available-for-sale debt securities such as commercial paper and corporate bonds are classified within Level II. The fair value of these securities is priced by using inputs based on non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash flow techniques. Convertible Preferred Stock warrant liability. The Company’s convertible preferred stock warrant liability is classified within Level III. The convertible preferred stock warrant liability is measured at fair value on a recurring basis using Black-Scholes. The valuation takes into account multiple inputs, such as the estimated fair value of the underlying stock at the valuation measurement date, the remaining contractual term of the warrants, risk-free interest rates, expected dividends and the expected volatility of the underlying stock. Generally, changes in the fair value of the underlying stock would result in a directionally similar impact to the fair value measurement. The valuation methodology and underlying assumptions are discussed further in Note 8. The fair value of the Company’s financial assets and liabilities measured on a recurring basis is as follows: As of July 31, 2016 Level I Level II Level III Total (In thousands) 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 July 31, 2017 Level I Level II Level III Total (In thousands) Financial Assets: Cash equivalents: Money market funds $ 34,784 $ — $ — $ 34,784 Commercial paper — 23,041 — 23,041 Short-term investments: Corporate bonds — 160,634 — 160,634 Commercial paper — 36,084 — 36,084 U.S. government securities — 13,976 — 13,976 Total measured at fair value 34,784 233,735 — 268,519 Cash 80,534 Total cash, cash equivalents and short-term investments $ 349,053 Financial Liabilities: Contingent consideration $ — $ — $ 4,295 $ 4,295 A summary of the changes in the fair value of the Company’s convertible preferred stock warrant liability is as follows (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 Convertible preferred stock warrant liability—beginning balance $ 5,507 $ 11,683 $ 9,679 Change in fair value* 6,176 (2,004 ) 21,133 Reclassification of unexercised warrants to APIC upon the IPO — — (30,812 ) Convertible preferred stock warrant liability—ending balance $ 11,683 $ 9,679 $ — ______________ * Recognized in the consolidated statements of operations within other expense—net. A summary of the changes in the fair value of the Company’s contingent consideration is as follows (in thousands): Fiscal Year Ended July 31, 2017 Contingent consideration—beginning balance $ — Assumed in the PernixData acquisition 2,371 Change in fair value* 1,924 Contingent consideration—ending balance $ 4,295 ______________ * Recognized 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. The fair value is determined by calculating the net present value of the expected payments using significant inputs that are not observable in the market, including the probability of achieving the milestone, estimated bookings and discount rates. The fair value of the contingent consideration will increase or decrease according to the movement of the inputs. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Jul. 31, 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 2017, unrealized gains or losses from the Company’s short-term investments were immaterial and there were no securities that were 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 July 31 2017 Due within 1 year $ 151,014 Due after 1 year through 3 years 59,680 Total $ 210,694 Property and Equipment—Net —Property and equipment, net consists of the following (in thousands): Estimated Useful Life As of July 31 2016 2017 (In months) Computer, production, engineering and other equipment 36 $ 54,161 $ 85,280 Demonstration units 12 33,184 46,387 Leasehold improvements ** 6,619 10,562 Furniture and fixtures 60 3,641 4,744 Total property and equipment—gross 97,605 146,973 Less accumulated depreciation and amortization (55,387 ) (88,901 ) Total property and equipment—net $ 42,218 $ 58,072 _________________ ** Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term. Depreciation and amortization expense for the fiscal years ended July 31, 2015 , 2016 and 2017 was $16.6 million , $26.4 million and $38.4 million , respectively. Intangible Assets—Net —Intangible assets, net consists of the following (in thousands): As of July 31, 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 (1,314 ) Accumulated amortization of customer relationships (915 ) Total accumulated amortization (2,229 ) Intangible assets, net $ 26,001 Changes in the net book value of intangible assets are as follows (in thousands): Fiscal Year Ended Intangible assets, net—beginning balance $ — Acquired in the Calm Acquisition 3,960 Acquired in the PernixData Acquisition 24,270 Amortization of intangible assets * (2,229 ) Intangible assets, net—ending balance $ 26,001 ______________ * Represents amortization expense of finite-lived intangible assets recognized in the consolidated statement of operations during the year within product cost of revenue and sales and marketing expenses. Estimated future amortization expense of finite-lived intangible assets is as follows: Fiscal Year Ending July 31: (In thousands) 2018 $ 2,220 2019 2,201 2020 2,201 2021 2,201 Thereafter 1,078 Total $ 9,901 Goodwill - Changes in the carrying amount of goodwill for fiscal 2017 are as follows (in thousands): Fiscal Year Ended Goodwill—beginning balance $ — Acquired in the Calm Acquisition 4,819 Acquired in the PernixData Acquisition 11,853 Goodwill—ending balance $ 16,672 Accrued Compensation and Benefits —Accrued compensation and benefits consists of the following (in thousands): As of July 31 2016 2017 Accrued commissions $ 14,203 $ 20,388 Contributions to ESPP withheld — 14,371 Accrued bonus 3,592 7,342 Accrued vacation 3,490 6,286 Payroll taxes payable 1,234 3,434 Other 2,028 5,700 Total accrued compensation and benefits $ 24,547 $ 57,521 Accrued Expenses and Other Current Liabilities —Accrued expenses and other current liabilities consists of the following (in thousands): As of July 31 2016 2017 Accrued professional services $ 3,585 $ 4,167 Income taxes payable 1,417 3,580 Other 535 1,667 Total accrued expenses and other current liabilities $ 5,537 $ 9,414 |
DEBT
DEBT | 12 Months Ended |
Jul. 31, 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 | 12 Months Ended |
Jul. 31, 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 July 31, 2017 are as follows (in thousands): Fiscal Year Ending July 31: 2018 $ 16,304 2019 14,891 2020 12,758 2021 9,197 2022 3,535 Thereafter 1,692 Total $ 58,377 Rent expense incurred under operating leases was $4.0 million , $7.6 million and $12.7 million for the years ended July 31, 2015 , 2016 and 2017 , respectively. Purchase Commitments —In the normal course of business, the Company makes commitments with its third-party hardware product manufacturers to manufacture its inventories and non-standard components based on its forecasts. These commitments consist of obligations for on-hand inventories and non-cancelable purchase orders for non-standard components. The Company records a charge for firm, non-cancelable and unconditional purchase commitments with its third-party hardware product manufacturers for non-standard components when and if quantities exceed its future demand forecasts through a charge to cost of product sales. As of July 31, 2017 , the Company had approximately $72.6 million of non-cancellable purchase commitments with its contract manufacturers. As of July 31, 2017 , the Company had approximately $26.6 million in other purchase obligations pertaining to its normal operations. Guarantees —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. 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. |
CONVERTIBLE PREFERRED STOCK WAR
CONVERTIBLE PREFERRED STOCK WARRANTS | 12 Months Ended |
Jul. 31, 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 year ended July 31, 2017 , a total of 789,914 Class B common stock warrants were exercised. As a result, during the year ended July 31, 2017 , the Company issued a total of 775,554 shares of Class B common stock as the contracts allow a net share settlement for Class B common stock. As of July 31, 2017 , there were 34,180 Class B common stock warrants outstanding. Prior to the Company's IPO, it estimated the fair value of each Convertible Preferred Stock Warrants using Black-Scholes with the following assumptions: Fair Value of Convertible Preferred Stock —The fair value of Convertible Preferred Stock represented the fair value of the underlying Convertible Preferred Stock that the warrants were convertible into. Remaining Contractual Term —The remaining contractual term represented the time from the date of the valuation to the expiration of the warrant. Risk-Free Interest Rate —The risk-free interest rate was based on U.S. Treasury yield in effect as of the measurement dates, and for zero coupon U.S. Treasury notes with maturities approximately equal to the term of the warrant. Volatility —The volatility was derived from historical volatilities of several unrelated publicly-listed peer companies over a period approximately equal to the term of the warrant because the Company had limited information on the volatility of the Convertible Preferred Stock since there was currently no trading history. When making the selections of industry peer companies to be used in the volatility calculation, the Company considered the size, operational and economic similarities to the Company’s principle business operations. Dividend Yield —The expected dividend assumption was based on the Company’s current expectations about the Company’s anticipated dividend policy. The assumptions used to determine the fair value of the Company’s Series A convertible preferred stock warrants prior to the Company's IPO are as follows: As of July 31, 2016 Fair value of convertible preferred stock $ 12.31 Risk-free interest rate 0.9 % Contractual term (in years) 3.4 Volatility 54 % Dividend yield — The assumptions used to determine the fair value of the Company’s Series D convertible preferred stock warrants prior to the Company's IPO are as follows: As of July 31, 2016 Fair value of convertible preferred stock $ 13.16 Risk-free interest rate 1.0 % Contractual term (in years) 4.9 Volatility 35 % Dividend yield — |
CONVERTIBLE PREFERRED STOCK
CONVERTIBLE PREFERRED STOCK | 12 Months Ended |
Jul. 31, 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 Authorized Shares Issued and Outstanding Aggregate Liquidation Preference (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. |
EQUITY AWARD PLANS
EQUITY AWARD PLANS | 12 Months Ended |
Jul. 31, 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 all 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 July 31, 2017 , the Company had reserved a total of 52,860,210 shares for the issuance of equity awards under the Stock Plans, of which 15,149,589 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 first quarter of fiscal 2017, 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 RSU 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 12,986,597 $ 21.84 Released (6,146,169 ) $ 15.63 Canceled/forfeited (1,729,707 ) $ 13.57 Outstanding—July 31, 2017 17,376,090 $ 18.85 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 all 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 . As of July 31, 2016, 2,553,946 shares were available for future issuance under the 2016 ESPP. 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): Fiscal Year Ended Expected term (in years) 0.75 Risk-free interest rate 0.6 % Volatility 51.0 % Dividend yield — % Stock Options The Board determines the period over which stock options become exercisable and stock options generally vest over a four -year period. Stock options generally expire 10 years from the date of grant. The term of an ISO grant to a 10% stockholder will not exceed five years from the date of the grant. The exercise price of an ISO will not be less than 100% of the estimated fair value of the shares of common stock underlying the stock option (or 110% of the estimated fair value in the case of an ISO granted to a 10% stockholder) on the date of grant. The exercise price of a NSO is determined by the Board at the time of grant, and is generally not less than 100% of the estimated fair value of the shares of common stock underlying the stock option on the date of grant. The Company’s stock option activity under the Stock Plan is as follows: Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (In years) (In thousands) Outstanding—August 1, 2016 26,166,968 (1) $ 4.39 7.5 $ 208,101 Options granted 1,047,950 12.14 Options exercised (4,786,381 ) 3.27 Options canceled/forfeited (2,094,006 ) 8.89 Outstanding—July 31, 2017 20,334,531 4.59 6.4 338,787 Exercisable—July 31, 2017 19,645,676 4.43 6.3 330,486 Vested and expected to vest—July 31, 2017 20,334,531 4.59 6.4 338,787 (1) Includes 455,000 stock options with both service and performance conditions with a weighted-average fair value per share of $3.78 (the “Performance Stock Options”). Vesting of the Performance Stock Options was subject to continuous service with the Company (the “service condition”) and satisfaction of certain liquidity events of the Company (the “performance condition”). The Company recognized cumulative stock-based compensation expense related to the Performance Stock Options in the first quarter of fiscal year 2017 as the performance condition was met upon the Company's successful IPO. The cumulative stock-based compensation expense recorded in the first quarter of fiscal 2017 was for the portion of the awards for which the relevant service condition had been satisfied and the remaining expense is being recognized over the remaining service period. The stock options exercisable as of July 31, 2017 include 15,241,715 of stock options are related to vested options and 4,403,961 of stock options that are unvested with an early exercise provision. The weighted-average grant-date fair value per share of stock options granted was $4.86 , $6.36 and $6.41 for the years ended July 31, 2015, 2016 and 2017, respectively. The aggregate intrinsic value of stock options exercised was $16.2 million , $18.3 million and $73.9 million for the years ended July 31, 2015, 2016 and 2017, respectively. Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of the Company’s common stock. The total grant date fair value of stock options vested was $10.8 million , $23.9 million and $16.1 million for the years ended July 31, 2015, 2016 and 2017, respectively. The vested and expected to vest amounts included in the table above exclude early exercised stock options of 243,148 as of July 31, 2017. Early Exercise of Stock Options. The Company issued 1,019,223 , 269,737 and 67,360 shares of common stock for total proceeds of $3.3 million , $0.8 million and $0.2 million , respectively, related to exercises of unvested stock options (the “early exercised stock options”) during the years ended July 31, 2015, 2016 and 2017. The shares of common stock issued in connection with the early exercised stock options are subject to the Company’s repurchase right at the original purchase price. The proceeds initially are recorded as a liability and reclassified to common stock and additional paid in capital as the Company’s repurchase right lapses. As of July 31, 2016 and 2017, 954,215 and 243,148 respectively, shares of common stock related to the early exercised stock options held by employees at an aggregate price of $2.3 million and $0.9 million , respectively, were subject to the Company’s repurchase right. Stock-Based Compensation —Total stock-based compensation expense recognized for stock awards granted under the equity award plans in the consolidated statements of operations is as follows (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 Cost of revenue: Product $ 363 $ 391 $ 3,066 Support and other services 718 968 10,411 Sales and marketing 6,474 8,006 78,117 Research and development 5,411 6,259 109,044 General and administrative 4,174 4,432 30,853 Total stock-based compensation expense $ 17,140 $ 20,056 $ 231,491 Fiscal year 2017 included cumulative stock-compensation expense related to stock awards with performance conditions, which vesting was deemed probable in the first quarter of fiscal 2017 upon the Company’s successful IPO. Prior to fiscal 2017, no expense was recognized related to these stock awards with performance conditions as vesting was not deemed probable. The cumulative stock-based compensation expense recorded in the first quarter of fiscal 2017 was for the portion of the awards for which the relevant service condition had been satisfied and the Company has continued to recognize the remaining expense over the remaining service period. As of July 31, 2017, unrecognized stock-based compensation expense related to the outstanding stock awards was approximately $273.6 million and is expected to be recognized over a weighted-average period of approximately 2.2 years. Determination of Fair Value —The fair value of options granted to employees is estimated on the grant date using Black-Scholes. Compensation expense related to options granted to non-employees is recognized as the equity instruments vest, and such options are revalued at each reporting date. As a result, compensation expense related to unvested options granted to non-employees fluctuates as the fair value of the Company’s common stock fluctuates. The valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation, including the expected term (weighted-average period of time that the options granted are expected to be outstanding), the expected volatility of the Company’s common stock, a risk-free interest rate and expected dividend yield. The fair value of the Company’s stock options was estimated using the following weighted-average assumptions: Fiscal Year Ended July 31, 2015 2016 2017 Fair value of common stock $ 10.29 $ 14.81 $ 12.14 Expected term (in years) 6.1 6.1 6.1 Risk-free interest rate 1.7 % 1.6 % 1.3 % Volatility 46 % 42 % 52 % Dividend yield — — — The fair value of each grant of stock options was determined using Black-Scholes and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment to determine. Fair Value of Common Stock —Prior to the Company’s IPO, the fair value of the common stock underlying its stock options was determined by its board of directors. The valuations of its common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation . The Board, with input from management, exercised significant judgment and considered numerous objective and subjective factors to determine the fair value of the Company’s common stock at each grant date, including but not limited to, (i) contemporaneous valuations of common stock performed by unrelated third-party specialists; (ii) recent private stock sales transactions; (iii) the prices, rights, preferences and privileges of the Company’s convertible preferred stock relative to those of our common stock; (iv) the lack of marketability of the Company’s common stock; (v) developments in the business; (vi) the likelihood of achieving a liquidity event, such as an IPO or a merger or acquisition of the Company’s business, given prevailing market conditions; (vii) the market performance of comparable publicly traded companies; (viii) the Company’s actual operating and financial performance; (ix) U.S. and global capital market conditions; (x) the illiquidity of stock-based awards involving securities in a private company; (xi) the Company’s stage of development; and (xii) the Company’s history and the timing of the introduction of new products and services. Subsequent to its IPO, the Company uses the market closing price for our Class A common stock as reported on the NASDAQ Global Select Market on the date of grant. Expected Term —The expected term represents the period that the stock-based awards are expected to be outstanding. For option grants that are considered to be “plain vanilla,” the Company determines the expected term using the simplified method as provided by the Securities and Exchange Commission. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. Risk-Free Interest Rate —The risk-free interest rate is based on U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term. Expected Volatility —Since the Company does not have a long trading history of its common stock, the expected volatility was derived from the average historical stock volatilities of several unrelated public companies within the Company’s industry that its considers to be comparable to its business over a period equivalent to the expected term of the stock option grants. Dividend Rate —The expected dividend was assumed to be zero , as the Company has never paid dividends and have no current plans to do so. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Jul. 31, 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 July 31, 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 July 31, 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 July 31, 2017 , 93,570,171 shares of Class A common stock were issued and outstanding and 61,066,349 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 are generally automatically converted into shares of the Company's Class A common stock upon sale or transfer. Shares issued in connection with exercises of stock options, vesting of restricted stock units, or shares purchased under the employee stock purchase plan are generally automatically converted into shares of the Company’s Class A common stock. Shares issued in connection with an exercise of the common stock warrants are converted into shares of the Company’s Class B common stock. Common Stock Reserved For Issuance As of July 31, 2017 , we had reserved shares of common stock for future issuance as follows: July 31, 2017 Shares reserved for future equity grants 15,149,589 Shares underlying outstanding stock options 20,334,531 Shares underlying outstanding restricted stock units 17,376,090 Shares reserved for future employee stock purchase plan awards 2,553,946 Shares underlying outstanding common stock warrants 34,180 Total 55,448,336 |
NET LOSS AND UNAUDITED NET LOSS
NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | 12 Months Ended |
Jul. 31, 2017 | |
Earnings Per Share [Abstract] | |
NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company’s Convertible Preferred Stock is considered a participating security. Participating securities do not have a contractual obligation to share in the Company’s losses. As such, for the periods the Company incurs net losses, there is no impact on the calculated net loss per share attributable to common stockholders in applying the two-class method. Basic net loss per share attributable to common stockholders is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. The diluted net loss per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, participating securities, stock options to purchase common stock, RSUs and warrants to purchase Convertible Preferred Stock are considered to be common stock equivalents and have been excluded from the calculation of diluted net loss per share attributable to common stockholders, as their effect is antidilutive. The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, the Company’s undistributed earnings or losses are allocated on a proportionate basis among the holders of both Class A and Class B common stock. As a result, the net loss per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. Net Loss Per Share Attributable to Class A and Class B Common Stockholders —The computation of basic and diluted net loss per share is as follows (in thousands, except share and per share data): Fiscal Year Ended July 31 2015 2016 2017 Numerator: Net loss $ (126,127 ) $ (168,499 ) $ (458,011 ) Denominator: Weighted-average shares—basic and diluted 40,509,481 43,970,381 128,295,563 Net loss per share —basic and diluted $ (3.11 ) $ (3.83 ) $ (3.57 ) The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the years presented because including them would have been antidilutive are as follows: As of July 31 2015 2016 2017 Convertible preferred stock 76,319,511 76,319,511 — Stock awards 33,039,810 38,432,337 37,710,621 Employee stock purchase plan — — 1,447,385 Common stock subject to repurchase 2,549,102 954,215 243,148 Convertible preferred stock warrants 824,094 824,094 34,180 Total 112,732,517 116,530,157 39,435,334 Shares that will be issued in connection with the Company’s stock awards and shares that will be purchased under the employee stock purchase plan are generally automatically converted into shares of the Company’s Class A common stock. Shares issued in connection with an exercise of the common stock warrants are converted into shares of the Company’s Class B common stock and are voluntarily convertible into shares of Class A common stock at the option of the holder. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Taxes —Loss before provision for income taxes by fiscal year consisted of the following (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 Domestic $ (84,327 ) $ (104,339 ) $ (350,759 ) Foreign (40,256 ) (61,968 ) (102,569 ) Loss before provision for income taxes $ (124,583 ) $ (166,307 ) $ (453,328 ) Provision for income taxes by fiscal year consisted of the following (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 Current: State and local $ 56 $ 140 $ 193 Foreign 1,655 3,047 8,027 Total current taxes 1,711 3,187 8,220 Deferred: U.S. federal — — (1,342 ) State and local — — 13 Foreign (167 ) (995 ) (2,208 ) Total deferred taxes (167 ) (995 ) (3,537 ) Provision for income taxes $ 1,544 $ 2,192 $ 4,683 The income tax provision differs from the amount of income tax determined by applying the applicable U.S. federal statutory income tax rate of 34% to pretax loss. The reconciliation of the statutory federal income tax and the Company’s effective income tax is as follows (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 U.S. federal income tax at statutory rate $ (42,351 ) $ (56,545 ) $ (153,965 ) Change in valuation allowance 24,030 31,700 102,549 Effect of foreign operations 15,168 23,121 27,652 Stock-based compensation 2,152 3,655 6,701 Warrant revaluation 2,100 (681 ) 7,185 Non-deductible expenses 389 802 1,693 State income taxes 56 140 206 Transfer pricing adjustments — — 11,822 Other — — 840 Total $ 1,544 $ 2,192 $ 4,683 During the year ended July 31, 2017, the Company’s provision for income taxes was primarily attributable to foreign tax provision in certain foreign jurisdictions in which it conducts business. During the year ended July 31, 2016, the Company early adopted ASU 2015-17 on a prospective basis. As a result of this adoption, the Company decreased $3.3 million of its non-current deferred tax assets, which are included within other assets—non-current, and $3.3 million of its current deferred tax liabilities, which are included within accrued expenses and other liabilities, on its consolidated balance sheet upon adoption. The Company did not retrospectively adjust prior periods. The temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows (in thousands): As of July 31, 2016 2017 Deferred tax assets: Net operating loss carryforward $ 81,546 $ 135,929 Deferred revenue 9,935 37,274 Tax credit carryforward 7,304 13,100 Property and equipment — 1,118 Accruals and reserves 1,938 7,427 Stock compensation expense 5,780 27,512 Total deferred tax assets 106,503 222,360 Deferred tax liabilities: Deferred commission expense (13,483 ) (22,535 ) Other (424 ) (558 ) Total deferred tax liabilities (13,907 ) (23,093 ) Valuation allowance (91,346 ) (196,091 ) Net deferred tax assets $ 1,250 $ 3,176 Total net deferred tax assets and liabilities included in the Company’s consolidated balance sheets are as follows (in thousands): As of July 31, 2016 2017 Non-current deferred tax assets $ 1,250 $ 3,176 Current deferred tax liabilities — — Net deferred tax assets $ 1,250 $ 3,176 Management believes that, based on available evidence, both positive and negative, it is more likely than not that the U.S. deferred tax assets will not be utilized, such that a full valuation allowance has been recorded. The valuation allowance for deferred tax assets was $196.1 million as of July 31, 2017. The net change in the total valuation allowance for the years ended July 31, 2016 and 2017 was an increase of $36.7 million and $104.7 million , respectively. As of July 31, 2017 , the Company had approximately $453.5 million of federal net operating loss carryforwards and $282.4 million of state net operating loss carryforwards available to reduce future taxable income, which will begin to expire in 2030. In addition, the Company had approximately $11.6 million of federal research credit carryforwards and $11.6 million of state research credit carryforwards. The federal credits will begin to expire in 2030 and the state credits can be carried forward indefinitely. Utilization of the net operating loss and tax credits carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. Any annual limitation may result in the expiration of net operating losses and credits before utilization. If an ownership change occurred, utilization of the net operating loss and tax credit carryforwards could be significantly reduced. As of July 31, 2017 , the Company held an aggregate of $58.9 million in cash and cash equivalents in the Company’s foreign subsidiaries, of which $49.5 million was denominated in U.S. dollars. None of the Company’s short-term investments was held in its foreign subsidiaries as of July 31, 2017 . The Company attributes revenue, costs and expenses to domestic and foreign components based on the terms of its agreements with its subsidiaries. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries, as such earnings are to be reinvested offshore indefinitely. The income tax liability would be insignificant if these earnings were to be repatriated. The Company recognizes uncertain tax positions in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. A reconciliation of the Company’s unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands): Fiscal Year Ended July 31, 2016 2017 Balance at the beginning of the year $ 28,311 $ 19,711 Increases related to current year tax positions 1,654 22,571 Increases related to prior year tax positions 972 373 Decreases related to prior year tax positions (3,942 ) — Settlements with tax authorities (7,284 ) — Balance at the end of the year $ 19,711 $ 42,655 During the fiscal year ended July 31, 2017, the increase in unrecognized tax positions was primarily attributable to federal and state research and development credits, intercompany charges and business acquisitions in fiscal year 2017. During the fiscal year ended July 31, 2016, the $3.9 million decrease in unrecognized tax benefits was due to the issuance of a California Supreme Court opinion on December 31, 2015 disallowing taxpayers to use the three-factor apportionment formula pursuant to the Multistate Tax Compact, which the Company previously elected. The California Supreme Court decision resulted in an adjustment to the Company’s deferred tax assets and a corresponding adjustment to the valuation allowance but did not impact provision for income taxes in the Company’s statement of operations. In addition, the $7.3 million decrease in unrecognized tax benefits during the year ended July 31, 2016 was due to the resolution of an uncertain tax position with a foreign tax authority, of which $0.4 million impacted the Company’s effective tax rate and the remaining amount resulted in an adjustment to the Company’s deferred tax assets and a corresponding adjustment to the valuation allowance. As of July 31, 2017, if uncertain tax positions are fully recognized in the future, $1.6 million would impact the effective tax rate, and the remaining amount would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance. The Company recognizes interest and/or penalties related to income tax matters as a component of income tax expense. As of July 31, 2017 , the Company had recognized immaterial accrued interest and penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction as well as various U.S. states and foreign jurisdictions. The tax years 2009 and forward remain open to examination by the major jurisdictions in which the Company is subject to tax. These fiscal years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years, which have been carried forward and may be audited in subsequent years when utilized. The Company is subject to the continuous examination of income tax returns by various tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of the provision for income taxes. The Company believes that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations and does not anticipate a significant impact to the gross unrecognized tax benefits within the next 12 months related to these years. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jul. 31, 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 by bill-to location (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 U.S. $ 161,439 $ 280,800 $ 462,770 Europe, the Middle East and Africa 43,526 81,320 139,170 Asia-Pacific 28,386 63,610 131,921 Other Americas 8,081 19,198 33,008 Total revenue $ 241,432 $ 444,928 $ 766,869 As of July 31, 2016 and 2017, $30.0 million and $63.3 million , respectively, of the Company’s long-lived assets, net were located in the United States. |
401(K) PLAN
401(K) PLAN | 12 Months Ended |
Jul. 31, 2017 | |
Retirement Benefits [Abstract] | |
401(K) PLAN | 401(K) PLAN The Company has a 401(k) Savings Plan (“401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating full-time employees over the age of 21 may voluntarily elect to contribute up to 75% of their eligible compensation, subject to maximum allowed by law. The 401(k) Plan provides for a discretionary employer-matching contribution. The Company has not made any matching contributions to the 401(k) Plan to date. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 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 years ended July 31, 2015, 2016 and 2017, the Company’s purchases of goods or services from related parties totaled $0.2 million , $0.8 million and $0.9 million , respectively. The Company did not have any payables outstanding to related parties as of July 31, 2016 and 2017. Revenue from related parties for the years ended July 31, 2015, 2016 and 2017 were $0.1 million , $0.6 million and $0.4 million , respectively. The Company did not have any receivables outstanding from related parties as of July 31, 2016 and 2017, respectively. 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. As of July 31, 2017, entities affiliated with Lightspeed Venture partners owned approximately 7.5% of the Company's outstanding common stock. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Jul. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following sets forth selected unaudited quarterly consolidated statements of operations data for each of the eight quarters in the period ended July 31, 2017 (in thousands, except per share amounts). The information for each of these quarters has been prepared on a basis consistent with our audited annual consolidated financial statements included elsewhere in this report and, in the opinion of management, includes all adjustments of a normal, recurring nature that are necessary for the fair presentation of the results of operations for these periods in accordance with generally accepted accounting principles in the United States. This data should be read in conjunction with our audited consolidated financial statements and related notes included elsewhere in this report. These historical quarterly operating results are not necessarily indicative of the results that may be expected for a full fiscal year or any future period. Three Months Ended October 31, January 31, April 30, July 31, October 31, January 31, April 30, July 31, (unaudited, in thousands, except per share amounts) Revenue: Product $ 70,396 $ 81,229 $ 89,957 $ 109,216 $ 129,657 $ 138,508 $ 143,142 $ 171,704 Support and other services 17,360 21,468 24,733 30,569 37,152 43,687 48,621 54,398 Total revenue 87,756 102,697 114,690 139,785 166,809 182,195 191,763 226,102 Cost of revenue: Product (1) (2) 27,657 29,977 33,427 42,480 52,210 58,403 62,593 76,187 Support and other services (1) 7,422 7,959 9,966 11,899 17,552 18,443 20,613 21,330 Total cost of revenue 35,079 37,936 43,393 54,379 69,762 76,846 83,206 97,517 Gross profit 52,677 64,761 71,297 85,406 97,047 105,349 108,557 128,585 Operating expenses: Sales and marketing (1) (2) 58,599 66,128 75,849 87,917 128,775 111,244 128,007 132,503 Research and development (1) 23,857 26,024 31,390 35,129 75,281 70,914 74,607 67,817 General and administrative (1) 7,375 7,840 8,761 10,289 29,372 15,481 15,610 16,878 Total operating expenses 89,831 99,992 116,000 133,335 233,428 197,639 218,224 217,198 Loss from operations (37,154 ) (35,231 ) (44,703 ) (47,929 ) (136,381 ) (92,290 ) (109,667 ) (88,613 ) Other income (expense)—net (871 ) 2,646 (2,106 ) (959 ) (25,712 ) (421 ) 303 (547 ) Loss before provision for income taxes (38,025 ) (32,585 ) (46,809 ) (48,888 ) (162,093 ) (92,711 ) (109,364 ) (89,160 ) Provision for income taxes 520 620 11 1,041 76 501 2,613 1,493 Net loss $ (38,545 ) $ (33,205 ) $ (46,820 ) $ (49,929 ) $ (162,169 ) $ (93,212 ) $ (111,977 ) $ (90,653 ) Net loss per share attributable to Class A and Class B common stockholders—basic and diluted $ (0.90 ) $ (0.76 ) $ (1.05 ) $ (1.11 ) $ (2.18 ) $ (0.66 ) $ (0.78 ) $ (0.59 ) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share amounts may not equal annual basic and diluted per share amounts. (1) Includes stock-based compensation as follows: Three Months Ended October 31, January 31, April 30, July 31, October 31, January 31, April 30, July 31, (unaudited, in thousands) Product cost of sales $ 109 $ 104 $ 98 $ 80 $ 966 $ 848 $ 610 $ 642 Support cost of sales 293 241 230 204 3,350 2,389 2,471 2,201 Sales and marketing 2,118 1,964 2,029 1,895 33,891 15,528 15,726 12,972 Research and development 1,629 1,612 1,519 1,499 34,026 28,759 27,041 19,218 General and administrative 1,237 1,029 1,168 998 18,495 5,083 4,503 2,772 Total $ 5,386 $ 4,950 $ 5,044 $ 4,676 $ 90,728 $ 52,607 $ 50,351 $ 37,805 (2) Includes amortization of intangible assets as follows: Three Months Ended October 31, January 31, April 30, July 31, October 31, January 31, April 30, July 31, (unaudited, in thousands) Product cost of sales $ — $ — $ — $ — $ 238 $ 360 $ 358 $ 358 Sales and marketing — — — 167 248 250 250 Total $ — $ — $ — $ — $ 405 $ 608 $ 608 $ 608 |
BASIS OF PRESENTATION AND SUM26
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements, which include the accounts of Nutanix, Inc. and its wholly-owned subsidiaries, 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. |
Use of Estimates | The preparation of 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; useful lives of intangible assets and property and equipment; allowance for doubtful accounts; determination of fair value of common stock and convertible preferred stock, fair value of stock-based awards and convertible preferred stock warrant liability; accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions; warranty liability; fair value of contingent consideration in a business combination; sales commissions expense; 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 | Credit Risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents primarily with domestic financial institutions that are federally insured within statutory limits. The Company places its deposits with multiple institutions, however such deposits may exceed federally insured limits. The Company provides credit, in the normal course of business, to a number of companies and performs credit evaluations of its customers. Concentration of Revenue and Accounts Receivable —The Company sells its products primarily through Partners and occasionally directly to end-customers. Vendor Risk —The Company relies on a limited number of suppliers for its contract manufacturing and certain raw material components. In instances where suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to its customers on time. |
Cash, Cash Equivalents | The Company classifies all highly liquid investments with original maturities of three months or less from the date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as marketable securities. |
Short-Term Investments | The Company determines the appropriate classifications of its marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date. The Company classifies and accounts for its marketable securities as available-for-sale securities. The Company classifies its marketable securities with stated maturities greater than twelve months as short-term investments due to its intention to use these securities to support its current operations. The Company’s marketable securities are recorded at their estimated fair value. Unrealized gains or losses on available-for-sale securities are reported in other comprehensive income (loss). The Company periodically reviews whether its securities may be other-than-temporarily impaired, including whether or not (i) the Company has the intent to sell the security or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If one of these factors is met, the Company will record an impairment loss associated with its impaired investment. The impairment loss will be recorded as a write-down of investments in the consolidated balance sheets and a realized loss within other expense in the consolidated statements of operations. |
Fair Value Measurement | The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term nature. The fair value of the Company’s Senior Notes (see Note 6) approximates their face value as the effective interest rates on the Senior Notes approximate market interest rates for similar instruments. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. Credit is extended to customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral or other security to support accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains an allowance for doubtful accounts. The allowance for doubtful accounts is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The Company evaluates the collectability of its accounts receivable based on known collection risks and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filings or substantial downgrading of credit ratings), the Company records allowance for doubtful accounts in order to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company records allowance for doubtful accounts based on the length of time the accounts receivable are past due and the Company’s historical experience of collections and write-offs. |
Property and Equipment | Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. The Company includes the cost to acquire demonstration units and the related accumulated depreciation in property and equipment as such units are generally not available for sale. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the related assets. |
Business Combination | 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. |
Impairment of Long-Lived Assets | Goodwill represents the future economic benefits arising from other assets acquired in a business combination or an acquisition that are not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Intangible assets consist of identifiable intangible assets, including developed technology, customer relationships and in-process research and development (“IPR&D”), resulting from business acquisitions. Finite-lived intangible assets are recorded at fair value, net of accumulated amortization. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense is included as a component of cost of product revenue and sales and marketing expense in the accompanying consolidated statements of operations. Amounts included in sales and marketing expense relate to amortization of intangible asset attributed to customer relationships. Goodwill and other intangible assets acquired in a business combination and determined to have an indefinite useful life, such as IPR&D, are not amortized, but instead tested for impairment at least annually as of May 1st. Such goodwill and other intangible assets may also be tested for impairment between annual tests in the presence of impairment indicators such as, but not limited to: (a) a significant adverse change in legal factors or in the business climate; (b) a substantial decline in the Company's market capitalization, (c) an adverse action or assessment by a regulator; (d) unanticipated competition; (e) loss of key personnel; (f) a more likely-than-not expectation of sale or disposal of a reporting unit or a significant portion thereof; (g) a realignment of the Company's resources or restructuring of its existing businesses in response to changes to industry and market conditions; (h) testing for recoverability of a significant asset group within a reporting unit; or (i) higher discount rate used in the impairment analysis as impacted by an increase in interest rates. 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, the Company determines the fair value of its reporting unit based on the Company's 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, an impairment analysis will be performed. The Company compares the fair value of its reporting unit with its carrying amount and if the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized. Long-lived assets, such as property and equipment and finite-lived intangible assets subject to depreciation and amortization, are evaluated for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Among the factors and circumstances we considered in determining recoverability are: (i) a significant decrease in the market price of a long-lived asset; (ii) a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; (iii) a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator; (iv) an accumulation of costs significantly in excess of the amount originally expected for the acquisition and (v) current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Revenue Recognition | The Company derives revenue from two sources (1) product revenue, which consists of hardware combined with software and software-only revenue, and (2) support and service revenue which includes post-contract customer support (“PCS”) and professional services. The Company recognizes revenue when: • Persuasive evidence of an arrangement exists—The Company relies on sales agreements and purchase orders to determine the existence of an arrangement. • Delivery has occurred—The Company typically recognizes product revenue upon shipment, when title and risk of loss are transferred to its Partners at that time. Service revenue is recognized as services are performed. • The fee is fixed or determinable—The Company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction. Payment from Partners is not contingent upon the Partners receiving payments from end-customers. • Collection is reasonably assured—The Company assesses collectability based on a credit analysis and payment history. The Company reports revenue net of sales taxes. The Company includes shipping charges billed to customers in revenue and the related shipping costs are included in cost of revenue. A substantial majority of the Company’s product revenue is generated from the sale of the Company’s software operating system, which is typically delivered on a hardware appliance that is configured to order. The software is deemed essential to the functionality of the hardware. Although historically it has represented a small portion of the Company’s product revenue, the Company’s proprietary software can also be delivered on a software-only basis. The Company also sells non-essential software, which can be purchased by customers to enhance the functionality of the Company’s offerings. The hardware appliance and the software essential to the functionality of the hardware appliance are considered non-software deliverables and, therefore, are not subject to industry-specific software revenue recognition guidance. Software-only and non-essential software sales are subject to the industry-specific software revenue recognition guidance. The Company established Vendor Specific Objective Evidence (“VSOE”) of fair value for certain of its PCS offerings during the fourth quarter of the year ended July 31, 2015. The establishment of VSOE for these PCS offerings did not have a material impact on the Company’s results. When VSOE of fair value for PCS does not exist, revenues subject to industry-specific software revenue recognition guidance are deferred and generally recognized ratably over the PCS period (see VSOE related discussion below). Support and other services revenue includes the sale of PCS contracts and professional services such as installation, training and onsite engineering support. The Company’s PCS contracts include the right to receive unspecified software upgrades and enhancements on a when-and-if-available basis, bug fixes, as well as parts replacement services related to the Company’s hardware appliances. The Company’s PCS contracts support both non-software deliverables and non-essential software. The Company allocates fees associated with PCS to the software deliverables and non-software deliverables in a contract based on the relative selling prices of such deliverables, which is based on VSOE when available. When VSOE is not available, relative selling prices are determined based upon the Company’s best estimate of selling price, as third-party evidence is also not available. Revenue related to PCS contracts are recognized ratably over the contractual term, which generally range from one to five years. Revenue related to installation, training and onsite engineering support services are recognized as the services are provided to the customer. Most of the Company’s arrangements, other than stand-alone renewals of PCS contracts, are multiple-element arrangements with a combination of product and support and service related deliverables (as defined above). In multiple-element revenue arrangements, the Company allocates consideration at the inception of an arrangement to all deliverables based on the relative selling price method in accordance with the selling price hierarchy, which includes (i) VSOE of selling price, if available; (ii) third-party evidence (“TPE”) of selling price, if VSOE is not available; and (iii) best estimate of selling price (“BESP”), if neither VSOE nor TPE is available. For deliverables where the Company has not established VSOE, the Company typically allocates consideration to all deliverables based on BESP as TPE typically cannot be obtained. VSOE—In the Company’s multiple-element arrangements, the Company determines VSOE based on its historical pricing and discounting practices for the specific products and services when sold separately. In determining VSOE, the Company requires that a substantial majority of the stand-alone selling prices fall within a reasonably narrow pricing range. The Company has established VSOE for certain PCS related deliverables based upon the pricing and discounting of a substantial majority of stand-alone sales of the deliverables falling within a reasonably narrow range. The Company has not established VSOE for any of its other deliverables given that its pricing is not sufficiently concentrated (based on an analysis of separate sales of the deliverables) to conclude that it can demonstrate VSOE of selling prices. TPE—When VSOE cannot be established for deliverables in multiple-element arrangements, the Company applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for interchangeable products or services when sold separately to similarly situated customers. However, because the Company’s products contain a significant element of proprietary technology and the Company’s solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality cannot be obtained. BESP—When neither VSOE nor TPE can be established, the Company utilizes BESP to allocate consideration to deliverables in a multiple-element arrangement. The Company’s process to determine its BESP for products and services is based on qualitative and quantitative considerations of multiple factors, which primarily include historical sales, margin objectives and discount behavior. Additional considerations are given to other factors such as customer demographics, pricing practices and market conditions. |
Deferred Revenue | The Company recognizes certain revenue ratably over the contractual support period. Amounts prepaid by customers in excess of revenue recognized are deferred. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the consolidated balance sheet date. |
Deferred Commissions | Deferred commissions consist of direct and incremental costs paid to the Company’s sales force related to customer contracts. The deferred commission amounts are recoverable through the revenue streams that will be recognized under the related customer contracts. Direct sales commissions are deferred when earned and amortized over the same period that revenue is recognized from the related customer contract. Amortization of deferred commissions is included in sales and marketing expense in the consolidated statements of operations. |
Cost of Revenue | Cost of revenue consists of cost of product revenue and cost of support and other revenue. Personnel costs associated with the Company’s operations and global customer support organizations consist of salaries, benefits, and stock-based compensation. Allocated costs consist of certain facilities, depreciation and amortization, recruiting, and information technology costs allocated based on headcount. |
Warranties | The Company generally provides a one -year warranty on hardware and a 90 -day warranty on software licenses. The hardware warranty provides for parts replacement for defective components and the software warranty provides for bug fixes. With respect to the hardware warranty obligation, the Company has a warranty agreement with its contract manufacturers under which the contract manufacturers are generally required to replace defective hardware within three years of shipment. Furthermore, the Company’s PCS agreements provide for the same parts replacement that customers are entitled to under the warranty program, except that replacement parts are delivered according to targeted response times to minimize disruption to the customers’ critical business applications. Substantially all customers purchase PCS agreements. Given the warranty agreement with the Company’s contract manufacturers and considering that substantially all products are sold together with PCS agreements, the Company generally has very limited exposure related to warranty costs and therefore no warranty reserve has been recognized. |
Research and Development | The Company’s research and development expense consists primarily of product development personnel costs, including salaries and benefits, stock-based compensation and allocated facilities costs. Research and development costs are expensed as incurred. |
Convertible Preferred Stock Warrant Liability | The Company accounted for freestanding warrants to purchase shares of its Convertible Preferred Stock (the “Convertible Preferred Stock Warrants”), as liabilities in the consolidated balance sheets at their estimated fair value. The fair value of the warrants was estimated using the Black-Scholes-Merton (“Black-Scholes”) option-pricing model and was remeasured at fair value at each reporting date until the warrants were converted to common stock upon the completion of the Company’s IPO. Changes in the estimated fair value of the Convertible Preferred Stock Warrants were recorded in the consolidated statements of operations within other expense, net. Upon the conversion of the underlying Convertible Preferred Stock to common stock upon the completion of the Company's IPO, the related convertible preferred stock warrant liability was re-measured to its then fair value and was reclassified to additional paid-in capital. |
Stock-Based Compensation | Stock-based compensation expense is measured based on the grant-date fair value of the share-based awards. The fair value of the stock options and purchase rights issued to employees under our ESPP is estimated using Black-Scholes, which is impacted by the fair value of our common stock, as well as changes in assumptions regarding a number of subjective variables. These variables include the expected common stock price volatility over the term of the awards, the expected term of the awards, risk-free interest rates and expected dividend yield. The Company grants both stock awards with service condition only and with service and performance conditions. The Company recognizes stock-based compensation expense for employee stock awards with a service condition only using the straight-line method over the requisite service period of the awards, which is generally the vesting period. The Company uses the accelerated attribution method of recognizing stock-based compensation expense related to its employee stock awards that contain both service and performance conditions. The fair value of the ESPP purchase rights is recognized as an expense on a straight-line basis over the offering period. The Company determines the fair value of the stock awards issued to non-employees on the date of grant utilizing Black-Scholes. Stock-based compensation expense for stock awards issued to non-employees is recognized over the requisite service period or when it is probable that the performance condition will be satisfied. Awards subject to vesting are periodically remeasured to current fair value over the vesting period. |
Foreign Currency | The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Transactions denominated in currencies other than the functional currency are re-measured at the average exchange rate in effect during the reporting period. At the end of each reporting period all monetary assets and liabilities of the Company’s subsidiaries are re-measured at the current U.S. dollar exchange rate at the end of the reporting period. Remeasurement gains and losses are included within other expense, net in the accompanying consolidated statements of operations. |
Income Taxes | The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance to amounts that are more likely than not to be realized. The Company records a liability for uncertain tax positions if it is not more likely than not to be sustained based solely on its technical merits as of the reporting date. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and may not accurately anticipate actual outcomes. |
Advertising Costs | Advertising costs are charged to sales and marketing expenses as incurred in the consolidated statements of operations. |
Deferred Offering Costs, Policy | Deferred offering costs consisted of fees and expenses incurred in connection with the sale of the Company’s common stock in its IPO, including the legal, accounting, printing and other IPO-related costs. Upon completion of the Company’s IPO, these deferred offering costs were reclassified to stockholders’ (deficit) equity and offset against the proceeds of the offering. |
Recently Issued and Adopted Accounting Pronouncements | 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. 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 early adopted ASU 2017-04 in fiscal 2017 and its adoption did not have any impact on its consolidated financial statements. 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 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 (ASC 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 elected to early adopt the standard effective August 1, 2017 using the full retrospective method, which requires the Company to restate our historical financial information for fiscal years 2016 and 2017 to be consistent with the standard. The most significant impact of the standard relates to the timing of revenue recognition for certain software licenses sold with PCS for which it does not have 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. In addition, the adoption of ASC 606 will also result in differences in the timing of recognition of contract costs, such as sales commissions, as well as the corresponding impacts to provision for income taxes. The adoption of the standard will result in the recognition of additional revenue of $58.5 million and $79.0 million for fiscal 2016 and fiscal 2017, respectively, an increase in gross profit of $58.5 million and $79.0 million in fiscal 2016 and fiscal 2017, respectively, a decrease in sales and marketing expense of $1.9 million in fiscal 2016 and an increase in sales and marketing of $0.5 million in fiscal 2017, and a decrease in loss from operations of $60.4 million in fiscal 2016 and $78.5 million in fiscal 2017. In addition, the adoption of the standard will result in a decrease in total net deferred revenue of $78.0 million and $157.0 million as of July 31, 2016 and 2017, respectively, driven by the upfront recognition of software licenses sold with PCS for which the Company does not have VSOE, and an increase in total deferred commissions of $12.6 million and $12.1 million as of July 31, 2016 and 2017, respectively, which will be recognized in sales and marketing expense in future periods. The adoption of the standard will have no significant impact to the provision for income taxes and will have no impact to the net cash from or used in operating, investing, or financing on the Company's consolidated statements of cash flows. See Expected Impacts to Reported Results below for the impact of adoption of the standard on the Company's consolidated balance sheets and consolidated statements of operations. |
BASIS OF PRESENTATION AND SUM27
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jul. 31, 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 Fiscal Year Ended July 31, As of July 31 Customers 2015 2016 2017 2016 2017 Partner A 23 % 15 % 11 % * * Partner B 15 % 20 % 22 % 17 % 12 % Partner C * 14 % 18 % 12 % 14 % Partner D * * * 23 % 20 % Partner E * 11 % * 11 % * Partner F * 15 % 13 % * 18 % ___________________ * Less than 10% |
Schedule of Allowance for Doubtful Accounts Receivable | The changes in the allowance for doubtful accounts are as follows (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 Allowance for doubtful accounts—beginning balance $ 400 $ 410 $ 132 Charged to provision for doubtful accounts (credit) 119 (85 ) — Write-offs (109 ) (193 ) — Allowance for doubtful accounts—ending balance $ 410 $ 132 $ 132 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Fiscal Year 2016: Income Statement: Year Ended July 31, 2016 As Reported Impact of Adoption As Adjusted (in thousands, except per share data) Product revenue $ 350,798 $ 63,112 $ 413,910 Support and other services 94,130 (4,630 ) 89,500 Total revenue $ 444,928 $ 58,482 $ 503,410 Gross profit $ 274,141 $ 58,482 $ 332,623 Operating expenses $ 439,158 $ (1,909 ) $ 437,249 Loss from operations $ (165,017 ) $ 60,391 $ (104,626 ) Net Loss $ (168,499 ) $ 60,266 $ (108,233 ) Basic and diluted net loss per share $ (3.83 ) $ 1.37 $ (2.46 ) Fiscal Year 2017: Income Statement: Year Ended July 31, 2017 As Reported Impact of Adoption As Adjusted (in thousands, except per share data) Product revenue $ 583,011 $ 90,286 $ 673,297 Support and other services 183,858 (11,252 ) 172,606 Total revenue $ 766,869 $ 79,034 $ 845,903 Gross profit $ 439,538 $ 79,034 $ 518,572 Operating expenses $ 866,489 $ 492 $ 866,981 Loss from operations $ (426,951 ) $ 78,542 $ (348,409 ) Net Loss $ (458,011 ) $ 78,373 $ (379,638 ) Basic and diluted net loss per share $ (3.57 ) $ 0.61 $ (2.96 ) Fiscal Year 2016: Balance Sheet: As of July 31, 2016 As Reported Impact of Adoption As Adjusted (in thousands, except per share data) Deferred commissions - current $ 17,864 $ (3,648 ) (1) $ 14,216 Deferred commissions - non-current 19,029 16,277 (1) 35,306 Total deferred commissions $ 36,893 $ 12,629 $ 49,522 Deferred revenue - current $ 130,569 $ (28,962 ) (2) $ 101,607 Deferred revenue - non-current 165,896 (49,022 ) (2) 116,874 Total deferred revenue $ 296,465 $ (77,984 ) $ 218,481 Accrued expenses and other current liabilities $ 5,537 $ 125 (3) $ 5,662 Stockholders' deficit $ (376,315 ) $ 90,488 $ (285,827 ) Fiscal Year 2017: Balance Sheet: As of July 31, 2017 As Reported Impact of Adoption As Adjusted (in thousands, except per share data) Deferred commissions - current $ 27,679 $ (3,836 ) (1) $ 23,843 Deferred commissions - non-current 33,709 15,975 (1) 49,684 Total deferred commissions $ 61,388 $ 12,139 $ 73,527 Deferred revenue - current $ 233,498 $ (63,375 ) (2) $ 170,123 Deferred revenue - non-current 292,573 (93,640 ) (2) 198,933 Total deferred revenue $ 526,071 $ (157,015 ) $ 369,056 Accrued expenses and other current liabilities $ 9,414 $ 293 (3) $ 9,707 Stockholders' equity $ 48,202 $ 168,861 $ 217,063 _______________________ (1) Impact of cumulative change in commissions expense (2) Impact of cumulative change in revenue (3) Impact of cumulative change in provision for income taxes |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jul. 31, 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 11,853 Intangible assets 24,270 Other assets 761 Deferred revenue (6,007 ) Debt (7,124 ) Other liabilities (2,515 ) 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): Fiscal Year Ended 2016 2017 Revenue $ 454,665 $ 767,681 Net loss $ (199,351 ) $ (459,454 ) Basic and diluted net loss per share $ (4.36 ) $ (3.53 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jul. 31, 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: As of July 31, 2016 Level I Level II Level III Total (In thousands) 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 July 31, 2017 Level I Level II Level III Total (In thousands) Financial Assets: Cash equivalents: Money market funds $ 34,784 $ — $ — $ 34,784 Commercial paper — 23,041 — 23,041 Short-term investments: Corporate bonds — 160,634 — 160,634 Commercial paper — 36,084 — 36,084 U.S. government securities — 13,976 — 13,976 Total measured at fair value 34,784 233,735 — 268,519 Cash 80,534 Total cash, cash equivalents and short-term investments $ 349,053 Financial Liabilities: Contingent consideration $ — $ — $ 4,295 $ 4,295 |
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): Fiscal Year Ended July 31, 2015 2016 2017 Convertible preferred stock warrant liability—beginning balance $ 5,507 $ 11,683 $ 9,679 Change in fair value* 6,176 (2,004 ) 21,133 Reclassification of unexercised warrants to APIC upon the IPO — — (30,812 ) Convertible preferred stock warrant liability—ending balance $ 11,683 $ 9,679 $ — ______________ * Recognized in the consolidated statements of operations within other expense—net. A summary of the changes in the fair value of the Company’s contingent consideration is as follows (in thousands): Fiscal Year Ended July 31, 2017 Contingent consideration—beginning balance $ — Assumed in the PernixData acquisition 2,371 Change in fair value* 1,924 Contingent consideration—ending balance $ 4,295 ______________ * Recognized 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. The fair value is determined by calculating the net present value of the expected payments using significant inputs that are not observable in the market, including the probability of achieving the milestone, estimated bookings and discount rates. The fair value of the contingent consideration will increase or decrease according to the movement of the inputs. |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Jul. 31, 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 July 31 2017 Due within 1 year $ 151,014 Due after 1 year through 3 years 59,680 Total $ 210,694 |
Schedule of Property, Plant and Equipment | Property and Equipment—Net —Property and equipment, net consists of the following (in thousands): Estimated Useful Life As of July 31 2016 2017 (In months) Computer, production, engineering and other equipment 36 $ 54,161 $ 85,280 Demonstration units 12 33,184 46,387 Leasehold improvements ** 6,619 10,562 Furniture and fixtures 60 3,641 4,744 Total property and equipment—gross 97,605 146,973 Less accumulated depreciation and amortization (55,387 ) (88,901 ) Total property and equipment—net $ 42,218 $ 58,072 _________________ ** 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 consists of the following (in thousands): As of July 31, 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 (1,314 ) Accumulated amortization of customer relationships (915 ) Total accumulated amortization (2,229 ) Intangible assets, net $ 26,001 Changes in the net book value of intangible assets are as follows (in thousands): Fiscal Year Ended Intangible assets, net—beginning balance $ — Acquired in the Calm Acquisition 3,960 Acquired in the PernixData Acquisition 24,270 Amortization of intangible assets * (2,229 ) Intangible assets, net—ending balance $ 26,001 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net consists of the following (in thousands): As of July 31, 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 (1,314 ) Accumulated amortization of customer relationships (915 ) Total accumulated amortization (2,229 ) Intangible assets, net $ 26,001 Changes in the net book value of intangible assets are as follows (in thousands): Fiscal Year Ended Intangible assets, net—beginning balance $ — Acquired in the Calm Acquisition 3,960 Acquired in the PernixData Acquisition 24,270 Amortization of intangible assets * (2,229 ) Intangible assets, net—ending balance $ 26,001 ______________ * Represents amortization expense of finite-lived intangible assets recognized in the consolidated statement of operations during the year within product cost of revenue and sales and marketing expenses. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated future amortization expense of finite-lived intangible assets is as follows: Fiscal Year Ending July 31: (In thousands) 2018 $ 2,220 2019 2,201 2020 2,201 2021 2,201 Thereafter 1,078 Total $ 9,901 |
Schedule of Accrued Liabilities | Accrued Compensation and Benefits —Accrued compensation and benefits consists of the following (in thousands): As of July 31 2016 2017 Accrued commissions $ 14,203 $ 20,388 Contributions to ESPP withheld — 14,371 Accrued bonus 3,592 7,342 Accrued vacation 3,490 6,286 Payroll taxes payable 1,234 3,434 Other 2,028 5,700 Total accrued compensation and benefits $ 24,547 $ 57,521 Accrued Expenses and Other Current Liabilities —Accrued expenses and other current liabilities consists of the following (in thousands): As of July 31 2016 2017 Accrued professional services $ 3,585 $ 4,167 Income taxes payable 1,417 3,580 Other 535 1,667 Total accrued expenses and other current liabilities $ 5,537 $ 9,414 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Due Under Operating Leases | Future minimum payments due under operating leases as of July 31, 2017 are as follows (in thousands): Fiscal Year Ending July 31: 2018 $ 16,304 2019 14,891 2020 12,758 2021 9,197 2022 3,535 Thereafter 1,692 Total $ 58,377 |
CONVERTIBLE PREFERRED STOCK W32
CONVERTIBLE PREFERRED STOCK WARRANTS (Tables) | 12 Months Ended |
Jul. 31, 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 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The assumptions used to determine the fair value of the Company’s Series A convertible preferred stock warrants prior to the Company's IPO are as follows: As of July 31, 2016 Fair value of convertible preferred stock $ 12.31 Risk-free interest rate 0.9 % Contractual term (in years) 3.4 Volatility 54 % Dividend yield — The assumptions used to determine the fair value of the Company’s Series D convertible preferred stock warrants prior to the Company's IPO are as follows: As of July 31, 2016 Fair value of convertible preferred stock $ 13.16 Risk-free interest rate 1.0 % Contractual term (in years) 4.9 Volatility 35 % Dividend yield — |
CONVERTIBLE PREFERRED STOCK (Ta
CONVERTIBLE PREFERRED STOCK (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Convertible Preferred Stock | Shares Authorized Shares Issued and Outstanding Aggregate Liquidation Preference (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) | 12 Months Ended |
Jul. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of RSUs Activity | The Company’s summary of RSU 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 12,986,597 $ 21.84 Released (6,146,169 ) $ 15.63 Canceled/forfeited (1,729,707 ) $ 13.57 Outstanding—July 31, 2017 17,376,090 $ 18.85 |
Schedule of Employee Stock Purchase Plan, 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): Fiscal Year Ended Expected term (in years) 0.75 Risk-free interest rate 0.6 % Volatility 51.0 % Dividend yield — % |
Schedule of Stock Option Activity | The Company’s stock option activity under the Stock Plan is as follows: Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (In years) (In thousands) Outstanding—August 1, 2016 26,166,968 (1) $ 4.39 7.5 $ 208,101 Options granted 1,047,950 12.14 Options exercised (4,786,381 ) 3.27 Options canceled/forfeited (2,094,006 ) 8.89 Outstanding—July 31, 2017 20,334,531 4.59 6.4 338,787 Exercisable—July 31, 2017 19,645,676 4.43 6.3 330,486 Vested and expected to vest—July 31, 2017 20,334,531 4.59 6.4 338,787 (1) Includes 455,000 stock options with both service and performance conditions with a weighted-average fair value per share of $3.78 (the “Performance Stock Options”). Vesting of the Performance Stock Options was subject to continuous service with the Company (the “service condition”) and satisfaction of certain liquidity events of the Company (the “performance condition”). The Company recognized cumulative stock-based compensation expense related to the Performance Stock Options in the first quarter of fiscal year 2017 as the performance condition was met upon the Company's successful IPO. The cumulative stock-based compensation expense recorded in the first quarter of fiscal 2017 was for the portion of the awards for which the relevant service condition had been satisfied and the remaining expense is being recognized over the remaining service period. |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-Based Compensation —Total stock-based compensation expense recognized for stock awards granted under the equity award plans in the consolidated statements of operations is as follows (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 Cost of revenue: Product $ 363 $ 391 $ 3,066 Support and other services 718 968 10,411 Sales and marketing 6,474 8,006 78,117 Research and development 5,411 6,259 109,044 General and administrative 4,174 4,432 30,853 Total stock-based compensation expense $ 17,140 $ 20,056 $ 231,491 |
Schedule Stock Option Valuation Assumptions | The fair value of the Company’s stock options was estimated using the following weighted-average assumptions: Fiscal Year Ended July 31, 2015 2016 2017 Fair value of common stock $ 10.29 $ 14.81 $ 12.14 Expected term (in years) 6.1 6.1 6.1 Risk-free interest rate 1.7 % 1.6 % 1.3 % Volatility 46 % 42 % 52 % Dividend yield — — — |
STOCKHOLDERS_ EQUITY STOCKHOLDE
STOCKHOLDERS’ EQUITY STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Equity [Abstract] | |
Schedule of Stock by Class | July 31, 2017 Shares reserved for future equity grants 15,149,589 Shares underlying outstanding stock options 20,334,531 Shares underlying outstanding restricted stock units 17,376,090 Shares reserved for future employee stock purchase plan awards 2,553,946 Shares underlying outstanding common stock warrants 34,180 Total 55,448,336 |
NET LOSS AND UNAUDITED NET LO36
NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS (Tables) | 12 Months Ended |
Jul. 31, 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): Fiscal Year Ended July 31 2015 2016 2017 Numerator: Net loss $ (126,127 ) $ (168,499 ) $ (458,011 ) Denominator: Weighted-average shares—basic and diluted 40,509,481 43,970,381 128,295,563 Net loss per share —basic and diluted $ (3.11 ) $ (3.83 ) $ (3.57 ) |
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 years presented because including them would have been antidilutive are as follows: As of July 31 2015 2016 2017 Convertible preferred stock 76,319,511 76,319,511 — Stock awards 33,039,810 38,432,337 37,710,621 Employee stock purchase plan — — 1,447,385 Common stock subject to repurchase 2,549,102 954,215 243,148 Convertible preferred stock warrants 824,094 824,094 34,180 Total 112,732,517 116,530,157 39,435,334 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income Taxes —Loss before provision for income taxes by fiscal year consisted of the following (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 Domestic $ (84,327 ) $ (104,339 ) $ (350,759 ) Foreign (40,256 ) (61,968 ) (102,569 ) Loss before provision for income taxes $ (124,583 ) $ (166,307 ) $ (453,328 ) |
Schedule of Components of Income Tax Expense (Benefit) | Provision for income taxes by fiscal year consisted of the following (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 Current: State and local $ 56 $ 140 $ 193 Foreign 1,655 3,047 8,027 Total current taxes 1,711 3,187 8,220 Deferred: U.S. federal — — (1,342 ) State and local — — 13 Foreign (167 ) (995 ) (2,208 ) Total deferred taxes (167 ) (995 ) (3,537 ) Provision for income taxes $ 1,544 $ 2,192 $ 4,683 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the statutory federal income tax and the Company’s effective income tax is as follows (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 U.S. federal income tax at statutory rate $ (42,351 ) $ (56,545 ) $ (153,965 ) Change in valuation allowance 24,030 31,700 102,549 Effect of foreign operations 15,168 23,121 27,652 Stock-based compensation 2,152 3,655 6,701 Warrant revaluation 2,100 (681 ) 7,185 Non-deductible expenses 389 802 1,693 State income taxes 56 140 206 Transfer pricing adjustments — — 11,822 Other — — 840 Total $ 1,544 $ 2,192 $ 4,683 |
Schedule of Deferred Tax Assets and Liabilities | The temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows (in thousands): As of July 31, 2016 2017 Deferred tax assets: Net operating loss carryforward $ 81,546 $ 135,929 Deferred revenue 9,935 37,274 Tax credit carryforward 7,304 13,100 Property and equipment — 1,118 Accruals and reserves 1,938 7,427 Stock compensation expense 5,780 27,512 Total deferred tax assets 106,503 222,360 Deferred tax liabilities: Deferred commission expense (13,483 ) (22,535 ) Other (424 ) (558 ) Total deferred tax liabilities (13,907 ) (23,093 ) Valuation allowance (91,346 ) (196,091 ) Net deferred tax assets $ 1,250 $ 3,176 Total net deferred tax assets and liabilities included in the Company’s consolidated balance sheets are as follows (in thousands): As of July 31, 2016 2017 Non-current deferred tax assets $ 1,250 $ 3,176 Current deferred tax liabilities — — Net deferred tax assets $ 1,250 $ 3,176 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the Company’s unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands): Fiscal Year Ended July 31, 2016 2017 Balance at the beginning of the year $ 28,311 $ 19,711 Increases related to current year tax positions 1,654 22,571 Increases related to prior year tax positions 972 373 Decreases related to prior year tax positions (3,942 ) — Settlements with tax authorities (7,284 ) — Balance at the end of the year $ 19,711 $ 42,655 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following table sets forth revenue by geographic area by bill-to location (in thousands): Fiscal Year Ended July 31, 2015 2016 2017 U.S. $ 161,439 $ 280,800 $ 462,770 Europe, the Middle East and Africa 43,526 81,320 139,170 Asia-Pacific 28,386 63,610 131,921 Other Americas 8,081 19,198 33,008 Total revenue $ 241,432 $ 444,928 $ 766,869 |
SELECTED QUARTERLY FINANCIAL 39
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements | Three Months Ended October 31, January 31, April 30, July 31, October 31, January 31, April 30, July 31, (unaudited, in thousands, except per share amounts) Revenue: Product $ 70,396 $ 81,229 $ 89,957 $ 109,216 $ 129,657 $ 138,508 $ 143,142 $ 171,704 Support and other services 17,360 21,468 24,733 30,569 37,152 43,687 48,621 54,398 Total revenue 87,756 102,697 114,690 139,785 166,809 182,195 191,763 226,102 Cost of revenue: Product (1) (2) 27,657 29,977 33,427 42,480 52,210 58,403 62,593 76,187 Support and other services (1) 7,422 7,959 9,966 11,899 17,552 18,443 20,613 21,330 Total cost of revenue 35,079 37,936 43,393 54,379 69,762 76,846 83,206 97,517 Gross profit 52,677 64,761 71,297 85,406 97,047 105,349 108,557 128,585 Operating expenses: Sales and marketing (1) (2) 58,599 66,128 75,849 87,917 128,775 111,244 128,007 132,503 Research and development (1) 23,857 26,024 31,390 35,129 75,281 70,914 74,607 67,817 General and administrative (1) 7,375 7,840 8,761 10,289 29,372 15,481 15,610 16,878 Total operating expenses 89,831 99,992 116,000 133,335 233,428 197,639 218,224 217,198 Loss from operations (37,154 ) (35,231 ) (44,703 ) (47,929 ) (136,381 ) (92,290 ) (109,667 ) (88,613 ) Other income (expense)—net (871 ) 2,646 (2,106 ) (959 ) (25,712 ) (421 ) 303 (547 ) Loss before provision for income taxes (38,025 ) (32,585 ) (46,809 ) (48,888 ) (162,093 ) (92,711 ) (109,364 ) (89,160 ) Provision for income taxes 520 620 11 1,041 76 501 2,613 1,493 Net loss $ (38,545 ) $ (33,205 ) $ (46,820 ) $ (49,929 ) $ (162,169 ) $ (93,212 ) $ (111,977 ) $ (90,653 ) Net loss per share attributable to Class A and Class B common stockholders—basic and diluted $ (0.90 ) $ (0.76 ) $ (1.05 ) $ (1.11 ) $ (2.18 ) $ (0.66 ) $ (0.78 ) $ (0.59 ) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share amounts may not equal annual basic and diluted per share amounts. (1) Includes stock-based compensation as follows: Three Months Ended October 31, January 31, April 30, July 31, October 31, January 31, April 30, July 31, (unaudited, in thousands) Product cost of sales $ 109 $ 104 $ 98 $ 80 $ 966 $ 848 $ 610 $ 642 Support cost of sales 293 241 230 204 3,350 2,389 2,471 2,201 Sales and marketing 2,118 1,964 2,029 1,895 33,891 15,528 15,726 12,972 Research and development 1,629 1,612 1,519 1,499 34,026 28,759 27,041 19,218 General and administrative 1,237 1,029 1,168 998 18,495 5,083 4,503 2,772 Total $ 5,386 $ 4,950 $ 5,044 $ 4,676 $ 90,728 $ 52,607 $ 50,351 $ 37,805 (2) Includes amortization of intangible assets as follows: Three Months Ended October 31, January 31, April 30, July 31, October 31, January 31, April 30, July 31, (unaudited, in thousands) Product cost of sales $ — $ — $ — $ — $ 238 $ 360 $ 358 $ 358 Sales and marketing — — — 167 248 250 250 Total $ — $ — $ — $ — $ 405 $ 608 $ 608 $ 608 |
BUSINESS OVERVIEW (Details)
BUSINESS OVERVIEW (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2016USD ($)$ / sharesshares | Sep. 30, 2016classshares | Oct. 31, 2016business$ / shares | Jul. 31, 2017USD ($)voteshares | 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 IPO, net of issuance costs | $ | $ 254,500 | $ 249,170 | |||
Underwriting discounts and commissions | $ | $ (19,200) | ||||
Offering costs incurred | $ | $ 5,300 | ||||
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 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock upon initial public offering (in shares) | 17,100,500 | ||||
Issuance of class A common stock upon IPO, net of issuance costs | $ | $ 1 | ||||
Conversion of convertible preferred stock to common stock upon initial public (in shares) | 76,319,511 | ||||
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 A | |||||
Class of Stock [Line Items] | |||||
Common stock number of votes per share | vote | 1 | 1 | |||
Common Class B | |||||
Class of Stock [Line Items] | |||||
Common stock number of votes per share | vote | 10 | 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 |
BASIS OF PRESENTATION AND SUM41
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risk (Details) - Partner Concentration Risk | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Revenue | Partner A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | 15.00% | 23.00% |
Revenue | Partner B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 22.00% | 20.00% | 15.00% |
Revenue | Partner C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 14.00% | |
Revenue | Partner E | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | ||
Revenue | Partner F | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.00% | 15.00% | |
Accounts Receivable | Partner B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | 17.00% | |
Accounts Receivable | Partner C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | 12.00% | |
Accounts Receivable | Partner D | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 20.00% | 23.00% | |
Accounts Receivable | Partner E | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | ||
Accounts Receivable | Partner F | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% |
BASIS OF PRESENTATION AND SUM42
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for accounts receivable, beginning balance | $ 132 | $ 410 | $ 400 |
Charged to provision for doubtful accounts (credit) | 0 | (85) | 119 |
Write-offs | 0 | (193) | (109) |
Allowance for doubtful accounts—ending balance | $ 132 | $ 132 | $ 410 |
BASIS OF PRESENTATION AND SUM43
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Foreign currency transaction gain (loss), before tax | $ (2,600) | $ (1,500) | |||||||||
Advertising expense | 13,000 | 6,500 | $ 3,500 | ||||||||
Deferred offering costs | $ 4,500 | 4,500 | |||||||||
Offering costs incurred | 5,300 | ||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-09 | 114 | 114 | |||||||||
Total revenue | $ 226,102 | $ 191,763 | $ 182,195 | $ 166,809 | 139,785 | $ 114,690 | $ 102,697 | $ 87,756 | 766,869 | 444,928 | 241,432 |
Gross Profit | 128,585 | 108,557 | 105,349 | 97,047 | 85,406 | 71,297 | 64,761 | 52,677 | 439,538 | 274,141 | 140,473 |
Operating Expenses | 217,198 | 218,224 | 197,639 | 233,428 | 133,335 | 116,000 | 99,992 | 89,831 | 866,489 | 439,158 | 259,238 |
Operating Income (Loss) | (88,613) | $ (109,667) | $ (92,290) | (136,381) | (47,929) | $ (44,703) | $ (35,231) | $ (37,154) | (426,951) | (165,017) | $ (118,765) |
Accounting Standards Update 2014-09 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | 845,903 | 503,410 | |||||||||
Gross Profit | 518,572 | 332,623 | |||||||||
Operating Expenses | 866,981 | 437,249 | |||||||||
Operating Income (Loss) | (348,409) | (104,626) | |||||||||
Deferred Revenue | 369,056 | 218,481 | 369,056 | 218,481 | |||||||
Deferred Sales Commission | 73,527 | 49,522 | 73,527 | 49,522 | |||||||
Accounting Standards Update 2014-09 | Restatement Adjustment | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenue | 79,034 | 58,482 | |||||||||
Gross Profit | 79,034 | 58,482 | |||||||||
Operating Expenses | 492 | (1,909) | |||||||||
Operating Income (Loss) | 78,542 | 60,391 | |||||||||
Deferred Revenue | (157,015) | (77,984) | (157,015) | (77,984) | |||||||
Deferred Sales Commission | $ 12,139 | 12,629 | $ 12,139 | 12,629 | |||||||
Retained Earnings | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-09 | $ 114 | $ 114 | |||||||||
Retained Earnings | Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cumulative-effect adjustment from adoption of ASU 2016-09 | $ 100 | ||||||||||
Hardware | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Warranty duration, hardware (in years) | 1 year | ||||||||||
Product warranty replacement period (in years) | 3 years | ||||||||||
Software | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Warranty duration, hardware (in years) | 90 days | ||||||||||
Minimum | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Contractual agreement term (in years) | 1 year | ||||||||||
Maximum | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Contractual agreement term (in years) | 5 years |
BASIS OF PRESENTATION AND SUM44
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expected Impacts to Reported Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Product revenue | $ 171,704 | $ 143,142 | $ 138,508 | $ 129,657 | $ 109,216 | $ 89,957 | $ 81,229 | $ 70,396 | $ 583,011 | $ 350,798 | $ 200,833 | |
Support and other services | 54,398 | 48,621 | 43,687 | 37,152 | 30,569 | 24,733 | 21,468 | 17,360 | 183,858 | 94,130 | 40,599 | |
Total revenue | 226,102 | 191,763 | 182,195 | 166,809 | 139,785 | 114,690 | 102,697 | 87,756 | 766,869 | 444,928 | 241,432 | |
Gross profit | 128,585 | 108,557 | 105,349 | 97,047 | 85,406 | 71,297 | 64,761 | 52,677 | 439,538 | 274,141 | 140,473 | |
Total operating expenses | 217,198 | 218,224 | 197,639 | 233,428 | 133,335 | 116,000 | 99,992 | 89,831 | 866,489 | 439,158 | 259,238 | |
Loss from operations | (88,613) | (109,667) | (92,290) | (136,381) | (47,929) | (44,703) | (35,231) | (37,154) | (426,951) | (165,017) | (118,765) | |
Net loss | $ (90,653) | $ (111,977) | $ (93,212) | $ (162,169) | $ (49,929) | $ (46,820) | $ (33,205) | $ (38,545) | $ (458,011) | $ (168,499) | $ (126,127) | |
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share) | $ (0.59) | $ (0.78) | $ (0.66) | $ (2.18) | $ (1.11) | $ (1.05) | $ (0.76) | $ (0.90) | $ (3.57) | $ (3.83) | $ (3.11) | |
Deferred commissions—current | $ 27,679 | $ 17,864 | $ 27,679 | $ 17,864 | ||||||||
Deferred commissions—non-current | 33,709 | 19,029 | 33,709 | 19,029 | ||||||||
Deferred revenue—current | 233,498 | 130,569 | 233,498 | 130,569 | ||||||||
Deferred revenue—non-current | 292,573 | 165,896 | 292,573 | 165,896 | ||||||||
Accrued expenses and other current liabilities | 9,414 | 5,537 | 9,414 | 5,537 | ||||||||
Stockholders' equity | 48,202 | (376,315) | 48,202 | (376,315) | $ (234,734) | $ (130,775) | ||||||
Accounting Standards Update 2014-09 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Product revenue | 673,297 | 413,910 | ||||||||||
Support and other services | 172,606 | 89,500 | ||||||||||
Total revenue | 845,903 | 503,410 | ||||||||||
Gross profit | 518,572 | 332,623 | ||||||||||
Total operating expenses | 866,981 | 437,249 | ||||||||||
Loss from operations | (348,409) | (104,626) | ||||||||||
Net loss | $ (379,638) | $ (108,233) | ||||||||||
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share) | $ (2.96) | $ (2.46) | ||||||||||
Deferred commissions—current | 23,843 | 14,216 | $ 23,843 | $ 14,216 | ||||||||
Deferred commissions—non-current | 49,684 | 35,306 | 49,684 | 35,306 | ||||||||
Total deferred commissions | 73,527 | 49,522 | 73,527 | 49,522 | ||||||||
Deferred revenue—current | 170,123 | 101,607 | 170,123 | 101,607 | ||||||||
Deferred revenue—non-current | 198,933 | 116,874 | 198,933 | 116,874 | ||||||||
Total deferred revenue | 369,056 | 218,481 | 369,056 | 218,481 | ||||||||
Accrued expenses and other current liabilities | 9,707 | 5,662 | 9,707 | 5,662 | ||||||||
Stockholders' equity | 217,063 | (285,827) | 217,063 | (285,827) | ||||||||
Accounting Standards Update 2014-09 | Scenario, Previously Reported | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Product revenue | 583,011 | 350,798 | ||||||||||
Support and other services | 183,858 | 94,130 | ||||||||||
Total revenue | 766,869 | 444,928 | ||||||||||
Gross profit | 439,538 | 274,141 | ||||||||||
Total operating expenses | 866,489 | 439,158 | ||||||||||
Loss from operations | (426,951) | (165,017) | ||||||||||
Net loss | $ (458,011) | $ (168,499) | ||||||||||
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share) | $ (3.57) | $ (3.83) | ||||||||||
Deferred commissions—current | 27,679 | 17,864 | $ 27,679 | $ 17,864 | ||||||||
Deferred commissions—non-current | 33,709 | 19,029 | 33,709 | 19,029 | ||||||||
Total deferred commissions | 61,388 | 36,893 | 61,388 | 36,893 | ||||||||
Deferred revenue—current | 233,498 | 130,569 | 233,498 | 130,569 | ||||||||
Deferred revenue—non-current | 292,573 | 165,896 | 292,573 | 165,896 | ||||||||
Total deferred revenue | 526,071 | 296,465 | 526,071 | 296,465 | ||||||||
Accrued expenses and other current liabilities | 9,414 | 5,537 | 9,414 | 5,537 | ||||||||
Stockholders' equity | 48,202 | (376,315) | 48,202 | (376,315) | ||||||||
Accounting Standards Update 2014-09 | Restatement Adjustment | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Product revenue | 90,286 | 63,112 | ||||||||||
Support and other services | (11,252) | (4,630) | ||||||||||
Total revenue | 79,034 | 58,482 | ||||||||||
Gross profit | 79,034 | 58,482 | ||||||||||
Total operating expenses | 492 | (1,909) | ||||||||||
Loss from operations | 78,542 | 60,391 | ||||||||||
Net loss | $ 78,373 | $ 60,266 | ||||||||||
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share) | $ 0.61 | $ 1.37 | ||||||||||
Deferred commissions—current | (3,836) | (3,648) | $ (3,836) | $ (3,648) | ||||||||
Deferred commissions—non-current | 15,975 | 16,277 | 15,975 | 16,277 | ||||||||
Total deferred commissions | 12,139 | 12,629 | 12,139 | 12,629 | ||||||||
Deferred revenue—current | (63,375) | (28,962) | (63,375) | (28,962) | ||||||||
Deferred revenue—non-current | (93,640) | (49,022) | (93,640) | (49,022) | ||||||||
Total deferred revenue | (157,015) | (77,984) | (157,015) | (77,984) | ||||||||
Accrued expenses and other current liabilities | 293 | 125 | 293 | 125 | ||||||||
Stockholders' equity | $ 168,861 | $ 90,488 | $ 168,861 | $ 90,488 |
BUSINESS COMBINATIONS - Calm Ac
BUSINESS COMBINATIONS - Calm Acquisition (Details) - USD ($) $ in Thousands | Aug. 22, 2016 | Jul. 31, 2017 | Jul. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 16,672 | $ 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 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 |
Business Acquisition [Line Items] | ||||
Contingent liability adjustment | $ (1,924) | $ 0 | $ 0 | |
Purchase Price Allocation: | ||||
Goodwill | 16,672 | $ 0 | ||
PernixData Acquisition | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 23,007 | |||
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 | 11,853 | |||
Finite-lived intangible assets, gross | $ 24,270 | |||
Other assets | 761 | |||
Deferred revenue | (6,007) | |||
Debt | (7,124) | |||
Other liabilities | (2,515) | |||
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 - Perni47
BUSINESS COMBINATIONS - PernixData Acquisition, Acquired Intangible Assets (Details) - PernixData Acquisition - USD ($) $ in Thousands | Sep. 06, 2016 | Jul. 31, 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 Life (in years) | 5 years | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 4,600 | |
Estimated Life (in years) | 6 years |
BUSINESS COMBINATIONS - Pro For
BUSINESS COMBINATIONS - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Revenue | $ 767,681 | $ 454,665 |
Net loss | $ (459,454) | $ (199,351) |
Basic net loss per share (in dollars per share) | $ (3.53) | $ (4.36) |
Diluted net loss per share (in dollars per share) | $ (3.53) | $ (4.36) |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Nov. 01, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Financial Assets: | |||||
Short-term investments: | $ 210,694 | $ 85,991 | |||
Financial Liabilities: | |||||
Convertible preferred stock warrant liability | 0 | $ 30,812 | 9,679 | ||
Warrant | |||||
Financial Liabilities: | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 0 | 9,679 | $ 11,683 | $ 5,507 | |
Recurring | |||||
Financial Assets: | |||||
Total measured at fair value | 268,519 | 138,295 | |||
Cash | 80,534 | 46,905 | |||
Total cash, cash equivalents and short-term investments | 349,053 | 185,200 | |||
Recurring | Warrant | |||||
Financial Liabilities: | |||||
Convertible preferred stock warrant liability | 4,295 | 9,679 | |||
Recurring | Corporate bonds | |||||
Financial Assets: | |||||
Short-term investments: | 160,634 | 64,360 | |||
Recurring | Commercial paper | |||||
Financial Assets: | |||||
Short-term investments: | 36,084 | 21,631 | |||
Recurring | US Government Debt Securities | |||||
Financial Assets: | |||||
Short-term investments: | 13,976 | ||||
Recurring | Money market funds | |||||
Financial Assets: | |||||
Cash equivalents: | 34,784 | 47,305 | |||
Recurring | Commercial paper | |||||
Financial Assets: | |||||
Cash equivalents: | 23,041 | 4,999 | |||
Recurring | Level I | |||||
Financial Assets: | |||||
Total measured at fair value | 34,784 | 47,305 | |||
Recurring | Level I | Warrant | |||||
Financial Liabilities: | |||||
Convertible preferred stock warrant liability | 0 | 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 | US Government Debt Securities | |||||
Financial Assets: | |||||
Short-term investments: | 0 | ||||
Recurring | Level I | Money market funds | |||||
Financial Assets: | |||||
Cash equivalents: | 34,784 | 47,305 | |||
Recurring | Level I | Commercial paper | |||||
Financial Assets: | |||||
Cash equivalents: | 0 | 0 | |||
Recurring | Level II | |||||
Financial Assets: | |||||
Total measured at fair value | 233,735 | 90,990 | |||
Recurring | Level II | Warrant | |||||
Financial Liabilities: | |||||
Convertible preferred stock warrant liability | 0 | 0 | |||
Recurring | Level II | Corporate bonds | |||||
Financial Assets: | |||||
Short-term investments: | 160,634 | 64,360 | |||
Recurring | Level II | Commercial paper | |||||
Financial Assets: | |||||
Short-term investments: | 36,084 | 21,631 | |||
Recurring | Level II | US Government Debt Securities | |||||
Financial Assets: | |||||
Short-term investments: | 13,976 | ||||
Recurring | Level II | Money market funds | |||||
Financial Assets: | |||||
Cash equivalents: | 0 | 0 | |||
Recurring | Level II | Commercial paper | |||||
Financial Assets: | |||||
Cash equivalents: | 23,041 | 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 | Corporate bonds | |||||
Financial Assets: | |||||
Short-term investments: | 0 | 0 | |||
Recurring | Level III | Commercial paper | |||||
Financial Assets: | |||||
Short-term investments: | 0 | 0 | |||
Recurring | Level III | US Government Debt 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 | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Warrant | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Contingent consideration—beginning balance | $ 9,679 | $ 11,683 | $ 5,507 |
Change in fair value | 21,133 | (2,004) | 6,176 |
Reclassification of unexercised warrants to APIC upon the IPO | 30,812 | 0 | 0 |
Convertible preferred stock warrant liability—beginning balance | 0 | 9,679 | $ 11,683 |
Commitments | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Contingent consideration—beginning balance | 0 | ||
Change in fair value | 1,924 | ||
Assumed in the PernixData acquisition | 2,371 | ||
Convertible preferred stock warrant liability—beginning balance | $ 4,295 | $ 0 |
BALANCE SHEET COMPONENTS - Shor
BALANCE SHEET COMPONENTS - Short-Term Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Due within 1 year | $ 151,014 | |
Due after 1 year through 3 years | 59,680 | |
Total | $ 210,694 | $ 85,991 |
BALANCE SHEET COMPONENTS - Prop
BALANCE SHEET COMPONENTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment—gross | $ 146,973 | $ 97,605 | |
Less accumulated depreciation and amortization | (88,901) | (55,387) | |
Total property and equipment—net | 58,072 | 42,218 | |
Depreciation and amortization | $ 38,399 | 26,408 | $ 16,567 |
Computer, production, engineering and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (In months) | 36 months | ||
Total property and equipment—gross | $ 85,280 | 54,161 | |
Demonstration units | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (In months) | 12 months | ||
Total property and equipment—gross | $ 46,387 | 33,184 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment—gross | $ 10,562 | 6,619 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (In months) | 60 months | ||
Total property and equipment—gross | $ 4,744 | $ 3,641 |
BALANCE SHEET COMPONENTS - Inta
BALANCE SHEET COMPONENTS - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 06, 2016 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2017 |
Finite-lived intangible assets: | |||||||||||
Finite-lived intangible assets, gross | $ 12,130 | ||||||||||
Total intangible assets, gross | 28,230 | ||||||||||
Less: | |||||||||||
Accumulated amortization | (2,229) | ||||||||||
Intangible assets, net | $ 26,001 | $ 0 | $ 0 | $ 0 | 26,001 | ||||||
Finite-lived Intangible Assets [Roll Forward] | |||||||||||
Intangible assets, net—beginning balance | 0 | 0 | |||||||||
Amortization of intangible assets | (608) | $ (608) | $ (608) | $ (405) | 0 | $ 0 | $ 0 | $ 0 | (2,229) | ||
Intangible assets, net—ending balance | $ 26,001 | $ 0 | 26,001 | ||||||||
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 | (1,314) | ||||||||||
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 | $ (915) | ||||||||||
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 | Jul. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 2,220 |
2,019 | 2,201 |
2,020 | 2,201 |
2,021 | 2,201 |
Thereafter | 1,078 |
Total | $ 9,901 |
BALANCE SHEET COMPONENTS BALANC
BALANCE SHEET COMPONENTS BALANCE SHEET COMPONENTS - Goodwill (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill—beginning balance | $ 0 |
Goodwill—ending balance | 16,672 |
Calm Acquisition | |
Goodwill [Roll Forward] | |
Goodwill acquired | 4,819 |
PernixData Acquisition | |
Goodwill [Roll Forward] | |
Goodwill acquired | $ 11,853 |
BALANCE SHEET COMPONENTS - Accr
BALANCE SHEET COMPONENTS - Accrued Compensation Benefits (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Employee-related Liabilities, Current [Abstract] | ||
Accrued commissions | $ 20,388 | $ 14,203 |
Contributions to ESPP withheld | 14,371 | 0 |
Accrued bonus | 7,342 | 3,592 |
Accrued vacation | 6,286 | 3,490 |
Payroll taxes payable | 3,434 | 1,234 |
Other | 5,700 | 2,028 |
Total accrued compensation and benefits | $ 57,521 | $ 24,547 |
BALANCE SHEET COMPONENTS - Ac57
BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued professional services | $ 4,167 | $ 3,585 |
Income taxes payable | 3,580 | 1,417 |
Other | 1,667 | 535 |
Total accrued expenses and other current liabilities | $ 9,414 | $ 5,537 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Apr. 30, 2016 | |
Debt Instrument [Line Items] | |||||
Loss related to guaranteed minimum return | $ 1,600 | ||||
Gain (loss) on extinguishment of debt | (3,300) | $ (3,320) | $ 0 | $ 0 | |
Write off of unamortized debt issuance costs | $ 1,700 | ||||
Senior Notes | Senior Notes Due April 15, 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 75,000 |
COMMITMENTS AND CONTINGENCIES59
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | $ 16,304 | ||
2,019 | 14,891 | ||
2,020 | 12,758 | ||
2,021 | 9,197 | ||
2,022 | 3,535 | ||
Thereafter | 1,692 | ||
Total | 58,377 | ||
Operating leases, rent expense | 12,700 | $ 7,600 | $ 4,000 |
Contract Manufacturer | |||
Loss Contingencies [Line Items] | |||
Purchase obligation | 72,600 | ||
Non-contract Vendors [Member] | |||
Loss Contingencies [Line Items] | |||
Purchase obligation | $ 26,600 |
CONVERTIBLE PREFERRED STOCK W60
CONVERTIBLE PREFERRED STOCK WARRANTS - Warrants Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Nov. 01, 2016 | |
Class of Warrant or Right [Line Items] | ||||
Warrants or issued (in shares) | 824,094 | |||
Fair value | $ 0 | $ 9,679 | $ 30,812 | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 39,435,334 | 116,530,157 | 112,732,517 | |
Common stock warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 34,180 | |||
Series A Warrants, Issued December 2009 | ||||
Class of Warrant or Right [Line Items] | ||||
Contractual Term (in years) | 10 years | |||
Warrants or issued (in shares) | 683,644 | |||
Exercise Price per Share (in dollars per share) | $ 0.234 | |||
Fair value | $ 8,259 | 25,883 | ||
Series A Warrants, Issued May 2010 | ||||
Class of Warrant or Right [Line Items] | ||||
Contractual Term (in years) | 10 years | |||
Warrants or issued (in shares) | 85,450 | |||
Exercise Price per Share (in dollars per share) | $ 0.234 | |||
Fair value | 1,032 | 3,235 | ||
Series D Warrants, Issued November 2013 | ||||
Class of Warrant or Right [Line Items] | ||||
Contractual Term (in years) | 10 years | |||
Warrants or issued (in shares) | 10,000 | |||
Exercise Price per Share (in dollars per share) | $ 7.289 | |||
Fair value | 77 | 308 | ||
Series D Warrants, Issued December 2013 | ||||
Class of Warrant or Right [Line Items] | ||||
Contractual Term (in years) | 7 years | |||
Warrants or issued (in shares) | 45,000 | |||
Exercise Price per Share (in dollars per share) | $ 7.289 | |||
Fair value | $ 311 | $ 1,386 | ||
Common Class B Warrant | ||||
Class of Warrant or Right [Line Items] | ||||
Number of warrants exercised (in shares) | 789,914 | |||
Exercise of warrants (in shares) | 775,554 |
CONVERTIBLE PREFERRED STOCK W61
CONVERTIBLE PREFERRED STOCK WARRANTS - Schedule of Assumptions Used (Details) - Warrant | 12 Months Ended |
Jul. 31, 2016$ / shares | |
Series A Warrant | |
Class of Warrant or Right [Line Items] | |
Fair value of convertible preferred stock (in dollars per share) | $ 12.31 |
Risk-free interest rate | 0.90% |
Contractual term (in years) | 3 years 4 months 24 days |
Volatility | 54.00% |
Dividend yield | 0.00% |
Series D Warrant | |
Class of Warrant or Right [Line Items] | |
Fair value of convertible preferred stock (in dollars per share) | $ 13.16 |
Risk-free interest rate | 1.00% |
Contractual term (in years) | 4 years 10 months 24 days |
Volatility | 35.00% |
Dividend yield | 0.00% |
CONVERTIBLE PREFERRED STOCK (De
CONVERTIBLE PREFERRED STOCK (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2016 | Sep. 30, 2016shares | Jul. 31, 2017shares | Jul. 31, 2016USD ($)shares | Jul. 31, 2015shares | Jul. 31, 2014shares | |
Temporary Equity [Line Items] | ||||||
Shares Authorized (in shares) | 0 | 78,263,309 | ||||
Shares Issued (in shares) | 0 | 76,319,511 | ||||
Shares Outstanding (in shares) | 0 | 76,319,511 | 76,319,511 | 65,495,787 | ||
Preferred stock, liquidation preference, value | $ | $ 370,244 | |||||
Common Stock | ||||||
Temporary Equity [Line Items] | ||||||
Conversion of convertible preferred stock to common stock upon initial public (in shares) | 76,319,511 | |||||
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 | |||||
Preferred stock, liquidation preference, value | $ | $ 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 | |||||
Preferred stock, liquidation preference, value | $ | $ 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 | |||||
Preferred stock, liquidation preference, value | $ | $ 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 | |||||
Preferred stock, liquidation preference, value | $ | $ 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 | |||||
Preferred stock, liquidation preference, value | $ | $ 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 |
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, 2016USD ($)$ / sharesshares | Jul. 31, 2017USD ($)$ / sharesshares | Jul. 31, 2016USD ($)$ / sharesshares | Jul. 31, 2015USD ($)$ / sharesshares | Oct. 31, 2016$ / shares | Dec. 31, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares reserved for future issuance (in shares) | 55,448,336 | ||||||||
Shares issued price per share (in dollars per share) | $ / shares | $ 16 | ||||||||
Period for recognition (in years) | 2 years 2 months 12 days | ||||||||
Vested (in shares) | 15,241,715 | ||||||||
Nonvested shares (in shares) | 4,403,961 | ||||||||
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 6.41 | $ 6.36 | $ 4.86 | ||||||
Exercises in period, intrinsic value | $ | $ 73,900,000 | $ 18,300,000 | $ 16,200,000 | ||||||
Options vested in period, fair value | $ | $ 16,100,000 | 23,900,000 | 10,800,000 | ||||||
Early exercised options (in shares) | 20,334,531 | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | 4,786,381 | ||||||||
Issuance of common stock upon exercise of stock options | $ | 2,675,000 | 1,584,000 | |||||||
Dividend yield | $ | $ 0 | ||||||||
Tender Offer | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise price be considered for conversion (in dollars per share) | $ / shares | $ 8.41 | ||||||||
Options, cancelled in period (in shares) | 1,361,317 | ||||||||
Incremental stock-based compensation expense | $ | $ 3,400,000 | ||||||||
2016 Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares reserved for future issuance (in shares) | 52,860,210 | ||||||||
Employee Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period (in years) | 4 years | ||||||||
Expiration period (in years) | 10 years | ||||||||
Dividend yield | $ | $ 0 | $ 0 | $ 0 | ||||||
Incentive Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise price, percent of estimated fair value | 100.00% | ||||||||
Non-qualified Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise price, percent of estimated fair value | 100.00% | ||||||||
Early Exercised Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Early exercised options (in shares) | 243,148 | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | 67,360 | 269,737 | 1,019,223 | ||||||
Issuance of common stock upon exercise of stock options | $ | $ 200,000 | $ 800,000 | $ 3,300,000 | ||||||
Number of shares authorized to be repurchased (in shares) | 954,215 | 243,148 | 954,215 | ||||||
Authorized repurchase amount | $ | $ 2,300,000 | $ 900,000 | $ 2,300,000 | ||||||
RSUs | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | 12,986,597 | ||||||||
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% | ||||||||
Stock Issued During Period, Shares, Employee Benefit Plan | 1,246,054 | ||||||||
Proceeds from Stock Plans | $ | $ 16,900,000 | ||||||||
Employee Stock Options Excluding Performance Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation not yet recognized | $ | $ 273,600,000 | ||||||||
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 | ||||||||
Number of shares available for grant (in shares) | 15,149,589 | ||||||||
Annual increase (in shares) | 18,000,000 | ||||||||
Annual increase, percent of outstanding shares | 5.00% | ||||||||
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 | ||||||||
Principal Owner | Incentive Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period (in years) | 5 years | ||||||||
Exercise price, percent of estimated fair value | 110.00% |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) | 12 Months Ended | |||||
Jul. 31, 2017vote$ / sharesshares | Jul. 31, 2016$ / sharesshares | Jul. 31, 2015shares | Apr. 30, 2017voteclass | Sep. 30, 2016class | Dec. 31, 2015shares | |
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 200,000,000 | 0 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.000025 | $ 0.000025 | ||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Common stock, number of classes of stock | class | 2 | 2 | ||||
Common stock, shares authorized (in shares) | 1,200,000,000 | 165,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000025 | $ 0.000025 | ||||
Common stock, shares issued (in shares) | 154,636,520 | 46,083,651 | ||||
Common stock, shares outstanding (in shares) | 154,636,520 | 46,083,651 | ||||
Options outstanding (in shares) | 20,334,531 | 26,166,968 | ||||
Shares reserved for future issuance (in shares) | 55,448,336 | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 39,435,334 | 116,530,157 | 112,732,517 | |||
2016 Plan | ||||||
Class of Stock [Line Items] | ||||||
Shares reserved for future issuance (in shares) | 52,860,210 | |||||
RSUs | ||||||
Class of Stock [Line Items] | ||||||
RSUs outstanding (in shares) | 17,376,090 | 12,265,369 | ||||
Convertible preferred stock warrants | ||||||
Class of Stock [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 34,180 | |||||
Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 0 | ||||
Common stock, shares issued (in shares) | 93,570,171 | 0 | ||||
Common stock, shares outstanding (in shares) | 93,570,171 | 0 | ||||
Common stock number of votes per share | vote | 1 | 1 | ||||
Common Class A | 2016 Plan | ||||||
Class of Stock [Line Items] | ||||||
Number of shares available for grant (in shares) | 15,149,589 | |||||
Shares reserved for future issuance (in shares) | 22,400,000 | |||||
Common Class B | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 200,000,000 | 0 | ||||
Common stock, shares issued (in shares) | 61,066,349 | 0 | ||||
Common stock, shares outstanding (in shares) | 61,066,349 | 0 | ||||
Common stock number of votes per share | vote | 10 | 10 | ||||
Common Class B | 2016 Plan | ||||||
Class of Stock [Line Items] | ||||||
Shares reserved for future issuance (in shares) | 38,667,284 | |||||
Employee Stock Purchase Plan | ||||||
Class of Stock [Line Items] | ||||||
Shares reserved for future issuance (in shares) | 2,553,946 |
EQUITY AWARD PLANS - RSU (Detai
EQUITY AWARD PLANS - RSU (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 16, 2016 | Jul. 31, 2016 | Jul. 31, 2017 |
Tender Offer | |||
Grant Date Fair Value per Share | |||
Exercise price be considered for conversion (in dollars per share) | $ 8.41 | ||
Options, cancelled in period (in shares) | 1,361,317 | ||
Incremental stock-based compensation expense | $ 3.4 | ||
RSUs | |||
Number of Shares | |||
Outstanding, beginning balance (in shares) | 12,265,369 | ||
Granted (in shares) | 12,986,597 | ||
Released (in shares) | 6,146,169 | ||
Canceled/forfeited (in shares) | (1,729,707) | ||
Outstanding, ending balance (in shares) | 12,265,369 | 17,376,090 | |
Grant Date Fair Value per Share | |||
Outstanding (in dollars per share) | $ 13.23 | $ 18.85 | |
Granted (in dollars per share) | 21.84 | ||
Released (in dollars per share) | 15.63 | ||
Canceled/forfeited (in dollars per share) | $ 13.57 | ||
RSUs | Tender Offer | |||
Number of Shares | |||
Granted (in shares) | 911,489 |
EQUITY AWARD PLANS - ESPP (Deta
EQUITY AWARD PLANS - ESPP (Details) - Employee Stock Purchase Plan | 12 Months Ended |
Jul. 31, 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 Opti
EQUITY AWARD PLANS - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Number of Shares | ||
Beginning balance (in shares) | 26,166,968 | |
Options granted (in shares) | 1,047,950 | |
Options exercised (in shares) | (4,786,381) | |
Options canceled/forfeited (in shares) | (2,094,006) | |
Ending balance (in shares) | 20,334,531 | 26,166,968 |
Exercisable (in shares) | 19,645,676 | |
Vested and expected to vest (in shares) | 20,334,531 | |
Weighted- Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 4.39 | |
Options granted (in dollars per share) | 12.14 | |
Options exercised (in dollars per share) | 3.27 | |
Options canceled/forfeited (in dollars per share) | 8.89 | |
Ending balance (in dollars per share) | 4.59 | $ 4.39 |
Exercisable (in dollars per share) | 4.43 | |
Vested and expected to vest (in dollars per share) | $ 4.59 | |
Additional Disclosures | ||
Outstanding (in years) | 6 years 4 months 24 days | 7 years 6 months |
Exercisable (in years) | 6 years 4 months 2 days | |
Vested and expected to vest (in years) | 6 years 4 months 24 days | |
Outstanding, intrinsic value | $ 338,787 | $ 208,101 |
Exercisable, intrinsic value | 330,486 | |
Vested and expected to vest, intrinsic value | $ 338,787 | |
Performance Stock Options | ||
Number of Shares | ||
Beginning balance (in shares) | 455,000 | |
Ending balance (in shares) | 455,000 | |
Additional Disclosures | ||
Weighted average fair value (in dollars per share) | $ 3.78 |
EQUITY AWARD PLANS - Stock Base
EQUITY AWARD PLANS - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Total stock-based compensation expense | $ 37,805 | $ 50,351 | $ 52,607 | $ 90,728 | $ 4,676 | $ 5,044 | $ 4,950 | $ 5,386 | $ 231,491 | $ 20,056 | $ 17,140 |
Period for recognition (in years) | 2 years 2 months 12 days | ||||||||||
Cost of product revenue [Domain] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Total stock-based compensation expense | $ 3,066 | 391 | 363 | ||||||||
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 | 2,201 | 2,471 | 2,389 | 3,350 | 204 | 230 | 241 | 293 | 10,411 | 968 | 718 |
Sales and marketing | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Total stock-based compensation expense | 12,972 | 15,726 | 15,528 | 33,891 | 1,895 | 2,029 | 1,964 | 2,118 | 78,117 | 8,006 | 6,474 |
Research and development | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Total stock-based compensation expense | 19,218 | 27,041 | 28,759 | 34,026 | 1,499 | 1,519 | 1,612 | 1,629 | 109,044 | 6,259 | 5,411 |
General and administrative | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||||||
Total stock-based compensation expense | $ 2,772 | $ 4,503 | $ 5,083 | $ 18,495 | $ 998 | $ 1,168 | $ 1,029 | $ 1,237 | $ 30,853 | $ 4,432 | $ 4,174 |
EQUITY AWARD PLANS - Determinat
EQUITY AWARD PLANS - Determination of Fair Value (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | $ 0 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of common stock (in dollars per share) | $ 12.14 | $ 14.81 | $ 10.29 |
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Risk-free interest rate | 1.30% | 1.60% | 1.70% |
Volatility | 52.00% | 42.00% | 46.00% |
Dividend yield | $ 0 | $ 0 | $ 0 |
NET LOSS AND UNAUDITED NET LO70
NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (90,653) | $ (111,977) | $ (93,212) | $ (162,169) | $ (49,929) | $ (46,820) | $ (33,205) | $ (38,545) | $ (458,011) | $ (168,499) | $ (126,127) |
Weighted-average shares—basic and diluted (in shares) | 128,295,563 | 43,970,381 | 40,509,481 | ||||||||
Net loss per share attributable to common stockholders—basic and diluted (in dollars per share) | $ (0.59) | $ (0.78) | $ (0.66) | $ (2.18) | $ (1.11) | $ (1.05) | $ (0.76) | $ (0.90) | $ (3.57) | $ (3.83) | $ (3.11) |
NET LOSS AND UNAUDITED NET LO71
NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 39,435,334 | 116,530,157 | 112,732,517 |
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 | 76,319,511 |
Stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 37,710,621 | 38,432,337 | 33,039,810 |
Employee Stock Purchase Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,447,385 | 0 | 0 |
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) | 243,148 | 954,215 | 2,549,102 |
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) | 824,094 | 824,094 |
NET LOSS AND UNAUDITED NET LO72
NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO CLASS A AND CLASS B COMMON STOCKHOLDERS NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS - Pro Forma Antidilutive Securities (Details) (Details) - shares | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 39,435,334 | 116,530,157 | 112,732,517 |
Stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 37,710,621 | 38,432,337 | 33,039,810 |
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 | 76,319,511 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Federal statutory income tax rate | 34.00% | |||||||||||
Deferred tax assets, net, noncurrent | $ 3,176 | $ 1,250 | $ 3,176 | $ 1,250 | ||||||||
Valuation allowance for deferred tax assets | 196,091 | 91,346 | 196,091 | 91,346 | ||||||||
Valuation allowance increase | (104,700) | 36,700 | ||||||||||
Cash and cash equivalents | 138,359 | 99,209 | 138,359 | 99,209 | $ 67,879 | $ 57,485 | ||||||
Decreases related to prior year tax positions | 0 | 3,942 | ||||||||||
Settlements with tax authorities | 0 | 7,284 | ||||||||||
Increases related to current year tax positions | 22,571 | 1,654 | ||||||||||
Unrecognized tax benefits that would impact effective tax rate | 1,600 | 1,600 | ||||||||||
Provision for income taxes | 1,493 | $ 2,613 | $ 501 | $ 76 | 1,041 | $ 11 | $ 620 | $ 520 | 4,683 | 2,192 | 1,544 | |
Valuation allowance release | (102,549) | (31,700) | $ (24,030) | |||||||||
Non-US | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Cash and cash equivalents | 58,900 | 58,900 | ||||||||||
United States of America, Dollars | Non-US | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Cash and cash equivalents | 49,500 | 49,500 | ||||||||||
Federal | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Net operating loss carryforwards | 453,500 | 453,500 | ||||||||||
Federal | Research Credit Carryforwards | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Research credit carryforwards | 11,600 | 11,600 | ||||||||||
State | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Net operating loss carryforwards | 282,400 | 282,400 | ||||||||||
Decreases related to prior year tax positions | 3,900 | |||||||||||
State | Research Credit Carryforwards | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Research credit carryforwards | $ 11,600 | $ 11,600 | ||||||||||
Foreign Tax Authority | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Settlements with tax authorities | 7,300 | |||||||||||
Settlements with tax authorities, amount impacting effective tax rate | 400 | |||||||||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2015-07 | ||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||||
Deferred tax assets, net, noncurrent | (3,300) | (3,300) | ||||||||||
Deferred tax liabilities, net, current | $ (3,300) | $ (3,300) |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Before Provision for Income Taxes, Domestic and Foreign (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ (350,759) | $ (104,339) | $ (84,327) | ||||||||
Foreign | (102,569) | (61,968) | (40,256) | ||||||||
Loss before provision for income taxes | $ (89,160) | $ (109,364) | $ (92,711) | $ (162,093) | $ (48,888) | $ (46,809) | $ (32,585) | $ (38,025) | $ (453,328) | $ (166,307) | $ (124,583) |
INCOME TAXES - Schedule of Prov
INCOME TAXES - Schedule of Provision for Income Taxes, Current and Deferred (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Current: | |||||||||||
State and local | $ 193 | $ 140 | $ 56 | ||||||||
Foreign | 8,027 | 3,047 | 1,655 | ||||||||
Total current taxes | 8,220 | 3,187 | 1,711 | ||||||||
Deferred: | |||||||||||
U.S. federal | (1,342) | 0 | 0 | ||||||||
State and local | 13 | 0 | 0 | ||||||||
Foreign | (2,208) | (995) | (167) | ||||||||
Total deferred taxes | (3,537) | (995) | (167) | ||||||||
Total | $ 1,493 | $ 2,613 | $ 501 | $ 76 | $ 1,041 | $ 11 | $ 620 | $ 520 | $ 4,683 | $ 2,192 | $ 1,544 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. federal income tax at statutory rate | $ (153,965) | $ (56,545) | $ (42,351) | ||||||||
Change in valuation allowance | 102,549 | 31,700 | 24,030 | ||||||||
Effect of foreign operations | 27,652 | 23,121 | 15,168 | ||||||||
Stock-based compensation | 6,701 | 3,655 | 2,152 | ||||||||
Warrant revaluation | 7,185 | (681) | 2,100 | ||||||||
Non-deductible expenses | 1,693 | 802 | 389 | ||||||||
State income taxes | 206 | 140 | 56 | ||||||||
Transfer pricing adjustments | 11,822 | 0 | 0 | ||||||||
Other | 840 | 0 | 0 | ||||||||
Total | $ 1,493 | $ 2,613 | $ 501 | $ 76 | $ 1,041 | $ 11 | $ 620 | $ 520 | $ 4,683 | $ 2,192 | $ 1,544 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 135,929 | $ 81,546 |
Deferred revenue | 37,274 | 9,935 |
Tax credit carryforward | 13,100 | 7,304 |
Property and equipment | 1,118 | 0 |
Accruals and reserves | 7,427 | 1,938 |
Stock compensation expense | 27,512 | 5,780 |
Total deferred tax assets | 222,360 | 106,503 |
Deferred tax liabilities: | ||
Deferred commission expense | (22,535) | (13,483) |
Other | (558) | (424) |
Total deferred tax liabilities | (23,093) | (13,907) |
Valuation allowance | (196,091) | (91,346) |
Net deferred tax assets | 3,176 | 1,250 |
Non-current deferred tax assets | 3,176 | 1,250 |
Current deferred tax liabilities | $ 0 | $ 0 |
INCOME TAXES INCOME TAXES - Sch
INCOME TAXES INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning balance | $ 19,711 | $ 28,311 |
Increases related to current year tax positions | 22,571 | 1,654 |
Increases related to prior year tax positions | 373 | 972 |
Decreases related to prior year tax positions | 0 | (3,942) |
Settlements with tax authorities | 0 | (7,284) |
Balance, ending balance | $ 42,655 | $ 19,711 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Jan. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2016USD ($)segment | Jul. 31, 2015USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Number of reportable segments | segment | 1 | ||||||||||
Total revenue | $ 226,102 | $ 191,763 | $ 182,195 | $ 166,809 | $ 139,785 | $ 114,690 | $ 102,697 | $ 87,756 | $ 766,869 | $ 444,928 | $ 241,432 |
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 462,770 | 280,800 | 161,439 | ||||||||
Long-lived assets | $ 63,300 | $ 30,000 | 63,300 | 30,000 | |||||||
Europe, the Middle East and Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 139,170 | 81,320 | 43,526 | ||||||||
Asia-Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 131,921 | 63,610 | 28,386 | ||||||||
Other Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 33,008 | $ 19,198 | $ 8,081 |
401(K) PLAN (Details)
401(K) PLAN (Details) | 12 Months Ended |
Jul. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee contribution, percentage of eligible compensation allowed | 75.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | Sep. 06, 2016USD ($)shares | Jul. 31, 2017USD ($)director | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | Sep. 05, 2016 |
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 900,000 | $ 800,000 | $ 200,000 | ||
Accounts payable, related parties | 0 | 0 | |||
Revenue from related parties | 400,000 | 600,000 | $ 100,000 | ||
Accounts receivable, related parties | $ 0 | $ 0 | |||
PernixData Acquisition | |||||
Related Party Transaction [Line Items] | |||||
Business acquisition equity issued (in shares) | shares | 1,711,019 | ||||
Contingent consideration maximum | $ 19,000,000 | ||||
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 | Nutanix, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 7.50% | ||||
Lightspeed Venture Partners | Lightspeed Venture Partners | Convertible preferred stock | Nutanix, Inc. | |||||
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 | $ 2,700,000 | ||||
PernixData | Lightspeed Venture Partners | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 26.40% |
SELECTED QUARTERLY FINANCIAL 82
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Product | $ 171,704 | $ 143,142 | $ 138,508 | $ 129,657 | $ 109,216 | $ 89,957 | $ 81,229 | $ 70,396 | $ 583,011 | $ 350,798 | $ 200,833 |
Support and other services | 54,398 | 48,621 | 43,687 | 37,152 | 30,569 | 24,733 | 21,468 | 17,360 | 183,858 | 94,130 | 40,599 |
Total revenue | 226,102 | 191,763 | 182,195 | 166,809 | 139,785 | 114,690 | 102,697 | 87,756 | 766,869 | 444,928 | 241,432 |
Product | 76,187 | 62,593 | 58,403 | 52,210 | 42,480 | 33,427 | 29,977 | 27,657 | 249,393 | 133,541 | 80,900 |
Support and other services | 21,330 | 20,613 | 18,443 | 17,552 | 11,899 | 9,966 | 7,959 | 7,422 | 77,938 | 37,246 | 20,059 |
Total cost of revenue | 97,517 | 83,206 | 76,846 | 69,762 | 54,379 | 43,393 | 37,936 | 35,079 | 327,331 | 170,787 | 100,959 |
Gross profit | 128,585 | 108,557 | 105,349 | 97,047 | 85,406 | 71,297 | 64,761 | 52,677 | 439,538 | 274,141 | 140,473 |
Sales and marketing | 132,503 | 128,007 | 111,244 | 128,775 | 87,917 | 75,849 | 66,128 | 58,599 | 500,529 | 288,493 | 161,829 |
Research and development | 67,817 | 74,607 | 70,914 | 75,281 | 35,129 | 31,390 | 26,024 | 23,857 | 288,619 | 116,400 | 73,510 |
General and administrative | 16,878 | 15,610 | 15,481 | 29,372 | 10,289 | 8,761 | 7,840 | 7,375 | 77,341 | 34,265 | 23,899 |
Total operating expenses | 217,198 | 218,224 | 197,639 | 233,428 | 133,335 | 116,000 | 99,992 | 89,831 | 866,489 | 439,158 | 259,238 |
Loss from operations | (88,613) | (109,667) | (92,290) | (136,381) | (47,929) | (44,703) | (35,231) | (37,154) | (426,951) | (165,017) | (118,765) |
Other expense—net | (547) | 303 | (421) | (25,712) | (959) | (2,106) | 2,646 | (871) | (26,377) | (1,290) | (5,818) |
Loss before provision for income taxes | (89,160) | (109,364) | (92,711) | (162,093) | (48,888) | (46,809) | (32,585) | (38,025) | (453,328) | (166,307) | (124,583) |
Provision for income taxes | 1,493 | 2,613 | 501 | 76 | 1,041 | 11 | 620 | 520 | 4,683 | 2,192 | 1,544 |
Net loss | $ (90,653) | $ (111,977) | $ (93,212) | $ (162,169) | $ (49,929) | $ (46,820) | $ (33,205) | $ (38,545) | $ (458,011) | $ (168,499) | $ (126,127) |
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share) | $ (0.59) | $ (0.78) | $ (0.66) | $ (2.18) | $ (1.11) | $ (1.05) | $ (0.76) | $ (0.90) | $ (3.57) | $ (3.83) | $ (3.11) |
Total stock-based compensation expense | $ 37,805 | $ 50,351 | $ 52,607 | $ 90,728 | $ 4,676 | $ 5,044 | $ 4,950 | $ 5,386 | $ 231,491 | $ 20,056 | $ 17,140 |
Amortization of intangible assets | 608 | 608 | 608 | 405 | 0 | 0 | 0 | 0 | 2,229 | ||
Cost of product revenue | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total stock-based compensation expense | 642 | 610 | 848 | 966 | 80 | 98 | 104 | 109 | |||
Amortization of intangible assets | 358 | 358 | 360 | 238 | 0 | 0 | 0 | 0 | |||
Cost of revenue, support and other services | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total stock-based compensation expense | 2,201 | 2,471 | 2,389 | 3,350 | 204 | 230 | 241 | 293 | 10,411 | 968 | 718 |
Sales and marketing | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total stock-based compensation expense | 12,972 | 15,726 | 15,528 | 33,891 | 1,895 | 2,029 | 1,964 | 2,118 | 78,117 | 8,006 | 6,474 |
Amortization of intangible assets | 250 | 250 | 248 | 167 | 0 | 0 | 0 | ||||
Research and development | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total stock-based compensation expense | 19,218 | 27,041 | 28,759 | 34,026 | 1,499 | 1,519 | 1,612 | 1,629 | 109,044 | 6,259 | 5,411 |
General and administrative | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total stock-based compensation expense | $ 2,772 | $ 4,503 | $ 5,083 | $ 18,495 | $ 998 | $ 1,168 | $ 1,029 | $ 1,237 | $ 30,853 | $ 4,432 | $ 4,174 |