Zscaler (ZS) 10-Q 7 Jun 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Apr. 30, 2018	May 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Zscaler, Inc.
Entity Central Index Key	1,713,683
Current Fiscal Year End Date	--07-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Shares Outstanding		119,606,722

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Current assets:
Cash and cash equivalents	$ 287,443	$ 87,978
Accounts receivable, net	40,215	39,052
Deferred contract acquisition costs	13,753	10,469
Prepaid expenses and other current assets	9,036	5,410
Total current assets	350,447	142,909
Property and equipment, net	20,441	13,139
Deferred contract acquisition costs, noncurrent	32,755	24,193
Other noncurrent assets	1,895	2,661
Total assets	405,538	182,902
Current liabilities:
Accounts payable	4,944	3,763
Accrued expenses and other current liabilities	13,767	11,648
Accrued compensation	14,820	11,608
Liability for early exercise of unvested stock options	2,625	7,972
Deferred revenue	111,035	85,468
Total current liabilities	147,191	120,459
Deferred revenue, noncurrent	13,771	11,151
Other noncurrent liabilities	1,384	1,457
Total liabilities	162,346	133,067
Commitments and contingencies (Note 4)
Redeemable Convertible Preferred Stock
Redeemable convertible preferred stock; $0.001 par value; no shares and 73,100 shares authorized as of April 30, 2018 and July 31, 2017, respectively; no shares and 72,501 shares issued and outstanding as of April 30, 2018 and July 31, 2017, respectively; aggregate liquidation preference of $0 and $201,376 as of April 30, 2018 and July 31, 2017, respectively	0	200,977
Stockholders’ Equity (Deficit)
Preferred stock; $0.001 par value; 200,000 and 73,100 shares authorized as of April 30, 2018 and July 31, 2017, respectively; no shares issued and outstanding as of April 30, 2018 and July 31, 2017	0	0
Common stock; $0.001 par value; 1,000,000 and 130,000 shares authorized as of April 30, 2018 and July 31, 2017, respectively; 119,819 and 32,359 shares issued and outstanding as of April 30, 2018 and July 31, 2017, respectively	119	18
Additional paid-in capital	434,250	18,734
Notes receivable from stockholders	(2,039)	(7,878)
Accumulated deficit	(189,138)	(162,016)
Total stockholders’ equity (deficit)	243,192	(151,142)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)	$ 405,538	$ 182,902

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Statement of Financial Position [Abstract]
Redeemable convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Redeemable convertible preferred stock, shares authorized (in shares)	0	73,100,000
Redeemable convertible preferred stock, shares issued (in shares)	0	72,501,000
Redeemable convertible preferred stock, shares outstanding (in shares)	0	72,501,000
Redeemable convertible preferred stock, aggregate liquidation price	$ 0	$ 201,376
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	200,000,000	73,100,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	130,000,000
Common stock, shares issued (in shares)	119,819,000	32,359,000
Common stock, shares outstanding (in shares)	119,819,000	32,359,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Income Statement [Abstract]
Revenue	$ 49,163	$ 32,964	$ 134,000	$ 89,173
Cost of revenue	9,424	6,997	26,374	19,438
Gross profit	39,739	25,967	107,626	69,735
Operating expenses:
Sales and marketing	29,892	20,689	83,930	55,601
Research and development	9,907	7,778	27,899	24,952
General and administrative	8,964	5,061	22,497	11,201
Total operating expenses	48,763	33,528	134,326	91,754
Loss from operations	(9,024)	(7,561)	(26,700)	(22,019)
Other income, net	610	183	1,019	379
Loss before income taxes	(8,414)	(7,378)	(25,681)	(21,640)
Provision for income taxes	357	184	1,003	551
Net loss	(8,771)	(7,562)	(26,684)	(22,191)
Accretion of Series C and D redeemable convertible preferred stock	(1,223)	(2,355)	(6,332)	(7,088)
Net loss attributable to common stockholders	$ (9,994)	$ (9,917)	$ (33,016)	$ (29,279)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.14)	$ (0.34)	$ (0.73)	$ (1.01)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	73,818,000	29,583,000	45,047,000	28,875,000

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - 9 months ended Apr. 30, 2018 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Notes Receivable From Stockholders	Accumulated Deficit
Redeemable convertible preferred stock, beginning balance (in shares) at Jul. 31, 2017	72,501,000
Redeemable convertible preferred stock, beginning balance at Jul. 31, 2017	$ 200,977
Increase (Decrease) in Temporary Equity [Roll Forward]
Accretion of Series C and D redeemable convertible preferred stock	$ 6,332
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)	(72,501,000)
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	$ (207,309)
Redeemable convertible preferred stock, ending balance (in shares) at Apr. 30, 2018	0
Redeemable convertible preferred stock, ending balance at Apr. 30, 2018	$ 0
Common stock, beginning balance (in shares) at Jul. 31, 2017	32,359,000	32,359,000
Beginning balance at Jul. 31, 2017	$ (151,142)	$ 18	$ 18,734	$ (7,878)	$ (162,016)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion of Series C and D redeemable convertible preferred stock	$ (6,332)		(6,332)
Issuance of common stock upon exercise of stock options (in shares)	1,708	1,528,000
Issuance of common stock upon exercise of stock options	$ 4,345	$ 2	4,343
Issuance of common stock related to early exercised stock options (in shares)		180,000
Issuance of common stock related to early exercised stock options	0
Repurchases of unvested common stock (in shares)		(549,000)
Repurchases of unvested common stock	214			214
Repayments of notes receivable from stockholders	5,346			5,346
Accrued interest on notes receivable from stockholders, net of repayments	279			279
Vesting of early exercised stock options	2,912	$ 12	2,900
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs (in shares)		13,800,000
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs	199,839	$ 14	199,825
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)		72,501,000
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	207,309	$ 73	207,236
Stock-based compensation	7,106		7,106
Net loss	$ (26,684)				(26,684)
Common stock, ending balance (in shares) at Apr. 30, 2018	119,819,000	119,819,000
Ending balance at Apr. 30, 2018	$ 243,192	$ 119	434,250	$ (2,039)	(189,138)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change	$ 0		$ 438		$ (438)

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Cash Flows From Operating Activities
Net loss	$ (26,684)	$ (22,191)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization expense	5,842	5,007
Amortization of deferred contract acquisition costs	9,354	5,992
Stock-based compensation expense	7,106	8,336
Other	278	(46)
Changes in operating assets and liabilities:
Accounts receivable	(1,161)	255
Deferred contract acquisition costs	(21,200)	(11,660)
Prepaid expenses and other assets	(3,341)	(1,438)
Accounts payable	(1,620)	138
Accrued expenses and other liabilities	2,676	1,133
Accrued compensation	3,212	336
Deferred revenue	28,187	11,827
Net cash provided by (used in) operating activities	2,649	(2,311)
Cash Flows From Investing Activities
Purchases of property and equipment	(11,008)	(6,291)
Capitalized internal-use software	(1,424)	(146)
Net cash used in investing activities	(12,432)	(6,437)
Cash Flows From Financing Activities
Proceeds from initial public offering, net of underwriting discounts and commissions	205,344	0
Payments of costs related to initial public offering	(3,566)	0
Proceeds from issuance of common stock upon exercise of stock options	4,345	1,415
Proceeds from issuance of common stock related to early exercised stock options	869	0
Repurchases of unvested common stock	(3,090)	0
Repayments of notes receivable from stockholders	5,346	1,856
Net cash provided by financing activities	209,248	3,271
Net increase (decrease) in cash and cash equivalents	199,465	(5,477)
Cash and cash equivalents, beginning of period	87,978	92,842
Cash and cash equivalents, end of period	287,443	87,365
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes	608	365
Supplemental Disclosure of Noncash Investing and Financing Activities:
Net change in equipment included in accounts payable and accrued expenses	709	428
Accretion of Series C and D redeemable convertible preferred stock	6,332	7,088
Repurchases of unvested common stock	214	263
Vesting of early exercised common stock options	2,912	3,122
Net change in deferred offering costs, accrued but not paid	1,462	0
Conversion of redeemable convertible preferred stock to common stock	$ 207,309	$ 0

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	9 Months Ended
	Apr. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Summary of Significant Accounting Policies	Business and Summary of Significant Accounting Policies Organization and Description of the Business Zscaler, Inc. ("Zscaler," the "Company," "we," "us," or "our") is a cloud security company that developed a platform incorporating core security functionalities needed to enable users to safely utilize authorized applications and services based on an organization’s policies. Our solution is a purpose-built, multi-tenant, distributed cloud security platform that secures access for users and devices to applications and services, regardless of location. We deliver our solutions using a software-as-a-service ("SaaS") business model and sell subscriptions to customers to access our cloud platform, together with related support services. We were incorporated in Delaware in September 2007 and conduct business worldwide, with presence in North America, Europe and Asia. Our headquarters are in San Jose, California. Reverse Stock Split In March 2018, our board of directors approved an amendment to the Company’s amended and restated certificate of incorporation effecting a 2-for-3 reverse stock split of the Company’s issued and outstanding shares of common stock and convertible preferred stock. The reverse stock split was effected on March 1, 2018. The par value of the common and redeemable convertible preferred stock was not adjusted as a result of the reverse stock split. All issued and outstanding share and per share amounts included in the accompanying condensed consolidated financial statements have been adjusted to reflect this reverse stock split for all periods presented. Initial Public Offering In March 2018, we completed the initial public offering ("IPO") of common stock, in which we sold 13,800,000 shares. The shares were sold at an IPO price of $16.00 per share for net proceeds of $205.3 million , after deducting underwriters' discounts and commissions of $15.5 million . As of April 30, 2018 , we have reclassified $5.5 million of offering costs into stockholders’ equity (deficit) as a reduction of the net proceeds received from the IPO. Immediately prior to the closing of the IPO, all our outstanding shares of convertible preferred stock automatically converted into 72,500,750 shares of common stock on a one -to-one basis. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and applicable regulations of the Security and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of Zscaler, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended July 31, 2017 , included in our Prospectus. Interim Unaudited Condensed Consolidated Financial Statements The accompanying interim condensed consolidated balance sheets as of April 30, 2018 , the interim condensed consolidated statements of operations for the three and nine months ended April 30, 2018 and 2017 , and the interim condensed consolidated statement of cash flows for the nine months ended April 30, 2018 and 2017 , and the interim condensed consolidated statement of redeemable convertible preferred stock and stockholders’ equity (deficit) for the nine months ended April 30, 2018 are unaudited. The interim unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position as of April 30, 2018 , its results of operations for the three and nine months ended April 30, 2018 and 2017 , and its statement of cash flows for the nine months ended April 30, 2018 and 2017 and its statement of redeemable convertible preferred stock and stockholders’ equity (deficit) for the nine months ended April 30, 2018 . The financial data and the other financial information disclosed in the notes to these condensed consolidated financial statements related to the three-month and nine-month periods are also unaudited. The results of operations for the three and nine months ended April 30, 2018 are not necessarily indicative of the results to be expected for fiscal 2018 or for any other future fiscal year or interim period. JOBS Act Accounting Election We are an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"). An EGC may take advantage of specified reduced reporting requirements that are otherwise applicable generally to public companies, including, but not limited to, delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act"), reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. We have irrevocably elected not to avail ourselves of the extended transition periods available under the JOBS Act for complying with new and revised accounting standards and, therefore, we will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies, but we intend to take advantage of the other exemptions discussed above. We may take advantage of these exemptions until we are no longer an emerging growth company. We would cease to be an EGC upon the earliest to occur of: (i) the first fiscal year following the fifth anniversary of our initial public offering; (ii) the first fiscal year after our annual gross revenue is $1.07 billion or more; (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt securities; or (iv) as of the end of any fiscal year in which the market value of our common stock held by non-affiliates exceeded $700.0 million as of the end of the second quarter of that fiscal year. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of revenue recognition, deferred revenue, deferred contract acquisition costs, the period of benefit generated from our deferred contract acquisition costs, allowance for doubtful accounts, valuation of common stock options and stock-based awards, useful lives of property and equipment, loss contingencies related to litigation and valuation of deferred tax assets. Management determines these estimates and assumptions on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the condensed consolidated financial statements. Fiscal Year Our fiscal year ends on July 31. References to fiscal 2018 , for example, refer to our fiscal year ending July 31, 2018 . Significant Accounting Policies Our significant accounting policies are discussed in the "Index to Consolidated Financial Statements, Note 2. Basis of Presentation and Summary of Significant Accounting Policies" in the Prospectus. There have been no significant changes to these policies that have had a material impact on our condensed consolidated financial statements and related notes for the three and nine months ended April 30, 2018 , except as noted below. Revenue Recognition We have adopted Accounting Standards Codification ("ASC") Topic 606, Revenue From Contracts With Customers ("ASC 606"), effective as of August 1, 2017, using the full retrospective transition method. Under this method, we are presenting the condensed consolidated financial statements for the fiscal periods presented, as if ASC 606 had been effective for those periods. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these services. To achieve the core principle of this standard, we apply the following five steps: 1) Identify the contract with a customer We consider the terms and conditions of the contracts and our customary business practices in identifying our contracts under ASC 606. We determine we have a contract with a customer when the contract is approved, we can identify each party’s rights regarding the services to be transferred, we can identify the payment terms for the services, we have determined the customer has the ability and intent to pay and the contract has commercial substance. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. Our performance obligations consist of (i) our subscription and support services and (ii) professional and other services. 3) Determine the transaction price The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of our contracts contain a significant financing component. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price ("SSP"). 5) Recognize revenue when or as we satisfy a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised service to a customer. Revenue is recognized when control of the services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those services. We generate all our revenue from contracts with customer. Subscription and Support Revenue We generate revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. Arrangements with customers do not provide the customer with the right to take possession of our software operating our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. A time-elapsed output method is used to measure progress because we transfer control evenly over the contractual period. Accordingly, the fixed consideration related to subscription and support revenue is generally recognized on a straight-line basis over the contract term beginning on the date that our service is made available to the customer. The typical subscription and support term is one to three years. Most of our contracts are non-cancelable over the contractual term. Customers typically have the right to terminate their contracts for cause if we fail to perform in accordance with the contractual terms. Some of our customers have the option to purchase additional subscription and support services at a stated price. These options generally do not provide a material right as they are priced at our SSP. Professional and Other Services Revenue Professional and other services revenue consists of fees associated with providing deployment advisory services that educate and assist our customers on the best use of our solutions, as well as advise customers on best practices as they deploy our solution. These services are distinct from subscription and support services. Professional services do not result in significant customization of the subscription service. Revenue from professional services provided on a time and materials basis is recognized as the services are performed. Total professional and other services revenue has historically not been material. Contracts with Multiple Performance Obligations Most of our contracts with customers contain multiple promised services consisting of: (i) our subscription and support services and (ii) professional and other services that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on our overall pricing objectives, taking into consideration the type of subscription and support services and professional and other services, the geographical region of the customer and the number of users. Variable Consideration Revenue from sales is recorded at the net sales price, which is the transaction price, and includes estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved. If our services do not meet certain service level commitments, our customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. We have historically not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts. Accordingly, any estimated refunds related to these agreements in the condensed consolidated financial statements is not material during the periods presented. We provide rebates and other credits within our contracts with certain customers, which are estimated based on the most likely amounts expected to be earned or claimed on the related sales transaction. Overall, the transaction price is reduced to reflect our estimate of the amount of consideration to which we are entitled based on the terms of the contract. Estimated rebates and other credits were not material during the periods presented. Disaggregation of Revenue Subscription and support revenue is recognized over time and accounted for approximately 99% and 98% of our revenue for the three months ended April 30, 2018 and 2017 , respectively, and approximately 99% of our revenue for the nine months ended April 30, 2018 and 2017 . The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except percentage data) United States $ 21,722 44 % $ 15,369 47 % $ 61,707 46 % $ 40,824 46 % Europe, Middle East and Africa 22,439 46 % 14,880 45 % 59,593 44 % 40,600 45 % Asia Pacific 3,733 8 % 2,505 7 % 10,287 8 % 6,881 8 % Other 1,269 2 % 210 1 % 2,413 2 % 868 1 % Total $ 49,163 100 % $ 32,964 100 % $ 134,000 100 % $ 89,173 100 % The following table summarizes the revenue from contracts by type of customer: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except percentage data) Channel partners $ 45,496 93 % $ 29,282 89 % $ 122,925 92 % $ 78,205 88 % Direct customers 3,667 7 % 3,682 11 % 11,075 8 % 10,968 12 % Total $ 49,163 100 % $ 32,964 100 % $ 134,000 100 % $ 89,173 100 % Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the three months ended April 30, 2018 and 2017 , we recognized revenue of $21.0 million and $13.5 million , respectively, that was included in the corresponding contract liability balance at the beginning of these periods. For the nine months ended April 30, 2018 and 2017 , we recognized revenue of $75.0 million and $51.1 million , respectively, that was included in the corresponding contract liability balance at the beginning of these periods. We receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days. Contract assets include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced and such amounts have historically not been material. Remaining Performance Obligations The typical subscription and support term is one to three years. Most of our subscription and support contracts are non-cancelable over the contractual term. However, customers typically have the right to terminate their contracts for cause, if we fail to perform. As of April 30, 2018 , the aggregate amount of the transaction price allocated to remaining performance obligations was $304.7 million . We expect to recognize 54% of the transaction price over the next 12 months and 98% of the transaction price over the next three years, with the remainder recognized thereafter. Costs to Obtain and Fulfill a Contract We capitalize sales commission and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of channel partner and direct customer contracts. These costs are recorded as deferred contract acquisition costs in the condensed consolidated balance sheets. We determine whether costs should be deferred based on our sales compensation plans, if the commissions are in fact incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit of five years while commissions paid for renewal contracts are amortized over the contractual term of the renewals. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the condensed consolidated statements of operations. We determine the period of benefit for commissions paid for the acquisition of the initial contract by taking into consideration the expected subscription term and expected renewals of our customer contracts, the duration of our relationships with our customers, customer retention data, our technology development lifecycle and other factors. We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. We did not recognize any impairment losses of deferred contract acquisition costs during the periods presented. The following table summarizes the activity of the deferred contract acquisition costs: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 (in thousands) Beginning balance $ 39,943 $ 24,676 $ 34,662 $ 21,137 Capitalization of contract acquisition costs 9,987 4,295 21,200 11,660 Amortization of deferred contract acquisition costs (3,422 ) (2,166 ) (9,354 ) (5,992 ) Ending balance $ 46,508 $ 26,805 $ 46,508 $ 26,805 Deferred contract acquisition costs, current $ 13,753 $ 8,560 $ 13,753 $ 8,560 Deferred contract acquisition costs, noncurrent 32,755 18,245 32,755 18,245 Total deferred contract acquisition costs $ 46,508 $ 26,805 $ 46,508 $ 26,805 Deferred Offering Costs Deferred offering costs are capitalized and consist of fees and expenses incurred in connection with the anticipated sale of our common stock in an IPO, consisting of legal, accounting, printing and other IPO-related costs. As of July 31, 2017 , the balance of deferred offering costs was $1.2 million and included in other noncurrent assets in the condensed consolidated balance sheets. Subsequent to July 31, 2017 , we capitalized an additional $5.0 million of offering costs. In March 2018, upon completion of our IPO, we reclassified $5.5 million of offering costs into stockholders' equity (deficit) as a reduction of the net proceeds received from the IPO. During the nine months ended April 30, 2018 , we paid $3.6 million of the deferred offering costs. Stock-Based Compensation Stock-based compensation expense for common stock options granted to employees and non-employees is recognized based on the fair value of the awards granted, determined using the Black-Scholes option pricing model and a single option award approach. Stock‐based compensation expense is recognized as expense over the requisite service period, generally four years. Unvested options issued to non-employees are remeasured at fair market value at the end of each reporting period. Stock-based compensation expense related to purchase rights issued under the 2018 Employee Stock Purchase Plan ("ESPP") is based on the Black-Scholes option pricing model fair value of the estimated number of awards as of the beginning of the offering period. Stock-based compensation expense is recognized following the straight-line attribution method over the offering period. Prior to the IPO, the fair value of our common stock for financial reporting purposes was determined considering numerous objective and subjective factors and required judgment to determine the fair value of common stock as of each grant date. Subsequent to the IPO, we determine the fair value using the market closing price of our common stock on the date of grant. Prior to fiscal 2018, we recognized stock-based compensation expense, net of estimated forfeitures. We used historical data to estimate pre-vesting forfeitures and recorded stock-based compensation expense only for those grants that were expected to vest. On August 1, 2017, we adopted Accounting Standard Update ("ASU") No. 2016-09, Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplifies several aspects of the accounting for employee share-based payment transactions. In accordance with ASU 2016-09, we have elected to account for forfeitures as they occur instead of estimating the number of awards expected to be forfeited and adjusting the estimate when it is no longer probable that the employee will fulfill the service condition. We adopted this provision in our first quarter of fiscal 2018 and resulted in a cumulative-effect adjustment to accumulated deficit of $0.4 million , net of tax, as of the date of adoption. Additionally, upon adoption of ASU 2016-09, on a modified retrospective basis, the previously unrecognized excess tax benefits of $0.9 million as of July 31, 2017 were recorded as an increase of U.S. federal and state deferred tax assets, which was substantially offset by our valuation allowance. Prospectively, all excess tax benefits and deficiencies will be recognized in the income statement as a component of our income tax expense or benefit. Further, we will present excess tax benefits as an operating activity in the consolidated statements of cash flows on a prospective basis. For the three and nine months ended April 30, 2018, the net excess tax benefits related to equity awards was not material. Net Loss Per Share Attributable to Common Stockholders Prior to the IPO, basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. We consider all series of our convertible preferred stock to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the holders of our convertible preferred stock do not have a contractual obligation to share in our losses. Under the two-class method, net income is attributed to common stockholders and participating securities based on their participation rights. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Net loss attributable to common stockholders is calculated by adjusting the net loss for the accretion of redeemable convertible preferred stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for all potentially dilutive common stock equivalents outstanding during the period. Potentially dilutive securities consist of convertible preferred stock, stock options, shares subject to repurchase from early exercised stock options and estimated shares to be issued under the ESPP. Upon closing of the IPO, all shares of convertible preferred stock then outstanding were automatically converted into an equivalent number of shares of common stock on a one -to-one basis and their carrying amount reclassified into stockholders’ equity (deficit). As of April 30, 2018 , there were no shares of preferred stock issued and outstanding. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09. This ASU simplifies various aspects related to how share-based payments are accounted for and presented in the financial statements, including income taxes, forfeitures, and statutory tax withholding requirements. For public business entities, it is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted. We adopted ASU 2016-09 as of August 1, 2017, resulting in the impact discussed above. The adoption of this ASU did not have a material impact to our condensed consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception . This ASU reduces the complexity associated with an issuer’s accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the FASB determined that a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. For public business entities, it is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We adopted this standard at the beginning of our third quarter of fiscal 2018 (February 1, 2018), using the retrospective transition method, resulting in no impact to our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). The main difference between previous guidance and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting guidance. ASU 2016-02 retains the distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the previous leases guidance. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. For public business entities, it is effective for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. For public business entities, it is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) . This ASU provides guidance to decrease the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. For public business entities, it is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) , which updates the classification of restricted cash in the statement of cash flows. For public business entities, it is effective for fiscal years beginning after December 15, 2017, and interim periods therein. Early adoption is permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which provides clarity in applying the guidance in Topic 718 around modifications of share-based payment awards. For public business entities, it is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We will adopt this ASU on August 1, 2018, and the adoption is not expected to have a material impact on our consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Apr. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements We measure our financial assets and liabilities that are measured at fair value on a recurring basis at each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. We classify cash equivalents, comprised of highly liquid money market funds, within Level I of the fair value hierarchy because they are valued based on quoted market prices in active markets. The following table summarizes assets that are measured at fair value on a recurring basis as of April 30, 2018 : Level I Level II Level III Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Assets: Money market funds $ 267,178 $ 267,178 $ — $ — The following table summarizes assets that are measured at fair value on a recurring basis as of July 31, 2017 : Level I Level II Level III Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Assets: Money market funds $ 72,441 $ 72,441 $ — $ —

Property and Equipment

Property and Equipment	9 Months Ended
	Apr. 30, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment The following table summarizes our property and equipment: April 30, 2018 July 31, 2017 (in thousands) Hosting equipment $ 30,591 $ 20,241 Computers and equipment 2,153 1,539 Purchased software 1,299 1,257 Capitalized internal-use software 5,814 4,390 Furniture and fixtures 1,479 1,035 Leasehold improvements 2,125 1,981 Property and equipment, gross 43,461 30,443 Less: Accumulated depreciation and amortization (23,020 ) (17,304 ) Total property and equipment, net $ 20,441 $ 13,139 Depreciation and amortization expense on property and equipment was $1.9 million and $1.7 million for the three months ended April 30, 2018 and 2017 , respectively, and $5.8 million and $5.0 million for the nine months ended April 30, 2018 and 2017 , respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Apr. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Leases We lease our office space under various operating lease agreements expiring at various dates through April 2021. The following table summarizes the future minimum payments under our non-cancelable operating leases as of April 30, 2018 : Operating (in thousands) Year ending July 31, 2018 (remaining three months) $ 842 2019 2,875 2020 2,299 2021 1,531 Total $ 7,547 Rent expense was $0.7 million and $0.4 million for the three months ended April 30, 2018 and 2017 , respectively, and $1.8 million and $1.2 million for the nine months ended April 30, 2018 and 2017 , respectively. Data Center Contract Commitments We enter into long-term non-cancelable agreements with providers in various countries to purchase data center capacity, such as bandwidth and colocation space, for our cloud platform. Bandwidth and colocation costs were $2.6 million and $1.6 million for the three months ended April 30, 2018 and 2017 , respectively, and $6.9 million and $4.7 million for the nine months ended April 30, 2018 and 2017 , respectively. The following table summarizes the future minimum payments under our non-cancelable data center contracts as of April 30, 2018 : Data Center (in thousands) Year ending July 31, 2018 (remaining three months) $ 1,421 2019 4,591 2020 2,985 2021 858 2022 134 Total $ 9,989 Non-cancelable Purchase Obligations In the normal course of business, we enter into non-cancelable purchase commitments with various parties to purchase products and services such as technology equipment, office renovations, corporate events and consulting services. As of April 30, 2018 and July 31, 2017 , we had outstanding non-cancelable purchase obligations with a term of 12 months or longer of $2.6 million and $2.2 million , respectively. Legal Matters Symantec Litigation We are currently involved in legal proceedings with Symantec Corporation ("Symantec"). On December 12, 2016, Symantec filed a complaint, which we refer to as Symantec Case 1, in the U.S. District Court for the District of Delaware alleging that "Zscaler’s cloud security platform" infringes U.S. Patent Nos. 6,279,113, 7,203,959 ("’959 patent"), 7,246,227 ("’227 patent"), 7,392,543, 7,735,116 ("'116 Patent"), 8,181,036 and 8,661,498. The complaint seeks compensatory damages, an injunction, enhanced damages and attorney fees. We believe our technology does not infringe Symantec’s asserted patents and that Symantec’s patents are invalid. On August 2, 2017, the court granted our motion to transfer Symantec Case 1 from the District of Delaware to the Northern District of California. On March 23, 2018, the Northern District of California court granted our motion to dismiss the asserted claims of the ’959 and ’227 patents as invalid based on unpatentable subject matter. We have also filed a motion seeking a judgment that the asserted claims of the ’116 patent are invalid as claiming unpatentable subject matter. The Markman claim construction hearing for Symantec Case 1 is scheduled for July 31, 2018. On April 18, 2017, Symantec filed a second complaint, which we refer to as Symantec Case 2, in the U.S. District Court for the District of Delaware alleging that "Zscaler’s cloud security platform" infringes U.S. Patent Nos. 6,285,658 ("’658 patent"), 7,360,249, 7,587,488 ("’488 patent"), 8,316,429 ("’429 patent"), 8,316,446 ("’446 patent"), 8,402,540 and 9,525,696. The complaint seeks compensatory damages, an injunction, enhanced damages and attorney fees. On June 22, 2017, Symantec filed a notice of voluntary dismissal of its complaint in Symantec Case 2 along with a new complaint alleging infringement of the same patents and adding Symantec Limited as a plaintiff and alleging willful infringement of the ’429 and ’446 patents. On July 31, 2017, the court granted our motion to transfer Symantec Case 2 from the District of Delaware to the Northern District of California. On May 21, 2018, Symantec filed an amended complaint adding allegations of willful infringement of all of the asserted patents in Symantec Case 2. We believe our technology does not infringe Symantec’s asserted patents and that Symantec’s patents are invalid. We have filed a motion to dismiss the ’658, ’429, ’446 and ’488 patents as invalid based on unpatentable subject matter. The Markman claim construction hearing for Symantec Case 2 is scheduled for March 19, 2019. We have also received letters from Symantec alleging that our “cloud security platform” infringes U.S. Patent Nos. 7,031,327, 7,496,661, 7,543,036 and 7,624,110. We believe that our technology does not infringe Symantec’s asserted patents and that these patents are invalid. We have not recorded a liability with respect to Symantec Case 1 or Case 2 based on our determination that a loss in either case is not probable (though it may be reasonably possible) under the applicable accounting standards. We are vigorously defending Symantec Case 1 and Case 2. Although a loss may be reasonably possible, we are unable to predict the likelihood of success of Symantec’s infringement claims or estimate a range of loss. Finjan Litigation We are currently involved in legal proceedings with Finjan, Inc. ("Finjan"). On December 5, 2017, Finjan filed a complaint, in the U.S. District Court for the Northern District of California alleging that Zscaler’s "Internet Access Bundles," "Private Access Bundle," "Zscaler Enforcement Node," "Secure Web Gateway," "Cloud Firewall," "Cloud Sandbox" and "Cloud Architecture products and services" infringe U.S. Patent Nos. 6,804,780, 7,647,633, 8,677,494 and 7,975,305. The complaint seeks compensatory damages, an injunction, enhanced damages and attorney fees. We believe our technology does not infringe Finjan’s asserted patents and that Finjan’s patents are invalid. The Markman claim construction hearing for the Finjan Case is scheduled for December 11, 2018. While the range of potential loss resulting from the lawsuit cannot be reasonably estimated, we have accrued a total liability of $3.2 million as of April 30, 2018 related to past negotiations with Finjan of which we recorded $0.7 million in the nine months ended April 30, 2018 and $2.5 million in fiscal 2017. We are vigorously defending this lawsuit. Given the early stage in the litigation, we are unable to predict the likelihood of success of Finjan’s infringement claims. Other Litigation and Claims In addition, from time to time we are a party to various litigation matters and subject to claims that arise in the ordinary course of business, including patent, commercial, product liability, employment, class action, whistleblower and other litigation and claims, as well as governmental and other regulatory investigations and proceedings. In addition, third parties may from time to time assert claims against us in the form of letters and other communications. Except as otherwise described above, there is no pending or threatened legal proceeding to which we are a party that, in our opinion, is likely to have a material adverse effect on our future financial results or operations; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. The expense of litigation and the timing of this expense from period to period are difficult to estimate, subject to change and could adversely affect our results of operations.

Redeemable Convertible Preferre

Redeemable Convertible Preferred Stock	9 Months Ended
	Apr. 30, 2018
Temporary Equity Disclosure [Abstract]
Redeemable Convertible Preferred Stock	Redeemable Convertible Preferred Stock Upon completion of our IPO, all shares of convertible preferred stock then outstanding, totaling 72,500,750 shares, were automatically converted into an equivalent number of shares of common stock on a one -to-one basis and their carrying value, totaling $ 207.3 million, inclusive of accretion of Series C and D redeemable convertible preferred stock of $ 24.7 million, was reclassified into stockholders’ equity (deficit). We recognized accretion to the redemption price of Series C and D redeemable convertible preferred stock of $1.2 million and $2.4 million for the three months ended April 30, 2018 and 2017 , respectively, and $6.3 million and $7.1 million for the nine months ended April 30, 2018 and 2017 , respectively. Accretion is recognized as a reduction of additional paid-in capital with a corresponding increase to the carrying value of Series C and D redeemable convertible preferred stock. Upon completion of the IPO, the accretion rights of Series C and D redeemable convertible preferred stock were terminated. In connection with the IPO, we filed an Amended and Restated Certificate of Incorporation which authorize the issuance of 200,000,000 shares of undesignated preferred stock with a par value of $0.001 with rights and preferences, including voting rights, designated from time to time by our board of directors.

Common Stock

Common Stock	9 Months Ended
	Apr. 30, 2018
Equity [Abstract]
Common Stock	Common Stock In March 2018, upon completion of our IPO, we sold 13,800,000 shares. The shares were sold at an IPO price of $16.00 per share for net proceeds of $205.3 million , after deducting underwriters' discounts and commissions of $15.5 million . As of April 30, 2018 , we have reclassified $5.5 million of offering costs into stockholders’ equity (deficit) as a reduction of the net proceeds received from the IPO. In connection with the IPO, we filed an Amended and Restated Certificate of Incorporation which authorize the issuance of 1,000,000,000 shares of common stock with a par value of $0.001 . Our common stock is not redeemable and common stockholders are entitled to one vote for each share of common stock held.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Apr. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Our equity incentive plans provide for granting stock options, restricted stock awards and restricted stock units ("RSUs") to employees, consultants, officers and directors. In addition, we offer an employee stock purchase plan to eligible employees. Equity Incentive Plans In September 2007, our board of directors and our stockholders adopted the 2007 Stock Plan (the "2007 Plan"). In March 2018, our board of directors and our stockholders adopted the Fiscal Year 2018 Equity Incentive Plan (the "2018 Plan") with the purpose of granting stock-based awards to employees, directors, officers and consultants, including stock options, restricted stock awards and restricted stock units. A total of 12,700,000 shares of common stock are available for issuance under the 2018 Plan. Our compensation committee administers the 2018 Plan. The number of shares of our common stock available for issuance under the 2018 Plan also includes an annual increase on the first day of each fiscal year beginning on August 1, 2018, equal to the least of: (i) 12,700,000 shares of common stock, (ii) 5% of the outstanding shares of our common stock as of the last day of the immediately preceding fiscal year, or (iii) such other number of shares determined by our board of directors. In connection with the IPO, the 2007 Plan was terminated. As of April 30, 2018 , a total of 16,935,138 stock options granted under the 2007 Plan remained outstanding. With the establishment of the 2018 Plan, we no longer grant any stock-based awards under the 2007 Plan and any shares underlying stock options that expire or terminate or are forfeited or repurchased by us under the 2007 Plan will be automatically transferred to the 2018 Plan. Equity incentive awards granted under the 2007 Plan and 2018 Plan, collectively referred to as the "Plans," may be either incentive stock options, nonstatutory stock options , restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to our employees, directors and consultants. Under the Plans, the exercise price of a stock option grant must be not less than 100% of the fair market value of the common stock on the date of grant. Generally, stock options vest over four years with 25% of the option shares vesting one year from the date of grant and the remainder vesting monthly over the remaining vesting term. Stock options granted under the 2018 Plan and 2007 Plan are exercisable over a maximum term of ten years and seven years, respectively, from the date of grant. Stock options that are forfeited or canceled shall become available for future grant or sale under the 2018 Plan. The following table summarizes the stock option activity under the Plans: Shares Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share data) Balance as of July 31, 2017 739 15,058 $4.50 5.6 $ 56,717 Increase in 2007 Plan authorized shares 3,333 — Increase in 2018 Plan authorized shares 12,700 — Stock options granted (5,011 ) 5,011 $9.96 Stock options exercised — (1,708 ) $3.05 $ 11,042 Repurchases of unvested shares 549 — $6.03 Stock options canceled, forfeited, expired 1,426 (1,426 ) $5.70 Balance as of April 30, 2018 13,736 16,935 $6.16 5.5 $ 401,868 Exercisable as of July 31, 2017 5,907 $3.67 4.9 $ 27,135 Exercisable as of April 30, 2018 6,020 $4.02 4.4 $ 155,750 The aggregate intrinsic value of the stock options exercised represents the difference between the estimated fair value of our common stock on the date of exercise and the exercise price of the stock options exercised. The weighted-average grant-date fair value per share of the stock options granted was $ 3.75 and $ 2.05 for the nine months ended April 30, 2018 and 2017 , respectively. Employee Stock Purchase Plan In March 2018, our board of directors and our stockholders adopted the Fiscal Year 2018 Employee Stock Purchase Plan, which became effective upon completion of the IPO. A total of 2,200,000 shares of common stock were initially reserved for issuance under the ESPP. The number of shares of our common stock available for sale under the ESPP also includes an annual increase on the first day of each fiscal year beginning on August 1, 2018, equal to the least of: (i) 2,200,000 shares of common stock, (ii) 1% of the outstanding shares of our common stock as of the last day of the immediately preceding fiscal year, or (iii) such other amount as the administrator may determine. Our compensation committee administers the ESPP. The ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and is comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 15 and December 15 of each year. The first offering period commenced on March 16, 2018 and is scheduled to end on the first trading day on or after June 15, 2020 . The ESPP provides eligible employees with an opportunity to purchase shares of our common stock through payroll deductions of up to 15% of their eligible compensation. A participant may purchase a maximum of 3,000 shares of common stock during a purchase period. Amounts deducted and accumulated by the participant are used to purchase shares of our common stock at the end of each six-month purchase period. The purchase price of the shares shall be 85% of the lower of the fair market value of our common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the related offering period. If the fair market value of the common stock on any purchase date within an offering period is lower than the stock price as of the beginning of the offering period, the offering period will immediately reset after the purchase of shares on such purchase date and participants will automatically re-enrolled in a new offering period. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of common stock. Participation ends automatically upon termination of employment. The initial offering period began on March 16, 2018. As of April 30, 2018 , no shares of common stock have been purchased under the ESPP. Stock-based compensation recognized on ESPP was $0.4 million for three and nine months ended April 30, 2018. The fair value of the purchase right for the ESPP is estimated on the date of grant using the Black-Scholes model with the following assumptions: Nine Months Ended April 30, 2018 Expected term (in years) 0.8 - 2.3 Expected stock price volatility 30.7% - 36.4% Risk-free interest rate 2.0% - 2.3% Dividend yield 0.0% Early Exercise of Employee Options The 2007 Plan allowed for the early exercise of stock options for certain individuals as determined by the board of directors. The consideration received for an early exercise of an option is considered to be a deposit of the exercise price and the related dollar amount is recorded as a liability and reflected as liability for early exercise of unvested stock options in the condensed consolidated balance sheets. This liability is reclassified to additional paid-in capital as the awards vest. If a stock option is early exercised, the unvested shares may be repurchased by us in case of employment termination for any reason, including death and disability, at the price paid by the purchaser for such shares. During the nine months ended April 30, 2018 , we issued 179,861 shares of common stock for total proceeds of $0.9 million related to early exercised stock options. During the nine months ended April 30, 2017 , we did not issue any shares related to early exercised stock options. As of April 30, 2018 and July 31, 2017 , the number of shares of common stock subject to repurchase was 772,782 shares and 1,887,638 shares with an aggregate price of $2.6 million and $8.0 million , respectively. Notes Receivable We entered into notes receivable agreements with certain of our current and former executives and employees in connection with the exercise of their stock options. The outstanding principal amount and related accrued interest on the notes receivable are presented as contra-equity until the notes are settled. During the nine months ended April 30, 2018 and 2017 , we did not issue any notes receivable. As of April 30, 2018 and July 31, 2017 , the carrying amount of the outstanding notes receivable, inclusive of accrued interest, was $2.0 million and $7.9 million , respectively. During the nine months ended April 30, 2018 , we repurchased a total of 548,611 unvested shares of common stock from certain employees upon termination of their employment services. The total repurchase price was $3.3 million, or $ 6.03 per share, of which $3.1 million was paid in cash and $0.2 million was settled through a cancellation of the related note receivable. During the nine months ended April 30, 2018 , certain borrowers fully repaid their loans totaling $5.7 million , including accrued interest of $0.4 million . Stock-based Compensation Expense Prior to fiscal 2018, we recognized stock-based compensation expense, net of estimated forfeitures. Beginning with our first quarter of fiscal 2018, upon adoption of ASU 2016-09, we elected to account for forfeitures of awards as incurred instead of estimating the number of awards expected to be forfeited. The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 (in thousands) Cost of revenue $ 199 $ 106 $ 434 $ 245 Sales and marketing 1,493 762 3,263 1,998 Research and development 960 306 1,852 5,231 General and administrative 657 412 1,557 862 Total stock-based compensation expense $ 3,309 $ 1,586 $ 7,106 $ 8,336 As of April 30, 2018 , the unrecognized stock-based compensation cost related to unvested stock options totaled $31.2 million, which is expected to be recognized over a weighted-average period of 3.0 years. As of April 30, 2018 , total unrecognized stock-based compensation cost related to the ESPP was $10.0 million, which will be amortized over a weighted-average period of 2.1 years.

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Stockholders	9 Months Ended
	Apr. 30, 2018
Earnings Per Share [Abstract]
Net Loss Per Share Attributable to Common Stockholders	Net Loss Per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 (in thousands) Net loss $ (8,771 ) $ (7,562 ) $ (26,684 ) $ (22,191 ) Accretion of Series C and D redeemable convertible preferred stock (1,223 ) (2,355 ) (6,332 ) (7,088 ) Net loss attributable to common stockholders $ (9,994 ) $ (9,917 ) $ (33,016 ) $ (29,279 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 73,818 29,583 45,047 28,875 Net loss per share attributable to common stockholders, basic and diluted $ (0.14 ) $ (0.34 ) $ (0.73 ) $ (1.01 ) Since we have reported net losses for all periods presented, we have excluded all potentially dilutive securities from the calculation of the diluted net loss per share attributable to common stockholders as their effect is antidilutive and accordingly, basic and diluted net loss per share attributable to common stockholders is the same for all periods presented. The following table summarizes the outstanding potentially dilutive securities that were excluded from the computation of diluted net loss per share attributable to common stockholders because the impact of including them would have been antidilutive: April 30, 2018 April 30, 2017 (in thousands) Convertible preferred stock — 72,501 Stock options 16,935 14,643 Shares subject to repurchase from early exercised stock options 773 1,311 Shares committed under the ESPP 2,085 — Total 19,793 88,455

Income Taxes

Income Taxes	9 Months Ended
	Apr. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, we update our estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, we make a cumulative adjustment in such period. Our quarterly tax provision, and estimate of our annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how we do business, and tax law developments. Our estimated effective tax rate for the year differs from the U.S. statutory rate of 26.9% primarily due to the benefit of a portion of our earnings being taxed at rates lower than the U.S. statutory rate. We recorded a provision for income taxes of $0.4 million and $0.2 million for the three months ended April 30, 2018 and 2017 , respectively, and $1.0 million and $0.6 million for the nine months ended April 30, 2018 and 2017 , respectively. We are subject to income tax in the U.S. as well as other tax jurisdictions in which we conduct business. Earnings from our non-U.S. operations are subject to income taxes in the countries in which we operate. Our provision for income taxes consists primarily of income taxes and withholding taxes in foreign jurisdictions in which we conduct business. Our U.S. operations have been in a loss position and we maintain a full valuation allowance against our U.S. deferred tax assets. While we believe our current valuation allowance is sufficient, we assess the need for an adjustment to the valuation allowance on a quarterly basis. The assessment is based on our estimates of future sources of taxable income for the jurisdictions in which we operate and the periods over which our deferred tax assets will be realizable. In the event we determine that we will be able to realize all or part of our net deferred tax assets in the future, the valuation allowance will be reversed in the period in which we make such determination. The release of a valuation allowance against deferred tax assets may cause greater volatility in the effective tax rate in the periods in which it is reversed. As a result of the adoption of ASU 2016-09 on August 1, 2017, as further discussed in Note 1 to the condensed consolidated financial statements, we recognized a total U.S. federal and state deferred tax asset of $0.9 million for such previously unrecognized excess tax benefits which is offset by our U.S. federal and state valuation allowance. Under ASU 2016-09, the excess tax benefits and deficiencies are recognized in the period in which they occur. In the three and nine months ended April 30, 2018 , we recognized an immaterial amount of net excess tax benefit. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted. The Tax Act contains several key tax provisions that affect us, including, but not limited to, reducing the U.S. federal corporate tax rate from 34% to 21% for tax years beginning after December 31, 2017, imposing a one-time repatriation tax on deemed repatriated earnings and changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. As a fiscal year-end taxpayer, certain provisions of the Tax Act began to impact us during the three months ended January 31, 2018, while other provisions will impact us beginning in fiscal 2019. We have not completed our accounting assessment for the effects of the Tax Act; however, based on our initial assessment, we have determined that the Tax Act did not have a material effect on our condensed consolidated financial statements for the nine months ended April 30, 2018 . We currently maintain a full valuation allowance recorded against our U.S. federal deferred tax assets and we anticipate incurring a loss in fiscal 2018. As such, the remeasurement of the deferred tax assets and related valuation allowance is not expected to have a material impact to our financial statements in fiscal 2018, other than disclosures in our year-end financial statements.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Apr. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In November 2016 , we recorded $4.4 million of stock-based compensation expense within research and development expense in the condensed consolidated statements of operations associated with a one-time secondary stock purchase transaction which was executed among certain of our employees and certain of our affiliated stockholders, including entities controlled by Jay Chaudhry, our president, chief executive officer and chairman of our board of directors, and Lane Bess, a member of our board of directors. We assessed the impact of this transaction as holders of economic interest in our company acquired shares from our employees at a price in excess of fair value of such shares. Accordingly, we recognized such excess value as stock-based compensation expense. We have entered into notes receivable agreements with certain of our current and former executives and employees in connection with the exercise of their stock options. Refer to Note 7 to our condensed consolidated financial statements for further information.

Significant Customers and Geogr

Significant Customers and Geographic Information	9 Months Ended
	Apr. 30, 2018
Risks and Uncertainties [Abstract]
Significant Customers and Geographic Information	Significant Customers and Geographic Information Refer to Note 1 to our condensed consolidated financial statements for revenue by geography. The following table summarizes 10% or more of the total balance of accounts receivable, net: April 30, 2018 July 31, 2017 Channel partner A 10% 17% Channel partner B 16% 10% Channel partner C * 15% Channel partner D 10% * Channel partner E 14% * * Represents less than 10%. No single customer accounted for 10% or more of revenue for the three and nine months ended April 30, 2018 and 2017 . Our long-lived assets are composed of property and equipment, net, and are summarized by geographic area as follows: April 30, 2018 July 31, 2017 (in thousands) United States $ 16,644 $ 9,372 Rest of the world 3,797 3,767 Total property and equipment, net $ 20,441 $ 13,139

Business and Summary of Signi18

Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Apr. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and applicable regulations of the Security and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of Zscaler, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended July 31, 2017 , included in our Prospectus.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Such estimates include, but are not limited to, the determination of revenue recognition, deferred revenue, deferred contract acquisition costs, the period of benefit generated from our deferred contract acquisition costs, allowance for doubtful accounts, valuation of common stock options and stock-based awards, useful lives of property and equipment, loss contingencies related to litigation and valuation of deferred tax assets. Management determines these estimates and assumptions on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ significantly from these estimates, and such differences may be material to the condensed consolidated financial statements.
Revenue Recognition	Revenue Recognition We have adopted Accounting Standards Codification ("ASC") Topic 606, Revenue From Contracts With Customers ("ASC 606"), effective as of August 1, 2017, using the full retrospective transition method. Under this method, we are presenting the condensed consolidated financial statements for the fiscal periods presented, as if ASC 606 had been effective for those periods. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these services. To achieve the core principle of this standard, we apply the following five steps: 1) Identify the contract with a customer We consider the terms and conditions of the contracts and our customary business practices in identifying our contracts under ASC 606. We determine we have a contract with a customer when the contract is approved, we can identify each party’s rights regarding the services to be transferred, we can identify the payment terms for the services, we have determined the customer has the ability and intent to pay and the contract has commercial substance. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. Our performance obligations consist of (i) our subscription and support services and (ii) professional and other services. 3) Determine the transaction price The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of our contracts contain a significant financing component. 4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price ("SSP"). 5) Recognize revenue when or as we satisfy a performance obligation Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised service to a customer. Revenue is recognized when control of the services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those services. We generate all our revenue from contracts with customer. Subscription and Support Revenue We generate revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. Arrangements with customers do not provide the customer with the right to take possession of our software operating our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. A time-elapsed output method is used to measure progress because we transfer control evenly over the contractual period. Accordingly, the fixed consideration related to subscription and support revenue is generally recognized on a straight-line basis over the contract term beginning on the date that our service is made available to the customer. The typical subscription and support term is one to three years. Most of our contracts are non-cancelable over the contractual term. Customers typically have the right to terminate their contracts for cause if we fail to perform in accordance with the contractual terms. Some of our customers have the option to purchase additional subscription and support services at a stated price. These options generally do not provide a material right as they are priced at our SSP. Professional and Other Services Revenue Professional and other services revenue consists of fees associated with providing deployment advisory services that educate and assist our customers on the best use of our solutions, as well as advise customers on best practices as they deploy our solution. These services are distinct from subscription and support services. Professional services do not result in significant customization of the subscription service. Revenue from professional services provided on a time and materials basis is recognized as the services are performed. Total professional and other services revenue has historically not been material. Contracts with Multiple Performance Obligations Most of our contracts with customers contain multiple promised services consisting of: (i) our subscription and support services and (ii) professional and other services that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP based on our overall pricing objectives, taking into consideration the type of subscription and support services and professional and other services, the geographical region of the customer and the number of users. Variable Consideration Revenue from sales is recorded at the net sales price, which is the transaction price, and includes estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved. If our services do not meet certain service level commitments, our customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. We have historically not experienced any significant incidents affecting the defined levels of reliability and performance as required by our subscription contracts. Accordingly, any estimated refunds related to these agreements in the condensed consolidated financial statements is not material during the periods presented. We provide rebates and other credits within our contracts with certain customers, which are estimated based on the most likely amounts expected to be earned or claimed on the related sales transaction. Overall, the transaction price is reduced to reflect our estimate of the amount of consideration to which we are entitled based on the terms of the contract. Estimated rebates and other credits were not material during the periods presented. Disaggregation of Revenue Subscription and support revenue is recognized over time and accounted for approximately 99% and 98% of our revenue for the three months ended April 30, 2018 and 2017 , respectively, and approximately 99% of our revenue for the nine months ended April 30, 2018 and 2017 . The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except percentage data) United States $ 21,722 44 % $ 15,369 47 % $ 61,707 46 % $ 40,824 46 % Europe, Middle East and Africa 22,439 46 % 14,880 45 % 59,593 44 % 40,600 45 % Asia Pacific 3,733 8 % 2,505 7 % 10,287 8 % 6,881 8 % Other 1,269 2 % 210 1 % 2,413 2 % 868 1 % Total $ 49,163 100 % $ 32,964 100 % $ 134,000 100 % $ 89,173 100 % The following table summarizes the revenue from contracts by type of customer: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except percentage data) Channel partners $ 45,496 93 % $ 29,282 89 % $ 122,925 92 % $ 78,205 88 % Direct customers 3,667 7 % 3,682 11 % 11,075 8 % 10,968 12 % Total $ 49,163 100 % $ 32,964 100 % $ 134,000 100 % $ 89,173 100 % Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the three months ended April 30, 2018 and 2017 , we recognized revenue of $21.0 million and $13.5 million , respectively, that was included in the corresponding contract liability balance at the beginning of these periods. For the nine months ended April 30, 2018 and 2017 , we recognized revenue of $75.0 million and $51.1 million , respectively, that was included in the corresponding contract liability balance at the beginning of these periods. We receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days. Contract assets include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced and such amounts have historically not been material. Remaining Performance Obligations The typical subscription and support term is one to three years. Most of our subscription and support contracts are non-cancelable over the contractual term. However, customers typically have the right to terminate their contracts for cause, if we fail to perform. As of April 30, 2018 , the aggregate amount of the transaction price allocated to remaining performance obligations was $304.7 million . We expect to recognize 54% of the transaction price over the next 12 months and 98% of the transaction price over the next three years, with the remainder recognized thereafter. Costs to Obtain and Fulfill a Contract We capitalize sales commission and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of channel partner and direct customer contracts. These costs are recorded as deferred contract acquisition costs in the condensed consolidated balance sheets. We determine whether costs should be deferred based on our sales compensation plans, if the commissions are in fact incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit of five years while commissions paid for renewal contracts are amortized over the contractual term of the renewals. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the condensed consolidated statements of operations. We determine the period of benefit for commissions paid for the acquisition of the initial contract by taking into consideration the expected subscription term and expected renewals of our customer contracts, the duration of our relationships with our customers, customer retention data, our technology development lifecycle and other factors. We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. We did not recognize any impairment losses of deferred contract acquisition costs during the periods presented. The following table summarizes the activity of the deferred contract acquisition costs: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 (in thousands) Beginning balance $ 39,943 $ 24,676 $ 34,662 $ 21,137 Capitalization of contract acquisition costs 9,987 4,295 21,200 11,660 Amortization of deferred contract acquisition costs (3,422 ) (2,166 ) (9,354 ) (5,992 ) Ending balance $ 46,508 $ 26,805 $ 46,508 $ 26,805 Deferred contract acquisition costs, current $ 13,753 $ 8,560 $ 13,753 $ 8,560 Deferred contract acquisition costs, noncurrent 32,755 18,245 32,755 18,245 Total deferred contract acquisition costs $ 46,508 $ 26,805 $ 46,508 $ 26,805
Deferred Offering Costs	Deferred Offering Costs Deferred offering costs are capitalized and consist of fees and expenses incurred in connection with the anticipated sale of our common stock in an IPO, consisting of legal, accounting, printing and other IPO-related costs.
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense for common stock options granted to employees and non-employees is recognized based on the fair value of the awards granted, determined using the Black-Scholes option pricing model and a single option award approach. Stock‐based compensation expense is recognized as expense over the requisite service period, generally four years. Unvested options issued to non-employees are remeasured at fair market value at the end of each reporting period. Stock-based compensation expense related to purchase rights issued under the 2018 Employee Stock Purchase Plan ("ESPP") is based on the Black-Scholes option pricing model fair value of the estimated number of awards as of the beginning of the offering period. Stock-based compensation expense is recognized following the straight-line attribution method over the offering period. Prior to the IPO, the fair value of our common stock for financial reporting purposes was determined considering numerous objective and subjective factors and required judgment to determine the fair value of common stock as of each grant date. Subsequent to the IPO, we determine the fair value using the market closing price of our common stock on the date of grant. Prior to fiscal 2018, we recognized stock-based compensation expense, net of estimated forfeitures. We used historical data to estimate pre-vesting forfeitures and recorded stock-based compensation expense only for those grants that were expected to vest. On August 1, 2017, we adopted Accounting Standard Update ("ASU") No. 2016-09, Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which simplifies several aspects of the accounting for employee share-based payment transactions. In accordance with ASU 2016-09, we have elected to account for forfeitures as they occur instead of estimating the number of awards expected to be forfeited and adjusting the estimate when it is no longer probable that the employee will fulfill the service condition. We adopted this provision in our first quarter of fiscal 2018 and resulted in a cumulative-effect adjustment to accumulated deficit of $0.4 million , net of tax, as of the date of adoption. Additionally, upon adoption of ASU 2016-09, on a modified retrospective basis, the previously unrecognized excess tax benefits of $0.9 million as of July 31, 2017 were recorded as an increase of U.S. federal and state deferred tax assets, which was substantially offset by our valuation allowance. Prospectively, all excess tax benefits and deficiencies will be recognized in the income statement as a component of our income tax expense or benefit. Further, we will present excess tax benefits as an operating activity in the consolidated statements of cash flows on a prospective basis.
Net Loss Per Share Attributable to Common Stockholders	Net Loss Per Share Attributable to Common Stockholders Prior to the IPO, basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. We consider all series of our convertible preferred stock to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the holders of our convertible preferred stock do not have a contractual obligation to share in our losses. Under the two-class method, net income is attributed to common stockholders and participating securities based on their participation rights. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Net loss attributable to common stockholders is calculated by adjusting the net loss for the accretion of redeemable convertible preferred stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for all potentially dilutive common stock equivalents outstanding during the period. Potentially dilutive securities consist of convertible preferred stock, stock options, shares subject to repurchase from early exercised stock options and estimated shares to be issued under the ESPP. Upon closing of the IPO, all shares of convertible preferred stock then outstanding were automatically converted into an equivalent number of shares of common stock on a one -to-one basis and their carrying amount reclassified into stockholders’ equity (deficit).
Recently Adopted Accounting Pronouncements; Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09. This ASU simplifies various aspects related to how share-based payments are accounted for and presented in the financial statements, including income taxes, forfeitures, and statutory tax withholding requirements. For public business entities, it is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted. We adopted ASU 2016-09 as of August 1, 2017, resulting in the impact discussed above. The adoption of this ASU did not have a material impact to our condensed consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception . This ASU reduces the complexity associated with an issuer’s accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the FASB determined that a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. For public business entities, it is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We adopted this standard at the beginning of our third quarter of fiscal 2018 (February 1, 2018), using the retrospective transition method, resulting in no impact to our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). The main difference between previous guidance and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting guidance. ASU 2016-02 retains the distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the previous leases guidance. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. For public business entities, it is effective for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities to require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. For public business entities, it is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) . This ASU provides guidance to decrease the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. For public business entities, it is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) , which updates the classification of restricted cash in the statement of cash flows. For public business entities, it is effective for fiscal years beginning after December 15, 2017, and interim periods therein. Early adoption is permitted. We are currently evaluating the potential impact of this ASU on our consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which provides clarity in applying the guidance in Topic 718 around modifications of share-based payment awards. For public business entities, it is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We will adopt this ASU on August 1, 2018, and the adoption is not expected to have a material impact on our consolidated financial statements.

Business and Summary of Signi19

Business and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Apr. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Disaggregation of Revenue	The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except percentage data) United States $ 21,722 44 % $ 15,369 47 % $ 61,707 46 % $ 40,824 46 % Europe, Middle East and Africa 22,439 46 % 14,880 45 % 59,593 44 % 40,600 45 % Asia Pacific 3,733 8 % 2,505 7 % 10,287 8 % 6,881 8 % Other 1,269 2 % 210 1 % 2,413 2 % 868 1 % Total $ 49,163 100 % $ 32,964 100 % $ 134,000 100 % $ 89,173 100 % The following table summarizes the revenue from contracts by type of customer: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except percentage data) Channel partners $ 45,496 93 % $ 29,282 89 % $ 122,925 92 % $ 78,205 88 % Direct customers 3,667 7 % 3,682 11 % 11,075 8 % 10,968 12 % Total $ 49,163 100 % $ 32,964 100 % $ 134,000 100 % $ 89,173 100 %
Capitalized Contract Cost	The following table summarizes the activity of the deferred contract acquisition costs: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 (in thousands) Beginning balance $ 39,943 $ 24,676 $ 34,662 $ 21,137 Capitalization of contract acquisition costs 9,987 4,295 21,200 11,660 Amortization of deferred contract acquisition costs (3,422 ) (2,166 ) (9,354 ) (5,992 ) Ending balance $ 46,508 $ 26,805 $ 46,508 $ 26,805 Deferred contract acquisition costs, current $ 13,753 $ 8,560 $ 13,753 $ 8,560 Deferred contract acquisition costs, noncurrent 32,755 18,245 32,755 18,245 Total deferred contract acquisition costs $ 46,508 $ 26,805 $ 46,508 $ 26,805

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Apr. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets Measured on Recurring Basis	The following table summarizes assets that are measured at fair value on a recurring basis as of April 30, 2018 : Level I Level II Level III Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Assets: Money market funds $ 267,178 $ 267,178 $ — $ — The following table summarizes assets that are measured at fair value on a recurring basis as of July 31, 2017 : Level I Level II Level III Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Assets: Money market funds $ 72,441 $ 72,441 $ — $ —

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Apr. 30, 2018
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	The following table summarizes our property and equipment: April 30, 2018 July 31, 2017 (in thousands) Hosting equipment $ 30,591 $ 20,241 Computers and equipment 2,153 1,539 Purchased software 1,299 1,257 Capitalized internal-use software 5,814 4,390 Furniture and fixtures 1,479 1,035 Leasehold improvements 2,125 1,981 Property and equipment, gross 43,461 30,443 Less: Accumulated depreciation and amortization (23,020 ) (17,304 ) Total property and equipment, net $ 20,441 $ 13,139

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Apr. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	The following table summarizes the future minimum payments under our non-cancelable operating leases as of April 30, 2018 : Operating (in thousands) Year ending July 31, 2018 (remaining three months) $ 842 2019 2,875 2020 2,299 2021 1,531 Total $ 7,547
Schedule of Future Minimum Payments for Other Commitments	The following table summarizes the future minimum payments under our non-cancelable data center contracts as of April 30, 2018 : Data Center (in thousands) Year ending July 31, 2018 (remaining three months) $ 1,421 2019 4,591 2020 2,985 2021 858 2022 134 Total $ 9,989

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Apr. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Options	The following table summarizes the stock option activity under the Plans: Shares Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share data) Balance as of July 31, 2017 739 15,058 $4.50 5.6 $ 56,717 Increase in 2007 Plan authorized shares 3,333 — Increase in 2018 Plan authorized shares 12,700 — Stock options granted (5,011 ) 5,011 $9.96 Stock options exercised — (1,708 ) $3.05 $ 11,042 Repurchases of unvested shares 549 — $6.03 Stock options canceled, forfeited, expired 1,426 (1,426 ) $5.70 Balance as of April 30, 2018 13,736 16,935 $6.16 5.5 $ 401,868 Exercisable as of July 31, 2017 5,907 $3.67 4.9 $ 27,135 Exercisable as of April 30, 2018 6,020 $4.02 4.4 $ 155,750
Schedule of Weighted-Average Assumptions	The fair value of the purchase right for the ESPP is estimated on the date of grant using the Black-Scholes model with the following assumptions: Nine Months Ended April 30, 2018 Expected term (in years) 0.8 - 2.3 Expected stock price volatility 30.7% - 36.4% Risk-free interest rate 2.0% - 2.3% Dividend yield 0.0%
Schedule of Allocation of Stock-based Compensation Expense	The following table summarizes the components of stock-based compensation expense recognized in the condensed consolidated statements of operations: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 (in thousands) Cost of revenue $ 199 $ 106 $ 434 $ 245 Sales and marketing 1,493 762 3,263 1,998 Research and development 960 306 1,852 5,231 General and administrative 657 412 1,557 862 Total stock-based compensation expense $ 3,309 $ 1,586 $ 7,106 $ 8,336

Net Loss Per Share Attributab24

Net Loss Per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Apr. 30, 2018
Earnings Per Share [Abstract]
Schedule of Net Loss Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended April 30, Nine Months Ended April 30, 2018 2017 2018 2017 (in thousands) Net loss $ (8,771 ) $ (7,562 ) $ (26,684 ) $ (22,191 ) Accretion of Series C and D redeemable convertible preferred stock (1,223 ) (2,355 ) (6,332 ) (7,088 ) Net loss attributable to common stockholders $ (9,994 ) $ (9,917 ) $ (33,016 ) $ (29,279 ) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 73,818 29,583 45,047 28,875 Net loss per share attributable to common stockholders, basic and diluted $ (0.14 ) $ (0.34 ) $ (0.73 ) $ (1.01 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table summarizes the outstanding potentially dilutive securities that were excluded from the computation of diluted net loss per share attributable to common stockholders because the impact of including them would have been antidilutive: April 30, 2018 April 30, 2017 (in thousands) Convertible preferred stock — 72,501 Stock options 16,935 14,643 Shares subject to repurchase from early exercised stock options 773 1,311 Shares committed under the ESPP 2,085 — Total 19,793 88,455

Significant Customers and Geo25

Significant Customers and Geographic Information (Tables)	9 Months Ended
	Apr. 30, 2018
Risks and Uncertainties [Abstract]
Schedule of Accounts Receivable	The following table summarizes 10% or more of the total balance of accounts receivable, net: April 30, 2018 July 31, 2017 Channel partner A 10% 17% Channel partner B 16% 10% Channel partner C * 15% Channel partner D 10% * Channel partner E 14% * * Represents less than 10%.
Schedule of Long-Lived Assets	Our long-lived assets are composed of property and equipment, net, and are summarized by geographic area as follows: April 30, 2018 July 31, 2017 (in thousands) United States $ 16,644 $ 9,372 Rest of the world 3,797 3,767 Total property and equipment, net $ 20,441 $ 13,139

Business and Summary of Signi26

Business and Summary of Significant Accounting Policies - Narrative (Details)	Apr. 01, 2018	Mar. 31, 2018USD ($)$ / sharesshares	Mar. 31, 2018USD ($)$ / sharesshares	Apr. 30, 2018USD ($)shares	Oct. 31, 2017USD ($)	Apr. 30, 2017USD ($)	Apr. 30, 2018USD ($)shares	Apr. 30, 2017USD ($)	Jul. 31, 2017USD ($)shares
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reverse stock split, ratio			0.6667
Sale of stock, number of shares issued in transaction (in shares) | shares			13,800,000
Sale of stock, price per share (in dollars per share) | $ / shares		$ 16	$ 16
Sale of stock, net proceeds			$ 205,300,000
Payments of costs related to initial public offering			$ (15,500,000)				$ (3,566,000)	$ 0
Redeemable convertible preferred stock, shares outstanding (in shares) | shares				0			0		0
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | shares		72,500,750
Conversion ratio	1		1
Gross revenues							$ 1,070,000,000
Non-convertible debt issued				$ 1,000,000,000			1,000,000,000
Value of common stock				700,000,000			700,000,000
Contract with customer, liability, revenue recognized				21,000,000		$ 13,500,000	$ 75,000,000	$ 51,100,000
Contracts with customers, payment terms							30 days
Revenue, remaining performance obligation				$ 304,700,000			$ 304,700,000
Capitalized contract cost, amortization period				5 years
Offering costs		$ 5,500,000					5,500,000		$ 1,200,000
Capitalized issuance costs									$ 5,000,000
Cumulative effect of new accounting principle				$ 0			$ 0
Share-based compensation, excess tax benefit, amount					$ 900,000
Redeemable convertible preferred stock, shares issued (in shares) | shares				0			0		0
Subscription and Support | Transferred over Time | Sales Revenue, Net | Product Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk percentage				99.00%		98.00%	99.00%	99.00%
Accumulated Deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle				$ 438,000			$ 438,000
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract with customer, term of contract							1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract with customer, term of contract							3 years
ASU 2016-09 | Accumulated Deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle					$ 400,000

Business and Summary of Signi27

Business and Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 49,163	$ 32,964	$ 134,000	$ 89,173
Channel partners
Disaggregation of Revenue [Line Items]
Revenue	45,496	29,282	122,925	78,205
Direct customers
Disaggregation of Revenue [Line Items]
Revenue	$ 3,667	$ 3,682	$ 11,075	$ 10,968
Geographic Concentration Risk | Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	100.00%	100.00%	100.00%	100.00%
Customer Concentration Risk | Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	100.00%	100.00%	100.00%	100.00%
Customer Concentration Risk | Sales Revenue, Net | Channel partners
Disaggregation of Revenue [Line Items]
Concentration risk percentage	93.00%	89.00%	92.00%	88.00%
Customer Concentration Risk | Sales Revenue, Net | Direct customers
Disaggregation of Revenue [Line Items]
Concentration risk percentage	7.00%	11.00%	8.00%	12.00%
United States
Disaggregation of Revenue [Line Items]
Revenue	$ 21,722	$ 15,369	$ 61,707	$ 40,824
United States | Geographic Concentration Risk | Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	44.00%	47.00%	46.00%	46.00%
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenue	$ 22,439	$ 14,880	$ 59,593	$ 40,600
Europe, Middle East and Africa | Geographic Concentration Risk | Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	46.00%	45.00%	44.00%	45.00%
Asia Pacific
Disaggregation of Revenue [Line Items]
Revenue	$ 3,733	$ 2,505	$ 10,287	$ 6,881
Asia Pacific | Geographic Concentration Risk | Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	8.00%	7.00%	8.00%	8.00%
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 1,269	$ 210	$ 2,413	$ 868
Other | Geographic Concentration Risk | Sales Revenue, Net
Disaggregation of Revenue [Line Items]
Concentration risk percentage	2.00%	1.00%	2.00%	1.00%

Business and Summary of Signi28

Business and Summary of Significant Accounting Policies - Summary of Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Jul. 31, 2017	Apr. 30, 2017
Changes in Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 39,943	$ 24,676	$ 34,662	$ 21,137
Capitalization of contract acquisition costs	9,987	4,295	21,200	11,660
Amortization of deferred contract acquisition costs	(3,422)	(2,166)	(9,354)	(5,992)
Ending balance	46,508	26,805	46,508	26,805
Deferred contract acquisition costs, current					$ 13,753	$ 10,469	$ 8,560
Deferred contract acquisition costs, noncurrent					32,755	24,193	18,245
Total deferred contract acquisition costs	$ 39,943	$ 24,676	$ 34,662	$ 21,137	$ 46,508	$ 34,662	$ 26,805

Business and Summary of Signi29

Business and Summary of Significant Accounting Policies - Remaining Performance Obligation (Details)	3 Months Ended
	Apr. 30, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	54.00%
Recognized transaction price period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	98.00%
Recognized transaction price period	3 years

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Money market funds - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Assets:
Money market funds	$ 267,178	$ 72,441
Level I
Assets:
Money market funds	267,178	72,441
Level II
Assets:
Money market funds	0	0
Level III
Assets:
Money market funds	$ 0	$ 0

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 43,461	$ 30,443
Less: Accumulated depreciation and amortization	(23,020)	(17,304)
Total property and equipment, net	20,441	13,139
Hosting equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	30,591	20,241
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,153	1,539
Purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,299	1,257
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,814	4,390
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,479	1,035
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,125	$ 1,981

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 1,900	$ 1,700
Depreciation and amortization expense			$ 5,842	$ 5,007

Commitments and Contingencies -

Commitments and Contingencies - Summary of Future Minimum Payments Under Operating Leases (Details) $ in Thousands	Apr. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2018 (remaining three months)	$ 842
2,019	2,875
2,020	2,299
2,021	1,531
Total	$ 7,547

Commitments and Contingencies34

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017	Jul. 31, 2017
Loss Contingencies [Line Items]
Rent expense	$ 0.7	$ 0.4	$ 1.8	$ 1.2
Bandwidth and colocation costs	2.6	$ 1.6	6.9	$ 4.7
Purchase obligation	2.6		2.6		$ 2.2
Finjan Litigation
Loss Contingencies [Line Items]
Accrued liability for potential lawsuit loss	$ 3.2		3.2
Accrued liability for potential lawsuit loss, current			$ 0.7		$ 2.5

Commitments and Contingencies35

Commitments and Contingencies - Future Minimum Payments Due Under Data Center Contracts (Details) $ in Thousands	Apr. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2018 (remaining three months)	$ 1,421
2,019	4,591
2,020	2,985
2,021	858
2,022	134
Total	$ 9,989

Redeemable Convertible Prefer36

Redeemable Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands	Apr. 01, 2018	Mar. 31, 2018USD ($)$ / sharesshares	Mar. 31, 2018USD ($)$ / sharesshares	Apr. 30, 2018USD ($)$ / sharesshares	Apr. 30, 2017USD ($)	Apr. 30, 2018USD ($)$ / sharesshares	Apr. 30, 2017USD ($)	Jul. 31, 2017USD ($)$ / sharesshares
Temporary Equity Disclosure [Abstract]
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | shares		72,500,750
Redeemable convertible preferred stock, shares outstanding (in shares) | shares				0		0		72,501,000
Conversion ratio	1		1
Temporary equity, carrying value | $		$ 207,300	$ 207,300	$ 0		$ 0		$ 200,977
Temporary equity, accretion value | $			$ 24,700
Accretion of Series C and D redeemable convertible preferred stock | $				$ 1,200	$ 2,400	$ 6,332	$ 7,100
Preferred stock, shares authorized (in shares) | shares		200,000,000	200,000,000	200,000,000		200,000,000		73,100,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001	$ 0.001		$ 0.001		$ 0.001

Common Stock (Details)

Common Stock (Details) $ / shares in Units, $ in Thousands	Mar. 31, 2018USD ($)vote$ / sharesshares	Mar. 31, 2018USD ($)vote$ / sharesshares	Apr. 30, 2018USD ($)$ / sharesshares	Apr. 30, 2017USD ($)	Jul. 31, 2017USD ($)$ / sharesshares
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares		13,800,000
Sale of stock, price per share (in dollars per share) | $ / shares	$ 16	$ 16
Proceeds from initial public offering, net of underwriting discounts and commissions			$ 205,344	$ 0
Sale of stock, net proceeds		$ 205,300
Payments of stock issuance costs		$ 15,500	3,566	$ 0
Capitalized offering costs	$ 5,500		$ 5,500		$ 1,200
Common stock, shares issued (in shares) | shares	1,000,000,000	1,000,000,000	1,000,000,000		130,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.001	$ 0.001	$ 0.001		$ 0.001
Common stock, number of votes per share | vote	1	1
IPO
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in shares) | shares		13,800,000
Sale of stock, price per share (in dollars per share) | $ / shares	$ 16	$ 16
Payments of stock issuance costs		$ 15,500
Capitalized offering costs			$ 5,500

Stock Based Compensation - Narr

Stock Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands	Mar. 31, 2018shares	Mar. 31, 2018shares	Apr. 30, 2018USD ($)shares	Apr. 30, 2017USD ($)	Apr. 30, 2018USD ($)period$ / sharesshares	Apr. 30, 2017USD ($)$ / shares	Jul. 31, 2017USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares) | shares			16,935		16,935		15,058
Share-based compensation expense			$ 3,309	$ 1,586	$ 7,106	$ 8,336
Issuance of common stock related to early exercised stock options					0
Outstanding notes receivable, carrying amount			243,192		$ 243,192		$ (151,142)
Repurchases of unvested shares (in shares) | shares					549
Repurchase price of stock					$ 3,300
Repurchases of unvested shares (in dollars per share) | $ / shares					$ 6.03
Stock repurchased, cash paid					$ 3,100
Stock repurchased, decrease in notes receivable					200
Repayment of loans					5,700
Accrued interest			$ 400		$ 400
2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares) | shares			16,935,138		16,935,138
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					4 years
Weighted average grant date fair value (in dollars per share) | $ / shares					$ 3.75	$ 2.05
Unrecognized compensation cost, stock options			$ 31,200		$ 31,200
Unrecognized compensation cost, weighted-average					3 years
Stock options | 2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration term					10 years
Stock options | 2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration term					7 years
Employee Stock | 2018 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) | shares	2,200,000	2,200,000
Percentage of outstanding common stock	1.00%
Purchase price of common stock, percent					85.00%
Shares purchased (in shares) | shares					0
Duration of offering period					24 months
Number of purchases periods | period					4
Duration of purchase periods					6 months
Employee subscription rate, maximum					15.00%
Maximum number of shares per employee (in shares) | shares					3,000
Share-based compensation expense			400		$ 400
Unrecognized compensation cost, stock options			10,000		$ 10,000
Unrecognized compensation cost, weighted-average					2 years 1 month 6 days
One year anniversary | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage					25.00%
Minimum | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent					100.00%
Notes Receivable From Stockholders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Notes receivable, related parties			(2,000)		$ (2,000)
Outstanding notes receivable, carrying amount			(2,039)		$ (2,039)		(7,878)
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock related to early exercised stock options (in shares) | shares					180,000
Outstanding notes receivable, carrying amount			$ 119		$ 119		$ 18
Repurchases of unvested shares (in shares) | shares					548,611
Common Stock | 2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) | shares	12,700,000	12,700,000
Percentage of outstanding common stock		5.00%
Common Stock | 2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock related to early exercised stock options (in shares) | shares					179,861
Issuance of common stock related to early exercised stock options					$ 900
Common stock subject to repurchase (in shares) | shares			772,782		772,782		1,887,638
Shares subject to repurchase, value			$ 2,600		$ 2,600		$ 8,000

Stock Based Compensation - Sche

Stock Based Compensation - Schedule of Stock Options (Details) - USD ($)	9 Months Ended	12 Months Ended
	Apr. 30, 2018	Jul. 31, 2017
Shares Available For Grant
Beginning balance (in shares)	739
Stock options granted (in shares)	(5,011)
Repurchases of unvested shares (in shares)	549
Stock options canceled, forfeited, expired (in shares)	1,426
Ending balance (in shares)	13,736	739
Outstanding Stock Options
Balance (in shares)	15,058
Stock options granted (in shares)	5,011
Stock options exercised (in shares)	(1,708)
Stock options canceled, forfeited, expired (in shares)	(1,426)
Balance (in shares)	16,935	15,058
Exercisable as of July 31, 2017 (in shares)	5,907
Exercisable as of April 30, 2018 (in shares)	6,020	5,907
Weighted-Average Exercise Price
Beginning balance (in dollars per share)	$ 4.50
Stock options granted (in dollars per share)	9.96
Stock options exercised (in dollars per share)	3.05
Repurchases of unvested shares (in dollars per share)	6.03
Stock options canceled, forfeited, expired (in dollars per share)	5.70
Ending balance (in dollars per share)	6.16	$ 4.50
Exercisable as of July 31, 2017 (in dollars per share)	3.67
Exercisable as of April 30, 2018 (in dollars per share)	$ 4.02	$ 3.67
Additional Disclosures
Options outstanding, weighted average remaining contractual term	5 years 6 months	5 years 7 months 6 days
Exercisable, weighted average remaining contractual term	4 years 4 months 24 days	4 years 10 months 24 days
Options outstanding, aggregate intrinsic value	$ 401,868	$ 56,717
Options exercised, aggregate intrinsic value	11,042
Exercisable, aggregate intrinsic value	$ 155,750	$ 27,135
2007 Plan
Shares Available For Grant
Increase in authorized shares (in shares)	3,333
Outstanding Stock Options
Balance (in shares)	16,935,138
2018 Plan
Shares Available For Grant
Increase in authorized shares (in shares)	12,700

Stock Based Compensation - Valu

Stock Based Compensation - Valuation Assumptions (Details) - 2018 Employee Stock Purchase Plan	9 Months Ended
	Apr. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected stock price volatility, minimum	30.70%
Expected stock price volatility, maximum	36.40%
Risk-free interest rate, minimum	2.00%
Risk-free interest rate, maximum	2.30%
Dividend rate	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	9 months 18 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years 3 months 19 days

Stock Based Compensation - Stoc

Stock Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 3,309	$ 1,586	$ 7,106	$ 8,336
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	199	106	434	245
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,493	762	3,263	1,998
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	960	306	1,852	5,231
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 657	$ 412	$ 1,557	$ 862

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Earnings Per Share [Abstract]
Net loss	$ (8,771)	$ (7,562)	$ (26,684)	$ (22,191)
Accretion of Series C and D redeemable convertible preferred stock	(1,223)	(2,355)	(6,332)	(7,088)
Net loss attributable to common stockholders	$ (9,994)	$ (9,917)	$ (33,016)	$ (29,279)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)	73,818,000	29,583,000	45,047,000	28,875,000
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.14)	$ (0.34)	$ (0.73)	$ (1.01)

Net Loss Per Share Attributab43

Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities Excluded from Computation (Details) - shares	9 Months Ended
	Apr. 30, 2018	Apr. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	19,793	88,455
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	72,501
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	16,935	14,643
Shares subject to repurchase from early exercised stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	773	1,311
Shares committed under the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,085	0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Apr. 30, 2018	Oct. 31, 2017	Apr. 30, 2017	Apr. 30, 2018	Apr. 30, 2017
Income Tax Disclosure [Abstract]
Statutory income tax rate				26.90%
Provision for income taxes	$ 357		$ 184	$ 1,003	$ 551
Share-based compensation, excess tax benefit, amount		$ 900

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	1 Months Ended
	Nov. 30, 2016USD ($)
Related Party Transactions [Abstract]
Stock-based compensation expense	$ 4.4

Significant Customers and Geo46

Significant Customers and Geographic Information - Schedule of Accounts Receivable (Details) - Customer Concentration Risk - Accounts Receivable	9 Months Ended		12 Months Ended
	Apr. 30, 2018		Jul. 31, 2017
Channel partner A
Concentration Risk [Line Items]
Accounts receivable, net	10.00%		17.00%
Channel partner B
Concentration Risk [Line Items]
Accounts receivable, net	16.00%		10.00%
Channel partner C
Concentration Risk [Line Items]
Accounts receivable, net		[1]	15.00%
Channel partner D
Concentration Risk [Line Items]
Accounts receivable, net	10.00%			[1]
Channel partner E
Concentration Risk [Line Items]
Accounts receivable, net	14.00%			[1]
[1]	less than 10%

Significant Customers and Geo47

Significant Customers and Geographic Information - Schedule of Long-lived Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2018	Jul. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 20,441	$ 13,139
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	16,644	9,372
Rest of the world
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 3,797	$ 3,767