Zscaler (ZS) 10-Q3 Jun 202020 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	9 Months Ended
Cover Page - shares	Apr. 30, 2020	May 29, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2020
Document Transition Report	false
Entity File Number	001-38413
Entity Registrant Name	ZSCALER, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-1173892
Entity Address, Address Line One	120 Holger Way
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	408
Local Phone Number	533-0288
Title of 12(b) Security	Common Stock, $0.001 Par Value
Trading Symbol	ZS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Shares Outstanding		130,518,247
Entity Central Index Key	0001713683
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Current assets:
Cash and cash equivalents	$ 124,592	$ 78,484
Short-term investments	266,722	286,162
Accounts receivable, net	105,583	93,341
Deferred contract acquisition costs	26,316	21,219
Prepaid expenses and other current assets	28,903	16,880
Total current assets	552,116	496,086
Property and equipment, net	63,297	41,046
Operating lease right-of-use assets	35,128
Deferred contract acquisition costs, noncurrent	58,024	48,566
Acquired intangible assets, net	10,146	8,708
Goodwill	13,350	7,479
Other noncurrent assets	3,903	2,277
Total assets	735,964	604,162
Current liabilities:
Accounts payable	9,392	6,208
Accrued expenses and other current liabilities	14,366	12,810
Accrued compensation	34,215	21,544
Deferred revenue	274,726	221,387
Operating lease liabilities	12,939
Total current liabilities	345,638	261,949
Deferred revenue, noncurrent	26,065	29,815
Operating lease liabilities, noncurrent	27,909
Other noncurrent liabilities	1,558	3,840
Total liabilities	401,170	295,604
Commitments and contingencies (Note 9)
Stockholders’ Equity
Common stock; $0.001 par value; 1,000,000 shares authorized as of April 30, 2020 and July 31, 2019; 130,347 and 127,253 shares issued and outstanding as of April 30, 2020 and July 31, 2019, respectively	130	127
Additional paid-in capital	623,859	532,618
Accumulated other comprehensive income	827	268
Accumulated deficit	(290,022)	(224,455)
Total stockholders’ equity	334,794	308,558
Total liabilities and stockholders’ equity	$ 735,964	$ 604,162

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2020	Jul. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, shares issued (in shares)	130,347	127,253
Common stock, shares outstanding (in shares)	130,347	127,253

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Income Statement [Abstract]
Revenue	$ 110,524	$ 79,128	$ 305,382	$ 216,728
Cost of revenue	24,579	14,960	64,375	42,330
Gross profit	85,945	64,168	241,007	174,398
Operating expenses:
Sales and marketing	67,727	45,295	188,759	120,596
Research and development	24,117	16,499	65,094	44,756
General and administrative	14,615	15,911	56,223	36,428
Total operating expenses	106,459	77,705	310,076	201,780
Loss from operations	(20,514)	(13,537)	(69,069)	(27,382)
Interest income	1,528	2,081	5,405	5,595
Other income (expense), net	70	(144)	28	(82)
Loss before income taxes	(18,916)	(11,600)	(63,636)	(21,869)
Provision for income taxes	421	636	1,931	1,510
Net loss	$ (19,337)	$ (12,236)	$ (65,567)	$ (23,379)
Net loss per share, basic and diluted (in dollars per share)	$ (0.15)	$ (0.10)	$ (0.51)	$ (0.19)
Weighted-average shares used in computing net loss per share, basic and diluted (in shares)	129,682	124,672	128,538	122,644

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (19,337)	$ (12,236)	$ (65,567)	$ (23,379)
Other comprehensive income, net of tax:
Unrealized net gains on available-for-sale securities	336	160	559	225
Other comprehensive income	336	160	559	225
Comprehensive loss	$ (19,001)	$ (12,076)	$ (65,008)	$ (23,154)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative effect of accounting change	Common Stock	Additional Paid-In Capital	Additional Paid-In CapitalCumulative effect of accounting change	Notes Receivable From Stockholders	Accumulated Other Comprehensive Income	Accumulated Deficit	Accumulated DeficitCumulative effect of accounting change
Common stock, beginning balance (in shares) at Jul. 31, 2018			119,764,000
Beginning balance at Jul. 31, 2018	$ 240,236	$ 0	$ 119	$ 438,392	$ (300)	$ (2,051)	$ (124)	$ (196,100)	$ 300
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)			5,153,000
Issuance of common stock upon exercise of stock options	23,523		$ 6	23,517
Vesting of restricted stock units (in shares)			16,000
Vesting of restricted stock units	0
Vesting of early exercised common stock options	844			844
Stock-based compensation	34,088			34,088
Unrealized net gains on available-for-sale securities	225						225
Net loss	(23,379)							(23,379)
Issuance of common stock under the employee stock purchase plan (in shares)			627,000
Issuance of common stock in connection with employee stock purchase plan	8,691		$ 1	8,690
Repurchases of unvested common stock (in shares)			(8,000)
Repurchases of unvested common stock	0
Repayments of principal amount on notes receivable from stockholders	1,905					1,905
Accrued interest on notes receivable from stockholders, net of repayments	146					146
Adjustment to initial public offering costs	300			300
Common stock, ending balance (in shares) at Apr. 30, 2019			125,552,000
Ending balance at Apr. 30, 2019	286,579		$ 126	505,531		0	101	(219,179)
Common stock, beginning balance (in shares) at Jan. 31, 2019			123,897,000
Beginning balance at Jan. 31, 2019	277,073		$ 124	483,951			(59)	(206,943)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)			1,642,000
Issuance of common stock upon exercise of stock options	8,030		$ 2	8,028
Vesting of restricted stock units (in shares)			13,000
Vesting of restricted stock units	0
Vesting of early exercised common stock options	277			277
Stock-based compensation	13,275			13,275
Unrealized net gains on available-for-sale securities	160						160
Net loss	(12,236)							(12,236)
Common stock, ending balance (in shares) at Apr. 30, 2019			125,552,000
Ending balance at Apr. 30, 2019	$ 286,579		$ 126	505,531		0	101	(219,179)
Common stock, beginning balance (in shares) at Jul. 31, 2019	127,253		127,253,000
Beginning balance at Jul. 31, 2019	$ 308,558		$ 127	532,618		0	268	(224,455)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	2,102,000		2,102,000
Issuance of common stock upon exercise of stock options	$ 12,554		$ 3	12,551
Vesting of restricted stock units (in shares)			708,000
Vesting of restricted stock units	0
Vesting of early exercised common stock options	393			393
Stock-based compensation	72,963			72,963
Unrealized net gains on available-for-sale securities	559						559
Net loss	(65,567)							(65,567)
Issuance of common stock under the employee stock purchase plan (in shares)			284,000
Issuance of common stock in connection with employee stock purchase plan	$ 5,334			5,334
Common stock, ending balance (in shares) at Apr. 30, 2020	130,347		130,347,000
Ending balance at Apr. 30, 2020	$ 334,794		$ 130	623,859		0	827	(290,022)
Common stock, beginning balance (in shares) at Jan. 31, 2020			129,266,000
Beginning balance at Jan. 31, 2020	319,164		$ 129	589,229			491	(270,685)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)			882,000
Issuance of common stock upon exercise of stock options	5,796		$ 1	5,795
Vesting of restricted stock units (in shares)			199,000
Vesting of restricted stock units	0
Vesting of early exercised common stock options	131			131
Stock-based compensation	28,704			28,704
Unrealized net gains on available-for-sale securities	336						336
Net loss	$ (19,337)							(19,337)
Common stock, ending balance (in shares) at Apr. 30, 2020	130,347		130,347,000
Ending balance at Apr. 30, 2020	$ 334,794		$ 130	$ 623,859		$ 0	$ 827	$ (290,022)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
Cash Flows From Operating Activities
Net loss	$ (65,567)	$ (23,379)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	12,278	7,331
Amortization expense of acquired intangible assets	2,062	405
Amortization of deferred contract acquisition costs	17,673	13,505
Noncash operating lease costs	9,649
Stock-based compensation expense	70,012	34,088
Accretion of purchased discounts, net of amortization of investment premiums	(463)	(1,702)
Deferred income taxes	(555)	0
Impairment of assets	746	0
Other	305	244
Changes in operating assets and liabilities, net of effects of business acquisitions:
Accounts receivable	(12,218)	(9,540)
Deferred contract acquisition costs	(32,228)	(21,700)
Prepaid expenses, other current and noncurrent assets	(13,365)	(3,361)
Accounts payable	1,923	(611)
Accrued expenses, other current and noncurrent liabilities	660	(1,047)
Accrued compensation	12,671	(1,548)
Deferred revenue	49,581	47,519
Operating lease liabilities	(5,482)
Net cash provided by operating activities	47,682	40,204
Cash Flows From Investing Activities
Purchases of property, equipment and other assets	(24,793)	(16,698)
Capitalized internal-use software	(6,296)	(1,713)
Acquired intangible assets	0	(1,480)
Payments for business acquisitions, net of cash acquired	(8,918)	(823)
Purchases of short-term investments	(202,764)	(272,324)
Proceeds from maturities of short-term investments	209,225	139,361
Proceeds from sale of short-term investments	14,084	0
Net cash used in investing activities	(19,462)	(153,677)
Cash Flows From Financing Activities
Payments of offering costs related to initial public offering	0	(1,797)
Proceeds from issuance of common stock upon exercise of stock options	12,554	23,523
Proceeds from issuance of common stock under the employee stock purchase plan	5,334	8,691
Repurchases of unvested common stock	0	(22)
Repayments of notes receivable from stockholders	0	1,905
Net cash provided by financing activities	17,888	32,300
Net increase (decrease) in cash, cash equivalents and restricted cash	46,108	(81,173)
Cash, cash equivalents and restricted cash at beginning of period	78,484	136,147
Cash, cash equivalents and restricted cash at end of period	124,592	54,974
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes, net of tax refunds	1,738	1,500
Noncash activities
Net change in purchased equipment included in accounts payable and accrued expenses	1,446	1,551
Operating lease right-of-use assets obtained in exchange for operating lease obligations, net of terminations	27,205
Vesting of early exercised common stock options	393	844
Net change in deferred offering costs accrued	0	(2,097)
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets:
Total cash, cash equivalents and restricted cash	$ 124,592	$ 54,974

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	9 Months Ended
Business and Summary of Significant Accounting Policies	Apr. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Summary of Significant Accounting Policies	Business and Summary of Significant Accounting Policies 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. 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 Securities and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of the Company 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 and accompanying notes should be read in conjunction with the Company's audited consolidated financial statements and related notes in its Annual Report on Form 10-K for the fiscal year ended July 31, 2019 (the "Fiscal 2019 Form 10-K"), as filed with the SEC on September 18, 2019. JOBS Act Extended Transition Period As a result of the market value of our common stock held by our non-affiliates as of January 31, 2019, we ceased to be an "emerging growth company" ("EGC"), as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), with our transition to a large accelerated filer status as of July 31, 2019. As an EGC, we elected not to avail ourselves of the extended transition periods available for complying with new or revised accounting pronouncements applicable to public companies that are not emerging growth companies. Accordingly, the transition to a large accelerated filer did not have an impact to our consolidated financial statements. Interim Unaudited Condensed Consolidated Financial Statements The accompanying condensed consolidated balance sheet as of July 31, 2019 was derived from the audited financial statements as of that date. The accompanying interim condensed consolidated financial statements, including the consolidated balance sheets as of April 30, 2020, the consolidated statements of operations for the three and nine months ended April 30, 2020 and 2019, the consolidated statements of comprehensive loss for the three and nine months ended April 30, 2020 and 2019, the consolidated statements of stockholders’ equity for the three and nine months ended April 30, 2020 and 2019 and the consolidated statements of cash flows for the nine months ended April 30, 2020 and 2019 are unaudited. The related financial data and the other financial information disclosed in the accompanying notes to these condensed consolidated financial statements are also unaudited. These interim unaudited condensed consolidated financial statements have been prepared on a basis consistent with our annual consolidated financial statements and, in our opinion, include all normal recurring adjustments necessary to state fairly our quarterly results. The results of operations for the three and nine months ended April 30, 2020 are not necessarily indicative of the results to be expected for our fiscal year ending July 31, 2020 or for any other future fiscal year or interim period. 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, valuation of acquired intangible assets, 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, useful lives of acquired intangible assets, loss contingencies related to litigation, valuation of deferred tax assets and the discount rate used for operating leases. Management determines these estimates and assumptions based 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. Due to the COVID-19 pandemic, there is ongoing uncertainty and significant disruption in the global economy and financial markets. We are not aware of any specific event or circumstances that would require an update to our estimates, judgments or assumptions or a revision to the carrying value of our assets or liabilities as of the date of issuance of these financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained . Fiscal Year Our fiscal year ends on July 31. References to fiscal 2020, for example, refer to our fiscal year ending July 31, 2020. Significant Accounting Policies Our significant accounting policies are described in the Fiscal 2019 Form 10-K. 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, 2020 other than for the adoption of new accounting guidance related to leases effective August 1, 2019 further described below. Operating Leases We enter into operating lease arrangements for real estate assets related to office space and co-location assets related to space and racks at data center facilities. We determine if an arrangement contains a lease at its inception by assessing whether there is an identified asset and whether the arrangement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases related balances are included in "operating lease right-of-use assets," "operating lease liabilities," and "operating lease liabilities, noncurrent" in our condensed consolidated balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement. The operating lease liabilities is adjusted for any unpaid lease incentives, such as tenant improvement allowances. Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. As the implicit rate of our leases is not determinable, we use an incremental borrowing rate ("IBR") based on the information available at the lease commencement date in determining the present value of lease payments. The lease expense is recognized on a straight-line basis over the lease term. We generally use the base, non-cancelable lease term when recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. We account for lease components and non-lease components as a single lease component. Leases with a term of twelve months or less are not recognized on the consolidated balance sheets. We recognize lease expense for these leases on a straight-line basis over the term of the lease. Stock-Based Compensation Compensation expense related to stock-based awards granted to employees and non-employees is calculated based on the fair value of stock-based awards on the date of grant. We recognize stock-based compensation expense over an award’s requisite service period based on the award’s fair value. Stock-based compensation for common stock options 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 on a straight-line basis over the requisite service period, generally four years. Stock-based compensation for purchase rights granted under the employee stock purchase plan is based on the Black-Scholes option pricing model fair value of the number of awards estimated as of the beginning of the offering period. Stock-based compensation expense is recognized following the straight-line attribution method over the offering period. Stock-based compensation for restricted stock units is measured based on the market closing price of our common stock on the grant date. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, generally four years. Stock-based compensation for performance stock awards (“PSAs”) which have the same grant date and service inception date, is based on the probable number of shares to be attained and the market closing price of our common stock at the grant date. For PSAs where the service inception date of the awards precedes the grant date, stock-based compensation expense is recognized based on the number of PSAs for which it is probable that the performance condition will be met, using the accelerated attribution method and the market closing price of our common stock at each reporting date up to the grant date. The number of these PSAs for which it is probable that the performance condition will be met is determined using management’s best estimate at the end of each reporting period. At the completion of the performance period for these PSAs, any earned PSAs are granted upon approval of the compensation committee of our board of directors. Prior to our 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. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), as amended, which requires recognition of lease assets and liabilities for leases with terms of more than 12 months. This standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We adopted this standard effective August 1, 2019 using the transitional provision which allows for the adoption of Topic 842 to be applied prospectively at the beginning of the fiscal year of adoption. As such, the condensed consolidated balance sheets for prior periods are not comparable to our fiscal 2020 periods. The adoption of this new standard resulted in the recognition of operating lease right-of-use assets of $16.9 million and operating lease liabilities of $18.0 million. We have elected the package of practical expedients permitted under the transition guidance, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for any leases that existed prior to adoption of the new standard. We have also elected to combine lease and non-lease components for real estate and co-location arrangements. In addition, we elected not to recognize lease liabilities and related right-of-use assets for leases that, at the lease commencement date, have a lease term of 12 months or less. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) ("ASU 2019-12"): Simplifying the Accounting for Income Taxes. The new standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. For public business entities, it is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We early adopted this standard as of November 1, 2019, and it did not have a material impact to our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard 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 standard on our consolidated financial statements.

Revenue Recognition

Revenue Recognition	9 Months Ended
Revenue Recognition	Apr. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Disaggregation of Revenue Subscription and support revenue is recognized over time and accounted for approximately 98% and 99% of our revenue for the three months ended April 30, 2020 and 2019, respectively, and approximately 98% and 99% of our revenue for the nine months ended April 30, 2020 and 2019, respectively. 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, 2020 2019 2020 2019 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except per percentage data) United States $ 53,741 49 % $ 38,973 49 % $ 149,315 49 % $ 106,406 49 % Europe, Middle East and Africa () 44,756 40 % 32,340 41 % 124,047 40 % 89,286 41 % Asia Pacific 9,992 9 % 6,353 8 % 26,638 9 % 16,816 8 % Other 2,035 2 % 1,462 2 % 5,382 2 % 4,220 2 % Total $ 110,524 100 % $ 79,128 100 % $ 305,382 100 % $ 216,728 100 % () Revenue from the United Kingdom ("U.K.") represented 10% and 11% of our revenue for the three months ended April 30, 2020 and 2019, respectively, and 10% of our revenue for the nine months ended April 30, 2020 and 2019. The following table summarizes the revenue from contracts by type of customer: Three Months Ended April 30, Nine Months Ended April 30, 2020 2019 2020 2019 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except per percentage data) Channel partners $ 106,942 97 % $ 75,670 96 % $ 295,316 97 % $ 206,763 95 % Direct customers 3,582 3 % 3,458 4 % 10,066 3 % 9,965 5 % Total $ 110,524 100 % $ 79,128 100 % $ 305,382 100 % $ 216,728 100 % Significant Customers No single customer accounted for 10% or more of our revenue for the three and nine months ended April 30, 2020 and 2019. The following table summarizes 10% or more of the total balance of accounts receivable, net: April 30, 2020 July 31, 2019 Channel partner A 17% * Channel partner B 10% 11% Channel partner C * 10% Channel partner D * 12% (*) Represents less than 10%. 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 nine months ended April 30, 2020 and 2019, we recognized revenue of $193.7 million and $125.7 million, respectively, that was included in the corresponding contract liability balance at the beginning of these periods. Remaining Performance Obligations The typical subscription and support term is one 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. The following table summarizes the activity of the deferred contract acquisition costs: Three Months Ended April 30, Nine Months Ended April 30, 2020 2019 2020 2019 (in thousands) Beginning balance $ 74,050 $ 60,601 $ 69,785 $ 55,910 Capitalization of contract acquisition costs 16,538 8,228 32,228 21,700 Amortization of deferred contract acquisition costs (6,248) (4,724) (17,673) (13,505) Ending balance $ 84,340 $ 64,105 $ 84,340 $ 64,105 Deferred contract acquisition costs, current $ 26,316 $ 19,391 $ 26,316 $ 19,391 Deferred contract acquisition costs, noncurrent 58,024 44,714 58,024 44,714 Total deferred contract acquisition costs $ 84,340 $ 64,105 $ 84,340 $ 64,105 Sales commissions accrued but not paid as of April 30, 2020 and July 31, 2019, totaled $10.8 million and $9.0 million, respectively, which are included within accrued compensation in the condensed consolidated balance sheets.

Cash Equivalents and Short-Term

Cash Equivalents and Short-Term Investments	9 Months Ended
Cash Equivalents and Short-Term Investments	Apr. 30, 2020
Cash and Cash Equivalents [Abstract]
Cash Equivalents and Short-Term Investments	Cash Equivalents and Short-Term Investments Cash equivalents and short-term investments consisted of the following as of April 30, 2020: Amortized Unrealized Unrealized (in thousands) Cash equivalents: Money market funds $ 89,782 $ — $ — $ 89,782 Short-term investments: U.S. treasury securities $ 61,141 $ 429 $ — $ 61,570 U.S. government agency securities 96,798 241 (11) 97,028 Corporate debt securities 107,840 486 (202) 108,124 Total $ 265,779 $ 1,156 $ (213) $ 266,722 Total cash equivalents and short-term investments $ 355,561 $ 1,156 $ (213) $ 356,504 Cash equivalents and short-term investments consisted of the following as of July 31, 2019: Amortized Unrealized Unrealized Cash equivalents: (in thousands) Money market funds $ 55,036 $ — $ — $ 55,036 Short-term investments: U.S. treasury securities $ 125,042 $ 248 $ (9) $ 125,281 U.S. government agency securities 64,689 7 (50) 64,646 Corporate debt securities 96,047 207 (19) 96,235 Total $ 285,778 $ 462 $ (78) $ 286,162 Total cash equivalents and short-term investments $ 340,814 $ 462 $ (78) $ 341,198 The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of April 30, 2020: Amortized Fair Value (in thousands) Due within one year $ 155,408 $ 156,154 Due between one and two years 110,371 110,568 Total $ 265,779 $ 266,722 Short-term investments that were in an unrealized loss position as of April 30, 2020 consisted of the following: Less than 12 Months Greater than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. government agency securities $ 21,498 $ (10) $ 7,000 $ (1) $ 28,498 $ (11) Corporate debt securities 31,035 (201) 1,000 (1) 32,035 (202) Total $ 52,533 $ (211) $ 8,000 $ (2) $ 60,533 $ (213) Unrealized losses of the above securities were primarily attributable to changes in interest rates. Short-term investments that were in an unrealized loss position as of July 31, 2019 consisted of the following: Less than 12 Months Greater than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. treasury securities $ 5,719 $ (9) $ — $ — $ 5,719 $ (9) U.S. government agency securities 36,550 (37) 9,992 (13) 46,542 (50) Corporate debt securities 14,279 (16) 8,364 (3) 22,643 (19) Total $ 56,548 $ (62) $ 18,356 $ (16) $ 74,904 $ (78) We review the individual securities that have unrealized losses in our short-term investment portfolio on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We evaluate, among others, whether we have the intention to sell any of these investments and whether it is not more likely than not that we will be required to sell any of them before recovery of the amortized cost basis. Based on this evaluation, we determined that there were no other-than-temporary impairments associated with our short-term investments as of April 30, 2020 and July 31, 2019.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Apr. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize 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. Our money market funds are classified within Level I due to the highly liquid nature of these assets and have quoted prices in active markets. Certain of our investments in available-for-sale securities (i.e., U.S. treasury securities, U.S. government agency securities and corporate debt securities) are classified within Level II. The fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments. Assets that are measured at fair value on a recurring basis consisted of the following as of April 30, 2020: Level I Level II Level III Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash equivalents: (in thousands) Money market funds $ 89,782 $ 89,782 $ — $ — Short-term investments: U.S. treasury securities $ 61,570 $ — $ 61,570 $ — U.S. government agency securities 97,028 — 97,028 — Corporate debt securities 108,124 — 108,124 — Total $ 266,722 $ — $ 266,722 $ — Total cash equivalents and short-term investments $ 356,504 $ 89,782 $ 266,722 $ — Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2019: Level I Level II Level III Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash equivalents: (in thousands) Money market funds $ 55,036 $ 55,036 $ — $ — Short-term investments: U.S. treasury securities $ 125,281 $ — $ 125,281 $ — U.S. government agency securities 64,646 — 64,646 — Corporate debt securities 96,235 — 96,235 — Total $ 286,162 $ — $ 286,162 $ — Total cash equivalents and short-term investments $ 341,198 $ 55,036 $ 286,162 $ — We did not have transfers between levels of the fair value hierarchy of assets measured at fair value during the periods presented.

Property and Equipment

Property and Equipment	9 Months Ended
Property and Equipment	Apr. 30, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: April 30, 2020 July 31, 2019 (in thousands) Hosting equipment $ 74,354 $ 56,910 Computers and equipment 3,653 2,837 Purchased software 1,311 1,311 Capitalized internal-use software 19,198 9,904 Furniture and fixtures 1,783 1,566 Leasehold improvements 8,303 2,255 Property and equipment, gross 108,602 74,783 Less: Accumulated depreciation and amortization (45,305) (33,737) Total property and equipment, net $ 63,297 $ 41,046 We recognized depreciation and amortization expense on property and equipment of $4.8 million and $2.7 million for the three months ended April 30, 2020 and 2019, respectively, and $12.3 million and $7.3 million for the nine months ended April 30, 2020 and 2019, respectively.

Business Combinations

Business Combinations	9 Months Ended
Business Combinations	Apr. 30, 2020
Business Combinations [Abstract]
Business Combinations	Business Combinations On April 16, 2020 (the "Closing Date"), we acquired Cloudneeti Corporation ("Cloudneeti"), a cloud security posture management company, which prevents and remediates application misconfigurations in cloud service models, including SaaS; infrastructure as a service, or IaaS; and platform as a service, or PaaS. With this acquisition, we will provide our customers industry-leading data protection coverage. Pursuant to the terms of the purchase agreement, the aggregate purchase price consideration was approximately $8.9 million in cash, of which $1.35 million was placed in escrow to partially secure our indemnification rights under the purchase agreement. Additionally, certain of Cloudneeti's employees who became our employees are entitled to receive additional consideration in the form of restricted stock units with a value of up to $6.0 million as of the Closing Date. These RSUs are subject to performance and time-based vesting and will be recognized as stock-based compensation expense during the post-combination period. In connection with this acquisition, we completed a valuation of the acquired identifiable intangible assets as of the closing date in order to allocate the purchase price consideration. The purchase price allocation resulted in the recognition of $5.4 million of goodwill, exclusive of goodwill recognized as a result of the deferred tax liability generated by the acquired developed technology, as further described below, and $3.5 million of developed technology. The developed technology was valued using a replacement cost approach, which is based on the cost of a market participant to reconstruct a substitute asset of comparable utility. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired and is primarily attributable to the acquired workforce and expected operating synergies. Goodwill is not expected to be deductible for income tax purposes. We incurred approximately $0.5 million of acquisition related costs, which were recorded as general and administrative expenses in three months ended April 30, 2020. The acquisition qualified as a stock transaction for tax purposes. As a result, we recognized a deferred tax liability for approximately $0.5 million, generated primarily from the difference between the tax basis and fair value of the acquired developed technology, which increased goodwill. As we have a full valuation allowance as of April 30, 2020, we recorded an income tax benefit for this deferred tax liability in the condensed consolidated statement of operations for the three months ended April 30, 2020. Refer to Note 11, Income Taxes, for further information. The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 66 Acquired intangible assets: Developed technology 3,500 5 years Goodwill 5,871 Total $ 9,437 Liabilities assumed: Deferred tax liability $ (490) Other liabilities (12) Total $ (502) Total purchase price consideration $ 8,935 The pro forma financial information, assuming the acquisition had occurred as of the beginning of the fiscal year prior to the fiscal year of the acquisition, as well as the revenue and earnings generated during the current fiscal year, were not material for disclosure purposes.

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangible Assets	9 Months Ended
Goodwill and Acquired Intangible Assets	Apr. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Acquired Intangible Assets	Goodwill and Acquired Intangible Assets Goodwill The changes in the carrying amount of goodwill consisted of the following: Amount (in thousands) Balance as of July 31, 2019 $ 7,479 Additions 5,871 Balance as of April 30, 2020 $ 13,350 Acquired Intangible Assets Acquired intangible assets consist of developed technology and customer relationships acquired through our asset and business acquisitions. Acquired intangible assets are amortized using the straight-line method over their useful lives. Acquired intangible assets subject to amortization consisted of the following as of April 30, 2020 and July 31, 2019: Gross Carrying Amount Accumulated Amortization Net Carrying Amount July 31, 2019 Additions April 30, 2020 July 31, 2019 Amortization Expense April 30, 2020 April 30, 2020 July 31, 2019 (in thousands) Developed technology $ 9,456 $ 3,500 $ 12,956 $ (897) $ (2,038) $ (2,935) $ 10,021 $ 8,559 Customer relationships 160 — 160 (11) (24) (35) 125 149 Total $ 9,616 $ 3,500 $ 13,116 $ (908) $ (2,062) $ (2,970) $ 10,146 $ 8,708 On April 30, 2020, in connection with the acquisition of Cloudneeti, we acquired $3.5 million of developed technology. Refer to Note 6, Business Combinations, for further information. The weighted-average useful life for the acquired intangible asset during the quarter ended April 30, 2020 was approximately 5.0 years. Amortization expense of acquired intangible assets for the three and nine months ended April 30, 2020 was $0.6 million and $2.1 million, respectively. Amortization expense of acquired intangible assets for the three and nine months ended April 30, 2019 was $0.2 million and $0.4 million, respectively. Amortization expense of developed technology and customer relationships is recorded primarily within cost of revenues and research and development in the condensed consolidated statements of operations. Future amortization expense of acquired intangible assets consisted of the following as of April 30, 2020: Amount Year ending July 31, (in thousands) 2020 (remaining three months) $ 817 2021 3,268 2022 2,660 2023 2,156 2024 721 Thereafter 524 Total $ 10,146

Operating Leases

Operating Leases	9 Months Ended
Operating Leases	Apr. 30, 2020
Leases [Abstract]
Operating Leases	Operating Leases The following is a summary of our operating lease costs for the three and nine months ended April 30, 2020: Three Months Ended April 30, 2020 Nine Months Ended April 30, 2020 Real Estate Arrangements Co-Location Arrangements Total Real Estate Arrangements Co-Location Arrangements Total (in thousands) Operating lease $ 1,301 $ 2,196 $ 3,497 $ 3,634 $ 6,078 $ 9,712 Short-term lease cost 390 296 686 1,016 721 1,737 Variable lease cost 423 398 821 1,036 1,337 2,373 Sublease income (63) — (63) (63) — (63) Total operating lease costs $ 2,051 $ 2,890 $ 4,941 $ 5,623 $ 8,136 $ 13,759 At April 30, 2020, the real estate arrangements’ weighted-average remaining lease term and weighted-average discount rate for operating leases were 5.3 years and 4.9%, respectively. At April 30, 2020, the co-location arrangements' weighted-average remaining lease term and weighted-average discount rate for operating leases were 2.1 years and 3.1%. respectively. Cash paid, net of tenant incentives for amounts included in the measurement of operating lease liabilities was $0.3 million and $5.5 million for the three and nine months ended April 30, 2020, respectively. Rent expense was $0.8 million and $2.2 million for the three and nine months ended April 30, 2019, respectively. Bandwidth and co-location expenses were $3.6 million and $10.0 million for the three and nine months ended April 30, 2019, respectively. Rent expense prior to fiscal 2020 was recognized in accordance with ASC 840, Leases, using the straight-line method over the term of the lease. Maturities of operating lease liabilities consisted of the following as of April 30, 2020: Real Estate Arrangements Co-Location Arrangements Total Year ending July 31, (in thousands) 2020 (remaining three months) $ 1,100 $ 2,078 $ 3,178 2021 5,571 9,004 14,575 2022 4,604 7,134 11,738 2023 4,104 755 4,859 2024 3,697 — 3,697 Thereafter 7,262 — 7,262 Total future minimum lease payments $ 26,338 $ 18,971 $ 45,309 Less: Imputed interest 3,259 1,202 4,461 Total $ 23,079 $ 17,769 $ 40,848 As of April 30, 2020, we have entered into non-cancelable operating leases with a term greater than 12 months that have not yet commenced with undiscounted future minimum payments of $17.5 million, which are excluded from the above table. These operating leases will commence between May 2020 and October 2022 with lease terms ranging from 1.2 years to 6.0 years. Future minimum payments under non-cancelable operating leases consisted of the following as of July 31, 2019: Real Estate Arrangements Data Center Arrangements Total Year ending July 31, (in thousands) 2020 $ 4,624 $ 11,766 $ 16,390 2021 5,836 9,890 15,726 2022 4,871 5,533 10,404 2023 6,143 106 6,249 2024 6,509 — 6,509 Thereafter 15,977 — 15,977 Total $ 43,960 $ 27,295 $ 71,255

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Apr. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Non-cancelable Purchase Obligations In the normal course of business, we enter into non-cancelable purchase commitments with various third parties to purchase products and services such as technology equipment, subscription-based cloud service arrangements, corporate events and consulting services. As of April 30, 2020, and July 31, 2019, we had outstanding non-cancelable purchase obligations with a term of 12 months or longer of $6.9 million and $2.5 million, respectively. Legal Matters Symantec Litigation On December 12, 2016 and April 18, 2017, Symantec Corporation ("Symantec") filed two separate complaints in the U.S. District Court for the District of Delaware, alleging that "Zscaler's cloud security platform" infringed multiple U.S. patents held by Symantec (the "Symantec Cases"). The complaints in the Symantec Cases sought compensatory damages, injunctions, enhanced damages and attorney fees. In July and August 2017, the Symantec Cases were transferred to the U.S. District Court for the Northern District of California. On November 4, 2019, Broadcom, Inc. ("Broadcom") announced the completion of its acquisition of certain assets and assumption of certain liabilities of Symantec's enterprise security business, including all rights, titles, and interests in the patents asserted in the Symantec Cases. On January 12, 2020, we entered into a settlement and patent license agreement with CA, Inc., a Broadcom affiliate, pursuant to which the Symantec Cases were dismissed with prejudice effective as of January 13, 2020. In connection with the settlement, we made a payment of $15.0 million to Broadcom, and Broadcom provided us with patent licenses, a release and a covenant not to sue. We determined that there is no material future economic benefit from the acquired Broadcom license and accordingly, we recorded an expense of $15.0 million within general and administrative expenses in the consolidated statement of operations for the quarter ended January 31, 2020. Finjan Litigation As further disclosed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2019, in April 2019 we entered into a patent license and settlement agreements with Finjan, Inc. and its affiliates (collectively "Finjan"), resolving all claims alleged by Finjan in the complaint filed on December 5, 2017. The settlement agreements required us to make a cash payment to Finjan for $7.3 million, of which $4.1 million was accrued in the three months ended April 30, 2019, $0.7 million in fiscal 2018 and $2.5 million in fiscal 2017. 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.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Apr. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Equity Incentive Plans We adopted the Fiscal Year 2018 Equity Incentive Plan (the "2018 Plan") in fiscal 2018 and the 2007 Stock Plan (the "2007 Plan") in fiscal 2008, collectively referred to as the "Plans." Equity incentive awards which may be granted to eligible participants under the Plans include restricted stock units, restricted stock, stock options, nonstatutory stock options, stock appreciation rights, performance units and performance shares. With the establishment of the 2018 Plan, we no longer grant 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 are automatically transferred to the 2018 Plan. As of April 30, 2020, a total of 25.1 million shares of common stock have been reserved for the issuance of equity awards under the 2018 Plan, of which 19.7 million shares were available for grant. The number of shares of common stock available for issuance under the 2018 Plan also includes an annual increase on the first day of each fiscal year pursuant to its automatic annual increase provision. Stock Options The stock option activity consisted of the following for the nine months ended April 30, 2020: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2019 8,861 $ 7.16 4.6 $ 683,294 Granted 150 49.59 Exercised (2,102) 5.97 109,299 Canceled, forfeited or expired (360) 8.27 Balance as of April 30, 2020 6,549 $ 8.45 4.1 $ 383,966 Exercisable and expected to vest as of July 31, 2019 3,311 $ 5.60 4.0 $ 260,479 Exercisable and expected to vest as of April 30, 2020 3,346 $ 6.37 3.7 $ 203,145 The aggregate intrinsic value of the options exercised represents the difference between the estimated fair value of our common stock on the date of exercise and their exercise price. The total intrinsic value of options exercised for the nine months ended April 30, 2020 and 2019 was $109.3 million and $221.8 million, respectively. The weighted-average grant- date fair value per share of stock options granted for the nine months ended April 30, 2020 was $22.76. There were no stock options granted during the nine months ended April 30, 2019. We estimated the fair value of stock options using the Black-Scholes option pricing model with the following assumptions: Nine Months Ended April 30, 2020 Expected term (in years) 6.1 Expected stock price volatility 46.1% Risk-free interest rate 1.7% Dividend yield 0.0% Restricted Stock Units and Performance Stock Awards The 2018 Plan allows for the grant of restricted stock units ("RSUs"). Generally, RSUs are subject to a four The 2018 Plan allows for the grant of performance stock awards ("PSAs"). The right to earn the PSAs is subject to achievement of the defined performance metrics and continuous employment service. The performance metrics are defined and approved by the compensation committee of our board of directors or by our senior management for certain types of awards. Generally, earned PSAs are subject to additional time-based vesting. As of April 30, 2020, we determined that the service inception date for 0.2 million PSAs preceded the grant date, and we recognized $2.5 million of stock-based compensation expense associated with these PSAs during the three and nine months ended April 30, 2020. As of April 30, 2020, there were 0.5 million outstanding PSAs for which the performance metrics have not been defined as of such date. Accordingly, such awards are not considered granted for accounting purposes as of April 30, 2020 and have been excluded from the below table. The activity of RSUs and PSAs consisted of the following for the nine months ended April 30, 2020: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2019 4,152 $ 48.51 $ 349,872 Granted 3,189 50.65 Vested (708) 41.14 32,315 Canceled or forfeited (470) 52.34 Balance as of April 30, 2020 6,163 $ 50.17 $ 413,408 Employee Stock Purchase Plan We adopted the Fiscal Year 2018 Employee Stock Purchase Plan (the "ESPP") in the third quarter of fiscal 2018. As of April 30, 2020, a total of 4.7 million shares of common stock have been reserved for issuance under the ESPP, of which 3.3 million shares were available for grant. The number of shares reserved includes an annual increase on the first day of each fiscal year pursuant to its automatic annual increase provision. 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. During the nine months ended April 30, 2020, employees purchased approximately 0.3 million shares of our common stock under our employee stock purchase plan at an average purchase price of $18.80 per share, resulting in total cash proceeds of $5.3 million. ESPP employee payroll contributions accrued at April 30, 2020 and July 31, 2019 were $7.8 million and $2.1 million, respectively, and are included within accrued compensation in the condensed consolidated balance sheets. Payroll contributions accrued as of April 30, 2020 will be used to purchase shares at the end of the current ESPP purchase period ending on June 15, 2020. Payroll contributions ultimately used to purchase shares will be reclassified to stockholders' equity on the purchase date. The fair value of the purchase right for the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Nine Months Ended April 30, 2020 April 30, 2019 Expected Term in Years 0.5 - 2.0 0.5 - 2.0 Expected stock price volatility 53.6% - 57.6% 44.0% - 61.9% Risk-free interest rate 1.5% - 1.7% 2.5% - 2.7% Dividend Yield 0.0% 0.0% Early Exercised Stock Options During the nine months ended April 30, 2020 and 2019, we reclassified to additional paid-in capital $0.4 million and $0.8 million, respectively, related to common stock issued upon early exercise of stock options which vested during these periods. As of April 30, 2020 and July 31, 2019, the number of shares of early exercised common stock subject to repurchase was approximately 34,000 shares and 122,000 shares with an aggregate exercise price of $0.2 million and $0.6 million, respectively. The liability for early exercised stock options is included within accrued expenses and other current liabilities in the condensed consolidated balance sheets. Notes Receivable from Stockholders Prior to fiscal 2017, 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. During the nine months ended April 30, 2019, the outstanding principal amount of $1.9 million and accrued interest of $0.2 million were fully repaid. Stock-based Compensation Expense The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following: Three Months Ended April 30, Nine Months Ended April 30, 2020 2019 2020 2019 (in thousands) Cost of revenue $ 1,614 $ 686 $ 4,575 $ 1,808 Sales and marketing 15,119 6,459 37,101 14,777 Research and development 6,738 4,194 17,689 11,387 General and administrative 4,299 1,936 10,647 6,116 Total $ 27,770 $ 13,275 $ 70,012 $ 34,088 As of April 30, 2020, the unrecognized stock-based compensation cost related to outstanding equity-based awards, including awards for which the service inception date has been met but the grant date has not been met, was $278.1 million, which we expect to be amortized over a weighted-average period of 2.8 years. During the three and nine months ended April 30, 2020, we capitalized $1.0 million and $3.0 million, respectively of stock-based compensation associated with the development of software for internal-use. Stock-based compensation related to projects capitalized in the prior comparative periods was immaterial.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Apr. 30, 2020
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 annual effective tax rate for the year differs from the U.S. statutory rate of 21% as a result of our U.S. losses for which no benefit will be realized, as well as our foreign operations which are subject to tax rates that differ from those in the U.S. We recorded a provision for income taxes of $0.4 million and $0.6 million for the three months ended April 30, 2020 and 2019, respectively, and $1.9 million and $1.5 million for the nine months ended April 30, 2020 and 2019, 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 both income and withholding taxes in the foreign jurisdictions in which we conduct business. During the three months ended April 30, 2020, we recognized an income tax benefit of $0.5 million as a result of a release in our valuation allowance on deferred tax assets as a result of the acquisition of Cloudneeti. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. We assess our ability to realize the deferred tax assets on a quarterly basis and we establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. We weigh all available positive and negative evidence, including our earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. Due to the weight of objectively verifiable negative evidence, including our history of losses in certain jurisdictions, we believe that it is more likely than not that our U.S. federal, state, and U.K. deferred tax assets will not be realized. Accordingly, we have maintained a valuation allowance on our U.S. federal, state and U.K. deferred tax assets.

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Stockholders	9 Months Ended
Net Loss Per Share Attributable to Common Stockholders	Apr. 30, 2020
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 Nine Months Ended 2020 2019 2020 2019 (in thousands) Net loss $ (19,337) $ (12,236) $ (65,567) $ (23,379) Weighted-average shares used in computing net loss per share, basic and diluted 129,682 124,672 128,538 122,644 Net loss per share, basic and diluted $ (0.15) $ (0.10) $ (0.51) $ (0.19) 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 as their effect is antidilutive and accordingly, basic and diluted net loss per share 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 because the impact of including them would have been antidilutive: April 30, 2020 2019 (in thousands) Outstanding stock options 6,549 10,243 Shares subject to repurchase from early exercised stock options 34 154 Share purchase rights under the ESPP 772 1,354 Unvested RSUs 5,676 3,437 Unvested PSAs () 487 464 Total 13,518 15,652 () The number of unvested PSAs is based on the target number of shares granted and excludes unvested PSAs for which performance conditions have not been established as of April 30, 2020, as they are not considered outstanding for accounting purposes. Refer to Note 10, Stock-Based Compensation, for further information.

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Apr. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn May 2020, we acquired Edgewise Networks Inc. for which we paid approximately $31.0 million in cash. Edgewise Networks secures application-to-application communications in public clouds and data centers. This acquisition broadens our cloud-native platform to improve the security of east-west communication by verifying the identity of application software, services and processes to achieve a zero trust environment. We are in the process of completing our initial accounting for this acquisition.

Business and Summary of Signi_2

Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Apr. 30, 2020
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 Securities and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of the Company 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 and accompanying notes should be read in conjunction with the Company's audited consolidated financial statements and related notes in its Annual Report on Form 10-K for the fiscal year ended July 31, 2019 (the "Fiscal 2019 Form 10-K"), as filed with the SEC on September 18, 2019.
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, valuation of acquired intangible assets, 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, useful lives of acquired intangible assets, loss contingencies related to litigation, valuation of deferred tax assets and the discount rate used for operating leases. Management determines these estimates and assumptions based 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. Due to the COVID-19 pandemic, there is ongoing uncertainty and significant disruption in the global economy and financial markets. We are not aware of any specific event or circumstances that would require an update to our estimates, judgments or assumptions or a revision to the carrying value of our assets or liabilities as of the date of issuance of these financial statements. These estimates, judgments and assumptions may change in the future, as new events occur or additional information is obtained .
Fiscal Year	Fiscal Year Our fiscal year ends on July 31. References to fiscal 2020, for example, refer to our fiscal year ending July 31, 2020.
Operating Leases	Operating Leases We enter into operating lease arrangements for real estate assets related to office space and co-location assets related to space and racks at data center facilities. We determine if an arrangement contains a lease at its inception by assessing whether there is an identified asset and whether the arrangement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases related balances are included in "operating lease right-of-use assets," "operating lease liabilities," and "operating lease liabilities, noncurrent" in our condensed consolidated balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement. The operating lease liabilities is adjusted for any unpaid lease incentives, such as tenant improvement allowances. Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. As the implicit rate of our leases is not determinable, we use an incremental borrowing rate ("IBR") based on the information available at the lease commencement date in determining the present value of lease payments. The lease expense is recognized on a straight-line basis over the lease term. We generally use the base, non-cancelable lease term when recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. We account for lease components and non-lease components as a single lease component. Leases with a term of twelve months or less are not recognized on the consolidated balance sheets. We recognize lease expense for these leases on a straight-line basis over the term of the lease.
Stock-Based Compensation	Stock-Based Compensation Compensation expense related to stock-based awards granted to employees and non-employees is calculated based on the fair value of stock-based awards on the date of grant. We recognize stock-based compensation expense over an award’s requisite service period based on the award’s fair value. Stock-based compensation for common stock options 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 on a straight-line basis over the requisite service period, generally four years. Stock-based compensation for purchase rights granted under the employee stock purchase plan is based on the Black-Scholes option pricing model fair value of the number of awards estimated as of the beginning of the offering period. Stock-based compensation expense is recognized following the straight-line attribution method over the offering period. Stock-based compensation for restricted stock units is measured based on the market closing price of our common stock on the grant date. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, generally four years. Stock-based compensation for performance stock awards (“PSAs”) which have the same grant date and service inception date, is based on the probable number of shares to be attained and the market closing price of our common stock at the grant date. For PSAs where the service inception date of the awards precedes the grant date, stock-based compensation expense is recognized based on the number of PSAs for which it is probable that the performance condition will be met, using the accelerated attribution method and the market closing price of our common stock at each reporting date up to the grant date. The number of these PSAs for which it is probable that the performance condition will be met is determined using management’s best estimate at the end of each reporting period. At the completion of the performance period for these PSAs, any earned PSAs are granted upon approval of the compensation committee of our board of directors. Prior to our 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.
Recently Adopted Accounting Pronouncements; Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), as amended, which requires recognition of lease assets and liabilities for leases with terms of more than 12 months. This standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We adopted this standard effective August 1, 2019 using the transitional provision which allows for the adoption of Topic 842 to be applied prospectively at the beginning of the fiscal year of adoption. As such, the condensed consolidated balance sheets for prior periods are not comparable to our fiscal 2020 periods. The adoption of this new standard resulted in the recognition of operating lease right-of-use assets of $16.9 million and operating lease liabilities of $18.0 million. We have elected the package of practical expedients permitted under the transition guidance, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for any leases that existed prior to adoption of the new standard. We have also elected to combine lease and non-lease components for real estate and co-location arrangements. In addition, we elected not to recognize lease liabilities and related right-of-use assets for leases that, at the lease commencement date, have a lease term of 12 months or less. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) ("ASU 2019-12"): Simplifying the Accounting for Income Taxes. The new standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. For public business entities, it is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. We early adopted this standard as of November 1, 2019, and it did not have a material impact to our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard 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 standard on our consolidated financial statements.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
Revenue Recognition (Tables)	Apr. 30, 2020
Revenue from Contract with Customer [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, 2020 2019 2020 2019 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except per percentage data) United States $ 53,741 49 % $ 38,973 49 % $ 149,315 49 % $ 106,406 49 % Europe, Middle East and Africa () 44,756 40 % 32,340 41 % 124,047 40 % 89,286 41 % Asia Pacific 9,992 9 % 6,353 8 % 26,638 9 % 16,816 8 % Other 2,035 2 % 1,462 2 % 5,382 2 % 4,220 2 % Total $ 110,524 100 % $ 79,128 100 % $ 305,382 100 % $ 216,728 100 % () Revenue from the United Kingdom ("U.K.") represented 10% and 11% of our revenue for the three months ended April 30, 2020 and 2019, respectively, and 10% of our revenue for the nine months ended April 30, 2020 and 2019. The following table summarizes the revenue from contracts by type of customer: Three Months Ended April 30, Nine Months Ended April 30, 2020 2019 2020 2019 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except per percentage data) Channel partners $ 106,942 97 % $ 75,670 96 % $ 295,316 97 % $ 206,763 95 % Direct customers 3,582 3 % 3,458 4 % 10,066 3 % 9,965 5 % Total $ 110,524 100 % $ 79,128 100 % $ 305,382 100 % $ 216,728 100 %
Schedule of Accounts Receivable	The following table summarizes 10% or more of the total balance of accounts receivable, net: April 30, 2020 July 31, 2019 Channel partner A 17% * Channel partner B 10% 11% Channel partner C * 10% Channel partner D * 12% (*) Represents less than 10%.
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, 2020 2019 2020 2019 (in thousands) Beginning balance $ 74,050 $ 60,601 $ 69,785 $ 55,910 Capitalization of contract acquisition costs 16,538 8,228 32,228 21,700 Amortization of deferred contract acquisition costs (6,248) (4,724) (17,673) (13,505) Ending balance $ 84,340 $ 64,105 $ 84,340 $ 64,105 Deferred contract acquisition costs, current $ 26,316 $ 19,391 $ 26,316 $ 19,391 Deferred contract acquisition costs, noncurrent 58,024 44,714 58,024 44,714 Total deferred contract acquisition costs $ 84,340 $ 64,105 $ 84,340 $ 64,105

Cash Equivalents and Short-Te_2

Cash Equivalents and Short-Term Investments (Tables)	9 Months Ended
Cash Equivalents and Short-Term Investments (Tables)	Apr. 30, 2020
Cash and Cash Equivalents [Abstract]
Schedule of Cash Equivalents and Short-Term Investments	Cash equivalents and short-term investments consisted of the following as of April 30, 2020: Amortized Unrealized Unrealized (in thousands) Cash equivalents: Money market funds $ 89,782 $ — $ — $ 89,782 Short-term investments: U.S. treasury securities $ 61,141 $ 429 $ — $ 61,570 U.S. government agency securities 96,798 241 (11) 97,028 Corporate debt securities 107,840 486 (202) 108,124 Total $ 265,779 $ 1,156 $ (213) $ 266,722 Total cash equivalents and short-term investments $ 355,561 $ 1,156 $ (213) $ 356,504 Cash equivalents and short-term investments consisted of the following as of July 31, 2019: Amortized Unrealized Unrealized Cash equivalents: (in thousands) Money market funds $ 55,036 $ — $ — $ 55,036 Short-term investments: U.S. treasury securities $ 125,042 $ 248 $ (9) $ 125,281 U.S. government agency securities 64,689 7 (50) 64,646 Corporate debt securities 96,047 207 (19) 96,235 Total $ 285,778 $ 462 $ (78) $ 286,162 Total cash equivalents and short-term investments $ 340,814 $ 462 $ (78) $ 341,198
Schedule of Maturities	The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of April 30, 2020: Amortized Fair Value (in thousands) Due within one year $ 155,408 $ 156,154 Due between one and two years 110,371 110,568 Total $ 265,779 $ 266,722
Schedule of Unrealized Loss on Investments	Short-term investments that were in an unrealized loss position as of April 30, 2020 consisted of the following: Less than 12 Months Greater than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. government agency securities $ 21,498 $ (10) $ 7,000 $ (1) $ 28,498 $ (11) Corporate debt securities 31,035 (201) 1,000 (1) 32,035 (202) Total $ 52,533 $ (211) $ 8,000 $ (2) $ 60,533 $ (213) Unrealized losses of the above securities were primarily attributable to changes in interest rates. Short-term investments that were in an unrealized loss position as of July 31, 2019 consisted of the following: Less than 12 Months Greater than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. treasury securities $ 5,719 $ (9) $ — $ — $ 5,719 $ (9) U.S. government agency securities 36,550 (37) 9,992 (13) 46,542 (50) Corporate debt securities 14,279 (16) 8,364 (3) 22,643 (19) Total $ 56,548 $ (62) $ 18,356 $ (16) $ 74,904 $ (78)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Apr. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets Measured on Recurring Basis	Assets that are measured at fair value on a recurring basis consisted of the following as of April 30, 2020: Level I Level II Level III Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash equivalents: (in thousands) Money market funds $ 89,782 $ 89,782 $ — $ — Short-term investments: U.S. treasury securities $ 61,570 $ — $ 61,570 $ — U.S. government agency securities 97,028 — 97,028 — Corporate debt securities 108,124 — 108,124 — Total $ 266,722 $ — $ 266,722 $ — Total cash equivalents and short-term investments $ 356,504 $ 89,782 $ 266,722 $ — Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 2019: Level I Level II Level III Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash equivalents: (in thousands) Money market funds $ 55,036 $ 55,036 $ — $ — Short-term investments: U.S. treasury securities $ 125,281 $ — $ 125,281 $ — U.S. government agency securities 64,646 — 64,646 — Corporate debt securities 96,235 — 96,235 — Total $ 286,162 $ — $ 286,162 $ — Total cash equivalents and short-term investments $ 341,198 $ 55,036 $ 286,162 $ —

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
Property and Equipment (Tables)	Apr. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following: April 30, 2020 July 31, 2019 (in thousands) Hosting equipment $ 74,354 $ 56,910 Computers and equipment 3,653 2,837 Purchased software 1,311 1,311 Capitalized internal-use software 19,198 9,904 Furniture and fixtures 1,783 1,566 Leasehold improvements 8,303 2,255 Property and equipment, gross 108,602 74,783 Less: Accumulated depreciation and amortization (45,305) (33,737) Total property and equipment, net $ 63,297 $ 41,046

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
Business Combinations (Tables)	Apr. 30, 2020
Business Combinations [Abstract]
Schedule of Net Assets Acquired	The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 66 Acquired intangible assets: Developed technology 3,500 5 years Goodwill 5,871 Total $ 9,437 Liabilities assumed: Deferred tax liability $ (490) Other liabilities (12) Total $ (502) Total purchase price consideration $ 8,935

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangible Assets (Tables)	9 Months Ended
Goodwill and Acquired Intangible Assets (Tables)	Apr. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amount of goodwill consisted of the following: Amount (in thousands) Balance as of July 31, 2019 $ 7,479 Additions 5,871 Balance as of April 30, 2020 $ 13,350
Schedule of Acquired Intangible Assets	Acquired intangible assets subject to amortization consisted of the following as of April 30, 2020 and July 31, 2019: Gross Carrying Amount Accumulated Amortization Net Carrying Amount July 31, 2019 Additions April 30, 2020 July 31, 2019 Amortization Expense April 30, 2020 April 30, 2020 July 31, 2019 (in thousands) Developed technology $ 9,456 $ 3,500 $ 12,956 $ (897) $ (2,038) $ (2,935) $ 10,021 $ 8,559 Customer relationships 160 — 160 (11) (24) (35) 125 149 Total $ 9,616 $ 3,500 $ 13,116 $ (908) $ (2,062) $ (2,970) $ 10,146 $ 8,708
Schedule of Future Amortization Expense	Future amortization expense of acquired intangible assets consisted of the following as of April 30, 2020: Amount Year ending July 31, (in thousands) 2020 (remaining three months) $ 817 2021 3,268 2022 2,660 2023 2,156 2024 721 Thereafter 524 Total $ 10,146

Operating Leases (Tables)

Operating Leases (Tables)	9 Months Ended
Operating Leases (Tables)	Apr. 30, 2020
Leases [Abstract]
Schedule of Lease Expense	The following is a summary of our operating lease costs for the three and nine months ended April 30, 2020: Three Months Ended April 30, 2020 Nine Months Ended April 30, 2020 Real Estate Arrangements Co-Location Arrangements Total Real Estate Arrangements Co-Location Arrangements Total (in thousands) Operating lease $ 1,301 $ 2,196 $ 3,497 $ 3,634 $ 6,078 $ 9,712 Short-term lease cost 390 296 686 1,016 721 1,737 Variable lease cost 423 398 821 1,036 1,337 2,373 Sublease income (63) — (63) (63) — (63) Total operating lease costs $ 2,051 $ 2,890 $ 4,941 $ 5,623 $ 8,136 $ 13,759
Schedule of Lease Maturities	Maturities of operating lease liabilities consisted of the following as of April 30, 2020: Real Estate Arrangements Co-Location Arrangements Total Year ending July 31, (in thousands) 2020 (remaining three months) $ 1,100 $ 2,078 $ 3,178 2021 5,571 9,004 14,575 2022 4,604 7,134 11,738 2023 4,104 755 4,859 2024 3,697 — 3,697 Thereafter 7,262 — 7,262 Total future minimum lease payments $ 26,338 $ 18,971 $ 45,309 Less: Imputed interest 3,259 1,202 4,461 Total $ 23,079 $ 17,769 $ 40,848 Future minimum payments under non-cancelable operating leases consisted of the following as of July 31, 2019: Real Estate Arrangements Data Center Arrangements Total Year ending July 31, (in thousands) 2020 $ 4,624 $ 11,766 $ 16,390 2021 5,836 9,890 15,726 2022 4,871 5,533 10,404 2023 6,143 106 6,249 2024 6,509 — 6,509 Thereafter 15,977 — 15,977 Total $ 43,960 $ 27,295 $ 71,255

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Apr. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Stock Options	The stock option activity consisted of the following for the nine months ended April 30, 2020: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2019 8,861 $ 7.16 4.6 $ 683,294 Granted 150 49.59 Exercised (2,102) 5.97 109,299 Canceled, forfeited or expired (360) 8.27 Balance as of April 30, 2020 6,549 $ 8.45 4.1 $ 383,966 Exercisable and expected to vest as of July 31, 2019 3,311 $ 5.60 4.0 $ 260,479 Exercisable and expected to vest as of April 30, 2020 3,346 $ 6.37 3.7 $ 203,145
Schedule of Valuation Assumptions	We estimated the fair value of stock options using the Black-Scholes option pricing model with the following assumptions: Nine Months Ended April 30, 2020 Expected term (in years) 6.1 Expected stock price volatility 46.1% Risk-free interest rate 1.7% Dividend yield 0.0% The fair value of the purchase right for the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Nine Months Ended April 30, 2020 April 30, 2019 Expected Term in Years 0.5 - 2.0 0.5 - 2.0 Expected stock price volatility 53.6% - 57.6% 44.0% - 61.9% Risk-free interest rate 1.5% - 1.7% 2.5% - 2.7% Dividend Yield 0.0% 0.0%
Schedule of Restricted Stock Units and Performance Stock Awards Activity	The activity of RSUs and PSAs consisted of the following for the nine months ended April 30, 2020: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2019 4,152 $ 48.51 $ 349,872 Granted 3,189 50.65 Vested (708) 41.14 32,315 Canceled or forfeited (470) 52.34 Balance as of April 30, 2020 6,163 $ 50.17 $ 413,408
Schedule of Allocation of Stock-based Compensation Expense	The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following: Three Months Ended April 30, Nine Months Ended April 30, 2020 2019 2020 2019 (in thousands) Cost of revenue $ 1,614 $ 686 $ 4,575 $ 1,808 Sales and marketing 15,119 6,459 37,101 14,777 Research and development 6,738 4,194 17,689 11,387 General and administrative 4,299 1,936 10,647 6,116 Total $ 27,770 $ 13,275 $ 70,012 $ 34,088

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Apr. 30, 2020
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 Nine Months Ended 2020 2019 2020 2019 (in thousands) Net loss $ (19,337) $ (12,236) $ (65,567) $ (23,379) Weighted-average shares used in computing net loss per share, basic and diluted 129,682 124,672 128,538 122,644 Net loss per share, basic and diluted $ (0.15) $ (0.10) $ (0.51) $ (0.19)
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 because the impact of including them would have been antidilutive: April 30, 2020 2019 (in thousands) Outstanding stock options 6,549 10,243 Shares subject to repurchase from early exercised stock options 34 154 Share purchase rights under the ESPP 772 1,354 Unvested RSUs 5,676 3,437 Unvested PSAs () 487 464 Total 13,518 15,652 () The number of unvested PSAs is based on the target number of shares granted and excludes unvested PSAs for which performance conditions have not been established as of April 30, 2020, as they are not considered outstanding for accounting purposes. Refer to Note 10, Stock-Based Compensation, for further information.

Business and Summary of Signi_3

Business and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 35,128
Operating lease liabilities	$ 40,848
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 16,900
Operating lease liabilities		$ 18,000

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019	Jul. 31, 2019
Concentration Risk [Line Items]
Contract with customer, liability, revenue recognized			$ 193.7	$ 125.7
Revenue, remaining performance obligation	$ 653.5		653.5
Accrued sales commissions	$ 10.8		$ 10.8		$ 9
Minimum
Concentration Risk [Line Items]
Contract with customer, term of contract			1 year
Maximum
Concentration Risk [Line Items]
Contract with customer, term of contract			3 years
Subscription and Support \| Sales Revenue, Net \| Product Concentration Risk \| Transferred over Time
Concentration Risk [Line Items]
Revenue, percentage	98.00%	99.00%	98.00%	99.00%

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 110,524	$ 79,128	$ 305,382	$ 216,728
Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 110,524	$ 79,128	$ 305,382	$ 216,728
Revenue, percentage	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Net \| Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 110,524	$ 79,128	$ 305,382	$ 216,728
Revenue, percentage	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Net \| Customer Concentration Risk \| Channel partners
Disaggregation of Revenue [Line Items]
Revenue	$ 106,942	$ 75,670	$ 295,316	$ 206,763
Revenue, percentage	97.00%	96.00%	97.00%	95.00%
Sales Revenue, Net \| Customer Concentration Risk \| Direct customers
Disaggregation of Revenue [Line Items]
Revenue	$ 3,582	$ 3,458	$ 10,066	$ 9,965
Revenue, percentage	3.00%	4.00%	3.00%	5.00%
United States \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 53,741	$ 38,973	$ 149,315	$ 106,406
Revenue, percentage	49.00%	49.00%	49.00%	49.00%
Europe, Middle East and Africa \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 44,756	$ 32,340	$ 124,047	$ 89,286
Revenue, percentage	40.00%	41.00%	40.00%	41.00%
Asia Pacific \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 9,992	$ 6,353	$ 26,638	$ 16,816
Revenue, percentage	9.00%	8.00%	9.00%	8.00%
Other \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 2,035	$ 1,462	$ 5,382	$ 4,220
Revenue, percentage	2.00%	2.00%	2.00%	2.00%
United Kingdom \| Sales Revenue, Net \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue, percentage	10.00%	11.00%	10.00%

Revenue Recognition - Performan

Revenue Recognition - Performance Obligation (Details)	Apr. 30, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	56.00%
Recognized transaction price period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	98.00%
Recognized transaction price period	3 years

Revenue Recognition - Significa

Revenue Recognition - Significant Customers (Details) - Accounts Receivable - Customer Concentration Risk	9 Months Ended	12 Months Ended
	Apr. 30, 2020	Jul. 31, 2019
Channel partner A
Concentration Risk [Line Items]
Accounts receivable, net	17.00%
Channel partner B
Concentration Risk [Line Items]
Accounts receivable, net	10.00%	11.00%
Channel partner C
Concentration Risk [Line Items]
Accounts receivable, net		10.00%
Channel partner D
Concentration Risk [Line Items]
Accounts receivable, net		12.00%

Revenue Recognition - Capitaliz

Revenue Recognition - Capitalized Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Jul. 31, 2019	Apr. 30, 2019
Changes in Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 74,050	$ 60,601	$ 69,785	$ 55,910
Capitalization of contract acquisition costs	16,538	8,228	32,228	21,700
Amortization of deferred contract acquisition costs	(6,248)	(4,724)	(17,673)	(13,505)
Ending balance	84,340	64,105	84,340	64,105
Deferred contract acquisition costs, current					$ 26,316	$ 21,219	$ 19,391
Deferred contract acquisition costs, noncurrent					58,024	48,566	44,714
Total deferred contract acquisition costs	$ 84,340	$ 64,105	$ 84,340	$ 64,105	$ 84,340	$ 69,785	$ 64,105

Cash Equivalents and Short-Te_3

Cash Equivalents and Short-Term Investments - Schedule of Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Short-term investments, amortized cost basis	$ 265,779	$ 285,778
Short-term investment, unrealized gains	1,156	462
Short-term investments, unrealized losses	(213)	(78)
Short-term investments	266,722	286,162
Cash equivalents and short-term investments, amortized cost	355,561	340,814
Cash equivalents and short-term investments, unrealized gains	1,156	462
Cash equivalents and short-term investments, unrealized losses	(213)	(78)
Cash equivalents and short-term investments, estimated fair value	356,504	341,198
Money market funds
Debt Securities, Available-for-sale [Line Items]
Cash equivalents, amortized cost	89,782	55,036
Cash equivalents, unrealized gains	0	0
Cash equivalents, unrealized losses	0	0
Cash equivalents	89,782	55,036
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Short-term investments, amortized cost basis	61,141	125,042
Short-term investment, unrealized gains	429	248
Short-term investments, unrealized losses	0	(9)
Short-term investments	61,570	125,281
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Short-term investments, amortized cost basis	96,798	64,689
Short-term investment, unrealized gains	241	7
Short-term investments, unrealized losses	(11)	(50)
Short-term investments	97,028	64,646
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Short-term investments, amortized cost basis	107,840	96,047
Short-term investment, unrealized gains	486	207
Short-term investments, unrealized losses	(202)	(19)
Short-term investments	$ 108,124	$ 96,235

Cash Equivalents and Short-Te_4

Cash Equivalents and Short-Term Investments - Schedule of Maturities (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Amortized Cost
Due within one year, cost basis	$ 155,408
Due between one and two years, cost basis	110,371
Short-term investments, amortized cost basis	265,779	$ 285,778
Fair Value
Due within one year, fair value	156,154
Due between one and two years, fair value	110,568
Total short-term investments, fair value	$ 266,722	$ 286,162

Cash Equivalents and Short-Te_5

Cash Equivalents and Short-Term Investments - Schedule of Unrealized Position (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	$ 52,533	$ 56,548
Less than 12 months, unrealized losses	(211)	(62)
Greater than 12 months, fair value	8,000	18,356
Greater than 12 months, unrealized losses	(2)	(16)
Total fair value	60,533	74,904
Total unrealized losses	(213)	(78)
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	21,498	36,550
Less than 12 months, unrealized losses	(10)	(37)
Greater than 12 months, fair value	7,000	9,992
Greater than 12 months, unrealized losses	(1)	(13)
Total fair value	28,498	46,542
Total unrealized losses	(11)	(50)
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	31,035	14,279
Less than 12 months, unrealized losses	(201)	(16)
Greater than 12 months, fair value	1,000	8,364
Greater than 12 months, unrealized losses	(1)	(3)
Total fair value	32,035	22,643
Total unrealized losses	$ (202)	(19)
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value		5,719
Less than 12 months, unrealized losses		(9)
Greater than 12 months, fair value		0
Greater than 12 months, unrealized losses		0
Total fair value		5,719
Total unrealized losses		$ (9)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Short-term investments:
Short-term investments	$ 266,722	$ 286,162
Cash equivalents and short-term investments, estimated fair value	356,504	341,198
Fair Value, Measurements, Recurring
Short-term investments:
Short-term investments	266,722	286,162
Cash equivalents and short-term investments, estimated fair value	356,504	341,198
Fair Value, Measurements, Recurring \| Level I
Short-term investments:
Short-term investments	0	0
Cash equivalents and short-term investments, estimated fair value	89,782	55,036
Fair Value, Measurements, Recurring \| Level II
Short-term investments:
Short-term investments	266,722	286,162
Cash equivalents and short-term investments, estimated fair value	266,722	286,162
Fair Value, Measurements, Recurring \| Level III
Short-term investments:
Short-term investments	0	0
Cash equivalents and short-term investments, estimated fair value	0	0
Money market funds
Cash equivalents:
Cash equivalents	89,782	55,036
Money market funds \| Fair Value, Measurements, Recurring
Cash equivalents:
Cash equivalents	89,782	55,036
Money market funds \| Fair Value, Measurements, Recurring \| Level I
Cash equivalents:
Cash equivalents	89,782	55,036
Money market funds \| Fair Value, Measurements, Recurring \| Level II
Cash equivalents:
Cash equivalents	0	0
Money market funds \| Fair Value, Measurements, Recurring \| Level III
Cash equivalents:
Cash equivalents	0	0
U.S. treasury securities
Short-term investments:
Short-term investments	61,570	125,281
U.S. treasury securities \| Fair Value, Measurements, Recurring
Short-term investments:
Short-term investments	61,570	125,281
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level I
Short-term investments:
Short-term investments	0	0
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level II
Short-term investments:
Short-term investments	61,570	125,281
U.S. treasury securities \| Fair Value, Measurements, Recurring \| Level III
Short-term investments:
Short-term investments	0	0
U.S. government agency securities
Short-term investments:
Short-term investments	97,028	64,646
U.S. government agency securities \| Fair Value, Measurements, Recurring
Short-term investments:
Short-term investments	97,028	64,646
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level I
Short-term investments:
Short-term investments	0	0
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level II
Short-term investments:
Short-term investments	97,028	64,646
U.S. government agency securities \| Fair Value, Measurements, Recurring \| Level III
Short-term investments:
Short-term investments	0	0
Corporate debt securities
Short-term investments:
Short-term investments	108,124	96,235
Corporate debt securities \| Fair Value, Measurements, Recurring
Short-term investments:
Short-term investments	108,124	96,235
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level I
Short-term investments:
Short-term investments	0	0
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level II
Short-term investments:
Short-term investments	108,124	96,235
Corporate debt securities \| Fair Value, Measurements, Recurring \| Level III
Short-term investments:
Short-term investments	$ 0	$ 0

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 108,602	$ 74,783
Less: Accumulated depreciation and amortization	(45,305)	(33,737)
Total property and equipment, net	63,297	41,046
Hosting equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	74,354	56,910
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,653	2,837
Purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,311	1,311
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	19,198	9,904
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,783	1,566
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8,303	$ 2,255

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 4,800	$ 2,700	$ 12,278	$ 7,331

Business Combinations - Narrati

Business Combinations - Narrative (Details) - CloudNeeti, Inc. - USD ($)	Apr. 16, 2020	Apr. 30, 2020
Business Acquisition [Line Items]
Purchase price	$ 8,900,000
Escrow amount	1,350,000
Goodwill, excluding recognition of deferred tax liability	5,400,000
Developed technology	3,500,000
Acquisition related costs		$ 500,000
Deferred tax liability	490,000	$ 500,000
Unvested RSUs \| Maximum
Business Acquisition [Line Items]
Earn-out RSUs, value	$ 6,000,000

Business Combinations - Fair Va

Business Combinations - Fair Value Of Assets Acquired (Details) - USD ($) $ in Thousands	Apr. 16, 2020	Apr. 30, 2020	Jul. 31, 2019
Acquired intangible assets:
Goodwill		$ 13,350	$ 7,479
Liabilities assumed:
Developed technology, estimated useful life		5 years
CloudNeeti, Inc.
Business Acquisition [Line Items]
Cash and other assets	$ 66
Acquired intangible assets:
Developed technology	3,500
Goodwill	5,871
Total	9,437
Liabilities assumed:
Deferred tax liability	(490)	$ (500)
Other liabilities	(12)
Total	(502)
Total purchase price consideration	$ 8,935
Developed technology, estimated useful life	5 years

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Apr. 30, 2020USD ($)
Goodwill [Roll Forward]
Balance as of July 31, 2019	$ 7,479
Additions	5,871
Balance as of April 30, 2020	$ 13,350

Goodwill and Acquired Intangi_4

Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019	Jul. 31, 2019
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance			$ 9,616
Additions	$ 3,500		3,500
Intangible Assets, Gross, ending balance	13,116		13,116
Accumulated Amortization, beginning balance			(908)
Amortization Expense	(600)	$ (200)	(2,062)	$ (405)
Accumulated Amortization, ending balance	(2,970)		(2,970)
Total	10,146		10,146		$ 8,708
Developed technology
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance			9,456
Additions			3,500
Intangible Assets, Gross, ending balance	12,956		12,956
Accumulated Amortization, beginning balance			(897)
Amortization Expense			(2,038)
Accumulated Amortization, ending balance	(2,935)		(2,935)
Total	10,021		10,021		8,559
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance			160
Additions			0
Intangible Assets, Gross, ending balance	160		160
Accumulated Amortization, beginning balance			(11)
Amortization Expense			(24)
Accumulated Amortization, ending balance	(35)		(35)
Total	$ 125		$ 125		$ 149

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Additions	$ 3,500		$ 3,500
Developed technology, estimated useful life	5 years
Amortization expense of acquired intangible assets	$ 600	$ 200	$ 2,062	$ 405

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2020 (remaining three months)	$ 817
2021	3,268
2022	2,660
2023	2,156
2024	721
Thereafter	524
Total	$ 10,146	$ 8,708

Operating Leases - Schedule of

Operating Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 30, 2020	Apr. 30, 2020
Lessee, Lease, Description [Line Items]
Operating lease	$ 3,497	$ 9,712
Short-term lease cost	686	1,737
Variable lease cost	821	2,373
Sublease income	(63)	(63)
Total operating lease costs	4,941	13,759
Real Estate Arrangements
Lessee, Lease, Description [Line Items]
Operating lease	1,301	3,634
Short-term lease cost	390	1,016
Variable lease cost	423	1,036
Sublease income	(63)	(63)
Total operating lease costs	2,051	5,623
Co-Location Arrangements
Lessee, Lease, Description [Line Items]
Operating lease	2,196	6,078
Short-term lease cost	296	721
Variable lease cost	398	1,337
Sublease income	0	0
Total operating lease costs	$ 2,890	$ 8,136

Operating Leases - Narrative (D

Operating Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Lessee, Lease, Description [Line Items]
Operating lease payments	$ (300)		$ (5,482)
Rent expense		$ 800		$ 2,200
Bandwidth and colocation costs		$ 3,600		$ 10,000
Operating lease, not yet commenced, amount			$ 17,500
Real Estate Arrangements
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term	5 years 3 months 18 days		5 years 3 months 18 days
Weighted discount rate	4.90%		4.90%
Co-Location Arrangements
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term	2 years 1 month 6 days		2 years 1 month 6 days
Weighted discount rate	3.10%		3.10%
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, not yet commenced, term	1 year 2 months 12 days		1 year 2 months 12 days
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, not yet commenced, term	6 years		6 years

Operating Leases - Maturities o

Operating Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Apr. 30, 2020USD ($)
Lessee, Lease, Description [Line Items]
2020 (remaining three months)	$ 3,178
2021	14,575
2022	11,738
2023	4,859
2024	3,697
Thereafter	7,262
Total future minimum lease payments	45,309
Less: Imputed interest	4,461
Total	40,848
Real Estate Arrangements
Lessee, Lease, Description [Line Items]
2020 (remaining three months)	1,100
2021	5,571
2022	4,604
2023	4,104
2024	3,697
Thereafter	7,262
Total future minimum lease payments	26,338
Less: Imputed interest	3,259
Total	23,079
Co-Location Arrangements
Lessee, Lease, Description [Line Items]
2020 (remaining three months)	2,078
2021	9,004
2022	7,134
2023	755
2024	0
Thereafter	0
Total future minimum lease payments	18,971
Less: Imputed interest	1,202
Total	$ 17,769

Operating Leases - Schedule o_2

Operating Leases - Schedule of Future Minimum Payments (Details) $ in Thousands	Jul. 31, 2019USD ($)
Real Estate Arrangements
2020	$ 4,624
2021	5,836
2022	4,871
2023	6,143
2024	6,509
Thereafter	15,977
Operating leases, total	43,960
Data Center Arrangements
2020	11,766
2021	9,890
2022	5,533
2023	106
2024	0
Thereafter	0
Other commitments, total	27,295
Total
2020	16,390
2021	15,726
2022	10,404
2023	6,249
2024	6,509
Thereafter	15,977
Total	$ 71,255

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Millions	Jan. 12, 2020USD ($)	Apr. 30, 2019USD ($)	Jan. 31, 2020USD ($)	Apr. 18, 2017claim	Apr. 30, 2020USD ($)	Jul. 31, 2019USD ($)	Jul. 31, 2018USD ($)	Jul. 31, 2017USD ($)
Loss Contingencies [Line Items]
Purchase obligation					$ 6.9	$ 2.5
Symantec Cases
Loss Contingencies [Line Items]
Complaints filed \| claim				2
Broadcom
Loss Contingencies [Line Items]
Payment for settlement	$ 15
Litigation expense			$ 15
Finjan Litigation
Loss Contingencies [Line Items]
Payment for settlement		$ 7.3
Accrued liability for potential lawsuit loss		$ 4.1					$ 0.7	$ 2.5

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020USD ($)$ / sharesshares	Apr. 30, 2019USD ($)	Apr. 30, 2020USD ($)period$ / sharesshares	Apr. 30, 2019USD ($)shares	Jul. 31, 2019USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares) \| shares	25,100,000		25,100,000
Shares available for grant (in shares) \| shares	19,700,000		19,700,000
Exercised, aggregate intrinsic value			$ 109,299
Granted (in shares) \| shares			150,000
Total stock-based compensation expense	$ 27,770	$ 13,275	$ 70,012	$ 34,088
Vesting of early exercised common stock options	131	277	393	844
Outstanding notes receivable, carrying amount		1,900		1,900
Interest receivable		200		200
Unrecognized compensation cost	278,100		$ 278,100
Unrecognized compensation cost, weighted-average			2 years 9 months 18 days
Capitalized stock-based compensation	$ 1,000		$ 3,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised, aggregate intrinsic value			$ 109,300	$ 221,800
Weighted average grant date fair value (in dollars per share) \| $ / shares			$ 22.76
Granted (in shares) \| shares				0
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Performance stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) \| shares	200,000		200,000
Total stock-based compensation expense	$ 2,500		$ 2,500
Performance shares outstanding (in shares) \| shares	500,000		500,000
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	4,700,000		4,700,000
Shares available for grant (in shares) \| shares	3,300,000		3,300,000
Duration of offering period			24 months
Number of purchases periods \| period			4
Duration of purchase periods			6 months
Shares issued (in shares) \| shares			300,000
Average purchase price per share (in dollars per share) \| $ / shares	$ 18.80		$ 18.80
Cash proceeds from the issuance of common stock			$ 5,300
Accrued compensation	$ 7,800		$ 7,800		$ 2,100
Vesting one year from vesting commencing date \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage			25.00%
Additional Paid-In Capital
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting of early exercised common stock options	$ 131	$ 277	$ 393	$ 844
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock subject to repurchase (in shares) \| shares	34,000		34,000		122,000
Shares subject to repurchase, value	$ 200		$ 200		$ 600

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Apr. 30, 2020USD ($)$ / sharesshares	Jul. 31, 2019USD ($)$ / sharesshares
Outstanding Stock Options
Beginning balance (in shares) \| shares	8,861
Granted (in shares) \| shares	150
Exercised (in shares) \| shares	(2,102)
Canceled, forfeited, expired (in shares) \| shares	(360)
Ending balance (in shares) \| shares	6,549	8,861
Exercisable and expected to vest (in shares) \| shares	3,346	3,311
Weighted-Average Exercise Price
Beginning balance (in dollars per share) \| $ / shares	$ 7.16
Granted (in dollars per share) \| $ / shares	49.59
Exercised (in dollars per share) \| $ / shares	5.97
Canceled, forfeited, expired (in dollars per share) \| $ / shares	8.27
Ending balance (in dollars per share) \| $ / shares	8.45	$ 7.16
Exercisable and expected to vest (in dollars per share) \| $ / shares	$ 6.37	$ 5.60
Additional Disclosures
Options outstanding, weighted average remaining contractual term	4 years 1 month 6 days	4 years 7 months 6 days
Exercisable and expected to vest, weighted average remaining contractual term	3 years 8 months 12 days	4 years
Options outstanding, aggregate intrinsic value \| $	$ 383,966	$ 683,294
Exercised, aggregate intrinsic value \| $	109,299
Exercisable and expected to vest, aggregate intrinsic value \| $	$ 203,145	$ 260,479

Stock-Based Compensation - Valu

Stock-Based Compensation - Valuation Assumptions (Details)	9 Months Ended
Stock-Based Compensation - Valuation Assumptions (Details)	Apr. 30, 2020	Apr. 30, 2019
Outstanding stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 6 days
Expected stock price volatility	46.10%
Risk-free interest rate	1.70%
Dividend yield	0.00%
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected stock price volatility, minimum	53.60%	44.00%
Expected stock price volatility, maximum	57.60%	61.90%
Risk-free interest rate, minimum	1.50%	2.50%
Risk-free interest rate, maximum	1.70%	2.70%
Dividend yield	0.00%	0.00%
Employee Stock \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months
Employee Stock \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years	2 years

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of RSU and PSA Activity (Details) - Restricted Stock Units and Performance Stock Awards $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Apr. 30, 2020USD ($)$ / sharesshares	Jul. 31, 2019USD ($)
Underlying Shares
Beginning balance (in shares) \| shares	4,152
Granted (in shares) \| shares	3,189
Vested (in shares) \| shares	(708)
Canceled or forfeited (in shares) \| shares	(470)
Ending balance (in shares) \| shares	6,163
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 48.51
Granted (in dollars per share) \| $ / shares	50.65
Vested (in dollars per share) \| $ / shares	41.14
Canceled or forfeited (in shares) \| $ / shares	52.34
Ending balance (in dollars per share) \| $ / shares	$ 50.17
Aggregate Intrinsic Value
Balance \| $	$ 413,408	$ 349,872
Vested \| $	$ 32,315

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 27,770	$ 13,275	$ 70,012	$ 34,088
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,614	686	4,575	1,808
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	15,119	6,459	37,101	14,777
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	6,738	4,194	17,689	11,387
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 4,299	$ 1,936	$ 10,647	$ 6,116

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019	Apr. 16, 2020
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 421	$ 636	$ 1,931	$ 1,510
CloudNeeti, Inc.
Business Acquisition [Line Items]
Deferred tax liability	$ 500		$ 500		$ 490

Net Loss Per Share Attributab_3

Net Loss Per Share Attributable to Common Stockholders - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Earnings Per Share [Abstract]
Net loss	$ (19,337)	$ (12,236)	$ (65,567)	$ (23,379)
Weighted-average shares used in computing net loss per share, basic and diluted (in shares)	129,682	124,672	128,538	122,644
Net loss per share, basic and diluted (in dollars per share)	$ (0.15)	$ (0.10)	$ (0.51)	$ (0.19)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities Excluded from Computation (Details) - shares shares in Thousands	9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	13,518	15,652
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	6,549	10,243
Shares subject to repurchase from early exercised stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	34	154
Share purchase rights under the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	772	1,354
Unvested RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	5,676	3,437
Unvested PSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	487	464

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	1 Months Ended
Subsequent Events (Details) $ in Millions	May 31, 2020USD ($)
Subsequent Event \| Edgewise Networks Inc.
Subsequent Event [Line Items]
Cash consideration	$ 31

Uncategorized Items - zs-202004

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 0
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 0