Zscaler (ZS) 10-Q 3 Jun 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Apr. 30, 2021	May 28, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2021
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		136,987,021
Entity Central Index Key	0001713683
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Current assets:
Cash and cash equivalents	$ 106,590	$ 141,851
Short-term investments	1,361,019	1,228,722
Accounts receivable, net	164,923	147,584
Deferred contract acquisition costs	44,541	32,240
Prepaid expenses and other current assets	28,428	31,396
Total current assets	1,705,501	1,581,793
Property and equipment, net	106,812	75,734
Operating lease right-of-use assets	49,727	36,119
Deferred contract acquisition costs, noncurrent	107,927	77,675
Acquired intangible assets, net	26,495	24,024
Goodwill	53,291	30,059
Other noncurrent assets	12,523	8,054
Total assets	2,062,276	1,833,458
Current liabilities:
Accounts payable	20,172	5,233
Accrued expenses and other current liabilities	16,622	16,361
Accrued compensation	61,276	49,444
Deferred revenue	445,835	337,263
Operating lease liabilities	20,974	15,600
Total current liabilities	564,879	423,901
Convertible senior notes, net	900,263	861,615
Deferred revenue, noncurrent	49,599	32,504
Operating lease liabilities, noncurrent	35,472	28,023
Other noncurrent liabilities	3,956	2,586
Total liabilities	1,554,169	1,348,629
Commitments and contingencies (Note 10)
Stockholders’ Equity
Common stock; $0.001 par value; 1,000,000 shares authorized as of April 30, 2021 and July 31, 2020; 136,895 and 132,817 shares issued and outstanding as of April 30, 2021 and July 31, 2020, respectively	137	133
Additional paid-in capital	1,027,888	823,804
Accumulated other comprehensive income	659	463
Accumulated deficit	(520,577)	(339,571)
Total stockholders’ equity	508,107	484,829
Total liabilities and stockholders’ equity	$ 2,062,276	$ 1,833,458

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2021	Jul. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	136,895,000	132,817,000
Common stock, shares outstanding (in shares)	136,895,000	132,817,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Income Statement [Abstract]
Revenue	$ 176,404	$ 110,524	$ 476,026	$ 305,382
Cost of revenue	38,977	24,579	104,839	64,375
Gross profit	137,427	85,945	371,187	241,007
Operating expenses:
Sales and marketing	115,730	67,727	323,022	188,759
Research and development	40,952	24,117	118,473	65,094
General and administrative	24,595	14,615	70,107	56,223
Total operating expenses	181,277	106,459	511,602	310,076
Loss from operations	(43,850)	(20,514)	(140,415)	(69,069)
Interest income	593	1,528	2,288	5,405
Interest expense	(13,436)	0	(39,730)	0
Other income, net	71	70	857	28
Loss before income taxes	(56,622)	(18,916)	(177,000)	(63,636)
Provision for income taxes	1,837	421	4,006	1,931
Net loss	$ (58,459)	$ (19,337)	$ (181,006)	$ (65,567)
Net loss per share, basic and diluted (in dollars per share)	$ (0.43)	$ (0.15)	$ (1.34)	$ (0.51)
Weighted-average shares used in computing net loss per share, basic and diluted (in shares)	136,385	129,682	134,938	128,538

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (58,459)	$ (19,337)	$ (181,006)	$ (65,567)
Other comprehensive income:
Unrealized net gains (losses) on available-for-sale securities	(316)	336	(658)	559
Cash flow hedges:
Change in net unrealized gains and (losses)	572	0	994	0
Net realized losses (gains) reclassified into net loss	(69)	0	(140)	0
Net change on cash flow hedges	503	0	854	0
Total	187	336	196	559
Comprehensive loss	$ (58,272)	$ (19,001)	$ (180,810)	$ (65,008)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Common stock, beginning balance (in shares) at Jul. 31, 2019		127,253
Beginning balance at Jul. 31, 2019	$ 308,558	$ 127	$ 532,618	$ 268	$ (224,455)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		2,102
Issuance of common stock upon exercise of stock options	12,554	$ 3	12,551
Issuance of common stock in connection with employee stock purchase plan (in shares)		284
Issuance of common stock in connection with employee stock purchase plan	5,334		5,334
Vesting of restricted stock units and other stock issuances (in shares)		708
Vesting of early exercised common stock options	393		393
Stock-based compensation	72,963		72,963
Other comprehensive income	559			559
Net loss	(65,567)				(65,567)
Common stock, ending balance (in shares) at Apr. 30, 2020		130,347
Ending balance at Apr. 30, 2020	334,794	$ 130	623,859	827	(290,022)
Common stock, beginning balance (in shares) at Jan. 31, 2020		129,266
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
Issuance of common stock upon exercise of stock options	5,796	$ 1	5,795
Vesting of restricted stock units and other stock issuances (in shares)		199
Vesting of early exercised common stock options	131		131
Stock-based compensation	28,704		28,704
Other comprehensive income	336			336
Net loss	(19,337)				(19,337)
Common stock, ending balance (in shares) at Apr. 30, 2020		130,347
Ending balance at Apr. 30, 2020	$ 334,794	$ 130	623,859	827	(290,022)
Common stock, beginning balance (in shares) at Jul. 31, 2020	132,817	132,817
Beginning balance at Jul. 31, 2020	$ 484,829	$ 133	823,804	463	(339,571)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	1,891	1,891
Issuance of common stock upon exercise of stock options	$ 13,910	$ 2	13,908
Issuance of common stock in connection with employee stock purchase plan (in shares)		131
Issuance of common stock in connection with employee stock purchase plan	8,563		8,563
Vesting of restricted stock units and other stock issuances (in shares)		2,056
Vesting of restricted stock units and other stock issuances	0	$ 2	(2)
Vesting of early exercised common stock options	93		93
Stock-based compensation	181,522		181,522
Other comprehensive income	196			196
Net loss	$ (181,006)				(181,006)
Common stock, ending balance (in shares) at Apr. 30, 2021	136,895	136,895
Ending balance at Apr. 30, 2021	$ 508,107	$ 137	1,027,888	659	(520,577)
Common stock, beginning balance (in shares) at Jan. 31, 2021		135,858
Beginning balance at Jan. 31, 2021	502,704	$ 136	964,214	472	(462,118)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		392
Issuance of common stock upon exercise of stock options	2,665		2,665
Vesting of restricted stock units and other stock issuances (in shares)		645
Vesting of restricted stock units and other stock issuances	0	$ 1	(1)
Vesting of early exercised common stock options	0
Stock-based compensation	61,010		61,010
Other comprehensive income	187			187
Net loss	$ (58,459)				(58,459)
Common stock, ending balance (in shares) at Apr. 30, 2021	136,895	136,895
Ending balance at Apr. 30, 2021	$ 508,107	$ 137	$ 1,027,888	$ 659	$ (520,577)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Cash Flows From Operating Activities
Net loss	$ (181,006)	$ (65,567)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	21,401	12,278
Amortization expense of acquired intangible assets	4,729	2,062
Amortization of deferred contract acquisition costs	28,577	17,673
Amortization of debt discount and issuance costs	38,648	0
Non-cash operating lease costs	15,156	9,649
Stock-based compensation expense	178,538	70,012
Amortization (accretion) of investments purchased at a premium (discount)	8,600	(463)
Deferred income taxes	(1,502)	(555)
Impairment of assets	416	746
Other	3	305
Changes in operating assets and liabilities, net of effects of business acquisitions
Accounts receivable	(20,128)	(12,218)
Deferred contract acquisition costs	(71,130)	(32,228)
Prepaid expenses, other current and noncurrent assets	1,797	(13,365)
Accounts payable	6,421	1,923
Accrued expenses, other current and noncurrent liabilities	3,008	660
Accrued compensation	11,583	12,671
Deferred revenue	128,414	49,581
Operating lease liabilities	(16,221)	(5,482)
Net cash provided by operating activities	157,304	47,682
Cash Flows From Investing Activities
Purchases of property, equipment and other assets	(34,215)	(24,793)
Capitalized internal-use software	(7,047)	(6,296)
Payments for business acquisitions, net of cash acquired	(29,420)	(8,918)
Investments in privately held companies	(2,877)	0
Purchases of short-term investments	(724,472)	(202,764)
Proceeds from maturities of short-term investments	562,744	209,225
Proceeds from sale of short-term investments	22,499	14,084
Net cash used in investing activities	(212,788)	(19,462)
Cash Flows From Financing Activities
Proceeds from issuance of common stock upon exercise of stock options	13,910	12,554
Proceeds from issuance of common stock under the employee stock purchase plan	8,563	5,334
Payment of deferred consideration related to a business acquisition	(2,250)	0
Net cash provided by financing activities	20,223	17,888
Net increase (decrease) in cash, cash equivalents and restricted cash	(35,261)	46,108
Cash, cash equivalents and restricted cash at beginning of period	141,851	78,484
Cash, cash equivalents and restricted cash at end of period	106,590	124,592
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes, net of tax refunds	3,580	1,738
Interest paid	743	0
Non-cash activities
Net change in purchased equipment included in accounts payable and accrued expenses	8,720	1,446
Operating lease right-of-use assets obtained in exchange for operating lease obligations, net of terminations	27,622	27,205
Vesting of early exercised common stock options	93	393
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets:
Total cash, cash equivalents and restricted cash	$ 106,590	$ 124,592

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	9 Months Ended
	Apr. 30, 2021
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 provider with a platform designed on a zero trust architecture. Our architecture is designed to allow users and devices to safely access authorized applications and services in the cloud using the internet as the preferred connectivity medium. Zscaler’s security and user experience solutions are purpose-built on a multi-tenant, distributed cloud exchange 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, 2020 (the "Fiscal 2020 Form 10-K"), as filed with the SEC on September 17, 2020. Interim Unaudited Condensed Consolidated Financial Statements The accompanying condensed consolidated balance sheet as of July 31, 2020 was derived from the audited consolidated financial statements as of that date. The accompanying interim condensed consolidated financial statements, including the condensed consolidated balance sheet as of April 30, 2021, the condensed consolidated statements of operations for the three and nine months ended April 30, 2021 and 2020, the condensed consolidated statements of comprehensive loss for the three and nine months ended April 30, 2021 and 2020, the condensed consolidated statements of stockholders’ equity for the three and nine months ended April 30, 2021 and 2020 and the condensed consolidated statements of cash flows for the nine months ended April 30, 2021 and 2020 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, 2021 are not necessarily indicative of the results to be expected for our fiscal year ending July 31, 2021 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, recoverability of goodwill, valuation of deferred tax assets and liabilities, loss contingencies related to litigation, fair value and effective interest rate of our convertible senior notes, valuation of strategic investments 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 condensed consolidated 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 2021, for example, refer to our fiscal year ending July 31, 2021. Significant Accounting Policies Our significant accounting policies are described in the Fiscal 2020 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, 2021 other than for derivative instruments and the adoption of new accounting guidance related to current expected credit losses effective August 1, 2020 further described below. Derivative Instruments We enter into foreign currency forward contracts, a portion of which we designate as cash flow hedges, in order to manage the volatility of cash flows that relate to our cost of revenues and operating expenses denominated in foreign currencies. Gains or losses related to our cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity (“AOCI”) until the forecasted transaction occurs in earnings. When the forecasted transaction occurs, the related gains and losses are reclassified into earnings within the financial statement line item associated with the underlying hedged transaction. If the underlying hedged transaction does not occur, or it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into earnings within the financial statement line item associated with the underlying hedged transaction. We measure hedge effectiveness using regression analysis at hedge inception and periodically thereafter. We include time value in our effectiveness assessment. We recognize changes in the fair value of non-designated derivative instruments within other income (expense), net in our condensed consolidated statement of operations in the same period that the fair value measurement occurs. All of our derivative instruments are measured at fair value and reported on a gross basis on our consolidated balance sheets. Derivatives instruments are classified in our condensed consolidated statements of cash flows as cash from operating activities, which reflect the classification of the underlying hedged transactions. Accounts Receivable and Allowance Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of an allowance for doubtful accounts. We have a well-established collections history from our customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. In determining the necessary allowance for doubtful accounts, we estimate the lifetime expected credit losses against the existing accounts receivable balance. Our estimate is based on certain factors including historical loss rates, current economic conditions, reasonable and supportable forecasts and customer-specific circumstances. The allowance for doubtful accounts has historically not been material. There were no material write-offs recognized in the periods presented. Accordingly, the movements in the allowance for doubtful accounts were not material for any of the periods presented. We do not have any off-balance-sheet credit exposure related to our customers . Cash Equivalents and Short-Term Investments We classify all highly liquid investments purchased with an original maturity of 90 days or less from the date of purchase as cash equivalents and all highly liquid investments with original maturities beyond 90 days at the time of purchase as short-term investments. Our cash equivalents and short-term investments consist of highly liquid investments in money market funds, U.S. treasury securities, U.S. government agency securities and corporate debt securities. We classify our investments as available-for-sale investments and present them within current assets since these investments represent funds available for current operations and we have the ability and intent, if necessary, to liquidate any of these investments in order to meet our liquidity needs or to grow our business, including for potential business acquisitions or other strategic transactions. Our investments are carried at fair value, with unrealized gains and losses unrelated to credit loss factors reported in AOCI. Our investments are reviewed periodically when there is a decline in a security’s fair value below the amortized cost basis. We consider our intent to sell and whether it is more likely than not that the we will be required to sell the securities before the recovery of its cost basis. If either of these criteria are triggered, the amortized cost basis of the debt security is written down to fair value through other income (expense), net. If neither criteria is met, we evaluate whether the decline in fair value below the amortized cost basis is related to credit-related factors or other factors such as interest rate fluctuations. The factors considered in this analysis include the extent the fair value is less than the amortized cost basis, whether there were changes to the rating of the security by a ratings agency, whether the issuer has failed to make scheduled interest payments and other adverse conditions as applicable. Credit-related impairment losses, limited by the amount that the fair value is less than the amortized cost basis, are recorded through an allowance for credit losses in other income (expense), net. For purposes of identifying and measuring credit-related impairments, our policy is to exclude the applicable accrued interest from both the fair value and amortized cost basis of the related debt security. Accrued interest, net of the allowance for credit losses, if any, is recorded to prepaid expenses and other current assets. There were no credit-related impairments recognized on our investments during the periods presented. Interest income, amortization (accretion) of investments purchased at a premium (discount) and realized gains and losses are included in interest income in the condensed consolidated statements of operations. We use the specific identification method to determine the cost in calculating realized gains and losses upon the sale of these investments. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("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 adopted this standard as of August 1, 2020, and it did not have a material impact to our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). This standard eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. For public business entities, it is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years using the fully retrospective or modified retrospective method. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the potential impact of this standard on our condensed consolidated financial statements.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Apr. 30, 2021
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 97% and 98% of our revenue for the three months ended April 30, 2021 and 2020, respectively, and approximately 97% and 98% of our revenue for the nine months ended April 30, 2021 and 2020, 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, 2021 2020 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except per percentage data) United States $ 85,678 49 % $ 53,741 49 % $ 233,379 49 % $ 149,315 49 % Europe, Middle East and Africa (*) 66,461 38 % 44,756 40 % 181,108 38 % 124,047 40 % Asia Pacific 20,523 11 % 9,992 9 % 51,500 11 % 26,638 9 % Other 3,742 2 % 2,035 2 % 10,039 2 % 5,382 2 % Total $ 176,404 100 % $ 110,524 100 % $ 476,026 100 % $ 305,382 100 % (*) Revenue from the United Kingdom ("U.K.") represented 10% of our revenue for each of the three months ended April 30, 2021 and 2020, and 10% of our revenue for each of the nine months ended April 30, 2021 and 2020, respectively. Revenue from Germany represented 9% and 10% of our revenue for the three months ended April 30, 2021 and 2020, respectively, and 10% and 9% of our revenue for the nine months ended April 30, 2021 and 2020, respectively. The following table summarizes the revenue from contracts by type of customer: Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except per percentage data) Channel partners $ 165,969 94 % $ 106,942 97 % $ 446,750 94 % $ 295,316 97 % Direct customers 10,435 6 % 3,582 3 % 29,276 6 % 10,066 3 % Total $ 176,404 100 % $ 110,524 100 % $ 476,026 100 % $ 305,382 100 % Significant Customers No single customer accounted for 10% or more of our revenue for the three and nine months ended April 30, 2021 and 2020. The following table summarizes 10% or more of the total balance of accounts receivable, net: April 30, 2021 July 31, 2020 Channel partner A * 11% (*) 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, 2021 and 2020, we recognized revenue of $298.5 million and $193.7 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 activity of the deferred contract acquisition costs consisted of the following: Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Beginning balance $ 134,946 $ 74,050 $ 109,915 $ 69,785 Capitalization of contract acquisition costs 27,976 16,538 71,130 32,228 Amortization of deferred contract acquisition costs (10,454) (6,248) (28,577) (17,673) Ending balance $ 152,468 $ 84,340 $ 152,468 $ 84,340 The outstanding balance of the deferred contract acquisition costs consisted of the following: April 30, 2021 July 31, 2020 (in thousands) Deferred contract acquisition costs, current $ 44,541 $ 32,240 Deferred contract acquisition costs, noncurrent 107,927 77,675 Total deferred contract acquisition costs $ 152,468 $ 109,915 Sales commissions accrued but not paid as of April 30, 2021 and July 31, 2020, totaled $19.1 million and $21.0 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
	Apr. 30, 2021
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, 2021: Amortized Unrealized Unrealized Fair Value (in thousands) Cash equivalents: Money market funds $ 32,414 $ — $ — $ 32,414 Short-term investments: U.S. treasury securities $ 380,211 $ 25 $ (12) $ 380,224 U.S. government agency securities 677,962 108 (203) 677,867 Corporate debt securities 302,924 151 (147) 302,928 Total short-term investments $ 1,361,097 $ 284 $ (362) $ 1,361,019 Total cash equivalents and short-term investments $ 1,393,511 $ 284 $ (362) $ 1,393,433 Cash equivalents and short-term investments consisted of the following as of July 31, 2020: Amortized Unrealized Unrealized Fair Value Cash equivalents: (in thousands) Money market funds $ 51,690 $ — $ — $ 51,690 U.S. treasury securities 39,997 — (1) 39,996 U.S. government agency securities 14,997 — — 14,997 Total cash equivalents $ 106,684 $ — $ (1) $ 106,683 Short-term investments: U.S. treasury securities $ 415,539 $ 152 $ (127) $ 415,564 U.S. government agency securities 595,725 186 (114) 595,797 Corporate debt securities 216,879 569 (87) 217,361 Total short-term investments $ 1,228,143 $ 907 $ (328) $ 1,228,722 Total cash equivalents and short-term investments $ 1,334,827 $ 907 $ (329) $ 1,335,405 The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of April 30, 2021: Amortized Fair Value (in thousands) Due within one year $ 841,863 $ 842,057 Due between one to two years 519,234 518,962 Total $ 1,361,097 $ 1,361,019 Short-term investments that were in an unrealized loss position as of April 30, 2021 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 $ 98,024 $ (12) $ — $ — $ 98,024 $ (12) U.S. government agency securities 364,013 (203) 3,000 — 367,013 (203) Corporate debt securities 179,450 (147) 1,000 — 180,450 (147) Total $ 641,487 $ (362) $ 4,000 $ — $ 645,487 $ (362) Short-term investments that were in an unrealized loss position as of July 31, 2020 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 $ 347,959 $ (127) $ — $ — $ 347,959 $ (127) U.S. government agency securities 340,503 (113) 5,502 (1) 346,005 (114) Corporate debt securities 105,953 (87) — — 105,953 (87) Total $ 794,415 $ (327) $ 5,502 $ (1) $ 799,917 $ (328) We review the individual securities that have unrealized losses in our short-term investment portfolio on a regular basis. 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. Neither of these criteria were met in any period presented. We additionally evaluate whether the decline in fair value of the security below its amortized cost basis is related to credit losses or other factors. Based on this evaluation, we determined that unrealized losses of the above securities were primarily attributable to changes in interest rates and non credit-related factors. Accordingly, we determined that an allowance for credit losses was unnecessary for our short-term investments as of April 30, 2021 and July 31, 2020. We recorded $3.7 million and $3.8 million of accrued interest receivable within prepaid expenses and other current assets in our condensed consolidated balance sheets as of April 30, 2021 and July 31, 2020, respectively. Strategic Investments During the three months ended April 30, 2021, we invested an additional $2.9 million in non-marketable equity securities of privately held companies which do not have a readily determinable fair value. These investments are accounted for under the cost method as we have less than 20% ownership of these privately held companies and do not have the ability to exercise significant influence over their operations.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Apr. 30, 2021
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), as well as our assets and liabilities arising from our foreign currency forward contracts, are classified within Level II. The fair value of our Level II financial assets and liabilities is determined 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, for substantially the full term of the financial assets and liabilities. Assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of April 30, 2021: 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 $ 32,414 $ 32,414 $ — $ — Short-term investments: U.S. treasury securities $ 380,224 $ — $ 380,224 $ — U.S. government agency securities 677,867 — 677,867 — Corporate debt securities 302,928 — 302,928 — Total short-term investments $ 1,361,019 $ — $ 1,361,019 $ — Total cash equivalents and short-term investments $ 1,393,433 $ 32,414 $ 1,361,019 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 958 $ — $ 958 $ — Foreign currency contract assets-noncurrent (3) $ 120 $ — $ 120 $ — Foreign currency contracts liabilities-current (2) $ 189 $ — $ 189 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 114 $ — $ 114 $ — Foreign currency contracts liabilities-current (2) $ 16 $ — $ 16 $ — (1) Reported as prepaid expenses and other current assets in the condensed consolidated balance sheets. (2) Reported as accrued expenses and other current liabilities in the condensed consolidated balance sheets. (3) Reported as other noncurrent assets in the condensed consolidated balance sheets. Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 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 $ 51,690 $ 51,690 $ — $ — U.S. treasury securities 39,996 — 39,996 — U.S. government agency securities 14,997 — 14,997 — Total cash equivalents $ 106,683 $ 51,690 $ 54,993 $ — Short-term investments: U.S. treasury securities $ 415,564 $ — $ 415,564 $ — U.S. government agency securities 595,797 — 595,797 — Corporate debt securities 217,361 — 217,361 — Total short-term investments $ 1,228,722 $ — $ 1,228,722 $ — Total cash equivalents and short-term investments $ 1,335,405 $ 51,690 $ 1,283,715 $ — We did not have transfers between levels of the fair value hierarchy of assets measured at fair value during the periods presented. Refer to Note 9, Convertible Senior Notes, for the carrying amount and estimated fair value of our convertible senior notes as of April 30, 2021.

Property and Equipment

Property and Equipment	9 Months Ended
	Apr. 30, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: April 30, 2021 July 31, 2020 (in thousands) Hosting equipment $ 126,895 $ 87,418 Computers and equipment 5,260 3,875 Purchased software 1,311 1,311 Capitalized internal-use software 34,249 23,081 Furniture and fixtures 1,019 1,965 Leasehold improvements 7,207 8,712 Total property and equipment, gross 175,941 126,362 Less: Accumulated depreciation and amortization (69,129) (50,628) Total property and equipment, net $ 106,812 $ 75,734 We recognized depreciation and amortization expense on property and equipment of $8.1 million and $4.8 million for the three months ended April 30, 2021 and 2020, respectively, and $21.4 million and $12.3 million for the nine months ended April 30, 2021 and 2020, respectively.

Business Combinations

Business Combinations	9 Months Ended
	Apr. 30, 2021
Business Combinations [Abstract]
Business Combinations	Business Combinations Trustdome Limited On April 15, 2021 (the "Closing Date"), we acquired all the outstanding shares of Trustdome Limited (“Trustdome”), a technology company located in Israel. Trustdome is a leading innovator in Cloud Infrastructure Entitlement Management (CIEM), which we plan to integrate with our existing Cloud Security Posture Management (CSPM) offering and provide a comprehensive solution for reducing public cloud attack surfaces and improving security posture. With this acquisition, we also have expanded our global footprint with our first development center in Israel. Pursuant to the terms of the purchase agreement, the aggregate purchase price was approximately $31.1 million in cash. Additionally, certain of Trustdome's employees who became our employees are entitled to receive deferred merger consideration payable in the form of shares of our authorized common stock and restricted stock units. These awards are subject to 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 asset as of the Closing Date, in order to allocate the purchase price consideration. The purchase price allocation resulted in the recognition of $23.2 million of goodwill and $7.2 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 $0.4 million of acquisition related costs, which were recorded as general and administrative expenses in the three months ended April 30, 2021. The acquisition qualified as a stock transaction for tax purposes. As a result, we recognized a deferred tax liability for approximately $0.6 million, generated primarily from the difference between the tax basis and fair value of the acquired developed technology, which increased goodwill by the same amount. The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 1,611 Acquired intangible assets: Developed technology 7,200 5 years Goodwill 23,232 Total $ 32,043 Less Liabilities assumed: Other liabilities $ 277 Deferred tax liability 624 Total $ 901 Total purchase price consideration $ 31,142 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 after the acquisition date, were not material for disclosure purposes.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Apr. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments We implemented a foreign currency risk management program during the three months ended January 31, 2021. As a global business, we are exposed to foreign currency exchange rate risk. Substantially all of our revenue is transacted in U.S. dollars; however, a portion of our cost of revenues and operating expenditures are incurred outside of the United States and are denominated in foreign currencies, making them subject to fluctuations in foreign currency exchange rates. In order to mitigate the impact of foreign currency fluctuations on our future cash flows and earnings, we enter into foreign currency forward contracts, which we designate as cash flow hedges. All cash flow hedges were considered effective during the three months ended April 30, 2021. As of April 30, 2021, the total notional amount of our outstanding foreign currency forward contracts was $107.4 million for designated and $13.7 million for non-designated foreign currency forward contracts. The maximum length of time over which forecasted foreign currency denominated operating expenses are hedged is 15 months. Substantially all of the unrealized gains and losses related to our cash flow hedges are expected to be released into earnings over the next 12 months. Refer to Note 4, Fair Value Measurements, for the fair value of our derivative instruments as reported on our condensed consolidated balance sheet as of April 30, 2021. During the three and nine months ended April 30, 2021, the unrealized gains and losses related to our cash flow hedges that were recognized in AOCI and the gains and losses reclassified into the condensed consolidated statement of operations were not material. During the three and nine months ended April 30, 2021, changes in the fair value of our non-designated derivative instruments recorded in other income, net within the condensed consolidated statement of operations were not material. Our derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the underlying contracts. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and standards. We periodically assess the creditworthiness of our counterparties to ensure they continue to meet our credit quality requirements. We also enter into master netting arrangements, which permit net settlement of transactions with the

Goodwill and Acquired Intangibl

Goodwill and Acquired Intangible Assets	9 Months Ended
	Apr. 30, 2021
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, 2020 $ 30,059 Goodwill acquired 23,232 Balance as of April 30, 2021 $ 53,291 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, 2021 and July 31, 2020: Gross Carrying Amount Accumulated Amortization Net Carrying Amount July 31, 2020 Additions April 30, 2021 July 31, 2020 Amortization Expense April 30, 2021 April 30, 2021 July 31, 2020 (in thousands) Developed technology $ 26,856 $ 7,200 $ 34,056 $ (4,206) $ (4,510) $ (8,716) $ 25,340 $ 22,650 Customer relationships 1,460 — 1,460 (86) (219) (305) 1,155 1,374 Total $ 28,316 $ 7,200 $ 35,516 $ (4,292) $ (4,729) $ (9,021) $ 26,495 $ 24,024 In April 2021, in connection with the acquisition of Trustdome, we acquired developed technology with a fair value of $7.2 million and an estimated useful life of 5.0 years. For further information refer to Note 6, Business Combinations. Amortization expense of acquired intangible assets for the three and nine months ended April 30, 2021 was $1.6 million and $4.7 million, respectively. 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 developed technology is recorded primarily within cost of revenue and research and development in the condensed consolidated statements of operations. Amortization expense of customer relationships is recorded within sales and marketing expenses in the condensed consolidated statements of operations. Future amortization expense of acquired intangible assets consisted of the following as of April 30, 2021: Amount Year ending July 31, (in thousands) 2021 (remaining three months) $ 1,937 2022 7,138 2023 6,641 2024 5,201 2025 4,498 Thereafter 1,080 Total $ 26,495

Convertible Senior Notes

Convertible Senior Notes	9 Months Ended
	Apr. 30, 2021
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes On June 25, 2020, we issued $1,150.0 million in aggregate principal amount of 0.125% Convertible Senior Notes due 2025 (the “Notes”), including the exercise in full by the initial purchasers of the Notes of their option to purchase an additional $150.0 million principal amount of the Notes. The Notes bear interest at a rate of 0.125% per year and interest is payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2021. The Notes mature on July 1, 2025, unless earlier converted, redeemed or repurchased. The total net proceeds from the offering, after deducting initial purchase discounts and other debt issuance costs, was $1,130.5 million. The Notes are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by us or any of our subsidiaries. The following table presents details of the Notes: Initial Conversion Rate per $1,000 Principal Initial Conversion Price Initial Number of Shares (in thousands) Notes 6.6315 shares $ 150.80 7,626 The Notes are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding April 1, 2025, only under the following circumstances: • During any fiscal quarter commencing after the fiscal quarter ending on October 31, 2020 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day; • During the five five • If we call any or all of the Notes for redemption, the Notes called for redemption (or, at our election, all Notes) may be submitted for conversion at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • Upon the occurrence of specified corporate events as set forth within the indenture governing the Notes. On or after April 1, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert, all or any portion of their Notes at any time, in multiples of $1,000 principal amount, at their option regardless of the foregoing circumstances. Upon conversion, we will satisfy the conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle the principal amount of the Notes in cash. During the three months ended April 30, 2021, none of the Notes have been converted. During the three months ended April 30, 2021, the conditions allowing holders of the Notes to convert were not met. The notes are classified as a noncurrent liability in our condensed consolidated balance sheet as of April 30, 2021. We may not redeem the Notes prior to July 5, 2023. On or after July 5, 2023, and prior to the 21st scheduled trading day immediately preceding the maturity date, we may redeem for cash all or any portion of the Notes, at our option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. If we redeem less than all the outstanding Notes, and only Notes called for redemption may be converted in connection with such partial redemption, at least $100.0 million aggregate principal amount of Notes must be outstanding and not subject to such partial redemption as of the relevant redemption notice date. In the event of a corporate event that constitutes a “fundamental change (as defined in the indenture),” holders of the Notes may require us to purchase with cash all or any portion of the Notes upon the occurrence of a fundamental change, at a purchase price equal to 100% of the principal amount of the Notes plus any accrued and unpaid interest, if any. In addition, following certain corporate events that occur prior to the maturity date or if we issue a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or notice of redemption, as the case may be. In accounting for the issuance of the Notes and the related transaction costs, we separated the Notes into liability and equity components. The carrying amount of the liability component was initially calculated by measuring the fair value of similar liabilities that do not have associated convertible features utilizing the interest rate of 5.75%. The carrying amount of the equity component representing the conversion option was $278.5 million and was determined by deducting the fair value of the liability component from the par value of the Notes. This difference represents the debt discount that is amortized to interest expense over the term of the Notes using the effective interest rate method. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. Total issuance costs of $19.5 million related to the Notes were allocated between liability, totaling $14.8 million, and equity, totaling $4.7 million, in the same proportion as the allocation of the total proceeds to the liability and equity components. Issuance costs attributable to the liability component are being amortized to interest expense over the term of the Notes. The excess of the principal amount of the liability component over its carrying amount is amortized to interest expense over the contractual term of the Notes at an effective interest rate of 6.03%. The issuance costs attributable to the equity component were netted against additional paid-in capital. The amount recorded for the equity component of the Notes was $273.4 million, net of allocated issuance costs of $4.7 million and deferred tax impact of $0.4 million. The net carrying amount of the liability component of the Notes is as follows: April 30, 2021 July 31, 2020 (in thousands) Principal amount $ 1,150,000 $ 1,150,000 Less: Unamortized debt discount 237,132 273,829 Unamortized debt issuance costs 12,605 14,556 Net carrying amount $ 900,263 $ 861,615 The following table sets forth total interest expense recognized related to the Notes: Three Months Ended April 30, 2021 Nine Months Ended April 30, 2021 (in thousands) Contractual interest expense $ 360 $ 1,082 Amortization of debt discount 12,416 36,697 Amortization of debt issuance costs 660 1,951 Total $ 13,436 $ 39,730 The total fair value of the Notes was $1,587.0 million as of April 30, 2021. The fair value was determined based on the closing trading price per $1,000 of the Notes as of the last day of trading for the period. We consider the fair value of the Notes as of April 30, 2021 to be a Level II measurement as they are not actively traded. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. Capped Calls In connection with the pricing of the Notes, we entered into capped call transactions with the option counterparties (the "Capped Calls"). The Capped Calls each have an initial strike price of $150.80 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have an initial cap price of $246.76 per share, subject to certain adjustments. The capped call transactions are generally expected to reduce potential dilution to our common stock upon any conversion of the Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap. The Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting us, including merger events, tender offers and the announcement of such events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As the Capped Calls qualify for a scope exception from derivative accounting for instruments that are both indexed to the issuer's own stock and classified in stockholder's equity in its statement of financial position, the premium of $145.2 million paid for the purchase of the Capped Calls in June 2020 was recorded as a reduction to additional paid-in capital and will not be remeasured. As of April 30, 2021, we have not exercised any Capped Call options.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Apr. 30, 2021
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 and marketing events and consulting services. During the nine months ended April 30, 2021, there have been no material changes outside the ordinary course of business to our non-cancelable purchase commitments from those disclosed in our Fiscal 2020 Form 10-K. Legal Matters Symantec Litigation On January 12, 2020, we entered into a settlement and patent license agreement with CA, Inc., an affiliate of Broadcom, Inc. (“Broadcom”), pursuant to which two separate complaints filed by Symantec Corporation in December 2016 and April 2017 ("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, which had acquired the rights, titles and interests in the patents asserted in the complaints, 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 condensed consolidated statement of operations for the nine months ended April 30, 2020. Other Litigation and Claims We are a party to various litigation matters from time to time 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. 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
	Apr. 30, 2021
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, 2021, a total of 31.7 million shares of common stock have been reserved for the issuance of equity awards under the 2018 Plan, of which 21.5 million shares were available for grant. Stock Options The stock option activity consisted of the following for the nine months ended April 30, 2021: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2020 5,175 $ 8.90 4.0 $ 625,904 Granted — — Exercised (1,891) 7.36 307,650 Canceled, forfeited or expired (100) 7.99 Balance as of April 30, 2021 3,184 $ 9.85 3.4 $ 566,188 Exercisable and expected to vest as of July 31, 2020 2,546 $ 6.46 3.5 $ 314,111 Exercisable and expected to vest as of April 30, 2021 2,073 $ 7.94 3.1 $ 372,536 The aggregate intrinsic value of the options exercised represents the difference between the 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, 2021 and 2020 was $307.7 million and $109.3 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, 2021. 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-year vesting period, with 25% of the shares vesting approximately one year from the vesting commencing date and quarterly thereafter over the remaining vesting term. 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, 2021, there were 0.6 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, 2021 and have been excluded from the table below. The activity of RSUs and PSAs consisted of the following for the nine months ended April 30, 2021: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2020 8,553 $ 60.72 $ 1,110,694 Granted 2,533 169.21 Vested (2,026) 58.64 337,694 Canceled or forfeited (609) 64.46 Balance as of April 30, 2021 8,451 $ 93.47 $ 1,585,808 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, 2021, a total of 6.0 million shares of common stock have been reserved for issuance under the ESPP, of which 3.9 million shares were available for grant. 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. ESPP employee payroll contributions accrued as of April 30, 2021 and July 31, 2020 were $14.3 million and $3.5 million, respectively, and are included within accrued compensation in the condensed consolidated balance sheets. Payroll contributions accrued as of April 30, 2021 will be used to purchase shares at the end of the current ESPP purchase period ending on June 15, 2021. Payroll contributions ultimately used to purchase shares are reclassified to stockholders' equity on the purchase date. The fair value of the purchase right for the ESPP is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Nine Months Ended April 30, 2021 2020 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Expected stock price volatility 61.1% - 67.4% 53.6% - 57.6% Risk-free interest rate 0.1% 1.5% - 1.7% Dividend yield 0.0% 0.0% Deferred Merger Consideration In connection with the acquisition of Trustdome, as further described in Note 6, Business Acquisitions, certain former employees who became our employees are entitled to receive a deferred merger consideration payable in shares of our authorized common stock and RSUs. The fair value of these awards totaled approximately $10.1 million as of the Closing Date. These awards are subject to time-based vesting and will be recognized as stock-based compensation expense on a straight-line basis over the vesting period within research and development expenses in our consolidated statements of operations . 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, 2021 2020 2021 2020 (in thousands) Cost of revenue $ 3,360 $ 1,614 $ 9,461 $ 4,575 Sales and marketing 31,937 15,119 93,338 37,101 Research and development 13,434 6,738 43,919 17,689 General and administrative 11,242 4,299 31,820 10,647 Total $ 59,973 $ 27,770 $ 178,538 $ 70,012 As of April 30, 2021, 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 $734.7 million, which we expect to be amortized over a weighted-average period of 2.9 years. During the three months ended April 30, 2021 and 2020, we capitalized $1.5 million and $1.0 million, respectively, and during the nine months ended April 30, 2021 and 2020, we capitalized $4.1 million and $3.0 million, respectively, of stock-based compensation associated with the development of software for internal-use.

Income Taxes

Income Taxes	9 Months Ended
	Apr. 30, 2021
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 United States. We recorded a provision for income taxes of $1.8 million and $0.4 million for the three months ended April 30, 2021 and 2020, respectively, and $4.0 million and $1.9 million for the nine months ended April 30, 2021 and 2020, respectively. We are subject to income tax in the United States 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. 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
	Apr. 30, 2021
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 2021 2020 2021 2020 (in thousands) Net loss $ (58,459) $ (19,337) $ (181,006) $ (65,567) Weighted-average shares used in computing net loss per share, basic and diluted 136,385 129,682 134,938 128,538 Net loss per share, basic and diluted $ (0.43) $ (0.15) $ (1.34) $ (0.51) 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, the 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, 2021 2020 (in thousands) Unvested RSUs and shares of common stock 8,122 5,710 Stock options 3,184 6,549 Unvested PSAs (1) 569 487 Share purchase rights under the ESPP 475 772 Convertible senior notes (2) 7,626 — Total 19,976 13,518 (1) The number of unvested PSAs is estimated at 100% of the target number of shares granted and excludes unvested PSAs for which performance conditions have not been established as of April 30, 2021, as they are not considered outstanding for accounting purposes. Refer to Note 11, Stock-Based Compensation, for further information. (2)

Subsequent Events

Subsequent Events	9 Months Ended
	Apr. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In June 2021, we completed the acquisition of Smokescreen Technologies Private Limited, an active defense and deception technology company, for which we paid approximately $11.5 million in cash. We plan to integrate Smokescreen's technology into Zscaler Zero Trust Exchange™ platform, further building upon our ability to enhance the detection of sophisticated, highly targeted attacks, ransomware and lateral movement attempts. 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, 2021
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, 2020 (the "Fiscal 2020 Form 10-K"), as filed with the SEC on September 17, 2020.
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, recoverability of goodwill, valuation of deferred tax assets and liabilities, loss contingencies related to litigation, fair value and effective interest rate of our convertible senior notes, valuation of strategic investments 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 condensed consolidated 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 2021, for example, refer to our fiscal year ending July 31, 2021.
Derivative Instruments	Derivative Instruments We enter into foreign currency forward contracts, a portion of which we designate as cash flow hedges, in order to manage the volatility of cash flows that relate to our cost of revenues and operating expenses denominated in foreign currencies. Gains or losses related to our cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity (“AOCI”) until the forecasted transaction occurs in earnings. When the forecasted transaction occurs, the related gains and losses are reclassified into earnings within the financial statement line item associated with the underlying hedged transaction. If the underlying hedged transaction does not occur, or it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into earnings within the financial statement line item associated with the underlying hedged transaction. We measure hedge effectiveness using regression analysis at hedge inception and periodically thereafter. We include time value in our effectiveness assessment. We recognize changes in the fair value of non-designated derivative instruments within other income (expense), net in our condensed consolidated statement of operations in the same period that the fair value measurement occurs.
Accounts Receivable and Allowance	Accounts Receivable and Allowance Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of an allowance for doubtful accounts. We have a well-established collections history from our customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. In determining the necessary allowance for doubtful accounts, we estimate the lifetime expected credit losses against the existing accounts receivable balance. Our estimate is based on certain factors including historical loss rates, current economic conditions, reasonable and supportable forecasts and customer-specific circumstances. The allowance for doubtful accounts has historically not been material. There were no material write-offs recognized in the periods presented. Accordingly, the movements in the allowance for doubtful accounts were not material for any of the periods presented. We do not have any off-balance-sheet credit exposure related to our customers .
Cash Equivalents	We classify all highly liquid investments purchased with an original maturity of 90 days or less from the date of purchase as cash equivalents and all highly liquid investments with original maturities beyond 90 days at the time of purchase as short-term investments. Our cash equivalents and short-term investments consist of highly liquid investments in money market funds, U.S. treasury securities, U.S. government agency securities and corporate debt securities.
Short-Term Investments	We classify our investments as available-for-sale investments and present them within current assets since these investments represent funds available for current operations and we have the ability and intent, if necessary, to liquidate any of these investments in order to meet our liquidity needs or to grow our business, including for potential business acquisitions or other strategic transactions. Our investments are carried at fair value, with unrealized gains and losses unrelated to credit loss factors reported in AOCI. Our investments are reviewed periodically when there is a decline in a security’s fair value below the amortized cost basis. We consider our intent to sell and whether it is more likely than not that the we will be required to sell the securities before the recovery of its cost basis. If either of these criteria are triggered, the amortized cost basis of the debt security is written down to fair value through other income (expense), net. If neither criteria is met, we evaluate whether the decline in fair value below the amortized cost basis is related to credit-related factors or other factors such as interest rate fluctuations. The factors considered in this analysis include the extent the fair value is less than the amortized cost basis, whether there were changes to the rating of the security by a ratings agency, whether the issuer has failed to make scheduled interest payments and other adverse conditions as applicable. Credit-related impairment losses, limited by the amount that the fair value is less than the amortized cost basis, are recorded through an allowance for credit losses in other income (expense), net. For purposes of identifying and measuring credit-related impairments, our policy is to exclude the applicable accrued interest from both the fair value and amortized cost basis of the related debt security. Accrued interest, net of the allowance for credit losses, if any, is recorded to prepaid expenses and other current assets. There were no credit-related impairments recognized on our investments during the periods presented. Interest income, amortization (accretion) of investments purchased at a premium (discount) and realized gains and losses are included in interest income in the condensed consolidated statements of operations. We use the specific identification method to determine the cost in calculating realized gains and losses upon the sale of these investments.
Recently Adopted Accounting Pronouncements; Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("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 adopted this standard as of August 1, 2020, and it did not have a material impact to our condensed consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). This standard eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. For public business entities, it is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years using the fully retrospective or modified retrospective method. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the potential impact of this standard on our condensed consolidated financial statements.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Apr. 30, 2021
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, 2021 2020 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except per percentage data) United States $ 85,678 49 % $ 53,741 49 % $ 233,379 49 % $ 149,315 49 % Europe, Middle East and Africa (*) 66,461 38 % 44,756 40 % 181,108 38 % 124,047 40 % Asia Pacific 20,523 11 % 9,992 9 % 51,500 11 % 26,638 9 % Other 3,742 2 % 2,035 2 % 10,039 2 % 5,382 2 % Total $ 176,404 100 % $ 110,524 100 % $ 476,026 100 % $ 305,382 100 % (*) Revenue from the United Kingdom ("U.K.") represented 10% of our revenue for each of the three months ended April 30, 2021 and 2020, and 10% of our revenue for each of the nine months ended April 30, 2021 and 2020, respectively. Revenue from Germany represented 9% and 10% of our revenue for the three months ended April 30, 2021 and 2020, respectively, and 10% and 9% of our revenue for the nine months ended April 30, 2021 and 2020, respectively. The following table summarizes the revenue from contracts by type of customer: Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 Amount % Revenue Amount % Revenue Amount % Revenue Amount % Revenue (in thousands, except per percentage data) Channel partners $ 165,969 94 % $ 106,942 97 % $ 446,750 94 % $ 295,316 97 % Direct customers 10,435 6 % 3,582 3 % 29,276 6 % 10,066 3 % Total $ 176,404 100 % $ 110,524 100 % $ 476,026 100 % $ 305,382 100 %
Schedule of Accounts Receivable	The following table summarizes 10% or more of the total balance of accounts receivable, net: April 30, 2021 July 31, 2020 Channel partner A * 11% (*) Represents less than 10%.
Capitalized Contract Cost	The activity of the deferred contract acquisition costs consisted of the following: Three Months Ended April 30, Nine Months Ended April 30, 2021 2020 2021 2020 (in thousands) Beginning balance $ 134,946 $ 74,050 $ 109,915 $ 69,785 Capitalization of contract acquisition costs 27,976 16,538 71,130 32,228 Amortization of deferred contract acquisition costs (10,454) (6,248) (28,577) (17,673) Ending balance $ 152,468 $ 84,340 $ 152,468 $ 84,340 The outstanding balance of the deferred contract acquisition costs consisted of the following: April 30, 2021 July 31, 2020 (in thousands) Deferred contract acquisition costs, current $ 44,541 $ 32,240 Deferred contract acquisition costs, noncurrent 107,927 77,675 Total deferred contract acquisition costs $ 152,468 $ 109,915

Cash Equivalents and Short-Te_2

Cash Equivalents and Short-Term Investments (Tables)	9 Months Ended
	Apr. 30, 2021
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, 2021: Amortized Unrealized Unrealized Fair Value (in thousands) Cash equivalents: Money market funds $ 32,414 $ — $ — $ 32,414 Short-term investments: U.S. treasury securities $ 380,211 $ 25 $ (12) $ 380,224 U.S. government agency securities 677,962 108 (203) 677,867 Corporate debt securities 302,924 151 (147) 302,928 Total short-term investments $ 1,361,097 $ 284 $ (362) $ 1,361,019 Total cash equivalents and short-term investments $ 1,393,511 $ 284 $ (362) $ 1,393,433 Cash equivalents and short-term investments consisted of the following as of July 31, 2020: Amortized Unrealized Unrealized Fair Value Cash equivalents: (in thousands) Money market funds $ 51,690 $ — $ — $ 51,690 U.S. treasury securities 39,997 — (1) 39,996 U.S. government agency securities 14,997 — — 14,997 Total cash equivalents $ 106,684 $ — $ (1) $ 106,683 Short-term investments: U.S. treasury securities $ 415,539 $ 152 $ (127) $ 415,564 U.S. government agency securities 595,725 186 (114) 595,797 Corporate debt securities 216,879 569 (87) 217,361 Total short-term investments $ 1,228,143 $ 907 $ (328) $ 1,228,722 Total cash equivalents and short-term investments $ 1,334,827 $ 907 $ (329) $ 1,335,405
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, 2021: Amortized Fair Value (in thousands) Due within one year $ 841,863 $ 842,057 Due between one to two years 519,234 518,962 Total $ 1,361,097 $ 1,361,019
Schedule of Unrealized Loss on Investments	Short-term investments that were in an unrealized loss position as of April 30, 2021 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 $ 98,024 $ (12) $ — $ — $ 98,024 $ (12) U.S. government agency securities 364,013 (203) 3,000 — 367,013 (203) Corporate debt securities 179,450 (147) 1,000 — 180,450 (147) Total $ 641,487 $ (362) $ 4,000 $ — $ 645,487 $ (362) Short-term investments that were in an unrealized loss position as of July 31, 2020 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 $ 347,959 $ (127) $ — $ — $ 347,959 $ (127) U.S. government agency securities 340,503 (113) 5,502 (1) 346,005 (114) Corporate debt securities 105,953 (87) — — 105,953 (87) Total $ 794,415 $ (327) $ 5,502 $ (1) $ 799,917 $ (328)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Apr. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets Measured on Recurring Basis	Assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of April 30, 2021: 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 $ 32,414 $ 32,414 $ — $ — Short-term investments: U.S. treasury securities $ 380,224 $ — $ 380,224 $ — U.S. government agency securities 677,867 — 677,867 — Corporate debt securities 302,928 — 302,928 — Total short-term investments $ 1,361,019 $ — $ 1,361,019 $ — Total cash equivalents and short-term investments $ 1,393,433 $ 32,414 $ 1,361,019 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 958 $ — $ 958 $ — Foreign currency contract assets-noncurrent (3) $ 120 $ — $ 120 $ — Foreign currency contracts liabilities-current (2) $ 189 $ — $ 189 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 114 $ — $ 114 $ — Foreign currency contracts liabilities-current (2) $ 16 $ — $ 16 $ — (1) Reported as prepaid expenses and other current assets in the condensed consolidated balance sheets. (2) Reported as accrued expenses and other current liabilities in the condensed consolidated balance sheets. (3) Reported as other noncurrent assets in the condensed consolidated balance sheets. Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 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 $ 51,690 $ 51,690 $ — $ — U.S. treasury securities 39,996 — 39,996 — U.S. government agency securities 14,997 — 14,997 — Total cash equivalents $ 106,683 $ 51,690 $ 54,993 $ — Short-term investments: U.S. treasury securities $ 415,564 $ — $ 415,564 $ — U.S. government agency securities 595,797 — 595,797 — Corporate debt securities 217,361 — 217,361 — Total short-term investments $ 1,228,722 $ — $ 1,228,722 $ — Total cash equivalents and short-term investments $ 1,335,405 $ 51,690 $ 1,283,715 $ —
Schedule of Fair Value, Liabilities Measured on Recurring Basis	Assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of April 30, 2021: 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 $ 32,414 $ 32,414 $ — $ — Short-term investments: U.S. treasury securities $ 380,224 $ — $ 380,224 $ — U.S. government agency securities 677,867 — 677,867 — Corporate debt securities 302,928 — 302,928 — Total short-term investments $ 1,361,019 $ — $ 1,361,019 $ — Total cash equivalents and short-term investments $ 1,393,433 $ 32,414 $ 1,361,019 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 958 $ — $ 958 $ — Foreign currency contract assets-noncurrent (3) $ 120 $ — $ 120 $ — Foreign currency contracts liabilities-current (2) $ 189 $ — $ 189 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 114 $ — $ 114 $ — Foreign currency contracts liabilities-current (2) $ 16 $ — $ 16 $ — (1) Reported as prepaid expenses and other current assets in the condensed consolidated balance sheets. (2) Reported as accrued expenses and other current liabilities in the condensed consolidated balance sheets. (3) Reported as other noncurrent assets in the condensed consolidated balance sheets. Assets that are measured at fair value on a recurring basis consisted of the following as of July 31, 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 $ 51,690 $ 51,690 $ — $ — U.S. treasury securities 39,996 — 39,996 — U.S. government agency securities 14,997 — 14,997 — Total cash equivalents $ 106,683 $ 51,690 $ 54,993 $ — Short-term investments: U.S. treasury securities $ 415,564 $ — $ 415,564 $ — U.S. government agency securities 595,797 — 595,797 — Corporate debt securities 217,361 — 217,361 — Total short-term investments $ 1,228,722 $ — $ 1,228,722 $ — Total cash equivalents and short-term investments $ 1,335,405 $ 51,690 $ 1,283,715 $ —

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Apr. 30, 2021
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following: April 30, 2021 July 31, 2020 (in thousands) Hosting equipment $ 126,895 $ 87,418 Computers and equipment 5,260 3,875 Purchased software 1,311 1,311 Capitalized internal-use software 34,249 23,081 Furniture and fixtures 1,019 1,965 Leasehold improvements 7,207 8,712 Total property and equipment, gross 175,941 126,362 Less: Accumulated depreciation and amortization (69,129) (50,628) Total property and equipment, net $ 106,812 $ 75,734

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Apr. 30, 2021
Business Combinations [Abstract]
Schedule of Purchase Price Allocation	The allocation of the purchase price consideration consisted of the following: Amount Estimated Useful Life (in thousands) Assets acquired: Cash and other assets $ 1,611 Acquired intangible assets: Developed technology 7,200 5 years Goodwill 23,232 Total $ 32,043 Less Liabilities assumed: Other liabilities $ 277 Deferred tax liability 624 Total $ 901 Total purchase price consideration $ 31,142

Goodwill and Acquired Intangi_2

Goodwill and Acquired Intangible Assets (Tables)	9 Months Ended
	Apr. 30, 2021
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, 2020 $ 30,059 Goodwill acquired 23,232 Balance as of April 30, 2021 $ 53,291
Schedule of Acquired Intangible Assets	Acquired intangible assets subject to amortization consisted of the following as of April 30, 2021 and July 31, 2020: Gross Carrying Amount Accumulated Amortization Net Carrying Amount July 31, 2020 Additions April 30, 2021 July 31, 2020 Amortization Expense April 30, 2021 April 30, 2021 July 31, 2020 (in thousands) Developed technology $ 26,856 $ 7,200 $ 34,056 $ (4,206) $ (4,510) $ (8,716) $ 25,340 $ 22,650 Customer relationships 1,460 — 1,460 (86) (219) (305) 1,155 1,374 Total $ 28,316 $ 7,200 $ 35,516 $ (4,292) $ (4,729) $ (9,021) $ 26,495 $ 24,024
Schedule of Future Amortization Expense	Future amortization expense of acquired intangible assets consisted of the following as of April 30, 2021: Amount Year ending July 31, (in thousands) 2021 (remaining three months) $ 1,937 2022 7,138 2023 6,641 2024 5,201 2025 4,498 Thereafter 1,080 Total $ 26,495

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	9 Months Ended
	Apr. 30, 2021
Debt Disclosure [Abstract]
Schedule of Convertible Senior Notes	The following table presents details of the Notes: Initial Conversion Rate per $1,000 Principal Initial Conversion Price Initial Number of Shares (in thousands) Notes 6.6315 shares $ 150.80 7,626 The net carrying amount of the liability component of the Notes is as follows: April 30, 2021 July 31, 2020 (in thousands) Principal amount $ 1,150,000 $ 1,150,000 Less: Unamortized debt discount 237,132 273,829 Unamortized debt issuance costs 12,605 14,556 Net carrying amount $ 900,263 $ 861,615 The following table sets forth total interest expense recognized related to the Notes: Three Months Ended April 30, 2021 Nine Months Ended April 30, 2021 (in thousands) Contractual interest expense $ 360 $ 1,082 Amortization of debt discount 12,416 36,697 Amortization of debt issuance costs 660 1,951 Total $ 13,436 $ 39,730

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Apr. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Stock Options	The stock option activity consisted of the following for the nine months ended April 30, 2021: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2020 5,175 $ 8.90 4.0 $ 625,904 Granted — — Exercised (1,891) 7.36 307,650 Canceled, forfeited or expired (100) 7.99 Balance as of April 30, 2021 3,184 $ 9.85 3.4 $ 566,188 Exercisable and expected to vest as of July 31, 2020 2,546 $ 6.46 3.5 $ 314,111 Exercisable and expected to vest as of April 30, 2021 2,073 $ 7.94 3.1 $ 372,536
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, 2021: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2020 8,553 $ 60.72 $ 1,110,694 Granted 2,533 169.21 Vested (2,026) 58.64 337,694 Canceled or forfeited (609) 64.46 Balance as of April 30, 2021 8,451 $ 93.47 $ 1,585,808
Schedule of ESPP Valuation Assumptions	The fair value of the purchase right for the ESPP is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Nine Months Ended April 30, 2021 2020 Expected term (in years) 0.5 - 2.0 0.5 - 2.0 Expected stock price volatility 61.1% - 67.4% 53.6% - 57.6% Risk-free interest rate 0.1% 1.5% - 1.7% Dividend yield 0.0% 0.0%
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, 2021 2020 2021 2020 (in thousands) Cost of revenue $ 3,360 $ 1,614 $ 9,461 $ 4,575 Sales and marketing 31,937 15,119 93,338 37,101 Research and development 13,434 6,738 43,919 17,689 General and administrative 11,242 4,299 31,820 10,647 Total $ 59,973 $ 27,770 $ 178,538 $ 70,012

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Apr. 30, 2021
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 2021 2020 2021 2020 (in thousands) Net loss $ (58,459) $ (19,337) $ (181,006) $ (65,567) Weighted-average shares used in computing net loss per share, basic and diluted 136,385 129,682 134,938 128,538 Net loss per share, basic and diluted $ (0.43) $ (0.15) $ (1.34) $ (0.51)
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, 2021 2020 (in thousands) Unvested RSUs and shares of common stock 8,122 5,710 Stock options 3,184 6,549 Unvested PSAs (1) 569 487 Share purchase rights under the ESPP 475 772 Convertible senior notes (2) 7,626 — Total 19,976 13,518 (1) The number of unvested PSAs is estimated at 100% of the target number of shares granted and excludes unvested PSAs for which performance conditions have not been established as of April 30, 2021, as they are not considered outstanding for accounting purposes. Refer to Note 11, Stock-Based Compensation, for further information. (2)

Business and Summary of Signi_3

Business and Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Credit-related impairments	$ 0	$ 0	$ 0	$ 0

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020	Jul. 31, 2020
Concentration Risk [Line Items]
Contract with customer, liability, revenue recognized			$ 298.5	$ 193.7
Revenue, remaining performance obligation	$ 1,207.6		1,207.6
Accrued sales commissions	$ 19.1		$ 19.1		$ 21
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	97.00%	98.00%	97.00%	98.00%

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 176,404	$ 110,524	$ 476,026	$ 305,382
Sales Revenue, Net | Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 176,404	$ 110,524	$ 476,026	$ 305,382
Revenue, percentage	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Net | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 176,404	$ 110,524	$ 476,026	$ 305,382
Revenue, percentage	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Net | Customer Concentration Risk | Channel partners
Disaggregation of Revenue [Line Items]
Revenue	$ 165,969	$ 106,942	$ 446,750	$ 295,316
Revenue, percentage	94.00%	97.00%	94.00%	97.00%
Sales Revenue, Net | Customer Concentration Risk | Direct customers
Disaggregation of Revenue [Line Items]
Revenue	$ 10,435	$ 3,582	$ 29,276	$ 10,066
Revenue, percentage	6.00%	3.00%	6.00%	3.00%
United States | Sales Revenue, Net | Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 85,678	$ 53,741	$ 233,379	$ 149,315
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	$ 66,461	$ 44,756	$ 181,108	$ 124,047
Revenue, percentage	38.00%	40.00%	38.00%	40.00%
Asia Pacific | Sales Revenue, Net | Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 20,523	$ 9,992	$ 51,500	$ 26,638
Revenue, percentage	11.00%	9.00%	11.00%	9.00%
Other | Sales Revenue, Net | Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue	$ 3,742	$ 2,035	$ 10,039	$ 5,382
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%	10.00%	10.00%	10.00%
Germany | Sales Revenue, Net | Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue, percentage	9.00%	10.00%	10.00%	9.00%

Revenue Recognition - Performan

Revenue Recognition - Performance Obligation (Details)	Apr. 30, 2021
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	51.00%
Recognized transaction price period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-01
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)	12 Months Ended
	Jul. 31, 2020
Channel partner A | Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Accounts receivable, net	11.00%

Revenue Recognition - Capitaliz

Revenue Recognition - Capitalized Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Jul. 31, 2020
Changes in Capitalized Contract Cost [Roll Forward]
Beginning balance	$ 134,946	$ 74,050	$ 109,915	$ 69,785
Capitalization of contract acquisition costs	27,976	16,538	71,130	32,228
Amortization of deferred contract acquisition costs	(10,454)	(6,248)	(28,577)	(17,673)
Ending balance	152,468	84,340	152,468	84,340
Deferred contract acquisition costs, current					$ 44,541	$ 32,240
Deferred contract acquisition costs, noncurrent					107,927	77,675
Total deferred contract acquisition costs	$ 152,468	$ 84,340	$ 109,915	$ 84,340	$ 152,468	$ 109,915

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, 2021	Jul. 31, 2020
Cash and cash equivalents
Amortized Cost		$ 106,684
Unrealized Gains		0
Unrealized Losses		(1)
Fair Value		106,683
Short-term investments:
Amortized Cost	$ 1,361,097	1,228,143
Unrealized Gains	284	907
Unrealized Losses	(362)	(328)
Fair Value	1,361,019	1,228,722
Total cash equivalents and short-term investments, amortized cost	1,393,511	1,334,827
Total cash equivalents and short-term investments, unrealized gains	284	907
Total cash equivalents and short-term investments, unrealized losses	(362)	(329)
Total cash equivalents and short-term investments	1,393,433	1,335,405
Money market funds
Cash and cash equivalents
Amortized Cost	32,414	51,690
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	32,414	51,690
U.S. treasury securities
Cash and cash equivalents
Amortized Cost		39,997
Unrealized Gains		0
Unrealized Losses		(1)
Fair Value		39,996
Short-term investments:
Amortized Cost	380,211	415,539
Unrealized Gains	25	152
Unrealized Losses	(12)	(127)
Fair Value	380,224	415,564
U.S. government agency securities
Cash and cash equivalents
Amortized Cost		14,997
Unrealized Gains		0
Unrealized Losses		0
Fair Value		14,997
Short-term investments:
Amortized Cost	677,962	595,725
Unrealized Gains	108	186
Unrealized Losses	(203)	(114)
Fair Value	677,867	595,797
Corporate debt securities
Short-term investments:
Amortized Cost	302,924	216,879
Unrealized Gains	151	569
Unrealized Losses	(147)	(87)
Fair Value	$ 302,928	$ 217,361

Cash Equivalents and Short-Te_4

Cash Equivalents and Short-Term Investments - Schedule of Maturities (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Amortized Cost
Due within one year	$ 841,863
Due between one to two years	519,234
Amortized Cost	1,361,097	$ 1,228,143
Fair Value
Due within one year	842,057
Due between one to two years	518,962
Total	$ 1,361,019	$ 1,228,722

Cash Equivalents and Short-Te_5

Cash Equivalents and Short-Term Investments - Schedule of Unrealized Position (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	$ 641,487	$ 794,415
Less than 12 months, unrealized losses	(362)	(327)
Greater than 12 months, fair value	4,000	5,502
Greater than 12 months, unrealized losses	0	(1)
Total fair value	645,487	799,917
Total unrealized losses	(362)	(328)
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	98,024	347,959
Less than 12 months, unrealized losses	(12)	(127)
Greater than 12 months, fair value	0	0
Greater than 12 months, unrealized losses	0	0
Total fair value	98,024	347,959
Total unrealized losses	(12)	(127)
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	364,013	340,503
Less than 12 months, unrealized losses	(203)	(113)
Greater than 12 months, fair value	3,000	5,502
Greater than 12 months, unrealized losses	0	(1)
Total fair value	367,013	346,005
Total unrealized losses	(203)	(114)
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 months, fair value	179,450	105,953
Less than 12 months, unrealized losses	(147)	(87)
Greater than 12 months, fair value	1,000	0
Greater than 12 months, unrealized losses	0	0
Total fair value	180,450	105,953
Total unrealized losses	$ (147)	$ (87)

Cash Equivalents and Short-Te_6

Cash Equivalents and Short-Term Investments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 30, 2021	Apr. 30, 2021	Apr. 30, 2020	Jul. 31, 2020
Cash and Cash Equivalents [Abstract]
Accrued interest receivable	$ 3,700	$ 3,700		$ 3,800
Investments in privately held companies	2,900	2,877	$ 0
Investment carrying value	$ 4,900	$ 4,900		$ 2,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Cash equivalents:
Fair Value		$ 106,683
Short-term investments:
Short-term investments	$ 1,361,019	1,228,722
Total cash equivalents and short-term investments	1,393,433	1,335,405
Fair Value, Measurements, Recurring
Cash equivalents:
Fair Value		106,683
Short-term investments:
Short-term investments	1,361,019	1,228,722
Total cash equivalents and short-term investments	1,393,433	1,335,405
Fair Value, Measurements, Recurring | Foreign currency contracts | Designated as Hedging Instrument
Designated derivative instruments:
Foreign currency contract assets-current	958
Foreign currency contract assets-noncurrent	120
Foreign currency contracts liabilities-current	189
Non-designated derivative instruments:
Foreign currency contract assets-current	958
Foreign currency contracts liabilities-current	189
Fair Value, Measurements, Recurring | Foreign currency contracts | Not Designated as Hedging Instrument
Designated derivative instruments:
Foreign currency contract assets-current	114
Foreign currency contracts liabilities-current	16
Non-designated derivative instruments:
Foreign currency contract assets-current	114
Foreign currency contracts liabilities-current	16
Fair Value, Measurements, Recurring | Level I
Cash equivalents:
Fair Value		51,690
Short-term investments:
Short-term investments	0	0
Total cash equivalents and short-term investments	32,414	51,690
Fair Value, Measurements, Recurring | Level I | Foreign currency contracts | Designated as Hedging Instrument
Designated derivative instruments:
Foreign currency contract assets-current	0
Foreign currency contract assets-noncurrent	0
Foreign currency contracts liabilities-current	0
Non-designated derivative instruments:
Foreign currency contract assets-current	0
Foreign currency contracts liabilities-current	0
Fair Value, Measurements, Recurring | Level I | Foreign currency contracts | Not Designated as Hedging Instrument
Designated derivative instruments:
Foreign currency contract assets-current	0
Foreign currency contracts liabilities-current	0
Non-designated derivative instruments:
Foreign currency contract assets-current	0
Foreign currency contracts liabilities-current	0
Fair Value, Measurements, Recurring | Level II
Cash equivalents:
Fair Value		54,993
Short-term investments:
Short-term investments	1,361,019	1,228,722
Total cash equivalents and short-term investments	1,361,019	1,283,715
Fair Value, Measurements, Recurring | Level II | Foreign currency contracts | Designated as Hedging Instrument
Designated derivative instruments:
Foreign currency contract assets-current	958
Foreign currency contract assets-noncurrent	120
Foreign currency contracts liabilities-current	189
Non-designated derivative instruments:
Foreign currency contract assets-current	958
Foreign currency contracts liabilities-current	189
Fair Value, Measurements, Recurring | Level II | Foreign currency contracts | Not Designated as Hedging Instrument
Designated derivative instruments:
Foreign currency contract assets-current	114
Foreign currency contracts liabilities-current	16
Non-designated derivative instruments:
Foreign currency contract assets-current	114
Foreign currency contracts liabilities-current	16
Fair Value, Measurements, Recurring | Level III
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
Total cash equivalents and short-term investments	0	0
Fair Value, Measurements, Recurring | Level III | Foreign currency contracts | Designated as Hedging Instrument
Designated derivative instruments:
Foreign currency contract assets-current	0
Foreign currency contract assets-noncurrent	0
Foreign currency contracts liabilities-current	0
Non-designated derivative instruments:
Foreign currency contract assets-current	0
Foreign currency contracts liabilities-current	0
Fair Value, Measurements, Recurring | Level III | Foreign currency contracts | Not Designated as Hedging Instrument
Designated derivative instruments:
Foreign currency contract assets-current	0
Foreign currency contracts liabilities-current	0
Non-designated derivative instruments:
Foreign currency contract assets-current	0
Foreign currency contracts liabilities-current	0
Money market funds
Cash equivalents:
Fair Value	32,414	51,690
Money market funds | Fair Value, Measurements, Recurring
Cash equivalents:
Fair Value	32,414	51,690
Money market funds | Fair Value, Measurements, Recurring | Level I
Cash equivalents:
Fair Value	32,414	51,690
Money market funds | Fair Value, Measurements, Recurring | Level II
Cash equivalents:
Fair Value	0	0
Money market funds | Fair Value, Measurements, Recurring | Level III
Cash equivalents:
Fair Value	0	0
U.S. treasury securities
Cash equivalents:
Fair Value		39,996
Short-term investments:
Short-term investments	380,224	415,564
U.S. treasury securities | Fair Value, Measurements, Recurring
Cash equivalents:
Fair Value		39,996
Short-term investments:
Short-term investments	380,224	415,564
U.S. treasury securities | Fair Value, Measurements, Recurring | Level I
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
U.S. treasury securities | Fair Value, Measurements, Recurring | Level II
Cash equivalents:
Fair Value		39,996
Short-term investments:
Short-term investments	380,224	415,564
U.S. treasury securities | Fair Value, Measurements, Recurring | Level III
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
U.S. government agency securities
Cash equivalents:
Fair Value		14,997
Short-term investments:
Short-term investments	677,867	595,797
U.S. government agency securities | Fair Value, Measurements, Recurring
Cash equivalents:
Fair Value		14,997
Short-term investments:
Short-term investments	677,867	595,797
U.S. government agency securities | Fair Value, Measurements, Recurring | Level I
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
U.S. government agency securities | Fair Value, Measurements, Recurring | Level II
Cash equivalents:
Fair Value		14,997
Short-term investments:
Short-term investments	677,867	595,797
U.S. government agency securities | Fair Value, Measurements, Recurring | Level III
Cash equivalents:
Fair Value		0
Short-term investments:
Short-term investments	0	0
Corporate debt securities
Short-term investments:
Short-term investments	302,928	217,361
Corporate debt securities | Fair Value, Measurements, Recurring
Short-term investments:
Short-term investments	302,928	217,361
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	302,928	217,361
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, 2021	Jul. 31, 2020
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 175,941	$ 126,362
Less: Accumulated depreciation and amortization	(69,129)	(50,628)
Total property and equipment, net	106,812	75,734
Hosting equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	126,895	87,418
Computers and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	5,260	3,875
Purchased software
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,311	1,311
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	34,249	23,081
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,019	1,965
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 7,207	$ 8,712

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 8,100	$ 4,800	$ 21,401	$ 12,278

Business Combinations - Narrati

Business Combinations - Narrative (Details) - USD ($) $ in Thousands	Apr. 15, 2021	Apr. 30, 2021	Jul. 31, 2020
Business Combinations [Abstract]
Cash consideration	$ 31,100
Goodwill	23,232	$ 53,291	$ 30,059
Developed technology	7,200	7,200
Acquisition related costs		$ 400
Deferred tax liability	$ 624

Business Combinations - Fair Va

Business Combinations - Fair Value Of Assets Acquired (Details) - USD ($) $ in Thousands	Apr. 15, 2021	Apr. 30, 2021	Jul. 31, 2020
Assets acquired:
Cash and other assets	$ 1,611
Acquired intangible assets:
Developed technology	7,200	$ 7,200
Goodwill	23,232	$ 53,291	$ 30,059
Total	32,043
Less Liabilities assumed:
Other liabilities	277
Deferred tax liability	624
Total	901
Total purchase price consideration	$ 31,142
Developed technology, estimated useful life	5 years	5 years

Derivative Instruments (Details

Derivative Instruments (Details)	9 Months Ended
	Apr. 30, 2021USD ($)
Derivative [Line Items]
Term of derivative	15 months
Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	$ 107,400,000
Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	$ 13,700,000

Goodwill and Acquired Intangi_3

Goodwill and Acquired Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Apr. 30, 2021USD ($)
Goodwill [Roll Forward]
Balance as of July 31, 2020	$ 30,059
Goodwill acquired	23,232
Balance as of April 30, 2021	$ 53,291

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, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020	Jul. 31, 2020
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance			$ 28,316
Additions			7,200
Intangible Assets, Gross, ending balance	$ 35,516		35,516
Accumulated Amortization, beginning balance			(4,292)
Amortization Expense	(1,600)	$ (600)	(4,729)	$ (2,062)
Accumulated Amortization, ending balance	(9,021)		(9,021)
Total	26,495		26,495		$ 24,024
Developed technology
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance			26,856
Additions			7,200
Intangible Assets, Gross, ending balance	34,056		34,056
Accumulated Amortization, beginning balance			(4,206)
Amortization Expense			(4,510)
Accumulated Amortization, ending balance	(8,716)		(8,716)
Total	25,340		25,340		22,650
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Intangible Assets, Gross, beginning balance			1,460
Additions			0
Intangible Assets, Gross, ending balance	1,460		1,460
Accumulated Amortization, beginning balance			(86)
Amortization Expense			(219)
Accumulated Amortization, ending balance	(305)		(305)
Total	$ 1,155		$ 1,155		$ 1,374

Goodwill and Acquired Intangi_5

Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	Apr. 15, 2021	Apr. 30, 2021	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of acquired intangible assets			$ 1,600	$ 600	$ 4,729	$ 2,062
Developed technology	$ 7,200	$ 7,200	$ 7,200		$ 7,200
Developed technology, estimated useful life	5 years	5 years

Goodwill and Acquired Intangi_6

Goodwill and Acquired Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2021 (remaining three months)	$ 1,937
2022	7,138
2023	6,641
2024	5,201
2025	4,498
Thereafter	1,080
Total	$ 26,495	$ 24,024

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details)	Jun. 25, 2020USD ($)trading_day$ / shares	Jun. 30, 2020USD ($)	Jun. 02, 2025trading_day	Jul. 05, 2023USD ($)	Apr. 30, 2021USD ($)	Jul. 31, 2020USD ($)
Debt Instrument [Line Items]
Proceeds from debt issuance	$ 1,130,500,000
Threshold trading days | trading_day	20
Threshold consecutive trading days | trading_day	30
Threshold percentage of share price that triggers conversion	130.00%
Number of trading days	5 days
Number of consecutive trading days	5 days
Percentage of closing price (less than)	98.00%
Redemption price, percentage of principal	100.00%
Effective interest rate	5.75%
Carrying amount of equity component	$ 278,500,000
Unamortized debt issuance costs	19,500,000				$ 12,605,000	$ 14,556,000
Equity issuance costs	4,700,000
Net carrying amount of equity component	273,400,000
Deferred tax impact	$ 400,000
Fair value of notes					$ 1,587,000,000
Initial strike price (in dollars per share) | $ / shares	$ 150.80
Initial cap price (in shares) | $ / shares	$ 246.76
Net cost of capped call		$ 145,200,000
Long-term Debt
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ 14,800,000
Forecast
Debt Instrument [Line Items]
Threshold trading days | trading_day			20
Threshold consecutive trading days | trading_day			30
Threshold percentage of share price that triggers conversion			130.00%
Redemption price, percentage of principal			100.00%
Minimum principal amount outstanding not subject to partial redemption				$ 100,000,000
Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Principal amount	$ 1,150,000,000
Interest rate	0.125%
Effective interest rate	6.03%
Convertible Senior Notes, $150 million
Debt Instrument [Line Items]
Principal amount	$ 150,000,000

Convertible Senior Notes - Summ

Convertible Senior Notes - Summary of Notes (Details) shares in Thousands	Jun. 25, 2020shares$ / shares	Apr. 30, 2021shares$ / shares
Debt Disclosure [Abstract]
Initial Conversion Rate per $1,000 Principal	0.0066
Initial conversion price (in dollars per share) | $ / shares	$ 150.80	$ 150.80
Initial Number of Shares (in shares) | shares	7,626	7,600

Convertible Senior Notes - Carr

Convertible Senior Notes - Carrying Amounts (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jul. 31, 2020	Jun. 25, 2020
Convertible Debt [Abstract]
Principal amount	$ 1,150,000	$ 1,150,000
Unamortized debt discount	237,132	273,829
Unamortized debt issuance costs	12,605	14,556	$ 19,500
Net carrying amount	$ 900,263	$ 861,615

Convertible Senior Notes - Inte

Convertible Senior Notes - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 30, 2021	Apr. 30, 2021
Debt Disclosure [Abstract]
Contractual interest expense	$ 360	$ 1,082
Amortization of debt discount	12,416	36,697
Amortization of debt issuance costs	660	1,951
Total	$ 13,436	$ 39,730

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - Broadcom - USD ($) $ in Millions	Jan. 12, 2020	Apr. 30, 2021
Loss Contingencies [Line Items]
Payment for settlement	$ 15
Litigation expense		$ 15

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021USD ($)shares	Apr. 30, 2020USD ($)	Apr. 30, 2021USD ($)periodshares	Apr. 30, 2020USD ($)$ / shares	Jul. 31, 2020USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant (in shares)	21,500,000		21,500,000
Exercised, aggregate intrinsic value | $			$ 307,650	$ 109,300
Weighted average grant date fair value (in dollars per share) | $ / shares				$ 22.76
Granted (in shares)			0
Unrecognized compensation cost | $	$ 734,700		$ 734,700
Unrecognized compensation cost, weighted-average			2 years 10 months 24 days
Capitalized stock-based compensation | $	1,500	$ 1,000	$ 4,100	$ 3,000
Trustdome Limited
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of contingent consideration | $	$ 10,100		$ 10,100
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]
Performance shares outstanding (in shares)	600,000		600,000
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	6,000,000		6,000,000
Shares available for grant (in shares)	3,900,000		3,900,000
Duration of offering period			24 months
Number of purchases periods | period			4
Duration of purchase periods			6 months
Accrued compensation | $	$ 14,300		$ 14,300		$ 3,500
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%
Common Stock | 2018 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	31,700,000		31,700,000

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Jul. 31, 2020
Outstanding Stock Options
Beginning balance (in shares)	5,175,000
Granted (in shares)	0
Exercised (in shares)	(1,891,000)
Canceled, forfeited, or expired (in shares)	(100,000)
Ending balance (in shares)	3,184,000		5,175,000
Exercisable and expected to vest (in shares)	2,073,000		2,546,000
Weighted-Average Exercise Price
Beginning balance (in dollars per share)	$ 8.90
Granted (in dollars per share)	0
Exercised (in dollars per share)	7.36
Canceled, forfeited, or expired (in dollars per share)	7.99
Ending balance (in dollars per share)	9.85		$ 8.90
Exercisable and expected to vest (in dollars per share)	$ 7.94		$ 6.46
Additional Disclosures
Options outstanding, weighted average remaining contractual term	3 years 4 months 24 days		4 years
Exercisable and expected to vest, weighted average remaining contractual term	3 years 1 month 6 days		3 years 6 months
Options outstanding, aggregate intrinsic value	$ 566,188		$ 625,904
Exercised, aggregate intrinsic value	307,650	$ 109,300
Exercisable and expected to vest, aggregate intrinsic value	$ 372,536		$ 314,111

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of RSU and PSA Activity (Details) - Restricted Stock Units and Performance Stock Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Apr. 30, 2021	Jul. 31, 2020
Underlying Shares
Beginning balance (in shares)	8,553
Granted (in shares)	2,533
Vested (in shares)	(2,026)
Canceled or forfeited (in shares)	(609)
Ending balance (in shares)	8,451
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 60.72
Granted (in dollars per share)	169.21
Vested (in dollars per share)	58.64
Canceled or forfeited (in shares)	64.46
Ending balance (in dollars per share)	$ 93.47
Aggregate Intrinsic Value
Balance	$ 1,585,808	$ 1,110,694
Vested	$ 337,694

Stock-Based Compensation - Valu

Stock-Based Compensation - Valuation Assumptions (Details) - Employee Stock	9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected stock price volatility, minimum	61.10%	53.60%
Expected stock price volatility, maximum	67.40%	57.60%
Risk-free interest rate	0.10%
Risk-free interest rate, minimum		1.50%
Risk-free interest rate, maximum		1.70%
Dividend yield	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	2 years	2 years

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 59,973	$ 27,770	$ 178,538	$ 70,012
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,360	1,614	9,461	4,575
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	31,937	15,119	93,338	37,101
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	13,434	6,738	43,919	17,689
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 11,242	$ 4,299	$ 31,820	$ 10,647

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 1,837	$ 421	$ 4,006	$ 1,931

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, 2021	Apr. 30, 2020	Apr. 30, 2021	Apr. 30, 2020
Earnings Per Share [Abstract]
Net loss	$ (58,459)	$ (19,337)	$ (181,006)	$ (65,567)
Weighted-average shares used in computing net loss per share, basic and diluted (in shares)	136,385	129,682	134,938	128,538
Net loss per share, basic and diluted (in dollars per share)	$ (0.43)	$ (0.15)	$ (1.34)	$ (0.51)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities Excluded from Computation (Details) shares in Thousands	Jun. 25, 2020shares$ / shares	Apr. 30, 2021shares$ / shares	Apr. 30, 2020shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)		19,976	13,518
Number of shares if notes converted (in shares)	7,626	7,600
Conversion price (in dollars per share) | $ / shares	$ 150.80	$ 150.80
Unvested RSUs and shares of common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)		8,122	5,710
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)		3,184	6,549
Unvested PSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)		569	487
Number of unvested PSAs as a percentage of target		100.00%
Share purchase rights under the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)		475	772
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)		7,626	0

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Millions	Jun. 03, 2021	Apr. 15, 2021
Subsequent Event [Line Items]
Cash consideration		$ 31.1
Subsequent Event
Subsequent Event [Line Items]
Cash consideration	$ 11.5

Uncategorized Items - zs-202104

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