Cover Page
Cover Page - shares | 3 Months Ended | |
Oct. 31, 2021 | Nov. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 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, $0.001 Par Value | |
Trading Symbol | ZS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Shares Outstanding | 140,081,679 | |
Entity Central Index Key | 0001713683 | |
Current Fiscal Year End Date | --07-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2021 | Jul. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 371,696 | $ 275,898 |
Short-term investments | 1,212,946 | 1,226,654 |
Accounts receivable, net | 172,028 | 257,109 |
Deferred contract acquisition costs | 62,067 | 57,373 |
Prepaid expenses and other current assets | 36,699 | 31,269 |
Total current assets | 1,855,436 | 1,848,303 |
Property and equipment, net | 112,999 | 108,576 |
Operating lease right-of-use assets | 44,153 | 44,339 |
Deferred contract acquisition costs, noncurrent | 154,036 | 149,657 |
Acquired intangible assets, net | 29,903 | 32,129 |
Goodwill | 58,977 | 58,977 |
Other noncurrent assets | 15,614 | 15,650 |
Total assets | 2,271,118 | 2,257,631 |
Current liabilities: | ||
Accounts payable | 14,961 | 12,547 |
Accrued expenses and other current liabilities | 22,859 | 22,908 |
Accrued compensation | 72,667 | 93,622 |
Deferred revenue | 584,325 | 571,286 |
Operating lease liabilities | 20,488 | 19,842 |
Total current liabilities | 715,300 | 720,205 |
Convertible senior notes, net | 927,014 | 913,538 |
Deferred revenue, noncurrent | 63,491 | 59,315 |
Operating lease liabilities, noncurrent | 30,534 | 31,225 |
Other noncurrent liabilities | 4,580 | 4,453 |
Total liabilities | 1,740,919 | 1,728,736 |
Commitments and contingencies (Note 9) | ||
Stockholders’ Equity | ||
Common stock; $0.001 par value; 1,000,000 shares authorized as of October 31, 2021 and July 31, 2021; 140,032 and 138,662 shares issued and outstanding as of October 31, 2021 and July 31, 2021, respectively | 140 | 139 |
Additional paid-in capital | 1,225,224 | 1,131,006 |
Accumulated other comprehensive loss | (2,764) | (650) |
Accumulated deficit | (692,401) | (601,600) |
Total stockholders’ equity | 530,199 | 528,895 |
Total liabilities and stockholders’ equity | $ 2,271,118 | $ 2,257,631 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2021 | Jul. 31, 2021 |
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) | 140,032,000 | 138,662,000 |
Common stock, shares outstanding (in shares) | 140,032,000 | 138,662,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 230,517 | $ 142,578 |
Cost of revenue | 52,169 | 31,727 |
Gross profit | 178,348 | 110,851 |
Operating expenses: | ||
Sales and marketing | 153,786 | 96,889 |
Research and development | 65,216 | 35,770 |
General and administrative | 33,717 | 20,859 |
Total operating expenses | 252,719 | 153,518 |
Loss from operations | (74,371) | (42,667) |
Interest income | 473 | 940 |
Interest expense | (13,835) | (13,049) |
Other income (expense), net | (589) | 268 |
Loss before income taxes | (88,322) | (54,508) |
Provision for income taxes | 2,479 | 498 |
Net loss | $ (90,801) | $ (55,006) |
Net loss per share, basic (in dollars per share) | $ (0.65) | $ (0.41) |
Net loss per share, diluted (in dollars per share) | $ (0.65) | $ (0.41) |
Weighted-average shares used in computing net loss per share, basic (in shares) | 139,296 | 133,452 |
Weighted-average shares used in computing net loss per share, diluted (in shares) | 139,296 | 133,452 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (90,801) | $ (55,006) |
Available-for-sale securities: | ||
Change in net unrealized gains (losses) on available-for-sale securities | (1,164) | (730) |
Cash flow hedging instruments: | ||
Change in net unrealized gains and (losses) | (1,304) | 0 |
Net realized losses (gains) reclassified into net loss | 354 | 0 |
Net change on cash flow hedges | (950) | 0 |
Other comprehensive loss | (2,114) | (730) |
Comprehensive loss | $ (92,915) | $ (55,736) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Common stock, beginning balance (in shares) at Jul. 31, 2020 | 132,817,000 | ||||
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) | 690,000 | ||||
Issuance of common stock upon exercise of stock options | 4,519 | $ 1 | 4,518 | ||
Vesting of restricted stock units and other stock issuances (in shares) | 656,000 | ||||
Vesting of early exercised stock options | 70 | 70 | |||
Stock-based compensation | 58,423 | 58,423 | |||
Other comprehensive loss | (730) | (730) | |||
Net loss | (55,006) | (55,006) | |||
Common stock, ending balance (in shares) at Oct. 31, 2020 | 134,163,000 | ||||
Ending balance at Oct. 31, 2020 | $ 492,105 | $ 134 | 886,815 | (267) | (394,577) |
Common stock, beginning balance (in shares) at Jul. 31, 2021 | 138,662,000 | 138,662,000 | |||
Beginning balance at Jul. 31, 2021 | $ 528,895 | $ 139 | 1,131,006 | (650) | (601,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 387,000 | 387,000 | |||
Issuance of common stock upon exercise of stock options | $ 2,644 | 2,644 | |||
Vesting of restricted stock units and other stock issuances (in shares) | 983,000 | ||||
Vesting of restricted stock units and other stock issuances | 0 | $ 1 | (1) | ||
Stock-based compensation | 91,575 | 91,575 | |||
Other comprehensive loss | (2,114) | (2,114) | |||
Net loss | $ (90,801) | (90,801) | |||
Common stock, ending balance (in shares) at Oct. 31, 2021 | 140,032,000 | 140,032,000 | |||
Ending balance at Oct. 31, 2021 | $ 530,199 | $ 140 | $ 1,225,224 | $ (2,764) | $ (692,401) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | ||
Cash Flows From Operating Activities | |||
Net loss | $ (90,801) | $ (55,006) | |
Adjustments to reconcile net loss to cash provided by operating activities: | |||
Depreciation and amortization expense | 9,017 | 6,092 | |
Amortization expense of acquired intangible assets | 2,226 | 1,577 | |
Amortization of deferred contract acquisition costs | 14,912 | 8,678 | |
Amortization of debt discount and issuance costs | 13,476 | 12,690 | |
Non-cash operating lease costs | 6,031 | 4,513 | |
Stock-based compensation expense | 89,903 | 57,185 | |
Amortization of investment premiums, net of accretion of purchase discounts | 2,671 | 2,605 | |
Deferred income taxes | (223) | (520) | |
Impairment of assets | 0 | 416 | |
Other | (13) | 29 | |
Changes in operating assets and liabilities | |||
Accounts receivable | 84,927 | 41,634 | |
Deferred contract acquisition costs | (23,985) | (18,042) | |
Prepaid expenses, other current and noncurrent assets | (4,126) | 7,883 | |
Accounts payable | (1,088) | 76 | |
Accrued expenses, other current and noncurrent liabilities | (192) | (1,243) | |
Accrued compensation | (20,955) | (12,347) | |
Deferred revenue | 17,381 | 2,133 | |
Operating lease liabilities | (5,890) | (4,821) | |
Net cash provided by operating activities | 93,271 | 53,532 | |
Cash Flows From Investing Activities | |||
Purchases of property, equipment and other assets | (6,454) | (8,904) | |
Capitalized internal-use software | (3,450) | (2,401) | |
Purchases of short-term investments | (312,840) | (174,663) | |
Proceeds from maturities of short-term investments | 322,677 | 76,582 | |
Proceeds from sale of short-term investments | 0 | 11,500 | |
Net cash used in investing activities | (67) | (97,886) | |
Cash Flows From Financing Activities | |||
Proceeds from issuance of common stock upon exercise of stock options | 2,644 | 4,519 | |
Payment of deferred consideration related to a business acquisition | (50) | 0 | |
Net cash provided by financing activities | 2,594 | 4,519 | |
Net increase (decrease) in cash and cash equivalents | [1] | 95,798 | (39,835) |
Cash and cash equivalents at beginning of period | [1] | 275,898 | 141,851 |
Cash and cash equivalents at end of period | [1] | 371,696 | 102,016 |
Supplemental Disclosure of Cash Flow Information: | |||
Cash paid for income taxes, net of tax refunds | 2,479 | 1,496 | |
Non-Cash Activities | |||
Net change in purchased equipment included in accounts payable and accrued expenses | 2,906 | 1,884 | |
Operating lease right-of-use assets obtained in exchange for operating lease obligations, net of terminations | $ 5,426 | $ 13,787 | |
[1] | We did not hold restricted cash for any periods presented. |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 3 Months Ended |
Oct. 31, 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 company that developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and organization’s policies. Our solution is a purpose-built, multi-tenant, distributed cloud platform that secures user-to-app, app-to-app, and machine-to-machine communications over any network and any 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, 2021 (the "Fiscal 2021 Form 10-K"), as filed with the SEC on September 16, 2021. Interim Unaudited Condensed Consolidated Financial Statements The accompanying condensed consolidated balance sheet as of July 31, 2021 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 October 31, 2021, the condensed consolidated statements of operations for the three months ended October 31, 2021 and 2020, the condensed consolidated statements of comprehensive loss for the three months ended October 31, 2021 and 2020, the condensed consolidated statements of stockholders’ equity for the three months ended October 31, 2021 and 2020 and the condensed consolidated statements of cash flows for the three months ended October 31, 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 months ended October 31, 2021 are not necessarily indicative of the results to be expected for our fiscal year ending July 31, 2022 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, 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 convertible senior notes, valuation of non-marketable equity 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 2022, for example, refer to our fiscal year ending July 31, 2022. Significant Accounting Policies Our significant accounting policies are described in the Fiscal 2021 Form 10-K. There have been no significant changes to these policies that have had a material impact on the condensed consolidated financial statements and related notes for the three months ended October 31, 2021. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued ASU No. 2021-08, Business Combinations (Topic 805) on Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This standard requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. Previously, acquired contract assets and liabilities were measured at fair value. This standard is effective for us in the first quarter of fiscal 2024, though early adoption is permitted. We early adopted this standard in the first quarter of fiscal 2022 and it did not have a material impact to the 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. This standard is effective for us in the first quarter of fiscal 2023, using the fully retrospective or modified retrospective method, though early adoption is permitted. We are currently evaluating the potential impact of this standard on the condensed consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Oct. 31, 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% of our revenue for the three months ended October 31, 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 October 31, 2021 2020 Amount % Revenue Amount % Revenue (in thousands, except per percentage data) United States $ 113,413 49 % $ 70,159 49 % Europe, Middle East and Africa 80,549 35 % 55,205 39 % Asia Pacific 31,052 14 % 14,280 10 % Other 5,503 2 % 2,934 2 % Total $ 230,517 100 % $ 142,578 100 % The following table summarizes the revenue from contracts by type of customer: Three Months Ended October 31, 2021 2020 Amount % Revenue Amount % Revenue (in thousands, except per percentage data) Channel partners $ 215,073 93 % $ 133,440 94 % Direct customers 15,444 7 % 9,138 6 % Total $ 230,517 100 % $ 142,578 100 % Significant Customers No single customer accounted for 10% or more of the total revenue in the periods presented. The following table summarizes the concentration of 10% or more of the total balance of accounts receivable, net: October 31, 2021 July 31, 2021 Channel partner A 14% * (*) 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. Deferred revenue, including current and noncurrent balances as of October 31, 2021 and July 31, 2021 was $647.8 million and $630.6 million, respectively. In the three months ended October 31, 2021 and 2020, we recognized revenue of $206.4 million and $127.6 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 October 31, 2021 2020 (in thousands) Beginning balance $ 207,030 $ 109,915 Capitalization of contract acquisition costs 23,985 18,042 Amortization of deferred contract acquisition costs (14,912) (8,678) Ending balance $ 216,103 $ 119,279 The outstanding balance of the deferred contract acquisition costs consisted of the following: October 31, 2021 July 31, 2021 (in thousands) Deferred contract acquisition costs, current $ 62,067 $ 57,373 Deferred contract acquisition costs, noncurrent 154,036 149,657 Total $ 216,103 $ 207,030 Sales commissions accrued but not paid as of October 31, 2021 and July 31, 2021, totaled $16.3 million and $46.7 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 | 3 Months Ended |
Oct. 31, 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 October 31, 2021: Amortized Unrealized Unrealized Fair Value (in thousands) Cash equivalents: Money market funds $ 183,556 $ — $ — $ 183,556 U.S. treasury securities 94,998 — (2) 94,996 Total $ 278,554 $ — $ (2) $ 278,552 Short-term investments: U.S. treasury securities $ 414,326 $ 1 $ (49) $ 414,278 U.S. government agency securities 473,738 47 (496) 473,289 Corporate debt securities 325,952 21 (594) 325,379 Total $ 1,214,016 $ 69 $ (1,139) $ 1,212,946 Total cash equivalents and short-term investments $ 1,492,570 $ 69 $ (1,141) $ 1,491,498 Cash equivalents and short-term investments consisted of the following as of July 31, 2021: Amortized Unrealized Unrealized Fair Value Cash equivalents: (in thousands) Money market funds $ 167,337 $ — $ — $ 167,337 U.S. government agency securities 10,999 — — 10,999 Total $ 178,336 $ — $ — $ 178,336 Short-term investments: U.S. treasury securities $ 387,428 $ 9 $ (17) $ 387,420 U.S. government agency securities 511,622 144 (34) 511,732 Corporate debt securities 327,512 102 (112) 327,502 Total $ 1,226,562 $ 255 $ (163) $ 1,226,654 Total cash equivalents and short-term investments $ 1,404,898 $ 255 $ (163) $ 1,404,990 The amortized cost and fair value of our short-term investments based on their stated maturities consisted of the following as of October 31, 2021: Amortized Fair Value (in thousands) Due within one year $ 757,847 $ 757,830 Due between one to three years 456,169 455,116 Total $ 1,214,016 $ 1,212,946 Short-term investments that were in an unrealized loss position as of October 31, 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 $ 320,337 $ (49) $ — $ — $ 320,337 $ (49) U.S. government agency securities 252,257 (486) 4,995 (11) 257,252 (497) Corporate debt securities 249,483 (592) 2,225 (1) 251,708 (593) Total $ 822,077 $ (1,127) $ 7,220 $ (12) $ 829,297 $ (1,139) Short-term investments that were in an unrealized loss position as of July 31, 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 $ 306,908 $ (17) $ — $ — $ 306,908 $ (17) U.S. government agency securities 104,782 (34) — — 104,782 (34) Corporate debt securities 157,208 (112) — — 157,208 (112) Total $ 568,898 $ (163) $ — $ — $ 568,898 $ (163) 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 corporate debt securities below the 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 October 31, 2021 and July 31, 2021. We recorded $3.0 million and $3.9 million of accrued interest receivable within prepaid expenses and other current assets in the condensed consolidated balance sheets as of October 31, 2021 and July 31, 2021, respectively. Strategic Investments The carrying amount of our strategic investments, which consist of non-marketable investments, was $5.1 million as of October 31, 2021 and July 31, 2021, which are included within other noncurrent assets in the condensed consolidated balance sheets. There were no material events or circumstances impacting the carrying amount of our strategic investments during the periods presented. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Oct. 31, 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 October 31, 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 $ 183,556 $ 183,556 $ — $ — U.S. treasury securities 94,996 — 94,996 — Total $ 278,552 $ 183,556 $ 94,996 $ — Short-term investments: U.S. treasury securities $ 414,278 $ — $ 414,278 $ — U.S. government agency securities 473,289 — 473,289 — Corporate debt securities 325,379 — 325,379 — Total $ 1,212,946 $ — $ 1,212,946 $ — Total cash equivalents and short-term investments $ 1,491,498 $ 183,556 $ 1,307,942 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 300 $ — $ 300 $ — Foreign currency contract assets-noncurrent (2) $ 38 $ — $ 38 $ — Foreign currency contracts liabilities-current (3) $ 1,743 $ — $ 1,743 $ — Foreign currency contracts liabilities-noncurrent (4) $ 79 $ — $ 79 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 159 $ — $ 159 $ — Foreign currency contracts liabilities-current (3) $ 383 $ — $ 383 $ — (1) Reported as prepaid expenses and other current assets in the condensed consolidated balance sheets. (2) Reported as other noncurrent assets in the condensed consolidated balance sheets. (3) Reported as accrued expenses and other current liabilities in the condensed consolidated balance sheets. (4) Reported as other noncurrent liabilities 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, 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 $ 167,337 $ 167,337 $ — $ — U.S. treasury securities 10,999 — 10,999 — Total $ 178,336 $ 167,337 $ 10,999 $ — Short-term investments: U.S. treasury securities $ 387,420 $ — $ 387,420 $ — U.S. government agency securities 511,732 — 511,732 — Corporate debt securities 327,502 — 327,502 — Total $ 1,226,654 $ — $ 1,226,654 $ — Total cash equivalents and short-term investments $ 1,404,990 $ 167,337 $ 1,237,653 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 459 $ — $ 459 $ — Foreign currency contract assets-noncurrent (2) $ 26 $ — $ 26 $ — Foreign currency contracts liabilities-current (3) $ 1,083 $ — $ 1,083 $ — Foreign currency contracts liabilities-noncurrent (4) $ 42 $ — $ 42 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 83 $ — $ 83 $ — Foreign currency contracts liabilities-current (3) $ 240 $ — $ 240 $ — (1) Reported as prepaid expenses and other current assets in the consolidated balance sheets. (2) Reported as other noncurrent assets in the consolidated balance sheets. (3) Reported as accrued expenses and other current liabilities in the consolidated balance sheets. (4) Reported as other noncurrent liabilities in the consolidated balance sheets. 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 8, Convertible Senior Notes, for the carrying amount and estimated fair value of our convertible senior notes as of October 31, 2021 and July 31, 2021. |
Property and Equipment and Purc
Property and Equipment and Purchased Intangible Assets | 3 Months Ended |
Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment and Purchased Intangible Assets | Property and Equipment and Purchased Intangible Assets Property and equipment consisted of the following: October 31, 2021 July 31, 2021 (in thousands) Hosting equipment $ 137,752 $ 130,981 Computers and equipment 6,113 5,599 Purchased software 1,311 1,311 Capitalized internal-use software 45,487 39,542 Furniture and fixtures 1,022 1,021 Leasehold improvements 7,340 7,339 Total property and equipment, gross 199,025 185,793 Less: Accumulated depreciation and amortization (86,026) (77,217) Total property and equipment, net $ 112,999 $ 108,576 Purchased intangible assets consist of internet protocol (IP) addresses, which are amortized on a straight-line basis over an estimated useful life of 10 years. As of October 31, 2021, the historical cost and accumulated amortization was $3.0 million and $0.5 million, respectively. As of July 31, 2021, the historical cost and accumulated amortization was $3.0 million and $0.4 million, respectively. Purchased intangible assets are included within other noncurrent assets in the condensed consolidated balance sheets. |
Property and Equipment and Purchased Intangible Assets | Property and Equipment and Purchased Intangible Assets Property and equipment consisted of the following: October 31, 2021 July 31, 2021 (in thousands) Hosting equipment $ 137,752 $ 130,981 Computers and equipment 6,113 5,599 Purchased software 1,311 1,311 Capitalized internal-use software 45,487 39,542 Furniture and fixtures 1,022 1,021 Leasehold improvements 7,340 7,339 Total property and equipment, gross 199,025 185,793 Less: Accumulated depreciation and amortization (86,026) (77,217) Total property and equipment, net $ 112,999 $ 108,576 Purchased intangible assets consist of internet protocol (IP) addresses, which are amortized on a straight-line basis over an estimated useful life of 10 years. As of October 31, 2021, the historical cost and accumulated amortization was $3.0 million and $0.5 million, respectively. As of July 31, 2021, the historical cost and accumulated amortization was $3.0 million and $0.4 million, respectively. Purchased intangible assets are included within other noncurrent assets in the condensed consolidated balance sheets. We recognized depreciation and amortization expense on property and equipment and purchased intangible assets of $9.0 million and $6.1 million for the three months ended October 31, 2021 and 2020, respectively. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Oct. 31, 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 October 31, 2021. During the three months ended October 31, 2021, we began to use foreign currency forward contracts to mitigate variability in gains and losses generated from the remeasurement of certain monetary assets and liabilities denominated in foreign currencies. The outstanding non-designated derivative instruments are carried at fair value with changes recorded in other income (expense), net in the condensed consolidated statement of operations in the same period as the changes in fair value from the remeasurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. These foreign exchange contracts typically have maturities of approximately one As of October 31, 2021 and July 31, 2021, the total notional amount of our outstanding foreign currency forward contracts was $123.4 million and $118.9 million, respectively for designated and $47.7 million and $28.2 million, respectively for non-designated foreign currency forward contracts. The maximum length of time over which forecasted foreign currency denominated operating expenses are hedged is 18 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 the condensed consolidated balance sheet as of October 31, 2021 and July 31, 2021. During the three months ended October 31, 2021, the unrealized gains and losses related to our cash flow hedges that were recognized in accumulated other comprehensive income (loss) ("AOCI") and the gains and losses reclassified into the condensed consolidated statement of operations were not material. During the three months ended October 31, 2021, changes in the fair value of our non-designated derivative instruments recorded in other income (expense), net within the condensed consolidated statements 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 same counterparty. The potential impact of these rights of set-off associated with our derivative instruments was not material as of October 31, 2021 and July 31, 2021. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. We do not enter into derivative contracts for trading or speculative purposes. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 3 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill The carrying amount of goodwill was $59.0 million as of October 31, 2021 and July 31, 2021. Acquired Intangible Assets Acquired intangible assets consist of developed technology and customer relationships acquired through our business combinations and asset acquisitions. Acquired intangible assets are amortized using the straight-line method over their estimated useful lives. Acquired intangible assets subject to amortization consisted of the following as of October 31, 2021 and July 31, 2021: Gross Carrying Amount Accumulated Amortization Net Carrying Amount July 31, 2021 Additions October 31, 2021 July 31, 2021 Amortization Expense October 31, 2021 October 31, 2021 July 31, 2021 (in thousands) Developed technology $ 39,656 $ — $ 39,656 $ (10,674) $ (2,048) $ (12,722) $ 26,934 $ 28,982 Customer relationships 3,560 — 3,560 (413) (178) (591) 2,969 3,147 Total $ 43,216 $ — $ 43,216 $ (11,087) $ (2,226) $ (13,313) $ 29,903 $ 32,129 Amortization expense of acquired intangible assets for the three months ended October 31, 2021 and 2020 was $2.2 million and $1.6 million, respectively. Amortization expense of developed technology and customer relationships is recorded primarily within cost of revenue and sales and marketing expenses, respectively, in the condensed consolidated statements of operations. Future amortization expense of acquired intangible assets consisted of the following as of October 31, 2021: Amount Year ending July 31, (in thousands) 2022 (remaining nine months) $ 6,452 2023 8,181 2024 6,741 2025 6,038 2026 2,491 Total $ 29,903 |
Convertible Senior Notes
Convertible Senior Notes | 3 Months Ended |
Oct. 31, 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 are unsecured obligations and 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. Refer to Note 9, Convertible Senior Notes, in the Notes to Consolidated Financial Statements included in our Fiscal 2021 Form 10-K for further information on the Notes. During the three months ended October 31, 2021, the conditional conversion feature of the Notes was triggered as the last reported sale price of our common stock was greater than or equal to 130% of the conversion price of the Notes for at least 20 trading days during the period of 30 consecutive trading days ending on October 29, 2021 (the last trading day of the fiscal quarter). Accordingly, the Notes are currently convertible, in whole or in part, at the option of the holders from November 1, 2021 through January 31, 2022. Whether the Notes will be convertible following such period will depend on the continued satisfaction of this condition or another conversion condition in the future. Conversion notices received through October 31, 2021 have not been material. The net carrying amount of the liability component of the Notes consisted of the following: October 31, 2021 July 31, 2021 (in thousands) Principal amount $ 1,150,000 $ 1,150,000 Less: Unamortized debt discount 211,731 224,527 Unamortized debt issuance costs 11,255 11,935 Net carrying amount $ 927,014 $ 913,538 The following table sets forth total interest expense recognized related to the Notes: Three Months Ended October 31, 2021 2020 (in thousands) Contractual interest expense $ 359 $ 359 Amortization of debt discount 12,796 12,049 Amortization of debt issuance costs 680 641 Total $ 13,835 $ 13,049 The total fair value of the Notes was $2,449.5 million and $1,931.7 million as of October 31, 2021 and July 31, 2021, respectively. 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 October 31, 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. 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 Calls 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 the converted Notes, as the case may be, with such reduction and/or offset subject to a cap. During the three months ended October 31, 2021 and 2020, we have not exercised any Capped Call options. Refer to Note 9, Convertible Senior Notes, in the Notes to Consolidated Financial Statements included in our Fiscal 2021 Form 10-K for further information on the Capped Calls. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Oct. 31, 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 three months ended October 31, 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 2021 Form 10-K. Legal Matters 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 | 3 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plan Equity incentive awards which may be granted to eligible participants under our Fiscal Year 2018 Equity Incentive Plan (the "Plan") include restricted stock units, restricted stock, stock options, nonstatutory stock options, stock appreciation rights, performance units and performance shares. Stock Options The stock option activity consisted of the following: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2021 2,597 $ 10.37 3.2 $ 585,829 Exercised (387) 6.83 100,737 Canceled, forfeited or expired (4) 10.41 Balance as of October 31, 2021 2,206 $ 10.99 3.1 $ 679,266 Exercisable and expected to vest as of July 31, 2021 1,777 $ 8.53 2.9 $ 404,151 Exercisable and expected to vest as of October 31, 2021 1,636 $ 9.33 2.8 $ 506,449 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 three months ended October 31, 2021 and 2020 was $100.7 million and $91.4 million, respectively. There were no stock options granted during the periods presented. Restricted Stock Units and Performance Stock Awards The activity of restricted stock units ("RSUs") and performance stock awards ("PSAs") consisted of the following: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2021 7,763 $ 100.84 $ 1,831,376 Granted 1,027 264.06 Vested (972) 102.19 265,802 Canceled or forfeited (185) 108.57 Balance as of October 31, 2021 7,633 $ 122.44 $ 2,433,826 As of October 31, 2021, there were 0.2 million outstanding PSAs for which the performance metrics have not been defined as of such date. As a result, such awards are not considered granted for accounting purposes as of October 31, 2021 and accordingly, they have been excluded from the above table. Employee Stock Purchase Plan In fiscal 2018, we adopted the Fiscal Year 2018 Employee Stock Purchase Plan (the "ESPP"). ESPP employee payroll contributions accrued as of October 31, 2021 and July 31, 2021 were $13.3 million and $5.2 million, respectively, and are included within accrued compensation in the condensed consolidated balance sheets. Payroll contributions accrued as of October 31, 2021 will be used to purchase shares at the end of the current ESPP purchase period ending on December 15, 2021. There were no shares issued under the ESPP during the periods presented. Stock-based Compensation Expense The components of stock-based compensation expense, net of amounts capitalized in the development of software for internal-use, recognized in the condensed consolidated statements of operations consisted of the following: Three Months Ended October 31, 2021 2020 (in thousands) Cost of revenue $ 4,986 $ 3,009 Sales and marketing 40,720 31,316 Research and development 27,259 14,123 General and administrative 16,938 8,737 Total $ 89,903 $ 57,185 During the three months ended October 31, 2021 and 2020, we capitalized $2.5 million and $1.5 million, respectively, of stock-based compensation associated with the development of software for internal-use. |
Income Taxes
Income Taxes | 3 Months Ended |
Oct. 31, 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 $2.5 million and $0.5 million for the three months ended October 31, 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
Net Loss Per Share | 3 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended 2021 2020 (in thousands) Net loss $ (90,801) $ (55,006) Weighted-average shares used in computing net loss per share, basic and diluted 139,296 133,452 Net loss per share, basic and diluted $ (0.65) $ (0.41) 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 potentially dilutive securities outstanding as of October 31, 2021 and 2020 that were excluded from the computation of diluted net loss per share as their effect would be antidilutive: October 31, 2021 2020 (in thousands) Unvested RSUs and shares of common stock 7,085 8,161 Stock options 2,206 4,475 Unvested PSAs (1) 676 577 Share purchase rights under the ESPP 697 547 Convertible senior notes (2) 7,626 — Total 18,290 13,760 (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 October 31, 2021 and 2020, as they are not considered outstanding for accounting purposes. Refer to Note 10, Stock-Based Compensation, for further information. (2) |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Oct. 31, 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, 2021 (the "Fiscal 2021 Form 10-K"), as filed with the SEC on September 16, 2021. |
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, 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 convertible senior notes, valuation of non-marketable equity 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 2022, for example, refer to our fiscal year ending July 31, 2022. |
Recently Adopted Accounting Pronouncements; Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued ASU No. 2021-08, Business Combinations (Topic 805) on Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This standard requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. Previously, acquired contract assets and liabilities were measured at fair value. This standard is effective for us in the first quarter of fiscal 2024, though early adoption is permitted. We early adopted this standard in the first quarter of fiscal 2022 and it did not have a material impact to the 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. This standard is effective for us in the first quarter of fiscal 2023, using the fully retrospective or modified retrospective method, though early adoption is permitted. We are currently evaluating the potential impact of this standard on the condensed consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Oct. 31, 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 October 31, 2021 2020 Amount % Revenue Amount % Revenue (in thousands, except per percentage data) United States $ 113,413 49 % $ 70,159 49 % Europe, Middle East and Africa 80,549 35 % 55,205 39 % Asia Pacific 31,052 14 % 14,280 10 % Other 5,503 2 % 2,934 2 % Total $ 230,517 100 % $ 142,578 100 % The following table summarizes the revenue from contracts by type of customer: Three Months Ended October 31, 2021 2020 Amount % Revenue Amount % Revenue (in thousands, except per percentage data) Channel partners $ 215,073 93 % $ 133,440 94 % Direct customers 15,444 7 % 9,138 6 % Total $ 230,517 100 % $ 142,578 100 % |
Schedule of Accounts Receivable | The following table summarizes the concentration of 10% or more of the total balance of accounts receivable, net: October 31, 2021 July 31, 2021 Channel partner A 14% * (*) Represents less than 10%. |
Capitalized Contract Cost | The activity of the deferred contract acquisition costs consisted of the following: Three Months Ended October 31, 2021 2020 (in thousands) Beginning balance $ 207,030 $ 109,915 Capitalization of contract acquisition costs 23,985 18,042 Amortization of deferred contract acquisition costs (14,912) (8,678) Ending balance $ 216,103 $ 119,279 The outstanding balance of the deferred contract acquisition costs consisted of the following: October 31, 2021 July 31, 2021 (in thousands) Deferred contract acquisition costs, current $ 62,067 $ 57,373 Deferred contract acquisition costs, noncurrent 154,036 149,657 Total $ 216,103 $ 207,030 |
Cash Equivalents and Short-Te_2
Cash Equivalents and Short-Term Investments (Tables) | 3 Months Ended |
Oct. 31, 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 October 31, 2021: Amortized Unrealized Unrealized Fair Value (in thousands) Cash equivalents: Money market funds $ 183,556 $ — $ — $ 183,556 U.S. treasury securities 94,998 — (2) 94,996 Total $ 278,554 $ — $ (2) $ 278,552 Short-term investments: U.S. treasury securities $ 414,326 $ 1 $ (49) $ 414,278 U.S. government agency securities 473,738 47 (496) 473,289 Corporate debt securities 325,952 21 (594) 325,379 Total $ 1,214,016 $ 69 $ (1,139) $ 1,212,946 Total cash equivalents and short-term investments $ 1,492,570 $ 69 $ (1,141) $ 1,491,498 Cash equivalents and short-term investments consisted of the following as of July 31, 2021: Amortized Unrealized Unrealized Fair Value Cash equivalents: (in thousands) Money market funds $ 167,337 $ — $ — $ 167,337 U.S. government agency securities 10,999 — — 10,999 Total $ 178,336 $ — $ — $ 178,336 Short-term investments: U.S. treasury securities $ 387,428 $ 9 $ (17) $ 387,420 U.S. government agency securities 511,622 144 (34) 511,732 Corporate debt securities 327,512 102 (112) 327,502 Total $ 1,226,562 $ 255 $ (163) $ 1,226,654 Total cash equivalents and short-term investments $ 1,404,898 $ 255 $ (163) $ 1,404,990 |
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 October 31, 2021: Amortized Fair Value (in thousands) Due within one year $ 757,847 $ 757,830 Due between one to three years 456,169 455,116 Total $ 1,214,016 $ 1,212,946 |
Schedule of Unrealized Loss on Investments | Short-term investments that were in an unrealized loss position as of October 31, 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 $ 320,337 $ (49) $ — $ — $ 320,337 $ (49) U.S. government agency securities 252,257 (486) 4,995 (11) 257,252 (497) Corporate debt securities 249,483 (592) 2,225 (1) 251,708 (593) Total $ 822,077 $ (1,127) $ 7,220 $ (12) $ 829,297 $ (1,139) Short-term investments that were in an unrealized loss position as of July 31, 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 $ 306,908 $ (17) $ — $ — $ 306,908 $ (17) U.S. government agency securities 104,782 (34) — — 104,782 (34) Corporate debt securities 157,208 (112) — — 157,208 (112) Total $ 568,898 $ (163) $ — $ — $ 568,898 $ (163) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 31, 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 October 31, 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 $ 183,556 $ 183,556 $ — $ — U.S. treasury securities 94,996 — 94,996 — Total $ 278,552 $ 183,556 $ 94,996 $ — Short-term investments: U.S. treasury securities $ 414,278 $ — $ 414,278 $ — U.S. government agency securities 473,289 — 473,289 — Corporate debt securities 325,379 — 325,379 — Total $ 1,212,946 $ — $ 1,212,946 $ — Total cash equivalents and short-term investments $ 1,491,498 $ 183,556 $ 1,307,942 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 300 $ — $ 300 $ — Foreign currency contract assets-noncurrent (2) $ 38 $ — $ 38 $ — Foreign currency contracts liabilities-current (3) $ 1,743 $ — $ 1,743 $ — Foreign currency contracts liabilities-noncurrent (4) $ 79 $ — $ 79 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 159 $ — $ 159 $ — Foreign currency contracts liabilities-current (3) $ 383 $ — $ 383 $ — (1) Reported as prepaid expenses and other current assets in the condensed consolidated balance sheets. (2) Reported as other noncurrent assets in the condensed consolidated balance sheets. (3) Reported as accrued expenses and other current liabilities in the condensed consolidated balance sheets. (4) Reported as other noncurrent liabilities 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, 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 $ 167,337 $ 167,337 $ — $ — U.S. treasury securities 10,999 — 10,999 — Total $ 178,336 $ 167,337 $ 10,999 $ — Short-term investments: U.S. treasury securities $ 387,420 $ — $ 387,420 $ — U.S. government agency securities 511,732 — 511,732 — Corporate debt securities 327,502 — 327,502 — Total $ 1,226,654 $ — $ 1,226,654 $ — Total cash equivalents and short-term investments $ 1,404,990 $ 167,337 $ 1,237,653 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 459 $ — $ 459 $ — Foreign currency contract assets-noncurrent (2) $ 26 $ — $ 26 $ — Foreign currency contracts liabilities-current (3) $ 1,083 $ — $ 1,083 $ — Foreign currency contracts liabilities-noncurrent (4) $ 42 $ — $ 42 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 83 $ — $ 83 $ — Foreign currency contracts liabilities-current (3) $ 240 $ — $ 240 $ — (1) Reported as prepaid expenses and other current assets in the consolidated balance sheets. (2) Reported as other noncurrent assets in the consolidated balance sheets. (3) Reported as accrued expenses and other current liabilities in the consolidated balance sheets. (4) Reported as other noncurrent liabilities in the consolidated balance sheets. |
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 October 31, 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 $ 183,556 $ 183,556 $ — $ — U.S. treasury securities 94,996 — 94,996 — Total $ 278,552 $ 183,556 $ 94,996 $ — Short-term investments: U.S. treasury securities $ 414,278 $ — $ 414,278 $ — U.S. government agency securities 473,289 — 473,289 — Corporate debt securities 325,379 — 325,379 — Total $ 1,212,946 $ — $ 1,212,946 $ — Total cash equivalents and short-term investments $ 1,491,498 $ 183,556 $ 1,307,942 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 300 $ — $ 300 $ — Foreign currency contract assets-noncurrent (2) $ 38 $ — $ 38 $ — Foreign currency contracts liabilities-current (3) $ 1,743 $ — $ 1,743 $ — Foreign currency contracts liabilities-noncurrent (4) $ 79 $ — $ 79 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 159 $ — $ 159 $ — Foreign currency contracts liabilities-current (3) $ 383 $ — $ 383 $ — (1) Reported as prepaid expenses and other current assets in the condensed consolidated balance sheets. (2) Reported as other noncurrent assets in the condensed consolidated balance sheets. (3) Reported as accrued expenses and other current liabilities in the condensed consolidated balance sheets. (4) Reported as other noncurrent liabilities 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, 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 $ 167,337 $ 167,337 $ — $ — U.S. treasury securities 10,999 — 10,999 — Total $ 178,336 $ 167,337 $ 10,999 $ — Short-term investments: U.S. treasury securities $ 387,420 $ — $ 387,420 $ — U.S. government agency securities 511,732 — 511,732 — Corporate debt securities 327,502 — 327,502 — Total $ 1,226,654 $ — $ 1,226,654 $ — Total cash equivalents and short-term investments $ 1,404,990 $ 167,337 $ 1,237,653 $ — Designated derivative instruments: Foreign currency contracts assets-current (1) $ 459 $ — $ 459 $ — Foreign currency contract assets-noncurrent (2) $ 26 $ — $ 26 $ — Foreign currency contracts liabilities-current (3) $ 1,083 $ — $ 1,083 $ — Foreign currency contracts liabilities-noncurrent (4) $ 42 $ — $ 42 $ — Non-designated derivative instruments: Foreign currency contracts assets-current (1) $ 83 $ — $ 83 $ — Foreign currency contracts liabilities-current (3) $ 240 $ — $ 240 $ — (1) Reported as prepaid expenses and other current assets in the consolidated balance sheets. (2) Reported as other noncurrent assets in the consolidated balance sheets. (3) Reported as accrued expenses and other current liabilities in the consolidated balance sheets. (4) Reported as other noncurrent liabilities in the consolidated balance sheets. |
Property and Equipment and Pu_2
Property and Equipment and Purchased Intangible Assets (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: October 31, 2021 July 31, 2021 (in thousands) Hosting equipment $ 137,752 $ 130,981 Computers and equipment 6,113 5,599 Purchased software 1,311 1,311 Capitalized internal-use software 45,487 39,542 Furniture and fixtures 1,022 1,021 Leasehold improvements 7,340 7,339 Total property and equipment, gross 199,025 185,793 Less: Accumulated depreciation and amortization (86,026) (77,217) Total property and equipment, net $ 112,999 $ 108,576 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets | Acquired intangible assets subject to amortization consisted of the following as of October 31, 2021 and July 31, 2021: Gross Carrying Amount Accumulated Amortization Net Carrying Amount July 31, 2021 Additions October 31, 2021 July 31, 2021 Amortization Expense October 31, 2021 October 31, 2021 July 31, 2021 (in thousands) Developed technology $ 39,656 $ — $ 39,656 $ (10,674) $ (2,048) $ (12,722) $ 26,934 $ 28,982 Customer relationships 3,560 — 3,560 (413) (178) (591) 2,969 3,147 Total $ 43,216 $ — $ 43,216 $ (11,087) $ (2,226) $ (13,313) $ 29,903 $ 32,129 |
Schedule of Future Amortization Expense | Future amortization expense of acquired intangible assets consisted of the following as of October 31, 2021: Amount Year ending July 31, (in thousands) 2022 (remaining nine months) $ 6,452 2023 8,181 2024 6,741 2025 6,038 2026 2,491 Total $ 29,903 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The net carrying amount of the liability component of the Notes consisted of the following: October 31, 2021 July 31, 2021 (in thousands) Principal amount $ 1,150,000 $ 1,150,000 Less: Unamortized debt discount 211,731 224,527 Unamortized debt issuance costs 11,255 11,935 Net carrying amount $ 927,014 $ 913,538 The following table sets forth total interest expense recognized related to the Notes: Three Months Ended October 31, 2021 2020 (in thousands) Contractual interest expense $ 359 $ 359 Amortization of debt discount 12,796 12,049 Amortization of debt issuance costs 680 641 Total $ 13,835 $ 13,049 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Options | The stock option activity consisted of the following: Outstanding Weighted-Average Weighted-Average Aggregate (in thousands, except per share amounts) Balance as of July 31, 2021 2,597 $ 10.37 3.2 $ 585,829 Exercised (387) 6.83 100,737 Canceled, forfeited or expired (4) 10.41 Balance as of October 31, 2021 2,206 $ 10.99 3.1 $ 679,266 Exercisable and expected to vest as of July 31, 2021 1,777 $ 8.53 2.9 $ 404,151 Exercisable and expected to vest as of October 31, 2021 1,636 $ 9.33 2.8 $ 506,449 |
Schedule of Restricted Stock Units and Performance Stock Awards Activity | The activity of restricted stock units ("RSUs") and performance stock awards ("PSAs") consisted of the following: Underlying Shares Weighted-Average Grant Date Fair Value Aggregate (in thousands, except per share data) Balance as of July 31, 2021 7,763 $ 100.84 $ 1,831,376 Granted 1,027 264.06 Vested (972) 102.19 265,802 Canceled or forfeited (185) 108.57 Balance as of October 31, 2021 7,633 $ 122.44 $ 2,433,826 |
Schedule of Allocation of Stock-based Compensation Expense | The components of stock-based compensation expense, net of amounts capitalized in the development of software for internal-use, recognized in the condensed consolidated statements of operations consisted of the following: Three Months Ended October 31, 2021 2020 (in thousands) Cost of revenue $ 4,986 $ 3,009 Sales and marketing 40,720 31,316 Research and development 27,259 14,123 General and administrative 16,938 8,737 Total $ 89,903 $ 57,185 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Oct. 31, 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: Three Months Ended 2021 2020 (in thousands) Net loss $ (90,801) $ (55,006) Weighted-average shares used in computing net loss per share, basic and diluted 139,296 133,452 Net loss per share, basic and diluted $ (0.65) $ (0.41) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the potentially dilutive securities outstanding as of October 31, 2021 and 2020 that were excluded from the computation of diluted net loss per share as their effect would be antidilutive: October 31, 2021 2020 (in thousands) Unvested RSUs and shares of common stock 7,085 8,161 Stock options 2,206 4,475 Unvested PSAs (1) 676 577 Share purchase rights under the ESPP 697 547 Convertible senior notes (2) 7,626 — Total 18,290 13,760 (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 October 31, 2021 and 2020, as they are not considered outstanding for accounting purposes. Refer to Note 10, Stock-Based Compensation, for further information. (2) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2021 | |
Concentration Risk [Line Items] | |||
Deferred revenue | $ 647.8 | $ 630.6 | |
Contract with customer, liability, revenue recognized | 206.4 | $ 127.6 | |
Revenue, remaining performance obligation | 1,705.7 | ||
Accrued sales commissions | $ 16.3 | $ 46.7 | |
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% | 97.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 230,517 | $ 142,578 |
Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 230,517 | $ 142,578 |
Revenue, percentage | 100.00% | 100.00% |
Sales Revenue, Net | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 230,517 | $ 142,578 |
Revenue, percentage | 100.00% | 100.00% |
Sales Revenue, Net | Customer Concentration Risk | Channel partners | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 215,073 | $ 133,440 |
Revenue, percentage | 93.00% | 94.00% |
Sales Revenue, Net | Customer Concentration Risk | Direct customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 15,444 | $ 9,138 |
Revenue, percentage | 7.00% | 6.00% |
United States | Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 113,413 | $ 70,159 |
Revenue, percentage | 49.00% | 49.00% |
Europe, Middle East and Africa | Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 80,549 | $ 55,205 |
Revenue, percentage | 35.00% | 39.00% |
Asia Pacific | Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 31,052 | $ 14,280 |
Revenue, percentage | 14.00% | 10.00% |
Other | Sales Revenue, Net | Geographic Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 5,503 | $ 2,934 |
Revenue, percentage | 2.00% | 2.00% |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) | Oct. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 50.00% |
Recognized transaction price period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 97.00% |
Recognized transaction price period | 3 years |
Revenue Recognition - Significa
Revenue Recognition - Significant Customers (Details) | 3 Months Ended |
Oct. 31, 2021 | |
Channel partner A | Accounts Receivable | Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Accounts receivable, net | 14.00% |
Revenue Recognition - Capitaliz
Revenue Recognition - Capitalized Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2021 | |
Changes in Capitalized Contract Cost [Roll Forward] | |||
Beginning balance | $ 207,030 | $ 109,915 | |
Capitalization of contract acquisition costs | 23,985 | 18,042 | |
Amortization of deferred contract acquisition costs | (14,912) | (8,678) | |
Ending balance | 216,103 | 119,279 | |
Deferred contract acquisition costs, current | 62,067 | $ 57,373 | |
Deferred contract acquisition costs, noncurrent | 154,036 | 149,657 | |
Total | $ 216,103 | $ 119,279 | $ 207,030 |
Cash Equivalents and Short-Te_3
Cash Equivalents and Short-Term Investments - Schedule of Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jul. 31, 2021 |
Cash and cash equivalents | ||
Amortized Cost | $ 278,554 | $ 178,336 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (2) | 0 |
Fair Value | 278,552 | 178,336 |
Short-term investments: | ||
Amortized Cost | 1,214,016 | 1,226,562 |
Unrealized Gains | 69 | 255 |
Unrealized Losses | (1,139) | (163) |
Fair Value | 1,212,946 | 1,226,654 |
Total cash equivalents and short-term investments, amortized cost | 1,492,570 | 1,404,898 |
Total cash equivalents and short-term investments, unrealized gains | 69 | 255 |
Total cash equivalents and short-term investments, unrealized losses | (1,141) | (163) |
Total cash equivalents and short-term investments | 1,491,498 | 1,404,990 |
Money market funds | ||
Cash and cash equivalents | ||
Amortized Cost | 183,556 | 167,337 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 183,556 | 167,337 |
U.S. government agency securities | ||
Cash and cash equivalents | ||
Amortized Cost | 10,999 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 10,999 | |
U.S. treasury securities | ||
Cash and cash equivalents | ||
Amortized Cost | 94,998 | |
Unrealized Gains | 0 | |
Unrealized Losses | (2) | |
Fair Value | 94,996 | |
U.S. treasury securities | ||
Short-term investments: | ||
Amortized Cost | 414,326 | 387,428 |
Unrealized Gains | 1 | 9 |
Unrealized Losses | (49) | (17) |
Fair Value | 414,278 | 387,420 |
U.S. government agency securities | ||
Short-term investments: | ||
Amortized Cost | 473,738 | 511,622 |
Unrealized Gains | 47 | 144 |
Unrealized Losses | (496) | (34) |
Fair Value | 473,289 | 511,732 |
Corporate debt securities | ||
Short-term investments: | ||
Amortized Cost | 325,952 | 327,512 |
Unrealized Gains | 21 | 102 |
Unrealized Losses | (594) | (112) |
Fair Value | $ 325,379 | $ 327,502 |
Cash Equivalents and Short-Te_4
Cash Equivalents and Short-Term Investments - Schedule of Maturities (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jul. 31, 2021 |
Amortized Cost | ||
Due within one year | $ 757,847 | |
Due between one to three years | 456,169 | |
Amortized Cost | 1,214,016 | $ 1,226,562 |
Fair Value | ||
Due within one year | 757,830 | |
Due between one to three years | 455,116 | |
Total | $ 1,212,946 | $ 1,226,654 |
Cash Equivalents and Short-Te_5
Cash Equivalents and Short-Term Investments - Schedule of Unrealized Position (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jul. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 822,077 | $ 568,898 |
Less than 12 months, unrealized losses | (1,127) | (163) |
Greater than 12 months, fair value | 7,220 | 0 |
Greater than 12 months, unrealized losses | (12) | 0 |
Total fair value | 829,297 | 568,898 |
Total unrealized losses | (1,139) | (163) |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 320,337 | 306,908 |
Less than 12 months, unrealized losses | (49) | (17) |
Greater than 12 months, fair value | 0 | 0 |
Greater than 12 months, unrealized losses | 0 | 0 |
Total fair value | 320,337 | 306,908 |
Total unrealized losses | (49) | (17) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 252,257 | 104,782 |
Less than 12 months, unrealized losses | (486) | (34) |
Greater than 12 months, fair value | 4,995 | 0 |
Greater than 12 months, unrealized losses | (11) | 0 |
Total fair value | 257,252 | 104,782 |
Total unrealized losses | (497) | (34) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 249,483 | 157,208 |
Less than 12 months, unrealized losses | (592) | (112) |
Greater than 12 months, fair value | 2,225 | 0 |
Greater than 12 months, unrealized losses | (1) | 0 |
Total fair value | 251,708 | 157,208 |
Total unrealized losses | $ (593) | $ (112) |
Cash Equivalents and Short-Te_6
Cash Equivalents and Short-Term Investments - Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2021 | Jul. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Accrued interest receivable | $ 3 | $ 3.9 |
Investment carrying value | $ 5.1 | $ 5.1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jul. 31, 2021 |
Cash equivalents: | ||
Fair Value | $ 278,552 | $ 178,336 |
Short-term investments: | ||
Short-term investments | 1,212,946 | 1,226,654 |
Total cash equivalents and short-term investments | 1,491,498 | 1,404,990 |
Money market funds | ||
Cash equivalents: | ||
Fair Value | 183,556 | 167,337 |
U.S. treasury securities | ||
Cash equivalents: | ||
Fair Value | 94,996 | |
Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Fair Value | 278,552 | 178,336 |
Short-term investments: | ||
Short-term investments | 1,212,946 | 1,226,654 |
Total cash equivalents and short-term investments | 1,491,498 | 1,404,990 |
Fair Value, Measurements, Recurring | Money market funds | ||
Cash equivalents: | ||
Fair Value | 183,556 | 167,337 |
Fair Value, Measurements, Recurring | U.S. treasury securities | ||
Cash equivalents: | ||
Fair Value | 94,996 | 10,999 |
Fair Value, Measurements, Recurring | Foreign currency contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Foreign currency contract assets-current | 300 | 459 |
Foreign currency contract assets-noncurrent | 38 | 26 |
Foreign currency contracts liabilities-current | 1,743 | 1,083 |
Foreign currency contracts liabilities-noncurrent | 79 | 42 |
Non-designated derivative instruments: | ||
Foreign currency contract assets-current | 300 | 459 |
Foreign currency contracts liabilities-current | 1,743 | 1,083 |
Fair Value, Measurements, Recurring | Foreign currency contracts | Not Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Foreign currency contract assets-current | 159 | 83 |
Foreign currency contracts liabilities-current | 383 | 240 |
Non-designated derivative instruments: | ||
Foreign currency contract assets-current | 159 | 83 |
Foreign currency contracts liabilities-current | 383 | 240 |
Fair Value, Measurements, Recurring | Level I | ||
Cash equivalents: | ||
Fair Value | 183,556 | 167,337 |
Short-term investments: | ||
Short-term investments | 0 | 0 |
Total cash equivalents and short-term investments | 183,556 | 167,337 |
Fair Value, Measurements, Recurring | Level I | Money market funds | ||
Cash equivalents: | ||
Fair Value | 183,556 | 167,337 |
Fair Value, Measurements, Recurring | Level I | U.S. treasury securities | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Foreign currency contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Foreign currency contract assets-current | 0 | 0 |
Foreign currency contract assets-noncurrent | 0 | 0 |
Foreign currency contracts liabilities-current | 0 | 0 |
Foreign currency contracts liabilities-noncurrent | 0 | 0 |
Non-designated derivative instruments: | ||
Foreign currency contract assets-current | 0 | 0 |
Foreign currency contracts liabilities-current | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Foreign currency contracts | Not Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Foreign currency contract assets-current | 0 | 0 |
Foreign currency contracts liabilities-current | 0 | 0 |
Non-designated derivative instruments: | ||
Foreign currency contract assets-current | 0 | 0 |
Foreign currency contracts liabilities-current | 0 | 0 |
Fair Value, Measurements, Recurring | Level II | ||
Cash equivalents: | ||
Fair Value | 94,996 | 10,999 |
Short-term investments: | ||
Short-term investments | 1,212,946 | 1,226,654 |
Total cash equivalents and short-term investments | 1,307,942 | 1,237,653 |
Fair Value, Measurements, Recurring | Level II | Money market funds | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Level II | U.S. treasury securities | ||
Cash equivalents: | ||
Fair Value | 94,996 | 10,999 |
Fair Value, Measurements, Recurring | Level II | Foreign currency contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Foreign currency contract assets-current | 300 | 459 |
Foreign currency contract assets-noncurrent | 38 | 26 |
Foreign currency contracts liabilities-current | 1,743 | 1,083 |
Foreign currency contracts liabilities-noncurrent | 79 | 42 |
Non-designated derivative instruments: | ||
Foreign currency contract assets-current | 300 | 459 |
Foreign currency contracts liabilities-current | 1,743 | 1,083 |
Fair Value, Measurements, Recurring | Level II | Foreign currency contracts | Not Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Foreign currency contract assets-current | 159 | 83 |
Foreign currency contracts liabilities-current | 383 | 240 |
Non-designated derivative instruments: | ||
Foreign currency contract assets-current | 159 | 83 |
Foreign currency contracts liabilities-current | 383 | 240 |
Fair Value, Measurements, Recurring | Level III | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Short-term investments: | ||
Short-term investments | 0 | 0 |
Total cash equivalents and short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Money market funds | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | U.S. treasury securities | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Foreign currency contracts | Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Foreign currency contract assets-current | 0 | 0 |
Foreign currency contract assets-noncurrent | 0 | 0 |
Foreign currency contracts liabilities-current | 0 | 0 |
Foreign currency contracts liabilities-noncurrent | 0 | 0 |
Non-designated derivative instruments: | ||
Foreign currency contract assets-current | 0 | 0 |
Foreign currency contracts liabilities-current | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Foreign currency contracts | Not Designated as Hedging Instrument | ||
Designated derivative instruments: | ||
Foreign currency contract assets-current | 0 | 0 |
Foreign currency contracts liabilities-current | 0 | 0 |
Non-designated derivative instruments: | ||
Foreign currency contract assets-current | 0 | 0 |
Foreign currency contracts liabilities-current | 0 | 0 |
U.S. treasury securities | ||
Short-term investments: | ||
Short-term investments | 414,278 | 387,420 |
U.S. treasury securities | Fair Value, Measurements, Recurring | ||
Short-term investments: | ||
Short-term investments | 414,278 | 387,420 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level I | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level II | ||
Short-term investments: | ||
Short-term investments | 414,278 | 387,420 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Level III | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
U.S. government agency securities | ||
Short-term investments: | ||
Short-term investments | 473,289 | 511,732 |
U.S. government agency securities | Fair Value, Measurements, Recurring | ||
Short-term investments: | ||
Short-term investments | 473,289 | 511,732 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level I | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level II | ||
Short-term investments: | ||
Short-term investments | 473,289 | 511,732 |
U.S. government agency securities | Fair Value, Measurements, Recurring | Level III | ||
Short-term investments: | ||
Short-term investments | 0 | 0 |
Corporate debt securities | ||
Short-term investments: | ||
Short-term investments | 325,379 | 327,502 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Short-term investments: | ||
Short-term investments | 325,379 | 327,502 |
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 | 325,379 | 327,502 |
Corporate debt securities | Fair Value, Measurements, Recurring | Level III | ||
Short-term investments: | ||
Short-term investments | $ 0 | $ 0 |
Property and Equipment and Pu_3
Property and Equipment and Purchased Intangible Assets - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jul. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 199,025 | $ 185,793 |
Less: Accumulated depreciation and amortization | (86,026) | (77,217) |
Total property and equipment, net | 112,999 | 108,576 |
Hosting equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 137,752 | 130,981 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 6,113 | 5,599 |
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 | 45,487 | 39,542 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,022 | 1,021 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 7,340 | $ 7,339 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Historical cost | $ 43,216 | $ 43,216 | |
Accumulated amortization | 13,313 | 11,087 | |
Depreciation and amortization expense | $ 9,017 | $ 6,092 | |
Internet Protocol Addresses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 10 years | ||
Historical cost | $ 3,000 | 3,000 | |
Accumulated amortization | $ 500 | $ 400 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Jul. 31, 2021 | |
Maximum | ||
Derivative [Line Items] | ||
Term of derivative | 18 months | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | $ 123.4 | $ 118.9 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | $ 47.7 | $ 28.2 |
Not Designated as Hedging Instrument | Minimum | Foreign currency contracts | ||
Derivative [Line Items] | ||
Term of derivative | 1 month | |
Not Designated as Hedging Instrument | Maximum | Foreign currency contracts | ||
Derivative [Line Items] | ||
Term of derivative | 4 months |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jul. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 58,977 | $ 58,977 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2021 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross, beginning balance | $ 43,216 | ||
Additions | 0 | ||
Intangible Assets, Gross, ending balance | 43,216 | ||
Accumulated Amortization, beginning balance | (11,087) | ||
Amortization Expense | (2,226) | $ (1,577) | |
Accumulated Amortization, ending balance | (13,313) | ||
Total | 29,903 | $ 32,129 | |
Developed technology | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross, beginning balance | 39,656 | ||
Additions | 0 | ||
Intangible Assets, Gross, ending balance | 39,656 | ||
Accumulated Amortization, beginning balance | (10,674) | ||
Amortization Expense | (2,048) | ||
Accumulated Amortization, ending balance | (12,722) | ||
Total | 26,934 | 28,982 | |
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross, beginning balance | 3,560 | ||
Additions | 0 | ||
Intangible Assets, Gross, ending balance | 3,560 | ||
Accumulated Amortization, beginning balance | (413) | ||
Amortization Expense | (178) | ||
Accumulated Amortization, ending balance | (591) | ||
Total | $ 2,969 | $ 3,147 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense of acquired intangible assets | $ 2,226 | $ 1,577 |
Goodwill and Acquired Intangi_6
Goodwill and Acquired Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jul. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (remaining nine months) | $ 6,452 | |
2023 | 8,181 | |
2024 | 6,741 | |
2025 | 6,038 | |
2026 | 2,491 | |
Total | $ 29,903 | $ 32,129 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) | Jun. 25, 2020USD ($)$ / shares | Oct. 31, 2021USD ($)trading_day | Jul. 31, 2021USD ($) |
Debt Instrument [Line Items] | |||
Proceeds from debt issuance | $ 1,130,500,000 | ||
Threshold percentage of share price that triggers conversion | 130.00% | ||
Threshold trading days | trading_day | 20 | ||
Threshold consecutive trading days | trading_day | 30 | ||
Fair value of notes | $ 2,449,500,000 | $ 1,931,700,000 | |
Initial strike price (in dollars per share) | $ / shares | $ 150.80 | ||
Initial cap price (in shares) | $ / shares | $ 246.76 | ||
Convertible Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 1,150,000,000 | ||
Interest rate | 0.125% | ||
Convertible Senior Notes, $150 million | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 150,000,000 |
Convertible Senior Notes - Carr
Convertible Senior Notes - Carrying Amounts (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Jul. 31, 2021 |
Convertible Debt [Abstract] | ||
Principal amount | $ 1,150,000 | $ 1,150,000 |
Unamortized debt discount | 211,731 | 224,527 |
Unamortized debt issuance costs | 11,255 | 11,935 |
Net carrying amount | $ 927,014 | $ 913,538 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Contractual interest expense | $ 359 | $ 359 |
Amortization of debt discount | 12,796 | 12,049 |
Amortization of debt issuance costs | 680 | 641 |
Total | $ 13,835 | $ 13,049 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercised, aggregate intrinsic value | $ 100,737 | $ 91,400 |
Granted (in shares) | 0 | |
Capitalized stock-based compensation | $ 2,500 | 1,500 |
Performance stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance shares outstanding (in shares) | 200,000 | |
Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Accrued compensation | $ 13,300 | $ 5,200 |
Shares issued (in shares) | 0 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2021 | |
Outstanding Stock Options | |||
Beginning balance (in shares) | 2,597 | ||
Exercised (in shares) | (387) | ||
Canceled, forfeited, or expired (in shares) | (4) | ||
Ending balance (in shares) | 2,206 | 2,597 | |
Exercisable and expected to vest (in shares) | 1,636 | 1,777 | |
Weighted-Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 10.37 | ||
Exercised (in dollars per share) | 6.83 | ||
Canceled, forfeited, or expired (in dollars per share) | 10.41 | ||
Ending balance (in dollars per share) | 10.99 | $ 10.37 | |
Exercisable and expected to vest (in dollars per share) | $ 9.33 | $ 8.53 | |
Additional Disclosures | |||
Options outstanding, weighted average remaining contractual term | 3 years 1 month 6 days | 3 years 2 months 12 days | |
Exercisable and expected to vest, weighted average remaining contractual term | 2 years 9 months 18 days | 2 years 10 months 24 days | |
Options outstanding, aggregate intrinsic value | $ 679,266 | $ 585,829 | |
Exercised, aggregate intrinsic value | 100,737 | $ 91,400 | |
Exercisable and expected to vest, aggregate intrinsic value | $ 506,449 | $ 404,151 |
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 | 3 Months Ended | |
Oct. 31, 2021 | Jul. 31, 2021 | |
Underlying Shares | ||
Beginning balance (in shares) | 7,763 | |
Granted (in shares) | 1,027 | |
Vested (in shares) | (972) | |
Canceled or forfeited (in shares) | (185) | |
Ending balance (in shares) | 7,633 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 100.84 | |
Granted (in dollars per share) | 264.06 | |
Vested (in dollars per share) | 102.19 | |
Canceled or forfeited (in shares) | 108.57 | |
Ending balance (in dollars per share) | $ 122.44 | |
Aggregate Intrinsic Value | ||
Balance | $ 2,433,826 | $ 1,831,376 |
Vested | $ 265,802 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 89,903 | $ 57,185 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 4,986 | 3,009 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 40,720 | 31,316 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 27,259 | 14,123 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 16,938 | $ 8,737 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 2,479 | $ 498 |
Net Loss Per Share - Net Loss P
Net Loss Per Share - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (90,801) | $ (55,006) |
Weighted-average shares used in computing net loss per share, basic (in shares) | 139,296 | 133,452 |
Weighted-average shares used in computing net loss per share, diluted (in shares) | 139,296 | 133,452 |
Net loss per share, basic (in dollars per share) | $ (0.65) | $ (0.41) |
Net loss per share, diluted (in dollars per share) | $ (0.65) | $ (0.41) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 18,290 | 13,760 |
Number of shares if notes converted (in shares) | 7,600 | |
Conversion price (in dollars per share) | $ 150.80 | |
Unvested RSUs and shares of common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 7,085 | 8,161 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 2,206 | 4,475 |
Unvested PSAs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 676 | 577 |
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) | 697 | 547 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 7,626 | 0 |