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Prepaid expenses and other current assets

26,464

23,843

28,942

28,362

Total current assets

592,901

580,134

Property and equipment—net

67,575

58,072

Accrued compensation and benefits

55,520

49,684

Intangible assets, net

24,895

26,001

Goodwill

16,672

Other assets—non-current

7,347

7,649

Total assets

764,910

738,212

Current liabilities:

Accounts payable

68,629

73,725

50,301

57,521

9,431

9,707

Total current liabilities

190,592

170,123

318,953

311,076

Early exercised stock options liability

218,252

198,933

571

851

Other liabilities—non-current

10,554

10,289

Total liabilities

548,330

521,149

Commitments and contingencies (Note 6)

Stockholders’ equity:

Preferred stock, par value of $0.000025 per share— 200,000,000 shares authorized as of July 31, 2017 and October 31, 2017; no shares issued and outstanding as of July 31, 2017 and October 31, 2017

Common stock, par value of $0.000025 per share—1,200,000,000 (1,000,000,000 Class A, 200,000,000 Class B) shares authorized as of July 31, 2017 and October 31, 2017; 154,636,520 (93,570,171 Class A and 61,066,349 Class B) and 159,887,325 (108,173,525 Class A and 51,713,800 Class B) shares issued and outstanding as of July 31, 2017 and October 31, 2017

Additional paid-in capital

1,009,268

948,134

Accumulated other comprehensive loss

(236)

(106)

Accumulated deficit

(792,456)

(730,969)

Total stockholders’ equity

216,580

217,063

Total liabilities and stockholders’ equity

$ 764,910

$ 738,212

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

CONDENSED CONSOLIDATED BALANCE SHEETS (parenthetical) - $ / shares	Oct. 31, 2017	Jul. 31, 2017
Preferred stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Preferred stock, shares authorized (in shares)	200,000,000	200,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Common stock, shares authorized (in shares)	1,200,000,000	1,200,000,000
Common stock, shares issued (in shares)	159,887,325	154,636,520
Common stock, shares outstanding (in shares)	159,887,325	154,636,520
Common Class A
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	108,173,525	93,570,171
Common stock, shares outstanding (in shares)	108,173,525	93,570,171
Common Class B
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	51,713,800	61,066,349
Common stock, shares outstanding (in shares)	51,713,800	61,066,349

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Revenue:

$ 219,052

$ 153,536

56,500

35,025

275,552

188,561

^[1]

Cost of revenue:

85,162

52,210

^[1]

23,460

17,552

^[1]

Total cost of revenue

108,622

69,762

^[1]

166,930

118,799

^[1]

General and administrative

145,405

128,625

^[1]

Research and development

64,512

75,281

^[1]

16,052

29,372

^[1]

Total operating expenses

225,969

233,278

^[1]

Loss before provision for income taxes

(59,039)

(114,479)

^[1]

Other expense—net

(189)

(25,712)

^[1]

(59,228)

(140,191)

^[1]

Provision for income taxes

2,259

111

^[1]

Net loss per share attributable to common stockholders—basic and diluted (in dollars per share)

$ (61,487)

$ (140,302)

^[1]

$ (0.39)

$ (1.89)

^[1]

Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted (in shares)

156,780,631

74,373,788

^[1]

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Statement of Comprehensive Income [Abstract]

Other comprehensive loss —net of tax:

$ (61,487)

$ (140,302)

^[1]

Change in unrealized loss on available-for-sale securities, net of tax

(130)

(8)

^[2]

Total other comprehensive loss —net of tax

(130)

(8)

^[2]

Comprehensive loss

$ (61,617)

$ (140,310)

^[2]

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.
[2]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Cash flows from operating activities:

Adjustments to reconcile net loss to net cash provided by operating activities:

$ (61,487)

$ (140,302)

^[1]

Depreciation and amortization

11,333

8,572

^[2]

Stock-based compensation

35,515

90,728

^[2]

Loss on debt extinguishment

3,320

^[2]

Change in fair value of convertible preferred stock warrant liability

21,133

^[2]

Change in fair value of contingent consideration

282

186

^[2]

Changes in operating assets and liabilities:

131

183

^[2]

Accounts receivable—net

7,326

(36,213)

^[2]

Prepaid expenses and other assets

(8,457)

(4,780)

^[2]

(307)

840

^[2]

Accounts payable

(6,504)

5,052

^[2]

Accrued compensation and benefits

(7,220)

3,518

^[2]

(293)

717

^[2]

Net cash provided by operating activities

39,788

51,206

^[2]

10,107

4,160

^[2]

Cash flows from investing activities:

Purchases of property and equipment

(17,965)

(11,915)

^[2]

Purchases of investments

(59,108)

(87,448)

^[2]

Maturities of investments

35,920

19,950

^[2]

Sale of investments

31,638

^[2]

Payments for business acquisitions, net of cash acquired

(184)

^[2]

Net cash used in investing activities

(41,153)

(47,959)

^[2]

Cash flows from financing activities:

Proceeds from sales of shares through employee equity incentive plans, net of repurchases

25,231

1,472

^[2]

Proceeds from initial public offering, net of underwriting discounts and commissions

254,455

^[2]

Payments of offering costs, net

(85)

(2,243)

^[2]

Repayment of senior notes

(75,000)

^[2]

Debt extinguishment costs

(1,580)

^[2]

Payment of debt in conjunction with a business acquisition

(7,124)

^[2]

Net cash provided by financing activities

^[2]

25,146

170,053

^[2]

Net increase (decrease) in cash and cash equivalents

(5,900)

126,254

^[2]

Cash and cash equivalents—beginning of period

138,359

^[3]

99,209

^[2]

Cash and cash equivalents—end of period

132,459

225,463

^[2]

Supplemental disclosures of cash flow information:

Cash paid for income taxes

2,066

698

^[2]

Cash paid for interest

1,271

^[2]

Supplemental disclosures of non-cash investing and financing information:

Vesting of early exercised stock options

249

499

^[2]

Purchases of property and equipment included in accounts payable

7,084

5,033

^[2]

Offering costs included in accounts payable

367

^[2]

Conversion of convertible preferred stock to common stock, net of issuance costs

310,379

^[2]

Reclassification of convertible preferred stock warrant liability to additional paid-in capital

30,812

^[2]

Issuance of common stock for business acquisitions

$ 0

$ 27,063

^[2]

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.
[2]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.
[3]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

ORGANIZATION	3 Months Ended
ORGANIZATION	Oct. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION Organization and Description of Business—Nutanix, Inc. was incorporated in the state of Delaware in September 2009. Nutanix, Inc. is headquartered in San Jose, California, and together with its wholly-owned subsidiaries (collectively, “we” or "our") has operations throughout North America, Europe, Asia-Pacific, Middle East, Latin America and Africa. Our enterprise cloud operating system converges traditional silos of server, virtualization, storage and networking into one integrated solution and unifies private and public cloud into a single software fabric. We primarily sell our products and services to end-customers through distributors, resellers and original equipment manufacturers, or OEMs (collectively “Partners”).

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Oct. 31, 2017

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation and Significant Accounting Policies—The accompanying condensed consolidated financial statements, which include the accounts of Nutanix, Inc. and our wholly-owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, and, except for the impact of the adoption of the new accounting guidance related to revenue recognition, consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended July 31, 2017, filed with the Securities and Exchange Commission, or SEC, on September 18, 2017. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited, but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. Certain prior period amounts have been adjusted as a result of our early adoption of new accounting guidance related to revenue recognition. Refer to “Summary of Significant Accounting Policies” and “Recent Accounting Pronouncements” below for more information.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2017.

Effective August 1, 2017, we adopted the requirements of Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers, or ASC 606, as discussed in detail in Note 3. All amounts and disclosures set forth in this quarterly report on Form 10-Q have been updated to comply with ASC 606, as indicated by the "as adjusted" footnote.

Use of Estimates—The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include, but are not limited to, the best estimate of standalone selling prices for products and related support; determination of fair value of stock-based awards; accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions; warranty liability; commissions expense; fair value of assets and liabilities acquired in business combinations; and contingencies and litigation. Management evaluates these estimates and assumptions on an ongoing basis using historical experience and other factors and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could materially differ from those estimates and assumptions.

Concentration Risk:

Concentration of revenue and accounts receivable—We sell our products primarily through Partners and occasionally directly to end-customers. For the three months ended October 31, 2016 and 2017, no end-customer accounted for 10% or more of total revenue.

For each significant Partner, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows:



	Revenue				Accounts Receivable as of
	Three Months Ended October 31,				Accounts Receivable as of
Customers	2016 **As Adjusted		2017		July 31, 2017		October 31, 2017
Partner A	14	%	17	%	*		14	%
Partner B	20	%	28	%	12	%	17	%
Partner C	13	%	19	%	14	%	*
Partner D	12	%	10	%	20	%	16	%
Partner E	*		*		*		*
Partner F	*		12	%	18	%	11	%

___________________


*	Less than 10%


**	Adjusted to include the impact of the adoption of the new revenue recognition standard. Refer to Note 3 for more details on the impact of the adoption of this standard.

Summary of Significant Accounting Policies—Except for the accounting policies for revenue recognition, deferred revenue, and deferred commissions that were updated as a result of adopting ASC 606, there have been no changes to our significant accounting policies described in the Annual Report on Form 10-K for the fiscal year ended July 31, 2017, filed with the SEC on September 18, 2017, that have had a material impact on our condensed consolidated financial statements and related notes. See Note 3 for the summary of the new accounting policies under ASC 606.

Recently Adopted Accounting Pronouncement— In May 2014, the Financial Accounting Standards Board, or FASB, issued ASC 606. The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The FASB has issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations.

The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The new standard would have been effective for us beginning August 1, 2018, and adoption as of the original effective date of August 1, 2017 was permitted. We elected to early adopt the standard effective August 1, 2017 using the full retrospective method, which required us to restate our historical financial information to be consistent with the new standard. Refer to Note 3 for the details of impacts to previously reported results.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. We adopted this ASU effective August 1, 2017 and our adoption did not have a material impact on our condensed consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) to clarify the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. We adopted this ASU effective August 1, 2017 and as we did not have any business acquisition during the three months ended October 31, 2017, our adoption did not have any impact on our condensed consolidated financial statements.

Recently Issued and Not Yet Adopted Accounting Pronouncements—In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Further, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling beginning-of-period and end-of-period amounts shown on the statement of cash flows. ASU 2016-18 is effective for us beginning August 1, 2018, with early adoption permitted. We do not believe that adoption of this ASU will have a material impact on our condensed consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 will require us to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for us beginning August 1, 2018, with early adoption permitted. We are currently evaluating the effect the adoption of this guidance will have on our condensed consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for us beginning August 1, 2018. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. We are currently evaluating the effect the adoption of this guidance will have on our condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which requires recognition of right-to-use lease assets and lease liabilities for all leases (with the exception of short-term leases) on the balance sheet of lessees. ASU 2016-02 is effective for us beginning August 1, 2019, with early adoption permitted. This new standard requires a modified retrospective transition approach and provides certain optional transition relief. We are currently evaluating the effect the adoption of this guidance will have on our condensed consolidated financial statements.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

3 Months Ended

Oct. 31, 2017

Revenue Recognition and Deferred Revenue [Abstract]

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

Revenue Recognition—Effective August 1, 2017, we adopted ASC 606 using the full retrospective method, which required us to restate our historical financial information to be consistent with the standard. The most significant impact of the standard related to the timing of revenue recognition for certain software licenses sold with post contract customer support, or PCS, for which we did not have vendor specific objective evidence, or VSOE, of fair value under the previous revenue recognition guidance. Under the new standard, the requirement to have VSOE for undelivered elements is eliminated and we now recognize revenue for such software licenses upon transfer of control to our customers. In addition, the adoption of ASC 606 has also resulted in differences in the timing of recognition of contract costs, such as sales commissions, as well as the corresponding impacts to provision for income taxes. The adoption of the standard had no significant impact to the provision for income taxes and had no impact to the net cash from or used in operating, investing, or financing on our condensed consolidated statements of cash flows. See ASC 606 Adoption Impact to Reported Results below for the impact of adoption of the standard on our condensed consolidated balance sheets and condensed consolidated statements of operations.

ASC 606 Adoption Impact to Previously Reported Results

We adjusted our condensed consolidated financial statements from amounts previously reported due to the adoption of ASC 606. Select condensed consolidated balance sheet line items, which reflects the adoption of ASC 606, are as follows:



Balance Sheet:	As of July 31, 2017
	As Previously Reported		Impact of Adoption				As Adjusted
	(in thousands)
Assets
Deferred commissions - current	$	27,679	$	(3,836	)	(1)	$	23,843
Deferred commissions - non-current	33,709		15,975			(1)	49,684
Total deferred commissions	$	61,388	$	12,139			$	73,527
Liabilities
Deferred revenue - current	$	233,498	$	(63,375	)	(2)	$	170,123
Deferred revenue - non-current	292,573		(93,640		)	(2)	198,933
Total deferred revenue	$	526,071	$	(157,015	)		$	369,056

Accrued expenses and other current liabilities	$	9,414	$	293		(3)	$	9,707

Stockholders' equity	$	48,202	$	168,861			$	217,063

_______________________

(1) Impact of cumulative change in commissions expense

(2) Impact of cumulative change in revenue

(3) Impact of cumulative change in provision for income taxes

Select unaudited condensed consolidated statement of operations line items, which reflects the adoption of ASC 606, are as follows:



	Three Months Ended October 31, 2016
	As Previously Reported			Impact of Adoption			As Adjusted
Revenue	(in thousands, except per share data)
Product	$	129,657		$	23,879		$	153,536
Support and other services	37,152			(2,127		)	35,025
Total revenue	$	166,809		$	21,752		$	188,561
Gross profit	$	97,047		$	21,752		$	118,799
Operating expenses
Sales and marketing expenses	$	128,775		$	(150	)	$	128,625
Loss from operations	$	(136,381	)	$	21,902		$	(114,479	)
Net Loss	$	(162,169	)	$	21,867		$	(140,302	)
Basic and diluted net loss per share	$	(2.18	)	$	0.29		$	(1.89	)

Unaudited revenue by geographic location based on bill-to location, which reflects the adoption of ASC 606, are as follows:



	Three Months Ended October 31, 2016
	As Previously Reported		Impact of Adoption		As Adjusted
	(in thousands)
U.S.	$	102,871	$	3,297	$	106,168
Europe, the Middle East and Africa	24,248		1,168		25,416
Asia-Pacific	28,908		16,939		45,847
Other Americas	10,782		348		11,130
Total revenue	$	166,809	$	21,752	$	188,561

The adoption impacted certain line items in the cash flows from operating activities as follows:



	Three Months Ended October 31, 2016
	As Previously Reported			Impact of Adoption			As Adjusted
Cash flows from operating activities:	(in thousands)
Net loss	$	(162,169	)	$	21,867		$	(140,302	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred commissions	$	(4,630	)	$	(150	)	$	(4,780	)
Accrued expenses and other liabilities	$	682		$	35		$	717
Deferred revenue	$	72,958		$	(21,752	)	$	51,206

The core principle of ASC 606 is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. This principle is achieved through applying the following five-step approach:

•

Identification of the contract, or contracts, with a customer — A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer.

•

Identification of the performance obligations in the contract —Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, we apply judgment to determine whether promised goods or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised goods or services are accounted for as a combined performance obligation.


•	Determination of the transaction price —The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer.

•

Allocation of the transaction price to the performance obligations in the contract — If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price, or SSP, basis. We determine standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations.


•	Recognition of revenue when, or as, we satisfy a performance obligation — We satisfy performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer.

Disaggregation of Revenue

We generate revenue from the sale of our software solution, which can be delivered on a hardware appliance or on a stand-alone basis, PCS and professional services. A substantial portion of our revenue is generated via channel partners. We also sell our software solution through our OEM partners, Dell Technologies and Lenovo Group Ltd. These OEMs embed our software in their own hardware and we provide limited PCS on these transactions. All revenue recognized in the condensed consolidated statement of operations is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how we evaluate our financial performance:



	Three Months Ended October 31,
	2016		2017
	(in thousands)
Software revenue	$	104,745	$	138,214
Hardware revenue	48,791		80,838
Support and other services revenue	35,025		56,500
Total revenue	$	188,561	$	275,552

Software revenue —A substantial majority of our product revenue is generated from the sale of our software operating system, which is typically delivered on a hardware appliance that is configured to order, and can also be sold as stand-alone software, which is installed into our customers' separately procured hardware appliance. Software revenue includes our base operating system, which can be delivered through different platforms, and licenses to other additional features which are sold by us. Revenue from our software products is generally recognized upon transfer of control to our customers.

Hardware revenue —In transactions where we deliver the hardware appliance, we consider ourselves to be the principal in the transaction and we record revenue and costs of goods sold on a gross basis. In transactions where our customers procure hardware from another source, such as through our OEM partners, directly from our contract manufacturers, or from other manufacturers of Nutanix compatible hardware, we consider ourselves to be an agent for the hardware appliance. We consider the amount allocated to hardware revenue to be equivalent to the cost of the hardware procured. Hardware revenue is generally recognized upon transfer of control to our customers.

Support and other services revenue—We generate our support and other services revenue primarily from PCS contracts, and, to a lesser extent, from professional services. The majority of our product sales are sold in conjunction with PCS contracts with terms ranging from one to five years. We recognize revenue from PCS contracts ratably over the contractual service period. The service period typically commences upon transfer of control of the corresponding products to our customer. We recognize revenue related to professional services as they are performed.

Contracts with multiple performance obligations—Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative SSP, basis. For deliverables that we routinely sell separately, such as support and maintenance on our core offerings, we determine SSP by evaluating the stand-alone sales over the trailing 12-months. For those that are not sold routinely, we determine SSP based on our overall pricing trends and objectives, taking into consideration market conditions and other factors, including the value of our contracts, the products sold and geographic locations.

Contract Balances—The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is recognized in the period we deliver goods or provide services or when our right to consideration is unconditional.

Payment terms on invoiced amounts are typically 30 days. The balance of accounts receivable, net of allowance for doubtful accounts, as of July 31, 2017 and October 31, 2017 is presented in the accompanying consolidated balance sheets.

Costs to obtain and fulfill a contract—We capitalize certain contract acquisition costs consisting primarily of commissions paid and the related payroll taxes when customer contracts are signed. Commission expenses paid to sales personnel and the related payroll taxes that are incremental to obtaining customer contracts are capitalized. The deferred sales commission amounts are amortized based on the expected future revenue streams under the customer contracts. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying consolidated statements of operations. We classify deferred commissions as current or non-current based on the timing of when we expect to recognize the expense. The short-term portion of these costs is deferred and shown as "Deferred commissions -current" and the long-term portion is shown as "Deferred commissions-non-current" in the condensed consolidated balance sheets. These costs are periodically reviewed for impairment. Significant changes in the balance of total deferred commissions (contract asset) during the three months ended October 31, 2017 are as follows:



	As of July 31, 2017 *As Adjusted		Additions		Commissions Recognized			As of October 31, 2017
	(in thousands)
Deferred commissions	$	73,527	$	33,807	$	(25,350	)	$	81,984

Of the $82.0 million total deferred commissions balance as of October 31, 2017, we expect to recognize approximately 32% as commission expense over the next 12 months and the remainder thereafter.

Deferred revenue— We record deferred revenue when cash payments are received in advance of our performance. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the consolidated balance sheet date. Significant changes in the balance of total deferred revenue (contract liability) during the three months ended October 31, 2017 are as follows:



	As of July 31, 2017 *As Adjusted		Additions		Revenue Recognized			As of October 31, 2017
	(in thousands)
Deferred revenue	$	369,056	$	96,288	$	(56,500	)	$	408,844

* See details above for the summary of adjustments to deferred commission and deferred revenue as a result of the adoption of ASC 606.

During the three months ended October 31, 2017, we recognized $49.6 million pertaining to amounts deferred as of July 31, 2017. During the three months ended October 31, 2016, we recognized $29.6 million pertaining to amounts deferred as of July 31, 2016.

The majority of our contracted but not invoiced performance obligations are subject to cancellation terms. Revenue allocated to remaining performance obligations represent contracted revenue that has not yet been recognized (“contracted not recognized”), which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenue in future periods, and excludes performance obligations that are subject to cancellation terms. Contracted not recognized revenue was $442.4 million as of October 31, 2017, of which we expect to recognize approximately 49% of the revenue over the next 12 months and the remainder thereafter.

FAIR VALUE MEASUREMENTS

3 Months Ended

Oct. 31, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

The fair value of our financial assets and liabilities measured on a recurring basis is as follows:



	As of July 31, 2017
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	34,784	$	—	$	—	$	34,784
Commercial paper	—		23,041		—		23,041
Short-term investments:
Corporate bonds	—		160,634		—		160,634
Commercial paper	—		36,084		—		36,084
U.S. government securities	—		13,976				13,976
Total measured at fair value	34,784		233,735		—		268,519
Cash							80,534
Total cash, cash equivalents and short-term investments							$	349,053
Financial Liabilities:
Contingent consideration	$	—	$	—	$	4,295	$	4,295



	As of October 31, 2017
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	30,561	$	—	$	—	$	30,561
Commercial paper	—		9,986		—		9,986
Short-term investments:
Corporate bonds	—		185,757		—		185,757
Commercial paper	—		36,768		—		36,768
U.S. government securities	—		10,961		—		10,961
Total measured at fair value	$	30,561	$	243,472	$	—	274,033
Cash							91,912
Total cash, cash equivalents and short-term investments							$	365,945
Financial Liabilities:
Contingent consideration	$	—	$	—	$	4,577	$	4,577

A summary of the changes in the fair value of our contingent consideration is as follows:



	Three Months Ended October 31,
	2016		2017
	(in thousands)
Contingent consideration—beginning balance	$	—	$	4,295
Assumed in a business acquisition	2,371		—
Change in fair value*	186		282
Contingent consideration—ending balance	$	2,557	$	4,577

____________


*	Recorded in the condensed consolidated statements of operations within general and administrative expenses

We remeasure the fair value of our Level 3 contingent consideration liability using the Monte Carlo simulation on projected future payments. The fair value is determined by calculating the net present value of the expected payments using significant inputs that are not observable in the market, including the probability of achieving the milestone, estimated bookings and discount rates. The fair value of the contingent consideration will increase or decrease according to the movement of the inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

BALANCE SHEET COMPONENTS

3 Months Ended

Oct. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

Short-Term Investments—The amortized cost of our short-term investments approximate their fair value. As of July 31, 2017 and October 31, 2017, unrealized gains or losses from our short-term investments were immaterial and there were no securities in an unrealized loss position for more than 12 months.

The following table summarizes the estimated fair value of our investments in marketable debt securities, by the contractual maturity date:



	As of October 31, 2017
	(in thousands)
Due within 1 year	$	153,044
Due after 1 year through 3 years	80,442
Total	$	233,486

Property and Equipment—Net—Property and equipment, net consists of the following:



	Estimated Useful Life (In months)	As of
	Estimated Useful Life (In months)	July 31, 2017			October 31, 2017
		(in thousands)
Computer, production, engineering and other equipment	36	$	85,280		$	97,027
Demonstration units	12	46,387			49,109
Leasehold improvements	*	10,562			14,605
Furniture and fixtures	60	4,744			5,483
Total property and equipment—gross		146,973			166,224
Less accumulated depreciation and amortization		(88,901		)	(98,649		)
Total property and equipment—net		$	58,072		$	67,575

____________


*	Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term.

Depreciation and amortization expense related to our property and equipment was $8.2 million and $10.2 million for the three months ended October 31, 2016 and 2017, respectively.

Intangible Assets—Net—Intangible assets, net consists of the following:



	As of
	July 31, 2017			October 31, 2017
	(in thousands
Indefinite-lived intangible asset:
In-process R&D*	$	16,100		$	—
Finite-lived intangible assets:
Developed technology*	7,300			23,400
Customer relationships	4,830			4,830
Total finite-lived intangible assets, gross	12,130			28,230
Total intangible assets, gross	28,230			28,230
Less:
Accumulated amortization of developed technology	(1,314		)	(2,209		)
Accumulated amortization of customer relationships	(915		)	(1,126		)
Total accumulated amortization	(2,229		)	(3,335		)
Intangible assets, net	$	26,001		$	24,895

* We started amortizing the in-process R&D during the first quarter of fiscal 2018 because the related technology was completed and released in the first quarter of fiscal 2018. We are amortizing the developed technology using the straight-line method over a useful life of 5 years. Based on the foregoing, the balance of in-process R&D is now presented as part of developed technology under finite-lived intangible assets as of October 31, 2017.

The amortization expense of finite-lived intangible assets is being recognized in the condensed consolidated statement of operations within product cost of revenue for developed technology and sales and marketing expenses for customer relationships.

Estimated future amortization expense of finite-lived intangible assets is as follows:



Year Ending July 31:	(In thousands)
2018 (remaining nine months)	$	4,066
2019	5,421
2020	5,421
2021	5,421
2022	4,224
Thereafter	342
Total	$	24,895

Accrued Compensation and Benefits—Accrued compensation and benefits consists of the following:



	As of
	July 31, 2017		October 31, 2017
	(in thousands)
Accrued commissions	$	20,388	$	19,410
Accrued vacation	6,286		6,984
Contributions to ESPP withheld	14,371		6,008
Accrued bonus	7,342		5,384
Payroll taxes payable	3,434		6,603
Other	5,700		5,912
Total accrued compensation and benefits	$	57,521	$	50,301

Accrued Expenses and Other Current Liabilities—Accrued expenses and other current liabilities consists of the following:



	As of
	July 31, 2017		October 31, 2017
	(in thousands)
Accrued professional services	$	4,167	$	3,635
Income taxes payable*	3,873		3,929
Other	1,667		1,867
Total accrued expenses and other current liabilities	$	9,707	$	9,431

* Balance as of July 31, 2017 was adjusted to reflect the impact of the adoption of ASC 606 on income taxes. See Note 3 for a summary of adjustments.

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Oct. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Except for the items below, there have been no material changes to our commitments compared to the commitments described in Note 7, Commitments and Contingencies, in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K for the fiscal year ended July 31, 2017. Purchase Commitments—In the normal course of business, we make commitments with our third-party hardware contract manufacturers to manufacture our inventories and non-standard components based on our forecasts. These commitments consist of obligations for on-hand inventories and non-cancelable purchase orders for non-standard components. We record a charge for firm, non-cancelable and unconditional purchase commitments with our third-party hardware contract manufacturers for non-standard components when and if quantities exceed our future demand forecasts through a charge to cost of product sales. As of October 31, 2017, we had approximately $23.6 million of non-cancelable purchase commitments pertaining to our normal operations, and approximately $79.0 million of other purchase obligations with our contract manufacturers.

STOCKHOLDERS’ EQUITY	3 Months Ended
STOCKHOLDERS’ EQUITY	Oct. 31, 2017
Equity [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY Preferred Stock Upon the closing of our initial public offering, or IPO, in October 2016, we filed an Amended and Restated Certificate of Incorporation, which authorized the issuance of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by our Board of Directors, or the Board. As of October 31, 2017, there were 200,000,000 shares of preferred stock authorized with a par value of $0.000025 and no shares of preferred stock issued or outstanding. Common Stock We have two classes of authorized common stock, Class A common stock and Class B common stock. As of October 31, 2017, we had 1,000,000,000 shares of Class A common stock authorized with a par value of $0.000025 per share and 200,000,000 shares of Class B common stock authorized with a par value of $0.000025 per share. As of October 31, 2017, 108,173,525 shares of Class A common stock were issued and outstanding and 51,713,800 shares of Class B common stock were issued and outstanding. Holders of Class A common stock are entitled to one vote for each share of Class A common stock held on all matters submitted to a vote of stockholders and holders of Class B common stock are entitled to ten votes for each share of Class B common stock held on all matters submitted to a vote of stockholders. Except with respect to voting, the rights of the holders of Class A and Class B common stock are identical. Shares of Class B common stock are voluntarily convertible into shares of Class A common stock at the option of the holder and generally automatically convert into shares of our Class A common stock upon a transfer. Shares issued in connection with exercises of stock options, vesting of restricted stock units, or shares purchased under the employee stock purchase plan are generally automatically converted into shares of our Class A common stock. Shares issued in connection with an exercise of the common stock warrants are converted into shares of our Class B common stock.

EQUITY AWARD PLANS

3 Months Ended

Oct. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

EQUITY AWARD PLANS

Stock Plans—In June 2010, we adopted the 2010 Stock Plan, or the 2010 Plan, and in December 2011, we adopted the 2011 Stock Plan, or 2011 Plan. In December 2015, the Board adopted the 2016 Equity Incentive Plan, or the 2016 Plan, and together with the 2010 Plan and 2011 Plan, the Stock Plans, which was amended in September 2016. Our stockholders approved the 2016 Plan in March 2016 and it became effective in connection with our IPO in October 2016. As a result, upon the IPO, we ceased granting additional stock awards under the 2010 Plan and 2011 Plan and the 2010 Plan and 2011 Plan terminated. Any outstanding stock awards under the 2010 Plan and 2011 Plan will remain outstanding, subject to the terms of the applicable plan and award agreements, until such shares are issued under those stock awards, by exercise of stock options or settlement of RSUs, or until those stock awards become vested or expired by their terms. Under the 2016 Plan, we may grant incentive stock options, or ISOs, non-statutory stock options, or NSOs, restricted stock, or RS, restricted stock units, or RSUs, and stock appreciation rights, or SARs, to employees, directors and consultants. We have initially reserved 22,400,000 shares of our Class A common stock for issuance under the 2016 Plan. The number of shares of Class A common stock available for issuance under the 2016 Plan also includes an annual increase on the first day of each fiscal year beginning in fiscal year 2018, equal to the lesser of: 18,000,000 shares, 5% of the outstanding shares of classes of common stock as of the last day of our immediately preceding fiscal year, or such other amount as may be determined by the Board. Accordingly, on August 1, 2017, the number of shares of Class A common stock available for issuance under our 2016 Plan increased by 7,731,826 shares pursuant to these provisions. As of October 31, 2017, we had reserved a total of 56,636,515 shares for the issuance of equity awards under the Stock Plans, of which 22,201,692 shares were still available for grant.

Restricted Stock Units

Performance RSUs. We granted RSUs that contain both service and performance conditions to our executives and employees, which we refer to as Performance RSUs. Vesting of the Performance RSUs is subject to continuous service with us and satisfaction of certain of our liquidity events, including the expiration of a lock-up period established in connection with the IPO, or both certain liquidity events and specified performance targets. While we recognize cumulative stock-based compensation expense for the portion of the awards for which the service condition has been satisfied when it is probable that the performance conditions will be met, vesting and settlement of the Performance RSUs are subject to the performance conditions actually being met. During the three months ended October 31, 2016, we began to recognize Performance RSUs with liquidity event performance conditions as the satisfaction of the performance conditions for vesting became probable.

The summary of RSU activity under the Stock Plans is as follows:



	Number of Shares		Grant Date Fair Value per Share
Outstanding—July 31, 2017	17,376,090		$	18.85
Granted	1,553,392		$	23.72
Released	(1,412,978	)	$	16.04
Canceled/forfeited	(771,957	)	$	23.58
Outstanding—October 31, 2017	16,744,547		$	19.32

Subsequent to October 31, 2017, we granted 7,311,448 RSUs to our employees with a weighted-average grant date fair value of $34.39 per share.

Stock Options—We did not grant any stock options during the three months ended October 31, 2017. A total of 2,580,224 stock options were exercised during the three months ended October 31, 2017 for an average exercise price of $3.09. As of October 31, 2017, 17,656,096 stock options remained outstanding.

Employee Stock Purchase Plan—In December 2015, the Board adopted the 2016 Employee Stock Purchase Plan, which was subsequently amended in January 2016 and September 2016 and approved by our stockholders in March 2016, or the 2016 ESPP. The 2016 ESPP became effective in connection with our IPO. A total of 3,800,000 shares of Class A common stock were initially reserved for issuance under the 2016 ESPP. The number of shares of Class A common stock available for sale under the 2016 ESPP also includes an annual increase on the first day of each fiscal year beginning in fiscal 2018, equal to the lesser of: 3,800,000 shares, 1% of the outstanding shares of classes of common stock as of the last day of our immediately preceding fiscal year, or such other amount as may be determined by the Board. Accordingly, on August 1, 2017, the number of shares of Class A common stock available for issuance under 2016 ESPP increased by 1,546,365 shares pursuant to these provisions.

The 2016 ESPP allows eligible employees to purchase shares of our Class A common stock at a discount through payroll deductions of up to 15% of eligible compensation, subject to caps of $25,000 in any calendar year and 1,000 shares on any purchase date. The 2016 ESPP provides for 12-month offering periods generally beginning March and September of each year, and each offering period consists of two six-month purchase periods.

On each purchase date, participating employees will purchase Class A common stock at a price per share equal to 85% of the lesser of the fair market value of our Class A common stock on (i) the first trading day of the applicable offering period and (2) the last trading day of each purchase period in the applicable offering period. If the stock price of our Class A common stock on any purchase date in an offering period is lower than the stock price on the enrollment date of that offering period, the offering period will immediately reset after the purchase of shares on such purchase date and automatically roll into a new offering period.

For the three months ended October 31, 2017, 1,261,104 shares of common stock were purchased for an aggregate amount of $17.4 million. As of October 31, 2017, 2,839,207 shares were available for future issuance under the 2016 ESPP.

We use the Black-Scholes option-pricing model to determine the fair value of shares purchased under the 2016 ESPP with the following weighted-average assumptions on the date of grant:



	Three Months Ended October 31,
	2016		2017
Expected term (in years)	0.75		0.75
Risk-free interest rate	0.6	%	1.25	%
Volatility	50.6	%	50.2	%
Dividend yield	—	%	—	%

Stock-Based Compensation —Total stock-based compensation expense recognized for stock awards in the consolidated statements of operations is as follows (in thousands):



	Three Months Ended October 31,
	2016		2017
	(in thousands)
Cost of revenue:
Product	$	966	$	570
Support and other services	3,350		2,072
Sales and marketing	33,891		13,766
Research and development	34,026		15,542
General and administrative	18,495		3,565
Total stock-based compensation expense	$	90,728	$	35,515

Stock-based compensation expense for the three months ended October 31, 2016 included cumulative stock-compensation expense related to stock awards with performance conditions, which vesting was deemed probable in the first quarter of fiscal 2017 upon the successful completion of our IPO. Prior to fiscal 2017, no expense was recognized related to these stock awards with performance conditions as vesting was not deemed probable. The cumulative stock-based compensation expense recorded in the first quarter of fiscal 2017 was for the portion of the awards for which the relevant service condition had been satisfied and we have continued to recognize the remaining expense over the remaining service period. Stock-based compensation expense related to stock awards without performance conditions is recognized on a straight-line basis over the requisite service period.

As of October 31, 2017, unrecognized stock-based compensation expense related to the outstanding stock awards was approximately $272.6 million and is expected to be recognized over a weighted-average period of approximately 2.2 years.

INCOME TAXES	3 Months Ended
INCOME TAXES	Oct. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES During the three months ended October 31, 2017, the income tax provision of $2.3 million primarily consisted of foreign taxes on our international operations and U.S. state income taxes. During the three months ended October 31, 2016, the income tax provision of $0.1 million primarily consisted of foreign taxes on our international operations and U.S. state income taxes, offset by the partial release of $1.5 million of the U.S. valuation allowance in connection with a business acquisition completed during the three months ended October 31, 2016 and tax benefit related to the early adoption of ASU 2016-09. The net deferred tax liability recorded in connection with a business acquisition completed during the three months ended October 31, 2016 provided an additional source of taxable income to support the realizability of the pre-existing deferred tax assets and as a result, we released a portion of the U.S. valuation allowance.

NET LOSS PER SHARE

3 Months Ended

Oct. 31, 2017

Earnings Per Share [Abstract]

NET LOSS PER SHARE

We compute basic net income (loss) per share using the weighted average number of common shares outstanding during the period. We compute diluted net income (loss) per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares include shares issuable upon the exercise of stock options, the exercise of common stock warrants, the vesting of RSUs, and each purchase under our ESPP, under the treasury stock method.

In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.

The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, our undistributed earnings or losses are allocated on a proportionate basis among the holders of both Class A and Class B common stock. As a result, the net income (loss) per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Net Loss Per Share Attributable to Class A and Class B Common Stockholders—The computation of basic and diluted net loss per share is as follows (in thousands, except share and per share data):



	Three Months Ended October 31,
	2016 *As Adjusted			2017
Numerator:
Net loss	$	(140,302	)	$	(61,487	)
Denominator:
Weighted-average shares—basic and diluted	74,373,788			156,780,631
Net loss per share attributable to common stockholders—basic and diluted	$	(1.89	)	$	(0.39	)

* See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive are as follows:



	Three Months Ended October 31,
	2016	2017
Outstanding stock options and RSUs	40,764,842	34,400,643
Employee stock purchase plan	2,304,960	2,089,383
Common stock subject to repurchase	727,254	152,558
Common stock warrants	769,094	34,180
Total	44,566,150	36,676,764

SEGMENT INFORMATION

3 Months Ended

Oct. 31, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

Our chief operating decision maker is a group which is comprised of our Chief Executive Officer, Chief Financial Officer and President. This group reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, we have a single reportable segment.

The following table sets forth revenue by geographic location based on bill-to location:



	Three Months Ended October 31,
	2016 *As Adjusted		2017
	(in thousands)
U.S.	$	106,168	$	187,365
Europe, the Middle East and Africa	25,416		37,444
Asia-Pacific	45,847		44,859
Other Americas	11,130		5,884
Total revenue	$	188,561	$	275,552

* See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

Pursuant to our arrangement with one of our OEMs, prior to the fourth quarter of fiscal 2017, billings to one of our OEMs were entirely attributed to Asia-Pacific. Beginning in the fourth quarter of fiscal 2017, billings were attributed to various geographic locations.

As of July 31, 2017 and October 31, 2017, $63.3 million and $72.7 million, respectively, of our net long-lived assets were located in the U.S.

RELATED PARTY TRANSACTIONS	3 Months Ended
RELATED PARTY TRANSACTIONS	Oct. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS We enter into various transactions with our related parties in the normal course of business. During the three months ended October 31, 2016 and 2017, our purchases of goods or services from related parties totaled $0.2 million and $0.3 million, respectively. We did not have any payables outstanding to related parties as of July 31, 2017 and October 31, 2017. Revenue from related parties for the three months ended October 31, 2016 and 2017 were $0.1 million and $0.3 million, respectively. We did not have any receivables outstanding from related parties as of July 31, 2017 and October 31, 2017. One member of our Board is affiliated with Lightspeed Venture Partners. As of October 31, 2017, entities affiliated with Lightspeed Venture partners owned approximately 7.3% of all our outstanding Class A common stock and Class B common stock combined.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Oct. 31, 2017
Accounting Policies [Abstract]
Principles of Consolidation and Significant Accounting Policies	Principles of Consolidation and Significant Accounting Policies—The accompanying condensed consolidated financial statements, which include the accounts of Nutanix, Inc. and our wholly-owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States, or U.S. GAAP, and, except for the impact of the adoption of the new accounting guidance related to revenue recognition, consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended July 31, 2017, filed with the Securities and Exchange Commission, or SEC, on September 18, 2017. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited, but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. Certain prior period amounts have been adjusted as a result of our early adoption of new accounting guidance related to revenue recognition. Refer to “Summary of Significant Accounting Policies” and “Recent Accounting Pronouncements” below for more information. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2017. Effective August 1, 2017, we adopted the requirements of Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers, or ASC 606, as discussed in detail in Note 3. All amounts and disclosures set forth in this quarterly report on Form 10-Q have been updated to comply with ASC 606, as indicated by the "as adjusted" footnote.
Use of Estimates	Use of Estimates—The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include, but are not limited to, the best estimate of standalone selling prices for products and related support; determination of fair value of stock-based awards; accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions; warranty liability; commissions expense; fair value of assets and liabilities acquired in business combinations; and contingencies and litigation. Management evaluates these estimates and assumptions on an ongoing basis using historical experience and other factors and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could materially differ from those estimates and assumptions.
Concentration Risk	Concentration Risk: Concentration of revenue and accounts receivable—We sell our products primarily through Partners and occasionally directly to end-customers. For the three months ended October 31, 2016 and 2017, no end-customer accounted for 10% or more of total revenue.
Recently Issued and Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncement— In May 2014, the Financial Accounting Standards Board, or FASB, issued ASC 606. The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The FASB has issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The new standard would have been effective for us beginning August 1, 2018, and adoption as of the original effective date of August 1, 2017 was permitted. We elected to early adopt the standard effective August 1, 2017 using the full retrospective method, which required us to restate our historical financial information to be consistent with the new standard. Refer to Note 3 for the details of impacts to previously reported results. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. We adopted this ASU effective August 1, 2017 and our adoption did not have a material impact on our condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) to clarify the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. We adopted this ASU effective August 1, 2017 and as we did not have any business acquisition during the three months ended October 31, 2017, our adoption did not have any impact on our condensed consolidated financial statements. Recently Issued and Not Yet Adopted Accounting Pronouncements—In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Further, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling beginning-of-period and end-of-period amounts shown on the statement of cash flows. ASU 2016-18 is effective for us beginning August 1, 2018, with early adoption permitted. We do not believe that adoption of this ASU will have a material impact on our condensed consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 will require us to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for us beginning August 1, 2018, with early adoption permitted. We are currently evaluating the effect the adoption of this guidance will have on our condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for us beginning August 1, 2018. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. We are currently evaluating the effect the adoption of this guidance will have on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which requires recognition of right-to-use lease assets and lease liabilities for all leases (with the exception of short-term leases) on the balance sheet of lessees. ASU 2016-02 is effective for us beginning August 1, 2019, with early adoption permitted. This new standard requires a modified retrospective transition approach and provides certain optional transition relief. We are currently evaluating the effect the adoption of this guidance will have on our condensed consolidated financial statements.
Revenue Recognition	Revenue Recognition—Effective August 1, 2017, we adopted ASC 606 using the full retrospective method, which required us to restate our historical financial information to be consistent with the standard. The most significant impact of the standard related to the timing of revenue recognition for certain software licenses sold with post contract customer support, or PCS, for which we did not have vendor specific objective evidence, or VSOE, of fair value under the previous revenue recognition guidance. Under the new standard, the requirement to have VSOE for undelivered elements is eliminated and we now recognize revenue for such software licenses upon transfer of control to our customers. In addition, the adoption of ASC 606 has also resulted in differences in the timing of recognition of contract costs, such as sales commissions, as well as the corresponding impacts to provision for income taxes. The adoption of the standard had no significant impact to the provision for income taxes and had no impact to the net cash from or used in operating, investing, or financing on our condensed consolidated statements of cash flows. See ASC 606 Adoption Impact to Reported Results below for the impact of adoption of the standard on our condensed consolidated balance sheets and condensed consolidated statements of operations.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Oct. 31, 2017

Accounting Policies [Abstract]

Schedules of Concentration of Revenue and Accounts Receivable

For each significant Partner, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows:



	Revenue				Accounts Receivable as of
	Three Months Ended October 31,				Accounts Receivable as of
Customers	2016 **As Adjusted		2017		July 31, 2017		October 31, 2017
Partner A	14	%	17	%	*		14	%
Partner B	20	%	28	%	12	%	17	%
Partner C	13	%	19	%	14	%	*
Partner D	12	%	10	%	20	%	16	%
Partner E	*		*		*		*
Partner F	*		12	%	18	%	11	%

___________________


*	Less than 10%


**	Adjusted to include the impact of the adoption of the new revenue recognition standard. Refer to Note 3 for more details on the impact of the adoption of this standard.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS (Tables)

3 Months Ended

Oct. 31, 2017

Revenue Recognition and Deferred Revenue [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Select condensed consolidated balance sheet line items, which reflects the adoption of ASC 606, are as follows:



Balance Sheet:	As of July 31, 2017
	As Previously Reported		Impact of Adoption				As Adjusted
	(in thousands)
Assets
Deferred commissions - current	$	27,679	$	(3,836	)	(1)	$	23,843
Deferred commissions - non-current	33,709		15,975			(1)	49,684
Total deferred commissions	$	61,388	$	12,139			$	73,527
Liabilities
Deferred revenue - current	$	233,498	$	(63,375	)	(2)	$	170,123
Deferred revenue - non-current	292,573		(93,640		)	(2)	198,933
Total deferred revenue	$	526,071	$	(157,015	)		$	369,056

Accrued expenses and other current liabilities	$	9,414	$	293		(3)	$	9,707

Stockholders' equity	$	48,202	$	168,861			$	217,063

_______________________

(1) Impact of cumulative change in commissions expense

(2) Impact of cumulative change in revenue

(3) Impact of cumulative change in provision for income taxes

Select unaudited condensed consolidated statement of operations line items, which reflects the adoption of ASC 606, are as follows:



	Three Months Ended October 31, 2016
	As Previously Reported			Impact of Adoption			As Adjusted
Revenue	(in thousands, except per share data)
Product	$	129,657		$	23,879		$	153,536
Support and other services	37,152			(2,127		)	35,025
Total revenue	$	166,809		$	21,752		$	188,561
Gross profit	$	97,047		$	21,752		$	118,799
Operating expenses
Sales and marketing expenses	$	128,775		$	(150	)	$	128,625
Loss from operations	$	(136,381	)	$	21,902		$	(114,479	)
Net Loss	$	(162,169	)	$	21,867		$	(140,302	)
Basic and diluted net loss per share	$	(2.18	)	$	0.29		$	(1.89	)

Unaudited revenue by geographic location based on bill-to location, which reflects the adoption of ASC 606, are as follows:



	Three Months Ended October 31, 2016
	As Previously Reported		Impact of Adoption		As Adjusted
	(in thousands)
U.S.	$	102,871	$	3,297	$	106,168
Europe, the Middle East and Africa	24,248		1,168		25,416
Asia-Pacific	28,908		16,939		45,847
Other Americas	10,782		348		11,130
Total revenue	$	166,809	$	21,752	$	188,561

The adoption impacted certain line items in the cash flows from operating activities as follows:



	Three Months Ended October 31, 2016
	As Previously Reported			Impact of Adoption			As Adjusted
Cash flows from operating activities:	(in thousands)
Net loss	$	(162,169	)	$	21,867		$	(140,302	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred commissions	$	(4,630	)	$	(150	)	$	(4,780	)
Accrued expenses and other liabilities	$	682		$	35		$	717
Deferred revenue	$	72,958		$	(21,752	)	$	51,206

Revenue by Arrangement, Disclosure

The following table depicts the disaggregation of revenue according to revenue type and is consistent with how we evaluate our financial performance:



	Three Months Ended October 31,
	2016		2017
	(in thousands)
Software revenue	$	104,745	$	138,214
Hardware revenue	48,791		80,838
Support and other services revenue	35,025		56,500
Total revenue	$	188,561	$	275,552

Deferred Commissions, by Arrangement, Disclosure

Significant changes in the balance of total deferred commissions (contract asset) during the three months ended October 31, 2017 are as follows:



	As of July 31, 2017 *As Adjusted		Additions		Commissions Recognized			As of October 31, 2017
	(in thousands)
Deferred commissions	$	73,527	$	33,807	$	(25,350	)	$	81,984

Deferred Revenue, by Arrangement, Disclosure

Significant changes in the balance of total deferred revenue (contract liability) during the three months ended October 31, 2017 are as follows:



	As of July 31, 2017 *As Adjusted		Additions		Revenue Recognized			As of October 31, 2017
	(in thousands)
Deferred revenue	$	369,056	$	96,288	$	(56,500	)	$	408,844

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Oct. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured on Recurring Basis

The fair value of our financial assets and liabilities measured on a recurring basis is as follows:



	As of July 31, 2017
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	34,784	$	—	$	—	$	34,784
Commercial paper	—		23,041		—		23,041
Short-term investments:
Corporate bonds	—		160,634		—		160,634
Commercial paper	—		36,084		—		36,084
U.S. government securities	—		13,976				13,976
Total measured at fair value	34,784		233,735		—		268,519
Cash							80,534
Total cash, cash equivalents and short-term investments							$	349,053
Financial Liabilities:
Contingent consideration	$	—	$	—	$	4,295	$	4,295



	As of October 31, 2017
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	30,561	$	—	$	—	$	30,561
Commercial paper	—		9,986		—		9,986
Short-term investments:
Corporate bonds	—		185,757		—		185,757
Commercial paper	—		36,768		—		36,768
U.S. government securities	—		10,961		—		10,961
Total measured at fair value	$	30,561	$	243,472	$	—	274,033
Cash							91,912
Total cash, cash equivalents and short-term investments							$	365,945
Financial Liabilities:
Contingent consideration	$	—	$	—	$	4,577	$	4,577

Summary of Changes in Fair Value of Convertible Preferred Stock Warrant Liability

A summary of the changes in the fair value of our contingent consideration is as follows:



	Three Months Ended October 31,
	2016		2017
	(in thousands)
Contingent consideration—beginning balance	$	—	$	4,295
Assumed in a business acquisition	2,371		—
Change in fair value*	186		282
Contingent consideration—ending balance	$	2,557	$	4,577

____________


*	Recorded in the condensed consolidated statements of operations within general and administrative expenses

BALANCE SHEET COMPONENTS (Tables)

3 Months Ended

Oct. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Investments in Marketable Debt Securities, by Contractual Maturity Date

The following table summarizes the estimated fair value of our investments in marketable debt securities, by the contractual maturity date:



	As of October 31, 2017
	(in thousands)
Due within 1 year	$	153,044
Due after 1 year through 3 years	80,442
Total	$	233,486

Schedule of Property, Plant and Equipment

Property and Equipment—Net—Property and equipment, net consists of the following:



	Estimated Useful Life (In months)	As of
	Estimated Useful Life (In months)	July 31, 2017			October 31, 2017
		(in thousands)
Computer, production, engineering and other equipment	36	$	85,280		$	97,027
Demonstration units	12	46,387			49,109
Leasehold improvements	*	10,562			14,605
Furniture and fixtures	60	4,744			5,483
Total property and equipment—gross		146,973			166,224
Less accumulated depreciation and amortization		(88,901		)	(98,649		)
Total property and equipment—net		$	58,072		$	67,575

____________


*	Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term.

Schedule of Finite-Lived Intangible Assets

Intangible Assets—Net—Intangible assets, net consists of the following:



	As of
	July 31, 2017			October 31, 2017
	(in thousands
Indefinite-lived intangible asset:
In-process R&D*	$	16,100		$	—
Finite-lived intangible assets:
Developed technology*	7,300			23,400
Customer relationships	4,830			4,830
Total finite-lived intangible assets, gross	12,130			28,230
Total intangible assets, gross	28,230			28,230
Less:
Accumulated amortization of developed technology	(1,314		)	(2,209		)
Accumulated amortization of customer relationships	(915		)	(1,126		)
Total accumulated amortization	(2,229		)	(3,335		)
Intangible assets, net	$	26,001		$	24,895

Schedule of Indefinite-Lived Intangible Assets

Intangible Assets—Net—Intangible assets, net consists of the following:



	As of
	July 31, 2017			October 31, 2017
	(in thousands
Indefinite-lived intangible asset:
In-process R&D*	$	16,100		$	—
Finite-lived intangible assets:
Developed technology*	7,300			23,400
Customer relationships	4,830			4,830
Total finite-lived intangible assets, gross	12,130			28,230
Total intangible assets, gross	28,230			28,230
Less:
Accumulated amortization of developed technology	(1,314		)	(2,209		)
Accumulated amortization of customer relationships	(915		)	(1,126		)
Total accumulated amortization	(2,229		)	(3,335		)
Intangible assets, net	$	26,001		$	24,895

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization expense of finite-lived intangible assets is as follows:



Year Ending July 31:	(In thousands)
2018 (remaining nine months)	$	4,066
2019	5,421
2020	5,421
2021	5,421
2022	4,224
Thereafter	342
Total	$	24,895

Schedule of Accrued Liabilities

Accrued Compensation and Benefits—Accrued compensation and benefits consists of the following:



	As of
	July 31, 2017		October 31, 2017
	(in thousands)
Accrued commissions	$	20,388	$	19,410
Accrued vacation	6,286		6,984
Contributions to ESPP withheld	14,371		6,008
Accrued bonus	7,342		5,384
Payroll taxes payable	3,434		6,603
Other	5,700		5,912
Total accrued compensation and benefits	$	57,521	$	50,301

Accrued Expenses and Other Current Liabilities—Accrued expenses and other current liabilities consists of the following:



	As of
	July 31, 2017		October 31, 2017
	(in thousands)
Accrued professional services	$	4,167	$	3,635
Income taxes payable*	3,873		3,929
Other	1,667		1,867
Total accrued expenses and other current liabilities	$	9,707	$	9,431

EQUITY AWARD PLANS (Tables)

3 Months Ended

Oct. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of RSUs Activity

The summary of RSU activity under the Stock Plans is as follows:



	Number of Shares		Grant Date Fair Value per Share
Outstanding—July 31, 2017	17,376,090		$	18.85
Granted	1,553,392		$	23.72
Released	(1,412,978	)	$	16.04
Canceled/forfeited	(771,957	)	$	23.58
Outstanding—October 31, 2017	16,744,547		$	19.32

Schedule of ESPP Valuation Assumptions

We use the Black-Scholes option-pricing model to determine the fair value of shares purchased under the 2016 ESPP with the following weighted-average assumptions on the date of grant:



	Three Months Ended October 31,
	2016		2017
Expected term (in years)	0.75		0.75
Risk-free interest rate	0.6	%	1.25	%
Volatility	50.6	%	50.2	%
Dividend yield	—	%	—	%

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Total stock-based compensation expense recognized for stock awards in the consolidated statements of operations is as follows (in thousands):



	Three Months Ended October 31,
	2016		2017
	(in thousands)
Cost of revenue:
Product	$	966	$	570
Support and other services	3,350		2,072
Sales and marketing	33,891		13,766
Research and development	34,026		15,542
General and administrative	18,495		3,565
Total stock-based compensation expense	$	90,728	$	35,515

NET LOSS PER SHARE (Tables)

3 Months Ended

Oct. 31, 2017

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss Per Share

The computation of basic and diluted net loss per share is as follows (in thousands, except share and per share data):



	Three Months Ended October 31,
	2016 *As Adjusted			2017
Numerator:
Net loss	$	(140,302	)	$	(61,487	)
Denominator:
Weighted-average shares—basic and diluted	74,373,788			156,780,631
Net loss per share attributable to common stockholders—basic and diluted	$	(1.89	)	$	(0.39	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Three Months Ended October 31,
	2016	2017
Outstanding stock options and RSUs	40,764,842	34,400,643
Employee stock purchase plan	2,304,960	2,089,383
Common stock subject to repurchase	727,254	152,558
Common stock warrants	769,094	34,180
Total	44,566,150	36,676,764

SEGMENT INFORMATION (Tables)

3 Months Ended

Oct. 31, 2017

Segment Reporting [Abstract]

Schedule of Revenue by Geographic Area

The following table sets forth revenue by geographic location based on bill-to location:



	Three Months Ended October 31,
	2016 *As Adjusted		2017
	(in thousands)
U.S.	$	106,168	$	187,365
Europe, the Middle East and Africa	25,416		37,444
Asia-Pacific	45,847		44,859
Other Americas	11,130		5,884
Total revenue	$	188,561	$	275,552

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Partner Concentration Risk	3 Months Ended		12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Jul. 31, 2017
Revenue \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage	17.00%	14.00%
Revenue \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage	28.00%	20.00%
Revenue \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage	19.00%	13.00%
Revenue \| Partner D
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	12.00%
Revenue \| Partner F
Concentration Risk [Line Items]
Concentration risk percentage	12.00%
Accounts Receivable \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage	14.00%
Accounts Receivable \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage	17.00%		12.00%
Accounts Receivable \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage			14.00%
Accounts Receivable \| Partner D
Concentration Risk [Line Items]
Concentration risk percentage	16.00%		20.00%
Accounts Receivable \| Partner F
Concentration Risk [Line Items]
Concentration risk percentage	11.00%		18.00%

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - ASC 606 Impact on Balance Sheet (Details) - USD ($)
$ in Thousands

Oct. 31, 2017

Jul. 31, 2017

Assets

$ 26,464

$ 23,843

^[1]

55,520

49,684

^[1]

81,984

73,527

190,592

170,123

^[1]

218,252

198,933

^[1]

408,844

369,056

9,431

9,707

^[1]

$ 216,580

217,063

^[1]

Assets

23,843

49,684

73,527

170,123

198,933

369,056

9,707

Accounting Standards Update 2014-09 | Scenario, Previously Reported

217,063

Assets

27,679

33,709

61,388

233,498

292,573

526,071

9,414

Accounting Standards Update 2014-09 | Restatement Adjustment

48,202

Assets

(3,836)

15,975

12,139

(63,375)

(93,640)

(157,015)

293

$ 168,861

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - ASC 606 Impact on Income Statement (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

$ 219,052

$ 153,536

56,500

35,025

275,552

188,561

^[1]

166,930

118,799

^[1]

145,405

128,625

^[1]

(59,039)

(114,479)

^[1]

Basic and diluted net loss per share (in dollars per share)

$ (61,487)

$ (140,302)

^[1]

$ (0.39)

$ (1.89)

^[1]

$ 153,536

35,025

188,561

118,799

128,625

(114,479)

Basic and diluted net loss per share (in dollars per share)

$ (140,302)

$ (1.89)

Accounting Standards Update 2014-09 | Scenario, Previously Reported

$ 129,657

37,152

166,809

97,047

128,775

(136,381)

Basic and diluted net loss per share (in dollars per share)

$ (162,169)

$ (2.18)

Accounting Standards Update 2014-09 | Restatement Adjustment

$ 23,879

(2,127)

21,752

21,752

(150)

21,902

Basic and diluted net loss per share (in dollars per share)

$ 21,867

$ 0.29

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - ASC 606 Impact on Revenue by Geographic Region (Details) - USD ($)
$ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

$ 275,552

$ 188,561

^[1]

U.S.

Europe, the Middle East and Africa

187,365

106,168

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

37,444

25,416

Asia-Pacific

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

44,859

45,847

Other Americas

$ 5,884

11,130

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | U.S.

188,561

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Europe, the Middle East and Africa

106,168

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Asia-Pacific

25,416

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Other Americas

45,847

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Scenario, Previously Reported

11,130

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Scenario, Previously Reported | U.S.

166,809

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Scenario, Previously Reported | Europe, the Middle East and Africa

102,871

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Scenario, Previously Reported | Asia-Pacific

24,248

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Scenario, Previously Reported | Other Americas

28,908

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Restatement Adjustment

10,782

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Restatement Adjustment | U.S.

21,752

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Restatement Adjustment | Europe, the Middle East and Africa

3,297

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Restatement Adjustment | Asia-Pacific

1,168

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Accounting Standards Update 2014-09 | Restatement Adjustment | Other Americas

16,939

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

$ 348

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - ASC 606 Impact on Cash Flows (Details) - USD ($)
$ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Adjustments to reconcile net loss to net cash provided by operating activities:

$ (61,487)

$ (140,302)

^[1]

(8,457)

(4,780)

^[2]

(293)

717

^[2]

$ 39,788

51,206

^[2]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Adjustments to reconcile net loss to net cash provided by operating activities:

(140,302)

4,780

717

Accounting Standards Update 2014-09 | Scenario, Previously Reported

51,206

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Adjustments to reconcile net loss to net cash provided by operating activities:

(162,169)

4,630

682

Accounting Standards Update 2014-09 | Restatement Adjustment

72,958

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Adjustments to reconcile net loss to net cash provided by operating activities:

21,867

150

Condensed Income Statements, Captions [Line Items]

$ (21,752)

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.
[2]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Schedule of Revenue (Details) - USD ($)
$ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Sales revenue, goods

$ 219,052

$ 153,536

56,500

35,025

Condensed Income Statements, Captions [Line Items]

275,552

188,561

^[1]

Software

Sales revenue, goods

138,214

104,745

Hardware

Condensed Income Statements, Captions [Line Items]

Sales revenue, goods

$ 80,838

$ 48,791

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Deferred Commissions (Details) $ in Thousands	3 Months Ended
	Oct. 31, 2017 USD ($)
Movement in Deferred Revenue [Roll Forward]
As of July 31, 2017 As Adjusted	$ 73,527
Additions	33,807
Commissions Recognized	(25,350)
As of October 31, 2017	$ 81,984
Percent expected to be recognized in next year	32.00%

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Movement in Deferred Revenue [Roll Forward]
As of July 31, 2017 As Adjusted	$ 369,056
Additions	96,288
Revenue Recognized	(56,500)
As of October 31, 2017	408,844
Amount deferred in prior period	49,600	$ 29,600
Contracted revenue not recognized	$ 442,400
Percent expected to be recognized in next year	49.00%

FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands

Oct. 31, 2017

Jul. 31, 2017

$ 233,486

$ 210,694

^[1]

Recurring

Total cash, cash equivalents and short-term investments

274,033

268,519

Cash

91,912

80,534

365,945

349,053

Recurring | Commitments

Recurring | Corporate bonds

4,577

4,295

Recurring | Commercial paper

185,757

160,634

Recurring | U.S. government securities

36,768

36,084

Recurring | Money market funds

10,961

13,976

Recurring | Commercial paper

30,561

34,784

9,986

23,041

Recurring | Level I

Recurring | Level I | Commitments

30,561

34,784

Recurring | Level I | Corporate bonds

Recurring | Level I | Commercial paper

Recurring | Level I | U.S. government securities

Recurring | Level I | Money market funds

Recurring | Level I | Commercial paper

30,561

34,784

Recurring | Level II

Recurring | Level II | Commitments

243,472

233,735

Recurring | Level II | Corporate bonds

Recurring | Level II | Commercial paper

185,757

160,634

Recurring | Level II | U.S. government securities

36,768

36,084

Recurring | Level II | Money market funds

10,961

13,976

Recurring | Level II | Commercial paper

9,986

23,041

Recurring | Level III

Recurring | Level III | Commitments

Recurring | Level III | Corporate bonds

4,577

4,295

Recurring | Level III | Commercial paper

Recurring | Level III | U.S. government securities

Recurring | Level III | Money market funds

Recurring | Level III | Commercial paper

Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract]

$ 0

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

FAIR VALUE MEASUREMENTS - Level 3 Roll Forward (Details) - Commitments - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration—beginning balance	$ 4,295	$ 0
Assumed in a business acquisition	0	2,371
Change in fair value	(282)	(186)
Contingent consideration—ending balance	$ 4,577	$ 2,557

BALANCE SHEET COMPONENTS - Short-Term Investments (Details) - USD ($)
$ in Thousands

Oct. 31, 2017

Jul. 31, 2017

^[1]

Due within 1 year

$ 153,044

Due after 1 year through 3 years

80,442

Total

$ 233,486

$ 210,694

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

BALANCE SHEET COMPONENTS - Property, Plant and Equipment (Details) - USD ($)
$ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Jul. 31, 2017

Less accumulated depreciation and amortization

$ 166,224

$ 146,973

(98,649)

(88,901)

Total property and equipment—net

67,575

58,072

^[1]

Depreciation and amortization

11,333

$ 8,572

^[2]

Property, Plant and Equipment

Depreciation and amortization

$ 10,200

$ 8,200

Computer, production, engineering and other equipment

Estimated Useful Life (In months)

36 months

$ 97,027

85,280

Demonstration units

Estimated Useful Life (In months)

12 months

$ 49,109

46,387

Leasehold improvements

$ 14,605

10,562

Furniture and fixtures

Estimated Useful Life (In months)

60 months

Finite-lived intangible assets, gross

$ 5,483

$ 4,744

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.
[2]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

BALANCE SHEET COMPONENTS - Intangible Assets (Details) - USD ($)
$ in Thousands

3 Months Ended

Oct. 31, 2017

Jul. 31, 2017

Finite-lived intangible assets:

$ 28,230

$ 12,130

Total intangible assets, gross

28,230

Less:

Accumulated amortization

(3,335)

(2,229)

Intangible assets, net

24,895

26,001

^[1]

In-process R&D

Indefinite-lived intangible asset:

In-process R&D

16,100

Developed technology

Finite-lived intangible assets:

Finite-lived intangible assets, gross

23,400

7,300

Less:

Accumulated amortization

$ (2,209)

(1,314)

Developed technology | Minimum

Less:

Estimated life (in years)

5 years

Customer relationships

Finite-lived intangible assets:

Finite-lived intangible assets, gross

$ 4,830

4,830

Less:

Accumulated amortization

$ (1,126)

$ (915)

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

BALANCE SHEET COMPONENTS - Future Amortization Expense (Details) $ in Thousands	Oct. 31, 2017 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018 (remaining nine months)	$ 4,066
2019	5,421
2020	5,421
2021	5,421
2022	4,224
Thereafter	342
Total	$ 24,895

BALANCE SHEET COMPONENTS - Accrued Compensation Benefits (Details) - USD ($)
$ in Thousands

Oct. 31, 2017

Jul. 31, 2017

Accrued commissions

$ 19,410

$ 20,388

Accrued vacation

6,984

6,286

Contributions to ESPP withheld

6,008

14,371

Accrued bonus

5,384

7,342

Payroll taxes payable

6,603

3,434

Total accrued compensation and benefits

5,912

5,700

$ 50,301

$ 57,521

^[1]

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($)
$ in Thousands

Oct. 31, 2017

Jul. 31, 2017

Other Liabilities Disclosure [Abstract]

Accrued professional services

$ 3,635

$ 4,167

Income taxes payable

3,929

3,873

Total accrued expenses and other current liabilities

1,867

1,667

$ 9,431

$ 9,707

^[1]

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Oct. 31, 2017 USD ($)
Non-contract Vendors
Loss Contingencies [Line Items]
Purchase obligation	$ 23.6
Contract Manufacturer
Loss Contingencies [Line Items]
Purchase obligation	$ 79.0

STOCKHOLDERS’ EQUITY (Details)	Oct. 31, 2017 vote $ / shares shares	Jul. 31, 2017 $ / shares shares	Sep. 30, 2016 class
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)	200,000,000	200,000,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.000025	$ 0.000025
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, number of classes of stock \| class			2
Common stock, shares authorized (in shares)	1,200,000,000	1,200,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.000025	$ 0.000025
Common stock, shares issued (in shares)	159,887,325	154,636,520
Common stock, shares outstanding (in shares)	159,887,325	154,636,520
Common Class A
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	108,173,525	93,570,171
Common stock, shares outstanding (in shares)	108,173,525	93,570,171
Common stock number of votes per share \| vote	1
Common Class B
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	51,713,800	61,066,349
Common stock, shares outstanding (in shares)	51,713,800	61,066,349
Common stock number of votes per share \| vote	10

EQUITY AWARD PLANS - Additional Information (Details)		1 Months Ended			3 Months Ended
EQUITY AWARD PLANS - Additional Information (Details)	Aug. 01, 2017 shares	Dec. 12, 2017 shares	Dec. 08, 2017 $ / shares	Sep. 30, 2016 USD ($) purchase_period shares	Oct. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2015 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercises in period (in shares)					2,580,224
Weighted average exercise price (in dollars per share) \| $ / shares					$ 3.09
Options outstanding (in shares)					17,656,096
Compensation not yet recognized \| $					$ 272,600,000
Period for recognition (in years)					2 years 1 month 28 days
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)					56,636,515
Number of shares available for grant (in shares)					22,201,692
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (in shares)					1,553,392
RSUs granted (in dollars per share) \| $ / shares					$ 23.72
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)					2,839,207
Percent of eligible compensation (up to)				15.00%
Monetary cap \| $				$ 25,000
Share cap (in shares)				1,000
Offering period duration (in months)				12 months
Number of six-month purchase periods \| purchase_period				2
Purchase price of common stock, percent				85.00%
Stock repurchased during period (in shares)					1,261,104
Stock repurchased during period, value \| $					$ 17,400,000
Common Class A \| 2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)						22,400,000
Annual increase (in shares)					18,000,000
Annual increase, percent of outstanding shares					5.00%
Number of additional shares authorized	7,731,826
Common Class A \| Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)				3,800,000
Annual increase (in shares)				3,800,000
Annual increase, percent of outstanding shares				1.00%
Number of additional shares authorized	1,546,365
Subsequent Event \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (in shares)		7,311,448
RSUs granted (in dollars per share) \| $ / shares			$ 34.39

EQUITY AWARD PLANS - RSU (Details) - RSUs - $ / shares	3 Months Ended
EQUITY AWARD PLANS - RSU (Details) - RSUs - $ / shares	Oct. 31, 2017	Jul. 31, 2017
Number of Shares
Outstanding, beginning balance (in shares)	17,376,090
Granted (in shares)	1,553,392
Released (in shares)	(1,412,978)
Canceled/forfeited (in shares)	(771,957)
Outstanding, ending balance (in shares)	16,744,547
Grant Date Fair Value per Share
Outstanding (in dollars per share)	$ 19.32	$ 18.85
Granted (in dollars per share)	23.72
Released (in dollars per share)	16.04
Canceled/forfeited (in dollars per share)	$ 23.58

EQUITY AWARD PLANS - ESPP (Details) - Employee Stock Purchase Plan	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	9 months	9 months
Risk-free interest rate	1.25%	0.60%
Volatility	50.21%	50.60%
Dividend yield	0.00%	0.00%

EQUITY AWARD PLANS - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 35,515	$ 90,728
Cost of revenue, product
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	570	966
Cost of revenue, support and other services
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,072	3,350
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	13,766	33,891
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	15,542	34,026
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 3,565	$ 18,495

INCOME TAXES (Details) - USD ($)
$ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

Income Tax Disclosure [Abstract]

Provision for income taxes

$ 2,259

$ 111

^[1]

Valuation allowance release

$ 1,500

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

NET LOSS PER SHARE - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Oct. 31, 2017

Oct. 31, 2016

^[1]

Earnings Per Share [Abstract]

Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted (in shares)

$ (61,487)

$ (140,302)

156,780,631

74,373,788

Net loss per share attributable to common stockholders—basic and diluted (in dollars per share)

$ (0.39)

$ (1.89)

[1]	See Note 3 for a summary of adjustments related to the adoption of the new revenue recognition standard.

NET LOSS PER SHARE - Antidilutive Securities (Details) - shares	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	36,676,764	44,566,150
Outstanding stock options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	34,400,643	40,764,842
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,089,383	2,304,960
Common stock subject to repurchase
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	152,558	727,254
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	34,180	769,094

SEGMENT INFORMATION (Details)
$ in Thousands

3 Months Ended

Oct. 31, 2017

USD ($)

segment

Oct. 31, 2016

USD ($)

Jul. 31, 2017

USD ($)

Revenues from External Customers and Long-Lived Assets [Line Items]

Number of reportable segments | segment

Revenues from External Customers and Long-Lived Assets [Line Items]

$ 275,552

$ 188,561

^[1]

U.S.

Europe, the Middle East and Africa

187,365

106,168

Long-lived assets

72,700

$ 63,300

Revenues from External Customers and Long-Lived Assets [Line Items]

Revenues from External Customers and Long-Lived Assets [Line Items]

37,444

25,416

Asia-Pacific

Revenues from External Customers and Long-Lived Assets [Line Items]

44,859

45,847

Other Americas