View Filing Data

Prepaid expenses and other current assets

33,508

23,843

31,547

28,362

Total current assets

1,162,551

580,134

^[1]

Property and equipment—net

69,074

58,072

Accrued compensation and benefits

66,120

49,684

Intangible assets, net

23,539

26,001

Goodwill

16,672

Other assets—non-current

7,240

7,649

Total assets

1,345,196

738,212

^[1]

Current liabilities:

Accounts payable

56,270

73,725

75,310

57,521

11,241

9,707

Total current liabilities

231,731

170,123

374,552

311,076

^[1]

Convertible senior notes—net

246,269

198,933

415,651

Early exercised stock options liability

430

851

Other liabilities—non-current

7,815

10,289

Total liabilities

1,044,717

521,149

^[1]

Commitments and contingencies (Note 7)

^[1]

Stockholders’ equity:

Preferred stock, par value of $0.000025 per share— 200,000,000 shares authorized as of July 31, 2017 and January 31, 2018; no shares issued and outstanding as of July 31, 2017 and January 31, 2018

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 January 31, 2018; 154,636,520 (93,570,171 Class A and 61,066,349 Class B) and 164,065,915 (119,873,498 Class A and 44,192,417 Class B) shares issued and outstanding as of July 31, 2017 and January 31, 2018

Additional paid-in capital

1,156,282

948,134

Accumulated other comprehensive loss

(720)

(106)

Accumulated deficit

(855,087)

(730,969)

Total stockholders’ equity

300,479

217,063

^[1]

Total liabilities and stockholders’ equity

$ 1,345,196

$ 738,212

^[1]

[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	Jan. 31, 2018	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)	164,065,915	154,636,520
Common stock, shares outstanding (in shares)	164,065,915	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)	119,873,498	93,570,171
Common stock, shares outstanding (in shares)	119,873,498	93,570,171
Common Class B
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	44,192,417	61,066,349
Common stock, shares outstanding (in shares)	44,192,417	61,066,349

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

3 Months Ended

6 Months Ended

Jan. 31, 2018

Jan. 31, 2017

Jan. 31, 2018

Jan. 31, 2017

Revenue:

$ 223,170

$ 158,213

$ 442,222

$ 311,749

63,574

41,001

120,074

76,026

286,744

199,214

^[1]

562,296

387,775

Cost of revenue:

83,217

58,403

168,379

110,613

25,311

18,443

48,771

35,995

Total cost of revenue

108,528

76,846

^[1]

217,150

146,608

178,216

122,368

^[1]

345,146

241,167

General and administrative

151,201

111,374

296,606

239,999

Research and development

70,924

70,914

135,436

146,195

15,948

15,481

32,000

44,853

Total operating expenses

238,073

197,769

^[1]

464,042

431,047

Loss before provision for income taxes

(59,857)

(75,401)

^[1]

(118,896)

(189,880)

Other expense—net

(861)

(421)

(1,050)

(26,133)

(60,718)

(75,822)

^[1]

(119,946)

(216,013)

Provision for income taxes

1,913

547

4,172

658

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

$ (62,631)

$ (76,369)

^[1]

$ (124,118)

$ (216,671)

$ (0.39)

$ (0.54)

^[1]

$ (0.78)

$ (2.00)

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

161,737,428

141,996,600

159,251,964

108,185,194

[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

6 Months Ended

Jan. 31, 2018

Jan. 31, 2017

Jan. 31, 2018

Jan. 31, 2017

Statement of Comprehensive Income [Abstract]

Other comprehensive loss—net of tax:

$ (62,631)

$ (76,369)

^[1]

$ (124,118)

$ (216,671)

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

(484)

(150)

(614)

(158)

Total other comprehensive loss—net of tax

(484)

(150)

^[2]

(614)

(158)

Comprehensive loss

$ (63,115)

$ (76,519)

^[2]

$ (124,732)

$ (216,829)

[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

6 Months Ended

Jan. 31, 2018

Jan. 31, 2017

Cash flows from operating activities:

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

$ (124,118)

$ (216,671)

Depreciation and amortization

23,015

18,172

Stock-based compensation

77,526

143,335

Loss on debt extinguishment

3,320

Change in fair value of convertible preferred stock warrant liability

21,133

Change in fair value of contingent consideration

(3,955)

472

Amortization of debt discount and issuance cost

738

Other

141

457

Changes in operating assets and liabilities:

Accounts receivable—net

(490)

(39,730)

Prepaid expenses and other assets

(26,101)

(8,071)

(2,842)

(2,707)

Accounts payable

(16,560)

11,342

Accrued compensation and benefits

17,789

11,811

2,415

1,677

Net cash provided by operating activities

108,944

79,372

56,502

23,912

^[1]

Cash flows from investing activities:

Purchases of property and equipment

(31,993)

(24,616)

Purchases of investments

(183,102)

(117,550)

Maturities of investments

84,927

41,200

Sale of investments

32,640

Payments for business acquisitions, net of cash acquired

(184)

Net cash used in investing activities

(130,168)

(68,510)

^[1]

Cash flows from financing activities:

Proceeds from issuance of convertible senior notes—net

564,219

Proceeds from issuance of warrants

87,975

Payments for convertible note hedges

(143,175)

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

36,819

2,180

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

254,455

Payments of offering costs

(85)

(1,609)

Repayment of senior notes

(75,000)

Debt extinguishment costs

(1,580)

Payment of debt in conjunction with a business acquisition

(7,124)

Other

Net cash provided by financing activities

545,753

171,395

^[1]

Net increase in cash and cash equivalents

472,087

126,797

^[1]

Cash and cash equivalents—beginning of period

138,359

99,209

Cash and cash equivalents—end of period

610,446

226,006

^[1]

Supplemental disclosures of cash flow information:

Cash paid for income taxes

4,077

2,344

Cash paid for interest

1,271

Supplemental disclosures of non-cash investing and financing information:

Purchases of property and equipment included in accounts payable and accrued liabilities

4,673

6,983

Convertible senior notes offering costs included in accounts payable and accrued liabilities

707

Vesting of early exercised stock options

435

920

Offering costs included in accounts payable

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

310,379

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

30,812

Issuance of common stock for business acquisitions

$ 0

$ 27,063

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

ORGANIZATION	6 Months Ended
ORGANIZATION	Jan. 31, 2018
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

6 Months Ended

Jan. 31, 2018

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; fair value of debt and equity components related to our convertible senior notes; 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 and six months ended January 31, 2017 and 2018, 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 January 31,				Six Months Ended January 31,				Accounts Receivable as of
Customers	2017 **As Adjusted		2018		2017 **As Adjusted		2018		July 31, 2017		January 31, 2018
Partner A	*		*		11	%	12	%	*		*
Partner B	18	%	18	%	19	%	23	%	12	%	18	%
Partner C	15	%	16	%	14	%	17	%	14	%	*
Partner D	*		10	%	11	%	10	%	20	%	19	%
Partner E	10	%	*		*		*		*		10	%
Partner F	14	%	14	%	12	%	14	%	18	%	*

___________________


*	Less than 10%


**	Adjusted to include the impact of ASC 606. 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 and those related to our 0% Convertible Senior Notes due in 2023, or the Notes, 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 recast 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 six months ended January 31, 2018, our adoption did not have any impact 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 fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We adopted this ASU effective November 1, 2017 and our adoption did not have any impact on our condensed consolidated financial statements.

Recently Issued and Not Yet Adopted Accounting Pronouncements—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 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

6 Months Ended

Jan. 31, 2018

Revenue Recognition and Deferred Revenue [Abstract]

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

ue Recognition—Effective August 1, 2017, we adopted ASC 606 using the full retrospective method, which required us to recast our historical financial information to be consistent with the standard. The most significant impact of ASC 606 on our historical financial information relates 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 ASC 606, 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 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 activities 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 reflect 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 January 31, 2017
	As Previously Reported			Impact of Adoption			As Adjusted
Revenue	(in thousands, except per share data)
Product	$	138,508		$	19,705		$	158,213
Support and other services	43,687			(2,686		)	41,001
Total revenue	$	182,195		$	17,019		$	199,214
Gross profit	$	105,349		$	17,019		$	122,368
Operating expenses
Sales and marketing expenses	$	111,244		$	130		$	111,374
Loss from operations	$	(92,290	)	$	16,889		$	(75,401	)
Net Loss	$	(93,212	)	$	16,843		$	(76,369	)
Basic and diluted net loss per share	$	(0.66	)	$	0.12		$	(0.54	)



	Six Months Ended January 31, 2017
	As Previously Reported			Impact of Adoption			As Adjusted
Revenue	(in thousands, except per share data)
Product	$	268,165		$	43,584		$	311,749
Support and other services	80,839			(4,813		)	76,026
Total revenue	$	349,004		$	38,771		$	387,775
Gross profit	$	202,396		$	38,771		$	241,167
Operating expenses
Sales and marketing expenses	$	240,019		$	(20	)	$	239,999
Loss from operations	$	(228,671	)	$	38,791		$	(189,880	)
Net Loss	$	(255,381	)	$	38,710		$	(216,671	)
Basic and diluted net loss per share	$	(2.36	)	$	0.36		$	(2.00	)

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



	Three Months Ended January 31, 2017
	As Previously Reported		Impact of Adoption		As Adjusted
	(in thousands)
U.S.	$	102,173	$	2,869	$	105,042
Europe, the Middle East and Africa	33,272		1,330		34,602
Asia-Pacific	37,382		12,561		49,943
Other Americas	9,368		259		9,627
Total revenue	$	182,195	$	17,019	$	199,214



	Six Months Ended January 31, 2017
	As Previously Reported		Impact of Adoption		As Adjusted
	(in thousands)
U.S.	$	205,044	$	6,166	$	211,210
Europe, the Middle East and Africa	57,520		2,498		60,018
Asia-Pacific	66,290		29,500		95,790
Other Americas	20,150		607		20,757
Total revenue	$	349,004	$	38,771	$	387,775

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



	Six Months Ended January 31, 2017
	As Previously Reported			Impact of Adoption			As Adjusted
Cash flows from operating activities:	(in thousands)
Net loss	$	(255,381	)	$	38,710		$	(216,671	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred commissions	$	(8,049	)	$	(22	)	$	(8,071	)
Accrued expenses and other liabilities	$	1,594		$	83		$	1,677
Deferred revenue	$	118,143		$	(38,771	)	$	79,372

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, including distributors and resellers. We also sell our software solution through our OEM partners, such as Dell Technologies and Lenovo Group Ltd. These OEM partners embed our software in their own hardware and we provide limited PCS on these transactions. 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 January 31,				Six Months Ended January 31,
	2017		2018		2017		2018
	(in thousands)
Software revenue	$	102,845	$	145,171	$	207,590	$	283,385
Hardware revenue	55,368		77,999		104,159		158,837
Support and other services revenue	41,001		63,574		76,026		120,074
Total revenue	$	199,214	$	286,744	$	387,775	$	562,296

Software revenue — A substantial majority of our product revenue is generated from the sale of our software, which is either delivered on a hardware appliance that is configured to order, or delivered as stand-alone software, which can be installed on our customers' hardware appliance that is typically purchased separately from an OEM partner or other manufacturers of our compatible hardware, including our contract manufacturers. 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. 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 January 31, 2018 is presented in the accompanying consolidated balance sheets.

Costs to obtain and fulfill a contract—We capitalize commissions paid to sales personnel and the related payroll taxes when customer contracts are signed. These costs are recorded as deferred commission expense in the condensed consolidated balance sheets, current and non-current. We determine whether costs should be deferred based on our sales compensation plans, if the commissions are incremental and would not have been incurred absent the execution of the customer contract. Sales commissions for renewals of customer contracts are not commensurate with the commissions paid for the acquisition of the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid upon the initial acquisition of a contract are amortized over the estimated period of benefit, which may exceed the term of the initial contract. Accordingly, amortization of deferred costs is recognized on a systematic basis that is consistent with the pattern of revenue recognition allocated to each performance obligation and included in sales and marketing expense in the condensed consolidated statements of operations. We determine the estimated period of benefit by evaluating the expected renewals of our customer contracts, the duration of our relationships with our customers, customer retention data, our technology development lifecycle and other factors. Deferred costs are periodically reviewed for impairment.

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 deferred revenue (contract liability) total deferred commissions (contract asset) for the periods presented are as follows:



	Deferred Revenue			Deferred Commissions
	(in thousands)
Balance as of July 31, 2017 *	$	369,056		73,527
Additions	96,288			33,807
Revenue/commissions recognized	(56,500		)	(25,350		)
Balance as of October 31, 2017	408,844			81,984
Additions	132,730			45,782
Revenue/commissions recognized	(63,574		)	(28,138		)
Balance as of January 31, 2018	$	478,000		$	99,628

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

Of the $99.6 million total deferred commissions balance as of January 31, 2018, we expect to recognize approximately 34% as commission expense over the next 12 months and the remainder thereafter.

During the three and six months ended January 31, 2017, we recognized approximately $36.7 million and approximately $55.6 million pertaining to amounts deferred as of October 31, 2016 and July 31, 2016, respectively. During the three and six months ended January 31, 2018, we recognized approximately $55.0 million and approximately $96.5 million pertaining to amounts deferred as of October 31, 2017 and July 31, 2017, respectively.

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 $519.9 million as of January 31, 2018, of which we expect to recognize approximately 51% of the revenue over the next 12 months and the remainder thereafter.

FAIR VALUE MEASUREMENTS

6 Months Ended

Jan. 31, 2018

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 January 31, 2018
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	380,039	$	—	$	—	$	380,039
Commercial paper			63,529				63,529
U.S. government securities	—		25,281		—		25,281
Corporate bonds	—		2,847		—		2,847
Short-term investments:
Corporate bonds	—		209,425		—		209,425
Commercial paper	—		74,092		—		74,092
U.S. government securities	—		24,292		—		24,292
Total measured at fair value	$	380,039	$	399,466	$	—	779,505
Cash							138,750
Total cash, cash equivalents and short-term investments							$	918,255
Financial Liabilities:
Contingent consideration	$	—	$	—	$	340	$	340

Financial Instruments Not Recorded at Fair Value on a Recurring Basis.

We report our financial instruments at fair value with the exception of the Notes. Financial instruments that are not reported at fair value are measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and estimated fair values of financial instruments not recorded at fair value are as follows:



	As of July 31, 2017		As of January 31, 2018
	Carrying Value	Estimated Fair Value	Carrying Value		Estimated Fair Value
	(in thousands)
Convertible senior notes, net	—	—	$	415,651	$	563,011

The carrying amount of the Notes as of January 31, 2018 was net of unamortized debt discount of $150.9 million and unamortized debt issuance costs of $8.4 million.

The total estimated fair value of the Notes was determined based on the closing trading price of the Notes as of the last day of trading for the period. We consider the fair value of the Notes to be a Level 2 measurement due to the limited trading activity of the Notes.

A summary of the changes in the fair value of our contingent consideration, categorized as Level 3 in the fair value hierarchy, is as follows:



	Six Months Ended January 31,
	2017		2018
	(in thousands)
Contingent consideration—beginning balance	$	—	$	4,295
Assumed in a business acquisition	2,371		—
Change in fair value*	472		(3,955		)
Contingent consideration—ending balance	$	2,843	$	340

____________


*	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

6 Months Ended

Jan. 31, 2018

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 January 31, 2018, unrealized gains or losses from our short-term investments were immaterial. Unrealized losses related to our short-term investments are due to interest rate fluctuations as opposed to credit quality. In addition, unless we will need cash to support our current operations, we do not intend to sell and it is not likely that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. As a result, there were no other-than-temporary impairments for these investments at July 31, 2017 and January 31, 2018.

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



	As of January 31, 2018
	(in thousands)
Due within 1 year	$	222,640
Due after 1 year through 3 years	85,169
Total	$	307,809

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			January 31, 2018
		(in thousands)
Computer, production, engineering and other equipment	36	$	85,280		$	104,891
Demonstration units	12	46,387			51,580
Leasehold improvements	*	10,562			15,309
Furniture and fixtures	60	4,744			5,866
Total property and equipment—gross		146,973			177,646
Less accumulated depreciation and amortization		(88,901		)	(108,572		)
Total property and equipment—net		$	58,072		$	69,074

____________


*	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 $9.0 million and $10.3 million for the three months ended January 31, 2017 and 2018, respectively, and was $17.2 million and 20.6 million for the six months ended January 31, 2017 and 2018, respectively.

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



	As of
	July 31, 2017			January 31, 2018
	(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		)	(3,375		)
Accumulated amortization of customer relationships	(915		)	(1,316		)
Total accumulated amortization	(2,229		)	(4,691		)
Intangible assets, net	$	26,001		$	23,539

* 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 January 31, 2018.

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 six months)	$	2,710
2019	5,421
2020	5,421
2021	5,421
2022	4,224
Thereafter	342
Total	$	23,539

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



	As of
	July 31, 2017		January 31, 2018
	(in thousands)
Accrued commissions	$	20,388	$	24,115
Accrued vacation	6,286		7,438
Contributions to ESPP withheld	14,371		18,036
Accrued bonus	7,342		8,566
Payroll taxes payable	3,434		8,970
Other	5,700		8,185
Total accrued compensation and benefits	$	57,521	$	75,310

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



	As of
	July 31, 2017		January 31, 2018
	(in thousands)
Accrued professional services	$	4,167	$	4,273
Income taxes payable*	3,873		4,163
Other	1,667		2,805
Total accrued expenses and other current liabilities	$	9,707	$	11,241

* 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.

CONVERTIBLE SENIOR NOTES

6 Months Ended

Jan. 31, 2018

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES

In January 2018, we issued $575.0 million in aggregate principal amount of 0% Convertible Senior Notes due in 2023, or the Notes, in a private placement to qualified institutional buyers pursuant to Rule144A under the Securities Act of 1933, as amended. This included $75.0 million in aggregate principal amount of the Notes that we issued resulting from initial purchasers fully exercising their option to purchase additional notes. There are no required principal payments prior to maturity of the Notes. The estimated total net proceeds from the Notes are as follows:



	Amount
	(in thousands)
Principal amount	$	575,000
Less initial purchasers' discount	(10,781		)
Less cost of the bond hedges	(143,175		)
Add proceeds from the sale of warrants	87,975
Less other issuance costs	(707		)
Net proceeds	$	508,312

The $0.7 million other issuance costs remained unpaid as of January 31, 2018. The Notes do not bear any interest and will mature on January 15, 2023, unless earlier converted or repurchased in accordance with their terms. The Notes are unsecured and do not contain any financial covenants or any restrictions on the payment of dividends, or the issuance or repurchase of securities by us.

Each $1,000 of principal of the Notes will initially be convertible into 20.4705 shares of our Class A common stock, which is equivalent to an initial conversion price of approximately $48.85 per share, subject to adjustment upon the occurrence of specified events. Holders of these Notes may convert their Notes at their option at any time prior to the close of business day immediately preceding October 15, 2022, only under the following circumstances:

during any fiscal quarter commencing after the fiscal quarter ending on April 30, 2018 (and only during such fiscal quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day;


2)	during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate for the notes on each such trading day; or


3)	upon the occurrence of certain specified corporate events.

On or after October 15, 2022, holders may convert all or any portion of their Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date regardless of the foregoing conditions.

Upon conversion of the Notes, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. We intend to settle the principal of the Notes in cash.

The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued or unpaid interest. A holder who converts their Notes in connection with certain corporate events that constitute a “make-whole fundamental change” per the indenture governing the Notes are, under certain circumstances, entitled to an increase in the conversion rate. In addition, if we undergo a fundamental change prior to the maturity date, holders may require us to repurchase for cash all or a portion of its Notes at a repurchase price equal to 100% of the principal amount of the repurchased Notes, plus accrued and unpaid interest.

We may not redeem the Notes prior to the maturity date, and no sinking fund is provided for the Notes.

In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying amount of the liability component of approximately $423.4 million was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component of approximately $151.6 million, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the Notes. The difference between the principal amount of the Notes and the liability component (the “debt discount”) is amortized to interest expense using the effective interest method over the term of the Notes. The equity component of the Notes is included in additional paid-in capital in the consolidated balance sheet and is not remeasured as long as it continues to meet the conditions for equity classification.

We incurred transaction costs related to the issuance of the Notes of approximately $11.5 million, consisting of initial purchasers' discount of $10.8 million and other issuance costs of approximately $0.7 million. In accounting for the transaction costs, we allocated the total amount incurred to the liability and equity components using the same proportions as the proceeds from the Notes. Transaction costs attributable to the liability component were approximately $8.5 million, were recorded as debt issuance cost (presented as contra debt in the consolidated balance sheet) and are being amortized to interest expense over the term of the Notes. The transaction costs attributable to the equity component were approximately $3.0 million and were netted with the equity component in stockholders’ equity.

The Notes consisted of the following:



	As of
	January 31, 2018
	(in thousands)
Principal amounts:
Principal	$	575,000
Unamortized debt discount⁽¹⁾	(150,929		)
Unamortized debt issuance costs⁽¹⁾	(8,420		)
Net carrying amount	$	415,651
Carrying amount of the equity component⁽²⁾	$	148,598


⁽¹⁾	Included in the condensed consolidated balance sheet within "Convertible senior notes—net" and amortized over the remaining life of the Notes using the effective interest rate method. The effective interest rate is 6.62%.


⁽²⁾	Included in the condensed consolidated balance sheet within additional paid-in capital, net of $3.0 million in equity issuance costs.

As of January 31, 2018, the remaining life of the Notes is approximately 59 months.

Based on the closing price of our Class A common stock of $32.10 on January 31, 2018, the if-converted value of the Notes was less than the principal amount.

The following table sets forth the total interest expense recognized related to the Notes:



	Three and Six Months Ended January 31, 2018
	(in thousands)
Interest expense related to amortization of debt discount	$	699
Interest expense related to amortization of the debt issuance costs	39
Total interest expense	$	738

Note Hedges and Warrants

Concurrently with the offering of the Notes in January 2018, we entered into convertible note hedge transactions with certain bank counterparties whereby we have the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 11.8 million shares of our Class A common stock at a conversion price of approximately $48.85 per share. The total cost of the convertible note hedge transactions was approximately $143.2 million. In addition, we sold warrants to certain bank counterparties whereby the holders of the warrants have the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 11.8 million shares of our Class A common stock at a price of $73.46 per share. We received approximately $88.0 million in cash proceeds from the sale of these warrants.

Taken together, the purchase of the convertible note hedges and the sale of warrants are intended to offset any actual dilution from the conversion of the Notes and to effectively increase the overall conversion price from $48.85 to $73.46 per share. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity and are not accounted for as derivatives. The net cost incurred in connection with the convertible note hedge and warrant transactions of approximately $55.2 million was recorded as a reduction to additional paid-in capital in the consolidated balance sheet as of January 31, 2018. The fair value of the note hedges and warrants are not remeasured each reporting period. The amounts paid for the note hedges are tax deductible expenses, while the proceeds received from the warrants are not taxable.

Impact to Earnings per Share

The Notes will have no impact to diluted earnings per share until the average price of our Class A common stock exceeds the conversion price of $48.85 per share because we intend to settle the principal amount of the Notes in cash upon conversion. Under the treasury stock method, in periods we report net income, we are required to include the effect of additional shares that may be issued under the Notes when the price of our Class A common stock exceeds the conversion price. Under this method, the cumulative dilutive effect of the Notes would be approximately 3.9 million shares if the average price of our Class A common stock is $73.46. However, upon conversion, there will be no economic dilution from the Notes, as exercise of the note hedges eliminate any dilution from the Notes that would have otherwise occurred when the price of our Class A common stock exceeds the conversion price. The note hedges are required to be excluded from the calculation of diluted earnings per share, as they would be anti-dilutive under the treasury stock method.

The warrants will have a dilutive effect when the average share price exceeds the warrant’s strike price of $73.46 per share. As the price of our Class A common stock continues to increase above the warrant strike price, additional dilution would occur at a declining rate so that a $10 increase from the warrant strike price would yield cumulative dilution of approximately 4.9 million diluted shares for EPS purposes. However, upon conversion, the note hedges would neutralize the dilution from the Notes so that there would only be dilution from the warrants, which would result in actual dilution of approximately 1.4 million shares at a common stock price of $83.46.

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jan. 31, 2018
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 January 31, 2018, we had approximately $19.3 million of non-cancelable purchase commitments pertaining to our normal operations, and approximately $53.0 million of other purchase obligations with our contract manufacturers.

STOCKHOLDERS’ EQUITY	6 Months Ended
STOCKHOLDERS’ EQUITY	Jan. 31, 2018
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 January 31, 2018, 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 January 31, 2018, 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 January 31, 2018, 119,873,498 shares of Class A common stock were issued and outstanding and 44,192,417 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

6 Months Ended

Jan. 31, 2018

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 January 31, 2018, we had reserved a total of 52,457,925 shares for the issuance of equity awards under the Stock Plans, of which 15,095,482 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	9,214,498		$	32.68
Vested	(2,749,519	)	$	18.01
Canceled/forfeited	(1,230,623	)	$	22.86
Outstanding—January 31, 2018	22,610,446		$	24.37

Stock Options—We did not grant any stock options during the six months ended January 31, 2018. A total of 5,422,273 stock options were exercised during the six months ended January 31, 2018 for an average exercise price of $3.58. As of January 31, 2018, 14,717,817 stock options with a weighted-average exercise price $4.91 per share, weighted-average remaining contractual life of 6.14 years, and aggregate intrinsic value of $400.2 million remained outstanding.

Employee Stock Purchase Plan—In December 2015, the Board adopted the 2016 Employee Stock Purchase Plan, or the 2016 ESPP, which was subsequently amended in January 2016 and September 2016 and was approved by our stockholders in March 2016. 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 six months ended January 31, 2018, 1,261,104 shares of common stock were purchased for an aggregate amount of $17.4 million. As of January 31, 2018, 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:



	Six Months Ended January 31,
	2017		2018
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 January 31,				Six Months Ended January 31,
	2017		2018		2017		2018
	(in thousands)				(in thousands)
Cost of revenue:
Product	$	848	$	684	$	1,814	$	1,254
Support and other services	2,389		2,133		5,739		4,205
Sales and marketing	15,528		15,942		49,419		29,708
Research and development	28,759		17,023		62,785		32,565
General and administrative	5,083		6,229		23,578		9,794
Total stock-based compensation expense	$	52,607	$	42,011	$	143,335	$	77,526

Stock-based compensation expense for the six months ended January 31, 2017 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 January 31, 2018, unrecognized stock-based compensation expense related to the outstanding stock awards was approximately $483.8 million and is expected to be recognized over a weighted-average period of approximately 2.7 years.

INCOME TAXES	6 Months Ended
INCOME TAXES	Jan. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The income tax provisions of $0.5 million and $0.7 million for the three and six months ended January 31, 2017, respectively, 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 six months ended January 31, 2017 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 six months ended January 31, 2017 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. The income tax provisions of $1.9 million and $4.2 million for the three and six months ended January 31, 2018, respectively, primarily consisted of foreign taxes on our international operations. We continue to maintain a valuation allowance for its U.S. Federal and state deferred tax assets. On December 22, 2017, the Tax Cuts and Jobs Act, or TCJA, was signed into federal law, which among other changes reduces the federal corporate tax rate to 21%. We do not expect the TCJA to have a material impact on our financial statements due to our valuation allowance in the U.S. Based on our analysis, U.S. deferred tax assets have been revalued from 34% to 21% with a corresponding offset to the valuation allowance. This resulted in a significant reduction to our net U.S. deferred tax assets and valuation allowance and an immaterial impact to income tax provision due to the valuation allowance on net US deferred tax assets. Pursuant to SEC Staff Accounting Bulletin 118, which provides guidance on accounting for the tax effects of the TJCA, we will continue to evaluate the impact of various domestic and international provisions of the TCJA as well as the impact of additional guidance that may be provided, to assess the full effects on our financial results, including disclosures for our fiscal year ending July 31, 2018. We have not yet made a policy election with respect to our treatment of potential global intangible low-taxed income, or GILTI. Companies can either account for taxes on GILTI as incurred or recognize deferred taxes when basis differences exist that are expected to affect the amount of the GILTI inclusion upon reversal. We are still in the process of analyzing the provisions of the Act associated with GILTI and the expected impact of GILTI on us in the future. In connection with the transition from a global to a territorial U.S. tax system, companies are required to pay a one-time transition tax on deemed repatriated earnings of Non-US subsidiaries. The tax is to be computed using our total foreign post-1986 earnings and profits that were previously deferred from U.S. income taxes. We did not have any deemed repatriation tax liability due to consolidated foreign deficit. The provisional amount may change during the one-year measurement period when we finalize the calculation of post-1986 foreign earnings and profits and the amount of foreign earnings held in cash or other specified assets.

NET LOSS PER SHARE

6 Months Ended

Jan. 31, 2018

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 2016 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 January 31,						Six Months Ended January 31,
	2017 *As Adjusted			2018			2017 *As Adjusted			2018
Numerator:
Net loss	$	(76,369	)	$	(62,631	)	$	(216,671	)	$	(124,118	)
Denominator:
Weighted-average shares—basic and diluted	141,996,600			161,737,428			108,185,194			159,251,964
Net loss per share attributable to common stockholders—basic and diluted	$	(0.54	)	$	(0.39	)	$	(2.00	)	$	(0.78	)

* 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 and Six Months Ended January 31,
	2017	2018
Outstanding stock options and RSUs	44,813,334	37,328,263
Employee stock purchase plan	2,304,960	2,031,761
Common stock subject to repurchase	551,750	107,631
Common stock warrants	51,270	34,180
Total	47,721,314	39,501,835

SEGMENT INFORMATION

6 Months Ended

Jan. 31, 2018

Segment Reporting [Abstract]

SEGMENT INFORMATION

Our chief operating decision maker is a group which is comprised of our Chief Executive Officer and Chief Financial Officer. 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 January 31,				Six Months Ended January 31,
	2017 *As Adjusted		2018		2017 *As Adjusted		2018
	(in thousands)				(in thousands)
U.S.	$	105,042	$	165,775	$	211,210	$	353,140
Europe, the Middle East and Africa	34,602		51,729		60,018		89,173
Asia-Pacific	49,943		59,293		95,790		104,152
Other Americas	9,627		9,947		20,757		15,831
Total revenue	$	199,214	$	286,744	$	387,775	$	562,296

* 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 such OEM were entirely attributed to Asia-Pacific. Beginning in the fourth quarter of fiscal 2017, billings to such OEM were attributed to various geographic locations.

As of July 31, 2017 and January 31, 2018, $63.3 million and $71.9 million, respectively, of our net long-lived assets were located in the U.S.

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jan. 31, 2018
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 January 31, 2017 and 2018, our purchases of goods or services from related parties totaled $0.5 million and $4.6 million, respectively. During the six months ended January 31, 2017 and 2018, our purchases of goods and services from related parties totaled $0.7 million and $5.0 million, respectively. We did not have any payables outstanding to related parties as of July 31, 2017 and outstanding payables to related parties as of January 31, 2018 were immaterial. Revenue from related parties for the three months ended January 31, 2017 and 2018 were immaterial. Revenue from related parties for the six months ended January 31, 2017 and 2018 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 January 31, 2018. One member of our Board is affiliated with Lightspeed Venture Partners. As of January 31, 2018, entities affiliated with Lightspeed Venture partners owned approximately 7.1% of all our outstanding Class A common stock and Class B common stock combined.

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jan. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Minjar Inc. In February 2018, we executed a definitive agreement pursuant to which we agreed to acquire Minjar Inc., or MI, a privately held Delaware corporation with its principal offices in Bangalore, India. The closing of the acquisition is subject to customary closing conditions. MI is a cloud technology solutions company. The acquisition of MI will complement and enhance our products, allowing us to offer customers new capabilities to better manage their multi-cloud deployments. Pursuant to the terms of the definitive agreement, all outstanding shares of MI capital stock, and all in-the-money options and warrants to purchase MI capital stock will be purchased or canceled in exchange for an aggregate purchase price of approximately $23.8 million in cash, subject to certain adjustments. Certain portions of the consideration for the acquisition will be placed in escrow to secure the indemnification obligations of certain MI security holders. In addition, a portion of the aggregate consideration payable to certain key MI employees will be subject to employee holdback or deferred payment arrangements, which will be accounted for as compensation because the key employees will need to continue to provide service to receive payments. The definitive agreement contains customary representations, warranties and covenants by us and MI. Netsil Inc. In March 2018, we executed a definitive agreement pursuant to which we agreed to acquire Netsil Inc., or NI, a privately held Delaware corporation headquartered in San Francisco, California. The closing of the acquisition is subject to customary closing conditions. NI provides application discovery and operations management. The acquisition of NI represents an opportunity for us to accelerate our ability to deliver native multi-cloud operations with the addition of application discovery and operations management. Under the terms of the definitive agreement, between 85% and 100% of the consideration will be payable in shares of our Class A common stock, depending on the accredited investor status of NI’s equity holders. As a result, upon consummation of the acquisition, we expect to issue at least 1,210,662 and up to approximately 1,424,308 shares of Class A common stock, subject to certain customary adjustments, in exchange for all of the capital stock, warrants and other vested rights to acquire or receive capital stock of NI, including vested stock options of NI. Certain portions of the consideration for the acquisition (both cash and shares of our Class A common stock) will be held in escrow to secure the indemnification obligations of certain NI security holders. In addition, a portion of the aggregate consideration payable to certain key NI employees will be subject to employee holdback arrangements, which will be accounted for as compensation because the key employees will need to continue to provide service to receive payments. The definitive agreement contains customary representations, warranties and covenants by us and NI. In June 2016, and prior to our consideration of NI as an acquisition target, Mr. Dheeraj Pandey, our CEO, made a personal investment in NI, which he still holds. As a shareholder of NI, Mr. Pandey will receive approximately 0.59% of the aggregate acquisition consideration, or approximately 8,400 shares of our Class A common stock, as a result of the acquisition, subject to certain customary adjustments. Following the acquisition, Mr. Pandey intends to donate all of the gains on his investment in NI to charity.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jan. 31, 2018
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; fair value of debt and equity components related to our convertible senior notes; 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 and six months ended January 31, 2017 and 2018, 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 recast 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 six months ended January 31, 2018, our adoption did not have any impact 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 fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We adopted this ASU effective November 1, 2017 and our adoption did not have any impact on our condensed consolidated financial statements. Recently Issued and Not Yet Adopted Accounting Pronouncements—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 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 recast our historical financial information to be consistent with the standard. The most significant impact of ASC 606 on our historical financial information relates 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 ASC 606, 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 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 activities 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)

6 Months Ended

Jan. 31, 2018

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 January 31,				Six Months Ended January 31,				Accounts Receivable as of
Customers	2017 **As Adjusted		2018		2017 **As Adjusted		2018		July 31, 2017		January 31, 2018
Partner A	*		*		11	%	12	%	*		*
Partner B	18	%	18	%	19	%	23	%	12	%	18	%
Partner C	15	%	16	%	14	%	17	%	14	%	*
Partner D	*		10	%	11	%	10	%	20	%	19	%
Partner E	10	%	*		*		*		*		10	%
Partner F	14	%	14	%	12	%	14	%	18	%	*

___________________


*	Less than 10%


**	Adjusted to include the impact of ASC 606. Refer to Note 3 for more details on the impact of the adoption of this standard.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS (Tables)

6 Months Ended

Jan. 31, 2018

Revenue Recognition and Deferred Revenue [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Select condensed consolidated balance sheet line items, which reflect 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 January 31, 2017
	As Previously Reported			Impact of Adoption			As Adjusted
Revenue	(in thousands, except per share data)
Product	$	138,508		$	19,705		$	158,213
Support and other services	43,687			(2,686		)	41,001
Total revenue	$	182,195		$	17,019		$	199,214
Gross profit	$	105,349		$	17,019		$	122,368
Operating expenses
Sales and marketing expenses	$	111,244		$	130		$	111,374
Loss from operations	$	(92,290	)	$	16,889		$	(75,401	)
Net Loss	$	(93,212	)	$	16,843		$	(76,369	)
Basic and diluted net loss per share	$	(0.66	)	$	0.12		$	(0.54	)



	Six Months Ended January 31, 2017
	As Previously Reported			Impact of Adoption			As Adjusted
Revenue	(in thousands, except per share data)
Product	$	268,165		$	43,584		$	311,749
Support and other services	80,839			(4,813		)	76,026
Total revenue	$	349,004		$	38,771		$	387,775
Gross profit	$	202,396		$	38,771		$	241,167
Operating expenses
Sales and marketing expenses	$	240,019		$	(20	)	$	239,999
Loss from operations	$	(228,671	)	$	38,791		$	(189,880	)
Net Loss	$	(255,381	)	$	38,710		$	(216,671	)
Basic and diluted net loss per share	$	(2.36	)	$	0.36		$	(2.00	)

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



	Three Months Ended January 31, 2017
	As Previously Reported		Impact of Adoption		As Adjusted
	(in thousands)
U.S.	$	102,173	$	2,869	$	105,042
Europe, the Middle East and Africa	33,272		1,330		34,602
Asia-Pacific	37,382		12,561		49,943
Other Americas	9,368		259		9,627
Total revenue	$	182,195	$	17,019	$	199,214



	Six Months Ended January 31, 2017
	As Previously Reported		Impact of Adoption		As Adjusted
	(in thousands)
U.S.	$	205,044	$	6,166	$	211,210
Europe, the Middle East and Africa	57,520		2,498		60,018
Asia-Pacific	66,290		29,500		95,790
Other Americas	20,150		607		20,757
Total revenue	$	349,004	$	38,771	$	387,775

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



	Six Months Ended January 31, 2017
	As Previously Reported			Impact of Adoption			As Adjusted
Cash flows from operating activities:	(in thousands)
Net loss	$	(255,381	)	$	38,710		$	(216,671	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred commissions	$	(8,049	)	$	(22	)	$	(8,071	)
Accrued expenses and other liabilities	$	1,594		$	83		$	1,677
Deferred revenue	$	118,143		$	(38,771	)	$	79,372

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 January 31,				Six Months Ended January 31,
	2017		2018		2017		2018
	(in thousands)
Software revenue	$	102,845	$	145,171	$	207,590	$	283,385
Hardware revenue	55,368		77,999		104,159		158,837
Support and other services revenue	41,001		63,574		76,026		120,074
Total revenue	$	199,214	$	286,744	$	387,775	$	562,296

Deferred Revenue, by Arrangement, Disclosure

Significant changes in the balance of deferred revenue (contract liability) total deferred commissions (contract asset) for the periods presented are as follows:



	Deferred Revenue			Deferred Commissions
	(in thousands)
Balance as of July 31, 2017 *	$	369,056		73,527
Additions	96,288			33,807
Revenue/commissions recognized	(56,500		)	(25,350		)
Balance as of October 31, 2017	408,844			81,984
Additions	132,730			45,782
Revenue/commissions recognized	(63,574		)	(28,138		)
Balance as of January 31, 2018	$	478,000		$	99,628

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

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jan. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured on Recurring Basis

The carrying amounts and estimated fair values of financial instruments not recorded at fair value are as follows:



	As of July 31, 2017		As of January 31, 2018
	Carrying Value	Estimated Fair Value	Carrying Value		Estimated Fair Value
	(in thousands)
Convertible senior notes, net	—	—	$	415,651	$	563,011

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 January 31, 2018
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	380,039	$	—	$	—	$	380,039
Commercial paper			63,529				63,529
U.S. government securities	—		25,281		—		25,281
Corporate bonds	—		2,847		—		2,847
Short-term investments:
Corporate bonds	—		209,425		—		209,425
Commercial paper	—		74,092		—		74,092
U.S. government securities	—		24,292		—		24,292
Total measured at fair value	$	380,039	$	399,466	$	—	779,505
Cash							138,750
Total cash, cash equivalents and short-term investments							$	918,255
Financial Liabilities:
Contingent consideration	$	—	$	—	$	340	$	340

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, categorized as Level 3 in the fair value hierarchy, is as follows:



	Six Months Ended January 31,
	2017		2018
	(in thousands)
Contingent consideration—beginning balance	$	—	$	4,295
Assumed in a business acquisition	2,371		—
Change in fair value*	472		(3,955		)
Contingent consideration—ending balance	$	2,843	$	340

____________


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

BALANCE SHEET COMPONENTS (Tables)

6 Months Ended

Jan. 31, 2018

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 January 31, 2018
	(in thousands)
Due within 1 year	$	222,640
Due after 1 year through 3 years	85,169
Total	$	307,809

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			January 31, 2018
		(in thousands)
Computer, production, engineering and other equipment	36	$	85,280		$	104,891
Demonstration units	12	46,387			51,580
Leasehold improvements	*	10,562			15,309
Furniture and fixtures	60	4,744			5,866
Total property and equipment—gross		146,973			177,646
Less accumulated depreciation and amortization		(88,901		)	(108,572		)
Total property and equipment—net		$	58,072		$	69,074

____________


*	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			January 31, 2018
	(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		)	(3,375		)
Accumulated amortization of customer relationships	(915		)	(1,316		)
Total accumulated amortization	(2,229		)	(4,691		)
Intangible assets, net	$	26,001		$	23,539

Schedule of Indefinite-Lived Intangible Assets

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



	As of
	July 31, 2017			January 31, 2018
	(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		)	(3,375		)
Accumulated amortization of customer relationships	(915		)	(1,316		)
Total accumulated amortization	(2,229		)	(4,691		)
Intangible assets, net	$	26,001		$	23,539

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 six months)	$	2,710
2019	5,421
2020	5,421
2021	5,421
2022	4,224
Thereafter	342
Total	$	23,539

Schedule of Accrued Liabilities

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



	As of
	July 31, 2017		January 31, 2018
	(in thousands)
Accrued commissions	$	20,388	$	24,115
Accrued vacation	6,286		7,438
Contributions to ESPP withheld	14,371		18,036
Accrued bonus	7,342		8,566
Payroll taxes payable	3,434		8,970
Other	5,700		8,185
Total accrued compensation and benefits	$	57,521	$	75,310

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

CONVERTIBLE SENIOR NOTES (Tables)

6 Months Ended

Jan. 31, 2018

Debt Disclosure [Abstract]

Net Proceeds from Notes

The estimated total net proceeds from the Notes are as follows:



	Amount
	(in thousands)
Principal amount	$	575,000
Less initial purchasers' discount	(10,781		)
Less cost of the bond hedges	(143,175		)
Add proceeds from the sale of warrants	87,975
Less other issuance costs	(707		)
Net proceeds	$	508,312

Components of Notes

The Notes consisted of the following:



	As of
	January 31, 2018
	(in thousands)
Principal amounts:
Principal	$	575,000
Unamortized debt discount⁽¹⁾	(150,929		)
Unamortized debt issuance costs⁽¹⁾	(8,420		)
Net carrying amount	$	415,651
Carrying amount of the equity component⁽²⁾	$	148,598


⁽¹⁾	Included in the condensed consolidated balance sheet within "Convertible senior notes—net" and amortized over the remaining life of the Notes using the effective interest rate method. The effective interest rate is 6.62%.


⁽²⁾	Included in the condensed consolidated balance sheet within additional paid-in capital, net of $3.0 million in equity issuance costs.

Interest Expense Recognized

The following table sets forth the total interest expense recognized related to the Notes:



	Three and Six Months Ended January 31, 2018
	(in thousands)
Interest expense related to amortization of debt discount	$	699
Interest expense related to amortization of the debt issuance costs	39
Total interest expense	$	738

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

EQUITY AWARD PLANS (Tables)

6 Months Ended

Jan. 31, 2018

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	9,214,498		$	32.68
Vested	(2,749,519	)	$	18.01
Canceled/forfeited	(1,230,623	)	$	22.86
Outstanding—January 31, 2018	22,610,446		$	24.37

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:



	Six Months Ended January 31,
	2017		2018
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 January 31,				Six Months Ended January 31,
	2017		2018		2017		2018
	(in thousands)				(in thousands)
Cost of revenue:
Product	$	848	$	684	$	1,814	$	1,254
Support and other services	2,389		2,133		5,739		4,205
Sales and marketing	15,528		15,942		49,419		29,708
Research and development	28,759		17,023		62,785		32,565
General and administrative	5,083		6,229		23,578		9,794
Total stock-based compensation expense	$	52,607	$	42,011	$	143,335	$	77,526

NET LOSS PER SHARE (Tables)

6 Months Ended

Jan. 31, 2018

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 January 31,						Six Months Ended January 31,
	2017 *As Adjusted			2018			2017 *As Adjusted			2018
Numerator:
Net loss	$	(76,369	)	$	(62,631	)	$	(216,671	)	$	(124,118	)
Denominator:
Weighted-average shares—basic and diluted	141,996,600			161,737,428			108,185,194			159,251,964
Net loss per share attributable to common stockholders—basic and diluted	$	(0.54	)	$	(0.39	)	$	(2.00	)	$	(0.78	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Three and Six Months Ended January 31,
	2017	2018
Outstanding stock options and RSUs	44,813,334	37,328,263
Employee stock purchase plan	2,304,960	2,031,761
Common stock subject to repurchase	551,750	107,631
Common stock warrants	51,270	34,180
Total	47,721,314	39,501,835

SEGMENT INFORMATION (Tables)

6 Months Ended

Jan. 31, 2018

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 January 31,				Six Months Ended January 31,
	2017 *As Adjusted		2018		2017 *As Adjusted		2018
	(in thousands)				(in thousands)
U.S.	$	105,042	$	165,775	$	211,210	$	353,140
Europe, the Middle East and Africa	34,602		51,729		60,018		89,173
Asia-Pacific	49,943		59,293		95,790		104,152
Other Americas	9,627		9,947		20,757		15,831
Total revenue	$	199,214	$	286,744	$	387,775	$	562,296

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Partner Concentration Risk	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017	Jul. 31, 2017
Revenue \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage			12.00%	11.00%
Revenue \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage	18.00%	18.00%	23.00%	19.00%
Revenue \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage	16.00%	15.00%	17.00%	14.00%
Revenue \| Partner D
Concentration Risk [Line Items]
Concentration risk percentage	10.00%		10.00%	11.00%
Revenue \| Partner E
Concentration Risk [Line Items]
Concentration risk percentage		10.00%
Revenue \| Partner F
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	14.00%	14.00%	12.00%
Accounts Receivable \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage			18.00%		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			19.00%		20.00%
Accounts Receivable \| Partner E
Concentration Risk [Line Items]
Concentration risk percentage			10.00%
Accounts Receivable \| Partner F
Concentration Risk [Line Items]
Concentration risk percentage					18.00%

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

Jan. 31, 2018

Oct. 31, 2017

Jul. 31, 2017

Assets

$ 33,508

$ 23,843

66,120

49,684

99,628

$ 81,984

73,527

231,731

170,123

246,269

198,933

478,000

$ 408,844

369,056

11,241

9,707

$ 300,479

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

6 Months Ended

Jan. 31, 2018

Jan. 31, 2017

Jan. 31, 2018

Jan. 31, 2017

$ 223,170

$ 158,213

$ 442,222

$ 311,749

63,574

41,001

120,074

76,026

286,744

199,214

^[1]

562,296

387,775

178,216

122,368

^[1]

345,146

241,167

151,201

111,374

296,606

239,999

(59,857)

(75,401)

^[1]

(118,896)

(189,880)

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

$ (62,631)

$ (76,369)

^[1]

$ (124,118)

$ (216,671)

$ (0.39)

$ (0.54)

^[1]

$ (0.78)

$ (2.00)

$ 158,213

$ 311,749

41,001

76,026

199,214

387,775

122,368

241,167

111,374

239,999

(75,401)

(189,880)

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

$ (76,369)

$ (216,671)

$ (0.54)

$ (2.00)

Accounting Standards Update 2014-09 | Scenario, Previously Reported

$ 138,508

$ 268,165

43,687

80,839

182,195

349,004

105,349

202,396

111,244

240,019

(92,290)

(228,671)

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

$ (93,212)

$ (255,381)

$ (0.66)

$ (2.36)

Accounting Standards Update 2014-09 | Restatement Adjustment

$ 19,705

$ 43,584

(2,686)

(4,813)

17,019

38,771

17,019

38,771

130

(20)

16,889

38,791

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

$ 16,843

$ 38,710

$ 0.12

$ 0.36

[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

6 Months Ended

Jan. 31, 2018

Jan. 31, 2017

Jan. 31, 2018

Jan. 31, 2017

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

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

$ 286,744

$ 199,214

^[1]

$ 562,296

$ 387,775

U.S.

Europe, the Middle East and Africa

165,775

105,042

353,140

211,210

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

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

51,729

34,602

89,173

60,018

Asia-Pacific

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

59,293

49,943

104,152

95,790

Other Americas

$ 9,947

9,627

$ 15,831

20,757

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

Accounting Standards Update 2014-09 | U.S.

199,214

387,775

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

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

105,042

211,210

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

Accounting Standards Update 2014-09 | Asia-Pacific

34,602

60,018

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

Accounting Standards Update 2014-09 | Other Americas

49,943

95,790

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

Accounting Standards Update 2014-09 | Scenario, Previously Reported

9,627

20,757

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

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

182,195

349,004

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

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

102,173

205,044

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

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

33,272

57,520

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

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

37,382

66,290

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

Accounting Standards Update 2014-09 | Restatement Adjustment

9,368

20,150

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

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

17,019

38,771

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

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

2,869

6,166

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

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

1,330

2,498

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

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

12,561

29,500

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

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

$ 259

$ 607

[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

6 Months Ended

Jan. 31, 2018

Jan. 31, 2017

Jan. 31, 2018

Jan. 31, 2017

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

$ (62,631)

$ (76,369)

^[1]

$ (124,118)

$ (216,671)

(26,101)

(8,071)

2,415

1,677

$ 108,944

79,372

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

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

(76,369)

(216,671)

8,071

1,677

Accounting Standards Update 2014-09 | Scenario, Previously Reported

79,372

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

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

(93,212)

(255,381)

8,049

1,594

Accounting Standards Update 2014-09 | Restatement Adjustment

118,143

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

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

$ 16,843

38,710

Condensed Income Statements, Captions [Line Items]

$ (38,771)

[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 - Schedule of Revenue (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jan. 31, 2018

Jan. 31, 2017

Jan. 31, 2018

Jan. 31, 2017

$ 223,170

$ 158,213

$ 442,222

$ 311,749

63,574

41,001

120,074

76,026

Condensed Income Statements, Captions [Line Items]

286,744

199,214

^[1]

562,296

387,775

Software

Condensed Income Statements, Captions [Line Items]

145,171

102,845

283,385

207,590

Hardware

$ 77,999

55,368

$ 158,837

104,159

Condensed Income Statements, Captions [Line Items]

158,213

311,749

41,001

76,026

$ 199,214

$ 387,775

[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 Revenue/Commissions (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jan. 31, 2018	Oct. 31, 2017	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning balance	$ 408,844	$ 369,056		$ 369,056
Additions		96,288		132,730
Revenue recognized		(56,500)		(63,574)
Deferred revenue, ending balance	478,000	408,844		478,000
Movement in Deferred Commissions [Roll Forward]
Deferred commissions, beginning balance	81,984	73,527		73,527
Additions		33,807		45,782
Commissions Recognized		(25,350)		(28,138)
Deferred commissions, ending balance	$ 99,628	$ 81,984		$ 99,628
Percent expected to be recognized in next year	34.00%			34.00%
Revenue recognized, amount deferred in prior period	$ 55,000		$ 36,700	$ 96,500	$ 55,600
Contracted revenue not recognized	$ 519,900			$ 519,900
Percent expected to be recognized in next year	51.00%			51.00%

FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Jul. 31, 2017
Financial Assets:
Short-term investments:	$ 307,809	$ 210,694
Recurring
Financial Assets:
Total measured at fair value	779,505	268,519
Cash	138,750	80,534
Total cash, cash equivalents and short-term investments	918,255	349,053
Recurring \| Commitments
Financial Liabilities:
Convertible preferred stock warrant liability	340	4,295
Recurring \| Corporate bonds
Financial Assets:
Short-term investments:	209,425	160,634
Recurring \| Commercial paper
Financial Assets:
Short-term investments:	74,092	36,084
Recurring \| U.S. government securities
Financial Assets:
Short-term investments:	24,292	13,976
Recurring \| Money market funds
Financial Assets:
Cash equivalents:	380,039	34,784
Recurring \| Commercial paper
Financial Assets:
Cash equivalents:	63,529	23,041
Recurring \| U.S. government securities
Financial Assets:
Cash equivalents:	25,281
Recurring \| Corporate bonds
Financial Assets:
Cash equivalents:	2,847
Recurring \| Level I
Financial Assets:
Total measured at fair value	380,039	34,784
Recurring \| Level I \| Commitments
Financial Liabilities:
Convertible preferred stock warrant liability	0	0
Recurring \| Level I \| Corporate bonds
Financial Assets:
Short-term investments:	0	0
Recurring \| Level I \| Commercial paper
Financial Assets:
Short-term investments:	0	0
Recurring \| Level I \| U.S. government securities
Financial Assets:
Short-term investments:	0	0
Recurring \| Level I \| Money market funds
Financial Assets:
Cash equivalents:	380,039	34,784
Recurring \| Level I \| Commercial paper
Financial Assets:
Cash equivalents:		0
Recurring \| Level I \| U.S. government securities
Financial Assets:
Cash equivalents:	0
Recurring \| Level I \| Corporate bonds
Financial Assets:
Cash equivalents:	0
Recurring \| Level II
Financial Assets:
Total measured at fair value	399,466	233,735
Recurring \| Level II \| Commitments
Financial Liabilities:
Convertible preferred stock warrant liability	0	0
Recurring \| Level II \| Corporate bonds
Financial Assets:
Short-term investments:	209,425	160,634
Recurring \| Level II \| Commercial paper
Financial Assets:
Short-term investments:	74,092	36,084
Recurring \| Level II \| U.S. government securities
Financial Assets:
Short-term investments:	24,292	13,976
Recurring \| Level II \| Money market funds
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level II \| Commercial paper
Financial Assets:
Cash equivalents:	63,529	23,041
Recurring \| Level II \| U.S. government securities
Financial Assets:
Cash equivalents:	25,281
Recurring \| Level II \| Corporate bonds
Financial Assets:
Cash equivalents:	2,847
Recurring \| Level III
Financial Assets:
Total measured at fair value	0	0
Recurring \| Level III \| Commitments
Financial Liabilities:
Convertible preferred stock warrant liability	340	4,295
Recurring \| Level III \| Corporate bonds
Financial Assets:
Short-term investments:	0	0
Recurring \| Level III \| Commercial paper
Financial Assets:
Short-term investments:	0	0
Recurring \| Level III \| U.S. government securities
Financial Assets:
Short-term investments:	0
Recurring \| Level III \| Money market funds
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level III \| Commercial paper
Financial Assets:
Cash equivalents:		$ 0
Recurring \| Level III \| U.S. government securities
Financial Assets:
Cash equivalents:	0
Recurring \| Level III \| Corporate bonds
Financial Assets:
Cash equivalents:	$ 0

FAIR VALUE MEASUREMENTS - Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($)	Jan. 31, 2018	Jul. 31, 2017
Reported Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes, net	$ 415,651,000	$ 0
Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes, net	$ 563,011,000	$ 0

FAIR VALUE MEASUREMENTS - Level 3 Roll Forward (Details) - Commitments - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
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	3,955	(472)
Contingent consideration—ending balance	$ 340	$ 2,843

BALANCE SHEET COMPONENTS - Short-Term Investments (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Jul. 31, 2017
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract]
Due within 1 year	$ 222,640
Due after 1 year through 3 years	85,169
Total	$ 307,809	$ 210,694

BALANCE SHEET COMPONENTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017	Jul. 31, 2017
Property, Plant and Equipment [Line Items]
Total property and equipment—gross	$ 177,646		$ 177,646		$ 146,973
Less accumulated depreciation and amortization	(108,572)		(108,572)		(88,901)
Total property and equipment—net	69,074		69,074		58,072
Depreciation and amortization			23,015	$ 18,172
Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Depreciation and amortization	10,300	$ 9,000	$ 20,600	$ 17,200
Computer, production, engineering and other equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In months)			36 months
Total property and equipment—gross	104,891		$ 104,891		85,280
Demonstration units
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In months)			12 months
Total property and equipment—gross	51,580		$ 51,580		46,387
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment—gross	15,309		$ 15,309		10,562
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In months)			60 months
Total property and equipment—gross	$ 5,866		$ 5,866		$ 4,744

BALANCE SHEET COMPONENTS - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2018	Jul. 31, 2017
Finite-lived intangible assets:
Finite-lived intangible assets, gross	$ 28,230	$ 12,130
Total intangible assets, gross	28,230	28,230
Less:
Accumulated amortization	(4,691)	(2,229)
Intangible assets, net	23,539	26,001
In-process R&D
Indefinite-lived intangible asset:
In-process R&D	0	16,100
Developed technology
Finite-lived intangible assets:
Finite-lived intangible assets, gross	23,400	7,300
Less:
Accumulated amortization	$ (3,375)	(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	$ (1,316)	$ (915)

BALANCE SHEET COMPONENTS - Future Amortization Expense (Details) $ in Thousands	Jan. 31, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018 (remaining six months)	$ 2,710
2019	5,421
2020	5,421
2021	5,421
2022	4,224
Thereafter	342
Total	$ 23,539

BALANCE SHEET COMPONENTS - Accrued Compensation Benefits (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Jul. 31, 2017
Employee-related Liabilities, Current [Abstract]
Accrued commissions	$ 24,115	$ 20,388
Accrued vacation	7,438	6,286
Contributions to ESPP withheld	18,036	14,371
Accrued bonus	8,566	7,342
Payroll taxes payable	8,970	3,434
Other	8,185	5,700
Total accrued compensation and benefits	$ 75,310	$ 57,521

BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Jul. 31, 2017
Other Liabilities Disclosure [Abstract]
Accrued professional services	$ 4,273	$ 4,167
Income taxes payable	4,163	3,873
Other	2,805	1,667
Total accrued expenses and other current liabilities	$ 11,241	$ 9,707

CONVERTIBLE SENIOR NOTES - Proceeds from Notes (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Jan. 31, 2018	Jan. 31, 2018	Jan. 31, 2017
Debt Instrument [Line Items]
Payments for convertible note hedges		$ (143,175)	$ 0
Proceeds from issuance of warrants		87,975	$ 0
Convertible Debt
Debt Instrument [Line Items]
Principal amount	$ 575,000	575,000
Less initial purchasers' discount	(10,781)	(10,781)
Payments for convertible note hedges	(143,175)
Proceeds from issuance of warrants	87,975
Debt Issuance Cost, Gross, Noncurrent	707	707
Less other issuance costs		$ (39)
Net proceeds	$ 508,312

CONVERTIBLE SENIOR NOTES - Additional Information (Details) $ / shares in Units, shares in Millions	1 Months Ended	6 Months Ended
	Jan. 31, 2018 USD ($) day $ / shares shares	Jan. 31, 2018 USD ($) $ / shares shares	Jan. 31, 2017 USD ($)
Debt Instrument [Line Items]
Number of securities called by warrants or rights (in shares) \| shares	11.8	11.8
Payments for convertible note hedges		$ 143,175,000	$ 0
Exercise price of warrants (in dollars per share) \| $ / shares	$ 73.46	$ 73.46
Proceeds from issuance of warrants		$ 87,975,000	$ 0
Transaction cost		$ (55,200,000)
Dilutive effect of convertible securities (in shares) \| shares		3.9
Share price threshold for dilutive effect of convertible debt (in dollars per share) \| $ / shares	73.46	$ 73.46
Dilutive effect of $10 increase in share price (in shares) \| shares		4.9
Dilutive effect of warrants (in shares) \| shares		1.4
Share price threshold for dilutive effect of warrants (in dollars per share) \| $ / shares	83.46	$ 83.46
Common Class A
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares	$ 32.10	$ 32.10
Convertible Debt
Debt Instrument [Line Items]
Debt Issuance Cost, Gross, Noncurrent	$ 707,000	$ 707,000
Face amount	$ 575,000,000	$ 575,000,000
Interest rate, stated percentage	0.00%	0.00%
Convertible debt	$ 75,000,000	$ 75,000,000
Conversion ratio	20.4705
Conversion price (in dollars per share) \| $ / shares	$ 48.85	$ 48.85
Threshold trading days \| day	20
Threshold consecutive trading days \| day	30
Threshold percentage of stock price trigger	130.00%
Redemption price, percentage	100.00%
Carrying amount of liability component	$ 423,400,000	$ 423,400,000
Carrying amount of equity component	151,600,000	151,600,000
Unamortized discount and debt issuance costs, net	11,500,000	11,500,000
Unamortized discount, net	10,781,000	10,781,000
Transaction costs attributable to liability component	8,500,000	8,500,000
Transaction costs attributable to equity component	$ 3,000,000	$ 3,000,000
Debt instrument, term	59 months
Payments for convertible note hedges	$ 143,175,000
Proceeds from issuance of warrants	$ 87,975,000
Convertible Debt \| Common Class A
Debt Instrument [Line Items]
Threshold percentage of stock price trigger	98.00%

CONVERTIBLE SENIOR NOTES - Components of Notes (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Jul. 31, 2017
Debt Instrument [Line Items]
Convertible senior notes—net	$ 415,651	$ 0
Convertible Debt
Debt Instrument [Line Items]
Principal amount	575,000
Unamortized discount	(150,929)
Unamortized debt issuance cost	(8,420)
Carrying amount of the equity component	$ 148,598
Effective interest rate	6.62%
Payments of offering costs	$ (3,000)

CONVERTIBLE SENIOR NOTES - Interest Expense (Details) - Convertible Debt $ in Thousands	6 Months Ended
	Jan. 31, 2018 USD ($)
Debt Instrument [Line Items]
Interest expense related to amortization of debt discount	$ 699
Interest expense related to amortization of the debt issuance costs	39
Total interest expense	$ 738

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Jan. 31, 2018 USD ($)
Non-contract Vendors
Loss Contingencies [Line Items]
Purchase obligation	$ 19.3
Contract Manufacturer
Loss Contingencies [Line Items]
Purchase obligation	$ 53.0

STOCKHOLDERS’ EQUITY (Details)	Jan. 31, 2018 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)	164,065,915	154,636,520
Common stock, shares outstanding (in shares)	164,065,915	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)	119,873,498	93,570,171
Common stock, shares outstanding (in shares)	119,873,498	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)	44,192,417	61,066,349
Common stock, shares outstanding (in shares)	44,192,417	61,066,349
Common stock number of votes per share \| vote	10

EQUITY AWARD PLANS - Additional Information (Details)		1 Months Ended	6 Months Ended
EQUITY AWARD PLANS - Additional Information (Details)	Aug. 01, 2017 shares	Sep. 30, 2016 USD ($) purchase_period shares	Jan. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2015 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercises in period (in shares)			5,422,273
Weighted average exercise price (in dollars per share) \| $ / shares			$ 3.58
Options outstanding (in shares)			14,717,817
Outstanding options, weighted average exercise price (in dollars per share) \| $ / shares			$ 4.91
Contractual term			6 years 1 month 21 days
Options outstanding, intrinsic value \| $			$ 400,200,000
Compensation not yet recognized \| $			$ 483,800,000
Period for recognition (in years)			2 years 8 months 12 days
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 \| 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
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)			52,457,925
Number of shares available for grant (in shares)			15,095,482
2016 Plan \| Common Class A
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

EQUITY AWARD PLANS - RSU (Details) - RSUs - $ / shares	6 Months Ended
EQUITY AWARD PLANS - RSU (Details) - RSUs - $ / shares	Jan. 31, 2018	Jul. 31, 2017
Number of Shares
Outstanding, beginning balance (in shares)	17,376,090
Granted (in shares)	9,214,498
Released (in shares)	(2,749,519)
Canceled/forfeited (in shares)	(1,230,623)
Outstanding, ending balance (in shares)	22,610,446
Grant Date Fair Value per Share
Outstanding (in dollars per share)	$ 24.37	$ 18.85
Granted (in dollars per share)	32.68
Released (in dollars per share)	18.01
Canceled/forfeited (in dollars per share)	$ 22.86

EQUITY AWARD PLANS - ESPP (Details) - Employee Stock Purchase Plan	6 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
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		6 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 42,011	$ 52,607	$ 77,526	$ 143,335
Cost of revenue, product
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	684	848	1,254	1,814
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	2,133	2,389	4,205	5,739
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	15,942	15,528	29,708	49,419
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	17,023	28,759	32,565	62,785
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 6,229	$ 5,083	$ 9,794	$ 23,578

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Jan. 31, 2017	Jan. 31, 2018	Jan. 31, 2017
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 1,913	$ 547	$ 4,172	$ 658
Valuation allowance release		$ 1,500

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

3 Months Ended

6 Months Ended

Jan. 31, 2018

Jan. 31, 2017

Jan. 31, 2018

Jan. 31, 2017

Earnings Per Share [Abstract]

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

$ (62,631)

$ (76,369)

^[1]

$ (124,118)

$ (216,671)

161,737,428

141,996,600

159,251,964

108,185,194

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

$ (0.39)

$ (0.54)

^[1]

$ (0.78)

$ (2.00)

[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	6 Months Ended
	Jan. 31, 2018	Jan. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	39,501,835	47,721,314
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)	37,328,263	44,813,334
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)	2,031,761	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)	107,631	551,750
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	51,270

SEGMENT INFORMATION (Details)
$ in Thousands

3 Months Ended

6 Months Ended

Jan. 31, 2018

USD ($)

Jan. 31, 2017

USD ($)

Jan. 31, 2018

USD ($)

segment

Jan. 31, 2017

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]

$ 286,744

$ 199,214

^[1]

$ 562,296

$ 387,775

U.S.

Europe, the Middle East and Africa

165,775

105,042

353,140

211,210

Long-lived assets

71,900

$ 63,300

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

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

51,729

34,602

89,173

60,018

Asia-Pacific

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

59,293

49,943

104,152

95,790

Other Americas