View Filing Data

DOCUMENT AND ENTITY INFORMATION - shares	6 Months Ended
DOCUMENT AND ENTITY INFORMATION - shares	Jan. 31, 2019	Feb. 28, 2019
Entity Information [Line Items]
Entity Registrant Name	Nutanix, Inc.
Entity Central Index Key	0001618732
Current Fiscal Year End Date	--07-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jan. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		149,142,169
Common Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		32,957,329

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Current assets:
Cash and cash equivalents	$ 466,010	$ 305,975
Short-term investments	499,915	628,328
Accounts receivable, net	247,600	258,289
Deferred commissions—current	36,934	33,691
Prepaid expenses and other current assets	49,456	36,818
Total current assets	1,299,915	1,263,101
Property and equipment, net	125,924	85,111
Deferred commissions—non-current	93,100	80,688
Total intangible assets, net	75,473	45,366
Goodwill	184,819	87,759
Other assets—non-current	41,907	37,855
Total assets	1,821,138	1,599,880
Current liabilities:
Accounts payable	69,045	65,503
Accrued compensation and benefits	86,460	85,398
Accrued expenses and other current liabilities	16,424	31,682
Deferred revenue—current	337,424	275,648
Total current liabilities	509,353	458,231
Deferred revenue—non-current	442,435	355,559
Convertible Notes Payable, Noncurrent	444,012	429,598
Other liabilities—non-current	39,807	29,713
Total liabilities	1,435,607	1,273,101
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, par value of $0.000025 per share— 200,000,000 shares authorized as of July 31, 2018 and January 31, 2019; no shares issued and outstanding as of July 31, 2018 and January 31, 2019	0	0
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, 2018 and January 31, 2019; 172,858,082 (135,109,672 Class A and 37,748,410 Class B) and 182,033,860 (149,076,531 Class A and 32,957,329 Class B) shares issued and outstanding as of July 31, 2018 and January 31, 2019	4	4
Additional paid-in capital	1,630,834	1,355,907
Accumulated other comprehensive loss	(149)	(1,002)
Accumulated deficit	(1,245,158)	(1,028,130)
Total stockholders’ equity	385,531	326,779
Total liabilities and stockholders’ equity	$ 1,821,138	$ 1,599,880

CONDENSED CONSOLIDATED BALANCE SHEETS (parenthetical) - $ / shares	Jan. 31, 2019	Jul. 31, 2018
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)	182,033,860	172,858,082
Common stock, shares outstanding (in shares)	182,033,860	172,858,082
Common Class A
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	149,076,531	135,109,672
Common stock, shares outstanding (in shares)	149,076,531	135,109,672
Common Class B
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	32,957,329	37,748,410
Common stock, shares outstanding (in shares)	32,957,329	37,748,410

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Revenue:
Total revenue	$ 335,360	$ 286,744	$ 648,643	$ 562,296
Cost of revenue:
Total cost of revenue	85,982	108,528	160,088	217,150
Gross profit	249,378	178,216	488,555	345,146
Operating expenses:
Sales and marketing	213,707	151,201	410,204	296,606
Research and development	123,037	70,924	233,568	135,436
General and administrative	28,788	15,948	56,127	32,000
Total operating expenses	365,532	238,073	699,899	464,042
Loss from operations	(116,154)	(59,857)	(211,344)	(118,896)
Other expense, net	(4,399)	(861)	(7,102)	(1,050)
Loss before provision for (benefit from) income taxes	(120,553)	(60,718)	(218,446)	(119,946)
Provision for (benefit from) income taxes	2,210	1,913	(1,418)	4,172
Net loss	$ (122,763)	$ (62,631)	$ (217,028)	$ (124,118)
Net loss per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (0.68)	$ (0.39)	$ (1.22)	$ (0.78)
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted (in shares)	179,444,648	161,737,428	177,428,029	159,251,964
Product
Revenue:
Total revenue	$ 236,932	$ 223,170	$ 461,278	$ 442,222
Cost of revenue:
Total cost of revenue	45,966	83,217	85,227	168,379
Professional Services
Revenue:
Total revenue	98,428	63,574	187,365	120,074
Cost of revenue:
Total cost of revenue	$ 40,016	$ 25,311	$ 74,861	$ 48,771

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (122,763)	$ (62,631)	$ (217,028)	$ (124,118)
Other comprehensive loss, net of tax:
Change in unrealized (loss) gain on available-for-sale securities, net of tax	1,019	(484)	853	(614)
Comprehensive loss	$ (121,744)	$ (63,115)	$ (216,175)	$ (124,732)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Stockholders' equity, beginning balance (in shares) at Jul. 31, 2017		154,636,520
Stockholders' equity, beginning balance at Jul. 31, 2017	$ 217,063	$ 4	$ 948,134	$ (106)	$ (730,969)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock through employee equity incentive plans, net of repurchases (in shares)		3,989,701
Issuance of common stock through employee equity incentive plans, net of repurchases	7,968		7,968
Issuance of common stock from ESPP purchase (in shares)		1,261,104
Issuance of common stock from ESPP purchase	17,402		17,402
Vesting of early exercised stock options	249		249
Stock-based compensation	35,515		35,515
Other comprehensive loss	(130)			(130)
Net loss	(61,487)				(61,487)
Stockholders' equity, ending balance (in shares) at Oct. 31, 2017		159,887,325
Stockholders' equity, ending balance at Oct. 31, 2017	216,580	$ 4	1,009,268	(236)	(792,456)
Stockholders' equity, beginning balance (in shares) at Jul. 31, 2017		154,636,520
Stockholders' equity, beginning balance at Jul. 31, 2017	217,063	$ 4	948,134	(106)	(730,969)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(124,118)
Stockholders' equity, ending balance (in shares) at Jan. 31, 2018		164,065,915
Stockholders' equity, ending balance at Jan. 31, 2018	300,479	$ 4	1,156,282	(720)	(855,087)
Stockholders' equity, beginning balance (in shares) at Oct. 31, 2017		159,887,325
Stockholders' equity, beginning balance at Oct. 31, 2017	216,580	$ 4	1,009,268	(236)	(792,456)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock through employee equity incentive plans, net of repurchases (in shares)		4,178,590
Issuance of common stock through employee equity incentive plans, net of repurchases	11,419		11,419
Vesting of early exercised stock options	186		186
Stock-based compensation	42,011		42,011
Equity component of the convertible senior notes, net	148,598		148,598
Sale of warrants related to the convertible senior notes	87,975		87,975
Cost of the bond hedges related to the convertible senior notes	(143,175)		(143,175)
Other comprehensive loss	(484)			(484)
Net loss	(62,631)				(62,631)
Stockholders' equity, ending balance (in shares) at Jan. 31, 2018		164,065,915
Stockholders' equity, ending balance at Jan. 31, 2018	$ 300,479	$ 4	1,156,282	(720)	(855,087)
Stockholders' equity, beginning balance (in shares) at Jul. 31, 2018	172,858,082	172,858,082
Stockholders' equity, beginning balance at Jul. 31, 2018	$ 326,779	$ 4	1,355,907	(1,002)	(1,028,130)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock through employee equity incentive plans, net of repurchases (in shares)		2,629,079
Issuance of common stock through employee equity incentive plans, net of repurchases	3,680		3,680
Issuance of common stock from ESPP purchase (in shares)		1,127,728
Issuance of common stock from ESPP purchase	26,318		26,318
Vesting of early exercised stock options	70		70
Issuance of common stock in connection with a business combination		2,451,322
Issuance of common stock in connection with a business combination	102,978		102,978
Stock-based compensation	65,925		65,925
Other comprehensive loss	(166)			(166)
Net loss	(94,265)				(94,265)
Stockholders' equity, ending balance (in shares) at Oct. 31, 2018		179,066,211
Stockholders' equity, ending balance at Oct. 31, 2018	$ 431,319	$ 4	1,554,878	(1,168)	(1,122,395)
Stockholders' equity, beginning balance (in shares) at Jul. 31, 2018	172,858,082	172,858,082
Stockholders' equity, beginning balance at Jul. 31, 2018	$ 326,779	$ 4	1,355,907	(1,002)	(1,028,130)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (217,028)
Stockholders' equity, ending balance (in shares) at Jan. 31, 2019	182,033,860	182,033,860
Stockholders' equity, ending balance at Jan. 31, 2019	$ 385,531	$ 4	1,630,834	(149)	(1,245,158)
Stockholders' equity, beginning balance (in shares) at Oct. 31, 2018		179,066,211
Stockholders' equity, beginning balance at Oct. 31, 2018	431,319	$ 4	1,554,878	(1,168)	(1,122,395)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock through employee equity incentive plans, net of repurchases (in shares)		2,967,649
Issuance of common stock through employee equity incentive plans, net of repurchases	3,341		3,341
Vesting of early exercised stock options	50		50
Stock-based compensation	72,565		72,565
Other comprehensive loss	1,019			1,019
Net loss	$ (122,763)				(122,763)
Stockholders' equity, ending balance (in shares) at Jan. 31, 2019	182,033,860	182,033,860
Stockholders' equity, ending balance at Jan. 31, 2019	$ 385,531	$ 4	$ 1,630,834	$ (149)	$ (1,245,158)

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

6 Months Ended

Jan. 31, 2019

Jan. 31, 2018

Cash flows from operating activities:

Net loss

$ (217,028)

$ (124,118)

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

Depreciation and amortization

35,005

23,015

Stock-based compensation

138,490

77,526

Change in fair value of contingent consideration

(795)

(3,955)

Amortization of debt discount and issuance costs

14,415

738

Other

(1,121)

141

Changes in operating assets and liabilities:

Accounts receivable, net

13,579

(490)

Deferred commissions

(15,655)

(26,101)

Prepaid expenses and other assets

^[1]

(16,495)

(2,832)

Accounts payable

7,554

(16,560)

Accrued compensation and benefits

1,062

17,789

Accrued expenses and other liabilities

(19,029)

2,415

Deferred revenue

148,332

108,944

Net cash provided by operating activities

^[1]

88,314

56,512

Cash flows from investing activities:

Maturities of investments

297,596

84,927

Purchases of investments

(167,066)

(183,102)

Purchases of property and equipment

(72,383)

(31,993)

Payment for a business combination, net of cash and restricted cash acquired

(18,662)

Net cash (used in) provided by investing activities

39,485

(130,168)

Cash flows from financing activities:

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

33,364

36,819

Payment of debt in conjunction with a business combination

(991)

Proceeds from issuance of convertible senior notes, net

564,219

Proceeds from issuance of convertible senior notes, net

(75)

Proceeds from issuance of warrants

87,975

Payments for convertible note hedges

(143,175)

Payment of offering costs

(85)

Net cash provided by financing activities

32,298

545,753

Net (decrease) increase in cash, cash equivalents and restricted cash

^[1]

160,097

472,097

Cash, cash equivalents and restricted cash—beginning of period

^[1]

307,098

139,497

Cash, cash equivalents and restricted cash—end of period

^[1]

467,195

611,594

Restricted cash

^[1],[2]

1,185

1,148

Cash and cash equivalents—end of period

466,010

610,446

Supplemental disclosures of cash flow information:

Cash paid for income taxes

24,023

4,077

Supplemental disclosures of non-cash investing and financing information:

Issuance of common stock in connection with a business combination

102,978

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

9,026

4,673

Vesting of early exercised stock options

120

435

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

$ 0

$ 707

[1]

During the first quarter of fiscal 2019, we adopted Accounting Standards Update ("ASU") No. 2016-18, which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and restricted cash. We adopted the standard retrospectively for the prior period presented. Our adoption of ASU 2016-18 did not have any significant impact on our condensed consolidated statements of cash flows.

[2]

Included within other assets—non-current in the condensed consolidated balance sheets.

OVERVIEW AND BASIS OF PRESENTATION

6 Months Ended

Jan. 31, 2019

Accounting Policies [Abstract]

OVERVIEW AND BASIS OF PRESENTATION

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," "us," "our" or "Nutanix") has operations throughout North America, Europe, Asia Pacific, the Middle East, Latin America and Africa.

We provide a leading enterprise cloud platform that digitizes the traditional silos of enterprise computing, converging compute, virtualization, storage, networking, desktop, governance and security services into one integrated solution. We primarily sell our products and services to end customers through distributors, resellers and original equipment manufacturers ("OEMs") (collectively, "Partners").

Principles of Consolidation and Significant Accounting Policies

The accompanying condensed consolidated financial statements, which include the accounts of Nutanix, Inc. and its wholly-owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and are consistent in all material respects with those included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018, filed with the Securities and Exchange Commission ("SEC") on September 24, 2018. 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 reclassifications have been made to the prior year financial statements to conform to the current year presentation. These reclassifications had no impact on the previously reported net loss or accumulated deficit.

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, 2018.

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 condensed consolidated financial statements and accompanying notes. Such management estimates include, but are not limited to, the best estimate of selling prices for products and related support; useful lives of intangible assets and property and equipment; allowance for doubtful accounts; determination of fair value of stock-based awards; accounting for income taxes, including the valuation allowance on deferred tax assets and uncertain tax positions; warranty liability; fair value of contingent consideration in a business combination; sales commissions expense; 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 of Risk

Concentration of revenue and accounts receivable—We sell our products primarily through our Partners and occasionally directly to end customers. For the three and six months ended January 31, 2018 and 2019, no end customer accounted for more than 10% of total revenue or 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
Partners	2018		2019		2018		2019		July 31, 2018		January 31, 2019
Partner A	⁽¹⁾		⁽¹⁾		12	%	10	%	16	%	⁽¹⁾
Partner B	18	%	11	%	23	%	11	%	13	%	⁽¹⁾
Partner C	16	%	23	%	17	%	22	%	15	%	19	%
Partner D	10	%	⁽¹⁾		10	%	⁽¹⁾		⁽¹⁾		12	%
Partner E	14	%	12	%	14	%	12	%	12	%	13	%


(1)	Less than 10%

Summary of Significant Accounting Policies

There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018, filed with the SEC on September 24, 2018, that have had a material impact on our condensed consolidated financial statements and related notes.

Recently Adopted Accounting Pronouncements

In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires us to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new standard was effective for fiscal years beginning after December 15, 2017, with early adoption permitted, including interim reporting periods within those fiscal years. We adopted this ASU effective August 1, 2018 using a modified retrospective approach. The adoption of the new standard did not have a material impact on our condensed consolidated financial statements, as the increase in our U.S. deferred tax assets was offset by a valuation allowance.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which 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. The new standard was effective for fiscal years beginning after December 15, 2017, with early adoption permitted, including interim reporting periods within those fiscal years. We adopted the new standard effective August 1, 2018, using the retrospective transition approach. The reclassified restricted cash balances from operating activities to changes in cash, cash equivalents and restricted cash on the condensed consolidated statements of cash flows were not material for any period presented.

In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to nonemployees with the guidance applicable to grants to employees. Under the new standard, equity-classified share-based payment awards issued to nonemployees will be measured on the grant date, instead of the current requirement to remeasure the awards through the performance completion date. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including interim reporting periods within those fiscal years. We early adopted the standard effective August 1, 2018, using the prospective approach, and our adoption did not have a material impact on the condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other (Topic 350): Internal-Use Software, which standard aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including interim reporting periods within those fiscal years. We early adopted the standard effective August 1, 2018, using the prospective approach, and our adoption did not have a significant impact on our condensed consolidated financial statements.

In August 2018, the SEC issued Securities Act Release No. 33-10532, which amends certain disclosure requirements, including extending to interim periods the annual requirement to disclose changes in stockholders’ equity. Under the new requirements, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for the current and comparative year-to-date interim periods, with subtotals for each interim period. The final rule was effective in November 2018. We adopted this new guidance during the first quarter of fiscal 2019 and have included a reconciliation of the changes in stockholders' equity in this Quarterly Report on Form 10-Q.

Recently Issued and Not Yet Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, which requires the recognition of right-of-use lease assets and lease liabilities for all leases, except for short-term leases, on the condensed consolidated balance sheets of lessees. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including interim reporting periods within those fiscal years. We will adopt the standard effective August 1, 2019 and we intend to elect certain practical expedients, including the transition option that will allow us to not have to restate the comparative periods in our condensed consolidated financial statements in the year of adoption. We currently anticipate that the adoption of this standard will have a material impact on our condensed consolidated balance sheets, given that we had operating lease commitments in excess of $150 million as of January 31, 2019, on an undiscounted basis. We expect that most of our operating lease commitments will be subject to the new standard and will be recognized as lease liabilities and right-of-use assets upon adoption, which will increase our total assets and total liabilities reported. However, we do not anticipate that the adoption of this standard will have a material impact on our condensed consolidated statements of operations, as the expense recognition under the new standard will be similar to current practice. We do not expect the adoption of this standard to have a material impact on our condensed consolidated statements of cash flows.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides companies with an option to reclassify stranded tax effects resulting from the enactment of the Tax Cuts and Jobs Act ("TCJA") from accumulated other comprehensive income to retained earnings. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including interim reporting periods within those fiscal years, and will be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax rate as a result of TCJA is recognized. We have not made a determination as to which alternative method we will use upon adoption of the standard, but we do not expect the adoption of this ASU to have a material impact on our condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB's disclosure framework project. The new standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted, including interim reporting periods within those fiscal years. We do not expect the adoption of this ASU to have a significant impact on our quarterly or annual disclosures.

BUSINESS COMBINATIONS

6 Months Ended

Jan. 31, 2019

Business Combinations [Abstract]

BUSINESS COMBINATIONS

BUSINESS COMBINATION

Mainframe2, Inc.

On August 24, 2018, we completed the acquisition of Mainframe2, Inc. ("Frame"), a privately held Delaware corporation with its principal offices in San Mateo, California ("Frame Acquisition"). Frame provides a cloud-based Windows desktop and application delivery service. The aggregate preliminary purchase price of approximately $129.6 million consisted of approximately $26.6 million in cash and 1,807,576 shares of our Class A common stock, with an aggregate fair value of approximately $103.0 million. The fair value of the shares of common stock issued was determined to be $56.97 per share, the closing price of our stock on August 24, 2018. Certain portions of the consideration for the acquisition, both cash and shares of our Class A common stock, have been placed in escrow to secure the indemnification obligations of certain Frame security holders.

We also entered into employee holdback or deferred payment arrangements with certain employees of Frame who joined Nutanix after the acquisition, totaling approximately $43.3 million, of which $6.6 million will be paid in cash (cash holdback) and $36.7 million will be satisfied by issuing shares of our Class A common stock (share holdback). As earning the share holdback and payment of the cash holdback are contingent upon the continuous service of the employees, they are being accounted for as post-combination compensation expense over the required service period of three years. The 643,746 shares of our Class A common stock related to the $36.7 million share holdback have a fair value of $56.97 per share, the closing price of our Class A common stock on August 24, 2018, and had been issued at closing and are currently being held in escrow. This holdback is being accounted for as stock-based compensation over the required three-year service period. On September 21, 2018, we filed a Form S-3 registration statement with the SEC for the 2,451,322 shares of our Class A common stock that were issued as partial consideration in the Frame Acquisition.

Acquisition-related costs are expensed as incurred as general and administrative expenses on our condensed consolidated statement of operations. We incurred approximately $0.9 million of acquisition-related costs in connection with the Frame Acquisition, of which approximately $0.2 million was recognized during the six months ended January 31, 2019.

The following table presents the preliminary aggregate purchase price allocation related to our acquisition of Frame as of January 31, 2019:



	Estimated Fair Value
	(in thousands)
Goodwill	$	96,968
Amortizable intangible assets	38,180
Tangible assets acquired	10,811
Liabilities assumed	(16,359		)
Total consideration	$	129,600

The $38.2 million of amortizable intangible assets includes $31.8 million related to developed technology and $2.2 million related to customer relationships, which will be amortized over an estimated economic life of five years, and $4.2 million related to trade name, which will be amortized over an estimated economic life of four years. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The goodwill recognized in this acquisition is primarily attributable to the synergies expected from the expanded market opportunities with our offerings and the knowledgeable and experienced workforce that joined us as part of the acquisition. Goodwill will not be amortized, but will instead be tested for impairment annually or more frequently if certain indicators of impairment are present. Goodwill is not expected to be deductible for income tax purposes.

The purchase price allocation for Frame reflects various preliminary fair value estimates and analyses, including certain tangible assets acquired and liabilities assumed, the valuation of intangible assets acquired, income taxes and goodwill, which are subject to change within the measurement period as preliminary valuations are finalized. Measurement period adjustments are recorded in the reporting period in which the estimates are finalized and adjustment amounts are determined. We determined the fair values of the intangible assets with the assistance of a valuation firm. The estimation of the fair value of the intangible assets required the use of valuation techniques and entailed consideration of all the relevant factors that might affect the fair value, such as present value factors and estimates of future revenues and costs.

Our condensed consolidated financial statements for the three and six months ended January 31, 2019 include the operations of Frame from the date of the acquisition. Pro forma results of operations have not been presented because they are not material to our condensed consolidated financial statements.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

6 Months Ended

Jan. 31, 2019

Revenue Recognition and Deferred Revenue [Abstract]

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

ue and Revenue Recognition

We generate revenue primarily from the sale of our enterprise cloud platform, which can be delivered pre-installed on an appliance that is configured to order or delivered separately to be utilized on a variety of certified hardware platforms. Software delivered on configured to order appliances is not portable to other appliances and has a term equal to the life of the associated appliance, while separately purchased software typically has a term of one to five years. Configured to order appliances, including our Nutanix-branded NX hardware line, are typically sold through Partners and can be purchased from one of our OEM partners or directly from Nutanix. Our platform is typically purchased with one or more years of support and entitlements, which includes the right to software upgrades and enhancements as well as technical support. A substantial portion of sales are made through channel partners and OEM relationships. The following table depicts the disaggregation of revenue by revenue type, consistent with how we evaluate our financial performance:



	Three Months Ended January 31,				Six Months Ended January 31,
	2018		2019		2018		2019
	(in thousands)
Subscription	$	74,187	$	157,356	$	136,563	$	284,332
Non-portable software	129,210		131,621		256,107		278,191
Hardware	77,999		37,919		158,837		70,466
Professional services	5,348		8,464		10,789		15,654
Total revenue	$	286,744	$	335,360	$	562,296	$	648,643

Prior to the first quarter of fiscal 2019, we disaggregated revenue into the following categories: software revenue, hardware revenue and support, entitlements and other services revenue. Software revenue included non-portable software and term-based software licenses. Under the new disaggregated revenue categories, included in the table above, term-based software licenses are included within subscription revenue and non-portable software is presented separately. Support, entitlements and other services revenue included software entitlement and support subscriptions and professional services. Under the new disaggregated revenue categories, software entitlement and support subscriptions are included within subscription revenue and professional services revenue is presented separately. There was no change to the presentation of hardware revenue.

Subscription revenue — Subscription revenue is generated from the sales of software entitlement and support subscriptions, separately purchased software term-based licenses and cloud-based Software as a Service ("SaaS") offerings. We recognize revenue from software entitlement and support subscriptions and SaaS offerings ratably over the contractual service period, the majority of which relate to software entitlement and support subscriptions. These offerings represented approximately $58.2 million and $109.3 million of our subscription revenue for the three and six months ended January 31, 2018 and approximately $91.8 million and $174.8 million of our subscription revenue for the three and six months ended January 31, 2019, respectively. Revenue from our separately purchased software term-based licenses is generally recognized upfront upon transfer of control to the customer, which happens when we make the software available to the customer. These software term-based licenses represented approximately $16.0 million and $27.3 million of our subscription revenue for the three and six months ended January 31, 2018 and approximately $65.6 million and $109.5 million of our subscription revenue for the three and six months ended January 31, 2019, respectively. For the three and six months ended January 31, 2018, the weighted average term for these subscriptions was approximately 4.0 years and 3.7 years, respectively. For the three and six months ended January 31, 2019, the weighted average term for these subscriptions was approximately 3.8 years.

Non-portable software revenue — Non-portable software revenue includes sales of our software operating system when delivered on a configured to order appliance by us or one of our OEM partners. The software licenses associated with these sales are typically non-portable and have a term equal to the life of the appliance the software is delivered on. Revenue from our non-portable software products is generally recognized upon transfer of control to the customer.

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 the customer.

Professional services revenue — We also sell professional services with our products. 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 standalone selling price ("SSP") basis. For deliverables that we routinely sell separately, such as software entitlement and support subscriptions on our core offerings, we determine SSP by evaluating the standalone 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. In situations where revenue recognition occurs before invoicing, an unbilled receivable is created, which represents a contract asset. Unbilled accounts receivable, included in accounts receivable, net on the condensed consolidated balance sheets, was not material for any of the periods presented.

Payment terms on invoiced amounts are typically 30 days. The balance of accounts receivable, net of allowance for doubtful accounts, as of July 31, 2018 and January 31, 2019 is presented in the accompanying condensed 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 commissions 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 support subscriptions 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, the 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 customer contracts, the duration of relationships with our customers, customer retention data, our technology development lifecycle and other factors. Deferred costs are periodically reviewed for impairment.

Deferred revenue — Deferred revenue primarily consists of amounts that have been invoiced but not yet recognized as revenue and primarily pertain to support subscriptions and professional services. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet date.

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



	Deferred Revenue			Deferred Commissions
	(in thousands)
Balance as of July 31, 2018	$	631,207		$	114,379
Additions	159,210			33,958
Revenue/commissions recognized	(88,937		)	(26,230		)
Assumed in a business combination	320			—
Balance as of October 31, 2018	701,800			122,107
Additions	176,487			37,280
Revenue/commissions recognized	(98,428		)	(29,353		)
Balance as of January 31, 2019	$	779,859		$	130,034

During the three and six months ended January 31, 2018, we recognized revenue of approximately $55.0 million and $96.5 million pertaining to amounts deferred as of October 31, 2017 and July 31, 2017, respectively. During the three and six months ended January 31, 2019, we recognized revenue of approximately $85.7 million and $151.6 million pertaining to amounts deferred as of October 31, 2018 and July 31, 2018, respectively.

The majority of our contracted but not invoiced performance obligations are subject to cancellation terms. Revenue allocated to remaining performance obligations represents 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 approximately $787.3 million as of January 31, 2019, of which we expect to recognize approximately 44% over the next 12 months, and the remainder thereafter.

FAIR VALUE MEASUREMENTS

6 Months Ended

Jan. 31, 2019

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, 2018
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	41,763	$	—	$	—	$	41,763
Commercial paper	—		77,818		—		77,818
U.S. government securities	—		4,985		—		4,985
Short-term investments:
Corporate bonds	—		448,458		—		448,458
Commercial paper	—		120,772		—		120,772
U.S. government securities	—		59,098		—		59,098
Total measured at fair value	$	41,763	$	711,131	$	—	$	752,894
Cash							181,409
Total cash, cash equivalents and short-term investments							$	934,303
Financial Liabilities:
Contingent consideration	$	—	$	—	$	1,872	$	1,872



	As of January 31, 2019
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	91,072	$	—	$	—	$	91,072
Commercial paper	—		123,621		—		123,621
U.S. government securities	—		4,993		—		4,993
Short-term investments:
Corporate bonds	—		419,630		—		419,630
Commercial paper	—		36,053		—		36,053
U.S. government securities	—		44,232		—		44,232
Total measured at fair value	$	91,072	$	628,529	$	—	$	719,601
Cash							246,324
Total cash, cash equivalents and short-term investments							$	965,925
Financial Liabilities:
Contingent consideration	$	—	$	—	$	1,077	$	1,077

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value, with the exception of the 0% Convertible Senior Notes, due in 2023 (the "Notes"). Financial instruments that are not recorded at fair value are measured at fair value on a quarterly basis for disclosure purposes. The carrying values and estimated fair values of financial instruments not recorded at fair value are as follows:



	As of July 31, 2018				As of January 31, 2019
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(in thousands)
Convertible senior notes, net	$	429,598	$	685,527	$	444,012	$	709,406

The carrying value of the Notes as of January 31, 2019 was net of the unamortized debt discount of $124.1 million and unamortized debt issuance costs of $6.9 million.

The total estimated fair value of the Notes was determined based on the closing trading price per $100 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.

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



	Six Months Ended January 31,
	2018			2019
	(in thousands)
Contingent consideration—beginning balance	$	4,295		$	1,872
Change in fair value ⁽¹⁾	(3,955		)	(795		)
Contingent consideration—ending balance	$	340		$	1,077


(1)	Recognized 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 a 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, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET COMPONENTS

Short-Term Investments

The amortized cost of our short-term investments approximates their fair value. As of July 31, 2018 and January 31, 2019, unrealized gains and losses from our short-term investments were not material. As of July 31, 2018 and January 31, 2019, unrealized losses from securities that were in an unrealized loss position for more than 12 months were not material. Unrealized losses related to our short-term investments are due to interest rate fluctuations, as opposed to credit quality. In addition, unless we 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, at July 31, 2018 and January 31, 2019, there were no other-than-temporary impairments for these investments.

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



	As of January 31, 2019
	(in thousands)
Due within one year	$	373,943
Due in one year through two years	125,972
Total	$	499,915

Property and Equipment, Net

Property and equipment, net consists of the following:



	Estimated Useful Life	As of
	Estimated Useful Life	July 31, 2018			January 31, 2019
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	131,805		$	174,358
Demonstration units	12	53,547			55,300
Leasehold improvements	⁽¹⁾	19,916			37,424
Furniture and fixtures	60	7,636			11,460
Total property and equipment, gross		212,904			278,542
Less: accumulated depreciation		(127,793		)	(152,618		)
Total property and equipment, net		$	85,111		$	125,924


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

Depreciation expense related to our property and equipment was $10.3 million and $20.6 million for the three and six months ended January 31, 2018 and $14.5 million and $26.9 million for the three and six months ended January 31, 2019, respectively.

Goodwill and Intangible Assets, Net

The changes in the carrying value of goodwill during the six months ended January 31, 2019 were as follows:



	Carrying Amount
	(in thousands)
Balance as of July 31, 2018	$	87,759
Acquired in Frame Acquisition	96,968
Other	92
Balance as of January 31, 2019	$	184,819

Intangible assets, net consists of the following:



	As of
	July 31, 2018			January 31, 2019
	(in thousands)
Developed technology	$	47,500		$	79,300
Customer relationships	6,650			8,860
Trade name	—			4,170
Total intangible assets, gross	54,150			92,330
Less:
Accumulated amortization of developed technology	(6,956		)	(13,821		)
Accumulated amortization of customer relationships	(1,828		)	(2,602		)
Accumulated amortization of trade name	—			(434		)
Total accumulated amortization	(8,784		)	(16,857		)
Total intangible assets, net	$	45,366		$	75,473

Amortization expense related to our intangible assets is being recognized in the condensed consolidated statements of operations within product cost of revenue for developed technology and sales and marketing expense for customer relationships and trade name.

The estimated future amortization expense of our intangible assets is as follows:



Fiscal Year Ending July 31:	Amount
	(in thousands)
2019 (remaining six months)	$	8,702
2020	17,380
2021	17,380
2022	16,183
2023	10,856
Thereafter	4,972
Total	$	75,473

Other Assets—Non-Current

Other assets—non-current consists of the following:



	As of
	July 31, 2018		January 31, 2019
	(in thousands)
Other tax assets—non-current	$	30,927	$	33,538
Deferred tax assets—non-current	2,860		2,988
Other	4,068		5,381
Total other assets—non-current	$	37,855	$	41,907

Other tax assets—non-current as of July 31, 2018 and January 31, 2019 includes a receivable associated with estimated corporate income tax payments, which are refundable over a four-year period. For additional details, refer to Note 10.

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:



	As of
	July 31, 2018		January 31, 2019
	(in thousands)
Contributions to ESPP withheld	$	21,931	$	25,478
Accrued commissions	21,660		17,131
Accrued vacation	10,548		12,695
Payroll taxes payable	9,563		11,192
Accrued bonus	12,129		9,366
Other	9,567		10,598
Total accrued compensation and benefits	$	85,398	$	86,460

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:



	As of
	July 31, 2018		January 31, 2019
	(in thousands)
Accrued professional services	$	5,838	$	5,324
Income taxes payable	20,863		3,623
Other	4,981		7,477
Total accrued expenses and other current liabilities	$	31,682	$	16,424

The decrease in income taxes payable from July 31, 2018 to January 31, 2019 was due primarily to an $18.0 million estimated corporate income tax payment during the second quarter of fiscal 2019.

CONVERTIBLE SENIOR NOTES

6 Months Ended

Jan. 31, 2019

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES

In January 2018, we issued Convertible Senior Notes with a 0% interest rate for an aggregate principal amount of $575.0 million, due in 2023 (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 the maturity of the Notes. The 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 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 the 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.

Based on the closing price of our Class A common stock of $51.23 on January 31, 2019, the if-converted value of the Notes was greater than the principal amount. However, since the price of our Class A common stock was not greater than or equal to 130% of the conversion price for 20 or more trading days during the 30 consecutive trading days ending on the last trading day of the quarter ended January 31, 2019, the Notes are not convertible for the fiscal quarter commencing after January 31, 2019.

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 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 their 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 condensed consolidated balance sheets 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 an 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, recorded as debt issuance costs (presented as contra debt in the condensed consolidated balance sheets), 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 net with the equity component within stockholders’ equity.

The Notes consisted of the following:



	As of January 31, 2019
	(in thousands)
Principal amounts:
Principal	$	575,000
Unamortized debt discount ⁽¹⁾	(124,067		)
Unamortized debt issuance costs ⁽¹⁾	(6,921		)
Net carrying amount	$	444,012
Carrying amount of equity component ⁽²⁾	$	148,598


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

As of January 31, 2019, the remaining life of the Notes was approximately 47 months.

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



	Three Months Ended January 31,				Six Months Ended January 31,
	2018		2019		2018		2019
	(in thousands)
Interest expense related to amortization of debt discount	$	699	$	6,883	$	699	$	13,653
Interest expense related to amortization of debt issuance costs	39		384		39		762
Total interest expense	$	738	$	7,267	$	738	$	14,415

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 initial option to purchase a total of approximately 11.8 million shares of our Class A common stock at a conversion price of approximately $48.85 per share, subject to adjustment for certain specified events. 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 initial option to purchase a total of approximately 11.8 million shares of our Class A common stock at a price of $73.46 per share, subject to adjustment for certain specified events. 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 within 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 condensed consolidated balance sheets as of July 31, 2018 and January 31, 2019. 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 ("EPS") until they meet the criteria for conversion, as discussed above, as we intend to settle the principal amount of the Notes in cash upon conversion. Under the treasury stock method, in periods when 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 was $73.46. However, upon conversion, there will be no economic dilution from the Notes, as exercise of the note hedges eliminate any dilution that would have otherwise occurred. The note hedges are required to be excluded from the calculation of diluted earnings per share, as they would be antidilutive under the treasury stock method.

The warrants will have a dilutive effect when the average share price exceeds the warrant 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 a 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 an actual dilution of approximately 1.4 million shares at a common stock price of $83.46.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jan. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Operating Leases

We have commitments for future payments related to our office facility leases and other contractual obligations. We lease our office facilities under non-cancelable operating lease agreements expiring through 2026. Certain of these lease agreements have free or escalating rent payments. We recognize rent expense under such agreements on a straight-line basis over the lease term, with any free or escalating rent payments amortized as a reduction or addition of rent expense over the lease term.

Future minimum payments due under operating leases as of January 31, 2019 are as follows:



Fiscal Year Ending July 31:	Amount
	(in thousands)
2019 (remaining six months)	$	18,280
2020	32,629
2021	29,112
2022	27,304
2023	24,886
Thereafter	18,510
Total	$	150,721

Purchase Commitments

In the normal course of business, we make commitments with our third-party hardware product manufacturers to manufacture our inventory and non-standard components based on our forecasts. These commitments pertain to obligations for on-hand inventory and non-cancelable purchase orders for non-standard components. We record a charge to cost of product revenue for firm, non-cancelable and unconditional purchase commitments with our third-party hardware product manufacturers for non-standard components when and if we determine that it is probable that certain quantities will exceed our future demand forecasts. As of January 31, 2019, we had approximately $57.4 million of non-cancelable purchase commitments pertaining to our normal operations, and approximately $75.1 million in the form of guarantees to our contract manufacturers related to certain components.

In March 2019, we entered into an agreement with an OEM that provides server, storage and networking hardware, services and support. Through this agreement, the OEM will manufacture and deliver its hardware and provide services and hardware support, and we will provide our software and software support. The agreement includes a commitment from us that this collaboration will yield certain minimum dollar revenue achievements for the OEM over a twenty-seven-month period. If such revenue targets are not achieved, we may be required to pay the OEM between $0 and $73 million in shortfall payments over the course of the twenty-seven-month period.

STOCKHOLDERS’ EQUITY	6 Months Ended
STOCKHOLDERS’ EQUITY	Jan. 31, 2019
Equity [Abstract]
STOCKHOLDERS’ EQUITY	STOCKHOLDERS’ EQUITY We have two classes of authorized common stock, Class A common stock and Class B common stock. As of January 31, 2019, 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, 2019, we had 149,076,531 shares of Class A common stock issued and outstanding and 32,957,329 shares of Class B common stock 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. Holders of Class B common stock are entitled to 10 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 are generally automatically converted into shares of our Class A common stock upon a sale or 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 common stock warrants are converted into shares of our Class B common stock.

EQUITY AWARD PLANS

6 Months Ended

Jan. 31, 2019

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

EQUITY AWARD PLANS

EQUITY INCENTIVE PLANS

Stock Plans

We have three equity incentive plans, the 2010 Stock Plan ("2010 Plan"), 2011 Stock Plan ("2011 Plan") and 2016 Equity Incentive Plan ("2016 Plan"). Our stockholders approved the 2016 Plan in March 2016 and it became effective in connection with our initial public offering ("IPO"). As a result, at the time of the IPO, we ceased granting additional stock awards under the 2010 Plan and 2011 Plan and both plans were 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 restricted stock units ("RSUs"), or until those stock awards become vested or expired by their terms.

Under the 2016 Plan, we may grant incentive stock options ("ISOs"), non-statutory stock options ("NSOs"), restricted stock, RSUs and stock appreciation rights to employees, directors and consultants. We 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 will also include an annual increase on the first day of each fiscal year, beginning in fiscal 2018, equal to the lesser of: 18,000,000 shares, 5% of the outstanding shares of all 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 and 2018, the number of shares of Class A common stock available for issuance under the 2016 Plan increased by 7,731,826 and 8,642,904 shares, respectively, pursuant to these provisions. As of January 31, 2019, we had reserved a total of 49,180,083 shares for the issuance of equity awards under the Stock Plans, of which 17,248,535 shares were still available for grant.

Restricted Stock Units

Performance RSUs — We grant RSUs that have both service and performance conditions to our executives and employees ("Performance RSUs"). Vesting of Performance RSUs is subject to continuous service and the satisfaction of certain performance targets. While we recognize cumulative stock-based compensation expense for the portion of the awards for which both the service condition has been satisfied and it is probable that the performance conditions will be met, the actual vesting and settlement of Performance RSUs are subject to the performance conditions actually being met.

Market Stock Units — In October 2018, the Compensation Committee of our Board of Directors approved the grant of 100,000 RSUs subject to certain market conditions ("MSUs") to our Chief Executive Officer ("CEO"), with a weighted average grant date fair value per unit of $25.16. The MSUs will vest based upon the achievement of an average stock price of $80 over a performance period of approximately 4.5 years (the “Performance Period”), subject to his continuous service on each vesting date. The average stock price is calculated based on the average closing price of one share of our Class A common stock, as reported on the NASDAQ Stock Market during the 180-day period ending on the last trading day prior to each measurement date (as applicable, the “Average Stock Price”). The Average Stock Price is measured once per quarter during the Performance Period, and:


•	If the Average Stock Price on any given quarterly measurement date does not equal or exceed $80, then none of the MSUs will vest that quarter, and any unvested MSUs will carry over to the next quarter (the “Carryover MSUs”);


•	If the Average Stock Price on any given quarterly measurement date equals or exceeds $80, then 1/18th of the MSUs plus the applicable Carryover MSUs, if any, would vest; and/or


•	If the Average Stock Price never equals or exceeds $80 during the Performance Period, the MSUs would terminate at the end of the Performance Period.

We used a Monte Carlo simulation to calculate the fair value of the award on the grant date. A Monte Carlo simulation requires the use of various assumptions, including the stock price volatility and risk free interest rate as of the valuation date corresponding to the length of time remaining in the performance period and expected dividend yield. We recognize stock-based compensation expense related to these MSUs using the graded vesting attribution method over the Performance Period. As of January 31, 2019, 100,000 MSUs remained outstanding.

Below is a summary of RSU activity, including MSUs, under the Stock Plans:



	Number of Shares		Grant Date Fair Value per Share
Outstanding at July 31, 2018	23,597,499		$	31.20
Granted	3,267,214		$	43.76
Vested	(4,011,266	)	$	25.75
Canceled/forfeited	(669,295	)	$	28.83
Outstanding at January 31, 2019	22,184,152		$	34.11

Stock Options

We did not grant any stock options during the six months ended January 31, 2019. A total of 1,584,849 stock options were exercised during the six months ended January 31, 2019, with an average exercise price per share of $4.43. As of January 31, 2019, 9,713,216 stock options, with a weighted average exercise price of $5.22 per share, a weighted average remaining contractual life of 5.2 years and an aggregate intrinsic value of $446.9 million, remained outstanding.

Employee Stock Purchase Plan

In December 2015, the Board adopted the 2016 Employee Stock Purchase Plan ("2016 ESPP"), which was subsequently amended in January 2016 and September 2016 and 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 all 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 and 2018, the number of shares of Class A common stock available for issuance under 2016 ESPP increased by 1,546,365 and 1,728,580 shares, respectively, 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 in 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 or (ii) 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.

During the six months ended January 31, 2019, 1,127,728 shares of common stock were purchased under the 2016 ESPP for an aggregate amount of $26.3 million. As of January 31, 2019, 2,283,313 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,
	2018		2019
Expected term (in years)	0.75		0.79
Risk-free interest rate	1.25	%	2.5	%
Volatility	50.2	%	49.5	%
Dividend yield	—	%	—	%

Stock-Based Compensation

Total stock-based compensation expense recognized in the condensed consolidated statements of operations is as follows:



	Three Months Ended January 31,				Six Months Ended January 31,
	2018		2019		2018		2019
	(in thousands)
Cost of revenue:
Product	$	684	$	872	$	1,254	$	1,570
Support, entitlements and other services	2,133		3,373		4,205		6,530
Sales and marketing	15,942		23,462		29,708		46,068
Research and development	17,023		34,679		32,565		65,688
General and administrative	6,229		10,179		9,794		18,634
Total stock-based compensation expense	$	42,011	$	72,565	$	77,526	$	138,490

As of January 31, 2019, unrecognized stock-based compensation expense related to outstanding stock awards was approximately $691.8 million and is expected to be recognized over a weighted average period of approximately 2.6 years.

INCOME TAXES	6 Months Ended
INCOME TAXES	Jan. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES 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 and U.S. state income taxes. The income tax provision of $2.2 million for the three months ended January 31, 2019 primarily consisted of foreign taxes on our international operations and U.S. state income taxes, partially offset by a tax benefit related to the change in tax law. The income tax benefit of $1.4 million for the six months ended January 31, 2019 primarily consisted of a $5.9 million U.S. valuation allowance release in connection with an acquisition and a tax benefit related to the change in tax law, partially offset by foreign taxes on our international operations and U.S. state income taxes. The net deferred tax liability recorded in connection with this acquisition 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 our U.S. valuation allowance. We continue to maintain a valuation allowance for our U.S. Federal and state deferred tax assets. In December 2017, the U.S. Congress passed, and the President signed, the Tax Cuts and Jobs Act, which includes a broad range of tax reform proposals affecting businesses, including a federal corporate rate reduction from 35% to 21%, effective January 1, 2018, limitations on the deductibility of interest expense and executive compensation, the creation of new minimum taxes, such as the base erosion anti-abuse tax ("BEAT") and Global Intangible Low Taxed Income ("GILTI") tax and a new minimum tax on certain foreign earnings. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which allowed us to record provisional amounts during a measurement period not to extend beyond one year from the enactment date. During the second quarter of fiscal 2019, we completed our analysis based on the current legislative updates related to the TCJA and noted no additional guidance or information that affects the provisional amounts previously recorded. Although our analysis of the tax effects of the TCJA is complete, there may be additional tax effects that could impact our future consolidated financial statements upon the finalization of any laws, regulations or additional TCJA guidance. In January 2018, the FASB released guidance on the accounting for the GILTI provisions of the TCJA. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. During the second quarter of fiscal 2019, we elected to treat any potential GILTI inclusions as a period cost.

NET LOSS PER SHARE

6 Months Ended

Jan. 31, 2019

Earnings Per Share [Abstract]

NET LOSS PER SHARE

Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to potentially dilutive common stock equivalents outstanding during the period, as their effect would be dilutive. Potentially dilutive common shares include participating securities and shares issuable upon the exercise of stock options, the exercise of common stock warrants, the exercise of convertible preferred stock warrants, the vesting of RSUs and each purchase under the 2016 ESPP, under the treasury stock method.

In loss periods, basic net loss per share and diluted net loss per share are the same, as the effect of potential common shares is antidilutive 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.

The computation of basic and diluted net loss per share attributable to Class A and Class B common stockholders is as follows:



	Three Months Ended January 31,						Six Months Ended January 31,
	2018			2019			2018			2019
	(in thousands, except share and per share data)
Numerator:
Net loss	$	(62,631	)	$	(122,763	)	$	(124,118	)	$	(217,028	)
Denominator:
Weighted average shares—basic and diluted	161,737,428			179,444,648			159,251,964			177,428,029
Net loss per share attributable to common stockholders—basic and diluted	$	(0.39	)	$	(0.68	)	$	(0.78	)	$	(1.22	)

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 antidilutive are as follows:



	Three and Six Months Ended January 31,
	2018	2019
Outstanding stock options and RSUs	37,328,263	31,897,368
Employee stock purchase plan	2,031,761	1,526,701
Contingently issuable shares pursuant to business combinations	—	920,371
Common stock subject to repurchase	107,631	15,326
Common stock warrants	34,180	34,180
Total	39,501,835	34,393,946

SEGMENT INFORMATION

6 Months Ended

Jan. 31, 2019

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,
	2018		2019		2018		2019
	(in thousands)
U.S.	$	165,775	$	180,654	$	353,140	$	361,660
Europe, the Middle East and Africa	51,729		69,630		89,173		124,406
Asia Pacific	59,293		71,772		104,152		139,010
Other Americas	9,947		13,304		15,831		23,567
Total revenue	$	286,744	$	335,360	$	562,296	$	648,643

As of July 31, 2018 and January 31, 2019, $130.0 million and $169.9 million, respectively, of our long-lived assets, net were located in the United States.

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jan. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS We enter into various transactions with related parties in the normal course of business. During the three and six months ended January 31, 2018 and 2019, we did not have any material related party transactions. In connection with the acquisition of PernixData in the first quarter of fiscal 2017, entities affiliated with Lightspeed Venture Partners, which owned approximately 36.7% of our outstanding Convertible Preferred Stock as of July 31, 2016, owned approximately 26.4% of the outstanding capital stock of PernixData immediately prior to the completion of the PernixData acquisition. One member of our Board is affiliated with Lightspeed Venture Partners. As of January 31, 2019, entities affiliated with Lightspeed Venture Partners owned approximately 6.4% of our total outstanding Class A and Class B common stock.

OVERVIEW AND BASIS OF PRESENTATION (Policies)	6 Months Ended
OVERVIEW AND BASIS OF PRESENTATION (Policies)	Jan. 31, 2019
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 its wholly-owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and are consistent in all material respects with those included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2018, filed with the Securities and Exchange Commission ("SEC") on September 24, 2018. 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 reclassifications have been made to the prior year financial statements to conform to the current year presentation. These reclassifications had no impact on the previously reported net loss or accumulated deficit. 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, 2018.
Use of Estimates	Use of EstimatesThe 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 condensed consolidated financial statements and accompanying notes. Such management estimates include, but are not limited to, the best estimate of selling prices for products and related support; useful lives of intangible assets and property and equipment; allowance for doubtful accounts; determination of fair value of stock-based awards; accounting for income taxes, including the valuation allowance on deferred tax assets and uncertain tax positions; warranty liability; fair value of contingent consideration in a business combination; sales commissions expense; 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 RiskConcentration of revenue and accounts receivable—We sell our products primarily through our Partners and occasionally directly to end customers. For the three and six months ended January 31, 2018 and 2019, no end customer accounted for more than 10% of total revenue or accounts receivable.
Recently Issued and Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires us to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new standard was effective for fiscal years beginning after December 15, 2017, with early adoption permitted, including interim reporting periods within those fiscal years. We adopted this ASU effective August 1, 2018 using a modified retrospective approach. The adoption of the new standard did not have a material impact on our condensed consolidated financial statements, as the increase in our U.S. deferred tax assets was offset by a valuation allowance. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which 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. The new standard was effective for fiscal years beginning after December 15, 2017, with early adoption permitted, including interim reporting periods within those fiscal years. We adopted the new standard effective August 1, 2018, using the retrospective transition approach. The reclassified restricted cash balances from operating activities to changes in cash, cash equivalents and restricted cash on the condensed consolidated statements of cash flows were not material for any period presented. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to nonemployees with the guidance applicable to grants to employees. Under the new standard, equity-classified share-based payment awards issued to nonemployees will be measured on the grant date, instead of the current requirement to remeasure the awards through the performance completion date. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including interim reporting periods within those fiscal years. We early adopted the standard effective August 1, 2018, using the prospective approach, and our adoption did not have a material impact on the condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other (Topic 350): Internal-Use Software, which standard aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including interim reporting periods within those fiscal years. We early adopted the standard effective August 1, 2018, using the prospective approach, and our adoption did not have a significant impact on our condensed consolidated financial statements. In August 2018, the SEC issued Securities Act Release No. 33-10532, which amends certain disclosure requirements, including extending to interim periods the annual requirement to disclose changes in stockholders’ equity. Under the new requirements, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for the current and comparative year-to-date interim periods, with subtotals for each interim period. The final rule was effective in November 2018. We adopted this new guidance during the first quarter of fiscal 2019 and have included a reconciliation of the changes in stockholders' equity in this Quarterly Report on Form 10-Q. Recently Issued and Not Yet Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases, which requires the recognition of right-of-use lease assets and lease liabilities for all leases, except for short-term leases, on the condensed consolidated balance sheets of lessees. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including interim reporting periods within those fiscal years. We will adopt the standard effective August 1, 2019 and we intend to elect certain practical expedients, including the transition option that will allow us to not have to restate the comparative periods in our condensed consolidated financial statements in the year of adoption. We currently anticipate that the adoption of this standard will have a material impact on our condensed consolidated balance sheets, given that we had operating lease commitments in excess of $150 million as of January 31, 2019, on an undiscounted basis. We expect that most of our operating lease commitments will be subject to the new standard and will be recognized as lease liabilities and right-of-use assets upon adoption, which will increase our total assets and total liabilities reported. However, we do not anticipate that the adoption of this standard will have a material impact on our condensed consolidated statements of operations, as the expense recognition under the new standard will be similar to current practice. We do not expect the adoption of this standard to have a material impact on our condensed consolidated statements of cash flows. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides companies with an option to reclassify stranded tax effects resulting from the enactment of the Tax Cuts and Jobs Act ("TCJA") from accumulated other comprehensive income to retained earnings. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including interim reporting periods within those fiscal years, and will be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax rate as a result of TCJA is recognized. We have not made a determination as to which alternative method we will use upon adoption of the standard, but we do not expect the adoption of this ASU to have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB's disclosure framework project. The new standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted, including interim reporting periods within those fiscal years. We do not expect the adoption of this ASU to have a significant impact on our quarterly or annual disclosures.
Revenue Recognition	We generate revenue primarily from the sale of our enterprise cloud platform, which can be delivered pre-installed on an appliance that is configured to order or delivered separately to be utilized on a variety of certified hardware platforms. Software delivered on configured to order appliances is not portable to other appliances and has a term equal to the life of the associated appliance, while separately purchased software typically has a term of one to five years. Configured to order appliances, including our Nutanix-branded NX hardware line, are typically sold through Partners and can be purchased from one of our OEM partners or directly from Nutanix. Our platform is typically purchased with one or more years of support and entitlements, which includes the right to software upgrades and enhancements as well as technical support. A substantial portion of sales are made through channel partners and OEM relationships.

OVERVIEW AND BASIS OF PRESENTATION (Tables)

6 Months Ended

Jan. 31, 2019

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
Partners	2018		2019		2018		2019		July 31, 2018		January 31, 2019
Partner A	⁽¹⁾		⁽¹⁾		12	%	10	%	16	%	⁽¹⁾
Partner B	18	%	11	%	23	%	11	%	13	%	⁽¹⁾
Partner C	16	%	23	%	17	%	22	%	15	%	19	%
Partner D	10	%	⁽¹⁾		10	%	⁽¹⁾		⁽¹⁾		12	%
Partner E	14	%	12	%	14	%	12	%	12	%	13	%

(1)

Less than 10%

BUSINESS COMBINATIONS (Tables)

6 Months Ended

Jan. 31, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the preliminary aggregate purchase price allocation related to our acquisition of Frame as of January 31, 2019:



	Estimated Fair Value
	(in thousands)
Goodwill	$	96,968
Amortizable intangible assets	38,180
Tangible assets acquired	10,811
Liabilities assumed	(16,359		)
Total consideration	$	129,600

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS (Tables)

6 Months Ended

Jan. 31, 2019

Revenue Recognition and Deferred Revenue [Abstract]

Revenue by Arrangement, Disclosure

The following table depicts the disaggregation of revenue by revenue type, consistent with how we evaluate our financial performance:



	Three Months Ended January 31,				Six Months Ended January 31,
	2018		2019		2018		2019
	(in thousands)
Subscription	$	74,187	$	157,356	$	136,563	$	284,332
Non-portable software	129,210		131,621		256,107		278,191
Hardware	77,999		37,919		158,837		70,466
Professional services	5,348		8,464		10,789		15,654
Total revenue	$	286,744	$	335,360	$	562,296	$	648,643

Deferred Revenue, by Arrangement, Disclosure

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



	Deferred Revenue			Deferred Commissions
	(in thousands)
Balance as of July 31, 2018	$	631,207		$	114,379
Additions	159,210			33,958
Revenue/commissions recognized	(88,937		)	(26,230		)
Assumed in a business combination	320			—
Balance as of October 31, 2018	701,800			122,107
Additions	176,487			37,280
Revenue/commissions recognized	(98,428		)	(29,353		)
Balance as of January 31, 2019	$	779,859		$	130,034

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jan. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured on Recurring Basis

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



	As of July 31, 2018
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	41,763	$	—	$	—	$	41,763
Commercial paper	—		77,818		—		77,818
U.S. government securities	—		4,985		—		4,985
Short-term investments:
Corporate bonds	—		448,458		—		448,458
Commercial paper	—		120,772		—		120,772
U.S. government securities	—		59,098		—		59,098
Total measured at fair value	$	41,763	$	711,131	$	—	$	752,894
Cash							181,409
Total cash, cash equivalents and short-term investments							$	934,303
Financial Liabilities:
Contingent consideration	$	—	$	—	$	1,872	$	1,872



	As of January 31, 2019
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	91,072	$	—	$	—	$	91,072
Commercial paper	—		123,621		—		123,621
U.S. government securities	—		4,993		—		4,993
Short-term investments:
Corporate bonds	—		419,630		—		419,630
Commercial paper	—		36,053		—		36,053
U.S. government securities	—		44,232		—		44,232
Total measured at fair value	$	91,072	$	628,529	$	—	$	719,601
Cash							246,324
Total cash, cash equivalents and short-term investments							$	965,925
Financial Liabilities:
Contingent consideration	$	—	$	—	$	1,077	$	1,077

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



	As of July 31, 2018				As of January 31, 2019
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(in thousands)
Convertible senior notes, net	$	429,598	$	685,527	$	444,012	$	709,406

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



	Six Months Ended January 31,
	2018			2019
	(in thousands)
Contingent consideration—beginning balance	$	4,295		$	1,872
Change in fair value ⁽¹⁾	(3,955		)	(795		)
Contingent consideration—ending balance	$	340		$	1,077

(1)

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

BALANCE SHEET COMPONENTS (Tables)

6 Months Ended

Jan. 31, 2019

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 their contractual maturity dates:



	As of January 31, 2019
	(in thousands)
Due within one year	$	373,943
Due in one year through two years	125,972
Total	$	499,915

Schedule of Property, Plant and Equipment

Property and Equipment, Net

Property and equipment, net consists of the following:



	Estimated Useful Life	As of
	Estimated Useful Life	July 31, 2018			January 31, 2019
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	131,805		$	174,358
Demonstration units	12	53,547			55,300
Leasehold improvements	⁽¹⁾	19,916			37,424
Furniture and fixtures	60	7,636			11,460
Total property and equipment, gross		212,904			278,542
Less: accumulated depreciation		(127,793		)	(152,618		)
Total property and equipment, net		$	85,111		$	125,924


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

Schedule of Goodwill

The changes in the carrying value of goodwill during the six months ended January 31, 2019 were as follows:



	Carrying Amount
	(in thousands)
Balance as of July 31, 2018	$	87,759
Acquired in Frame Acquisition	96,968
Other	92
Balance as of January 31, 2019	$	184,819

Schedule of Finite-Lived Intangible Assets

Intangible assets, net consists of the following:



	As of
	July 31, 2018			January 31, 2019
	(in thousands)
Developed technology	$	47,500		$	79,300
Customer relationships	6,650			8,860
Trade name	—			4,170
Total intangible assets, gross	54,150			92,330
Less:
Accumulated amortization of developed technology	(6,956		)	(13,821		)
Accumulated amortization of customer relationships	(1,828		)	(2,602		)
Accumulated amortization of trade name	—			(434		)
Total accumulated amortization	(8,784		)	(16,857		)
Total intangible assets, net	$	45,366		$	75,473

Schedule of Indefinite-Lived Intangible Assets

Intangible assets, net consists of the following:



	As of
	July 31, 2018			January 31, 2019
	(in thousands)
Developed technology	$	47,500		$	79,300
Customer relationships	6,650			8,860
Trade name	—			4,170
Total intangible assets, gross	54,150			92,330
Less:
Accumulated amortization of developed technology	(6,956		)	(13,821		)
Accumulated amortization of customer relationships	(1,828		)	(2,602		)
Accumulated amortization of trade name	—			(434		)
Total accumulated amortization	(8,784		)	(16,857		)
Total intangible assets, net	$	45,366		$	75,473

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense of our intangible assets is as follows:



Fiscal Year Ending July 31:	Amount
	(in thousands)
2019 (remaining six months)	$	8,702
2020	17,380
2021	17,380
2022	16,183
2023	10,856
Thereafter	4,972
Total	$	75,473

Schedule of Other Assets, Noncurrent

Other assets—non-current consists of the following:



	As of
	July 31, 2018		January 31, 2019
	(in thousands)
Other tax assets—non-current	$	30,927	$	33,538
Deferred tax assets—non-current	2,860		2,988
Other	4,068		5,381
Total other assets—non-current	$	37,855	$	41,907

Schedule of Accrued Liabilities

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:



	As of
	July 31, 2018		January 31, 2019
	(in thousands)
Contributions to ESPP withheld	$	21,931	$	25,478
Accrued commissions	21,660		17,131
Accrued vacation	10,548		12,695
Payroll taxes payable	9,563		11,192
Accrued bonus	12,129		9,366
Other	9,567		10,598
Total accrued compensation and benefits	$	85,398	$	86,460

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:



	As of
	July 31, 2018		January 31, 2019
	(in thousands)
Accrued professional services	$	5,838	$	5,324
Income taxes payable	20,863		3,623
Other	4,981		7,477
Total accrued expenses and other current liabilities	$	31,682	$	16,424

CONVERTIBLE SENIOR NOTES (Tables)

6 Months Ended

Jan. 31, 2019

Debt Disclosure [Abstract]

Net Proceeds from Notes

The 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, 2019
	(in thousands)
Principal amounts:
Principal	$	575,000
Unamortized debt discount ⁽¹⁾	(124,067		)
Unamortized debt issuance costs ⁽¹⁾	(6,921		)
Net carrying amount	$	444,012
Carrying amount of equity component ⁽²⁾	$	148,598


(1)	Included in the condensed consolidated balance sheets 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 sheets 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 Months Ended January 31,				Six Months Ended January 31,
	2018		2019		2018		2019
	(in thousands)
Interest expense related to amortization of debt discount	$	699	$	6,883	$	699	$	13,653
Interest expense related to amortization of debt issuance costs	39		384		39		762
Total interest expense	$	738	$	7,267	$	738	$	14,415

- 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://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-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 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jan. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum payments due under operating leases as of January 31, 2019 are as follows:



Fiscal Year Ending July 31:	Amount
	(in thousands)
2019 (remaining six months)	$	18,280
2020	32,629
2021	29,112
2022	27,304
2023	24,886
Thereafter	18,510
Total	$	150,721

EQUITY AWARD PLANS (Tables)

6 Months Ended

Jan. 31, 2019

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

Schedule of RSUs Activity

Below is a summary of RSU activity, including MSUs, under the Stock Plans:



	Number of Shares		Grant Date Fair Value per Share
Outstanding at July 31, 2018	23,597,499		$	31.20
Granted	3,267,214		$	43.76
Vested	(4,011,266	)	$	25.75
Canceled/forfeited	(669,295	)	$	28.83
Outstanding at January 31, 2019	22,184,152		$	34.11

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,
	2018		2019
Expected term (in years)	0.75		0.79
Risk-free interest rate	1.25	%	2.5	%
Volatility	50.2	%	49.5	%
Dividend yield	—	%	—	%

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

Total stock-based compensation expense recognized in the condensed consolidated statements of operations is as follows:



	Three Months Ended January 31,				Six Months Ended January 31,
	2018		2019		2018		2019
	(in thousands)
Cost of revenue:
Product	$	684	$	872	$	1,254	$	1,570
Support, entitlements and other services	2,133		3,373		4,205		6,530
Sales and marketing	15,942		23,462		29,708		46,068
Research and development	17,023		34,679		32,565		65,688
General and administrative	6,229		10,179		9,794		18,634
Total stock-based compensation expense	$	42,011	$	72,565	$	77,526	$	138,490

NET LOSS PER SHARE (Tables)

6 Months Ended

Jan. 31, 2019

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss Per Share

The computation of basic and diluted net loss per share attributable to Class A and Class B common stockholders is as follows:



	Three Months Ended January 31,						Six Months Ended January 31,
	2018			2019			2018			2019
	(in thousands, except share and per share data)
Numerator:
Net loss	$	(62,631	)	$	(122,763	)	$	(124,118	)	$	(217,028	)
Denominator:
Weighted average shares—basic and diluted	161,737,428			179,444,648			159,251,964			177,428,029
Net loss per share attributable to common stockholders—basic and diluted	$	(0.39	)	$	(0.68	)	$	(0.78	)	$	(1.22	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	Three and Six Months Ended January 31,
	2018	2019
Outstanding stock options and RSUs	37,328,263	31,897,368
Employee stock purchase plan	2,031,761	1,526,701
Contingently issuable shares pursuant to business combinations	—	920,371
Common stock subject to repurchase	107,631	15,326
Common stock warrants	34,180	34,180
Total	39,501,835	34,393,946

SEGMENT INFORMATION (Tables)

6 Months Ended

Jan. 31, 2019

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,
	2018		2019		2018		2019
	(in thousands)
U.S.	$	165,775	$	180,654	$	353,140	$	361,660
Europe, the Middle East and Africa	51,729		69,630		89,173		124,406
Asia Pacific	59,293		71,772		104,152		139,010
Other Americas	9,947		13,304		15,831		23,567
Total revenue	$	286,744	$	335,360	$	562,296	$	648,643

OVERVIEW AND BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2018
Concentration Risk [Line Items]
Operating lease, liability (in excess)	$ 150		$ 150
Partner Concentration Risk \| Revenue \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage			10.00%	12.00%
Partner Concentration Risk \| Revenue \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage	11.00%	18.00%	11.00%	23.00%
Partner Concentration Risk \| Revenue \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage	23.00%	16.00%	22.00%	17.00%
Partner Concentration Risk \| Revenue \| Partner D
Concentration Risk [Line Items]
Concentration risk percentage		10.00%		10.00%
Partner Concentration Risk \| Revenue \| Partner F
Concentration Risk [Line Items]
Concentration risk percentage	12.00%	14.00%	12.00%	14.00%
Partner Concentration Risk \| Accounts Receivable \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage					16.00%
Partner Concentration Risk \| Accounts Receivable \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage					13.00%
Partner Concentration Risk \| Accounts Receivable \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage			19.00%		15.00%
Partner Concentration Risk \| Accounts Receivable \| Partner D
Concentration Risk [Line Items]
Concentration risk percentage			12.00%
Partner Concentration Risk \| Accounts Receivable \| Partner F
Concentration Risk [Line Items]
Concentration risk percentage			13.00%		12.00%

BUSINESS COMBINATIONS - Additional Information (Details) - Mainframe2, Inc. - USD ($) $ / shares in Units, $ in Thousands				6 Months Ended
	Sep. 21, 2018	Aug. 24, 2018	Mar. 22, 2018	Jan. 31, 2019
Business Acquisition [Line Items]
Consideration transferred		$ 129,600		$ 129,600
Payments to acquire businesses, gross		$ 26,600
Equity interest issued or issuable (in shares)	2,451,322	1,807,576
Equity interests issued and issuable (in shares)		$ 103,000
Share price (in dollars per share)		$ 56.97
Deferred payment arrangement, amount		$ 43,300
Deferred payment arrangement, amount paid in cash		6,600
Deferred payment arrangement, amount paid in shares		$ 36,700
Deferred payment, number of shares (in shares)		643,746
Payment term		3 years	3 years
Acquisition related costs		$ 900		200
Intangible assets				$ 38,180
Developed technology
Business Acquisition [Line Items]
Finite-lived intangible assets acquired		31,800
Customer relationships
Business Acquisition [Line Items]
Intangible assets		$ 2,200
Estimated life		5 years
Trade Names
Business Acquisition [Line Items]
Intangible assets		$ 4,200
Estimated life		4 years

BUSINESS COMBINATIONS - Preliminary Aggregate Purchase Price Allocation (Details) - USD ($) $ in Thousands		6 Months Ended
	Aug. 24, 2018	Jan. 31, 2019	Jul. 31, 2018
Business Acquisition [Line Items]
Goodwill		$ 184,819	$ 87,759
Mainframe2, Inc.
Business Acquisition [Line Items]
Goodwill		96,968
Amortizable intangible assets		38,180
Tangible assets acquired		10,811
Liabilities assumed		(16,359)
Total consideration	$ 129,600	$ 129,600

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 335,360	$ 286,744	$ 648,643	$ 562,296
Subscription
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	157,356	74,187	284,332	136,563
Subscription and Circulation, Software
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	65,600	16,000	109,500	27,300
Subscription and Circulation, Software Entitlement and Support Subscription [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 91,800	$ 58,200	$ 174,800	$ 109,300
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Software, license term			1 year
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Software, license term			5 years
Weighted Average
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Software, license term	3 years 9 months 18 days	4 years	3 years 9 months 18 days	3 years 8 months 12 days

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Schedule of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Condensed Income Statements, Captions [Line Items]
Total revenue	$ 335,360	$ 286,744	$ 648,643	$ 562,296
Subscription
Condensed Income Statements, Captions [Line Items]
Total revenue	157,356	74,187	284,332	136,563
Software
Condensed Income Statements, Captions [Line Items]
Total revenue	131,621	129,210	278,191	256,107
Hardware
Condensed Income Statements, Captions [Line Items]
Total revenue	37,919	77,999	70,466	158,837
Professional Services
Condensed Income Statements, Captions [Line Items]
Total revenue	8,464	5,348	15,654	10,789
Accounting Standards Update 2014-09
Condensed Income Statements, Captions [Line Items]
Total revenue	$ 335,360	$ 286,744	$ 648,643	$ 562,296

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Deferred Revenue/Commissions (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jan. 31, 2019	Oct. 31, 2018	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning balance	$ 701,800	$ 631,207		$ 631,207
Additions	176,487	159,210
Revenue recognized	(98,428)	(88,937)
Assumed in a business combination		320
Deferred revenue, ending balance	779,859	701,800		779,859
Movement in Deferred Commissions [Roll Forward]
Deferred commissions, beginning balance	122,107	114,379		114,379
Additions	37,280	33,958
Commissions recognized	(29,353)	(26,230)
Assumed in a business combination		0
Deferred commissions, ending balance	130,034	$ 122,107		130,034
Revenue recognized, amount deferred in prior period	85,700		$ 55,000	151,600	$ 96,500
Contracted revenue not recognized	$ 787,300			$ 787,300
Percent expected to be recognized in next year	44.00%			44.00%

FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Financial Assets:
Short-term investments:	$ 499,915	$ 628,328
Recurring
Financial Assets:
Total measured at fair value	719,601	752,894
Cash	246,324	181,409
Total cash, cash equivalents and short-term investments	965,925	934,303
Recurring \| Commitments
Financial Liabilities:
Convertible preferred stock warrant liability	1,077	1,872
Recurring \| Corporate bonds
Financial Assets:
Short-term investments:	419,630	448,458
Recurring \| Commercial paper
Financial Assets:
Short-term investments:	36,053	120,772
Recurring \| U.S. government securities
Financial Assets:
Short-term investments:	44,232	59,098
Recurring \| Money market funds
Financial Assets:
Cash equivalents:	91,072	41,763
Recurring \| Commercial paper
Financial Assets:
Cash equivalents:	123,621	77,818
Recurring \| U.S. government securities
Financial Assets:
Cash equivalents:	4,993	4,985
Recurring \| Level I
Financial Assets:
Total measured at fair value	91,072	41,763
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:	91,072	41,763
Recurring \| Level I \| Commercial paper
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level I \| U.S. government securities
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level II
Financial Assets:
Total measured at fair value	628,529	711,131
Recurring \| Level II \| Commitments
Financial Liabilities:
Convertible preferred stock warrant liability	0	0
Recurring \| Level II \| Corporate bonds
Financial Assets:
Short-term investments:	419,630	448,458
Recurring \| Level II \| Commercial paper
Financial Assets:
Short-term investments:	36,053	120,772
Recurring \| Level II \| U.S. government securities
Financial Assets:
Short-term investments:	44,232	59,098
Recurring \| Level II \| Money market funds
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level II \| Commercial paper
Financial Assets:
Cash equivalents:	123,621	77,818
Recurring \| Level II \| U.S. government securities
Financial Assets:
Cash equivalents:	4,993	4,985
Recurring \| Level III
Financial Assets:
Total measured at fair value	0	0
Recurring \| Level III \| Commitments
Financial Liabilities:
Convertible preferred stock warrant liability	1,077	1,872
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	0
Recurring \| Level III \| Money market funds
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level III \| Commercial paper
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level III \| U.S. government securities
Financial Assets:
Cash equivalents:	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Non-recurring Basis (Details) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Convertible Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unamortized discount	$ (124,067)	$ (124,100)
Unamortized debt issuance cost	$ (6,921)	(6,900)
Reported Value Measurement \| Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes, net		444,012	$ 429,598
Estimate of Fair Value Measurement \| Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes, net		$ 709,406	$ 685,527

FAIR VALUE MEASUREMENTS - Level 3 Roll Forward (Details) - Commitments - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration—beginning balance	$ 1,872	$ 4,295
Change in fair value	795	3,955
Contingent consideration—ending balance	$ 1,077	$ 340

BALANCE SHEET COMPONENTS - Short-Term Investments (Details) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Due within one year	$ 373,943
Due in one year through two years	125,972
Total	$ 499,915	$ 628,328

BALANCE SHEET COMPONENTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2018
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 278,542		$ 278,542		$ 212,904
Less: accumulated depreciation	(152,618)		(152,618)		(127,793)
Total property and equipment, net	125,924		125,924		85,111
Depreciation and amortization			35,005	$ 23,015
Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Depreciation and amortization	14,500	$ 10,300	$ 26,900	$ 20,600
Computer, production, engineering and other equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life			36 months
Total property and equipment, gross	174,358		$ 174,358		131,805
Demonstration units
Property, Plant and Equipment [Line Items]
Estimated Useful Life			12 months
Total property and equipment, gross	55,300		$ 55,300		53,547
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	37,424		$ 37,424		19,916
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life			60 months
Total property and equipment, gross	$ 11,460		$ 11,460		$ 7,636

BALANCE SHEET COMPONENTS - Goodwill (Details) $ in Thousands	6 Months Ended
	Jan. 31, 2019 USD ($)
Goodwill [Roll Forward]
Balance as of July 31, 2018	$ 87,759
Balance as of January 31, 2019	184,819
Netsil Inc.
Goodwill [Roll Forward]
Acquired in acquisition	96,968
Minjar Inc.
Goodwill [Roll Forward]
Acquired in acquisition	$ 92

BALANCE SHEET COMPONENTS - Intangible Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 92,330	$ 54,150
Less:
Accumulated amortization	(16,857)	(8,784)
Total intangible assets, net	75,473	45,366
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	79,300	47,500
Less:
Accumulated amortization	(13,821)	(6,956)
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	8,860	6,650
Less:
Accumulated amortization	(2,602)	(1,828)
Trade Names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	4,170	0
Less:
Accumulated amortization	$ (434)	$ 0

BALANCE SHEET COMPONENTS - Future Amortization Expense (Details) $ in Thousands	Jan. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019 (remaining six months)	$ 8,702
2020	17,380
2021	17,380
2022	16,183
2023	10,856
Thereafter	4,972
Total	$ 75,473

BALANCE SHEET COMPONENTS - Other Assets Noncurrent (Details) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2019	Jul. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Other tax assets—non-current	$ 33,538	$ 30,927
Deferred tax assets—non-current	2,988	2,860
Other	5,381	4,068
Total other assets—non-current	$ 41,907	$ 37,855
Refund term	4 years

BALANCE SHEET COMPONENTS - Accrued Compensation Benefits (Details) - USD ($) $ in Thousands	Jan. 31, 2019	Jul. 31, 2018
Employee-related Liabilities, Current [Abstract]
Contributions to ESPP withheld	$ 25,478	$ 21,931
Accrued commissions	17,131	21,660
Accrued vacation	12,695	10,548
Payroll taxes payable	11,192	9,563
Accrued bonus	9,366	12,129
Other	10,598	9,567
Total accrued compensation and benefits	$ 86,460	$ 85,398

BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jul. 31, 2018
Other Liabilities Disclosure [Abstract]
Accrued professional services	$ 5,324	$ 5,838
Income taxes payable	3,623	20,863
Other	7,477	4,981
Total accrued expenses and other current liabilities	16,424	$ 31,682
Income taxes paid	$ 18,000

CONVERTIBLE SENIOR NOTES - Proceeds from Notes (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Debt Instrument [Line Items]
Payments for convertible note hedges				$ 0	$ (143,175)
Proceeds from issuance of warrants				0	87,975
Net proceeds					564,219
Convertible Debt
Debt Instrument [Line Items]
Principal amount	$ 575,000	$ 575,000	$ 575,000	575,000	575,000
Less: initial purchasers' discount	(10,781)		(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		707
Less: other issuance costs		$ (384)	$ (39)	$ (762)	$ (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, 2019 USD ($) $ / shares shares	Jan. 31, 2018 USD ($) $ / shares shares
Debt Instrument [Line Items]
Number of securities called by warrants or rights (in shares) \| shares	11.8		11.8
Payments for convertible note hedges		$ 0	$ 143,175,000
Exercise price of warrants (in dollars per share) \| $ / shares	$ 73.46		$ 73.46
Proceeds from issuance of warrants		0	$ 87,975,000
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
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
Common Class A
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares		$ 51.23
Convertible Debt
Debt Instrument [Line Items]
Interest rate, stated percentage	0.00%		0.00%
Face amount	$ 575,000,000.0		$ 575,000,000.0
Convertible debt	$ 75,000,000.0		$ 75,000,000.0
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
Debt issuance cost, gross, noncurrent	707,000		707,000
Transaction costs attributable to liability component	8,500,000		8,500,000
Transaction costs attributable to equity component	3,000,000.0	$ 3,000,000.0	$ 3,000,000.0
Debt instrument, term		47 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, 2019	Jul. 31, 2018	Jan. 31, 2018
Debt Instrument [Line Items]
Convertible senior notes, net	$ 444,012
Convertible Debt
Debt Instrument [Line Items]
Principal amount	575,000		$ 575,000
Unamortized discount	(124,067)	$ (124,100)
Unamortized debt issuance cost	(6,921)	$ (6,900)
Carrying amount of the equity component	$ 148,598
Effective interest rate	6.62%
Payments of offering costs	$ (3,000)		$ (3,000)

CONVERTIBLE SENIOR NOTES - Interest Expense (Details) - Convertible Debt - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Debt Instrument [Line Items]
Interest expense related to amortization of debt discount	$ 6,883	$ 699	$ 13,653	$ 699
Interest expense related to amortization of debt issuance costs	384	39	762	39
Total interest expense	$ 7,267	$ 738	$ 14,415	$ 738

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Mar. 07, 2019	Jan. 31, 2019	Jul. 31, 2018
Loss Contingencies [Line Items]
2019 (remaining six months)			$ 18,280
2020			32,629
2021			29,112
2022			27,304
2023			24,886
Thereafter			18,510
Total			$ 150,721
Non-contract Vendors
Loss Contingencies [Line Items]
Purchase obligation		$ 57,400
Contract Manufacturer
Loss Contingencies [Line Items]
Purchase obligation		$ 75,100
OEM \| Subsequent Event
Loss Contingencies [Line Items]
Purchase commitment, period	27 months
OEM \| Minimum \| Subsequent Event
Loss Contingencies [Line Items]
Purchase obligation	$ 0
OEM \| Maximum \| Subsequent Event
Loss Contingencies [Line Items]
Purchase obligation	$ 73,000

STOCKHOLDERS’ EQUITY (Details)	Jan. 31, 2019 vote class $ / shares shares	Jul. 31, 2018 $ / shares shares
Class of Stock [Line Items]
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)	182,033,860	172,858,082
Common stock, shares outstanding (in shares)	182,033,860	172,858,082
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)	149,076,531	135,109,672
Common stock, shares outstanding (in shares)	149,076,531	135,109,672
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)	32,957,329	37,748,410
Common stock, shares outstanding (in shares)	32,957,329	37,748,410
Common stock number of votes per share \| vote	10

EQUITY AWARD PLANS - Additional Information (Details)				3 Months Ended	6 Months Ended
EQUITY AWARD PLANS - Additional Information (Details)	Aug. 01, 2018 shares	Aug. 01, 2017 shares	Sep. 30, 2016 USD ($) purchase_period shares	Jan. 31, 2019 USD ($) $ / shares shares	Jan. 31, 2019 USD ($) plan $ / shares shares	Jan. 31, 2018 USD ($)	Jul. 31, 2016 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive plans \| plan					3
Exercises in period (in shares)					1,584,849
Weighted average exercise price (in dollars per share) \| $ / shares					$ 4.43
Options outstanding (in shares)				9,713,216	9,713,216
Outstanding options, weighted average exercise price (in dollars per share) \| $ / shares				$ 5.22	$ 5.22
Contractual term					5 years 2 months 12 days
Options outstanding, intrinsic value \| $				$ 446,900,000	$ 446,900,000
Compensation not yet recognized \| $				$ 691,800,000	$ 691,800,000
Period for recognition (in years)					2 years 7 months 6 days
Proceeds from stock plans \| $					$ 33,364,000	$ 36,819,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					3,267,214
Granted (in dollars per share) \| $ / shares					$ 43.76
Released (in dollars per share) \| $ / shares					$ 25.75
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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%
ESPP stock issued during period (in shares)				1,127,728
Proceeds from stock plans \| $				$ 26,300,000
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	1,728,580	1,546,365
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)				2,283,313	2,283,313
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)				49,180,083	49,180,083
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	18,000,000
Annual increase, percent of outstanding shares				5.00%	5.00%
Number of additional shares authorized	8,642,904	7,731,826
Number of shares available for grant (in shares)				17,248,535	17,248,535
Market Stock Units \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					100,000
Granted (in dollars per share) \| $ / shares					$ 25.16
Released (in dollars per share) \| $ / shares					$ 80
Award vesting period					4 years 6 months
Equity instruments outstanding (in shares)				100,000	100,000

EQUITY AWARD PLANS - RSU (Details) - RSUs - $ / shares	6 Months Ended
EQUITY AWARD PLANS - RSU (Details) - RSUs - $ / shares	Jan. 31, 2019	Jul. 31, 2018
Number of Shares
Outstanding, beginning balance (in shares)	23,597,499
Granted (in shares)	3,267,214
Released (in shares)	(4,011,266)
Canceled/forfeited (in shares)	(669,295)
Outstanding, ending balance (in shares)	22,184,152
Grant Date Fair Value per Share
Outstanding (in dollars per share)	$ 34.11	$ 31.20
Granted (in dollars per share)	43.76
Released (in dollars per share)	25.75
Canceled/forfeited (in dollars per share)	$ 28.83

EQUITY AWARD PLANS - ESPP (Details) - Employee Stock Purchase Plan	6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	24 days	22 days
Risk-free interest rate	2.50%	1.25%
Volatility	49.50%	50.20%
Dividend yield	0.00%	0.00%

EQUITY AWARD PLANS - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 72,565	$ 42,011	$ 138,490	$ 77,526
Cost of revenue, product
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	872	684		1,254	$ 1,570
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	3,373	2,133		4,205	6,530
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	23,462	15,942		29,708	46,068
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	34,679	17,023		32,565	65,688
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 10,179	$ 6,229		$ 9,794	$ 18,634

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Jan. 31, 2019	Jan. 31, 2018	Jan. 31, 2019	Jan. 31, 2018
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 2,210	$ 1,913	$ (1,418)	$ 4,172
Valuation allowance release			$ 5,900

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, 2019	Oct. 31, 2018	Jan. 31, 2018	Oct. 31, 2017	Jan. 31, 2019	Jan. 31, 2018
Earnings Per Share [Abstract]
Net loss	$ (122,763)	$ (94,265)	$ (62,631)	$ (61,487)	$ (217,028)	$ (124,118)
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted (in shares)	179,444,648		161,737,428		177,428,029	159,251,964
Net loss per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (0.68)		$ (0.39)		$ (1.22)	$ (0.78)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

NET LOSS PER SHARE - Antidilutive Securities (Details) - shares	6 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	34,393,946	39,501,835
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)	31,897,368	37,328,263
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)	1,526,701	2,031,761
Contingently issuable shares pursuant to business combinations
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	920,371	0
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)	15,326	107,631
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	34,180

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Jan. 31, 2019 USD ($)	Jan. 31, 2018 USD ($)	Jan. 31, 2019 USD ($) segment	Jan. 31, 2018 USD ($)	Jul. 31, 2018 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment			1
Total revenue	$ 335,360	$ 286,744	$ 648,643	$ 562,296
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	180,654	165,775	361,660	353,140
Long-lived assets	169,900		169,900		$ 130,000
Europe, the Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	69,630	51,729	124,406	89,173
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	71,772	59,293	139,010	104,152
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 13,304	$ 9,947	$ 23,567	$ 15,831

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2016
Related Party Transaction [Line Items]
Payables to related parties	$ 0	$ 0
Receivables from related parties	$ 0	$ 0
Nutanix, Inc. \| Lightspeed Venture Partners \| Lightspeed Venture Partners
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners	6.40%		36.70%
PernixData [Member] \| Lightspeed Venture Partners \| Lightspeed Venture Partners
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners			26.40%