0001618732-19-000114 | 10-K | XBRL Viewer

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COVER PAGE - USD ($) $ in Billions	12 Months Ended
COVER PAGE - USD ($) $ in Billions	Jul. 31, 2019	Aug. 31, 2019	Jan. 31, 2019
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jul. 31, 2019
Document Transition Report	false
Entity File Number	001-37883
Entity Registrant Name	NUTANIX, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0989767
Entity Address, Address Line One	1740 Technology Drive, Suite 150
Entity Address, City or Town	San Jose,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95110
City Area Code	(408)
Local Phone Number	216-8360
Title of 12(b) Security	Class A common stock, $0.000025 par value per share
Trading Symbol	NTNX
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 7.9
Entity Central Index Key	0001618732
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		170,416,856
Common Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		18,440,200

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018
Current assets:
Cash and cash equivalents	$ 396,678	$ 305,975
Short-term investments	512,156	628,328
Accounts receivable—net	245,475	258,289
Deferred commissions—current	46,238	33,691
Prepaid expenses and other current assets	74,665	36,818
Total current assets	1,275,212	1,263,101
Property and equipment, net	136,962	85,111
Deferred commissions—non-current	107,474	80,688
Intangible assets—net	66,773	45,366
Goodwill	185,180	87,759
Other assets—non-current	14,441	37,855
Total assets	1,786,042	1,599,880
Current liabilities:
Accounts payable	74,047	65,503
Accrued compensation and benefits	99,804	85,398
Accrued expenses and other current liabilities	28,797	31,682
Deferred revenue—current	396,667	275,648
Total current liabilities	599,315	458,231
Deferred revenue—non-current	513,377	355,559
Convertible senior notes, net	458,910	429,598
Other liabilities—non-current	27,547	29,713
Total liabilities	1,599,149	1,273,101
Commitments and contingencies (Note 7)
Stockholders’ (deficit) equity:
Preferred stock	0	0
Common stock	5	4
Additional paid-in capital	1,835,528	1,355,907
Accumulated other comprehensive (loss) income	669	(1,002)
Accumulated deficit	(1,649,309)	(1,028,130)
Total stockholders’ equity	186,893	326,779
Total liabilities and stockholders’ equity	$ 1,786,042	$ 1,599,880

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018
Accounts receivable, allowance	$ 379	$ 815
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)	188,595,314	172,858,082
Common stock, shares outstanding (in shares)	188,595,314	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)	168,155,308	135,109,672
Common stock, shares outstanding (in shares)	168,155,308	135,109,672
Common Class B
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	20,440,006	37,748,410
Common stock, shares outstanding (in shares)	20,440,006	37,748,410

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Revenue:
Total revenue	$ 299,876	$ 287,624	$ 335,360	$ 313,283	$ 303,748	$ 289,413	$ 286,744	$ 275,552	$ 1,236,143	$ 1,155,457	$ 845,903
Cost of revenue:
Total cost of revenue	68,963	75,077	85,982	74,106	73,265	95,615	108,528	108,622	304,128	386,030	327,331
Gross profit	230,913	212,547	249,378	239,177	230,483	193,798	178,216	166,930	932,015	769,427	518,572
Operating expenses:
Sales and marketing	253,843	245,703	213,707	196,497	183,191	169,860	151,201	145,405	909,750	649,657	501,021
Research and development	129,169	137,982	123,037	110,531	97,050	81,291	70,924	64,512	500,719	313,777	288,619
General and administrative	30,420	33,040	28,788	27,339	29,472	24,929	15,948	16,052	119,587	86,401	77,341
Total operating expenses	413,432	416,725	365,532	334,367	309,713	276,080	238,073	225,969	1,530,056	1,049,835	866,981
Loss from operations	(182,519)	(204,178)	(116,154)	(95,190)	(79,230)	(82,282)	(59,857)	(59,039)	(598,041)	(280,408)	(348,409)
Other expense, net	(4,705)	(3,212)	(4,399)	(2,703)	(4,021)	(4,235)	(861)	(189)	(15,019)	(9,306)	(26,377)
Loss before provision for income taxes	(187,224)	(207,390)	(120,553)	(97,893)	(83,251)	(86,517)	(60,718)	(59,228)	(613,060)	(289,714)	(374,786)
Provision for income taxes	7,114	2,423	2,210	(3,628)	4,118	(843)	1,913	2,259	8,119	7,447	4,852
Net loss	$ (194,338)	$ (209,813)	$ (122,763)	$ (94,265)	$ (87,369)	$ (85,674)	$ (62,631)	$ (61,487)	$ (621,179)	$ (297,161)	$ (379,638)
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (1.04)	$ (1.15)	$ (0.68)	$ (0.54)	$ (0.51)	$ (0.51)	$ (0.39)	$ (0.39)	$ (3.43)	$ (1.81)	$ (2.96)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders—basic and diluted (in shares)									181,030,964	164,091,302	128,295,563
Product
Revenue:
Total revenue	$ 186,347	$ 184,794	$ 236,932	$ 224,346	$ 224,650	$ 221,117	$ 223,170	$ 219,052	$ 832,419	$ 887,989	$ 673,297
Cost of revenue:
Total cost of revenue	28,323	29,528	45,966	39,261	41,068	66,680	83,217	85,162	143,078	276,127	249,393
Support, entitlements and other services
Revenue:
Total revenue	113,529	102,830	98,428	88,937	79,098	68,296	63,574	56,500	403,724	267,468	172,606
Cost of revenue:
Total cost of revenue	$ 40,640	$ 45,549	$ 40,016	$ 34,845	$ 32,197	$ 28,935	$ 25,311	$ 23,460	$ 161,050	$ 109,903	$ 77,938

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (621,179)	$ (297,161)	$ (379,638)
Other comprehensive (loss) income, net of tax:
Change in unrealized (loss) gain on available-for-sale securities, net of tax	1,671	(896)	(94)
Comprehensive loss	$ (619,508)	$ (298,057)	$ (379,732)

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Temporary equity, shares outstanding, beginning balance (in shares) at Jul. 31, 2016	76,319,511
Temporary equity, beginning balance at Jul. 31, 2016	$ 310,379
Increase (Decrease) in Convertible Preferred Stock
Temporary equity, conversion of convertible preferred stock to common stock upon IPO (in shares)	76,319,511
Temporary equity, conversion of convertible preferred stock to common stock upon IPO	$ 310,379
Temporary equity, shares outstanding, ending balance (in shares) at Jul. 31, 2017	0
Temporary equity, ending balance at Jul. 31, 2017	$ 0
Common stock, shares outstanding, beginning balance (in shares) at Jul. 31, 2016		46,083,651
Stockholders' (deficit) equity, beginning balance at Jul. 31, 2016	(285,827)	$ 1	$ 65,629	$ (12)	$ (351,445)
Increase (Decrease) in Stockholders' Deficit
Conversion of convertible preferred stock to common stock upon initial public (in shares)		76,319,511
Conversion of convertible preferred stock to common stock upon IPO	310,379	$ 2	310,377
Issuance of class A common stock upon IPO, net of issuance costs (in shares)		17,100,500
Issuance of class A common stock upon IPO, net of issuance costs	249,170	$ 1	249,169
Reclassification of convertible preferred stock warrant liability to APIC upon IPO	30,812		30,812
Issuance of common stock upon exercise of common stock warrants (in shares)		775,554
Issuance of common stock upon exercise of common stock warrants	77		77
Stock-based compensation	231,491		231,491
Issuance of common stock for stock awards, net of repurchases (in shares)		10,871,714
Issuance of common stock through employee equity incentive plans, net of repurchases	14,956		14,956
Issuance of common stock from ESPP purchase (in shares)		1,246,054
Issuance of common stock from ESPP purchase	16,946		16,946
Issuance of common stock for acquisitions (in shares)		2,239,536
Issuance of common stock in connection with business combinations	27,063		27,063
Vesting of early exercised stock options	1,614		1,614
Other comprehensive income	(94)			(94)
Net loss	(379,638)				(379,638)
Common stock, shares outstanding, ending balance (in shares) at Jul. 31, 2017		154,636,520
Stockholders' (deficit) equity, ending balance at Jul. 31, 2017	$ 217,063	$ 4	948,134	(106)	(730,969)
Temporary equity, shares outstanding, ending balance (in shares) at Jul. 31, 2018	0
Temporary equity, ending balance at Jul. 31, 2018	$ 0
Increase (Decrease) in Stockholders' Deficit
Reclassification of convertible preferred stock warrant liability to APIC upon IPO	87,975		87,975
Stock-based compensation	177,868		177,868
Issuance of common stock for stock awards, net of repurchases (in shares)		14,492,922
Issuance of common stock through employee equity incentive plans, net of repurchases	33,037		33,037
Issuance of common stock from ESPP purchase (in shares)		2,417,850
Issuance of common stock from ESPP purchase	39,009		39,009
Issuance of common stock for acquisitions (in shares)		1,310,790
Issuance of common stock in connection with business combinations	63,780		63,780
Vesting of early exercised stock options	681		681
Equity component of convertible senior notes, net	148,598		148,598
Purchase of bond hedges related to the convertible senior notes	(143,175)		(143,175)
Other comprehensive income	(896)			(896)
Net loss	$ (297,161)				(297,161)
Common stock, shares outstanding, ending balance (in shares) at Jul. 31, 2018	172,858,082	172,858,082
Stockholders' (deficit) equity, ending balance at Jul. 31, 2018	$ 326,779	$ 4	1,355,907	(1,002)	(1,028,130)
Temporary equity, shares outstanding, ending balance (in shares) at Jul. 31, 2019	0
Temporary equity, ending balance at Jul. 31, 2019	$ 0
Increase (Decrease) in Stockholders' Deficit
Stock-based compensation	306,729		306,729
Issuance of common stock for stock awards, net of repurchases (in shares)		11,272,083
Issuance of common stock through employee equity incentive plans, net of repurchases	12,187		12,187
Issuance of common stock from ESPP purchase (in shares)		2,008,082
Issuance of common stock from ESPP purchase	57,218	$ 1	57,217
Issuance of common stock for acquisitions (in shares)		2,457,067
Issuance of common stock in connection with business combinations	103,305		103,305
Vesting of early exercised stock options	183		183
Other comprehensive income	1,671			1,671
Net loss	$ (621,179)				(621,179)
Common stock, shares outstanding, ending balance (in shares) at Jul. 31, 2019	188,595,314	188,595,314
Stockholders' (deficit) equity, ending balance at Jul. 31, 2019	$ 186,893	$ 5	$ 1,835,528	$ 669	$ (1,649,309)

CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands

12 Months Ended

Jul. 31, 2019

USD ($)

Jul. 31, 2018

USD ($)

Jul. 31, 2017

USD ($)

Cash flows from operating activities:

Net loss

$ (621,179)

$ (297,161)

$ (379,638)

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

Depreciation and amortization

77,612

50,302

38,399

Stock-based compensation

306,729

177,868

231,491

Amortization of debt discount and issuance cost

29,313

14,685

Change in fair value of contingent consideration

(832)

(2,423)

1,924

Change in fair value of convertible preferred stock warrant liability

21,133

Loss on debt extinguishment

3,320

Other

(2,786)

(962)

764

Changes in operating assets and liabilities:

Accounts receivable, net

15,704

(79,273)

(67,382)

Deferred commissions

(39,333)

(40,852)

(24,006)

Prepaid expenses and other assets

(12,037)

^[1]

(37,374)

^[1]

(14,873)

^[1]

Accounts payable

13,508

(16,469)

21,280

Accrued compensation and benefits

14,406

27,877

32,687

Accrued expenses and other liabilities

(17,454)

34,295

5,116

Deferred revenue

278,517

262,027

144,564

Net cash provided by operating activities

42,168

^[1]

92,540

^[1]

14,779

^[1]

Cash flows from investing activities:

Purchases of investments

(468,144)

(716,417)

(242,525)

Maturities of investments

588,763

297,461

84,156

Sales of investments

32,640

Purchases of property and equipment

(118,452)

(62,372)

(50,181)

Payments for business combinations, net of cash acquired

(19,017)

(22,227)

(184)

Net cash used in investing activities

(16,850)

(503,555)

(176,094)

Cash flows from financing activities:

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

69,210

72,010

32,254

Payment of contingent consideration associated with a business acquisition

(1,040)

Payment of debt in conjunction with business combinations

(991)

(1,696)

(7,124)

Proceeds from issuance of convertible senior notes, net

(75)

563,587

Payments for convertible note hedges

(143,175)

Proceeds from issuance of warrants

87,975

Payments of offering costs

(85)

(1,717)

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

254,455

Repayment of senior notes

(75,000)

Debt extinguishment costs

(1,580)

Other

134

Net cash provided by financing activities

67,104

578,616

201,422

Net increase in cash, cash equivalents and restricted cash

92,422

^[1]

167,601

^[1]

40,107

^[1]

Cash, cash equivalents and restricted cash—beginning of period

307,098

^[1]

139,497

^[1]

99,390

^[1]

Cash, cash equivalents and restricted cash—end of period

399,520

^[1]

307,098

^[1]

139,497

^[1]

Restricted cash

2,842

^[1],[2]

1,123

^[1],[2]

1,138

^[1],[2]

Cash and cash equivalents—end of period

396,678

305,975

138,359

Supplemental disclosures of cash flow information:

Cash paid for income taxes

28,999

10,116

5,213

Cash paid for interest

1,271

Supplemental disclosures of non-cash investing and financing information:

Issuance of common stock for business combinations

103,305

63,780

27,063

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

8,074

13,444

5,591

Vesting of early exercised stock options

183

681

1,614

Offering costs included in accounts payable

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

310,379

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

$ 0

$ 30,812

[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 consolidated statements of cash flows.

[2]

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

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jul. 31, 2019

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

The accompanying 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"). All intercompany accounts and transactions have been eliminated in consolidation. 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.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include, but are not limited to, the best estimate of 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

Credit Risk—Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. We invest only in high-quality credit instruments and maintain our cash and cash equivalents and available-for-sale investments in fixed income securities. Management believes that the financial institutions that hold our investments are financially sound and, accordingly, are subject to minimal credit risk. Our deposits are with multiple institutions, however such deposits may exceed federally insured limits. We provide credit, in the normal course of business, to a number of companies and perform credit evaluations of our customers.

Concentration of Revenue and Accounts Receivable — We sell our products primarily through Partners and occasionally directly to end customers. For the fiscal years ended July 31, 2017, 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 July 31,
	Fiscal Year Ended July 31,						Accounts Receivable as of July 31,
Partners	2017		2018		2019		2018		2019
Partner A	⁽¹⁾		10	%	10	%	16	%	⁽¹⁾
Partner B	19	%	20	%	10	%	13	%	⁽¹⁾
Partner C	16	%	18	%	24	%	15	%	27	%
Partner D	10	%	⁽¹⁾		⁽¹⁾		⁽¹⁾		⁽¹⁾
Partner E	14	%	13	%	13	%	12	%	18	%


(1)	Less than 10%

Summary of Significant Accounting Policies

Cash, Cash Equivalents and Short-Term Investments

We classify all highly liquid investments with original maturities of three months or less from the date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as marketable securities.

We determine the appropriate classification of our marketable securities at the time of purchase and reevaluate such designation as of each balance sheet date. We classify and account for our marketable securities as available-for-sale securities. We classify our marketable securities with stated maturities greater than twelve months as short-term investments due to our intent and ability to use these securities to support our current operations.

Our marketable securities are recorded at their estimated fair value. Unrealized gains or losses on available-for-sale securities are reported in other comprehensive income (loss). We periodically review whether our securities may be other-than-temporarily impaired, including whether or not (i) we have the intent to sell the security or (ii) it is more likely than not that we will be required to sell the security before its anticipated recovery. If one of these factors is met, we will record an impairment loss associated with our impaired investment. The impairment loss will be recorded as a write-down of investments in the consolidated balance sheets and a realized loss within other expense in the consolidated statements of operations.

Fair Value Measurement

We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which to transact and the market-based risk. We apply fair value accounting for all assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The carrying amounts reported in the consolidated financial statements for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term nature. The fair value of the Notes is determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. Credit is extended to customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for doubtful accounts.

The allowance for doubtful accounts is based on the best estimate of the amount of probable credit losses in existing accounts receivable. We evaluate the collectability of our accounts receivable based on known collection risks and historical experience. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations (e.g., bankruptcy filings or substantial downgrading of credit ratings), we record an allowance for doubtful accounts in order to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we record an allowance for doubtful accounts based on the length of time the receivable is past due and our historical experience of collections and write-offs.

The changes in the allowance for doubtful accounts are as follows:



	Fiscal Year Ended July 31,
	2017		2018			2019
	(in thousands)
Allowance for doubtful accounts—beginning balance	$	132	$	132		$	815
Charged to allowance for doubtful accounts	—		815			437
Recoveries	—		—			(290		)
Write-offs	—		(132		)	(583		)
Allowance for doubtful accounts—ending balance	$	132	$	815		$	379

Property and Equipment

Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. We include the cost to acquire demonstration units and the related accumulated depreciation in property and equipment as such units are generally not available for sale. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the related assets.

Business Combinations

We account for our acquisitions using the acquisition method. Goodwill is measured at the acquisition date as the excess of the purchase price over the fair value of the assets acquired and liabilities assumed. Significant estimates and assumptions are made by management to value such assets and liabilities. Although we believe that those estimates and assumptions are reasonable and appropriate, they are inherently uncertain and subject to refinement. Additional information related to the acquisition date fair value of acquired assets and assumed liabilities obtained during the measurement period, not to exceed one year, may result in changes to the recorded values of such assets and liabilities, resulting in an offsetting adjustment to the goodwill associated with the business acquired.

Uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. We continue to collect information and reevaluate these estimates and assumptions quarterly. We will record any adjustments to our preliminary estimates to goodwill, provided that it is within the one-year measurement period. Any contingent consideration payable is recognized at fair value at the acquisition date. Liability-classified contingent consideration is remeasured each reporting period, with changes in fair value recognized in earnings until the contingent consideration is settled.

Acquisition related costs incurred in connection with a business combination, other than those associated with the issuance of debt or equity securities, are expensed as incurred.

Goodwill, Intangible Assets and Other Long-Lived Assets

Goodwill represents the future economic benefits arising from other assets acquired in a business combination or an acquisition that are not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill.

Intangible assets consist of identifiable intangible assets, including developed technology, customer relationships and trade names, resulting from business combinations. Finite-lived intangible assets are recorded at fair value, net of accumulated amortization. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense is included as a component of cost of product revenue and sales and marketing expense in the accompanying consolidated statements of operations. Amounts included in sales and marketing expense relate to customer relationships.

Goodwill and other intangible assets acquired in a business combination and determined to have an indefinite useful life, such as IPR&D, are not amortized, but instead tested for impairment at least annually, as of May 1 of each year. Such goodwill and other intangible assets may also be tested for impairment between annual tests in the presence of impairment indicators such as, but not limited to: (i) a significant adverse change in legal factors or in the business climate; (ii) a substantial decline in our market capitalization; (iii) an adverse action or assessment by a regulator; (iv) unanticipated competition; (v) loss of key personnel; (vi) a more likely-than-not expectation of the sale or disposal of a reporting unit or a significant portion thereof; (vii) a realignment of our resources or restructuring of our existing businesses in response to changes to industry and market conditions; (viii) testing for recoverability of a significant asset group within a reporting unit; or (ix) a higher discount rate used in the impairment analysis as impacted by an increase in interest rates.

Goodwill is tested for impairment by comparing the reporting unit's carrying value, including goodwill, to the fair value of the reporting unit. We operate under one reporting unit and for our annual goodwill impairment test, we determine the fair value of our reporting unit based on our enterprise value. We may elect to utilize a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying value. If, after assessing the qualitative factors, we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying value, an impairment analysis will be performed. We compare the fair value of our reporting unit with its carrying amount and if the carrying value of the reporting unit exceeds its fair value, an impairment loss will be recognized.

Long-lived assets, such as property and equipment and finite-lived intangible assets subject to depreciation and amortization, are evaluated for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Among the factors and circumstances we consider in determining recoverability are: (i) a significant decrease in the market price of a long-lived asset; (ii) a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; (iii) a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator; (iv) an accumulation of costs significantly in excess of the amount originally expected for the acquisition; and (v) current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset.

There have been no indicators of impairment of goodwill, intangible assets or other long-lived assets and we did not record any impairment losses during fiscal 2017, 2018 or 2019.

Revenue Recognition

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

•

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

•

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


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

•

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

•

Recognition of revenue when, or as, performance obligations are satisfied — We satisfy performance obligations either over time or at a point in time. Revenue is recognized at the time the related performance obligation is satisfied with the transfer of a promised good or service to a customer. For additional details on revenue recognition, refer to Note 3 of Notes to Consolidated Financial Statements.

Contracts with multiple performance obligations — Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative SSP basis. For deliverables that we routinely sell separately, such as 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 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 2019 is presented in the accompanying consolidated balance sheets.

Costs to obtain and fulfill a contract — We capitalize commissions paid to sales personnel and the related payroll taxes when customer contracts are signed. These costs are recorded as deferred commissions in the 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. 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 if the commissions expected to be paid upon renewal are not commensurate with that of the original 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 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 consolidated balance sheet date.

Cost of Revenue

Cost of revenue consists of cost of product revenue and cost of support, entitlements and other services revenue. Personnel costs associated with our operations and global customer support organizations consist of salaries, benefits and stock-based compensation. Allocated costs consist of certain facilities, depreciation and amortization, recruiting and information technology costs allocated based on headcount.

Warranties

We generally provide a one-year warranty on hardware and a 90-day warranty on software licenses. The hardware warranty provides for parts replacement for defective components and the software warranty provides for bug fixes. With respect to the hardware warranty obligation, we have a warranty agreement with our contract manufacturers under which the contract manufacturers are generally required to replace defective hardware within three years of shipment. Furthermore, our post-contract customer support ("PCS") agreements provide for the same parts replacement that customers are entitled to under the warranty program, except that replacement parts are delivered according to targeted response times to minimize disruption to the customers’ critical business applications. Substantially all customers purchase PCS agreements.

Given the warranty agreement with our contract manufacturers and considering that substantially all products are sold together with PCS agreements, we generally have very limited exposure related to warranty costs and therefore no warranty reserve has been recognized.

Research and Development

Our research and development expense consists primarily of product development personnel costs, including salaries and benefits, stock-based compensation and allocated facilities costs. Research and development costs are expensed as incurred.

Stock-Based Compensation

Stock-based compensation expense is measured based on the grant date fair value of share-based awards. The fair value of the purchase rights under our 2016 Employee Stock Purchase Plan ("2016 ESPP") is estimated using the Black-Scholes-Merton ("Black-Scholes") option pricing model, which is impacted by the fair value of our common stock, as well as changes in assumptions regarding a number of subjective variables. These variables include the expected common stock price volatility over the term of the awards, the expected term of the awards, risk-free interest rates and expected dividend yield. The fair value of restricted stock units ("RSUs") is determined using the fair value of our common stock on the date of grant.

We grant stock awards with service conditions only and with both service and performance conditions. We recognize stock-based compensation expense for employee stock awards with a service condition only using the straight-line method over the requisite service period of the awards, which is generally the vesting period. We use the accelerated attribution method to recognize stock-based compensation expense related to employee stock awards that contain both service and performance conditions. The fair value of the 2016 ESPP purchase rights is recognized as expense on a straight-line basis over the offering period. We account for forfeitures of all share-based awards when they occur.

Foreign Currency

The functional currency of our foreign subsidiaries is the U.S. dollar. Transactions denominated in currencies other than the functional currency are remeasured at the average exchange rate in effect during the reporting period. At the end of each reporting period all monetary assets and liabilities of our subsidiaries are remeasured at the current U.S. dollar exchange rate at the end of the reporting period. Remeasurement gains and losses are included within other expense, net in the accompanying consolidated statements of operations. During the fiscal years ended July 31, 2017, 2018 and 2019, we recognized foreign currency losses of $2.6 million, $3.6 million and $2.5 million, respectively. To date, we have not undertaken any hedging transactions related to foreign currency exposure.

Segments

Our chief operating decision maker is a group which is comprised of our Chief Executive Officer and Chief Financial Officer. This group allocates resources and assesses financial performance based upon discrete financial information at the consolidated level. Accordingly, we have determined that we operate as a single operating and reportable segment.

Income Taxes

We account for income taxes using the asset and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance on amounts that are more likely than not to be realized.

We record a liability for uncertain tax positions if it is not more likely than not to be sustained based solely on its technical merits as of the reporting date. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and may not accurately anticipate actual outcomes.

Advertising Costs

Advertising costs are charged to sales and marketing expenses as incurred in the consolidated statements of operations. During the fiscal years ended July 31, 2017, 2018 and 2019, advertising expense was $13.0 million, $14.6 million and $26.7 million, respectively.

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 consolidated financial statements.

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 consolidated statements of cash flows were not material for any period presented.

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. Our adoption of this guidance has not had a material impact on our consolidated financial statements.

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 consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other (Topic 350): Internal-Use Software, which 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, 2019, 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 our 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 our Quarterly Reports on Form 10-Q.

Recently Issued and Not Yet Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases ("ASC 842"), which requires lessees to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets, and to recognize on the statement of operations the expenses in a manner similar to current practice. The new standard, including related amendments subsequently issued by the FASB, is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including interim reporting periods within those fiscal years. We intend to elect the package of transition expedients and the transition option that allows us not to restate the comparative periods in our consolidated financial statements in the year of adoption. In addition, we intend to elect to account for lease and non-lease components as a single lease component. We also intend to make an accounting policy election not to record leases that, at the lease commencement date, have a lease term of 12 months or less on the balance sheet.

We have substantially completed our review of existing vendor arrangements for embedded leases and we expect that all of our operating leases, except those with a lease term of 12 months or less, disclosed in Note 7 will be subject to the new standard. The present value of these operating lease commitments will be recognized as right-of-use assets and lease liabilities at the later to occur of (i) the adoption date of August 1, 2019 or (ii) the time we take possession of the leased asset, which will have a material impact on our consolidated balance sheets. We have made significant progress in validating the accuracy of the new ASC 842 reports generated from our existing lease accounting system and are in the process of finalizing our accounting policy and disclosures. We expect the adoption of this standard to result in the recognition of right-of-use assets between $115 million and $125 million and lease liabilities between $140 million and $150 million. As of the adoption date, we have additional operating lease commitments of approximately $32 million on an undiscounted basis for certain office leases that have not yet commenced. We do not anticipate that the adoption of this standard will have a material impact on our consolidated statements of operations or our consolidated statements of cash flows, as the expense recognition under this new standard will be similar to current practice.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. 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. ASU 2016-13 is effective for us in the first quarter of fiscal 2021. We do not expect the adoption of this new standard to have a material impact on our consolidated financial statements and related disclosures.

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. ASU 2018-02 is effective for us in

the first quarter of fiscal 2020. The implementation of this new standard will not have a material impact on our consolidated financial statements and related disclosures.

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. ASU 2018-13 is effective for us in the first quarter of fiscal 2021. We do not expect the adoption of this new standard to have a material impact on our quarterly or annual disclosures.

BUSINESS COMBINATIONS

12 Months Ended

Jul. 31, 2019

Business Combinations [Abstract]

BUSINESS COMBINATIONS

We completed two acquisitions in fiscal 2018 and one acquisition in fiscal 2019. The purchase price allocation for these acquisitions, discussed in detail below, 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 consolidated financial statements for the fiscal years ended July 31, 2018 and 2019 include the operations of the acquired companies from the dates the deals closed. Pro forma results of operations have not been presented because they are not material to our consolidated financial statements, either individually or in the aggregate. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The goodwill recognized in these acquisitions 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 acquisitions. Goodwill will not be amortized, but will instead be tested for impairment annually, or more frequently if certain indicators of impairment are present.

Fiscal 2018 Acquisitions

Minjar Acquisition

On March 16, 2018, we completed the acquisition of Minjar, Inc. ("Minjar"), a privately held Delaware corporation with its offices in Bangalore, India ("Minjar Acquisition"). Minjar was a cloud technology solutions company, and the acquisition was expected to complement and enhance our products, allowing us to offer customers new capabilities to better manage their multi-cloud deployments. At the close of the acquisition, all outstanding shares of Minjar capital stock and all in-the-money options and warrants to purchase Minjar capital stock were purchased or canceled in exchange for an aggregate purchase price of approximately $19.3 million, consisting of $18.8 million in cash and approximately $0.5 million of holdback liability. The holdback liability represents deferred payments to Minjar's former key employees to be released in installments during the two years following the date of acquisition. As the release of these deferred payments was not contingent upon the future and continued service, the $0.5 million holdback liability, which approximated fair value, was considered as part of the purchase price.

Certain portions of the consideration for the acquisition had been placed in escrow to secure the indemnification obligations of certain Minjar security holders. In addition to the $19.3 million purchase price, we also entered into employee holdback or deferred payment arrangements with former employees of Minjar who joined us after the acquisition, totaling approximately $4.4 million. As payment of these deferred payments is contingent upon the continuous service of the employees, they are being accounted for as compensation over the required service period of two years.

The purchase price allocation primarily included $18.0 million of goodwill, $7.0 million of intangible assets, which primarily consisted of $5.6 million related to developed technology and $1.4 million related to customer relationships, both of which are being amortized over an estimated economic life of five years, and $5.7 million of deferred income tax and other tax liabilities. Goodwill was not deductible for income tax purposes.

We recognized approximately $0.8 million of acquisition-related costs, which were expensed as incurred, as general and administrative expenses in the consolidated statement of operations.

Netsil Acquisition

On March 22, 2018, we completed the acquisition of Netsil Inc. ("Netsil"), a privately held Delaware corporation headquartered in San Francisco, California ("Netsil Acquisition"). This acquisition represented an opportunity for us to accelerate our ability to deliver native multi-cloud operations with the addition of application discovery and operations management. The aggregate purchase price of approximately $67.5 million consisted of approximately $3.7 million in cash and 1,206,364 unregistered shares of our Class A common stock with an aggregate fair value of approximately $63.8 million. The fair value of the shares of common stock issued was determined to be $52.87 per share, the closing price of our stock on March 22, 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 Netsil security holders.

We also entered into employee holdback or deferred payment arrangements with the founders of Netsil who joined us after the acquisition, whereby we issued 104,426 unregistered shares of our Class A common stock to the founders subject to their continuous employment with us for two years. The fair value of the Class A common stock issued pursuant to the holdback arrangements was approximately $5.5 million, or $52.87 per share, the closing price of our Class A common stock on March 22, 2018. This holdback is being accounted for as stock-based compensation over the required 2-year service period.

The purchase price allocation primarily included $53.1 million of goodwill, $19.0 million of intangible assets, primarily related to developed technology, which is being amortized over an estimated economic life of seven years, $2.6 million of deferred income tax liabilities and $1.4 million of assumed debt. Goodwill was not deductible for income tax purposes.

We recognized approximately $0.6 million of acquisition-related costs, which were expensed as incurred, as general and administrative expenses in the consolidated statement of operations.

Fiscal 2019 Acquisition

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 purchase price of approximately $130.0 million consisted of approximately $26.7 million in cash and 1,813,321 shares of our Class A common stock, with an aggregate fair value of approximately $103.3 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 the earning of 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.

The purchase price allocation primarily includes approximately $97.3 million of goodwill and $38.2 million of intangible assets, including $31.8 million related to developed technology and $2.2 million related to customer relationships, which are being amortized over an estimated economic life of five years, and $4.2 million related to trade name, which is being amortized over an estimated economic life of four years. Goodwill was not deductible for income tax purposes.

Acquisition-related costs were expensed as incurred as general and administrative expenses on our consolidated statement of operations. We recognized approximately $1.1 million of acquisition-related costs in connection with the Frame Acquisition, of which approximately $0.4 million was recognized during the fiscal year ended July 31, 2019.

The following table presents the aggregate purchase price allocation related to the acquisitions completed during fiscal 2018 and fiscal 2019:



	As of July 31,
	2018			2019
	(in thousands)
Goodwill	$	71,087		$	97,328
Amortizable intangible assets	25,920			38,180
Tangible assets acquired	842			10,811
Liabilities assumed	(11,041		)	(16,293		)
Total consideration	$	86,808		$	130,026

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

12 Months Ended

Jul. 31, 2019

Revenue from Contract with Customer [Abstract]

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

Disaggregation of Revenue 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 can be delivered separately or on a configured-to-order appliance. When the software is not portable to other appliances, it generally has a term equal to the life of the associated appliance, while subscription term-based licenses typically have 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 OEMs or directly from Nutanix. Our enterprise cloud 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:



	Fiscal Year Ended July 31,
	2017		2018		2019
	(in thousands)
Subscription	$	172,530	$	330,645	$	648,415
Non-portable software	421,048		543,952		449,131
Hardware	236,316		257,314		105,321
Professional services	16,009		23,546		33,276
Total revenue	$	845,903	$	1,155,457	$	1,236,143

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 includes any performance obligation which has a defined term, and is generated from the sales of software entitlement and support subscriptions, subscription software licenses and cloud-based software as a service ("SaaS") offerings.

•

Ratable — We recognize revenue from software entitlement and support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software entitlement and support subscriptions. These offerings represented approximately $156.6 million, $243.9 million and $376.4 million of our subscription revenue for fiscal 2017, 2018 and 2019, respectively.

•

Upfront — Revenue from our subscription software licenses is generally recognized upfront upon transfer of control to the customer, which happens when we make the software available to the customer. These subscription software licenses represented approximately $15.9 million, $86.7 million and $272.0 million of our subscription revenue for fiscal 2017, 2018 and 2019, respectively. For fiscal 2017, 2018 and 2019, the weighted average term for these subscription term-based licenses was approximately 2.9 years, 3.7 years and 3.8 years, respectively.

Non-portable software — Non-portable software revenue includes sales of our enterprise cloud platform 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 on which the software is delivered. 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.

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, 2017	$	369,056		$	73,527
Additions	529,495			150,122
Revenue/commissions recognized	(267,468		)	(109,270		)
Assumed in a business combination	124			—
Balance as of July 31, 2018	631,207			114,379
Additions	682,241			158,062
Revenue/commissions recognized	(403,724		)	(118,729		)
Assumed in a business combination	320			—
Balance as of July 31, 2019	$	910,044		$	153,712

During the fiscal year ended July 31, 2018, we recognized revenue of approximately $170.1 million pertaining to amounts deferred as of July 31, 2017. During the fiscal year ended July 31, 2019, we recognized revenue of approximately $275.0 million pertaining to amounts deferred as of July 31, 2018.

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 $941.4 million as of July 31, 2019, of which we expect to recognize approximately 44% over the next 12 months, and the remainder thereafter.

FAIR VALUE MEASUREMENTS

12 Months Ended

Jul. 31, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value as follows:


•	Level I — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;


•	Level II — Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and


•	Level III — Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Cash equivalents and short-term investments

Our money market funds are classified within Level I due to the highly liquid nature of these assets and have unadjusted inputs, quoted prices in active markets for these assets at the measurement date from the financial institution that carries these investment securities. Our investments in available-for-sale debt securities such as commercial paper, corporate bonds and U.S. government securities are classified within Level II. The fair value of these securities is priced by using inputs based on non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash flow techniques.

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 July 31, 2019
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	33,156	$	—	$	—	$	33,156
Commercial paper	—		103,029		—		103,029
U.S. government securities	—		119,933		—		119,933
Corporate bonds	—		9,996		—		9,996
Short-term investments:
Corporate bonds	—		354,549		—		354,549
Commercial paper	—		92,851		—		92,851
U.S. government securities	—		64,756		—		64,756
Total measured at fair value	$	33,156	$	745,114	$	—	$	778,270
Cash							130,564
Total cash, cash equivalents and short-term investments							$	908,834

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 July 31, 2019
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(in thousands)
Convertible senior notes, net	$	429,598	$	685,527	$	458,910	$	527,275

The carrying value of the Notes as of July 31, 2018 and 2019 was net of the unamortized debt discount of $137.7 million and $110.0 million, respectively, and unamortized debt issuance costs of $7.7 million and $6.1 million, respectively.

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:



	Fiscal Year Ended July 31,
	2018			2019
	(in thousands)
Contingent consideration—beginning balance	$	4,295		$	1,872
Change in fair value ⁽¹⁾	(2,423		)	(832		)
Payment	—			(1,040		)
Contingent consideration—ending balance	$	1,872		$	—


(1)	Recognized in the consolidated statements of operations within general and administrative expenses.

We remeasured the fair value of our Level 3 contingent consideration liability using a Monte Carlo simulation on projected future payments. The fair value was determined by calculating the net present value of the expected payments using significant inputs that were not observable in the market, including the probability of achieving the milestone, estimated bookings and discount rates. The change in fair value of the contingent consideration was due to the movement of the inputs. During the quarter ended April 30, 2019, the contingent consideration was paid out in full.

- 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

12 Months Ended

Jul. 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 2019, unrealized gains and losses from our short-term investments were not material. As of July 31, 2018 and 2019, unrealized losses from securities that were in an unrealized loss position for more than 12 months were not material. Unrealized losses related to 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 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 July 31, 2019
	(in thousands)
Due within one year	$	408,459
Due in one to two years	103,697
Total	$	512,156

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consists of the following:



	As of July 31,
	2018		2019
	(in thousands)
Prepaid operating expenses	$	23,169	$	37,864
Prepaid income taxes	1,629		19,690
VAT receivables	2,281		5,068
Other current assets	9,739		12,043
Total prepaid expenses and other current assets	$	36,818	$	74,665

The increase in prepaid expenses and other current assets from July 31, 2018 to July 31, 2019 was due primarily to the reclassification of an $18.0 million corporate income tax receivable from other assets—non-current to prepaid expenses and other current assets, as the refund was expected to be received within the next 12 months, as well as an increase in prepayments for sales and marketing events and higher expenses related to subscription contract renewals. The $18.0 million corporate income tax receivable was received in August 2019.

Property and Equipment, Net

Property and equipment, net consists of the following:



	Estimated Useful Life	As of July 31,
	Estimated Useful Life	2018			2019
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	131,805		$	200,762
Demonstration units	12	53,547			59,981
Leasehold improvements	⁽¹⁾	19,916			46,520
Furniture and fixtures	60	7,636			12,868
Total property and equipment, gross		212,904			320,131
Less: accumulated depreciation		(127,793		)	(183,169		)
Total property and equipment, net		$	85,111		$	136,962


(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 $36.2 million, $43.7 million and $60.8 million for the fiscal years ended July 31, 2017, 2018 and 2019, respectively.

Intangible Assets, Net

Intangible assets, net consists of the following:



	As of July 31,
	2018			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		)	(21,210		)
Accumulated amortization of customer relationships	(1,828		)	(3,392		)
Accumulated amortization of trade name	—			(955		)
Total accumulated amortization	(8,784		)	(25,557		)
Total intangible assets, net	$	45,366		$	66,773

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

The changes in the net book value of intangible assets, net are as follows:



	As of July 31,
	2018			2019
	(in thousands)
Intangible assets, net—beginning balance	$	26,001		$	45,366
Acquired intangible assets	25,920			38,180
Amortization of intangible assets ⁽¹⁾	(6,555		)	(16,773		)
Intangible assets, net—ending balance	$	45,366		$	66,773


(1)	Represents amortization expense related to intangible assets recognized during the year in the consolidated statements of operations, within product cost of revenue and sales and marketing expense.

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



Fiscal Year Ending July 31:	Amount
	(in thousands)
2020	$	17,380
2021	17,380
2022	16,183
2023	10,856
2024	3,210
Thereafter	1,764
Total	$	66,773

Goodwill

The changes in the carrying amount of goodwill are as follows:



	Carrying Amount
	(in thousands)
Balance at July 31, 2017	$	16,672
Acquired in Netsil Acquisition	53,085
Acquired in Minjar Acquisition	18,002
Balance at July 31, 2018	87,759
Acquired in Frame Acquisition	97,328
Other	93
Balance at July 31, 2019	$	185,180

Other Assets—Non-Current

Other assets—non-current consists of the following:



	As of July 31,
	2018		2019
	(in thousands)
Other tax assets—non-current	$	30,927	$	—
Deferred tax assets—non-current	2,860		4,607
Other	4,068		9,834
Total other assets—non-current	$	37,855	$	14,441

The decrease in other tax assets—non-current from July 31, 2018 to July 31, 2019 was due primarily to the reclassification of an $18.0 million corporate income tax receivable to prepaid expenses and other current assets, as the refund was expected to be received within the next 12 months, as well as the reversal of an uncertain tax position resulting from a change in tax election during the third quarter of fiscal 2019.

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:



	As of July 31,
	2018		2019
	(in thousands)
Accrued commissions	$	21,660	$	31,703
Contributions to ESPP withheld	21,931		20,778
Accrued vacation	10,548		15,475
Accrued bonus	12,129		11,413
Payroll taxes payable	9,563		8,504
Other	9,567		11,931
Total accrued compensation and benefits	$	85,398	$	99,804

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:



	As of July 31,
	2018		2019
	(in thousands)
Income taxes payable	$	20,863	$	9,651
Accrued professional services	5,838		2,996
Other	4,981		16,150
Total accrued expenses and other current liabilities	$	31,682	$	28,797

The decrease in income taxes payable during the fiscal year ended July 31, 2019 was due primarily to an $18.0 million estimated corporate income tax payment made during the second quarter of fiscal 2019, partially offset by additional foreign corporate income tax accruals recorded during fiscal 2019.

DEBT

12 Months Ended

Jul. 31, 2019

Debt Disclosure [Abstract]

DEBT

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 Rule 144A 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 $22.70 on July 31, 2019, the if-converted value of the Notes was lower than the principal amount. 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 July 31, 2019, the Notes are not convertible for the fiscal quarter commencing after July 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 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 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 July 31,
	2018			2019
	(in thousands)
Principal amounts:
Principal	$	575,000		$	575,000
Unamortized debt discount ⁽¹⁾	(137,719		)	(109,956		)
Unamortized debt issuance costs ⁽¹⁾	(7,683		)	(6,134		)
Net carrying amount	$	429,598		$	458,910
Carrying amount of equity component ⁽²⁾	$	148,598		$	148,598


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

As of July 31, 2019, the remaining life of the Notes was approximately 41 months.

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



	Fiscal Year Ended July 31,
	2018		2019
	(in thousands)
Interest expense related to amortization of debt discount	$	13,909	$	27,764
Interest expense related to amortization of debt issuance costs	776		1,549
Total interest expense	$	14,685	$	29,313

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 consolidated balance sheets as of July 31, 2018 and 2019. The fair value of the note hedges and warrants are not remeasured each reporting period. The amounts paid for the note hedges were tax deductible expenses, while the proceeds received from the warrants were 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

12 Months Ended

Jul. 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 July 31, 2019 are as follows:



Fiscal Year Ending July 31:	Amount
	(in thousands)
2020	$	39,540
2021	41,909
2022	41,332
2023	40,695
2024	30,240
Thereafter	3,511
Total	$	197,227

Rent expense incurred under operating leases was $12.7 million, $19.0 million and $37.0 million for the fiscal years ended July 31, 2017, 2018 and 2019, respectively.

Purchase Commitments

In the normal course of business, we make commitments with our contract manufacturers and OEMs to ensure them a minimum level of financial consideration for their investment in our joint solutions. These commitments are based on revenue targets or on-hand inventory and non-cancelable purchase orders for non-standard components. We record a charge related to these items when we determine that it is probable a loss will be incurred and we are able to estimate the amount of the loss. Our historical charges have not been material. As of July 31, 2019, we had up to approximately $64.8 million of non-cancelable purchase obligations and other commitments pertaining to our normal operations, and up to approximately $144.9 million in the form of guarantees to certain of our contract manufacturers and OEMs.

Guarantees and Indemnifications

We have entered into agreements with some of our Partners and customers that contain indemnification provisions in the event of claims alleging that our products infringe the intellectual property rights of a third party. The scope of such indemnification varies, and may include, in certain cases, the ability to cure the indemnification by modifying or replacing the product at our own expense, requiring the return and refund of the infringing product, procuring the right for the partner and/or customer to continue to use or distribute the product, as applicable, and/or defending the partner or customer against and paying any damages from third-party actions based upon claims of infringement. Other guarantees or indemnification arrangements include guarantees of product and service performance.

We have also agreed to indemnify our directors, executive officers and certain other officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as a director or officer of our company or that person’s services provided to any other company or enterprise at our request. We maintain director and officer insurance coverage that may enable us to recover a portion of any future amounts paid.

The fair value of liabilities related to indemnifications and guarantee provisions are not material and have not had any material impact on the consolidated financial statements to date.

Legal Proceedings

Beginning on March 29, 2019, several purported securities class actions were filed in the United States District Court for the Northern District of California against us and two of our officers. The initial complaints generally alleged that the defendants made false and misleading statements in violation of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5. In July 2019, the court consolidated the actions into a single action, and appointed a lead plaintiff who, per the court-approved schedule, filed a consolidated amended complaint on September 9, 2019. The action is brought on behalf of those who purchased or otherwise acquired our stock between November 30, 2017 and May 30, 2019, inclusive. The consolidated amended complaint seeks monetary damages in an unspecified amount. This case is in the very early stages and we are not able to determine what, if any, liabilities will attach to these complaints.

Beginning on July 1, 2019, several shareholder derivative complaints were filed in each of the U.S. District Court for the Northern District of California, the Superior Court of California for the County of San Mateo, and the Superior Court of California for the County of Santa Clara, naming (i) fourteen of Nutanix’s current and former officer and directors as defendants and (ii) the Company as a nominal defendant. The complaints generally allege claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment, all based on the same general underlying allegations that are contained in the securities class actions described above. The Superior Court complaints additionally allege insider trading and violation of California Corporations Code Section 25402 and the Santa Clara County Superior Court complaints further include additional claims for "abuse of control" and "gross mismanagement." The defendants have not responded to any of the derivative actions to date. These cases are in the very early stages and we are not able to determine what, if any, liabilities will attach to these complaints.

We are not currently a party to any other legal proceedings that we believe to be material to our business or financial condition. From time to time, we may become party to various litigation matters and subject to claims that arise in the ordinary course of business.

STOCKHOLDERS’ EQUITY

12 Months Ended

Jul. 31, 2019

Equity [Abstract]

STOCKHOLDERS’ EQUITY

We have two classes of authorized common stock, Class A common stock and Class B common stock. As of July 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 July 31, 2019, we had 168,155,308 shares of Class A common stock issued and outstanding and 20,440,006 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.

Common Stock Reserved for Issuance

As of July 31, 2019, we had reserved shares of common stock for future issuance as follows:



	As of July 31, 2019
Shares reserved for future equity grants	12,594,167
Shares underlying outstanding stock options	8,740,309
Shares underlying outstanding restricted stock units	22,136,072
Shares reserved for future employee stock purchase plan awards	1,402,959
Shares underlying outstanding common stock warrants	34,180
Total	44,907,687

EQUITY AWARD PLANS

12 Months Ended

Jul. 31, 2019

Share-based Payment Arrangement [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 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 July 31, 2019, we had reserved a total of 43,504,728 shares for the issuance of equity awards under the Stock Plans, of which 12,594,167 shares were still available for grant. On August 1, 2019, the number of shares of Class A common stock available for issuance under the 2016 Plan increased by 9,429,765 shares pursuant to the automatic increase provisions.

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 July 31, 2019, 100,000 MSUs remained outstanding.

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



	Fiscal Year Ended July 31,
	2018				2019
	Number of Shares		Grant Date Fair Value per Share		Number of Shares		Grant Date Fair Value per Share
Outstanding at beginning of period	17,376,090		$	18.85	23,597,499		$	31.20
Granted	14,947,403		$	39.44	11,204,016		$	42.23
Released	(5,823,800	)	$	19.96	(8,716,764	)	$	30.15
Forfeited	(2,902,194	)	$	22.34	(3,948,679	)	$	33.86
Outstanding at end of period	23,597,499		$	31.20	22,136,072		$	36.72

Stock Options

The Board determines the period over which stock options become exercisable and stock options generally vest over a four-year period. Stock options generally expire 10 years from the date of grant. The term of an ISO grant to a 10% stockholder will not exceed five years from the date of the grant. The exercise price of an ISO will not be less than 100% of the estimated fair value of the shares of common stock underlying the stock option (or 110% of the estimated fair value in the case of an ISO granted to a 10% stockholder) on the date of grant. The exercise price of an NSO is determined by the Board at the time of grant and is generally not less than 100% of the estimated fair value of the shares of common stock underlying the stock option on the date of grant.

Below is a summary of stock option activity under the Stock Plans:



	Fiscal Year Ended July 31,
	2018							2019
	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value		Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
					(in years)	(in thousands)						(in years)	(in thousands)
Outstanding at beginning of period	20,334,531		$	4.59	6.4	$	338,787	11,332,554		$	5.12	5.6	$	496,022
Options granted	—		$	—				—		$	—
Options exercised	(8,672,623	)	$	3.81				(2,554,706	)	$	4.77
Options canceled/forfeited	(329,354	)	$	6.63				(37,539	)	$	10.09
Outstanding at end of period	11,332,554		$	5.12	5.6	$	496,022	8,740,309		$	5.20	4.6	$	153,000
Exercisable at end of period	11,159,045		$	5.01	5.5	$	489,682	8,720,993		$	5.18	4.6	$	152,837
Vested and expected to vest at end of period	11,332,554		$	5.12	5.6	$	496,022	8,740,309		$	5.20	4.6	$	153,000

Stock options exercisable as of July 31, 2018 includes 9,660,757 vested options and 1,498,288 unvested options with an early exercise provision. Stock options exercisable as of July 31, 2019 includes 8,048,364 vested options and 672,629 unvested options with an early exercise provision. The weighted average grant date fair value per share for stock options granted during the fiscal year ended July 31, 2017 was $6.41. There were no options granted during fiscal 2018 or 2019.

The aggregate intrinsic value of stock options exercised during the fiscal years ended July 31, 2017, 2018 and 2019 was $73.9 million, $289.4 million and $90.3 million, respectively. Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of our common stock. Cash received from option exercises was $15.6 million, $33.1 million and $12.2 million for the fiscal years ended July 31, 2017, 2018 and 2019, respectively.

The total grant date fair value of stock options vested was $16.1 million, $11.5 million and $4.4 million for the fiscal years ended July 31, 2017, 2018 and 2019, respectively. The number of shares vested and expected to vest included in the table above excludes 47,691 shares of early exercised stock options as of July 31, 2018.

Employee Stock Purchase Plan

In December 2015, the Board adopted the 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. On August 1, 2019, the number of shares of Class A common stock available for issuance under the 2016 ESPP increased by 1,885,953 shares pursuant to the automatic increase 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. The first offering period began in September 2016.

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 fiscal year ended July 31, 2019, 2,008,082 shares of common stock were purchased under the 2016 ESPP for an aggregate amount of $57.2 million. As of July 31, 2019, 1,402,959 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:



	Fiscal Year Ended July 31,
	2017		2018		2019
Expected term (in years)	0.75		0.75		0.84
Risk-free interest rate	0.6	%	1.4	%	2.5	%
Volatility	51.0	%	49.8	%	69.0	%
Dividend yield	—	%	—	%	—	%

Stock-Based Compensation

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



	Fiscal Year Ended July 31,
	2017		2018		2019
	(in thousands)
Cost of revenue:
Product	$	3,066	$	2,580	$	3,535
Support, entitlements and other services	10,411		8,945		15,326
Sales and marketing	78,117		65,060		107,751
Research and development	109,044		74,389		140,519
General and administrative	30,853		26,894		39,598
Total stock-based compensation expense	$	231,491	$	177,868	$	306,729

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

As of July 31, 2019, unrecognized stock-based compensation expense related to outstanding stock awards was approximately $744.9 million and is expected to be recognized over a weighted average period of approximately 2.5 years.

Determination of Fair Value

The fair value of options granted to employees is estimated on the grant date using the Black-Scholes option pricing model.

The valuation model for stock-based compensation expense requires us to make assumptions and judgments about the variables used in the calculation, including the expected term, expected volatility of our common stock, risk-free interest rate and expected dividend yield.

The fair value of our stock options was estimated using the following weighted average assumptions:



	Fiscal Year Ended July 31, 2017
Fair value of common stock	$	12.14
Expected term (in years)	6.1
Risk-free interest rate	1.3		%
Volatility	52		%
Dividend yield	—		%

We did not grant any stock options during fiscal 2018 or 2019. The fair value of each grant of stock options was determined using the Black-Scholes option pricing model and the assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment to determine.

Fair Value of Common Stock — Prior to our IPO, the fair value of the common stock underlying our stock options was determined by our Board. The Board, with input from management, exercised significant judgment and considered numerous objective and subjective factors to determine the fair value of our common stock at each grant date. Subsequent to our IPO, we use the market closing price for our Class A common stock as reported on the NASDAQ Stock Market on the date of grant.

Expected Term — The expected term represents the period that the stock-based awards are expected to be outstanding. For option grants that are considered to be "plain vanilla," we determine the expected term using the simplified method as provided by the Securities and Exchange Commission. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options.

Risk-Free Interest Rate — The risk-free interest rate is based on U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term.

Expected Volatility — Since we do not have a long trading history of our common stock, the expected volatility was derived from the average historical stock volatilities of several unrelated public companies within the industry that we consider to be comparable to our business over a period equivalent to the expected term of the stock option grants.

Dividend Rate — The expected dividend was assumed to be zero, as we have never paid dividends and have no current plans to do so.

NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

12 Months Ended

Jul. 31, 2019

Earnings Per Share [Abstract]

NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

NET LOSS PER SHARE

Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Our Convertible Preferred Stock is considered a participating security. Participating securities do not have a contractual obligation to share in our losses. As such, for the periods we incur net losses, there is no impact on the calculated net loss per share attributable to common stockholders in applying the two-class method.

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:



	Fiscal Year Ended July 31,
	2017			2018			2019
	(in thousands, except share and per share data)
Numerator:
Net loss	$	(379,638	)	$	(297,161	)	$	(621,179	)
Denominator:
Weighted average shares—basic and diluted	128,295,563			164,091,302			181,030,964
Net loss per share attributable to common stockholders—basic and diluted	$	(2.96	)	$	(1.81	)	$	(3.43	)

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



	As of July 31,
	2017	2018	2019
Outstanding stock options and RSUs	37,710,621	34,930,053	30,876,381
Employee stock purchase plan	1,447,385	1,310,653	1,659,233
Common stock subject to repurchase	243,148	47,691	—
Contingently issuable shares pursuant to business combinations	—	276,625	748,172
Common stock warrants	34,180	34,180	34,180
Total	39,435,334	36,599,202	33,317,966

Shares that will be issued in connection with our stock awards and shares that will be purchased under the employee stock purchase plan are generally automatically converted into shares of our Class A common stock. Shares issued in connection with an exercise of the common stock warrants are converted into shares of our Class B common stock and are voluntarily convertible into shares of Class A common stock at the option of the holder.

INCOME TAXES

12 Months Ended

Jul. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

Income Taxes

Loss before provision for income taxes by fiscal year consisted of the following:



	Fiscal Year Ended July 31,
	2017			2018			2019
	(in thousands)
Domestic	$	(304,363	)	$	(201,666	)	$	(658,938	)
Foreign	(70,423		)	(88,048		)	45,878
Loss before provision for income taxes	$	(374,786	)	$	(289,714	)	$	(613,060	)

Provision for income taxes by fiscal year consisted of the following:



	Fiscal Year Ended July 31,
	2017			2018			2019
	(in thousands)
Current:
U.S. federal	$	—		$	2,059		$	(1,998	)
State and local	193			429			312
Foreign	8,196			8,541			17,270
Total current taxes	8,389			11,029			15,584
Deferred:
U.S. federal	(1,342		)	(3,387		)	(4,949		)
State and local	13			(718		)	(770		)
Foreign	(2,208		)	523			(1,746		)
Total deferred taxes	(3,537		)	(3,582		)	(7,465		)
Provision for income taxes	$	4,852		$	7,447		$	8,119

The income tax provision differs from the amount of income tax determined by applying the applicable U.S. federal statutory income tax rate of 21% to pre-tax loss. The reconciliation of the statutory federal income tax and our effective income tax is as follows:



	Fiscal Year Ended July 31,
	2017			2018			2019
	(in thousands)
U.S. tax reform impact	$	—		$	93,352		$	—
U.S. federal income tax at statutory rate	(127,427		)	(75,779		)	(128,680		)
Stock-based compensation	6,701			(73,631		)	(23,378		)
Effect of foreign operations	16,891			26,117			14,305
Change in valuation allowance	86,941			25,274			142,273
Transfer pricing adjustments	11,822			4,584			(3		)
Intangible asset migration	—			4,461			(2,027		)
Non-deductible expenses	1,693			2,115			4,651
State income taxes	206			(290		)	(458		)
Warrant revaluation	7,185			—			—
Other	840			1,244			1,436
Total	$	4,852		$	7,447		$	8,119

During the fiscal year ended July 31, 2017, our provision for income taxes was primarily attributable to foreign tax provisions in certain foreign jurisdictions in which we conduct business.

During the fiscal year ended July 31, 2018, our provision for income taxes was primarily attributable to the alternative minimum tax in the U.S. related to the migration of certain intangible assets and foreign tax provisions in certain foreign jurisdictions in which we conduct business, partially offset by a partial valuation allowance release in the U.S. due to acquisitions completed during fiscal 2018.

During the fiscal year ended July 31, 2019, our provision for income taxes was primarily attributable to foreign tax provisions in certain foreign jurisdictions in which we conduct business, partially offset by a partial valuation release in the U.S. due to an acquisition completed during fiscal 2019 and a tax benefit related to the change in tax law.

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. Additionally, 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. We completed our accounting for income tax effects of the TCJA during the second quarter of fiscal 2019 and did not have any significant adjustments to our provisional amounts. 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. We have elected to record taxes associated with our GILTI as period costs when incurred.

The temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:



	As of July 31,
	2018			2019
	(in thousands)
Deferred tax assets:
Net operating loss carryforward	$	162,914		$	294,577
Tax credit carryforward	47,839			109,921
Deferred revenue	27,577			71,859
Intangible assets	—			35,764
Stock-based compensation expense	21,252			27,493
Other assets	—			24,258
Accruals and reserves	8,370			14,825
Total deferred tax assets	267,952			578,697
Deferred tax liabilities:
Deferred commission expense	(27,829		)	(35,814		)
Acquisition-related	(5,909		)	(11,515		)
Property and equipment	(3,870		)	(8,541		)
Foreign branch taxes	—			(4,607		)
Prepaid expenses	—			(2,303		)
Other	(497		)	(1,621		)
Total deferred tax liabilities	(38,105		)	(64,401		)
Valuation allowance	(226,987		)	(509,764		)
Net deferred tax assets	$	2,860		$	4,532

Management believes that based on available evidence, both positive and negative, it is more likely than not that the U.S. deferred tax assets will not be utilized and as such, a full valuation allowance has been recorded.

The valuation allowance for deferred tax assets was $509.8 million as of July 31, 2019. The net increase in the total valuation allowance for the fiscal years ended July 31, 2018 and 2019 was $65.8 million and $282.8 million, respectively.

As of July 31, 2019, we had approximately $1.4 billion of federal net operating loss carryforwards and $764.3 million of state net operating loss carryforwards available to reduce future taxable income, which will begin to expire in fiscal 2029. In addition, we had approximately $75.8 million of federal research credit carryforwards, $49.5 million of state research credit carryforwards and $14.1 million of foreign tax credit carryforwards. The federal credits will begin to expire in fiscal 2029 and the state credits can be carried forward indefinitely. The foreign credits will begin to expire in fiscal 2027.

Utilization of the net operating loss and tax credit carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. Any annual limitation may result in the expiration of net operating losses and credits before utilization. If an ownership change occurred, utilization of the net operating loss and tax credit carryforwards could be significantly reduced.

As of July 31, 2019, we held an aggregate of $218.0 million in cash and cash equivalents in our foreign subsidiaries, of which $182.6 million was denominated in U.S. dollars. We attribute net revenue, costs and expenses to domestic and foreign components based on the terms of our agreements with our subsidiaries. We do not provide for federal income taxes on the undistributed earnings of our foreign subsidiaries, as such earnings are to be reinvested offshore indefinitely. The income tax liability would be insignificant if these earnings were to be repatriated.

The income tax benefit and provision for the fiscal year ended July 31, 2019 are based on the assumption that foreign undistributed earnings are indefinitely reinvested. We will continue to evaluate whether or not to continue to assert indefinite reinvestment on part or all of our foreign undistributed earnings. In the event we determine not to continue to assert the permanent reinvestment of part or all of our foreign undistributed earnings, such a determination could result in the accrual and payment of additional foreign, state and local taxes.

We recognize uncertain tax positions in our financial statements if that position will more likely than not be sustained on audit, based on the technical merits of the position. A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, is as follows:



	Fiscal Year Ended July 31,
	2018			2019
	(in thousands)
Balance at the beginning of the year	$	42,655		$	91,716
Increases related to current year tax positions	58,727			13,736
Increases related to prior year tax positions	4,893			301
Decreases related to prior year tax positions	(14,559		)	(23,782		)
Settlements with tax authorities	—			(721		)
Balance at the end of the year	$	91,716		$	81,250

During the fiscal year ended July 31, 2019, the net decrease in uncertain tax positions was primarily attributable to a tax election made during the third quarter of fiscal 2019, as well as the change in tax law, partially offset by uncertain tax positions related to an acquisition during fiscal 2019.

As of July 31, 2019, if uncertain tax positions are fully recognized in the future, it would result in a $14.5 million impact to our effective tax rate, and the remaining amount would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance.

We recognize interest and/or penalties related to income tax matters as a component of income tax expense. As of July 31, 2019, we had recognized $1.3 million accrued interest and penalties related to uncertain tax positions.

We file income tax returns in the U.S. federal jurisdiction as well as various U.S. states and foreign jurisdictions. The tax years 2009 and forward remain open to examination by the major jurisdictions in which we are subject to tax. These fiscal years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years, which have been carried forward and may be audited in subsequent years when utilized. We are subject to the continuous examination of income tax returns by various tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of the provision for income taxes. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations and do not anticipate a significant impact to the gross unrecognized tax benefits within the next 12 months related to these years.

SEGMENT INFORMATION

12 Months Ended

Jul. 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:



	Fiscal Year Ended July 31,
	2017		2018		2019
	(in thousands)
U.S.	$	488,079	$	648,805	$	682,340
Asia Pacific	186,864		240,247		271,712
Europe, the Middle East and Africa	138,815		224,392		238,356
Other Americas	32,145		42,013		43,735
Total revenue	$	845,903	$	1,155,457	$	1,236,143

As of July 31, 2018 and 2019, $130.0 million and $161.9 million, respectively, of our long-lived assets, net were located in the United States.

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Jul. 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 fiscal years ended July 31, 2017, 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 July 31, 2019, entities affiliated with Lightspeed Venture Partners owned approximately 2.3% of our total outstanding Class A and Class B common stock.

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Jul. 31, 2019

Condensed Financial Information Disclosure [Abstract]

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following sets forth selected unaudited quarterly consolidated statements of operations data for each of the eight quarters in the period ended July 31, 2019. The information for each of these quarters has been prepared on a basis consistent with our audited annual consolidated financial statements included elsewhere in this report and, in the opinion of management, includes all adjustments of a normal, recurring nature that are necessary for the fair presentation of the results of operations for these periods in accordance with U.S. GAAP. This data should be read in conjunction with our audited consolidated financial statements and related notes included elsewhere in this report. These historical quarterly operating results are not necessarily indicative of the results that may be expected for a full fiscal year or any future period.



	Three Months Ended
	October 31, 2017			January 31, 2018			April 30, 2018			July 31, 2018			October 31, 2018			January 31, 2019			April 30, 2019			July 31, 2019
	(unaudited, in thousands, except per share amounts)
Revenue:
Product	$	219,052		$	223,170		$	221,117		$	224,650		$	224,346		$	236,932		$	184,794		$	186,347
Support, entitlements and other services	56,500			63,574			68,296			79,098			88,937			98,428			102,830			113,529
Total revenue	275,552			286,744			289,413			303,748			313,283			335,360			287,624			299,876
Cost of revenue:
Product ⁽²⁾⁽³⁾	85,162			83,217			66,680			41,068			39,261			45,966			29,528			28,323
Support, entitlements and other services⁽²⁾	23,460			25,311			28,935			32,197			34,845			40,016			45,549			40,640
Total cost of revenue	108,622			108,528			95,615			73,265			74,106			85,982			75,077			68,963
Gross profit	166,930			178,216			193,798			230,483			239,177			249,378			212,547			230,913
Operating expenses:
Sales and marketing ⁽²⁾⁽³⁾	145,405			151,201			169,860			183,191			196,497			213,707			245,703			253,843
Research and development ⁽²⁾	64,512			70,924			81,291			97,050			110,531			123,037			137,982			129,169
General and administrative ⁽²⁾	16,052			15,948			24,929			29,472			27,339			28,788			33,040			30,420
Total operating expenses	225,969			238,073			276,080			309,713			334,367			365,532			416,725			413,432
Loss from operations	(59,039		)	(59,857		)	(82,282		)	(79,230		)	(95,190		)	(116,154		)	(204,178		)	(182,519		)
Other expense, net	(189		)	(861		)	(4,235		)	(4,021		)	(2,703		)	(4,399		)	(3,212		)	(4,705		)
Loss before provision for income taxes	(59,228		)	(60,718		)	(86,517		)	(83,251		)	(97,893		)	(120,553		)	(207,390		)	(187,224		)
Provision for (benefit from) income taxes	2,259			1,913			(843		)	4,118			(3,628		)	2,210			2,423			7,114
Net loss	$	(61,487	)	$	(62,631	)	$	(85,674	)	$	(87,369	)	$	(94,265	)	$	(122,763	)	$	(209,813	)	$	(194,338	)
Net loss per share attributable to Class A and Class B common stockholders—basic and diluted ⁽¹⁾	$	(0.39	)	$	(0.39	)	$	(0.51	)	$	(0.51	)	$	(0.54	)	$	(0.68	)	$	(1.15	)	$	(1.04	)


(1)	Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share amounts may not equal annual basic and diluted per share amounts.


(2)	Includes stock-based compensation as follows:



	Three Months Ended
	October 31, 2017		January 31, 2018		April 30, 2018		July 31, 2018		October 31, 2018		January 31, 2019		April 30, 2019		July 31, 2019
	(unaudited, in thousands)
Product cost of sales	$	570	$	684	$	634	$	692	$	698	$	872	$	953	$	1,012
Support, entitlements and other services cost of sales	2,072		2,133		1,951		2,789		3,157		3,373		4,542		4,254
Sales and marketing	13,766		15,942		18,051		17,301		22,606		23,462		35,257		26,426
Research and development	15,542		17,023		16,474		25,350		31,009		34,679		42,265		32,566
General and administrative	3,565		6,229		7,836		9,264		8,455		10,179		11,815		9,149
Total	$	35,515	$	42,011	$	44,946	$	55,396	$	65,925	$	72,565	$	94,832	$	73,407


(3)	Includes amortization of intangible assets as follows:



	Three Months Ended
	October 31, 2017		January 31, 2018		April 30, 2018		July 31, 2018		October 31, 2018		January 31, 2019		April 30, 2019		July 31, 2019
	(unaudited, in thousands)
Product cost of sales	$	895	$	1,164	$	1,447	$	2,135	$	3,168	$	3,692	$	3,694	$	3,694
Sales and marketing	211		192		222		289		550		666		661		651
Total	$	1,106	$	1,356	$	1,669	$	2,424	$	3,718	$	4,358	$	4,355	$	4,345

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jul. 31, 2019

Accounting Policies [Abstract]

Principles of Consolidation

Use of Estimates

Concentration Risk

Concentration of Revenue and Accounts Receivable — We sell our products primarily through Partners and occasionally directly to end customers.

Cash, Cash Equivalents

Cash, Cash Equivalents and Short-Term Investments

Short-Term Investments

Fair Value Measurement

Accounts Receivable and Allowance for Doubtful Accounts

Property and Equipment

Business Combination

Business Combinations

Acquisition related costs incurred in connection with a business combination, other than those associated with the issuance of debt or equity securities, are expensed as incurred.

Impairment of Long-Lived Assets

Goodwill, Intangible Assets and Other Long-Lived Assets

Revenue Recognition

•


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

•

Cost of Revenue

Warranties

Research and Development

Stock-Based Compensation

Foreign Currency

Income Taxes

Advertising Costs

Advertising costs are charged to sales and marketing expenses as incurred in the consolidated statements of operations.

Recently Issued and Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued and Not Yet Adopted Accounting Pronouncements

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jul. 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 July 31,
	Fiscal Year Ended July 31,						Accounts Receivable as of July 31,
Partners	2017		2018		2019		2018		2019
Partner A	⁽¹⁾		10	%	10	%	16	%	⁽¹⁾
Partner B	19	%	20	%	10	%	13	%	⁽¹⁾
Partner C	16	%	18	%	24	%	15	%	27	%
Partner D	10	%	⁽¹⁾		⁽¹⁾		⁽¹⁾		⁽¹⁾
Partner E	14	%	13	%	13	%	12	%	18	%

(1)

Less than 10%

Schedule of Allowance for Doubtful Accounts Receivable

The changes in the allowance for doubtful accounts are as follows:



	Fiscal Year Ended July 31,
	2017		2018			2019
	(in thousands)
Allowance for doubtful accounts—beginning balance	$	132	$	132		$	815
Charged to allowance for doubtful accounts	—		815			437
Recoveries	—		—			(290		)
Write-offs	—		(132		)	(583		)
Allowance for doubtful accounts—ending balance	$	132	$	815		$	379

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Jul. 31, 2019

Business Combinations [Abstract]

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The following table presents the aggregate purchase price allocation related to the acquisitions completed during fiscal 2018 and fiscal 2019:



	As of July 31,
	2018			2019
	(in thousands)
Goodwill	$	71,087		$	97,328
Amortizable intangible assets	25,920			38,180
Tangible assets acquired	842			10,811
Liabilities assumed	(11,041		)	(16,293		)
Total consideration	$	86,808		$	130,026

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS (Tables)

12 Months Ended

Jul. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue by Arrangement, Disclosure

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



	Fiscal Year Ended July 31,
	2017		2018		2019
	(in thousands)
Subscription	$	172,530	$	330,645	$	648,415
Non-portable software	421,048		543,952		449,131
Hardware	236,316		257,314		105,321
Professional services	16,009		23,546		33,276
Total revenue	$	845,903	$	1,155,457	$	1,236,143

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, 2017	$	369,056		$	73,527
Additions	529,495			150,122
Revenue/commissions recognized	(267,468		)	(109,270		)
Assumed in a business combination	124			—
Balance as of July 31, 2018	631,207			114,379
Additions	682,241			158,062
Revenue/commissions recognized	(403,724		)	(118,729		)
Assumed in a business combination	320			—
Balance as of July 31, 2019	$	910,044		$	153,712

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jul. 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 July 31, 2019
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	33,156	$	—	$	—	$	33,156
Commercial paper	—		103,029		—		103,029
U.S. government securities	—		119,933		—		119,933
Corporate bonds	—		9,996		—		9,996
Short-term investments:
Corporate bonds	—		354,549		—		354,549
Commercial paper	—		92,851		—		92,851
U.S. government securities	—		64,756		—		64,756
Total measured at fair value	$	33,156	$	745,114	$	—	$	778,270
Cash							130,564
Total cash, cash equivalents and short-term investments							$	908,834

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 July 31, 2019
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(in thousands)
Convertible senior notes, net	$	429,598	$	685,527	$	458,910	$	527,275

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:



	Fiscal Year Ended July 31,
	2018			2019
	(in thousands)
Contingent consideration—beginning balance	$	4,295		$	1,872
Change in fair value ⁽¹⁾	(2,423		)	(832		)
Payment	—			(1,040		)
Contingent consideration—ending balance	$	1,872		$	—

(1)

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

BALANCE SHEET COMPONENTS (Tables)

12 Months Ended

Jul. 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 July 31, 2019
	(in thousands)
Due within one year	$	408,459
Due in one to two years	103,697
Total	$	512,156

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

Prepaid expenses and other current assets consists of the following:



	As of July 31,
	2018		2019
	(in thousands)
Prepaid operating expenses	$	23,169	$	37,864
Prepaid income taxes	1,629		19,690
VAT receivables	2,281		5,068
Other current assets	9,739		12,043
Total prepaid expenses and other current assets	$	36,818	$	74,665

Schedule of Property, Plant and Equipment

Property and Equipment, Net

Property and equipment, net consists of the following:



	Estimated Useful Life	As of July 31,
	Estimated Useful Life	2018			2019
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	131,805		$	200,762
Demonstration units	12	53,547			59,981
Leasehold improvements	⁽¹⁾	19,916			46,520
Furniture and fixtures	60	7,636			12,868
Total property and equipment, gross		212,904			320,131
Less: accumulated depreciation		(127,793		)	(183,169		)
Total property and equipment, net		$	85,111		$	136,962

(1)

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

Schedule of Finite-Lived Intangible Assets

Intangible assets, net consists of the following:



	As of July 31,
	2018			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		)	(21,210		)
Accumulated amortization of customer relationships	(1,828		)	(3,392		)
Accumulated amortization of trade name	—			(955		)
Total accumulated amortization	(8,784		)	(25,557		)
Total intangible assets, net	$	45,366		$	66,773

Schedule of Indefinite-Lived Intangible Assets

The changes in the net book value of intangible assets, net are as follows:



	As of July 31,
	2018			2019
	(in thousands)
Intangible assets, net—beginning balance	$	26,001		$	45,366
Acquired intangible assets	25,920			38,180
Amortization of intangible assets ⁽¹⁾	(6,555		)	(16,773		)
Intangible assets, net—ending balance	$	45,366		$	66,773

(1)

Represents amortization expense related to intangible assets recognized during the year in the consolidated statements of operations, within product cost of revenue and sales and marketing expense.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

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



Fiscal Year Ending July 31:	Amount
	(in thousands)
2020	$	17,380
2021	17,380
2022	16,183
2023	10,856
2024	3,210
Thereafter	1,764
Total	$	66,773

Schedule of Goodwill

The changes in the carrying amount of goodwill are as follows:



	Carrying Amount
	(in thousands)
Balance at July 31, 2017	$	16,672
Acquired in Netsil Acquisition	53,085
Acquired in Minjar Acquisition	18,002
Balance at July 31, 2018	87,759
Acquired in Frame Acquisition	97,328
Other	93
Balance at July 31, 2019	$	185,180

Schedule of Other Assets, Noncurrent

Other assets—non-current consists of the following:



	As of July 31,
	2018		2019
	(in thousands)
Other tax assets—non-current	$	30,927	$	—
Deferred tax assets—non-current	2,860		4,607
Other	4,068		9,834
Total other assets—non-current	$	37,855	$	14,441

Schedule of Accrued Liabilities

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:



	As of July 31,
	2018		2019
	(in thousands)
Accrued commissions	$	21,660	$	31,703
Contributions to ESPP withheld	21,931		20,778
Accrued vacation	10,548		15,475
Accrued bonus	12,129		11,413
Payroll taxes payable	9,563		8,504
Other	9,567		11,931
Total accrued compensation and benefits	$	85,398	$	99,804

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:



	As of July 31,
	2018		2019
	(in thousands)
Income taxes payable	$	20,863	$	9,651
Accrued professional services	5,838		2,996
Other	4,981		16,150
Total accrued expenses and other current liabilities	$	31,682	$	28,797

DEBT DEBT (Tables)

12 Months Ended

Jul. 31, 2019

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

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

Schedule of Debt

The Notes consisted of the following:



	As of July 31,
	2018			2019
	(in thousands)
Principal amounts:
Principal	$	575,000		$	575,000
Unamortized debt discount ⁽¹⁾	(137,719		)	(109,956		)
Unamortized debt issuance costs ⁽¹⁾	(7,683		)	(6,134		)
Net carrying amount	$	429,598		$	458,910
Carrying amount of equity component ⁽²⁾	$	148,598		$	148,598


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

Interest Income and Interest Expense Disclosure

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



	Fiscal Year Ended July 31,
	2018		2019
	(in thousands)
Interest expense related to amortization of debt discount	$	13,909	$	27,764
Interest expense related to amortization of debt issuance costs	776		1,549
Total interest expense	$	14,685	$	29,313

- 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.

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+ Details

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Jul. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Payments Due Under Operating Leases

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



Fiscal Year Ending July 31:	Amount
	(in thousands)
2020	$	39,540
2021	41,909
2022	41,332
2023	40,695
2024	30,240
Thereafter	3,511
Total	$	197,227

STOCKHOLDERS’ EQUITY STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jul. 31, 2019

Equity [Abstract]

Schedule of Stock by Class

As of July 31, 2019, we had reserved shares of common stock for future issuance as follows:



	As of July 31, 2019
Shares reserved for future equity grants	12,594,167
Shares underlying outstanding stock options	8,740,309
Shares underlying outstanding restricted stock units	22,136,072
Shares reserved for future employee stock purchase plan awards	1,402,959
Shares underlying outstanding common stock warrants	34,180
Total	44,907,687

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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+ Details

EQUITY AWARD PLANS (Tables)

12 Months Ended

Jul. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of RSUs Activity



	Fiscal Year Ended July 31,
	2018				2019
	Number of Shares		Grant Date Fair Value per Share		Number of Shares		Grant Date Fair Value per Share
Outstanding at beginning of period	17,376,090		$	18.85	23,597,499		$	31.20
Granted	14,947,403		$	39.44	11,204,016		$	42.23
Released	(5,823,800	)	$	19.96	(8,716,764	)	$	30.15
Forfeited	(2,902,194	)	$	22.34	(3,948,679	)	$	33.86
Outstanding at end of period	23,597,499		$	31.20	22,136,072		$	36.72

Schedule of Employee Stock Purchase Plan, 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:



	Fiscal Year Ended July 31,
	2017		2018		2019
Expected term (in years)	0.75		0.75		0.84
Risk-free interest rate	0.6	%	1.4	%	2.5	%
Volatility	51.0	%	49.8	%	69.0	%
Dividend yield	—	%	—	%	—	%

Schedule of Stock Option Activity

stock option activity under the Stock Plans:



	Fiscal Year Ended July 31,
	2018							2019
	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value		Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
					(in years)	(in thousands)						(in years)	(in thousands)
Outstanding at beginning of period	20,334,531		$	4.59	6.4	$	338,787	11,332,554		$	5.12	5.6	$	496,022
Options granted	—		$	—				—		$	—
Options exercised	(8,672,623	)	$	3.81				(2,554,706	)	$	4.77
Options canceled/forfeited	(329,354	)	$	6.63				(37,539	)	$	10.09
Outstanding at end of period	11,332,554		$	5.12	5.6	$	496,022	8,740,309		$	5.20	4.6	$	153,000
Exercisable at end of period	11,159,045		$	5.01	5.5	$	489,682	8,720,993		$	5.18	4.6	$	152,837
Vested and expected to vest at end of period	11,332,554		$	5.12	5.6	$	496,022	8,740,309		$	5.20	4.6	$	153,000

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

Stock-Based Compensation

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



	Fiscal Year Ended July 31,
	2017		2018		2019
	(in thousands)
Cost of revenue:
Product	$	3,066	$	2,580	$	3,535
Support, entitlements and other services	10,411		8,945		15,326
Sales and marketing	78,117		65,060		107,751
Research and development	109,044		74,389		140,519
General and administrative	30,853		26,894		39,598
Total stock-based compensation expense	$	231,491	$	177,868	$	306,729

Schedule Stock Option Valuation Assumptions

The fair value of our stock options was estimated using the following weighted average assumptions:



	Fiscal Year Ended July 31, 2017
Fair value of common stock	$	12.14
Expected term (in years)	6.1
Risk-free interest rate	1.3		%
Volatility	52		%
Dividend yield	—		%

NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS (Tables)

12 Months Ended

Jul. 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:



	Fiscal Year Ended July 31,
	2017			2018			2019
	(in thousands, except share and per share data)
Numerator:
Net loss	$	(379,638	)	$	(297,161	)	$	(621,179	)
Denominator:
Weighted average shares—basic and diluted	128,295,563			164,091,302			181,030,964
Net loss per share attributable to common stockholders—basic and diluted	$	(2.96	)	$	(1.81	)	$	(3.43	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	As of July 31,
	2017	2018	2019
Outstanding stock options and RSUs	37,710,621	34,930,053	30,876,381
Employee stock purchase plan	1,447,385	1,310,653	1,659,233
Common stock subject to repurchase	243,148	47,691	—
Contingently issuable shares pursuant to business combinations	—	276,625	748,172
Common stock warrants	34,180	34,180	34,180
Total	39,435,334	36,599,202	33,317,966

INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Loss before provision for income taxes by fiscal year consisted of the following:



	Fiscal Year Ended July 31,
	2017			2018			2019
	(in thousands)
Domestic	$	(304,363	)	$	(201,666	)	$	(658,938	)
Foreign	(70,423		)	(88,048		)	45,878
Loss before provision for income taxes	$	(374,786	)	$	(289,714	)	$	(613,060	)

Schedule of Components of Income Tax Expense (Benefit)

Provision for income taxes by fiscal year consisted of the following:



	Fiscal Year Ended July 31,
	2017			2018			2019
	(in thousands)
Current:
U.S. federal	$	—		$	2,059		$	(1,998	)
State and local	193			429			312
Foreign	8,196			8,541			17,270
Total current taxes	8,389			11,029			15,584
Deferred:
U.S. federal	(1,342		)	(3,387		)	(4,949		)
State and local	13			(718		)	(770		)
Foreign	(2,208		)	523			(1,746		)
Total deferred taxes	(3,537		)	(3,582		)	(7,465		)
Provision for income taxes	$	4,852		$	7,447		$	8,119

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the statutory federal income tax and our effective income tax is as follows:



	Fiscal Year Ended July 31,
	2017			2018			2019
	(in thousands)
U.S. tax reform impact	$	—		$	93,352		$	—
U.S. federal income tax at statutory rate	(127,427		)	(75,779		)	(128,680		)
Stock-based compensation	6,701			(73,631		)	(23,378		)
Effect of foreign operations	16,891			26,117			14,305
Change in valuation allowance	86,941			25,274			142,273
Transfer pricing adjustments	11,822			4,584			(3		)
Intangible asset migration	—			4,461			(2,027		)
Non-deductible expenses	1,693			2,115			4,651
State income taxes	206			(290		)	(458		)
Warrant revaluation	7,185			—			—
Other	840			1,244			1,436
Total	$	4,852		$	7,447		$	8,119

Schedule of Deferred Tax Assets and Liabilities

The temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:



	As of July 31,
	2018			2019
	(in thousands)
Deferred tax assets:
Net operating loss carryforward	$	162,914		$	294,577
Tax credit carryforward	47,839			109,921
Deferred revenue	27,577			71,859
Intangible assets	—			35,764
Stock-based compensation expense	21,252			27,493
Other assets	—			24,258
Accruals and reserves	8,370			14,825
Total deferred tax assets	267,952			578,697
Deferred tax liabilities:
Deferred commission expense	(27,829		)	(35,814		)
Acquisition-related	(5,909		)	(11,515		)
Property and equipment	(3,870		)	(8,541		)
Foreign branch taxes	—			(4,607		)
Prepaid expenses	—			(2,303		)
Other	(497		)	(1,621		)
Total deferred tax liabilities	(38,105		)	(64,401		)
Valuation allowance	(226,987		)	(509,764		)
Net deferred tax assets	$	2,860		$	4,532

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of our unrecognized tax benefits, excluding accrued interest and penalties, is as follows:



	Fiscal Year Ended July 31,
	2018			2019
	(in thousands)
Balance at the beginning of the year	$	42,655		$	91,716
Increases related to current year tax positions	58,727			13,736
Increases related to prior year tax positions	4,893			301
Decreases related to prior year tax positions	(14,559		)	(23,782		)
Settlements with tax authorities	—			(721		)
Balance at the end of the year	$	91,716		$	81,250

SEGMENT INFORMATION (Tables)

12 Months Ended

Jul. 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:



	Fiscal Year Ended July 31,
	2017		2018		2019
	(in thousands)
U.S.	$	488,079	$	648,805	$	682,340
Asia Pacific	186,864		240,247		271,712
Europe, the Middle East and Africa	138,815		224,392		238,356
Other Americas	32,145		42,013		43,735
Total revenue	$	845,903	$	1,155,457	$	1,236,143

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Jul. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Statements



	Three Months Ended
	October 31, 2017			January 31, 2018			April 30, 2018			July 31, 2018			October 31, 2018			January 31, 2019			April 30, 2019			July 31, 2019
	(unaudited, in thousands, except per share amounts)
Revenue:
Product	$	219,052		$	223,170		$	221,117		$	224,650		$	224,346		$	236,932		$	184,794		$	186,347
Support, entitlements and other services	56,500			63,574			68,296			79,098			88,937			98,428			102,830			113,529
Total revenue	275,552			286,744			289,413			303,748			313,283			335,360			287,624			299,876
Cost of revenue:
Product ⁽²⁾⁽³⁾	85,162			83,217			66,680			41,068			39,261			45,966			29,528			28,323
Support, entitlements and other services⁽²⁾	23,460			25,311			28,935			32,197			34,845			40,016			45,549			40,640
Total cost of revenue	108,622			108,528			95,615			73,265			74,106			85,982			75,077			68,963
Gross profit	166,930			178,216			193,798			230,483			239,177			249,378			212,547			230,913
Operating expenses:
Sales and marketing ⁽²⁾⁽³⁾	145,405			151,201			169,860			183,191			196,497			213,707			245,703			253,843
Research and development ⁽²⁾	64,512			70,924			81,291			97,050			110,531			123,037			137,982			129,169
General and administrative ⁽²⁾	16,052			15,948			24,929			29,472			27,339			28,788			33,040			30,420
Total operating expenses	225,969			238,073			276,080			309,713			334,367			365,532			416,725			413,432
Loss from operations	(59,039		)	(59,857		)	(82,282		)	(79,230		)	(95,190		)	(116,154		)	(204,178		)	(182,519		)
Other expense, net	(189		)	(861		)	(4,235		)	(4,021		)	(2,703		)	(4,399		)	(3,212		)	(4,705		)
Loss before provision for income taxes	(59,228		)	(60,718		)	(86,517		)	(83,251		)	(97,893		)	(120,553		)	(207,390		)	(187,224		)
Provision for (benefit from) income taxes	2,259			1,913			(843		)	4,118			(3,628		)	2,210			2,423			7,114
Net loss	$	(61,487	)	$	(62,631	)	$	(85,674	)	$	(87,369	)	$	(94,265	)	$	(122,763	)	$	(209,813	)	$	(194,338	)
Net loss per share attributable to Class A and Class B common stockholders—basic and diluted ⁽¹⁾	$	(0.39	)	$	(0.39	)	$	(0.51	)	$	(0.51	)	$	(0.54	)	$	(0.68	)	$	(1.15	)	$	(1.04	)


(1)	Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share amounts may not equal annual basic and diluted per share amounts.


(2)	Includes stock-based compensation as follows:



	Three Months Ended
	October 31, 2017		January 31, 2018		April 30, 2018		July 31, 2018		October 31, 2018		January 31, 2019		April 30, 2019		July 31, 2019
	(unaudited, in thousands)
Product cost of sales	$	570	$	684	$	634	$	692	$	698	$	872	$	953	$	1,012
Support, entitlements and other services cost of sales	2,072		2,133		1,951		2,789		3,157		3,373		4,542		4,254
Sales and marketing	13,766		15,942		18,051		17,301		22,606		23,462		35,257		26,426
Research and development	15,542		17,023		16,474		25,350		31,009		34,679		42,265		32,566
General and administrative	3,565		6,229		7,836		9,264		8,455		10,179		11,815		9,149
Total	$	35,515	$	42,011	$	44,946	$	55,396	$	65,925	$	72,565	$	94,832	$	73,407


(3)	Includes amortization of intangible assets as follows:



	Three Months Ended
	October 31, 2017		January 31, 2018		April 30, 2018		July 31, 2018		October 31, 2018		January 31, 2019		April 30, 2019		July 31, 2019
	(unaudited, in thousands)
Product cost of sales	$	895	$	1,164	$	1,447	$	2,135	$	3,168	$	3,692	$	3,694	$	3,694
Sales and marketing	211		192		222		289		550		666		661		651
Total	$	1,106	$	1,356	$	1,669	$	2,424	$	3,718	$	4,358	$	4,355	$	4,345

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017	Aug. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impairment losses	$ 0	$ 0	$ 0
Foreign currency transaction gain (loss), before tax	(2,500,000)	(3,600,000)	(2,600,000)
Advertising expense	$ 26,700,000	$ 14,600,000	$ 13,000,000.0
Accounting Standards Update 2016-02 \| Subsequent Event
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease commitment, not yet commenced				$ 32,000,000
Accounting Standards Update 2016-02 \| Minimum \| Subsequent Event
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset				115,000,000
Operating lease liability				140,000,000
Accounting Standards Update 2016-02 \| Maximum \| Subsequent Event
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset				125,000,000
Operating lease liability				$ 150,000,000
Hardware
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warranty duration, hardware (in years)	1 year
Product warranty replacement period (in years)	3 years
Software
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warranty duration, hardware (in years)	90 days

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risk (Details) - Partner Concentration Risk	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Revenue \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage	10.00%
Revenue \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	20.00%	19.00%
Revenue \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage	24.00%	18.00%	16.00%
Revenue \| Partner D
Concentration Risk [Line Items]
Concentration risk percentage			10.00%
Revenue \| Partner E
Concentration Risk [Line Items]
Concentration risk percentage	13.00%	13.00%	14.00%
Accounts Receivable \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage		16.00%
Accounts Receivable \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage		13.00%
Accounts Receivable \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage	27.00%	15.00%
Accounts Receivable \| Partner E
Concentration Risk [Line Items]
Concentration risk percentage	18.00%	12.00%

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for accounts receivable, beginning balance	$ 815	$ 132	$ 132
Charged to allowance for doubtful accounts	437	815	0
Recoveries	(290)	0	0
Write-offs	(583)	(132)	0
Allowance for doubtful accounts—ending balance	$ 379	$ 815	$ 132

BUSINESS COMBINATIONS - Additional Information (Details) - business	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Business Combinations [Abstract]
Number of Businesses Acquired	1	2

BUSINESS COMBINATIONS - Minjar Acquisition (Details) - USD ($) $ in Thousands		12 Months Ended
	Mar. 16, 2018	Jul. 31, 2019	Jul. 31, 2018
Business Acquisition [Line Items]
Consideration transferred		$ 130,026	$ 86,808
Minjar, Inc.
Business Acquisition [Line Items]
Consideration transferred	$ 19,300
Cash payment to acquire business	18,800
Liabilities incurred	500
Contingent consideration, liability	4,400
Goodwill acquired			$ 18,002
Intangible assets	$ 7,000
Estimated Life (in years)	5 years
Deferred tax liabilities noncurrent	$ (5,700)
Acquisition related costs		$ 800
Developed technology \| Minjar, Inc.
Business Acquisition [Line Items]
Intangible assets	5,600
Customer relationships \| Minjar, Inc.
Business Acquisition [Line Items]
Intangible assets	$ 1,400

BUSINESS COMBINATIONS - Netsil Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Mar. 22, 2018	Jul. 31, 2019	Jul. 31, 2018
Business Acquisition [Line Items]
Consideration transferred		$ 130,026	$ 86,808
Finite-lived intangible assets, gross		38,180	25,920
Liabilities assumed		(16,293)	(11,041)
Netsil Inc.
Business Acquisition [Line Items]
Consideration transferred	$ 67,500
Cash payment to acquire business	$ 3,700
Business acquisition equity issued (in shares)	1,206,364
Equity interests issued and issuable (in shares)	$ 63,800
Share price (in dollars per share)	$ 52.87
Deferred payment arrangement, number of shares (in shares)	104,426
Holdback arrangement, amount	$ 5,500
Holdback arrangement, service period	2 years
Goodwill acquired			$ 53,085
Intangible assets	$ 19,000
Estimated Life (in years)	7 years
Deferred tax liabilities noncurrent	$ (2,600)
Liabilities assumed	$ (1,400)
Acquisition related costs		$ 600

BUSINESS COMBINATIONS BUSINESS COMBINATIONS - Mainframe2, Inc. (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Sep. 21, 2018	Aug. 24, 2018	Jul. 31, 2019	Jul. 31, 2018
Business Acquisition [Line Items]
Consideration transferred			$ 130,026	$ 86,808
Finite-lived intangible assets, gross			38,180	$ 25,920
Mainframe2, Inc.
Business Acquisition [Line Items]
Consideration transferred		$ 130,000
Cash payment to acquire business		$ 26,700
Business acquisition equity issued (in shares)	2,451,322	1,813,321
Equity interests issued and issuable (in shares)		$ 103,300
Share price (in dollars per share)		$ 56.97
Holdback arrangement, amount		$ 43,300
Deferred payment arrangement, amount paid in cash		6,600
Deferred payment arrangement, amount paid in shares (in shares)		$ 36,700
Payment term		3 years
Deferred payment arrangement, number of shares (in shares)		643,746
Goodwill acquired			97,328
Intangible assets		$ 38,200
Acquisition related costs		1,100	$ 400
Developed technology \| Mainframe2, Inc.
Business Acquisition [Line Items]
Finite-lived intangible assets, gross		31,800
Customer relationships \| Mainframe2, Inc.
Business Acquisition [Line Items]
Intangible assets		$ 2,200
Estimated Life (in years)		5 years
Trade Names \| Mainframe2, Inc.
Business Acquisition [Line Items]
Intangible assets		$ 4,200
Estimated Life (in years)		4 years

BUSINESS COMBINATIONS - Preliminary Aggregate Purchase Price Allocation (Details) - USD ($) $ in Thousands		12 Months Ended
	Aug. 24, 2018	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Business Acquisition [Line Items]
Goodwill		$ 185,180	$ 87,759	$ 16,672
Finite-lived intangible assets, gross		38,180	25,920
Tangible assets acquired		10,811	842
Liabilities assumed		(16,293)	(11,041)
Total consideration		130,026	86,808
Minjar and Netsil
Business Acquisition [Line Items]
Goodwill			$ 71,087
Mainframe2, Inc.
Business Acquisition [Line Items]
Goodwill		$ 97,328
Total consideration	$ 130,000

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 299,876	$ 287,624	$ 335,360	$ 313,283	$ 303,748	$ 289,413	$ 286,744	$ 275,552	$ 1,236,143	$ 1,155,457	$ 845,903
Amount deferred in prior period									275,000	170,100
Contracted revenue not recognized	$ 941,400								$ 941,400
Percent expected to be recognized in next year	44.00%								44.00%
Subscription and Circulation, Software Entitlement and Support Subscription
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue									$ 376,400	243,900	156,600
Subscription and Circulation, Software Term-based Licenses
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue									$ 272,000	$ 86,700	$ 15,900
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	3 years 8 months 12 days	2 years 10 months 24 days

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue	$ 299,876	$ 287,624	$ 335,360	$ 313,283	$ 303,748	$ 289,413	$ 286,744	$ 275,552	$ 1,236,143	$ 1,155,457	$ 845,903
Subscription and Circulation
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue									648,415	330,645	172,530
Software
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue									449,131	543,952	421,048
Hardware
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue									105,321	257,314	236,316
Professional Services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue									33,276	23,546	16,009
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue									$ 1,236,143	$ 1,155,457	$ 845,903

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Deferred Revenue
Beginning balance	$ 631,207	$ 369,056
Additions	682,241	529,495
Revenue/commissions recognized	(403,724)	(267,468)
Assumed in a business combination	320	124
Ending balance	910,044	631,207
Deferred Commissions
Beginning balance	114,379	73,527
Additions	158,062	150,122
Revenue/commissions recognized	(118,729)	(109,270)
Assumed in a business combination	0	0
Ending balance	$ 153,712	$ 114,379

FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018
Financial Assets:
Short-term investments:	$ 512,156	$ 628,328
Recurring
Financial Assets:
Total measured at fair value	778,270	752,894
Cash	130,564	181,409
Total cash, cash equivalents and short-term investments	908,834	934,303
Recurring \| Warrant
Financial Liabilities:
Convertible preferred stock warrant liability		1,872
Recurring \| Corporate bonds
Financial Assets:
Short-term investments:	354,549	448,458
Recurring \| Commercial paper
Financial Assets:
Short-term investments:	92,851	120,772
Recurring \| US government securities
Financial Assets:
Short-term investments:	64,756	59,098
Recurring \| Money market funds
Financial Assets:
Cash equivalents:	33,156	41,763
Recurring \| Commercial paper
Financial Assets:
Cash equivalents:	103,029	77,818
Recurring \| US government securities
Financial Assets:
Cash equivalents:		4,985
Recurring \| Level I
Financial Assets:
Total measured at fair value	33,156	41,763
Recurring \| Level I \| Warrant
Financial Liabilities:
Convertible preferred stock warrant liability		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 \| US government securities
Financial Assets:
Short-term investments:	0	0
Recurring \| Level I \| Money market funds
Financial Assets:
Cash equivalents:	33,156	41,763
Recurring \| Level I \| Commercial paper
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level I \| US government securities
Financial Assets:
Cash equivalents:		0
Recurring \| Level II
Financial Assets:
Total measured at fair value	745,114	711,131
Recurring \| Level II \| Warrant
Financial Liabilities:
Convertible preferred stock warrant liability		0
Recurring \| Level II \| Corporate bonds
Financial Assets:
Short-term investments:	354,549	448,458
Recurring \| Level II \| Commercial paper
Financial Assets:
Short-term investments:	92,851	120,772
Recurring \| Level II \| US government securities
Financial Assets:
Short-term investments:	64,756	59,098
Recurring \| Level II \| Money market funds
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level II \| Commercial paper
Financial Assets:
Cash equivalents:	103,029	77,818
Recurring \| Level II \| US government securities
Financial Assets:
Cash equivalents:		4,985
Recurring \| Level III
Financial Assets:
Total measured at fair value	0	0
Recurring \| Level III \| Warrant
Financial Liabilities:
Convertible preferred stock warrant liability		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 \| US 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 \| US government securities
Financial Assets:
Cash equivalents:		$ 0

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Convertible Senior Notes (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2018
Reported Value Measurement \| Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Fair Value Disclosure	$ 458,910	$ 429,598
Estimate of Fair Value Measurement \| Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Fair Value Disclosure	$ 527,275	685,527
Convertible Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	0.00%		0.00%
Debt Instrument, Unamortized Discount	$ (109,956)	(137,719)
Unamortized Debt Issuance Expense	$ (6,134)	$ (7,683)

FAIR VALUE MEASUREMENTS - Level 3 Roll Forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Payment	$ (1,040)	$ 0	$ 0
Commitments
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	832	2,423
Payment	(1,040)	0
Convertible preferred stock warrant liability—beginning balance	$ 0	$ 1,872	$ 4,295

BALANCE SHEET COMPONENTS - Short-Term Investments (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Due within one year	$ 408,459
Due in one to two years	103,697
Total	$ 512,156	$ 628,328

BALANCE SHEET COMPONENTS - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid operating expenses	$ 37,864	$ 23,169
Prepaid income taxes	19,690	1,629
VAT receivables	5,068	2,281
Other current assets	12,043	9,739
Total prepaid expenses and other current assets	$ 74,665	$ 36,818

BALANCE SHEET COMPONENTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Property, Plant and Equipment [Line Items]
Total property and equipment—gross	$ 320,131	$ 212,904
Less accumulated depreciation and amortization	(183,169)	(127,793)
Total property and equipment—net	136,962	85,111
Depreciation and amortization	77,612	50,302	$ 38,399
Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 60,800	43,700	$ 36,200
Computer, production, engineering and other equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In months)	36 months
Total property and equipment—gross	$ 200,762	131,805
Demonstration units
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In months)	12 months
Total property and equipment—gross	$ 59,981	53,547
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment—gross	$ 46,520	19,916
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In months)	60 months
Total property and equipment—gross	$ 12,868	$ 7,636

BALANCE SHEET COMPONENTS - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Finite-lived intangible assets:
Total intangible assets, gross											$ 92,330	$ 54,150
Less:
Accumulated amortization											(25,557)	(8,784)
Intangible assets, net	$ 66,773			$ 45,366	$ 45,366			$ 26,001	$ 66,773	$ 26,001	66,773	45,366
Finite-lived Intangible Assets [Roll Forward]
Intangible assets, net—beginning balance				45,366				26,001	45,366	26,001
Intangible assets acquired									38,180	25,920
Amortization of intangible assets	(4,345)	$ (4,355)	$ (4,358)	$ (3,718)	(2,424)	$ (1,669)	$ (1,356)	$ (1,106)	(16,773)	(6,555)
Intangible assets, net—ending balance	$ 66,773				$ 45,366				$ 66,773	$ 45,366
Developed technology
Finite-lived intangible assets:
Finite-lived intangible assets, gross											79,300	47,500
Less:
Accumulated amortization											(21,210)	(6,956)
Customer relationships
Finite-lived intangible assets:
Finite-lived intangible assets, gross											8,860	6,650
Less:
Accumulated amortization											(3,392)	(1,828)
Trade Names
Finite-lived intangible assets:
Finite-lived intangible assets, gross											4,170	0
Less:
Accumulated amortization											$ (955)	$ 0

BALANCE SHEET COMPONENTS - Future Amortization Expense (Details) $ in Thousands	Jul. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 17,380
2021	17,380
2022	16,183
2023	10,856
2024	3,210
Thereafter	1,764
Total	$ 66,773

BALANCE SHEET COMPONENTS BALANCE SHEET COMPONENTS - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Goodwill [Roll Forward]
Beginning Balance	$ 87,759	$ 16,672
Other	93
Ending Balance	$ 185,180	87,759
Netsil Inc.
Goodwill [Roll Forward]
Goodwill acquired		53,085
Minjar, Inc.
Goodwill [Roll Forward]
Goodwill acquired		$ 18,002

BALANCE SHEET COMPONENTS BALANCE SHEET COMPONENTS - Other Assets, Non-current (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Other tax assets—non-current	$ 0	$ 30,927
Deferred tax assets—non-current	4,607	2,860
Other	9,834	4,068
Total other assets—non-current	14,441	$ 37,855
Income taxes receivable	$ 18,000

BALANCE SHEET COMPONENTS - Accrued Compensation Benefits (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018
Employee-related Liabilities, Current [Abstract]
Accrued commissions	$ 31,703	$ 21,660
Contributions to ESPP withheld	20,778	21,931
Accrued vacation	15,475	10,548
Accrued bonus	11,413	12,129
Payroll taxes payable	8,504	9,563
Other	11,931	9,567
Total accrued compensation and benefits	$ 99,804	$ 85,398

BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Income taxes payable	$ 9,651	$ 20,863
Accrued professional services	2,996	5,838
Other	16,150	4,981
Total accrued expenses and other current liabilities	28,797	$ 31,682
Income taxes paid	$ 18,000

DEBT - Additional Information (Details) $ / shares in Units, shares in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2018 USD ($) day $ / shares shares	Jul. 31, 2019 USD ($) $ / shares shares	Jul. 31, 2018 USD ($)	Jul. 31, 2017 USD ($)
Debt Instrument [Line Items]
Payments for convertible note hedges	$ 143,200,000	$ 0	$ 143,175,000	$ 0
Class of Warrant or Right, Number of Securities Called by Warrants or Rights \| shares	11.8
Exercise Price per Share (in dollars per share) \| $ / shares	$ 73.46
Proceeds from issuance of warrants	$ 88,000,000.0	0	$ 87,975,000	$ 0
Net Transaction Cost of the Note Hedges and Warrants		$ 55,200,000
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities \| shares		3.9
Share Price Threshold for Dilutive Effect of Convertible Debt \| $ / shares		$ 73.46
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants, $10 Increase in Share Price \| shares		4.9
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants \| shares		1.4
Share Price Threshold for Dilutive Effect of Warrants \| $ / shares		$ 83.46
Convertible Debt
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 575,000,000.0
Debt Instrument, Interest Rate, Stated Percentage	0.00%	0.00%
Convertible Debt	$ 75,000,000.0
Debt Instrument, Convertible, Conversion Ratio	20.4705
Debt Instrument, Convertible, Conversion Price \| $ / shares	$ 48.85
Payments for convertible note hedges	$ 143,175,000
Debt Instrument, Convertible, Threshold Trading Days \| day	20
Debt Instrument, Convertible, Threshold Consecutive Trading Days \| day	30
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	130.00%
Debt Instrument, Redemption Price, Percentage	100.00%
Debt Instrument, Convertible, Carrying Amount of Liability Component	$ 423,400,000
Debt Instrument, Convertible, Carrying Amount of Equity Component	151,600,000
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	11,500,000
Convertible Debt Issuance Cost	10,781,000
Debt Issuance Cost, Gross, Noncurrent	707,000
Debt Instrument, Convertible, Transaction Costs Attributable to Liability Component	8,500,000
Debt Instrument, Convertible, Transaction Costs Attributable to Equity Component	3,000,000.0	$ 3,000,000.0
Remaining Term of Convertible Debt		41 months
Proceeds from issuance of warrants	$ 87,975,000
Common Class A
Debt Instrument [Line Items]
Fair value of common stock (in dollars per share) \| $ / shares		$ 22.70
Common Class A \| Convertible Debt
Debt Instrument [Line Items]
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger	98.00%

DEBT - Proceeds from Debt (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Debt Instrument [Line Items]
Payments for convertible note hedges	$ (143,200)	$ 0	$ (143,175)	$ 0
Proceeds from issuance of warrants	88,000	0	87,975	$ 0
Convertible Debt
Debt Instrument [Line Items]
Convertible Debt Par Amount	575,000	$ 575,000	$ 575,000
Convertible Debt Issuance Cost	(10,781)
Payments for convertible note hedges	(143,175)
Proceeds from issuance of warrants	87,975
Debt Issuance Cost, Gross, Noncurrent	(707)
Proceeds from Debt, Net of Issuance Costs	$ 508,312

DEBT - Components of Debt (Details) - Convertible Debt - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2018
Debt Instrument [Line Items]
Convertible Debt Par Amount	$ 575,000	$ 575,000	$ 575,000
Debt Instrument, Unamortized Discount	(109,956)	(137,719)
Unamortized Debt Issuance Expense	(6,134)	(7,683)
Convertible Debt, Noncurrent	458,910	429,598
Debt Instrument, Convertible, Carrying Amount of Equity Component, Excluding Equity Issuance Costs	$ 148,598	$ 148,598
Debt Instrument, Interest Rate, Effective Percentage	6.62%
Debt Instrument, Convertible, Transaction Costs Attributable to Equity Component	$ 3,000		$ 3,000

DEBT - Interest Expense Recognized (Details) - Convertible Debt - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Debt Instrument [Line Items]
Amortization of Debt Discount (Premium)	$ 27,764	$ 13,909
Amortization of Debt Issuance Costs	1,549	776
Interest Expense, Debt	$ 29,313	$ 14,685

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2020	$ 39,540
2021	41,909
2022	41,332
2023	40,695
2024	30,240
Thereafter	3,511
Total	197,227
Operating leases, rent expense	37,000	$ 19,000	$ 12,700
Non-contract Vendors
Loss Contingencies [Line Items]
Purchase obligation	64,800
Contract Manufacturer
Loss Contingencies [Line Items]
Purchase obligation	$ 144,900

STOCKHOLDERS’ EQUITY (Details)	Jul. 31, 2019 vote class $ / shares shares	Jul. 31, 2018 $ / shares shares	Jul. 31, 2017 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)	188,595,314	172,858,082
Common stock, shares outstanding (in shares)	188,595,314	172,858,082
Options outstanding (in shares)	8,740,309	11,332,554	20,334,531
Shares reserved for future issuance (in shares)	44,907,687
2016 Plan
Class of Stock [Line Items]
Shares reserved for future issuance (in shares)	43,504,728
RSUs
Class of Stock [Line Items]
RSUs outstanding (in shares)	22,136,072	23,597,499	17,376,090
Convertible preferred stock warrants \| Common Class B Warrant
Class of Stock [Line Items]
Warrants or issued (in shares)	34,180
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)	168,155,308	135,109,672
Common stock, shares outstanding (in shares)	168,155,308	135,109,672
Common stock number of votes per share \| vote	1
Common Class A \| 2016 Plan
Class of Stock [Line Items]
Number of shares available for grant (in shares)	12,594,167
Shares reserved for future issuance (in shares)	22,400,000
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)	20,440,006	37,748,410
Common stock, shares outstanding (in shares)	20,440,006	37,748,410
Common stock number of votes per share \| vote	10
Employee stock purchase plan
Class of Stock [Line Items]
Shares reserved for future issuance (in shares)	1,402,959

EQUITY AWARD PLANS - Additional Information (Details)				1 Months Ended	12 Months Ended
EQUITY AWARD PLANS - Additional Information (Details)	Aug. 01, 2019 shares	Aug. 01, 2018 shares	Aug. 01, 2017 shares	Oct. 31, 2016 shares	Jul. 31, 2019 USD ($) plan $ / shares shares	Jul. 31, 2018 USD ($) $ / shares shares	Jul. 31, 2017 USD ($)	Sep. 30, 2016 USD ($) purchase_period shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive plans \| plan					3
Shares reserved for future issuance (in shares)					44,907,687
Period for recognition (in years)					2 years 6 months
Vested (in shares)					8,048,364	9,660,757
Nonvested shares (in shares)					672,629	1,498,288
Grants in period, weighted average grant date fair value (in dollars per share) \| $ / shares					$ 6.41
Exercises in period, intrinsic value \| $					$ 90,300,000	$ 289,400,000	$ 73,900,000
Proceeds from stock options exercised \| $					12,200,000	33,100,000	15,600,000
Options vested in period, fair value \| $					$ 4,400,000	$ 11,500,000	16,100,000
Early exercised options (in shares)					8,740,309	11,332,554
Issuance of common stock upon exercise of stock options (in shares)					2,554,706	8,672,623
Dividend yield \| $					$ 0
Proceeds from sales of shares through employee equity incentive plans, net of repurchases \| $					$ 69,210,000	$ 72,010,000	$ 32,254,000
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)					43,504,728
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					4 years
Expiration period (in years)					10 years
Incentive Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, percent of estimated fair value					100.00%
Non-qualified Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, percent of estimated fair value					100.00%
Early Exercised Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Early exercised options (in shares)					47,691
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					11,204,016	14,947,403
Granted (in dollars per share) \| $ / shares					$ 42.23	$ 39.44
Released (in dollars per share) \| $ / shares					$ 30.15	$ 19.96
RSUs \| Market Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)					4 years 6 months
Granted (in shares)					100,000
Granted (in dollars per share) \| $ / shares					$ 25.16
Released (in dollars per share) \| $ / shares					$ 80
Instruments outstanding (in shares)					100,000
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%
Issuance of common stock from ESPP purchase (in shares)					2,008,082
Proceeds from sales of shares through employee equity incentive plans, net of repurchases \| $					$ 57,200,000
Employee Stock Options Excluding Performance Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation not yet recognized \| $					$ 744,900,000
Common Class A \| 2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)					22,400,000
Number of shares available for grant (in shares)					12,594,167
Annual increase (in shares)					18,000,000
Annual increase, percent of outstanding shares					5.00%
Number of additional shares authorized (in shares)	9,429,765	8,642,904	7,731,826
Common Class A \| Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)								3,800,000
Annual increase (in shares)								3,800,000
Annual increase, percent of outstanding shares								1.00%
Number of additional shares authorized (in shares)	1,885,953	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)					1,402,959
Principal Owner \| Incentive Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period (in years)					5 years
Exercise price, percent of estimated fair value					110.00%

EQUITY AWARD PLANS - RSU (Details) - RSUs - $ / shares	12 Months Ended
EQUITY AWARD PLANS - RSU (Details) - RSUs - $ / shares	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Number of Shares
Outstanding, beginning balance (in shares)	23,597,499	17,376,090
Granted (in shares)	11,204,016	14,947,403
Released (in shares)	(8,716,764)	(5,823,800)
Canceled/forfeited (in shares)	(3,948,679)	(2,902,194)
Outstanding, ending balance (in shares)	22,136,072	23,597,499
Grant Date Fair Value per Share
Outstanding (in dollars per share)	$ 36.72	$ 31.20	$ 18.85
Granted (in dollars per share)	42.23	39.44
Released (in dollars per share)	30.15	19.96
Canceled/forfeited (in dollars per share)	$ 33.86	$ 22.34

EQUITY AWARD PLANS - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Number of Shares
Beginning balance (in shares)	11,332,554	20,334,531
Options granted (in shares)	0	0
Options exercised (in shares)	(2,554,706)	(8,672,623)
Options canceled/forfeited (in shares)	(37,539)	(329,354)
Ending balance (in shares)	8,740,309	11,332,554	20,334,531
Exercisable (in shares)	8,720,993	11,159,045
Vested and expected to vest (in shares)	8,740,309	11,332,554
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 5.12	$ 4.59
Options granted (in dollars per share)	0	0
Options exercised (in dollars per share)	4.77	3.81
Options canceled/forfeited (in dollars per share)	10.09	6.63
Ending balance (in dollars per share)	5.20	5.12	$ 4.59
Exercisable (in dollars per share)	5.18	5.01
Vested and expected to vest (in dollars per share)	$ 5.20	$ 5.12
Additional Disclosures
Outstanding (in years)	4 years 7 months 6 days	5 years 7 months 6 days	6 years 4 months 24 days
Exercisable (in years)	4 years 7 months 6 days	5 years 6 months
Vested and expected to vest (in years)	4 years 7 months 6 days	5 years 7 months 6 days
Outstanding, intrinsic value	$ 153,000	$ 496,022	$ 338,787
Exercisable, intrinsic value	152,837	489,682
Vested and expected to vest, intrinsic value	$ 153,000	$ 496,022

EQUITY AWARD PLANS - ESPP (Details) - Employee stock purchase plan	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	25 days	22 days	22 days
Risk-free interest rate	2.50%	1.40%	0.60%
Volatility	69.00%	49.80%	51.00%
Dividend yield	0.00%	0.00%	0.00%

EQUITY AWARD PLANS - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 73,407	$ 94,832	$ 72,565	$ 65,925	$ 55,396	$ 44,946	$ 42,011	$ 35,515	$ 306,729	$ 177,868	$ 231,491
Cost of product revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,012	953	872	698	692	634	684	570	3,535	2,580	3,066
Cost of revenue, support and other services
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	4,254	4,542	3,373	3,157	2,789	1,951	2,133	2,072	15,326	8,945	10,411
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	26,426	35,257	23,462	22,606	17,301	18,051	15,942	13,766	107,751	65,060	78,117
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	32,566	42,265	34,679	31,009	25,350	16,474	17,023	15,542	140,519	74,389	109,044
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 9,149	$ 11,815	$ 10,179	$ 8,455	$ 9,264	$ 7,836	$ 6,229	$ 3,565	$ 39,598	$ 26,894	$ 30,853

EQUITY AWARD PLANS - Determination of Fair Value (Details) - Employee Stock Option	12 Months Ended
	Jul. 31, 2019 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of common stock (in dollars per share)	$ 12.14
Expected term (in years)	6 years 1 month 6 days
Risk-free interest rate	1.30%
Volatility	52.00%
Dividend yield	0.00%

NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Earnings Per Share [Abstract]
Net loss	$ (194,338)	$ (209,813)	$ (122,763)	$ (94,265)	$ (87,369)	$ (85,674)	$ (62,631)	$ (61,487)	$ (621,179)	$ (297,161)	$ (379,638)
Weighted-average shares—basic and diluted (in shares)									181,030,964	164,091,302	128,295,563
Net loss per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (1.04)	$ (1.15)	$ (0.68)	$ (0.54)	$ (0.51)	$ (0.51)	$ (0.39)	$ (0.39)	$ (3.43)	$ (1.81)	$ (2.96)

- Definition

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

+ References + Details

NET LOSS AND UNAUDITED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS - Antidilutive Securities (Details) - shares	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	33,317,966	36,599,202	39,435,334
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)	30,876,381	34,930,053	37,710,621
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)	1,659,233	1,310,653	1,447,385
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)	0	47,691	243,148
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)	748,172	276,625	0
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	34,180

INCOME TAXES - Schedule of Income Before Provision for Income Taxes, Domestic and Foreign (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Income Tax Disclosure [Abstract]
Domestic									$ (658,938)	$ (201,666)	$ (304,363)
Foreign									45,878	(88,048)	(70,423)
Loss before provision for income taxes	$ (187,224)	$ (207,390)	$ (120,553)	$ (97,893)	$ (83,251)	$ (86,517)	$ (60,718)	$ (59,228)	$ (613,060)	$ (289,714)	$ (374,786)

INCOME TAXES - Schedule of Provision for Income Taxes, Current and Deferred (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Current:
U.S. federal									$ (1,998)	$ 2,059	$ 0
State and local									312	429	193
Foreign									17,270	8,541	8,196
Total current taxes									15,584	11,029	8,389
Deferred:
U.S. federal									(4,949)	(3,387)	(1,342)
State and local									(770)	(718)	13
Foreign									(1,746)	523	(2,208)
Total deferred taxes									(7,465)	(3,582)	(3,537)
Total	$ 7,114	$ 2,423	$ 2,210	$ (3,628)	$ 4,118	$ (843)	$ 1,913	$ 2,259	$ 8,119	$ 7,447	$ 4,852

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018
New Accounting Pronouncement, Early Adoption [Line Items]
Federal statutory income tax rate	21.00%
Valuation allowance for deferred tax assets	$ 509,764	$ 226,987
Valuation allowance increase	(282,800)	$ 65,800
Unrecognized tax benefits that would impact effective tax rate	14,500
Cash and cash equivalents in foreign subsidiaries	218,000
Accounts payable and accrued liabilities	1,300
United States of America, Dollars
New Accounting Pronouncement, Early Adoption [Line Items]
Cash and cash equivalents in foreign subsidiaries	182,600
Federal
New Accounting Pronouncement, Early Adoption [Line Items]
Net operating loss carryforwards	1,400,000
Federal \| Research Credit Carryforwards
New Accounting Pronouncement, Early Adoption [Line Items]
Research credit carryforwards	75,800
State
New Accounting Pronouncement, Early Adoption [Line Items]
Net operating loss carryforwards	764,300
State \| Research Credit Carryforwards
New Accounting Pronouncement, Early Adoption [Line Items]
Research credit carryforwards	49,500
Foreign Tax Authority \| Research Credit Carryforwards
New Accounting Pronouncement, Early Adoption [Line Items]
Research credit carryforwards	$ 14,100

INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Income Tax Disclosure [Abstract]
U.S. tax reform impact									$ 0	$ 93,352	$ 0
U.S. federal income tax at statutory rate									(128,680)	(75,779)	(127,427)
Stock-based compensation									(23,378)	(73,631)	6,701
Effect of foreign operations									14,305	26,117	16,891
Change in valuation allowance									142,273	25,274	86,941
Transfer pricing adjustments									(3)	4,584	11,822
Intangible asset migration									(2,027)	4,461	0
Non-deductible expenses									4,651	2,115	1,693
State income taxes									(458)	(290)	206
Warrant revaluation									0	0	7,185
Other									1,436	1,244	840
Total	$ 7,114	$ 2,423	$ 2,210	$ (3,628)	$ 4,118	$ (843)	$ 1,913	$ 2,259	$ 8,119	$ 7,447	$ 4,852

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jul. 31, 2018
Deferred tax assets:
Net operating loss carryforward	$ 294,577	$ 162,914
Tax credit carryforward	109,921	47,839
Deferred revenue	71,859	27,577
Intangible assets	35,764	0
Stock-based compensation expense	27,493	21,252
Other assets	24,258	0
Accruals and reserves	14,825	8,370
Total deferred tax assets	578,697	267,952
Deferred tax liabilities:
Deferred commission expense	(35,814)	(27,829)
Acquisition-related	(11,515)	(5,909)
Property and equipment	(8,541)	(3,870)
Foreign branch taxes	(4,607)	0
Prepaid expenses	(2,303)	0
Other	(1,621)	(497)
Total deferred tax liabilities	(64,401)	(38,105)
Valuation allowance	(509,764)	(226,987)
Net deferred tax assets	$ 4,532	$ 2,860

INCOME TAXES INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance, beginning balance	$ 91,716	$ 42,655
Increases related to current year tax positions	13,736	58,727
Increases related to prior year tax positions	301	4,893
Decreases related to prior year tax positions	(23,782)	(14,559)
Settlements with tax authorities	(721)	0
Balance, ending balance	$ 81,250	$ 91,716

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Jul. 31, 2019 USD ($)	Apr. 30, 2019 USD ($)	Jan. 31, 2019 USD ($)	Oct. 31, 2018 USD ($)	Jul. 31, 2018 USD ($)	Apr. 30, 2018 USD ($)	Jan. 31, 2018 USD ($)	Oct. 31, 2017 USD ($)	Jul. 31, 2019 USD ($) segment	Jul. 31, 2018 USD ($)	Jul. 31, 2017 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment									1
Total revenue	$ 299,876	$ 287,624	$ 335,360	$ 313,283	$ 303,748	$ 289,413	$ 286,744	$ 275,552	$ 1,236,143	$ 1,155,457	$ 845,903
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue									682,340	648,805	488,079
Long-lived assets	$ 161,900				$ 130,000				161,900	130,000
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue									271,712	240,247	186,864
Europe, the Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue									238,356	224,392	138,815
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue									$ 43,735	$ 42,013	$ 32,145

RELATED PARTY TRANSACTIONS (Details) - Lightspeed Venture Partners	Jul. 31, 2019	Sep. 06, 2016	Jul. 31, 2016
Lightspeed Venture Partners \| Nutanix, Inc.
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners			36.70%
Lightspeed Venture Partners \| PernixData [Member]
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners		26.40%
Lightspeed Venture Partners \| Nutanix, Inc.
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners	2.30%

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Oct. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2017
Condensed Financial Statements, Captions [Line Items]
Total revenue	$ 299,876	$ 287,624	$ 335,360	$ 313,283	$ 303,748	$ 289,413	$ 286,744	$ 275,552	$ 1,236,143	$ 1,155,457	$ 845,903
Total cost of revenue	68,963	75,077	85,982	74,106	73,265	95,615	108,528	108,622	304,128	386,030	327,331
Gross profit	230,913	212,547	249,378	239,177	230,483	193,798	178,216	166,930	932,015	769,427	518,572
Sales and marketing	253,843	245,703	213,707	196,497	183,191	169,860	151,201	145,405	909,750	649,657	501,021
Research and development	129,169	137,982	123,037	110,531	97,050	81,291	70,924	64,512	500,719	313,777	288,619
General and administrative	30,420	33,040	28,788	27,339	29,472	24,929	15,948	16,052	119,587	86,401	77,341
Total operating expenses	413,432	416,725	365,532	334,367	309,713	276,080	238,073	225,969	1,530,056	1,049,835	866,981
Loss from operations	(182,519)	(204,178)	(116,154)	(95,190)	(79,230)	(82,282)	(59,857)	(59,039)	(598,041)	(280,408)	(348,409)
Other expense, net	(4,705)	(3,212)	(4,399)	(2,703)	(4,021)	(4,235)	(861)	(189)	(15,019)	(9,306)	(26,377)
Loss before provision for income taxes	(187,224)	(207,390)	(120,553)	(97,893)	(83,251)	(86,517)	(60,718)	(59,228)	(613,060)	(289,714)	(374,786)
Provision for income taxes	7,114	2,423	2,210	(3,628)	4,118	(843)	1,913	2,259	8,119	7,447	4,852
Net loss	$ (194,338)	$ (209,813)	$ (122,763)	$ (94,265)	$ (87,369)	$ (85,674)	$ (62,631)	$ (61,487)	$ (621,179)	$ (297,161)	$ (379,638)
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (1.04)	$ (1.15)	$ (0.68)	$ (0.54)	$ (0.51)	$ (0.51)	$ (0.39)	$ (0.39)	$ (3.43)	$ (1.81)	$ (2.96)
Total stock-based compensation expense	$ 73,407	$ 94,832	$ 72,565	$ 65,925	$ 55,396	$ 44,946	$ 42,011	$ 35,515	$ 306,729	$ 177,868	$ 231,491
Amortization of intangible assets	4,345	4,355	4,358	3,718	2,424	1,669	1,356	1,106	16,773	6,555
Cost of product revenue
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	1,012	953	872	698	692	634	684	570	3,535	2,580	3,066
Amortization of intangible assets	3,694	3,694	3,692	3,168	2,135	1,447	1,164	895
Cost of revenue, support and other services
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	4,254	4,542	3,373	3,157	2,789	1,951	2,133	2,072	15,326	8,945	10,411
Sales and marketing
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	26,426	35,257	23,462	22,606	17,301	18,051	15,942	13,766	107,751	65,060	78,117
Amortization of intangible assets	651	661	666	550	289	222	192	211
Research and development
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	32,566	42,265	34,679	31,009	25,350	16,474	17,023	15,542	140,519	74,389	109,044
General and administrative
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	9,149	11,815	10,179	8,455	9,264	7,836	6,229	3,565	39,598	26,894	30,853
Product
Condensed Financial Statements, Captions [Line Items]
Total revenue	186,347	184,794	236,932	224,346	224,650	221,117	223,170	219,052	832,419	887,989	673,297
Total cost of revenue	28,323	29,528	45,966	39,261	41,068	66,680	83,217	85,162	143,078	276,127	249,393
Support, entitlements and other services
Condensed Financial Statements, Captions [Line Items]
Total revenue	113,529	102,830	98,428	88,937	79,098	68,296	63,574	56,500	403,724	267,468	172,606
Total cost of revenue	$ 40,640	$ 45,549	$ 40,016	$ 34,845	$ 32,197	$ 28,935	$ 25,311	$ 23,460	$ 161,050	$ 109,903	$ 77,938

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 114,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 114,000