0001618732-20-000112 | 10-K | XBRL Viewer

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COVER PAGE - USD ($) $ in Billions	12 Months Ended
COVER PAGE - USD ($) $ in Billions	Jul. 31, 2020	Aug. 31, 2020	Jan. 31, 2020
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jul. 31, 2020
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 5.9
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE As noted herein, the information called for by Parts II and III is incorporated by reference to specified portions of the registrant’s definitive proxy statement to be filed in conjunction with the registrant’s 2020 annual meeting of stockholders, which is expected to be filed not later than 120 days after the registrant's fiscal year ended July 31, 2020.
Entity Central Index Key	0001618732
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		186,885,682
Common Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		15,102,453

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Jul. 31, 2020

Jul. 31, 2019

Current assets:

Cash and cash equivalents

$ 318,737

$ 396,678

Short-term investments

401,041

512,156

Accounts receivable—net

242,516

245,475

Deferred commissions—current

68,694

46,238

Prepaid expenses and other current assets

63,032

74,665

Total current assets

1,094,020

1,275,212

Property and equipment, net

143,172

136,962

Operating lease right-of-use assets

^[1]

127,326

Deferred commissions—non-current

146,834

107,474

Intangible assets—net

49,392

66,773

Goodwill

185,260

185,180

Other assets—non-current

22,543

14,441

Total assets

1,768,547

1,786,042

Current liabilities:

Accounts payable

54,029

74,047

Accrued compensation and benefits

109,109

99,804

Accrued expenses and other current liabilities (1)

^[1]

25,924

28,797

Deferred revenue—current

534,572

396,667

Operating lease liabilities—current

^[1]

36,569

Total current liabilities

760,203

599,315

Deferred revenue—non-current

648,869

513,377

Operating lease liabilities—non-current

^[1]

116,794

Convertible senior notes, net

490,222

458,910

Other liabilities—non-current (1)

^[1]

27,436

27,547

Total liabilities

2,043,524

1,599,149

Commitments and contingencies (Note 8)

Stockholders’ (deficit) equity:

Preferred stock

Common stock

Additional paid-in capital

2,245,180

1,835,528

Accumulated other comprehensive income

2,030

669

Accumulated deficit

(2,522,192)

(1,649,309)

Total stockholders’ equity (deficit)

(274,977)

186,893

Total liabilities and stockholders’ equity (deficit)

$ 1,768,547

$ 1,786,042

[1]

During the first quarter of fiscal 2020, we adopted Accounting Standards Update ("ASU") No. 2016-02 using the modified retrospective method and elected the transition option that allowed us not to restate the comparative periods in our condensed consolidated financial statements in the year of adoption. For additional details, refer to Note 1.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Accounts receivable, allowance	$ 804	$ 379
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)	201,949,000	188,595,000
Common stock, shares outstanding (in shares)	201,949,000	188,595,000
Common Class A
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	186,846,000	168,155,000
Common stock, shares outstanding (in shares)	186,846,000	168,155,000
Common Class B
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	15,103,000	20,440,000
Common stock, shares outstanding (in shares)	15,103,000	20,440,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								6 Months Ended		12 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Revenue:
Total revenue	$ 327,874	$ 318,273	$ 346,767	$ 314,768	$ 299,876	$ 287,624	$ 335,360	$ 313,283			$ 1,307,682	$ 1,236,143	$ 1,155,457
Cost of revenue:
Total cost of revenue	66,971	72,294	75,223	72,201	68,963	75,077	85,982	74,106			286,689	304,128	386,030
Gross profit	260,903	245,979	271,544	242,567	230,913	212,547	249,378	239,177			1,020,993	932,015	769,427
Operating expenses:
Sales and marketing	264,453	299,162	304,936	291,838	253,843	245,703	213,707	196,497			1,160,389	909,750	649,657
Research and development	135,338	141,346	139,088	138,206	129,169	137,982	123,037	110,531			553,978	500,719	313,777
General and administrative	32,464	35,644	34,579	32,860	30,420	33,040	28,788	27,339			135,547	119,587	86,401
Total operating expenses	432,255	476,152	478,603	462,904	413,432	416,725	365,532	334,367			1,849,914	1,530,056	1,049,835
Loss from operations	(171,352)	(230,173)	(207,059)	(220,337)	(182,519)	(204,178)	(116,154)	(95,190)			(828,921)	(598,041)	(280,408)
Other expense, net	(9,757)	(5,640)	(5,863)	(5,040)	(4,705)	(3,212)	(4,399)	(2,703)			(26,300)	(15,019)	(9,306)
Loss before provision for income taxes	(181,109)	(235,813)	(212,922)	(225,377)	(187,224)	(207,390)	(120,553)	(97,893)			(855,221)	(613,060)	(289,714)
Provision for income taxes	4,239	4,858	4,642	3,923	7,114	2,423	2,210	(3,628)		$ 7,447	17,662	8,119	7,447
Net loss	$ (185,348)	$ (240,671)	$ (217,564)	$ (229,300)	$ (194,338)	$ (209,813)	$ (122,763)	$ (94,265)			$ (872,883)	$ (621,179)	$ (297,161)
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (0.93)	$ (1.23)	$ (1.13)	$ (1.21)	$ (1.04)	$ (1.15)	$ (0.68)	$ (0.54)	$ (3.43)	$ (1.81)	$ (4.48)	$ (3.43)	$ (1.81)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders—basic and diluted (in shares)											194,719	181,031	164,091
Product
Revenue:
Total revenue	$ 179,075	$ 180,756	$ 213,547	$ 192,444	$ 186,347	$ 184,794	$ 236,932	$ 224,346			$ 765,822	$ 832,419	$ 887,989
Cost of revenue:
Total cost of revenue	13,413	15,990	20,676	21,233	28,323	29,528	45,966	39,261			71,312	143,078	276,127
Support, entitlements and other services
Revenue:
Total revenue	148,799	137,517	133,220	122,324	113,529	102,830	98,428	88,937			541,860	403,724	267,468
Cost of revenue:
Total cost of revenue	$ 53,558	$ 56,304	$ 54,547	$ 50,968	$ 40,640	$ 45,549	$ 40,016	$ 34,845			$ 215,377	$ 161,050	$ 109,903

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (872,883)	$ (621,179)	$ (297,161)
Other comprehensive (loss) income, net of tax:
Change in unrealized (loss) gain on available-for-sale securities, net of tax	1,361	1,671	(896)
Comprehensive loss	$ (871,522)	$ (619,508)	$ (298,057)

- Definition

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

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+ Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Common stock, shares outstanding, beginning balance (in shares) at Jul. 31, 2017		154,637,000
Stockholders' (deficit) equity, beginning balance at Jul. 31, 2017	$ 217,063	$ 4	$ 948,134	$ (106)	$ (730,969)
Increase (Decrease) in Stockholders' Deficit
Issuance of common stock for stock awards, net of repurchases (in shares)		14,493,000
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)		2,418,000
Issuance of common stock from ESPP purchase	39,009		39,009
Issuance of common stock for acquisitions (in shares)		1,310,000
Issuance of common stock in connection with business combinations	63,780		63,780
Vesting of early exercised stock options	681		681
Stock-based compensation	177,868		177,868
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)
Sale of warrants related to the convertible senior notes	87,975		87,975
Other comprehensive income	(896)			(896)
Net loss	(297,161)				(297,161)
Common stock, shares outstanding, ending balance (in shares) at Jul. 31, 2018		172,858,000
Stockholders' (deficit) equity, ending balance at Jul. 31, 2018	326,779	$ 4	1,355,907	(1,002)	(1,028,130)
Increase (Decrease) in Stockholders' Deficit
Issuance of common stock for stock awards, net of repurchases (in shares)		11,272,000
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)		2,008,000
Issuance of common stock from ESPP purchase	57,218	$ 1	57,217
Issuance of common stock for acquisitions (in shares)		2,457,000
Issuance of common stock in connection with business combinations	103,305		103,305
Vesting of early exercised stock options	183		183
Stock-based compensation	306,729		306,729
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	188,595,000	188,595,000
Stockholders' (deficit) equity, ending balance at Jul. 31, 2019	$ 186,893	$ 5	1,835,528	669	(1,649,309)
Increase (Decrease) in Stockholders' Deficit
Issuance of common stock for stock awards, net of repurchases (in shares)		10,034,000
Issuance of common stock through employee equity incentive plans, net of repurchases	7,024		7,024
Issuance of common stock from ESPP purchase (in shares)		3,320,000
Issuance of common stock from ESPP purchase	50,630		50,630
Stock-based compensation	351,998		351,998
Other comprehensive income	1,361			1,361
Net loss	$ (872,883)				(872,883)
Common stock, shares outstanding, ending balance (in shares) at Jul. 31, 2020	201,949,000	201,949,000
Stockholders' (deficit) equity, ending balance at Jul. 31, 2020	$ (274,977)	$ 5	$ 2,245,180	$ 2,030	$ (2,522,192)

CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands

12 Months Ended

Jul. 31, 2020

USD ($)

Jul. 31, 2019

USD ($)

Jul. 31, 2018

USD ($)

Cash flows from operating activities:

Net loss

$ (872,883)

$ (621,179)

$ (297,161)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

93,773

77,612

50,302

Stock-based compensation

351,998

306,729

177,868

Amortization of debt discount and issuance cost

31,313

29,313

14,685

Change in fair value of contingent consideration

(832)

(2,423)

Operating lease cost, net of accretion

30,374

Impairment of lease-related assets

3,002

Other

324

(2,786)

(962)

Changes in operating assets and liabilities:

Accounts receivable, net

4,334

15,704

(79,273)

Deferred commissions

(61,816)

(39,333)

(40,852)

Prepaid expenses and other assets

10,089

^[1]

(12,037)

^[1]

(37,374)

^[1]

Accounts payable

(16,574)

13,508

(16,469)

Accrued compensation and benefits

18,765

14,406

27,877

Accrued expenses and other liabilities

3,400

(17,454)

34,295

Operating leases, net

(28,394)

Deferred revenue

272,410

278,517

262,027

Net cash provided by operating activities

(159,885)

^[1]

42,168

^[1]

92,540

^[1]

Cash flows from investing activities:

Purchases of investments

(607,194)

(468,144)

(716,417)

Maturities of investments

645,828

588,763

297,461

Sales of investments

75,413

Purchases of property and equipment

(89,488)

(118,452)

(62,372)

Payments for business combinations, net of cash and restricted cash acquired

(19,017)

(22,227)

Net cash (used in) provided by investing activities

24,559

(16,850)

(503,555)

Cash flows from financing activities:

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

57,797

69,210

72,010

Payment of contingent consideration associated with a business combination

(1,040)

Payment of debt in conjunction with business combinations

(991)

(1,696)

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)

Net cash provided by financing activities

57,797

67,104

578,616

Net increase in cash, cash equivalents and restricted cash

(77,529)

^[1]

167,601

^[1]

Cash, cash equivalents and restricted cash—beginning of period

399,520

^[1]

307,098

^[1]

139,497

^[1]

Cash, cash equivalents and restricted cash—end of period

321,991

^[1]

399,520

^[1]

307,098

^[1]

Restricted cash

3,254

^[1],[2]

2,842

^[1],[2]

1,123

^[1],[2]

Cash and cash equivalents—end of period

318,737

$ 396,678

305,975

Supplemental disclosures of cash flow information:

Cash paid for income taxes

16,625

$ 10,116

Supplemental disclosures of non-cash investing and financing information:

Issuance of common stock for business combinations

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

4,630

Vesting of early exercised stock options

$ 0

[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, 2020

Accounting Policies [Abstract]

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, which we call the Nutanix Cloud Platform, that consists of software solutions and cloud services that power our customers’ hybrid cloud and multicloud strategies. We seek to provide an enterprise cloud platform that empowers our customers to unify various clouds - private, public, distributed - into one seamless cloud, allowing enterprises to choose the right cloud for each application. Our enterprise cloud platform allows enterprises to simplify the complexities of a multicloud environment with automation, cost governance and compliance. Our solutions are primarily sold through channel partners, including distributors, resellers and original equipment manufacturers ("OEMs") (collectively, "Partners"), and delivered directly to our end customers.

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 and assumptions include, but are not limited to, the best estimate of selling prices for products and related support; useful lives and recoverability 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; purchase commitment liabilities to our OEMs; sales commissions expense and the period of benefit for deferred commissions; whether an arrangement is or contains a lease; the incremental borrowing rate to measure the present value of operating right-of-use assets and lease liabilities; 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.

In response to the ongoing and rapidly evolving COVID-19 pandemic, we considered the impact of the estimated economic implications on our critical and significant accounting estimates, including assessment of collectibility of customer contracts, valuation of accounts receivable, provision for purchase commitments to our OEMs and impairment of long-lived assets, right-of-use assets, and deferred commissions.

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 our Partners and occasionally directly to end customers. For the fiscal years ended July 31, 2018, 2019 and 2020, 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,
Partners	2018		2019		2020		2019		2020
Partner A	18	%	24	%	29	%	27	%	33	%
Partner B	13	%	13	%	14	%	18	%	16	%
Partner C	10	%	10	%	⁽¹⁾		⁽¹⁾		⁽¹⁾
Partner D	20	%	10	%	⁽¹⁾		⁽¹⁾		⁽¹⁾

(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 0% Convertible Senior Notes, due in January 2023 (the "2023 Notes") is determined based on the closing trading price per $100 of the 2023 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,
	2018		2019		2020
	(in thousands)
Allowance for doubtful accounts—beginning balance	$	132	$	815	$	379
Charged to allowance for doubtful accounts	815		437		822
Recoveries	—		(290)		(22)
Write-offs	(132)		(583)		(375)
Allowance for doubtful accounts—ending balance	$	815	$	379	$	804

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.

Leases

We determine if an arrangement is or contains a lease at inception by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date when the leased assets are made available for our use. Operating leases are included in operating lease right-of-use assets, operating lease liabilities—current and operating lease liabilities—non-current in our consolidated balance sheet as of July 31, 2020. We did not have any material financing leases in the periods presented.

Operating lease right-of-use assets ("ROU assets") represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist primarily of fixed payments under the arrangement, less any lease incentives, such as rent holidays. Variable lease payments not dependent on an index or a rate are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance, property taxes and utilities. We use an estimate of our incremental borrowing rate ("IBR") based on the information available at the lease commencement date in determining the present value of lease payments, unless the implicit rate is readily determinable. In determining the appropriate IBR, we consider information including, but not limited to, our credit rating, the lease term and the currency in which the arrangement is denominated. For leases which commenced prior to our adoption of Accounting Standards Update ("ASU") 2016-02, Leases ("ASC 842"), we used the IBR as of August 1, 2019. Our lease terms may include renewal options, which are not included in the lease terms for calculating our lease liability, as we are not reasonably certain that we will exercise these renewal options at the time of the lease commencement. Lease costs are recognized on a straight-line basis as operating expenses within our consolidated statements of operations. We present lease payments within cash flows from operations within the consolidated statements of cash flows.

For our operating leases, we elected to account for lease and non-lease components as a single lease component. Additionally, we do not record leases on the consolidated balance sheet that have a lease term of 12 months or less at the lease commencement date.

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 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 material impairment losses during fiscal 2018, 2019 or 2020.

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 standalone selling price ("SSP") basis. For deliverables that we routinely sell separately, such as software entitlement and support subscriptions on our core offerings, we determine SSP by evaluating the standalone sales over the trailing 12 months. For those that are not sold routinely, we determine SSP based on our overall pricing trends and objectives, taking into consideration market conditions and other factors, including the value of our contracts, the products sold and geographic locations.

Contract balances — The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is recognized in the period we deliver goods or provide services, or when our right to consideration is unconditional. In situations where revenue recognition occurs before invoicing, an unbilled receivable is created, which represents a contract asset. Unbilled accounts receivable, included in accounts receivable, net on the consolidated balance sheets, was not material for any of the periods presented.

Payment terms on invoiced amounts are typically 30-45 days. The balance of accounts receivable, net of allowance for doubtful accounts, as of July 31, 2019 and 2020 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.

Taxes assessed by a government authority that are both imposed on and concurrent with specific revenue transactions between us and our customers are presented on a net basis in our consolidated statements of operations.

Deferred revenue — Deferred revenue primarily consists of amounts that have been invoiced but not yet recognized as revenue and primarily pertain to software entitlement and 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 sold by us 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 OEMs 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 OEMs 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, 2018, 2019 and 2020, we recognized foreign currency losses of $3.6 million, $2.5 million and $9.4 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, 2018, 2019 and 2020, advertising expense was $14.6 million, $26.7 million and $38.7 million, respectively.

Recently Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (the "FASB") issued ASC 842, which requires the recognition of ROU assets and lease liabilities on the consolidated balance sheets and additional disclosures around key information about leasing arrangements. We adopted the standard effective August 1, 2019, using a modified retrospective transition method. As a result, our consolidated balance sheet as of July 31, 2019 was not restated and continued to be reported under the previous lease standard ("ASC 840"), and is therefore not comparative. We elected the package of practical expedients permitted under the transition guidance, which allowed us to not reassess whether existing arrangements contain leases, not reassess lease classification and not reassess initial direct costs. The standard had a material impact on our consolidated balance sheet, but did not have an impact on our consolidated statement of operations or cash flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. We recognized ROU assets and lease liabilities of $120.2 million and $142.1 million, respectively, on our consolidated balance sheet on August 1, 2019, which included reclassifying lease incentives, prepaid rent and deferred rent as components of the ROU asset. The difference between the total ROU assets and total lease liabilities recorded as of August 1, 2019 was due primarily to the derecognition of deferred rent liabilities that were included in accrued expenses and other current liabilities and other liabilities—non-current in our consolidated balance sheet as of July 31, 2019. The operating lease ROU asset also includes any lease payments made prior to commencement date and excludes lease incentives. Refer to Note 7 for additional details.

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. We adopted the new standard effective August 1, 2019 and the adoption had no impact on our consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarify and amend existing guidance. The new standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted, including interim reporting periods within those fiscal years. We early adopted the new standard effective November 1, 2019 and the adoption had no impact in our consolidated financial statements.

Recently Issued and Not Yet Adopted Accounting Pronouncements

BUSINESS COMBINATIONS

12 Months Ended

Jul. 31, 2020

Business Combinations [Abstract]

BUSINESS COMBINATIONS

We completed one acquisition in fiscal 2019. We did not complete any acquisitions in fiscal 2020. The purchase price allocation for the fiscal 2019 acquisition, discussed in detail below, reflects various fair value estimates and analyses, including certain tangible assets acquired and liabilities assumed, the valuation of intangible assets acquired, income taxes and goodwill, which were subject to change within the measurement period as preliminary valuations were 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, 2019 and 2020 include the operations of the acquired company from the date the deal closed. Pro forma results of operations have not been presented because they are not material to our consolidated financial statements. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The goodwill recognized in this acquisition is primarily attributable to the synergies expected from the expanded market opportunities with our offerings and the knowledgeable and experienced workforce that joined us as part of the acquisition. Goodwill will not be amortized, but will instead be tested for impairment annually, or more frequently if certain indicators of impairment are present.

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, were 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 included 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.

The following table presents the aggregate purchase price allocation related to the Frame acquisition:


	As of July 31, 2019
	(in thousands)
Goodwill	$	97,328
Amortizable intangible assets	38,180
Tangible assets acquired	10,811
Liabilities assumed	(16,293)
Total consideration	$	130,026

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

12 Months Ended

Jul. 31, 2020

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 in some cases 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,
	2018		2019		2020
	(in thousands)
Subscription	$	330,645	$	648,415	$	1,030,180
Non-portable software	543,952		449,131		208,158
Hardware	257,314		105,321		23,455
Professional services	23,546		33,276		45,889
Total revenue	$	1,155,457	$	1,236,143	$	1,307,682

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 $243.9 million, $376.4 million and $508.8 million of our subscription revenue for fiscal 2018, 2019 and 2020, 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 $86.7 million, $272.0 million and $521.3 million of our subscription revenue for fiscal 2018, 2019 and 2020, respectively.

Non-portable software revenue — 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 deferred commissions (contract asset) for the periods presented are as follows:


	Deferred Revenue		Deferred Commissions
	(in thousands)
Balance as of July 31, 2018	$	631,207	$	114,379
Additions	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
Additions	815,257		233,917
Revenue/commissions recognized	(541,860)		(172,101)
Balance as of July 31, 2020	$	1,183,441	$	215,528

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. During the fiscal year ended July 31, 2020, we recognized revenue of approximately $371.8 million pertaining to amounts deferred as of July 31, 2019.

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 $1.2 billion as of July 31, 2020, of which we expect to recognize approximately 46% over the next 12 months, and the remainder thereafter.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

FAIR VALUE MEASUREMENTS

12 Months Ended

Jul. 31, 2020

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, 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


	As of July 31, 2020
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	142,936	$	—	$	—	$	142,936
Commercial paper	—		8,999		—		8,999


Short-term investments:
Corporate bonds	—		345,265		—		345,265
Commercial paper	—		29,702		—		29,702
U.S. government securities	—		26,074		—		26,074
Total measured at fair value	$	142,936	$	410,040	$	—	$	552,976
Cash							166,802
Total cash, cash equivalents and short-term investments							$	719,778

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value, with the exception of the 2023 Notes. Financial instruments that are not recorded at fair value on a recurring basis 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, 2019						As of July 31, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(in thousands)
Convertible senior notes, net	$	458,910	$	527,275	$	490,222	$	529,385

The carrying value of the 2023 Notes as of July 31, 2019 and 2020 was net of the unamortized debt discount of $110.0 million and $80.3 million, respectively, and unamortized debt issuance costs of $6.1 million and $4.5 million, respectively.

The total estimated fair value of the 2023 Notes was determined based on the closing trading price per $100 of the 2023 Notes as of the last day of trading for the period. We consider the fair value of the 2023 Notes to be a Level 2 measurement due to the limited trading activity.

- 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, 2020

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, 2019 and 2020, unrealized gains and losses from our short-term investments were not material. As of July 31, 2019 and 2020, unrealized losses from securities that were in an unrealized loss position for more than 12 months were not material. Unrealized losses related to our short-term investments are due to interest rate fluctuations, as opposed to credit quality. As a result, at July 31, 2019 and 2020, we did not record any 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, 2020
	(in thousands)
Due within one year	$	298,074
Due in one to two years	102,967
Total	$	401,041

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consists of the following:


	As of July 31,
	2019		2020
	(in thousands)
Prepaid operating expenses	$	37,864	$	31,690
Tenant improvement allowance receivables	—		8,557
VAT receivables	5,068		8,381
Prepaid income taxes	19,690		—
Other current assets	12,043		14,404
Total prepaid expenses and other current assets	$	74,665	$	63,032

The decrease in prepaid expenses and other current assets from July 31, 2019 to July 31, 2020 was due primarily to the receipt of an $18.0 million corporate income tax refund in the first quarter of fiscal 2020, partially offset by the addition of $8.6 million of tenant improvement allowances, which are recorded within prepaid expenses and other current assets on the consolidated balance sheet as of July 31, 2020 as a result of our adoption of ASC 842 during the first quarter of fiscal 2020.

Property and Equipment, Net

Property and equipment, net consists of the following:


	Estimated Useful Life	As of July 31,
				2019		2020
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	200,762	$	245,245
Demonstration units	12	59,981		66,569
Leasehold improvements	⁽¹⁾	46,520		65,557
Furniture and fixtures	60	12,868		17,026
Total property and equipment, gross		320,131		394,397
Less: accumulated depreciation ⁽²⁾		(183,169)		(251,225)
Total property and equipment, net		$	136,962	$	143,172

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

(2)Includes a $1.2 million write-off related to the impairment of certain leasehold improvements for the fiscal quarter ended January 31, 2020. For additional information on this lease-related impairment, refer to Note 7.

Depreciation expense related to our property and equipment was $43.7 million, $60.8 million and $76.4 million for the fiscal years ended July 31, 2018, 2019 and 2020, respectively.

Intangible Assets, Net

Intangible assets, net consists of the following:


	As of July 31,
	2019		2020
	(in thousands)
Developed technology	$	79,300	$	79,300
Customer relationships	8,860		8,860
Trade name	4,170		4,170
Total intangible assets, gross	92,330		92,330
Less:
Accumulated amortization of developed technology	(21,210)		(35,987)
Accumulated amortization of customer relationships	(3,392)		(4,953)
Accumulated amortization of trade name	(955)		(1,998)
Total accumulated amortization	(25,557)		(42,938)
Total intangible assets, net	$	66,773	$	49,392

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,
	2019		2020
	(in thousands)
Intangible assets, net—beginning balance	$	45,366	$	66,773
Acquired intangible assets	38,180		—
Amortization of intangible assets ⁽¹⁾	(16,773)		(17,381)
Intangible assets, net—ending balance	$	66,773	$	49,392

(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)
2021	$	17,380
2022	16,183
2023	10,856
2024	3,210
2025	1,763

Total	$	49,392

Goodwill

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


	Carrying Amount
	(in thousands)
Balance at July 31, 2018	$	87,759
Acquired in Frame Acquisition	97,328
Other	93
Balance at July 31, 2019	185,180
Other	80
Balance at July 31, 2020	$	185,260

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:


	As of July 31,
	2019		2020
	(in thousands)
Accrued commissions	$	31,703	$	33,503
Accrued vacation	15,475		24,006
Contributions to ESPP withheld	20,778		16,563
Payroll taxes payable	8,504		10,742
Accrued benefits	6,819		8,426
Accrued bonus	11,413		5,568
Other	5,112		10,301
Total accrued compensation and benefits	$	99,804	$	109,109

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:


	As of July 31,
	2019		2020
	(in thousands)
Income taxes payable	$	9,651	$	9,703
Accrued professional services	2,996		3,006
Other	16,150		13,215
Total accrued expenses and other current liabilities	$	28,797	$	25,924

CONVERTIBLE SENIOR NOTES

12 Months Ended

Jul. 31, 2020

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, in a private placement to qualified institutional buyers pursuant to Rule144A under the Securities Act. This included $75.0 million in aggregate principal amount of the 2023 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 2023 Notes. The total net proceeds from the 2023 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 2023 Notes do not bear any interest and will mature on January 15, 2023, unless earlier converted or repurchased in accordance with their terms. The 2023 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 2023 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:

1)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 2023 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 $22.19 on July 31, 2020, the if-converted value of the 2023 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, 2020. As such, the 2023 Notes are not convertible for the fiscal quarter commencing after July 31, 2020.

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 2023 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 2023 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 2023 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 2023 Notes prior to the maturity date, and no sinking fund is provided for the 2023 Notes.

In accounting for the issuance of the 2023 Notes, we separated the 2023 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 2023 Notes. The difference between the principal amount of the 2023 Notes and the liability component (the "debt discount") is amortized to interest expense using the effective interest method over the term of the 2023 Notes. The equity component of the 2023 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 2023 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 2023 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 2023 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 2023 Notes consisted of the following:


	As of July 31,
	2019		2020
	(in thousands)
Principal amounts:
Principal	$	575,000	$	575,000
Unamortized debt discount ⁽¹⁾	(109,956)		(80,298)
Unamortized debt issuance costs ⁽¹⁾	(6,134)		(4,480)
Net carrying amount	$	458,910	$	490,222
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 2023 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, 2020, the remaining life of the 2023 Notes was approximately 29 months.

The following table sets forth the total interest expense recognized related to the 2023 Notes:


	Fiscal Year Ended July 31,
	2018		2019		2020
	(in thousands)
Interest expense related to amortization of debt discount	$	13,909	$	27,764	$	29,658
Interest expense related to amortization of debt issuance costs	776		1,549		1,654
Total interest expense	$	14,685	$	29,313	$	31,312

Note Hedges and Warrants

Concurrently with the offering of the 2023 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 2023 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, 2019 and 2020. 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 2023 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 2023 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 2023 Notes when the price of our Class A common stock exceeds the conversion price. Under this method, the cumulative dilutive effect of the 2023 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 2023 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 2023 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.

LEASES

12 Months Ended

Jul. 31, 2020

Leases [Abstract]

LEASES

We have operating leases for offices, research and development facilities and datacenters. Our leases have remaining lease terms of one year to approximately nine years, some of which include options to renew or terminate. We do not include renewal options in the lease terms for calculating our lease liability, as we are not reasonably certain that we will exercise these renewal options at the time of the lease commencement. Our lease agreements do not contain any residual value guarantees or restrictive covenants.

Total operating lease cost was $39.1 million for the fiscal year ended July 31, 2020, excluding short-term lease costs, variable lease costs and sublease income, each of which were not material. Variable lease costs primarily include common area maintenance charges. Total lease expense recognized prior to our adoption of ASC 842 was $19.0 million and $37.0 million for the fiscal years ended July 31, 2018 and 2019, respectively.

During the second quarter of fiscal 2020, we ceased using certain office spaces in Bangalore, India. As the carrying value of the related right-of-use assets exceeded fair value, we recorded a $3.0 million impairment in our consolidated statements of operations for the fiscal year ended July 31, 2020. Of the $3.0 million impairment, approximately $1.8 million relates to the impairment of the operating lease right-of-use assets and approximately $1.2 million relates to the impairment of leasehold improvements. Additional charges related to asset impairments may be recorded in the future.

Supplemental balance sheet information related to leases is as follows:


	As of July 31, 2020
	(in thousands)
Operating leases:
Operating lease right-of-use assets, gross	$	159,292

Accumulated amortization	(31,966)
Operating lease right-of-use assets, net	$	127,326

Operating lease liabilities—current	$	36,569
Operating lease liabilities—non-current	116,794
Total operating lease liabilities	$	153,363

Weighted average remaining lease term (in years):	3.7
Weighted average discount rate:	5.3		%

Supplemental cash flow and other information related to leases is as follows:


	Fiscal Year Ended July 31, 2020
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	42,231
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	45,278

The undiscounted cash flows for our operating lease liabilities as of July 31, 2020 were as follows:


Fiscal Year Ending July 31:	Amount
	(in thousands)
2021	$	43,874
2022	44,953
2023	43,313
2024	30,762
2025	5,158
Thereafter	3,414
Total lease payments	171,474
Less: imputed interest	(18,111)
Total lease obligation	153,363
Less: current lease obligations	(36,569)
Long-term lease obligations	$	116,794

As of July 31, 2020, we have additional operating lease commitments of approximately $11.1 million on an undiscounted basis for certain office leases that have not yet commenced. These operating leases will commence during fiscal 2021 and fiscal 2022, with lease terms of two to six years.

As previously disclosed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2019, the following table summarizes the future minimum payments due under our operating leases as of July 31, 2019, reported under ASC 840:


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

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Jul. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Purchase Commitments In the normal course of business, we make commitments with our 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, 2020, we had up to approximately $62.5 million of non-cancelable purchase obligations and other commitments pertaining to our daily business operations, and up to approximately $81.2 million in the form of guarantees to certain of our 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 then filed a consolidated amended complaint (the "Original Complaint"). The action was brought on behalf of those who purchased or otherwise acquired our stock between November 30, 2017 and May 30, 2019, inclusive. The defendants subsequently filed a motion to dismiss the Original Complaint, and the court granted that motion on March 9, 2020, while providing the lead plaintiff leave to amend. On April 17, 2020, the lead plaintiff filed a second amended complaint (the "Current Complaint"), again naming us and two of our officers as defendants. The Current Complaint alleges the same class period, includes many of the same factual allegations as the Original Complaint, and again alleges that the defendants violated Sections 10(b) and 20(a) of the Exchange Act, as well as SEC Rule 10b-5. The Current Complaint seeks monetary damages in an unspecified amount. On May 22, 2020, the Company and the individual defendants filed a motion to dismiss the Current Complaint, which was denied on September 11, 2020. The litigation is still in early stages, and we plan to continue to vigorously defend against the allegations and we are not able to determine what, if any, liabilities will attach to the Current Complaint. 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 officers and directors as defendants and (ii) the Company as a nominal defendant. The complaints generally alleged 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 alleged insider trading and violation of California Corporations Code Section 25402, and the Santa Clara County Superior Court complaints further included additional claims for "abuse of control" and "gross mismanagement." On January 7, 2020, the U.S. District Court for the North District of California consolidated the federal actions and, on March 6, 2020, the plaintiffs filed a stipulation designating a lead plaintiff and deeming the lead plaintiff’s original complaint as the designated complaint in the matter. On April 22, 2020, (i) the individual defendants filed a motion to dismiss the designated complaint on the grounds that it fails to state a claim, and (ii) we filed a motion to dismiss the designated complaint on the grounds that the plaintiffs failed to make a demand on our Board of Directors before filing the designated complaint. In response, the plaintiffs filed an amended complaint on June 17, 2020. The defendants filed motions to dismiss the amended complaint on July 17, 2020. A hearing on the motions to dismiss is scheduled for September 23, 2020. In August 2019, the Superior Court of California for the County of Santa Clara consolidated the Santa Clara derivative actions into a single action and, in January 2020, the court stayed the consolidated Santa Clara action in deference to the federal derivative actions described above. On September 17, 2019, the Superior Court of California for the County of San Mateo granted the plaintiff’s request for voluntary dismissal without prejudice. The remaining derivative cases are in the very early stages and we are not able to determine what, if any, liabilities will attach to those 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, 2020

Equity [Abstract]

STOCKHOLDERS’ EQUITY

STOCKHOLDERS’ EQUITY We have two classes of authorized common stock, Class A common stock and Class B common stock. As of July 31, 2020, we had one billion shares of Class A common stock authorized, with a par value of $0.000025 per share, and 200 million shares of Class B common stock authorized, with a par value of $0.000025 per share. As of July 31, 2020, we had 186.8 million shares of Class A common stock issued and outstanding and 15.1 million 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, 2020, we had reserved shares of common stock for future issuance as follows:


			As of July 31, 2020
			(in thousands)
Shares reserved for future equity grants			12,724
Shares underlying outstanding stock options			7,546
Shares underlying outstanding restricted stock units			22,632
Shares reserved for future employee stock purchase plan awards			9,169

Total			52,071

EQUITY AWARD PLANS

12 Months Ended

Jul. 31, 2020

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 restricted stock units ("RSUs"), or until those stock awards become vested or expired by their terms.

Under the 2016 Plan, we may grant incentive stock options, non-statutory stock options, restricted stock, RSUs and stock appreciation rights to employees, directors and consultants. We initially reserved 22.4 million 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: 18.0 million 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, 2018 and 2019, the number of shares of Class A common stock available for issuance under the 2016 Plan increased by 8.6 million and 9.4 million shares, respectively, pursuant to these provisions. As of July 31, 2020, we had reserved a total of 42.9 million shares for the issuance of equity awards under the Stock Plans, of which 12.7 million shares were still available for grant. On August 1, 2020, the number of shares of Class A common stock available for issuance under the 2016 Plan increased by 10.1 million shares pursuant to the automatic increase provisions.

Restricted Stock Units

Performance RSUs — We have granted 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, 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.

In December 2019, the Compensation Committee of our Board of Directors approved the grant of 200,000 additional MSUs to our Chief Executive Officer, with a weighted average grant date fair value per unit of $20.80. The MSUs will vest based upon the achievement of an average stock price of $65 over a performance period of approximately 4.5 years (the "Second Performance Period"), subject to his continuous service on each vesting date.

In February 2020, the Compensation Committee of our Board of Directors approved the grant of 75,000 MSUs to our Executive Vice President of Worldwide Sales, with a weighted average grant date fair value per unit of $20.80. The MSUs will vest based upon the achievement of an average stock price of $65 over a performance period of approximately 3.9 years (the "Second 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 "Second Average Stock Price"). The Second Average Stock Price is measured once per quarter during the Second Performance Period, and:

•If the Second Average Stock Price on any given quarterly measurement date does not equal or exceed $65, 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 Second Average Stock Price on any given quarterly measurement date equals or exceeds $65, then 1/18th of the MSUs plus the applicable Carryover MSUs, if any, would vest; and/or

•If the Second Average Stock Price never equals or exceeds $65 during the Second Performance Period, the MSUs would terminate at the end of the Second Performance Period.

We used Monte Carlo simulations to calculate the fair value of these awards 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 or Second Performance Period, as applicable. As of July 31, 2020, 375,000 MSUs remained outstanding.

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


	Fiscal Year Ended July 31,
	2019				2020
	Number of Shares	Grant Date Fair Value per Share		Number of Shares	Grant Date Fair Value per Share
	(in thousands)			(in thousands)
Outstanding at beginning of period	23,597	$	31.20	22,136	$	36.72
Granted	11,204	$	42.23	13,502	$	27.31
Released	(8,717)	$	30.15	(8,807)	$	33.86
Forfeited	(3,948)	$	33.86	(4,199)	$	34.82
Outstanding at end of period	22,136	$	36.72	22,632	$	32.70

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,
	2019										2020
	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 thousands)			(in years)	(in thousands)		(in thousands)			(in years)	(in thousands)
Outstanding at beginning of period	11,333	$	5.12	5.6	$	496,022	8,740	$	5.20	4.6	$	153,000
Options granted	—	$	—				—	$	—
Options exercised	(2,555)	$	4.77				(1,192)	$	5.83
Options canceled/forfeited	(38)	$	10.09				(2)	$	26.21
Outstanding at end of period	8,740	$	5.20	4.6	$	153,000	7,546	$	5.10	3.6	$	129,010
Exercisable at end of period	8,721	$	5.18	4.6	$	152,837	7,545	$	5.09	3.7	$	129,004
Vested and expected to vest at end of period	8,740	$	5.20	4.6	$	153,000	7,546	$	5.10	3.6	$	129,010

Stock options exercisable as of July 31, 2019 includes 8.0 million vested options and 0.7 million unvested options with an early exercise provision. Stock options exercisable as of July 31, 2020 includes 7.0 million vested options and 0.5 million unvested options with an early exercise provision. There were no options granted during fiscal 2019 or 2020.

The aggregate intrinsic value of stock options exercised during the fiscal years ended July 31, 2018, 2019 and 2020 was $289.4 million, $90.3 million and $23.4 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 $33.1 million, $12.2 million and $6.9 million for the fiscal years ended July 31, 2018, 2019 and 2020, respectively. The total grant date fair value of stock options vested was $11.5 million, $4.4 million and $1.0 million for the fiscal years ended July 31, 2018, 2019 and 2020, respectively.

Employee Stock Purchase Plan

In December 2015, the Board adopted the 2016 Employee Stock Purchase Plan, which was subsequently amended in January 2016 and September 2016 and approved by our stockholders in March 2016 ("Original 2016 ESPP"). The Original 2016 ESPP became effective in connection with our IPO. On December 13, 2019, during our 2019 Annual Meeting of Stockholders, our stockholders approved certain amendments to the Original 2016 ESPP. Under the amended and restated Original 2016 ESPP ("2016 ESPP"), the maximum number of shares of Class A common stock available for sale is 11.5 million shares, representing an increase of 9.2 million shares.

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

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

During the fiscal year ended July 31, 2020, 3.3 million shares of common stock were purchased under the 2016 ESPP for an aggregate amount of $50.6 million. As of July 31, 2020, 9.2 million 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,
	2018		2019		2020
Expected term (in years)	0.75		0.84		0.92
Risk-free interest rate	1.4	%	2.5	%	0.1	%
Volatility	49.8	%	69.0	%	73.4	%
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,
	2018		2019		2020
	(in thousands)
Cost of revenue:
Product	$	2,580	$	3,535	$	5,334
Support, entitlements and other services	8,945		15,326		22,014
Sales and marketing	65,060		107,751		126,015
Research and development	74,389		140,519		153,252
General and administrative	26,894		39,598		45,383
Total stock-based compensation expense	$	177,868	$	306,729	$	351,998

As of July 31, 2020, unrecognized stock-based compensation expense related to outstanding stock awards was approximately $689.9 million and is expected to be recognized over a weighted average period of approximately 2.5 years.

NET LOSS PER SHARE

12 Months Ended

Jul. 31, 2020

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,
	2018		2019		2020
	(in thousands, except per share data)
Numerator:
Net loss	$	(297,161)	$	(621,179)	$	(872,883)
Denominator:
Weighted average shares—basic and diluted	164,091		181,031		194,719
Net loss per share attributable to common stockholders—basic and diluted	$	(1.81)	$	(3.43)	$	(4.48)

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,
	2018	2019	2020
	(in thousands)
Outstanding stock options and RSUs	34,930	30,876	30,178
Employee stock purchase plan	1,311	1,659	4,368
Contingently issuable shares pursuant to business combinations	277	749	506
Common stock subject to repurchase	47	—	—
Common stock warrants	34	34	—
Total	36,599	33,318	35,052

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, 2020

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,
	2018		2019		2020
	(in thousands)
Domestic	$	(201,666)	$	(658,938)	$	(905,840)
Foreign	(88,048)		45,878		50,619
Loss before provision for income taxes	$	(289,714)	$	(613,060)	$	(855,221)

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


	Fiscal Year Ended July 31,
	2018		2019		2020
	(in thousands)
Current:
U.S. federal	$	2,059	$	(1,998)	$	175
State and local	429		312		79
Foreign	8,541		17,270		18,033
Total current taxes	11,029		15,584		18,287
Deferred:
U.S. federal	(3,387)		(4,949)		80
State and local	(718)		(770)		—
Foreign	523		(1,746)		(705)
Total deferred taxes	(3,582)		(7,465)		(625)
Provision for income taxes	$	7,447	$	8,119	$	17,662

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,
	2018		2019		2020
	(in thousands)
U.S. federal income tax at statutory rate	$	(75,779)	$	(128,680)	$	(179,514)
Change in valuation allowance	25,274		142,273		145,244
Stock-based compensation	(73,631)		(23,378)		30,913
Effect of foreign operations	26,117		14,305		12,676
Non-deductible expenses	2,115		4,651		5,393
Change in unrecognized tax benefit	653		727		1,709
State income taxes	(290)		(458)		79
Transfer pricing adjustments	4,584		(3)		7
U.S. tax reform impact	93,352		—		—
Intangible asset migration	4,461		(2,027)		—
Other	591		709		1,155
Total	$	7,447	$	8,119	$	17,662

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.

During the fiscal year ended July 31, 2020, our provision for income taxes was primarily attributable to foreign tax provisions in certain foreign jurisdictions in which we conduct business.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted by the United States government. However, the CARES Act did not have a material impact on our provision for income taxes for the fiscal year ended July 31, 2020.

In June 2020, the U.S. Supreme Court denied certiorari in the case of Altera Corp. v. Commissioner ("Altera"). We have concluded that the law remains unsettled and continue to record unrecognized tax benefits as we exclude stock-based compensation costs from our cost sharing arrangements. Any potential impact of a final adverse decision would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance. We will continue to monitor developments and the potential effect on our consolidated financial statements and tax filings.

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


	As of July 31,
	2019		2020
	(in thousands)
Deferred tax assets:
Net operating loss carryforward	$	294,577	$	412,110
Tax credit carryforward	109,921		152,330
Deferred revenue	71,859		122,236
Leases	—		48,270
Intangible assets	35,764		31,119
Stock-based compensation expense	27,493		24,177
Accruals and reserves	14,825		13,401
Property and equipment	633		2,234
Other assets	24,258		29,022
Total deferred tax assets	579,330		834,899
Deferred tax liabilities:
Deferred commission expense	(35,814)		(50,344)
Leases	—		(44,502)
Acquisition-related	(11,515)		(8,003)
Property and equipment	(9,174)		(5,629)
Foreign branch taxes	(4,607)		(5,175)
Prepaid expenses	(2,303)		(2,140)
Other	(1,621)		(1,991)
Total deferred tax liabilities	(65,034)		(117,784)
Valuation allowance	(509,764)		(712,093)
Net deferred tax assets	$	4,532	$	5,022

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 $712.1 million as of July 31, 2020. The net increase in the total valuation allowance for the fiscal years ended July 31, 2019 and 2020 was $282.8 million and $202.3 million, respectively.

As of July 31, 2020, we had approximately $1.9 billion of federal net operating loss carryforwards and $1.1 billion 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 $97.2 million of federal research credit carryforwards, $65.5 million of state research credit carryforwards and $26.0 million of foreign tax credit carryforwards. The federal credits will begin to expire in fiscal 2030 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, 2020, we held an aggregate of $173.7 million in cash and cash equivalents in our foreign subsidiaries, of which $114.7 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, 2020 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,
	2019		2020
	(in thousands)
Balance at the beginning of the year	$	91,716	$	81,250
Increases related to current year tax positions	13,736		3,897
Increases related to prior year tax positions	301		491
Decreases related to prior year tax positions	(23,782)		(381)
Settlements with tax authorities	(721)		—
Balance at the end of the year	$	81,250	$	85,257

During the fiscal year ended July 31, 2020, the net increase in unrecognized tax positions was primarily attributable to federal and state research and development credits and intercompany charges.

As of July 31, 2020, 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, 2020, we had recognized $3.1 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. A final determination of Altera is possible within the next 12 months. If the Altera opinion stands, it would result in a $36.2 million reduction of our gross unrecognized tax benefits. There is no impact to our effective tax rate and this would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance. Other than Altera, we do not anticipate a significant impact to the unrecognized tax benefits within the next 12 months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

SEGMENT INFORMATION

12 Months Ended

Jul. 31, 2020

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,
	2018		2019		2020
	(in thousands)
U.S.	$	648,805	$	682,340	706,110
Europe, the Middle East and Africa	224,392		238,356		277,489
Asia Pacific	240,247		271,712		265,092
Other Americas	42,013		43,735		58,991
Total revenue	$	1,155,457	$	1,236,143	$	1,307,682

As of July 31, 2019 and 2020, $161.9 million and $136.7 million, respectively, of our long-lived assets, net were located in the United States.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Jul. 31, 2020

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, 2020. 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, 2018		January 31, 2019		April 30, 2019		July 31, 2019		October 31, 2019		January 31, 2020		April 30, 2020		July 31, 2020
	(unaudited, in thousands, except per share amounts)
Revenue:
Product	$	224,346	$	236,932	$	184,794	$	186,347	$	192,444	$	213,547	$	180,756	$	179,075
Support, entitlements and other services	88,937		98,428		102,830		113,529		122,324		133,220		137,517		148,799
Total revenue	313,283		335,360		287,624		299,876		314,768		346,767		318,273		327,874
Cost of revenue:
Product ⁽²⁾⁽³⁾	39,261		45,966		29,528		28,323		21,233		20,676		15,990		13,413
Support, entitlements and other services⁽²⁾	34,845		40,016		45,549		40,640		50,968		54,547		56,304		53,558
Total cost of revenue	74,106		85,982		75,077		68,963		72,201		75,223		72,294		66,971
Gross profit	239,177		249,378		212,547		230,913		242,567		271,544		245,979		260,903
Operating expenses:
Sales and marketing ⁽²⁾⁽³⁾	196,497		213,707		245,703		253,843		291,838		304,936		299,162		264,453
Research and development ⁽²⁾	110,531		123,037		137,982		129,169		138,206		139,088		141,346		135,338
General and administrative ⁽²⁾	27,339		28,788		33,040		30,420		32,860		34,579		35,644		32,464
Total operating expenses	334,367		365,532		416,725		413,432		462,904		478,603		476,152		432,255
Loss from operations	(95,190)		(116,154)		(204,178)		(182,519)		(220,337)		(207,059)		(230,173)		(171,352)
Other expense, net	(2,703)		(4,399)		(3,212)		(4,705)		(5,040)		(5,863)		(5,640)		(9,757)
Loss before (benefit from) provision for income taxes	(97,893)		(120,553)		(207,390)		(187,224)		(225,377)		(212,922)		(235,813)		(181,109)
(Benefit from) provision for income taxes	(3,628)		2,210		2,423		7,114		3,923		4,642		4,858		4,239
Net loss	$	(94,265)	$	(122,763)	$	(209,813)	$	(194,338)	$	(229,300)	$	(217,564)	$	(240,671)	$	(185,348)
Net loss per share attributable to Class A and Class B common stockholders—basic and diluted ⁽¹⁾	$	(0.54)	$	(0.68)	$	(1.15)	$	(1.04)	$	(1.21)	$	(1.13)	$	(1.23)	$	(0.93)

(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, 2018		January 31, 2019		April 30, 2019		July 31, 2019		October 31, 2019		January 31, 2020		April 30, 2020		July 31, 2020
	(unaudited, in thousands)
Product cost of sales	$	698	$	872	$	953	$	1,012	$	1,112	$	1,458	$	1,367	$	1,397
Support, entitlements and other services cost of sales	3,157		3,373		4,542		4,254		4,751		5,140		5,959		6,164
Sales and marketing	22,606		23,462		35,257		26,426		27,775		31,185		33,177		33,878
Research and development	31,009		34,679		42,265		32,566		37,563		36,459		39,462		39,768
General and administrative	8,455		10,179		11,815		9,149		10,225		11,373		12,131		11,654
Total	$	65,925	$	72,565	$	94,832	$	73,407	$	81,426	$	85,615	$	92,096	$	92,861

(3)Includes amortization of intangible assets as follows:


	Three Months Ended
	October 31, 2018		January 31, 2019		April 30, 2019		July 31, 2019		October 31, 2019		January 31, 2020		April 30, 2020		July 31, 2020
	(unaudited, in thousands)
Product cost of sales	$	3,168	$	3,692	$	3,694	$	3,694	$	3,694	$	3,694	$	3,694	$	3,695
Sales and marketing	550		666		661		651		651		651		651		650
Total	$	3,718	$	4,358	$	4,355	$	4,345	$	4,345	$	4,345	$	4,345	$	4,345

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Jul. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Issuance and Sale of Convertible Senior Notes On August 26, 2020, we entered into an investment agreement (the "Investment Agreement") with BCPE Nucleon (DE) SPV, LP ("Bain") relating to the issuance and sale to Bain of $750 million in an initial aggregate principal amount of 2.50% Convertible Senior Notes due 2026 (the "2026 Notes"). The transactions contemplated by the Investment Agreement (the "Transaction") are expected to close on or prior to September 24, 2020, subject to satisfaction of the customary closing conditions set forth in the Investment Agreement (the date on which the closing occurs, the "Closing"). The 2026 Notes will be governed by an indenture (the "Indenture") between the us and U.S. Bank National Association, as trustee. The 2026 Notes will bear interest at a rate of 2.50% per annum, with such interest to be paid in kind on the 2026 Notes held by Bain through an increase in the principal amount of the 2026 Notes, and in cash on the 2026 Notes transferred to entities not affiliated with Bain. Interest on the 2026 Notes will accrue from the date of issuance and be added to the principal amount on a semi-annual basis thereafter. The 2026 Notes will mature on September 15, 2026, subject to earlier conversion, redemption or repurchase. The 2026 Notes are convertible at the option of the holder at any time until the close of business on the scheduled trading day immediately preceding the maturity date, subject to all applicable conversion restrictions. The 2026 Notes will be convertible into shares of our Class A Common Stock ("Common Stock") based on an initial conversion rate of 36.0360 shares of Common Stock per $1,000 principal amount of the 2026 Notes (which is equal to an initial conversion price of $27.75 per share), in each case subject to customary anti-dilution and other adjustments, including in connection with any make-whole adjustment (as described in the Indenture) as a result of certain extraordinary transactions. In addition, at the one-year anniversary of the date of the 2026 Notes, depending on the achievement of financial milestones, the conversion price may be subject to an additional, one-time adjustment, to an amount in the range of $25.25 to $27.75 per share. On or after September 15, 2025, the 2026 Notes will be redeemable by us, at our option, for cash, shares of Common Stock, or a combination of both at the election of the holder of the 2026 Notes, for all or any portion of the 2026 Notes in the event that the closing sale price per share of our Common Stock has been at least 150% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including at least one of the five trading days immediately preceding the date on which we provide the redemption notice in accordance with the Indenture, during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide the redemption notice at a redemption price of 100% of the principal amount of such 2026 Notes, plus any accrued and unpaid interest to, but excluding, the redemption date. With certain exceptions, upon a Fundamental Change (as defined in the Indenture), which includes, among other things, change of control of Nutanix or the failure of our Common Stock to be listed on a certain stock exchange, the holders of the 2026 Notes may require that we repurchase all or part of their 2026 Notes in principal amount of $1,000 or an integral multiple thereof at purchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest thereon to, but excluding, the Fundamental Change repurchase date. The Indenture will include customary "events of default," which may result in the acceleration of the maturity of the 2026 Notes under the Indenture. The Indenture will also include customary covenants for convertible notes of this type. Stock Repurchase Program In August 2020, our Board of Directors authorized the repurchase of up to $125.0 million of our Class A common stock. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program does not obligate us to acquire any particular amount of our common stock, and may be suspended at any time at our discretion. CEO Succession Plan On August 27, 2020, our Board of Directors announced that it has initiated a CEO succession plan to identify a candidate to succeed Dheeraj Pandey, given Mr. Pandey’s plans to retire as Chief Executive Officer. Mr. Pandey intends to continue as Chairman of the Board and Chief Executive Officer until his successor has been selected and appointed.

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jul. 31, 2020
Accounting Policies [Abstract]
Principles of Consolidation	Principles of ConsolidationThe 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	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 and assumptions include, but are not limited to, the best estimate of selling prices for products and related support; useful lives and recoverability 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; purchase commitment liabilities to our OEMs; sales commissions expense and the period of benefit for deferred commissions; whether an arrangement is or contains a lease; the incremental borrowing rate to measure the present value of operating right-of-use assets and lease liabilities; 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. In response to the ongoing and rapidly evolving COVID-19 pandemic, we considered the impact of the estimated economic implications on our critical and significant accounting estimates, including assessment of collectibility of customer contracts, valuation of accounts receivable, provision for purchase commitments to our OEMs and impairment of long-lived assets, right-of-use assets, and deferred commissions.
Concentration Risk	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 our Partners and occasionally directly to end customers.
Cash, Cash Equivalents	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.
Short-Term Investments	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	Fair Value MeasurementWe 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 0% Convertible Senior Notes, due in January 2023 (the "2023 Notes") is determined based on the closing trading price per $100 of the 2023 Notes as of the last day of trading for the period.
Accounts Receivable and Allowance for Doubtful Accounts	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.
Property and Equipment	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. Leases We determine if an arrangement is or contains a lease at inception by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date when the leased assets are made available for our use. Operating leases are included in operating lease right-of-use assets, operating lease liabilities—current and operating lease liabilities—non-current in our consolidated balance sheet as of July 31, 2020. We did not have any material financing leases in the periods presented. Operating lease right-of-use assets ("ROU assets") represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist primarily of fixed payments under the arrangement, less any lease incentives, such as rent holidays. Variable lease payments not dependent on an index or a rate are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance, property taxes and utilities. We use an estimate of our incremental borrowing rate ("IBR") based on the information available at the lease commencement date in determining the present value of lease payments, unless the implicit rate is readily determinable. In determining the appropriate IBR, we consider information including, but not limited to, our credit rating, the lease term and the currency in which the arrangement is denominated. For leases which commenced prior to our adoption of Accounting Standards Update ("ASU") 2016-02, Leases ("ASC 842"), we used the IBR as of August 1, 2019. Our lease terms may include renewal options, which are not included in the lease terms for calculating our lease liability, as we are not reasonably certain that we will exercise these renewal options at the time of the lease commencement. Lease costs are recognized on a straight-line basis as operating expenses within our consolidated statements of operations. We present lease payments within cash flows from operations within the consolidated statements of cash flows. For our operating leases, we elected to account for lease and non-lease components as a single lease component. Additionally, we do not record leases on the consolidated balance sheet that have a lease term of 12 months or less at the lease commencement date.
Business Combination	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.
Impairment of Long-Lived Assets	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 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.
Revenue Recognition	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 standalone selling price ("SSP") basis. For deliverables that we routinely sell separately, such as software entitlement and support subscriptions on our core offerings, we determine SSP by evaluating the standalone sales over the trailing 12 months. For those that are not sold routinely, we determine SSP based on our overall pricing trends and objectives, taking into consideration market conditions and other factors, including the value of our contracts, the products sold and geographic locations. Contract balances — The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. A receivable is recognized in the period we deliver goods or provide services, or when our right to consideration is unconditional. In situations where revenue recognition occurs before invoicing, an unbilled receivable is created, which represents a contract asset. Unbilled accounts receivable, included in accounts receivable, net on the consolidated balance sheets, was not material for any of the periods presented. Payment terms on invoiced amounts are typically 30-45 days. The balance of accounts receivable, net of allowance for doubtful accounts, as of July 31, 2019 and 2020 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. Taxes assessed by a government authority that are both imposed on and concurrent with specific revenue transactions between us and our customers are presented on a net basis in our consolidated statements of operations. Deferred revenue — Deferred revenue primarily consists of amounts that have been invoiced but not yet recognized as revenue and primarily pertain to software entitlement and 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. 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 in some cases 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.
Warranties	Warranties We generally provide a one-year warranty on hardware sold by us 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 OEMs 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 OEMs 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	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 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	Foreign CurrencyThe 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.
Income Taxes	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 CostsAdvertising 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 In February 2016, the Financial Accounting Standards Board (the "FASB") issued ASC 842, which requires the recognition of ROU assets and lease liabilities on the consolidated balance sheets and additional disclosures around key information about leasing arrangements. We adopted the standard effective August 1, 2019, using a modified retrospective transition method. As a result, our consolidated balance sheet as of July 31, 2019 was not restated and continued to be reported under the previous lease standard ("ASC 840"), and is therefore not comparative. We elected the package of practical expedients permitted under the transition guidance, which allowed us to not reassess whether existing arrangements contain leases, not reassess lease classification and not reassess initial direct costs. The standard had a material impact on our consolidated balance sheet, but did not have an impact on our consolidated statement of operations or cash flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. We recognized ROU assets and lease liabilities of $120.2 million and $142.1 million, respectively, on our consolidated balance sheet on August 1, 2019, which included reclassifying lease incentives, prepaid rent and deferred rent as components of the ROU asset. The difference between the total ROU assets and total lease liabilities recorded as of August 1, 2019 was due primarily to the derecognition of deferred rent liabilities that were included in accrued expenses and other current liabilities and other liabilities—non-current in our consolidated balance sheet as of July 31, 2019. The operating lease ROU asset also includes any lease payments made prior to commencement date and excludes lease incentives. Refer to Note 7 for additional details. 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. We adopted the new standard effective August 1, 2019 and the adoption had no impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarify and amend existing guidance. The new standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted, including interim reporting periods within those fiscal years. We early adopted the new standard effective November 1, 2019 and the adoption had no impact in our consolidated financial statements. Recently Issued and Not Yet Adopted Accounting Pronouncements

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jul. 31, 2020

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,
Partners	2018		2019		2020		2019		2020
Partner A	18	%	24	%	29	%	27	%	33	%
Partner B	13	%	13	%	14	%	18	%	16	%
Partner C	10	%	10	%	⁽¹⁾		⁽¹⁾		⁽¹⁾
Partner D	20	%	10	%	⁽¹⁾		⁽¹⁾		⁽¹⁾

(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,
	2018		2019		2020
	(in thousands)
Allowance for doubtful accounts—beginning balance	$	132	$	815	$	379
Charged to allowance for doubtful accounts	815		437		822
Recoveries	—		(290)		(22)
Write-offs	(132)		(583)		(375)
Allowance for doubtful accounts—ending balance	$	815	$	379	$	804

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Jul. 31, 2020

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 Frame acquisition:


	As of July 31, 2019
	(in thousands)
Goodwill	$	97,328
Amortizable intangible assets	38,180
Tangible assets acquired	10,811
Liabilities assumed	(16,293)
Total consideration	$	130,026

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS (Tables)

12 Months Ended

Jul. 31, 2020

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,
	2018		2019		2020
	(in thousands)
Subscription	$	330,645	$	648,415	$	1,030,180
Non-portable software	543,952		449,131		208,158
Hardware	257,314		105,321		23,455
Professional services	23,546		33,276		45,889
Total revenue	$	1,155,457	$	1,236,143	$	1,307,682

Deferred Revenue, by Arrangement, Disclosure

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


	Deferred Revenue		Deferred Commissions
	(in thousands)
Balance as of July 31, 2018	$	631,207	$	114,379
Additions	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
Additions	815,257		233,917
Revenue/commissions recognized	(541,860)		(172,101)
Balance as of July 31, 2020	$	1,183,441	$	215,528

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jul. 31, 2020

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, 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


	As of July 31, 2020
	Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	142,936	$	—	$	—	$	142,936
Commercial paper	—		8,999		—		8,999


Short-term investments:
Corporate bonds	—		345,265		—		345,265
Commercial paper	—		29,702		—		29,702
U.S. government securities	—		26,074		—		26,074
Total measured at fair value	$	142,936	$	410,040	$	—	$	552,976
Cash							166,802
Total cash, cash equivalents and short-term investments							$	719,778

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


	As of July 31, 2019						As of July 31, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(in thousands)
Convertible senior notes, net	$	458,910	$	527,275	$	490,222	$	529,385

BALANCE SHEET COMPONENTS (Tables)

12 Months Ended

Jul. 31, 2020

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, 2020
	(in thousands)
Due within one year	$	298,074
Due in one to two years	102,967
Total	$	401,041

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

Prepaid expenses and other current assets consists of the following:


	As of July 31,
	2019		2020
	(in thousands)
Prepaid operating expenses	$	37,864	$	31,690
Tenant improvement allowance receivables	—		8,557
VAT receivables	5,068		8,381
Prepaid income taxes	19,690		—
Other current assets	12,043		14,404
Total prepaid expenses and other current assets	$	74,665	$	63,032

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,
				2019		2020
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	200,762	$	245,245
Demonstration units	12	59,981		66,569
Leasehold improvements	⁽¹⁾	46,520		65,557
Furniture and fixtures	60	12,868		17,026
Total property and equipment, gross		320,131		394,397
Less: accumulated depreciation ⁽²⁾		(183,169)		(251,225)
Total property and equipment, net		$	136,962	$	143,172

(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,
	2019		2020
	(in thousands)
Developed technology	$	79,300	$	79,300
Customer relationships	8,860		8,860
Trade name	4,170		4,170
Total intangible assets, gross	92,330		92,330
Less:
Accumulated amortization of developed technology	(21,210)		(35,987)
Accumulated amortization of customer relationships	(3,392)		(4,953)
Accumulated amortization of trade name	(955)		(1,998)
Total accumulated amortization	(25,557)		(42,938)
Total intangible assets, net	$	66,773	$	49,392

Schedule of Indefinite-Lived Intangible Assets

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


	As of July 31,
	2019		2020
	(in thousands)
Intangible assets, net—beginning balance	$	45,366	$	66,773
Acquired intangible assets	38,180		—
Amortization of intangible assets ⁽¹⁾	(16,773)		(17,381)
Intangible assets, net—ending balance	$	66,773	$	49,392

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)
2021	$	17,380
2022	16,183
2023	10,856
2024	3,210
2025	1,763

Total	$	49,392

Schedule of Goodwill

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


	Carrying Amount
	(in thousands)
Balance at July 31, 2018	$	87,759
Acquired in Frame Acquisition	97,328
Other	93
Balance at July 31, 2019	185,180
Other	80
Balance at July 31, 2020	$	185,260

Schedule of Accrued Liabilities

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:


	As of July 31,
	2019		2020
	(in thousands)
Accrued commissions	$	31,703	$	33,503
Accrued vacation	15,475		24,006
Contributions to ESPP withheld	20,778		16,563
Payroll taxes payable	8,504		10,742
Accrued benefits	6,819		8,426
Accrued bonus	11,413		5,568
Other	5,112		10,301
Total accrued compensation and benefits	$	99,804	$	109,109

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:


	As of July 31,
	2019		2020
	(in thousands)
Income taxes payable	$	9,651	$	9,703
Accrued professional services	2,996		3,006
Other	16,150		13,215
Total accrued expenses and other current liabilities	$	28,797	$	25,924

CONVERTIBLE SENIOR NOTES (Tables)

12 Months Ended

Jul. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The total net proceeds from the 2023 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 2023 Notes consisted of the following:


	As of July 31,
	2019		2020
	(in thousands)
Principal amounts:
Principal	$	575,000	$	575,000
Unamortized debt discount ⁽¹⁾	(109,956)		(80,298)
Unamortized debt issuance costs ⁽¹⁾	(6,134)		(4,480)
Net carrying amount	$	458,910	$	490,222
Carrying amount of equity component ⁽²⁾	$	148,598	$	148,598

(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 2023 Notes:


	Fiscal Year Ended July 31,
	2018		2019		2020
	(in thousands)
Interest expense related to amortization of debt discount	$	13,909	$	27,764	$	29,658
Interest expense related to amortization of debt issuance costs	776		1,549		1,654
Total interest expense	$	14,685	$	29,313	$	31,312

- 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

LEASES (Tables)

12 Months Ended

Jul. 31, 2020

Leases [Abstract]

Assets and Liabilities, Lessee

Supplemental balance sheet information related to leases is as follows:


	As of July 31, 2020
	(in thousands)
Operating leases:
Operating lease right-of-use assets, gross	$	159,292

Accumulated amortization	(31,966)
Operating lease right-of-use assets, net	$	127,326

Operating lease liabilities—current	$	36,569
Operating lease liabilities—non-current	116,794
Total operating lease liabilities	$	153,363

Weighted average remaining lease term (in years):	3.7
Weighted average discount rate:	5.3		%

Lease, Cost

Supplemental cash flow and other information related to leases is as follows:


	Fiscal Year Ended July 31, 2020
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	42,231
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	45,278

Lessee, Operating Lease, Liability, Maturity

The undiscounted cash flows for our operating lease liabilities as of July 31, 2020 were as follows:


Fiscal Year Ending July 31:	Amount
	(in thousands)
2021	$	43,874
2022	44,953
2023	43,313
2024	30,762
2025	5,158
Thereafter	3,414
Total lease payments	171,474
Less: imputed interest	(18,111)
Total lease obligation	153,363
Less: current lease obligations	(36,569)
Long-term lease obligations	$	116,794

Schedule of Future Minimum Rental Payments for Operating Leases


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, 2020

Equity [Abstract]

Schedule of Stock by Class

As of July 31, 2020, we had reserved shares of common stock for future issuance as follows:


			As of July 31, 2020
			(in thousands)
Shares reserved for future equity grants			12,724
Shares underlying outstanding stock options			7,546
Shares underlying outstanding restricted stock units			22,632
Shares reserved for future employee stock purchase plan awards			9,169

Total			52,071

- 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, 2020

Share-based Payment Arrangement [Abstract]

Schedule of RSUs Activity


	Fiscal Year Ended July 31,
	2019				2020
	Number of Shares	Grant Date Fair Value per Share		Number of Shares	Grant Date Fair Value per Share
	(in thousands)			(in thousands)
Outstanding at beginning of period	23,597	$	31.20	22,136	$	36.72
Granted	11,204	$	42.23	13,502	$	27.31
Released	(8,717)	$	30.15	(8,807)	$	33.86
Forfeited	(3,948)	$	33.86	(4,199)	$	34.82
Outstanding at end of period	22,136	$	36.72	22,632	$	32.70

Schedule of Stock Option Activity

stock option activity under the Stock Plans:


	Fiscal Year Ended July 31,
	2019										2020
	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 thousands)			(in years)	(in thousands)		(in thousands)			(in years)	(in thousands)
Outstanding at beginning of period	11,333	$	5.12	5.6	$	496,022	8,740	$	5.20	4.6	$	153,000
Options granted	—	$	—				—	$	—
Options exercised	(2,555)	$	4.77				(1,192)	$	5.83
Options canceled/forfeited	(38)	$	10.09				(2)	$	26.21
Outstanding at end of period	8,740	$	5.20	4.6	$	153,000	7,546	$	5.10	3.6	$	129,010
Exercisable at end of period	8,721	$	5.18	4.6	$	152,837	7,545	$	5.09	3.7	$	129,004
Vested and expected to vest at end of period	8,740	$	5.20	4.6	$	153,000	7,546	$	5.10	3.6	$	129,010

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,
	2018		2019		2020
Expected term (in years)	0.75		0.84		0.92
Risk-free interest rate	1.4	%	2.5	%	0.1	%
Volatility	49.8	%	69.0	%	73.4	%
Dividend yield	—	%	—	%	—	%

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,
	2018		2019		2020
	(in thousands)
Cost of revenue:
Product	$	2,580	$	3,535	$	5,334
Support, entitlements and other services	8,945		15,326		22,014
Sales and marketing	65,060		107,751		126,015
Research and development	74,389		140,519		153,252
General and administrative	26,894		39,598		45,383
Total stock-based compensation expense	$	177,868	$	306,729	$	351,998

NET LOSS PER SHARE (Tables)

12 Months Ended

Jul. 31, 2020

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,
	2018		2019		2020
	(in thousands, except per share data)
Numerator:
Net loss	$	(297,161)	$	(621,179)	$	(872,883)
Denominator:
Weighted average shares—basic and diluted	164,091		181,031		194,719
Net loss per share attributable to common stockholders—basic and diluted	$	(1.81)	$	(3.43)	$	(4.48)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	As of July 31,
	2018	2019	2020
	(in thousands)
Outstanding stock options and RSUs	34,930	30,876	30,178
Employee stock purchase plan	1,311	1,659	4,368
Contingently issuable shares pursuant to business combinations	277	749	506
Common stock subject to repurchase	47	—	—
Common stock warrants	34	34	—
Total	36,599	33,318	35,052

INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2020

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,
	2018		2019		2020
	(in thousands)
Domestic	$	(201,666)	$	(658,938)	$	(905,840)
Foreign	(88,048)		45,878		50,619
Loss before provision for income taxes	$	(289,714)	$	(613,060)	$	(855,221)

Schedule of Components of Income Tax Expense (Benefit)

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


	Fiscal Year Ended July 31,
	2018		2019		2020
	(in thousands)
Current:
U.S. federal	$	2,059	$	(1,998)	$	175
State and local	429		312		79
Foreign	8,541		17,270		18,033
Total current taxes	11,029		15,584		18,287
Deferred:
U.S. federal	(3,387)		(4,949)		80
State and local	(718)		(770)		—
Foreign	523		(1,746)		(705)
Total deferred taxes	(3,582)		(7,465)		(625)
Provision for income taxes	$	7,447	$	8,119	$	17,662

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,
	2018		2019		2020
	(in thousands)
U.S. federal income tax at statutory rate	$	(75,779)	$	(128,680)	$	(179,514)
Change in valuation allowance	25,274		142,273		145,244
Stock-based compensation	(73,631)		(23,378)		30,913
Effect of foreign operations	26,117		14,305		12,676
Non-deductible expenses	2,115		4,651		5,393
Change in unrecognized tax benefit	653		727		1,709
State income taxes	(290)		(458)		79
Transfer pricing adjustments	4,584		(3)		7
U.S. tax reform impact	93,352		—		—
Intangible asset migration	4,461		(2,027)		—
Other	591		709		1,155
Total	$	7,447	$	8,119	$	17,662

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,
	2019		2020
	(in thousands)
Deferred tax assets:
Net operating loss carryforward	$	294,577	$	412,110
Tax credit carryforward	109,921		152,330
Deferred revenue	71,859		122,236
Leases	—		48,270
Intangible assets	35,764		31,119
Stock-based compensation expense	27,493		24,177
Accruals and reserves	14,825		13,401
Property and equipment	633		2,234
Other assets	24,258		29,022
Total deferred tax assets	579,330		834,899
Deferred tax liabilities:
Deferred commission expense	(35,814)		(50,344)
Leases	—		(44,502)
Acquisition-related	(11,515)		(8,003)
Property and equipment	(9,174)		(5,629)
Foreign branch taxes	(4,607)		(5,175)
Prepaid expenses	(2,303)		(2,140)
Other	(1,621)		(1,991)
Total deferred tax liabilities	(65,034)		(117,784)
Valuation allowance	(509,764)		(712,093)
Net deferred tax assets	$	4,532	$	5,022

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,
	2019		2020
	(in thousands)
Balance at the beginning of the year	$	91,716	$	81,250
Increases related to current year tax positions	13,736		3,897
Increases related to prior year tax positions	301		491
Decreases related to prior year tax positions	(23,782)		(381)
Settlements with tax authorities	(721)		—
Balance at the end of the year	$	81,250	$	85,257

SEGMENT INFORMATION (Tables)

12 Months Ended

Jul. 31, 2020

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,
	2018		2019		2020
	(in thousands)
U.S.	$	648,805	$	682,340	706,110
Europe, the Middle East and Africa	224,392		238,356		277,489
Asia Pacific	240,247		271,712		265,092
Other Americas	42,013		43,735		58,991
Total revenue	$	1,155,457	$	1,236,143	$	1,307,682

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Jul. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Statements


	Three Months Ended
	October 31, 2018		January 31, 2019		April 30, 2019		July 31, 2019		October 31, 2019		January 31, 2020		April 30, 2020		July 31, 2020
	(unaudited, in thousands, except per share amounts)
Revenue:
Product	$	224,346	$	236,932	$	184,794	$	186,347	$	192,444	$	213,547	$	180,756	$	179,075
Support, entitlements and other services	88,937		98,428		102,830		113,529		122,324		133,220		137,517		148,799
Total revenue	313,283		335,360		287,624		299,876		314,768		346,767		318,273		327,874
Cost of revenue:
Product ⁽²⁾⁽³⁾	39,261		45,966		29,528		28,323		21,233		20,676		15,990		13,413
Support, entitlements and other services⁽²⁾	34,845		40,016		45,549		40,640		50,968		54,547		56,304		53,558
Total cost of revenue	74,106		85,982		75,077		68,963		72,201		75,223		72,294		66,971
Gross profit	239,177		249,378		212,547		230,913		242,567		271,544		245,979		260,903
Operating expenses:
Sales and marketing ⁽²⁾⁽³⁾	196,497		213,707		245,703		253,843		291,838		304,936		299,162		264,453
Research and development ⁽²⁾	110,531		123,037		137,982		129,169		138,206		139,088		141,346		135,338
General and administrative ⁽²⁾	27,339		28,788		33,040		30,420		32,860		34,579		35,644		32,464
Total operating expenses	334,367		365,532		416,725		413,432		462,904		478,603		476,152		432,255
Loss from operations	(95,190)		(116,154)		(204,178)		(182,519)		(220,337)		(207,059)		(230,173)		(171,352)
Other expense, net	(2,703)		(4,399)		(3,212)		(4,705)		(5,040)		(5,863)		(5,640)		(9,757)
Loss before (benefit from) provision for income taxes	(97,893)		(120,553)		(207,390)		(187,224)		(225,377)		(212,922)		(235,813)		(181,109)
(Benefit from) provision for income taxes	(3,628)		2,210		2,423		7,114		3,923		4,642		4,858		4,239
Net loss	$	(94,265)	$	(122,763)	$	(209,813)	$	(194,338)	$	(229,300)	$	(217,564)	$	(240,671)	$	(185,348)
Net loss per share attributable to Class A and Class B common stockholders—basic and diluted ⁽¹⁾	$	(0.54)	$	(0.68)	$	(1.15)	$	(1.04)	$	(1.21)	$	(1.13)	$	(1.23)	$	(0.93)

(2)Includes stock-based compensation as follows:


	Three Months Ended
	October 31, 2018		January 31, 2019		April 30, 2019		July 31, 2019		October 31, 2019		January 31, 2020		April 30, 2020		July 31, 2020
	(unaudited, in thousands)
Product cost of sales	$	698	$	872	$	953	$	1,012	$	1,112	$	1,458	$	1,367	$	1,397
Support, entitlements and other services cost of sales	3,157		3,373		4,542		4,254		4,751		5,140		5,959		6,164
Sales and marketing	22,606		23,462		35,257		26,426		27,775		31,185		33,177		33,878
Research and development	31,009		34,679		42,265		32,566		37,563		36,459		39,462		39,768
General and administrative	8,455		10,179		11,815		9,149		10,225		11,373		12,131		11,654
Total	$	65,925	$	72,565	$	94,832	$	73,407	$	81,426	$	85,615	$	92,096	$	92,861

(3)Includes amortization of intangible assets as follows:


	Three Months Ended
	October 31, 2018		January 31, 2019		April 30, 2019		July 31, 2019		October 31, 2019		January 31, 2020		April 30, 2020		July 31, 2020
	(unaudited, in thousands)
Product cost of sales	$	3,168	$	3,692	$	3,694	$	3,694	$	3,694	$	3,694	$	3,694	$	3,695
Sales and marketing	550		666		661		651		651		651		651		650
Total	$	3,718	$	4,358	$	4,355	$	4,345	$	4,345	$	4,345	$	4,345	$	4,345

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)

12 Months Ended

Jul. 31, 2020

Jul. 31, 2019

Jul. 31, 2018

Aug. 01, 2019

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

Impairment losses

$ 0

Foreign currency transaction gain (loss), before tax

(9,400,000)

(2,500,000)

(3,600,000)

Advertising expense

38,700,000

$ 26,700,000

$ 14,600,000

Right-of-use asset

^[1]

127,326,000

Operating lease liability

$ 153,363,000

Cumulative Effect, Period of Adoption, Adjustment

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

Right-of-use asset

$ 120,200,000

Operating lease liability

$ 142,100,000

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

[1]

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risk (Details) - Partner Concentration Risk	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Revenue \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage	29.00%	24.00%	18.00%
Revenue \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	13.00%	13.00%
Revenue \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage		10.00%	10.00%
Revenue \| Partner D
Concentration Risk [Line Items]
Concentration risk percentage	100.00%	10.00%	20.00%
Accounts Receivable \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage	33.00%	27.00%
Accounts Receivable \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage	16.00%	18.00%
Accounts Receivable \| Partner D
Concentration Risk [Line Items]
Concentration risk percentage	100.00%

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for accounts receivable, beginning balance	$ 379	$ 815	$ 132
Charged to allowance for doubtful accounts	822	437	815
Recoveries	(22)	(290)	0
Write-offs	(375)	(583)	(132)
Allowance for doubtful accounts—ending balance	$ 804	$ 379	$ 815

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

BUSINESS COMBINATIONS - Minjar Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Sep. 21, 2018	Aug. 24, 2018	Jul. 31, 2020	Jul. 31, 2019
Business Acquisition [Line Items]
Amortizable intangible assets			$ 0	$ 38,180
Mainframe2, Inc.
Business Acquisition [Line Items]
Consideration transferred		$ 130,000		130,026
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
Amortizable intangible assets				38,180
Goodwill acquired		$ 97,300		$ 97,328
Intangible assets		38,200
Acquisition related costs		1,100
Developed technology \| Mainframe2, Inc.
Business Acquisition [Line Items]
Amortizable intangible assets		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, 2020	Jul. 31, 2019	Jul. 31, 2018
Business Acquisition [Line Items]
Goodwill		$ 185,260	$ 185,180	$ 87,759
Amortizable intangible assets		$ 0	38,180
Mainframe2, Inc.
Business Acquisition [Line Items]
Goodwill			97,328
Amortizable intangible assets			38,180
Tangible assets acquired			10,811
Liabilities assumed			(16,293)
Total consideration	$ 130,000		$ 130,026

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 327,874	$ 318,273	$ 346,767	$ 314,768	$ 299,876	$ 287,624	$ 335,360	$ 313,283	$ 1,307,682	$ 1,236,143	$ 1,155,457
Amount deferred in prior period									371,800	275,000
Contracted revenue not recognized	$ 1,200,000								$ 1,200,000
Percent expected to be recognized in next year	46.00%								46.00%
Subscription and Circulation, Software Entitlement and Support Subscription
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue									$ 508,800	376,400	243,900
Subscription and Circulation, Software Term-based Licenses
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue									$ 521,300	$ 272,000	$ 86,700
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

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended	12 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jan. 31, 2019	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue	$ 327,874	$ 318,273	$ 346,767	$ 314,768	$ 299,876	$ 287,624	$ 335,360	$ 313,283		$ 1,307,682	$ 1,236,143	$ 1,155,457
Subscription and Circulation
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue										1,030,180	648,415	330,645
Software
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue										208,158	449,131	543,952
Hardware
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue										23,455	105,321	257,314
Professional Services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue										45,889	$ 33,276	23,546
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue									$ 1,236,143	$ 1,307,682		$ 1,155,457

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Deferred Revenue
Beginning balance	$ 910,044	$ 631,207
Additions	815,257	682,241
Revenue/commissions recognized	541,860	403,724
Assumed in a business combination		320
Ending balance	1,183,441	910,044
Deferred Commissions
Beginning balance	153,712	114,379
Additions	233,917	158,062
Revenue/commissions recognized	172,101	118,729
Assumed in a business combination		0
Ending balance	$ 215,528	$ 153,712

FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Financial Assets:
Short-term investments:	$ 401,041	$ 512,156
Recurring
Financial Assets:
Total measured at fair value	552,976	778,270
Cash	166,802	130,564
Total cash, cash equivalents and short-term investments	719,778	908,834
Recurring \| Corporate bonds
Financial Assets:
Short-term investments:	345,265	354,549
Recurring \| Commercial paper
Financial Assets:
Short-term investments:	29,702	92,851
Recurring \| US government securities
Financial Assets:
Short-term investments:	26,074	64,756
Recurring \| Money market funds
Financial Assets:
Cash equivalents:	142,936	33,156
Recurring \| Commercial paper
Financial Assets:
Cash equivalents:	8,999	103,029
Recurring \| US government securities
Financial Assets:
Cash equivalents:		119,933
Recurring \| Corporate bonds
Financial Assets:
Cash equivalents:		9,996
Recurring \| Level I
Financial Assets:
Total measured at fair value	142,936	33,156
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:	142,936	33,156
Recurring \| Level I \| Commercial paper
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level I \| US government securities
Financial Assets:
Cash equivalents:		0
Recurring \| Level I \| Corporate bonds
Financial Assets:
Cash equivalents:		0
Recurring \| Level II
Financial Assets:
Total measured at fair value	410,040	745,114
Recurring \| Level II \| Corporate bonds
Financial Assets:
Short-term investments:	345,265	354,549
Recurring \| Level II \| Commercial paper
Financial Assets:
Short-term investments:	29,702	92,851
Recurring \| Level II \| US government securities
Financial Assets:
Short-term investments:	26,074	64,756
Recurring \| Level II \| Money market funds
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level II \| Commercial paper
Financial Assets:
Cash equivalents:	8,999	103,029
Recurring \| Level II \| US government securities
Financial Assets:
Cash equivalents:		119,933
Recurring \| Level II \| Corporate bonds
Financial Assets:
Cash equivalents:		9,996
Recurring \| Level III
Financial Assets:
Total measured at fair value	0	0
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
Recurring \| Level III \| Corporate bonds
Financial Assets:
Cash equivalents:		$ 0

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Convertible Senior Notes (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
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	$ 490,222	$ 458,910
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	529,385	527,275
Convertible Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Unamortized Discount	(80,298)	(109,956)
Unamortized Debt Issuance Expense	$ (4,480)	$ (6,134)

BALANCE SHEET COMPONENTS - Short-Term Investments (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Due within one year	$ 298,074
Due in one to two years	102,967
Total	$ 401,041	$ 512,156

BALANCE SHEET COMPONENTS - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid operating expenses	$ 31,690	$ 37,864
Tenant Improvements	8,557
VAT receivables	8,381	5,068
Prepaid income taxes	0	19,690
Other current assets	14,404	12,043
Total prepaid expenses and other current assets	63,032	$ 74,665
Income taxes receivable	$ 18,000

BALANCE SHEET COMPONENTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Property, Plant and Equipment [Line Items]
Total property and equipment—gross	$ 394,397	$ 320,131
Less accumulated depreciation and amortization	(251,225)	(183,169)
Total property and equipment—net	143,172	136,962
Impairment of Leasehold	1,200
Depreciation and amortization	93,773	77,612	$ 50,302
Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 76,400	60,800	$ 43,700
Computer, production, engineering and other equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In months)	36 months
Total property and equipment—gross	$ 245,245	200,762
Demonstration units
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In months)	12 months
Total property and equipment—gross	$ 66,569	59,981
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment—gross	$ 65,557	46,520
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In months)	60 months
Total property and equipment—gross	$ 17,026	$ 12,868

BALANCE SHEET COMPONENTS - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Finite-lived intangible assets:
Total intangible assets, gross											$ 92,330	$ 92,330
Less:
Accumulated amortization											(42,938)	(25,557)
Intangible assets, net	$ 49,392			$ 66,773	$ 66,773			$ 45,366	$ 49,392	$ 66,773	49,392	66,773
Finite-lived Intangible Assets [Roll Forward]
Intangible assets, net—beginning balance				66,773				45,366	66,773	45,366
Intangible assets acquired									0	38,180
Amortization of intangible assets	(4,345)	$ (4,345)	$ (4,345)	$ (4,345)	(4,345)	$ (4,355)	$ (4,358)	$ (3,718)	(17,381)	(16,773)
Intangible assets, net—ending balance	$ 49,392				$ 66,773				$ 49,392	$ 66,773
Developed technology
Finite-lived intangible assets:
Finite-lived intangible assets, gross											79,300	79,300
Less:
Accumulated amortization											(35,987)	(21,210)
Customer relationships
Finite-lived intangible assets:
Finite-lived intangible assets, gross											8,860	8,860
Less:
Accumulated amortization											(4,953)	(3,392)
Trade Names
Finite-lived intangible assets:
Finite-lived intangible assets, gross											4,170	4,170
Less:
Accumulated amortization											$ (1,998)	$ (955)

BALANCE SHEET COMPONENTS - Future Amortization Expense (Details) $ in Thousands	Jul. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 17,380
2021	16,183
2022	10,856
2023	3,210
2024	1,763
Total	$ 49,392

BALANCE SHEET COMPONENTS BALANCE SHEET COMPONENTS - Goodwill (Details) - USD ($) $ in Thousands		12 Months Ended
	Aug. 24, 2018	Jul. 31, 2020	Jul. 31, 2019
Business Acquisition [Line Items]
Beginning Balance		$ 185,180	$ 87,759
Other		80	93
Ending Balance		185,260	185,180
Mainframe2, Inc.
Business Acquisition [Line Items]
Beginning Balance		$ 97,328
Goodwill acquired	$ 97,300		97,328
Ending Balance			$ 97,328

BALANCE SHEET COMPONENTS - Accrued Compensation Benefits (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Employee-related Liabilities, Current [Abstract]
Accrued commissions	$ 33,503	$ 31,703
Accrued vacation	24,006	15,475
Contributions to ESPP withheld	16,563	20,778
Payroll taxes payable	10,742	8,504
Accrued benefits	8,426	6,819
Accrued bonus	5,568	11,413
Other	10,301	5,112
Total accrued compensation and benefits	$ 109,109	$ 99,804

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

Jul. 31, 2020

Jul. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Income taxes payable

$ 9,703

$ 9,651

Accrued professional services

3,006

2,996

Other

13,215

16,150

Total accrued expenses and other current liabilities

^[1]

$ 25,924

$ 28,797

[1]

CONVERTIBLE SENIOR NOTES - Additional Information (Details) $ / shares in Units, shares in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2018 USD ($) day $ / shares	Jul. 31, 2020 USD ($) $ / shares shares	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($) $ / shares shares	Jul. 31, 2017
Debt Instrument [Line Items]
Payments for convertible note hedges	$ 143,200,000	$ 0	$ 0	$ 143,175,000
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	$ 0	$ 87,975,000
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, interest rate, stated percentage					0.00%
Debt instrument, face amount	575,000,000.0
Convertible Debt	$ 75,000,000.0
Debt instrument, conversion ratio	20.4705
Debt instrument, conversion price \| $ / shares	$ 48.85			$ 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%	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			10,800,000
Debt Issuance Cost, Gross, Noncurrent	707,000			700,000
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		29 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		$ 22.19
Common Class A \| Convertible Debt
Debt Instrument [Line Items]
Debt Instrument, convertible, threshold percentage of stock price trigger	98.00%

CONVERTIBLE SENIOR NOTES - Proceeds from Debt (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Debt Instrument [Line Items]
Payments for convertible note hedges	$ (143,200)	$ 0	$ 0	$ (143,175)
Proceeds from issuance of warrants	88,000	0	0	87,975
Convertible Debt
Debt Instrument [Line Items]
Convertible Debt Par Amount	575,000	$ 575,000	$ 575,000
Convertible Debt Issuance Cost	(10,781)			(10,800)
Payments for convertible note hedges	(143,175)
Proceeds from issuance of warrants	87,975
Debt Issuance Cost, Gross, Noncurrent	(707)			$ (700)
Proceeds from Debt, Net of Issuance Costs	$ 508,312

CONVERTIBLE SENIOR NOTES - Components of Debt (Details) - Convertible Debt - USD ($) $ in Thousands	Jul. 31, 2020	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	(80,298)	(109,956)
Unamortized Debt Issuance Expense	(4,480)	(6,134)
Convertible Debt, Noncurrent	490,222	458,910
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

CONVERTIBLE SENIOR NOTES - Interest Expense Recognized (Details) - Convertible Debt - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Debt Instrument [Line Items]
Amortization of Debt Discount (Premium)	$ 29,658	$ 27,764	$ 13,909
Amortization of Debt Issuance Costs	1,654	1,549	776
Interest Expense, Debt	$ 31,312	$ 29,313	$ 14,685

LEASES - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Lessee, Lease, Description [Line Items]
Operating lease, cost	$ 39,100
Operating leases, rent expense		$ 37,000	$ 19,000
Impairment loss	3,002
Right-of-use asset, impairment loss	1,800
Impairment of Leasehold	1,200
Lease not yet commenced, undiscounted amount	$ 11,100
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Lease not yet commenced, term of contract	2 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	9 years
Lease not yet commenced, term of contract	6 years

LEASES - Supplemental Balance Sheet (Details)
$ in Thousands

Jul. 31, 2020

USD ($)

Leases [Abstract]

Operating lease right-of-use assets, gross

$ 159,292

Accumulated amortization

(31,966)

Operating lease right-of-use assets, net

127,326

^[1]

Operating lease liabilities—current

36,569

^[1]

Operating lease liabilities—non-current

116,794

^[1]

Total operating lease liabilities

$ 153,363

Weighted average remaining lease term (in years)

3 years 8 months 12 days

Weighted average discount rate:

5.30%

[1]

LEASES - Supplemental Cash Flow and Other Information (Details) $ in Thousands	12 Months Ended
	Jul. 31, 2020 USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 42,231
Lease liabilities arising from obtaining right-of-use assets from operating leases	$ 45,278

LEASES - Remaining Maturity Under Topic 842 (Details)
$ in Thousands

Jul. 31, 2020

USD ($)

Leases [Abstract]

$ 43,874

44,953

43,313

30,762

5,158

3,414

171,474

Less: imputed interest

(18,111)

Total operating lease liabilities

153,363

Less: current lease obligations

(36,569)

^[1]

Long-term lease obligations

$ 116,794

^[1]

[1]

LEASES - Remaining Maturity Under Topic 840 (Details) $ in Thousands	Jul. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 39,540
2021	41,909
2022	41,332
2023	40,695
2024	30,240
Thereafter	3,511
Total	$ 197,227

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Jul. 31, 2020 USD ($)
Non-contract Vendors
Loss Contingencies [Line Items]
Purchase obligation	$ 62.5
Contract Manufacturer
Loss Contingencies [Line Items]
Purchase obligation	$ 81.2

STOCKHOLDERS’ EQUITY (Details)	Jul. 31, 2020 vote class $ / shares shares	Jul. 31, 2019 $ / shares shares	Jul. 31, 2018 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)	201,949,000	188,595,000
Common stock, shares outstanding (in shares)	201,949,000	188,595,000
Shares underlying outstanding stock options (in shares)	7,546,000	8,740,000	11,333,000
Shares reserved for future issuance (in shares)	52,071,000
2016 Plan
Class of Stock [Line Items]
Shares reserved for future issuance (in shares)	42,900,000
RSUs
Class of Stock [Line Items]
Shares underlying outstanding restricted stock units (in shares)	22,632,000	22,136,000	23,597,000
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)	186,846,000	168,155,000
Common stock, shares outstanding (in shares)	186,846,000	168,155,000
Common stock number of votes per share \| vote	1
Common Class A \| 2016 Plan
Class of Stock [Line Items]
Share reserved for future equity grants (in shares)	12,724,000
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)	15,103,000	20,440,000
Common stock, shares outstanding (in shares)	15,103,000	20,440,000
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)	9,169,000

EQUITY AWARD PLANS - Additional Information (Details)				1 Months Ended			12 Months Ended
EQUITY AWARD PLANS - Additional Information (Details)	Dec. 13, 2019 USD ($) purchase_period shares	Aug. 01, 2019 shares	Aug. 01, 2018 shares	Feb. 29, 2020 $ / shares shares	Dec. 31, 2019 $ / shares shares	Oct. 31, 2018 $ / shares shares	Jul. 31, 2020 USD ($) plan $ / shares shares	Jul. 31, 2019 USD ($) $ / shares shares	Jul. 31, 2018 USD ($)	Aug. 01, 2020 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)							52,071,000
Vested (in shares)							7,000,000.0	8,000,000.0
Nonvested shares (in shares)							500,000	700,000
Options granted (in shares)							0	0
Exercises in period, intrinsic value \| $							$ 23,400,000	$ 90,300,000	$ 289,400,000
Proceeds from stock options exercised \| $							6,900,000	12,200,000	33,100,000
Options vested in period, fair value \| $							1,000,000.0	4,400,000	11,500,000
Proceeds from sales of shares through employee equity incentive plans, net of repurchases \| $							$ 57,797,000	$ 69,210,000	$ 72,010,000
Period for recognition (in years)							2 years 6 months
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)							42,900,000
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%
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)							13,502,000	11,204,000
Granted (in dollars per share) \| $ / shares							$ 27.31	$ 42.23
Released (in dollars per share) \| $ / shares							$ 33.86	$ 30.15
RSUs \| Market Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				75,000	200,000	100,000
Granted (in dollars per share) \| $ / shares				$ 20.80	$ 20.80	$ 25.16
Released (in dollars per share) \| $ / shares				$ 65	$ 65	$ 80
Percent of awards to vest if average stock price exceeds threshold					0.06	0.06
Award vesting period (in years)				3 years 10 months 24 days	4 years 6 months	4 years 6 months
Instruments outstanding (in shares)							375,000
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)							3,300,000
Proceeds from sales of shares through employee equity incentive plans, net of repurchases \| $							$ 50,600,000
Employee Stock Options Excluding Performance Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation not yet recognized \| $							$ 689,900,000
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
Annual increase (in shares)							18,000,000.0
Annual increase, percent of outstanding shares							5.00%
Number of additional shares authorized (in shares)		9,400,000	8,600,000
Number of shares available for grant (in shares)							12,724,000
Common Class A \| 2016 Plan \| Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in common stock available for issuance (in shares)										10,100,000
Common Class A \| Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)	11,500,000
Number of additional shares authorized (in shares)	9,200,000
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)							9,169,000
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 shares in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Number of Shares
Outstanding, beginning balance (in shares)	22,136	23,597
Granted (in shares)	13,502	11,204
Released (in shares)	(8,807)	(8,717)
Canceled/forfeited (in shares)	(4,199)	(3,948)
Outstanding, ending balance (in shares)	22,632	22,136
Grant Date Fair Value per Share
Outstanding (in dollars per share)	$ 32.70	$ 36.72	$ 31.20
Granted (in dollars per share)	27.31	42.23
Released (in dollars per share)	33.86	30.15
Canceled/forfeited (in dollars per share)	$ 34.82	$ 33.86

EQUITY AWARD PLANS - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Number of Shares
Beginning balance (in shares)	8,740	11,333
Options granted (in shares)	0	0
Options exercised (in shares)	(1,192)	(2,555)
Options canceled/forfeited (in shares)	(2)	(38)
Ending balance (in shares)	7,546	8,740	11,333
Exercisable (in shares)	7,545	8,721
Vested and expected to vest (in shares)	7,546	8,740
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 5.20	$ 5.12
Options granted (in dollars per share)	0	0
Options exercised (in dollars per share)	5.83	4.77
Options canceled/forfeited (in dollars per share)	26.21	10.09
Ending balance (in dollars per share)	5.10	5.20	$ 5.12
Exercisable (in dollars per share)	5.09	5.18
Vested and expected to vest (in dollars per share)	$ 5.10	$ 5.20
Additional Disclosures
Outstanding (in years)	3 years 7 months 6 days	4 years 7 months 6 days	5 years 7 months 6 days
Exercisable (in years)	3 years 8 months 12 days	4 years 7 months 6 days
Vested and expected to vest (in years)	3 years 7 months 6 days	4 years 7 months 6 days
Outstanding, intrinsic value	$ 129,010	$ 153,000	$ 496,022
Exercisable, intrinsic value	129,004	152,837
Vested and expected to vest, intrinsic value	$ 129,010	$ 153,000

EQUITY AWARD PLANS - ESPP (Details) - Employee stock purchase plan	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	11 months 1 day	10 months 2 days	9 months
Risk-free interest rate	0.10%	2.50%	1.40%
Volatility	73.40%	69.00%	49.80%
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, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 92,861	$ 92,096	$ 85,615	$ 81,426	$ 73,407	$ 94,832	$ 72,565	$ 65,925	$ 351,998	$ 306,729	$ 177,868
Cost of product revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,397	1,367	1,458	1,112	1,012	953	872	698	5,334	3,535	2,580
Cost of revenue, support and other services
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	6,164	5,959	5,140	4,751	4,254	4,542	3,373	3,157	22,014	15,326	8,945
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	33,878	33,177	31,185	27,775	26,426	35,257	23,462	22,606	126,015	107,751	65,060
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	39,768	39,462	36,459	37,563	32,566	42,265	34,679	31,009	153,252	140,519	74,389
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 11,654	$ 12,131	$ 11,373	$ 10,225	$ 9,149	$ 11,815	$ 10,179	$ 8,455	$ 45,383	$ 39,598	$ 26,894

NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								6 Months Ended		12 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Earnings Per Share [Abstract]
Net loss	$ (185,348)	$ (240,671)	$ (217,564)	$ (229,300)	$ (194,338)	$ (209,813)	$ (122,763)	$ (94,265)			$ (872,883)	$ (621,179)	$ (297,161)
Weighted-average shares—basic and diluted (in shares)											194,719	181,031	164,091
Net loss per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (0.93)	$ (1.23)	$ (1.13)	$ (1.21)	$ (1.04)	$ (1.15)	$ (0.68)	$ (0.54)	$ (3.43)	$ (1.81)	$ (4.48)	$ (3.43)	$ (1.81)

- Definition

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

+ References

+ Details

NET LOSS PER SHARE (Details) - shares shares in Thousands	12 Months Ended
NET LOSS PER SHARE (Details) - shares shares in Thousands	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	35,052	33,318	36,599
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)	30,178	30,876	34,930
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)	4,368	1,659	1,311
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)	506	749	277
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	0	47
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	34

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, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Income Tax Disclosure [Abstract]
Domestic									$ (905,840)	$ (658,938)	$ (201,666)
Foreign									50,619	45,878	(88,048)
Loss before provision for income taxes	$ (181,109)	$ (235,813)	$ (212,922)	$ (225,377)	$ (187,224)	$ (207,390)	$ (120,553)	$ (97,893)	$ (855,221)	$ (613,060)	$ (289,714)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68072869&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

INCOME TAXES - Schedule of Provision for Income Taxes, Current and Deferred (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended	12 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jan. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Current:
U.S. federal										$ 175	$ (1,998)	$ 2,059
State and local										79	312	429
Foreign										18,033	17,270	8,541
Total current taxes										18,287	15,584	11,029
Deferred:
U.S. federal										80	(4,949)	(3,387)
State and local										0	(770)	(718)
Foreign										(705)	(1,746)	523
Total deferred taxes										(625)	(7,465)	(3,582)
Total	$ 4,239	$ 4,858	$ 4,642	$ 3,923	$ 7,114	$ 2,423	$ 2,210	$ (3,628)	$ 7,447	$ 17,662	$ 8,119	$ 7,447

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
New Accounting Pronouncement, Early Adoption [Line Items]
Federal statutory income tax rate	21.00%
Valuation allowance for deferred tax assets	$ 712,093	$ 509,764
Valuation allowance increase	(202,300)	$ 282,800
Unrecognized tax benefits that would impact effective tax rate	14,500
Cash and cash equivalents in foreign subsidiaries	173,700
Accounts payable and accrued liabilities	3,100
Reduction of gross unrecognized tax benefts	36,200
United States of America, Dollars
New Accounting Pronouncement, Early Adoption [Line Items]
Cash and cash equivalents in foreign subsidiaries	114,700
Federal
New Accounting Pronouncement, Early Adoption [Line Items]
Net operating loss carryforwards	1,900,000
Federal \| Research Credit Carryforwards
New Accounting Pronouncement, Early Adoption [Line Items]
Research credit carryforwards	97,200
State
New Accounting Pronouncement, Early Adoption [Line Items]
Net operating loss carryforwards	1,100,000
State \| Research Credit Carryforwards
New Accounting Pronouncement, Early Adoption [Line Items]
Research credit carryforwards	65,500
Foreign Tax Authority \| Research Credit Carryforwards
New Accounting Pronouncement, Early Adoption [Line Items]
Research credit carryforwards	$ 26,000

INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended	12 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jan. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Income Tax Disclosure [Abstract]
U.S. federal income tax at statutory rate										$ (179,514)	$ (128,680)	$ (75,779)
Change in valuation allowance										145,244	142,273	25,274
Stock-based compensation										30,913	(23,378)	(73,631)
Effect of foreign operations										12,676	14,305	26,117
Non-deductible expenses										5,393	4,651	2,115
Change in unrecognized tax benefit										1,709	727	653
State income taxes										79	(458)	(290)
Transfer pricing adjustments										7	(3)	4,584
U.S. tax reform impact										0	0	93,352
Intangible asset migration										0	(2,027)	4,461
Other										1,155	709	591
Total	$ 4,239	$ 4,858	$ 4,642	$ 3,923	$ 7,114	$ 2,423	$ 2,210	$ (3,628)	$ 7,447	$ 17,662	$ 8,119	$ 7,447

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Deferred tax assets:
Net operating loss carryforward	$ 412,110	$ 294,577
Tax credit carryforward	152,330	109,921
Deferred revenue	122,236	71,859
Leases	48,270
Intangible assets	31,119	35,764
Stock-based compensation expense	24,177	27,493
Accruals and reserves	13,401	14,825
Property and equipment	2,234	633
Other assets	29,022	24,258
Total deferred tax assets	834,899	579,330
Deferred tax liabilities:
Deferred commission expense	(50,344)	(35,814)
Leases	(44,502)
Acquisition-related	(8,003)	(11,515)
Property and equipment	(5,629)	(9,174)
Foreign branch taxes	(5,175)	(4,607)
Prepaid expenses	(2,140)	(2,303)
Other	(1,991)	(1,621)
Total deferred tax liabilities	(117,784)	(65,034)
Valuation allowance	(712,093)	(509,764)
Net deferred tax assets	$ 5,022	$ 4,532

INCOME TAXES INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance, beginning balance	$ 81,250	$ 91,716
Increases related to current year tax positions	3,897	13,736
Increases related to prior year tax positions	491	301
Decreases related to prior year tax positions	(381)	(23,782)
Settlements with tax authorities	0	(721)
Balance, ending balance	$ 85,257	$ 81,250

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Jul. 31, 2020 USD ($)	Apr. 30, 2020 USD ($)	Jan. 31, 2020 USD ($)	Oct. 31, 2019 USD ($)	Jul. 31, 2019 USD ($)	Apr. 30, 2019 USD ($)	Jan. 31, 2019 USD ($)	Oct. 31, 2018 USD ($)	Jul. 31, 2020 USD ($) segment	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment									1
Total revenue	$ 327,874	$ 318,273	$ 346,767	$ 314,768	$ 299,876	$ 287,624	$ 335,360	$ 313,283	$ 1,307,682	$ 1,236,143	$ 1,155,457
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue									706,110	682,340	648,805
Long-lived assets	$ 136,700				$ 161,900				136,700	161,900
Europe, the Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue									277,489	238,356	224,392
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue									265,092	271,712	240,247
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue									$ 58,991	$ 43,735	$ 42,013

- Definition

+ References

+ Details

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								6 Months Ended		12 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2018
Condensed Financial Statements, Captions [Line Items]
Total revenue	$ 327,874	$ 318,273	$ 346,767	$ 314,768	$ 299,876	$ 287,624	$ 335,360	$ 313,283			$ 1,307,682	$ 1,236,143	$ 1,155,457
Total cost of revenue	66,971	72,294	75,223	72,201	68,963	75,077	85,982	74,106			286,689	304,128	386,030
Gross profit	260,903	245,979	271,544	242,567	230,913	212,547	249,378	239,177			1,020,993	932,015	769,427
Sales and marketing	264,453	299,162	304,936	291,838	253,843	245,703	213,707	196,497			1,160,389	909,750	649,657
Research and development	135,338	141,346	139,088	138,206	129,169	137,982	123,037	110,531			553,978	500,719	313,777
General and administrative	32,464	35,644	34,579	32,860	30,420	33,040	28,788	27,339			135,547	119,587	86,401
Total operating expenses	432,255	476,152	478,603	462,904	413,432	416,725	365,532	334,367			1,849,914	1,530,056	1,049,835
Loss from operations	(171,352)	(230,173)	(207,059)	(220,337)	(182,519)	(204,178)	(116,154)	(95,190)			(828,921)	(598,041)	(280,408)
Other expense, net	(9,757)	(5,640)	(5,863)	(5,040)	(4,705)	(3,212)	(4,399)	(2,703)			(26,300)	(15,019)	(9,306)
Loss before provision for income taxes	(181,109)	(235,813)	(212,922)	(225,377)	(187,224)	(207,390)	(120,553)	(97,893)			(855,221)	(613,060)	(289,714)
Provision for income taxes	4,239	4,858	4,642	3,923	7,114	2,423	2,210	(3,628)		$ 7,447	17,662	8,119	7,447
Net loss	$ (185,348)	$ (240,671)	$ (217,564)	$ (229,300)	$ (194,338)	$ (209,813)	$ (122,763)	$ (94,265)			$ (872,883)	$ (621,179)	$ (297,161)
Net income (loss) per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (0.93)	$ (1.23)	$ (1.13)	$ (1.21)	$ (1.04)	$ (1.15)	$ (0.68)	$ (0.54)	$ (3.43)	$ (1.81)	$ (4.48)	$ (3.43)	$ (1.81)
Total stock-based compensation expense	$ 92,861	$ 92,096	$ 85,615	$ 81,426	$ 73,407	$ 94,832	$ 72,565	$ 65,925			$ 351,998	$ 306,729	$ 177,868
Amortization of intangible assets	4,345	4,345	4,345	4,345	4,345	4,355	4,358	3,718			17,381	16,773
Cost of product revenue
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	1,397	1,367	1,458	1,112	1,012	953	872	698			5,334	3,535	2,580
Amortization of intangible assets	3,695	3,694	3,694	3,694	3,694	3,694	3,692	3,168
Cost of revenue, support and other services
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	6,164	5,959	5,140	4,751	4,254	4,542	3,373	3,157			22,014	15,326	8,945
Sales and marketing
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	33,878	33,177	31,185	27,775	26,426	35,257	23,462	22,606			126,015	107,751	65,060
Amortization of intangible assets	650	651	651	651	651	661	666	550
Research and development
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	39,768	39,462	36,459	37,563	32,566	42,265	34,679	31,009			153,252	140,519	74,389
General and administrative
Condensed Financial Statements, Captions [Line Items]
Total stock-based compensation expense	11,654	12,131	11,373	10,225	9,149	11,815	10,179	8,455			45,383	39,598	26,894
Product
Condensed Financial Statements, Captions [Line Items]
Total revenue	179,075	180,756	213,547	192,444	186,347	184,794	236,932	224,346			765,822	832,419	887,989
Total cost of revenue	13,413	15,990	20,676	21,233	28,323	29,528	45,966	39,261			71,312	143,078	276,127
Support, entitlements and other services
Condensed Financial Statements, Captions [Line Items]
Total revenue	148,799	137,517	133,220	122,324	113,529	102,830	98,428	88,937			541,860	403,724	267,468
Total cost of revenue	$ 53,558	$ 56,304	$ 54,547	$ 50,968	$ 40,640	$ 45,549	$ 40,016	$ 34,845			$ 215,377	$ 161,050	$ 109,903

SUBSEQUENT EVENTS (Details)		1 Months Ended	12 Months Ended
SUBSEQUENT EVENTS (Details)	Aug. 26, 2020 USD ($) day $ / shares	Jan. 31, 2018 USD ($) day $ / shares	Jul. 31, 2020	Aug. 31, 2020 USD ($)	Jul. 31, 2018 $ / shares	Jul. 31, 2017
Convertible Debt
Subsequent Event [Line Items]
Debt instrument, face amount \| $		$ 575,000,000.0
Debt instrument, interest rate, stated percentage						0.00%
Debt instrument, conversion ratio		20.4705
Debt instrument, conversion price \| $ / shares		$ 48.85			$ 48.85
Debt Instrument, convertible, threshold percentage of stock price trigger		130.00%	130.00%
Debt instrument, convertible, threshold trading days \| day		20
Debt instrument, convertible, threshold consecutive trading days \| day		30
Debt instrument, redemption price, percentage		100.00%
Convertible Debt \| Common Class A
Subsequent Event [Line Items]
Debt Instrument, convertible, threshold percentage of stock price trigger		98.00%
Subsequent Event \| Common Class A
Subsequent Event [Line Items]
Stock repurchase program, authorized amount \| $				$ 125,000,000.0
Subsequent Event \| Convertible Debt \| Senior Notes due 2026
Subsequent Event [Line Items]
Debt instrument, face amount \| $	$ 750,000,000
Debt instrument, interest rate, stated percentage	2.50%
Debt instrument, conversion ratio	0.036
Debt instrument, conversion price \| $ / shares	$ 27.75
Debt Instrument, convertible, threshold percentage of stock price trigger	150.00%
Debt instrument, convertible, threshold trading days \| day	20
Debt instrument, convertible, threshold consecutive trading days \| day	30
Debt instrument, redemption price, percentage	100.00%
Subsequent Event \| Minimum \| Convertible Debt \| Senior Notes due 2026
Subsequent Event [Line Items]
Debt instrument, conversion price \| $ / shares	$ 25.25
Subsequent Event \| Maximum \| Convertible Debt \| Senior Notes due 2026
Subsequent Event [Line Items]
Debt instrument, conversion price \| $ / shares	$ 27.75