0001618732-20-000144 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Oct. 31, 2020	Nov. 30, 2020
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001618732
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		190,084,861
Common Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		11,462,502

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Current assets:
Cash and cash equivalents	$ 504,482	$ 318,737
Short-term investments	813,603	401,041
Accounts receivable, net of allowances of $804 and $896, respectively	183,270	242,516
Deferred commissions—current	76,047	68,694
Prepaid expenses and other current assets	56,719	63,032
Total current assets	1,634,121	1,094,020
Property and equipment, net	133,156	143,172
Operating lease right-of-use assets	126,542	127,326
Deferred commissions—non-current	167,711	146,834
Total intangible assets, net	45,047	49,392
Goodwill	185,260	185,260
Other assets—non-current	24,035	22,543
Total assets	2,315,872	1,768,547
Current liabilities:
Accounts payable	48,272	54,029
Accrued compensation and benefits	115,725	109,109
Accrued expenses and other current liabilities	24,563	25,924
Deferred revenue—current	549,938	534,572
Operating lease liabilities—current	41,080	36,569
Total current liabilities	779,578	760,203
Deferred revenue—non-current	656,545	648,869
Operating lease liabilities—non-current	113,491	116,794
Convertible senior notes, net	994,637	490,222
Derivative liability	295,650	0
Other liabilities—non-current	33,326	27,436
Total liabilities	2,873,227	2,043,524
Commitments and contingencies (Note 7)
Stockholders’ deficit:
Preferred stock, par value of $0.000025 per share— 200,000 shares authorized as of July 31, 2020 and October 31, 2020; no shares issued and outstanding as of July 31, 2020 and October 31, 2020	0	0
Common stock, par value of $0.000025 per share—1,200,000 (1,000,000 Class A, 200,000 Class B) shares authorized as of July 31, 2020 and October 31, 2020; 201,949 (186,846 Class A and 15,103 Class B) and 201,346 (189,883 Class A and 11,463 Class B) shares issued and outstanding as of July 31, 2020 and October 31, 2020	5	5
Additional paid-in capital	2,299,903	2,245,180
Accumulated other comprehensive income	880	2,030
Accumulated deficit	(2,858,143)	(2,522,192)
Total stockholders’ deficit	(557,355)	(274,977)
Total liabilities and stockholders’ deficit	$ 2,315,872	$ 1,768,547
Common stock, shares authorized (in shares)	1,200,000,000	1,200,000,000

CONDENSED CONSOLIDATED BALANCE SHEETS (parenthetical) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 896	$ 804
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
Preferred stock, shares outstanding (in shares)	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)	201,346,000	201,949,000
Common stock, shares outstanding (in shares)	201,346,000	201,949,000
Common Class A
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	189,883,000	186,846,000
Common stock, shares outstanding (in shares)	189,883,000	186,846,000
Common Class B
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	11,463,000	15,103,000
Common stock, shares outstanding (in shares)	11,463,000	15,103,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Revenue:
Total revenue	$ 312,754	$ 314,768
Cost of revenue:
Total cost of revenue	67,959	72,201
Gross profit	244,795	242,567
Operating expenses:
Sales and marketing	257,290	291,838
Research and development	135,804	138,206
General and administrative	33,774	32,860
Total operating expenses	426,868	462,904
Loss from operations	(182,073)	(220,337)
Other expense, net	(78,732)	(5,040)
Loss before provision for income taxes	(260,805)	(225,377)
Provision for income taxes	4,243	3,923
Net loss	$ (265,048)	$ (229,300)
Net loss per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (1.31)	$ (1.21)
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted (in shares)	203,095	189,671
Product
Revenue:
Total revenue	$ 155,752	$ 192,444
Cost of revenue:
Total cost of revenue	12,814	21,233
Professional Services
Revenue:
Total revenue	157,002	122,324
Cost of revenue:
Total cost of revenue	$ 55,145	$ 50,968

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (265,048)	$ (229,300)
Other comprehensive loss, net of tax:
Change in unrealized gain (loss) on available-for-sale securities, net of tax	(1,150)	565
Comprehensive loss	$ (266,198)	$ (228,735)

- 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

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Stockholders' equity, beginning balance (in shares) at Jul. 31, 2019		188,595,000
Stockholders' equity, beginning balance at Jul. 31, 2019	$ 186,893	$ 5	$ 1,835,528	$ 669	$ (1,649,309)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock through employee equity incentive plans, net of repurchases (in shares)		2,620,000
Issuance of common stock through employee equity incentive plans	2,608		2,608
Issuance of common stock from ESPP purchase (in shares)		959,000
Issuance of common stock from ESPP purchase	21,337		21,337
Stock-based compensation	81,426		81,426
Other comprehensive income (loss)	565			565
Net loss	(229,300)				(229,300)
Stockholders' equity, ending balance (in shares) at Oct. 31, 2019		192,174,000
Stockholders' equity, ending balance at Oct. 31, 2019	$ 63,529	$ 5	1,940,899	1,234	(1,878,609)
Stockholders' equity, beginning balance (in shares) at Jul. 31, 2020	201,949,000	201,949,000
Stockholders' equity, beginning balance at Jul. 31, 2020	$ (274,977)	$ 5	2,245,180	2,030	(2,522,192)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock through employee equity incentive plans, net of repurchases (in shares)		3,117,000
Issuance of common stock through employee equity incentive plans	1,631		1,631
Issuance of common stock from ESPP purchase (in shares)		1,456,000
Issuance of common stock from ESPP purchase	$ 18,070		18,070
Repurchase and retirement of common stock (in shares)	(5,200,000)	(5,176,000)
Repurchase and retirement of common stock	$ (125,079)		(54,176)		(70,903)
Stock-based compensation	89,198		89,198
Other comprehensive income (loss)	(1,150)			(1,150)
Net loss	$ (265,048)				(265,048)
Stockholders' equity, ending balance (in shares) at Oct. 31, 2020	201,346,000	201,346,000
Stockholders' equity, ending balance at Oct. 31, 2020	$ (557,355)	$ 5	$ 2,299,903	$ 880	$ (2,858,143)

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

3 Months Ended

12 Months Ended

Oct. 31, 2020

Oct. 31, 2019

Jul. 31, 2020

Cash flows from operating activities:

Net loss

$ (265,048)

$ (229,300)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

23,499

22,462

Stock-based compensation

89,198

81,426

Change in fair value of derivative liability

64,740

Amortization of debt discount and issuance costs

11,708

7,635

Operating lease cost, net of accretion

8,347

6,671

Impairment of lease-related assets

2,822

$ 3,000

Non-cash interest expense

1,952

Other

1,671

103

Changes in operating assets and liabilities:

Accounts receivable, net

60,094

30,592

Deferred commissions

(28,230)

(18,313)

Prepaid expenses and other assets

6,222

16,150

Accounts payable

(4,075)

5,208

Accrued compensation and benefits

10,041

(4,786)

Accrued expenses and other liabilities

(1,238)

(5,772)

Operating leases, net

(7,970)

(3,469)

Deferred revenue

22,194

65,230

Net cash provided by operating activities

(4,073)

(26,163)

Cash flows from investing activities:

Maturities of investments

97,578

171,441

Purchases of investments

(513,998)

(321,474)

Sales of investments

7,870

Purchases of property and equipment

(12,252)

(18,203)

Net cash used in investing activities

(428,672)

(160,366)

Cash flows from financing activities:

Proceeds from sales of shares through employee equity incentive plans

19,600

23,973

Proceeds from the issuance of convertible notes, net of issuance costs

723,757

Repurchases of common stock

(125,079)

Net cash provided by financing activities

618,278

23,973

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

185,533

(162,556)

Cash, cash equivalents and restricted cash—beginning of period

321,991

399,520

Cash, cash equivalents and restricted cash—end of period

507,524

236,964

321,991

Restricted cash

^[1]

3,042

3,144

Cash and cash equivalents—end of period

504,482

233,820

$ 318,737

Supplemental disclosures of cash flow information:

Cash paid for income taxes

5,050

7,779

Supplemental disclosures of non-cash investing and financing information:

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

$ 2,948

$ 12,200

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

OVERVIEW AND BASIS OF PRESENTATION

3 Months Ended

Oct. 31, 2020

Accounting Policies [Abstract]

OVERVIEW AND BASIS OF PRESENTATION

Organization and Description of Business

Nutanix, Inc. was incorporated in the state of Delaware in September 2009. Nutanix, Inc. is headquartered in San Jose, California, and together with its wholly-owned subsidiaries (collectively, "we," "us," "our" or "Nutanix") has operations throughout North America, Europe, Asia Pacific, the Middle East, Latin America and Africa.

We provide a leading enterprise cloud platform, which we call the Nutanix Hybrid Cloud Platform, that consists of software solutions and cloud services that power our customers’ hybrid cloud and multicloud strategies. Our solutions run across private-, hybrid- and multicloud environments, and allow organizations to seamlessly "lift and shift" their workloads, including enterprise applications, high-performance databases, end-user computing and virtual desktop infrastructure ("VDI") services, cloud native workloads, and analytics applications, between different cloud environments. 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 and Significant Accounting Policies

The accompanying condensed consolidated financial statements, which include the accounts of Nutanix, Inc. and its wholly-owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and are consistent in all material respects with those included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020, filed with the Securities and Exchange Commission ("SEC") on September 23, 2020. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited, but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. The consolidated balance sheet as of July 31, 2020 is derived from audited financial statements, however, it does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020, which was filed with the SEC on September 23, 2020.

Use of Estimates

The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Such management estimates 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 credit losses; 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; the inputs used to determine the fair value of the contingent liability associated with the conversion feature of the convertible senior notes due in 2026; 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 of Risk

Concentration of revenue and accounts receivable—We sell our products primarily through our Partners and occasionally directly to end customers. For the three months ended October 31, 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
	Three Months Ended October 31,
Partners	2019		2020			July 31, 2020		October 31, 2020
Partner A	27	%	29	%		33	%	31	%
Partner B	12	%	15	%		16	%	14	%
Partner C	12	%	13	%		(1)		11	%

(1)Less than 10%

Summary of Significant Accounting Policies

Except for the accounting for the derivative liability associated with the convertible notes due in 2026, as described below, there have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020, filed with the SEC on September 23, 2020, that have had a material impact on our condensed consolidated financial statements.

Derivative Liability

We evaluate convertible notes or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under the relevant sections of Accounting Standards Codification ("ASC") 815-40, Derivative Instruments and Hedging: Contracts in Entity’s Own Equity. The result of this accounting guidance could result in the fair value of a financial instrument being classified as a derivative instrument and recorded at fair market value at each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the condensed consolidated statements of operations as other income or other expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity.

Recently Adopted Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. We adopted this new standard effective August 1, 2020 and the adoption did not have a material impact on our condensed consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB's disclosure framework project. We adopted this new standard effective August 1, 2020 and the adoption did not have a material impact on our quarterly or annual disclosures.

Recently Issued and Not Yet Adopted Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Under ASU 2020-06 the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the interest rate of convertible debt instruments typically will be closer to the coupon interest rate. ASU 2020-06 also provides for certain disclosures with regard to convertible instruments and associated fair values. ASU 2020-06 is effective for us in the first quarter of fiscal 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The FASB specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. As such, we can early adopt this standard beginning in the first quarter of fiscal 2022. We are currently evaluating the potential impact of adoption of this guidance on our condensed consolidated financial statements.

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

3 Months Ended

Oct. 31, 2020

Revenue Recognition and Deferred Revenue [Abstract]

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS

ue and Revenue Recognition

We generate revenue primarily from the sale of our enterprise cloud platform, which can be delivered pre-installed on an appliance that is configured to order or delivered separately to be utilized on a variety of certified hardware platforms. When the software license 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:


	Three Months Ended October 31,
	2019		2020

	(in thousands)
Subscription	$	217,896	$	278,165
Non-portable software	77,571		20,043
Hardware	9,724		729
Professional services	9,577		13,817
Total revenue	$	314,768	$	312,754

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 $114.9 million and $147.8 million of our subscription revenue for the three months ended October 31, 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 $103.0 million and $130.4 million of our subscription revenue for the three months ended October 31, 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.

Contracts with multiple performance obligations — The majority 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 credit losses. A receivable is recognized in the period we deliver goods or provide services, or when our right to consideration is unconditional. In situations where revenue recognition occurs before invoicing, an unbilled receivable is created, which represents a contract asset. Unbilled accounts receivable, included in accounts receivable, net on the condensed consolidated balance sheets, was not material for any of the periods presented.

Payment terms on invoiced amounts are typically 30-45 days. We assess credit losses on accounts receivable by taking into consideration past collection experience, the credit quality of the customer, the age of the receivable balance, current and future economic conditions, and forecasts that may affect the collectibility of the reported amount. The balance of accounts receivable, net of allowance for credit losses, as of July 31, 2020 and October 31, 2020 is presented in the accompanying condensed consolidated balance sheets.

Costs to obtain and fulfill a contract — We capitalize commissions paid to sales personnel and the related payroll taxes when customer contracts are signed. These costs are recorded as deferred commissions in the condensed consolidated balance sheets, current and non-current. We determine whether costs should be deferred based on our sales compensation plans, if the commissions are incremental and would not have been incurred absent the execution of the customer contract. Commissions paid upon the initial acquisition of a contract are recognized 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 initial contract. Accordingly, deferred costs are recognized on a systematic basis that is consistent with the pattern of revenue recognition allocated to each performance obligation over the entire period of benefit and included in sales and marketing expense in the condensed consolidated statements of operations. We determine the estimated period of benefit by evaluating the expected renewals of customer contracts, the duration of relationships with our customers, customer retention data, our technology development lifecycle and other factors. Deferred costs are periodically reviewed for impairment. Effective August 1, 2020, we changed our sales compensation plans such that commissions paid on software license renewals are not commensurate with commissions paid on the initial contract. Accordingly, commissions paid on initial sales of subscription software licenses are now being recognized in a pattern consistent with the revenue recognition for each performance obligation, including those we expect upon renewal, over the entire period of benefit, rather than only the term of the initial contract, thus resulting in less expense being recognized in the initial contract period.

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 condensed 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 condensed consolidated balance sheet date.

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, 2020	$	1,183,441	$	215,528
Additions	180,044		67,630
Revenue/commissions recognized	(157,002)		(39,400)
Balance as of October 31, 2020	$	1,206,483	$	243,758

During the three months ended October 31, 2019, we recognized revenue of approximately $109.0 million pertaining to amounts deferred as of July 31, 2019. During the three months ended October 31, 2020, we recognized revenue of approximately $142.7 million pertaining to amounts deferred as of July 31, 2020.

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 $1,247.2 million as of October 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
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-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
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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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
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-Section 50
-Paragraph 12
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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

3 Months Ended

Oct. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

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


	As of July 31, 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


	As of October 31, 2020
	Level I		Level II		Level III		Total

	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	260,398	$	—	$	—	$	260,398
Commercial paper	—		42,494		—		42,494


Short-term investments:
Corporate bonds	—		532,904		—		532,904
Commercial paper	—		151,267		—		151,267
U.S. government securities	—		129,432		—		129,432
Total measured at fair value	$	260,398	$	856,097	$	—	$	1,116,495
Cash							201,590
Total cash, cash equivalents and short-term investments							$	1,318,085

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value, with the exception of the 0% convertible senior notes, due in January 2023, (the "2023 Notes") and the 2.5% convertible senior notes, due in 2026, (the "2026 Notes") (collectively, the "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, 2020				As of October 31, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value

	(in thousands)
2023 Notes	$	490,222	$	529,385	$	498,378	$	558,894
2026 Notes	—		—		496,259		840,900
Total	$	490,222	$	529,385	$	994,637	$	1,399,794

The carrying value of the 2023 Notes as of July 31, 2020 and October 31, 2020 was net of the unamortized debt discount of $80.3 million and $72.6 million, respectively, and unamortized debt issuance costs of $4.5 million and $4.0 million, respectively.

The carrying value of the 2026 Notes as of October 31, 2020 was net of the unamortized debt discount of $227.7 million and unamortized debt issuance costs of $26.0 million.

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 valuation due to the limited trading activity.

The total estimated fair value of the 2026 Notes is based on a Binomial model. We consider the fair value of the 2026 Notes to be a Level 3 valuation, as the 2026 Notes are not publicly traded. The Level 3 inputs used are the same as those used to determine the estimated fair value of the associated derivative liability, as detailed below.

Derivative Liability

The conversion feature of the 2026 Notes represents an embedded derivative. The 2026 Notes are not considered to be conventional debt and we determined that the embedded conversion feature was required to be bifurcated from the host debt and accounted for as a derivative liability, as the 2026 Notes are convertible into a variable number of shares until the conversion price becomes fixed in September 2021, based on the level of achievement of the associated financial performance metric. As such, the initial fair value of the derivative instrument was recorded as a liability in the condensed consolidated balance sheet with the corresponding amount recorded as a discount to the 2026 Notes upon issuance. The derivative liability is considered a Level 3 valuation and is recorded at its estimated fair value at the end of each reporting period, with the change in fair value recognized within other expense, net in the condensed consolidated statements of operations.

The following table shows the estimated fair value of the derivative liability as of the issuance of the 2026 Notes and the change in fair value from issuance through October 31, 2020:


	Three Months Ended October 31, 2020

	(in thousands)
Derivative liability at issuance of the 2026 Notes	$	230,910
Change in fair value	64,740
Derivative liability, end of period	$	295,650

We estimated the fair value of the derivative liability using a Binomial model, with the following valuation inputs:


	As of
	September 24, 2020	October 31, 2020

Conversion ratio (1)	Conversion price of $26.63 with a 37.552 conversion rate per $1,000	Conversion price of $26.63 with a 37.552 conversion rate per $1,000
Risk-free rate	0.4%	0.5%
Discount rate (2)	9.00%	8.25%
Volatility	42.7%	42.7%
Stock price	$21.26	$24.34

(1)The conversion ratio was estimated based on the latest forecast of the associated financial performance metric.

(2)The discount rate was estimated based on the implied rate for the 2023 Notes as well as a credit analysis.

- Definition

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

+ References + Details

BALANCE SHEET COMPONENTS

3 Months Ended

Oct. 31, 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. Unrealized losses related to our short-term investments are generally due to interest rate fluctuations, as opposed to credit quality. However, we review individual securities that are in an unrealized loss position in order to evaluate whether or not they have experienced or are expected to experience credit losses that would result in a decline in fair value. As of July 31, 2020 and October 31, 2020, unrealized gains and losses from our short-term investments were not material and were not the result of a decline in credit quality. As a result, at July 31, 2020 and October 31, 2020, we did not record any credit losses 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 October 31, 2020
	(in thousands)
Due within one year	$	631,457
Due in one to two years	182,146
Total	$	813,603

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consists of the following:


	As of
	July 31, 2020		October 31, 2020

	(in thousands)
Prepaid operating expenses	$	31,690	$	32,682
VAT receivables	8,381		8,497
Tenant improvement allowance receivables	8,557		—
Other current assets	14,404		15,540
Total prepaid expenses and other current assets	$	63,032	$	56,719

Property and Equipment, Net

Property and equipment, net consists of the following:


	Estimated Useful Life	As of
		July 31, 2020		October 31, 2020

	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	245,245	$	253,389
Demonstration units	12	66,569		66,750
Leasehold improvements	(1)	65,557		62,142
Furniture and fixtures	60	17,026		16,050
Total property and equipment, gross		394,397		398,331
Less: accumulated depreciation (2)		(251,225)		(265,175)
Total property and equipment, net		$	143,172	$	133,156

(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 and a $0.9 million write-off related to the impairment of certain leasehold improvements for the fiscal quarter ended October 31, 2020. For additional information on these lease-related impairments, refer to Note 6.

Depreciation expense related to our property and equipment was $18.1 million and $19.2 million for the three months ended October 31, 2019 and 2020, respectively.

Goodwill and Intangible Assets, Net

There was no change in the carrying value of goodwill during the three months ended October 31, 2020.

Intangible assets, net consists of the following:


	As of
	July 31, 2020		October 31, 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	(35,987)		(39,681)
Accumulated amortization of customer relationships	(4,953)		(5,343)
Accumulated amortization of trade name	(1,998)		(2,259)
Total accumulated amortization	(42,938)		(47,283)
Total intangible assets, net	$	49,392	$	45,047

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

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


Fiscal Year Ending July 31:	Amount
	(in thousands)
2021	$	13,035
2022	16,183
2023	10,856
2024	3,210
2025	1,763

Total	$	45,047

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:


	As of
	July 31, 2020		October 31, 2020

	(in thousands)
Accrued commissions	$	33,503	$	39,489
Accrued vacation	24,006		26,022
Payroll taxes payable	10,742		13,466
Contributions to ESPP withheld	16,563		10,810
Accrued benefits	8,426		9,343
Accrued bonus	5,568		6,666
Other	10,301		9,929
Total accrued compensation and benefits	$	109,109	$	115,725

CONVERTIBLE SENIOR NOTES

3 Months Ended

Oct. 31, 2020

Debt Disclosure [Abstract]

CONVERTIBLE SENIOR NOTES

2023 Notes

In January 2018, we issued the 2023 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 $24.34 on October 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 October 31, 2020. As such, the 2023 Notes are not convertible for the fiscal quarter commencing after October 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 2023 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 2023 Notes at a repurchase price equal to 100% of the principal amount of the repurchased 2023 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 condensed consolidated balance sheets and is not remeasured as long as it continues to meet the conditions for equity classification.

We incurred transaction costs related to the issuance of the 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 condensed 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, 2020		October 31, 2020

	(in thousands)
Principal amounts:
Principal	$	575,000	$	575,000
Unamortized debt discount (1)	(80,298)		(72,573)
Unamortized debt issuance costs (1)	(4,480)		(4,049)
Net carrying amount	$	490,222	$	498,378
Carrying amount of equity component (2)	$	148,598	$	148,598

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

As of October 31, 2020, the remaining life of the 2023 Notes was approximately 26 months.

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


	Three Months Ended October 31,
	2019		2020

	(in thousands)
Interest expense related to amortization of debt discount	$	7,232	$	7,725
Interest expense related to amortization of debt issuance costs	403		431
Total interest expense	$	7,635	$	8,156

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 condensed consolidated balance sheets as of July 31, 2020 and October 31, 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 on 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.

2026 Notes

In August 2020, we entered into an investment agreement (the "Investment Agreement") with BCPE Nucleon (DE) SVP, LP, an entity affiliated with Bain Capital, LP ("Bain") relating to the issuance and sale to Bain of $750.0 million in aggregate principal amount of the 2026 Notes. The total net proceeds from this offering were approximately $723.7 million, after deducting $26.3 million of debt issuance costs.

The 2026 Notes bear interest at a rate of 2.5% per annum, with such interest to be paid in kind ("PIK") on the 2026 Notes held by Bain through an increase in the principal amount of the 2026 Notes, and paid in cash on any 2026 Notes transferred to entities that are not affiliated with Bain. Interest on the 2026 Notes will accrue from the date of issuance (September 24, 2020) and be added to the principal amount on a semi-annual basis (March 15 and September 15 of each year, beginning on March 15, 2021). The 2026 Notes mature on September 15, 2026, subject to earlier conversion, redemption or repurchase.

Pursuant to the Investment Agreement, and subject to certain exceptions, Bain will be restricted from transferring or entering into an agreement that transfers the economic consequences of ownership of the 2026 Notes or converting the 2026 Notes prior to the earlier of (i) the one-year anniversary of the original issue date of the 2026 Notes or (ii) immediately prior to the consummation of a change of control or entry into a definitive agreement for a transaction that, if consummated, would result in a change of control or fundamental change, as defined in the indenture governing the 2026 Notes. Exceptions to such restrictions on transfer include, among others: (a) transfers to affiliates of Bain, (b) transfers to us or any of our subsidiaries, (c) transfers to a third party where the net proceeds of such sale are solely used to satisfy a margin call or repay a permitted loan, or (d) transfers in connection with certain merger and acquisition events.

The 2026 Notes will be convertible into our shares of Class A common stock based on an initial conversion rate of 36.036 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, subject to customary anti-dilution and other adjustments, including in connection with any make-whole adjustments as a result of certain extraordinary transactions. In addition, at the one-year anniversary of the 2026 Notes, depending on the level of achievement of certain financial milestones, the conversion price is subject to a one-time adjustment, on a sliding scale in the range of $25.25 to $27.75 per share, at which time the conversion price will become fixed.

Upon conversion of the 2026 Notes, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election.

On or after September 15, 2025, the 2026 Notes will be redeemable by us in the event that the closing sale price of our Class A common stock has been at least 150% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) 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 the 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 change of control or a fundamental change, the holders of the 2026 Notes may require us to repurchase all or part of the principal amount of the 2026 Notes at a repurchase price equal to 100% of the principal amount of the 2026 Notes, plus any accrued and unpaid interest to, but excluding, the repurchase date, or holders can convert with an increase in the conversion rate to reflect a make-whole premium.

In accordance with accounting guidance on embedded conversion features, we valued and bifurcated the conversion option associated with the 2026 Notes from the respective host debt instrument, which is treated as a debt discount, and initially recorded the conversion option of $230.9 million as a derivative liability in our condensed consolidated balance sheet, with the corresponding amount recorded as a discount to the 2026 Notes to be amortized over the term of the 2026 Notes using the effective interest method.

The 2026 Notes consisted of the following:


	As of October 31, 2020

	(in thousands)
Principal amounts:
Principal	$	750,000
Unamortized debt discount (conversion feature) (1)	(227,723)
Unamortized debt issuance costs (1)	(26,018)
Net carrying amount	$	496,259

(1)Included in the condensed consolidated balance sheets within convertible senior notes, net and amortized over the remaining life of the 2026 Notes using the effective interest rate method. The effective interest rate is 7.05%.

As of October 31, 2020, the remaining life of the 2026 Notes was approximately 5.9 years.

The following table sets forth the total interest expense recognized related to the 2026 Notes:


	Three Months Ended October 31, 2020

	(in thousands)
Interest expense related to amortization of debt discount	$	3,187
Interest expense related to amortization of debt issuance costs	365
Non-cash interest expense	1,952
Total interest expense	$	5,504

The non-cash interest expense is related to the 2.5% PIK interest that we accrued from the issuance of the 2026 Notes through October 31, 2020 and was recognized within other expense, net in the condensed consolidated statement of operations and other liabilities–non-current in the condensed consolidated balance sheet. The accrued PIK interest will be converted to the principal balance of the 2026 Notes at each payment date and will be convertible to shares at maturity or when converted.

Impact to Earnings per Share

The 2026 Notes will have no impact on diluted EPS until the price of our Class A common stock is greater than the conversion price, discussed above, as we intend to settle the principal amount of the 2026 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 2026 Notes when the price of our Class A common stock exceeds the conversion price. During the three months ended October 31, 2020, the average price of our Class A common stock did not exceed the conversion price of the 2026 Notes.

LEASES

3 Months Ended

Oct. 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 eight 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 $8.7 million and $10.4 million for the three months ended October 31, 2019 and 2020, respectively, 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.

During the second quarter of fiscal 2020, we ceased using certain office spaces internationally. 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 our operating lease right-of-use assets and approximately $1.2 million relates to the impairment of leasehold improvements.

During the first quarter of fiscal 2021, we recorded additional impairment charges related to certain of our international office spaces, as well as an impairment charge related to an office space in the United States. We recorded a $2.8 million impairment in our condensed consolidated statement of operations for the three months ended October 31, 2020. Of the $2.8 million impairment, approximately $1.9 million relates to the impairment of our operating lease right-of-use assets and approximately $0.9 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 October 31, 2020
	(in thousands)
Operating leases:
Operating lease right-of-use assets, gross	$	166,922
Impairment	(2,382)
Accumulated amortization	(37,998)
Operating lease right-of-use assets, net	$	126,542

Operating lease liabilities—current	$	41,080
Operating lease liabilities—non-current	113,491
Total operating lease liabilities	$	154,571

Weighted average remaining lease term (in years):	3.6
Weighted average discount rate:	5.3		%

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


	Three Months Ended October 31,
	2019		2020

	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,750	$	9,976

Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	12,969	$	9,918

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


Fiscal Year Ending July 31:	Amount
	(in thousands)
2021	$	36,153
2022	47,715
2023	46,281
2024	31,828
2025	6,174
Thereafter	3,798
Total lease payments	171,949
Less: imputed interest	(17,378)
Total lease obligation	154,571
Less: current lease obligations	(41,080)
Long-term lease obligations	$	113,491

As of October 31, 2020, we had additional operating lease commitments of approximately $5.5 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.

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Oct. 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 October 31, 2020, we had up to approximately $57.5 million of non-cancelable purchase obligations and other commitments pertaining to our daily business operations, and up to approximately $63.5 million in the form of guarantees to certain of our OEMs. Legal Proceedings Securities Class Actions. 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, which the court granted 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 September 11, 2020, the court denied our motion to dismiss the Current Complaint and held that the lead plaintiff adequately stated a claim with respect to certain statements regarding our new customer growth and sales productivity. The court held a case management conference on October 27, 2020 and set a pretrial schedule for the case. 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. Shareholder Derivative Actions. 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." 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. 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. On October 5, 2020, the court granted the individual defendants’ motions to dismiss the amended complaint, while providing the plaintiffs leave to amend their complaint by October 26, 2020, which deadline was extended to December 1, 2020. In lieu of filing an amended complaint, the stockholders in the federal derivative actions have made a demand on our Board of Directors to investigate the allegations underlying the securities class action matters, and the parties subsequently filed a stipulation with the court to have the federal derivative lawsuit dismissed. The matters are in the very early stages and we are not able to determine what, if any, liabilities will attach to these matters. 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	3 Months Ended
STOCKHOLDERS’ EQUITY	Oct. 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 October 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 October 31, 2020, we had 189.9 million shares of Class A common stock issued and outstanding and 11.5 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. Share Repurchase In August 2020, our Board of Directors authorized the repurchase of up to $125.0 million of our Class A common stock. Repurchases were made through open market purchases or privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program did not obligate us to acquire any particular amount of our common stock, and could have been suspended at any time at our discretion. During the three months ended October 31, 2020, we repurchased 5.2 million shares of common stock in open market transactions at an average price of $24.15 per share, for an aggregate purchase price of $125.0 million. As of October 31, 2020, there is no remaining authorization and the program has expired, as our Board of Directors does not plan to authorize any additional share repurchases in the foreseeable future.

EQUITY AWARD PLANS

3 Months Ended

Oct. 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, 2019 and 2020, the number of shares of Class A common stock available for issuance under the 2016 Plan increased by 9.4 million and 10.1 million shares, respectively, pursuant to these provisions. As of October 31, 2020, we had reserved a total of 49.9 million shares for the issuance of equity awards under the Stock Plans, of which 20.2 million shares were still available for grant.

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 October 31, 2020, 375,000 MSUs remained outstanding.

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


	Number of Shares	Grant Date Fair Value per Share
	(in thousands)
Outstanding at July 31, 2020	22,632	$	32.70
Granted	3,454	$	24.02
Released	(2,819)	$	31.23
Forfeited	(806)	$	34.00
Outstanding at October 31, 2020	22,461	$	31.50

Stock Options

We did not grant any stock options during the three months ended October 31, 2020. A total of 0.3 million stock options were exercised during the three months ended October 31, 2020, with an average exercise price per share of $5.48. As of October 31, 2020, 7.2 million stock options, with a weighted average exercise price of $5.08 per share, a weighted average remaining contractual life of 3.4 years and an aggregate intrinsic value of $139.6 million, remained outstanding.

Employee Stock Purchase Plan

In December 2015, the Board adopted the 2016 Employee Stock Purchase Plan, which was subsequently amended in January 2016 and September 2016 and approved by our stockholders in March 2016 ("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 three months ended October 31, 2020, 1.5 million shares of common stock were purchased under the 2016 ESPP for an aggregate amount of $18.1 million. As of October 31, 2020, 7.7 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:


	Three Months Ended October 31,
	2019		2020
Expected term (in years)	0.92		0.92
Risk-free interest rate	1.9	%	0.1	%
Volatility	68.7	%	73.3	%
Dividend yield	—	%	—	%

Stock-Based Compensation

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


	Three Months Ended October 31,
	2019		2020

	(in thousands)
Cost of revenue:
Product	$	1,112	$	1,504
Support, entitlements and other services	4,751		5,761
Sales and marketing	27,775		32,227
Research and development	37,563		37,887
General and administrative	10,225		11,819
Total stock-based compensation expense	$	81,426	$	89,198

As of October 31, 2020, unrecognized stock-based compensation expense related to outstanding stock awards was approximately $656.9 million and is expected to be recognized over a weighted average period of approximately 2.5 years.

INCOME TAXES	3 Months Ended
INCOME TAXES	Oct. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESThe income tax provisions of $3.9 million and $4.2 million for the three months ended October 31, 2019 and 2020, respectively, primarily consisted of foreign taxes on our international operations and U.S. state income taxes. We continue to maintain a valuation allowance for our U.S. Federal and state deferred tax assets and a partial valuation allowance related to our foreign net deferred tax assets.

- 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

NET LOSS PER SHARE

3 Months Ended

Oct. 31, 2020

Earnings Per Share [Abstract]

NET LOSS PER SHARE

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

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

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

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


	Three Months Ended October 31,
	2019		2020

	(in thousands, except per share data)
Numerator:
Net loss	$	(229,300)	$	(265,048)
Denominator:
Weighted average shares—basic and diluted	189,671		203,095
Net loss per share attributable to common stockholders—basic and diluted	$	(1.21)	$	(1.31)

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


	Three Months Ended October 31,
	2019	2020

	(in thousands)
Outstanding stock options and RSUs	29,544	29,710
Employee stock purchase plan	2,845	2,823
Contingently issuable shares pursuant to business combinations	611	253
Common stock warrants	34	—
Total	33,034	32,786

SEGMENT INFORMATION

3 Months Ended

Oct. 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:


	Three Months Ended October 31,
	2019		2020

	(in thousands)
U.S.	$	184,767	$	177,113
Asia Pacific	60,321		62,598
Europe, the Middle East and Africa	56,713		59,906
Other Americas	12,967		13,137
Total revenue	$	314,768	$	312,754

As of July 31, 2020 and October 31, 2020, $136.7 million and $124.9 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

OVERVIEW AND BASIS OF PRESENTATION (Policies)	3 Months Ended
OVERVIEW AND BASIS OF PRESENTATION (Policies)	Oct. 31, 2020
Accounting Policies [Abstract]
Principles of Consolidation and Significant Accounting Policies	Principles of Consolidation and Significant Accounting Policies The accompanying condensed consolidated financial statements, which include the accounts of Nutanix, Inc. and its wholly-owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and are consistent in all material respects with those included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020, filed with the Securities and Exchange Commission ("SEC") on September 23, 2020. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited, but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. The consolidated balance sheet as of July 31, 2020 is derived from audited financial statements, however, it does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020, which was filed with the SEC on September 23, 2020.
Use of Estimates	Use of Estimates The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed 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 credit losses; 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; the inputs used to determine the fair value of the contingent liability associated with the conversion feature of the convertible senior notes due in 2026; 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 of RiskConcentration of revenue and accounts receivable—We sell our products primarily through our Partners and occasionally directly to end customers. For the three months ended October 31, 2019 and 2020, no end customer accounted for more than 10% of total revenue or accounts receivable.
Derivative Liability	Derivative Liability We evaluate convertible notes or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under the relevant sections of Accounting Standards Codification ("ASC") 815-40, Derivative Instruments and Hedging: Contracts in Entity’s Own Equity. The result of this accounting guidance could result in the fair value of a financial instrument being classified as a derivative instrument and recorded at fair market value at each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the condensed consolidated statements of operations as other income or other expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity.
Recently Adopted and Recently Issued and Not Yet Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. We adopted this new standard effective August 1, 2020 and the adoption did not have a material impact on our condensed consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB's disclosure framework project. We adopted this new standard effective August 1, 2020 and the adoption did not have a material impact on our quarterly or annual disclosures. Recently Issued and Not Yet Adopted Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Under ASU 2020-06 the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the interest rate of convertible debt instruments typically will be closer to the coupon interest rate. ASU 2020-06 also provides for certain disclosures with regard to convertible instruments and associated fair values. ASU 2020-06 is effective for us in the first quarter of fiscal 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The FASB specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. As such, we can early adopt this standard beginning in the first quarter of fiscal 2022. We are currently evaluating the potential impact of adoption of this guidance on our condensed consolidated financial statements.
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. When the software license 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.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

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+ Details

OVERVIEW AND BASIS OF PRESENTATION (Tables)

3 Months Ended

Oct. 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
	Three Months Ended October 31,
Partners	2019		2020			July 31, 2020		October 31, 2020
Partner A	27	%	29	%		33	%	31	%
Partner B	12	%	15	%		16	%	14	%
Partner C	12	%	13	%		(1)		11	%

(1)Less than 10%

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS (Tables)

3 Months Ended

Oct. 31, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Revenue by Arrangement, Disclosure

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


	Three Months Ended October 31,
	2019		2020

	(in thousands)
Subscription	$	217,896	$	278,165
Non-portable software	77,571		20,043
Hardware	9,724		729
Professional services	9,577		13,817
Total revenue	$	314,768	$	312,754

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, 2020	$	1,183,441	$	215,528
Additions	180,044		67,630
Revenue/commissions recognized	(157,002)		(39,400)
Balance as of October 31, 2020	$	1,206,483	$	243,758

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Oct. 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, 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


	As of October 31, 2020
	Level I		Level II		Level III		Total

	(in thousands)
Financial Assets:
Cash equivalents:
Money market funds	$	260,398	$	—	$	—	$	260,398
Commercial paper	—		42,494		—		42,494


Short-term investments:
Corporate bonds	—		532,904		—		532,904
Commercial paper	—		151,267		—		151,267
U.S. government securities	—		129,432		—		129,432
Total measured at fair value	$	260,398	$	856,097	$	—	$	1,116,495
Cash							201,590
Total cash, cash equivalents and short-term investments							$	1,318,085

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


	As of July 31, 2020				As of October 31, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value

	(in thousands)
2023 Notes	$	490,222	$	529,385	$	498,378	$	558,894
2026 Notes	—		—		496,259		840,900
Total	$	490,222	$	529,385	$	994,637	$	1,399,794

Schedule of Derivative Liabilities at Fair Value

The following table shows the estimated fair value of the derivative liability as of the issuance of the 2026 Notes and the change in fair value from issuance through October 31, 2020:


	Three Months Ended October 31, 2020

	(in thousands)
Derivative liability at issuance of the 2026 Notes	$	230,910
Change in fair value	64,740
Derivative liability, end of period	$	295,650

Fair Value Measurement Inputs and Valuation Techniques

We estimated the fair value of the derivative liability using a Binomial model, with the following valuation inputs:


	As of
	September 24, 2020	October 31, 2020

Conversion ratio (1)	Conversion price of $26.63 with a 37.552 conversion rate per $1,000	Conversion price of $26.63 with a 37.552 conversion rate per $1,000
Risk-free rate	0.4%	0.5%
Discount rate (2)	9.00%	8.25%
Volatility	42.7%	42.7%
Stock price	$21.26	$24.34

(1)The conversion ratio was estimated based on the latest forecast of the associated financial performance metric.

(2)The discount rate was estimated based on the implied rate for the 2023 Notes as well as a credit analysis.

BALANCE SHEET COMPONENTS (Tables)

3 Months Ended

Oct. 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 October 31, 2020
	(in thousands)
Due within one year	$	631,457
Due in one to two years	182,146
Total	$	813,603

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

Prepaid expenses and other current assets consists of the following:


	As of
	July 31, 2020		October 31, 2020

	(in thousands)
Prepaid operating expenses	$	31,690	$	32,682
VAT receivables	8,381		8,497
Tenant improvement allowance receivables	8,557		—
Other current assets	14,404		15,540
Total prepaid expenses and other current assets	$	63,032	$	56,719

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, 2020		October 31, 2020

	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	245,245	$	253,389
Demonstration units	12	66,569		66,750
Leasehold improvements	(1)	65,557		62,142
Furniture and fixtures	60	17,026		16,050
Total property and equipment, gross		394,397		398,331
Less: accumulated depreciation (2)		(251,225)		(265,175)
Total property and equipment, net		$	143,172	$	133,156

(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, 2020		October 31, 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	(35,987)		(39,681)
Accumulated amortization of customer relationships	(4,953)		(5,343)
Accumulated amortization of trade name	(1,998)		(2,259)
Total accumulated amortization	(42,938)		(47,283)
Total intangible assets, net	$	49,392	$	45,047

Schedule of Indefinite-Lived Intangible Assets

Intangible assets, net consists of the following:


	As of
	July 31, 2020		October 31, 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	(35,987)		(39,681)
Accumulated amortization of customer relationships	(4,953)		(5,343)
Accumulated amortization of trade name	(1,998)		(2,259)
Total accumulated amortization	(42,938)		(47,283)
Total intangible assets, net	$	49,392	$	45,047

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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


Fiscal Year Ending July 31:	Amount
	(in thousands)
2021	$	13,035
2022	16,183
2023	10,856
2024	3,210
2025	1,763

Total	$	45,047

Schedule of Accrued Liabilities

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:


	As of
	July 31, 2020		October 31, 2020

	(in thousands)
Accrued commissions	$	33,503	$	39,489
Accrued vacation	24,006		26,022
Payroll taxes payable	10,742		13,466
Contributions to ESPP withheld	16,563		10,810
Accrued benefits	8,426		9,343
Accrued bonus	5,568		6,666
Other	10,301		9,929
Total accrued compensation and benefits	$	109,109	$	115,725

CONVERTIBLE SENIOR NOTES (Tables)

3 Months Ended

Oct. 31, 2020

Debt Disclosure [Abstract]

Net Proceeds from 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

Components of Notes

The 2023 Notes consisted of the following:


	As of
	July 31, 2020		October 31, 2020

	(in thousands)
Principal amounts:
Principal	$	575,000	$	575,000
Unamortized debt discount (1)	(80,298)		(72,573)
Unamortized debt issuance costs (1)	(4,480)		(4,049)
Net carrying amount	$	490,222	$	498,378
Carrying amount of equity component (2)	$	148,598	$	148,598

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

The 2026 Notes consisted of the following:


	As of October 31, 2020

	(in thousands)
Principal amounts:
Principal	$	750,000
Unamortized debt discount (conversion feature) (1)	(227,723)
Unamortized debt issuance costs (1)	(26,018)
Net carrying amount	$	496,259

Interest Expense Recognized

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


	Three Months Ended October 31,
	2019		2020

	(in thousands)
Interest expense related to amortization of debt discount	$	7,232	$	7,725
Interest expense related to amortization of debt issuance costs	403		431
Total interest expense	$	7,635	$	8,156

The following table sets forth the total interest expense recognized related to the 2026 Notes:


	Three Months Ended October 31, 2020

	(in thousands)
Interest expense related to amortization of debt discount	$	3,187
Interest expense related to amortization of debt issuance costs	365
Non-cash interest expense	1,952
Total interest expense	$	5,504

- 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)

3 Months Ended

Oct. 31, 2020

Leases [Abstract]

Assets and Liabilities, Lessee

Supplemental balance sheet information related to leases is as follows:


	As of October 31, 2020
	(in thousands)
Operating leases:
Operating lease right-of-use assets, gross	$	166,922
Impairment	(2,382)
Accumulated amortization	(37,998)
Operating lease right-of-use assets, net	$	126,542

Operating lease liabilities—current	$	41,080
Operating lease liabilities—non-current	113,491
Total operating lease liabilities	$	154,571

Weighted average remaining lease term (in years):	3.6
Weighted average discount rate:	5.3		%

Lease, Cost

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


	Three Months Ended October 31,
	2019		2020

	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,750	$	9,976

Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	12,969	$	9,918

Lessee, Operating Lease, Liability, Maturity

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


Fiscal Year Ending July 31:	Amount
	(in thousands)
2021	$	36,153
2022	47,715
2023	46,281
2024	31,828
2025	6,174
Thereafter	3,798
Total lease payments	171,949
Less: imputed interest	(17,378)
Total lease obligation	154,571
Less: current lease obligations	(41,080)
Long-term lease obligations	$	113,491

EQUITY AWARD PLANS (Tables)

3 Months Ended

Oct. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of RSUs Activity

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


	Number of Shares	Grant Date Fair Value per Share
	(in thousands)
Outstanding at July 31, 2020	22,632	$	32.70
Granted	3,454	$	24.02
Released	(2,819)	$	31.23
Forfeited	(806)	$	34.00
Outstanding at October 31, 2020	22,461	$	31.50

Schedule of ESPP Valuation Assumptions

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


	Three Months Ended October 31,
	2019		2020
Expected term (in years)	0.92		0.92
Risk-free interest rate	1.9	%	0.1	%
Volatility	68.7	%	73.3	%
Dividend yield	—	%	—	%

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

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


	Three Months Ended October 31,
	2019		2020

	(in thousands)
Cost of revenue:
Product	$	1,112	$	1,504
Support, entitlements and other services	4,751		5,761
Sales and marketing	27,775		32,227
Research and development	37,563		37,887
General and administrative	10,225		11,819
Total stock-based compensation expense	$	81,426	$	89,198

NET LOSS PER SHARE (Tables)

3 Months Ended

Oct. 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:


	Three Months Ended October 31,
	2019		2020

	(in thousands, except per share data)
Numerator:
Net loss	$	(229,300)	$	(265,048)
Denominator:
Weighted average shares—basic and diluted	189,671		203,095
Net loss per share attributable to common stockholders—basic and diluted	$	(1.21)	$	(1.31)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	Three Months Ended October 31,
	2019	2020

	(in thousands)
Outstanding stock options and RSUs	29,544	29,710
Employee stock purchase plan	2,845	2,823
Contingently issuable shares pursuant to business combinations	611	253
Common stock warrants	34	—
Total	33,034	32,786

SEGMENT INFORMATION (Tables)

3 Months Ended

Oct. 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:


	Three Months Ended October 31,
	2019		2020

	(in thousands)
U.S.	$	184,767	$	177,113
Asia Pacific	60,321		62,598
Europe, the Middle East and Africa	56,713		59,906
Other Americas	12,967		13,137
Total revenue	$	314,768	$	312,754

OVERVIEW AND BASIS OF PRESENTATION (Details) - Partner Concentration Risk	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Revenue \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage	29.00%	27.00%
Revenue \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage	15.00%	12.00%
Revenue \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage	13.00%	12.00%
Accounts Receivable \| Partner A
Concentration Risk [Line Items]
Concentration risk percentage	31.00%	33.00%
Accounts Receivable \| Partner B
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	16.00%
Accounts Receivable \| Partner C
Concentration Risk [Line Items]
Concentration risk percentage	11.00%

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 312,754	$ 314,768
Ratable
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	147,800	114,900
Upfront
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 130,400	$ 103,000
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

- 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)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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-Paragraph 4
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-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 - Schedule of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Condensed Income Statements, Captions [Line Items]
Total revenue	$ 312,754	$ 314,768
Subscription
Condensed Income Statements, Captions [Line Items]
Total revenue	278,165	217,896
Non-portable software
Condensed Income Statements, Captions [Line Items]
Total revenue	20,043	77,571
Hardware
Condensed Income Statements, Captions [Line Items]
Total revenue	729	9,724
Professional services
Condensed Income Statements, Captions [Line Items]
Total revenue	$ 13,817	$ 9,577

- Definition

+ References

+ Details

REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS - Deferred Revenue/Commissions (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning balance	$ 1,183,441
Additions	180,044
Revenue recognized	157,002
Deferred revenue, ending balance	1,206,483
Movement in Deferred Commissions [Roll Forward]
Deferred commissions, beginning balance	215,528
Additions	67,630
Commissions recognized	39,400
Deferred commissions, ending balance	243,758
Revenue recognized, amount deferred in prior period	142,700	$ 109,000
Contracted revenue not recognized	$ 1,247,200
Percent expected to be recognized in next year	46.00%

FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Financial Assets:
Short-term investments:	$ 813,603	$ 401,041
Recurring
Financial Assets:
Total measured at fair value	1,116,495	552,976
Cash	201,590	166,802
Total cash, cash equivalents and short-term investments	1,318,085	719,778
Recurring \| Corporate bonds
Financial Assets:
Short-term investments:	532,904	345,265
Recurring \| Commercial paper
Financial Assets:
Short-term investments:	151,267	29,702
Recurring \| U.S. government securities
Financial Assets:
Short-term investments:	129,432	26,074
Recurring \| Money market funds
Financial Assets:
Cash equivalents:	260,398	142,936
Recurring \| Commercial paper
Financial Assets:
Cash equivalents:	42,494	8,999
Recurring \| Level I
Financial Assets:
Total measured at fair value	260,398	142,936
Recurring \| Level I \| Corporate bonds
Financial Assets:
Short-term investments:	0	0
Recurring \| Level I \| Commercial paper
Financial Assets:
Short-term investments:	0	0
Recurring \| Level I \| U.S. government securities
Financial Assets:
Short-term investments:	0	0
Recurring \| Level I \| Money market funds
Financial Assets:
Cash equivalents:	260,398	142,936
Recurring \| Level I \| Commercial paper
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level II
Financial Assets:
Total measured at fair value	856,097	410,040
Recurring \| Level II \| Corporate bonds
Financial Assets:
Short-term investments:	532,904	345,265
Recurring \| Level II \| Commercial paper
Financial Assets:
Short-term investments:	151,267	29,702
Recurring \| Level II \| U.S. government securities
Financial Assets:
Short-term investments:	129,432	26,074
Recurring \| Level II \| Money market funds
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level II \| Commercial paper
Financial Assets:
Cash equivalents:	42,494	8,999
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 \| U.S. government securities
Financial Assets:
Short-term investments:	0	0
Recurring \| Level III \| Money market funds
Financial Assets:
Cash equivalents:	0	0
Recurring \| Level III \| Commercial paper
Financial Assets:
Cash equivalents:	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Non-recurring Basis (Details) - Convertible Debt - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
2023 Convertible Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unamortized discount	$ (72,573)	$ (80,298)
Unamortized debt issuance cost	(4,049)	(4,480)
2026 Convertible Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unamortized discount	(227,723)
Unamortized debt issuance cost	(26,018)
Reported Value Measurement \| Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior note, fair value disclosure	994,637	490,222
Reported Value Measurement \| Fair Value, Measurements, Nonrecurring \| 2023 Convertible Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior note, fair value disclosure	498,378	490,222
Reported Value Measurement \| Fair Value, Measurements, Nonrecurring \| 2026 Convertible Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior note, fair value disclosure	496,259	0
Estimate of Fair Value Measurement \| Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior note, fair value disclosure	1,399,794	529,385
Estimate of Fair Value Measurement \| Fair Value, Measurements, Nonrecurring \| 2023 Convertible Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior note, fair value disclosure	558,894	529,385
Estimate of Fair Value Measurement \| Fair Value, Measurements, Nonrecurring \| 2026 Convertible Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior note, fair value disclosure	$ 840,900	$ 0

FAIR VALUE MEASUREMENTS - Schedule of Changes in Derivative Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Changes in Fair Value of Derivative Liability [Roll Forward]
Derivative Liability, Beginning Balance	$ 0
Change in fair value of derivative liability	64,740	$ 0
Derivative Liability, Ending Balance	$ 295,650

FAIR VALUE MEASUREMENTS - Schedule of Derivative Liability Measurement Inputs and Valuation Techniques (Details)	Oct. 31, 2020 USD ($)	Sep. 24, 2020 USD ($)
Conversion Price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability, measurement input	26.63	26.63
Conversion Ratio
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability, measurement input	0.037552	0.037552
Risk Free Interest Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability, measurement input	0.005	0.004
Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability, measurement input	0.0825	0.0900
Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability, measurement input	0.427	0.427
Stock Price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability, measurement input	24.34	21.26

BALANCE SHEET COMPONENTS - Short-Term Investments (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Due within one year	$ 631,457
Due in one to two years	182,146
Total	$ 813,603	$ 401,041

BALANCE SHEET COMPONENTS - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid operating expenses	$ 32,682	$ 31,690
VAT receivables	8,497	8,381
Tenant improvement allowance receivables	0	8,557
Other current assets	15,540	14,404
Total prepaid expenses and other current assets	$ 56,719	$ 63,032

BALANCE SHEET COMPONENTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Jul. 31, 2020
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 398,331		$ 394,397
Less: accumulated depreciation	(265,175)		(251,225)
Total property and equipment, net	133,156		143,172
Impairment of leasehold	900		1,200
Depreciation and amortization	23,499	$ 22,462
Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 19,200	$ 18,100
Computer, production, engineering and other equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life	36 months
Total property and equipment, gross	$ 253,389		245,245
Demonstration units
Property, Plant and Equipment [Line Items]
Estimated Useful Life	12 months
Total property and equipment, gross	$ 66,750		66,569
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 62,142		65,557
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life	60 months
Total property and equipment, gross	$ 16,050		$ 17,026

BALANCE SHEET COMPONENTS - Intangible Assets (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 92,330	$ 92,330
Less:
Accumulated amortization	(47,283)	(42,938)
Total intangible assets, net	45,047	49,392
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	79,300	79,300
Less:
Accumulated amortization	(39,681)	(35,987)
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	8,860	8,860
Less:
Accumulated amortization	(5,343)	(4,953)
Trade Names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	4,170	4,170
Less:
Accumulated amortization	$ (2,259)	$ (1,998)

BALANCE SHEET COMPONENTS - Future Amortization Expense (Details) $ in Thousands	Oct. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 13,035
2022	16,183
2023	10,856
2024	3,210
2025	1,763
Total	$ 45,047

BALANCE SHEET COMPONENTS - Accrued Compensation Benefits (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Employee-related Liabilities, Current [Abstract]
Accrued commissions	$ 39,489	$ 33,503
Accrued vacation	26,022	24,006
Payroll taxes payable	13,466	10,742
Contributions to ESPP withheld	10,810	16,563
Accrued benefits	9,343	8,426
Accrued bonus	6,666	5,568
Other	9,929	10,301
Total accrued compensation and benefits	$ 115,725	$ 109,109

BALANCE SHEET COMPONENTS - Accrued Liabilities (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Other Liabilities Disclosure [Abstract]
Income taxes payable	$ 8,333	$ 9,703
Accrued professional services	3,528	3,006
Other	12,702	13,215
Total accrued expenses and other current liabilities	$ 24,563	$ 25,924

CONVERTIBLE SENIOR NOTES - Proceeds from Notes (Details) - 2023 Convertible Senior Notes - USD ($) $ in Thousands	1 Months Ended
	Jan. 31, 2018	Oct. 31, 2020	Jul. 31, 2020
Debt Instrument [Line Items]
Payments for convertible note hedges	$ (143,200)
Proceeds from issuance of warrants	88,000
Convertible Debt
Debt Instrument [Line Items]
Principal amount	575,000	$ 575,000	$ 575,000
Less: initial purchasers' discount	(10,781)
Payments for convertible note hedges	(143,175)
Proceeds from issuance of warrants	87,975
Less: other issuance costs	(707)
Net proceeds	$ 508,312

CONVERTIBLE SENIOR NOTES - Additional Information (Details) $ / shares in Units, shares in Millions		1 Months Ended	3 Months Ended
	Sep. 24, 2020 USD ($) day $ / shares	Jan. 31, 2018 USD ($) day $ / shares shares	Oct. 31, 2020 USD ($) $ / shares shares	Oct. 31, 2019 USD ($)	Jul. 31, 2020 USD ($)	Jul. 31, 2018 USD ($)
Debt Instrument [Line Items]
Proceeds from the issuance of convertible notes, net of issuance costs			$ 723,757,000	$ 0
Derivative liability	$ 230,910,000		$ 295,650,000		$ 0
2023 Convertible Senior Notes
Debt Instrument [Line Items]
Number of securities called by warrants or rights (in shares) \| shares		11.8
Payments for convertible note hedges		$ 143,200,000
Exercise price of warrants (in dollars per share) \| $ / shares		$ 73.46
Proceeds from issuance of warrants		$ 88,000,000.0
Transaction cost		$ (55,200,000)
Dilutive effect of convertible securities (in shares) \| shares			3.9
Share price threshold for dilutive effect of convertible debt (in dollars per share) \| $ / shares			$ 73.46
Dilutive effect of $10 increase in share price (in shares) \| shares			4.9
Dilutive effect of warrants (in shares) \| shares			1.4
Share price threshold for dilutive effect of warrants (in dollars per share) \| $ / shares			$ 83.46
Common Class A \| 2023 Convertible Senior Notes
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares			$ 24.34
Convertible Debt \| 2023 Convertible Senior Notes
Debt Instrument [Line Items]
Interest rate, stated percentage		0.00%
Face amount		$ 575,000,000.0
Convertible debt						$ 75,000,000.0
Conversion ratio		0.0204705
Conversion price (in dollars per share) \| $ / shares		$ 48.85
Threshold trading days \| day		20
Threshold consecutive trading days \| day		30
Threshold percentage of stock price trigger		130.00%	130.00%
Redemption price, percentage		100.00%
Carrying amount of liability component		$ 423,400,000
Carrying amount of equity component		151,600,000
Unamortized discount and debt issuance costs, net		11,500,000
Unamortized discount, net		10,781,000
Less: other issuance costs		707,000
Transaction costs attributable to liability component		8,500,000
Transaction costs attributable to equity component		3,000,000.0	$ 3,000,000.0
Debt instrument, term			26 months
Payments for convertible note hedges		143,175,000
Proceeds from issuance of warrants		$ 87,975,000
Convertible Debt \| 2026 Convertible Senior Notes
Debt Instrument [Line Items]
Interest rate, stated percentage	2.50%		2.50%
Face amount	$ 750,000,000.0
Conversion ratio	0.036036
Conversion price (in dollars per share) \| $ / shares	$ 27.75
Threshold trading days \| day	20
Threshold consecutive trading days \| day	30
Threshold percentage of stock price trigger	150.00%
Redemption price, percentage	100.00%
Debt instrument, term			5 years 10 months 24 days
Proceeds from the issuance of convertible notes, net of issuance costs	$ 723,700,000
Payments of debt issuance costs	$ 26,300,000
Derivative liability			$ (230,900,000)
Convertible Debt \| 2026 Convertible Senior Notes \| Minimum
Debt Instrument [Line Items]
Debt instrument, convertible, conversion price, price range \| $ / shares	$ 25.25
Convertible Debt \| 2026 Convertible Senior Notes \| Maximum
Debt Instrument [Line Items]
Debt instrument, convertible, conversion price, price range \| $ / shares	$ 27.75
Convertible Debt \| Common Class A \| 2023 Convertible Senior Notes
Debt Instrument [Line Items]
Threshold percentage of stock price trigger		98.00%

CONVERTIBLE SENIOR NOTES - Components of Notes (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020	Jan. 31, 2018
2023 Convertible Senior Notes
Debt Instrument [Line Items]
Net carrying amount	$ 498,378	$ 490,222
Convertible Debt \| 2023 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	575,000	575,000	$ 575,000
Unamortized discount	(72,573)	(80,298)
Unamortized debt issuance cost	(4,049)	(4,480)
Carrying amount of equity component	$ 148,598	$ 148,598
Effective interest rate	6.62%
Payments of offering costs	$ (3,000)		$ (3,000)
Convertible Debt \| 2026 Convertible Senior Notes
Debt Instrument [Line Items]
Principal amount	750,000
Unamortized discount	(227,723)
Unamortized debt issuance cost	(26,018)
Net carrying amount	$ 496,259
Effective interest rate	705.00%

CONVERTIBLE SENIOR NOTES - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Debt Instrument [Line Items]
Non-cash interest expense	$ 1,952	$ 0
Convertible Debt \| 2023 Convertible Senior Notes
Debt Instrument [Line Items]
Interest expense related to amortization of debt discount	7,725	7,232
Interest expense related to amortization of debt issuance costs	431	403
Total interest expense	8,156	$ 7,635
Convertible Debt \| 2026 Convertible Senior Notes
Debt Instrument [Line Items]
Interest expense related to amortization of debt discount	3,187
Interest expense related to amortization of debt issuance costs	365
Non-cash interest expense	1,952
Total interest expense	$ 5,504

LEASES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Oct. 31, 2020	Oct. 31, 2019	Jul. 31, 2020
Lessee, Lease, Description [Line Items]
Operating lease, cost	$ 10,400	$ 8,700
Impairment loss	2,822	$ 0	$ 3,000
Right-of-use asset, impairment loss	1,900		1,800
Impairment of leasehold	900		$ 1,200
Lease not yet commenced, undiscounted amount	$ 5,500
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	8 years
Lease not yet commenced, term of contract	6 years

LEASES - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets, gross	$ 166,922
Impairment	(2,382)
Accumulated amortization	(37,998)
Operating lease right-of-use assets, net	126,542	$ 127,326
Operating lease liabilities—current	41,080	36,569
Operating lease liabilities—non-current	113,491	$ 116,794
Total operating lease liabilities	$ 154,571
Weighted average remaining lease term (in years)	3 years 7 months 6 days
Weighted average discount rate:	5.30%

LEASES - Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Leases [Abstract]
Operating cash flows from operating leases	$ 9,976	$ 8,750
Lease liabilities arising from obtaining right-of-use assets from operating leases	$ 9,918	$ 12,969

LEASES - Remaining Maturity Under Topic 842 (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Jul. 31, 2020
Leases [Abstract]
2021	$ 36,153
2022	47,715
2023	46,281
2024	31,828
2025	6,174
Thereafter	3,798
Total lease payments	171,949
Less: imputed interest	(17,378)
Total operating lease liabilities	154,571
Less: current lease obligations	(41,080)	$ (36,569)
Long-term lease obligations	$ 113,491	$ 116,794

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Oct. 31, 2020 USD ($)
Non-contract Vendors
Loss Contingencies [Line Items]
Purchase obligation	$ 57.5
Contract Manufacturer
Loss Contingencies [Line Items]
Purchase obligation	$ 63.5

STOCKHOLDERS’ EQUITY (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2020 USD ($) class vote $ / shares shares	Oct. 31, 2019 USD ($)	Aug. 31, 2020 USD ($)	Jul. 31, 2020 $ / shares shares
Class of Stock [Line Items]
Common stock, number of classes of stock \| class	2
Common stock, shares authorized (in shares)	1,200,000,000			1,200,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.000025			$ 0.000025
Common stock, shares issued (in shares)	201,346,000			201,949,000
Common stock, shares outstanding (in shares)	201,346,000			201,949,000
Payments for repurchase of common stock \| $	$ 125,079	$ 0
Repurchase and retirement of common stock (in shares)	5,200,000
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)	189,883,000			186,846,000
Common stock, shares outstanding (in shares)	189,883,000			186,846,000
Common stock number of votes per share \| vote	1
Stock repurchase program, authorized amount \| $			$ 125,000
Payments for repurchase of common stock \| $	$ 125,000
Stock repurchase price (in dollars per share) \| $ / shares	$ 24.15
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)	11,463,000			15,103,000
Common stock, shares outstanding (in shares)	11,463,000			15,103,000
Common stock number of votes per share \| vote	10

EQUITY AWARD PLANS - Additional Information (Details)				1 Months Ended			3 Months Ended
EQUITY AWARD PLANS - Additional Information (Details)	Aug. 01, 2020 shares	Dec. 13, 2019 USD ($) purchase_period shares	Aug. 01, 2019 shares	Feb. 29, 2020 $ / shares shares	Dec. 31, 2019 $ / shares shares	Oct. 31, 2018 $ / shares shares	Oct. 31, 2020 USD ($) plan $ / shares shares	Oct. 31, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive plans \| plan							3
Granted (in shares)							3,454,000
Granted (in dollars per share) \| $ / shares							$ 24.02
Released (in dollars per share) \| $ / shares							$ 31.23
Exercises in period (in shares)							300,000
Weighted average exercise price (in dollars per share) \| $ / shares							$ 5.48
Options outstanding (in shares)							7,200,000
Outstanding options, weighted average exercise price (in dollars per share) \| $ / shares							$ 5.08
Contractual term							3 years 4 months 24 days
Options outstanding, intrinsic value \| $							$ 139,600,000
Compensation not yet recognized \| $							$ 656,900,000
Period for recognition (in years)							2 years 6 months
Proceeds from stock plans \| $							$ 19,600,000	$ 23,973,000
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%
ESPP stock issued during period (in shares)							1,500,000
Proceeds from stock plans \| $							$ 18,100,000
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		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)							7,700,000
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)							49,900,000
2016 Plan \| Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (in shares)							22,400,000
Annual increase (in shares)							18,000,000.0
Annual increase, percent of outstanding shares							5.00%
Number of additional shares authorized	10,100,000		9,400,000
Number of shares available for grant (in shares)							20,200,000
Market Stock Units \| RSUs
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
Award vesting period				3 years 10 months 24 days	4 years 6 months	4 years 6 months
Percent of awards to vest if average stock price exceeds threshold					0.06	0.06
Equity instruments outstanding (in shares)							375,000

EQUITY AWARD PLANS - RSU (Details) shares in Thousands	3 Months Ended
EQUITY AWARD PLANS - RSU (Details) shares in Thousands	Oct. 31, 2020 $ / shares shares
Number of Shares
Outstanding, beginning balance (in shares) \| shares	22,632
Granted (in shares) \| shares	3,454
Released (in shares) \| shares	(2,819)
Canceled/forfeited (in shares) \| shares	(806)
Grant Date Fair Value per Share
Granted (in dollars per share) \| $ / shares	$ 24.02
Released (in dollars per share) \| $ / shares	31.23
Canceled/forfeited (in dollars per share) \| $ / shares	34.00
Ending Outstanding (in dollars per share) \| $ / shares	$ 31.50
RSUs
Number of Shares
Outstanding, ending balance (in shares) \| shares	22,461
Grant Date Fair Value per Share
Beginning Outstanding (in dollars per share) \| $ / shares	$ 32.70

EQUITY AWARD PLANS - ESPP (Details) - Employee Stock Purchase Plan	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	11 months 1 day	11 months 1 day
Risk-free interest rate	0.10%	1.90%
Volatility	73.30%	68.70%
Dividend yield	0.00%	0.00%

EQUITY AWARD PLANS - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 89,198	$ 81,426
Cost of revenue, product
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,504	1,112
Cost of revenue, support, entitlements, and other services
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	5,761	4,751
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	32,227	27,775
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	37,887	37,563
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 11,819	$ 10,225

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Oct. 31, 2020	Oct. 31, 2019
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 4,243	$ 3,923

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

NET LOSS PER SHARE - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Earnings Per Share [Abstract]
Net loss	$ (265,048)	$ (229,300)
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted (in shares)	203,095	189,671
Net loss per share attributable to common stockholders—basic and diluted (in dollars per share)	$ (1.31)	$ (1.21)

- Definition

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

+ References

+ Details

NET LOSS PER SHARE - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Oct. 31, 2020	Oct. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	32,786	33,034
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)	29,710	29,544
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,823	2,845
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)	253	611
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)	0	34

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Oct. 31, 2020 USD ($) segment	Oct. 31, 2019 USD ($)	Jul. 31, 2020 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment	1
Total revenue	$ 312,754	$ 314,768
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	177,113	184,767
Long-lived assets	124,900		$ 136,700
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	62,598	60,321
Europe, the Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	59,906	56,713
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 13,137	$ 12,967

- Definition

+ References

+ Details